RG 74-ld GIFT OF Mr . A1 Warren TO THE "^I^ADCASr ^OtiEEI^ 1771 N STREET, N.W.. WASHINGTON, D. C. 20036 Qctob^ 7Q7fi Digitized by the Internet Archive in 2016 https://archive.org/details/televisiondiges7195code_0 Index to 1951 NEWSLETTERS and Supplements Index to Television Digest 1951: Volume 7 References are grouped into three major categories: General (pages 1-5), Manufacturers & Merchandisers (pages 5-6), Supplements (page 1). Index attempts to cover only items considered to be of more than passing interest. Reference numbers following each item designate issue of Newsletter in which item appeared. If number is followed by a small “n,” article referred to was a note printed in small (8-pt.) type; all other references are to articles printed in typewriter type. General ADVERTISING BBB proposes new standards. In attacks on high TV costs, 2n, 3n, 4n, 7n, 8n 1950 TV talent cost, 2n NBC-TV revises coverage figures, 3 Publishers Information Bureau reports, 3n, lOn, 13n, 17n, 21n, 25n, 29n, 34n, 39n, 43n, 48n, 52n top media, as advertised by ‘Life’, 4, 30n total 1950 advertising, 4 ANA tax booklet, 4n agency mergers, 5n receiver lineage in newspapers, 5n, 18n, 39n, 4bn Emerson-Western Union tieup, 5n purchasing power of TV areas, 6n Lucky Strike cancels radio & TV spots. Bn, 52n little questionable copy, says FTC, 6n TV network sponsors outnumber AM, 9n industry ad on children, lOn ANA attacks radio rates, 11, 12n subway ad slump blamed on TV, lln CBS cuts AM rates, 15, 16, 17 summer TV business, 15n, 18, 48n FCC reports 1950 AM-FM income, 16 rate cuts at NARTB convention, 16 Young & Rubicam TV billings, 18n surveys shows TV using ‘*new^* money, 18n Shouse sees ad threat in CPR-22, 21n viewers prefer TV commercials over radio, 22n anti-fraud bill passed by House, 23n ‘Tide’ sold, 24n AM rate cuts attacked by reps, 25 magazines raise rates, 26n, 39n ANPA compares media increases since 1949, 27n manufacturers among top 100 advertisers, 27n Ad Council’s “Crusade for Freedom,” 27n NARTB finds 80% of station time sponsored, 29n strong AM promotion, 30n, 32n manufacturers’ sponsorships, 32n ‘Printers’ Ink’ estimates 1951 ad volume, 32n rule-of-thurab for station coverage, 35 NBC compares set & newspaper circulation, 38n sponsors back to radio after TV try, 39n Kate Smith, Godfrey top money makers, 39n Winchell-ABC lifetime contract, 39n Quiz Kids-CBS 10-year contract, 39n PIB 6-month breakdown, by media, 39n Army cancels all ads, 42n network TV billings pass radio, 43 Firestone’s McGinness talks down AM, 44 KSL-TV relenting on beer ads, 45n NBC’s Madden on future of rates, 49 ALLOCATIONS— see VHF and UHF AM (Standard) BROADCASTING (see also specific networks and Advertising) good programs sponsorless, says ‘Variety*, 9n rate cuts, 15, 16, 18, 19n, 22n FCC report on 1950 income, 16 strong promotion, 30n, 32n daytime rates rising, says ‘Billboard’, 45n NBC rate revision proposal, 40, 45n KPRO bankruptcy, 45n reasons for AM station sales, 47 ‘Contented Hour’ and ‘Father Knows Best’ dropped, 38n TV shows “going AM,” 49n stations follow TV affiliations, 49n ‘Broadcasting’ & ‘Variety’ on 1952 outlook, 52n AMERICAN BROADCASTING CO. (ABC) orders coast-to-coast AT&T facilities. In financial reports. In, 12n, 13n, 21, 26n, 33n, 47n personnel changes, 8n, 26n negotiations for sale, 13n, 15n, 18, 19, 20 stock ownership, officers’ salaries, 13n, 26n expansion of studios, 16n merger with United Paramount, 21, 22n, 23n, 24n, 27n, 30n, 31n, 35n, 45n, 49n separation of AM and TV, 25n Goldenson says AM won’t be neglected, 27n leases Little Theatre, 31n announces $24,131,000 time sales, 35n Winchell lifetime contract, 39n new N. Y. studios, 51n ANTENNAS, RECEIVING community, 2, 7n, 11, 21, 23n, 24n, 27n, 28n, 29n, 30n, 39n, 49n, 51n uhf, 14n motorless, switchable, 32n JFD “tele-plex” coupler, 38n Blonder-Tongue distribution amplifier, 38n microwave for community systems, 40, 42n hotels, 45n, 48n ANTENNAS, TRANSMITTING — see Equipment ANTI-TRUST FCC movie-station ruling, 13 decision against ‘Lorain Journal’, 50n APPLICATIONS FOR NEW STATIONS VHF Ashtabula, O., In Cedar Rapids, la., 2n Montgomery, Ala., 3n Kingsport, ’Tenn., 3n Sioux City, la., 6n Columbia, S. C., 6n, 34n Roanoke, Va., 6n Mobile, Ala., 8n, 12n, 13n Denver, Colo., 9n Charleston, S. C., 9n Houston, Tex., 9n Syracuse, N. Y., lOn Utica, N. Y., lOn Wichita, Kans., lln Peoria, 111., 12n Savannah, Ga., 12n, 18n Waterloo, la., 12n, 51n, 52n Lawton, Okla., 14n Las Vegas, Nev., 15n Minneapolis, Minn., 17n, 33n, 48n Wichita Falls, Tex., 17n, 21n Lynchburg, Va., 18n Macon, Ga., 18n Texarkana, Tex., 18n Toledo, O., 19n Jackson, Miss., 21n Albuquerque. N. M., 21n Detroit, Mich., 23n Corpus Christi, 'Tex., 23n Miami, Fla., 26n Eau Claire, Wis., 26n, 30n Hibbing, Minn., 27n Lewiston, Me., 28n Green Bay, Wis., 28n Fargo, N. D„ 29n, 50n St. Louis, Mo., 30n Directories Semi-Annual TV Factbooks of Jan. 15 and July 15; with weekly Addenda reporting current FCC grants, applications, etc. Annual AM-FM Directory of Jan. 1; with weekly Addenda reporting current FCC decisions, appli- cations, etc. Listings of all AM-FM stations by states and frequencies, all applications by states and frequencies, call letter lists, etc. (Includes other North American stations.) Numbered Supplements No. 56C : Personnel List of the FCC. (Vol. 7:50). No. 72, 72A, 72B, 72C: Comments and Oppositions on Proposed TV Allocations. (Vol. 7:19). No. 73 : Agenda for FCC’s Allocations Proceed- ings. City-by-city deadline for written comments. (Vol. 7:30). No. 74: FCC Authorizes Temporary TV Power Increases. Pull text. (Vol. 7:30). No. 75: NTSC Color Field Test Specifications. Technical details of signal to be tested during forthcoming months. (Vol. 7:48). No. 76: Code of Practices for Television Broad- casters. Full Text as adopted by NARTB, including procedures relating to adminis- tration, hearings, decisions. (Vol. 7:49). Beaumont. Tex., 30n, 33n Jacksonville, Fla., 31n Bangor, Me., 32n Portland, Me., 32n Hannibal, Mo., 33n Chicago, 111., 34n Meridian, Miss., 34n Wausau, Wis., 35n Amarillo, Tex., 36n Oklahoma City, Okla., 36n Huntington, W. Va., 37n Cheyenne, Wyo., 37n Quincy, 111., 38n Eureka, Cal., 38n Phoenix, Ariz., 40n Idaho Falls, Ida., 40n Stockton, Cal., 43n Lansing, Mich., 45n Paducah, Ky.. 48n Rochester, Minn., 48n Odessa, Tex., 48n Springfield, Mo., 48n Butte. Mont., 48n Charleston, S. C., 49n Asheville, N. C., 49n Little Rock, Ark., 50n Columbus, O., Bln Waco, Tex., 51n Knoxville, 'Tenn., 51n Lincoln, Neb., Bln Lafayette, La., 52n UHF York, Pa., 23n Cleveland. O., 23n Utica, N. Y„ 23n Royal Oak, Mich., 23n Hammond, Ind., 26n Grand Rapids, Mich., 28n Lima, O., 29n Lafayette, Ind., 32n Allentown, Pa., 33n Dallas, Tex., 36n Houston, Tex., 36n San Antonio, Tex., 36n, 48n Scranton, Pa., 40n Henderson, Ky., 41n Austin, Tex., 43n Muncie, Ind., 44n Ft. Worth, 'Tex., 45n Oshkosh, Wis., 45n Chambersburg, Pa., 49n Hendersonville, N. C., 49n Special Supplements and Reports Conserving Critical Materials — Two Approaches. Reports on materials conservation programs of RCA and Philco. (Vol. 7 :8.) Proposed VHF-UHF Rules, Standards & Alloca- tions. Full text, as issued by FCC March 22, with table of TV channel assignments to states and cities in United States & Possessions, Can- ada and Mexico. (Vol. 7 :12.) “Outlook for Radio” — Reprint from May 20 ‘New York Times.’ (Vol. 7:21.) U. S. Supreme Court Upholds FCC Choice of CBS Color. Full text of May 28 decision, including separate opinion of Justice Frankfurter. (Vol. 7:22.) “Electronics Production for Defense.” Salient ex- cerpts from address by RTMA President Glen McDaniel before Western IRE Convention and Pacific Electronics Exhibit, San Francisco, Aug. 23. (Vol. 7:34.) Commissioner Walker Sounds a Warning on pro- gram excesses by telecasters and broadcasters. Excerpts from address by FCC Commissioner Paul A. Walker before Board of National Coun- cil of Churches of Christ in U. S., New York, Oct. 2. (Vol. 7:40.) Supplements and Special Reports Published During 1951 References are to issues of Television Digest with articles pertaining to documents Carbondale. 111., 49n Oklahoma City. Okla.. 52n Dismissed Cumberland. Md.. 19n Portsmouth. N. H.. 23n Dallas. Tex.. 37n Houston. Tex.. 37n San Antonio. Tex.. 37n ASCAP — sec Music Agencies CENSUS. TV RECEIVERS NBC Research’s monthly figures. 3, 8. 12. 17. 21. 25. 29. 35. 39. 43. 47. 51 COLOR (see also CBS. RCA) Rep. Dolliver asks hearing. 1 NTSC “Ad Hoc” committee. 1, 18 NPA says no color set ban considered. 1 Color Television Inc.. In. 35n tri-color tube patented by KFMB-TV engineer. 2n Coy hopes for color start. 3 Senate Small Business Committee report. 3n appeal to Supreme Court. 4n. 5n. 6n. 7. 9n CBS sues DuMont. 4n. 7 Russians claim 3 years of color. 4n new inventions claimed, 6n, 7, 22n color back in labs, says Axel Jensen, 8n Sightmastcr reports patent rights sale, 8n Supreme Court oral argument, 10, lln, 13 IRE convention papers, 12n Coy’s speech at NARTB convention, 16n Lawrence tri-color tube, 16n, 23, 25, 36n. 38n, 39n, 40n. 41n. 48n, 49n, 52n "oscillating color sequence.” 18 Supreme Court upholds FCC decision, 22 station plans, 22 decision’s impact on trade, 22 manufacturers’ statements on decision, 22 manufacturers planning color sets. 22n. 23, 27, 29 RCA public demonstrations, 26, 27, 28, 29, 34n, 35n, 36n, 37. 41n, 42 trade practices conferences, 25, 39n NTSC panels. 25n DuMont enthuses over compatible pictures, 26 Rauland tri-color tube, 26, 27 Videotown color-demand survey, 26 dual standards, 29, 33. 45n AT&T rates same for all systems. 29 RTMA takes impartial attitude, 29 Emerson guarantee, 31n FCC engineers see NTSC color, 31n, 32 color slave, 33 color “transcender”, 33 WLWT experiments, 34n, 41n Detroit closed-circuit show, 34n used to promote monochrome, 34n network transmissions, 38n NTSC field tesU, 38n, 48n Murphy says CBS system black-&-white sales stimulant, 38n Phoenix field-sequential tests, 41n ODM bans mass production for duration, 42 color ban affects nothing else, says Wilson, 43 “The Color Denouement — An Editorial.” 43 Comr. Sterling’s view of situation, 44n Coy attacks industry in Biloxi talk, 46n color theatre-’TV ban, 47 transcontinental closed-circuit, 49n WHAM-TV plans NTSC field tests. 60n Sen. Johnson questions NPA ban, bln COLUMBIA BROADCASTING SYSTEM (CBS) financial reports. In, 6n, 12n, 16n, 28n, 32n, 46n fires employes for profanity. In Newspaper Guild seeks to organize, 4n plays down TV plugs on AM, 7n Mary Sinclair exclusive contract, 13n stock ownership, officers’ salaries, 13n, 30n cuts AM rates, 15 buys Hytron, 15, 20n, 24n negotiations for ABC purchase, 18 reorganization, 25n raises TV rates, 26n complaints about "Amos ’n’ Andy”, 27n, 32n, 38n creates 6 divisions, 28n top executives, 30n AM promotion, 31n CBS-Columbia officers, 31n Laboratory Div. reorganized, 31n leases office space, 32n promotes daytime TV, 33n Mt. Wilson installation rebuilt, 34n, 42n Ream testimony on network economics, 36 advisory board, 38n “Quiz Kids” 10-year contract, 39n leases Monroe Theatre, 39n NPA grants Los Angeles “TV City”, 40 rumored selling Columbia Records, buying Hazel- tine, 43n promotes summer TV time sales, 48n “selective facilities plan” for AM. 60n joins NARTB-TV. 51n Color TV NPA says no color set ban considered, 1 demonstrations in various cities, 1, 2n, 6n, 8n. 10. 14n, 17n, 34n product demonstrations, lln, 14n AP-ANPA showings. 17n color programming schedule, 23 premiere, 24, 25, 26 adapters, 25 Meek plans slave units, 26 Crosley demonstrates converter, 26 confusion over NPA order, 26 dept, store promotion, 26n affiliates’ attitude, 29 Eidophor, 29, 40n receivers, 29 football, 30. 39n, 40n new companies planning color devices. 31n European demonstrations, 32n, 34n, 35n set makers plans, 32 Tele-tone goal for 1951, 32 “compatible” black-and-white set, 33 Goldmark deprecates RCA tube, 35n Murphy says CBS system black-&-white sales stimulant, 38n set sales slow, 41n requests more materials from NPA, 41n ODM bans mass color set production, 42 color ban affects nothing else, says Wilson. 43 COMMUNITY ANTENNA SYSTEMS— see Antennas, Receiving CONGRESS communications committees, 2n bill to control electromagnetic radiations, 2n, 4n, 6n, 7n, 8, 8n, 9n, lln, 28n, 34n, 38n, 41n, 50n Cooper becomes McFarland assistant, 3n McFarland communications bill, 4n, 6n, 8n, 9n. lln, 14n. 16n, 17n, 42n FCC and House discuss legislation, 7n, 8n Communications Policy Board, 2, 7n, lln, 13 Lane censorship bill, 14n Benton educational resolution, 15n Johnson bill to put govt, frequency users under FCC, 17n anti-fraud bill. 23n House baseball inquiry, 32n Kefauver contempt citations upheld, 32n Sen. Benton proposes Govt, buy time for candi- dates, 38n members’ film production, 43n, 45 Sen. Benton prepared to sell Muzak, 51n N. Y. Bar Assn, opposes TV in hearings, bln CONTROLLED MATERIALS PLAN— see Mobili- zation DUMONT NETWORK (see also DuMont, under MANUFACTURERS) buys Central Opera House, 3n, 30n affiliates Union Radio, Havana, 6n 1950 income, 18n bids for Milton Berle, 20n WDTV alternates Berle & Sinatra, 61n EDUCATIONAL TV roundup of station activity, 2, 8n New York program survey, 2 FCC hearing, 4, 5 stations’ home and school courses, 4n, 6n, 9n. 12n, 27n, 44n directory of college TV-radio courses, 8n reservation in allocation plan, 12, 13, 14 JCET sets up Washington office, 14, 16, 20n educators approach philanthropies, 14, 16, 20n Sen. Benton requests study, 15, 19. 20, 22, 36n U of Cincinnati survey, 20n. 62n Young favors use of commercial stations, 23, 24 Sen. Johnson objects to reservation, favors pre- emption of commercial time, 25. 29 first application for reserved channel, 26n Western Reserve U opposes reservations, 27n Coy testimony before Senate committee, 29, 35 schools offering credit courses, 30n Ford Foundation Workshop, 32n, 44n Connecticut planning 4-station network, 36n WOI-TV financial report, 37n FCC fears censorship in Benton bills, 41 U of Southern California offers TV degree, 41n NAEB convention, 43n EQUIPMENT, TELECASTING Antennas Empire State Bldg., 2n, 19n, 42n, 46n, 47n, 51n rival to Empire State proposed, 21n automatic activator for sleet-melting, 33n strengthening signal near transmitter, 33n WTMJ-TV 1017-ft. tower, 46n WXEL sued for ice-paint damage, 46n power hikes with new antennas, 46n WJZ-TV helicopter measurements, 47n, Bln Cameras new crane and remote control, 5n RCA portable, lln image orthicon film converter, 14n underwater, 36n "walkie-pushie” at Rose Bowl. 62n Transmitters (see also UHF) availability, 11, 16, 34 high and low power, prices, 16, 34 NPA attitude, 16 RCA 10 kw, 31n Tarzian offers to equip stations, 40 RCA hikes 20 kw unit to 25 kw, 42n DuMont “Photovision” project, 62n Miscellaneous station tube costs, 4n Farnsworth predictions, 9n station construction costs, lln, 50 Telechrome picture generator, 16n parabolic microphone, 16n GPL shows line at NARTB convention, 16n British Marconi sells chains to UN, 18n KTLA 102-mile remote. 19n world’s tallest tower, 24n Bell Labs’ new film scanner, 27n “Multi-Millions in Station Equipment,” 34 CBS rebuilds Mt. Wilson installation, 34n, 42n transistors, 39. 46n WBEN-TV granted move to Colden, N. Y., 36n KII'I inexpensive construction plans, 41n cure for microwave ground reflections, 43n DuMont ‘Station Planning’ booklet, 44n TV tape recording, 46 TV-radar use at London airport, 46n RCA’s new remote devices, 48n NARTB construction cost study, 60 50th anniversary of transatlantic signals, 60n pocket transmitter for performers, bln FEDERAL COMMUNICATIONS COMMISSION (FCC) — (For actions in particular scrTices. see specific categories, such as Color, VHF, UHF, equipment, networks, etc.) Coy vacation, 3n TV programming inquiry, 3n, 4, 6, 16n budget, 3n, 19n rumors of Coy leaving. 2, 6n, 9, 46n illegal TV stations, 6n, 7n. 23n, 25n court test of industrial radiation, 9n, lln FCC-industry relations, 14. 33 Broadcast Bureau, 16n, 18, 20n, 21, 48n Johnson bill to put govt, users under FCC, 17n Coy reappointed, 21, 22 Richards case. 22n, 24n, 48n Hennock nominated Federal judge, 24, 25n, 26n, 28n, 31n, 33n, 34n, 37n, 39n, 40n, 41n, 42n. 44n Plotkin leaves. 24 WBAL Blue Book case, 25n Allen chief engineer, 26n Coy testifies on govt, ethics, 27n court upholds WJAX-TV deletion, 27n appropriations, 22n. 30n, 34n candidates for vacancy, 31n Pratt named President’s Telecommunications Ad- viser, 31, 39n Walker speech on programs, 40 fears censorship in Benton bills, 41 can’t censor, says Coy, 42n former chairman Robinson dies, 44n Coy affirms faith in aural radio, 48n ruling on political broadcasts, 48n, 49n electromagnetic radiation controls, 50n 32.000-mc grant, 51n studying network AM rate plans, 51n FINANCIAL ACTIVITY, GENERAL Manufacturing “Big Four’s” 1950 gross, 3 O. H. Caldwell estimates 1950-51 radio-TV gross, 3n, 52n “Tele-Tech’ stock analysis, 3n National Credit Office rates industry, 4n Television-Electronics Fund Inc., 6n, 13n, 21n, 32n, 48n analysts term TV firms strong, 7n ■ company failures, bankruptcies, lln. 23n, 26n ‘Wall St. Journal’ roundup of 617 firms, 22n compensation of top executives, 24n ‘Fortune’ compares companies’ growth, 26n ‘N. Y. Times’ report on company profits, 50n Telecasting (see also Advertising) 1950 talent costs, 2n , Publishers Information Bureau reports, 3, 10, 13, '• 17, 21. 25. 29, 34. 39. 43, 48, 52 , profits, income and expenses, 2n, 4n, 6, 13, 16n, i 32, 37n, 42n, 48. 47, 49 : FCC station economic report. 13 i station sales, 6n, 17n, 19, 23, 26, 27n, 28n. 30, | 32, 38n, 39n, 41n, 46 , Hearst buys 25% of KING-TV, 26 j CBS’s Joseph Ream on network economics. 36 WTCN-TV buys 45% of WEMP, Milwaukee. 38n ; NARTB estimates station income. 38 \ WKRC-TV buys into WBIR, Knoxville, 39n j Macy-O’Neil merger, 41, 46 network TV billings exceed radio, 43 ’ AM stations following ’TV affiliations, 49n ® FINANCIAL REPORTS — see individual manufac- . turers and networks I’ FOREIGN TV . Philco estimates Latin American potential, 17n |j international conferences, 18n, 20n, 32n Russia, 19n ; DuMont’s Marx analyzes foreign markets, 27n " CCIR’s station status report, 32n I Spanish-language films, 38n , first transatlantic TV attributed to Baird, 39n international TV pickup, 40n Argentina Buenos Aires, 21n, 25n, 33n, 36n, 40n, 42n Australia status report, 31n Brazil Rio de Janeiro, 42n, 43n Sao Paulo, 19n, 21n, 25n, 42n, 43n, 48n, 49n Chateaubriand plans, 42n Britain rejects commercialism. 4n station plans, 31n exports, 38n “TV fever” at radio show, 39n materials shortages, 45n Canada CBC financial reports, 28n, 45n, 52n Montreal, 4n, 5n, 22n, 50n set sales, 5n, 6n. lln. 15n, 16n, 19n, 22n, 27n, 31n, 3’in, 41n, 45n, 48n experimental stations, 5n Toronto, 22n, 60n Massey Commission, 23n networking plans, 30n eases credit controls. 30n TV receiver fee, 31n Govt.-industry controversy, 36n Colombia Bogota, 35n Cuba CMKW, 3n analysis of set market, 9n, 36n (Ti 2 Storer-backed station, 9n, 17n, 21n Manuel Alonso, 17n Union Radio plans, 21n CMQ-TV, 21n, 22n, 37n CMUR-TV, 32 major advertisers, 42n Mestre plans, 61n Denmark plans, 5n Dominican Republic Ciudad Trujillo, 43n Finland GE demonstrations. Bn Holland Philips reports $28,000,000 profit in 1960 Philips founder dies, 41n Japan Nippon network, 41n Mexico XHTV, 2n, 47n radio import ban lifted, 7n XEW-TV, 16n, 21n XEQ-TV, 21n XELD-TV, 21, 31, 33n, 36n, 38n new stations planned, 32, 42, 49n cabinet maker, 39n ‘Newsweek’ article on Azcarraga, BOn Spain equipment purchased, 21n, 30n Uruguay Montevideo, 42n FREQUENCY MODULATION (FM) FCC ruling on special use. Bn, 9n, IBn, 16n, 18n multiplexing, 9n ‘N. Y. Times’ complains of slow growth, 9n station-manufacturer conferences, lln, 27n stations cancelled, lln construction costs, lln surveys of set demand, 20n transit operations ruled unconstitutional, 22n Coy says FM channels unendangered, 28n NARTB committee, 29n Supreme Court to hear transit argument, 42n promotion in 3 test areas, 46n, BOn, B2n Zenith compares AM-FM pulling power, 48n WFIU shifts to commercial band, 49n lOME, TV’s IMPACT ON (see also Surveys) book sale survey, 3n electronics’ effect on publishing, 4n antenna ruled no cause for tenant eviction, 4n bus rides drop in Cincinnati, Bn Bernays research award, 7n "Smellovision,” 7n fan’s “TV Heaven,” 8n ‘Television and Our Children’, by Shayon, 8n receiver heat fouls thermostat, 9n N. Y. Easter parade hit by TV, 13n theatre owner becomes TV dealer, 22n ‘N. Y. Times’ series by Gould, 27 WCTU says TV making homes “beer bars,” 32n TV competes with union meetings, 32n best viewing conditions, 39n, B2n ‘Newsweek’ issues “The TV Revolution,” 43n TV eyeglasses, 49n N. Y. court favors landlord, BOn Xavier U study of TV impact on children, B2n TV at amusement parks, B2n "(DUSTRIAL TV ‘Fortune’ article, 36n DuMont predicts use in business, 39n underwater camera, 39n improved vidicon, 43n jail surveillance, 43n JSTITUTE OF RADIO ENGINEERS (IRE) officers, 34n, 4Bn convention, 10, lln, 12, 12n, 31n fall meeting, 'Toronto, 31n Dr. Newbern Smith gets Diamond Award, 38n fellows named, 38n Robert H. Marriott dies, 44n iBOR — see Unions ERCHANDISING, TV SET (see also individual manufacturers) Chicago conventions, 1 Commerce Dept, retail sales surveys. In, Bn, 2Bn top New York brands, 2n IMort Farr NARDA president, 3n Philadelphia sales. Bn, 18n, 4Bn Crosley stations promotion, 6n impact of proposed tax increase, 6, 7 "conservation” publicity worries trade, 7n, 8 economist dubious of 10,000,000 19B1 market, 8n Census Bureau reports sales, 8n, 12n, 14n, 26n sales lag, 9n, 10, 11, 12, 14, IB, 16, 17 ^rmy camps seen as good market, 9n ‘negative selling” in Springfield, Mo., 9n ‘blue-book” proposed for trade-ins, 13, 16 rV-radio third in home furnishings in I960, 13n ' Good Housekeeping’ survey of purchasing, 13n Washington BBB standards, 14n f. Y. standards committee, IBn Vdmiral promotion, 16n ittempts to ease credit controls, 17, 17n et price guarantees, 18 lept. store TV inventories, 18n legulation W, 19, 21n, 22n, 23n, 24n, 26n, 29, 30, 31, B2n et auctions, 20n, 21n, 2Bn air trade decision, 21n, 22n ^TC fair trade practices conferences, 22n, 23n, 2Sn, 34n, 39n, Bln 'V third in appliance sales, 24n Westinghouse “Old Trader” campaign, 26n Videotown survey of replacements, 26n NAMM Chicago show, 28n, 29n “how to sell” articles, 29n Western Merchandise Mart, 31n dealer bankruptcies increase, 31 New York BBB warns about “no money down,” 32n, 3Bn, 36n NEDA officers, 37n, 43n Kansas City Electric Assn, promotion, 40n Sanabria attacks network set-labeling, 41n survey of manufacturers’ sales outlook, 42 ‘Milwaukee Journal’ receiver ad policy, 43n DPA-NPA consider set inventory controls, 44n FTC accuses Covideo of false ads, 44n FTC studies $1 ads, 4Bn, Bln N. Y. code of ethics, 47n Washington self-censorship collapses, 48n Richmond distributors cooperative ad, 48n marts, distributor meetings, BOn, B2 OPS ruling on warranties, S2n Philco film service for dealers, B2n Crosley exclusive franchises, 62n MILITARY PROCUREMENT— see Mobilization MILITARY, Use of TV by Naval reserve training, 8n, 36n ‘Marine Corps Gazette’ article, lln radio-controlled bombs, lln local-interest film program, lln guided missiles, 21n ad budgets, 31n Defense Dept, filming European rearmament, 31n Signal Corps’ mobile unit, 36n recruiting, 38n, 49n network kines sent to armed forces, 39n Army cancels all ads, 42n Navy underwater camera, 47n MOBILIZATION & WAR materials conservation, 1, 2, 4, 6, 6, 7, 8, 9n, IB, 16n, 40, 46 appliance cutbacks. In security guards, In, 4n anti-hoarding measures. In civil defense equipment. In, 9n, B2n Paley heads materials survey, 2, 4n Coy mentioned for mobilization job, 2 anti-trust measures, 2n Munitions Board reorganization, 2n RTMA shortage census, 2n unclassified govt, contracts, 2n, 3n, Bn, 6n, 8n, 9n, lOn, 12n station construction, 3, 6, 19, 20, 21n, 23n, 2Bn, 27, 28n, 29, 30n, 31n, 32, 3Bn, 37, 38, 40, 43, 61 Controlled Materials Plan, 3, 12n, 14n, IB, 18, 19n Signal (3orps Procurement expansion, 3n, Bn aircraft electronics, 4, Bn, lOn ESA field offices, 4n tax amortization of plants, 8, 10, 33n Clark vice chairman. Munitions Iloard, 4n price-wage controls, 4n, Bn, 7n, 9, 14, 17, 18n, 21n, 22n, 31n, 41n, 43n, 47n, 48n, BOn AEPEM mobilization committee. Bn Defense Minerals Administration goals. Bn, 13n RTMA classifies components. Bn distributors suggested for subcontracts, 3n, 6n civil defense communications, 7, 7n, 8n, 13n, 31n small business, 3n, Bn, 7, 12n, 16n, 20n, 27n, 47 Air Force New York exhibit, 7n, 8n ‘Munitions Board Progress Reports’, 8n exploration for minerals encouraged, 8n Army Ordnance exhibits, 9n “planned compliance program,” 9n, IBn NPA repair parts policy, 10, 28n, 43n, Bln Weiss heads OCR, 10 distributor committees, lOn, 20n Electronics Production Board, 11, 12n, IS Sprague estimates military dollar volume, 12, 21 RTMA conservation efforts, 12, 39 congressional hearing, 12n receiving tube committee, 13n list of “essential activities” personnel, 14n, 18n Gen. Back chief signal officer, 14n Mobilization Policy Board, 14n NPA appeals board, 17n Gibson acting DPA administrator, 17n Daley resigns from NPA, 18n fiscal 19S2 military budget, 18n materials exchange program, 20n FCC role in station construction, 22 flexibility in product shifts, 2Sn, 31 speculation over post-Korean trends, 27 ‘Fortune’ evaluates “The Electronics Era,” 27 top defense contractors, 29n, 49n copper strike, 30, 36 amateur assistance, 30n, 40n Defense Materials Procurement Agency, 31n NPA Electronics Div. personnel, 32n, 34n Adm. Redman heads JCS communications, 34n Watts back to RCA part time, 34n Wilson testifies on electronics progress, 33n NPA Electronics Div. moves, 33n, 34n DPA forms contracts task group, 38 distribution of contracts, 38 Congress attacks gray marketers, 38n Wilson’s reports to President, 13, 40n RDB committees on reliability, transistors, 42n GE’s Dr. Baker on electronics in defense, 43n Jess Larson predicts years of metals scarcity, 43n DPA-NPA consider set inventory controls, 44n OPS permits price boosts, 46 “small business” redefined by Govt., 4Bn jukebox allocations, 46n Dutch prepared to make equipment for allies, 46n deal for Canadian aluminum, 47n new Signal Corps training center, 48n Senate committee sees “dangerous” lag, 48n GE tube reliability program, 49n foreign components, 44n, Bln transmitter makers list problems. Bln Bedford military production czar, 62n Rear Adm. Ammon director of naval communi- cations. B2n MONOPOLY — sec Anti-Trust MOVIES (see also Subscription TV, Surveys) TV may help, says financial analyst, 2n TV and film resolution compared. Bn SMPTE's David Sarnoff Gold Medal, Bn TV blamed for theatre bankruptcies. Bn raw film availability, 6n, 7n boxoffice up. 7 civil defense films. 7n Ohio TV film censorship bill, 8n Fairbanks predicts $10,000,000 in TV film in 19B1, 8n Supreme Court forbids censorship, 9n United Television Corp. films, 12n FCC to consider applications on case-to-case basis, 13, 14, 16 value of film for TV, 13, 18n Lippert-Petrillo agreement, 17, 21n stations form production group, 17 SMPTE convention, kine developments, 18 Eastman’s new 16mm projector, 18n Telecasters Film Syndicate Inc., 18n unions aim for pay for film TV rentals. 20n Zanuck claims public cares little for TV, 21n Isaac Levy heads big film group, 22, 27, 29n, 3Bn Disney enthusiastic about TV, 22 Paramount buys into Telemeter. 22n Republic offers films to TV, 23n, 26n, 27n, 29n, 30n, 34n Paramount evaulates TV in annual report, 23n Cameron-Wade Television Productions, 24n Monogram releases, 2Bn Warners offering TV unproduced stories, 26n NBC plans leasing films to theatres, 26n ‘March of Time’ drops movie series. 27 TV film roundup by ‘Wall St. Journal’, 27n Lippert cancels planned releases to TV. 28n, 36n code of ethics adopted by TV film producers, 29n Snader Productions releasing Korda films, 29n UP-20th Century plan film-news TV service, 30n COMPO discusses TV impact, 30n Ford Motor films, 30n films encroaching on live networks, 31 ‘Fortune’ says movies can win control of TV, 31n, 32n Selznick said ready to release films, 31n Procter & Gamble plans films in Paris, 31n Cathedral Films releases 40 pictures, 32n old Fairbanks pictures to be released, 32n KLAC-TV buying S2 from Quality Films, 32n Paramount hearing set, 32n, 41n, 46n, 47n, 62n film deterioration, 32n pre-1948 Paramount films to TV, 34n Screen Gems merger, 36n Snader offers Korda films, 3Bn Mayer reported planning TV films, 3Bn Falcon Films formed, 36n Eastman Kodak estimates 19B1 film use, 37n TV-film roundup by ‘Broadcasting’, 37n Republic estimates TV profits in library, 37n NBC-TV buys Vitaphone studios, 37n Goldwyn on TV vs. movies, 38n SMPTE convention, 39n Technicolor expansion, 40n Lurie’s financial analysis, 40n Rosalind Russell pre-tests story on TV, 40n Petrillo predicts 70% of TV programs from Hollywood, 40n Paramount expands TV film service, 43n UP-Movietone TV service, 43n Reeves magnetic soundtrack, 43n Autry sues Republic, 43n, 44n Odyssey Pictures Corp., 44n TV easing Hollywood unemployment, 46n Decca buys into Universal Pictures, 4Sn few old features for TV left, says ‘Variety’, 4Bn banker’s dim view of TV profits in features, 46n Selznick offers ‘A’ pictures, 48 Edward Cooper MPAA TV director, 48n, Bln Bank of America films, 49n British films for U. S. TV, BOn suit to force UA pictures to TV, BOn Roach sees movie-TV harmony. Bln value of TV film re-runs. Bln Muzak may enter TV film field, B2n Raibourn sees TV impact on movies waning, B2n Theatre TV discrimination by AT&T charged, 2n Paramount’s report to FCC, 2n state regulation, 4n cross-polarization experiments, 4n exclusive basketball game, 6n Eidophor, 7, 18n, 29n, 40n, 46n, 47, 49n, Bln theatre carries station newscasts, 8n Empire State antenna, lln FC(i hearing set, 17n, 29n, 31n, 37n United Paramount equipment orders, 18n Halpern estimates audience growth, 20n football, 22n, 32n boxing, 23, 24, 26n, 26n, 32n, 33n, 36, 37n outbid by manufacturers, 29 California chain plans, 31n Denver plans, 33n, 37n, 38n industrial frequencies, 36n, 49n, BOn, B2n civil defense test, 36n, 39n image-correcting lens, 36n Congressional opposition, 37n tax proposed, 37n Trad “Tradiovision,” 38n uproar over Robinson-Turpin fight, 38 3 boxing promoters consider own network. 38 TOA New York convention, 39 equipment makers, 39n RCA color. 39, 42 Denver World Series, 41n Paramount plans color for its system, 43 MPAA appoints hearing counsel, 44n Theatre TV Authority, 45n NPA color ban, 47 TNT-Garden agreement on sports, 47n Skiatron “Ultrasonic” system, 51n MUSIC AGENCIES ASCAP negotiations, 3n, 8n, lOn, 12n "The ASCAP Story’, 8n League of American Song Writers formed, 27n court asked to set ASCAP rates, 29n BMI income, 42n MUTUAL BROADCASTING SYSTEM (MBS) rate cuts, 22n Macy-O'Neil merger. 41 NATIONAL ASSOCIATION OF RADIO & TELE- VISION BROADCASTERS (NARTB) Ryan named BAB president. In warns of station personnel shortage, 3n NARTB formed. 5 estimates nation’s radio families, 5n new president, 2n, 6n, 9, lOn, 14n convention, lln. 12n, 16 affiliates’ rate-cut committee, 16n FM committee, 29n members. 42n Miller named SSB chairman, 45n TV Activity NARTB-TV formed, 3, 5 dues structure, 8n Thad Brown named counsel. 8n Coy sought as president. 9, lOn, 16n NARTB-TV members signed, lOn, 36n, 38n code, 16n, 20n, 25, 31n, 36n, 40, 42. 48n, 49, 50n petition to drop oral freeze hearing, 27 engineering committee. 27 program standards committee, 28n, 29n station personnel statistics, 29n “essential industry” campaign, 33n attacks Sen. Benton’s bills, 36n estimates station income-costs, 38 baseball committee, 38n construction cost study, 50 CBS joins NARTB-TV, 51n NATIONAL BROADCASTING CO. (NBC) AM rate-cut plan dropped. 1 Burr Tillstrom contract. In, 13n new coverage yardstick, 3. 5n considers candy-popcorn for studios, 9n 25th anniversary, 9n. 37n theatres for studios, lOn, 15n Berle 30-year contract, 12n counters ANA rate-cut campaign, 12n Margaret Truman contract, 13n unit reports for Army duty, 15n cuts AM rates, 18 joint NBC-affiliates committee, 20n, 23n Hofstra College study, 24n Berle "telethon,” 24n radio billings estimated, 28n Bose Bowl, 31n AM promotion, 32n buys old Vitaphone studios, 37n compares receiver & newspaper circulation, 38n syndicating daily newsreel, 39n buys Vitagraph studios, 40n international TV pickup, 40n new AM networking proposal, 40, 45, 46n, 51n 1951 sales, 42n theatre pre-tests of TV acts, 44n Ralph Edwards 5-year contract, 45n Boca Raton convention, 48 Gian-Carlo Menotti opera, 48n, 52n Madden on future of TV rates, 49 Burbank studios, 5 In raises O&M TV station rates, 51n raises network TV rates, 25, 52 McConnell predicts TV in 1955, 52n NATIONAL PRODUCTION AUTHORITY— see Mobilization NETWORKS, Interconnection Facilities coast-to-coast. In, 8n, 18n, 30n, 31, 32, 33n, 35n, 36, 37n, 38n extensions beyond 1951, 6, 48 possibility for “wavetrappers,” 9n New Orleans. 12n, 48 roundup of 1951 plans, 20, 32 AT&T says facility costs minor, 32n Portland. Seattle. 33n, 35n Detroit-Toledo, 36n coaxial-microwave mileages. 36n Birmingham-Atlanta, 37n Kansas City-Dallas, 37n, 48 tapped in Denver, 39n Pittsburgh-St. Louis, 43n Buffalo-Toronto, 45n NEWSPAPERS. TV’s IMPACT ON (see also Surveys) sales increase in TV areas, 5n, 23n ’Editor & Publisher’ warns of battle, 23n newspaper associations weigh TV inroads, 27n evaluated at AP Managing Editors’ Assn, con- vention, 39n PATENTS Western Electric, AT&T, IT&T pool, 23n SarnofT awarded early-warning patent. 48n filing rule proposed by FCC, 48n Govt. lists free patents, 51n PHONEVISION— see Subscription TV POLITICS McKinney station ownership, 44 TV in Halley election, others, 45 Congressional recording facilities, 46 convention sponsorship, 28n, 32n, 38n, 46n, 52n FCC ruling on political broadcasts, 48n, 49n Senators owning AM stations, 60n GOP TV-radio-press-movie chairmen, 51n 18,000,000 sets by election day, 51n Sawyer buys WCOL, Columbus, 52n PRICE CONTROLS — see Mobilization PROFITS, TV STATION— see Financial Activity PROGRAMS AND PRODUCTION United Television Programs Inc., 2n, 3n FCC programming inquiry. 3n, 4, 5, 16n electronic prompter, 5n daytime shows in ’Sponsor’, 6n atomic flashes telecast, 6n ‘Best TV Plays of the Year’, 6n Kefauver Crime Committee telecasts, 8n, 9n, 11. 12. 13n, 18n. 32n protection of program rights, 8n “scenery savers,” 8n, 9n civil defense activities, 7, 7n, 8n, lOn costs reported up 33V3%, 9n censorship advocated by Rep. Lane, 9n DuPont Awards, lOn, 51n Metropolitan Opera TV dept., 14n Gloria Swanson, 15n Hemingway works, 15n ‘Our Gang’ comedies, 16n Un-American Activities Committee, 15n, 39n MacArthur coverage, 16n Peabody Awards, 17n FCC aural-visual ruling, 18n PRB Inc. dissolved, 19n “Studio One” costs, 20n ‘Billboard’ questions Hollywood TV future, 20n Gould criticism, 24n DeForest’s evaluation, 24n arguments over televised hearings, 24n, 26n, 51n Lutheran Church plans series. 26n $800,000 awarded in “Bride & Groom” plagi- arism, 27n UP-20th Century plan film-news TV service, 30n INS special TV service, 30n network rivalry, 35 Coy’s opinion of FCC authority re commercial stations, 29, 35, 43n Catholics plan to classify programs, 36n John Crosby attacks “freeze in ideas”, 38n debate over TV role in investigations, 15n, 38n talent costs, 38n Jack Gould notes growth of British film use, 39n “immoral” programs attacked by archbishop, 39n NARTB-TV adopts programming code, 42 March of Time half-hour films, 44n Sylvania awards, 45n Paris UN kines, 46n Garroway 7-9 a.m. on NBC-TV, 47n, 49n, 50, 51n Davis defends Chicago originations. 49n RCA special effects amplifier, 51n ‘McCall’s’ awards, 52n RADIO-TELEVISION MFRS. ASSN. (RTMA) McDaniel named president, 2, 7 Joint Electronics Industry Committee, 6n policy committee, 7 1950 set shipments, by counties, 9 members’ govt, orders, 9n, 22n, 40n 1950 broadcast equipment sales, 9n Sprague tells Congress of engineer shortage, lOn Sprague IRE convention speech, 12n Sprague explains overproduction, 16, 17 Sprague and Plaraondon speak at Parts Show, 21 new directors, 23n prestige and morale ads, 23n statistical department, 23n, 43n bankruptcies, 23n, 26n, 27n, 28n McDaniel outlines long-range goals, 23n membership, budget, 23n new legal committee, 28n small business, 21n, 23n, 28n, 34n, 38n, 46n TV committee, 30n chairmen of industrial relations, tax, traffic com- mittees, 33n seeks set servicing solution, 38n, 41n baseball committee, TV activity. 38n lists metals savings, 39 panel discussion of 1952 outlook, 42n local sports committee, 44n Chicago board meeting, 46 moves to Wyatt Bldg., 52n REPRESENTATIVES, TV STATION Katz says spots 19% cheaper than network, 13n Christal forms firm, 40n station switches, 44n association officers, 51n RECEIVER INSTALLATION & SERVICING Philadelphia Assn, guarantees against bankrupt- cies, 2n national association, 3n, 5n warranty on CR tube only, 6n RTMA acts to forestall shortages, 7n, 15 industry seeks to improve servicing, 10, 38n state legislation, lln Western Union enters field, 16n, 30n, 32n sets on Sun Oil tankers, 20n Blees predicts future like auto servicing, 27n Farr’s “cash and carry” system. 27n Philadelphia BBB booklet, 31n non-profit servicing plan, 32n servicemen endorse Pennsylvania licensing, 32n New York City licensing, 39n, 46n Philadelphia 50-point plan, 39n Westinghouse Cleveland service center, 48n RECEIVER PRODUCTION (see also indiridoal manufacturers. Merchandising, Mobilization) 1950 volume, value, average prices, 2, 6n, 23n receiving tube production, 2n, 13n, 17, 30n, 36n, 39n, 45n, 49n Radar-Radio Industries of Chicago, 4n oscillator radiation, 4n, lln, 20n, 23, 40 rail strike, shutdowns, 5, 6 factory price average, 6, 11, 37 exports. 6. 27n, 30n, 39n, 43n stove with built-in ‘7-in., 9n RTMA 1950 breakdown, lOn, 23n Electronic Parts Mfrs. Assn., lln layoffs, 13, 15. 17, 30 Sprague explains overproduction. 16, 17 custom sets, 19n average wage. 19n bankruptcies, 23n, 26n, 27n, 28n, 44n total employes in industry, 24n vacations, 25 battery set, 26n ‘Fortune’ evaluates “The Electronics Era,” 27 Sylvania estimates tube replacements, 28n AEPEM officers, 29n Dun & Bradstreet Inventory survey, 30, 36n, 39 Philadelphia average price, 33n, 45n top 10 producers guesstimated, 37n transistors, 39, 46n boosters, 40n survey of manufacturers’ sales outlook, 42 NPA sees 3V>-i million sets in 1952, 44 “small business” redefined, 45n FCC asks groups to combat interference, 46n DPA employment study, 47n 0. H. Caldwell summarizes electronics economics, 3n, 52n RECORDS AND TAPE RECORDINGS WFIL adopts 45rpm exclusively, 20n Decca buys into Universal pictures, 45n 16rpm, 46n Phillips entering international field, 50n tape duplicator, 52n SERVICING & SERVICEMEN— see Receiver In- stallation SMPTE — see Movies SPORTS peak TV impact period over, says Jordan, In state legislators against TV bans. 4n team performance first gate criterion, says Jor- dan, 31n, 48n RTMA local sports committees, 44n, 51n TV at 1952 Olympics, 52n Baseball National League bans network telecasts, 2n RTMA subcommittee, 7n, 38n Los Angeles, Hollywood contracts, 7n Schaeffer signs 7-year contract with Dodgers, 9r 1951 lineup, sponsors, 13n Johnson bill re anti-trust, 21n, 23 House monopoly inquiry, 32n Pirates telecast 3 games, 34n Series piped to sets in Denver, 39n, 40, 42n playoff and World Series, 40n TV-radio provides 10% of leagues’ revenues, 43r Jordan survey, 48n m.ajor teams curtailing 1952 telecasts, 49n, 50n DiMaggio and Henrich TV announcers. 51n Basketball KFI-TV forms own league, 5n Fabian exclusive in Albany, 6n Boxing championship telecasts, 2n, 8n theatre TV, 23, 24, 25n, 26n, 32n manufacturers outbid theatre TV, 28, 29 Louis-Marciano, 42n Football West Coast ban for 1951, In one-year moratorium voted by NCAA, 2n U of Pennsylvania defies NCAA, 6n, 21n, 23, 24i' Ohio legislature favors OSU games on TV, 8n “controlled TV” plan, lln, 15n, 16n, 20n, 27np 30n, 32n, 36n Pennsylvania & Notre Dame follow NCAA, 29 Justice Dept, acts against National Footbal League, 41, 44n, 48n, 62n AP survey of attendance, 45n NCAA relaxes restrictions. 46n, 47 Jordan analysis. EC A A continues controls, 50n ' Minor Sports Crosley drops wrestling, 2n ' impact on hockey, wrestling, 51n STATION CONSTRUCTION CONTROLS— see Mobilization SUBSCRIBER-VISION— see Subscription TV SUBSCRIPTION TV backed by Sen. Benton, 15 questions facing systems, 34 urged by Rubicam and Wick, 45 RTMA board asked to take stand, 46n survey of Minnesota set-owners, 48n Phonevision tests, public reactions. In, 2n, 4n, 6n, 6n, 14n, demonstration for F(1C. broadcasters, 16n promotional efforts, 38, 39n $50,000 fee to Finnegan, 49n, 50n RCA “dark horse,” 45 Subscriber-Vision demonstrations for FCC, lln, 12n requests films from majors. 51n, 52n Telemeter tests, 34n, 37n, 41n, 52n 21i 4 promotional brochure, 45 Ridenour engineering director, 45 SURVEYS (see also Home, TV’s Impact On) Jordan, peak impact period over. In Advertest, night viewing, 2n American Booksellers Assn., book sales, 3n Pulse, daytime viewing, 4n Lexington, Ky., set census, 8n Hooper expansion, 8n, 30n WOR-TV, AM preferences of viewers, 8n Pulse, radio purchases among TV owners, 8n WBTV, viewers’ income, home ownership, 8n BBDO, affect on movies, radio, reading, 13n NBC-Hofstra, 24n WFAA-TV, 25n Woodbury College, 27n Advertest, daytime viewing, 27n Advertest, set buying habits, 31n Videotown, purchases, home habits, 35 Pulse, program preferences, 37n college viewing, 39n ‘Good Housekeeping’, commercials, 43n Xavier U, TV and school work, 52n PAXES excise. In, 5n, 6, 7n, 8n, lOn, 11, 13n, 16n, 18n, 19n, 20, 21n, 26n, 30n, 31n, 35n, 44n, 49n corporation, excess profits, 9n, 21n, 24n, 30n, 37n, 38n, 42n Ridgewood, N. J„ property assessment, 30n PELEMETER — see Subscription TV PELEVISION FUND — see Financial Activity, General PHEATRE TV— see Movies POA — see Movies PRANSIT FM — see Frequency Modulation PRANSMITTERS — see Equipment, Telecasting PUBES, TV PICTURE (see also individual manu- facturers) electrostatic, 1, 3, 6, 9, 25 price cuts, 2n, 5n size, shape trends, 5, 21n, 47, 50 life expectancy, 5 RTMA production, 5, 9n, 14n, 18n, 22n, 27n, 31n, 36n, 40n, 45n, 50n National Assn, of Cathode Ray Tube Mfrs., 13n production cutbacks, 17 replacement market, 21n cylindrical face, 47, 50 Navy study of luminescence, 51n UHF (Ultra High Frequency) Receivers & Converters analysis by FCC Labs, 5n GE, 9n, 12n, 15, 16, 18, 23 reports at IRE convention, 12n roundup of availability, plans, 14 Zenith, 14, 15, 17n Crosley, 16 Air King, 19n RCA, 21n Hallicrafters, 21n Standard Coil strips, 23 FCC Bridgeport trip, 26n, 26n Sarkes Tarzian, 40 test equipment, 43n Stations Lancaster experimental revoked, 6n GE, Syracuse, 9n WELI enthusiasm, 15 John Poole’s Mt. Wilson tests, 18 first commercial application, 22n 850-856 me in Bridgeport, 29n, 37 WHUM experimental application, 33n, 38n, 43n, 46n, 47n, 49n Sylvania, Emporium, 38n FCC considering relaxing 6-station rule, 44 demonstration at NBC convention, 46n WIL’s Chapin sees great future, 48n Westinghouse, Philadelphia, 49n benefits from freeze, 60 Transmitting Equipment GE developmental program, 9n, 12n, 16, 16, 18, 23 reports at IRE convention, 12n RCA, 18 tilted antenna, 19n transmission lines, 18, 62n UNIONS lUE seeks wage raise, 6n CBS election, 8n AFM negotiations, 2n, 3n, 6n, 7n, 8n, 9n, lOn, lln NABET joins CIO, 12n SAG upheld by NLRB, 13n KFI-TV strike, 16n, 16n, 29n lUE proposals to ease layoffs, 16, 19 IBEW approaches FRB, NPA, 20n UAW plans Detroit application, 23n RWG charges “blacklist”, 23n Petrillo agreements on film, 23n, 24n IBEW complains to President about layoffs, 27n SAG defeats TVA in 6 Los Angeles elections, 27n SAG signs with 37 film companies, 29n AFRA bars Communists, 32n job prospects, 36n Chicago employment, 38n lUE notes manufacturing profitability, 38n GE-IUE contract, 40n extra pay asked for TV films in theatres, 42n NLRB ruling on film and live TV actors, 42n KTTV telecasts union negotiations, 62n VHF (Very High Frequency) Communications Policy Board, 7n, lln, 13 FCC stops station experimentation, 13n temporary power increases, 30, 31, 32, 33n, 34 rule-of-thumb for station coverage, 35 Dr. Baker estimates post-freeze growth, 37 freak reception in Denver, 37n tropospheric reception on East Coast, 39n WLTV, Atlanta, on air, 39 WNHC-TV exception to Fifth Report, 41n Comr. Sterling suggests “satellites”, 44, 48 WSM-TV booster experiments, 50n list of CPs dropped, 61 reception in Longmont, Colo., 61n Allocations Siragusa suggests FM band for TV, 1 educational hearing, 4, 5 KHON asks partial freeze lift, 4n, 5 general-issues phase ends, 6 directional antenna tests, 7n, 13n new allocation plan, 10, 11, 12, 13 Celler bill on reservation, 14 Sen. Benton requests educational study, 15, 19, 20, 22 freeze-end estimates, 3, 17 FCC mail on freeze, 17 comments filed on allocations, 17n, 18, 19 legalities of procedure questioned, 18, 19, 20, 24, 25, 26, 28 DuMont shows plan to Congress, 21n, 22 Sen. Johnson questions allocation legality, 22, 23 Sen. Benton proposes advisory group, 22, 23 dropping oral hearing considered, 24, 25, 26, 27, 28 29 470-600 me band, 28 allocations flexibility sought, 28 Coy testimony before Senate committee, 29 “paper” hearing ordered, 30 first request for oral presentation, 38n, 43 Sen. Johnson files comments on Colorado, 40 Mexican border agreement, 43, 45n, 47n, 49n FCC estimates of freeze end, 44 predictions on post-freeze construction, 48 Bar Assn, recommendations on applications, 48 channels 5 & 6 for Hawaiian phone use, 48n New England allocations, 49 JCET recommendations on applications, 60n WAGE CONTROLS— see Mobilization MANUFACTURERS AND MERCHANDISERS DMIRAL CORF, suggests FM spectrum for TV, 1 new sets. In, 19n, 33n, 51n 1950 sales, 1951 orders, 2n dehumidifier, 4n financial reports, 9n, 16n, 29n, 43n, 46n , price cuts, 11 stock ownership, officers’ salaries, 13n uhf sets, 14 i Canadian plant, 15n promotion with radio giveaways, 16n , 2,000,000th TV set, 16n hotel installations, 19n production rate, 19n, 30n I govt, orders, 29n expansion, 32n color slave, 33 dickering to buy Norge, 48. 60n, 61n, 62n EROVOX CORP., In, 6n, 9n. 16n, 20n, 26n, 30n, ' 38n (R MARSHAL CORP.. 3n WERICAN PHENOLIC CORP., 21n, 36n, 47n , HERICAN STRUCTURAL PRODUCTS CO., 6n ^SLEY RADIO & TELEVISION, INC., 15n JDIO & VIDEO PRODUCTS CORP., 30n i^’CO — see Crosley !LMONT — see Raytheon :ndix radio div., bendix aviation CORP. lew sets. In nilitary subcontracts, 3n inancial reports, 6n, 16n, 20n Canadian distributor, 6n >acklog of orders, 13n ■ptimistic ad, 19 expansion, 19n, 30n :olor converter, 25 AW-KNOX, 31n UNSWICK DIV., RADIO & TELEVISION, NC., 13n DILLAC ELECTRONICS CORP., 7n, 14n PEHART-FARNSWORTH CORP. ■ nancial reports, 15n, 39n ; T&T buys Coolerator, 29n, 30n T&T buys into Kellogg Switchboard. 32n lyoffs, 37n ew sets, 43n lock issue, 43n 3-COLUMBIA INC. (formerly Air King) ew sets, 2n, 9n, 13n hf converter. 19n color sets, 23, 29 price cuts, 36n 2 discs in color-monochrome sets, 39n new distributors, 46n NPA appeal, 46n buys Mack Long Island plant, 47n expansion rumors, 49n CLAROSTAT MFG. CO. INC., 35n COLLINS RADIO CO., 18n, 20n, 35n, 43n, 45n CORNELL-DUBILIER, In, lln, 23n, 33n, 38n CORNING GLASS WORKS, 6n, 32n, 41n, 46n CROSLEY DIV., AVCO MFG. CORP. layoffs, 1 ‘Fortune’ article. In financial reports, 3n, 7n, 9n, lln, 12n, 26n price cuts, 8n, 62n expansion, 9n, 42n, 49n uhf set, converter, 14, 15 Avco buys Horn Mfg., 18n Avco selling ACF-Brill stock, 20n fire, 24n Avco sells American Airlines stock, 24n color converter, 25 Gen. Wedemeyer named Avco v.p., 26n Avco loans, 27n, 29n new sets, 33n $2,000,000 promotion, 40n plans new appliances, 40n, 44n buys Brand & Millen, Canada, 43n exclusive dealer franchises, 62n DELCO (GENERAL MOTORS), 31n DOMINION ELECTROHOME, 38n DUKANE CORP., 30n ALLEN B. DuMONT LABORATORIES INC, offers color scanner, 2n sued by CBS on color, 4n, 7 financial reports, 8n, 18n, 21n, 26n, 31n, 46n, 60n 30-in. set, lOn, 12n, 26, 39n South American distributors, 16n electrostatic tube, 17n price guarantee, 19n automatic focusing tube, 20n, 21n, 33n, 34n, 40n Dr. DuMont chosen “greatest name” in TV, 22n All-Americans on staff, 24n color enthusiasm, 25, 26 5x7-ft. & 16x20-ft. tubes, 26 tube warranty, 29n sues Tel-o-Tube, 31n new camera chain, 30n price cut, 37n DuMatic color switch, 37 estimates picture tube replacement market. 37n sees TV as business tool, 39n estimates receiver production, 39n “World Series Clubs,” 39n industrial color, 40n Dr. DuMont estimates 1962 business, 41n Passaic calls itself TV birthplace. 42n tuner tradein, 43n ‘Station Planning’ booklet, 44n Dr. DuMont talk at company’s anniversary, 46 “Photovision” project, 62n EMERSON RADIO & PHONOGRAPH CO. 12,000,000th radio, 2n financial reports, 3n, 6n, 22n, 36n price increases, 4n, 20n, 22n ads on Western Union envelopes, 6n new sets, 6n, 38n, 44n price cute, 18n color guarantee, 31n ESQUIRE RADIO CORP., 17n FEDERAL TELEPHONE & RADIO CO., 24n FREED RADIO CORP., lOn, 61n GATES RADIO CO., 27n, 46n GENERAL ELECTRIC CO. (GE) expansion, 6n, 8n, lOn, 16n, 18n, 22n, 27n, 29n new sets, 2n, 19n materials conservation, 8 Canadian sets, 9n uhf sets, 9n, lln, 15, 16n uhf transmitters, 9n, 12n, 16, 16, 18, 23 new tube warranty, 16n shipments to Brazil, 16n, 43n price guarantee, 18. 22n selective mobile system, 18n color experiments, 23 gives transmitter to U of Illinois, 25n TV inventory, 29 layoffs, 31n, 42n Paris dealer junket, 31n closed-circuit preview for dealers, 32n Illinois Cabinet Co. merger, 32n Dr. Baker on CBS-type color production, 33 automatic focusing tubes, 33n, 40n 24-in. tube, 33n, 36n price cute, 34n Dr. Baker predicts station growth, 37 notes industrial electronics growth, 39n lUE agreement, 40n Cornell electronics projects, 42n financial reports, 29n, 42n Supply Corp. expansion, 49n Dr. Baker on 1952 outlook, 61n GENERAL INSTRUMENT CORP., 5n, 6n. 21n, 28n, 41n GENERAL PRECISION LABORATORY, 28n, 33n 5 GENERAL RADIO CO., 30n GLOBE-UNION INC., 21n, 36n, 45n HALLICRAFTERS CO. 1950 output, value, 2 new sets, 2n financial reports, 3n. 12n, 21n, 47n expansion, 6n, 8n uhf set. converter, 14 color sets. 24n color “transcender”, 33 price cuts, 34n sets in Denver for World Series, 39n HAZELTINE ELECTRONICS CORP. color work, 7, 18, 25n, 31n, 32, 38n, 48n financial reports, lln, 60n termed "candidate for stock split”, 39n HOFFMAN RADIO CORP. financial reports. In, 12n, 19n, 30n, 44n price increases, 2n, 40n bids on Aireon Corp., 5n sponsors "recent” films, 8n expansion, 8n new sets, 16n, 31n, 48n fire, 23n New York office, 36n ad budget, 48n HYTRON RADIO & ELECTRONICS CORP. expansion, 4n financial reports, 6n bought by CBS, 15, 20n IMPERIAL TELEVISION MFG. CO., 49n INDUSTRIAL TELEVISION INC., 38n INTERNATIONAL RESISTANCE CO. financial reports, 9n, 17n, 34n buys Hardy Instrument Co., 29n stock increase. 51 n INTERNATIONAL TELEVISION CORP., 18n I-T-E CIRCUIT BREAKER CO., 36n INTERNATIONAL TELEPHONE & TELEGRAPH CORP. (see Capehart-Farnsworth) JACKSON INDUSTRIES INC., 2n, 14n, 35n KAYE-HALBERT CORP., 6n, 8n, 13n, 18n LEWYT CORP., 18n MAJESTIC RADIO & TELEVISION CORP, no new line for 1961 planned. In new sets, 7n, 49n price cuts, 14n electrostatic tube, 19n "coloramic” device, 24 MAGNAVOX CO. financial reports. In, 6n, 9n, 16n, 25n, 39n, 44n new sets, 2n, 29n expansion, 8n, 29n, 37n price cuts, 13n, 62n P. R. MALLORY & CO. ubf tuner, converter, 14, 46n financial reports, 14n Mallory-Sharon Titanium Corp., 14n JOHN MECK INDUSTRIES financial reports, 6n new sets, 14n, 16n price guarantee, 19n, 31n Scott merger, 40n, 43n, 46n, 48n MOTOROLA INC. new sets. In, 33n, 46n, 62n new Military Division, 3n ad plans, 9n financial reports, lln, 16n, 18n, 29n, 31n, 46n officers’ stock ownership, salaries, 16n employes’ fund, 22n Stellner and McDonald resign, 32n color slave, 33 termed "candidate for stock split”, 39n sets up own New York distributor, 41n Prudential loan, 48n Chicago-Hungerford microwave, 49n MUNTZ TV INC. new sets, 3n, 42n financial reports, 5n, 26n, 33n, 46n, 48n price cuts, 13n retail stores, 15n color plans, 23 reported planning new branches, 32n production rate, 36n price increases, 38n set sales, 42n closes outlets, 46n, 47n MUTER CO., 5n, 15n, 16n, 17, 31n, 43n NATIONAL ELECTRONICS MFG. CO.. 43n NATIONAL UNION RADIO. 14n, 18n, 31n, 49n NATIONAL VIDEO CORP., 22n NORTH AMERICAN PHILIPS CO. INC. new cathode, 20 n buys A. W. Haydon Co., 34n founder dies, 41n OAK MFG. CO., 13n, 19n, 33n, 35n, 39n OLYMPIC RADIO & TELEVISION INC. financial reports. In, 5n, 14n, 36n new sets, 2n officers’ Ftock ownership, salaries, 16n loan, 19n PACIFIC MERCURY TELEVISION CORP., 36n PACKARD-BELL CO. financial reports, 3n, 6n. lln, 15n, 24n, 30n, 43n new sets. 4n, 38n appeals NPA steel allotment, 36n PATHE TELEVISION CORP., 2n, 17n, 18n PHILCO CORP. materials conservation, 1, 2, 4, 7, 8 financial reports. In, 12n, 19n, 33n, 46n new sets, 2n, 22. 32. 36n 1950 advertising, 6n expansion. 9n uhf set, converter, 14 kitchen appliances, 16n employe furloughs, 17 cooperation with MIT, 17n officers’ salaries, iSn govt, orders, 19n, 21n drops plans for Frederick, Md. plant, 34n takes over Gough Industries. 44n Los Angeles branch, 49n TV film service for dealers, 62n PILOT RADIO CORP., 29n RADIO CORP. OF AMERICA (RCA) materials conservation, 1, 6, 8. lln, 19n Watts to DPA, succeeded by Smith, In, 34n televised microscopy, 2n $20,000,000 loan, 3n financial reports, 7n, 9n, 18n, 30n, 44n RCA Victor Distributing Corp. adds heaters, 9n layoffs. 14n Portland demonstrations, 17n theatre TV equipment sales, 18n, 61n Antenaplex installations, 18n, 19n, 45n, 48n Sarnoff’s sizeup of cultural TV, 20n community antennas, 20n named outstanding TV firm, 22n U of Penn engineering course, 26n expansion, 26n studies "white goods” field, 27n conservation handbook, 31n veterinary demonstrations, 31n European demonstrations, 32n, 34n, 36n Sarnoff suggests new agency for Voice of Amer- ica, 33n promote small business tieup, 34n Israel record plant, 36n Bridgeport uhf seminar, 37 Sarnoff celebrates 45 years in radio, 39 enters air-conditioner field, 39, 40n Mrs. Douglas Horton elected director, 40n Sarnoff interview in ‘U. S. News & World Re- port’, 46 NYU fellowship, 46n laboratory appointments, 47n Sarnoff awarded early-warning patent, 48n civil defense truck for Philadelphia, 62n Color TV appeal to Supreme Court, 4, 6n, 6n, 10. 11 tri-color tube, 10 "sampling” improvement, lln public demonstrations, 25. 27 tube symposium, 26 Coy inspects tri-color tube manufacture, 27 New York demonstrations for press, industry, 26, 27, 28, 29, 34n, 36n, 36n, 37. 39n, 42 Sarnoff plumps for dual standards, 33 CBS’s Goldmark deprecates tri-color tube, 36n network transmissions, 38n, 49n Washington demonstrations, 39n, 41n theatre TV, 39n, 42 Receivers licensees’ 1950 output, 2 Elliott says “business as usual is out”, 2 materials conservation, 1, 6, 8, lln, 19n uhf, 14, 21n Sarnoff predicts 6,000,000 in 1961, 16n new sets, 16n, 34n, 46n, 48n employe furloughs, 17 price guarantee, 18 Krich trade-in policy, 19n price cuts, 33 Transmitting Equipment uhf, 18, 19n full line described, 30n new remote devices, 48n Tubes price cuts, 15n electrostatic, 19n expansion, 22n self focus, 40n RAYTHEON MFG. CO. (Belmont) new sets, 2n, 13n, 37n financial reports, 2n, 14n, 20n, 27n, 31n, 32n, 40n distributors as military subcontractors, 3n expansion, 4n, 15n, 26n, 51n receiver cutbacks, 14n sells subsidiary, 23n Mexican distribution, 30n $4,000,000 note, 34n order backlog, 36n ad budget, 38n price increases, 46n REEVES SOUNDCRAFT CORP., 14n, 18n RICHMOND TELEVISION CORP., 7n, lOn, 17n SCOTT RADIO LABORATORIES new sets, lOn, 30n, 48n financial reports, 31n Meek merger, 40n, 43n. 46n, 48n SENTINEL RADIO CORP., 2n, 26n, 33n SHELDON ELECTRIC CO. (Allied Electric Prod- ucts Inc.) expansion, 4n electrostatic tube, 6n financial reports, 8n, 39n price cuts, 12n plans receiving tube production, 13n SIGHTMASTER CORP., 25n SILVERTONE (SEARS ROEBUCK), 13u SKIATRON ELECTRONICS & TELEVISION CORP, Subscriber-Vision, lln, 12n, 51n, 52n new board members, 17n theatre TV, 51n S. M. A. CO., 18n, 32n SPARKS-WITHINGTON CO. (Sparton) new sets, 2n financial reports, 6n, 39n expansion, 6 refrigerators, 17n SPRAGUE ELECTRIC CO., 5n. 13n, 15n STANDARD COIL PRODUCTS INC. expansion, 2n, lOn financial reports, 12n, 18n, 36n, 46n stock listed on N. Y. Exchange, 13n uhf tuner, 14, 23 STARRETT TELEVISION CORP., 2n STEWART-WARNER CORP. new sets, 31 n expansion. In financial reports. 15n, 31n, 43n price cuts, 36n STROMBERG-CARLSON CO. financial reports. In, 9n, 16n, 31n, 44n price increases, 2n new sets, 3n, 9n, 13n, 29n, 43n, 61n output cut, layoffs, 16n ad campaign, 34n color tests, 50n SYLVANIA ELECTRIC PRODUCTS CO. financial reports. In, lln, 17n, 30n, 44n price increases, 3n, 43n price cuts, 35n experimental station, 5n, 9n, 38n expansion, lOn, 15n, 23n, 24n, 26n, 31n, 41n stock issue, officers’ salaries, 13n, 19n, 47n output cut, layoffs, 16n govt, orders, 24n, 45n new seta, 29n electro-luminescence, 24n "Halolight”, 28n Puerto Rican subsidiary, 32n signs with lUE, 37n bond and stock issue, 40n, 41n picture tubes, lln, 12n, 15n, 25n, 40n, 47n SYMPHONY RADIO & TELEVISION CORP., 51 SARKES TARZIAN INC., 14, 40 TELE KING CORP. Virgin Islands plans. In new sets, 13n, 37n West Coast plans, 15n color plans, 23 TELE-TONE RADIO CORP. moves. In new sets, 2n color plans, 15n, 23. 39n financial reports, 17n strike, 34n govt, contracts, 33n TELETRONICS LABORATORIES CORP., 2n, 21 THOMAS ELECTRONICS CORP., 28n TRAD TELEVISION CORP., 16n, 29n, 38n TRANS-VUE CORP., 2n, 14n, 48n TRAV-LER RADIO CORP. new sets, 2n, 36n financial reports, 5n, 12n, 41n buys Telegraph Apparatus Co.. 37n TUNG-SOL ELECTRIC, In, 2n, 13n, 31n, 48n UTILITY ELECTRONICS CORP., In, 4n VIDCRAFT TELEVISION CORP., 7n, 9n VIDEO CORP. OF AMERICA, 61n WEBSTER-CHICAGO CORP. financial reports, 7n, 15n, 21n, 33n. 46n expansion, 18n “Webcor” trade name, 31n color slave. 33, 36n WELLS-GARDNER & CO., 14n WESTERN ELECTRIC CO., 9n WESTINGHOUSE ELECTRIC CORP. new sets. In, 31n financial reports, 9n, 21n, 31n, 46n expansion. lOn, 16n, 18n govt, contracts, 14n, 21n "Studio One” expenditures, 20n certificate of necessary, 25n loans, 48n buys out Pittsburgh distributor. 51n WILCOX-GAY CORP., In, 2n, 13n, 18n, 34n ZENITH RADIO CORP, (see also Subscription T^ financial reports. In, lln, 12n, 17n, 30n, 44n Rauland’s electrostatic tube, 12n expansion, 13n stock ownership, officers’ salaries, 13n, 30n uhf campaign, 14 gives transmitter to school, 15n evaluation of uhf strips, 15, 17n Teco Inc., 17n Washington distributor, 24n new sets. 29n, 37n termed “candidate for stock split.” 39n Rauland self-focus tube, 40n MARTIN CODEL's PUBLISHED WEEKLY BY RADIO NEWS BUREAU, 1519 CONNEaiCUT AVE. M.W., WASHINGTON 6. D.C. TELEPHONE MICHIGAN 2020 • VOL. 7, NO. 1 January 6, 1951 /Materials Scarce But Not Know-How, page 1. Rising Costs of TV Sponsorship, page A. \ Components Shortages — Danger Signs, page 2. Color Still Good Conversation Piece, page 5. In This Issue: ( Hopes and Doubts for Freeze’s End, page 3. Optimism in Chicago, Trade Well Up, page 7. I TV-AM-FM Stations as of Jan. 1, 1951, page 3. Shape & Size of 1951 Picture Tubes, page 8. \ Electronics Agencies Add Executives, page U- Financial, Topics & Trends, Mobilization, pp. 9-11. HANDY INDEX TO TV NEWS OF 1950: Index to our 1950 Newsletters, Supplements, etc., included herewith, should be valuable aid in tracking down major events, trends, facts, dates, as chronicled by Television Digest during the momentous year just past. We found it impracticable to catalog everything we published — but the im- portant items are pin-pointed for you. Use of this Index, of course, presupposes you have maintained your file of 1950 Newsletters and Supplements (Vol. 6;l-to-52). Note : Going into the mails next week, to full-service subscribers only, is our new 1951 AM-FM Directory — listing all North American broadcasting stations, CPs, applications, etc., with facilities, by countries, states & cities; by frequen- cies, and by call letters. In about week, we'll also mail our TV Factbook No. 12 which, like the AM-FM Directory, will start new series of weekly Addenda reporting FCC decisions, changes, etc. MATERIALS SCARCE, BUT NOT KNOW-HOW: Miracles of production ingenuity — almost too good to be true, frankly — were revealed this week. Claims we've heard, if fully realized, could mean continued high TV-radio production despite serious shortages of the most critical materials. First was disclosure by Philco president Wm. Balderston, at Chicago dis- tributors convention, that engineering-research v.p. Leslie Woods and his engineers have developed a TV receiver which uses: 25% less copper, 85% less cobalt. 85% less nickel, 25% less aluminum, and 67% less silicon steel. Production of this set by March can be achieved if necessary, he stated. Exact nature of set wasn't given — size, performance, whether other scarce materials are used, ease or difficulty of production, etc. — but Mr. Balderston did say that goal of company's "Material Conservation Program," started months ago with govt, blessing, was to "find ways and means of reducing or eliminating use of scarce materials in all our products without in any way affecting our quality." 4: 9ie Then, new electrostatic picture tube was reported "ready for production" by RCA. It requires no cobalt at all, uses neither cobalt-containing alnico focus magnet nor even copper-consuming focus coil. This new tube, alone, could reduce amount of cobalt used in sets by 75%-85%. Tube is said to be slightly bulkier than standard tubes, but apparently not enough to require cabinet changes. First unit will be 17-in. rectangular, but shouldn't be confused with 17-in. RCA has been shipping. Good guess is that similar tube contributes to Philco 's spectacular savings, since engineers have talked about electrostatic focusing (really an old principle) ever since cobalt shortage loomed. But another big tube maker is bearish about electrostatic tubes, calling them "dead as a dodo , " charging that they "create more problems than they solve" — Copyright 1951 by Radio News Bureau - 2 - such as circuit changes, longer tube, etc. However, he conceded possibility RCA has made improvements circiamventing some disadvantages. RCA's conservation program started in July, officials say, disclosing two other fruits of developmental work; (1) Nickel-coated steel strip replacing pure nickel receiving-tube plates (Vol. 6:49). NPA helped RCA obtain steel for this purpose. (2) Glass, instead of copper, for exhaust tubing in vacuum tubes. Full Story on materials conservation is yet to unfold. Since no company has monopoly on ingenuity, we should be hearing about more such tricks of the trade. Still to be indicated, too, is precisely what such savings might mean in terms of receiver production voliome. There's another face to the conservation coin, of course. Sylvania's H. Ward Zimmer puts it simply; Engineers find substitute, save a critical material. Company tries to get some, finds it on critical list, too. Then, since company hasn't been using any, it has no base period on which to expect an allocation. Company's suppliers have same problem, so engineers' efforts are frustrated. GONPONENTS SHORTAGES-DANGER SIGNS: Restriction ax fell this week on TV-radio's biggest entity — and its effects, possibly portentous, were felt immediately. RCA's component division at Camden, branch of Tube Dept., which makes speak- ers, coils, yokes, transformers, etc., goes on 4-day week schedule Jan. 8 — just one week after govt, limitations on nickel, copper and aluminum (Vol. 6:46-52) went into effect. RCA officials say layoffs are virtually certain by end of week unless restrictions are loosened. Disruption of set production seems inevitable, with stocks of some compo- nents whittled down to half-day's supply at RCA. RCA men went to Washington, told NPA officials; Unless Govt, grants immedi- ate relief from nickel and copper distribution orders. Tube Dept, alone will be forced to lay off 4000 employes — one-fourth its 16,000-man work force — during first quarter. "Excellent reception" by NPA officials gave rise to guarded optimism of RCA executives, who pointed out, however, that any loosening of restrictions will have to come quickly to be much help. An RCA officer listed shortage stumbling-blocks in this order; (1) nickel . (2) copper, (3) cobalt. He asserted RCA would be "much worse off" if it hadn't inaugurated intensive conservation program last July (see p. 1). Tube production, highly dependent on nickel, will hold up fairly well this month, RCA says, but real pinch — and layoffs at Harrison tube plant — will begin Feb. 1 unless enough material is shaken loose to last until military orders come in. Here's problem in nutshell, as it relates to tube production; It takes 4 months to train tube production worker. If some must be laid off, they'll take jobs elsewhere. When heavy military electronic production begins, instruction of new un- trained workers will consume valuable time, materials — if workers can be found. There were many rumors of cutbacks at other plants, but only official an- nouncement canfe from Crosley which said it has laid off 1000 workers at Cincinnati plant because of shortages — principally in cobalt, cadmium, copper, steel, nickel. It was not indicated what lines were affected, but Crosley noted that the plant had been manufacturing TV-radios on an overtime basis for several months. Sylvania fears it may have to cut back its TV receiver output 25-50%, let many workers go unless some relief on critical materials is afforded in next few weeks. TV lines are moving according to schedule at present, and rumors of shutdown of some lines were branded as false by company executives. "Lead time" — time lag between order and delivery of raw materials — is big problem now in scheduling production. In normal times, lead time was about 3 weeks; now it's much shorter in some materials. 3 HOPES AND DOUBTS FOR FREEZE'S END: Snd-of-f reeze remains clouded, both by FCC's unpredictable hearing and progress of mobilization (Vol. 6:52) — but everyone wonders whether there's some way to break the ice jam. Latest proposal, likely to get short shrift, came from Admiral president Ross Siragusa, during distributors' convention in Chicago this week. Said he: "The freeze... is not only discriminatory but unnecessary. By ending the freeze... and without touching the uhf, our engineers tell us over 100 nev; stations could be authorized without overlapping interference with present stations." Then he wrote off FM, urging its vhf spectrum be given over to TV, saying: "FM has never taken hold... The most charitable thing one can say about FM is that it is a dying art . The channels it is pre-empting should be put to real public service without delay by being shifted to TV." (Admiral TV combinations make FM available only on order, at $30 extra. ) These moves would bring TV to 3,000,000 more families, Siragusa estimated. "Uhf," he added, "can be opened later, when all technical problems are worked out." Meanwhile, FCC plans no change in hearing procedures. Educators asked for, and received, v/eek's delay in resumption of their testimony -- from Jan. 15 to 22. Their testimony, plus a few other odds and ends, should wind up general phase of hearing by month's end. "Mountain of work remains to be done" before freeze can end. Chairman Coy of FCC writes in Variety's Jan. 3 end-of-year issue. He lists steps remaining: specific allocations hearing. Bar Assn, oral argument on legality of fixed allocation, time to reach final decision, time for filing new applications, hearings in many cities. Then he concludes: "Even if near normal conditions prevail, it is doubtful if any stations can go on the air before the first of the next year." Unless Coy has some shortcuts up his sleeve — and he indicates none — he would appear to be as unduly optimistic as ever. TV-AN-FM STATIONS AS OF JAN. 1, 1951: TV continues locked in freeze, imposed in Sep- tember 1948 and likely to continue in effect all this year (Vol. 6:52) — but number of AM outlets grew while FM settled down to a hard core of operating stations. Only 9 TV stations went on air in 1950, bringing total to 107. They were: WSYR-TV, Syracuse; KEYL, San Antonio; WOI-TV, Ames, la. ; WHAS-TV, Louisville; WTAR-TV, Norfolk; WJIM-TV, Lansing; WKZO-TV, Kalamazoo; WHBF-TV. Rock Island, 111. ; WSM-TV, Nashville. Three CPs fell by default during year: WRTV, granted New Orleans Times-Picayune ; WRTB, Raytheon, Waltham, Mass. ; WJAX-TV, City of Jacksonville. Detailed data on all TV stations in the U.S. and Latin America, plus list of the 573 applications pending, plus allocation tables, directories of TV-radio manu- facturers , program syndicators, etc., digests of station rate cards, tabulations of monthly production and sets-in-use figures — all may be obtained from TV Factbook No. 12, which goes into mails to all of our full TV service subscribers Jan. 13. [Extra copies to subscribers, $2.50.] Our 1951 AM-FM Directory, which goes out to full-service subscribers next week [extra copies, $7.50], brings to light these pertinent statistics: (1) AM authorizations reached 2351 at end of 1950 (2199 licenses, 152 CPs), 105 more than the 2246 at end of 1949 (Vol. 6:1). There were 2131 at end of 1948 (Vol. 5:2), 1961 at end of 1947, 1579 at end of 1946, 1056 at end of 1945. Included in AM total are 34 non-commercial stations. (2) AM applications were squeezed down to 259 for new stations, 207 for changes in facilities, compared with 309 and 224, respectively, year ago. Dropped during 1950 were 17 AM licenses, 30 CPs. (3) AM stations in other major North American countries didn't change much. Canada has 162 (160 last year), Mexico 276 (273), Cuba 104 (94). (4) FM grantees continued making up their minds during year. In general, they either got on air and asked FCC for final license papers or quit. Of 706 gran- tees, 672 are on air (515 licensed, 157 with STAs). At end of 1949, there were - 4 - 791 grantees. 728 of which were on air. In addition, there are 70 non-commercial FM licensees, many of them 10-watters. Dropped during year were 47 FM licenses. 64 CPs. (5) FM applications have almost ceased coming in. There are only 8 pending, compared with 38 year ago. Many FM operators are watching FCC for ruling soon on such life-savers as transitcasting, storecasting, etc. Fate of quite a few hangs on decision. ELECTRONICS AGENCIES ADD EXECUTIVES: Current reshuffling of defense agencies is accelerating influx of top level business executives to Washington to work with Defense Mobilization Director Charles E. Wilson and Defense Production Administrator Wm. H. Harrison. Among those from electronics taking mobilization assignments are; W. W. (Wally) Watts. RCA engineering products v.p. on leave, who on Jan. 8 becomes an assistant to Gen. Harrison. He was a Signal Corps colonel during war under Gen. Harrison in procurement and distribution. Ray C. Ellis, Raytheon v.p., serving part time as special consultant on organization and personnel to Munitions Board chairman John D. Small. Ellis was WPB radio and radar director during World War II. * * ^ * Shakeup in govt, defense mobilization agencies is basically administrative — electronics industry continuing to deal with same offices and officials as before: Electronic Products Division, NPA, directed by John Daley and Donald Parris. Electronics Division, Munitions Board, headed by Marvin Hobbs. Under new mobilization setup, Gen. Harrison directs new DPA, similar to old WPB, a policy-making body with some power but not complete authority over military buying, and responsible only to Mr. Wilson as head of ODM. NPA*s policy will be made by DPA, but its functions are same as before. Head is Manly Fleischmann, ex-NPA general counsel, onetime WPB associate general counsel. And Mr. Wilson picked as his general counsel Herbert A. Bergson, center of controversy while prosecuting anti-trust cases as an asst. Attorney General. Added to staff of NPA Electronic Products Division this week was E. Mac- Donald Nyhen, ex- International Standard Electric (IT&T), onetime member of CBS technical operations staff and wartime Signal Corps lieutenant colonel. THE RISING COSTS OF TV SPONSORSHIP: CBS*s New York flagship WCBS-TV once again tops them all with base hour rate of $5250, one-minute rate of S675, effective Jan. 1. These new record rates come scant 4 months after WCBS-TV posted then highs of $2500 & $525 as of last Sept. 1 (Vol. 6:34). Hourly rate for Class A time (6:30-11 p.m.) compares with all radioes highest of $1350 for sister AM station WCBS. NBC's New York WNBT went to $3100 on network rate card as of Jan. 1, will probably go even higher on local rate card by Feb. 1; present local rate is $2500. and $500 per spot. DuMont ' s WABD goes to $2200 & $500 Feb. 1. ABC's WJZ-TV has stuck to $2200 & $500 since last September. These are by far the highest time rates in TV — nearest being $1000 & $200 of several Chicago and Philadelphia stations — justified by the telecasters on the basis of better-than-50% of homes with TVs in metropolitan areas (Vol. 6:51) and on claims of low cost-per-thousand viewers. By same token, if rate of TV set sales in New York area continues even at half-speed, it's conceivable $5000 an hour rate may come within year or two. New York trend is repeated, though on smaller scale, by nearly all the 107 telecasting stations in operation, whose 1951 rates are generally considerably higher than those of last year (see TV Factbook No. 12). These higher costs, plus increased performer fees forced by new union contract 6 weeks ago (Vol. 6:47), are causing no end of conjecture in TV-radio circles as to where it's leading. Will sponsors turn away from TV. favor radio and other media? Will subscrip- tion-TV (Phonevision) really be needed to bear the admittedly high costs of station operation? It's no secret many an advertiser and agency is wrinkling brows ponder- ing whether the show's worth the price. - 5 - Those few who are quitting TV (like Bonafide Mills on NBC-TV, whose talent budget alone went up to |8000 after TVA contract) are quickly replaced by others. Nor do sponsors show any signs of eschewing such favorites as the multi-sponsor "Show of Shows" on NBC-TV even though talent costs went up 15%. Possibly reassured that TV rate rises will serve as brake on defections from radio to that medium, radio broadcasters meanwhile aren't going to reduce their rates, as demanded. They even see increasing business ahead. This attitude was recognized by NBC, which dropped rate-cut plan, cancelled proposed Jan. 10 meeting with radio affiliates in TV cities — intended to persuade them to cut night radio rates because of TV inroads on listenership (Vol. 6:50). Almost to a station, affiliates opposed move, asserting: (1) Radio rate cuts are untimely and unwarranted. Network radio continues to offer values greater than competing media. (2) Recent changes in national eco- nomic picture indicate these values will increase in period ahead. (3) Operating expenses of radio continue to rise. COLOR STILL GOOD CONVERSATION PIECE: Color TV still gets considerable attention — probably will continue to do so as long as the publicity mills grind and there's even remote possibility some CBS-type sets might be built. Congressional hearing on color was asked this week by Rep. Dolliver (R-Ia. ) , who served in World War I Signal Corps. He urged hearing would clear up "mistinder- standing and confusion in the public mind." Actually, chances for hearing are considered slim, since Congress has more urgent problems at hand, and since Capitol traditionally abstains from investigations when matters are before courts. RCA says it will file appeal to Supreme Court "soon" rather than wait full time allowed, following turndown by Chicago 3-judge court (Vol. 6:51). FCC lawyers are cocky about prospects before Supreme Court, one saying: "I predict the Court won't even hear oral argument; it will simply affirm lower court's decision." ♦ ♦ ♦ ♦ Manufacturers are still "fighting" FCC's adoption of CBS system. Said Ad- miral's Siragusa, at distributor's meeting in Chicago this week: "From what I have personally seen [of RCA color], even without allowing for further progress, I haven't a shadow of doubt that if the Supreme Court gives public the opportunity to make final decision, Columbia's system will be flatly rejected." Philco's president Wm. Balderston, also speaking to his distributors: "We have done considerable work in this field, and our engineers have made some very substantial contributions to the color TV art. As far as commercial oper- ation is concerned, color TV is apparently in mothballs where it undoubtedly belongs for the present. In the meantime, however, our research staff will continue work, and when color TV comes out of mothballs, I assure you that Philco will be ready." An "Ad Hoc" color subcommittee of National Television System Committee has been laboring away with idea of pooling all knowledge and coming up with best com- patible system to recommend to NTSC. Membership : David Smith. Philco, chairman; T. T. Goldsmith. DuMont; A. V. Loughren, Hazeltine ; Elmer Engstrom, RCA; I. J. Kaar. GE. One member reports mobilization seriously cutting in on his staff's efforts. "Men who were on color full-time are now on it only part-time." * * ♦ ♦ Interesting comments on color, from year-end (Jan. 3) issue of Variety: Wayne Coy, FCC chairman: "I am confident that the Supreme Court will [sus- tain the FCC] and that it will dissolve the temporary restraining order issued by the Chicago court... As to the threat of war, I do not wish to speculate here on the preparedness program and the materials allocation problems. However, I think it is obvious that if black-and-white TV is to be regarded as a weapon of war, color TV is many times more powerful." Sen. Edwin Johnson: "I condemn in no uncertain terms the chortles and gur- glings and glee of the manufacturing industry over delay and their well financed propaganda campaign to make it appear that the Commission refuses to look at im- 6 provements. Neither do I rejoice over their contention that the war mobilization picture makes moot the whole question of color TV progress and its scientific de- velopment. Nevertheless, as the electronic industry is brought more and more into defense production, manufacture of radio and TV receivers will be reduced sharply." * « * 4t CBS was soothed this week by NPA administrator Wm. Harrison, who wired reply to president Frank Stanton, who feared NPA was about to ban color set production (Vol. 6:51-52). Said Harrison: "NPA has taken no action bearing specifically on color TV, nor is any such action now under consideration." CBS starts feeding color to Chicago Jan. 10, via coaxial, giving closed- circuit public demonstrations on main floor of Wrigley Bldg, simultaneously with New York showings. Philadelphia demonstrations were stopped Dec. 30. Network Acconnls: Campbell Soup Co. will sponsor Henry Morgan Show on NBC-TV, Fri. 9-9:30, starting date not yet set; replaces Bonafide Mills’ Bonny Maid Versatile Varieties . . . Procter & Gamble Co. Jan. 29 be- gins sponsorship of Mon.-Fri. 2-2:15 segments of CBS-TV’s Garry Moore Show; Quaker Oats Jan. 15 starts Tue. & Thu. 2:15-2:30 editions of same program . . . Mutual Bene- fit Health & Accident Assn. Jan. 21 starts On the Line with Bob Cojisidine on NBC-TV, Sun. 2:30-2:45 . . . Derby Foods Inc. (Peter Pan peanut butter) to sponsor Magic Slate on NBC-TV, alt. Sun. 5:30-6, starting Jan. 21 . . . U. S. Army & Air Force Recruiting Service Jan. 6 starts sponsorship of 9:30-10 segment of DuMont’s Saturday Night at the Garden . . . Landers, Frary & Clark (Univer- sal household appliances) Feb. 1 starts Universal Home- making on 23 DuMont stations, Thu. 2-2:15 . . . Conmar Products Corp. (zippers) and Maiden Form Brassiere Co. reported readying alternate week sponsorship of Theatre of Romance on ABC-TV, Sat. 11-11:30 a.m. . .. . General Mills Jan. 5 started Live Like a Millionaire (child talent show) on CBS-TV, alt. Fri. 9:30-10 in lieu of previous programs. Siaiion Acconnis: Sponsored in Los Angeles by Rose- field Packing Co. (Skippy peanut butter) new half-hour production originating at KTTV, titled You Asked for It, will be shown on kine-recordings in 22 markets . . . Lewis Food Co. (dog & cat foods) continuing sponsorship of The Buggies, with Charles Ruggles, on KGO-TV, San Francisco; KING-TV, Seattle; KFMB-TV, San Diego; KPHO-TV, Phoenix; with Kraft Food soon placing it on KECA-TV, Los Angeles . . . Melville Shoe Corp. (Thom Me An footwear) has contracted with WPIX for co-spon- sorship of 21 Madison Square Garden events, starting Feb. 4, taking Chevrolet spots; other sponsors are Webster Cigars and Standard Brands, with schedule 25% unsold . . . New spot business on WABD, New York, includes Elgin Watch Co., thru J. Walter Thompson; Chase National Bank, thru Hewitt, Ogilvie, Benson & Mather; National Sugar Refining Co., thru Young & Rubicam . . . Among other advertisers currently reported using or planning to use TV: Freemantel Voice Institute Inc. (home study courses in public speaking & singing), thru Moss Asso- ciates, N. Y.; Monarch Foods, Chicago, thru Weiss & Geller, Chicago; Standard Oil of Indiana (Red Crown gas), thru McCann-Erickson, Chicago; Manning-Bowman & Co., Meriden, Conn, (portable mixer & coffee maker), thru Foster & Davies Inc., Cleveland; Baray Pharmacal Co. (Swish mouthwash tablets), thru Olian Adv., Chicago; Holeproof Hosiery Co., thni Weiss & Geller, Chicago. Three elections to v.p. were announced by NBC Jan. 6: John K. Herbert, appointed in November as gen. sales mgr. for radio network; George E. Frey, director of TV network sales; Frederic William Wile Jr., director of TV production. Personal Notes: William B. Ryan named paid presi- dent of new Broadcast Advertising Bureau Inc., at $36,000 yearly salary, effective Feb. 1; he’ll continue temporarily as NAB general mgr. to which $25,000 a year post he was appointed last April from general mgr., KFI & KFI-TV, Los Angeles (Vol. 6:16) . . . Ivor Kenway resigns as ABC v.p. to accept temporary appointment as public relations consultant. United Cerebral Palsy Assn. . . . Robert Ewing named TV sales mgr., Oliver Morton, radio sales mgr., NBC Central Div. spot sales dept., in move splitting up sales force in Chicago . . . George E. Sleeper Jr. has resigned as v.p. & chief engineer of Color Television Inc. (CTI), San Francisco . . . Edward Cash man, with Kudner, returns to Foote, Cone & Belding as TV-radio v.p., succeeding Robert Ballin, resigned to join J. Walter Thompson, N. Y. . . . Ralph W. Nimmons promoted to station mgr., WFAA-TV, Dallas; Alex Keese succeeds him as asst, mgr., George K. Utley taking over radio sales . . . Jack Harris, gen. mgr., Houston Post’s KPRC & KPRC-TV, elected to newspaper’s board of directors . . . Ernest By field Jr., ex-NBC and Weiss & Geller, joins W. Earl Bothwell Inc. as TV director . . . Jose diDonato, ex-Petry, now TV-radio director of Robert W. Orr Associates . . . Arnold Michaelis elected president of W’orld Video Inc., Richard Lewine succeeding him as executive producer . . . William Van Praag resigns as president. General Business Films and v.p.. Television Features Inc. . . . Wm. H. Ensign, veteran network execu- tive, named ABC Eastern radio sales mgr. “Peak danger period” of TV’s impact on other media and activities passed in 1950, researcher Jeri*j' Jordan told convention of College Physical Education Assn, in Phila- delphia last week. Reason, he said, was that there prob- ably never again will be such a large portion of TV audi- ence in “novelty” stage (first year) of set ownership. Football attendance in Philadelphia areas was off 11% this year, he said, but he attributed only half of drop to TV. He argued vigorously against banning football tele- casts in 1951, saying: “It just doesn’t make sense to force a national ban on this area now and never find out whether TV will be helpful or harmful to football after the novelty has worn off.” Speech is being published and distributed by RTMA, 1317 F St. NW., Washington. ABC ordered coast-to-coast TV network facilities from AT&T Dec. 2 — first TV network to do so — although hookup isn’t scheduled for completion until late 1951. Other net- works are expected to follow suit before end of year. New facilities will link Omaha and San Francisco, via Denver and Salt Lake City microwave relay. ABC-TV sales v.p. Fred Thrower predicted “majority of our advertisers will convert from a delayed program basis to live programs” as soon as facilities are available. FCC Chairman Wayne Coy addresses New York State Publishers Assn, in Buffalo Jan. 16; his subject vnll be mainly TV. WITH AM~FM REPORTS 519 CONNECTICUT AVE. N.W. If WASHINGTON 6, D. C. • TELEPHONE MICHIGAN 2020 Trade Report January 6, 1951 ) OPTIMISM IN CHICAGO, TRADE WELL UP: Rugged days are ahead for TV-radio production and trade — but -optimism was prevailing note at distributor conventions this week. Optimism persists despite the dark news from abroad, tightening Washington controls, rumblings from some factories (see p. 2). For one thing, this week's trade took decided turn for better. Plentiful TV inventories were reported moving fast enough to hearten the hardest-hitting dealer. Reason wasn't hard to find: Newspaper headlines about scarcities of raw materials and possible substi- tutes — if, indeed, merchandise would be available at all — have prodded many recalcitrant customers into stores to get that long-deferred TV set. They're even saying they think they'll keep the old car, buy a TV for cash with down payment an auto would require — and they're buying upper-line models. * sK * Nor was that optimism dampened by what distributors heard from top factory folk at Chicago conventions this week. Though the common refrain was "defense must come first," they were told things looked right for a good first quarter 1951. Beyond that, few would venture — although the always effervescent Jimmy Carmine told Fhilco distributors that the industry is geared to serve both military and civilian requirements; that, though industry can now only figure ahead "by quarters," he thought Philco distributors could "look to a good 6 months unless things get drastic." Hence, though many distributors-dealers have complained they're overloaded with inventory, when it came to signing on the line for proffered goods, the dis- j tributors signed for all they could get. Word was that neither Admiral nor Motorola I met much resistance from distributors at their Chicago signing sessions. Philco , of course, stressed white goods at its Palmer House meets; its TVs came out several weeks ago (Vol. 6:52), as did RCA' s (Vol. 6:51). Admiral astonished everyone by boldly coming out with 55 TV models, only 3 low-end table models being held over from old line and at same prices, plus 12 new radios (for details, see Topics & Trends, p. 10). Motorola has 18 models, all new, prices up $5 to $40 (see Topics & Trends), plus complete new line of auto radios. Westinghouse , Hallicraf ters and Bendix also had new receivers this week, and several dozen more will have them this month — some displaying at Chicago's Amer- ican Furniture Mart, Merchandise Mart and hotel showrooms next 2 weeks. >(» ♦! *1 ♦ Defense emergency's impact on civilian economy was main theme of Admiral, Philco, Motorola conventions, each attended by full delegations. Most heartening words we heard came from Philco 's president Balderston: "We have every reason to believe that during this rearmament period we will have a mixed economy, part civilian and part military. . .We propose to reserve as much of our presently-existing facilities for civilian production as possible and use newly-acquired facilities for defense work. Of course, if at any time the Govt, requires all of our facilities, we will make them available without hesitation. "On the basis of present govt, planning for the next 18 months, there will be SIO spent on civilian goods and services for every $1 spent for defense produc- tion. The productive capacity of this country has increased so much during the last 10 years that experts agree there is sufficient capacity to take on defense program ahead of us and still keep the civilian economy in healthy, vigorous condition." This view was encouraged by the Washington reports that mobilization chief Charles E. Wilson had stated that, even though we may have to go through a "period - 8 - of scarcity," he wanted to "make it crystal clear that it is our intention and hope that it won't be necessary to maintain an economy of scarcity." Admiral's Ross Siragusa told some 1000 delegates and guests: "Barring a complete and wholly unexpected reversal in the international situation, there is no question but what production of hard goods such as TV re- ceivers and appliances will be sharply curtailed during the next few months." But he thought first quarter has enough manpower and materials to maintain production reasonably close to "best rates we reached in third and fourth quarters last year." Siragusa warned against expecting goods will move without sales effort, said Admiral "looks for business in the first half of 1951 to be a slugging match for the consumer's dollar." But the demand is there, he said — despite tightening of purse strings, credit controls, and the draft which accelerates marriage rate but actually reduces rate at which new homes are established because the new groom must return to his camp. Nevertheless — "Not only is TV the most wanted consumer durable on the American market today, but it also has one of the lowest saturations. Only one-third of the fam- ilies within a 40-mi. radius of the 63 cities [with telecasting] have TV receivers. Many sets are outmoded 7 & 10-in. models, which means that a large replacement market is rapidly building up... The TV market has scarcely been scratched. We will be years reaching the 95% saturation that radio now has." * * * ♦ Motorola's convention, which we weren't privileged to attend, was told that first quarter TV output would be 20-50% below last two quarters, but company had planned it that way last Sept., has commitments assuring this year's first quarter better than last year's. Fact is, president Paul Galvin reported, the Washington procurement picture is shaping up and "the brains of the country are coming to the forefront, as always." Motorola spokesmen promised "a busy 6 months ahead." ♦ * * It may or may not be beginning of a slide — but fourth December week, which was the full pre-Xmas week ending Dec. 22, showed exceptional drop in output. RTMA projected figures for week show only 169,655 TVs, 301,601 radios, down from preceding week's 203,290 & 351,354 (Vol. 6:52). We're told inventory-taking may account for drop. Fifth and final week figures aren't available at this writing, so that it's impossible to close year's estimates. For first 51 weeks of 1950, however, output adds up to 7,402,724 TVs, 14,186,499 radios. SHAPE & SIZE or 1951 PICTURE TUBES: "Tube of 1951" will be 17-in. rectangular unless something drastic happens. Last year's mass item, 16-in. round or rectangular, is well on its way out. Coming up fast is 20-in. rectangular, but 19-in. round will comprise bulk of "big end" of some receiver lines for quite a while. Second quarter may see 21-in. rectangular emerge into sizable production. That's present outlook, as derived from current production and plans of leading glass and tube makers. Coming's 17-ln. rectangular is now its biggest item, but 20-in. rectangular already comprises some 25% of total bulb production. Demand for 14-in. is quite small, while 10, 12% & 16-in. rounds are still being made, many for replacement. American Structural Products Co. (Owens-Illinois' Kimble) is in heavy 17-in. production, still produces 16-in. rectangular for those set-makers who haven't yet built sets to take 17-in. Some 19-in. rectangulars are being turned out, but no great amount. Company is considering 21-in. rectangular, but hasn't yet decided it warrants expensive tooling. Increased demand for 14— in. — — nothing striking — — has been noted. Neither glass maker is worried about shortages. Glass uses almost no stra- tegic materials, wasn't short during last war. As one official put it: "Set produc- tion will be limited by many other materials, but not by glass." RCA's 17-in. metal-coned rectangular is its principal item, featured in new line (Vol. 6:51). It will continue 16-in. rounds for those manufacturers who need - 9 - them. RCA*s "big" tube will continue to be 19-in. round, during first quarter at least. Present plans call for 21-in. metal-coned rectangular during second quarter. It may employ electrostatic focusing, because of cobalt shortage (see p. 1). For 1951 as a v/hole, biggest tube-maker RCA expects this lineup: 14, 17 & 21-in., all rectangular. They would succeed this year's 12^A, 16 & 19, all round. Pittsburgh Plate, big supplier of face plates for metal-coned tubes, says 16-in. round, which has been its major production item (19-in. close second), will shortly be nosed out by 17-in. rectangular. Company says it has been rushed, since it's only maker of rectangular face plates. One reason for slow emergence of 21-in. metal-coned rectangular, officials say, is lack of capacity for its face plates. Company has sizable expansion program under way, to be completed in spring. * ♦ ♦ Basic sizes are foregoing. You can expect a few 24, 28, 50-in. , but not many. Big question for everyone, of course, is nature of future public demand. Higher prices, credit controls, etc., tend to accentuate demand for smaller, cheaper sets. But scarce materials, meaning fewer units, encourage manufacturers to push higher-priced sets to keep dollar volume up even if unit production goes down. Ability to judge those two factors is sort boys in the manufacturing business. Financial & Trade Notes: In recounting P h i 1 c o ’ s achievements during 1950 — “our greatest year” — president Wm. Balderston told distributors convention in Chicago Jan. 4 that its TV business increased nearly 300% in 1950 over 1949, radio 25%, refrigerators 40%, freezers 20%, air conditioners 50%, ranges 300%, accessories 20%. Even telecasting (WPTZ, Philadelphia) has completed “its sec- ond year in the black — ^very substantially in the black.” Philco sales volume will run about $335,000,000, up 56%o from the $215,000,000 of 1949, he reported, and profits will be about $4.18 per share on new split (2-for-l) stock after allowing for normal corporation tax and new excess profits tax. (1949 net earnings were $3.17 a share on 1,678,778 old shares.) Annual dividend rate has been set at $1.60 per share, and special year-end stock dividend of 6% is to be paid Jan. 10. Working capital is up from 1949’s $33,700,000 to “well over $40,000,000 as of Jan. 1, 1951.” Mr. Balderston noted that an increasing number of Philco distributors have become stockholders. Pre-Korea, Mr. Balderston stated, Philco had an ex- pansion plan involving $16,000,000 for increased facilities for making ranges, tubes, TV coils and tuners, TV receiv- ers, and a multi-million dollar plan for refrigeration. “Now,” he said, “in view of the tremendous demands which the Govt, is placing on us for electronic and radar equip- ment, we are, of course, revising our expansion program . . . [It] is being restudied and will not be released again until such time as the govt, requirements are more clearly determined.” ♦ * Avco’s switch from an obscure holding company to a big hard-selling manufacturer of consumer durable goods, all in 5 quick years, is theme of article in January Fortune — “Avco’s Expanding Universe.” Article calls move “al- most unique in U. S. corporate history, the more so be- cause no shareholder blood has been spilled along the way.” Article goes into personality of top management, structure of company, plans, history. Avco has grown from sales of $53,000,000 and $1,300,000 loss in 1946 to estimated $250,000,000 sales and $14,000,000 net in 1950 — with Crosley Mfg. Div. accounting for $7,500,000 of net. Story gives most space to Crosley, telling how it i-ose to third place from also-i-an position in refrigerators; how Crosley Broadcasting Corp. continues to be big money maker; how its James Shouse ranks No. 3 in Avco, after chairman Victor Emanuel and treasurer Walter Mogen- of thing that separates the men from the sen. Besides Crosley, Avco comprises: New Idea Div. (farm implements); American Central Div. (kitchen cabi- nets, sinks); Lycoming-Spencer Div. (engines, boilers); New York Shipbuilding (warships); ACF-Brill Motors (streetcars, buses); and newly- purchased Bendix Home Appliances (washing machines). III >N I); ^ Leonard Ashbach’s Wilcox-Gay Corp. and wholly- owned Garod Radio Corp., including Majestic Division, re- ports net sales of $6,077,227 and net profit after taxes of $525,185 from Sept. 1, 1950, date of merger, to Dec. 31, 1950. Both Charlotte, Mich, and Brooklyn plants are cur- rently producing TV-radio receivers as well as military electronic equipment. Sylvania president Don G. Mitchell reports company’s expanded operations will result in better than $150,000,000 sales for 1950, highest ever, and comparing with $102,- 778,320 in 1949 when net income was $3,502,840. Magnavox ended 1950 with sales in excess of $40,000,- 000, of which about $25,000,000 was produced during last 6 months, reports president Frank Freimann. Aerovox Corp. reveals profit of $1,470,741 ($2.19 per share) on sales of $17,033,000 for first 9 months of 1950. November sales hit new high at $2,400,000. Cornell-Dubilier reports net income of $1,757,524 ($3.96 per common share) for year ended Sept. 30, 1950 vs. $450,785 (86<^) for 1949 fiscal year. * :1s * * CBS has granted options on 7000 shares of Class B stock to president Frank Stanton and 3000 to executive v.p. Joseph H. Ream, purchase price set at $24.75 and ex- piration date Dec. 8, 1957. At last reports, Mr. Stanton owned 810 Class A shares, Mr. Ream 100. ABC sold $35,124,625 worth of radio, $6,470,510 worth of TV time during 1950, compared with $42,342,225 & $1,- 391,991, respectively, during 1949. Dividends: Stromberg-Carlson, 10% common stock dividend payable Feb. 1 to stock of record Jan. 15; Hoff- man Radio, 25c payable Jan. 10 to holders of Dec. 27; Howard W. Sams & Co., 104 payable Dec. 28 to holders of Dec. 20; Zenith, 504 payable Jan. 31 to holders of Jan. 10; Olympic Radio, 254 payable -Jan. 16 to holders of Jan. 5; Tung-Sol, 254 payable Feb. 1 to holders Jan. 15 — paid 504 last August, $1.25 in November. 10 Topics & Trends of TV Trade: Admiral bucks trend to fewer models, showing line of 35 TVs and 12 new table radios — only 3 of TVs being carryovers — at opening of dis- tributors convention in Chicago Jan. 4. All TV chassis are virtually same, with 20 receiving tubes, and prices (excise tax included) hold quite close to those last quoted on comparable previous models (Vol. 6:44). In fact, low end of line, the 3 plastic table models carried over, re- tain same prices, namely. Models 14R12, 14-in., mahogany, $199.95; 16R11, 16-in. ebony, $239.95; 16R12, 16-in. ma- hogany, $249.95. Only other table models, both plastic and both new, are 17-in. — 17K11, ebony, $269.95; 17K12, mahogany, $279.95. Remainder of Admiral line are all 17 & 20-in., all wood save low-end console, main feature being new gold framing of picture tube to give illusion of bigger picture, and tilted to overcome glare. The line: TV-only consoles, 17-in.: Model 27K12, plastic, ma- hogany finish, $299.95; 27K15, modern, open faced, walnut, $339.95; 27K16, same, mahogany, $349.95; 27K17, same, blonde, $359.95; 27K25, modern, half doors, walnut, $369.95; 27K26, same, mahogany, $389.95; 27K27, same, blonde, $409.95; 27K35, traditional, half doors, walnut, $379.95; 27K36, same, mahogany, $399.95; 27K46, period, long doors, mahogany, $419.95. TV-only consoles, 20-in.: 221K16, semi-modern, open, mahogany, $439.95; 221K35, traditional, half doors, wal- nut, $469.95; 221K36, same, mahogany, $489.95; 221K26, period, full doors, mahogany, $509.95; 221K28, Provincial, maple with fruitwood finish, full doors, $525. Combinations are all offered with AM and 3-speed phono, FM optional and obtainable in same cabinets but with added circuit in “Dynamagic” chassis at $30 more. The combinations are topped by three 20-in. receivers called “Tele-Bar” which incorporate a completely equipped built-in bar with shelves, glass racks, storage space, etc. It’s offered in mahogany, blonde or silver fox at $845, $895, $895, respectively, and its “publicity” value as a window item is regarded enormous. Admiral’s combinations are: 17-in.: 37K15, semi-traditional, 2 half doors, walnut, $449.95; 37K16, same, mahogany, $469.95; 37K27, modern, half doors, blonde, $499.95; 37K35, traditional, 4 doors, walnut, $499.95; 37K36, same, mahogany, $519.95; 37K38, French Provincial, fruitwood finish, $525. 20-in.: 321K35, semi-modern, 2 half doors, walnut, $599.50; 321K36, same, mahogany, $619.50; 321K15, tradi- tional, 4 doors, walnut, $695; 321K16, same, mahogany, $725; 321K27, modern, 2 long doors, .blonde, $795; 321K18, period, long doors, fruitwood, $795; 321K46, mahogany Tele-Bar, $845; 321K47, same, blonde, $895; 321K49, same, silver fox, $895. Admiral’s all-new line of radios was predicated, said v.p. Dick Graver, on conviction that “demand will be as strong as 1950, perhaps stronger, due to international news.” But no radio consoles were in line, which has five table models at $20, $23, $25, $28 & $30 ; two clock radios (first for Admiral) at $40 & $45; two table radio-phono- graphs at $80 & $90; 3 portables (not to be delivered until March) at $30, $33 & $37. * * * It Tele-tone moves to Bayway Terminal, Elizabeth, N. J., Jan. 31, but maintains sales offices at present New York address (540 W. 58th St.). New 250,000 sq. ft. plant will employ 2500 people at capacity, will have $1,000,000 worth of equipment, company states. Featuring Hallicrafters’ trade meetings is clever parody on recent acrimonious Halligan-Coy exchange of correspondence on color TV (see Special Report, Vol. 6:44). Verses are sung to tune of Mr. Gallaher & Mr. Shean. Motorola showed all-new 18-set line to distributors Jan. 4 at Congress Hotel, Chicago. Line comprises one 14-in., eleven 17-in., six 20-in., with prices on most sets $10-30 above comparable models in last year’s line after price rises last November (Vol. 6:44). Featured item is 20-in. table model with demountable legs at $379.95. Big sales gimmick is concave safety glass, said to reduce re- flections by 98'/( . Motorola officials had distributors hold- ing up lighted matches in darkened auditorium to prove worth of “Glare-Guard” device. Here are the sets (prices i include excise tax) : ^ 14-in.: 14T3X1, mahogany plastic table, $219.95. 17-in.: 17T3X, mahogany plastic table, $2-59.95; 17T4, mahogany wood table, $289.95; 17K5, mahogany console, $329.95; 17K6, maple console, different cabinet, $399.95; 17K7, mahogany console, $379.95; 17K7B, blonde console, $399.95; 17F6, mahogany console, AM-FM-phono, $529.95; 17F6B, blonde console, AM-FM-phono, $549.95; 17F7B, blonde console, AM-FM-phono, different cabinet, $579.95; 17F8, mahogany console, AM-FM-phono, different cabinet, $579.95; 17F9, mahogany console, AM-FM-phono, different cabinet, $499.95. 20-in.: 20T1, mahogany table (demountable legs), $379.95; 20T1B, blonde table (demountable legs), $399.95; 20K1, mahogany console, $429.95; 20K1B, blonde console', $449.95; 20K2, mahogany console, different cabinet, $489.95; 20F2, mahogany console, AM-FM-phono, $7C0. * * * It Westinghouse showed new line of 7 sets, plus 3 held over from 1950 line, to Jan. 5 distributors meeting at Chicago’s Blackstone Hotel. Sets averaged $20-$90 more than comparable models after last price hike (Vol. 6:42). Here are the sets: 16- in. rect.: 643K16, mahogany console, $375. 17- in. rect.: 635T17 (Dorset), plastic mahogany table, $259.95; 640T17 (Andover), wood mahogany table, $279.95; 639T17 (Fenway), wood blonde table, $299.95; 641K17 (Brentwood), mahogany console, $369.95; 646K17 (Shel- ton), mahogany console, half doors, $399.95; 647K17 (Warwick), blonde console, half doors, $425; 633C17 (Manorcrest), mahogany console, AM-FM-phono, $535; 634C17 (Lansdowne), blonde, AM-FM-phono, $560. 20-in.: 642K20 (Stratton), mahog. console, doors, $495. Westinghouse holds next meeting Jan. 12 at New York’s Barbizon Plaza; Jan. 27 at Western Furniture Mart, San Francisco. * * * * Bendix’s 1951 line consists of 6 sets — 2 carried over from last year with $20 price increases. Sets, which in- clude excise tax, are: 17-in.: T170, plactic table, $239.95; 2070, mahogany wood table, $279.95; C174, mahogany con- sole, $299.95; 7001, mahogany console, doors, $339.95; Cl 72, mahogany console, doors, French Provincial, $399.95. Models 2070 and 7001 were introduced last October (Vol. 6:43). 20-in.: C200, mahogany console, doors, $479.95. | Despite fact that TV e.xcise tax was collected for first ' time. Govt, received $532,000 less in 10'’/, manufacturers’ ■ taxes on civilian electronic equipment and components in i November ($5,359,960) than in October ($5,892,095). This i is mainly because manufacturers have until Dec. 30 to file November’s tax, so large majority of TV tax collections won’t be reflected until December figures are released. ! Figure for November 1949 was $3,139,966. ijJ j Tele King chairman Louis I. Pokrass was reported in ' Jan. 5 dispatch from St. Thomas, Virgin Islands, as an- jjl|i nouncing his company has organized corporation there to II make TV-radio receivers and other electronic devices. - No new Majestic sets for 1951, president Leonard j* Ashbach announces. Present line carries over unchanged, ‘li^ 11 - New advertising standards have been added by Na- tional Better Business Bureau — result of first ad run by American Television Dealers & Mfrs. which roused storm of disapproval when it appeared pre-Xmas (Vol. 6:47). BBB says copy theme of ad was scoffed at by psychia- trists, condemned by educators, found to be more offensive to more persons than any previous published advertising known to the Bureau. New BBB “commandments” are that advertising should not: (1) Undermine child-parent relations. (2) Imply neglect of family responsibilities, or that failure to buy a product contributes to maladjust- ments. (3) Make use of inaccurate assumptions regarding psychological problems. (4) Use themes tending to upset stability, unity of family life. (5) Be used irresponsibly. Appliance manufacturers are cutting back production under shortage blow. Westinghouse laid off 350 workers in Springfield, Mass., plant (refrigerator units, vacuum cleaners, milk coolers, fans). GE’s vacuum cleaner divi- sion discharged 60 workers because of aluminum and other shortages. Apex Manufacturing (vacuum cleaners, wash- ers) has laid off 200 men, 7% of working force. Frig- idaire said it will have to lay off 500 temporary employes at Dayton plant next week. Plant expansions: Utility Electronics Corp., engaged entirely in govt, contract work, has leased 90,000 sq. ft. of factory space at 900 Passaic St., Newark, tripling its present area at 240 Passaic St. . . . Stewart-Warner dur- ing March transferring Chicago TV-radio manufacturing operations to new 100,000 sq. ft. factory (former Apex Paper Box Co. plant) on city’s west side, housing all di- vision’s 1500 employes . . . GE buys 5 buildings, 3 one-story warehouses at Hudson Falls, N. Y., from Union Bag & Paper Corp., will use them for manufacture of capacitors. November retail TV-radio sales plunged 26% below October in independent stores in 45 cities of more than 100,000 population. Commerce Dept, survey shows — graph- ically illustrating effect of Regulation W, combined with excise tax and color confusion. Sales were 8% below No- vember 1949 figure, with first 11 months’ sales 27% higher than same 1949 period. Trade Personals: John A. Kuneau, ex-J. Walter Thompson v.p. handling Eastman and Ford accounts, named Philco director of public relations, taking over part of duties of v.p. Courtnay Pitt . . . H. J. Allemang, senior partner of management consulting firm of Steven- son, Jordan & Harrison, elected Philco v.p. . . . Robert Brown, ex-Philco & RCA, new Capehart-Farnsworth direc- tor of purchases, succeeding E. S. Needier, resigned . . . Verne Roberts, Wilcox-Gay sales mgr., has resigned . . . Lynn Eaton, Andrea sales mgr., given added duty of mobilization director in charge of govt, contracts . . . Her- bert Rosengren promoted by DuMont to head newly created cabinet styling dept. . . . A. D. Plamondon III appointed Midwest sales mgr., Indiana Steel Products. With RCA engineering products v.p. W. W. (Wally) Watts called to staff of DPA chief Gen. Harrison, as of Jan. 8 (see p. 4), it’s expected that his department’s gen. sales mgr. T. A. (Ted) Smith will take over his duties. This week, RCA Victor v.p.-gen. mgr. Walter A. Buck realigned other top personnel, setting up new mobilization planning dept, to handle govt, relations and production. As of Jan. 1, distribution v.p. Robert A. Seidel became special asst, to Admiral Buck; Harold M. Winters was as- signed to Joseph Elliott’s staff as director of consumer products distribution; H. V. Somerville joined v.p. L. W. Teegarden’s staff as director of technical products dis- tribution; added to duties of v.p. Charles M. Odorizzi was administration of regional offices; Ralston H. Coffin was assigned as director of consumer products advertising, Julius Haber as director of technical products advertising. Nobilizalion Notss: is it secret? Commerce Dept. Jan. 5 set up clearing house to help public “guard voluntarily against release of information which would endanger na- tional security.” Commerce Dept, cites examples of ques- tions already submitted to Govt., including this one: “A maker of electronics equipment asked whether a proposed radio broadcast on technological aspects of his products would be a security violation.” Inquiries should be ad- dressed to Office of Technical Seiwices, U. S. Dept, of Com- merce, Washington 25, D. C. OTS will check them with proper govt, specialists and agencies, then forward an- swer to inquirer. Maybe you’ve never heard of barium carbonate, but — like almost everything else — it’s in short supply and NPA is getting ready to slap limitations on its civilian use. Advisory committee from barium carbonate industry blamed shortage on rapid expansion of TV industry. It’s used to coat cathodes in almost all electron tubes. For this use there are no known substitutes. It was once used to bind flourescent screens to glass on picture tubes, but was supplanted by other compounds. Large quantities of the chemical were used in munitions during World War II, but Munitions Board spokesmen said formula changes would result in lower military demand. Defense Minerals Administration has added more than 50 minerals to list covered by anti-hoarding and anti- profiteering provisions of Defense Production Act of 1950 (DMA order No. 1). For the most part they were the raw and ore forms of those materials listed by National Pro- duction Authority in similar action last week (Vol. 6:52). Included are iron ores and concentrates, cobalt, nickel, copper, lead, zinc, tungsten, molybdenum, mica, etc. in crude form. Civil defense communications aids, engineering and equipment will be provided communities by GE through committee headed by marketing manager E. H. Vogel and including representatives of all GE Electronics Dept.’s op- erating divisions. Named to new post of civil defense planning coordinator was Neal F. Harmon, former sales engineer in Atlanta. Backbone of civil defense communi- cations is expected to be 2-way equipment, which GE pro- poses to make in former tube plant at Utica, N. Y. America’s civilian air transport system was author- ized by NPA Jan. 5 to use “DO” (defense order) top prior- ity ratings to procure equipment, including electronics, for maintenance and expansion of commercial airlines and Federal Airways System (NPA Delegation 6). Labor relations and the mobilization economy is sub- ject of RTMA’s seventh annual Industrial Relations Con- ference scheduled for Jan. 17-18 at New York’s Statler Hotel. Speakers will be Ewan Clague, commissioner of labor statistics. Labor Dept.; William A. Gomberg, man- agement engineering director. International Ladies Gar- ment Workers Union (AFL); Prof. George W. Taylor, U of Pennsylvania. Hundreds of its technicians are on duty as civilian assistants to military in Korea and 16 other countries throughout world, reports RCA Service Co., through v.p. P. B. Reed, who recently returned from inspection tour of Pacific and Par East bases. He said company now has more men on military work in the field than at any time during World War II. Govt, procurement and industrial mobilization machin- ery will come under scrutiny of Senate Small Business Committee in public hearings beginning Jan. 17. Top mobilization officials Charles E. Wilson, Wm. H. Harrison and W. Stuart Symington will be questioned whether Na- tional Production Authority regulations are hurting small business and encouraging grey or black markets. 12 - Telecasting Notes: A few headlines and excerpts from 290-page 45th anniversary edition of Variety Jan. 3, which more or less set tone of its fulsome treatment of TV : “The TV Winter of Our Discontent. Some Reflections on the New Turbulence That’s Gripped Show Business in an Era When ‘Radio Is Only Half Destroyed and TV Is Only Half Built’ ” — by Carroll Carroll . . . “RCA Prexy Envisions Radio’s Importance Anew in the 1951 War Effort; Tele’s Next Big Advance” — by Frank Folsom . . . “Despite Ex- hibs’ Gripes, the Nation’s Leading Theatre Execs Seek to Harness TV” . . . “Television’s Senile Celluloid, or Drag- ging Out Those Old Pix” — by Eugene Burr . . . Now it’s official: Soviet Tass News Agency, reporting on American “depravity, decadence, pessimism and escapism from life” in 1950, observes that TV is creating “a new threat to the already low level of culture in the United States” and creating a “generation of imbeciles” . . . Billboard reports 4-year contract between Burr Tillstrom and NBC-TV probably makes creator of Kukla, Fran & Ollie the high- est paid puppeteer in the woi'ld — at $10,000 per week first 2 years, $11,000 third year, $12,600 fourth . . . New Tele- vision Authority (TV A) wage scale is reported by Bill- board to have added $2926 to Westinghouse’s weekly bill, formerly about $16,000, for Studio One on CBS-TV . . . NBC’s Los Angeles KNBH shortly will drop a.m. pro- grams, will sign on at 12 noon and run to midnight; it’s now operating 9:30-12:30 p.m., silent until 4 . . . CBS fired 3 announcers and 3 engineers of its Chicago AM station WBBM for letting profane remarks of one announcer get out over air during Rose Bowl game station-break . . . Howdy Doody has so impressed Wall Street that new firm, Kagran Corp., was formed, bought rights to all names and characters on program from co-owners Martin Stone and Bob Smith; new owner contracted to give NBC exclusive TV rights . . . First winner of Majestic’s “Mighty Mon- arch of the Air” award, based on poll of TV editors, is John Cameron Swayze for his Camel Caravan on NBC-TV ; monthly awards are backed up by Majestic ads in TV cities . . . Baltimore’s 3 TV stations will combine to carry inauguration of Maryland’s Governor-elect McKeldin from Annapolis Jan. 10; for WMAR-TV, key station, it’s 900th First week of Phonevision evoked many laudatory comments on Zenith’s pay-as-you-look TV. Particularly praised was clarity of pictures, attributed to new prints being used. Public comments were summed up by remarks of Mrs. George M. White, of one of the 300 “guinea pig” families: “Phonevision beats going to the movies the regular way. We like being able to relax at home while watching the show. I think we would be willing to pay $1 several times each week to see movies this way.” But Zenith itself discounted early viewer enthusiasm. In application to FCC this week, asking for extension of 90-day test to March 31, chief engineer J. E. Brown care- fully explains that “little of significance” will be gained first month, since novelty effect will be high. However, after first month, after first bill for service comes in, “test families will tend to become more conservative.” There- fore, third month will be “the most significant and de- pendable” for evaluation purposes. Each of the 300 test families got booklet for first Jan. 1-6 week, titled Zenith Presents Phonevision. It listed pic- tures and stars, contained also reproductions of advertis- ing previously used for exploitation when pictures were first shown in regular theatres. Inside front cover contained statement emphasizing that tests are experimental, that FCC had not approved Phonevision commercially, that there was no assurance FCC would approve system. Back cover carries KS2XBS remote telecast . . . WOR-TV, New York, has filed plans with city authorities for 2-story TV studio and office build- ing at Columbus Ave. & 68th St., now parking lot, to re- place present studios at 28 W. 68th . . . CBS reports 36 employes, mostly reserves, have gone into military serv- ice since Aug. 4 . . . Cincinnati’s WLW (Crosley) has com- pleted own studios in Washington’s Wardman Park Hotel. More Jan. 1 rate rises: WLWT, Cincinnati, base hourly rate from $550 to $700, one-minute rate from $70 to $100 (with special new premium $250 rate); WLWC, Columbus, and WLWD, Dayton, $375 to $500 & $50 to $75 (with spe- cial new premium $200 rate); WKRC-TV, Cincinnati, $500 to $700 & $65 to $78; WCPO-TV, Cincinnati $500 to $700 & $70 to $77; WTCN-TV, Minneapolis-St. Paul, $500 to $650 & $100 to $130. [For digests of all station rate cards, and full network rate cards, see TV Factbook No. 12.'] “Hoffman Plan” isn’t the answer. Pacific Coast Con- ference said in effect Jan. 5 when it banned televising of its 1951 football games. Hoffman plan (Vol. 6:35,51) guaranteed gate receipts of 30 games telecast last year, but conference commissioner Victor O. Schmidt said “the conference is not so disturbed over financial losses as in the fact of half -filled stadia.” Merrill (Red) Mueller, NBC newsman in San Fran- cisco, recently news chief in London and during war NBC’s correspondent with SHAEF, will shortly become personal aide to Gen. Eisenhower, handling public relations. His job, probably as an Army officer, will be comparable to that held by Comdr. Harry Butcher during war. Jan. 1 sets-in-use reported since NBC Research’s “census” of Dec. 1 (Vol. 6:51): Memphis, 70,144, up 5744; Omaha, 56,789, up 8589; Dallas, 56,456, up 4756; Miami, 50,000, up 5000; Fort Worth, 44,088, up 3888; Utica, 33,000, up 2800. Correction: Dec. 1 San Francisco sets-in-use (Vol. 6:51) should have been 127,000, not 147,000 reported. Ashtabula (O.) Star-Beacon’s WICA filed this week for Channel 8 in that city. Owners are R. B. & D. C. Row- ley, also publishers of Conneaut News-Herald, Geneva Free Press, Painesville Telegraph, all in Ohio. test pattern (Channel 2), with this “sales” message: “Phonevision can bring you the best in low cost home entertainment.” Pictures listed for first week, besides those reported ' last week (Vol. 6:52), were Eagle-Lion’s Lost Honeymoon, i with Franchot Tone; Warner’s The Unsuspected, with ' Joan Caulfield & Claude Rains; Warner’s Silver River, ' with Errol Flynn & Ann Sheridan; Paramount’s Dear J Ruth, with William Holden & Joan Caulfield; Paramount’s j I Walk Alone, with Burt Lancaster & Lisbeth Scott. I New York Times Jan. 3 quoted several reactions. Motorola president Paul Galvin said he and his wife were delighted and added: “I think it is an added feature any TV set owner would appreciate and I hope it will be ap- proved by the FCC.” CBS Chicago v.p. H. Leslie Atlass said, “It’s fine, but I don’t think it fits our broadcasting . system or that it can be accepted by the FCC.” One father, non-subscriber, complained that his chil- i dren watched the picture even though it “jiggled.” But - Zenith says image can be hashed up much worse. Washington Post editorialized Jan. 1: “TV programs are enormously expensive. This means that sponsors can , scarcely afford to cater to minority interests. But, if . > listeners are willing to pay for programs, they can get ' j what they want. They can get symphony concerts, for example; they can get educational courses by top teachers in their owm living rooms; they can get forum discus- ^ sions . . .” PUBLISHED WEEKLY BY RADIO NEWS BUREAU, 1519 CONNECTICUT AVE. N.W., WASHINGTON 6, D.C. TELEPHONE MICHIGAN 2020 • VOL. 7, NO. 2 January 13, 1951 ( $3 Billion TV-Radio Trade in 1950, page 1. \ How ‘Utility’ TVs Can Save Materials, page 2. This Issue: ‘Mountain-to-Mohammed’ Eases Freeze, page 2. I McDaniel Due to Be RTMA President, page 3. Paley’s Govt. Job, Coy May Shift, page 3. Educational TV — Hopes But No Plans, page U- Wholesalers Urge Replacement Surety, page 6. No Recession in Output or Trade, page 6. TV FACTBOOK No. 12 NOW IN NAILS: Good idea of stature of TV and related industries can be had from these recapitulations of contents of our Television Factbook No. 12, now in mails to all full-service subscribers; 107 telecasting stations with time rates ranging from $195 to S5250 per hour, 4 networks, 5 stations in Latin America, 575 applications for new stations pending (frozen), 98 TV receiver manufacturers, 37 cathode ray tube manufacturers, 10 receiving tube manufacturers, 450 film-program syndicators. These are only part of the contents of 72-page directory, which also includes present and proposed VHF-UHF channel allocations ; lists of station sales representatives, research firms, labor unions, etc. ; tables of TV-radio receiver production by months since 1946; latest count of TV sets-in-use by areas. Inserted is 34x22-in. map in color, showing TV areas and present projected network inter- connections. Cost of extra copies to subscribers is $2.50, to non-subscribers $5. $3 BILLION TV'RADIO TRADE IN 1950: Recapitulating RTMA's weekly and monthly estimates of TV-radio output during 1950, we come up with grand total of 7,408,690 TV sets. 14,554,972 radios. Accepting these preliminary RTMA figures, we calculate that the factory dollar volume of TV-radio receivers combined was $1,676,852,225 — meaning retail trade (including installations, service, warranties) of well over $5 billion. TV receivers accounted for $1,317,655,516 (78.6%) of factory total, radios amounted to $559,216,709 (21.4%). These totals are derived by using average factory sales price of $177.85 per TV set, $24.68 per radio. Factory averages are those for first 10 months of 1950, derived from RCA licensee reports — probably would be somewhat higher if November-December figures were available. Interesting facts about 1950 TV-radio production ; (a) One TV was sold for every 2 radios (including table, console, combina- tion, battery, portable and auto radios) — despite fact telecasting service is as yet available to only 63 areas embracing not much more than half U.S. population. (b) December was highest production month (5 weeks), accounting for 879,075 TVs, 1,602,055 radios — final December week (post-Xmas) falling to low of 105,968 TVs, 201,482 radios. (c) Average factory price of TV table models was $159.49. direct-view con- soles $189.50, direct-view TV-radio-phono combinations $271.72. (d) Though they seemingly have all but disappeared from market, somewhere around 12,000 projection TV sets were sold by factories during year. (e) Phonographs only, record players, AM-FM-TV apparatus without cabinets amount to rather substantial business, though not usually reported; for first 10 months of 1950, 95,824 such units valued at factory at $16,784,305 were shipped. (f) Cumulative total of all TV receivers produced since 1946, when industry had its postwar rebirth, can roughly be estimated at about 11,600,000. [For yearly breakdowns, see TV Factbook No. 12.] Note : Foregoing 1950 unit production figures are subject to revisions by RTMA statistical committee, probably upward. Copyright 1951 by Radio News Bureau - 2 - HOW UTILITY' TVs CAN SAVE MATERIALS: Just about every TV manufacturer with a lab- oratory has a "utility receiver" (Vol. 6:47) in the works — on drawing boards or ready for production. But, like Philco, which was first to tell about it (Vol, 7:1) no one wants to put out such a set if it can be helped. They say they'd rather cut output first — and indeed Crosley, Hallicraf ters . Motorola. Olympic . among others, have done this already. But probability that defense requirements may make necessary such materials- conserving receivers has forewarned manufacturers. Their ingenuity has led them to such considerations as these; (a) Selenium rectifier in lieu of transformer. Selenium rectifiers, still in good supply, are used as voltage doublers. Saving here would be copper and steel. Motorola, Emerson, et al, had transformerless sets several years ago. (b) Electrostatic cathode ray tube in lieu of present magnetic-types (Vol. 7:1). This saves alnico (aluminum, nickel, cobalt). But circuit changes are neces- sary, so most want to hold out against electrostatic tube as long as possible. One manufacturing-engineering executive opined answer might be use of electrostatic tube in some sets, continuance of electromagnetic in others. Many early 7 & 8)4-in. tubes were electrostatic, so there's plenty of know-how. (c) Loudspeakers with smaller magnets (Vol. 6:52). This, too, saves alnico. (d) Reduction in number of tubes. This could be accomplished easily, with set still suitable for metropolitan area viewing (10-20 mi. from transmitter). It would, however, cut down sale of such sets for fringe viewing. These are the tqa.jor changes in TV-radio's conservation program. There are others — elimination of built-in antenna, use of finer gauge wire, for example. Philco 's president Wm. Balderston told Chicago distributor convention last week (Vol. 7:1) how his engineers' efforts make possible a receiver using 85% less cobalt & nickel, 67% less silicon steel. 25% less copper & aluminum. Note : "Utility" set should not be confused with "austerity* model. Latter would actually be a degraded set; former, theoretically at least, should be not less efficient than present sets. 'MOUNTAIN-TO-NOHAMMED' EASES FREEZE: A sort of "antidote to the freeze" — limited, to be sure, but possessing intriguing possibilities — is the "community" receiving antenna. It received strong hypo this week. Idea is quite simple; High-gain receiving antenna is installed on an ele- vated point in or near town located in valley or too far away to get good signals (fringe area). Signals are amplified, fed into homes via coaxial. Nor is idea new; First installation we recall was that in Astoria, Ore., where engineer E. L. Parsons picked up Seattle's KING- TV, 125 miles away (Vol.5;33). What is new is heavy weight being put behind projects. Philco is giving plan tremendous push, garnering reams of publicity (including big stories in Jan. 3 Wall Street Journal, Jan. 15 Newsweek, etc.) for itself and Philadelphia's Jerrold Electronics Corp. Latter makes the equipment ("Mul-TV"), also used for apartments, which is distributed by both companies. Philco is publishing brochure giving details of representative installation in Lansford, Pa., 70 miles northwest of Philadelphia. Here's how it worked there; Four radio dealers and an attorney formed Panther Valley TV Co., cleared matters legal and political, conducted engineering tests, obtained bank loan. They installed antenna on nearby Summit Hill, fed signals into town (string- ing cable on light and phone poles), began signing up subscribers who have choice of all 3 Philadelphia signals at all times. So far, about 100 sets have been connected, with installation charge of $100 plus S3 monthly service charge, at cost of |15,000. Entrepreneurs estimate "reasonable potential" of 750 homes can be hooked up within 6 months, at total expenditure of $30,000. But income would be $75,000 (for installa- . tion) plus some $2500 monthly in service charges. Other towns also equipped; Mahanoy City & Honesdale, Pa. ; Bellingham, Wash. - 3 - There may be more. Currently being surveyed by Jerrold are Wilkes-Barre & Scran- ton, Pa. ; Palm Springs, Cal. ; Clean, N.Y. FCC is not involved — in fact gave go-ahead — because no radio transmis- sions are employed. State utility commission has said installations aren't public utilities. So legal barriers seem few. Only 2 catches are suggested at moment, neither vital just now. First, equipment may soon be hard to get, although Jerrold president Milton Shapp is re- ported saying he has enough parts on hand to insure high production rate through June. Second, when and if new stations start operating, post-freeze, some of them may create intolerable interference and/or eliminate need for special installations. But new stations are long ways off, and re-engineering of community antennas may very well minimize interference. Intense interest in new service is indicated by towns represented at recent meeting in Harrisburg sponsored by D. & H. Distributing Co. (RCA) ; Aquashicola, Bow- manstown, Centralia, Mahanoy City, Mauch Chunk, Palmerton, Selinsgrove, Shamokin, St. Clair, Tamaqua, Wilkes-Barre. RCA also has multiple-feed distribution system. McDaniel due to be rtma president: Looks like presidency of RTMA. $50,000 job, will go to able, personable, 39-year-old attorney Glen McDaniel, RCA v.p. presently at- tached to staff of Chairman Sarnoff and president Folsom. He made such good impres- sion, while working on industry's case during excess profits bill hearings (Vol. 6:51), that interim president Robert C. Sprague and others working on bill were sold on his qualifications. RTMA reorganization committee headed by Sylvania's Max Balcom takes up matter in few days, then presumably will negotiate with McDaniel, subject to ratification of RTMA board meeting in Chicago Feb. 15. Mr. McDaniel is a native of Seymour, Tex. , a 1933 graduate of Southern Meth- odist U, 1936 graduate of Columbia Law School. From 1936 to 1942, he was associated with New York law firm of Sullivan & Cromwell. In March 1942 he was named special counsel to then Undersecretary of Navy Forrestal, later that year being commissioned [ a Navy lieutenant, attached to general counsel of Navy. Promoted to Lieut. Comdr. in 1944, he worked on aircraft procurement in Bureau of Aeronautics, then was trans- ferred to inactive duty and appointed chairman of Navy Board of Contract Appeals. He joined RCA Communications in 1946 as gen. counsel, was elected RCA v.p. in 1948. PALEY'S GOVT. JOB, COY MAY SHIFT: Rumors were rife on Washington scene this week with respect to new posts for radio VIPs. Out of welter, these facts emerged: (1) CBS chairman Wm. S. Paley is definitely slated for Presidential appoint- ment as head of new Commission on Metals Resources, similar to recent President's Air Policy Commission, headed by now Secretary of the Air Force Thomas K. Finletter. Sponsored by W. Stuart Symington, head of National Security Resources Board, and Secretary of Interior Oscar Chapman (under whom Bureau of Mines functions), new board will make exhaustive study of strategic metals, needs, substitutes, explora- tions, etc., and will recommend national policy. Task may take 6 months or more. (2) FCC Chairman Wayne Coy's associates are freely discussing possibility that, as defense work renders FCC regulatory functions less significant, he will take new govt, post more intimately connected with mobilization. He denies any present intention of resigning, but it's reasonable to expect that in govt, reshuf- fling he may be ordered to nev; duties before his FCC term expires June 30. That seems to be basis for persistent reports that he's leaving soon. Meanwhile, he t speaks before N.Y. State Publishers Assn, in Buffalo Jan. 16, mainly about TV. I] (3) Govt, is going to require services of many more electronic-radio experts II and executives, will call top figures to civilian posts as soon as defense agencies ll are fully organized and duties more definitely oriented. Some may have to serve on ii $1 a year basis. Preference for industry rather than "New Deal" men is already man- ifest — begining with appointments of Wilson, Harrison, et al (Vol, 7:1). , * * * * Rumors of new Govt, communications agency, topping both FCC and Interdepart- ment Radio Advisory Committee, keep popping up. Each meeting of President Truman's - 4 - Communications Policy Board (Vol. 6:4,5,10,33), which met this week, seems to start new ones. But chairman Dr. Irvin Stewart, West Virginia U president and former FCC commissioner, says only this about names mentioned for posts for rumored organiza- tions: "We have not approached any individual for any job for any organization — and that doesn't even imply we're recommending formation of any new organization." He said report will be handed President Truman Feb. 17, after two more meetings to be held Jan. 26-27 and Feb. 12-13. EDUCATIONAL TV-HOPES BUT NO PLANS: Educators certainly have stirred up flurry of activity, among telecasters as well as in their own ranks — regardless of final outcome of their sweeping request for vhf and uhf TV channels (Vol. 6:48-49). In spite of all the noise, though, cold historical fact remains that, with very few exceptions, educators have made pathetically small use of AM, FM or TV channels they have or had or could have had for the asking. In TV, Iowa State College's pioneering WOI-TV, only school-owned station, is an outstanding exception — but it proves no rule. One immediate question puzzling FCC is: How can a practical allocation plan be devised? Educators promised, through counsel Brig. Gen. Telford Taylor, onetime FCC general counsel, to bring their ambitious but nebulous yearnings down to earth when hearing resumes Jan. 22. Telecasters finally became apprehensive about lack of opposition to educa- tors' ponderous presentation. NAB, TBA and, unexpectedly, CBS, petitioned FCC for permission to join hearing at resumption. All 3 were let in, presumably will oppose "wide-open" demands of educators for: (1) One vhf channel in each metropolitan center and in each major educational center. (2) 20% of uhf channels, as and when opened up to TV. (3) Shared time on commercial stations in cities where all vhf channels are now preempted. ♦ * * * Schoolmen are beating drums — in speeches, articles, letters to editors, broadcasts, interviews, etc. — gaining considerable support, verbal at least. And the telecasters, made more conscious of their "educational responsibilities," are offering educators all kinds of time, program help, seminars, clinics, etc. Sympathetic press coverage was garnered by publicity-conscious educators when they revealed monitoring activities conducted this week from New York's Wal- dorf-Astoria in preparation for hearing. Fifteen women watched all programs on all 7 stations, tabulating types of programs telecast. According to Jan. 11 New York Times, they considered it quite an ordeal, were particularly weary of daytime shows. Monitoring was supervised by Dr. Dallas Smythe, former FCC economist now at U of Illinois, and Dr. Donald Horton, U of Chicago. Comr. Hennock, schools' standard-bearer, is obviously pleased with hubbub of activity and publicity, but doesn't consider telecasters' current offerings anything but token and temporary. "We don't want any sops," she says. * * * * Samples of telecaster activity; NBC-TV plans "Operation Frontal Lobes." v.p. Pat Weaver saying: "We will address ourselves to the problems of selling the American people on the desirability and the necessity of attending the great cultural and informational events of our series." Network plans to take time from one advertiser per night, once per 44-week season, turn it over to fairly high-dome feature. Detroit's WWJ-TV went to expense of paying coaxial cable tolls to Washington recently, just to give FCC commissioners and other VIPs a sample of its course-for- credit programs from U of Michigan. Some 700 people are now taking regular courses, offered in 20-minute segments of fixed Sunday 1-2 p.m. period. Philadelphia's WFIL-TV announced that 19 colleges are cooperating with it in daily "University of the Air" comprising regular college courses, started Jan. 2. Milwaukee's WTMJ-TV was to start Jan. 6 with similar college-course series, tying up with Marquette U, Wisconsin U, and Mt. St. Mary, Milwaukee State Teachers, Downer colleges. 5 New York's WFIX made flat offer to Board of Education of "facilities and time for the development of a regular educational program schedule." Baltimore's WBAL-TV showed 2-way telecast, utilizing "split-screen" tech- nique, between studio and classroom, enabling teacher and pupils to see one another. Baltimore's WAAM has scheduled Feb. 16-17 seminar on "Career Opportunities in TV," with cooperation of several universities and U.S. Office of Education. It's also the staging station for Johns Hopkins' excellent "Science Review" on DuMont. Many well-established educational programs continue, of course, without any great publicity splashes. Cynical columnist John Crosby calls spurt of activity on part of the tele- casters an attempt to "smother" educators' request for channels of their own. Network Acconnts: General Board of Evangelism of the Methodist Church has approved new interdenomina- tional religious program that will start on ABC-TV March 5, Mon. 11-11:30 p.m.; sponsor will be separate corpora- tion probably called America for Christ Inc. . . . Bonafide Mills Inc. (Bonny Maid floor coverings) Jan. 28 starts un- named children’s variety show on CBS-TV, Sun. 11:30- noon . . . Colgate-Palmolive-Peet Co. will sponsor Hawkins Falls on NBC-TV, Mon.-Wed.-Fri. 3-3:15, starting in Feb- ruary; will probably add Tue. & Thu. 3-3:15 shortly after . . . Sam Smith Shoe Corp. (Little Yankee shoes) Feb. 14 starts sponsorship of Al Gannaway’s Half-Pint Party, Wed. & Fri. 4:45-5 on ABC-TV . . . B. T. Babbitt Inc. (Bab-0 cleanser and Swerl Suds) will sponsor Two Girls Named S7nitk on ABC-TV, Sat. 12:30-1, starting Jan. 20 . . . Maiden Form Brassiere Co. Jan. 20 starts Faith Bald- win Theatre of Romance on ABC-TV, alt. Sat. 11-11:30 a.m. . . . Rosefield Packing Co. (Skippy peanut butter) Jan. 19 begins You Asked for It (kine) on DuMont, Fri. 8:30-9 . . . C. A. Swanson & Sons (poultry & margai’ine products) Feb. 25 starts sponsorship of first half hour of Ted Mack Family Hoiir on ABC-TV, alt. Sun. 6-6:30. Slalion Acconnis: At November’s end, 4832 different advertisers were using the networks and 98 reporting sta- tions (out of 107 total), according to Rorabaugh Report on TV Advertising, which monthly lists network and national regional spot sponsors and their agencies. This was 7.2% more than October, 120% ahead of November 1949. There were 170 network advertisers (ABC 40, CBS 73, DuMont 21, NBC 72), 939 national & regional spot, 3723 local- retail . . . New account on WABD, New York, is Flako Products Corp. (Flakies, Flakorn, Cuplets mixes), spon- soring Susan Adams Kitchen Tue. & Fri. 2-2:15, thru Platt-Forbes Inc., N. Y. . . . Socony-Vacuum replaces Stude- baker Dealers sponsoring Televiews of the News on WPIX Mon.-Wed.-Fri. 7-7:15, John K. M. McCaffery replacing Ed Thorgerson, thru Compton Adv. . . . Special 3-station hookup has been engaged by Keystone Macaroni Mfg. Co. (San Giorgio macaroni products) for Pietro’s Place, com- edy about Italian- American family, Thu. 12-12:30 p.m., thru Lamb & Keen, Philadelphia; stations linked are WPTZ, Philadelphia; WBAL-TV, Baltimore; WGAL-TV, Lancaster . . . Miles Laboratories (Alka-Seltzer, Bactine, Tabcin) started first TV spots this week in 12 markets, thru Wade Adv., Chicago . . . Unusual sponsorship on WGAL-TV, Lancaster, was Lebanon Netvs Televiews Jan. 1, prepared by staff of Lebanon (Pa.) News, 25 mi. dis- tant, including interviews with local personalities; it’s planned as weekly feature . . . Among other advertisers currently reported using or planning to use TV: Canada Dry Ginger Ale Inc., thi'u J. M. Mathes Inc., N. Y.; Waitt & Bond Inc. (Blackstone & Yankee cigars), thru Harry B. Cohen Adv., N. Y.; West End Brewing Co. (Utica Club beer & ale), thru Harry B. Cohen Adv., N. Y.; Paramount Citrus Assn., San Fernando, Cal. (Cal-Fame frozen orange juice, etc.), thru Vick Knight Inc., Los Angeles; Fan Tan Gum Corp. (Fan Tan chewing gum), thru Walker & Down- ing, Pittsburgh; Rival Packing Co. (Rival dog food), thru Charles Silver & Co., Chicago; Leigh Foods Inc., New York (Flamingo frozen juice concentrate), direct; F. W. Evanger (Evangel’s Kennel Food), thru Kaufman & Asso- ciates Inc., Chicago; International Golf Products (Miracle adjustable golf club), thru Edgar Walter Fischer, Chicago; Howard Stores Corp. (Howard Clothes), thru Peck Adv. Personal Notes: Brig. Gen. Edward Lyman Munson, USA ret., recently named director of NBC Film Division, appointed director of NBC-TV operations, reporting to v.p. Edward D. Madden . . . Merle S. Jones, gen. mgr. of KNX and CBS Pacific Network, named gen. mgr. of newly acquired KTSL (Vol. 6:52), whose call letters will shortly be changed to KNX-TV; Wilbur S. Edwards, ex- WEEI, Boston, becomes dii’ector of KNX and CBS Pacific operations, Charles Glett asst, to Mr. Jones . . . New board of KTTV, Los Angeles Times, following purchase of CBS’s 49 % stock ownership for reported $450,000, will include L. D. Hotchkiss, editor of Times; Harry W. Bowers, treas., Times-Mirror Co.; Harrison M. Dunham, KTTV gen. mgr. . . . Wm. Templeton named TV-radio director of Kudner Agency, succeeding Ed Cashman, back with Foote, Cone & Belding . . . John DeMott quits CBS to join Wm. Esty & Co. as supervisory producer of TV-radio commercials; Charles Jelnicki replaces him at CBS-TV in charge of spe- cial effects . . . Fred Kilian, ABC-TV program chief in Chicago, elected president of Chicago Television Council, succeeding I. E. Showerman, ex-NBC v.p. now with Free & Peters . . . Clarence Hatch Jr., executive v.p., D. P. Brother & Co., elected 1951 president of Detroit Television Round Table . . . Dean Fitzer, managing director, an- nounces following promotions at WDAF-TV, Kansas City: Bill Bates, station mgr.; Vic Peck, asst, to mgr.; Randall Jessee, program director; Bob Dickhourt, film room super- visor . . . William Shadel, of CBS Washington news staff elected president of Radio Correspondents Assn. Jan. 10, succeeding NBC’s Wm. R. McAndrew; he will officiate at annual dinner attended by President Truman and other notables Feb. 3 . . . Douglas H. Humm named TV-radio timebuyer, Charles W. Hoyt Co. . . . Added to expanded TV-radio dept, of Henri, Hurst & McDonald, Chicago: Lee Randon, ex-Ruthrauff & Ryan; David Rogers, ex-RCA; James Conway, ex-CBS. Named consultants to State Dept, committee, in prep- aration for August international radio conference in Ge- neva, Switzerland, were E. K. Jett, former FCC member, now radio director of Baltimore Sunpapers (WMAR-TV), and Haraden Piatt, v.p., American Cable and Radio Corp. FCC chairman Wayne Coy is member of overall policy committee; Comr. E. M. Webster is an alternate. Inter- national sessions are for purpose of implementing world- wide allocation adopted in 1947 Atlantic City confci-ence. 'i/m WITH AM-^FM REPORTS 1519 CONNECTICUT AVE. N.W. {/ WASHINGTON 6, D. C. • TELEPHONE MICHIGAN 2020 Trade Bepcrl January 13, 195! WHOLESALERS URGE REPLACEMENT SURETY: Replac ement parts for TVs, radios, appliances — will they be available during mobilization shortage period ahead? Yes, says NPA informally — but without spelling out details or taking action. However, 7~man task group from NPA-appointed Radio, TV & Household Appliance Wholesale Advisory Committee (Vol. 6:51) feels that specific action is due. Meeting in Chicago Jan. 9, group headed by Washington-Baltimore distributor James H. Simon (Motorola TV-radios, GE appliances) urged NPA to take these steps; (a) Limit distributors* inventories of maintenance and repair parts to normal 120-day supply. (b) Allow manufacturers exemption from NPA material distribution orders to fill NPA-certif ied orders for repair and replacement parts, or to make sufficient quantity of replacement parts when discontinuing manufacture of any product. NO RECESSION IN OUTPUT OR TRADE: "Selective buying" and "price buying" are pat phrases that probably best characterize current TV trade. Distributors of brand-name receivers are taking just about everything the factories will offer, with no assur- ances of full deliveries. Dealers are becoming more "picky and choosy" and stocking mainly best values. Public is buying on pre-November scale, but mostly low-end-of- the-line — models up to $300 moving best. That's the picture today, as it seems to prevail in most areas — but it's subject to quick change. From Chicago marts, which end this week, word is that most distributor-retail inventories range from moderate to heavy; that prices still trend upwards (see reports on new lines in Topics & Trends) ; that everyone's still playing by ear on day-to-day basis, hopeful that first quarter production and sales actu- ally are as good as fourth quarter 1950, as some think. Hopeful, too, that Govt, will not slap on price controls and rollbacks, still threatened. Canvassing the major manufacturers again this week, we find no lengthy shut- downs at any plants, some "interruptions" due to shortages or invent ory-taking, some employment rolls down from peak but no large-scale layoffs reported except for Crosley plant in Cincinnati (Vol. 7:1). As for shortages, they seem to differ at different plants. One factory head calls copper items his No. 1 headache, another says it's receiving tubes, another says something else altogether — yokes, resistors, etc. All agree that time for components deliveries is decreasing, indicating that some of smaller manufacturers may have already cut back their production because, as one major producer put it, "We're getting some of the stuff that would otherwise go to others." Military orders show signs of accelerating, but they're miniscule as yet and, even if large orders are placed, full-scale production isn't anticipated before mid-summer. Meanwhile, barring unexpected edicts from Washington, it looks like first 1951 quarter could approach fourth 1950 quarter's approximately 2,445,000 TVs, 4,320,000 radios — and there are some who think second 1951 quarter, normally light, could run 60-75% of that. That's wishful thinking, though, which all depends upon (a) whether public continues to buy, regarded likely, and (b) what Washington decrees, at best an un- certain factor leavened by fact that the electronics-wise authorities are frankly eager to keep civilian lines rolling so as to maintain skilled employment rolls. * ♦ * ♦ Westinghouse ' s Vale Freeland, director of dept. & furniture store appliance sales, told National Retail Dry Goods Assn. Jan. 9 that the metals shortage is "more critical than most people know" and adjured retailers not to "turn down any offers of carload lots from regular suppliers even if it requires a special program to buy 6 - 7 - ahead." By March or April, he thinks, there will be "a great many unsuccessful bidders" for refrigerators, washers, TVs. In Washington Jan. 9 for conference with NPA Administrator Fleischmann, In- diana Steel Products' A. D. Plamondon Jr. , chairman of RTMA Electronics Parts Mobi- lization Committee, gave as his personal opinion that the industry this quarter can produce about 70% of average 1950 quarter — or between 1,200,000 and 1,400,000 TVs. Said he; "While amount of raw material which will be available to the industry in the first quarter will be restricted, the ingenuity of the industry can be depended upon to turn out a good proportion of sets and components." He cited Philco presi- dent Wm. Balderston's statement quoted in these columns last week (Vol. 7:1). In press conference at Chicago Merchandise Mart Jan. 9, both Admiral v.p. Richard Graver and Capehart-Farnsworth president Fred Wilson said supply outlook for next 5 months looks "remarkably good" but cautioned that curtailments thereafter could result in a black market in TV-radio receivers. And Westinghouse appliance sales chief T. J. Newcomb saw no shortages for 5 months. Said he: "Our objective is not to cut back anything. It is instead to produce more of both defense and civilian goods. We can't support a war economy without a good civilian economy." ^ "Business as usual is out," RCA Victor consumer products v.p. Joe Elliott was scheduled to tell National Appliance & Radio Dealers Assn, at Chicago convention Jan. 15. Elliott urges dealers to prepare for shortages in near future, suggests these trends ; (1) Standardization of picture tube sizes. (2) Increased demand for consoles and combination receivers. (3) Concentration on fewer models. He also promises RCA would make every effort to feed replacement market, warns it can only be done through diversion of materials from new production. Hallicraf ters president Wm. J. Halligan, reporting company produced about 220,000 TVs and will show gross sales of about $37,500,000 in 1950, in interview with Retailing Daily Jan. 9 forecast "tough time in 1951" — . with possibility of minor depression beginning in April or May if materials shortages force curtail- ments. He said retailers must "get used to carrying a normal inventory of one to 2 months supply of merchandise instead of the 2 or 3-day stocks so common when TV was expanding so rapidly. " Admiral booked $100,000,000 worth of orders for TV- radio and white goods for first 1951 quarter during dis- tributors convention last week (Vol. 7:1) — just about dou- ble the $53,000,000 contracted in same 1950 period. In announcing this, sales v.p. Wallace C. Johnson said he expected only 70% to 80% of merchandise ordered would be manufactured due to materials shortages, hoped rest could be carried into second quarter. Admiral’s 1950 sales totaled more than $230,000,000, approximately 80% TV. Report of black market in TV receiving and CR tubes comes from National TV Dealers Assn, director Edwin Dempsey who says dealers and repairmen are being vic- timized by speculators peddling scarce replacement tubes at high prices, oifering them in the bulk packages in which tubes are normally sent to set manufacturers. Dempsey suspects tubes may come from stockrooms of small set-makers, is contacting tube manufacturers ask- ing tighter check to assure distribution of their products through normal channels. January TV production for whole industry should be 500,000 sets, with gradual monthly tai)ering off there- after for grand industry total of 3,000,000 sets this year. That’s estimate of F. M. (Tod) Sloan, Westinghouse TV- radio division mgr. Sloan made this prediction while showing 1951 Westinghouse TV line (Vol. 7:1) to New York distributors Jan. 12. November’s receiving tube sales, by RTMA members, totaled 39,326,641, just under October’s record 40,105,611 (Vol. 6:47). Eleven-month 1950 total was 344,236,998, compared with 198,753,295 for all 1949. Top 10 TV brands in use in New York area, based on personal March 1949-Nov. 1950 survey of more than 12,500 homes by Advertest Research, New Brunswick, N. J.: RCA 29.2%-, Philco 11.4%,, DuMont 10.5%,, GE 6.5%,, Cros- ley 6.4%,, Admiral 5.6%,, Emerson 4.9%,, Fada 4.7%, Motor- ola 4.5%,, Stromberg-Carlson 2.2%,. Altogether, 51 dif- ferent brands of TVs were found in these homes, i-emain- ing 41 accounting for only 14.1%. Ownership by types was: table models 56.1%, consoles 32.8%, consolettes 9.6%o, projections 1.5%o. Asked if they were satisfied with performance of present sets, 95.6% of top 10 and 93.6%o of other 41 replied in affirmative. Bullfights and jai alai are chief spectacles on XHTV, Mexico City’s first and as yet only TV outlet, which is on air only 3 hours nightly. Nevertheless, demand for sets, though costing twice as much as in U. S., has dealers overwhelmed, reports UP. Mexican Govt, recently lifted import ban to permit 10,000 sets from this country. Note: Only other Latin American TV outlets are two in Havana, one each in Rio de Janeiro and Sao Paulo, Brazil (for de- tails, see TV Factbook No. 12). W'hen member went bankrupt, Philadelphia Television Contractors Assn, assumed responsibility for its TV serv- ice contracts. Company was Weber’s, Bryn Mawr. Its failure led. group to plan special fund to guarantee all its members’ service contracts. Fund would be amassed by special membership assessment. National Assn, of Music Merchants (NAMM) has set next board meeting for Statler Hotel, Washington, Feb. 6-7, with directors hosting congressmen at dinner Feb. 5. 8 Topics & Trends oi TV Trade: Paradoxical drop in picture tube prices, while everything else is going up, went through industry this week. Sylvania led off, announcing “close to 5%” reduction on 90% of its output, giving as reason “lower costs resulting from new automatic equip- ment.” Most important drop was in 17-in. — down fi’om $27 to $26 (to manufacturers) — ^while 20-in. went down from $49.75 to $47.50; 19-in. remains same. Other tube makers followed rapidly, as they usually do. GE priced 17-in. at $26, as did National Union; latter also reduced 20-in. from $49.75 to $43.75. DuMont has announced no cuts, but indicates it will. RCA says nothing about any new prices, points out that its new 17-in. metal- shell rectangular has been $25 since introduced last month. Aside from production economies, strong reason be- hind cuts is simple fact that competition is fierce among tube makers, who have increased from 30 to 37 in last 6 months (see TV Factbook No. 12 for complete list). 4: 4: « GE’s new TV line is noteworthy for fact that (a) it has no combinations, except that the old 16K1 is still avail- able at $500, or $20 above old price, and (b) all but 3 of the 14 new models are 17-in. rectangulars. Prices average $10 to $135 more than comparable models in 1950 lines. Two 20-in. models will go into production later this quarter: 20C150, mahogany console, $575; 20C151, blonde, $595. One 24-in. model, 24C101, mahogany console with doors at $775, is due for March production. Remainder of line, all 17-in. (prices include excise tax) : Model 17T1, cordovan lacquer finish table, $269.95; 17T2, mahogany table, $289.95; 17T3, blonde table, $299.95; 17C103, mahogany console, $319.95; 17C104, blonde con- sole, $339.95; 17C105, mahogany console, different cabinet, $349.95; 17C107, mahogany console, half doors, $379.95; 17C108, blonde console, half doors, $399.95; 17C109, ma- hogany console, doors, $399.95; 17C110, mahogany con- sole, half doors, different cabinet, $379.95; 17C111, blonde console, half doors, different cabinet, $399.95. GE’s new radio line has 7 AM table models, one AM- FM table, 7 clock radios, 5 combinations. Prices range from $22.95 to $279.95. AM-FM model lists at $54.95. * * * * Hallicrafters has added 9 new sets to bring 1951 line to 21 models. Prices of retained dozen 1950 sets were hiked $10 to $25. Full line — prices including excise tax: 16- in. rect.: 17810C, leatherette table, $249.95. 17- in. tables: 17803, mahogany, $279.95; 17814, deluxe mahogany, $299.95; 17815H, deluxe mahogany, different cabinet, $319.95; 17812, deluxe mahogany, different cabinet, $329.95; 17813, same, blonde, $339.95; 17811H, mahogany, AM, $349.95; 17816, mahogany, different cabinet, AM, $359.95; 17817, same, blonde, $369.95. 17-in. consoles: 17828, mahogany, $359.95; 17838, ma- hogany, half-doors, $399.95; 17848, mahogany. Colonial, doors, $439.95; 17849, same, blonde, $449.95; 17850, same, maple, $449.95. 17-in. console-combinations (AM-phono): 17860, ma- hogany, $550; 17861, same, blonde, $575. 19- in.: 20872, mahogany console, $399.95. 20- in.: 20882, mahogany console, half -doors, $479.50; 20990S, mahogany console, AM-phono, $695; 20990, same, maple, $695; 20994, same, mahogany, Sheraton, $695. 1|^ 1/i ^ ^ Correction: Westinghouse Model 643K16 is round 16-in. tube; price of 635K17 (Dorset), 17-in. plastic ma- hogany table, is $269.95; and of 633C17 (Manocrest), 17-in. mahogany console-combination, $530 — not as we reported last week (Vol. 7:1). Emerson’s 12,000,000th radio was turned out this week, presented to president Ben Abrams at ceremonies Jan. 9. Magnavox 1951 line has 16 different cabinet styles featuring 17 & 20-in. tubes, with prices $10-$30 higher than previous line. Here are the sets; prices now include excise tax, although Magnavox had previously announced tax-warranty separate (Vol. 6:44): 16- in. round: Windsor Bookcase, mahogany breakfront, $495. 17- in.: Metropolitan, mahogany table, $289.50 (in blonde, $298.50); Biltmore, mahogany console, $298.50; Playhouse, mahogany console, $359 (blonde, $369.50) ; Shoreham, mahogany console, $359; Cosmopolitan, mahog- any console, $395 (blonde, $415); Contemporary, mahogany console, AM-FM-phono, $498.50 (blonde, $520); Wedge- wood, mahogany console, AM-FM-phono, $525; Provincial, blonde or maple console, AM-FM-phono, $525. 20-in.: Hepplewhite, mahogany console, $525; Nor- mandy, blonde, console, $525; Modern Theatre, mahogany console, phono-jack, $525; American Modern, mahogany or blonde console, AM-FM-phono, $795; French Provincial, blonde console, AM-FM-phono, $795; American Traditional, mahogany console, AM-FM-phono, $795; Embassy, ma- hogany console, AM-FM-SW-phono, $795. * ♦ * * Olympic holds over 6 basic sets, offers 5 new ones to make 1951 line of 20 models — low end being 16-in. rect. mahogany table at $249.95. Here are remaining sets (prices include excise tax): 17-in.: 752 (Riviera), mahogany table, $269.95 (blonde, $279.95); 762 (Riviera), same with special chassis, $289.95; 753 (Monte Carlo), mahogany console, $319.95 (in blonde, $339.95); 764 (Broadmoor), mahogany console, half -doors, $369.95 (blonde, $389.95; Chinese, $449.95); 785 (Ver- sailles), French Provincial console, doors, $429.95; 766 (Catalina), mahogany console, AM-FM-phono, $499.95 (blonde, $519.95); 769 (Prince George), mahogany con- sole, AM-FM-phono, $569.95 (blonde, $599.95). 20-in.: 970WB (Marlboro), mahogany table, $369.95 (with swivel base, $399.95); 967 (Windsor), mahogany con- sole, special chassis, $429.95 (blonde, $459.95); 968 (Lan- caster), mahogany console, special chassis, doors, $489.95 (blonde, $519.95). if * Tele-tone 1951 line has 12 sets — 8 new, 4 held over. They’re divided into 5 regular, 7 higher-priced “Imperial” group, prices ranging from $10 to $30 higher than com- parable 1950 models (Vol. 6:36). Here are the sets (prices include excise tax) : 16- in. rect.: Model 335, mahogany consolette, $259.95. 17-in.: 359, leatherette table, $229.95; 345, mahogany wood table, $249.95; 352, mahogany consolette, $279.95; 358, mahogany console, $289.95. 17- in.: 357, mahogany table, $269.95; 365, mahogany table, different cabinet, $279.95; 355, mahogany console, . $319.95; 331, Queen Anne, mahogany console, doors, ^ $399.95; 332, French Provincial, $399.95; 333, Chinese ' Chippendale, $399.95. 20-in.: 360, mahogany console, | doors, $419.95. Models held over ai’e 335, up $10; 331, 332, 339, up $30. ♦ ♦ * o I Stromberg-Carlson raised prices on 3 sets effective Jan. 8. These are new prices including excise tax (in- creases in parentheses being from last prices): 17TM (Mercury), 17-in. table, $329.95 ($15); 17CM2 (Imperial), i 17-in. console, $389.95 ($20); 119CM (Empire), 19-in. round console, $499.50 ($10). Raytheon (Belmont) is adding 2 sets to old line (Vol. 6:27): 17-in. console with AM-phono and 20-in. console, , both $469.95. Starrett 1951 line has 9 models ranging from 17-in. ,i mahogany table, $249, to 20-in. console with doors, $439. : 9 Sparton line for 1951 comprises 7 sets in 15 models — all 17-in, Prices are $40-$80 higher than those for com- parable sets in old line (Vol. 6:35). Here are the sets (prices include excise tax): Tables: 5104 (Berkeley), mahogany plastic, $259.95; 5101 (Whitney), mahogany wood, $289.95 (blonde $294.95, limed oak $299.95). Consoles: 5152 (Gramercy), mahogany, $349.95 (blonde $359.95, limed oak $369.95); 5155 (Sheffield), ma- hogany, different cabinet, $379.95 (blonde $389.95, limed oak $399.95) ; 5158 (Rutledge), mahogany, different cabinet, $399.95. Combinations: 5188 (Westmont), mahogany, AM-FM- phono, $499.95 (blonde $509.95); 5182 (Nassau), mahog- any, AM-FM-phono, $539.95 (blonde $549.95). ^ iJj Air King 1951 line has seven 17-in. and two 20-in, sets, with prices $20-$70 higher than last year’s comparable models. Here are the sets (prices include excise tax) : 17-in.: 17M1, metal table, $239.95; 17T1, mahogany wood table, $279.95; 17C7, mahogany console, $299.95; 17C5, mahogany console, different cabinet, $339.95 (In blonde, $354.95); 17C2, mahogany console, doors, $399.95; 17K1, mahogany console, AM-FM-phono, $499.95. 20-in.: 20C1, mahogany console, $399.95; 20C2, ma- hogany console, half doors, $469.95. Hoffman has raised prices from $2 to $20 on its line to cover excise tax, and is planning to drop 14-in. produc- tion and replace 16 & 19-in. tubes with 17 & 20-in. R. J. McNeely, director of sales, estimates production of 40,000 units first quarter of 1951, increase of 15,000 over same period last year. Philco has dropped Model 1871 from new line (Vol. 6:52). It was 17-in. TV-phono in mahogany at $399.95. Instead, Philco now has Model 1833 in same cabinet, TV console only, at $369.95. Sentinel line for 1951 is reported to be 7 sets rang- ing from 17-in. table at $290 to 20-in. console with doors at $500. Prices include excise tax and are said to be 2%%- 3% % higher than former models. Trav-Ler reports adding 2 new 14-in. models to line — mahogany table at $179.95, consolette $199.95. Note- worthy is fact Trav-Ler dropped 14-in. from mid-1950 line (Vol. 6:24-25). New Jackson line for 1951, to be shipped in February, comprises 6 sets in 12 models. Prices run from $220 for 14-in. mahogany table to $600 for 20-in. mahogany con- sole with AM-FM-phono, Trans-Vue’s 1951 line consists of 3 sets in 9 different models with prices ranging from $270 for 17-in. mahogany table to $450 for 20-in. console with half-doors. Pathe reports having 20-in. mahogany console at $320; wth doors, $379.50; in blonde, $379.50. H: ^ ^ Viewing after 11 p.m. goes on in 75% of New York area homes, at least one night weekly, according to Adver- test Research’s survey of 763 families. Poll indicates 50% of all TV sets are on 11-12 during average night. Before TV, 63', c of these late viewers were in bed at that time. Sports rank high in popularity, but programs with highest cumulative audience are: WNBT’s Broadway Open House 43.6%, WATV’s Sfardtist Theatre 23.7%, WPIX’s Night Owl Theatre 22.9%, WOR-TV’s Starlit Playhouse 22%. FCC’s annua! report for fiscal year ending June 30, 1950, released last week, is available (40(!) from U. S. Govt. Printing Office, Washington 25. It’s useful primarily as permanent reference on statistics of number of sta- tions, their income, etc. Trade Personals: James B. Conkling, ex-Capitol Rec- ords v.p., named president of Columbia Records Inc., succeeding Edward Wallerstein, i-esigning Feb. 1 . . . Gerald Light named Emerson sales promotion mgr., suc- ceeding Harold Deitz, resigned to head Emerson Mid-State Inc., Newburgh, N. Y. . . . A. E. Sinclair, ex-Zenith and Mallory, appointed industrial relations director. Federal Telephone & Radio . . , John R. Howland, cx-Zenith, now heading newly created office of product research, Stewart- Warner . . . Curtis L. Peterson, ex-Ecko Products Co., named Meek merchandising promotion director . . , J. D. Van der Veer named Tung-Sol sales mgr. for electron tube equipment . . . Sidney E. Warner leaves partnership in Aircraft Electi’onic Associates to become engineering and research director, LaPointe-Plasmocold . . . Donald B. Harris, ex-Collins, named technical asst, to president Hector R. Skifter, Airborne Instruments Laboratory . . . Leon C. Guest, from Picture Tube Div., named comptroller of Radio-TV Div., Sylvania . . . Aerovox appoints Frank Marshall director of manufacturer sales, succeeded by A. E. Quick, ex-Electrical Reactance Corp., as sales mgr.; Carl Bretz becomes sales mgr. of Electrical Reactance. In addition, J. Fraser Cocks Jr. becomes gen. comptroller of both Aerovox and Electrical Reactance, Carl Gulbranson succeeding him at Aerovox. Veteran Wireless Operators Assn., comprising oldtime “brass pounders” or ship-shore operators, have reelected Wm. J. McGonigle, N. Y. Telephone Co., president; Wm. C; Simon, Tropical Radio, secretary; reelected FCC Comr. George E. Sterling to board; elected these other officers: A. J. Costigan, RCA, 1st v.p.; H. L. Cornell, Esso Shipping Co., 2nd v.p.; R. H. Pheysey, United Fruit, treas.; R. J. Iverson, New York Times, asst. secy. Elected to board: C. D. Guthrie, U. S. Maritime Commission retired; George H. Clark, RCA retired; Capt. Fred Muller, USNR retired; Jack Poppele, WOR. New tri-color tube, patented (No. 2,529,485) by Thorn- ton Chew', engineering v.p. of KFMB-TV, San Diego, is described by him as “a device employing a magnetic field in combination with a screen divided into discrete color emitting areas in such manner as to sequentially reproduce images in each of the component primary colors. Being a single-gun, single-raster tube with multiple color screen, it avoids difficulties with coincident scanning, keystoning, optical superposition and color wheels.” He reports making arrangements with unnamed tube manufacturer to produce experimental models, gives “educated guess” tube might retail for 1*4 times comparable black-and-white unit. “Universal Color Scanner” is being advertised by DuMont. It reads, in part : “Operating on the principle of the flying spot scanner, [it provides] tri-color signals from any 35mm 2x2-in. color transparency. Available as outputs are an FCC-approved field sequential video color signal and 3 simultaneous video color signals which may be fed to any external sampling equipment for experimental work with line or dot sequential systems.” “Televised microscopy” is new technique developed by RCA Labs for observation of objects difficult or impossible to examine through ordinary means. Industrial TV cam- era,. employing Vidicons sensitive to either red or violet light, is focused through microscope on living oi'ganisms which might otherwise require killing and staining. Other advantages: TV camera woi'ks in weak light, permits magnifications of 15-20 times. Jan. 1 sets-in-use reported since NBC Research’s “census” of Dec. 1 (Vol. 6:51): St. Louis, 239,000, up 17,000; Washington, 219,760, up 13,760; Pittsburgh, 212,- 000, up 22,000; Kansas City, 93,170, up 9670; Greensboro, 41,968, up 6068; Ames (Des Moines), 33,724 as of Dec. 15, up 3562 since Dec. 1. - 10 - Mobilization Notes: To keep clear of anti-trust charges, NPA this week announced formal regulations governing industry advisory committees (Vol. 6:30,49,51). Attor- ney General is quoted as outlining these requirements: (1) Agendas are formulated by Govt. (2) Meetings are led by full-time govt, officials. (3) Minutes are kept on each meeting. (4) Committees are restricted to purely ad- visory functions. NPA’s regulations make it clear that industry advisory committees are “the recognized, official instruments for maintaining contact between the NPA and industry on all matters relating to the defense program.” The order says, however, that individuals or groups may seek discussions with NPA officials whether members of advisory commit- tees or not. NPA said it tries to give x’epresentation on committees “to large, medium and small businesses, geo- graphical distribution, members and non-members of trade associations, and various segments of a given indus- try.” It assured industry that, wherever possible, “repre- sentatives of industries are consulted in preparation of NPA actions affecting them.” Munitions Board meets Jan. 15 with Electronics Equip- ment Industry Committee, first full-scale meeting since last August (Vol. 6:33). Major subject is setting up of industry list showing electronics companies and products they make — to determine how product of each manufac- turer fits into list of military equipments. Also to be dis- cussed will be procurement and production policies, with subcontracting a major item. Western Electric’s Fred Lack and Munitions Board’s electronics division chief Mar- vin Hobbs are co-chairmen of committee. Munitions Board was reorganized this week into 5 of- fices, each to be headed by vice chairman serving without compensation under Chairman John D. Small. The offices and vice-chairmen: Stockpile Management, Roscoe Seybold, Westinghouse v.p.; Staff Management, William T. Van Atten, Dun & Bradstreet v.p. (temporary) . Not yet ap- pointed are vice-chairmen for Production, Requirements and Supply Management offices. Electronics Division is under Production Management. “Shortage census” will be undertaken by RTMA’s Electronic Parts Mobilization Committee to provide com- prehensive evaluation of supply and demand for critical materials used in civilian electronics. Meeting in Wash- ington this week, committee laid plans for sm-vey, visited new NPA Administrator Manly Fleischmann. Commit- tee’s membership: A. D. Plamondon (Indiana Steel Prod- ucts) and R. E. Laux (General Instrument), co-chairmen; Raymond G. Zender (Lenz Electric); Matt Little (Quam- Nichols); Harry A. Ehle (IRC); RTMA president Robert C. Sprague (Sprague Electric), ex-officio. Severity of copper shortage was underscored this week by Defense Minerals Administrator James Boyd who said all known copper deposits available to U. S. would not meet American defense and civilian i-equirements. Zinc producers say Govt, will interrupt its stockpiling of that metal for 6 months, easing shortage situation. Zinc stock- pile is believed largest of any non-ferrous metal. Tubes and resistors won’t come under govt, distribu- tion or allocation orders in foreseeable future, NPA men indicate. Despite shortage of these items, they feel manu- facturers are being scrupulously fair in distributing their output equitably among civilian users and coming to aid of users with emergency shortage problems. President Truman’s reference to cost of $3,250,000 for each B-36 airplane in his “State of the Union” address to Congress Jan. 3 can be translated into $525,000 in elec- tronics for each B-36. That’s based on general estimate that 15% of cost of plane goes for electronics gear. Presi- dent Truman called for 50,000 planes a year. Among unclassified military contracts for electronics and related equipment (more than $100,000) announced by Commerce Dept, for 2 weeks ending Jan. 10: Through Sig- nal Corps, Philadelphia — Federal Telephone & Radio, $11,485,239, radio receiver components; Johnson Service Co., Milwaukee, $3,041,250, radiosondes (75,000 units); ARF Products, $2,276,090, radio sets (516); Lewyt, $1,732,- 291, radio sets (1634); Mallory, $454,219, batteries (19,426). Through Navy Electronic Supply Office, Great Lakes, 111. — Litten Industries, San Carlos, Cal., $2,000,000, magnetron tubes (5000); GE, $653,400, tubes (150,000). Through Navy Bureau of Ships, Washington — Hoffman, $600,000, radio sets (591); Air Associates Inc., Teterboro, N. J., $405,600, receiving sets (381). Sylvania received $1,496,300 in contracts for 69,500 tubes, Raytheon $1,375,- 790 for 58,000 tubes, through Signal Corps and Navy. Completion of Congressional assignments to Inter- state & Foreign Commerce committees, responsible for TV- radio, brings this lineup: Senate Democrats — Johnson (Colo.), chairman; McFarland (Ariz.), Magnuson (Wash.), McMahon (Conn.), O’Conor (Md.), Johnson (Tex.), Hunt (Wyo.). Senate Republicans — Tobey (N. H.), Brewster (Me.), Capehart (Ind.), Bricker (0.), V/illiams (Del.), Kem (Mo.). House Democrats — Crosser (0.), chairman; Beckworth (Tex.), Priest (Tenn.), Harris (Ark.), Rogers (Fla.), Klein (N. Y.), Stanley (Va.), Sullivan (Mo.), Gran- ahan (Pa.), McGuire (Conn.), Underwood (Ky.), Carlyle (N. C.), Williams (Miss.), Mack (111.), Thornberry (Tex.), Heller (N. Y.), Roberts (Ala.). House Republicans — Wolverton (N. J.), Hinshaw (Cal.), Hall (N. Y.), O’Hara (Minn.), Gillette (Pa.), Hale (Me.), Dolliver (Iowa), Heselton (Mass.), Hugh D. Scott (Pa.), Bennett (Mich.), Hoffman (111.), Chenoweth (Colo.), Beamer (Ind.). Worth noting is that Sen. McFarland now also has powerful job of majority leader, continues as chairman of communica- tions subcommittee; that Texas’ Sen. Johnson, who owns KTBC, Austin, is majority whip. CBS and RCA plugged color — their respective brands — before convention of National Retail Dry Goods Assn, in New York Jan. 11. CBS president Frank Stanton, in addi- tion to emphasizing color’s sales appeal, stressed “no cost premium” for sponsoring color, saying the “electron-han- dling cost” is no greater than for black-and-white. RCA distribution v.p. Robert Seidel plugged for dual standards (Vol. 6:46, et seq), insisting that public should have right to determine system it wants “by its ballot in the market- place.” He emphasized RCA’s willingness to telecast color during good commercial hours — “ready to stake its re- sources, its dollars, and its reputation,” confident public “will make the right choice, as they always have.” Newark’s WATV is seeking to join five other TV j stations atop ideal Empire State Bldg, antenna (Vol. 6:48). ' Technically, it can be done, since structure was designed ' to take all 7 area TV stations, including V/OR-TV. Design i contemplates multiplexing WATV with WPIX. FCC ap- ' proval was sought this week, but few objections are seen, since station would maintain main studio in Newark and cover city with better signal than it does now. WOR-TV would also be delighted to join up, but is deterred by investment (reportedly near $1,000,000) in present plant. Chronological record of facts, dates and people in TV-radio history is presented in Dunlap’s Radio & TV I Almanac, published last week (Harper, 211 pp., $4) as : 12th book by prolific RCA v.p. Orrin E. Dunlap Jr. Alma- nac’s first entry concerns discovery of static electricity in i - 640 B.C.; last one — Nov. 1, 1950 — notes there were “107 TV stations, 2160 radio broadcasting stations, 677 FM 1 1 : stations, 8,900,000 TV receivers and 86,000,000 radio sets.” ' . Volume features over 60 nostalgic “then and now” photos, » illustrating TV-i'adio progress. Ii 11 Financial & Trade Notes: TV may help return pros- perity to movie industry, according to financial analysis of 6 “most favorably situated” concerns (Columbia, Loew’s, Paramount, 20th Century, United Paramount, Warner Bros.) prepared by Gerstley, Sunstein & Co., Philadelphia, investments. Report makes these points: (1) “Prospective use by TV industry of past film pro- ductions of motion pictures, cost of which has long since been recovered by amortization,” will be “found money” for film industry. (2) “As and when film production is divorced from the operation of theatres, the latter will undoubtedly be used for telecast of live programs, special events and for educational purposes.” (3) “The trend towards production of films for TV by experienced motion picture producers will probably be accelerated by the very rapid increase in cost of televising live programs.” (4) “The prospective curtailment, if not elimination, of set manufacture for the duration . . . should lessen the com- petition from TV.” * ^ 4: 'I: Raytheon showed net profit of $1,278,079, or 614 per share of common stock, on sales of $41,050,627 for 6 months ended Nov. 30, 1950, president Charles Francis Adams Jr. reported Jan. 12. This compared with loss of $621,701 on sales of $22,088,129 in same 1949 period. Op- erations for full 1950 fiscal year resulted in profit after taxes of $935,000. Volume of sales to military has not yet increased, Mr. Adams reported, but research and develop- ment has expanded and current orders have been ac- celerated; increase in inventories in last 6 months from $15,700,000 to $21,300,000 was attributed to expansion for govt, production. Wilcox-Gay Corp. offered 500,000 new shares of com- mon at $1,625 a share this week, making 1,605,700 shares of $1 par value outstanding, 1,600,000 shares without par value, $247,500 in 5% convertible debentures due Dec. 31, 1965, and $749,330 of unsecured debt. New offering was through Gearhart, Kinnard & Otis Inc. and White & Co., and will be used for working capital. Tung-Sol reports its outstanding cumulative converti- ble preference stock had been reduced to 53,494 by Dec. 30, resulting from conversion of 3815 shares into common on a share-for-share basis. % :4: 4: Plant expansions: Kollsman Instrument Corp., wholly owned subsidiary of Standard Coil Products Inc., has ac- quired 2 factory buildings, each about 100,000 sq. ft., with large lot, on 47th Ave. in Elmhurst section of New York borough of Queens . . . Teletronics Laboratories Corp. in February will occupy new $200,000 factory in Los Angeles Airport industrial tract, tripling capacity. Second week’s Phonevision tests in Chicago (Vol. 7:1) have led proponent E. F. McDonald, Zenith president, to claim that it’s movie industry’s way of recapturing “lost audience”. He said 180 of the 300 test families reported they had never seen first film shown, April Showers, with Bing Crosby, reported he’s even considering showing Hunchback of Notre Dame, 1939 RKO horror hit starring Lon Chaney, to enable oldsters and youngsters to see top show they’ve missed. Movies’ vital interest in tests was indicated this week in Paramount’s hiring A. E. Sindlinger (Radox) to check public reaction. Second week’s pictures were: MGM’s Song of Love, with Katherine Hepburn, Paul Henreid, Robert Walker; Warner’s Voice of the Turtle, with Ronald Reagan, Eleanor Parker; KRO’s Enchanted Cottage, with Dorothy McGuire, Robert Young; MGM’s Tenth Avenue Angel, with Margaret O’Brien; RKO’s Murder My Sweet, with Dick Powell, Claire Trevor, Anne Shirley; Paramount’s Golden Earrings, with Marlene Die- trich, Ray Milland; MGM’s Song of the Thin Man, with Myrna Loy, William Powell. Theatre-TV interests claimed discrimination in state- ment to FCC this week, saying they weren’t getting look- in on AT&T intercity TV circuits because networks had preempted all choice times. Statement cites inability of United Paramount Theatres to interconnect Detroit and Chicago theatres Nov. 4 & 11 for U of Michigan football games, asks that AT&T be forced to consider threatre-TV claimants when allocating circuits. New factor might throw monkey wrench into network’s carefully worked out “stagger” system, which obviated need for FCC hear- ing on ABC and DuMont complaints (Vol. 6:49, 50). There are now reported to be 15 theatres in 10 cities with TV installations, latest being Pittsburgh’s Fulton Theatre (using General Precision Laboratory equipment, Vol. 6:47) and Los Angeles’ Orpheum Theatre (RCA). Paramount Theatres, reporting this week on its theatre-TV experi- ments, told FCC: (1) Company confirmed belief 525-line, 6-mc monochrome is inadequate for theatre-TV. (2) It plans experimentation with 525-line, 18-mc color. (3) It surveyed all 100 New York theatres with 2000 or more seats, found 70 of them within line-of-sight of central transmission point, plans to test transmissions from sev- eral such points. If NAB chooses new general manager from own staff, mantle may fall on Robert K. Richards, Richard P. Doherty or Ralph W. Hardy. Richards is public affairs director; Doherty, employe-employer relations; Hardy, government relations. Decision on successor to William B. Ryan, named BAB president last week (Vol. 7:1) is expected at NAB board meeting Feb. 1-2 at Belleview- Biltmore Hotel, Clearwater, Fla. I I’ i I )! t I 1 I 1 Flareup against rising TV costs (Vol. 7:1) comes from Kudner Agency president James H. S. Ellis, address- ing Detroit Adcraft Club Jan. 12. He charged networks, through control of TV packages, have bid up talent prices to point where “TV is getting too rich for the average ad- vertiser’s purse, no matter how good it is.” Three years ago, said Ellis, top weekly hour-long TV show cost $10,000 ($2000 for time, $800 talent); today same show costs $100,000 ($36,000 time, more than $60,000 talent). That means a $4,000,000 ad budget for TV alone, he declared. Competition between networks has reached point of outright “audiance stealing,” he said, “with networks bid- ding fabulous prices which few sponsors can justifiably pay. With individual stars getting as, much as $40,000 for a single performance, a lot of harm has been done.” Warning of “monopolistic control of the editorial con- tent of the air,” through network control of shows (CBS owns 70% of all its commercial shows, NBC 50%, he said), Ellis continued: “It is time for the people responsible for the destiny of TV to stop, look and listen ... At least we can call a halt and give the independent sources a chance to find if there isn’t some way to keep talent costs from going out of the reach of everyone— -and thereby hurting TV, talent, TV owners and the industry as a whole.” 4: 4: 4: TV talent cost $84,229,600 for 1950 sponsored evening network programs, according to figures compiled by George M. Burbach Jr., New York advertising man, son of director of St. Louis Post-Dispatch’s KSD & KSD-TV. Added to $45,000,000 TV network time cost estimate for 1950 (Vol. 6:52), this would make total of around $129,000,000 spent for network time and talent. Mr. Burbach notes his com- pilation “does not include special features such as World Series, football games and summer replacements.” Telecasting Notes: Network radio sales are booming, variously attributed to new excess profits tax and scarcity of TV time . . . Gulf Oil is dropping radio version of We the People on NBC, while retaining TV version, taking on new sponsorship of Counter-Spy on NBC-AM Sunday p.m. . . . Tintair’s CBS-TV hit, Somerset Maugham Theatre, will have radio version on CBS starting Jan. 20, Sat. 11:30- 12 noon . . . Add New York stations boosting rates: ABC’s WJZ-TV, which Feb. 1 raises base Class A hour rate from $2200 to $3100, one-minute from $500 to $650; 20-second rate will be $550, 8-second, $350 (see Vol. 7:1 for other New York rate hikes) . . . Variety reports both WLWT & WCPO-TV, Cincinnati, now operating in the black, with WKRC-TV “making rapid strides to get beyond the red line” . . . Sho-mnan Billy Rose engaged by NBC under 2-year contract as consultant on TV shows . . . Kine-record- ings of top TV shows, which can be screened on standard 16mm projectors, may be circulated abroad, where GIs are stationed, under plan attributed to producer Leland Hay- ward, RCA president Frank Folsom, RCA v.p. Manny Sacks . . . Now wholly owned by Los Angeles Times (Vol. 6:52), KTTV has switched representation to Blair TV Inc.; CBS’s KTSL (soon to be KNX-TV) is represented by Radio Sales . . . Donald Cooke Inc., station rep, has formed separate TV dept. . . . CBS has released Robert Q. Lewis from exclusive contract, dropped his Mon. 2:45-3:30 TV sustainer — but he’ll continue American Safety Razor Corp.’s Show Goes On and will substitute for Arthur God- frey on Wed. Chesterfield show when Godfrey begins 2-week Navy duty Jan. 18; Godfrey also considering 3 weeks in Europe to study Eisenhower mission for “con- versational” mateidal . . . Color TV is subject of evening classes for advertising personnel starting at New York U Feb. 6, conducted by Tele-Tech’s John Battison with lec- tures by CBS’s Peter Goldmark, Paramount’s Richard Hodgson, et al. . . . CBS Radio Sales announces exclusive representation of new TV film series, 26 half hours, titled The Range Rider, produced by Flying A Pictures under same direction as CBS-TV’s Gene Autry Show . . . Decline in attendance has forced suspension Jan. 12 of Crosley- promoted wrestling matches, carried on hookup of WLWT, WLWD, WLWC . . . Current Pageant Magazine carries 8-page feature titled “Howdy Doody, Mr. Smith!” and featuring the NBC-TV kid show . . . Gillette sponsored Ezzard Charles-Lee Oma heavyweight title fight Jan. 12 on NBC-TV as a highlight of its Fri. 10 p.m. Cavalcade of Sports . . . Pabst will sponsor Jake LaMotta-Ray Robinson middleweight title bout on CBS-TV as a feature of its regular Wed. 10 p.m. boxing series . . . KMTV, Omaha, has prepared concise Guide to Layout & Reproduction of Art for TV, listing “do’s & don’ts”; available on request. New TV station in Cedar Rapids, la., is sought in ap- plication filed with FCC this week by WMT (Wm. B. Dolph), It seeks Channel No. 9. Previously, Cedar Rapids Gazette (KCRG) had filed for No. 7. Petition to dis- miss Don Lee application for Channel 2 in San Francisco, reserved by FCC for more than 2 years for Don Lee, has been filed by Edwin Pauley’s Television California. Pauley claims Don Lee is now owned by new stockholders, there- fore not same company FCC favored previously (Vol. 6:50). [For details about WMT application, see TV Ad- denda 12-A.'] United Television Programs Inc. has been formed as program distributing concern by Edward Petry & Co., sta- tion reps; Standard Radio Transcription Services Inc.; Century Artists. Officers are Jerry King, Standard, presi- dent; Richard J. Dorso, Century, executive v.p.; Milton Blink, Standard, secy-treas. Federal Communications Bar Assn, holds annual lunch- eon meeting Jan. 26 at Willard Hotel, Washington, annual dinner same evening in Mayflower Hotel. CBS color piped to Chicago drew highly favorable reaction during demonstrations which began this week. Even Judge Walter LaBuy, who dissented vigorously in decision upholding FCC authority (Vol. 6:51), attended showings, said: “The commercial possibilities of color TV are tremendous. The entertainment value is self-evident.” Press was uniformly enthusiastic. Said Chicago Tribune radio editor Larry Wolters: “Colors came through in bright, true tones with amazing detail . . . Whatever the final outcome of the color TV battle, [it is] something wonderful to see.” Bill Irvin, Sun-Times: “Clarity and brilliance of the colors drew enthusiastic comment.” Jack Mabley, Daily News: “Virtually perfect pictures.” William Leonard, Journal of Commerce : “Every single picture was so amazingly clear in detail, so thrillingly deep in dimen- sion, so pleasantly devoid of those horizontal TV wriggles and squirms, that standard black-and-white video seemed instantaneously as far behind the times as the crystal set . . . and the crank-up phonograph.” Closed-circuit pic- tures, received from New York via coaxial at studios of WBBM in Wrigley Bldg., were shown on 12-in. (magnified) set with Webster-Chicago converter and 12-in. (magnified) Muntz slave unit, in addition to 12 (4 -in. industrial set and 17-in. color-drum console. Broadcasters got assurances this week from FCC chairman Coy and Air Force communication chief Maj. Gen. F. L. Ankenbrandt that there’s no intention of tak- ing control of radio and TV stations away from owners except in real emergency. Reference was to Defense Dept, request for legislation from Congress giving President control over “electromagnetic” radiation devices (Vol. 6:51). Assurances were given at second meeting of Broad- cast Advisory Council Jan. 8 in Washington. Requests for additional membership were tabled until functions of Council are more clearly defined. There have been com- plaints (even to White House) that BAC doesn’t fully represent TV-radio media. They’ve been made by non- NAB broadcasters, educational and farm groups, labor and other organizations (such as National Assn, of Radio- TV News Directors). Petrillo will take up question of music on kinescope recordings at later date, personally, a union official said after Jan. 12 meeting of AFM Local 802 and networks on new contracts. Biggest demand was for elimination of all canned music between 8 a.m. and midnight. Other de- mands: (1) About 50% hike in pay scale. (2) Welfare fund based on 3% of payroll, to be paid by networks. (3) Minimum number of musicians for each program cate- gory. (4) Run-of-show contracts for musicians hired for a show. Present union contract with networks (and WOR) expires Jan. 31. Negotiators meet again Jan. 16. “One-year moratorium” on live telecasts of college football games was voted, 161-7, by National Collegiate Athletic Assn., meeting in Dallas Jan. 12. Resolution, said to be “morally binding,” is not outright ban and no provision for enforcement was made. Ruling provides for live TV only on “controlled experimental basis,” permits delayed telecasts, and instantaneous theatre and Phone- vision telecasts. Officials of pro-TV Notre Dame said they regard moratorium as moral obligation. Ban on network telecasts of baseball games, but not local telecasts, was voted by National League, which also decided to set up supeiwising agency to govern National League broadcasts outside major league areas. Action was taken as result of plea by minor leagues for relief from major league radio competition. American League is expected to follow suit. Meanwhile, Washington Senators cut to 21 number of its games to be televised in Wash- ington. Last summer all home games were televised. Na- tional Basketball Assn, banned telecasting in Minneapolis, leaving New York only city televising pro cagers. PUBLISHED WEEKLY BY RADIO NEWS BUREAU, 1519 CONNEaiCUT AVE. N.W., WASHINGTON 6, D.C. TELEPHONE MICHIGAN 2020 • VOL. 7, NO. 3 January 20, 1951 / New Yardstick for TV Coveragfe, page 1. \ Stations Exempt From Building Ban, page 2. in This issue: rpy nab As Autonomous Entity, page 2. ( Coy Hopes for Freeze-End & Color, page 3. Civilian Production Must Go On, page 6. How Govt. Will Control Materials, page 7. NPA Helping Maintain Production, page 8. ‘Scare Buying’ Only Part of Story, page 10. (For Special Reports on Week’s Electronics Mobilization Activities, see pages 6-9) NEW YARDSTICK FOR TV COVERAGE: What is a TV station's coverage area? This simplest, basic question of the telecasting business, curiously enough, seems to have most complex answers of all — with many time-buyers still mistakenly obsessed with "wattage" as a principal criterion, a hangover from AM. Issuance of revised sets-in-use and "family" figures by NBC Research this week (p. 12) is very good illustration of how concepts change. Network is launching new coverage concept next week — with elaborate pres- entation, including maps, retail sales, effective buying income, etc. (Vol. 6:48). New criterion is .1 millivolt-per-meter contour, replacing .5 Mv/m used heretofore. Recognizing that these figures are almost meaningless to laymen. NBC Research translates them — with reservations — into rough, rule-of-thumb mileage radii. In effect, average station's coverage radius has been widened from 40 to 60 miles, though areas are by no means perfect circles. Overlap in family figures has been eliminated. Through a "strongest signal" formula, overlap areas are generally split equally among stations involved. Some stations are bound to be unhappy about this, of course. Families cred- ited to Providence, for example, are cut by over 50%. In addition, family count is brought up-to-date through use of Sales Management's 1950 survey of buying power. ♦ Jj: * !jt Considerable sv/eating went into new yardstick. It was arrived at after con- sultation among networks and between networks and manufacturers. CBS will use same figure, and its overall computations are within about 1% of NBC's. ABC and DuMont are understood to have agreed to revision. Preponderance of industry considers new coverage realistic. In fact, NBC says many sponsors urged networks into it, report- ing their retail outlets, in the .1 Mv/m sticks, demanding to join in on participa- tion shows in order to reach local viewers. Individual stations have far greater claims, frequently, and some even urged that contour be moved out to .025 Mv/m (25 microvolts). Here's how new factor was arrived at : (1) Performance of receivers and antennas — how they function in the "back country" — was calculated by manufacturers, service companies. (2) Actual measured .5 Mv/m contours were supplied by about half of NBC affiliates, extrapolated out to .1 Mv/m. (3) Mail from viewer owners was analyzed, found to correspond very closely to actual distribution of population — 4-5% beyond .1 Mv/m, 17-20% between .1 & .5 Mv/m, balance within .5 Mv/m. (4) "Holes" in coverage within .1 Mv/m were weighed against reception be- yond, determined to be about equal. New coverage appears optimistic, when compared with FCC's existing or pro- Copyright 1951 by Radio News Bureau 2 posed engineering standards. But network engineers insist that new figure is based on actual reception experience ; that FCC is necessarily conservative in drawing up standards; that offset carrier (Vol. 6:42-48) is a powerful "bonus" factor; that people do go to great trouble to get a picture ; that viewers do accept considerably less than optimum quality when nothing else is available. But technical men readily admit that more stations post-freeze, meaning crowded channels, will undoubtedly change situation, as it did in AM. Time-buyers who still interpret "power" to mean "coverage" are gradually learning that many other factors have greater importance — height . terrain, co- channel interference, etc. Also to be remembered is that FCC has endeavored to give all stations in same city equal potential coverage. Joint use of Empire State Bldg, in Naw York (Vol. 7:2) is perfect example. What do FCC engineers say, when asked how far a station reaches? They used to answer "roughly .5 Mv/m. " Their current answer sounds facetious, but it's really quite apt: "As far as it can be received." STATIONS EXEMPT FROM BUILDING BAN: There's no ban on construction or alteration of TV-radio stations — yet. Despite some headlines in trade press, new restrictions on cominercial con- struction (NPA Order M-4 amended) will have no effect on building of studio or transmitter installations — but it's good bet that station construction will even- tually be controlled. Most commercial construction is banned until Feb. 15 by NPA order. After that time, building will be authorized only if it furthers defense effort, is essen- tial to health, welfare or safety, or relieves community hardship. TV-radio station construction is exempt from order, NPA attorneys say. They hasten to point out, however, that broadcasters can't build office buildings without NPA authorization. "We're going slow in restricting anything that involves communications," an NPA official told us, "but undoubtedly the time will come when building of broad- casting facilities will have to be restricted." So anyone can build a station now — if he can get the materials. TV INTO NAB AS AUTONOMOUS ENTITY: Willing and eager to join — but demanding abso- lute autonomy on all matters TV. That epitomizes attitude and decision of the 138 registrants representing top-level ownership-management of some 80 of nation's 107 telecasting stations who met in Chicago Jan. 19 to consider whether to ally with NAB. abandon TBA. Oft-broached one-big-tent idea stuck, and this is what conferees did: (1) Agreed to .join in separate TV division within NAB, with own management, own staff, responsible only to own board of directors. (2) Elected 9 members of projected 15-man board, agreed 4 others should be designated one each by the networks ; 57 of the 80 stations cast ballots. (3) Decided 2 board members must alv/ays represent TV-only interests. (4) Signed up members tentatively, leaving formalization of organization, membership fees, etc. to board whose elected members are: Eugene Thomas. WOR-TV, chairman; Robert Swezey, WDSU-TV, vice chairman; Clair McCollough. WGAL-TV & WDEL- TV^ George Storer, WJBK-TV, WSPD-TV & WAGA-TV; Harold Hough, WBAP-TV; Campbell Arnoiix, WTAR-TV ; Harry Bannister, WWJ-TV ; Paul Raibourn, KTLA (Paramount) ; W. D. Rogers, KEYL, San Antonio. Messrs. Raibourn and Rogers are the non-AM m.embers. Former has long been a prime mover in TBA, exerts great influence in that organization. Need for organization, importance of autonomy, were stressed in discussions of such current problems as educational demands for channels, ASCAP fees, sports bans, excess profits tax — in none of which has TV been adequately represented. Presence of so many non-members of NAB & TBA, general recognition of need for stronger TV industry leadership, enthusiasm of many, augurs well for proposed setup — NBC president Joe McConnell arising to give it his blessing, ABC's Joe 3 McDonald and DuMont's Chris Witting approving, CBS's Larry Lowman indicating his company may go along. Neither ABC nor CBS is member of NAB, though all networks belong to TBA. Board steering committee meets to work out details sometime before NAB's next board meeting in Clearwater, Fla., Jan. 31, Feb. 1 & 2. Steering committee comprises Messrs. Thomas, Swezey, Storer. NAB board must, of course, approve — and there's some sentiment in that dominantly AM organization to avoid any "support" to TV. It's noteworthy, though, that Thomas and Swezey are members of NAB board. COY'S HOPES FOR FREEZE-EMD & COLOR: Though it's no longer winning headlines, argu- ment-as-usual continues over color TV issue — with FCC and CBS still flailing in a virtual vacuum, mainly mobilization-created. This week, FCC Chairman Wayne Coy made another speech, talking mostly about color, while CBS continued color demonstrations on receivers not only in its Chicago Wrigley Bldg, studios but in United Paramount's Chicago Theatre and in big Carson Pirie Scott dept, store. More significant than what he said about color. Coy took another look at his dog-eared end-of-f reeze timetable, speaking before New York State Publishers Assn. Carefully hedging this time (his last guess was between April 1 & July 1) , he again pushed his prediction into the defense-shrouded future — this time to "third anniversary of the freeze," namely, next Sept. 30. Admitting he had made many wrong predictions in past, he told Buffalo convention; "I do hope and expect and predict that we will be out of the freeze and granting applications before the third anniversary of the freeze. . .unless the mobi- lization program is so large by late summer it will not be possible to utilize raw materials in the building equipment and construction necessary to get TV stations on the air." Just what end-of-f reeze will mean, when and if it does come, is still good question (Vol. 6:52). TV-radio stations are exempt from this week's NPA ban on new construction (see p. 2) — but it's no secret they're under consideration, too. And except for the few transmitters still in crates or on assembly lines, it's idle to assume equipment-as-usual will be available this fall or next winter. Not, at least, in quantities sufficient to accommodate or even make good start toward Mr. Coy's prediction that; "It is not unreasonable to expect that a matured competitive TV service for this country will have more than 1000 stations and that the annual volume of business done by these stations will exceed $1 billion." ♦ ♦ * * Reviewing TV's phenomenal growth. Coy warned the publishers of its impact on their medium, inf erentially at least urged them to get into the TV swim, recounted reasons behind the freeze, progress of hearing, etc. But attempt to "sell" FCC's color decision occupied most of his talk. As he did in recent Variety article (Vol. 7;1), he opined; "Any progress we can make in color will greatly magnify effectiveness of TV's contribution [to defense effort]." Coy again expressed confidence courts will sustain FCC decision, seemed to think that court order is all that keeps CBS system from being put across — despite mobilization uncertainties, compatible system progress, probable post-litigation re- quest to reopen hearing, antipathy of virtually entire industry toward FCC decree. He lit into RCA for attacking decision, called attention to recent NRDGA speech of RCA v.p. Robert Seidel (Vol. 7;2) suggesting dual standards and public i choice of systems "by its ballot in the market place." Flatly rejecting RCA's pres- ent demands for dual standards. Coy added; • "This same fellow says that the Commission is now placing a ceiling on i scientific development. Of all the balderdash! Even since the Commission approved ( the standards, the proponents of the field-sequential system [CBS] have annovmced !. the development of a 17-in. tube, thus meeting the criticism that their picture size t was limited to 12y2-in. The speaker conveniently ignores this development." But Coy made no mention of developments in dot-sequential system [RCA] which i' have met most, if not all, basic criticisms — even those of FCC. Incidentally, 4 NTSC *Ad Hoc" committee (Vol. 7:1), weighing contributions of all companies to com- patible system, met in Washington Jan. 11 to view and discuss RCA system. * * ♦ * That "Joe DiMaggio" letter on tri-color tube, sent to FCC by RCA president Frank Folsom (Vol. 6:45), still rankles Coy. He noted that RCA now calls tube the "Joe DiMaggio," said: "Putting the name of Joe DiMaggio on this tube is somewhat unfortunate be- cause it shows a certain amount of disrespect for DiMaggio 's ability. Joe has never refused to play the game, but the tube now bearing his name is side-lined and is as inactive , so far as its potential public is concerned, as a retired ballplayer or as though the tube had suffered an attack of anemia." While color is now considered academic by virtually entire industry. Coy makes only this concession: "Of course, all types of broadcasting, including color TV broadcasting, will be affected by the defense effort. The exact extent cannot now be foreseen. The future of our defense mobilization effort may well hold the answer to whether color TV broadcasting makes a small or large beginning within the year in becoming the prevailing TV system of this country." ♦ * ^ ♦ Free competition between color systems was urged Jan. 16 by Illinois' new Republican Senator Everett M. Dirksen in address to NARDA Chicago convention (see Trade Reports). Charging that unlimited govt, restrictions could destroy free enterprise. Sen. Dirksen cited FCC color decision as example. "My inclination is to let them [CBS & RCA] fight it out," said he, "and let the best of the lot win." CBS reports great success with its Chicago color demonstrations, states they will be extended to other cities shortly. Since equipment and personnel of current New York & Chicago demonstrations will be needed for other cities, Chicago showings will be concluded Jan. 24, New York Jan. 26. Telecasting Notes: whereas we “guesstimated,” on basis of reported $45,000,000 worth of network time sold, that over-all 1950 TV time sales soared to around $100,000,- 000 (Vol. 6:52), Broadcasting Magazine reports its year- book will estimate $83,000,000. Whereas NAB estimates radio broadcasting gross revenues for 1950 at $448,198,000 (Vol. 6:52), yearbook places figure at $453,000,000, up more than 6% from 1949. NAB’s TV figm-e is estimated at between $70-$80,000,000 . . . DuMont Network has pur- chased old Central Opera House, 205 E. 67th St., New York, will convert it into TV Center, embi-acing 8 studios, one of them 180x70 ft.; plan is for all New York produc- tions eventually to emanate from center, construction plans depending on NPA restrictions . . . Free & Peters, station reps (including 8 TV outlets; see TV Factbook No. 12, p. 38) is out with 7-city survey showing radio pre- ferred over all other media for news, outstripping news- papers by 38%, TV by 268% . . . Horace N. Stovin Co., Toronto, appointed Canadian sales reps for ABC’s 5 owned & operated TV stations . . . Radio Correspondents Assn, has cancelled Feb. 3 dinner in honor of President Truman . . . United Television Programs Inc., formed by Petry, Standard, Century Artists (Vol. 7:2) to syndicate TV films, announces it will be sales rep for Bing Crosby Enterprises Inc., including its Fireside Theater currently sponsored on NBC-TV by Procter & Gamble . . . American Book- sellers Assn., surveying 340 leading booksellers in both TV and non-TV areas, reports effect of TV on book reading and buying “absolutely nil,” cites October sales 1% ahead of same 1949 month in TV areas, 4.4% up in non-TV, No- vember 1.8% up in TV, 2.6% up in non-TV . . . University of Miami has begun “Telecourses” via WTVJ, Tue. & Thu. 2:30-3 p.m., enrollment fee $5, with final tests winning- certificates of credit for those who pass; first subjects are public speaking and personal finance. PersOllcd Notes: CBS chairman Wm. S. Paley, heading new President’s Commission on Metals Resources (Vol. 7:2), is taking up residence in Washington for next few months . . . Edgar Kobak, ex-MBS president, now con- sultant, and J. Harold Ryan, Storer stations, have been added to Secy, of Commerce Sawyer’s 21-man Advertising Advisory Committee . . . Paul A. deMars, ex-Washington consultant, now chief engineer of Pickard & Burns, Need- liam, Mass. . . . Charles C. Bevis Jr., onetime mgr. of WNBK, Cleveland, recently director of NBC-TV stations, named mgr. of KOA, Denver, succeeding Lloyd Yoder, now heading KNBC, San Francisco . . . Lewis Allen Weiss, ex-Don Lee, ex-MBS chainnan, on loan from Hughes Air- craft Co., is serving on dollar-a-year basis as special con- sultant to National Production Authority’s Office of Civil- ian Requirements. Chapter on color TV in annual report of Senate Small Business Committee created slight stir when Jan. 16 Radio Daily report left impression that committee had endorsed FCC decision. Actually, committee directed staff to study situation after it had received many complaints from dealers and distributors. But all staff has done is to digest FCC decision and report on subsequent litigation. As staff member puts it: “It would probably take 7 or 8 engi- neers to do a real study, so we’re waiting for next commit- tee meeting [Feb. 1] to see what they want. This report was supposed to be for background only, not to imply opinion of the committee one way or the other.” Specula- tion about DuMont-CBS tieup on color in Jan. 17 Variety, based on recent meetings between Dr. Allen DuMont and CBS president Frank Stanton, is dismissed by Dr. DuMont who says “nothing to it.” He says that meetings had nothing to do with color, that “we have some problems in common — labor, etc.” 5 - Station Accounts: Baltimore builders A. H. Carrigan & Co., offei’ing $19,800 stone ranch houses on Jan. 12 Dream House Time on WAAM, 6:40-6:55 p.m., reported 20 phone responses, 20 live prospects — leading adman Marx Kauf- man, of Kaufman-Strouse, to release this enthusiastic statement: “I’m convinced anything can be sold on TV. It’s equal to having 10,000,000 Fuller Brush men putting their feet in the front doors of homes all over America, giving demonstrations’’ . . . TV, films and I’adio reported contemplated in $800,000 New York Stock Exchange’s “public education’’ budget for 1951 . . . Washington Sena- tors have sold rights to telecasts of 21 home games, radio broadcasts of 154 (WTTG & WWDC, I’espectively), to Christian Heurich Brewing Co. (Old Georgetown beer), thru Henry J. Kaufman & Associates, Washington . . . Parx Products Corp. (plastic finger-nail cover), headed by Herbert L. Pettey, ex-mgr. of New York’s WMGM, plan- ning campaign using TV & radio, thru Henry J. Kaufman & Associates . . . Greyhound Bus Lines sponsoring sports roundup on KSTP-TV, St. Paul, Mon. thru Fri. 10:20-10:30 p.m. . . . General Service Publishing Co., in conjunction with Grand Union Co., sponsoring Fun with Food, cooking show, on WJZ-TV, New York, Fri. 2-2:30, thru French & Preston, N. Y. . . . New spot business on WCBS-TV, New York, includes: Standard Brands (Blue Bonnet marga- rine), thru Ted Bates & Co., N. Y.; Purity Bakeries (Gren- nan Cakes), thru Young & Rubicam, N. Y.; Liebmann Breweries (Rheingold beer), thru Foote, Cone & Belding, N. Y.; Plough Inc. (aspirin), thru Lake, Spiro & Sherman, Memphis . . . New account on WABD, New York, is Cort- ley Frosted Foods, sponsoring You're On Your Own, Sun. 2-2:30, thru Fairfax Adv., new spots on WABD include Ward Baking Co. (Ward’s Tip-Top bread), thru J. Wal- ter Thompson; Harry Doehla Co. (greeting cards), thru Schwab & Beatty; California Packing Corp. (Del Monte canned foods), thru McCann-Erickson . . . Among other advertisers currently repoi'ted using or preparing to use TV : Richard, S. A. Morges, Switzerland (watches, electric shavers), thru Weiss & Geller, N. Y.; Stardust Inc. (slips & bi'as), thru Norman D. Watters & Associates, N. Y.; Chunk-E-Nut Products Co. (peanut butter, etc.), thru C. J. LaRoche, N. Y.; American Home Products Corp. (Bur- nett’s pudding), thru Earl Bothwell, N. Y.; Sealy Inc. (mat- tresses), thru Olian Adv., Chicago; Hygrade Food Prod- ucts Corp., thru Brooke, Smith, French & Dorrance, N. Y.; Miller Brewing Co. (Miller High Life Beer), thru Mathies- son & Associates, Milwaukee; Zippy Products Inc. (Zippy liquid stai'ch), thim W. B. Geissinger & Co., Los Angeles; I S. C. Johnson & Sons (Pride liquid furniture polish), thru Needham, Louis & Brorby, Chicago. Stations Planning & Advisory Committee of NBC radio and TV networks holds first meeting, since new . elections, Feb. 14-15 in New York. TV members are: Mar- tin Campbell, WFAA-TV; E. R. Vandeboncoeur, WSYR- TV; John Murphy, Ci’osley; Dean Fitzer, WDAF-TV. Radio members: Richard 0. Dunning, KHQ; B. T. Whitmire, WFBC; Milton L. Greenebaum, WSAM; Howard E. Pill, WSFA; Ralph Evans, WHO; Robert Thompson, WBEN; Jack Harris, KPRC; S. S. Fox, KDYL. Latter 3 also operate TV stations. I TV time and talent charges must be related to effec- 1 tiveness of medium, have no standing by themselves. That’s 1 consensus of TV network and station executives contacted i' in connection with Kuclner Agency president James H. S. j Ellis’ warnings that TV costs were getting out of hand ' (Vol. 7:2). None intend any public rebuttal of Ellis’ Detroit I speech, on grounds that it doesn’t matter how much a show 1 costs, if it .sells the goods. Even Variety Jan.- 17 editorial t makes that point, adds: “. . . there is perhaps no ceiling on I talent’s real worth to sponsors for merchandising values.” I Nelwork TV-Radio Billings December 1950 & 12 Months 1950 Network T1 time billings of $6,684,363 in December (exclusive of non-reporting DuMont) brought total for 1950 to $40,453,878 — but DuMont has reported separately that its 1950 billings were $4,500,000. December figure is up from November’s record $6,524,858 (Vol. 6:51) and from December 1949’s $1,921,166, and 12 months billings are moi-e than thrice 1949’s $12,294,513. Network radio time sales for December were $15,673,016, down from December 1949’s $16,408,884; for all 1950, the 4 AM networks reported $183,358,922 as against $187,800,329 for 1949. The TV-radio figures, as reported by Publishers Information Bureau: December 1950 NBC . $ 3,274,877 CBS 2,269,022 ABC 1,140,464 DuMont » Total . $ 6,684,363 Jan. -Dec. 1950 $ 21,185,812 12,797,556 6,470,510 $ 1,921,166 $ 40,453,878 NETWORK TELEVISION December 1949 $ 1,026,366 568,713 219,337 106,750 Jan.-Dee. 1949 $ 6,500,104 3,446,893 1,391,991 955,525 $ 12,294,513 CBS NBC ABC MBS Total NETWORK RADIO $ 6,544,490 5,063,845 2,752,288 1,312,393 $15,673,016 $ 5,774,939 5,631,643 3,656,492 1,345,810 $16,408,884 $ 70,744,669 61,397,651 35,124,625 16,091,977 $183,358,922 $ 63,403,583 64,013,296 42,342,854 18,040,596 $187,800,329 * Not available, but DuMont has officially announced total 1950 network revenues as $4,500,000. NslWOtk Accounts: United States Shoe Corp. and its Red Cross Shoe dealers March 4 will sponsor one-time America Applauds, An Evening for Richard Rodgers on NBC-TV, Sun. 9-10; testimonial show preempts Philco’s Television Playhouse . . . Hollywood Candy Co. (Milk Shake candy bar) Jan. 27 begins unnamed children’s show on CBS-TV, Sat. ll:30-noon . . . Pabst Sales Co. (Pabst Blue Ribbon beer) Jan. 21 will sponsor film condensation of All-Star Professional Bowl football game on CBS-TV, Sun. 4-4:30; game was played in Los Angeles Jan. 14 . . . Sales Builders Inc. (Max Factor cosmetics) Jan. 20 starts Sheila Graham Program (kine) on NBC-TV, Sat. 11-11:15 p.m. . . . Next Jack Benny Shoiv on CBS-TV will be Jan. 28, sponsored by Lucky Strike, Sun. 7:30-8, in lieu of one of its regular This Is Show Business performances . . . Mutual Benefit Health & Accident Assn.’s On the Line with Bob Considine on NBC-TV starts Jan. 20, Sat. 5:45-6, not time reported (Vol. 7:1) . . . New Colgate-Palmolive- Peet Co. program on NBC-TV, Mon.-Wed.-Fri. 3-3:15 starting in February will be Szisan Peters Show, not Hawkins Falls as reported (Vol. 7:2) ... Campbell Soup Co.’s new Henry Morgan Show on NBC-TV, Fri. 9-9:30, starts Jan. 26 . . . Gibson Refrigerator Co. has cancelled plans for Laura Gibson Show slated to start Jan. 20 on CBS-TV, Sat. 7:30-7:45, due to expected cutbacks. Edward Cooper, who as Senate Interstate Commerce Committee specialist on communications advised Senator Johnson, chairman, on matters pei-taining to TV-radio, particularly FCC relations and the color controversy, is leaving that job Feb. 1 to become aide to new Senate ma- jority leader Ernest W. McFarland (D-Ariz.). He is suc- ceeded by Nicholas Zapple, for last 18 months special counsel on communications and aviation to Johnson’s com- mittee. Zapple formerly was an attorney with Civil Aero- nautics Board. Cooper, a Montanan, had formerly served with Senator Wheeler, and is an intimate friend of FCC Comr. Robert Jones, with whom he was once associated in an application for a radio station in Mr. Jones’ hometown of Lima, 0., while Jones was a Congressman. Senator McFarland will continue on Johnson committee. I f Mobilization Report January 20, 1951 CIVILIAN PRODUCTION MUST GO ON: No matter how thin military electronics appropria- tions are sliced, there still won't be enough such business to keep TV-radio indus- try at necessary healthy economic levels. It's that plain and simple fact that has turned upside down the idea preva- lent in the industry that all it needs is a guarantee of enough materials to keep civilian lines rolling until military orders "take up the slack." Short of all-out war, that "slack" may be with us indefinitely. Here's why; Even if military services were to let contracts covering all their present monies, substantial civilian production would still be necessary to keep factories going and employes at work against dread possibility of eventual 100% mobilization. It's, that fact that led Munitions Board to report, in press release on its Jan. 15 meeting with V. I. P. -packed Electronics Equipment Industry Advisory Committee (for list of those attending, see p. 8) : "...money available for electronics procurement is not enough to alleviate all of the dislocation which may arise, although some relief should be forthcoming with the money that is now on hand and expected." It was obviously with that knowledge in mind that Hallicrafters ' military- wise Wm. J. Halligan warned of coming depression in TV-radio (Vol. 7:2), and Cros- ley's John W. Craig referred to unemployment problems (see Mobilization Notes). What does it mean? It means that civilian production must be continued in- definitely. It makes conservation and substitution programs (Vol. 7:1-2 and p. 8) more than mere stopgap measures. Here's the score: Electronics-communications share of military budget is expected to total about S8.5 billion through June 50, 1952 — the sum of ; $1.8 billion already let ; definite $1.7 billion, plus probable $1 billion, yet to be let before June 30, 1951; 34 billion more (roughly 10%) out of President's military budget for fiscal 1952. Total of 38.5 billion sounds like a lot of money, and orders will really begin hitting industry next few months — though it will be 6 months or more before they show up on production lines. But, consider these facts; (1) All of this money isn't for purely electronic items. Great chunk is for telephone and telegraph wire, batteries, switchboards, power vmits, etc. There's another big sum for non-electric parts of electronic equipment, such as radar towers, housings, motors, generators, etc. (2) Military dollar can't be equated alongside the civilian dollar because military equipment is so much more complex, specifications more rigid, that unit cost is much higher (Vol. 6:49). (3) Military requirements aren't big in numbers of units. Contracts gen- erally run only in the thousands of units — not the tens of thousands needed to keep TV-radio industry rvinning at present high rate. (4) Most contracts are still development and design projects — and probably will continue to be for some time. It's unfortunate — but a fact — that lontil high policy changes (or is changed by international developments) most contracts will be for early pre-production runs. Few major TV-radio manufacturers are staffed with that kind of engineering talent. * * * So, talk of spreading contracts among TV-radio manufacturers to keep man- power, maintain production lines, is unrealistic. These are factors military will face if it spreads everything; (1) Everyone will get a little bit ; none enough to make up for anticipated reduced civilian output. (2) Many war-experienced manufacturers, who have continued to produce for WITH AM-FM REPORTS 1519 CONNECTICUT AVE. N.W. If WASHINGTON 6, D. C. • TELEPHONE MICHIGAN 2020 6 7 military since World War II, have spent large sums to tool up and expand for spe- cialized military production. They'd be penalized if their contracts were reduced. Spreading of contracts, nevertheless, is the avowed policy of Defense Dept. Recent directive from Secy. Marshall (Vol. 6:51), plus President's declaration of national emergency which permits negotiated contracts (Vol. 6:50), have helped mili- tary services widen number of contracts. In fact, some recent contracts make it mandatory for prime contractor to subcontract — up to 50%, in some cases. One aspect of spreading the contracts has special military merit in this atomic era — dispersal of plant. It's military maxim to spread production geo- graphically, have more than one or two factories making same items. HOW GOVT. WILL CONTROL MATERIALS: NPA's piecemeal industrial mobilization program is near end of the road. Unrelated across-the-board materials cuts threaten severe inequities and dislocations in civilian industry. Present system is inadequate even for this semi-war economy. Hence — Production authorities see answer in CMP — Controlled Materials Plan — most successful method developed during last war for holding U.S. industrial economy to maximum military and essential civilian production. CMP will probably emerge by summer from planning boards of Defense Produc- tion Administration and National Production Authority. Mobilization czar Charles E. Wilson said Jan. 19 he hopes to have CMP program ready in June. More than 20,000 govt, employes were needed to operate CMP in World War II. DPA administrator Wm. H. Harrison told Senate Small Business Committee same day. "Even if such a staff were now in existence," said Harrison, "the uncertainty as to the precise nature and extent of the military program would make it impossible to put any such plan into operation until these issues have been resolved." All U.S. production will be regulated — under CMP — through control of basic materials. During World War II, 3 metals — steel , aluminum, copper — formed basis for CMP's operation. How v/ill CMP work? Projected outline, based on World War II operation: All purchase orders involving strategic materials must be approved by Govt. Then, each manufacturer who has an approved order — military or "essential" civilian — receives allotment of materials he and his subcontractors must buy to fill order. "Claimant agencies" are set up as spokesmen for all segments of industry — military or civilian. There were 12 in World War II. NPA has already designated 19 such agencies as claimants ; they probably will serve under new CMP setup. For I example; Defense Dept, is claimant for military needs; Maritime Administration, for ; shipping; Civil Aeronautics Board & Civil Aeronautics Administration, for civil air- ! craft and equipment; FCC for civil communications facilities, both Govt, and pri- vate, not covered by other agencies; NPA's Industry Operations Bureau, for consumer I goods and needs of all industries not covered elsewhere. I Each agency decides how much of each strategic material is needed in the field it covers. Available materials pie is then cut by govt, production agency (probably DPA) , and stream of allocations — based on essentiality — flows down to claimant agencies as lump-sum allotments of each controlled material. Each claimant agency then makes sub-allocation to its prime contractor; each prime contractor makes further allocation to his subcontractor; each subcontractor I allots to his sub-subcontractor, etc. Thus, allocations — in form of certificates I permitting purchase of given amount of scarce material — follow same lines as the I contracts, and are managed by group which makes the procurement. ' Example : TV or radio station applies to FCC for increase in power. FCC rules ; increase is necessary to properly serve station's area, then takes up application I with DPA. If DPA gives OK, transmitter manufacturer is allotted sufficient mate- ; rials. From his allotment, he in turn doles out to his components makers certifi- I cates for required materials. Same system would apply to military orders. Materials limitation orders in NPA's present "M" series would continue in I force for "non-essential" civilian users — those who can't get allotments under CMP. 8 NPA HELPING MAINTAIN PRODUCTION: There's little doubt now that National Production Authority has classified TV-radio industry — or more properly, electronics industry — "essential" with a capital "E" . Relief from NPA orders limiting use of aluminum, copper and nickel is being granted wherever companies have shown that the limitations would force substantial cutbacks and layoffs. Aluminum order (M-7, see Vol. 6:46-50) has prompted most appeals by elec- tronic firms, perhaps because it was first order issued. Many of these protests have been from capacitor manufacturers. And in practically every one of these cases, satisfactory ad.iustments have been made. RCA, facing prospect of layoffs in tube dept. 2 weeks ago because of limita- tions on use of nickel and copper, sent emergency appeals to NPA's Electronic Prod- ucts Division (Vol. 7:1). Both appeals were granted and there were no layoffs. (RCA's component division, which has been on 4-day week for last 2 weeks, is going back to 5-day production, at least tenfporarily. ) Relief has been granted "in all cases" where conservation measures require purchases of hard-to-get substitute materials, NPA electronics men say. "If they just let us know, we'll help them get the materials they need to substitute for more critical materials." * * * J(: Realizing that survival may depend on savings in critical materials, all manufacturers are working on conservation measures (Vol. 7:1-2). Independent research is not enough, however. Knowledge gained must be pooled. Important step toward this goal was taken Jan. 18 when engineers from most major electronic tube firms attended conservation meeting at GE's New York office. Conservation know-how will be shared for benefit of national defense and continued civilian production, and engineers laid groimdwork for interchange of in- formation. Companies represented are members of RTMA & NEMA and include Bell Labs. GE, Lansdale Tube (Philco subsidiary which initiated meeting), RCA, Sylvania, Western Electric. Westinghouse. Invited to meeting was NPA Electronic Products Div. staff member Delmus J. Fagge (ex-Air Force radar man, ex-CAA and Bureau of Standards engineer) who gave pledge of all possible aid from NPA. Featured in discussion were these critical materials which go into indus- trial, power and TV-radio tubes: nickel, copper, aluminum, cobalt, chrome, tungsten, barium carbonate, mica, brass, platinum, mercury. Engineers will circulate questionnaire among all tube manufacturers to de- termine amount of critical materials used by tube industry. Then second meeting will be held to explore every avenue for joint conservation effort. Note : One of the fruits of industry's conservation programs, RCA's new electrostatic-focus picture tube — which saves copper and cobalt — reportedly will be in full production by end of first quarter. At Munitions Board meeting of Electronics Equipment Industry Advisory Committee Jan. 15 (see p. 6) were: Fred Lack, Western Electric, chairman; Benjamin Abrams, Emerson; Dr. W. R. G. Baker, GE; Max F. Balcom, Syl- vania; A. A. Berard, Ward-Leonard; E. W. Butler, Fed- eral; R. W. Carter, Carter Motor; Monte Cohen, F. W. Sickles; A. Crossley, Electro Products; W. J. Wind, Wil- bur B. Driver; Jess Marston, International Resistance; R. C. Ellis, Raytheon; Walter Evans, Westinghouse; Adm. Walter J. Buck, RCA; Paul V. Galvin, Motorola; George M. Gardner, Wells-Gardner; Ross D. Siragusa, Admiral; Wm. J. Halligan, Hallicrafters; R. F. Herr, Philco; E. K. Foster, Bendix; H. L. Hoffman, Hoffman Radio; A1 De- Leighter, Standard Transformer; W. A. McDonald, Hazel- tine; Thomas Meloy, Melpar; H. L. Olesen, Weston; A. D. Plamondon Jr., Indiana Steel; Robert C. Sprague, Sprague Electric; A. E. Thiessen, General Radio; Dr. P. N. Hamble- ton, Superior Tube; G. E. Wright, Bliley. Also present, among other high govt, and military officials, were Muni- tions Board Chairman John D. Small, Under Secy, of Army Archibald S. Alexander, Asst. Secy, of Navy John T. Koehler, Under Secy, of Air Force John A. McCone. Word is that Fred Lack, Western Electric v.p., wants to resign chairmanship of Munitions Board’s Electronics Equipment Industry Advisory Committee. Feeling is that . problems of committee now deal with TV-radio and com- ] ponents manufacturers, that committee should be headed ; by someone representing that segment of electronics-com- munications industry. Bendix has subcontracted $20,000,000 of its military orders — with 40'X going to plants employing fewer than ’ij 100 persons, radio div. purchase director John L. Win- ’i Chester levealed Jan. 15. Subcontracts range from small h resistor subassemblies to steel towers. ; 9 Mobilization Notes: Electronics industry, with doubled capacity since World War II, thanks to high level of TV- radio production, is well able to handle sizable amount of military procurement. Yet for certain specialized mili- tary items, it still needs expansion — e.g., subminiature tubes. That’s generally accepted implication of Defense Mo- bilization Director Wlison’s reference to electronics in his Jan. 17 address in Philadelphia. He said: “Expansion of production facilities in electronics is more difficult. Far greater quantities are needed than in the last war; and they are needed sooner. The devices are more complex. But, in electronics, too, the job will be done; it has to be done.” Two paragraphs after this reference, Wilson spoke of using these inducements to get industries to expand: (1) Accelerated amortization for tax purposes. (2) Loan guarantees. (3) GoAd;. loans. sis 4c ^ Electronics manufacturers hope that they can keep their employes working, despite materials shortages. But, warnings of coming unemployment continue. Latest was by Crosley’s John W. Craig, who told RTMA industrial re- lations meeting in New York Jan. 17: “When materials shortages cut heavily into civilian production before de- fense orders can take up the slack, it can mean mass lay- offs with the attendant problems of losing trained and skilled people at the very time they are hardest to obtain on the labor market.” Paradox for TV-radio manufac- turers is this, said Craig: “When the military orders take up the slack, there will be the still greater problem of get- ting the full number and kinds of employes needed.” Every distributor a military subcontractor — that’s proposition made by Belmont’s W. L. Dunn Jan. 18 to his (Raytheon) distributors — in event of “all-out mobiliza- tion.” He said that in World War II Belmont found that 30 Vr of its military production was in “simple subas- semblies.” His plan “proposes to shift that 30% of mili- tary production . . . from our factory to distributors and dealers’ stores throughout the country,” with distribu- tors acting as production coordinators, expediters and in- spectors, and retailers acting as producers. Point is that such a plan, which has been broached in one form or an- other by others recently, would keep distributoi'-retail or- ganizations intact. To help small business get fair share of defense orders and scarce materials. Sen. Sparkman (D-Ala.), chairman, and 12 other members of Senate Small Business Commit- tee Jan. 17 introduced bill (S-537) to set up Small Defense Plants Corp. similar to setup of World War II. Agency would be empowered to enter into contracts with Govt., farming out work to small businesses. Bill would set up $500,000,000 fund to make loans to small businesses for expansion and reconversion. Signal Corps Procurement Agency has opened New York branch office at 80 Lafayette St. “to expedite defense communication and electronic equipment and supplies.” Main office is in Philadelphia. Construction will begin this spring on new Signal Corps depot on 1400-acre tract at Tobyhanna, Pa., near Scranton. Completion of this permanent installation, with 2,000,000 sq. ft. of floor space, is scheduled early in 1953. Among unclassified military contracts for electronics and related equipment (more than $100,000) announced by Commerce Dept, for week ending Jan. 17: Through Air Materiel Command, Dayton — Philco, $1,500,000, micro- wave systems; Wilcox Electric, Kansas City, $621,741, receiver-transmitters; Gilfillan Bros., $394,985, radar com- ponents; Rauland-Borg, $315,997, amplifiers. Through Navy Electronic Supply Office, Great Lakes, 111. — Sylvania, $195,000, electron tubes (100,000 units); GE, $151,800, tubes (200,000). Through Navy Aviation Supply Office, Philadelphia — Northeastern Engineering Co., Manchester, N. H., $297,837, radiosonde transmitters (15,792). Through Navy Bureau of Ships, Washington — Air Associates Inc., $293,912, radio receivers (271). Through Navy Ordnance Bureau, Washington — Hytron, $196,374, rocket electrical connectors (300,000). In addition, GE Jan. 18 announced receipt of $2,000,000 Signal Corps contract for improved mine detectors to operate on land and under water. Formation of national servicemen’s organization is called for in invitation to meet Jan. 28 at Washington’s Hotel Hamilton. New organization, to be known as National Assn, of Electi’onic Technicians’ Assns., has temporaiT organizing committee comprising David Krantz, chainnan. Federation of Radio Servicemen’s Assns. of Philadelphia; Max Leibowitz, president of Assn, of Radio Servicemen of New York & Empire State Federation of Electronic Technicians’ Assns.; Norman L. Chalfin, executive secy., ARSNY. Arrangements committee comprises Norman R. Selinger, v.p., TV Associates of Washington; Ted Fishman, ARSNY. Among reasons given for need for new organiza- tion are: (1) Bad state of parts distribution. (2) Alleged tie-in practices on excise tax and warranties and on set sales and service contracts. (3) Service charges. Call re- fers to recent formation of National Alliance of Television & Electronic Service Assns. (Vol. 6:43), but not by name, claims it has failed. There has been friction among some members of NATESA. Walter H. Stellner, Motorola v.p., is heading its newly formed Military Division. President Paul Galvin’s Jan. 12 report to stockholders states military backlog is increas- ing, and during latter 1951 should be big factor in billings. During first half 1951, he also stated. Motorola expects to produce about same quantity of TVs turned out in first half 1950, when gross over-all billings were $70,347,399, profit $6.50 per share (Vol. 6:28). Total 1950 sales ex- ceeded $175,000,000, profit $14.25 per share on 880,000 shares outstanding at end of year. Keynote of IRE convention March 19-22, in New York’s Waldorf-Astoria and Grand Central Palace, is “Advance with Radio-Electronics in the National Emergency.” Ses- sions are loaded with TV — ^vhf-uhf transmission and re- ception, color papers and panels, station design, etc. RCA has borrowed $20,000,000 more from 3 institu- tional investors on 3% notes maturing May 1, 1974, bring- ing to $60,000,000 outstanding notes as of Dec. 31, 1950. Trade Personals: Admiral Wm. F. Halsey (ret.) elected president of Telecommunications Laboratories Inc. (IT&T) . . . Vice Admiral E. D. Foster, just retired as Navy chief of materiel, appointed RCA Victor director of mo- bilization . . . Sheldon R. Lewis, ex-Montgomery Ward, named traffic mgr., RCA Victor . . . Roy E. Drew, mgr. of cost analysis & control, appointed Sylvania TV Tube Div. controller at Seneca Falls, N. Y. . . . Stephen J. Welch ap- pointed New York district representative for GE Tube Divisions . . . Harry H. Erickson promoted to sei-vice mgr. for all Admiral branches, succeeded at Appliance Distribu- tors Inc. by Willis Wood, ex-Harry Alter Co. . . . Harry Kruse, ex-Columbia Records, now executive v.p. of Lon- don Gramophone Corp.; Joseph P. Dalaney, v.p. in charge of artists & repertoire; Leon C. Hartstone, v.p., adminis- tration . . . W. M. Kron, from Owensboro tube works, named mgr. of GE’s Tell City, Ind., tube plant, succeed- ing J. A. Gerber, now asst, to Tube Div. mgr. L. B. Davis . . . Edward Weingarden succeeds Edward Mayer as presi- dent of Atwater Television Corp., Simon Chervin named treas., F. Robert Petrino executive v.p. SCARE BUYING' ONLY PART OF STORY: ^ eches and headlines about shortages, emanating from Washington, may be main factor in continued high level of TV-radio and appli- ance sales — what Wall Street Journal calls "new wave of scare buying." But in TV trade, at least, observers see other potent factors. For example: DuMont's Walter Stickel told Chicago convention of National Appliance & Radio Dealers Assn, that 90% of the 1,160,000 TVs sold during 1946-47-48 will be replaced this year because most were 7, 10 & 12-in. sets and owners want larger pic- tures. He also opined that 25-40% of 1951's retail unit volume will be in used sets. There's much to what the DuMont sales chief says, but biggest potential still is new customers from non-TV homes — and, happily, they're coming into the stores. Inherent appeal of TV and programs people talk about, as well as expected scarcities, are bringing in otherwise recalcitrant customers. Set sales are high despite increased prices — and the paucity of distress merchandise and special sales would indicate continuingly good near-future outlook. As yet, defense orders aren't sufficient to interfere very substantially with production, and manufacturers are still urging retailers to stockpile in an- ticipation of shortages later. Those who have the credit are doing just that. January production figures may tell eloquent story of trends — but only the first week's are as yet available front RTMA auditors. It isn't a typical week, either, for it included New Year's Day, with its usual hangover of absenteeism. Moreover, some factories are curtailing while taking inventory. First production week of 1951 (ending Jan. 5) shows 105,699 TVs (8268 of these for private labels) and 209,792 radios turned out. Of radios, 134,079 were home, 63,188 auto, 12,525 portable units. Both TV and radio output totals are within fraction of final 1950 week, which also was 4 days because of Christmas: 105,968 TVs, 201,482 radios. * * * « NARDA convention elected Mort Farr, of Upper Darby, Pa., as new president, succeeding James Lee Pryor, Wilmington, Del. At same time it named new gen. manager — Albert W. Bernsohn, now on RCA Camden public relations staff. He takes over Feb. 1, succeeding Cliff Simpson, now heading Chicago Electric Assn. He's a former news- paperman, is currently chairman of Philadelphia Television Assn. NARDA next meet- ings will be Jiine 24-25 in Chicago's Stevens Hotel. BIG FOUR DID $l^^ BILLION BUSINESS: Annual reports with specific figures will soon be forthcoming — but, in meantime, it's interesting to note that TV's Big Four ac- counted for gross factory sales of SD'4 billion or more for calendar 1950, as against a little more than $803,000,000 in 1949. Figure for 1950 is derived thus: RCA did well over $500,000,000 (Vol. 6:52). Philco has announced in excess of $335,000,000 (Vol. 7:1), Admiral in excess of $230,000,000 (Vol. 6:51). This week, in letter to stockholders. Motorola announced sales in excess of $175,000,000. These are over-all sales, not merely TV-radio. Their 1949 reports showed: RCA $397,259,020, Philco $214,884,000, Admiral $112,004,251, Motorola $79,065,115. How many TVs each company turned out is closely guarded secret of each — but good guesses would be: RCA, about 1,000,000; Philco and Admiral , between 900,000 and 950,000 each; Motorola, between 500,000 and 600,000. These could be slightly off, but they ought to be pretty good guesses; in case of Motorola, guess is based on fact that its president has stated that nearly 60% of its business comes from TV, and average factory price per set is roughly $178 (Vol. 7:2). Thus, of TV's 7,400,000-plus production in 1950 (Vol. 7:2), top 4 companies probably accounted for well over 3,000,000. Rest of the business is divided among 90-odd other manufacturers (for complete list, see TV Factbook No. 12). 10 - 11 - Topics & Trends of TV Trade: Editor o. h. Cald- well, of Radio & Television Retailing, who knows the trade better than most, raises our $3 billion estimate of 1950 TV-radio retail trade (Vol. 7:2) by considerable amount in his January edition. He totes up not merely the year’s TV-radio receiver sales plus installation, servicing, war- ranties, as we did; he adds other concomitant items to make “annual bill of U. S. for Radio-TV” reach grand total of $4,527,000,000! Here’s how he arrives at that staggering figure: Sales of time by broadcasters (and telecasters), $496,- 000,000; talent costs, $80,000,000; electricity, batteries, etc., to operate radio & TV receivers, $380,000,000; 14,- 000,000 radio receivers, retail, $650,000,000; 7,000,000 TV receivers, retail, $2,149,000,000; 199,000,000 phonograph records, $226,000,000; 60,000,000 replacement tubes, $96,- 000,000; TV-radio parts, accessories, etc., $200,000,000; labor, $250,000,000. 4c 4: ^ ^ Mr. Caldwell estimates 101,000,000 of the 193,000,000 radio-TV receivers used in whole world are in U. S. He figures 45,000,000 U. S. homes with radios, 24,000,000 with secondary radios, 4,000,000 in business places, institutions, etc., 17,000,000 in autos, 11,000,000 TVs. He also reckons 21,915,000 phono turntables in use — 78rpm, 15,400,000; 33rpm, 1,065,000; 45rpm, 2,450,000; 78 & 33rpm, 400,000; 3-speed, 2,600,000. “Seems likely,” he states, “that 4,500,- 000 phonographs of all kinds, including those in combina- tions, will be sold in 1951 if manufacturers can produce that number.” If Caldwell’s round figure of 7,000,000 TVs sold dur- ing 1950 is accepted, it means at least 400,000 were still in trade pipelines as of Jan. 1, 1951, since 1950 produc- tion totaled slightly more than 7,400,000 (Vol. 7:2). Fig- ure seems too low, however, when you consider NBC sets- in-use count has total of 10,549,500 (see p. 12), whereas cumulative production since emergence of TV industry in 1946 was about 11,600,000 (Vol. 7:2). 4c 4: 4c 4: New manufacturer is Air Marshal Corp., 12' E. 44th St., New York. Frederick G. Gearhart, ex-Wilcox-Gay board chairman, is president, W. R. Rich, sales v.p. First set is 17-in. table, $199.95, with 14 tubes. Service plans envisage removal of chassis for repair, replacing with spare. New York Telecoin Corp., located at same address, is New York distributor. Stromberg-Carlson has new 24-in. console with phono- jack for $675. It’s companion model to 24-in. console- combination at $975, introduced last fall (Vol. 6:44). Much the cheapest 1951 TV set prices are those adver- tised by Muntz: 17-in. leatherette table for $189.95, same in wood consol ette $244.95; 20-ih. consol ette, $269.95; 19-in. round console, AM-FM-phono, $399.95. Sylvania has increased prices of all its sets $10 to $30, has new 20-in. table model at $399.95. 4c 4: 4c 4: Credit procedures and techniques used by credit de- partments of large and small stores are explained in new edition of Credit Management Yearbook just issued by National Retail Dry Goods Assn., 100 W. 31st St., New York. Included are credit sales promotion, collections, expense control, customer relations, smaller store credit problems, retail credit management, credit education, bu- reau relations, text of Regulation W. Thompson Products Inc., Cleveland, aircraft and auto- motive equipment, reported entering electronics field, manufacturing coaxial selector switches and other ap- paratus for military and civilian TV-radio and telephony. New Electronics Div. is headed by L. W. Reeves, v.p., engi- neering directed by A. L. Pomeroy. Financial & Trade Noies: Among officers’ and direc- tors’ stock transactions reported by SEC for November: Kenneth D. Turner sold 72,000 Admiral, holds 1116; George E. Allen bought 300 Avco (Feb.), holds 900; John W. Craig bought 500 Avco, holds 500; William I. Myers bought 200 Avco, holds 200; K. R. Wilson Jr. bought 100 Avco (Oct.), holds 100; Wm. J. Halligan and wife sold 101,000 Halli- crafters, bought 16,200 for trusts (both Oct.), hold 200,600; Laurence B. Dodds bought 100 Hazeltine, holds 100; Henry Reeve bought 100 Hazeltine, holds 5700; Ernst E. Bareuther bought 8 Philco, holds 47; W. H. Chaffee bought 100 Philco, holds 429; Charles F. Adams Jr. bought 1000 Raytheon, holds 6000; John J. Smith bought 700 Sparks- Withington (500 in joint tenancy), holds 2900; Thomas H. Beacom (as trustee) bought 100 Stewart-Warner, holds 300; John F. Fennelly bought 100 Stewart-Wamor, holds 200; Chester F. Hockley bought 500 Sylvania, holds 800. Emerson stock transactions reported by SEC: Benja- min Abrams (plus foundations and trusts) received 26,612 shares as dividends, hold 292,739; Ferdinand Eberstadt received 100, holds 1100; Abraham Rosen received 220, holds 2420; Harvey Tullo received 198, holds 2178; Max Abrams received 7137, bought 1320 (for trusts), holds 93,029; George H. Saylor received 44 plus 220 in stock splitup (June), holds 484; Charles Robbins sold 400 (Oct.), holds 1500. In addition, N. Y. Stock Exchange reports Max Abrams bought 1491 Emerson in December, holds 80,000 in own name. Emerson Radio’s consolidated net sales for fiscal year ended last Oct. 31 reached record $74,188,297, record net income of $6,514,716, equal to $3.70 a share on 1,759,610 capital shares. This compared with previous year’s sales of $40,543,925, net income of $3,035,652 ($1.73), previous peaks. Earnings before taxes were $11,969,778 vs. $4,748,- 795 year before. Current assets as of Oct. 31 totaled $25,- 136,890, current liabilities $12,077,094, leaving net work- ing capital $13,059,795 as against $9,641,617 year earlier. Emerson directors this week approved additional com- pensation plan whereby 2%% of consolidated income of corporation and subsidiaries, but not less than $100,000 or more than $250,000, will be divided as follows: 50% to president, executive v.p. & secy.-treas.; 23% to 3 vice presi- dents and asst, treas.; 27% to 15 key employes. Jan. 17 proxy statement for stockholders’ meeting Feb. 7 reveals Emerson officer-director stockholdings as follows: Benja- min Abrams, president, 220,000 shares plus 72,739 held beneficially for children, grandchildren, et al.; Max Abrams, secy.-treas., 80,000 plus 14,520 as trustee for children; F. Eberstadt, director, 1100; Richard C. Hunt, director, 704; Dorman D. Israel, executive v.p., 1364; George H. Saylor, director, 484. He * * ❖ Hallicrafters earnings for its first fiscal quarter (ended Nov. 30) were $451,636 on 825,000 shares out- standing, or 55^ per share on sales of $11,881,263. This compares with earnings of $229,766 (34(#) on 675,000 shares and sales of $5,560,206 for same 1949 period. Dividends: Avco, 56%l,based on 40-mi. (.5 Mv/m). Article explaining basis for new and more realistic concept of coverage appeared in this space last week (Vol. 7:3). STRIPPED-DOWN RECEIVERS IN PROSPECT: Call it what you will ^ — "austerity model" or "utility" model — the TV set of near future (radios, too) will be stripped down to bare essentials and will be replete with ingenious materials-saving developments. Philco will unveil its answer to materials shortages to NPA officials at ■private Washington showing in Hotel Hay-Adams, Feb. 14. Presumably this will be the set -president Wm. Balderston told Chicago distributor convention (Vol. 7:1) could save substantial quantities of cobalt, nickel, copper, aluminum and steel. The industry is understandably shy about announcing new developments which short-cut materials bottlenecks for fear public will get impression new sets will be inferior. But there's no doubt "stripped down", materials-saving set will be vogue as year progresses — enabling civilian production to continue and bridging gap between sparse military orders and sparse materials. Meanwhile , distributors-dealers are quite properly urging customers to buy now and assure themselves of "pre-war merchandise. " No set manufacturer has told us he plans to make set using much-discussed electrostatically-deflected picture tube (Vol. 7:1-3). They all say they can do it, have the know-how. However, practically all CR tube makers are rushing to get this cCbalt-copper-nickel-saving tube into production — so they must have orders for it. National Union, for instance, says it has been developing this type tube in ' 14, 17 & 20-in. rectangular sizes for 6 months, expects to be in full production by end of February. It says its new line of tubes "can be used in place of same sizes employing electromagnetic focusing," are "mechanically interchangeable" and have I same electrical ratings as magnetic-focusing tubes they're designed to replace. Electrostatic tube they're all talking about is new development, reported comparable in quality to present picture tube, will not degrade pictures. Like new autos, new TVs will lose glitter. Brass, nickel, chrome will vanish from front panels. As case in point, NPA's Jan. 24 end-use regulation of nickel : (M-14, as amended) provides that nickel plating cannot be used on TV-radio escutch- eon plates, knobs, nameplates, decorative trim or speaker grilles. Functional parts in TV-radio, however, continue to get good break in nickel ,ij order, being specifically exempt from end-use bans. Use of nickel-bearing stainless ' steel is not permitted in radio towers and radio antennas, but industry sources say t , little or no stainless steel is normally used in such equipment anyTvay. ■ I Copyright 1951 by Radio News Bvireau TV ALREADY AMONG TOP>BANKING MEDIA: if you haven't already noted the FIB Network TV-Radio Billings table for 1950 published on page 5 of last week's Newsletter (Vol. 7 :3) , we commend it to your attention — not only for its amazing revelation of some $45,000,000 in TV network billings (more than 365% ahead of 1949) but in light of these significant facts; Among first 20 advertising media in the land, as listed in full-page New York newspaper ads placed by Life Magazine this week, two of the 4 TV networks are included — NBC-TV ranking 8th. CBS-TV 16th. Network radio, of course, has 4 posi- tions -- CBS 2nd, NBC 4th, ABC 5th, MBS 15th -- but remember that network radio is about 25 years old whereas network TV (on limited scale) dates back only few years. Remember, too, that there are only 107 stations, only 80 interconnected for network service, not enough circuits for even these 80 to get full network services. Indeed, projecting 1950 final network figures, we reiterate our own rule-of-thumb estimate, based on fact local and spot always mean more dollar billings than net- work, that the 107 stations and 4 networks during 1950 accounted for at least $100,000,000 worth of time sales (Vol. 6:52). As landmarks toward the inevitable day when TV networks will rank highest among all media in advertiser volume, the 1950 rankings are worth reprinting from Life Magazine's ad (figures also based on PIB) ; 1. Life, $80,366,507 7. Ladies’ Home Journal, $22,485,163 13. American Weekly, $17,133,298 2. CBS-Radio, $70,744,669 8. NBC-TV, $21,185,812 14. MBS-Radio, $16,091,977 3. Saturday Evening Post, $63,180,611 9. This Week, $20,328,167 15. Good Housekeeping, $15,373,242 4. NBC-Radio, $61,397,661 10. Better Homes & Gardens, $19,631,228 16. CBS-TV, $12,797,656 5. ABC-Radio, $36,124,625 11. Look, $17,765,110 17. Woman’s Home Companion, $11,776,230 6. Time, $23,793,870 12. Collier’s, $17,397,066 18. Newsweek, $10,184,717 19. McCall’s, $9,940,868 20. Country Gentleman, $8,785,651 Note ; ABC-TV* s 1950 volume was $6,470,510, DuMont's $4,500,000 (Vol. 7:3). * * * ♦ "No matter what happens to set production. TV is going to spellbind a lot of advertisers," said ANPA advertising bureau director Howard S. Barnes to Newspaper Advertising Executives Assn. Chicago meeting this week. "It's going to sop up a lot of dollars that used to go to other media. " Mr. Barnes' main thesis was that newspapers are facing "the roughest,, tough- est competition this business has ever seen" and that magazines and radio, as well as TV, will force them to work hard merely to keep present advertisers. He called radio "the medium that refused to be buried." Media Records, meanwhile, this week reported newspapers had their biggest year ever in 1950, total lineage being 2,440,149,576, or 6% ahead of 1949. Automo- tive gained 14.3%, financial 11.6%, general 9.8%, total display 6.1%, classified 5.5%, dept, stores 4.5%, retail 4.4%. And Printers* Ink reports $5,684,000,000 total invested in national and local advertising in 1950, up 9.3% from 1949 — national up 10.3% to $3,281,000,000., local up 7.9% to $2,403,700,000. Newspapers accounted for 36.2% of total, direct ‘ mail 14.7%, radio 11.6%, magazines 9.1%, TV 2.8%, outdoor 2.5%. TO PROBE 'ANATOMY' OF TV PROGRAMS: FCC action on TV programming, much talked-about (Vol. 7:3), apparently will first take form of call for conference of telecasters to "explore" problem, develop breakdown of programs by categories similar to those re- quired in aural radio. FCC is supposed to make known plans after Jan. 29 meeting. Certain Commission elements wanted crackdown a la Blue Book — perhaps the citing of an egregious offender. But some commissioners want no part of another Blue Book flurry, oppose any semblance of direct program controls. Hence "round j table discussion" may precede any action. ! It's no secret some TV stations are over-commercialized, have been expecting] some sort of FCC check-rein. Inclination has been to give them their head during j lean income years, but lately the number of direct-selling, non-entertainment pro- ( grams has increased, creating demand for curbs. j FCC license renewal Form 303 requires breakdowns as between commercial & j 3 sustaining, network & local, live & kine programs, etc. Licensees must file that form in applying for renewals of current one-year licenses, all expiring Feb. 1. * * * * A sort of preliminary hearing on TV renewals took place before FCC at Jan. 23-24 hearings on educators' demand for TV channels, a demand partly predicated on alleged failure of commercial stations to fulfill educational functions. Into hear- ing record went study of program content of Nev/ York's 7 stations (Vol. 7:2). Educational protagonists spent $3100 on study, using 8 receivers and 24 monitors in Waldorf-Astoria suite, clocking programs under direction of U of Illi- nois communications professor Dr. Dallas Smythe, former FCC economist, and U of Chicago sociology researcher Dr. Donald Horton. "Typical week" of Jan. 4-10 was period of study. Already called "TV's Blue Book," because of blue cover, study purports to put commercial telecasters in equivocal light by showing: (1) Choice of programs is limited during many hours. (2) Crime and western drama, variety shows, sports, quizzes-stunts-contests , comprised 49% of week's 564 hours of telecast time — while informational, science, public service, institutional, nev/s programs accounted for only 9%. (3) Advertising messages occupied 10% of time, v;ith average length of 73 seconds. There were 20 "continuous commercial" programs (allegedly selling goods solely) for total of 29 hours. Categorical breakdowns were: Drama, 25% (of which 10% was crime) ; variety, 14%; children's programs, 12%; sports, 10%; homemaking, 10%; quizzes-stunts-contests, 7%; personalities, 5%; news, 5% (of which 2% was moving-tape news) ; music, 4%; information, 3%; public issues, 2%; religion, 1%; public events, 1% (President Trviman's State of Union address). Criteria for such classifications, naturally, came under immediate fire of attorneys representing TEA, NAB, CBS. Questioning elicited that: (1) Program was classified by "predominant theme". Thus, if it contained 51% vaudeville, with operatic arias or classical music dominating other 49%, it was classified as variety, with no weight given other portions. (2) What's called "continuous commercial" show might be considered a service program, not merely one long commercial — depending on predilection of the monitor. (3) Many commercials are "untimeable" — so interwoven into show that their length cannot really be determined. EDUCATORS' PROPOSALS CALLED WASTEFUL: Telecasters spoke up before FCC this week for first time on educators' proposal to reserve channels for non-commercial educa- tional stations (Vol. 6:48-49, 7:2). And from the titles and pedigrees of the witnesses, it was apparent comm.er- cial TV also had its ov/n considerable quota of highly qualified educators. Testifying against educators' proposals were: CBS president Frank Stanton, ex-Ohio State psychology prof ; NAB president Justin Miller, ex-dean of Duke Univer- sity Law School, ex-prof at Stanford, California, USC and Minnesota; NAB research director Kenneth H. Baker, ex-psychology prof at Northwestern, Minnesota and Ohio State; Charles F. Church Jr. , education & research director of KMBC, Kansas City, ex-music instructor at Bowling Green College. Waste of valuable channels — that phrase sums up telecasters' reactions to educators' demand that at least one vhf channel in each major city and educational center be reserved for educational telecasting for as long as 30 years. Most of the channels vjould never be used if they were reserved, telecasters indicated. They glossed over educators' request for approximately 25% of all uhf channels, gave these arguments to back contention that any vhf channels reserved would be v/asted: (1) Educational institutions have been slow and reluctant to use AM & FM, and in many cases where they had licenses they dropped them. (2) Educational groups will find it difficult to raise money for this ex- 4 - pensive medium, lack programming and talent resources and know-how. (3) Appeal of "straight education" programs is too limited, can't hold any significant audience. As alternative to channel reservation plea, telecasters suggested; (1) Educational groups compete with commercial interests for new-station licenses before FCC. (2) Where all available channels are filled, educational groups buy time on commercial stations — which would be far cheaper than operating their own; and that they apply for expiring licenses of existing commercial stations. Commr. Frieda Hennock, outspoken champion of the educators, bore down hard on the telecasters. Her cross-examination of Mr. Stanton v/as particularly nettling, and he felt called upon to remind her he was attending hearing at his own request. TEA president Jack Poppele is sole witness still to testify when hearings resume Jan. 30. Cross-examination of Mr. Stanton will be completed Jan. 31 when this phase of allocation hearing is scheduled to wind up. A tentative allocation plan drawn up by Dr. Francis J. Brown of the Ameri- can Council of Education provides for 56 educational stations in 50 locations in northeastern United States, without regard to vhf or uhf. It visualizes 3 educa- tional channels in New York plus one in Newark, 2 in Boston, 3 in Philadelphia, etc. In event there is only one vhf channel allotted to a city, the educators proposed that the facilities be shared by commercial and educational licensees on "double license" basis. In so-called "closed" cities (such as New York and Los Angeles), where all channels are now occupied. Dr. Brown suggested; (1) Revision of present allocation plan to assign more vhf stations to the closed city. (2) Educators share station facilities or time with all commercial stations in the area. (3) "Changing the status of one of the existing stations through transfer of license or removal." National Assn, of Educational Broadcasters served notice it will conduct extensive campaign for TV allocations with formation of "Public Interest Committee" headed by public relations counsel Edward L. Bernays and consisting of such top- drawer names as Harold L. Stassen, author Fannie Hurst, Dean Millicent McIntosh of Barnard College, Actors' Equity president Clarence Derwent, commentator Quincy Howe. Outside FCC and CBS, very few folk in the industry take continued talk about color TV very seriously — for every day makes it more apparent both RCA-CBS con- troversy and FCC decision have been rendered academic “for the duration.” Nevertheless, the px-otagonists con- tinue to make news: (1) RCA and intervenors this week appealed Chicago court’s 2-1 decision of Dec. 22 upholding FCC’s authority to approve CBS system (Vol. 6:51) — filing necessai’y papers, immediately approved by court, which now take case to U. S. Supreme Coui-t. Next step is “statement as to jui-isdiction” to be printed by coui-t for its members, docketing of case, oral arguments. It looks very much like case will be decided this term — i. e., before June — because court’s calendar is rather light. Arguments may come in Mai’ch or Apxil. Appellants actually had until Feb. 20 to appeal, so moved faster than expected. They contend that adoption of incompatible color TV system and refusal to adopt com- patible system were contrary to public intei'est and “an uni'easonable suppression of competition and beyond the Commission’s jurisdiction.” (2) CBS filed suit against DuMont in New York Fed- eral Court Jan. 23, charging patent infi’ingement in manu- facture and sale of industrial color TV apparatus, asking injunction and accounting, alleging DuMont hii’ed G. R. Tingley away fiom CBS labs in 1949 and he “leaked” color seci’ets. Complaint states CBS offered but DuMont refused non-exclusive license (such as it has with Reming- ton Rand), and alleges DuMont sales of industrial color apparatus diminishes value of Remington Rand license. DuMont leplied its research and development is along well known engineering principles, stated with i-espect to complaint about Tingley: “Nonsense . . . How could it be confidential if it’s patented . . .” DuMont statement adds damages would be inconsequential since there isn’t much activity in color TV anyhow. DuMont color system uses 18 me, CBS 6 me (Vol. 6:9-10). Suit indicates probable reasons for mysterious recent meeting of Dr. DuMont and CBS president Stanton (Vol. 7:3). (3) CBS inventor Dr. Peter Goldmark spoke Jan. 26 before American Institute of Electrical Engineers, next day talked to Cleveland Technical Societies Council. He told AIEE that CBS system permits manufacture of either moderate cost or expensive i-eceivei’s, allows for “wider or narrower color gamut, higher or lower light efficiency.” CBS engineer John Christensen Jan. 25 addressed engi- neei-ing alumni of New York City College following color demonsti-ation. Next meeting of New Yoi’k IRE Feb. 3 will featui-e CBS’s A. A. Goldbei'g on field sequential color, Hazeltine’s B. D. Loughlixi on dot sequential systems. (4) Lack of intei’est in color issue was manifest when I’elatively few fi’om heavily-attended Chicago NAB-TV meeting last week (Vol. 7:3) accepted invitation to attend CBS Wrigley Bldg, demonstration. Apparatus from , Chicago and New York demonstiations, now concluded, definitely will be demonstxated in other cities later, accoid- ing to CBS v.p. Adi’ian Murphy. 5 Station Accounts: Unusual local sponsorships reported this week by stations: High C, U.S.A., 3 barbershop quar- tets with barber and tobacco shops and appliance store background, Tue. 7:30-8 on KFI-TV, Los Angeles, spon- sored by Croslcy Appliances and the 3 largest Crosley dealers in area; This Is Your Zoo, Baltimore zoo director with “Babette the Baboon” visiting children’s hospital wards. Sun. 6-6:30 on WAAM, sponsored by Haaswald Bakery; Occupation: Housewife, playlets on homemaking, Mon.-Wed.-Fri. 1-1:10 on KTTV, Los Angeles, sponsored by Waring Products Corp. (Waring blenders) . . . New account on WABD, New York, is Lydia O’Leary Inc. (cos- metics), sponsoring Bess Myerson Shoio, Sun. 11-11:15 p.m., thru Huber Hoge & Sons, N. Y.; new spots on WABD include A. S. Harrison Co. (Preen floor wax), thru J. M. Mathes Inc., N. Y., and Atlantic City Hotel Group Adver- tising, thru Borland Adv., Atlantic City . . . Benson & Hedges (Parliament Cigarettes) buys Televiews of the A-ews nightly 7-7:15 on WPIX, New York, thru Kudner Agency . . . RKO Theatres and NBC stations WNBT & WNBC have signed for TV-radio campaign sloganed “Let’s Go Out to the Movies” . . . American Gas Assn, has appro- priated $1,700,000 for 1951 pi’oniotion, advertising and re- search, stressing advantages of home appliances, advertis- ing thiTi McCann-Erickson . . . Kaiser-Frazer Corp. has budget of $1,500,000 for first quarter’s advertising, with TV & radio included in plans . . . Continental Oil Co. (Conoco) starting extensive winter campaign, including TV, thru Geyer, Newell & Ganger . . . Among other adver- tisers ciuTently reported using or planning to use TV: Fedders-Quignan Corp. (heating, refrigeration, automotive equipment), thru BBDO, Buffalo; Harrison Products Inc. (No Doz Awakeners), thru Sidney Garfield Associates, San Francisco; Mail Pouch Tobacco Co., thni Charles W. Hoyt Co., N. Y.; Doughnut Corp. of America, thru C. L. Miller, N. Y.; Grid’L Rich Inc., div. of Home Foods Inc. (Grid’L Redi pancake mix), thim J. D. Tarcher & Co., N. Y.; LeBlanc Corp., Lafayette, La. (Hadacol dietary supple- ment), direct; DeJur-Amsco (movie cameras, photographic accessories), thru Grey Adv., N. Y.; Five Star Mfg. Co. (Freeman Headbolt engine heater), thru Lavin Adv. Agency, Fargo, N. D.; Steuer Laboratories Inc. (Ammo- vess ammoniated dentifrice & mouthwash), thru Sussman & Adler Adv., Pittsburgh. Telecasters remained mum, but agencymen are voluble on subject of TV time and talent charges raised by Kudner Agency’s James H. S. Ellis in recent Detroit speech (Vol. 7:2-3). Queried by Advertising Age, most were quoted in Jan. 22 issue as laying blame on unwillingness or inability of agencies to do the talent job themselves. It was also revealed that complaint was first made publicly by Harry Trenner, TV v.p. of Wm. Weintraub Agency before Jan. 12 meeting of Philadelphia TV Assn. Trenner said high rates and talent costs would drive all but very lai’gest adver- tisers from TV, open way for govt, control to combat monopoly. Jan. 22 Broadcasting Magazine editorially warned that advertisers might go to other media “unless some equilibrium is restored.” Advertising Age editoi’ial concluded with these words: “. . . it is even more impor- tant for advertisers and their agencies to develop some- what stiffen backbones which enable them to resist such practices [higher costs] not only in public addresses but in the privacy of contract-signing sessions where their in- fluence is far more effectively felt.” Advertising from Federal tax standpoint, with particu- lar reference to current Treasury Dept, policy, is subject I of 18-p. booklet by Assn, of National Advertisers, issued II Jan. 24. Booklet discusses types of advertising approved ^ for excess profits tax purposes, also refers to labor-man- ji agement advertising. Copies may be had from ANA, 285 I Madison Ave., New York. Network Accounts: Procter & Gamble will sponsor Tue. 7-7:30 edition of Kukla, Fran & Ollie on NBC-TV, Time Inc. (Life magazine) Thu. 7-7:30 version after Seal- test drops these periods in about month; Mon. & Fri. pe- riods continue under RCA Victor sponsorship. Wed. undo- Ford Dealers . . . Kaufmann Bros. & Bondy Inc. (Kay- woodie pipes) reported considering sponsorship of second half of Frank Sinatra Show on CBS-TV, Sat. 9-10; Bulova Watch Co. sponsors 9-9:30 portion . . . Assn, of American Banks reported under contract with Time Inc. for The March of Time Through the Years, possibly to be placed as cooperative on ABC-TV, with member banks sponsor- ing films locally. Personal Notes: ABC elects 4 new vice presidents: Alexander Stronach Jr., TV programs; Otto Brandt, TV station relations; Leonard Reeg, radio programs; James H. Connolly, radio station relations . . . Walter Bonwit, ex- merchandising v.p. of Bonwit-Teller, son of that store’s founder, joins WJZ-TV, New York, to promote dept, store use of TV . . . Mort Weinbach, attorney foi’merly with CBS & MCA, joins ABC as business mgr. of program dept. . . . Robert W. Sarnoff, ex-mgr. of program sales, ap- pointed director of NBC-TV unit productions, repoi-ting to v.p. Frederic Wm. Wile Jr. . . . A1 Constant named pro- gram mgr. of KRON-TV, San Francisco, succeeding P. H. Crafton, resigned to join Richard Meltzer ad agency; E. W. Malone promoted to promotion mgr. . . . Ralph E. Mc- Kinnie, ex-CBS-TV & DuMont, named New York sales mgr., Paul H. Raymer Co. . . . J. S. Stolzoff, ex-TV-radio v.p. of Cramer-Krasselt, Milwaukee agency, resigns to join Chicago office of Foote, Cone & Belding . . . Gene From- herz succeeds late John H. North as media director of Aubrey, Moore & Wallace, supervising TV-radio pro- grams . . . Edgar Kobak, ex-MBS president, owner with his son of WTWA, Thomson, Ga., has purchased half- interest in The McDuffie Progress, local weekly . . . NBC- TV promotes Robert E. Button, Lance Ballou, George L. Ogle to Eastern network TV sales dept. Tom Revere, 48, veteran radio adman, since 1947 TV- radio mgr. of Biow, died Jan. 24 in New York. He is sur- vived by his wife, Mrs. Althea Lepper Revere, professor of microscopy at Stevens Tech, a son and daughter. He was a 1925 engineering graduate of Ohio State. First analysis of Phonevision audience indicates sec- ond v/eek’s 21 screenings pulled 569 “paid admissions” — or 27 % of total possible in 300-family Chicago experiment. Submitted by Zenith to Hollywood producer’s whose pic- tures are being used, report shows low of 44 families called for service Jan. 12, high of 122 Jan. 14. Average was 81 families per day. Other interesting deductions from re- port, in Jan. 24 Variety: (1) Only 44 people asked for 4 p.m. showings — causing Zenith to change matinee to 2 p.m. on grounds later showings ran into dinner prepara- tions. (2) Saturday night audience totaled 85 for both 7 & 9 p.m. screenings. Sunday night showings for both times totaled 95. This is considered significant since those nights are supposed to be theatre’s best. (3) Most popu- lar picture was Paramount’s I Walk Alone, ordered by 100; next was Voice of the Turtle, ordered by 93. .States apparently are going to regulate theatre-TV, since closed-circuit telecasts fall into their domain rather than Federal jurisdiction. That’s implication of ruling this week by New York State Attorney General Nathan L. Goldstein that theatre-TV programs can be regulated by State, just as it regulates movies shown in theatres. Ruling was at request of New York Education Board. He agreed TV broadcasts for home viewing fell within purview of Federal Govt. only. i Nobilizalion Report January 27, 1951 AERO PLANTS DEEP IN ELECTRONICS: Scan their help-wanted ads in current technical journals, seeking electronics personnel, and you get hint of how deeply aircraft industry is becoming involved in electronics development and production. While most TV-radio producers concentrated on civilian goods since last war, airplane and aero instrument manufacturers have delved so deeply into electronics that they're already major elements in procurement programs. Guided missiles are main items, and brain of the "bird" is electronic — ground-to-ground, air-to-air, air-to-ground. Electronic devices guide, track, detonate. Idea that TV-radio industry has monopoly of know-how and capacity to produce is being dispelled as electronics contracts go to new names — and plane-making companies like Bell, Boeing, Consolidated Vultee, Douglas, Grumman, Hughes, Lock- heed, Martin, North American, Northrop get into the swim. Also, instrument makers like Bendix, Delco, Sperry, Thompson. One is known to have spent S50,000, 000 on electronics facilities alone. ♦ ♦ ♦ ♦ What does this mean to TV-radio industry? It means they'll get fewer military contracts than some of them think, albeit an estimated $8.5 billion will be spent on military electronics during fiscal 1951 & 1952 (Vol. 7:3). It means the TV-radio manufacturer without research and development engi- neers will stand way down end of line for war contracts. Air-electronics program is still primarily research and development. It means large chunks of electronic procurement must be deleted from TV- radio industry's anticipated non-civilian "budget". It means there will be new names in the electronics industry, and some old ones may be obscured, becoming at best mere subcontractors. ♦ ♦ ♦ * Aviation industry's rush for electronics engineers was cogently pointed up in article in Jan. 24 New York Times, one of series on aircraft industry. It dis- cusses radar as a new aviation field, states "the electronic engineer or technician is one of the most sought after workers in the U.S." It quotes spokesman for Glenn Martin Co. as saying: I "Thank God for the TV industry. It's trained many men who will wind up in aircraft plants if and when the production of civilian TV sets is curtailed." If TV isn't seriously cut back, or if TV-radio manufacturers find govt, contracts to "take up the slack," this spokesman sees thousands of presently self-employed servicemen "feeding into aircraft plants." ♦ ♦ * * Why electronics plays such big part in guided missile program was noted recently in Wall Street Journal: "'Birds' are operated by remote control or radar or by mechanisms within the body of the missile. .. seek out their target in various ways — 'beam riders' which follow track of radio or radar waves ; by ground operators, who track missile on radar screen and direct it to target ; through 'homing' devices which guide missiles automatically to target when they are within a few miles of it. Long range missiles, in addition, need navigational devices..." Even leaving out of consideration guided missiles program, aircraft industry would be important in electronics. "Piloted planes are already becoming masses of - 6 - 7 electronic equipment for finding and tracking targets and shooting guns at them," the Wall Street Journal stated. And New York Times noted: " Jet"pov;ered aircraft are packed with radar and electronic devices. Indeed, on some of today's war planes, the radar and electronic equipment aboard accounts for half the cost of the entire plane." Mobilization Notes: President Truman named CBS chairman William S. Paley Jan. 22 as head of Materials Policy Commission to study long-range supply problems in strategic materials (mainly minerals). Five-man board was asked to report in 6-9 months on outlook for require- ments and supplies, “consistency and adequacy” of pres- ent govt, policies and of private industry practices. In a letter to Mr. Paley, President Truman wrote: “By wise planning and determined action we can meet our essential needs for military security, civilian welfare and the continued economic growth of the United States.” The Commission will be responsible only to the President and i-eportedly was chosen from persons out of Govt, so as to be divorced from pressures of immediate defense needs. Other members: George Rufus Brown, Houston business man; Eric Hodgins, New Milford, Conn., author and edi- tor; Arthur H. Bunker, New York, partner, Lehman Bros., bankers; Edward S. Mason, Harvard economics professor. Use of tin came under strict govt, control Jan. 27 with issuance of 5 distribution orders by NPA. Among restric- tions applying to electronics industry: Effective March 1, capacitor foil of dimensions .00035 in. or less may not have more than 50 tin content; foil for all other capacitors is limited to maximum of 15'/c tin. Solder for use on electric precision instruments is permitted unlimited tin content; solder for toher hand-soldering operations is limited to maximum tin content of 40%; other soldering operations may not employ more than 35% tin (Order M-8 as amend- ed). Govt, certification is required for all non-defense use of tinplate and terneplate (M-24). Earlier tin order (M-8), limiting civilian use to 80% of normal consumption, re- mains in effect. Deliveries of molybdenum for all non-defense uses except manufacture of steel were banned temporarily by NPA Jan. 27. Small quantities of the critical metal are used in some electronic tubes. Defense priority and civilian orders for the material by high-speed steel producers were slashed by 50 G- NPA Order M-33, issued simultaneously, limits molybdenum inventories to 20-day supply. NPA offi- cials said the actions were “necessary to provide some molybdenum for highly essential production not covered by defense rated orders.” Tungsten, formerly impoited from China and Korea, was placed under complete allocation Jan. 22 by NPA (Order M-30). As in case of cobalt (Vol. 6:52), all tungsten purchases will have to be cleared by Govt, after March 1 and its use in manufacture of pigments vnll be banned. Amount used in electron tube filaments is very small compared with quantities used in high-speed steel (including jet engines), and tube makers feel nickel and copper will continue to be far bigger shortage worry. Gen. Wm. H. Harrison’s first action as Defense Pro- duction Administrator (DPA Delegation No. 1) Jan. 24: (1) He authorized DPA, rather than National Security Re- sources Board, to issue tax amortization certificates per- mitting accelerated “write-off” of cost of new plant facil- ities, (2) he empowered DPA to issue certificates author- izing RFC loans for plant expansion, with agencies which previously issued the certificates (Interior, Gommeice depts., etc.) continuing to make recommendations concern- ing loans. Production of plastic TV cabinets and parts may be hit hard by chemical shortages, president Eli F. Jensen of Molded Plastics Co., Cambiddge, 0., indicated to Senate Small Business Committee Jan. 23. He said an NPA- arranged voluntary 45% cutback in amount of polystyrene available for plastics industry resulted in possibility of heavy cutbacks and layoffs in Crosley and Admiral refrig- erator plants. Dr. Lowell B. Kilgore, of NPA’s Chemical Division, said he expected situation to improve toward end of this year. Next day, NPA cut back by 40% civilian use of another chemical used by plastics industry, ethyl cellulose (Order M-32). Radar-Radio Industries of Chicago Inc., 77 W. Wash- ington St., consulting organization for TV-radio manufac- turers active in World War II, has been reactivated to act as clearing house for such industry and area problems as materials allocations and priorities, manpower, selective service, pooling of hard-to-get instruments or supplies, etc. Officers are Leslie F. Muter, president; Paul Galvin, Ray W. Durst, Richard F. Dooley, vice presidents; Robert Alex- ander, treas.; Leonard Shapiro, attorney, secy. Harry K. Clark, Carborundum Co. president, was ap- pointed vice chairman of Munitions Board. He will be in charge of production management, including all defense military production programs (which includes electronics), chairman J. D. Small announced. During World War II, Clark was an official of Office of Production Management and War Production Board. Dr. A. V. Astin, Bureau of Standards Electronics & Ordnance Div. chief, was appointed associate director of NBS. He will be responsible for activities of Divisions of Electronics, Ordnance Development, Missile Development, and the Office of Basic Instrumentation. Price and wage control field offices of Economic Sta- bilization Agency are being opened in 13 cities next week, with only skeleton staffs at outset. Regional offices will be in Boston, New York, Philadelphia, Richmond, Atlanta, Cleveland, Chicago, Minneapolis, Kansas City, Dallas, Den- ver, San Francisco, Seattle. Electronics, including TV, may alter 500-year-old pat- tern of book writing, makeup and reading, publishers fear. Ten top social scientists, summoned to New York confer- ence last weekend, were asked by publishers to frame questions for future intensive research on this and other problems involving U. S. reading habits. Publishers con- ceded that book reading suffers when family first gets TV set — but they want to know whether families return to books when novelty wears off. Also under study will be possibility that magic of electronics W'ill change future nature of books — in format, in presentation of subject matter and “in other ways now undreamed of.” Irate state legislators are stepping into dispute cli- maxed by National Collegiate Athletic Assn.’s one-year ban on college football telecasts (Vol. 7:2). California’s state assembly voted 39-6 to ask Pacific Coast Conference schools to reconsider their new rule against televised sports (Vol. 7:1). Pending in Minnesota and Washington legislatures are measures to require state universities to televise football games. Meanwhile, Indianapolis Motor Speedway turned thumbs down on TV for this year’s 500- milc Memorial Day classic. Trade Report January 27, 1951 STOP-GAP ORDER FREEZES WAGES-PRICES: It's much too early, as we go to press, to gauge impaot on TV-radio industry of Friday night's govt, order of a general freeze on prices and wages — but these points should be noted pending specific and de- tailed controls definitely on the way: (1) There are no rollbacks, since seller can charge up to highest price for any article that was in effect between Dec. 19 and Jan. 25. Since TV-radio 's recent cycles of price increases occurred prior to Jan. 25, order simply puts brake on any further hikes unless specifically authorized later. (2) Wages and salaries are frozen at those prevailing last Thursday, though specific details as to wage controls remain to come from Wage Stabilization Board. (3) Telecasting, broadcasting and publishing rates are exempt from price freeze, along with certain farm products, professional services (such as legal and engineering), rents, real estate prices, insurance rates, public utility and common carrier rates. (4) General order is stop-gap, admittedly, designed to halt spiraling cost of living, and it will be followed by specific formulas applicable to individual in- dustries. It also may be followed by other controls such as further Federal Reserve restrictions on installment buying (possibly 40% down, 12 months to pay). Full text of new order had not been released at press time, but fact that Uncle Sam means business is manifest from penalty provisions of prison up to one year, fines up to $10,000 for violations. OUTPUT RATE POINTING DOWNWARD: First full production week of 1951, 5 days ending Jan. 12, resulted in output of 167.859 TV receivers (13,839 of them for private brands) by industry as whole — plus 338,520 radios. It's too early to say this betokens downward trend. Figures compare with first January week's 105,699 TVs, 209,792 radios, way down due to New Years Day hiatus (Vol. 7:3). Yet the figures could mean the production heyday of latter 1950 is over, output now gradually diminishing to possible 25% curtailment first quarter, more later. Certainly, few expect approximate 200, 000-per-week average maintained through last quarter 1950 can be achieved this year. RTMA estimates are quite eloquent, nevertheless, in that they show excep- tionally high rate of radio output continuing. The 338,520 radios coxinted for week ended Jan. 12 riin fairly close to top weeks of record fourth quarter 1950. It's possible, though, that this particular week saw substantial amounts of materials deflected from TV to radio receivers. Week's radios, incidentally, included 220,481 home, 94,452 auto, 23,590 portable sets. If 150, 000-per-week TV rate is maintained first quarter — as some think it can be — that means close to 2,000,000 sets. That many more for all rest of year would bring 1951 total to fully half 1950' s approximate 7,500,000 (Vol. 7:2) — and 4,000,000 sets this year would satisfy the most hopeful, could readily be marketed. Most TV-radio manufacturers have notified RTMA they are either already conforming or plan to conform to Fee’s proposals I’estricting oscillator radiation (Vol. 6:34- 37). Answers were in response to Dec. 14 letter by RTMA president Robert C. Sprague who wrote manufacturers: “My conversations with members of the Fee and the staff have convinced me that unless the industry as a whole conforms to the new standards and further improves upon these standards as rapidly as the art permits, a solution to the problem may be sought through govt. I’egulatory action, perhaps even by subjecting our entire industi’y to some fonn of certification for the products of receiver manufacturers.” These words were quoted by FCC Comr. Sterling to IRE and Industrial Electronics Organization meeting in Cleveland Jan. 24, in speech devoted almost wholely to industrial-scientific-medical frequencies. Russians have been telecasting color for nearly 3 years in Moscow, Los Angeles Mirror reported Jan. 26 in copyrighted story. But here’s the payoff: Muscovites are still waiting for black-and-white sets! Brig. Gen. Alfred M. Shearer, in charge of Army Signal Corps supply and formerly chief of procurement & distri- ' bution, retires Jan. 31. 8 - 9 Topics & Trends of TV Trade: National credit of- fice Inc., 2 Park Ave., New York, finds liquid position of TV, radio and electronics industry “excellent,” rate of in- ventory “good,” relationship of earnings to sales and net worth “quite satisfactory”, in survey released this week. Steadily increased production facilities, despite materials shortages, are justified by defense orders which it says will offset to large extent decline in civilian production. “The large increase in fixed investment, which occurred during 1949,” NCO report states, “was financed without any increase in long-term bon'owings. In fact, deferred debt during 1949 actually declined by $1,600,000. Equity capital was readily available though not used to any great extent. Part of eaimings was used to finance asset ex- pansion. Working capital is thoroughly adequate for the needs of the industry, as indicated by the fact that the indebtedness for borrowed money is very small. The re- lationship of total debt to net worth is sound.” Industry earnings of 4.4iy per dollar of sales in 1949 and 4.26(^ in 1948 will he surpassed for 1950, NCO pre- dicts, on basis of production of 7,250,000 TV and 14,000,- 000 I'adio production — as against 2,700,000 TVs in 1949 and 1,000,000 for all years prior to 1949. [Editor’s Note: NCO output figures ai-e much too low; see tables of TV- Radio Set Production: 1946-50, p. 67, TV Factbook No. 12.1 ^ if ^ Credit restrictions are blamed for holding down De- cember furniture store business, in Harvey E. Runner’s “Buyers and Sellers” column in Jan. 24 New Yo^'k Herald Tribune. Lines particularly affected were TVs, radios, major appliances, upholstered furniture. TV-radio sales were off as much as 36 Cr in furniture stores, MVc in dept, stores. But stores not doing major part of their business on installment basis. Runner states, reported gains in TV- radio up to 267%, in major appliances, up to 323%. Emer.son raised prices $10-$30 on 5 sets in its 20-set line, effective Jan. 22. Here are new prices (increases in parentheses): 676, 17-in. mahogany table, $299.95 ($10); 678, 16-in. mahogany console, $329.95 ($10); 681, 17-in. mahogany console, $379.95 ($10); 669, 19-in. ma- hogany console, doors, $479.95 ($10); 666, 16-in. mahogany console, AM-FM-phono, $499.95 ($30). * K: Plant expansions: Raytheon granted govt, certificate of necessity for erection of new $4,000,000 power tube plant at Waltham, 144,000 sq. ft. structure to be ready by late Oct. or Nov. . . . Hytron planning new $1,000,000 plant at Danvei'S. Mass. . . . Sheldon Electric (div. of Allied Elec- ti-ic Products Inc.) erecting 2-story addition to main build- ing at Irvington, N. J., adding 15,000 sq. ft. by March 1 . . . Utility Electronics Corp. has leased 80,000 sq. ft. at 900 Passaic St., E. Newark, N. J. . . . Sherold Crystal Co., subsidiary of Espey Mfg. Co., moving plant within next 60 days from Lawrence, Kan., to Kansas City, Kan., to secure more floor space and greater pool of skilled labor. Estimated November shipments of 716,000 TV sets to I' dealers in 36 states and D. C. are detailed in county-by- I county table issued this week by RTMA. Parallel table i' gives similar detail on sets shipped during first 11 months 1' of 1950 (total 6,377,000). ] Sylvania Tube Div., to promote TV-radio servicing, has launched $1,000,000 ad campaign through Cecil & I Presbrey, tying in with Sylvania’s Beat fhe Clock on I CBS-TV, with ads in Saturday Evniing Pont, Collier’s, 1; Look, and point-of-sale kit for distributors. I Packard-Bell unveiled “Silver Anniversary” line of 7 1, TV sets in 2(> models last week, with emphasis on 17 & t 20-in. tubes. Sets run from 17-in. mahogany table at f $269.95 to 20-in. mahogany console-combination at $615. Washingloji disfributors and dealers opened National Tele-Vet Week by presenting 26 TV receivers to hospital- ized Korean veterans, mostly in Walter Reed Hospital. Idea started when George Wasserman, of George’s Radio, got request for TV set to help rehabilitate triple amputee, and suggested donations not only in Washington but in other cities . . . W’ashington-Baltimore distributor James Simon, Simon Distributing Co. (Motorola), was host to Motorola president Paul Galvin, J. Edgar Hoover and other celebi-ities at cocktail party Jan. 24 to launch his cam- paign for a song for the capital city, backed by Motorola and Washington Post. Admiral has added to appliance line a dehumidifier selling for $149.95; unit is only 30-in. high and about 1 ft. square, plugs in like electric fan, is designed mainly for use in basements, home laundries, laboratories, etc. H TV station tube costs have been figured by WTMJ-TV, Milwaukee, based on tubes used up in period between Dec. 1, 1947 and Dec. 1, 1950. Total cost of 34 camera tubes (excluding film camera iconoscopes) used during 3-year period was $40,187.40, at cost per hour for each tube of $2.47, Here are cost estimates by types: Old field camera tube Model 2P23, 10 tubes total cost $10,789, cost per hour $1.71; first studio camera tube Model 5655, 8 tubes, $10,400 & $4.15; field and studio camera tube Model 5769, 5 tubes, $6000 & $2.38; improved field and studio camera tube Model 5820, 11 tubes, $12,983.40 & $2.28. In addition, sta- tion has figured that 5 Model 1850A iconoscope film camera tubes cost $2338.20, at 29<: per hour; 8 Model 8D21 transmitter power tubes cost $12,222, at 7iy per hour. BBC’s ban on commercial TV-radio was reaffirmed by Govt.-appointed committee set up in 1949 to study Britain’s broadcasting monopoly. Majority (7 members) of 11-man group held that TV-radio advertising would lower public taste, introduce “ulterior motive,” shun educational needs and curtail opportunities for writers and artists. Commit- tee also recommended: (1) Allocation to theatre TV of wavelengths not needed for home TV ; theatre TV would be outside BBC control and probably com.mercially sponsored. (2) Increase yearly licensee fee (now about $5.50 on TV sets) to make TV self-supporting. (3) Extension of TV service; present TV area is confined to 40-mile radius around London and Birmingham. Trade Personals: Ralph Ha ckbusch, president of Stromberg-Carlson Co. of Canada, president of Canadian RMA, reelected president of Canadian Radio Technical Planning Board, with Gordon W. Olive, CBC chief engi- neer, v.p.; Stuart D. Brownlee, RMA of Canada, secy.- treas. . . . Theodore A. Smith, sales chief of RCA Engineer- ing Products Dept, last 5 years, appointed asst. gen. mgr. of dept, by technical products v.p. L. W. Teegarden, tak- ing over duties of v.p. W. W. W’atts who is now on leave as aide to Maj. Gen. AYm. Henry Harrison, Defense Produc- tion Administrator; A. R. Hopkins becomes gen. sales mgr.. Barton Kreuzer gen. product mgr. . . . N. J. Peterson named sales mgr. responsible for sale of GE Tube Divisions products to Govt.; Joseph Duffield named Eastern regional sales mgr.. New York . . . Dr. E. A. Lederer, ex-RCA, joins Westinghouse to head engineering for company’s new elec- tronic tube div. . . . Gil Hafner, ex-Bell Labs & Bendix, named gen. supt. in charge of production and maintenance, Hoffman Radio . . . .1. B. Swan, Philco, new chairman of RTMA traffic committee, succeeding Richard C. Colton. RCA . . . Morton P. Rome, attorney, elected Emerson v.p. in charge of contract div., handling all govt, contracts . . . (filbert C. Knoblock, adv. mgr., promoted to sales mgr. of Standard Tiansformer Cori). . . . Edwin Weisl named .4.ir King adv.-sales promotion mgr. - 10 Telecasting Notes: Pulse reports all daytime teleview- ing in New York up 34% in December, with TV sets-in- use daytime averaging 12.2 per quarter hour compared with 9.1 in Nov. Biggest jump was in afternoon viewing — 12 ncon-6 p.ni. ratings up 76% in 1950 over 1949, sets-in- use between Nov.-Dee. alone rising from 12 to 16.2 . . . Total telecast time in New York increased 36% during second half of 1950 over first half, 61% over second half 1949, Pulse survey shows. Greatest increases during last 6 months have been in feature films, women’s programs, musical and comedy variety, quiz, audience participation and interview shows . . . It’s obvious that an MBS-TV network is remote as ever, but Mutual’s new talent and package contracts contain clause prohibiting its per- formers from appearing on other networks — a precaution- ary measure to assure first option TV rights “if and when’’ . . . When janitors’ strike closed Minneapolis schools this week, WTCN-TV telecast series of 15-min. schoolroom programs 9-11 a.m. . . . NBC’s WNBT expects to be tele- casting from new 222-ft. Empire State Bldg, antenna about March 1, work now half-way done; WCBS-TV, W.JZ-TV, WABD, WPIX antennas due to be shipped by RCA in early Feb., ready for use from Empire State new tower within 6 weeks, while WATV still awaits FCC ap- proval (Vol. 7:2) .. . Barnard College (Columbia U), col- laborating with NBC, will offer 6-weeks non-credit sum- mer courses in TV-radio June 25-Aug. 3, with NBC dept, heads as instructors . . . Lots of kudos, in New York area press, particularly in his native Jersey, on occasion of Allen B. DuMont’s 50th birthday Jan. 29; he’s also sub- ject of “Profile” sketch in Jan. 27 New Ywker . . . News- paper Guild of New York moving in to organize white col- lar’ workers at CBS-New York . . . Kansas City’s KMBC has purchased 5 kw DuMont transmitter, even though freeze precludes FCC grant and construction as yet . . . Montreal City Council has authorized use of Mt. Royal for TV sta- tion, provided there be no monopoly; CBC has announced it will build station, but private interests want to do so, too . . . Additional Jan. 1 rate raises: WSAZ-TV, Hunting- ton, base hourly rate up from $300 to $450, one-minute from $36 to $60; WHAM-TV, Rochester, $480 to $600 & $80 to $100; WICU, Erie, $350 to $450 . . . WAVE-TV. Louisville, March 1 raises base hourly rate from $300 to $400, 1-min. from $60 to $80. Profitability of TV, or its near profitability, repoi-ted chapter-and-verse in these columns over last 2 years (see Index to 1949 & 1950 Newsletters), is borne out in sym- posium in this week’s Variety, which seized occasion of NAB-TV Chicago meeting last week (Vol. 7:3) to button- hole station operators. These facts were adduced: KSD-TV, St. Louis, in black since 1949, TV billings nearly double sister AM’s . . . WWJ-TV, Detroit, cracked $1,000,000 in 1950 billings, ended year within fraction of 1% of break- ing even, started this year in black . . . WFIL-TV. Phila- delphia, TV business now IVz times AM, in black since Oct. . . . WTAR-TV, Norfolk, expects to hit profit by first anniversary April 1 . . . KRLD-TV, Dallas, only 13 months old, “within a hair” of break-even point, TV rate card still under 50-kw AM card . . . WOC-TV, Davenport, began showing profit in Nov., 13 months after debut, TV gross billings well ahead of AM . . . WATV, Newark, running in black with its 95 hours per week of local shows (no net- work), passed sister AM (WAAT) in mid-1950 . . . WSB- TV, Atlanta, TV still slightly behind 50-kw AM but moved into profit side of ledger in Nov. . . . WHEN. Syracuse, making money, with 30 hours of live programs out of 100 per week . . . KTTV, Hollywood, now showing $25,000 monthly profit, joining KLAC-TV (Dorothy Schiff) and KTLA (Paramount) as area’s money makers; Hollywood Variety adds that KTTV piled up losses of $1,060,000 in 21 months before pulling out of red in October. Ideal case for partial ending of freeze was put to FCC this week when KHON, Honolulu, MBS outlet, petitioned for waiver of freeze as it applies to Hawaii and for lifting of ban on building stations there. Petition emphasizes there’s plenty of mileage separation, no problems of inter- ference, etc., that new stations in Hawaii would have no effect on final allocation plan, however it comes out. Under P’CC’s proposed allocation, 20 vhf channels are assigned Hawaiian Islands. KHON said it was preparing own ap- plication for station, to be filed soon. Last December, KPOA, Honolulu, filed application, but it was returned as incomplete (Vol. 6:51). FCC this week received one new application for TV — from ICnoxville’s KBIR, seeking Chan- nel No. 10. Two other applications from city are pending, filed by WNOX for Channel 6 and Charles Cornell for No. 8. [For details about KBIR application, see TV Addenda 12-C herewith.] Bombing and sabotage wouldn’t silence U. S. broad- casting, Arthur Van Dyck, of RCA Laboratories, told win- ter meeting of American Institute of Electrical Engineers in New York this week. He cited these protective meas- ures already in force: (1) Radio stations are widely dis- persed. (2) There are so many of them that interchange of facilities will keep important broadcasts on the air. (3) Staffs are fully experienced in emergency operation. (4) Emergency transmitters and antennas are available to many stations. Regarding potential use of stations for “homing” of enemy planes (Vol. 6:51), Mr. Van Dyck ex- pressed doubt that any modern aircraft navigator “would need to use broadcast station emissions to locate any city in the United States.” Value of cross-polarization to permit use of single frequency band to transmit 2 services is indicated in re- port to FCC by 20th Century-Fox on tests by experimental TV station KE2XKA. Report cites 13-mi. test on 6860- 6875 me between Coty Bldg., 423 W. 55th St., New York, and Rockcliff Apts., Montclair, N. J., as showing that signal suppression of 30db is obtainable, up to 40db noted. Impor- tance of cross-polarization for theatre-TV use would allow simultaneous feed to theatres using same frequencies. Experiments also indicated, report says, that receiving antenna icing is no drawback to reception if waveguide feed and immediate surrounding area are kept free of ice. Report suggests beam of infra-red energy be directed at end of waveguide for this purpose. Electromagnetic Radiation Control Bill (S. 537) was subject of executive session of Senate Interstate & Foreign Commerce Committee Jan. 25, with Air Force communica- tions director Maj. Gen. Francis L. Ankenbi’andt and FCC chief engineer Curtis B. Plummer as witnesses. Bill pro- poses to revise President’s control over TV-radio stations, other electromagnetic devices, during war or emergencies (Vol. 6:51 & 7:2). Seeking reinstatement of CP for TV, which FCC forced it to forfeit for failure to pursue construction plans dili- gently enough (Vol. 6:41), City of Jacksonville’s WJAX this week asked FCC to consider additional evidence re- garding validation of revenue certificates to finance pro- posed station. Florida Supreme Court has upheld validitj' of the certificates. McFarland Bill (S. 658) was approved again by Senate Interstate & Foreign Commerce Committee this week. It contains provision forbidding FCC commissioners and key staffmen from accepting jobs in private industry dealing with Commission for year after leaving govt, service, also changes FCC procedm-es. Senate passed bill last year, but House never got ai’ound to it (Vol. 6:31-33). Tenant can’t be evicted for installing TV antenna on roof of rented house, a St. Paul justice of the peace ruled last week in what is probably first case of its kind in U. S. PUBLISHED WEEKLY BY RADIO NEWS BUREAU, 1519 CONNECTICUT AVE. N.W., WASHINGTON 6, D.C. TELEPHONE MICHIGAN 2020 • VOL. 7, NO. 5 February 3, 1951 j Strike Forces TV-Radio Stoppages, r>age 1. \ De-Icing the Freeze — How & When, page 1. In This Issite: , ‘One Big Tent’ & New Prexy, page 3. I TV Facing Need for ‘Morals Code’, page 3. Materials — Tighter Second Quarter, page 6. Relacement Parts Priorities Urged, page 8. Materials & Rail Strike Cloud Trade, page 8. Mid-Winter Picture Tube Lineup, page 9. STRIKE FORCES TV RARIO STOPPAGES: Railway tieup took toll of TV-radio production and shipments this week, with at least 3 major producers — Philco, Admiral. GE — and possibly others forced to shut down assembly lines for lack of transportation. At week's end, prospects for ensuing week were tied up with hopes for end of strike. Philco halted all civilian production Wednesday, laying off nearly 12,000 at Philadelphia plants. Next day Admiral laid off 2000 of its 7000 Chicago workers, and GE laid off about 3000 in Syracuse. GE workers returned to work Friday. Philco said Sandusky receiver plant was still operating. Both Philco and Admiral estimated their normal production was down about 75%. RCA in Camden, Motorola in Chicago, Emerson in Nev; York kept going — RCA and Emerson, also DuMont , nferely reporting some absenteeism due to New Jersey bus strike. These and other manufacturers said they got supplies and shipped finished products via trucks, but Philco said it was largely dependent on railroads. There was some belief shutdowns might be due partially to materials short- ages not attributable to strike, though heavy items like refrigerators and shipments of TVs to distant points are largely by rail. While outlook was uncertain, no one took seriously New York Times Feb. 2 report that shutdowns are regarded as the "beginning of near-paralysis of the TV-radio and electrical appliance industries" and that "production and outgoing shipments will virtually cease within a week, according to industry leaders, if the rail stoppage continues." DE-ICING THE FREEZE-MOW AMD WHEN: Another estimate of elusive freeze-end, and what it may mean, is in order — now that FCC has finally wound up "general issues" phase of its long-drawn-out series of freeze hearings. "Educational" phase ended this week, which means that it and the color, mileage separation, uhf , etc. phases are at least on the record. If all goes smoothly — and there's good reason to believe it won't — these would be next steps toward thawing the 28-month-old freeze: (1) New vhf-uhf allocation plan, replacing July 1949 plan at which everyone has been shooting during hearings (see TV Factbook No. 12), will definitely be issued by FCC engineering dept., maybe within a month. That might mean by March 1. ! (2) Comments and counter-comments on new plan, as it affects specific 3 cities, will then be accepted, requiring maybe another month. That might mean April I 1. (FCC has no intention of then going into another general-issues merry-go-round, i intends basic principles of new plan to be final.) (3) Hearings on allocations to specific cities would then begin, possibly in |. April. Make your ovm guess how long that will take. Chairman Coy mentioned 2 i months in his recent Buffalo speech (Vol. 7:3), but we'd guess well into the summer I or fall. (There were more than 300 comments filed on old allocation proposal. Nev/ t plan may nullify need for many of these — but there's no knowing yet.) (4) Final decision to end freeze — maybe during fall. ki Copyright 1951 by Radio News Bxu'eau 2 - (5) After decision, 60 days have been promised applicants for filing new requests, amending old. (For complete list of applicants to date, see TV Factbook No. 12 and Addenda to date). (6) Actual grants of new stations and some construction — at least where channel supply exceeds demand, which m.eans the less attractive markets — might begin trickling through by early 1952. Competitive situations, requiring hearings, will demand additional 6-12 months or more. Certainly, any existing TV market will be competitive. ♦ * * ♦ Foregoing sounds reasonable and logical, but there's many a hitch. Odds- and-ends will inevitably crop up — not least of which may be: (a) Hassle over policy decision on educational channel demands. (b) Reopening of color issue after Supreme Court decision, with RCA and per- haps others demanding hearing on basis of new developments. (c) FCC Bar Assn, oral arguments, already promised, on its objection to whole idea of fixed allocation plan; it wants city-by-city assignments, as in radio. FCC contends fixed allocation isn't hard to change, points to FM as example. FCC could get the lead out of its jeans and beat this lugubrious schedule, in opinion of many observers who claim, perhaps unfairly, that staffers are wasting more time than usual lately — point to recent educational hearing attendance of FCC personnel who have had little or nothing to do with whole hearing in past. Somewhat cynically. Broadcasting Magazine speaks of FCC's "WFA pro j ects . . . to keep its staff busy" for duration, notes particularly its new AT&T investigation (long distance rates) and its "Blue Book crusade" (probe into TV programming, see p. 3). Staffmen defend FCC by saying these moves have been in works a long time. "There's a war on..." but it's a fact that to date FCC has had very little part to play in the mobilization program. ♦ ♦ * * Nature of forthcoming new allocation plan has everyone speculating. Almost certain is uhf allocation built around specific intermediate frequency (IF), presum- ably the RTMA-sponsored 41.25 me. Many are expecting decreased station separation — reductions from proposed 220-mi. vhf, 200-mi. uhf. Fact is, we've yet to hear really convincing answer, from FCC, to testimony of Bernard O'Brien, chief engineer of Rochester's WHEC, that May 1948 proposed allo- cation (utilizing 150 mi. vhf) actually meets Commission's own current objectives better than proposed 220 mi. (Vol. 6:34). This week, he seemed to make even more sense when he added uhf to his calcu- lations, still found his contention valid, ended up with compromise suggesting 150-mi. co-channel separations in crowded East, 220-mi. in wide-open West. * * * How much grants will mean, when they finally come, depends on many factors: (1) Will Govt, permit construction? (2) Will station equipment be available? (3) Will receivers be available for new markets? (4) Will manpower be on hand for construction or station-manning? Our recent roundup of World War II experience and expected station equipment availabilities (Vol. 6:52) still stands up. There may be fair chance for some con- struction, and there are supposed to be several dozen TV transmitters available for quick delivery — with Latin American interests ordering some of these "frozen assets" and reported readying to order still more. Hawaii's chance of getting exemption from freeze, qualifying for CPs right now because of great distance factor, brightened considerably this week as KHON's petition (Vol. 7:4) gained support at commissioner level. Any such grants v/ould undoubtedly spur continental applicants, such as those in wide-open Denver and Portland, to new efforts to crack ice. Who knows, maybe even Colorado's powerful Senator Johnson, the unpredictable, will promote end-of- freeze-in-a-hurry as assiduously as he promoted color-in-a-hurry ! - 3 - NARTB AS 'ONE BIG TENT' WITH NEW PREXY: NAB becomes NARTB next April — National Assn, of Radio & Television Broadcasters. It thus follows lead of Radio Manufactur- ers Assn. , which recently became RTMA. and of Society of Motion Picture Engineers, now SMPTE . Up-and-coming TV industry, built around mere 107 stations, thus demands and gets due recognition from parent broadcasting, manufacturing, show businesses. "One big tent” idea (Vol. 7:3) won complete endorsement at NAB board meet- ings this week in Belleair, Fla. New bylaws and financing plans were adopted, and three boards of directors are set up — one not more than 14 members to govern TV, second not more than 25 to govern radio, combined board not to exceed 42 and includ- ing all the TV and radio directors plus association's top paid executives. It was decided to seek new paid president-general manager, after acceptance of plan elevating president Justin Miller to chairman of board — the 2 jobs combined budgeted for |75,000. Judge Miller will be relieved entirely of administrative duties, will advise on policy, appear at hearings, etc. New president will be selected by committee comprising Allen M. Woodall. WDAK, Columbus, Ga. ; Harry R. Spence, KXRO, Aberdeen, Wash. ; Patt McDonald, WHHM, Memphis; Wm. B. Quart on, WMT, Cedar Rapids; Wm. A. Fay, WHAM & WHAM- TV, Rochester. Respective boards will choose TV and Radio division directors. TV board set up at recent Chicago meeting includes Eugene Thomas, WOR-TV, acting chairman; Robert Swezey, WDSU-TV, vice chairman; W. D. Rogers, KEYL ; Clair McCollough, WGAL-TV & WDEL-TV; Harry Bannister. WWJ-TV ; George B. Storer, WJBK-TV, WSPD-TV & WAGA-TV; Harold Hough, WBAP-TV ; Campbell Arnoux, WTAR-TV ; Paul Raibourn, KTLA (Paramount). Four networks are entitled to one member each. DuMont has already desig- nated Chris Witting, NBC Frank M. Russell. They were at Florida meeting along with Messrs. Thomas, Swezey and Rogers; all indicated satisfaction with new setup. Neither ABC nor CBS is NAB member, having quit last year — but expectation is they will rejoin now, designating their TV members shortly. Membership of at least 60 TV stations is said to be assured at outset. Dues are yet to be determined by board, with S50,000 initial payment pledged toward over- all NARTB budget to cover rent (one whole floor of Washington headquarters) and services of existing depts. Tentative TV Division budget is $150,000, based on preliminary estiiriate of assessments of one-fourth of 1% of gross station income. Television Broadcasters Assn. (TBA) will be dissolved, its manufacturer mem- bers urged to join NARTB as associate members. Joint conventions are set for Hotel Stevens, Chicago, April 15-19. TV FACING NEED FOR A 'MORALS CODE': Better start boning up, Mr. Telecaster, on the radio and motion picture industry codes — and better get your trade groups working on something such for TV. Otherwise . Uncle Sam may really slap you down — and with plenty of popular backing. You can be sure that FCC, in ordering conference on TV programming (Vol. 7:3-4), intends to go further than mere questions of "program balance" a la AM. After its own fashion, it will go into such sure-fire headline-provoking aspects as off-color jokes, plunging necklines, crime dramas during children's viewing hours. They're even talking about arriving at some sort of definition of "taste". I Agenda and date of conference hasn't been fixed yet, but such "normal" subjects as commercial vs. non-commercial time ratios, local vs. network, live vs. transcribed, ( shoppers guide programs, etc. are sure to be embraced. i| FCC renewed 44 TV station licenses this week, in announcing conference to be scheduled soon after Chairman Coy returns from his vacation March 6. All licenses expire Feb. 1, 1952. all running one year. Seven others previously got licenses to ■' that date, v/hile 8 are still on "temporary" list because owners are involved in FCC investigation of anti-trust policy (Vol. 6:5,15,17). All others of the 107 operate i| under STAs (Special Temporary Authority), which usually precede licensing. Program probe shoves into background, really puts in abeyance. Commission's I proposal to limit hours stations in 1,2,5-station markets may take from any one net- I work (Vol. 6:40-48). There's little enthusiasm for that plan now either among sta- A - 4 - tions, networks or commissioners. If current voluntary AT&T-network circuit alloca- tions work out (Vol. 6:50), belief is Commission will let network-time proposal die. Interesting facet of deliberations leading to program conference plan was dissent of Comr. Jones from calling conference or any other FCC involvement in pro- gramming. He thinks Commission should pick right licensees initially and look them over at renewal time, regards program aberrations as symptoms, not causes. Network Accounts: Blatz Brewing Co. win sponsor Amos ’n’ Andy with new Negro stars, half-hour weekly on CBS-TV, thru William H. Weintraub & Co., N. Y. ; time and starting date to be announced . . . Bohn Alu- minum & Brass Corp. (castings, pistons & bearings) buy- ing NBC-TV’s American Forum of the Air, Sun. 1:30-2, thru Zimmer-Keller Inc., Detroit; starting date not de- termined . . . National Distillers Products Corp. (Italian Swiss Colony wine) has started sponsorship of Famous Jury Trials on DuMont, Wed. 9-9:30, thru Honig-Cooper Co., San Francisco . . . Lehn & Fink Products Corp. (Lysol) reported considering sponsorship of 8-8:15 segment of Jack Carter Show on NBC-TV, Sat. 8-9, thru Lennen & Mitchell, N. Y.; Campbell Soup Co. has cancelled 8-8:30 portion . . . Lever Bros. (Surf) will sponsor Hawkins Falls on NBC-TV, Mon.-Wed.-Fri. 5-5:15, thru N. W. Ayer & Son, Philadelphia; starting date not set . . . General Mills (Kix) is readying sponsorship of segment of Ted Mack Family Hour on ABC-TV, Sun. 6-7, thru Tatham-Laird Inc., Chicago; C. A. Swanson & Sons (poultry & margarine products) has contracted for alt. Sun. 6-6:30 portion, same agency . . . Cereal Institute, association of breakfast food processors, will sponsor Mr. Wizard on NBC-TV, time and starting date not set . . . Samson Hosiery will sponsor Faye Emerson & Skitch Henderson as husband-and-wife team on Easter Parade on NBC-TV, one time. Sun., March 25. Station Accounts: Defense plant workers are recruited via Cleveland’s WXEL by means of “commercials,” de- scribing jobs and flashing phone numbers taking applica- tions, on I’egular 15-min. programs sponsored by Cadillac Tank Div., General Motors, Bob Rowley with the News, 3 times weekly; National Screw & Mfg. Co., Sports Desk, once weekly; Cleveland Pneumatic Tool Co., Manpower Headlines, once weekly. Sports Desk, once weekly . . . Be- sides Philadelphia’s WFIL-TV, which accepts only estab- lished firms or requires certificates of approval from test- ing labs for direct-mail solicitation via its facilities, other stations reported to be imposing new rigid standards are: WPIX, New York; WNHC-TV, New Haven; WJAR-TV, Providence; W'OI-TV, Ames, la. Chicago’s WBKB re- quires $25,000 bond . . . Washington’s big Campbell Music Co., to advertise DuMont TVs, Feb. 9 starts sponsoring on WTTG 13 full Vienna Philharmonic Orchestra con- certs, Fri. 8-8:30, filmed in Vienna and Salzburg by Am- bassador Films — regarded as an interesting test of ac- PETRILLO is out to strangle TV’s use of films, except on his own terms. That’s for sure, and it makes industry negotiators fear for long, cold winter before new AFM-net- wox’k contract is signed. At moment, existing contract has been extended to Feb. 15, with networks agreeing to make terms retroactive to Feb. 1 if reached by that date. Pres- ent contract expired Jan. 31 (Vol. 7:2-3). Here’s what Petrillo is asking: (1) Repeat fees for all kinescope recording showings, plus a 5% royalty fund based on each non-connected station’s network rates. (2) Networks not to produce films for TV without AFM clear- ance. (3) No foreign pictures with music without AFM approval. Petrillo also let it be known that his 1946 contract with Hollywood pi’oducers bans release of their films for ceptability of fine music via TV . . . Wheatena Corp., thru its Philadelphia distributor, using spots on all 3 Phila- delphia stations, plus radio and newspaper ads, thru Brisacher, Wheeler & Staff . . . Unusual sponsor on KING- TV, Seattle, is Alaska Junk Co., using 1-min. slides to sell scrap metals, old machinery, other used and surplus equip- ment . . . Phoenix Hosiery Co. to use TV spots in 26 cities in campaign starting Feb. 28 leading up to Easter and Mother’s Day, thru Hockaday Associates, N. Y. . . . New spot business on WABD, New York, includes Procter & Gamble Co. (Joy soap flakes), thru Blow Co., N. Y.; Stahl- Meyer Inc. (canned meats), thru Dowd, Redfield & John- stone, N. Y. . . . Among other advertisers currently re- ported using or preparing to use TV: Yardley of London (lavender fragrance), thru N. W. Ayer, N. Y.; J. A. Wright & Co. (Wright’s silver cream), thru Lambert & Feasley, N. Y.; Ballard & Ballard Co. (Oven Ready biscuits and food products), thru Henri, Hurst & McDonald, Cfiiicago; Robert Hall Clothes Inc., thru Fi’ank B. Sawden Inc., N. Y.; Dormeyer Corp. (kitchen appliances), thru John W. Shaw Adv., Chicago. Promotion of hat sales, through closed-circuit store demonstration^ — “see-yourself-on-TV” — is being conducted in New York’s Wallachs Inc. chain by Frank H. Lee Co. (Lee hats) and RC.A.. First showing, Feb. 1, was in Empire State Bldg, store, featured personal appearance of actor Robert Montgomery. Demonstrations, 2-3 days each, will also be given in White Plains, Jamaica, Newark stores. “Ad hucksters also rush to find strength in union,” states Wall Street Journal. “.A dozen mergers have come in 6 months. Little agencies with limited manpower can- not compete when servicing accounts using radio, TV, m.agazines and newspapers.” To which it might have added that many agencies find 15% commission, albeit rates are higher, insufficient to maintain TV specialists. New York’s FM-only WABF (Ii'a Hirschmann) reports 17 advertisers sponsoring 55% of its 50 hours a week of “good music” — audience loyalty attested by fact that $6000 was subscribed for sponsorship of New Friends of Music concerts and station’s Program Magazine is now self- supporting with ads at $125 per page. Feb. 1 sets-in-use reported since NBC Research’s “census” of Jan. 1 (Vol. 7:3): Dallas, 59,082, up 2582; Miami, 52,500, up 2500; Greensboro, 49,812, up 7812; Fort Worth, 46,237, up 2137. TV whether made before that year or subsequently. This is recent AFM “intei-pretation.” Just what it means to TV networks and stations, which have been using spate of such features, wasn’t made known. AFM czar also asked pay of 20% above AM rates for TV musicians. For simulcasts, he wants 50% above AM scale, $12 per man for costuming and makeup. Present TV scale is 95% of AM scale for network, 80% for local shows. Present AM scale is $18 for half hour, $23 for hour, $7.50 per hour for rehearsals — but union is asking about 50% hike in AM pay. If and when new contract is signed, Petrillo agreed not to sti'ike networks if Wage Stabilization Board turns him down. Under present price-wage freeze, all contracts after Jan 25 must be approved by WSB. - 5 - PorSOnal Notes: Harry stone, onetime mgr. of WSM & WSM-TV, Nashville, new gen. mgr. of KPHO & KPHO- TV, Phoenix, with Wm. Burton, ex-artist mgr., becoming program director . . . Mike Dann, NBC trade editor, shifted to NBC-TV sales dept, to coordinate program package sales . . . Wm. A. Porter elected president of FCC Bar Assn., succeeding Neville Miller. Other officers: Arthur W. Scharfeld, first v.p.; Fred W. Albertson, 2nd v.p.; Rus- sell R. Eagan, secy.; Quayle B. Smith, treas. . . . John M. Wyatt, TV-radio chief of Grey Adv., and Reggie Schuebel, TV-radio chief of Duane Jones Adv., have resigned to form nev/ program agency opening Feb. 1 as Wyatt & Scheubel, 40 E. 51st St., N. Y. . . . Earl Ebi, ex-J. Walter Thompson, named TV-radio director, Warwick & Legler, Hollywood . . . C. Nelson Baker now heading TV-radio, Ruthrauff & Ryan, Baltimore . . . Mike Jablons, special asst, to FCC Comr. Hennock, has resigned, left for trip to Europe, returns March 1 to resume post of v.p.-gen. mgr. of Gainsborough Associates, N. Y. . . . Henry B. Owen, president of KING & KING-TV, Seattle, named head of Seattle Office of Price Stabilization regional of- fice . . . Donald Fink, Electronics, new chairman of U. S. preparatory committee on TV (CCIR Study Group 11); Neal McNaughten, NAB, chaii'man of both U. S. and in- ternational groups on broadcasting (Group 10) . . . Roland W. Gillett, v.p. in charge of TV-radio for Young & Rubi- cam, has resigned and left for combination vacation and business trip to Hollywood. Defying National Collegiate Athletic Assn.’s one-year ban on live telecasts (Vol. 7:2), U of Pennsylvania has invited TV networks to submit bids for carrying its 1951 home football schedule, Jan. 31 Variety reports. Wall Street Journal Jan. 31 story blames TV for “sabotaging the box office” at sporting events, cites 20-40% dip in cur- rent New York and Boston basketball gates, 57% drop in Chicago Stadium attendance, 25% lag in attendance at Boston Bruins hockey games — in contrast in increase in athletic gates in non-TV areas. Chicago Stadium press agent James Kearns is quoted: “Televising of our own games doesn’t hurt us so much, but on Saturday nights we’re competing with top video comics like Imogene Coca and Sid Caesar, basketball from New York’s Madison Square Garden, and the comforts of the living x'oom.” Illinois State Legislature, fourth to get sports TV legisla- tion (Vol. 7:4), is considering bill to ban theatre TV of games of tax-supported institutions unless games are also telecast for general public use. Danish TV station, serving Copenhagen-Malmo area, is reported in February Electronics to be due on air any time now. Magazine says Danish-made sets have been demonstrated, that “components, with the exception of picture tubes, can be made by some 30 plants and assem- bled by about 20 others, the two groups at present em- ploying 25,000-odd people.” More color speeches: CBS’s Peter Goldmark defended his system, attacked manufacturers for not promoting it, in talk Jan. 30 to Cleveland (0.) Technical Societies Coun- cil. Hazeltine’s A. V. Loughren and C. J. Hirsch will spread their gospel of mixed highs at Feb. 7 meeting of New York IRE in Engineering Societies Bldg., 33 W. 39th. “Movies for TV” is subject and title of book by Tele- Tech Magazine associate editor John H. Battison, who I also conducts course on subject at New York U. Author i covers particularly difference between film for theatres and for TV. Published by Macmillan Co. (376 pp., $4.25). William I. Kaufman, NBC casting director, and Rob- ert S. Colodzin, TV director of Manhattan Adv. Agency, are co-authors of Your Career in Television, published by Merlin Press ($3.50). Newspaper sales in TV areas have climbed second year in row, Editor & Publisher reported recently after second annual survey (for report on 1949 survey, see Vol. 6:49). Circulation gain by 438 daily and 97 Sunday papers during year ending Sept. 30 was: Dailies, 494,151 (morning, 201,301; evening, 379,582; morning-evening, 86,732 loss) ; Sunday papers, 534,897. TV area papers included in tally represented 35,000,000 daily circulation out of national total of 52,000,000, and 20,000,000 copies on Sunday out of total of 46,000,000. Editor & Publisher estimated 8,000,000 TV receivers in area covered by survey. In 1951 yearbook, Editor & Publisher estimates 53,829,072 newspapers sold daily in 1950, increase of 1,000,000 over year preceding. Number of newspapers decreased by 8 to total of 1772, magazine reports. Comparing TV and film resolution, in January Pro- ceedings of the IRE, 20th Century-Fox’s H. J. Schlafly says TV’s 360 lines of useful vertical resolution are equivalent to 12 lines per millimeter in 35mm sound motion picture film — whereas “in actual practice, film resolution having a limiting value of 30 to 40 lines per mm is not difficult to achieve.” But he points out: “Some workers in the field believe that ‘other factors affecting picture quality’ [con- trast ratio, etc.] . . . may eventually be so improved in the TV system that existing standards will permit a TV pic- ture quality closely approximating that of the present-day 35mm motion picture film in spite of wide differences in the limiting value of picture resolution.” TV basketball league of own was formed by KFI-TV with aid of City of Los Angeles after UCLA and USC banded together to ask $80,000 for TV rights to home games of both schools. Teams in new league, to play 20- game schedule primarily for televiewers, have outstanding stars from professional, college and prep school ranks. KFI-TV sales manager Kevin Sweeney said cost of under- writing new basketball league will be peanuts compared to $80,000 asked by the college teams. Union Pacific Railroad, using one spot per game, is first to buy participations. Competition from TV has hit — of all things — the bus companies, according to Morris Edwards, president of Cin- cinnati Street Railway Co., who says passenger traffic on city’s buses last December was 6% below December 1949. “People work 5 days a week, but on weekends they stay home to watch TV, and most of the drop in passenger traffic occurred on weekends,” he said. David Sarnoff Gold Medal has been established by So- ciety of Motion Picture & Television Engineers as annual award for outstanding contribution to TV engineering, counterpart of Society’s Samuel L. Warner Memorial Award in movie and sound engineering. “Impact of TV on motion picture industry,” was given as reason for filing bankruptcy petition by owners of 2 Philadelphia theatres. Counsel told Federal Court Feb. 1 that TV had cut receipts so sharply that operating ex- penses could not be met. New TV camera devices: Crane that lifts camera and cameraman up to 9-ft., 6-in., rotates 360 degrees, weighs only 2300 lbs., has been developed by NBC-TV engineer Sidney Sanner, formerly Waimer Bros, special-effects man . . . Remote-conti-olled camera — turnable, tiltable, focus- able, etc., from point miles away — has been announced by General Precision Labs, which seems to be coming up with a new TV device every few weeks. Camera has obvious use in dangerous industries such as atomic energy. An electronic “prompter,” brainchild of Fred Barton, member of Mister Roberts cast, has been developed at cost of some $50,000 to ease minds of TV actors fearful of forgetting lines. Script is typed in inch-high letters on big spool of paper which unwinds as actors speak. Mobilization Report Febrnary 3, 1951 NATERIALS-TIGHTER SECOND QUARTER: If you think raw materials are short now, you ain't seen nothing yet! That's nub of pronouncements, public and private, by officials and materials specialists of National Production Authority, the agency that distributes what's left of materials after military takes its share. Take cobalt : This week NPA told users of this metal how much they'd get in February, first month of all-out allocation (Order M-10, see Vol. 6:52). Some users (toys, novelties, for example) got none. Civilian durable goods industries (includ- ing TV-radio) got slightly less than 55% of amount they've been using in recent months — and a warning that they won't have it so good again for some time. Magnet and speaker makers were pleasantly surprised by February allocation — many had expected half of that. Gen. Wm. H. Harrison's Defense Production Admin- istration, which cut cobalt pie, had to shave 15% from direct defense orders. 25% from defense-connected orders (machine tools to build military equipment, etc.) to give consumer durables a break this month. But cobalt squeeze will get tighter with each passing month. Production of jet engines, armor-piercing am'munition, atomic energy projects — all of which use cobalt in vast quantities — will roll faster and faster from now on, requiring more and more of available cobalt supply. That's fair warning — and is important reason why industry is working so feverishly on conservation measures, such as small-magnet speakers and electrostat- ically-focused picture tubes (see story, p. 9). Steel, copper, aluminum, too, will be scarcer next quarter, NPA told durable goods industry Jan. 29 (see Mobilization Notes). Order limiting use of steel in appliances and other consumer goods is already in hopper. And copper and aluminum restrictions will certainly be tightened by more than a few notches. * * * * One answer to apparent paradox of high set production, despite materials shortages, is "lead time." Taking cobalt as example, we find that, as of this week, average of 2-5 months elapses between day cobalt arrives at magnet fabricating plant and day TV set containing same cobalt comes off production line. (Another answer to paradox is fact that farsighted set and component makers initiated conservation programs as long ago as June and July. ) One full quarter elapses, in many cases, froirf raw material to finished set. As shortages continue, and grow worse, this lead time will decrease. But as of now, materials shortages resulting from stepped-up military program have scarcely been felt by TV-radio manufacturers, comparatively speaking. Shortages creep up. First they're felt by materials fabricator, then by component maker, finally by end-product manufacturer. Our check on cobalt shows that — under present conditions — average of 6-8 weeks elapse between arrival of cobalt at magnet foundry and its shipment to speaker maker in form of alnico magnet. Alnico stays at speaker plant average 2-3 weeks before speaker in which it's used is sent to set manufacturer. TV-radio makers are putting some speakers in sets within hours after they arrive ; other speakers stay on shelf week or two. A leading speaker maker says his first quarter production will add up to about 60-70% of fourth quarter 1950, thanks to use of smaller permanent magnets and some electromagnets. Several TV manufacturers have asked NPA's Copper Div. for authority to buy extra copper to convert from permanent to electromagnetic speakers. Some speaker makers say they'll make electromagnetic speakers if customer will furnish copper. - 6 - Nobilizaiion Notest Brains of electronics and associated industries continued to lend themselves to important jobs in govt, production, control and procurement agencies. Among those who this week began work, or were reported ready to take over govt, posts : J. A. Milling, RCA Service Co. v.p. in charge of home products servicing, loaned on dollar-a-year basis to NPA’s Electronic Products Div. Louis H. Neimann, Sylvania’s sales engineering man- ager, reported contemplating leave of absence to accept uncompensated job in same division. Eugene E. Smallwood, RCA consumer products div., granted leave to head up Office of Price Stabilization housewares branch. Consumer Durables Div. Branch will have a TV-radio section. John A. Dennis, insurance engineer — component bottle- neck-breaker and trouble-shooter in World War II War Production Board Radio-Radar Div. — started work with NPA Electronic Products Div., where presumably he will have similar job. Nathan D. Golden, Commerce Dept. Motion Pictures Div. chief, has been named director of NPA’s Film & Photographic Products Div. ^ Senate Small Business Committee, in report on mate- rial shortages, warned that “serious shortage of sub- contracting facilities” may result from fact that “NPA and the military procurement officers have not succeeded in developing a policy and mechanism which will help bridge the gulf between civilian production cutback and a fully-accelerated rate of defense buying.” Committee called for “completely-controlled material allocation plan at the earliest possible moment,” also urged: (1) fuller use of “public informational techniques” by all mobiliza- tion agencies; (2) augmentation of NPA staff for more expeditious handling of work; (3) “re-appraisal of mili- tary and stockpile requirements”; (4) attempt to coordi- nate military requirements with NPA restriction orders; (5) military procurement plan to channel contracts to in- dustries hardest hit by material cutbacks; (6) splitting of large contracts into smaller units for maximum spreading to small plants. Members of mobilization committee of Association of Electronic Parts & Equipment Mfrs. participating in Washington meeting (see p. 8): Arie Liberman, Talk-A- Phone Co., acting chairman; Herbert W. Clough, Belden Mfg.; A1 Delighter, Standard Transfonner; S. N. Shure, Shure Bros.; Abe Shanes, Talk-A-Phone; Kenneth C. Prince, legal counsel; S. I. Neiman, publicity counsel. Committee members from sales Managers Club: Sam Baraf, United Transformer; Samuel J. Spector, Insuline Corp.; Jerry Kirshbaum, Precision Appai’atus; John Hauser, Sylvania. Firms whose plants were shut down for more than 15 consecutive days during first half of 1950 will be allowed to omit the month or months during which shutdown oc- curred from base period computation for copper allot- ment, NPA ruled Feb. 2 in Direction 1 to M-12. Similar treatment was accorded aluminum users last November (Dir. 1 to M-7, see Vol. 6:48). Curtiss-Wright Corp. has formed new Electronics Div., headquartering in Caldwell, N. J., headed by Joseph V. Miccio, ex-controller of its Airplane Div. Engineering- chief is Dr. Richard C. Dehmel, who developed Curtiss- Wright’s electronic flight simulators and trainers. Brig. Gen. Eugene Y. Elder succeeded Brig. Gen. Al- fred M. Shearer as Signal Corps procurement & distribu- tion chief on Gen. Sheai-er’s retirement Feb. 1. Gen. Elder was Gen. Shearer’s assistant. Vastly higher U. S. production of minerals that go into electronics equipment is goal of Defense Minerals Ad- ministration, which has power to encourage production of strategic minerals through loans, tax amortization, etc. As outlined in Wall Street Journal, these are some DMA aims: (1) Cobalt — increase U. S. production, now less than 500,000 lbs. a year, to 4,500,000 within 18 months (nearly 7,000,000 lbs. is imported annually from Africa). (2) Copper — DMA expects producers to spend $200,000,000 on expansion in next 2-3 years. (3) Mica — DMA hopes to encourage domestic production (most of it now comes from India) by guaranteeing high “price floor.” (4) Tungsten — goal is to increase current U. S. production of 4,000,000 tons a year, threefold in 2 years. Most of U. S. supply used to come from China. (5) Nickel — U. S. may reopen mine in Cuba, is investigating low-grade Oregon deposits. Most comes now from Canada. Among unclassified military contracts for electronics and related equipment (more than $100,000) announced by Commerce Dept, for week ending Jan. 30: Through Air Materiel Command, Dayton — Gilfillan Bros., $4,529,818, indicator equipment; Super Electric Co., Jersey City, $161,- 379, antenna coils. Through Navy Bureau of Aeronautics, Washingrton — Motorola, $493,806, radar beacons; Tele- phonies Corp., Huntington, L I., $129,210, radar sets (500 units). Through Navy Bureau of Ships, Washington — Waterman Products Co., Philadelphia, $432,524, oscillo- scopes (600); Measurements Corp., Boonton, N. J., $412,- 688, signal generators (750). In addition, GE Feb. 1 an- nounced $1,300,000 Signal Corps contract for microwave communications equipment. All types of components have been classified into 11 major categories by RTMA, and submitted to Munitions Board. Categories, to be used as standards by military services in drawing up electronics requirements: Trans- ducers, Transducer Accessories, Antennas, Circuit Inter- rupters, Resistors, Capacitors, Transformers, Housings, Piezoelectric Frequency Control Devices, Plugs & Con- nectors, Hardware. Similar breakdowns are due soon to cover Electronic End Equipment, Electron Tubes & De- vices, Electronic Test Equipment. Work was done by task force headed by A. D. Plamondon, Indiana Steel Products. Scarce material supply will be tighter in second quar- ter, NPA officials told 27 representatives of durable goods industries Jan. 29. Specifically mentioned were steel, copper, aluminum. Among those attending conference were: Crosley sales v.p. Wm. A. Blees, with Avco’s B. M. Smarr and F. J. Hughes, GE’s L. H. Miller and Westing- house Appliance’s J. H. Ashbaugh. Also at meeting was lUE-CIO president James B. Carey. Another big expansion into electronics field by an air- craft firm (Vol. 7:4): Howard Hughes has leased or op- tioned 50 square miles near Tucson, Ariz., reportedly for guided missiles plant to cost between $6,000,000 and $9,000,000, to employ 1400-1800 workers with annual pay- roll possibly reaching $35,000,000. British use projections far more than we, to get big images, and Wireless World’s “Diallist” suggests why in November issue: “America, with an output that runs into quasi-astronomical figures, can turn out CR tubes a good deal more cheaply than we can. We, on the other hand, seem to have advanced rather further in the technique of making reasonably long-lived, small, super-brilliant pro- jection-type tubes.” He said he knows of no British-made set with tube over 15-in. He also has good word for “spot wobble” technique of removing lines from picture (Vol. 6:32). “One might expect this to lead to a rather poorly- defined image,” he says, “but I cannot honestly say that it had this effect.” / Trade Beporl February 3, 1951 REPORTS 1519 CONNECTICUT AVE. N.W. / WASHINGTON 6, D. C. • TELEPHONE MICHIGAN 2020 REPLACEMENT PARTS PRIORITIES URGED: Growing gaps on replacement parts shelves led to action this week by alarmed components makers. To assure that TVs, radios and other electronic equipment are kept in op- erating condition, MPA will be urged to pin priority ratings on orders for critical materials used in maintenance, repair and operating supplies. Two manufacturers' groups agreed at Washington meeting Jan. 30 to make this request. Mobilization committees of Association of Electronic Parts & Equipment Manufacturers (Chicago) and Sales Managers Club, Eastern Group (New York), framed priority plan to be presented to National Production Authority in form of resolution next week (for list of committee members, see p. 7). Maintenance, repair and operating supplies made from priority materials would be sold to distributors who certify parts will be used for replacement only. Proposals are similar to those made by task group from NPA's Radio, TV & Household Appliance Wholesale Advisory Committee (Vol. 7:2). There's little doubt that NPA will issue an order to help assure supply of repair parts — but may wait until after July when Controlled Materials Plan (CMP) is expected to be put into operation (Vol. 7:3) for action on retail level. World War II CMP gave limited priority to maintenance, repair and operating supplies. MATERIALS & RAIL STRIKE CLOUD TRADE: Outlook for TV-radio trade grew more uncertain this week as rail stoppage forced some major factory shutdowns (see p. 1) and NPA indicated raw materials shortages are bound to grow worse (see p. 6). Everybody expected rail service would resume soon — but, so far as raw materials are concerned, dim ray of hope came in statement attributed to one of highest govt, officials dealing with defense production. Referring to electronics industry's ability to substitute, he said: "Those fellows are the most ingenious workers of magic in the world. I won't be surprised if they can maintain a fairly high civilian production with the substi- tutes they've already told us about. There's no doubt they'll have to substitute certain metals, or there won't be any television or radio sets to speak of." Not only Philco (Vol. 6:47, 7:2-4) but most other concerns, who prefer to keep details to themselves for the present, have substitution programs on tap — though general attitude was expressed by one thus: "We'd rather turn out good sets and less of them if we have to. Whatever else we do, we must maintain quality." * ^ ^ * It's manifestly impossible to reckon, with any degree of certitude, what's in store rest of year — though first quarter was going good until strike came. For example, third week January's output estimate jumped to 188,758 TVs. 342,586 radios, from second week's 167,859 TVs, 338,520 radios (Vol. 7:4) and first week's 105,699 TVs, 209,792 radios (Vol. 7:3) — giving industry flying start on first quarter. There's still hope first quarter will continue good, but second quarter is imponderable. Some manufacturers are optimistic, some pessimistic — attitudes de- pending on what each thinks will be available in way of materials and components and how confident they are of conservation-substitution programs. Oddly, Midwest manufacturers we contacted seemed to think materials would continue in good supply. Eastern manufacturers were less hopeful. For example, Hallicraf ters ' Wm. Halligan felt so confident he predicted possible 5,000,000 TV sets this year if international situation doesn't turn worse. That's double most pessimistic guess, 1,000,000 more than our own recent guesstimate (Vol. 7:4). Eastern set makers feared that even substitution programs would suffer from lack of right materials, worried about major changes in circuitry required. One 8 - 9 - major told us he was preparing to pare another 200 sets per day from his schedule, having already cut 300 per day from 1950 final quarter peak level. Another expressed fear of 50% cut in second quarter. All agreed their fate depends mostly on NPA. Some manufacturers seemed concerned lest sales be even more limiting factor than materials, but continued high purchasing power tends to mitigate this fear. Yet it's no secret many distributors and retailers are heavily stocked, and that consumers haven't exactly been storming their doors in recent weeks. One retailer is quoted in Retailing Daily as saying a lot of this year's sales v/ere "borrowed" from last year. Another is quoted: "Why should a customer rush out to buy if he knows the prices are not going up?" President Truman's tax recommendations mean higher income taxes, which could affect sales — certainly in March! — and there's still talk of stiffer credit regulations. Proposed tax program also embraces higher excise taxes, which would inevitably be passed on to customer, regardless of price controls. As for conservation and substitution, they're saying little about it, don't like references to "austerity models" because it implies degraded quality. But fact is that already going into new sets are such items as: (1) Smaller magnets for loud- speakers. (2) Nickel-plated steel for receiving tube plates. (3) Polished steel instead of bronze trim. On horizon are electrostatic tubes, electromagnetic speakers, metalized cardboard for shielding, selenium voltage doublers in place of transformers. MID WINTER PICTURE TUBE UNEUP: Main trend in picture tubes is now unquestionably, albeit reluctantly, to electrostatic types. As tube-makers put it, they save vital metals (cobalt, copper, etc.), they work — and that's that. But they generally mean a lot of set-design changes, although some makers say they have some exclusive tricks up their sleeves. Among latest promising such tubes "soon" or "in a few weeks" are DuMont . Sylvania and Raytheon — these in addition to previously reported RCA, Lansdale , National Union (Vol. 7:1, 3-4). RCA says customers' who've sampled its electrostatics are happy about them. In size trends, 17 & 20-in. rectangulars are "it," as expected C7ol. 7:1). Smaller sizes and rounds continue to peter out. Corning is sole producer of 20- in. blanks, has customers on allocation. American Structural Products (Kimble) expects to have 20s in April. Surprisingly, some shrinkage of 20-in. demand is reported by one big tube-maker, but he seems to be exception. He attributes falling-off to high price of big sets, credit restrictions. Plans for the bigger tubes (21-in. and up) are conflicting — with GE' s 24-in. and DuMont's 30-in. still mere trickle. RCA still has 21-in. metal-shell tube in works, but doesn't venture when it will emerge — in fact, there was conference on it in Camden at week's end. Metal supplier Spincraft indicates 21-in. shells v/on't be out for couple months. DuMont says "late in year" for 21-in. metal, isn't making 17-in. metal yet. Sylvania's 21-in. plans are up in air. Corning and American Structural report 21-in. "under consideration," but won't make them unless there's more demand. Apparently fearing some steel shortage, several tube-makers seem a bit cool towards metal-shell types. This attitude is completely unwarranted, according to Spincraft 's T. J. Salow Jr. He's emphatic in reiterating (Vol. 6:41) that chrome alloy type of steel is plentiful, as it was even during World War II, and asserts it will continue to be so long after shortages of other metals curtail set production. "Steel makers are crying for this kind of business," he reports. Some foreign business is also reported by Mr. Salow. He has sold 16 & 19-in. cones to Dutch and French manufacturers, says volume isn't great, but has been quite valuable as outlet for rounds during U.S. shift to rectangulars. Glass blowers are ready, they say, to handle all picture tube demands in event metal .does become short. * Tube life of 3000 hours can usually be expected, writes chief engineer Art 10 - Green of Fidelity Tube Corp. in January Radio & Television Journal. His findings point up industry's consistent caution in promising long tube life. In first post- war sets, 1000 hours was thought to be good rule-of-thumb. After couple years, 2000 hours became common figure. Now, says Mr. Green; "Darkening of the screen is so gradual that the user cannot detect the change during 2000 or 3000 or even 5000 hours of operation. The service man is in a position at this time to show his customer, by direct comparison with a new tube, how he, the customer, can add to his viewing pleasure by simply installing a new picture tube." * * ♦ * Picture tube sales up 124%, receiving tubes up 95% in 1950 over 1949 — that's gist of RTMA reports this week. Sales of picture tubes to set makers totaled 7,475,614 units valued at $198,737,428, compared to 3,305,673 valued at $92,402,520 in 1949. Trend to larger screens was indicated by fact 72% were 16-in. and larger, whereas only 16% were 14- in. and larger in 1949. December sales were 686,815 — 95% being 16-in. and larger. Receiving tube sales totaled 585,960,599 in 1950 vs. 198,753,295 in 1949. Sold for new sets were 301,483,350, for replacements 69,324,540, export 10,767,831, govt. 1,384,878. December sales were 38,326,641 vs. 23,807,281 in December 1949. Topics & Trends oi TV Trade: There won’t be any- thing specific on TV-radio price controls for some time. That’s only thing- cei'tain this second week of OPS price “freeze” (Vol. 7:4). Sometime next week, first major re- vision of blanket controls is expected. It will set up “mai-- gin-type” controls, according to all repoi-ts. In essence, that means higher costs or wages can be passed on to consumer. There’s some question whether manufacturer-distributor- retailer will be able to realize more dollars and cents from higher costs. Decision will make that clear. OPS will stress continuance by industry of same proportion of low- end and medium-priced items in lines. Only call for exemption of TV-radio from price controls came this week from Emerson president Ben Abrams. He pointed to special treatment accorded TV-radio industry in excess profits tax (Vol. 6:43-51), even in voluntai-y price regulations (Vol. 6:51-52). Exempted from price freeze this week were special military equipment, including communications items. ^ ^ Hoffman Radio reported high bidder (at $401,000) for assets of defunct Aireon Corp., Kansas City, being auc- tioned by RFC. Firm did war contract work, then made radio speakers and coin-operated phonographs. Plant was sold last December, and bid covers “right, title and inter- est of the RFC in the lease, leasehold improvements, office equipment, names, dies, patents, good v/ill, trade names, trucks, merchandise inventory and electronic and engi- neering instruments.” Bids must be reviewed by RFC. Radio excise tax collections for all 1950 totaled $52,- 594,623, compared with $40,638,870 for 1949. December collections on radios, phonos, etc., which included TV fully for first time, were $5,483,963, compared with November’s $5,359,960, October’s $5,892,095, Dec. 1949’s $4,499,451. Philadelphia retailers sold 364,233 TV sets in 1950 with retail value of $104,942,761. This compares with 220,366 sets and $73,274,529 value in 1949. Average price of 1950 set, according to Philadelphia Electrical Assn, report, was $288 compared to $322 in 1949. Handbook for retailers of TVs, radios, FM, records, appliances has been issued under title of Guide to Greater Profits by dealer trade journal Radio & Television Retail- ing (Caldwell-Clements Inc., 480 Lexington Ave., N. Y.). TV set advertising, which may eventually top automo- tive (as radio did several years of its heyday), was major factor in newspaper advertising during 1950, according to Advei-tising Checking Bureau. From records on TV and radio set copy in 49 cities with telecasting facilities, bureau found (1) that TV set lineage exceeded that for radio sets by 9 to 1; (2) that 16.7%, or about one-sixth, of year’s TV set ads and 23% of radio set ads appeared during Xmas season, Nov. 26-Dec. 30; (3) that 3 leading brands accounted for more than one-third total space used — 12%, 11.9%, 11.3%, respectively; (4) that next 14 brands divided 43.1% of total, remainder being miscella- neous makes. Advertising notes: Emerson ad will be printed on back of 125,000,000 Western Union envelopes in year’s contract said to be first of kind . . . Philco spent $28,000,- 000 on adv.-sales promotion in 1950, plans to continue at same rate first quarter 1951 though year’s total will prob- ably be less, will continue indefinitely Philco Playhouse on NBC-TV, Don McNeill Club on ABC-TV, Breakfast Club on ABC — all thru Hutchins Adv., Philadelphia . . . Halli- crafters going in heavily for outdoor display, pushing TV via posters, bulletins, traveling displays, car cards, thru Sorenson & Co., Chicago . . . Tele-tone’s new agency is Dowd, Redfield & Johnstone Inc., New York . . . DuMont placing tape-recorded series of radio commentaries by Quentin Reynolds for local distributor-dealer sponsorship. Admiral is paying $145,000 for TV and radio broad- casting rights to 3 major Chicago Tribune charities sport- ing events this year — $22,500 each for Chicago and inter- national finals of golden gloves boxing, March 9 & 29, and $100,000 for College All Stars-Pro League Champions grid game Aug. 27. Ad mgr. Sejunour Mintz says networks haven’t been arranged yet, but it’s likely TV will be via DuMont, radio via Mutual. ^ December sales of larger TV-radio stores in 45 large cities soared 527o over November, but were 2% below December 1949, Commerce Dept, reports. Sales in same stores were 24% higher in 1950 than in 1949. Sales of TV- radio-appliance dealers were up 32% from November to December and their December sales were 3%. higher than December 1949, with sales for all of 1950 reported 27% greater than 1949. Of the 45 cities surveyed, all but 2 are in TV areas. New national servicemen’s organization was formed in Washington Jan. 28 at meeting of delegates from New York, Pennsylvania, New Jersey, District of Columbia (Vol. 7:3). Name chosen is National Electronic & Service Dealers Assn., with Max Liebowitz, Associated Radio-TV Servicemen of New York, president; Norman Selinger, TV Associates of Washington, v.p.; Roger Haines, Allied TV Technicians of South Jersey, recording secy.; Richard Devaney, Philadelphia Radio Servicemen’s Assn., corre- sponding secy.; Vance Beachley, Midstate Radio Service- men’s Assn., Harrisburg, treas. Next meeting is March 4 in Philadelphia. I Trade Miscellany: American Structural Products Co., like Corning Glass (Vol. 6:43), is preparing cylindrical face for glare reduction, but isn’t yet satisfied technique is proven . . . DuMont has cut cost to manufacturers of 17-in. CR tube from $28.50 to $26; some smaller makers are reported down to $23.50 . . . Philco, for its Accessories Div., has leased 4-story building (30,000 sq. ft.) at 1208 N. Delaware Ave., Philadelphia. Almost half the 27,680 TVs sold in Canada up to end of October are in Windsor (Detroit) area, reports Cana- dian RMA. About one-third are in Toronto-Kamilton area. October sales of 4267 sets had value of $1,798,621, includ- ing taxes. AM-FM receivers continue to sell well in Can- ada— Ottawa Bureau of Statistics reporting 516,983 sets sold at cost of $43,471,577 first 9 months of 1950. Ottawa reports have it that Canadian Govt, may call off Parliament-approved loan of $4,500,000 to enable CBC to build telecasting stations in Montreal and Toronto, thus freezing TV prospects in the Dominion for the dura- tion. Reports are based on stepped-up requirements of armed forces for electronics equipment. Official announce- ment is expected soon. Aerovox has borrowed $3,000,000 from Prudential In- surance Co. on 4M9o note running to Jan. 1, 1966, and calling for annual repayments of $200,000 starting Jan. 1, 1952. Of the borrowing, $1,769,999 was applied to retire- ment of outstanding notes held by Prudential. RCA Victor Ltd., Montreal, and Warner Alemite Corp. of Canada, Belleville, Ont., have been authorized by Cana- dian Broadcasting Corp. to operate low-power experimen- tal TV stations — former on Channel 5, latter Channel 10. ! International GE reports its 10-day closed-circuit demonstration of TV in Helsinki dept, store, viewed by more than 10,000, made such hit that Finnish interests hope to have TV in time for 1952 Olympic Games there. Avco (Crosley) has sued Admiral in Chicago Federal district court charging latter’s promotion of “Servador” infringes on Crosley’s “Shelvador” refrigerator trademark. B Trads Pes'ssnais: Earl W. Muntz, ex-executive v.p., ' I elected president of Muntz TV Inc., Thomas E. Courtney : I becoming board chairman . . . Wm. D. Stroben, ex-Thor I Corp., appointed adv. mgr., TV & radio div., Sylvania . . . , John T. Burdick, ex-mgr. of central lighting sales div., = 1 Chicago, named director of all Sylvania Midwest sales, in- ! eluding TV-radio div. . . . Samuel Olchak, Air King adv. mgr., one-time with Tele-tone, promoted to asst, sales mgr. ;1 ... John B. Taggart, ex-RCA Camden, appointed manag- I * ing field engineer for Work-Factory Co., management consultants . . . Ivar G. Blackberg promoted to chief I purchasing agent, Stewart- Warner Electric, TV-radio div., • 1 1 now in process of moving from main Chicago plant to new • ' plant at 1300 No. Kostner Ave. . . . Arthur A. Currie named field sales mgr., Sylvania TV-radio div. . . . Allan Easton, ex-Tele-tone, appointed chief of microwave section. Radio Receptor Co. Financial & Trade Notes: Sparks-Withington, for 6 months ended Dec. 31, or first half of its fiscal year, reports sales of $14,015,516, profit after all charges of $515,991 or 56(? per share after preferred divided requirements. It de- clared dividend of 20^* a share payable Feb. 22 to holders Feb. 7, first since recent proxy f.ght which resulted in changes in board and management (Vol. 6:44). Dividend is double last one paid Oct. 5, 1950. Sales for same 1949 period were $8,599,589, net profit $183,183 (19(*). Muntz TV Inc. reports profits of $533,953 after all charges for 9 months ended Dec. 31, equal to 33^ per share on 1,013,994 shares of common stock outstanding. Sales for period totaled $18,643,507. No comparable figures are available since company was organized as Delaware cor- poration in May 1950. Dividend of 15<* has been declared, payable Feb. 28 to holders of Feb. 15. Company reports it’s producing 12,500 TVs per month, average $3,000,000 gross sales monthly, with enough supplies to continue through April. Bendix Aviation reports 1950 sales of $219,419,794, net profit of $16,954,116 ($8 per common share) vs. $182,674,- 462 sales and $11,086,781 ($5.23) in 1949. Aircraft equip- ment amounted to 49% of total volume, automotive prod- ucts 30%, which means that undisclosed TV-radio volume must fall somewhere within remaining 21%. Backlog of unfilled orders was reported at $336,000,000, compared with $165,000,000 in 1949. Net working capital as of last Sept. 30 was $83,690,011 vs. $73,328,670 year earlier. Kaye-IIalbert has registered with SEC new issue of 120.000 Class A $1 par common to sell for $5, proceeds to be used for expanding production and sales. Company showed net earnings of $99,500 for fiscal year ended Sept. 30, 1950, or about 75^ per share, and v.p. David Kaye states earnings for last 1950 quarter will compare favorably with whole of previous fiscal year. Dividends: Avco, 154 payable March 20 to holders Feb. 23; P. R. Mallory & Co., 30('' payable March 10 to holders of Feb. 21; Standard Coil Products Co., 254 pay- able Feb. 15 to holders of Feb. 5; Westinghouse, 504 pay- able March 5 to holders Feb. 13; Blaw-Knox, 254 payable March 13 to holders Feb. 15. Olympic Radio’s 1950 profit is indicated at around $1,250,000, or about $3.70 per share of 338,263 common shares outstanding, total sales having been about $21,500,- 000. This compares with 1949 net earnings of $578,163 ($1.70) on sales of $9,699,672. General Instrument Corp., for 9 months ended Nov. 30, reports $18,509,489 sales, $769,247 net profit after all taxes ($1.58 per share), as against $9,017,196 sales, $62,652 loss for same 1949 period. Quarter ended Nov. 30 resulted in $282,080 profit (584) vs. $201,779 (414) same period 1949. Packard-Bell first fiscal quarter earnings (Oct. 1 to Dec. 31) were reported to stockholders as $736,381 net after taxes, or $1.25 per share on 588,000 shares outstand- ing, compared with $221,318 for comparable 1949 period. Sales for quarter were $7,355,807, compared to $2,921,380. Trav-Ler reports its 1950 earnings will be about $1.50 per share, not allowing for excess pi’ofits tax, compared with 534 in 1949. Muter Co. reports net income of $931,299 for 10 months ended Oct. 31, 1950, equal to $1.57 per share on 592.000 shares outstanding. New York Stock Exchange reports John B. Huarisa, executive v.p. of Admiral, has reduced his direct holdings to 89,442 shares because of gift of 6000 during December. Sprague Electric Co. sales and earnings for 1950 are estimated at nearly double 1949 totals of $15,300,000, or $2.48 per share, in analysis by Joseph Mayr & Co., N. Y. 12 - Telecasting Notes: TV covers markets with effective buying income of $130,898,000,000, according to NBC mar- ket data presentation issued this week in conjunction with its Jan. 1 census of TV sets (Vol. 7:3). Based on 1950 Sales Management buying guide, study shows TV covers: (a) 26,482,000 families, or 61.8% of U. S. total of 42,844,- 000. (b) 90,548,000 persons, or 60.7% of total population. (c) $84,942,000,000 retail sales, or 66.3% of U. S. total. (d) $20,455,000 food sales, or 67.7% of total, (c) $2,413,- 000. 000 dx’ug sales, or 66.4% . . . “Must” reading for your commercial and program depts.: Special section of Jan. 29 Sponsor Magazine, devoted to daytime TV, covering basic facts and figures, soap operas, daytime spot and network programming, 14 capsuled result stories . . . Lucky Strike reported cancelling all radio spots (about $1,000,000 worth) due to heavy budgeting for TV, now some $6,000,- 000 annually . . . Chicago V/hite Sox and Cubs have both agreed to telecasts of 1951 games, with WGN-TV getting 58 dajd;ime home games of former, WGN-TV & WBKB splitting Cubs schedule; sponsors will be announced soon . . . New York’s WPIX signs for all Giants’ home games, to be sponsored by Chesteiileld . . , Detroit’s WJBK-TV is latest to report educational tieup (Vol. 7:2), on Feb. 4 starts seminar called University of Detroit Round Table . . . Show that started 10:30 p.m. Saturday, signed off 6 a.m. Sunday, Jan. 27, got lots of DX reaction for KPRC- TV, Houston, resulted in $20,155 collected for March of Dimes . . . Purchase of several Hollywood theaters re- ported under consideration for expanding NBC-TV — would permit more kine-recording, too . . . Indianapolis’ WFBM- TV’ moves into new Radio-TV Centre Bldg, about March 10, housing 40x60 ft. and 30x40 ft. studios 2 stories high . . . WHBF-TV, Rock Island, Feb. 15 raises one-min. an- nouncement rate from $35 to $50 . . . Local high school and other Bands in the Making provide good Sun. 2:30 p.m. program by that title on KFI-TV, Los Angeles . . , Blair TV Inc. has opened Jacksonville office, managed by Harry E. Cummings, and has named v.p. Lindsey Spight to head San Francisco operations, now entirely separated from radio. Long-germinating FM “inquiry” by FCC, covering special uses of stations for Muzak-like programs, transit- casting, etc., broke into open this w'eek when Commission sent letters to several stations, asking them to tell why “functional music” opei’ations are legal and/or in public interest — leaving strong implication FCC doesn’t think they are. Stations queried: WLRD, Miami Beach; WFMF, Chicago; KDFC, San Francisco; WACE-FM, Chicopee, Mass. Similar action is expected soon in transitcasting, storecasting. Analysis of uhf receiver performance, by FCC lab chief E. W. Chapin, was last subject in general-issues phase of FCC allocations hearing ended Jan. 31. Study was based on 5 experimental units sent FCC by manufac- turers. His conclusions: “Considerable progress has been made . . . particularly in the direction of adequate sensi- tivity. However, at this time it is most apparent that there is considerable difficulty with oscillator radiations and spurious responses.” Total of 41,902,700 radio families in U. S., or 95% of gi-and total of 44,108,100 families, is estimated by NAB — based on Sales Management figures. This is 1,201,000 more than Jan. 1, 1950. Total TV sets-in-use, as of Jan. 1, 1951, estimated by NBC Research, was 10,549,500 in 63 TV areas embracing 26,482,100 families (for area break- downs, see Vol. 7:3). Sylvania pleaded “nolo contendere” in Fedez’al dis- trict court, Harrisburg, Jan. 30, and was fined $2500 for operating TV station in Emponum, Pa., without FCC per- mission (Vol. 6:42-43). End of educational TV hearing this week found CBS president Frank Stanton insisting, under cross-examina- tion, that educators make their justification for channels on a community-by-community basis. Flatly opposed to blanket nation-wide reservation for schools, Stanton thought FCC might want to hold a channel in a specific city while educational applicant took year or so to ac- quire funds, but that’s as far as he’d go towards reserva- tion. Meanwhile, Sen. John Bricker (R-0.) introduced resolution Feb. 1 (S. J. Res. 28) directing FCC to “make a full and complete study” of subject and to “give considera- tion to the allocation of at least one frequency within each State or suitable geographic region” for educational TV. And Rep. James Dolliver (R-Iowa) introduced H. J. Res. 148 for same purpose. Comr. Hennock plugged away for reserved channels in Feb. 1 speech before Women’s Na- tional Democratic Club in Washington, while educators’ counsel Telford Taylor argued for support of educational stations with tax money and private endowment in Jan. 28 New York Times Magazine article. On other side. Times' Jack Gould took educators to task for “loading” their analysis of commercial programs (Vol. 7:4). Appeal from FCC’s color decision, filed by RCA and interveners last week (Vol. 7:4), will be answered by FCC P’eb. 5 when it files motion asking Supreme Court to af- firm lower court’s decision in its favor (Vol. 6:51). Ap- pellants then have 20 days in which to respond to Com- mission’s latest motion. Since Supreme Court is in recess until Feb. 26, its action (either granting RCA, et al, oral argument or agreeing with FCC) isn’t expected until March 5 at earliest. If oral argument is granted, date for hearing will be determined by condition of Court’s calen- dax-. If Commission wins, lower court’s restraining order (forbidding commercial operation of CBS system until Apxdl 1) is voided innxxediately. Color demonstrations: CBS and Remington-Rand col- laborated in effort to “sell” system to military during showings this week in Washington’s Carlton Hotel. At- lanta, Ga., public saw CBS color in Municipal -Auditorium showings this week, preliminary to surgical demonstra- tions sponsored by Smith, Kline & French for Atlanta Gx'aduate Medical Assembly over weekend. WSB-TV, Rich’s Dept. Store and Board of Education assisted in public showings. Revocation of 3-year-old experimental TV station KG2XBI, Lancaster, Pa., was ox'dered by FCC this week on grounds operation by group of RCA tube plant engi- neers, known as Conestoga Television Assn., didn’t comply with rules. Station, put ixxto operation in 1948, picked up Philadelphia TV progx'ams, rebroadcast them via uhf. Fourth week of Phonevision tests in Chicago saw 505 ox'dex's for 21 scx'eenings from the 300 “test homes,” accord- ing to Zenith analysis repox-ted in Jan. 31 Variety. This compares with 561 orders third week, 569 orders second week (Vol. 7:4). Satux-day & Sundays still remain top “boxolfice” days — with 195 fourth week, 206 third week. New and Better TV Map New Television Map of the United States, re- vised to Jan. 15, 1951, and considex’ably improved, has been published by Television Digest, and one copy was inserted with our Jan. 15 TV Faetbook No. 12. It makes an excellent wall-map, or can be used as a working outline. It’s 22x26 in., in color, shows locations of and lists all operating TV stations with present and projected network routes. Because of demand for extra copies, we have had more pub- lished and they’re available at $1 each. Quantity prices on request. MARTIN COOEL's AUTHORITATIVE NEWS SERVICE OF THE VISUAL BROADCASTING ARTS AND INDUSTRY ^ _ WITH !/ N\n REPORTS ,’UBLISHED WEEKLY BY RADIO NEWS BUREAU, 1519 CONNECTICUT AVE. N.W., WASHINGTON 6, D.C. TELEPHONE MICHIGAN 2020 • VOL. 7, NO. 6 February 10, 1951 / What 25% Excise Tax Will Mean, page 1. . ^ ‘Rough Draft’ of Network Extensions, page 2. In This Issuvz Xelecasters Coming Out of the Red, page 2. ( RCA Shares Conservation Know-How, page 3. Upcoming Metals Curb May Hit TV, page 6. NPA Tells NPA ‘No Ban on Stations’, page 6. Complex Patterns of the TV Trade, page 8. Export Field Limited But Promising, page 9. WHAT 25% EXCISE TAX WILL MEAN TO TV: Immediate spurt in set sales, upsurge in TV audience telescoped into early months of 1951 — then a "feast to famine" letdown. That seems to be industry's prospect, as result of Treasury Dept.'s Feb. 5 proposal to hike manufacturers' excise tax front present 10% up to 25%. not only on TVs and radios but on phonographs, records, refrigerators, other appliances. Inventories are available for heavy buying wave (see Trade Report, p. 8), but nobody is happy about this roller-coaster way of doing business. But, then, a sales slowdown is foreseen anyhow later in the year when war orders are expected to circumscribe all civilian production. Treasury's plan has already started rush to buy, as same news did for sev- eral months before 10% excise went into effect last Nov. 1. Everybody agrees that after tax becomes effective, probably in mid-summer, sales will drop — but hard. Administration's tax program would also impose 20% excise on autos, $12 per gallon on liquor, 100 per pack on cigarettes, 30 per gallon on gasoline; would jump corporation rates from 47% to 55%; would lift current 62% ceiling on combined corpo' ration and excess profits tax up to 70% ; would levy higher personal income taxes. It's not a fait accompli, of course, and some opposition may arise — but President Truman has evinced his determination to raise the needed revenues by every possible means — and the Treasury estimates foregoing categories alone will bring in about $10 billion ($3 billion from the new excises). Building up among business men, and some Congressmen, is sentiment for general sales tax, supported by NAM. Latest in favor is National Assn, of Music Merchants , which resolved at board meeting in Washington this week to recommend "national retail sales tax" instead of higher excises — on grounds sales tax is one public knows about whereas an excise tax is "hidden". NAMM embraces many retailers heavily in TV-radio business. Another proposal, submitted to House Ways & Means Committee Feb. 9, asks for 5% manufacturer's excise on all products except foods — made by Thomas N. Tarleau, Commerce & Industry Assn, of New York. Committee resumes tax hearings Feb. 14, hears more govt, and industry spokesmen. * * * ♦ Impact of such a heavy excise tax would be serious, indeed. Whereas recent 10% factory excise meant about 6% price increase at retail, proposed 25% levy would mean at least 15% at retail. Thus a $300 TV, on which tax of about $18 is now paid, would cost customer $45 or more. Retailers have various ways of hiding this tax, either absorbing it in list or combining it with installation-warranty — but any way they do it, the customer must pay, and this is only one facet of recent wave of price increases. Most affected industries reacted sharply to the news, TV-radio arguing: (1) Tax becomes self-defeating, if object is revenue, since higher costs discourage buying, thus lessen income to Govt. Copyright 1951 by Radio News Btireau - 2 - (2) Tax raise is discriminatory, since no changes are recommended in levy on movie admissions, jewelry, cosmetics, furs, other luxury items. It also falls hardest on people with low incomes, to whom TV means most for home entertainment. (3) Electronics industry must be kept free of sales obstacles, so as to keep its "army of workers" mobilized for defense jobs ahead. Treasury’s main contention is that it's best to hit consumer durable indus- tries because they're big users of "materials that will be in short supply." It counters discrimination plea by noting other taxes are on retail prices, go as high as 17-20%. Since purpose is also to combat inflation. Treasury feels impact on low-income group is all to the good. One govt, fiscal expert said that higher prices for other goods and their reduced output, notably of autos, might free more money for TV purchases. HOUGH DRAFr OF NETWORK EXTENSIONS: AT&T's thinking about TV network expansion be- yond this year is indicated in Winter 1950-51 issue of Bell Telephone Magazine by engineers Richard D. Campbell and Earl Schooley. Contemplated links, all microwave, are merely "under consideration," aren't final, aren't set for any specific date. For this year's expansion schedule, see map with TV Factbook No. 12; it's all definite, except Rochester-Syracuse circuit which has been postponed to 1952. Routes into "virgin" Southwest, other non-connected areas, are most inter- esting facets of contemplated extensions outlined in article; Kansas City-Wichita-Oklahoma City-Ft. Worth-Dallas-Aust in-San Antonio, with spur to Tulsa; Seattle-Portland ; Yakima-Walla Walla-Spokane. Additional links contemplated for interconnected cities, present circuits in parentheses: Richmond-Charlotte (2 southbound coaxial) ; Charlott e-Atlanta (2 south- bound — 1 coaxial, 1 microwave) ; Cleveland-Erie (2 eastbound coaxial) ; Erie-Buffalo (1 eastbound coaxial), Pittsburgh-Columbus (none direct) ; Dayton-Huntington-Charles- ton (Cincinnati-Huntington now has private microwave) ; Chicago-St. Louis (2 coaxial — 1 each direction) ; Los Angeles-San Diego (1 off-air). TELECASTERS CONING OUT OF THE RED: Quote from a successful TV station operator; "Any telecaster who isn't operating in the black by now had better get the hell out of the business." Our own list of profit-makers grows steadily (see Index to 1950 Newsletters, also Vol. 7:4) — and it's no secret that time is at premium now on most stations, while rates continue to go up. Best guess is that only the 4 networks, a few if any of their owned-and- managed stations (NBC 5, ABC 5, DuMont 3, CBS 2}^) , not more than a dozen of the 107 TV stations in the United States are still in the operating red. Many must yet amortize past losses, and some aren't able to write off heavy depreciations yet — but they're on the way. For example. Billboard reports that Crosley's 3 Ohio stations are now definitely in the operating black, after 27 months of losses totaling $1,314,000 on plant investments aggregating $3,500,000. Several stations besides the network keys, or such exceptional operations as DuMont's WDTV in Pittsburgh, have gone well over gross of $1,000,000 during 1950. And this week we learned of one station, less than 2 years old in city of less than 300,000 population, which last year achieved $1,000,000 gross, as against sister AM's $900,000 — net unrevealed, but it's fair to assume it was substantial. 4s * * * Income outlook for TV-AM-FM stations may be good for 1951 — but labor situ- ation is going to be tough. That's view of NAB employer-employe relations director Richard Doherty, expressed Feb. 9 in speech before Georgia broadcasters. Besides military draft, stations will suffer from wage freeze, expected manpower controls — freeze encouraging employes to jump to higher-paying stations and to critical defense jobs, manpower controls nudging them toward "essential" in- dustries. Doherty urged broadcasting-telecasting be continued on government's "es- sential" list, suggested stations fill vacancies "from within" if possible, develop new employe sources, call on FCC for relaxation of rules for engineers if necessary. - 3 - RGA SHARES CONSERVATION KNOW-HOW: Big RCA, which licenses practically entire TV- radio industry through its patent pool, this week sent a significant document to all set and tube manufacturers. Entitled "Conservation of Critical Materials." it summarizes results to date of RCA engineers' intensive crusade to save scarce items and offers the fruit of 8 months research to all other manufacturers. Riddle of January's heavy output of TV-radios (see p. 8) is at least par- tially solved by covering letter from RCA president Frank M. Folsom, which says, in part: "Without these important savings of restricted materials already achieved, our industry could not have attained the relatively high production of TV and radio receivers during the month of January." No reduction in performance and quality of receivers has been forced by con- servation measures, RCA assures. Rather than reduce number of components, RCA chose to redesign the components "to take full advantage of any new non-critical materials not previously used." Receiver itself has been redesigned to use "minimum amount of critical material." ♦ * * ♦ j Giving credit to "many manufacturers of sets and components" for making , "major contributions" to conservation of scarce materials, Folsom's letter urges others to "join us in earnestly pursuing this conservation program, not only for the resulting substantial savings in vital metals, but also to demonstrate to our govt, officials the industry's resourcefulness in this time of emergency. "Only by doing everything possible to help itself can the industry feel morally justified in asking the help of govt, agencies in supplying sufficient crit- ical materials to permit continued production of peacetime products, which in turn , enable us to hold together our technical skills and our trained workers until they are needed to produce electronic equipment for the military services." Letter con- I eludes with offer to answer any manufacturer's questions on conservation steps. Meanvifhile , Philco prepared to demonstrate its "conservation" TV set — which j also saves large amounts of scarce materials — to NPA and other govt, brass in Washington next week (Vol. 7:2-4). * * J{: 4: Electrostatic picture tubes and redesigned speakers are two of the major developments, but by no means the only ones. Together, the two will reduce cobalt content in average TV set by almost 90%, RCA says — a saving of more than 300,000 pounds of alnico per 1,000,000 receivers. Redesigned speaker (Vol. 6:52, 7:2) is already in use by RCA, and electro- ' statically-focused picture tube (Vol. 7:1, 3-5) will be used by RCA beginning in sec- ond quarter of this year in 17-in. rectangular sets. "By the end of the second quarter of 1951 it is planned to be completely changed over to electrostatic focus- ; ing on all sets," the report says. * * Here are some of the savings already worked out by RCA engineers — many of them incorporated in sets presently in production: Speakers : Alnico V speaker magnet (content 24% cobalt, 14% nickel, 8% alumi- num, 3% copper, 51% iron), which formerly averaged 2.5 oz. per speaker, has been 1 cut to average 0.75 oz. , with largest magnet now used weighing 1 oz. This saves 70% j of alnico ; other speaker redesign measures save 35% steel. 90% brass. Picture tube focusing: Electrostatic focusing (in place of alnico magnet) 1 saves 5 oz. of Alnico V. 5 oz. of zinc. 8 oz. of steel. "When we have completely i changed over to electrostatic f ocusing. . . the total [reduction in use of Alnico V in i speaker and focusing] will be from 7.5 oz. to 0.75 oz.," RCA states. I Copper has been saved in these ways: Power transformer specifications have i been changed, saving 0.19 lb. per transformer. (Other manufacturers are reported j eliminating power transformer entirely by use of selenium voltage doubler. ) Hook- I up wire has been reduced from 22 to 24 gauge, a 33% saving in copper. Savings in components RCA buys: Cup over end of picture tube on back of cab- inet has been changed from aluminum to plastic. Shorter mounting bushings on some 4 variable controls save about 10% of brass in controls. Reduction in length of copper wire leads on capacitors saves 20% copper. Copper-clad steel wire leads are used instead of copper wire on wire-wound resistors and chokes. Alnico III magnets (no cobalt) are used instead of Alnico V for beam-benders. Electron tubes: RCA gives details of nickel-plated steel strips (Vol. 6:49) used instead of pure nickel for tube plates. Nickel-plated Armco iron and low- nickel content stainless steel substitutes for pure nickel wire and copper wire in many tube components. Also being developed are facilities for use of 20% tin con- tent solder in all operations — in place of 35-60% tin. * *( * TV installation materials are conserved through measures already taken by RCA Service Co. Aluminum in antenna masts has been cut almost 50% during first quarter of 1951. Masts and antennas are narrower, shorter, thinner. Copper in installations is being saved by; (1) Nation-wide program to place antenna near as possible to receiver. (2) Lighter weight lead-in wire, conserving as much as 33% in copper. (3) Splicing together and soldering short lengths of lead-in. Tests are being made with copper-coated steel wire for lead-ins, and with aluminum foil^ to replace copper braid in coaxial cables. Zinc is saved through use of plastic coating material to rust-proof steel masts and brackets. Brackets, etc. are being redesigned to save steel. * * * * Conservation measures for future are still being planned. Among them: (1) Redesign of CR tube deflection yoke, which, except for power transfor- mer, is largest component user of copper. "A design using only 50% of the usual amount ‘Of copper. . .appears promising." (2) This in turn will result in appreciable reduction in amount of copper in power transformer. >*=(3) "Chassis size and depth can also be reduced in the future." "■(4) Nickel oxide in steel alloys has been reduced, with 23% saving already effected and goal of cutting its use another 50%. Personal Notes: Walter Duncan, ex-sales mgr., WPIX, New York, joins Paul H. Raymer Co. . . . Lew Ruwitch, v.p. &; gen. mgr., elected to board of WTVJ, Miami . . . Jack Bard, exr-NBC, joins DuMont Network as sales pro- motion mgr. . . . Wm. Lauten succeeds Mike Dann as trade news editor of NBC press dept. . . . Robert M. Flanigan promoted to mgr., NBC Chicago spot sales, succeeding late Oliv^ Morton . . . Edw. G. Smith, ex-General Mills, now mgr. of new program sales, ABC Central Div. . . . Hal Keith, ditecting Your Show of Shows, Bob Hope TV shows, etc., recalled to active Army duty . . . Vera Brennan, pro- moted to director of TV-radio timebuying for Duane Jones Co., succeeding Reggie Schuebel, resigned . . . Edgar Par- sons, ex-WOL, Washington, new TV-radio director of GARL HAVERLIN, president of Broadcast Music Inc., onetime MBS v.p. and a former Pacific Coast broad- caster, seems to be leading field of prospects for NAB presidency to succeed Judge Justin Miller when latter moves up to chairman and association changes name to National Assn, of Radio & Television Broadcasters. Changes presumably will come after April 15-19 NAB convention in Chicago’s Stevens Hotel (Vol. 7:5). “Whether the BMI chief would be favorably disposed to the $50,000 job, was uncertain at week’s end — but his name met with general approval at first informal meeting of 8-man committee empowered to make the selection. During last week’s Florida meeting of NAB board, quite a few names were “tossed into the hat,’’ including Harry C. Butcher, ex-CBS Washington v.p., now operating KIST, Santa Barbara; Otto Brandt, ABC station relations direc- tor; Charles R. Denny Jr., NBC executive v.p.; Harold American Automobile Assn. . . . Earl Kennedy, ex-Young & Rubicam, joins Maxon Inc., New York, in charge of TV-radio production . . . Carol Sleeper, ex-Doherty, Clif- ford & Schenfield, new timebuyer for N. W. Ayer, New York, succeeding Dirk Watson, recalled to Navy duty . . . H. Lawrence Holcomb, Lennen & Mitchell, new director of TV-radio dept., Tatham-Laird . . . Arnold Olin Leeds re- signs as TV director of Moss Associates, New York, his work to be taken over by Joseph Moss . . .Harold J. Bock, NBC Hollywood director of talent relations, has resigned. Wm. C. Ackerman has been granted leave as CBS Ref- erence Dept, director and Program Dept. secy, to serve in Washington as secy, of President’s Materials Policy Com- mission, headed by CBS chairman Wm. S. Paley (Vol. 7:4). Fellows, WEEI, Boston; Leo Fitzpatrick, WGR, Buffalo; Ed Kobak, ex-MBS president; Paul W. Morency, WTIC, Hartford; Joseph A. McDonald, ABC v.p.; Richard Shafto, WIS, Columbia, S. C.; Eugene Thomas, WOR-TV, New York; Donald Thornburgh, WCAU, Philadelphia. There was talk of Morency’s choice on an interim basis, with Brandt to head up TV Div.; also that Thad H. Brown Jr., Washington attorney, might take legal post with newly revamped association. Choice of president will be made by this committee: Ben Strouse, WWDC, Washington, secretary; Robert Swezey, WDSU & WDSU-TV, New Orleans; James D. , Shouse, Crosley stations; Allen M. Woodall, WDAK, Co- ' lumbus, Ga.; Harry R. Spence, KXRO, Aberdeen, Wash.; Patt McDonald, WHHM, Memphis: Wm. B. Quarton, WMT, ^ Cedar Rapids; Wm. A. Fay, WH.\M & WHAM-TV, ‘ Rochester. Network Accounts: Milton Berle may put his Texaco Star Theatre on NBC-TV alternate weeks, starting next fall, reports Variety, which recalls Kudner agency presi- dent James H. S. Ellis’ recent Detroit speech charging networks with pricing TV sponsorships off air by higher rates and increased talent costs (Vol. 7:2-4); Texaco show is reported to cost about $40,000 weekly, Berle drawing $11,000 . . . Cluett, Peabody & Co. (Arrow shirts) is ready- ing alternate week sponsorship of Holiday Hotel, Thu. 9-9:30 on ABC-TV, thru Young & Rubicam; will alternate with Packard, which now has show alone, same agency . . . March 25 is starting date of General Mills’ alternate week sponsorship of 6:30-7 portion of Ted Mack Family Hour, Sun. 6-7 on ABC-TV, thru Tatham-Laird, Chicago; C. A. Swanson & Sons (poultry & margarine products), same agency, is alternate sponsor . , . Feb. 24 is starting date for new Lehn & Fink (Lysol, Etiquet deodorant. Hinds Honey & Almond Cream) sponsorship of 8-8:15 portion of Jack Carter Show Sat. 8-9 on NBC-TV, thru Lennen & Mitchell and McCann-Erickson . . . Hollywood Candy Co. (Milk Shake candy bar) has cancelled plans for children’s show on CBS-TV, to have started Jan. 27, Sat. ll:30-noon, thru Ruthrauff & Ryan, Chicago (Vol. 7:3). Station Accounts: Seeking engineers, designers, drafts- men, etc., Victor Chemical Works, Chicago, bought spots adjacent to weather reports, sports, newsreels, etc., eve- nings on WNBQ & WGN-TV for 2 weeks, got 270 appli- cants— much more than newspaper classifieds and radio spots produced. In fairness, though, it must be stated that TV announcements were spotlighted in 3-line ads in Chicago newspapers, and radio shots were daytime only. Gimmick: Applicant was instructed to phone certain num- ber, where recording service took down job interview — a speedup method that gratified sponsor to point he says he will continue using TV in soliciting manpower . . . WTVJ, Miami, claims it has more different local advertisers booked than probably any other TV station — 181 in one recent week . . . Series of 26 documentaries, all filmed by sta- tion’s own staff and titled This Is Baltimore, depicts city’s outstanding institutions and industries and are sponsored on WMAR-TV by Savings Bank of Baltimore, Mon. 7:15-8, thru Mahool Adv. Agency ... To promote new film Kim, opening in 31 Loew’s movie houses in New York area Feb. 21, Loew’s Inc. plans “saturation” drive on WPIX that day, using every spot and participation availability, placed thru Donahue & Coe . . . Progresso Brand Quality Foods Feb. 18 starts 13-week series of Opera Cameos, with David Ross as commentator for operatic guest stars, on WPIX, Sun. 6-6:30, thru Carlo Vinti Adv. . . . Dow-Corning Corp. (Sight Savers eyeglass wipers) is new spot account on WCBS-TV, New York, thru Don Wagnitz Adv., Midland, ' Mich. . . . New idea in quiz shows is Special Delivery on KFI-TV, Los Angeles, sponsored by 6 Sanitone Cleaners, Mon. 7:30-8, with 6-person panel each week competing, half sponsors, other half women customers of the cleaning ' establishments . . . C. Schmidt & Sons (Schmidt’s Beer & I Tiger Head Ale) Feb. 13 started Public Prosecutor, filmed f detective dramas, Tue. 7:30-8, on WFIL-TV, Philadelphia . . . . Consider H. Willett Inc., Louisville, (furniture manu- f facturer) sponsoring NBC News Review of the Week on y WTMJ-TV, Milwaukee, Mon. 4:15, thru Griswold-Eshleman i’ Co., Cleveland . . . Among other advertisers currently re- ported using or preparing to use TV: Wesson Oil & Snow- j drift Co. Inc. (Snowdrift shortening), thru Kenyon & Eckhardt, N. Y., and Fitzgerald Adv. Agency, New Or- »| leans; Silex Co. (Silex coffee makers, steam irons), thru ( ^ Alley & Richards Inc., N. Y.; B. Manischewitz Co. of New »‘i York Inc. (frozen kosher chicken), thru A. B. Laudau Inc., I N. Y.; Terre Haute Brewing Co. Inc. (Champagne Velvet |1 Beer & 76 Ale), thru Biow Co., N. Y.; Florida Fashions Inc., Sanford, Fla. (cotton dress mail order house), thru Jack Danowitz Adv. Inc., N. Y.; J. G. Van Holten & Son Inc. (pickles), thru Jim Baker Associates, Milwaukee; Dolcin Corp. (proprietary), thru Victor Van der Linde Co., N. Y.; 0-Cedar Corp. (Dri-Glo silicone furniture polish), thru Young & Rubicam, Chicago; American Home Foods Inc. (Duff’s cake mix), thru Ted Bates & Co., N. Y.; Hambro Trading Co. of America Inc. (Queen of Scots Kip- pers), thru Victor A. Bennett Co., N. Y. Policy of 2% cash discount on national advertising has been adopted by 3 TV networks, all 4 radio networks, but is slow to take hold among individual TV and AM sta- tions, reports American Assn, of Advertising Agencies, which said it regards discount as financial safeguard serv- ing as automatic warning when client passes discount date. AAAA said its members have placed $15 billion worth of advertising in last 20 years, that media have had credit losses of only $250,000 in that time, whereas agencies have lost $5,100,000. But AAAA points out that agency losses amount merely to 1/30 of 1%. Among other media, 2% discount has been adopted by 95% of news- papers, 95% of farm papers, 93% of general magazines, 83% of business publications. Radio and TV carry less “questionable” advertising than other media. Federal Trade Commission indicated in annual report, issued Feb. 8, covering fiscal year ended June 30, 1950. About 4.5% of newspaper and magazine ads examined were set aside as possibly false and mislead- ing, 2.5% of mail order ads, 2% of TV continuities, 1.9% of radio continuities. FTC examined 759,729 radio scripts, 35,422 TV continuities during fiscal year. FTC chairman James M. Mead has directed Radio & Periodical Advertis- ing Div. to “give particular attention to advertising ap- peals of doubtful nature which are related to the mobiliza- tion effort.” If Phonevision were national, annual income would be $950,000,000, according to first month report from Zenith’s Conidr. McDonald to film producers cooperating in 300- family Chicago test. He based his estimate on 1.8 times per week per family average “attendance” (excluding fii’st week because of novelty effect) related to 10,000,000 TV sets now in use. Under Phonevision plan, half of that would go to producers. McDonald calculated almost $1,000,000 per picture for producers in his pay-as-you-see plan. Report shows average attendance was 3.1 times per family first week, 1.9 second and third week, 1.7 fourth week. Twenty-eight pictures were screened. FCC this week extended authorization of tests to March 31, so they can run full 90 days. Critics of Phonevision say it can- not be assumed all 10,000,000 TV sets-in-use would be equipped for pay-as-you-see system, point to TOA con- sultant Nathan Halpern analysis last July which calculated top income of $940,000 per picture, or top of $460,000 for producer (Vol. 6:30). Doubters are also eager to see Sindlinger report to Paramount on experiment; he was hired for job (Vol. 7:2). New and Better TV Map New Television Map of the United States, re- vised to Jan. 15, 1951, and considerably improved, has been published by Television Digest, and one copy was inserted with our Jan. 15 TV Factbook No. 12. It makes an excellent wall-map, or can be used as a working outline. It’s 22x26 in., in color, shows locations of and lists all operating TV stations with present and projected network routes. Because of demand for extra copies, we have had more pub- lished and they’re available at $1 each. Quantity prices on request. r ... Mobilization Bepor February 10, 1951 MB UPCOMING METALS CURB MAY HIT TV-RADIO: New measures to limit use of critical metals are being prepared by National Production Authority. Aimed at auto and major appliance makers — who use lots of steel — they may be extended also to TV-radio industry. Control of 5 metals basic to the economy, on industry-by- industry basis, is key to new NPA planning. Past materials limitations have been across-the-board cuts, applicable equally to all civilian users of raw materials. New orders, sched- uled to take effect about April 1, will single out specific industries, tell them how much to cut their consumption of steel, aluminum and copper. Cuts will begin at 25% of "current consumption." progressively increasing to 40%, best sources indicate. NPA says impact will be gradual, "designed to mesh as closely as possible with increasing defense work so as to create a practical minimum of dislocation and unemployment." Behind change in policy is NPA*s dissatisfaction with continued high use of steel by auto and appliance makers — and also with inequities in present system of over-all cuts in use of strategic metals. Present limitations, which hit suppliers rather than end-product makers, favor bigger manufacturers who can corner new sources of supply at expense of smaller manufacturers or other industries. Refrigerator, stove, auto industries have been mentioned specifically as targets for new orders. At week's end, NPA hadn't made decision whether to include TV-radio. First order in new series will probably be issued in 2 weeks, giving manufacturers time to make ad.justtqents before April 1 deadline. Here's example of how orders will probably work: NPA may order refrigerator manufacturers to use 25% less steel in April, 30% less in May, 35% less in June, than they did in January 1951. This would place ceiling on amount of steel avail- able to each manufacturer, but not on number of refrigerators he could turn out. "Metals census" of electronics industry, now being completed by Electronic Parts Mobilization Committee of RTMA, should aid NPA as well as TV-radio industry in future planning. Committee is compiling list of total amounts of critical metals used by the industry. Metals on list ; aluminum, brass, cadmiunt, cobalt, copper, iron, lead, nickel, steel, tin, zinc, NPA means business — and it's good bet that TV-radios built after April 1 will be full-fledged "conservation models, " regardless whether the industry is in- cluded in new metals limitations. If there aren't substantial cuts in use of scarce metals, NPA's "kid-glove" handling of TV-radio industry may come to end. NPA TELLS NPA 'NO BAN ON STATIONS': Washington isn't noted as a manufacturing city. But it does turn out 2 products in vast quantities — confusion and contradiction. Here's a timely example: Most "commercial construction" was banned for 30 days Jan. 15 by Amendment 3 to National Production Authority Order M-4 (Vol. 7:3). The order also provided that after Feb. 15, none of this same type construction could be conimenced without NPA authorization. It immediately touched off disputes as to exactly what construc- tion was affected. Part of the trade press headlined stories that TV-radio station construction had been banned. Since this was one of the points on which order was obscure, we visited NPA's Construction Div. when order first came out — and there received these divergent answers from 4 different officials: (1) All TV-radio transmitter, studio and office construction is banned. (2) Transmitter installations may be built, but not studios or offices. (3) Engineering facilities and studios are OK, but not offices. 1519 CONNECTICUT AVE. N.W. !/ WASHINGTON 6, D. C. • TELEPHONE MICHIGAN 2020 - 6 - 7 (4) You can build studios and offices if they're housed in same building as transmitting equipment. Construction Div. couldn't interpret own order, we concluded, and so went to NPA's legal dept. , where we consulted attorneys who drew up the order and are saddled with job of interpreting it. From them we got facts on which we based our Jan. 20 (Vol. 7:3) item captioned: "Stations Exempt From Building Ban.” To clear up confusion among the public — including its own Construction Div. , which is charged with enforcing the order — NPA Feb. 9 issued Amendment 4 to M-4, specifically stating that TV-radio stations, newspaper and printing plants can be built without NPA authorization. In accompanying statement, NPA explained its policy is "to assure the greatest possible freedom of operation to the nation's fa- cilities for the communication of news and education material." In black and white. Amendment 4 exempts from construction controls; "Build- ings, structures or projects for radio broadcasting or television broadcasting." Presumably, the Construction Div. Mobilization Notes: There’s no crisis yet in raw film supply for TV, but situation may get worse due to in- creasing demand of armed forces for X-ray film. DuPont [ has already notified customers it’s cutting all film orders by 25%, with Eastman reportedly holding customers to same amount they used in 1950. TV requirements are ex- pected to increase this year — and that’s where the pinch may come in. Use of film was limited by War Production Board during World War II. NPA officials say no such action is currently planned — but may be necessary if shortage becomes more severe. NPA is querying all users of mo- tion picture film to determine amount used in each field (theatre, advertising, kinescope, etc.). It’s estimated TV uses 300,000,000 feet of raw film each year, compared to 2 billion feet used by motion picture industry. >i< « ^ Resolution requesting priorities for replacement parts (Vol. 7:5) was made public this week by Assn, of Elec- tronic Parts & Equipment Manufacturers (New York) and Sales Managers Club, Eastern Group (New York). It urges NPA to assign, for production and distribution of maintenance, repair and operating supplies, ratings equal to defense priorities. Resolution suggests: (1) distribu- tors who buy priority replacement parts be restricted to 180-day inventory; (2) manufacturers be permitted to use, in replacement parts, up to 150% of materials used for same purpose during first half 1950 base period. W. Walter (Wally) Watts, RCA Engineering Prod- ucts v.p. on leave, whose appointment as asst, to Defense Production Administrator Wm. H. Harrison (Vol. 7:1) was officially announced Feb. 8, will be chairman of DPA’s Production Executive Committee through which Gen. Har- rison will exercise over-all coordination and direction of defense production. Committee will consist of representa- , tives of all govt, agencies participating in defense produc- ; tion program. Edwin T. Gibson, General Foods Corp. ' v.p., was named DPA Deputy Administx’ator in charge of staff services. I Idea of using distributors as subcontractors, recently broached by Belmont (Vol. 7:3), gave impetus for Na- tional Assn, of Electrical Distributors to circularize mem- : bers with message that its membership aggregates 75,000,- 1 000 sq. ft. of floor space, as well as tens of thousands of I skilled workers available for defense production, j Dr. Lloyd F. Berkner, noted radio scientist, is leaving Carnegie Institution to become president of Associated ' Universities Inc., formed by 9 Eastern universities to 1 administer Brookhaven National Laboratory, at Upton, j N. Y., for the Atomic Energy Commission. knows about it now. NPA’s Electronic Products Div., headed by John Daley, continues to expand, with addition of 2 staff mem- bers this week: Wm. S. Winter, veteran of old WPB Radio-Radar Div., formerly in wholesale & retail elec- tronics business, including Emerson sales staff, and J. Bernard Joseph, engineer, an ex-Mass, radio wholesaler, ex-RCA & GE, who did industrial mobilization work for Signal Corps during World War II. Glen Ireland, on leave as v.p. & gen. mgr. of Pacific Telephone & Telegraph Co., this week was appointed Deputy Administrator of National Production Authority by Administrator Manly Fleischmann. Ireland was for- merly asst, to NPA Administrator; John C. Pritchard, Denver steel fabricator, Feb. 7 became director of NPA’s Office of Small Business. John H. Hollands, of Buffalo, Feb. 8 was named NPA general counsel. Robert C. Tait, president of Stromberg-Carlson, elected co-chairman, with Western Electric’s Fred R. Lack, of Joint Electronics Industry Committee. JEIC was set up by RTMA and National Security Industrial Assn, to coordinate all industry mobilization activities and to serve as advisor to top govt, policy makers. (For membership, see Vol. 6:32, 36.) Helpful booklet. Inventory Control & Priorities, just published by NPA, answers 85 most common questions about Regulations 1 & 2, is available free from Commerce Dept, field offices or from Office of Public Information, Na- tional Production Authority, Washington 25, D. C. * H* ❖ »!< Among unclassified military contracts for electronics and related equipment (more than $100,000) announced by Commerce Dept, for week ending Feb. 7: Through Signal Corps, Philadelphia — RCA, $2,000,000, radio sets (18,899 units): Automatic Radio Mfg., $496,764, auxiliary inter- phone equipment; Leeds & Northrop Co., Philadelphia, $250,000, radiosonde recorders (185); Mallory, $250,000, power supplies (6500); Park Mfg. Co., Grant Park, 111., $250,000, power supplies (6500) ; Barker & Williamson Inc., Upper Darby, Pa., $180,000, radio sets (30). Through Navy Bui’eau of Ships, Washington — Stewart-Warner, $800,000, direction finders (46). Through Air Materiel Command, Dayton — Hammarlund, $259,505, receivers. Through Navy Electronic Supply Office, Great Lakes, 111. — Hytron, $175,000, electron tubes. RCA was awarded con- tracts totaling $168,380 for electron tubes through Signal Corps and Navy Electronic Supply Office. In addition, Lewyt Corp. (vacuum cleaners) reportedly has received $4,500,000 Signal Corps contract for construction of FM ground force radio equipment; company is still working on an initial $5,000,000 order for same type equipment. — Trade Report Febmary 10, 1951 COMPLEX PATTERNS OF THE TV TRADE: Paradox of shrinking factory supplies but con- tinued high production and huge inventories seems to be current pattern of TV trade. More than 1,000,000 costly units are in trade pipelines, components are get- ting scarcer as Govt, tightens controls of raw materials, prices hold firm — and people are still buying. Radios, too, are enjoying boom. Calling its tax and credit control shots well in advance, Truman Administra- tion turns out to be TV's best salesman. Nobody likes the long-range news, but near-term effect is to move goods — of that there can be little doubt. Treasury's proposed hike of excise tax from the 10% imposed last Nov. 1 to 25% was grim reminder that lush days are nearing end, for such tax miist inevita- bly cut down buying. But it's unlikely the new excises will get through Congress and become effective before summer — so public still has plenty of time to buy and, with piled-up stocks, you can be sure retailers will urge them aplenty. As for tighter Regulation W. already stringent, word from Federal Reserve is expected any day, for the whole anti-inflation program is designed to discourage buying of durable goods, particularly "luxury" items. They regard TV in that cate- gory here in Washington. ♦ ♦ ♦ ♦ How high can prices go — and the public still be expected to buy? Another 15% factory excise would add about 10%, roughly, to retail cost of TV receivers. ^During 1950, sets went through many rounds of price increases, forced by higher labor and material costs and, after Nov. 1, by the 10% excise tax. Demand for lower-priced units, while factories insist on loading them' with higher priced, led one large distributor to remark; "I don't mind having a Cadillac franchise, but damn it all, I'd like to have a Chevrolet agency on the side, too." It's possible now to give some idea how much prices went up during 1950, though available figures are factory level only, and we could secure them only for the first 11 months of year. The figures are derived from authoritative sources. Leaving out of account taxes, average factory price for a TV receiver in January 1950 was S165.77, and this was progression thenceforth; February $176.06, March $174.94, April $158.80, May $170.31, June $165.03, July $162.77, August $176.64, September $190.78, October $198.47, November $199.76. ♦ * * * Railroad stoppage cut heavily into outputs of Philco and Admiral, each of which is reputed to produce 4000 or more receivers per working day. Philco recalled its Philadelphia and Croydon workers for second (4 p.m.) shift Tuesday, resumed full scale next day, so that it lost just about full work week (Vol. 7;5). Admiral plant in Chicago resumed Tuesday, so that it lost 3 full days. Others may have been affected, but didn't say anything. Philco 's Sandusky plant kept going, so that company's over-all TV output was down about 75%. Philco depends heavily on rail shipments, considers freight cars its part-time "warehouses". More trucks solved Admiral's problem. Those shutdowns and other curtailments probably mean February production figures will slide — but January's stayed fairly high, totaling 639,176 TVs and 1,235,114 radios, compared with 879,075 TVs, 1,602,055 radios in 5-week December, 752,005 & 1,304,094 in November (for all 1950 monthly figures, see p. 67, TV Fact- book No. 12) . Here's how January's 4 weeks stacked up for TVs; first week 105,699, second 167,859, third 188,758, fourth 176,860. Surprising was continued high output of radios ; first week 209,792, second 338,520, third 342,586, fourth 344,216. 1519 CONNECTICUT AVE. N.W. / WASHINGTON 6. D. C. • TELEPHONE MICHIGAN 2020 8 9 Where are the components coming from to keep up this rate? They tell us; First, larse companies enjoying long relationships with prime suppliers are being favored. Secondly, small companies, finding key items hard to get, have begun pulling in their horns, so that more materials are going to others. "The little guys are getting littler," we're told. But shortages are "getting rougher" on everybody, with speakers right now the most severe, and the pinch being felt in transformers and yokes (using copper) and steel items. By April, real shortages should develop in aluminum and 300-ohm line (copper), and of course the cobalt outlook is very rugged (Vol. 7:5). Big problem for all manufacturers is unbalanced inventory of supplies. Sets are being held up for lack of one or two components, varying from day to day. But the big fellows insist they have no factory inventories of finished sets, and some are inclined to minimize extent of their wholesaler-retailer inventories. Example of a smaller TV producer's position is Sparton, which is now pro- ducing about third less than peak final quarter 1950, has cut down distribution to major cities (dropped 10 out of 47 field agencies), is emphasizing 26-tube chassis requiring more critical materials and longer time to make. Sparton is getting some defense contracts, expects to have 50% of capacity on war work toward end of year, has reopened 100,000 sq. ft. plant for such production. Big and little, the manufacturers even have their salesmen out buying up needed components, are still paying list prices or better for certain items. Tough- I est part of materials problem, we were told by one big components maker, is to get uncontrolled items. All his executives are purchasing agents these days. ♦ ♦ ♦ ♦ That retail business is good, is generally acknowledged — with the usual 1 squawks about inadequate markups, big inventories, factories prodding to take more, i etc. Reports from San Francisco Western Merchandise Mart indicate high optimism among Pacific Coast retailers. It's too early yet to gauge country-wide effect of news of proposed new excise tax — but few doubted it would prove hypo. Wall Street Journal Feb. 7 headed article on appliance sales thus: "Retail Stocks Tower. Supplies Keep Coming as Scare Sales Ebb. Plenty to Buy. " Then it related how Macy's advertised |550 TV for $329, how big stores around country are "loaded to the gunwales with consumer goods." Expressive quote from Marvin Cossy. of Chicago's Edward B. Dublin & Son: "TV sets are supposed to be on allocation, but it's a funny thing that manu- facturers keep calling up and asking if I want more merchandise." And a Boston dealer mourns that if slump should occur, "a lot of banks will find themselves in the TV set business." EXPORT FIELD UNITED BUT PROMISING: Final figures aren't available yet — but from authoritative source we learn that U.S. TV-radio manufacturers during 1950 exported some 32,000 complete TV receivers valued at approximately $6,000,000 (average unit ; cost at factory; about $190) plus some 7000 TV units without cabinets valued at about $1,000,000 (average: nearly $145). These tentative figures give idea of smallness as yet of our TV export . trade. -- 39,000 units being less than one-fourth of one average week's production. ; The 1950 radio export figure will be fully 400,000 complete sets valued at around $9,000,000. Cathode ray tube exports in 1950 totaled mere 11,184, receiving tubes f only 10,767,831 out of 7,473,614 & 383,960,599 production, respectively (Vol. 7:5). Whereas our radio exports go all over the world, and American branch or affiliated factories are prime manufacturers or assemblers in many countries, our TVs move almost exclusively to Canada, Cuba, Mexico and Brazil. Therein lies a great potential for the U.S. industry, provided (a) that it J can continue to turn out sets, (b) Mexico and Brazil relax their import restric- : tions, (c) demand for such high-priced item is stimulated as stations open up. . ^ Emerson last week disclosed order for 1400 TVs from its Rio de Janeiro dis- ( tributor, having shipped 1000 last December — with 3000-4000 non-assembled units i - 10 also due to be shipped to Brazil by mid-summer if export licenses are obtainable. That brought to light fact that Brazilian Govt, limited 1950 TV imports to 10,000 sets. Mexico similarly allowed 10,000 TVs in. Cuba is free market, and Havana claims at least 10,000 sets already. Canada has a considerable TV-radio in- dustry of its own, so imports very few complete units from this country. Efforts to relax import quotas are being pushed, as Airierican firms argue with Mexico and Brazil that they cannot afford to set up complicated production lines in those countries, as they did for simpler and cheaper radios, and sell at prices comparable to the mass-produced U.S. product. Brazil's newly elected Presi- dent Getulio Vargas is reported favorable to relaxing the quotas, especially as several more TV stations are planned in that country. Except for England, with a flourishing industry of its own, few other coun- tries have telecast services comparable to those growing up in the western hemi- sphere. U.S. interests have concentrated so intensely on the ripe domestic market that they've as yet evinced very little interest in exports — that is, all but about a dozen firms — notably Philco and RCA, which are reputed to account for at least 75% of the TV export trade to date. Aside from small size of foreign markets, other reasons why U.S. companies tend to shun them; (1) Different transmission and power standards mean too much engineering bother. (2) Aggressive competition from such outfits as sprawling Dutch Philips Company, to which such markets mean do or die. Note ; For details about the 2 stations presently operating in Havana, the one in Mexico City, 2 in Rio, others planned, see page 29 of our TV Factbook No. 12. Canada has no telecast outlets, gets fair service from some of our border stations. Topics & Trends of TV Trade: New tax threats and the need for stronger coordination in Washington of TV- radio industry’s mobilization efforts ai’e expected to ex- pedite RTMA board action on its reorganization commit- tee’s selection of RCA v.p. Glen McDaniel as paid presi- dent (Vol. 7:2) when board meets in Chicago’s Stevens Hotel next Thursday, Feb. 15. Vei-y little opposition to McDaniel has developed. He’s strongly supported by in- terim president Robert C. Sprague, and won particularly favoi’able attention by his work on recent excess profits tax bill. Some objections were raised on grounds of his youth (39) and his RCA connection (5 years), but these are believed to have faded. Uppermost also in minds of RTMA members, as they attend Chicago mid-winter conference Feb. 13-15, will be proposed new excise tax (see p. 1), service problems ( Seiwice Committee under Chairman E. W. Merriam meets Feb. 13), and various facets of defense effort. Committees meet Feb. 13 & 14, and at board meeting Feb. 15 reports will be submitted on work of Joint Electronics Industry Committee (Fred Lack and Robert C. Tait, co-chairmen) and Electronics Parts Mobilization Committee (A. D. Plamondon Jr. and R. E. Laux, co-chairmen). * 4 * New Emerson line, announced this week, comprises 23 models, including 6 holdovers from previous line. Only one new set is table, 17-in. mahogany Model 696, at $299.95. Other’s are all consoles, all mahogany unless otherwise in- dicated (prices including excise tax): 16- in.: 684, $329.95; 685, with doors, $359.95. 17- in.: 686, $349.95 (blonde, $359.95); 687, with doors, $379.95 (blonde, $399.95). 19- in.: 688, $439.95; 689, with doors, $459.95 (blonde, $479.95); 690, with full doors, $479.95 (blonde, $509.95). 20- in.: 692, $459.95; 693, with doors, $479.95 (blonde, $499.95); 694, full doors, $499.95 (blonde, $529.95). Held over were 662, 14-in. plastic table, $219.95; 676, 17-in. wood table, $299.95 (blonde, $309.96); 680, 17-in. table, better cabinet, $299.95; 666, 16-in. console, AM-FM- phono, $499.95 (blonde, $529.95). Notwithstanding wage freeze, CIO’s International Union of Electrical Workers (lUE) launched campaign for 12 to 1514 (• per hour wage inci’eases, plus pensions and other benefits. At Feb. 3-4 meeting of TV-radio union dele- gates in Erie, Pa., said to represent 75,000 workers, presi- dent James B. Carey said TV-radio industry is “low man on the totem pole of the plants which lUE represents.” lUE also represents electrical and machinery workers. Carey said industry could grant wage boosts from In- creased profits without boosting prices, cited also special provisions in excess profits tax for growth companies. lUE also announced it would act in behalf of employers in seeing they got relief when necessary from NPA limita- tion and allocation orders “so plants can continue full pro- duction until receipt of defense orders.” Coming Glass Works px’oudly announced plans for 100,000 sq. ft. Glass Center, in Corning, N. Y., to be opened this summer in connection with celebration of company’s 100th year. Center v.-ill include a Steuben glass factory, research facilities, library, museum, spectators’ galleries. Corning claims library and museum will be most extensive in world. It will be open to scientists, students, historians, artists, etc. Handling public relations is Steuben ad- manager E. P. H. (Jimmy) James, former Mutual v.p. New service plan, with warranty on picture tube only, is being sold by Television Engineers Inc., 1639 W. Har- rison St., Chicago. Customers pay $7.95 to $12.95, de- pending on tube size, are protected for year against large replacement costs of picture tubes. Sheldon Electric Co., division of Allied Electric Prod- ucts Inc., Irvington, N. J., is latest to announce develop- ment of electrostatically-focused picture tube, which saves copper and cobalt (Vol. 7:1, 3-5). Canadian manufacturers during 1950 sold 37,823 TVs valued at factory at $16,276,583, and 731,345 radios valued at $57,320,400, reports RMA of Canada. During 1949, they sold 729,970 radios. Bendix Radio Div. has appointed Radio Engineering Products Ltd., Montreal, as Canadian distributor. 11 - ' Plant expansions: GE plans to build $200,000 ware- house at its Buffalo TV tube plant, 55,000 sq. ft. structure to be started in fall . . . GE also announces construction has begun on new 4-story addition, 117,000 sq. ft., costing $2,000,000, to its Owensboro (Ky.) tube works for manu- facture of miniature, subminiature and metal receiving tubes; should be ready for occupancy by July 15 . . . Halli- crafters leasing new 100,000 sq. ft. plant about 3 mi. from present Chicago factory, to be used for military produc- tion . . . P. R. Mallory & Co. new plant scheduled for com- pletion July 1 . . . Cornell-Dubilier has leased 81,000 sq. ft. warehouse at Fuquay Springs, N. C., 18 mi. southeast of Raleigh, and in about 60 days expects to have it ready for manufacturing vibrator-type power supplies. RTMA statisticians have revised upward their 1950 TV-radio set production estimates, placing total TVs at 7,463,800, radios at 14,589,900. Previous accumulated monthly figures came to 7,408,690 TVs, 14,554,972 radios (Vol. 7:2). Breakdown of 1960 radios is now given as 8,174,600 home units, 4,740,600 auto, $1,674,700 portable. New publications firm, preparing technical material for electronics companies seeking govt, or other business, is Manual Publishers Inc., 96 Elm St., Buffalo. Company is associated with distributor W. Bergman Co., offers “complete service for the preparation, editing and produc- tion of technical literature.” a The color inventors still appear — FCC receiving let- ters from two recently. Cage Projects Inc., 393 Grove St., Upper Montclair, N. J., onetime producer of custom TV receiver installations, told Commission it had acquired pending patents on color camera and receiving tubes, wanted to know whether FCC approval of them is neces- sai-y. Commission said it couldn’t tell from description. Meguer V. Kalfaian, 962 Hyperion Ave., Los Angeles, filed long, complex description of 12-mc color system involving multiplex, said it is compatible. FCC answered by calling his attention to portion of color decision which outlines how new systems will be considered. Uhf and color, covered by experts, will be featured in April 14 conference of Cincinnati IRE section: Uhf — NBC’s Raymond Guy on Bridgeport experience; Philco’s R. G. Clapp on reception; Measurement Corp.’s JeiTy B. Minter on uhf megacycle meter. Color — Crosley’s Harold L. Brouse on colorimetries; GE’s R. B. Dome on “Methods of Adding Color to TV Images”; Hazeltine’s A. V. Lough- ren on “Some Fundamental Considerations on Color TV.” More Feb. 1 sets-5n-use reported since NBC Research’s “census” of Jan. 1 (Vol. 7:3): St. Louis, 254,000, up 15,000; Washington, 233,910, up 13,910; Memphis, 75,117, up 5017; Omaha, 62,904, up 7104; Norfolk, 56,783, up 6283; Utica, 36,000, up 3000; Kansas City, 100,600, up 7400. Trade Personals: S. M. Finalyson, gen. mgr., Canadian Marconi, succeeds A. H. Ginman, retired, as president . . . i Glen L. Logan, ex-executive asst, to sales v.p. of Packard 1 Motor Car Co., named managing director of Electric ! League of Los Angeles, succeeding Wm. J. Quinn, retired . . . Dr. R. M. Bowie, ex-mgr. of Sylvania physics labs, ap- , pointed to staff of Sylvania engineering v.p. E. F. Carter . . Henry Esterly promoted to Magnavox district sales mgr.. New York City, with John Hogan succeeding him as I state mgr. out of Syracuse . . . Walter S. Lefebre ap- pointed Sylvania Buffalo-Cleveland-Detroit district sales mgr. . . . Harold J. Schulman appointed service director of , DuMont teleset service control dept. . . . Newly elected GE I executive vice presidents are Roy W. Johnson, in charge of appliance and electronics group; Henry V. Erban, ap- 1 paratus group; Hardage L. Andrews, industrial products I and lamp group. Financial & Trade Notes: New Federal income and excess profits taxes pushed CBS net earnings down from $4,184,100 ($2.44 per share) in 1949 to $4,105,300 ($2.39) in 1950, according to report to stockholders Feb. 7. The 1950 Federal and excess profits taxes amounted to $5,460,- 000, as against $3,450,000 income tax only in 1949. In 1948, net earnings were .$5,041,700 ($2.94); 1947, $5,920,100 ($3.45); 1946, $5,795,900 ($3.37); 1945, $5,346,200 ($3.11). Complete financial repoi’t for fiscal year ended Dec. 30, 1950 will be distributed on or before April 1. Among officers’ and directors’ stock transactions re- ported by SEC for December: Cy S. Rossate bought 200 Admiral, holds 1400; Charles M. Thorp Jr. gave 200 Blaw- Knox as gift, holds 1800; Isaac D, Levy gave 280 CBS (Class B common) to charities, holds 20,476; Allen B. Du- Mont received 2000 DuMont Laboratories as gift, holds 56,500; John S. Timmons sold 3000 Philco, holds 17,000; Lplie G. Woods gave 300 Philco as gift, holds 10,305; William B. Yoder bought 100 Philco, holds 1124; Robert A. Seidel sold 100 RCA, holds 500; Carl J. Gilbert bought 200 Raytheon, holds 200; Charles J. Kayko bought 500 Sparks- Withington (Nov. & Dec.), holds 800. Magnavox reports highest 6-mo. sales and earnings in its history for period ended Dec. 31, first half of its fiscal 5®3.r $25,788,921 net sales, $1,814,500 estimated net earn- ings after all taxes, equivalent to $2.53 per share on 706,9 1 4 common shares outstanding. Sales for correspond- ing 1949 period were $13,776,892, profit $775,700 ($1.17). Net sales for Dec. 31 quarter were $15,575,083, estimated net earnings $1,033,878 vs. $9,451,994 sales and $727,016 profit for same 1949 quarter. Emerson’s sales and earnings before taxes for quax-ter ended Jan. 31 were about 50% higher than same period in 1949-50, president Ben Abrams told annual stockholders meeting Feb. 7. No figures were given. Mr. Abrams said current production is 15-20% ahead of a year ago, but less than fourth quarter 1950. He predicted sales this fiscal year will equal last year’s $74,188,297 (Vol. 7:2), but said we 11 have to go some” to achieve 1950’s eaniings of $6,514,716. General Instrument Corp. is offering 121,715 shares of common stock at 9V2 to common stockholders, on basis of one additional share for every 4 shares held. Each holder is also entitled to subscribe at same price for any additional shares remaining after Feb. 21. Proceeds will be used pri- marily to reimburse company for recent acquisition of additional plant facilities and equipment. Offer is under- written by group headed by Hirsch & Co., which will buy any shares not subscribed for by common stockholders. John Meek Industries Inc., for fiscal year ended Nov. 30, 1950, reports sales of $12,749,652, net profit of $343,455, or 02^ per share, compared with sales of $4,316,857, profit of $80,960 for comparable 1949 period. Scott Radio, wholly owned subsidiai-y acquired last year, for 6 months ended Nov. 30 showed sales of $1,563,128, net profit of $155,065 vs. $213, <39 sales and $87,663 loss for same 1949 period. Hytron Radio & Electronics, owner of Air King, Feb. 8 reported 1950 earnings of $3,500,000, equal to $1.75 on 2,004,892 common shares — more than fivefold increase over 1949 profits of $565,170 (89^ on 631,211 shares). Sales in 1950 totaled $41,500,000 vs. $16,226,000 in 1949. Television-Electronics Fund Inc., in declaring dividend of 15 * « « Don’t get the impression picture is entirely gloomy one. It depends on how you look at it. Consider these facts: TV-radio is in better position than most consumer durable industries. Amply- displayed ingenuity of electronics industry, as well as adaptability of its products to design changes, act in its favor. New restrictions will be aimed primarily at auto and major appliance indus- tries, where steel is biggest item — and biggest problem. But electronics indus- try, through conservation measures, can cut steel content of TV receiver by more than 50%, aluminum by as much as 70% (as some manufacturers already have done). Copper, then, is limiting item, so far as forthcoming orders affect TV- radio. Philco claims its new model uses 26% less copper than current sets, even though it has added copper speaker field in place of alnico magnet (Vol. 7:7). It isn't outlandish to assume other manufacturers can make similar savings. Since NPA is cutting back use of copper by 25%, and at same time industry can turn out sets with 26% less copper, we may assume that — barring unscheduled disturbances, super-shortages or total war — second quarter TV-radio output can equal NPA's "average quarter" of first half 1950. Production in first half 1950 was 3,000,000 TVs, 6,500,000 radios, compared to 4,500,000 TVs, 8,000,000 radios in second half. Assuming that industry saves 25% of the copper in all TVs and radios alike, and continues to produce TVs and radios in same proportion as first half 1950. we divide first half 1950 production figures by 2 to get "average base period quarterly output , " and we have : Production of 1,500,000 TVs, 3,250,000 radios as a "guesstimate" of poten- tial second quarter ouput. This compares with 2,445,000 TVs, 4,320,000 radios in peak fourth quarter 1950, and 961,265 TVs, 1,880,277 radios already turned out in first 6 weeks of 1951. :|c 4c 4c :fc Official govt, objectives for American industry as whole, as outlined in Feb. 23 broadcast by Defense Mobilization Director Charles E. Wilson: Production curtailments will be temporary — for perhaps 2 years — while U.S. expands its output of vital raw materials. By 1953, civilian production should return to 1950 *s high level, coincident with large volume of military production — because of tremendous expansion of American industry. As Mr. Wilson expressed it: "As an inevitable result of transferring metals to defense materials, we are cutting down the quantities of basic metals that are going into durable consumer goods, such as automobiles, refrigerators, washing machines, radios and TV sets. "Americans can hardly look on this temporary curtailment as a calamity. " SENATORS DON'T LIKE 'RADIATION' BILL: Military's "shotgun" bill (S. 537) to control electromagnetic radiations of all kinds (Vol. 7:2, 4, 6, 7) is definitely spiked. That much is quite clear from Feb. 21-22 hearings before Senate Interstate & Foreign Commerce Committee. A slight amendment to Communications Act, perhaps none at all, is likely upshot of whole worrisome proposal. No one questioned military's purposes, which were simply to give President emergency control of all devices capable of being used as homing devices by enemy. Communications Act already gives him this power over "radio communications," but military wanted to be sure he had it over radar or any other radiator which could conceivably be used by enemy. Senators Johnson (D-Colo.) and Magnuson (D-Wash. ) , only members attending, made it obvious from start that they felt military was actually asking for more than it really wanted or needed. "Arbitrary and unnecessary action," said Sen. Johnson. So Senators offered brief amendment to Communications Act Sec. 606(c), asked 3 witnesses for comment on it at later date. Both FCC and industry witnesses made it evident they liked Senators* proposal — if indeed any legislation at all is needed. And even witness for Defense Dept, didn’t seem unduly insistent on S. 537. (For text of Senators' proposal, see p. 11). Principal criticisms, as expressed by NAB, RTMA, Civil Defense Administra- tion, International Assn, of Fire Chiefs; (1) S. 557 would give President power to act at almost any time to control almost any device — rather than restricting him to "proclaimed emergencies" and devices actually of possible use to enemy. (2) Duplication of FCC's role of control would be possible — with President able to delegate sweeping powers to military. Civil Defense Administration, or any other agency of his choosing. (3) Literally billions of devices (actually anything radiating from 10 kc to 100,000 me), even if they can be detected only few feet away and are obviously of no use to enemy, would be subject to direct control at any time. (4) Enemy has far better navigational and homing tools at his command any- way, e.g., radar, celestial navigation, Loran. Witnesses at hearing were; Maj . Gen, F. L. Ankenbrandt, Air Force communica- tions chief; Comr. George Sterling and Curt Plummer, FCC; Dr. W. R. G. Baker and David Smith, RTMA; Judge Miller, Neal McNaughten and Ralph Hardy, NAB; Herbert Friede, International Assn, of Fire Chiefs. ♦ * * * ! I 1 I i Revealing sidelight of hearing came in questions propounded to Philco's David Smith by Sen. Johnson. Departing from purposes of hearing. Sen. Johnson asked; "Are you opposed to giving FCC authority over devices causing interference, aside from the question of devices useful for homing?" He was interested in oscillator radiation problem (Vol. 7;4). Smith said he didn't know legalities, but pointed out that FCC and industry have always worked together to clean up low-power radiations of that type and that considerable success has been achieved. "Well," said the Senator. "I think someone ought to have power to make manu- facturers produce equipment with low radiation. The law ought to be clear on that." After hearing, we asked Sen. Johnson if he thought that legislation is needed on the matter. "I don't know," he said, "that's up to the technicians. I'm asking questions, trying to find out." CAPACITY GROWS IN SPITE OF SHORTAGES: Great post-war expansion of electronics industry, almost entirely TV-fostered, continues at remarkable clip. In last 3 months alone, we've reported 50-odd projects started or completed. Apparently, manufacturers are betting either that (1) military demands will increase faster than civilian output will shrink, or (2) it's best to get plant capacity now, even if lull does develop in civilian-to-military shift. GE seems most active of all, building plants in Auburn, Utica, Buffalo and Hudson Falls, N.Y. , Owensboro, Ky. , Toronto, etc. Most-recently announced is $15,000,000 project in Utica (see p. 9). And v.p. Dr. W. R. G. Baker tells us there are more in the works. RCA, Westinghouse , Philco, Raytheon, dozens of others, have sizeable programs under way. "Military work" is announced purpose of some expansions, yet many companies simply say they need more civilian capacity — largely TV and its components. Manufacturers' own initiative, not govt, prodding or assistance, is prompt- ing most construction. NPA and Munitions Board are frankly dubious of expansions to take care of military production. Says one official; "There's plenty of capacity in components useful for both civilian and mili- tary production — under the present military program. Facilities are short in only a few instances — for highly-specialized components. "It's something of a paradox that manufacturers urge release of materials for civilian production to keep their working forces together until military orders - 4 - are large enough, and at the same time are expanding facilities and personnel." Such govt, financial assistance and Inducements as 5-year tax amortization, etc., are currently rare in electronics industry. One NPA official puts it this way; "We're going slow until we know more about the possibilities of converting existing facilities to military production. Here you have an industry which pro- duced some 20,000,000 TV and radio sets last year and is now getting less materials for civilian production. Suppose we rushed in and granted a lot of 'certificates of necessity' to write off new plants in 5 years? Wouldn't our faces be red if it turned out that these companies didn't have enough business to keep existing plants in production, let alone new ones?" So DPA has granted very few certificates of necessity, although NSRB author- ized some earlier. About 80-100 applications are pending, but Govt, seems to feel that many are filed simply because companies "have nothing to lose." Only instances of Govt, inducement to expand are in components which have little or no peace-time sales value — principally special-purpose transmitting and receiving tubes. Example ; A big World War II radar producer suffered heavily trying to find peace-time sales, keep its special-purpose machinery going. Now, military wants company to gear up again, but latter is naturally reluctant to invest heavily in such equip- ment. So Govt, grants certificate of necessity, even buys equipment (but retains ownership) for company use. Processing of applications has been on something of a catch-as-catch-can basis, but agencies expect to smooth it out shortly. NPA's Facilities and Construction Bureau, under Frank R. Creedon, refers ap- plications to agency's electronics or communications divisions and to various mili- tary departments, for approval or rejection, then passes them to DPA for final ac- tion. Up to now, military action hasn't been coordinated. Soon, however, all mili- tary recommendations will funnel through single office at Munitions Board. Mr. Creedon' s staff includes assistant William R. Davlin and division direc- tors John L. Haynes (building materials), R. R. Britton (construction controls), Harvey M. Harper (loans), Ross A. Gridley (tax amortization). WAR ORDERS REGIN PICKING UP WEIGHT: Speed-up in military procurement is finally being felt by electronics industry. But because industry is so vast, impact on its $3 billion TV-radio produc- tion potential is scarcely noticeable. Nevertheless, contracts are going out, and names of some companies which have been strangers to procurement lists are beginning to appear. Signal Corps sent out $500,000,000 worth of "letter orders" during first 3 weeks of January, authorizing research and development prior to submission of bids for 300 items of equipment. This is the breakdown: Radio-communications , §237,000,000; wire-cable, $119,000,000; electronics- rad^, §35,000,000; telephone , §22,000,000; photo . §7,000,000; other. §39,000,000. Step-up in orders is reflected in long list of Signal Corps contracts on p. 10. This listing, prepared by Commerce Dept., doesn't include subcontracts or classified (secret) orders. Thus it reflects unknown percentage of total. * * * * Civilian production must continue to be main business of TV-radio industry. RTMA made survey in mid-January of 36 firms with 138,000 employes, which produced 75% of dollar value of TV-radio equipment in 1950. Results were turned over to Munitions Board. From non-military govt, source, we learn that of these 36 firms; Thirteen, or 36%, had no defense contracts at all. Twenty-one, or 58%, had orders totaling less than 5% of their 1950 volume. Two companies, or 6%, had 57% of defense contracts held by all 36 firms. And they had only 6511 employes between them. Hallicraf ters , whose communications equipment is military standby, reported Feb. 21 that it had received §8,800,000 in new Signal Corps contracts since Jan. 1, 5 bringing its total vinfilled military orders to $22,600,000. Military items will constitute 11% of Hallicraf ters * production during first quarter, and v.p. Raymond Durst estimates figure will climb to about 25% in April and May. Magnavox reports military work at about 2%. Emerson's Ben Abrams recently said his company's defense output was of "minute proportions." This week, however. Signal Corps announced Emerson had received $4,600,000 worth of contracts for radios and detectors. Electron tube makers are in better position than set makers in regard to war work. Just as civilian demand for their products is at all-tinle high, so is military demand heavy. Hytron, for instance, says its defense work now amounts to 10% of output, expects it to climb to 25 or 50% by August. Network Accounts: Ralston Purina Co. (Instant Ral- ston cereal, Wheat Chex, Ry-Krisp, Rice Chex) March 11 starts Pets and Pals, children’s participation program, on ABC-TV, Sun. 4:30-5, thru Gardner Adv. Co., St. Louis . . . Next Jack Benny Show on CBS-TV is March 18, Lucky Strike sponsoring Sun. 7:30-8 in lieu of regular This Is Show Business . . . Recently announced changes in NBC- TV’s Saturday Night Revue include new sponsors Bymart Inc. (Tintair) and Lehn & Fink Products Corp.; cancella- tions by Snow Crop Marketers, Campbell Soup Co. & Wild- root Co. New line-up on show: Lehn & Fink 8-8:15 seg- ment; Bymart 8:15-8:30; Crosley March 10 moves to 9- 9:30; Minnesota Mining & Mfg. Co. (Scotch tape), Benrus Watch Co. & S.O.S. Co. remain as sponsors of 9:30-10; Swift & Co. March 10 takes 10-10:30. Only segment un- sold is 8:30-9 . . . Wildroot Co. (hair tonic) April 18 moves Charley Wild, Private Detective on CBS-TV from alt. Fri. 9-9:30 to Wed. 9-9:30; Bymart Inc. (Tintair) April 21 shifts its Somerset Maugham Theatre to Sat. 7:30-8 . . . March 5 is starting date of Colgate-Palmolive-Peet (Fab) sponsorship of Susan Peters Show on NBC-TV, Mon.-Fri. 3-3:15, thru William Esty Co., N. Y. . . . Starting April 2 is new Lever Bros. (Surf) Hawkins Falls on NBC-TV, Mon.-Fri. 5-5:15, thru N. W. Ayer & Son, Philadelphia . . . New Cluett, Peabody & Co. alternate week sponsorship of Holiday Hotel on ABC-TV, Thu. 9-9:30, starts March 22. % 4c Lexington, Ky., had 3000 TV sets, as of last Septem- ber, even though 70 miles from Louisville, 80 from Cincin- nati, according to study by Elmer G. Sulzer, head of radio arts dept., U of Kentucky. All TV films would be censored by Ohio education dept., according to bill introduced into State legislature last week. Bill brings TV films under same category as theatre films. Several weeks ago. New York attorney general ruled that State legislature could authorize New York Board of Education to censor TV films, as it does theatre films (Vol. 7:4). NLRB will conduct election March 7 among 700 CBS office workers to determine which union, if any, they want to represent them; already qualified for ballot are News- paper Guild of N. Y. (CIO) and Radio Guild, Distributive Processing & Office Workers of America (independent, whose contract with network expired Jan. 31), with Office Employes International Union (AFL) yet to decide whether to participate. Directory of college radio & TV courses (33 pp.) has just been issued by Federal Security Agency’s Office of Education, Washington 25, D. C. In last 2 years, accord- ing to editor Gertrude Broderick: number of schools has increased to 420; schools offering TV programming courses increased from 33 to 60, TV engineering courses from 28 to 40. TV workshops are featured by 18, radio workshops by 284. Degrees in radio are offered by 65 institutions. Will wages be unfrozen in broadcasting, publishing and entertainment industries? Congress specifically ex- empted these fields from price controls, so their employes maintain it’s unfair to freeze their wages (Vol. 7:4, 7). Wage Stabilization Board had scheduled hearing on this question for next week, but — like all WSB activities — it’s been indefinitely postponed because of labor members’ bolt from board. Educators’ chances of getting TV channel reservation (particularly in vhf) are still up in air, since there’s no indication FCC has reached any decision. And announce- ment of new vhf-uhf allocation plan (Vol. 7:5), including educational reservation if any, isn’t likely until after re- turn of Chairman Coy first week in March. Educators are making public-relations hay, meanwhile i! while public’s memory of FCC hearing argument is still !j fresh, encouraging letters-to-FCC, etc. Comr. Hennock is making speeches every few days — most recently in Wash- ington, Philadelphia, East Lansing, Mich., Atlantic City. Telford Taylor, educators’ counsel during hearing, " made energetic pitch during ABC’s America’s Town Meet- i: ing of the Air Feb. 13. NAB’s Ralph Hardy marshalled ;i industry arguments. Others on program were New York ! U’s Charles Siepmann, of FCC Blue Book fame; Robert ; Landry, editor of Space & Time; Edwin Falk, TBA and Ii DuMont counsel, and U of Illinois’ Dallas Smythe, ex-FCC, II laid educators’ case before Chicago TV Council Feb. 14. Stations are obviously stepping up educational pro- I gramming and publicity, too. NBC-TV is probing Opera- 1 tion Frontal Lobes (Vol. 7 :2) plan whereby netwoi'k pre- empts one week out of 44 from various sponsors in order to present public service programs. Supervisor of pro- grams is Davidson Taylor, ex-CBS, operating under TV v.p. Pat Weaver. Network’s WNBT, New York, will have own series, too, featuring museums, music appreciation, YMC A- American Jewish Committee films on brotherhood, etc.. Police Athletic League juvenile talent, etc. Baltimore stations resemble a campus nowadays, what with WAAM sponsoring seminar on “Career Opportunities in TV,” WBAL-TV planning progx'ams presented by 12 colleges, all 3 stations (including WMAR-TV) supplying facilities for Johns Hopkins TV workshop course. Other workshop activities: CBS and Fordham U have tieup providing 3-months training, in university course, for network’s personnel with aptitude in TV directing. Newark’s WATV announced workshop arrangement with Seton Hall College, South Orange, N. J. Panel discussion of education and TV, which included Comr. Hennock, other educational prime movers, plus TBA counsel Thad Brown, is featured in Feb. 26 New Republic. Half-hour tape recording of discussion is being distrib- uted for broadcasts over educational AM & FM stations. - 6 - Stslion Accounts: Snow Crop Marketers is switching from network nighttime (NBC-TV’s Saturday Night Revue) to local daytime TV with half-hour filmed show to be placed in about 40 cities one or two afternoons weekly, starting next month, thru Maxon Inc., N. Y. . . . Curtis Publishing Co. which has been sponsoring Tex & Jinx McCrary New York Closeup on WNBT, Wed. 6:30-6:55 is buying other TV markets for show, thru BBDO . . . Latest merchandising stunt, cashing in on Hopalong Cassidy pop- ularity, is children’s savings clubs being worked out by Bar 20 Inc., Chicago, franchise holder, with promotional package being assembled by Bozell & Jacobs. Individual banks will be franchised in each city, with children being encouraged to join thru commercials on 63 TV stations carrying Hoppy movies . . . Los Angeles Evening Herald & Express will use series of filmed TV messages to pro- mote $35,000 circulation contest, thru C. B. Juneau Inc. . . . Getting viewers to tell about their most prized possessions is tied in with display of rare jewels and commentary on them by authorities in new Gem Session on WTOP-TV, Washington, Mon. 7-7:15, sponsored by Charles Schwartz & Sons, jewelry store, thru Kronstadt Agency . . . Vim Television & Appliance Stores, New York chain, March 10 will start new show on WCBS-TV, starring violinist Flo- rian ZaBach, Mon. 11-11:15, thru Frederick-Clinton Co Wine Growers Guild (Guild wine) March 2 starts new filmed series Front Page Detective on KTTV, Los Angeles; WABD, New York; WXEL, Cleveland; WGN-TV, Chicago; KGO-TV, San Francisco; WCAU-TV, Philadelphia, thru Guild, Bascom & Bonfigli Adv., San Francisco . . . Among other advertisers currently reported using or preparing to use TV: Fisher Bros. Co. (Fisher foods), thru Griswold- Eshleman Co., Cleveland; Glenwood Range Co. (ranges, washers, refrigerators), thru John C. Dowd Inc., Boston; Drake America Corp. (food importers), thru Colman, Pren- tis & Varley, N. Y.; G. R. Kinney Co. (Educator footwear), thru Gordon Baird Associates, N. Y.; Apple Distillers Ltd. (Apple Vat 36), New York, thru Ben B. Bliss Inc., N. Y.; U. S. Fifth Army (recruiting), thru Schoenfeld, Huber & Green Ltd., Chicago; Oakite Products Inc. (cleaners), thru Calkins & Holden, Carlock, McCilton & Smith, N. Y.; Parsons Ammonia Co. (Parsons’ Sudsy ammonia), thru Brisacher, Wheeler & Staff, N. Y.; Boyer Bros. Inc. (Mallo- Cup candy bar), thru Hening & Co., Philadelphia; General Foods (Post Krinkles), thru Foote, Cone & Belding, Chi- cago; Southern Biscuit Co., thru Lindsey & Co., Richmond; National Textile & Chemical Laboratory (Perma Starch), thru Henri Hurst & McDonald, Chicago; Prince Macaroni Mfg. Co., thru H. C. Rossi Adv., N. Y.; Seapak Corp. (frozen seafoods), thru Gordon Baird Associates, N. Y. ♦ * * * “TV Heaven,” where video fan Virgil H. Ruppenthal pulls in 15 TV (and 60 FM) stations, was subject of Feb. 11 illustrated Sunday AP feature. “Heaven” is $10,000 “shack” built by Cumberland juke-box distributor Ruppen- thal atop Dan’s Rock (elev. 3000 ft.), highest point in western Maryland. Where co-channel interference occurs, Ruppenthal brings in the station he wants by means of directional antennas placed on opposite sides of a boulder, which blocks out unwanted signals. He claims perfect re- ception on 6 channels, with other 9 giving “perfect recep- tion only about 95% of the time.” Ruppenthal’s “Heaven” is about 190 air miles from Philadelphia, 170 mi. from Wilmington, 160 mi. from Richmond, 135 mi. from Lancas- ter, 130 mi. from Baltimore, 100 mi. from Washington, 85 mi. from Pittsburgh, 50 mi. from Johnstown. FCC last year ran 400 me. tropospheric tests from Dan’s Rock. Criticizing Big Ten TV ban, Ohio House of Representa- tives Feb. 14 passed 39-36 resolution demanding Ohio State U permit televising of all football — at home and away. Telecasting Notes: Films “actively booked in the past year” by theatres are to be sponsored on KLAC-TV, Los Angeles, by Hoffman Radio Corp. Among them: The Macomber Affair, with Gregory Peck, Joan Bennett, Rob- ert Preston; Girl from Manhattan, with Dorothy Lamour, Charles Laughton, George Montgomery; The Crooked Way, with John Payne, Ellen Drew, Sonny Tufts; The Chase, with Robert Cummings, Michele Morgan, Peter Lorre . . . Daytime New York Yankee games, Ballantine- sponsored, will be carried by both WABD and WPIX, but only by latter at night — DuMont having night time net- work commitments. WPIX has 5-year contract to carry games, beginning next year, since DuMont dropped option. WPIX will also carry Giants (Chesterfields) for third con- secutive year . . . Charles-Walcott fight, in Detroit March 7, 10 p.m., will be sponsored on CBS-TV by Pabst, which did same for Charles-Louis fight in September and LaMotta- Robinson bout Feb. 14 . . . Hooper plans expansion to “all major cities” of city-by-city TV & radio program ratings, giving monthly reports, most ready by October . . . Inter- change of ideas by 14 southern TV stations, via monthly confidential letters, is proposed by Lee Ruwitch, WTVJ, Miami. Similar plan is used by Assn, of Independent Metropolitan Stations (AM) . . . Tv/o new studios, one with model kitchen, have been completed by WTMJ-TV, Mil- waukee, as part of $200,000 expansion program. Station now has 4 studios and will soon finish 2-story, 86x35-ft. addition which is to be used for TV scenery storage . . . Telecasts of Kefauver Committee hearings on crime in Detroit last week, over WWJ-TV and WJBK-TV, had bar- tenders reporting attendance rivaling that achieved by World Series . . . Orpheum Theatre, Los Angeles, is pick- ing up regular 10 p.m. TV newscast from KLAC-TV, pro- jecting it on screen via theatre-TV equipment; commercials remain . . . Novel survey by New York’s WOR-TV com- prises station breaks asking viewers to write in and ex- press AM preferences — ^what they’d like to hear on radio and when . . . KTSL, Los Angeles, Feb. 20 raises base hourly rate from $600 to $900, one-minute announcements from $120 to $190 . . . WCAU-TV, Philadelphia, March 1 raises base rate from $900 to $1200, announcements from $150 to $220. * * * * TV film will be $10,000,000 business in New York area alone this year, in opinion of Robert L. Lawrence, v.p. of Jerry Fairbanks’ East Coast branch, while Fairbanks him- self ventures the belief that 1200 hours of TV film will be shot this year — twice output of entire Hollywood movie industry. TV’s appetite for film, even with mere 107 sta- tions, is well-covered in Feb. 12 Newsweek which illustrates success of films by pointing out that Amos ’?i’ Andy will start (June, CBS-TV) on film, that Fireside Theater (NBC-TV) is third most popular TV show, that Groucho Marx (NBC-TV) gains greatly in film editing, etc. Such successes, magazine says, have even encouraged some to deprecate need for coast-to-coast networks. But growth of films-for-TV has been rough: “Since the TV Neander- thal days of 1946, upward of 800 promoters had tried to set up the business of making TV film. Most of them had closed up shop with the first rent bill. For movies made by Hollywood standards were at first more expensive than live shows.” Denver-San Francisco microwave link of AT&T’s transcontinental TV-telephone network, comprising 37 stations, is now under construction. AT&T reported that whole Omaha-San Francisco hookup should be ready for telephone by summer, for TV late this year. Stations aver- age 32 miles apart in last leg, with highest on 10,000-ft. Mt. Rose, near Reno. TRADE WARY OF CONSERVATION PUDLICITY: TV merchandisers are getting apprehensive at publicity given Philco and RCA "conservation" sets. Most news stories carried words like "austerity" and "ersatz," left worried frowns on brows of retailers. They're afraid public, which reads while it runs, will shy away from such sets, make it that much more difficult to sell. But, from one large distributor, who went through World War II selling re- frigerators, ranges, whatever appliances he could get his hands on, comes these reassuring words ; "If they haven't got TV and want it, it doesn't make the slightest bit of difference what the set looks like or what's inside. They'll buy, as long as the picture is good." Same man made another observation on subject of material-saving sets. It's possible, he thought, that big manufacturers may have to take a back seat for a short spell — when they've sold out their pre-conservation models. The public, he figures, will go for "pre-war" sets, will begin buying off-brand names. But, as soon as all manufacturers are on same "conservation-savings" foot- ing, back will come public for brand name. APRIL I-EONSERVATION DEADLINE: Fruits of the laboratory and drawing board — con- servation of critical materials — will be harvested at the TV-radio marketplace in heavy measure beginning April 1. Electrostatically-focused picture tubes (Vol. 7:1, 3-7) will be heart of new product turned out by industry's giants, RCA and Philco, starting in April. Both companies have announced this, along with other substantial material-saving measures already taken or about to be adopted (see special Conservation Report, herewith). While practically all TV-radio firm.s have taken big steps in past 6 months to slash use of scarce items, most have chosen to do their conservation work in silence, lest "austerity" publicity backfire in wave of consvuner resistance. Al- though both Philco and RCA have emphasized that conservation won't degrade set — indeed, Philco demonstration helped bear out contention that new set is improvement — stories in newspapers and even trade press have made public "ersatz" conscious. Good example of "silent approach" is General Electric, which revealed — after Philco announced last week (Vol. 7:7) its forthcoming sets would be transform- erless — that GE has used similar selenium rectifier-voltage doubler circuits in lieu of power transformers in its TV sets for more than 2 years. General Electric told its district managers this week that GE's "continuing program of simplification. .. conforms with NPA recommendations that TV-radio manu- facturers reduce the use of critical materials required for defense needs. "Recent trends in the industry toward the development of transformerless chassis, and the statements that these sets appear to give better performance," the GE memo says, "point up the fact that GE pioneered the development of such a set more than 2 years ago, and has been making refinements continuously, based on field experience with the simplified circuits. "Today's [GE] chassis, compared to a conventional transformer-type receiver of our design, uses 37% less copper and 78% less silicon steel. . .Further studies in this direction are continuing, and look promising." Practically every set on the market today is a "conservation model" — in the sense that it uses less of the critical metals than its counterpart did 6 months ago. Three months from now, the industry's product will use even less, a large proportion using electrostatically-focused picture tubes. Three big tube makers, and probably others, are now ready to produce new 8 type CR tubes. DuMont and RCA are on verge of production, can start any time — and both feel that entire industry will switch to electrostatics during second or third quarter. Sylvania, getting set for electrostatic production, expects more than half its picture tube output during second quarter to be electrostatic. With new NPA restrictions on durable goods industries going into effect in second quarter (see p. 1), April 1 should be target date for maximiim conservation effort. After that date, the more material a manufacturer saves per set the more sets NPA will let him turn out. HIGHER PRICE LEVELS SEEN UNAVOIDABLE: Prices can go only one way — up. Every factor in sight prompts industry's ablest merchandisers to that conclusion, despite fact today's prices are already 35% greater than those of last summer and fall. Many top producers agree with Crosley's savvy William Blees, v;ho addressed San Diego appliance meeting last week and stated flatly; "TV receivers are going to retail around $400 instead of $199 or $249, and it's going to be extremely difficult to sell them. We are never going back to cheap stuff." Here's reasoning of the market experts; (1) Prices go up when volume goes down, and materials limitations can't help but cut voliune, despite even most ingenious conservation measures. (2) Costs of labor and materials are going up — no doubt of that. (3) Excise tax increase is almost a certainty — even though it may not be full 15% hike recommended by Treasury Dept. (4) Conservation-substitution measures mean higher production costs, despite use of less materials — more labor, more processing. As one manufacturer puts it; "You have to do it the hard way. " And forthcoming govt, price controls, they say, just won't hold the line at present levels. Meanwhile, business is good. Manufacturers continue producing at high rate, distributors taking all they can get, retailers selling well — few serious kicks. DuMont's January sales were 35% above same month last year. Dr. Allen DuMont told New York Security Analysts this week. Later, he told us January sales were "slightly above" December, his best 1950 month. Hoffman Radio's H. Leslie Hoffman ventured that production will be 20-25% greater, through July 1, than corresponding 1950 period. But after that, he said in speech at San Francisco Winter Market last week, look for a radical drop. He fore- saw 4,000,000 sets for year. We know another, more sanguine manufacturer who feels certain TV output will reach 5,500,000 this year. Radio production will suffer even more, Hoffman predicted, since he expects more and more manufacturers to concentrate critical materials on TV. He has already entirely eliminated radio production, himself. How near right they are may best be judged by set production for second week of February (ending Feb. 9), reported by RTMA: TVs 154,774 (4853 private brand), radios 522,300 (198,700 home, 104,284 auto, 19,316 portable). This compares with first February week's 167,315 TVs, 322,855 radios (Vol. 7;7). Yet second February week includes 4 days lost by Philco, one by Admiral, due to rail strike. Year's total TVs to Feb. 9; 961,265. Labor doesn’t like excise tax hikes, proposed by Treas- ury Dept. (Vol. 7:6). Officials from AFL, CIO, UEW, ap- pearing before House Ways & Means Committee this week, told congressmen excise tax fell most heavily on low in- come groups, plumped for increased corporation taxes. Meanwhile, RTMA tax committee was named, comprising following in addition to A. M. Freeman, RCA, chairman: Max Balcom, Sylvania; T. M. Blake, Littelfuse; John W. Craig, Crosley; J. J. Frendeis, Hallicrafters; B. L. Graham, DuMont; Raymond Herzog, Emerson; G. Richard Fryling, Erie Resistor; S. Kaplan, Zenith; George R. MacDonald, Motorola; R. E. Norem, GE; W. Myron Owen, Aerovox; Maurice G. Paul Jr., Philco; John S. Sturgeon, Magnavox. Trade Personals: Howard Halbert, secy, of Kaye-Hal- bert, has resigned, with his stock interests being repur- chased by corporation. Mr. Halbert’s future plans are in- definite . . . Rinaldo DeCola named director of engineering for Admiral, succeeding Robert Jones, on leave of absence in Arizona . . . Charles R. Lunney, ex-Westinghouse Elec- tric Supply Co., named asst, advertising mgr., Belmont (Raytheon) . . . GE electronic dept, engineers Kenneth Fowler and Harold B. Lippert, together with 5 others got Charles A. Coffiin awards for work of outstanding merit during 1950; Fowler and Lippert got award for text of TV service course . . . Harry Van Rensselaer, sales mgr., elec- tronic parts div., DuMont, recalled to duty with Air Force. Topics & Trends of TV Trade: Industry probably couldn’t sell 10,000,000 TV sets this year, even if it could make them, according to market analysis by top-level Na- tional Industrial Conference Board in current issue of its Business Record. Economict Shirley S. Hoffman reasons: “If the TV cutback should be 35%, a rough average of the estimates, there will be about 5,000,000 sets made this year. There are about 26,000,000 families within range of TV service today. Since the FCC freeze [is] still in force, it is unlikely that the market could be expanded in 1951. “About 10,500,000 of these families now own sets. That leaves about 15,500,000 who still have not bought a TV set. However, a sizeable proportion of these families may not be able to buy sets at current prices [and many] live in areas where there is only one station telecasting a limited number of programs . . . “Even in the heavily populated metropolitan areas having a relative abundance of TV programs, there are many families that are nevertheless disinterested in a set. Credit controls are also pulling some potential buyers out of the market. “So, of the 15,500,000 families within telecasting range who still have not been ‘sold,’ a good many are not in the market to buy sets either because they cannot afford one or are not interested. All things considered, an output of 6,000,000 sets, together with a portion of retailers’ and manufacturers’ stocks, which total about 1,000,000, might satisfy a substantial segment of this year’s demand.” Note: Foregoing reasoning is clear enough, but 35% cutback figure seems plucked out of hat, replacement and second-set market is entirely ignored, and estimating “those who can’t afford” and “those disinterested” among non-set owners would be sheer guesswork. I Because it found itself overpriced in today’s market, Crosley Feb. 21 cut prices of 11 TV sets from $40 to $60 each. Prices include excise and warranty, as did previous lists. Sets affected include 16-in. round consolette, cut from $399.95 to $359.95; 17-in. consolette, from $409.95 to $369.95; 19-in. console, half-doors, from $519.95 to $479.95. New 20-in. sets will replace 19-in. models, but prices re- main same. Majestic distributors and dealers ordered $12,000,000 worth of TV-radio at last week’s meeting in New York, according to president Leonard Ashbach. He said sets would be delivered over next 4 months, that sufficient ma- terials and facilities were available to handle orders. Paradox of excellent TV trade is distress selling here and there (Vol. 7:7). New York’s Vim chain, in New York Times Feb. 18, advertised 16-in. table model at $150, 19-in. console $200. Ad also showed 10-in. console $80, 12%-in. table $140. Trade Miscellany: Frank A. D. Andrea, veteran TV- radio manufacturer, subject of “Business and Finance Leaders” personality sketch in Feb. 13 New York Herald Tribune . . . Air King appoints Bennett, Walther & Mena- dier Inc., New York, as ad agency handling its TV-radio and wire recorder lines . . . DuMont launches 2-month ad campaign in 8 national magazines, in newspapers in 34 major TV areas, in trade papers, cued to distributor- dealer drives, thru Campbell-Ewald . . . Sparton running 4-color page ads in Saturda.y Evening Post & ColliePs, beginning in March, running through 1951. Sales of retail TV-radio & household appliance dealers zoomed to record $3,493,000,000 last year, 25% greater than previous high in 1949, Census Bureau reports in I monthly Trends in Electrical Goods Trade for December 1950. War-buying wave in August made it biggest month — $386,000,000. December’s $358,000,000 was 33%c over ! November, 2% over December 1949. Financial & Trade Notes: DuMont sales for 1950 topped $75,000,000, Dr. Allen B. DuMont revealed Feb. 20 in talk to New York Society of Security Analysts. This compares with $45,267,000 sales in 1949. Net was about $7,000,000 ($3 a share), more than double 1949’s $3,269,- 880 ($1.49). DuMont Television Network losses in 1950 were $400,000 less than those in 1949, Dr. DuMont re- ported. Working capital at end of 1950 was $17,200,000, net worth $23,000,000. Federal income and excess profits tax absorbed about 48% %o of pre-tax net income of $13,500,000, he said. Under present law, 1951 taxes would amount to about 58%% of income before taxes. Dr. DuMont said company’s excess profits tax would have been about $1,250,000 more if it weren’t for growth clauses in excess profits tax law (Vol. 6:43-52). Company’s excess profits tax credit is above $8,000,000 before regular corporation taxes, he said. * * * -ic Allied Electric Products Inc., including CR tube manu- facturing subsidiary, Sheldon Electric, reported sales of $6,502,451 for 6 months ended Dec. 31 vs. $1,571,140 for same 1949 period. Net earnings were $552,634 (84c‘ on 625,141 common shares) vs. $34,490 (!<}■ on 500,000 shares). Kaye-Halbert reports net income of $147,678 (48<* per share) for 3 months ended Dec. 31. No com.parable 1949 figures are available. Arvin Industries, in preliminary report, shows 1950 net profit of $3,605,126 ($4.04 per common share) vs. $3,093,840 ($3.47) in 1949. Dividends: Westinghouse, 50^ payable March 1 to hold- ers Feb. 13, up 10(f over 1949 quarterly rate; Stromberg, 50«‘ payable April 1 to holders March 10; CBS, 40f* payable March 9 to holders Feb. 23; Hytron, 10 « * Copper stockpiling has been cut 50% by Munitions Board, Rep. Patterson (R-Conn.) was told Feb. 15 by Muni- tions Board chainnan John Small. He said reduced rate of stockpiling will continue indefinitely, subject to review every three weeks, and “should materially assist the indus- tries suffering from inadequate supplies of copper.” Trouble for electron tube industry looms if tungsten supply situation is not eased soon, filament wire makers advised NPA Feb. 20. Some 75% of U. S. tungsten supply has been cut off with loss of Far Eastern sources. Among industry representatives meeting with NPA were: J. B. Merrill, Sylvania; Jack Gelok, Westinghouse; W. P. Kiei’- nan, Elmet Div., North American Philips. Lead and antimony, important ingredients in solder, Feb. 16 were placed under inventory controls in NPA Orders M-38 and M-39. Orders limit inventories of the 2 metals or materials containing the metals to 60 days’ supply or a “practical minimum working supply,” which- ever is less. Copper and zinc — scarce metals essential to many electronic parts — will probably substitute for nickel-bear- ing chrome-plated stainless steel, which is even scarcer, to keep new autos resplendent with glittering trim this summer, Ray Vicker reports in Feb. 23 Wall Street Journal, Concern over supply of Kovar, a cobalt alloy essential to manufacture of power tubes for broadcast, industrial and X-ray uses (Vol. 6:47), was expressed by members of X-Ray Equipment & Accessories Industry Advisory Com- mittee, meeting Feb. 19 with NPA officials. Committee members said frequent production bottlenecks due to lack of small components — such as resistors, relays and circuit breakers — threaten to delay X-ray equipment production. GE, Westinghouse and Machlett Laboratories are among 9 firms represented on committee. Munitions Board is publishing Munitions Board Prog- ress Reports, a periodic review of unclassified information concerning military procurement and production programs of interest to industry. You can get on list to receive Reports by sending request to Munitions Board, Progress Reports Div., Pentagon, Washington 25, D. C. To encourage exploration for strategic minerals by private firms, $10,000,000 has been allocated by Defense Production Administration. Exploration program will apply to these electronically-important metals, among others: Antimony, chrome, cobalt, columbium, copper, lead, mercury, mica, miscellaneous ferro-alloy ores, molyb- denum, nickel, tungsten, zinc. In another development re- lating to materials. Magnetic Metals Co., Camden, N. J., manufacturers of magnets and magnet cores for elec- tronics-communication equipment, announced expansion of its plant to provide 15,000 sq. ft. additional floor space and permit production at 6% times pre-Korean level. Ap- proximately 40% of firm’s business is now defense. * ♦ ♦ ♦ Among unclassified military contracts for electronics and related equipment (more than $100,000) announced by Commerce Dept, for 2 weeks ending Feb. 21 : Through Sig- nal Corps, Philadelphia — Federal Telephone & Radio, $8,- 686,327, transmitting and receiving equipment and tubes; Emerson, $4,617,927, radios, detector sets; J. & H. Smith Mfg. Co., New York, $1,952,014, antenna equipment; Presto Recording Corp., $1,808,562, sound locating sets; ARF Produtcs, $1,659,500, radio relays, signal genei'ators (Motorola is subcontractor) ; Hallicrafters, $1,250,000, radios; GE, $1,000,000, rawin sets (meteorological); Rau- land Borg, $800,000, radio terminal sets, relay sets, trans- mitters; Raytheon, $688,710, radios, tubes;Barker & Wil- liamson, $500,000, radios; Molded Insulation Co., $128,843, radiosondes; Westline Electronics, Los Angeles, $136,940, crystal units; Service Corp. of America, New Hyde Park, N. Y., $247,500, radio sets; Triplett, $472,313, tube testers; Midland Mfg. Co., Kansas City, $100,000, crystal units; Radiomarine Corp., $130,000, radios; Sylvania, $268,000, tubes; Chatham Electronics, $188,000, thyratron tubes; Machlett, $132,000, thyratron tubes; RCA, $211,748, power supplies, repair of radios; Minshall Estey Organ Inc., Brattleboro, Va., $100,000, public address sets; Johnson Service Co., Milwaukee, $572,400, radiosonde modulators; Garod (Majestic-Wilcox-Gay), $100,000, radiosondes; Lewyt, $300,000, radios; Tele King, $400,000, radios; Espey, $300,000, radio relay sets; W. L. Maxson (Langevin), $200,- 000, power supplies; Crosley, $400,000, radios; Kollsman Instrument, $100,000, radiosondes (increase in unit cost); Brunswick Radio & TV, $150,000, control boxes; Cornell- Dubilier, $150,000, power supplies. Through Navy Elec- tronic Supply Office, Great Lakes, 111. — Raytheon, $901,150, tubes. Pacific Mercury TV Mfg. Co. announced $731,105 in military contracts for glide-path receivers. WITH AM-FM REPORTS 9 CONNECTICUT AVE. N.W. / WASHINGTON 6, D. C. • TELEPHONE MICHIGAN 2020 Conservation Report February 24, 1951 Wonder Workers ol TV Conserving Critical Materials - Two Approaches Reports on Materials Conservation Programs of RCA and Philco Ofifering Full Data to Entire TV-Radio Manufacturing Industry For News Reports and Comments, see Television Digest Newsletters, Vol. 7:6-7 Editor’s Note: For some months the industry has been buzzing with reports of amazing savings of critical materials through new techniques in conservation and substitution. So successful have the efforts been, that one of the top govt, mobilizers has said: “These electronic fellows are the most ingenious workers of miracles I've ever seen,” and to suggest that other crisis-affected industries might well profit by their example. Two leaders, RCA and Philco, have spelled out their conservation programs, offering their findings to all other manufacturers without restrictions. Philco actually demonstrated a TV receiver that not only saves critical materials but, its developers say, performs better than current models (Vol. 7:7). The following are official reports — Philco’ s prepared at our request, RCA’s taken from its report on ‘Conservation of Critical Materials,’ sent recently to all set and tube manufacturers (Vol. 7:6): PHILCO’S REPORT '^WO years ago, the management of Philco Corp. initiated a long-range program of research and engineering development in television. The objective was to develop a TV receiver with improved performance at no increase in price, despite rising costs. Considerable success had been achieved toward this goal by last summer, when it became apparent that many ma- terials would become scarce because of the national emer- gency. At that time, the objective of the original program was broadened to include conservation of critically scarce materials. In recent months, Philco management has emphasized material conservation and accelerated this aspect of the development of a new television chassis design, while con- tinuing to insist on improved performance. The new Philco TV chassis, which was first demonstrated to officials of the National Production Authority on Feb. 14, 1961, is the culmination of the company’s 2-year devel- opment program. In this one phase of Philco’s extensive over-all research and engineering work in various fields of electronics, refrigeration and thermodynamics ... in the evolution of this new TV chassis . . . over 100 technically trained personnel took an active part. The result is an entirely new television receiver, which has proved its superiority in numerous field performance tests, and which also conserves many critically scarce materials. This report provides essential technical information on this new Philco TV chassis, and also presents the principal savings of scarce materials. Supplementary sections of the report indicate similar materials savings that are being achieved in the design and production of TV picture and receiving tubes, TV installation materials, and automatic record changers. Before presenting this report on the new TV chassis, however, it should be mentioned that notable savings in critical materials have already been made in current pro- duction of TV sets as compared with similar models produced during the latter part of 1950. Such savings as a smaller speaker magnet, smaller and more efficient trans- formers, lighter-gauge copper hook-up wire, and many other minor changes have made it possible already to effect the following conservation of scarce materials: (Continued on page U) RCA’S REPORT pVER since the outbreak of war in Korea, RCA engi- neers have been working aggressively to search out every possible means of saving critical materials in the production of television receivers, radios, and other elec- tronic equipment without sacrificing the company’s high standards of quality. Some of our engineering accomplishments, such as the newly designed RCA speakers which reduce alnico con- tent by 70%, brass by 90%, and steel by 35%, and the new RCA electrostatic kinescope which completely elimi- nates the use of alnico magnets, have already been passed on to the industry. These two RCA developments alone, when fully applied to the industry’s television production, will reduce the cobalt content in the average receiver by almost 90% — a savings industrywise of over 300,000 pounds of scarce alnico per one million receivers produced. Many manufacturers of sets and components have made major contributions in the conservation of scarce metals. The attached summary of conservation steps already adopted, or to be adopted shortly by RCA, has been pre- pared for your information. While many of the savings in critical materials listed by our engineers apply to the manufacture of tubes and components, and to the mate- rials used in the installation of television receivers, they nevertheless will be of interest to the industry, because when these conservation steps are applied industry-wide they will save millions of pounds of cobalt, copper, nickel, aluminum, bi'ass, steel, and other metals. Without these important savings of restricted materials already achieved, our industry could not have attained the relatively high production of TV-radio receivers during the month of January. I know you will join us in earnestly pursuing this con- servation program, not only for the resulting substantial savings in vital metals, but also to demonstrate to our government officials the industry’s resourcefulness in this time of emergency. Only by doing evei’ything possible to help itself can the industry feel morally justified in asking the help of Government agencies in supplying sufficient critical materials to permit continued production of ))eace-time products, which in turn enable us to hold together our technical skills and our trained workers until they are needed to produce electronic equipment for the militai-y services. (Continued on next page) 1 Our engineers are continuing their efforts, and as ad- ditional methods of conserving scarce metals are de- veloped we will keep you advised. In the meantime, if you have any questions on the conservation program outlined, I invite you to direct ycur inquiries to Mr. S. W. Seeley, director of our Industry Service Laboratory, 711 Fifth Ave., New York City. Sincerely, (s) Fi'ank M. Folsom. ♦ ♦ * * Report on Conservation of Critical Materials The conservation of critical material in the manufacture of receivers, tubes, and material required for installation can be approached from two separate and different view- points : (1) Reduce the use of critical material by reduction of the number of components, thereby reducing the perform- ance and quality of the receiver; (2) Maintain quality and performance by redesigning components to take full advantage of any new non-critical materials not previously used. Where this is not possible, completely redesign the components and the receiver to use the minimum amount of critical material, even though it may be necessary to add components. RCA engineers are committed to following the second approach. We believe this is imperative in order to pro- duce receivers of highest quality and performance. It is our viewpoint that it would be harmful to the industry to produce TV receivers that would affect conservation of scarce materials at a sacrifice in quality. We have made important savings of critical material and, at the same time, have continued production of high quality tubes and receivers. This is particularly import- ant in that it permits keeping trained employes who will be needed to design and manufacture armed services equipment when needed. The following tabulation is a summary of the savings based on production of 1,000,000 receivers. The first column shows savings in present production of 17-inch TV receivers. The second column shows the material sav- ings which we expect will result from the application of electrostatic focused kinescopes to these receivers. Material Saved Compared to Second Half 1950 Typical lG-17" Television Set Pounds saved per Pounds saved per 1,000,000 sets. 1,000,000 sets — Present Production electrostatic Material based on 17" TV set focused 17" TV set Alnico V Speaker 72,000 lbs. 72,000 lbs. (Saving based on 2.15 oz. magnet 8" table model speaker) Alnico V Speaker 135,000 135,000 (Saving based on 3.16 oz. magnet 12" console speaker) Alnico V Focus Magnet 310,000 (Based on 5 oz. magnets) Alnico V Beam Bender 4,400 4,400 Steel In 12" Speaker 142,000 142,000 Brass In 12" Speaker 50,000 50,000 Zinc In Focus Magnet 310,000 Steel In Focus Magnet 500,000 Brass In Focus Magnet 22,000 Aluminum — Cup Over Back of Kinescope 62,000 62,000 Brass In Volume Controls 12,200 12,200 Copper-Shorting Band in Power Transformer 190,000 190,000 Copper Hook-up Wire 47,000 47,000 Copper — Leads on Paper and Ceramic Capacitors 11,850 11,850 Aluminum Shield 100,000 100,000 The following tabulation summarizes the metal savings which are in effect in the manufacture of tubes and ferrite magnetic cores used in the manufacture of 1,000,000 TV receivers. A typical 23-tube receiver was used in these calculations. Savings per 1,000,000 Material Television Receivers Nickel (a) Nickel content in ferrite cores 12,400 lbs. (b) Nickel in receiving tubes and kinescopes 33,600 Copper in receiving tubes and kinescopes 33,000 Tin content In solder 50 The more important conservation steps that have been taken are as follows: Redesign of Speakers When it became known that practically all of the avail- able cobalt would be required by the government for de- fense items, a study was immediately started to see what could be done to eliminate cobalt from our instruments. Alnico V magnets were used in focus magnets and speakers. (Alnico V contains 24% cobalt, 14% nickel, 8% alumi- num, 3% copper, and 51% iron.) The average focus mag- net contained 5 ounces of Alnico V, and the average speaker contained 2.5 ounces of Alnico V, or a total of 7.5 ounces per instrument. The problem of reducing or eliminating cobalt used in speakers could be attacked by changing to an electro- magnetic speaker to save the 2.5 ounces of Alnico V. To solve the problem in this way would have resulted in the addition of approximately 1 pound of copper for the field coil. Instead, it was considered more advisable to retain the Alnico V magnet, but to reduce its size as much as possible consistent wdth maintaining acceptable perform- ance. A complete study and redesign of speakers was made with the result that the largest magnet now used is 1 ounce and the average is approximately 0.75 ounce. This redesign also resulted in a saving in the accompany- ing steel and brass parts, so that from the speaker standpoint, the savings are as follows: Alnico V — 70% saving compared to early 1950 Steel — 35% saving compared to early 1950 Brass — 90% saving compared to early 1950 This program is currently in effect and the speaker manufacturers are aware of it. Elimination of Focusing Magnet A reduction of alnico used in the focusing magnet of the kinescopes is a slightly longer range change which is being very actively worked on. The focus magnet can be removed completely by continuing the use of electro- magnetic focused kinescopes with electromagnetic focus- ing coil, or by changing to electrostatic focused kinescopes. Electromagnetic focusing would require the use of a focusing coil with approximately 2 pounds of copper wire and with an adjustable D.C. current flowing in the coil. The D.C. power supply handling capacity would have to be increased in order to furnish this current. This in turn would require more copper and iron in the power transformer, or more electrolytic capacitors and selenium rectifiers which require alminum. This program would ob- viously be impractical because, although it would save cobalt in the magnet material, it would use much more copper, aluminum and steel. It was therefore decided to change to electrostatic focusing. The change to the use of electrostatic focused kinescopes will cost slightly more per instrument because of the cost of the special components involved, but these special components do not involve critical materials. The timing for introducing electrostatic focusing in production is determined by the availability of kinescopes, since the kinescope must be changed to permit this type of operation. The 17-inch rectangular sets (which is the lai’gest item of production in the industry this year) will be changed to electrostatic focusing in the second quarter of 1951. By the end of the second quarter of 1951 it is planned to be completely changed over to electrostatic focusing on all sets. The resultant saving is 5 ounces of Alnico V, approxi- mately 5 ounces of zinc, and approximately 8 ounces of steel. When we have completely changed over to electrostatic focusing, and assuming that we continue to average 0.75 2 tube had never been commercially produced, and the design was accomplished by using an entirely new type of con- struction. In the new 6V3 tube, the filament is suspended independently inside the cathode, without touching it at any point, and the cathode receives its heat by radiation from the filament rather than by conduction as in the ordinary tube. This new design makes it possible for the 6V3 to withstand pulse voltages well in excess of 6000 volts. This new tube design has already found other important applications. (2) With the new efficient deflection circuit, it is possible to use a new plate power supply similar to a design already successfully used by Philco. This new power supply utilizes two selenium rectifiers in a voltage doubler circuit and makes it possible to eliminate the heavy power transformer used in the conventional previous circuit. In the new power supply, a small transformer is employed to supply filament power; this transformer could also have been eliminated, but this would have required connecting the filaments of all tubes in series, and Philco engineers decided against such a design because of its obvious vulnerability. (3) A third major improvement in the new Philco TV chassis is the use of a newly developed cathode ray picture tube with electrostatic focus. By focusing the electron beam electrostatically, it has been possible to eliminate both previous types of focusers: the heavy permanent magnet focuser made of Alnico V; or the alternative, an electromagnetic focuser with a copper coil requiring a con- siderable amount of rectified power to energize it. In addition to these major design improvements, all of which also achieve substantial savings in critical materials, there are numerous other changes in the new Philco chassis which combine conservation and better performance. Materials Savings Possible with New Philco Chassis Per Million Television Receivers New Chassis vs. Fall 1950 Sets Materials Savings in Pounds % Saved Alnico V 599,000 lbs. 100% Alximinum 563,000 68 Copper 1,263,000 26 Ferrite 529,000 51 Silicon Steel 7,397,000 58 Tin 80,260 50 Zinc 792,000 75 It should be noted that ultra-scarce cobalt is entirely eliminated, while the amount of other scarce materials needed is reduced by substantial percentages. Now to con- sider the specific details of savings under various headings. ALNICO V, which contains scarce cobalt, nickel, alumi- num and copper as indicated, is entirely eliminated in the new chassis design, because of the following changes: (a) Permanent magnet speaker removed, and replaced by electromagnetic speaker. (b) Permanent magnet focuser removed; replaced by new electrostatic focusing circuit. (c) Beam bender of Alnico V removed; replaced with beam bender of Alnico III, containing no cobalt. ALUMINUM content of the new Philco chassis has been reduced by .563 lb. per receiver by the following changes: (a) Aluminum frame assembly straps for picture tube are replaced by fabric straps. (b) Aluminum protective cup for picture tube is re- placed by a plastic-and-fibre cup. (c) One electrolytic condenser, containing aluminum i foil, eliminated by use of electrostatic-focus picture tube. (d) Amount of aluminum foil in other electrolytic con- densers reduced by use of lower voltage plate power supply. COPPER used in the present TV chassis has been re- duced by the substantial total of 1.236 lbs. per receiver, even though it has been necessary to add copper wire for the electromagnetic speaker to eliminate Alnico V. Savings of copper in the new design are achieved by: (a) Large power transformer is removed, and replaced ' with much smaller filament transformer and voltage doubler power supply using selenium rectifiers. (b) Amount of wire in audio output transformer re- duced, with special compensation to maintain sound quality. (c) Wire used for hook-ups throughout chassis reduced fi’om size No. 22 to No. 24. (d) Wire leads on tubular and mica condensers shortened. (e) Width and linearity coils removed because of use of new efficient deflection circuits. (f) Size of horizontal output transformer coil reduced through use of new circuits, including new 6V3 damper tube. (g) Copper ribbon-type ground straps removed and re- placed by wire. FERRITE, which contains 20% nickel oxide and 25% zinc oxide, is a scarce material and the amount used in the new Philco chassis has been reduced 51% by the follow- ing changes: (a) Size of horizontal output transformer core reduced, thanks to new circuit and new 6V3 diode damper tube. (b) Ferrite core removed from deflection yoke; and re- placed with new yoke of flake iron, which is a non-critical material. (c) Width and linearity control cores eliminated by use of new efficient circuits which include resistor-type width control and require no linearity control. SILICON STEEL is conserved in substantial quantity in the new chassis, which reduces the amount required per receiver by 7.399 lbs. by these changes: (a) Large power transformer removed, replaced by small filament transformer and voltage doubler power supply, with selenium rectifiers. (b) Size of audio transformer core reduced, maintaining high quality of sound output by special compensations. TIN will be conserved in considerable quantity in pro- ducing the new Philco chassis by using a new solder with 20% tin content, instead of the present solder with 40% tin; and by using a new flux with this solder to make permanent soldered joints. The resultant saving amounts to 80,260 lbs. of tin, a strategic material, per million TV receivers. ZINC is being conserved by means of eliminating some zinc die castings (notably one in the focuser); by the savings noted above under ferrite; and also by eliminating brass (an alloy of copper and zinc) wherever possible. All brass hardware and machine screw parts are being replaced with steel, wherever ferrous metals can be em- ployed. The amount of brass in control bushings has been reduced about 10%. All brass formerly used for decora- tive purposes on the cabinet is also being removed. CADMIUM, another scarce metal, is being conserved by changing the plating of the new deflection chassis and other metal parts to a plating of non-strategic materials wherever soldering requirements permit. Total Weight Savings In view of the impressive list of changes enumerated above, it is not surprising that the new Philco TV chassis and picture-tube mounting frame weigh considerably less than the comparable current model now in production. It should be noted that ever since early 1950, Philco design has divided the chassis into two parts; one contains tuner, IF and other circuits; the second includes the power sup- ply and associated circuits. The new design continues this highly efficient “duplex chassis” and achieves savings in critical materials — and weight — in both parts of the chassis, as well as in the picture tube frame assembly. Savings in Weight Achieved by New Philco Television Chassis Present Receiver New Receiver R-F, I-P Chassis Section Power Chassis Section Frame Assembly, Yoke, Focuser 6 lbs. 15 oz. 28 lbs. 8 oz. 4 lbs. 3 oz. 6 lbs. 3 oz. 18 lbs. 3 oz. 3 lbs. 2 oz. Totals 39 lbs. 10 oz. 27 lbs. 8 oz. Thus the new Philco design saves a total of 12 lbs. 2 oz. per receiver. This weight saving means not only a sub- stantial conservation of critically scarce materials. It also means that new, lighter chassis will be easier to handle in production, thus reducing the fatigue of workers. Further the lighter chassis will appeal to future owners of the new 5 sets, especially table models which are often moved from room to room, or from one location to another in a room. Materials Savings in Associated Fields While the comprehensive program described above has resulted in the development of an entirely new Philco TV chassis, with improved perfoi-mance and conserving im- portant amounts of scarce materials, other engineers of the company have been active in similar conservation pro- grams. For example, Philco tube engineers are engaged in a long-term project to reduce use of such materials as nickel and copper in both cathode ray picture tubes and in various types of receiving tubes. Company engineers working with antennas and other installation materials have also achieved remarkable results, practically eliminat- ing the aluminum used for outdoor antennas and saving important quantities of copper and zinc. Many TV-radio receivers are sold in “combinations” containing automatic record changers. Philco mechanical engineers have redesigned the highly successful M-22 three-speed automatic changer to conseiwe many critical materials. Materials Savings in TV Tubes Although the total amounts of critical materials in- volved in making cathode ray picture tubes and receiving tubes are extremely small, in the aggregate the savings that may be achieved are well worthwhile. Materials Savings with One Million 17" Cathode Ray Picture Tubes Present Design Future Design Saving Nickel 4,000 lbs. 18-12 Stainless Steel 12,000 Copper 3,000 2.000 lbs. 8.000 2,500 2.000 lbs. 4.000 500 Specific savings include: Nickel (A) Receiving Tubes (1) Wherever possible, carbonized nickel-plated steel strip has been, or is being substituted for nickel used for the plates of receiving tubes. (2) Research work is going on to replace nickel for the plates of certain tubes with aluminum-clad steel strip. This has already been done in Europe, and as soon as a sufficient supply of aluminum-clad steel strip is available, more substitution wdll be achieved here. (3) Nipron, or nickel-plated iron wire, is being used for inside stem leads to replace nickel wire. Research is also under way to use Nipron for outside stem leads. (B) Cathode Ray Picture Tubes (1) Nipron is being used for inside stem leads, and is saving 60-70% of the nickel required for this application. (2) Philco has changed the bulb-spacer design in 90% of cathode ray tubes, reducing the 18-12 stainless steel re- quired by 50%. This represents a saving of 50% in nickel requirement. (3) The gun design on one type of picture tube has been changed, reducing the amount of 18-12 stainless steel re- quii’ed by 70% over conventional gun designs. (4) A new gun is being developed by Philco tube engi- neers for all cathode-ray tubes, which will reduce usage of 18-12 stainless steel by 40%. Copper (A) Receiving Tubes Copper-clad steel wire is being used to replace copper for grid side rods, wherever this change is feasible. (B) Cathode Ray Picture Tubes (1) Philco has completely eliminated the use of copper in exhaust tubulation on the one type of picture tube where this technique was employed. Glass has been substituted, and Philco has always used glass extensively for exhaust tubulation, thus conserving copper. (2) The diameter of Dumet stem leads has been reduced, saving 15% of the copper used in these leads. (3) Philco has concentrated entirely on glass envelopes for picture tubes, thus conserving large amounts of chrome steel — savings in chromium — as compared with other major producers. Savings in TV Installation Materials Ever since early 1950, Philco has taken the lead in re- ducing the amounts of critical materials used for installing TV receivers, including the aluminum, copper and zinc used in TV antennas, mounting hardware, and transmis- sion or lead-in line. Savings in TV Installation Materials per 1,000,000 Receivers Installed with Outdoor Antennas Savings By New Philco Designs 1. Alximlnum 6,800,000 lbs. 2. Copper 120,000 3. Zinc 350,000 Details of these savings in installation materials are as follows: Antennas Masts: The use of aluminum for antenna masts has been eliminated by Philco since the middle of 1950, with steel masts having been introduced early last year. The stand- ard masts sold by Philco are now made of steel tubing in 5' and 6' lengths, 1%" O.D. and .030" wall thickness. These steel masts replace the standard 6’ aluminum masts for- merly sold by Philco. On the average, two of these alumi- num masts were required for the typical installation, or a total weight of about 4 lbs. of aluminum per installation, all of which is saved. Cross-Arms: In all standard Philco antennas for the past eight months, steel cross-arms have been used, saving about 1 lb. of aluminum per antenna. (Standard antennas account for 94% of total Philco antenna sales.) In deluxe Philco antennas, the cross-arm has been made of aluminum or manganese iron, but steel cross-arms will be used from March 1, 1951. (Deluxe antennas — 6% of sales.) Dipoles, Fans and Hardware: Receiving elements of standard antennas, and mounting hardware have been made either of dural or butt-seam welded aluminum. This is being entirely replaced with steel, including steel tubing, saving about 2 lbs. of aluminum per antenna. Savings in Zinc: To conserve zinc normally used for coating steel masts and mounting hardware, special rust- proofing and painting processes are now being employed which will save about 350 lbs. of zinc per 1,000 antenna installations. Use of Steel is being increased by substituting steel for aluminum in all antenna masts. However, some savings in use of steel are being achieved by redesign of mounting brackets. Transmission or Lead-In Line Practically all line supplied by Philco through distrib- utors and dealers for TV installations is 300-ohm ribbon line. Here there has been a reduction from 7-strand line, using No. 28 copper wire, to line with 7 strands of No. 30 wire. This amounts to a saving of 33% in copper. Also, all installations are made with the minimum foot- age of transmission line required for each specific job. Savings in Philco Automatic Record Changers The savings shown below have been achieved by Philoo mechanical engineers, by such methods as substituting steel stampings for zinc die castings, etc. Material Savings in Pounds per 200,000 Record Changers Aluminum Brass Phosphor Bronze Stainless Steel Zinc Current Production vs. New Series Changers Savings in % 10,000 lbs. 100% 74,400 100% 600 100% 9,700 50% 200,000 83.5% 6 11 - NAB-TV needs 75-80 stations to meet $150,000 budget, under dues structure evolved at board meeting Feb. 19 in New York, has pledges from 57 already. Monthly dues were set at station’s highest published 5-min. rate — or half of 1 5-min. rate if station has no 5-min. scale. Dues for networks are flat $100 per month. Board hired Thad H. Brown, son of late FCC comr., member of Washington law firm of Roberts & Mclnnis which represents TBA, on full- time basis as counsel. Following committee was named to hire $35,000 a year general mgr.: George Storer, Fort Industry, chairman; Harry Bannister, WWJ-TV; Clair Mc- Collough, WDEL-TV & WGAL-TV; Campbell Arnoux, WTAR-TV; Paul Raibourn, KTLA (Paramount). Mean- while, industry music committee, headed by Dwight Martin, Crosley, is trying to get ASCAP to reopen negotiations on per-program license terms. ASCAP terminated talks last December (Vol. 6:50), said then it was sending contracts ' to stations, but none has received them as yet. * ♦ * * Bell Labs able Axel Jensen, chief TV researcher, says war has put color “back in the laboratory again,” doubting whether manufacturers would be able to get materials for color. Therefore, he said, in talk at U of Buffalo this week, if research is “allowed to go on a little longer, it may be possible to come up with a system superior to anything we have at present.” Reporting on its color tube patents, Sightmaster an- nounced that tube-maker Zetka paid $250,000 for “the right to purchase an interest in Sightmaster Corp.’s patent posi- tion.” It also says RCA and others are negotiating for use of patents said to permit greater brightness in color tube. k Latest CBS “road show” color demonstrations: In New i Orleans, Municipal Auditorium, Feb. 28 & March 2, in ( connection with meeting of affiliates advisory board, prior f to March 5-8 medical showings; in New York, Feb. 22-25, I at 71st Reg. Armory, for National Photographic Show. * * * * Looks like Petrillo-network contract (Vol. 7:5-7) may I be settled next week. Compromises will be in order on t most issues, but troublesome question of film and kinescope • use may not be settled for a while. In fact, many ob- j servers feel it may have to wait until new agreement be- ♦ tween AFM and motion picture producers is wox’ked out; t, union’s contract with Hollywood runs out Aug. 31. Two TV-radio legal snarls are being analyzed by 1 Washington attorney Harry P. Warner. Writing in sum- mer and fall issues of Washington U (St. Louis) Law Quarterly, he concludes that rights to program content will be protected through common law or statutory copy- right, rather than through law of unfair competition which courts have employed so far. This fall, Warner expects to have published The ASCAP Story, history of the organ- ization and music rights in general. Latest TV “scenery saver” is device called “Vista- scope,” French invention to which movie producer Sol Lesser has obtained rights. It’s a box, containing scenic photograph, fitted to front of camera lens. Photograph is cut out so that actors, on whom camera is focused, appear to be surrounded by scenery. Navy’s reserve training program over New York’s WOR-TV, started last Oct. 10, proves that “a well pre- sented lesson over TV is more effectively absorbed than the same lesson presented by the usual classroom method of teaching.” That’s conclusion of Capt. D. D. Hawkins, in Feb. 18 New York Times article. Program also proves, he says, that “instructors are going to have to learn to be TV actors, or actors will have to turn instructors, if TV is going to do much teaching.” Navy tested 65 people be- fore finding right instructor. Closed session between FCC and House Interstate & Foreign Commerce Committee to discuss legislation (Vol. 7:7) seemed to elicit little, although FCC again tendered proposed reorganization bill it prefers to McFarland bill (Vol. 7:4,6). Commission proposal is about same as bill issued as Committee Print No. 1 last year (Vol. 6:31), but never introduced. Commission hadn’t anjrthing new to say about freeze, color, educational TV. Much time was spent explaining NARBA details to Committee. Changes in Communications Act, suggested by Senate Interstate & Foreign Commerce Committee, to replace S. 537, electromagnetic radiation control bill advocated by Defense Dept, (see story p. 2), read as follows — new lan- guage in italics: “Sec. 606(c). Upon proclamation by the President that there exists war or a threat of war, or a state of public peril or disaster or other national emer- gency, or in order to preserve the neutrality of the United States, the President, if he deems it necessary in the in- terest of national security or defense, may suspend or amend, for such time as he may see fit, the rules and regu- lations applicable to any or all stations or devices capable of emitting electromagnetic radiations within the jurisdic- tion of the United States as prescribed by the Commis- sion, and cause the closing of any station for radio com- munication, or any device capable of emitting electromag- netic radiations between 10 kilocycles and 100,000 mega,- cycles, and the removal therefrom of its apparatus and equipment, or he may authorize the use or control of any such station or device and/or its apparatus and equipment, by any department of the government under such regula- tions as he may prescribe upon just compensation to the owners.” * * • « Resignation of Murray Grabhorn, ABC v.p. in charge of 0 & M stations, sparked these changes: Otto Brandt, v.p. for TV station relations, now has supervision over all owned TV stations, plus national spot and local TV sales. Richard R. Rawls, regional mgr., promoted to mgr. of TV stations dept., reporting to Brandt. On program side, Burke Crotty, executive TV producer, named asst, national director of TV program production; William Phillipson, attorney, named asst, director TV program-ming and op- erations (handling negotiations, contracts, etc.) ; James S. Poliak, ex-Souvaine Co. and WPIX, named program mgr., WJZ-TV. All report to Alexander Stronach, ABC v.p. in charge of TV programs. Other changes include appoint- ment of James Connolly, radio stations relations v.p., in charge of all owned radio stations and national spot and local sales; William Wylie, mgr., radio stations dept. Civil defense contributions of stations, growing rapid- ly, include: Sponsorship of March 6 session on TV's Role in Civilian Defense by Detroit’s TV Council (formerly Round Table), featuring talks by Jesse Butcher, chief of audio-visual section. Civil Defense Administration; Col. Edward Kirby, chief of TV-i’adio branch, Ai’my informa- tion; Col. Lawrence Wilkinson and Brig. Gen. Clyde Dougherty, of New York and Detroit civil defense agencies, respectively. One-time program by Louisville’s WHAS- TV drew such response that it grew into series comprising films, interviews, etc. New York’s WCBS-TV, Feb. 26 starts Self Preservation, “course of action for the house- wife and her family,” daily for 3 weeks, with assistance of Civil Defense and Red Cross officials. Baltimore’s WAAM March 3 carries Your Atomic Future, featuring atomic scientist and city school civil defense training director. Anxious about TV’s impact, radio documentaiy writer Robert Lewis Shayon has written new book. Television and Oar Children, in which he terms children’s viewing exces- sive, puts blame on adults, places faith in “listener coun- cil movement,” plumps for educational TV stations. 12 - NBC Count of TV Seis-in-Use by Cities As of February 1, 1951 Note: Estimates are by NBC Research for network use only, based on NBC affiliates’ coverage to .1 Mv/m contours. Coverage of families is calcu- lated on a net basis, with duplication removed. For individual station coverage, which in most cases exceeds these figures, consult station. January TV set sales totaled 593,000, lowest since last August’s 587,700, bringing grand total of sets-in-use to Personal Notes: Harrison M. Dunham has resigned as general mgr., KTTV, Los Angeles, no successor yet ap- pointed . . . Theatrical and industrial design expert Ben- jamin L. Webster appointed asst, to Fred Shawn, NBC-T\'' director of production services . . . Frank Young, ex-WPIX public relations mgr., joining NBC in special public rela- tions capacity, reporting to public relations v.p. William F. Brooks . . . Joseph A. Chambers, ex-partner. Chambers & Garrison, Washington consulting engineers, joins Motor- ola military research labs in Phoenix, Ariz., about March 1 . . . Hollis Seavey, MBS coordinator of Washington news and special events, named director of Washington opera- tions for network . . . George Baker, ex-Hughes-Peters Inc., 11,142,500 as of Feb. 1, according to NBC Research's Cincinnati Emerson distributor, joining WLWT, Cincin- monthly “census” report released this week. NBC ad- nati, in charge of hard goods sales . . . Lewis M. Marcy, justed some of its family estimates since it began using new basis for TV set count (Vol. 7:3); total families cov- ered by TV signals now amount to 26,495,700. For Los Angeles, 13,600 families were added; for Wilmington, 28,800 families were added, all from Philadelphia and Baltimore. Interconnected Cities Area No. Stations No. Families No. Sets Ames (Des Moines) Atlanta Baltimore — BlrmlngUam— Bloommgton, Ind Boston Buffalo Charlotte — Chicago Cincinnati Cleveland Columbus Davenport-Rock Island Dayton Detroit Srie Orand Eaplds- Greensboro Huntington Indianapolis Jacksonville Johnstown — Kalamazoo Kansas City — Lancaster T .airing Louisville Memphis—. Milwaukee ; Mlnneapolls-St. Paul — Nashville New Haven New York Norfolk- Omaha Philadelphia Pittsburgh Providence Richmond Rochester Schenectady St. Louis Syracuse Toledo — Utica Washington Wilmington 1 2 3 2 1 2 1 1 4 3 3 3 2 2 3 1 1 1 1 1 1 1 1 1 1 1 2 1 1 2 1 1 7 1 2 3 1 1 1 1 1 1 2 1 1 4 1 195.200 311.300 461.600 252.400 49,300 1.084.000 309.400 330.800 1,668,400 432.600 804.800 327.300 205.100 275.500 907.200 84,800 194.500 162.100 187.500 390.200 113.800 310.100 153.700 471.900 215.900 206.900 256.400 269.900 373.600 452.900 205.700 515.400 3.887.000 204.200 217.600 1,343,900 729.200 406.100 133.700 216.700 322.500 567.700 205.200 300.100 124.100 450.600 135.400 42,000 91.500 273.000 42,200 14.300 674.000 182.000 56.600 840.000 228.000 423.000 129.000 44.700 114.000 419.000 42.300 73.900 49.800 35.300 106.000 27.000 68,100 33.400 101,000 80.600 42.500 78,600 75,100 213.000 238.000 28.000 137.000 2,145,000 55.700 60.700 789.000 222.000 130.000 62.900 73.400 140.000 254.000 101.000 78.000 36.000 234,000 57.800 Total Interconnected 80 21,424,200 9,442,400 ex-Advertising Research Foundation, joins NBC as super- visor of sales planning dept., succeeding Lance Ballou Jr., recently named to network’s sales staff . . . J. R. Poppele, v.p. and chief engineer of WOR-TV, New York, received Marconi Memorial Medal of Achievement from Veteran Wireless Operators Assn, at New York dinner meeting Feb. 24 . . . Ralph Taylor, KNX-Columbia Pacific network sales promotion mgr., named sales promotion mgr., KTSL, Los Angeles . . . Harry Black, ex-Televiser Magazine, ap- pointed program director of WXEL, Cleveland . . . Wally Schwentser named engineering supervisor, KMTV, Omaha. Edward P. Morgan, partner in Washington radio laiv firm of Welch, Mott & Morgan, ex-counsel Senate subcom- mittee investigating Reds in State Dept., ex-FBI, named chief enforcement officer of Office of Price Stabilization . . . Arthur R. Treanor, part owner of WOOD, Grand Rapids and WFDF, Flint, to become director of NPA Printing & Publishing Div. * * * « TV production costs are not out of line with other media costs, asserted Don McClure, McCann-Erickson, at TV-radio seminar Feb. 20 sponsored by Washington Ad Club. Costs can be held within bounds, McClure said, by (a) pre-planned production, (b) ever y-other- week sponsor- ship, (c) use of Tele-prompter — ^which can cut rehearsal costs by 25%, (d) use of latest techniques in filming — such as Vidicam and Multicam processes. New radios were bought by 17% of TV owners, by 19% non-TV ofvners during 1950, Dr. Sydney Roslow, The Pulse Inc., told TV-radio seminar in Washington Feb. 20. But, during last 6 months, new radios were bought by 28% of TV owners (placed mostly in bedrooms), and by only 23% of non-TV owners (placed mostly in living rooms), reported Dr. Roslow. Sunday is best evening for group televiewing, Trendex reports on basis of data from 20 TV cities. In December and January, average of 3.3 persons watched each set Sun- day nights, while average number of viewers per receiver for all nights of week was 2.95, according to survey. N on-interconnected Cities Albuquerque - - 1 36,400 7,400 Blngbamton — 1 2 84,100 369,800 32,700 105,000 [pnff. Wrtrt.h 1 Mnnatftn 1 307,500 65,200 7 1,537,800 835,000 1 154,600 52,500 New Orleans 1 257,700 49,500 Oklahoma City 1 239,000 73,400 Phoenix — 1 89,600 30,200 Salt Lake City 2 83,700 37,500 San Antonio.. 2 157,000 30,700 San Diego 1 182,100 81,000 San Francisco 3 974,300 159,000 Seattle. 1 425,400 68,200 Tulsa . 1 172,500 63,800 Total Non- Interconnected 27 5,071,500 1,700,100 Total Interconnected and Non-Inter- connected 107 26,495,700 11,142,500 First TV application for Mobile, Ala., was filed this week by WKRG, for Channel 5, bringing total on file to 381. Owners are local businessmen Kenneth R. Giddens and T. J. Rester. (For details, see TV Addenda 12-G, herevrith.) More than 80% of TV set owners in the Carolinas also own their own homes, according to survey by WBTV, Char- lotte. Other conclusions: 74% of owners live in urban areas; 44% make less than $5000 a year, 42 %> from $5000 to $10,000 and 13.5% over $10,000. “TV snob” is subject of Printers’ Ink editorial in Feb. 26 issue, which gleefully (but not nastily) makes point that novelty factor wears off rapidly, after which TV viewers turn to other pursuits — like reading newspapers, maga- zines and books. •UBLISHED WEEKLY BY RADIO NEWS BUREAU, 1519 CONNECTICUT AVE. N.W., WASHINGTON 6, D.C. TELEPHONE MICHIGAN 2020 • VOL. 7, NO. 9 March 3, 1951 {‘MRO’ Aids Broadcasters, Industry, page 1. New Shortages Loom, War Orders Few, page 6. Coy Sought for NAB-TV Post, 2io.ge 2. Price (Not Margin) Control for TV, page 8. Where 1950 TV Sets Went, page 3. Output & Stocks Up But Sales Lag, page 8. 'NISO' AIDS BROADCASTERS, INDUSTRY: NPA*s new maintenance, repair and operating (MRO) program (Regulation 4) is made to order for all phases of broadcasting and elec- tronic industries. It gives these assurances; (1) No TV-radio station will be forced to leave the air for lack of mainte- nance equipment or parts. (2) Police, fire, aircraft, marine and emergency communications systems will not be interrupted because of shortages. (3) Replacement parts will be available for intercom, public address and other electronic equipment used in any business, industry or governmental agency. (4) Electronic distributors, jobbers, wholesalers will be able to obtain and stock replacement parts. (5) Electronic parts m,akers v/ill be able to get materials required to turn [, out parts and equipment to keep America's electronic and communications systems operating at full capacity. (6) TV-radio, electronic and all other manufacturers can keep their machin- ery and plants in top operating condition, despite shortages and restrictions. 1 Much credit for MRO order goes to John G. Daley and Donald Parris, director and deputy director of NPA's Electronic Products Div. As defense-induced shortages increased, division personnel spent more and more of their time listening to tales of woe from police and fire departments and businessmen whose operations were being held up by unavailability of a couple of tubes, a transformer or other repair parts. Realizing importance of maintaining existing equipment, division had been issuing special directives for each individual complaint. These parts may now be procured automatically, without red tape. Regulation 4 gives all businesses, institutions and Federal, State and local governments right to use DO priorities for MRO equipment and supplies of all kinds. But order does not pin priority on repair parts for homes or home equipment, including TV-radio. New regulation is similar to — but more limited than — system urged in January by mobilization committee of Chicago's Assn, of Electronic Parts & Equipment Mfrs. (Vol. 7:5-6). Committee Feb. 28 applauded NPA action which it said "goes a I long way toward alleviating what threatened to be a dangerous bottleneck in mainte- I nance and repair of communications equipment, radio and TV..." I Application of order to home TV-radio was urged by committee, whose chair- I man, Talk-A-Phone Co. president Arie Liberman, asked "adoption of specific interpre- t tations necessary to insure that home, auto and amateur radio and TV receivers and a intercommunications equipment can serve designed functions of entertainment, dissem- n ination of news and communications as an indestructible link in a national network 5 of civilian defense." It appears probable that order soon will be extended to apply to "ham" radio operators — whose service to nation in time of distress is well known — but it i will take considerably more selling to convince NPA that no American home is com- Copyrlght 1951 by Radio News Bureau - 2 - plete without an A-1 priority to keep the family TV or radio set working. MRO priorities are equal to all other priorities, including those used by arifled services for military equipment. Priority for MRO supplies is known as "DO-97." To use this priority, pur- chaser merely writes on his order for equipment: "DO-97, certified under NPA Regula- tion 4." He needn't notify NPA, but is required to keep records of DO purchases. Priority is "extendible", in that supplier who fills order may use same | priority to replenish his stock of the items ordered ; manufacturer may use it to i ? procure materials to make more of same type products. j No firm is permitted to issue these priority ratings in any quarter in ex- cess of its average quarterly dollar purchases for such supplies in 1950 or the fiscal year ending nearest to Dec. 31, 1950. If an establishment needs more than that amount of MRO supplies, it must get NPA's permission. Firms spending less than $1000 for MRO supplies in any quarter may disregard quota restrictions. Nobody is required to use priorities to obtain MRO supplies. But once an establishment takes advantage of the new rating to get any of this equipment, total acquisition of MRO supplies — both rated and unrated — ■' becomes subject to quarter- ' ly limitations. During remainder of first quarter, establishments are permitted to use ratings to buy up to one-half their quarterly quota. For additional details on this * important order, obtain copy of NPA Regulation 4 and "Questions and Answers Regard- ing Regulation 4" from National Production Authority, Washington 25, D.C., or from nearest Commerce Dept, field office. | f COY SOUGHT FOR NAB-TV POST: it's a big job the telecasters have cut out for head of ; their newly authorized TV division within NAB (soon to be renamed National Assn, of 'k Radio & Television Broadcasters) — and this week they undertook (1) to inquire whether FCC chairman Wayne Coy might consider taking the $35,000 post, and (2) to l| sign up as many of the 107 stations and 4 networks as they can for membership. f Coy is due back in Washington in about week, is being sounded out over week 1 end (while in New Orleans attending CBS affiliates advisory board meeting) by chair- man George Storer of committee authorized to make appointment (Vol. 7:8). Should he i accept, his FCC post may go to Neville Miller, onetime Louisville mayor, ex-NAB president, now Washington attorney, who is particularly close to Vice President Barkley and who recently came into a large inheritance, making it possible for him to accept. Others mentioned for FCC chairmanship are Comr. Frieda Hennock, backed by Democratic women's boss India Edwards; Don Fink, editor of Electronics Magazine. Should Coy be amenable to offer, as against seeking reappointment and a pos- sible Senate fight over confirmation when his term expires next June 30. he would inherit task of handling such tough issues as excess profits tax, proposed 25% ex- cise on TVs, per-program ASCAP licenses, allocations hearings, AT&T rates for TV, films for TV, station costs and rate studies, etc. These are some of subjects on agenda of TV division, which has own board, own dues structure, own budget — will - operate utterly independent of numerically dominant NAB-AM membership. Opposition may develop because of Coy's stand on color, though telecasters haven't been quite so bitter on that issue as manufacturers who once also considered him for presidency of their association. There's also some fear among broadcasters because of his vote in WBAL "Blue Book" test case, favoring giving that Baltimore station's license to Drew Pearson & Robert Allen. He's known to be mainly interested in TV, convinced radio's big future is in visual medium, has excellent background of radio management and journalism as well as govt, administration and politics. It's reasonable to believe networks would favor choice — certainly CBS and f perhaps even NBC (whose parent RCA is leading battle against FCC's color edict). I \t Association would necessarily remain neutral on color issue. ^ Unless he has other plans, undisclosed. Coy would return to heavy FCC agenda ' with virtually no defense aspects as yet — an agenda embracing more long hearings ^ ‘ on allocations looking to end of freeze ; FCC policy on color after Supreme Court 3 decides; educational channel policy; unpopular hearing on TV program content, etc. To be set up soon will be nev/ Broadcast Bureau, with Harry Plotkin, asst, general counsel, who swings plenty of weight on FCC policy, apparently slated as director. * * NAB-TV is due to begin operation April 1, v/ith Thad Brown already engaged as counsel and old TBA virtually disbanded this week. Memberships are now being solic- ited, with most stations expected to join, probably all networks. (NBC pledged its 5 stations this week; CBS & ABC, non-mem.bers of NAB, are fairly sure to join.) Of S150,000 initial budget, |100,000 is to be spent entirely on TV projects, |50,000 to go toward NARTB overhead. Dues are highest one-time 5-minute rate or half one-time 15-minute rate monthly. Quest for new president of over-all NAB setup, to succeed Judge Justin Miller, who becomes chairman (Vol. 7:5), led to definite offer of S45,000 post this i week to Carl Haverlin, now president of Broadcast Music Inc. (Vol. 7:6). He has promised answer to NAB committee within week. WHERE 1950 TV SETS WENT: From the State and county tabulations below, you get a reasonably good idea where the TV receivers made during 1950 went — although trans- shipments, sales and swaps as between manufacturers, distributors and dealers may mean that a goodly number didn't always go into homes of these particular areas. Figures are RTMA's estimates of sales to dealers during year, covering geographical shipments by entire industry. RTMA explains disparity between its 1950 production estimate of 7,463,000 TVs, its factory sales estimate of 7,355,100, and its total shipment figure of 7,068,000 herewith is due to normal lag in distribution ; from factory to dealer. Following were TV set shipments last year to 36 States, the District of Columbia and areas unlisted (export & non-TV areas), as estimated by RTMA: state and County ALABAMA Jefferson 1950 TV Shipments 23,487 State and County KANSAS Wyandotte 1930 TV Shipments 10,856 State and County NEW JERSEY— Cont’d 1950 TV Shipments 17 6"’“' State and 1950 TV County Shipments PENNSYLVANIA— Cont’d ARIZONA KENTUCKY Campbell .. — 5,667 Morris 9A12 Blair 4,964 Passaic 32,463 nfl.mhria 19^774 Jefferson - - . .. . 38,586 Union .... 33,838 Dauphin 9 990 CALIFORNIA Alameda Contra Costa . _ . 47,931 _ . 8,455 Kenton 12,304 NEW MEXICO Bernalillo NEW YORK Albany 4,896 9, 1 ,4(in 25 969 LOUISIANA Orleans ... . 33,214 Erie 99,98.3 ■ Fayette . 9,001 Orange 19,810 MARYLAND R7 R94 Lackawanna Lancaster 1,974 17,961 91 s 48 644 14R9S 99QnR 10 4^3 Lebanon 5,624 41 rwQ RQS4 Lehigh 16,584 San Francisco „ . . 55|274 Prince Georges 2|303 Erie in6’Q94 Montgomery Northampton Philadelphia .. .. Washington 26,226 12,025 247,834 11,107 Ran Joaquin . . 4,176 MASSACHUSETTS Berkshire . .. . ... 8,109 Kings 94.8;. 8.89 San Mateo 11,670 Moiiroe 62;012 Santa Clara . .. Solano .... 10, 1 *J*J 4,379 Bristol Essex .. .... 31,885 52,681 Nassau New York 53,549 290,964 Westmoreland York . 18,823 14,758 CONNECTICUT Fairfield . . 39,129 Hampden Middlesex .. . . 8,932 77,167 96 01 0 Niagara Onondaga Oneida . 15,417 45,119 20,561 RHODE ISLAND Providence 60,426 nazLiuici T— — ■ — 11 6R4 Orange 7,620 SOUTH CAROLINA York .. ... .. 1 ,9.58 SiifTollr 146.RQ4 Queens . .. 113,975 DELAWARE New Castle 23.479 Worr.pst.pr 99'ft11 Rensselaer 18,836 TENNESSEE Davidson 14,053 MICHIGAN Richmond 11,999 12 789 DISTRICT OF COLUMBIA 95,756 FLORIDA T~»q Ho O'l 717 uainoun Genesee . . . _ Ingham D.Uat) 9,350 9,158 Westchester . NORTH CAROLINA Alamance _. . _ 41,630 1,953 Shelby TEXAS 33,042 99 Q61 Jackson 3,644 44177 Duval 1o!777 Kalamazoo 10,657 Cabarrus .. .. ... 1,900 Galveston .. i!639 Hillsborough . 1,783 I^6nt Macomb 21,862 8,948 Forsythe 2,850 Harris . . 38,464 9 966 Gaston . .. . . . 3,024 GEORGIA 96 Q7R Guilford - 5,362 UTAH DfiTCalh 6,385 9 090 Mecklenburg 8,940 Salt Lake . 20,758 Fulton 54,422 7046 R.nwan 1 ;.89.8 Weber 437 ILLINOIS Wayne 244A29 OHIO VIRGINIA 479,797 MINNESOTA Butler ... . . 13,794 Arlington 10,103 .8.8 049 Clark .. 10,195 Henrico 19,266 1 6.*i6 90 ?91 171,998 Norfolk ..... 25,522 in 9n« MISSOURI 64 989 Pittsylvania . .. 523 McLean 419 Hamilton ..... 99,693 Warwick 4,257 Peoria 1,740 Lucas . _. .. 41,392 WASHINGTON Rock Island . 8,782 Montgomery .. 57,176 Clarke .. . 966 St. Clair 10,752 Scioto - 1,991 King 24,309 298 Summit _ 37,051 Pierce 6,4in INDIANA NEBRASKA Dmiglas 26,868 OKLAHOMA WEST VIRGINIA Muskogee 708 Cabell 9.143 96 976 NEW JERSEY Oklahoma ... . 13,995 Kanawha 3,369 Madison 7!649 Tulsa _ _. .. 10,986 WISCONSIN Marlon .. 57,962 OREGON 89 11 1 Marlon . . . 9 1Q4 106* 166 Multnomah .. 2 Sub-Total .6,061,222 PnllT 1i!i39 Hudson 56i065 PENNSYLVANIA AREAS UNLISTED 1,006,778 9 496 91,117 Allegheny 141,16.5 Scott 9,459 Middlesex . . . 21,525 Berks .1 . 23,390 GRAND TOTAL —7,068,000 - 4 - Station Accounts: Pittsburgh’s Duquesne Brewing Co. this week began first elaborate live programs from new studios of WDTV, bringing Kyle McDonald to town for show’s Feb. 28 debut. Sponsor will rotate 4 different musi- cal shows per month, Wed. 8-8:30, catering to all tastes — symphony, popular orchestra with chorus, hillbilly band, variety — placed thru Walker & Downing . . . WDTV also signed big Kaufmann’s dept, store for Something New, merchandising film, Thu. 1-1:15 . . . More and more beer sponsors turning to TV, latest reported being Jacob Rup- pert. New York, for its new Knickerbocker Beer, thru Biow; Piel’s, New York, thru Kenyon & Eckhardt; Rhein- gold, New York, thru Foote, Cone & Belding; Adam Scheldt, Philadelphia, thru Ward Wheelock; Maier, Los Angeles, for its Brew 102, thru Biow, L. A.; Jacob Schmidt, Minneapolis, thru Olmsted & Foley Adv. . . . Knicker- bocker Textile Corp., thru Sterling Adv., New York, will use TV with other media in early fall campaign tying in with motion picture Quo Vadis, featuring textile designs based on movie’s Roman background . . . Sinclair Refining Co. (anti-rust gas) starting extensive spring campaign, including TV, thru Morey, Humm & Johnstone, N. Y. . . . Eversharp begins new campaign this month with TV in- cluded, thru Biow Co., N. Y. . . . Among other advertisers currently reported using or preparing to use TV: Welch Grape Juice Co. (sweet wine), thru A1 Paul Lefton Co., Philadelphia; Rushmore Paper Mills Inc. (Vanity Fair cleansing tissues), thru Paris & Peart, N. Y. (WCBS-TV); National Carbon Co. (Eveready batteries), thru Wm. Esty Co., N. Y. (WTMJ-TV); C. H. Runciman Co. (Hall- mark beans), thru Goodkind, Joice & Morgan, Chicago (WTMJ-TV); Allen B. Wrisley Distributing Co. (Wrisley soap), thru Earle Ludgin & Co., Chicago (WABD); D. Goldenberg Inc. (peanut chews), thru Clements Co., Phil- delphia (WPTZ); Hathaway Mfg. Co. (curtains), thru Abbott Kimball Co., N. Y. (WCAU-TV) ; Wm. S. Scull Co. (Boscul coffee), thru Lewis & Gilman, Philadelphia (WPTZ); Best Foods Inc. (Nucoa margarine), thru Benton & Bowles, N. Y. (KTLA); O-Cel-0 Inc. (cellulose sponge products), thru Comstock Duffes & Co., Buffalo (WPTZ); Hudnut Sales Co. (hair coloring), thru Dancer-Fitzgerald- Sample, N. Y.; J. L. Prescott Co. (shoe polish), thru Mon- roe F. Dreher, N. Y. (WCAU-TV); Sundial Branch, Inter- national Shoe Co., thru Hoag & Provandie, Boston (WCAU- TV); Kaye-Halbert Corp. (TV sets), thru Calkins & Holden, Carlock, McClinton & Smith, Los Angeles; Walt Disney Productions (Alice in Wonderland movie), thru C. J. LaRoche & Co., N. Y. Program costs are up 33 '/j% over last year, Ross Re- ports on Programming states in 17-page program cost study dated Feb. 1. Average cost of hour drama has gone from $15,000 to $25,000; hour comedy-variety show, from $15,000 to $45-50,000; half-hour situation comedy, from $7500 to $10,000; quarter-hour childrens’ show, from $750 to $1000. Ross lists 3 major reasons for jump in costs: (1) More lavish productions. (2) Use of name perform- ers and more costly properties. (3) Higher union scales. Advertisers’ attitude toward radio rates in TV cities will be closely watched by broadcasters when Assn, of Na- tional Advertisers meets March 28-30 in Hot Springs, Va. ANA last year sparked unsuccessful drive to cut radio rates because of TV’s impact on listening (Vol. 6:29-31, 39). NBC burned its fingers on same proposal last De- cember, dropped it month later (Vol. 6:50, 7:1). March 1 sets-in-use reported since NBC Research’s “census” of Feb. 1 (Vol. 7:8): Washington 244,260, up 10,260; Fort Worth-Dallas 109,264, up 4264; Memphis 79,277, up 4177; Norfolk 61,459, up 5759; Charlotte 61,312, up 4712; Greensboro 57,455, up 7655. NeSwork Accounts: CBS-TV considering moving into morning schedules, offering Steve Allen and other features, possibly beginning as early as 10 a.m. . . . General Foods reported buying DuMont’s Captain Video, Mon.-Fri. 7-7 :30, with 7-year contract . . . Wamsutta Mills (textiles & sheets) will sponsor 12:30-1:30 portion of Easter Parade on CBS-TV, Sun. March 25, thru McCann-Erickson, N. Y.; Bulova Watch Co. will take 1:30-2 segment, thru Biow Co., N. Y. . . . Colgate-Palmolive-Peet reported readying simulcast of Strike It Rich on CBS-TV, Mon.-Fri. 4:30-5, thru Wm. Esty Co., N. Y. . . . Next Bob Hope appearance on Frigidaire’s Comedy Hour on NBC-TV will be April 8, Sun. 8-9. Temporary licenses for 19 FM stations have been handed out by FCC, pending “study” of special services such as transitcasting, storecasting, functional music (Vol. 7:5). About 20 more stations are rendering such services but their licenses haven’t yet come up for renewal. Sta- tions on temporary permits: WEAW, Evanston; WWDC- FM, Washington; WSAI-FM, Cincinnati; KBON-FM, Omaha; KCMO-FM, Kansas City; KTNT, Tacoma; KXOK-FM, St. Louis; WEHS, Cicero, 111.; WGTR, Bos- ton; WHAV-FM, Haverhill, Mass.; WJHP-FM, Jackson- ville, WJLB-FM & WLDM, Detroit; WLRD, Miami Beach; WMMW-FM, Meriden, Conn.; WTOA, Trenton; KQV-FM & WKJF, Pittsburgh; KRKD-FM, Los Angeles. Quadrupled use of FM channels is claim of Multiplex Development Corp., 70 Pine St., New York, (Wm. S. Hal- stead), in reporting results of field tests to FCC this week. Company says tests of its multiplexing system (via facili- ties of former WGYN) show that regular FM program can be broadcast uninterrupted, while same channel car- ries another program of AM quality, plus mobile radio service, plus facsimile or teletype. Company’s interest is patents and equipment manufacture, has petition to amend FM rules pending before Commission. It reports Navy greatly interested, particularly in facsimile weather map possibilities. It also thinks system may be way off FCC “hook” for FM stations now rendering transit, store- casting or functional music service. Lamenting failure of FM to grow as anticipated, and saying that “quality of radio reception in most parts of the country has deteriorated greatly in the last 5 years,” editorial in Feb. 14 New York Times puts blame on manu- facturers. It states that “only a few have had the fore- sight and courage to promote and sell FM sets,” but points with pride to increase, from 585,000 to 838,000, of FM sets in New York area during 1950. Editorial concludes; “As the guardian of the public’s right to good radio reception, it is time for the FCC to find out whether the opposition to modern FM broadcasting is inspired by selfish motives, and if it is, to do something about it.” The Times owns WQXR & WQXR-FM. Extremely valuable engineering tool, engineers say, is new “RF Micropotentiometer” developed by Bureau of Standards’ M. C. Selby. Their only reservation is that it may prove “laboratory-bound,” i. e., too expensive or deli- cate for ordinai'y use. Bureau says device provides “accu- rate voltages from 1 to 10“ microvolts without the use of attenuators” up to 1000 me, should prove particularly use- ful in measuring receiver sensitivity. Another “scenery saver”: “Scenescope,” like “Vista- scope” (Vol. ,7:8), employs photographs in box in front of camera lens to make actors appear to be moving in scenery difficult or impossible to i-eproduce in studio. Invented by Frank Caldwell apd used on WOR-TV, New York, Scene- scope employs several transparencies and number of mir- rors, whereas Vistascope uses single photo with cutouts. 5 Personal Notes: Will Baltin, tea secy.-treas. since its inception in 1944, resigns as of March 9 to join Screen Gems Inc., subsidiary of Columbia Pictures Corp., as sales mgr. of new film series titled Disc Jockey Toons to be made especially to synchronize with playing of standard records . . . Lowry H. Crites, Genei'al Mills adv. comptroller and director of media, adds duties of TV-radio program direc- tor under adv. v.p. S. C. Gale; Henry Cox, ex- ABC, ap- pointed his aide . . . Bill Hodapp, continuity editor of WAVE, Louisville, becomes director of Teleprograms Inc., New York, newly formed by Alfred P. Sloan Foundation and NBC-TV to produce documentaries , . . George M. Halbert, from Legal Dept., named TV contract negotiator for NBC’s TV talent & Procurement Dept, under Carl M. Stanton, mgr, . . . Walter D. Scott, NBC Eastern radio sales mgr., promoted to national radio network sales mgr., and Gordon H. Mills upped fi’om Eastern sales to Midwest radio network sales mgr. . . . Peter Finney promoted to v.p., Erwin, Wasey & Co., in charge of Admiral account . . . Frank E. Mullen, ex-NBC, now residing in Los An- geles, retained as management consultant for Los Angeles Times’ KTTV, expected to advise on choice of successor to mgr. Harrison Dunham, resigned . . . David Taft, brother of executive v.p. Hulbert Taft Jr., named managing direc- tor of WKRC & WKRC-TV, Cincinnati . . . Wm. O. Cramp- ton, ex-WSYR-TV, now production mgr., WAFM-TV, Bir- mingham . . . Roy Wilson, New Yoi'k radio producer, ap- pointed program director of WLWC, Columbus, succeeding Tom Gleba, resigned , . . Robert Seal, ex-NBC & KOB-TV, Albuquerque, appointed chief of pi'ogram operations of KTTV, Los Angeles . . . Edgar Kobak named permanent chairman of BAB . . . Helen Mobberley, prominent in Wash- ington radio circles for many years, has resigned as asst, to gen. mgr. of WWDC to join DuMont’s WTTG . . . Ivor Kenway, ex-ABC v.p., now with Grey Adv. Agency, N. Y. That sharp observer of the amusement business. Va- riety, in Feb. 28 issue, puts finger on several noteworthy trends: (1) NBC, probably others, finding candy-popcorn sales prospects too valuable to resist, are planning to open up their studios and TV theatres to concessionaires. Famed Radio City Music Hall has capitulated, after having been one of last theatre holdouts. (2) “The radio programming market is going begging. Not even the ratings appear to matter these days, when the average sponsor has become so TV-happy that you can’t even give him a radio show ' for free.” Examples of well-rated programs hard to sell I are NBC’s Big Show, Nero Wolfe, Sam Spade, Hedda Hopper, Magnificent Montague, Duffy’s Tavern and CBS’s Hear It Now, Songs for Sale. (3) TV now has more net- ' work sponsors than AM, 173 vs. 129, therefore “this diver- sity of sponsorship means that economic shakeups are less likely to disrupt the TV pattern.” Variety also points out i that 74 of the TV sponsors haven’t been in radio for at least 5 years, quotes ABC v.p. Fred Thrower’s opinion that this means radio hasn’t as much to fear from TV as first :l thoiight. I TV quirks & curios: Opportunity for TV “bootleggers” I or “wavetrappers,” living between TV microwave stations, i is visualized in March Tele-Tech: “The temptation must be strong for would-be viewers who, while denied TV serv- ice through the freeze of the FCC, know that main trunk lines carrying video pass close by them.” Magazine sees 1 no great difficulty in building 4000-mc receiver to utilize signals . . . Reason for chilly house of Eben Thompson, ^ Lexington, Mass., tiumed out to be heat from TV set, which i: threw oil-burner thermostat out of kilter . . . Experimental I stove with a built-in 7-in. TV set, to sell for about $500, |i was displayed bv Western Stove Co. to test buyer reaction i" Supreme Court forbids censorship of TV films by States or localities, in refusing Feb. 26 to review decisions of Fed- eral courts in Philadelphia denying State Board of Censors’ efforts to preview TV films as it does motion pictures. Courts had held Congress set up FCC to regulate broad- casting and had thus “occupied fully the field of TV regu- lation.” State Board’s appeal was opposed jointly by Philadelphia’s WPTZ, WFIL-TV, WCAU-TV, Pittsburgh’s WDTV, Lancaster’s WGAL-TV (Vol. 6:36,50). “Invasion of privacy” was charged in St. Louis this week by “betting commissioner” James J. Carroll, who re- fused to testify before Kefauver Crime Committee as long as KSD-TV’s cameras were on. Sen. Kefauver said Car- roll would be cited for contempt, starting debate among lawyers and jurists as to whether such telecasts are viola- tion of constitutional I’ights and whether they’re conducive to “quest for truth,” even if legal. Detroit stations covered hearings last week, got terrific viewer response, no legal repercussions. Los Angeles’ KECA-TV was set to carry them next. Censorship of TV by FCC was advocated by Rep. Thomas J. Lane (D-Mass.) in Feb. 28 speech on House floor. He accused TV of “abusing the hospitality of Amer- ican homes with lewd images and suggestive language that . . . excite those who are underage and distress every decent adult.” He told of recent criticisms by Archbishop Cushing, of Boston, who warned TV, particularly come- dians, to clean up or face concerted action of clergy, and Bishop Wright, of Worcester, w'ho deplored “poor taste of a sexy-voiced and hip-twisting torch singer who belongs in a barn.” House hearing on McFarland Bill to streamline FCC (Vol. 7:4, 6, 8) is likely, now that Interstate & Foreign Commerce Committee is lining up hearings on measures involving various agencies under its jurisdiction. Senate and House committees have been playing ring-around-the- rosy with bill: Former wants House to pass McFarland bill, latter wants Senate to pass FCC-advocated bill to expand Commission’s monitoring activities. Senate is willing to pass monitoring bill, but only if “amended” to include Mc- Farland measure. House committee held hearings on Mc- Farland bill last year, but says fresh one is needed because of new members on committee. Substitute for radiation bill — suggested by Senate Interstate & Foreign Commerce Committee in lieu of military’s sweeping measui’e (Vol. 7:8) — has drawn com- ment only from NAB so far. NAB agreed in general with Senators’ idea — brief amendment to Communications Act Sec. 606(c) — but wanted to make sure that (a) President could close down or take over control of stations and other electromagnetic devices only after issuing proper procla- mation, and (b) owners would be assured “just compensa- tion” when stations and devices are either closed down or controlled. Experimental TV station in Emporium, Pa., is now being sought by Sylvania, which was recently slapped down by courts for illegal transmissions (Vol. 7:5). Company filed application with FCC this week, asking authority to experiment on Channel 7, and on 520-540 & 870-890 me for purposes of testing tubes and circuits, particularly in fringe areas. Station would operate 84 hours weekly — half test pattern and monoscope, half rebroadcasting sig- nals of WJAC-TV, Johnstown. Power's planned are 42 watts for No. 7, 168 for 520-540 me, 300 for 870-890 me. Series on TV station design, by noted designer Dr. Walter J. Duschinsky, 425 E. 53rd St., New York, is being IVaUued in 4 successive issues of RC.'V’s llroudeust News. Illustrated articles develop subject from basic planning to specific application. 1519 CONNECTICUT AVE. N.W. !/ WASHIh WITH AM~FM REPORTS WASHINGTON 6, D. C. • TELEPHONE MICHIGAN 2020 Nobilizalion Repo March 3, 1951 NEW SHORTAGES LOOM, WAR ORDERS FEW: Govt, officially acknowledged this week, for first time, that military orders, under present planning, will require only minor fraction of electronic industry's capacity (Vol. 7:3) — therefore civilian produc- tion must continue indefinitely. Meanwhile, materials outlook continues to worsen. More than a score of electronic equipment and component manufacturers, sum- moned hastily by wire, were told in Washington March 1 by Defense Production Admin- istrator Wm. H. Harrison that only small part of nation's vast electronic plant is now required for military production. (For list of those attending, see p. 7.) Conference was called ostensibly to discuss effect of coming steel-copper- alvuninum durable goods limitations (Vol. 7:8). Gen. Harrison said TV-radio industry should be less affected by these restrictions than by shortages of other materials. Ingenuity and know-how of industry — as already demonstrated in TV-radio conservation programs — should keep civilian production going, Gen. Harrison said. But he could give no assurances materials will be available to do the job. He did say DPA and NPA will continue to give the industry sympathetic consideration to help keep plants operating. Govt, officials painted dismal picture of materials outlook. Cobalt , they hinted, may eventually be cut off entirely from the ciyilian industry. And they couldn't promise extra copper to substitute for cobalt in speaker magnets. Tungsten and selenium were singled out for special mention as critical items — pointing up new shortage problems facing industry later this year. ^ ^ V ^ First all-out allocation of tungsten supply (Vol. 7:4) — scheduled to begin this month — was postponed until April. But tungsten processors and NPA officials this week characterized shortage of that metal as serious. Far Eastern supplies of tungsten have been cut off. What's worse, there is no known substitute for the metal in vacuum tube and incandescent lamp filaments. Large quantities of tungsten are also used in compounds for sealing broadcast and power tubes. In addition, tungsten is used heavily in making tool steel, carbide and jet plane engines. So you can expect crisis in electronic tube supply in 3-6 months. Previous tube shortages have been largely due to lack of plant capacity. Most tube makers by now have enlarged their plants, but shortages — first nickel, then tungsten — are creeping up. Ever-increasing military and essential civilian demand for tubes (new 1^0 priorities will be big factor) will leave smaller and smaller amount for original and replacement equipment in home TV-radio sets. * * * * Cobalt-copper-selenium shortage will put 3-way squeeze on TV manufacturers. Speaker makers have been allotted 4-5000 lbs. more cobalt this month than last (Vol. 7:5), but their ration is enough for little more than one-third of normal produc- tion. With appropriate circuit changes, set manufacturers could use copper-wound electromagnets instead of cobalt-containing alnico speaker magnets — but 35 lbs. of copper is needed to do the magnetic work of a pound of cobalt. Some manufacturers are using selenium rectifier voltage-doubler circuits to eliminate power transformers, with resultant large saving of copper and steel. Some of the copper saved is used in electromagnetic speakers, replacing the alnico type. This cobalt-saving method may backfire if selenium shortage becomes severe as more manufacturers turn to voltage-doubler circuits. Nev; electrostatically-focused picture tubes (Vol. 7:1, 3-8), scheduled to be in production next month, will add materially to savings of cobalt. But don't get idea that switching to the new tube will release more cobalt for speaker magnets. 7 It’s far more probable that NPA will progressively tighten TV-radio cobalt alloca- tion — as industry, through its own conservation program, devises ways to use less i and less of the critical metal. Thus, cobalt saved by the industry won't be avail- ^ able for the industry's use. It will go into war materials. Silver lining in cobalt-copper cloud is possibility of development of new speaker using little or no critical metal. Laboratories are at work on this proj- ect. Under active study is capacitance speaker — variation of ancient capacitance microphone and earphone — whose major metallic part is sheet of alnmin^m -Pnii- Nobilization Notes: Defense Dept, has obligated $23.1 billion in expenditures for first 7 months of fiscal 1951 (July through January). Procurement obligations for so- called hard goods (aircraft, ships, ammunition, electronics- communications) amounted to $14.1 billion, although addi- tional electronics-communications are obviously included y in additional $800,000,000 for military construction and facilities expansion. Remaining $8.2 billion went for clothing, subsistence, pay, research & development, etc. Industry-wide conservation program will be sparked by RTMA. President Robert C. Sprague March 2 asked all member companies to cooperate in materials-saving P plan, and announced industry’s engineers will meet soon under direction of RTMA Engineering Dept, director Dr. W. R. G. Baker to implement program. Such a program, 1 Sprague wrote RTMA members, will enable industry “to obtain the materials it needs to keep production of TV- I radio sets at a healthy level,” thereby assuring “that a 13 , vigorous and efficient industry will be in existence against I the day when all-out production for war may be needed.” Mobilization Personals: Arthur S. Hawthorn, ex-RCA I fabricated products sales mgr. and production expert, named special asst, to W. W. Watts, RCA v.p. on leave, i Assistant to DPA Administrator . . . Eric D. Bovet, sta- I tistical expert, ex-Navy authority on production and pro- curement scheduling, author Bureau of Ships booklet, ' Standardization of Electronic Equipment, named to staff of NPA Electronic Products Div. Among unclassified military contracts for electronics and related equipment ($100,000 or more) announced by Commerce Dept, for 2 weeks ended Feb. 28: Through Sig- nal Corps, Philadelphia — Federal Telephone & Radio, $1,- 252,992, electron tubes; Johnson Service Co., Milwaukee, $572,400, radiosonde modulators (40,000 units) ; Eastern Co., Cambridge, Mass., $100,000, public address sets (225); Wilcox Electric Co., Kansas City, $100,000, amplifiers (51). Through Air Materiel Command, Dayton — GE, $365,750, radio components. Through Navy Aviation, Philadelphia — Hazeltine, $112,700, attenuator and modulator load, and 100 absorbing screens. RCA was awarded $272,700 in con- tracts— $197,700 for tubes through Navy Electronic Sup- ply Office, Great Lakes, 111., $50,000 for 50 search receivers through Signal Coi’ps and $25,000 for tube development work through Navy Bureau of Ships, Washington. Ru- dolph Wurlitzer Co. announced March 1 that it has been \ awarded more than $5,000,000 in defense contracts through ) Signal Corps and Army Quartermaster Dept. “Civil Defender” is name GE gives new receiver (30- 50 me & 152-174 me) designed for police, fire departments, ' power companies, etc., to pick up broadcasts from local civilian defense headquarters. Through use of special tone, I operator at headquarters can activate selected groups of receivers, if desired, Subcontracting exhibits similar to Air Force’s New ' Yoik display (Vol. 7:7-8) will be s[)on.sored by Army Oi-d- nance Dept, at its 14 district offices throughout nation. • Date not yet set. i Electronics industry representatives who attended March 1 meeting called hy NPA Administrator Manly Fleischmann (see p. 6) probably will be nucleus of new Electronic Industry Advisory Committee. End product manufacturers present included: Richard Graver & Frank Uriel!, Admiral; Frank Hughes & W. A. Blees, Crosley; H. C. Roemer, Federal Telephone & Radio; Ray Durst, Hallicrafters; Howard C. Briggs, Hoffman; J. B. Elliott, RCA; Ray C. Ellis, Raytheon; Franklin Lamb, Tele King; W. V. Bennett, Wells-Gardner; Fred Lack, Western Elec- tric. Among electronic component manufacturers pres- ent: W. E. Wilson, Acme Electric; A. D. Plamondon .Jr., Indiana Steel Products; H. A. Ehle, International Resist- ance; R. F. Sparrow, Mallory; A. P. Hirsch, Micamold; L. F. Muter, The Muter Co.; Sai'kes Tarzian, Sarkes Tar- zian; R. S. Sprague, Sprague Electric Co.; A1 Delighter, Standard Transformer; Max Balcom, Sylvania; H. L. Oleson, Weston Instrument. Theatre TV was demonstrated to military and civilian govt, officials in Washington Feb. 26-28 by General Pre- cision Laboratory. Film-using system is semi-portable and company officials think military may be interested in the equipment for troop entertainment as well as for train- ing and direct military applications. Compact cameras are made to GPL specifications by Pye Ltd., Cambridge, England (Vol. 6:15). Military recently viewed 2 other TV demonstrations: Philco’s “conservation” set (Vol. 7:7) and CBS-Remington-Rand color show (Vol. 7:5). Paramount reports that military has recently inspected both its tri- color tube (Vol. 6:18-36) and big-screen theatre TV equip- ment. Paramount says that tri-color tube is now in pilot production at Machlett; that sizes ranging from 12% -in. to 20-in. have been made; that CBS has seen it, but that Paramount isn’t selling any. “Planned compliance program” was begun this week to determine how well NPA orders are being carried out. Federal Trade Commission will make spot surveys to find out how well orders are understood and followed, with aluminum fabricators scheduled to be first group checked. Individual complaints are being probed by NPA com- pliance staff, which has agents in Commerce Dept, field offices throughout nation. Telephone and telegraph industry is reviewing its requirements for strategic materials such as copper, nickel and zinc at NPA’s request, so that allowances can be pro- vided for communications equipment in forthcoming con- trolled materials plan (Vol. 7:3). * * * * What’s new in electronics? Commerce Dept.’s Office of Technical Services supplies some of the answers in Electronic Equipment Construction — New Objectives, New Techniques and New Components, 300-page illustrated re- port prepared by Stanford Research Institute under con- tract to Office of Naval Research. Copies of the report, PR 101 745, are available for $7 each from OTS, Dept, of Commerce, Washington 25, 1). C. Report is reviewed in February Technical Rejwrts Newsletter, available free from OTS or from Commerce Dept, field offices. PRICE (NOT MARGIN) CONTROL FOR TV: TV~radio manufacturers anticipated rollbacks when price controls went into effect — rollbacks which haven't materialized. Thus, when TV-radio are included under Ceiling Price Regulation No. 7 (CPR-7), it isn't going to hurt. In fact, the industry should be sitting pretty. TV-radio will be brought under CPR-7 in week or so. Under Sec. 43 of CPR-7, manufacturers are allowed to establish dollars-and-cents ceiling prices. This means makers of "branded articles" may ask OPS for ceilings on prices, rather than on margins such as CPR-7 applies to soft goods like shirts, dresses, shoes, etc. Base date for TV-radio will be Jan. 25, which is when over-all freeze on prices became effective (General Ceiling Price Regulation), still applicable to all except soft goods. Most TV-radio manufacturers raised prices late last fall and in January when new lines were introduced. Therefore, Jan. 25 freeze won't affect them adversely. New models can be priced on same basis as old. Under Sec. 43, manufacturer must furnish OPS with reasons for suggested price. This can be higher if costs have risen. But margin relationships, percentagewise, must remain same as under former markup practices. Major purpose of CPR-7 is to keep margins on branded articles at levels pre- vailing at Jan. 25 cutoff date. Private-label sets may be priced for retail in 2 ways: (1) Group of manufacturers making same "name" item for individual merchan- diser can get together, under Sec. 43, and do as manufacturers of brand names do. (2) Retailer can follow procedures covering soft goods set up in CPR-7. This involves individual retailer calculating his Feb. 24 markup percentage, that being base date for soft goods. Essence of OPS philosophy is to hold same markups or pricing structures as before — as bulwark against inflation. This doesn't preclude higher prices, for allowances will be made for increased costs (as was done this week for autos). By same token, prices could be rolled back to pre-Korea levels — in OPS discretion — if it's found markups have been increased without justification. But that won't happen for some time. OPS must study many individual industries and their current practices, compare their margins with pre-June 1950, then decide whether they're out of line. According to Michael V. DiSalle, price stabilization director, CPR-7 is intended to "take prices out of refrigerator [the Jan. 25 price freeze], take a good look at them, then put them in the deep freeze — and keep them there." 'p *1* Lee McCanne, Stromberg-Carlson v.p. , is OPS official in charge of TV-radio controls, taking over March 5. He reports to Eugene E. Smallwood, ex-RCA, chief of Houseware & Accessories Branch, Consumer Durables Division. Chief of that division is Harold B. Wess, ex-Macy's & Alexander's, New York, appointed this week. OUTPUT & STOCKS UP RUT SALES LAG: Continuing high production, lagging retail sales, mounting inventories — that, in a nutshell, is the current TV trade picture. Yet nobody seems particularly worried about outlook, except for the well- justified fears among manufacturers that defense orders won't take up eventual slack in civilian production forced by materials cutbacks (see p. 6). Key manufacturers seem agreed that production will continue at high level until middle of second quarter at least, i.e., mid-May. The "thinning out" is seen through spring and summer, "very thin" in fall — and, after that, who knows? Retail trade is described as "quite soft" throughout most of country, with - 8 - 9 hypos being applied by way of heavily stepped-up advertising campaigns. Distributor-dealer buying has been extremely heavy in recent months in an- ticipation of shortages which haven’t materialized — yet. Result is piled-up in- f ventories, less disposition to take from factories, and "tremendous push" now to ; dispose of stocks — in face of normal resistance at income-tax time. There's plenty of money, nevertheless, to finance the inventories, one of I the biggest producers tells us, for nobody believes saturation point is anywhere ; near — despite FCC's freeze on new stations, new markets. j "We've been living off the fat for a long time," said another big set maker, t referring both to manufacturing and selling, "and we must expect a leveling off. It'S too much to hope for, in this economy, to keep running at last year's acceler- ating pace. We're in for production restrictions anyhow, and as for moving today's inventories we aren't at all worried. TV will always be a healthy business." Another top producer admitted his production is down 20% from last-quarter 1950 (yet 25% ahead of first quarter 1950). He thought gradual drop in whole in- dustry's output will be evident during next 60 days. He particularly noted "very , strong demand for radios of all kinds" which he attributed to shortages last year : because so many manufacturers concentrated on TV. Stores are cutting TV orders, meanwhile, especially consoles and combina- : tions — many refusing to buy off-brands altogether. Published reports this week that RCA is cutting back higher-priced models as of April 1 are elucidated thus; Second quarter normally means higher ratio of low-priced to high-priced ii models. Same goes for third quarter. Best season for high-priced sets is September I through December. "We're making as many sets as v;e can," spokesman said, "and that t includes no more cutbacks than normal for second and third quarters." He agreed i last half of year "will be rough" but said the industry now faces "job of selling" r. whereas heretofore things have largely come its way. !:{: RTMA production figures continue well up — 7th week of first quarter (week 1 ending Feb. 16) showing 181,945 TVs, of which 4970 were private brand. This com- i pares with preceding weeks' 154,774, 167,315, 176,860, 188,758, 167,859, 105,699, ■ respectively — makes total of 1,145,210. It's flying start toward 5,000,000 pre- dicted for all 1951 by Zenith's Henry Bonfig this week. Radios in 7th week leaped to 555,689 from preceding week's 322,300 — and total radios to Feb. 16 were 2,255,958. Of Feb. 16 week's radios, 213,833 were : home sets, 112,363 auto, 27,493 portables. Week was best since early December. Average weekly output of TVs for first 7 weeks this year is approximately 164,000, as against average 188,000 for the 15 weeks of fourth quarter 1950; for same periods, radios v;ere 319,000 vs. 333,000. Trade Personals: David Samoff, RCA chairman, guest of honor Feb. 27 at private party in Waldorf-Astoria, with RCA president Frank Folsom as host and top RCA execu- tives attending, on occasion of his 60th birthday. Gen. Sarnoff currently is devoting most of his time to chairman- ship of 1951 American Red Cross fund campaign . . . Don G. Mitchell, Sylvania president, named special consultant to Air Force, aiding Undersecretary John A. McCone in elec- tronics procurement . . . Zeus (Zeke) Soucek, onetime president of old Philharmonic Radio Corp., now Washing- ton representative of DuMont, handling govt, contracts . . . Edwin B. Hinck succeeds Maj. Harry Van Rensselaer, re- called to Air Force, as sales mgr., DuMont electronics parts div. . . . M. M. Heymann named sales v.p. Colortone Television Co. Inc., parent company of International Tele- vision Corp. (private brands) . . . Jerome L. Strauss named v.p., Lewyt Corp. contract manufacturing div., now heavily into electronics . . . Wm. R. Holt has retired as president of Eureka Television & Tube Corp., will reside in Florida . . . Chester A. Bejma, former Chicago mgr., pronioted to Capehart-Farnsworth distribution mgr. . . . John Meek In- dustries elects 5 v.p.’s: Russell G. Eggo, executive v.p.; B. L. Bethel, purchasing; Charles E. Palmer, production; Lewis G. Woycke, engineering; Charles L. Hubbard, plan- ning . . . Leo Neumann, ex-Triumph Mfg. Co., Chicago, named purchasing director of Kaye-Halbert . . . Bert C. Tievy succeeds Bob Lieberman, resigned to start own busi- ness, as asst, to Don Ferraro, president of Jewel Radio . . . F. J. Cooke, ex-Remington Rand, named gen. mgr. of Reeves Soundcraft’s colorcraft and magnetic tape div. Philo Farnsworth, famed TV inventor now with IT&T subsidiary bearing his name, outlined “shape of TV to come” in recent talk to joint IRE-AIEE meeting in Ft. Wayne. He predicted: reversal in picture tube trend from large direct-view to small projections 6-in. long and “15,000 times brighter” than direct-view; camera tubes 100 times as sensitive as present; pictures without visible line structure; television-telephone service; TV stations on shf (around 3000 me). Regarding projections, he said: “As tubes approach their potential performance, projection TV will come into its own and may relegate direct-view tubes to scientific museums.” 10 - Topics & Trends of TV Trade: Somebody’s missing good bet in not piling more low-priced TV receivers into the free (unrestricted) Cuban market — meaning Havana and environs, with 2 telecasting stations already serving population area of well over 1,000,000 and several more outlets due to be erected this year (see p. 12). TV has made big hit in Cuba’s capital, now enjoying sugar boom, but trouble is there’s very small middle class. Upper classes are doing most buying of plentifully-sup- plied large sets and combinations. More poorer people could be sold on time-payment plans, but they simply can- not afford kind of payments required on higher-priced units. There are no credit limitations. TVs retail at nearly twice as much as in U. S. — what with 20% duties, export fees, shipment costs, etc. Whole- saler pays just about 50% more for receivers than his American opposite number, and prices posted in Havana shops indicate cost to public very nearly 100% more than in U. S. A 14-in. table model, for example, retails at about $450, including installation and year’s guarantee. Dealer markups generally are 30%, but there’s plenty of price-cutting. Distributors of old-line products, usually family businesses dating back many years, do own bank- ing. Dealers are mostly exclusive, with distributors hav- ing some retail shops of their own. Uniformly, they say they’re eager to crack low-price market but simply can’t get enough table models. They all forsee big TV boom in Cuba, especially when third and fourth stations get going this year and satellite outlets parallel AM networks. Leading brands thus far seem to be Philco, RCA and Zenith, with Admiral lately beginning to push them hard. Other brands shown in January import records are Arvin, DuMont, Emerson, GE, Hallicrafters, Midwest, Motorola, Philips (of Holland), Stewai’t- Warner. It’s estimated 12,000 TVs are in use, import figures totaling 10,210 sets for October (when first station went on air) through Jan- uary. February imports continued good, and quite a few sets are said to be “bootlegged” into the country. * * * * New sets: Stromberg-Carlson has 24-in. console with AM-FM-phono (Stancliffe) at $975 (tube and parts war- ranty $15 extra) . . . Air King has new Model 17M2, 17-in. blonde metal table at $259.95, $20 more than same ma- hogany metal set (Vol. 7:2) ... Canadian GE has 17-in. walnut table at $459.50; compares vdth U. S. mahogany table at $289.95 . . . Bendix has several new models on tap for release at Chicago Furniture Mart in June, will dis- close them to its TV steering committee of sales and field men in Baltimore March 16 . . . Stewart -Warner showed new 17 & 20-in. sets to district sales managers this week; they will be released after April 1 . . . Zenith reported showing several new sets with rectangular tubes to dis- tributors at regional meetings. Trade Miscellany : When Army begins filling up train- ing centers, says Radio & Television Retailing, watch for heavy demand for TVs and phono records for recreation centers; also, watch for rush of soldiers to buy portable radios . . . Mahogany Assn, reports TV industry second only to furniture industry as consumer of that wood . . . RCA Victor Distributing Corp., Chicago, parent-owned, as hedge against possible curtailments in TV-radio, adding to appliance line by taking on American Stove Co. space heaters . . . Motorola first-half 1950 ad plans contemplate rate $1,000,000 higher than same period last year, using nearly all media; during 1950, about $15,000,000 was spent on national and local advertising . . . Philco president Wm. Balderston subject of biographical sketch in “Business and Finance Leaders” column of Feb. 28 New York Herald Tribune. Govt, orders reported in 1950 by RTMA members, ob- viously incomplete, presumably for security reasons, totaled $298,381,350 with this breakdown: radar $180,139,- 104, communications $94,508,589, sonar $11,122,115, labora- tory & test equipment $6,421,326, navigational aids $6,178,- 734, crystals $11,482. Station equipment sales in 1950 (AM & FM only, TV uni-eported) : AM transmitters $1,- 668,197, FM transmitters $257,889, studio equipment $1,- 500,146, antennas $242,133, miscellaneous $971,895. Total value of exported station equipment was $1,748,048. Ci- vilian aviation equipment sales billed were $938,058, ma- rine billings $2,628,154. Magnavox sales for fiscal year ending June 30 could exceed $50,000,000, compared with $31,716,630 last fiscal year, according to president Frank Freimann. Addressing 3-day meeting of district sales managers in Fort Wayne this week, he said loudspeakers are today’s most critical component. In all other components, company is in better shape now than 3-5 months ago, he said. Magnavox makes own speakers. “But, even with credit restrictions, excise | taxes and every other conceivable obstacle before us today, we are able to sell a console TV receiver right now for less than price of a table model just 2 years ago,” Freimann said. January picture tube sales by RTMA members (for nev/ sets) totaled 580,317, worth $16,272,654, down from December’s 686,815. Value of all CR tubes sold in January, including renev/al, govt, and export, was $18,981,031. Over 95% of picture tubes were 16-in. and up — 16 & 17-in. rectangulars accounting for 67%. Month’s receiving tube ' sales numbered 37,042,303, of which 25,550,275 went into TV or radio, balance into other devices, replacement, ex- port, Govt. December total was 38,326,641. Vidcraft Television Corp., New York, lists liabilities of $485,482 and assets of $159,096 in schedules filed in Fed- eral district court in New York this week, offering to pay creditors 100% on installments in Chapter XI plan (Vol. 7:7). Liabilities include $367,323 unsecured claims, $71,179 ; secured, $41,871 taxes, $3798 notes, $1310 wages. Assets include $76,377 stock in trade, $51,590 receivables, $28,162 machinery & fixtures, $1766 autos, $1200 prepaid insurance. Plant expansions: Crosley has started work on new building at its Richmond, Ind., plant, providing 211,200 sq. ft. of space for military production, to be ready by Oct. 1 . . . Philco has leased 5-story structure, about 2 mi. from its Philadelphia plant, providing 140,000 sq. ft. . . . Insuline Corp. of America has acquired 50,000 sq. ft. factory, its third, in Long Island City, is now equipping it with $100,- 000 worth of machinery. “Negative selling” in Springfield, Mo., doesn’t dis- i courage customers, despite fact nearest TV station, Kansas City’s WDAF-TV, is 148 miles away. So reports Retailing Daily, which says dealers assure shoppers they can expect decent reception only 50% or less of the time. Dealers estimate some 500 sets within 30-mi. radius of Springfield, say that people would buy more if they could get better supply of less expensive models. Another Admiral “spectacular” — this time on Miami I bayfront, between MacArthur & Venetian Causeways. It’s I an electric sign 65-ft. high, 50-ft. wide, uses same sky- i rocket effect as Chicago display installed last August I (Vol. 6:35). Cost of Miami sign is approximately $100,000. ' Shortages and likely lack of new models of TV sets, I as well as other electrical merchandise, has led Chicago ! Electrical Assn, to cancel its 1951 National Television & Electrical Living Show. ^ Western Summer Market will be held at San Francisco ■ Merchandise Mart July 16-20. 11 - Financial & Trade Notes: Admiral earned $18,767,554 on record sales of $230,397,661 during 1950, according to president Ross Siragusa's annual report Feb. 28. Sales were up 106% from 1949 volume of $112,004,251, earnings up 129% from 1949’s $8,206,153. Per share earnings for 1950 were $9.73 on 1,928,000 shares outstanding, as against $4.26 on equivalent number of shares in 1949. Total income was $38,563,506, but Federal, State and Canadian taxes took $19,405,900 — more than the final net profit figure. Net worth increased to $32,751,011 from $18,024,048 at same time preceding year. Dividend dis- bursements were $1,982,000, as against $1,000,000 in 1949, explained by Siragusa as “a conservative dividend policy in 1950 because larger sums were required to finance the more than 100% sales gain achieved, because of the present expansion program and the possibility of acquiring further plant facilities . . . should favorable purchasing oppor- tunities arise.” As for outlook for defense production, Siragusa stated Admiral’s military manufacturing potential today ap- proaches $400,000,000 annually (with 8 plants) as com- pared to $40,000,000 at its 1944 peak (2 plants). Starting with TV output of 2700 sets daily in 1950, Ad- miral reached approximately 5000 daily in September, held that rate until year’s end, Sh’agusa stated. RCA’s biggest business year, 1950, resulted in $586,- 393.000 gross sales, up 47.6% from 1949’s $397,259,000 which was well ahead of 1948’s $357,617,000. Net profit after all taxes was $46,250,000 ($3.10 per common share) in 1950 vs. $25,144,000 ($1.58) in 1949 and $24,022,000 ($1.50) in 1948. During 1950, Federal taxes totaled $50,- 743.000 vs. $16,783,000 in 1949 and $17,049,000 in 1948. Foregoing is gist of RCA annual report, released this week, which also pridefully points out that dividends totaling $13,857,000 were declared on common stock dur- ing 1950, representing $1 per share as against the 50^ paid I in 1949 and 1948 — this in addition to $3,153,000 paid on I preferred stock. Also noted were total current assets at end of 1950 of $209,959,000, as against $154,831,000 at end of 1949; and net working capital of $130,902,000 as against $96,553,000. Only phase of RCA operations that failed to show in- crease was NBC-AM, down about 4%, but NBC as whole, adding in TV, showed $92,373,000 gross revenues as against $72,867,000 in 1949. Biggest revenue makers, largely due to TV, were RCA Victor, RCA Laboratories and RCA In- ternational which combined grossed $476,091,000 in 1950 vs. $307,309,000 in 1949. ❖ * ❖ Westinghouse reveals its first quarter TV-radio pro- duction is 20% below last 1950 quartei’, but expects to maintain 60-70% of 1950 TV-radio-appliance volume throughout 1951. Annual report shows over-all sales and earnings at all-time record in 1950: sales $1,019,923,051 vs. $945,699,382 in 1949; net income $77,922,944 ($5.36 a common share) vs. $67,266,555 ($4.95). Consumer goods I' enjoyed over-all increase in sales of about 50%, major ap- || pliances up about 40%, TV-radio up some 30%. t President Gwilym A. Price disclosed that more than ^ 35% of Westinghouse’s 1951 production will be for mili- ^1 tary requirements, but long-range program contemplates > doubling facilities for consumer goods production because ; of expansion in “electrical living.” He said present rate of TV-radio output “is possible only because of improve- ments in chassis design and circuits which have reduced i the amount of copper needed for each set.” Consumer products v.p. John H. McKibben said there has been no 1 letup in consumer goods sales. Avco’s Crosley Div. sales (TV-radios, refrigerators, ranges) during 1950 were double those of 1949, president Victor Emanuel reveals in annual report showing Avco earnings of $12,635,633 or $1.65 per common share — more than 3 times last year’s $4,150,466 (54^). Avco’s record sales in 1950 were $256,966,971 vs. $137,398,554 in 1949, with Crosley believed accounting for more than half of total (Vol. 7:1). Mr. Emanuel verified recent report (Vol. 7:6) that Crosley’s 3 Ohio TV stations (WLWT Cincin- nati, WLWD Dayton, WLWC Columbus) moved into profit column in recent months. Report noted Avco has “sub- stantial defense contracts,” but actual production is months away due to time required for tooling and equipment. Stromberg-Carlson, in preliminary report to stock- holders Feb. 23, shows total sales of $37,672,385 in 1950, up 27% from $29,597,011 for 1949. Net earnings for 1950 were $974,731, or $2.53 per common share after allowing for 10 %> stock dividend paid Feb. 1, 1951, as against net loss after tax carry-back of $478,056 in 1949. By retaining earnings, working capital was increased $1,039,000. All operations were profitable, notably company’s 50-kw AM outlet WHAM and its WHAM-TV “which has operated in the black since March of last year, only 10 months after opening [and] continued steadily to increase its earnings.” Dividends: Admiral, 25^5 payable March 30 to holders March 15; Aerovox, 15 35-40 transmitters built, awaiting end of freeze, some already in hands of f applicants, most of balance sold, very fev/ if any left. Of course, some have been exported, and several more will be, mainly to Latin America. 50-70 more planned for completion by early 1952, with orders already being I placed for some of these. Copyright 1951 by Radio News Bureau - 2 - Output of Federal is believed to be quite small, though it, like Raytheon, began making pitch for this lush business (then ranging from SlOO.OOO to $250,000 per station order) just before freeze stopped things. High-powered amplifiers are planned by all 3 makers — DuMont 50 kv/. GE 50 kw & 20 kw, RCA 20 kw. But production apparently awaits demand, and demand awaits FCC's new engineering standards and allocation plan (see p. 1). A few applicants have revealed transmitter purchases, but majority is keep- ing quiet. Purchases have been disclosed by KMBC, Kansas City; WMBD, Peoria; KGW, Portland, Ore. * * * * Recent surge of transmitter orders, probably working to peak at next week's IRE convention, led one manufacturer to halt sales Feb. 1 to March 15. Like the others, he was selling to all comers during FCC freeze, glad to get orders. Lately, however, he began to get so many firm orders that he feared older customers , with contracts contingent on grants of CPs, might be left out in cold. Therefore, he held up all sales, asked contingent contract holders whether they wanted to place firm orders before all transmitters were gone. They've "over-sub- scribed," he reports. Other manufacturers are in about same shape. Associated equipment, such as cameras, monitors, antennas, etc., are also being snapped up, by existing stations as well as applicants. But such gear isn't considered critical ; a station, especially if it gets netv;ork hookup, can get on air with transmitter and very little else. Besides, associated equipment can be pro- duced far more quickly than transmitters. Prospects for new transmitters are dependent on availability of materials and components, of course — subject to defense priorities. Manufacturers usually build "batch" of transmitters at one time, and "manufacturing cycle" used to be about 6-9 months, pre-Korea. Now, it's 9-12 months or more. Plans for uhf are naturally more nebulous, depending entirely on demand which develops after issuance of FCC standards. But all transmitter manufacturers — plus Westinghouse, reportedly, perhaps others — are hard at work designing units. Achieyement of high power is the bugaboo. KEEP YOUR EYE ON 'COMi^UNITY ANTENNAS': Don't kiss off the community antenna idea (Vol. 7:2,7) as a mere f lash-in-the-pan novelty — not yet, at any rate. This "antidote to the freeze" is getting plenty of quiet scrutiny lately — in addition to all-out promotion by marketer Philco and manufacturer Jerrold Electronics. It's a "natural" as a TV "market expander," currently very much needed. Nor can FCC be written out of the picture. It has been querying eyeryone in the business, with an eye to deciding whether such systems are common carriers and thus subject to Commission regulation. FCC decision, one way or other, could come in m.atter of weeks. Principle of system, you'll recall, is simply that of using lofty receiying antenna (atop mountains, buildings, etc.) to pick up distant stations and feed the amplified signals into homes via cable. System may also give uhf an assist, since it can take uhf signals, convert them to vhf — obviating need for uhf tuner and antenna for each home receiver. Regardless of system's future, it's certainly intriguing. As one very per- ceptive distributor says; "It's either going to be one of the biggest deals in TV — or the biggest bust. I can't decide which. But in any event it will be big." Whether system burgeons or poops out probably depends basically on answers to these questions; (1) Will new TV stations, v/hich can service these towns with "free' signals, come on air soon enough to render too risky the necessary heavy investments in com- munity antenna systems? (2) Are many towns unlikely to get decent telecast signals eyen after many new stations are on air, thus justifying community installations now? Only way to get answers to these questions is by guessing when new stations - 3 - will get going and by conducting exhaustive engineering surveys of individual towns and the station reception they're likely to get. Question of equipment shortages, of course, overhangs all estimates. In one small town surveyed, for example, some 300,000 ft. of cable would be needed. Only Philco and Jerrold are out in the open right now, encouraging installa- tions wherever they can. Jerrold advertising manager Sydney Mass addressed Kiwanis Club in tiny Cuba, N.Y. March 12, attracted audience of about 100 from many towns. In addition to towns mentioned in our Vol. 7:2, he revealed that there are projects in various stages of development in Cuba, Dansville, Clean, Corning, Wells- Iville, Bradford (all New York) ; Omega, Kan. ; Manois, Pa. Duluth entrepreneurs are also known to be considering project. 1 Costs involved, according to Mass, include: $4000 per mile from antenna to I first group of homes, $1.50-$2.50 annually for rental of utility poles. Customers pay $100-$125 for installation, S2.50-$5.50 per month for service. Other companies, bigger but slower than Jerrold, are getting into act. It's known that RCA, for example, has been exploring Pottsville, Pa. in collaboration with local distributor Trans-Video Corp. (Michael Malarkey) . t * * * I What FCC will decide about its role is of course unknown. But common car- rier experts outside Commission believe that Communications Act probably could be stretched to cover community antennas — thus empowering FCC to fix rates, quality of service, etc. Yet, says one lawyer, question is sufficiently "marginal" that Commission could easily decline jurisdiction. This legalist said if he were advis- ing FCC, he'd tell it to leave operations alone for a while, see whether they'll grow and provide service, before starting policing action. I System's promoters hope, at any rate, the Commission won't take this ingen- I ious device for bringing TV to small towns and tie it up in the usual snail 's-pace ^ of administrative procedures. ; There are other legal problems — local and state governments, utility com- I missions, etc. In fact. Panther Valley TV Co., Lansford, Pa. (Vol. 7:2) this week I got orders to remove antenna from Summit Hill within 10 days. Town council said t company had violated agreement to pay $100 installation tax and 20% tax on revenue. ? Panther Valley contends tax is illegal, told subscribers service will continue. i RADIO RATES IN TV CITIES HIT AGAIN: Advertisers aren't letting up in their drive to { get radio rates lowered in TV cities. That's obvious deduction from ANA's 22-page April report on "Radio Time \ Values," to be submitted at March 28-31 Hot Springs, Va. convention. Report recommends reduction of night-time radio rates in TV cities from as i much as 60% in Baltimore, Boston & Philadelphia to as low as 5% in Des Moines, Kan- : sas City, New Orleans & San Antonio. For networks, it calls for NBC cut of 19.2%, r CBS cut of 19.4%. Radio broadcasters knew what was coming — apparent when broadcasters' spokesman Broadcasting Magazine this week played up CBS study showing radio better value than ever. ANA tried to get networks to go along in night-time radio cuts last year — but they wouldn't play (Vol. 6:29-31,39). NBC advocated same thing last December, hurriedly retreated when affiliates howled (Vol. 6:50, 7:1). * * ♦ ♦ Here's what latest ANA study purports to show: (1) Cost-per-thousand listeners on CBS for sponsored night-time programs during Oct. -Nov. 1949 and same period 1950 rose 24.6%. For NBC, it rose 27.7%. This compares with increased cost for March-April 1949 and same period 1950 of 21% for CBS, 18.4% for NBC. Programs all occupied same time spots during periods studied. (2) Downward trend of radio listening in TV cities is at rate of 1)4% per month. Average ratings for sponsored CBS night-time shows dropped 18% between March- 4 April 1949 and same period 1950, 21% between Oct. -Nov. 1949 and same period 1950. NBC figures were 18% and 24%. (3) TV's impact affects even most popular radio programs. Lux Radio Theater ratings in 5 TV cities during comparable 1948, 1949, 1950 periods fell as follows: 25.9, 18.1, 10.7. This compares with these rises in 5 non-TV cities; 22.5, 24.7, 23.0. Jack Benny ratings went down in same TV cities as follows: 24.1, 17.7, 12.7; compared with following rise in same non- TV cities; 20.0, 27.6, 29.9. (4) TV's share of total broadcast audience for 6-11 p.m. , Nov. -Dec. 1950 hit incredible top of 70.5% in Philadelphia — these cities having 50% or more; New York, Baltimore, Providence, Dayton, Detroit, Washington, Chicago, Columbus, Cincinnati, Boston, Buffalo, Toledo, Milwaukee, Cleveland, Los Angeles, Syracuse, Atlanta, Rochester. « « « * CBS radio story asserts that average advertiser on its night-time radio net- work reaches 62% more prospects-per-dollar than magazines, 137% more people than metropolitan newspapers. ANA report states CBS radio reaches 591 people per dollar, compared with 365 for magazines, 249 for newspapers. NEW PHASE IN THE TV REVOLUTION: An entirely new body of law may be built around the electronic eye that is TV. For TV can, in effect, crowd millions of spectators into a Congressional hearing room or a courtroom — indeed, almost any kind of meeting — as easily as it can show theatrical and sporting events. Indeed, public trials can be "good theater. " as evidenced by smash-hit tele- casts of Senate Crime Investigating Committee hearings in every city the "show" has played thus far (see p. 12). Court test is already in prospect over whether a wit- ness can be forced to testify before a TV camera. When St. Louis "betting commissioner" James J. Carroll recently refused to testify before Senator Kefauver's committee while KSD-TV cameras were focused on him (Vol. 7:9-10), he was charged with contempt of Congress. Sen. Kefauver, himself a lawyer, took position that: "Television is a recognized medium of public information along with radio and the newspapers." At New York hearings this week, Frank Costello, reputed king of New York's underworld, objected to telecasts as forcing him "to submit himself as a spectacle," won Senatorial ruling his face should not be shown. So cameraman focused on his nervous hands, his shirtfront, knot in his necktie, etc., while voice of course was carried. And stations that evening carried full views via newsreels. Costello, too, took a walk out of hearing March 15 — complaining he was ill, his counsel expostulating against cameras, etc. He may also be cited for con- tempt, providing still another test case over the TV issue. Best legal minds are divided on TV's role and rights — Rep. Clifford Case (R-N.J.) even proposing code of fair procedure for Congressional investigations which would provide "no photographs, moving pictures, television or radio broadcast- ing... shall be permitted while any witness is testifying." Among legal questions pointed up by Kefauver probe; Is traditional principle of open hearings limited by niimber of persons who can physically be seated in Congressional committee rooms — or are the people entitled to be present by proxy via the TV eye? Is presence of TV camera conducive to justice — or will it, as Washington Post editorialized, "encourage the inquisitors to put on a show instead of calmly seeking information" and tempt some witnesses "to resort to spectacular stunts and colorful charges?" Does telecasting of such events "make for a better informed citizenry," as New York Herald Tribune claims, or does it place the unfortunate witness on a freak- show platform and brand him as guilty though he may be innocent? Can a witness be forced "to perform." as Scripps-Howard columnist Robert - 5 - Ruark puts it, "as an unpaid actor for private enterprise. . .for somebody else’s per- sonal gain?" After all, he writes, TV is private business for profit. Is the merciless TV lens — which spotlights every gesture and grimace, and does the actual viewing for the spectator — an invader of privacy and a hawker of editorial bias rather than an impartial recorder? Is TV entitled to same reporting privileges as press, newsreels and radio, which actually do select and edit? Should TV also be given access to courtrooms? Just as it*s revolutionizing radio, the movies, merchandising — indeed, home life itself — TV may bring about brand new legal procedures. 100K for more color publicity — as March 26 Supreme _j Court showdown nears (Vol. 7:10), as reporters find news in March 19-22 IRE convention color sessions, as CBS intensifies promotional campaign, and as reports seep out that RCA has achieved important refinements in its system. Meanwhile, for the long pull — legalities and techni- calities aside — industry attitude is probably epitomized by statement in Motorola’s annual report released March 14: “The progress that a color TV system could make at this time is questionable in our judgment because engineering staffs in our industry are, and will be for some time, primarily engaged in essential military work. ' We . . . believe that color should not be formalized as a . system until such time as it can be done electronically. This again involves more engineers and more time. As we see it, no matter which way the [Supreme Court] decision goes, color TV for the public wdll be several years in the future.” On the other hand, some within FCC seem to rely on this sort of development: Freeze will end and Commis- sion will favor applicants promising to telecast CBS color. These will get on air in new markets. Manufacturers will find existing markets near saturation, turn to new areas where people will insist on color sets. Such thinking involves some big assumptions — in- cluding one to effect that Commission can ignore merits of compatible system. This line of thought also assumes Supreme Court will endorse FCC decision. * ^ * Lineup for oral argument (Coux’t opens at noon) is as follows: 2 hours per side (instead of usual one), meaning sessions may run into next day. Both sides are furiously writing briefs, will be swapping them right up I to day of argument. Solicitor General Philip Perlman ^ plans to handle argument himself, with slight possibility of assistance from staff, perhaps Stanley Silverberg who has done the spade-woi’k — none from FCC. Judge Samuel I I. Rosenman will be on tap for CBS, John T. Cahill for RCA, Judge Simon H. Rif kind for Emerson. Flavor of Emerson’s argument is well-illustrated by ;|i Judge Rif kind’s statement in his brief: “[FCC decision] may iri-evocably congeal the char- 1 acter of TV for generations to come. Once the system J contemplated by the order is established, it can no more I readily be changed than the gauge of United States railway I trackage. A commission possessed of a modicum of re- 1| spect for the opinion of others, or exhibiting the normal |) humility of any finite mind which entertains the philo- II sophical question whether it might be wrong, would not « obstruct, but would indeed solicit the most careful review '1 of its judgment in order to afford the country the maximum f. degree of assurance that its decision is free of detectible r error . . . j; “Congressional policy as reflected in the Administra- I tive Procedure Act and the debates which led to its en- ^ actment is designed to put a tight cui’b upon claims to Personal Holes: Broadcasters elected to Advertising Council’s board, headed by Fairfax Cone, Foote, Cone & Belding: Niles Trammel, NBC; Frank Stanton, CBS; Mark Woods, ABC; Frank White, MBS; Paul W. Morency, WTIC; Ralph W. Hardy, NAB . . . Garth Montgomery suc- ceeds Wm. Chalmers as TV-radio director and v.p., Kenyon & Eckhardt . . . Lloyd GriflSn, partner in Free & Peters Inc., station reps, shifts April 1 from Chicago to New York to direct sales; John A. Cory takes over Chicago office . . . E. D. Johnston, formerly with Caldwell-Rollo law offices, Washington, has joined Roberts & Mclnnis . . . Dixie B. McKey, ex-Washington consulting engineer who recently joined RCA, appointed field representative for microwave and mobile communications products, Dallas . , . Robert W. Breckner promoted to executive director, Edwin C. Met- calfe to sales service coordinator, KTTV, Los Angeles . . . Jerry Lee, program chief of WOAI, shifted to sales mgr., WOAI-TV; Perry Dickey promoted to program mgr. of both AM-TV outlets, Ed Hyman to production director . . . Morgan Ryan, ex-ABC, has joined Kiesewetter Associates, N. Y. . . . Walton Butterfield resigns as v.p., H. B. Hum- phrey Co., Boston, to start own New York adv.-public re- lations firm specializing in TV-radio. administrative omniscience rather than to give those claims the free rein sought by the FCC.” Court’s decision, which could come as eax’ly as April 2 or as late as June 4, would end litigation if it upholds FCC. If RCA and Emerson win, case could be sent back to 3-judge court whence it came (Vol. 6:51) or returned directly to FCC for further consideration. $ Neither RCA nor CBS will present papers or sit in on color symposia during IRE convention. However, CBS will conduct daily closed-circuit demonstrations, placing camera in booth of Gray Mfg. Co., receivers in booths of Reeves Soundcraft and Rangertone — using Remington- Rand equipment. RCA will display cut-away sample of tri-color tube. CBS went to town with demonstrations for major advertisers all this week, reaping kudos fx’om them as they obsex'ved closed-circuit colorcasts of their products. CBS put out daily px-ess releases with quotes fx'om x’epresenta- tives of companies whose px'oducts were shown: Kroger, General Mills, Colgate-Palmolive-Peet, Canada Dry, Northam Warren (Cutex), Sealtest, Cannon Mills, Bristol-Myers, Pond’s, Ballantine, Hudson Pulp & Paper-, Manhattan Soap, Bulova Watch, National Biscuit, Stand- ard Brands, Continental Baking, Stex-ling Drug, Owens- Corning-Fiberglas, Bymart, Alexander Smith & Sons Car- pet, C. H. Masland & Sons, Lever Bros., Esso, Wildroot. Kj RCA won’t give details of latest developments, except to say: “We’ve made impx-ovements in several directions.” But it’s said to have done striking work in “sampling”, alfecLing fidelity, registration, resolution, etc. RCA ad- mits other manufacturers are “doing excellent work,” bxxt nobody’s elaborating. IRE sessions may shed light. - 6 - Network Accounts: nbc-tv is offering noon-i p.m. period in quarter-hour across-the-board strips, but no buyers reported yet . . . April 2 is starting date of General Foods (Post Cereals Div.) sponsorship of Capt. Video on 22 DuMont outlets, Mon.-Fri. 7-7:30, thru Benton & Bowles, N. Y.; some 50 manufacturers have been fran- chised to sell Capt. Video ties, shirts, dolls, holsters, belts, etc., in big merchandising tieups . . . Gillette June 16 will sponsor Belmont Stake Race on NBC-TV, thru Maxon Inc., Detroit; time to be announced . . . Borden Co. April 5 sub- stitutes Treasury Men in Action for Peter Land Hayes Show on NBC-TV, Thu. 8:30-9, thru Doherty, Clifford & Shenfield, N. Y. . . . Arthur Murray Studios April 2 moves Arthur Murray Show from DuMont to ABC-TV, Mon. 9-9:30; will replace American Safety Razor Corp.’s Col- lege Bowl . . . Bauer & Black (surgical products) reported readying summer sponsorship of 5:30-6 portion of Super Circus on ABC-TV, Sun. 5-6, thru Leo Burnett & Co., Chicago; will replace M & M Ltd. (candies) and Peters Shoes (International Shoe Co.), current alt. week sponsors of segment . . . Carter Products Inc. (Arrid cream deodor- ant) April 19 starts new show on CBS-TV, Thu. 10:30-11, thru Sullivan, Stauffer, Colwell & Bayles, N. Y.; replaces Nash Airfiyte Theatre, cancelled by Nash-Kelvinator Corp. (Nash cars) as of March 15 . . . Florsheim Shoe Co. sponsored Chicago Daily News Relays March 17, 10:30 p.m., on ABC-TV outlets, thru Gorden Best Co., Chicago. Upshot of FM receiver conference, between station and manufacturer representatives at NAB headquarters March 13, was that each group would survey national FM set demand, meet again late next month after NAB con- vention. Station conferees contended that FM sets are being underproduced despite lively demand. Manufactur- ers agreed that FM sets are scarce, but insisted AMs are too and that FMs were overabundant until this year. As for future production, they said materials shortages made commitments impossible. Station men told manufacturers that charges of “conspiracy” have been made against them. Latter laughed, insisted their industry has more cutthroat competition than almost any other. Consultant M. S. Novik told group that Walter Reuther, president of UAW-CIO which operates WDET-FM, Detroit, said he would request Congressional investigation if FM stations “were being kicked around.” Chairman of NAB commit- tee is Ben Strouse, WWDC-FM, Washington; RTMA group was headed by Crosley’s John W. Craig; Novik is chairman of special FM station committee. One of first FM stations on air, WSM-FM, Nashville, which started April 1941, surrendered license this week. So far this year, 14 stations have dropped licenses, 9 re- linquished CPs. Six applications have been filed, includ- ing one for facilities of powerful WMIT, atop Mt. Mit- chell, N. C., closed down last year by owner Gordon Gi'ay. [For specific stations, applicants and cities, see AM-FM Addenda A to J~\. Costs of TV-FM station construction, in terms of dol- lars per square mile, are given treatment in interesting chart form by Richard G. Singleton, Stanford U gradu- ate student, ex-MIT, in March Electronics, Charts cover average antenna and tower costs, cost of ERP in terms of transmitter size, etc. Involuntary petition in bankruptcy was filed by Tres- sel Television Products, Chicago, manufacturer of Pro- jectall studio projector, distributed by INS, in Federal district court in Chicago this week. Liabilities were re- ported more than $10,000. New York subway advertising slumped some $66,600 in 1950, blamed by Board of Transportation exper*ts on TV competition. Slation Accounts: Scheduled airlines will sj>end $16,- 000,000 on advertising this year, mainly to promote pas- senger traffic, mostly in newspapers — but TV-radio will get close to $2,000,000, according to Air Transport Assn., Washington . . . Quiet tests in collaboration with 3 dept, stores in undisclosed cities brought immediate increases in sales of Wooster Rubber Co.’s Rubbermaid housewares by 40%, 30% & 25%, respectively; spots featured “Rub- bermaid Girl” trademark, placed by Ketchum, MacLeod & Grove, Pittsburgh . . . Omaha’s biggest dept, store, Brandeis, goes into daytime TV with 10 participations per day on Tue. & Thu. half-hour Show Window on WOW-TV . . . Marshall Field, Chicago, names Calkins, Holden, Car- lock, McClinton & Smith to handle its TV-radio advertis- ing . . . N. Y. Telephone Co. using film spots and station breaks on WOR-TV, New York, thru BBDO . . . Ward Baking Co. (Tip Top Bread) buys Ziv’s Cisco Kid films for W'^NBK, Cleveland; W^MBR-TV, Jacksonville; W’BRC-TV, Birmingham, thru J. Walter Thompson ... To promote | new film Bird of Paradise opening in 85 first-run theaters I on Easter Day, 20th Century-Fox is using national TV spot campaign built around “bird of paradise” fashions I . . . Banks in 28 cities have bought March of Time Through I the Years, sold by March of Time (Vol. 7:7) . . . Among 1 other advertisers currently using or preparing to use TV: ! Vic-Art Inc. (Sun-Magic & K-0 skin creams), thru Vic j Decker Adv., Canton, Ohio; Vitamin Corp. of America (B-complex capsules), thru Harry B. Cohen Adv. Co., N. Y.; McKesson & Robbins Inc. (Tartan suntan lotion), thru J. D. Tarcher & Co., N. Y.; G. Krueger Brewing Co., , thi-u Charles Dallas Reach Co., Newark; W’ynn Oil Co., thru BBDO, Los Angeles (WOR-TV); Chicago Show Printing Co. (Mystik Tape), thru George H. Hartman Co., Chicago (WOR-TV); General Shoe Corp. (Flagg Brothers shoes), thru L. W. Roush Co., Nashville (WOR-TV); i Glidden Co. (paints, shortening & salad dressing), thru Meldrum & Fewsmith, Cleveland (WTVJ); Richman t Bros, (chain clothing stores), thru McCann-Erickson, N. Y. jj (WWJ-TV); Morton Co. (frozen foods), thru Griswold- Eshleman Co., Louisville; Grocers Biscuit Co. (Dixie Belle crackers & cookies), thru Zimmer-McClasky, Louisville. 1 “Early morning TV is here, and here to stay,” says sales mgr. Alexander Dannenbaum Jr., of Philadelphia’s WPTZ, reporting 22 sponsors currently using participa- tions on daily 7:30-9 a.m. disc jockey show titled Three to Get Ready, featuring Ernie Kovacs with recorded music, time, weather, news, comedy bits. “I sincerely believe that by this time next year all TV stations will be program- ming and selling shows from early morning until very late at night.” First 13-week cycle, just concluded, brings claims of audiences as high as 150,000. Both local and national sponsors buy time, including among former Snellenburg Store (advertising Sylvania TVs), Gimbel Bros. (Silex), Arthur Murray School of Dancing, Pennsyl- vania Wine Co. (Sylvania Wines), W'eather Seal Inc. (storm windows); and among latter RCA, thru J. W^’alter Thompson Co., N. Y.; American Steel Wool Mfg. Co., thru Needham & Grohmann, N. Y.; American Chicle Co. (Chic- lets), thru Badger, Browming & Hershey, N. Y.; American Crabmeat Co. (3 Little Kittens Cat Food), thru Harry M. Frost Co., Boston; Luden’s Inc. (5th Ave. candy bars), thru Richard A. Foley Adv., Philadelphia; P. J. Ritter Co. (Vege-Crest), thru Lamb & Keen, Philadelphia. Skiatron demonstrates Subscriber-\Tsion system for FCC members and top staff March 20 at WOR-TV’s North Bergen transmitter and at Skiatron labs, 30 E. 10th St., N. Y. Planning to attend are all available commissioners — Coy, Webstei-, Sterling, Jones, Hennock — plus staff mem- bers Plotkin, Braum, Allen, perhaps others. ADMIRAL CUTS LOW-END TO SPUR TRADE: Admiral pulled stops on low end of its line — , notified its distributors March 16 that, as stimulant to lagging sales, it has f reduced prices of 16 & 17-in. table models by $30 & |40. That others may be forced to follow suit seems probable in light of depressed retail market (see below). Heretofore boasting leadership in sale of console combinations, now drag- 1 ging. Admiral promised "plenty" of the small sets and "only slight" reduction in i dealer discounts. Model 16R11, ebony finish table with 16-in. tube, goes down from S239.95 to S199.95; 16R12, same in mahogany, from S249.95 to $209.95. Table model ’ 7K12, I7-in. rectangular, mahogany, goes from $279.95 to S249.95. All are plastic. Main idea is "to get people into the stores," said sales v.p. Richard Graver; "These aren't .just leaders they're not going to get. We're making plenty of ! these sets. With mass production savings and curtailed profits, we think we can , give trade a bump. By creating store traffic, we also figure the dealers will be able to sell more higher-priced models." Negligible inventories of these sizes were held by distributors-dealers when E Admiral quietly began to shift production emphasis to lower-priced units last week. Rest of 35-model line (Vol. 7;1) remains unchanged. ? TV-RADIO PRODUCTION PACE SLACKENING? tv output slipped somewhat in lOth week of f current quarter (week ending March 9) — went down to 178,696 units (6324 private . label) from high of 190,291 the preceding week. ’’ Whether this means beginning of cutbacks, it's too early to tell. RTMA also puts factory inventories as of March 9 at 180,615 sets vs. 180,727 preceding week. , ^ Total TVs for first 10 weeks of 1951 thus are 1,695,635, which is some 90,000 ahead of the 1,605,200 reported for whole of boom first quarter 1950 and com- . i pares with 1,531,100 second quarter, 1,891,900 third, 2,435,600 fourth. I Average weekly output so far this year is close to 170,000 (we erred last week in reporting 9-week average at 190,000). Average weekly output by quarters ^ last year; first 123,000, second 118,000, third 145,000, fourth 187,000. Radio production went down, too — 355,044 units week ending March 9 (home sets 208,313, auto 116,469, portable 30,262) vs. 367,322 the preceding week. Factory , inventories were 146,848 vs. 139,524 week earlier. Total radios for 10 weeks to date: 3,282,930 — average of 328,000 per week. Note ; For monthly tables of TV and radio production 1946-through-1950, see p. 67 of TV Factbook No. 12. TV SALES FALLING FAR REHIND OUTPUT: Short-range, the current TV trade letdown looks I serious indeed — and an over-riding fear seems to have gripped some distributors I and dealers that manufacturers themselves may order unloading of huge inventories by ; way of list-price cuts. Meanwhile, dealer sales and price-cutting are rampant, j Long-range, the consensus among manufacturers and govt, electronic authori- I ties is that current amazing high rate of production cannot possibly continue — ' what with the 20% steel limitation order on end products effective April 1, and the ; cumulative impact of cutbacks already in effect on raw materials such as cobalt I (under strict allocation), aluminum and nickel (cut 35%), copper (cut 25%), copper : wire . zinc and pig tin (cut 20%). Granted a brake on production, forced by defense requirements, can today's ‘ enormous inventories, plus such production as is maintained, be "siphoned off" and ^ "evened out" to make for a more orderly and profitable trade? I You get every kind of reply — depending on whom you talk to. Manufacturers , )j by and large, are optimistic but cautious ; distributors and dealers worried. Latter 7 - 8 - blame factories for overloading them, some expecting the worst as they contemplate normal spring and summer seasonal slumps. Summarized, these seem to be the main factors, favorable and unfavorable, governing current trade — as stated to us by key people who should know: (1) Higher cost of living, depreciated dollar, make buyers less interested in TV. March is income-tax month, and weeks just before Easter always find people less susceptible to purchases of hard goods than to soft goods. (2) Regulation W is a rugged obstacle, cutting installment buying to great extent. Moreover, TV is competing with car buying and refrigerators, ranges, etc. (3) Trade has had it so good over the last year that it panics too easily, should think in long-range terms, cannot blame manufacturers for turning out as much merchandise as they can while materials last. (4) Distress selling would be foolhardy now, in view of inevitable factory cutbacks and shorter supply of sets to come. Moreover, baseball season is coming up, always a stimulant to TV trade ; and programs are improving and should continue reasonably good this summer as telecasters acquire more know-how and sponsors line up for ever-scarcer time. (5) Industry must promote and sell harder than ever. * * ♦ ♦ Foregoing are general sizeups, admittedly. Very few will permit quotation by name (an advantage, to some extent, in that they speak their minds more freely). But here's what they're saying; "If the dealers had any idea of the cutbacks in production due the second and third quarters, they wouldn't do what they're doing," said operations head of one of biggest manufacturing concerns. "Beginning next quarter, we won't get the parts. The steel order looks worse than first indicated. As for tubes, they're really going to get scarce later this year. [See Electronics Reports section]. "We'll lean on conservation measures second quarter, civilian output will be hard hit third quarter, and I won't even venture to predict last quarter. Certainly, we cannot possibly maintain present rates of production for long." Another big manufacturer (sales chief): "Known brands are still enjoying a very nice business. We've overproduced the higher priced stuff, perhaps, and the industry as a whole is so far overproduced that somebody may get hurt. But this slump is seasonal, and for our part we planned for it." Still another; "The trouble seems to have started in Washington, which has never been a good index to the coiantry as a whole. Sure, we've all been building to beat hell, but the pace will soon slacken and we think shortages are inevitable, and that will even things up." Medium-sized manufacturer; "We've had abnormal production, plus much bigger carryover of last year's 7,500,000 sets than we're willing to admit. Everybody was willing and anxious to stockpile up to now. I see a buyers ' market through the sum- mer, then a sellers' market when production will be cut either by forced or volun- tary measures. Remember, too, that the market isn't as big as it was, with 60% saturation in some areas. Now we must stress replacements and second sets." * * * Permitting quotation, Emerson's Benjamin Abrams said he foresees further pileup of stocks. He suggests the mobilization agencies order ceiling on TV output, which he thinks would not only conserve materials that the Govt, wants but permit orderly marketing during crisis. (This latter idea, incidentally, was advanced by another set maker, but most other industry spokesmen seem to want to steer clear of any such govt, controls as long as possible.) Among distributors, there's everybody from plain worry- warts to smug name- brand boys who still say they're moving all they ordered. In between are those who simply sit back and wait for the situation to clarify. All admit an unaccustomed customer resistance. Some would like to refuse or are refusing deliveries on stocks they ordered in early January for delivery through April. - 9 - NARDA president Mort Farr, a suburban Philadelphia dealer, in Washington March 15 for tax hearing, testified decline of 40-50% in sales has been evident for month, but that large-scale markdowns had so far appeared only in Washington and New York. In interview later, he expressed fear that new conservation sets may be priced lower than present models, due to savings in materials. If manufacturers cut prices, he said, distributors and dealers are really going to get stuck and "many banks are going to find themselves in the TV business." Even now, he said, manufacturers are handing out extra discoiints through floor plans, easy payment plans, allowances, etc. 25% EXCISE TAX WOULD HURT EVERYBODY: There were perceptible nods of agreement — notably among Republican Congressman — as RTMA president Robert C. Sprague detailed vital role electronics industry would be called upon to play in an all-out war. He was stressing importance of keeping the industry on even keel during present emergency while testifying March 15 before House Ways & Means Committee hearing on Treasury's proposal to hike TV-radio excise tax to 25% (Vol. 7:6). "The Munitions Board has told us," said Sprague, "that in the event of all- out war military requirements would amount to twice the present capacity and 3 times the present dollar volume of the industry." Hence, he argued, it's important not to upset the industry, already gearing gradually to the defense economy, by pushing up TV-radio receiver prices, reducing sales, forcing curtailments of technical staffs and production lines. That's exactly what Treasury proposal would do, said he. For lUE-CIO, Benjamin Sigal testified the tax discriminates against low- income buyers, contended that TVs, radios (and refrigerators) are not luxuries but necessities. And for the telecasters, NAB's Ralph Hardy testified tax discriminates against TV-radio as purveyor of news while newspapers, magazines, etc. are exempt. ^ ^ ^ If there must be new taxes, electronics spokesmen go along with other indus- tries in favoring retail sales tax. Sprague calculated that TV-radio sales, under a 25% tax, would decline 40% — so that Treasury, instead of getting the additional $87,000,000 it estimates, would actually get less than now under present 10% levy. It would also lose out in reduced corporate and personal income tax revenues. Sprague estimated TV-radio factory sales at $1 billion for fiscal year July 1, 1951-June 30, 1952, forecast drop to $600,000,000 under proposed 25% tax. Factory sales were $1.6 billion for calendar 1950. Among other arguments against tax; It's higher for auto radios than for autos (7-14%) or auto clocks and heaters (5%) ; higher for TV-radio furniture than for same furniture without TV-radio (tax-free). It discriminates against buyers in new TV markets, penalized because FCC has imposed freeze and they couldn't buy when taxes were lower. It will cost average dealer $10,000 more to carry normal stock — and he's having plenty of trouble now selling against high cost of living. Regula- tion W, other factors retarding demand (see p. 7). * * * * Only discordant note from industry came from W. P. Thomas, of Diamond Power \ Specialty Corp. , Lancaster, 0. , manufacturer of "Utlllscope" industrial TV systems ) (Vol. 5:18,36). He suggested annual license tax on home TVs, a la BBC, asked only I that industrial TV not be taxed, vouchsafed no objection to other excise hikes. For F, RTMA, fight is being conducted by committee headed by A. M. Freeman, RCA (Vol. 7:8). 1 1950 TV FACTORY PRICES BELOW 1949: Factory prices of TVs — hence retail prices — ;j went up steadily during 1950, due to higher manufacturing costs and the excise tax. " But they were still lower than in 1949 — and continue to be. 1 Typical example; RCA 17-in. rectangular table model today costs $269.95. in- eluding tax. As of Jan. 3, 1950, comparable 16-in. round model cost $299.55. From most authoritative of all sources, we're able to draw some interesting I comparisons between average 1949 and 1950 factory prices for industry as whole. During 1950, it's interesting to note first, the nearly 7,500,000 TVs represented - 10 factory volume of something more than Si. 55 billion, as against 1949 's approximately ^ 3,000,000 receivers costing some $600,000,000 at factory. TV in 1950 represented 78% of dollar volume of TV-radio ; in 1949 it was 66%. ^ Average factory cost of TV table model was $154.54 in 1949, went down to ^ $141.47 in 1950. Average direct-view console in same period went from $211.92 to $192.86; average direct-view combination with radio-phono, from $293.58 to $275.43. That projections are still being made, though in very small niombers, is in- dicated by tally of nearly 13,000 during 1950, about same number as in 1949. Average factory cost of projection, TV only, was $392.21 in 1949 and $232.02 in 1950; pro- jection with AM-phono (only handful made) cost $578.42 in 1949 and $356.62 in 1950. In sum, average TV cost $181.70 at factory in 1950, vs. $189.55 in 1949. At retail, price is roughly 40% more. Topics & Trends of TV Trade: Reminiscent of World War II factory drives, RCA Victor March 15 launched what it calls “Triple S” campaign among its 42,000 em- ployes in more than 100 plants — slogan being “Save Ma- terials. Save Jobs. Save Your Country.” It’s second phase of RCA’s TV-radio conservation program (Vol. 7:4-9), idea being to get all employes thinking about ways of saving critical materials, avoiding waste, helping main- tain civilian production and keeping trained workers at jobs against days of “expanding requirements of the de- fense program.” Big drive is said to be first of kind since Korea, is bolstered with posters, stickers, buttons, employe sugges- tion cards, etc. Slogan contest offers prize of 17-in. con- sole combination with $50 worth of records and year’s service contract or $600 in U. S. Savings Bonds. Says RCA, in urging similar drives in other plants: “Applied industry-wide, millions of pounds of cobalt, cop- per, nickel, aluminum and other critical materials can be saved in the manufacture of radio and TV sets.” Sylvania last month conducted “quality conscious” program among employes of its Buffalo TV-radio plant, discovered in some instances that defect levels had been reduced as much as 90%. ^ * Ad splurges in Washington newspapers this week, aimed at reducing bulging inventories, offered reductions of as much as 35% & 50% from lists, were countered with “we won’t be underpriced” by competing retailers, aroused nation-wide trade interest and not a little consternation among some manufacturers. Latter insist Washington isn’t typical. These were sample sales reductions for brand-name “1951” models splashed in capital newspapers; Admiral 19-in. combination, cut from $600 list to $360; Hallicrafters 17-in. combination, $500 to $325; Motorola 17-in. combination, $480 to $319, and 19-in. console, $400 to $280; Philco 16-in. console, $320 to $230, and 17-in. combination, $550 to $358; Zenith 16-in. console, $370 to $241. Private label “Harleigh” TV sets advertised this week by Hecht Co., Washington, maker unidentified: 17-in. table, $180, console $200; 20-in. consolette $250, console $280, with doors $330. New 17-in. AC-DC private label “Gotham-Visionaire” receivers made by Harold Shevers for Colen-Gruhn Co., New York distributor, are table at $300, console $340, with doors $400. Company sees 200,000 market for DC receivers. Canadian manufacturers sold 3809 TVs valued at $1,- 979,075 during January, reports RMA of Canada, bring- ing total TV production since it began there to 41,632 units valued at $18,255,632. Windsor (Detroit) area accounts for 43% of shipments, Toronto-Hamilton 36%. Trade Miscellany: RCA Victor radio plant at Canons- burg. Pa., with 1200 workers operating 6 radio chassis and 2 console lines, has tripled radio production since begun last August, reports mgr. Frank E. Stouffer; plant’s record i dept, has boosted production of 45rpm discs from 70,000 to 90,000 per day . . . Jerrold’s “Mul-TV” antenna system has gone “well past the $1,000,000 sales mark,” with more than 2000 retailers using equipment to demonstrate sets, i according to Sydney J. Mass, adv. director . . . Hytron em- ployes in Salem, Mass., plant voted 352-245 to retain inde- pendent union, as against lUE-CIO . . . Murphy Ltd. radios, i imported from England through John Carroll, Interna- tional Trade Mart, New Orleans, is reported to have ac- quired 16 U. S. distributors, sold 6-7000 units thus far . . . Westinghouse reported negotiating with Doernbecher Mfg. Co., Portland, Ore., for TV cabinets . . . Jackson Industries moves national sales office to 58 E. Cullerton St., Chicago, opens regional office at 550 W. Lafayette, Detroit . . . GE’s Fred P. Beguin, from Syracuse electronics plant, reported on survey tour of Europe in quest of components. National Credit Office chart captioned “Business Em- barrassments: 1940-50” shows 19 manufacturers of radios, TVs and related equipment failed in 1950 for total of $3,568,000; 3 manufacturers of electrical appliances, $295,- 000; 5 wholesalers of radio parts, $576,000. Worst years for TV-radio failures were 1947 (39 for $15,805,000); 1948 (25 for $11,026,000); 1949 (19 for $5,540,000). Electronic Parts Manufacturers Assn, elected last week Charles C. Koch, Merit Transformer, president; A. P. Hirsch, Micamold, v.p.; J. Gerald Mayer, Washington at- torney, v.p. and general counsel; James B. Guttridge, Carol-Ed Co., treasurer. Additional directors are: Nicho- las Reinholz, Mohawk Electronics; Nat Leonard, Leonard Electric; Joseph B. Schaefer, New York Transformer; Bert E. Smith, Automatic Mfg.; Neil Washburn, Tel-Rad; Henry Winston, Super Electric; Paul Ziegler, Mid-West Coil & Transformer. Hearing on FTC complaint against Sylvania regard- ing its tube-price differentials (Vol. 6:2) resumes March 20 in Washington, after one-day session this week was adjourned to permit FTC and Sylvania to agree on stipu- lations of facts. FTC complaint charges Sylvania sold tubes to Philco for less than to its own distributors. Victory for service industry is seen in last week’s action by Massachusetts State legislature’s committee on state administration rejecting bill to license servicemen; also, in action by Miami city council vetoing similar plan. Still pending are similar bills in legislatures of Rhode Is- land and Wisconsin, in city council of New York. American Television (U.A. Sanabria) is selling “De- Forest” 17-in. table at $159.50, console $179.50; “Sanabria” 20-in. console at $199.50. Company sells through own re- tail outlet in Chicago. il9 CONNECTICUT AVE. N.W. !/ WASHINGTON 6, D. C. • TELEPHONE MICHIGAN 2020 Nobilization Electronics Reports ^ March 17. 1951 ] (Editor’s Note: This is a special section of regular edition of Television Digest, Vol. 7:11) SUPER ELECTRONICS BOARD IN WORKS: ^ agency to oversee all phases of electronics production and procurement will soon be set up by DPA chief Wm. H. Harrison. Electronics Production Board. 7-man policy agency with "last word" power, will be part of DPA, v;ill direct all military and civilian mobilization agencies presently dealing with electronics. Chairman, as yet unnamed, is expected to be chosen from industry's highest echelon — though there's talk that Gen. Harrison himself may take over nominal chairmanship. Agencies to be represented on board are NPA, Munitions Board, Atomic Energy Commission, Army, Navy, Air Force. Board's membership hasn't been revealed, but it's good guess NPA will be represented by its Electronics Division chief John G. Daley, and Munitions Board by its Electronics Division director Marvin Hobbs. Harry A. Ehle, International Resistance v.p. now serving as consultant to Army Undersecretary A. S. Alexander, is mentioned as possible Army member. And Syl- vania president Don Mitchell, also presently serving part time in Washington on consulting basis, may represent Air Force. NICKEL SHORTAGE FORCING TUBE CRISIS: Electronic tube plants are humming — with production high, demand even higher. Under these conditions, in normal times, tube men would be happy. But not today. At least, that was gloomy impression given by tube manufac- turers and their vendors, representing some 30 companies, who made special trip to Washington this week to plead for enough nickel to keep tube plants going. Shortage ax will fall with full fury, in matter of weeks, on production of civilian receiving tubes — and military orders won't come anywhere near "taking up the slack." Cathode ray tubes are bound to be affected, too. Though his plants are now going full blast on 6-day week, one tube maker's comment summed up general outlook: "Damned black." Tube factories are coming to end of their supply of nickel parts. Present high production is due to fact they're rapidly using up what's left to fill back- logged orders from set manufacturers and replacement parts distributors. I * :j! If: ♦ NPA nickel limitation (M-14, see Vol. 6:48) went into effect Jan. 1. It limited primary users of nickel in first quarter 1951 to 65% of amount they used during average quarter of first-half 1950 base period. Tube manufacturers, who are I secondary users, are now about to bear full brunt of this cutback — 3 months after r it went into effect. The 65% limitation, when passed down from manufacturer of nickel tube ele- (| ments to tube makers, in effect becomes much more than 35% cutback from current tj production rate, so far as tube industry is concerned. Here's why; j Cutback is 65% of first-half 1950 production. But receiving tube production I increased from 170,000,000 in first half to 213,000,000 in second half 1950 — a j jump of 25%. Therefore, effect of nickel cutback may be to chop civilian tube 1 production by as much as 50% in coming months. I ^ ^ Military services are dissatisfied with performance of currently produced I tubes. They demand closer tolerances, tighter specifications. Requirements for I military tubes will soon be even stricter than now. Tube men point out that some nickel conservation measures produce tubes that are satisfactory for civilian use - 2 - but won't pass inspection by the military — thereby requiring 2 separate production runs for same type tube. NPA is considering emergency appeals from tube manufacturers whose plants are not now needed for military production but must be kept in operation with an eye toward the day they may be vital to our nation's defense. And if it comes out of this crisis unscathed, tube industry can look forward to similar situation in tungsten in 3-6 months. IMPACT OF THE APRIL I STEEL ORDER: To some TV-radio firms, last week's durable goods steel limitation which begins April 1 (NPA Order M-47, see Vol. 7:10) speaks this stern warning; Conserve or cut back. To others, it says; Conserve and be damned. You must cut back anyway. Just as the order is confusing, so is reaction from TV-radio industry — with comments varying from predictions of impending doom to "So what?" Some of the confusion caused by the order may soon be swept away. There are strong indications NPA will wipe out a section which clearly discriminates against some manufacturers, mainly small ones. Order's main provisions; (1) "Manufacturers" of durable goods (including TV-radio, phonos) will be permitted to use in second quarter 80% of total amount of steel (by weight) that they used during average quarter of first-half 1950 — and they can't use more than 40% of their quarterly allotment in any one month. (2) Durable goods "assemblers" — those who don't "manufacture" any steel parts — will be prohibited from turning out more than 80% of end product units they made in average quarter of first-half 1950. Among TV companies which fit definition of "manufacturers." reactions were varied. One large manufacturer said it will mean 40-50% cut in his output next month. Another said he expects it to have no noticeable effect. Section of order applying to "manufacturers" is rational. It's designed to put premium on conservation efforts. It merely tells them to redesign sets to use much less steel, or else cut their total output. Immediacy of order apparently took many manufacturers aback. Although it was announced early in February along with similar copper and aluminum restrictions which didn't materialize (Vol. 7;6), many TV-radio producers obviously are vinpre- pared for it. What makes steel order appear so stark is that, for first time, the Govt. points finger directly at TV-radio manufacturer and says, "You I Use less steel I" Previously, finger had been pointed at his suppliers and the fabricators who supply them — affecting end-product maker only indirectly. * * * * Those who have steel conservation measures ready (lighter weight and smaller chassis, transformerless sets, smaller output transformers and speaker baskets, etc.) are in much better position than manufacturers who thought Govt, was talking through its hat when it told them long ago that conservation is a business necessity as well as a patriotic duty. To maintain anything like present production, manufacturers would have to cut back considerably more than 20% in use of steel per receiver, since first-half 1950 base period saw far lower TV-radio output rate than recent months. But manufacturers who have been planning on maintaining present production rate during second quarter have been living in dream world — regardless of steel cutback — govt, sources unanimously agree. As long ago as last November, when Korean war was mere "police action," defense production officials predicted impact of mobilization program on TV-radio production would really begin to be felt during second quarter of 1951 (Vol. 6;45). Though steel may be chief headache during first weeks of second quarter, it could turn out to be least of industry's worries later, when shortages of speakers, copper, tubes — rather than steel — begin to take their toll. 3 1 r i »: » » j i I There’s a .joker in the steel order that was as unexpected as the rest of the order was expected. It's the clause dealing with so-called "assemblers". By NPA's definition, manufacturer is one who "puts into process, machines, fabricates or otherwise alters materials by physical or chemical means." If you alter form of one steel part — such as punching hole in chassis — you're a "manufacturer" within meaning of order, and the steel you can use is lim- ited by weight. But if you happen to buy all your steel parts ready-made. Order M-47 says your total output of TV-radio sets must be 20% less than it was during average quar- ter of first-half 1950 — and in many cases that would be mighty low compared to current production. And NPA says it's too late now for "assembler" to start "manu- facturing" and escape restrictions on output. Two obvious flaws in this provision are; (1) It places no premium on conservation efforts by so-called "assemblers", who may be using fewer and lighter steel parts than they did during base period. (2) It strikes directly at small business, which NPA is sworn to protect — although one very large TV-radio company is said to come within "assembler" cate- gory, and a second isn't sure whether it's an "assembler" or a "manufacturer". This snafu will probably be rectified soon, following protests by those hit and by some NPA officials who were as chagrined as the "assemblers". Mobilization Nolos: Have most TV manufacturers been violating NPA’s restrictions on use of cadmium? That question was thrashed out in conference March 15, and this decision reached: Cadmium Order M-19 is loosely worded and subject to varying interpretations; therefore, TV makers are in the clear on this issue. In what was probably one of first actions by NPA compliance officers, agents of NPA’s New York office re- cently walked into electroplating plant which supplies sev- eral TV firms with cadmium-plated chassis. They said such operations violate M-19, which since Jan. 1 has banned many uses of the corrosion-resisting metal (Vol. 6:51-52). Those present at follow-up conference in Washington included: Official of large TV company (identity withheld) whose supplier was visited by the NPA men; Whitman W. Hopton, chief of NPA Tin-Lead-Zinc Div.; representatives of NPA Electronic Products Div., Navy representative, and NPA and industry attorneys. All agreed that, re- gardless of original intent of order, it can be interpreted as permitting cadmium-plating of TV chassis, but not radio chassis — because of technical characteristics. The TV manufacturer made 2 additional points: (1) Entire TV industry may be forced to shut down if cadmium supplies are suddenly withheld; (2) There apparently is no shortage of cadmium; he has had no trouble getting it. Govt, spokesmen said military will be requiring more and more cadmium in near future, and put it directly up to industry to develop cadmium conservation plan, and to suggest basis for amending Order M-19. TV industry leaders reportedly agreed to make cadmium conservation one of principal topics of discussion at RTMA conservation meeting March 21 at New York’s Commodore Hotel, and to make recommendations to NPA. Chairman will be GE’s Dr. W. R. G. Baker, RTMA engi- neering dept, director. Note: Manufacturers who use zinc to replace cad- mium in electroplating are exempted from 20% zinc cut- back by Order M-15. * Mobilization Personals: Former members of NSRB Electronics & Communications Div., headed by Leighton Peebles and now disbanded, have been snapped up by other mobilization agencies. Peebles has been assigned to NPA’s Communications Equipment Div., under Brig. Gen. Calvert H. Arnold. Walter H. Campbell joined DPA Of- fice of Program & Requirements. Dr. R. D. Parker be- came chief of capacitor section of NPA Electronic Prod- ucts Div. . . . Cornelius W. Middleton, Babcock & Wilcox executive, appointed Munitions Board vice chairman for production & requirements. As such, he’s in charge of Electronics Div., which recently added following as con- sultants: For tubes, Robert S. Bolan, retired engineer, for- merly with Sylvania and Raytheon; for equipment, J. Kelly Johnson, New York consultant and ex-Hazeltine & Wells-Gardner, special consultant to Undersecretary of Navy during World War II . . . Robert B. McCurdy, just named chief of test equipment & instrument section, NPA Electronic Products Div., held same job in WPB. Of 228 certificates for rapid tax amortization on ex- pansions of defense production facilities (Vol. 7:10), is- sued by Defense Production Administration Jan. 25 through March 7, only 3 were identified as being for pro- duction of electronic equipment. Two went to GE — one for plant at New Hartford, Conn., certified at $15,693,000; other for new tube facilities at Owensboro, Ky., certified at $336,306. Third certificate went to Crosley Div. of Avco, for fire control systems plant, certified at $1,909,- 000. Certification amount is value of new facilities. Per- centage of tax write-off in each case was undisclosed by DPA, but average individual write-off granted is 74%. Top personnel of DPA’s Office of Program & Require- ments, which will be responsible for allocation of nation’s resources, were announced this week. Serving under Di- rector Charles E. Wampler, AT&T executive, as assistant directors are Melvin Ashen, Indiana U business professor; George H. Lilygren, Carrier Corp. v.p.; J. J. Scanlon, Pa. Bell Telephone executive. Program Requirements Staff director is Robert E. Johnson, Western Electric economist. Planning Staff chief is Glenn McLaughlin, who held similar posts in NSRB and World War II WPB. Plea for expanded supply of selenium — now becoming scarce — was made March 15 by special RTMA commit- tee (Vol. 7:10) to NPA Electronic Products Div. Com- mittee pointed out that rectifiers containing small amount of selenium can save tons of copper and steel when used to replace power transformers in TV sets (Vol. 7:7-8). 4 Value of TV in military operations is unquestionable, in opinion of Maj. Robert E. Collier, who writes “Take TV Out of the Bar — and Put it to Work” in March Marine Corps Gazette. Thinking particularly of amphibious at- tacks, he writes: “Through the use of TV, the commander can actually project his eyes to a moving platform above the battle area to see for himself and judge the prog- ress of the operation. Once again, as in the days of old, the commander can view his troops in battle — this time from a chair rather than a horse.” He feels that equip- ment weight and picture fidelity are principal problems, that helicopter is ideal “platform” for camera. Author says Marine Corps tested TV some 5 years ago “with in- conclusive results” — but he’s apparently unaware of fairly successful work of Navy, using “Block” system in Pacific action late in World War II. Radio-controlled bombs are being used in Korean war — improvements of the 12,000-lb. Tarzon and 1000-lb. Razon bombs developed during World War II, which are considered crude compared to models presently under de- velopment. Bombs are fitted with radio equipment and movable tail-fins so that course can be altered after re- leased from plane. Air Force sources said radio bombs are being used partly for test purposes to gather information on this type of weapon. Combat camera crews in the field down to corps head- quarters, who would “service” TV stations with local- interest film footage, are contemplated by Army’s Public Information Division’s Radio-TV section headed by Col. Edward Kirby. Plan has been approved by chief of in- formation, awaits higher authority. Army’s Astoria motion picture center, meanwhile, has been authorized to set up special handling for TV stations because of con- flict in release dates with newsreels (Vol. 6:29). Court test of FCC’s authority to regulate “incidental” radiations (Vol. 7:9), stands at this stage: After Yonkers (N. Y.) Cabinet Co. and FCC attorneys reappeared before Federal district court Judge Samuel Kaufman March 7, 30-day injunction was issued requiring company to fix dielectric heater which had been interfering with 7530-kc Coast Guard aircraft frequency. Company hired consult- ants to clean up problem, will again appear in court, with FCC, on April 7. FCC is anxious that its authority be clearly upheld, since case is first of kind, may have bearing on Commission’s powers concerning all non-bi’oadcast radiations — including those from TV and FM receivers. Note on TV supply picture, as quoted in “As Business Leaders See It” column in New York Journal of Com- merce: “During the past 45-60 days,” said Ben Rice, ex- Tele-King, Regal, now head of own Television Materials Co., “TV components have become more abundant. I see no serious shortages in 1951. The reasons ... (1) Many manufacturers have made commitments with foreign sup- pliers and this merchandise has done much to ease the domestic situation. (2) Set sales have dropped consid- erably and many manufacturers have cut production.” Pacific Electronic Exhibit scheduled for Aug. 22-24 in San Francisco Civic Auditorium. Annual western conven- tion of IRE will be held same place same time. Pig tin, used in solder, was placed under complete allocation by NPA, effective May 1 (M-8 as amended). At the same time, NPA designated Reconstruction Finance Corp. as sole importer of tin, price of which has soared since beginning of rearmament program. Ray of Hope Dept.: “Cobalt production will be sub- stantially increased late in 1951 when the Blackbird Mine in Idaho will be brought into production.” — From press release by Defense Dept. Industrial Services Branch. Plant Expansions: Motorola purchases 200,000 sq. ft. plant at Kilbourn & Augusta, Chicago, for expansion; it had occupied about 20,000 sq. ft., rest formerly occupied by Tropic-Aire Inc. and Greyhound Motors . . . Canadian Westinghouse Ltd., Hamilton, Ont., forming new elec- tronics div., to be housed in 180,000 sq. ft. building, employ about 1000 . . . Sylvania to build new $1,500,000 radio re- ceiving tube plant in Burlington, la., occupying some 100,- 000 sq. ft., employing about 800 . . . Mattison has ac- quired new 12,000 sq. ft. cabinet plant at 742 Wythe Ave., Brooklyn . . . Corning Glass to build new 270,000 sq. ft. glass plant in Danville, Ky. “to meet the glass and spe- cialized tubing requirements of electronic devices used in the expanding defense programs,” among other things. Electromagnetic radiation bill (Vol. 7:2-9) remains suspended in air — may even evaporate — as Senate Inter- state & Foreign Commerce Committee impatiently awaits response from Defense Dept., sponsor. NAB, FCC and RTMA have already given opinion on Committee’s rec- ommendation that slight amendment to Communications Act be enacted. All 3 agree with Senators, latter two adding that devices of no navigational use to enemy should be exempted. RTMA suggests that language of amend- ment exclude devices not detectible beyond 5 miles. FCC thinks military can specify the mileage factor. White House will release report of President’s special Communications Policy Board (Vol. 7:7) on March 27. Meanwhile, speculation continues that Board recommends permanent board superior to FCC and government’s Inter- department Radio Advisory Committee. There’s talk that FCC Chairman Coy will be asked to head board, that Comr. Webster may become member. Coy says nothing; Web- ster says: “No one has asked me to become a member of any such board, and I doubt whether I’d do it if asked. I’ve got a job to do here.” A 16-line picture, based on 1884 TV patent, will be shown at NAB’s April 15-19 Chicago convention by AT&T Long Lines engineer M. E. Strieby. He built whirling disc from patent specifications, uses projection lamp and photo to simulate TV picture. His purpose is to show that basic principle of TV — scanning — has remained basic throughout years. Among other TV papers at conference: “Maximum Economy TV Broadcasting,” Carl Lee, WKZO- TV, Kalamazoo, and Martin Silver, Federal; “5-kw uhf Transmitter,” Howard Crosby, GE; “Video Switching,” John Brush, DuMont; “Allocations,” Bernard O’Brien, WHEC, Rochester; “Transmitter Maintenance During Emergency,” RCA Service Co.; Tele-Tech’s John Battison on system of TV filming to replace kines; NBC’s Raymond Guy on Bridgeport uhf experience; GE’s Lloyd Krause on high-gain uhf antenna; Federal’s A. J. Baracket on flying spot scanners; NAB’s Dick Dougherty on labor relations. Awards at March 19-22 IRE convention: V. K. Zwory- kin, RCA, Medal of Honor; R. B. Dome, GE, Morris Lieb- man Memorial Prize; A. B. Macnee, U of Michigan, Brow- der J. Thompson Memorial Award; M. J. E. Golay, Signal Corps, Harry Diamond Memorial Award; W. W. Harman, U of Florida, Editor’s Award. Named Felloivs: Robert Adler, J. G. Brainerd, C. G. Brennecke, R. D. Campbell, R. W. Deardoi-ff, J. H. DeWitt Jr., H. F. Elliott, C. G. Fick, E. L. Ginzton, W. M. Goodall, J. T. Henderson, C. J. Hirsch, W. E. Jackson, J. B. Johnson, A. G. Kandoian, C. E. Kilgour, T. J. Killian, J. B. Knox, V. D. Landon, George Lewis, H. R. Lubeke, D. C. G. Luck, J. F. Morri- son, G. A. Morton, G. W. Olive, 0. W. Pike, L. E. Reu- kema, H. W. G. Salinger, 0. H. Schade, D. F. Schmit, W. E. Shoupp, P. F. Siling, II. R. Skifter, B. R. Teare, G. N. Thayer, H. P. Thomas, W. C. Tinus, Ernst Weber, R. H. Williamson, W. T. Wintringham, G. A. Woonton. 11 Financial 8c Trade Notes: Tripled radio tube and tv set production, doubled output of auto radios, big increases in fluorescent lamps and fixtures and photoflash lamps — all added up to record 1950 for Sylvania, whose annual report released this week said company didn’t even feel usual summer sales decline last year as each quarter exceeded ; each preceding quarter. Sylvania consolidated net sales were $162,514,814, up 58% from 1949’s $102,539,866 and considerably better I than previous record (1945) of $125,750,512. Net earn- j ings were $8,221,185, or $5.37 per share, after provision of I $11,000,000 for Federal taxes, compared to 1949 earnings I of $3,052,840 ($1.82). Assets increased to $92,880,534 at end of 1950 from $69,920,977 in 1949. Inventories in- I creased to $31,266,269 from $20,980,450. Payroll has in- ' creased 6100 to total of 19,600. Sylvania report says company has sizable defense con- I tracts and “is confident that defense orders will be avail- I able to more than absorb the capacity released by restric- I tions on civilian production.” It’s one of few electronics I firms which flatly predicts its “sales volume for 1951 will be substantially larger than . . . 1950.” H: * .-i: Motorola achieved records in both sales and profits in 1950, with TV “exceeding our most optimistic estimates” and communications, auto and home radio divisions all j reaching new highs, president Paul V. Galvin reported 1 March 14. Sales for year totaled $177,104,669, up 116% I from 1949’s $81,803,358. Net earnings were $12,809,247, ' or $14.56 a share on 879,605 shares outstanding, includ- : ing the 10% stock dividend in December. Earnings were I thus up 142% from the $5,280,196 ($6.60) in 1949. Divi- , dends paid in 1950 totaled $4.50; in 1949 they were 75^. j In 1950, Motorola invested $1,722,322 in new plants and [ equipment, working capital increased to $21,079,362 from ; $14,558,505 the preceding year. Mr. Galvin said first quar- ter 1951 will be only “normal quartex'” this yeai’, so that I 1 year’s sales cannot be estimated. Latter 1951 and eai’ly i 1952 will mark staid; of output on substantial military < contracts that will continue into 1953, he said. ) j ^ ❖ ' ' Hazeltine reports consolidated net income for 1950 of i $1,428,431, or $4.08 a share, after provision of $1,355,310 [ I for Federal taxes. Gross income fi-om sales, less costs, i royalties and engineering services, was reported as $4,- ' i 078,000. As of Dec. 31, 1950 amount invested in woi’k in ' process totaled $7,337,076 compai’ed to $2,969,456 year “ j earlier. The 1950 statement compares with 1949 profits of ^ I $985,072 ($2.81) on gross income of $2,843,213 (Vol. 6:11). 1 Proxy notice to stockholders for annual meeting April 10 = ' discloses these 1950 salaries and bonuses to officers: Jack '■ ' Binns, president, $35,610 salai'y plus $19,500 bonus; W. A. : MacDonald, v.p., $35,005 & $19,500; L. B. Dodds, v.p., $24,- '■ 563 & $9000; J. B. Dow, executive v.p., $20,349 & $8000; I- I Fielding Robinson, v.p., $19,349 & $10,000. James D. Shouse, Avco director and chairman of its j subsidiary Crosley Broadcasting Coi-p., is disclosed as holder of 5350 shares of Avco common, 150 pi’eferred, with ; options to purchase 12,500 shares of common at $8.39 and '' I 7500 at $8.12, in proxy statement accompanying annual '■ report (Vol. 7:9) and notice of annual stockholders meet- ing in Wilmington, April 12. He’s also second highest salaried officei', with 1950 salai’y of $62,500 plus bonus of $66,500. Pi’esident Victor Emanuel’s salai’y was $127,800, '■ bonus $75,000; W. A. Mogensen, v.p. & treas., $54,166 plus , $75,000; R. S. Pruitt, v.p. & secy., $50,200 plus $60,000; L. I. Hartmeyer, v.p., $30,000 plus $8000. J' Belden Mfg. Co. reports 1950 profit of $1,528,839 ' ($4.77 a share) vs. $617,293 ($1.93) in 1949. Among officers’ and directors’ stock transactions re- ported last week by SEC for January: Martin W. Clement bought 550 Avco, holds 1050; W. A. Rudolphsen bought 100 Belden, holds 670; Robert W. Galvin gave 3000 Motor- ola as gift (Dec. 1950), holds 64,258; Lawrence F. Hardy gave 200 Philco as gift (Dec. 1950), holds 7809; Thomas A. Kennally gave 5 Philco as gift (Dec. 1950), sold 2000, holds 25,973; Oscar O. Schreiber bought 785 Philco (Dec. 1950), sold 10, holds 1489; R. Schneidewind bought 300 Sparks-Withington (Dec. 1950), holds 500. Among reported Westinghouse stock purchases by company executives: George H. Bucher bought 217, holds 2441; Walter C. Evans 326, holds 1394; John M. McKibbin Jr. 434, holds 1445. ^ Jje Packard-Bell reports sales first 5 months of its current fiscal year, Oct. 1, 1950-March 1, 1951, totaled $11,619,561, estimated half-year ending March 31 w'ill exceed $13,000,- 000. Five-month figure more than doubles $6,124,000 for comparable period preceding year. “Several million dol- lars” in Army-Navy contracts were reported by executive v.p. Robert S. Bell. Dividends: Zenith, quarterly 50^ plus extra 50^*, both payable April 30 to holders of record April 9; Sylvania, 50(! on common, $1 on $4 preferred, both payable April 2 to holders March 20; Motorola, 50<^ payable April 16 to holders March 30; Cornell-Dubilier, 20^ payable March 28 to holders March 20; Packard-Bell, 254 payable April 25 to holders April 16. Philco’s annual report is due March 21 or 22, is under- stood to show sales exceeding $335,000,000 — some 60% ahead of the $214,884,000 of 1949 (Vol. 6:12) and setting new record over 1948’s $275,424,000. Trade Personals: Dr. Paul J. Selgin, ex-Farnsworth, since 1947 with Bureau of Standards ordnance develop- ment div., named chief of Bureau’s engineering electronics section . . . Wm. P. Short, ex-Raytheon, appointed chief engineer of General Precision Laboratory Inc., supervising electronic and optic equipment . . . Andrew F. Stanier, chief engineer, becomes president of Eureka Television & Tube Corp., succeeding Wm. R. Holt (Vol. 7:9); Frank X. Wells, maintenance chief, promoted to chief engineer . . . Joseph F. Bozzelli, ex-Brach Mfg. Co., named gen. sales mgr., Haydu Brothers . . . Charles A. Nichols promoted to Packard-Bell director of engineering; Richard G. Leitner, recently with Lear Inc., returns to Packard-Bell as chief research engineer . . . Carl Volpe named technical asst, to president R. D. Burnett, Starrett Television Corp. . . . Irving M. Sandberg resigns as gen. sales mgr., Crosley Distributing Corp., N. Y. . . . Leonard F. Cramer, DuMont v.p., elected president of Weimaraner Club of America, composed of fanciers of that breed dog . . . Thomas J. Fleming promoted from plant engineer to asst, purchasing director, Bendix Radio Div., Thomas M. Murphy Jr. suc- ceeding him with J. Russell Sandstrom as asst, and Rob- ert E. Wine new mgr. of subcontracting . . . Herbert J. Allemang, management consultant recently appointed by Philco, named v.p. and head of forward planning. Champion angler Ross Siragua, who holds interna- tional tuna title, landed 11 lb. 1 oz. bonefish off Bimini last week, playing quarry for 45 minutes, beating previous record for spinning equipment with 10-lb. line by 11 oz. It’s new international record, and this one plus 2 other bonefish he caught — 10 lb. 4 oz. & 9 lb. 8 oz. — also top 1951 Miami tournament. Youthful Admiral president, whose hobby is fishing and who has home at Cat Cay, with simi- lar light tackle also boated 20-lb. permit (pompano fam- ily) which took him 28 minutes to land. 12 - Telecasting Notes: New York area TV stations gave Senator Kefauver’s crime investigating committee hear- ings “the works” this week, playing to record audiences (as they did in Los Angeles, San Francisco, St. Louis, Chicago, Detroit) — but New York outlets managed sched- ules so that they needed to clear minimum of commercials. In fact, ABC’s WJZ-TV, WENR-TV & WXYZ-TV plus WFIL-TV got sponsor for all-day telecasts — Time Inc., using own Washington correspondent as commentator. WPIX’s Ted Estabrook handled cameras for all stations, drew plenty of kudos . . . Indicating intensity of dramatic interest in Kefauver committee “show,” Walter Winchell said witness Frank Costello (see p. 4) “made Schmeaux out of the Godfreys, Berles, Caesars, et al., this week by becoming a TV star (using just his hands)” . . . Kefauver telecasts were said to have affected theatre attendance, and there were some who even blamed fact people stayed at home to see them for unseasonal slump in pre-Easter retail trade . . . Theatre-TV picked up portions of testi- mony, with good reactions from matinee audiences in Fabian’s Brooklyn Fox, Century’s Marine and Queens The- atres ... In St. Louis early this month, both GOP and Democratic candidates in special Congressional election used KSD-TV — Republican Claude I. Bakewell winning out. Both sides said Kefauver telecasts had considerable influence on outcome, admitted by criminal lawyer Morris Shenker, power in local Democratic politics, who repre- sented some of gamblers at hearing . . . Though it has been operating regularly and commercially since last Dec. 10, Havana’s CMQ-TV made big occasion of inaugural of its new “Radio City” studios March 11, with Cuba’s President, Mexico’s Emilio Azcarrago (currently building own TV) and big delegation of U. S. radio and newsmen on hand . . . Richmond’s WTVR, bursting its seams, broke ground this week for another $750,000 addition to present $110,000 addition now being completed on half-block tract it owns adjacent to studio building . . . World Video filming for TV the Katzenjammer Kids, 50-year-old comic strip, under title of The Captain and the Kids . . . Edison film library of one and 2-reel silents, vintage 1906 to 1914, getting sound tracks for release to TV under title Hello Yesterday by Killiam Shows Inc., distribution thru Ray Block As- sociates. Use of Empire State Bldg, for theatre TV antennas, being investigated by number of movie interests, is techni- cally quite feasible, according to Empire State’s consultant Dr. Frank Kear. If and when FCC grants microwave band to theatre TV, he says, at least 4 antennas can be ac- commodated along with present TV station antennas (5 now, perhaps more later). He’s had talks with Paramount; Fabian and 20th Century-Fox are also reported interested. Application to join other stations on tower, filed with FCC by Newark’s WATV, has been objected to by WPIX. WATV apparently failed to clear up question of sharing WPIX’s antenna before filing. Only application for new TV station this week was by KAKE, Wichita, seeking Channel 10, fourth applicant for that city. Milwaukee Journal’s WTMJ-TV this week asked FCC to approve 985-ft. antenna, plans to ask for maximum power from this height when new allocation plan is effective. [For further details, see TV Addenda 12-J herewith; for listings of all applications to date, see TV Factbook No. 12 with Addenda to date.] Hearing on McFarland Bill to “streamline” FCC (S. 658) has finally been scheduled, for April 3, by House Interstate & Foreign Commerce Committee, which has been considerably less than enthusiastic about the meas- ure. What puzzles Committee, members say, is why in- dustry has shown so little interest in bill. Networks came to terms with Petrillo at eleventh-hour meeting March 13, precluding strike, agreed to 3-year con- tract with these major terms: (1) 15% w'age hike for AM staff musicians with TV pay brought to same level; 10% boost is retroactive to Feb. 1 and added 5% when approved by Wage Stabilization Board. (2) Payment to AFM wel- fare fund of b'J of gross revenues (excluding time charges) from films made by netw'orks for TV. This is reversal of networks’ attitude, explained by one network official as best compromise in order to get Petrillo to ac- cept principle that time charges should not be counted for this purpose. Number of independent TV film pro- ducers have agreements with Petrillo whereby they pay 5% on all revenue, including time charges. (3) Kinescopes can continue to be used one-time in non-interconnected cities. AFM receded from demand that networks ban all transcribed music between 8 a.m. and midnight. There will be live telecasts of some college football games next fall, according to Dr. Hugh C. Willett, presi- dent, National Collegiate Athletic Assn. He said March 15 that NCAA’s TV committee will meet soon to “work out plans for controlled live TV,” but added that the j group’s “controlled TV experiment” will principally in- volve filmed games, screened week after game is played. Earlier this week. Eastern College Athletic Assn, went on record as favoring NCAA’s “moratorium” on live tele- casts of college football (Vol. 7:2). But U of Pennsyl- vania athletic director Fran Murray spoke in favor of televising games, saying “live TV offers a boost to our public relations.” He confirmed that Penn is “taking bids on TV,” but has made no decision on TV for this fall. U. S. Congress March 14 joined large number of legisla- tive bodies considering action to force football telecasts when Rep. Clemente (D-N. Y.) introduced bill to televise : “regulax’ly scheduled football games” of Army and Navy. NAB’s April 15-19 convention in Chicago’s Stevens t Hotel will devote all of last day to TV. This year, engi- . neering sessions will run concurrently with management. , TV topics include: sales, low-cost operations, morning pro- j gramming, allocations. Other sessions will cover: de- fense mobilization, BAB, labor-management problems, sports telecasting-broadcasting, FM, research, legislation. NAB-TV has initiated “Profitable Program Ideas for TV” contest, inviting all stations to participate. Seven winners will receive awards at convention’s TV session. Portable cable-less TV camera, to free camera from clumsy “umbilical cord” attachment to truck during re- mote pickups, will be shown for first time when RCA dem- onstrates new' units at March 19-22 IRE convention in New York. Transmitters used w'ith camera will emit about 5 watts at 500 me for TV signal, 10 watts at 152 me for control signal. A big question about future of devices is that of obtaining enough frequencies. It will probably use spectrum above 1000 me. More March 1 sets-in-use reported since NBC Re- search’s “census” of Feb. 1 (Vol. 7:8): St. Louis 268,000, up 14,000; Kansas City 107,919, up 8919; Omaha 68,577, up 7877; Miami 55,000, up 2500; Utica 38,500, up 2500; Cleveland 453,575, up 30,575; Milwaukee 224,721, up 11,721; Louisville 82,858, up 4258; Johnstown 75,100, up 7000; New Orleans 52,150, up 2650; Baltimore 284,985, up 11,985; Ames (Des Moines) 47,625, up 5625. Tax those attending TV-radio studio show's — that w'as plea of James F. Reilly, executive director. League of New York Theatres, at March 15 hearing of House Ways & Means Committee. Reilly quoted Variety estimate that NBC and CBS w'ould distribute 8,000,000 tickets to New York TV-radio originations, claimed such untaxed ducats _ were unfair competition to legitimate theatres. MARTIN CODECs 1 'UBLISHED WEEKLY BY RADIO NEWS BUREAU, 1519 CONNECTICUT AVE. N.W., WASHINGTON 6. D.C. TELEPHONE MICHIGAN 2020 • VOL. 7, NO. 12 March 24, 1951 1! D. if t T ij !s: ii ! [ How FCC Proposes to End Freeze, page 1. ' VHF — Many Will Seek, Few Can Get, page 3. In This Issue: ^ Engineers Ferreting Out UHF Answers, page i. I Crime Hearing TV Still Talk of Town, page U- First Quarter Output 2,000,000, page 7. Trade Becalmed, Awaits April Push, page 7. Dollar Volume of Military Orders, page 9. RTMA Marshals Conservation Skills, page 9. PRINTED COPIES OF ALLOCATIONS REPORT: Detailed city-by-city channel allocations (with educational assignments) are tabulated in FCC's proposed new "VHF-UHF Rules, Standards & Allocations” issued this week. Important, too, are the legal and tech- nical whys and wherefores, as spelled out in proposed orders, commissioners' sepa- rate statements, engineering data and charts, etc., all contained in FCC's mimeo- graphed release of 60-odd pages. For easier reading and reference convenience of our subscribers, and with cooperation of Commission, whose supply of copies is limited, we have printed the full text in a 28-page TV Allocation Report, making one copy available herewith to each subscriber. Extra copies cost $2 each — or ^1 per copy in quantities of 25 or more. ^ ! 11 IS |i i' ; iL I 0- !| e- n, HOW FCC PROPOSES TO END THE FREEZE: Excellent engineering — diluted with weak judgment. That's industry's snap sizeup of long-awaited TV allocation plan issued by FCC this week. [For full text, see TV Allocation Report herewith.] Freeze remains solid — till fall or winter, at very least — though FCC hopes for sort of "partial" freeze-lifting, not too significant, in couple months. Another lengthy hearing, beginning May 25, must still be completed. The educators got their way — a substantial chunk of vhf as well as lihf. Thus, there's widespread feeling that FCC has given with one hand and taken away with other, that nation's TV will be afflicted with great gaps if FCC goes through with plan. [For analysis of what plan would do to major markets, see p. 3.] 'i iDl i 'e- , iji 111 t The "ins" — the existing stations — are delighted, as they visualize great increases in power, height, coverage. Educators may be happy, too, until they get into the business of trying to operate stations without income. But the "outs" are fiercely resentful, as they see themselves foreclosed from doubly attractive channels. The 51 existing stations which would be moved to other vhf channels may grumble, but no way near as loud as the "outs". In basically 4-2 decision and with obvious qualms (see their separate opin- ions in Allocation Report), commissioners may have lit fuse to keg of political TNT when majority agreed to hold choice channels in choice cities for chosen educators. Station applicants now regret their lackadaisical attitude towards educa- tional hearing — some may fight proposal tooth-and-nail , hoping it's not too late. "If There's political dynamite, too, in fact that Connecticut, Indiana, New Jer- sey, Ohio, Pennsylvania, among others, get so very few vhf — in New Jersey's case only the one already in use in Newark — outside of a few big cities. Their towns are relegated to dependence on uhf, no fault of the allocations but it may take some tall explaining to outraged local sensibilities. Commission's action isn't final. Basically, it's a proposal — but a very firm one — subject to a month of comment by industry before FCC closes door to further discussion of basic policy. Here's what FCC intends to do, unless comments received within next month change its mind; EDUCATION : Reserve approximately 10% of vhf and uhf channels indefinitely. i, 2 subject to FCC scrutiny "from time to time” to make sure channels aren't going begging or wasted. VHF : Provide for reduced station separations, greater powers and heights, as compared to previous proposals (Supp. No. 64). Permit increases in powers for exist- ing stations, and actual construction of new stations in Territories, before end of freeze, if no serious objections arise within month. Move 31 stations to different vhf channels to reduce interference. Retain general freeze on all new U.S. stations until close of further hearings and final decision on whole allocation. UHF : Open whole uhf band (either 65 or 70 channels, depending on whether 470-500 me is given to common carrier service), with hopes of actually permitting station construction before long without further hearing. Uhf is mixed with vhf in most cities, all major markets. Hosannas might have greeted plan, despite its tough local impacts, had it not been for educational gimmick — a complete victory for crusading Comr. Frieda Hennoek. Comrs. Sterling and Webster were opposed to flat reservation and Chairman ' Coy indicated some doubt but went along. Comr. Hennoek is still dissatisfied, still plumping for more channels, more vhf. ; But technical provisions are good, in opinion of able engineering observers, | one of whom said: "It ought to be good. They had 2)^ years to correct the last one." i Consider these facets particularly: ^ (1) Minimum vhf co-channel spacing was reduced from previously proposed j 220 miles to 180 miles city-to-city, 170 miles transmitter-to-transmitter (allowing ' flexibility in station location). Uhf co-channel mileage was cut from 200 to 165 | miles for cities, 155 for transmitters. ' Not yet generally realized, however, until consultants start drawing cir- cles, is fact that FCC has actually made most vhf co-channel assignments well in excess of 180 miles — most of them 200, 220 miles or even more. Engineers may find fertile field for juggling here. Only a few existing stations violate minimum. The worst — Davenport-Mil- waukee and Columbus-Indianapolis — run 150-160 miles. The "horrible example" of Cleveland-Detroit has been cleaned up. No new assignments violate 180-mile minimum. (2) Minimum vhf adjacent-channel spacing was reduced radically from 110 miles to 70 for cities, 60 for transmitters. Uhf was cut from 100 to 65 and 55. (3) Power maximum for vhf was hiked to 100 kw for Channels 2-6, 200 kw for Channels 7-13 (latter was surprise). Uhf is allowed 200 kw. No one may go over these powers, but great many stations can jump antennas to 1000-1500 ft. or more and still retain maximum. This permits enormous improvement in service, applies even to some stations on Empire State Bldg, and Mt. Wilson. (4) Minimum powers are eminently realistic, dropping down to as little as 1 kw, at 300 ft., for cities under 50,000 population. (5) Offset carrier is mandatory, extending every station's service. (6) Uhf is tailored to minimize many ills, avoid the problems of oscillator radiation, intermodulation, image, IF beat — making possible cheaper, better sets. (7) "Flexibility" uhf channels, 13 or 18 of them (depending on 470-500 me decision) , are set aside for assignment where need arises and for experimentation v;ith Stratovision, Polycasting and the like. * * si! * Procedure in "partially" lifting freeze and finally cleaning up whole prob- lem will be as follows: Comments on whole plan will be accepted until April 23. Opposition to these must be filed by May 8. Then, FCC decides whether it can start granting vhf power increases, vhf stations in Territories, uhf in U.S. — all before new vhf stations are unfrozen. On May 23, hearings on each city will begin in Washington, with FCC open to "persuasion" on channel shifts which would not affect "priorities" (see text of Allocation Report) or raise interference levels beyond those stipulated. *( 3 Educators will have to put up or shut up during these hearings. If they don’t defend channel reservations, they may lose out. As one FCC source put it: "Every asterisk [indicating reservation in allocation table] is subject to hearing." Incidentally, educators can compete for non-reserved channels against commercial applicants. "Educational" institutions are defined same as in EM rules ; they can’t sell time, can’t sell station to commercial interests. They may join together to build and operate stations. Oral argument will then be held, upon FCC Bar Assn, contention that FCC can’t legally make fixed allocation plan and require rule-making to change it. Comr. Jones, incidentally, feels same way — basis of his partial dissent. But i lawyers wonder whether new plan already renders such oral argument meaningless. Allocation plan is self-explanatory in regard to many other details, but in- dustry is bound to come up with questions and comments, reflect them in papers filed with FCC. As in the past, we’ll digest all comments, report them weekly. VHF-NANY WILL SEEK. FEW GAN GET: Not enough vhf for inevitable demand , plenty of uhf — that's the standout fact of the new TV allocations. Vhf assignments to edu- cation, particularly in the larger metropolitan areas, aggravate the shortages even more — and there will be many a bitterly disappointed commercial aspirant. By actual count, only 542 of the 1250-odd communities listed in the table of 1 allocations are to get total of 557 vhf channels. But 107 of these are already ; spoken for by existing stations in 63 communities (see p. 12), and 75 more are re- ! served for educators. That means commercials can get mere 377 new vhf stations. Few in the big cities will be pleased with sop given to them in way of uhf 1 channels, which are freely intermixed; e.g., among the 50 most populated cities (Vol. 6:29), every one save Miami gets from 1 to 5 uhf channels. But FCC may find it hard to get "customers" for these in alrady heavily vhf-served cities. Among top 50 cities, these have no more vhf channels available; New York, Philadelphia, Los Angeles, Detroit, Baltimore, Cleveland, Washington, Cincinnati, i Columbus, Louisville, Dayton, Syracuse. Good many vhf educational channels go to larger cities, in some cases shut- ting out any more commercial outlets. Chicago , Dallas , Omaha , Birmingham are in- I stances where single remaining unoccupied channels are earmarked for education — : and it would appear that Chicago shutout blanks CBS’s hopes for own key vhf outlet ' there, just as Cleveland and Cincinnati shutouts doom DuMont vhf applications. Education gets a vhf channel not only in foregoing 4 big cities, but also in; St. Louis, Boston, San Francisco, Pittsburgh, Milwaukee, Houston, Minneapolis- . St. Paul, Seattle, Kansas City, Indianapolis, Denver, San Antonio, Memphis, New ; Orleans, Portland, Ore., San Diego, Miami, Oklahoma City, Jacksonville — to scan top 50 cities only. [For analysis of any particular city, consult State and city channel alloca- i tion tables in our TV Allocation Report herewith.] After subtracting educational allocations, there aren’t very many vhf left for commercial newcomers — and a scramble for these can be expected. Portland and ' Denver, with no stations now, can get 3 commercial outlets each. Major cities with ' 2 left: Seattle, St. Louis, Minneapolis-St . Paul, Miami, New Orleans. But only one commercial vhf channel each is available to such big towns as : San Francisco (presiamably still reserved for Don Lee), Pittsburgh, Milwaukee, Hous- < ton, Buffalo, Kansas City, Ft. Worth, Indianapolis, San Antonio, Rochester, San f Diego, Toledo, Providence, Oklahoma City, Richmond, Jacksonville, Norfolk. Akron and Worcester, also among top 50, also without TV now, are left out in : cold. They get no vhf, are given 3 & 2 uhf, respectively. It’s an interesting fact that all others among top 50 save Miami get uhf — plus their vhf. * * * As for the uhf allocations, nobody expects much of a scramble for them in areas already vhf-served (though some may apply for them in hopes they turn out to . be bonanza). Their great promise is in non- TV areas, where both telecasting and LI - 4 - receiver business can start from scratch. Otherwise, they mean adapting existing sets or buying new ones capable of dual tuning. Some think color may eventually give uhf needed "oomph" in well-served vhf markets. Allocation table puts 1357 uhf channels in 1159 towns, 127 of the channels to go to educators — or about 9^% of total uhf as against some 15% of vhf. Comr. Hennock herself got realistic about uhf when she stated in her dissent: "Up to now, uhf operations have been completely experimental . and we have no assurance as to when uhf equipment will be available." She points to "conversion" problem among existing vhf sets, noting that the 2,250,000 sets in New York "will be lost to education on uhf unless additional tuners and antennas are added to them. In these circumstances," she adds, "the Commission quite properly indicates concern that even commercial interests in uhf will be required to face substantial economic problems beyond those ordinarily faced by a vhf operation. " ENGINEERS FERRETING OUT UHF ANSWERS: Immediate future of uhf is in hands of defense mobilizers — availability of materials playing large part in plans for building stations, transmitters, receivers. Nevertheless, FCC is obviously doing all it can in way of encouragement and pressure to bring out uhf, and fierce competition among manufacturers is beginning to bear fruit. At IRE convention this week, it was evident that manufacturers are open for business in the uhf transmitter market. They can't give delivery dates yet, but they're ready for orders. GE made biggest pitch, with 3 approaches (Vol. 7:11). One was new metal- ceramic tube giving 1 kw at 900 me (about same at 500 me), now in pilot production, ready for placement in transmitters ; unit is about 7-in. high, 3-in. diameter, weighs only 1 lb. Second is experimental klystron, built by Varian Associates, San Carlos, Cal., good for 5 kw throughout whole uhf band, shortly to be tested in Syra- cuse transmitter; tube engineers say that 5-kw metal-ceramic tube should be easy to make, now that bugs in 1-kw unit have been licked. Third approach is 4-bay helical antenna featuring gain of 20. Westinghouse revealed work on reflex resnatron, already good for 1.5 kw, with potential of 10 kw or so. RCA is said to have achieved 10 kw by combining out- put of 40 small tubes. And DuMont stands ready to build 1-kw transmitter. In uhf receiver field, DuMont, Sylvania and Zenith engineers described sev- eral developments, but many more manufacturers (including tuner makers) are known to have units in the works, playing cards close to chest, seeking competitive advan- tage. Also, nature of FCC's allocation had to be known definitely before final designs could be fixed. CRIME HEARING TV STILL TALK OF TOWN: TV apparently has firmly established itself as the No. 1 medium for reporting Congressional hearings — in fact, any news event falling within the ken of its lens. The electrifying impact of Kefauver Crime Committee telecasts from New York and Washington — fascinating even to those who may skip news pages or ignore radio public service programs — gave more than hint of TV's potentialities, was subject of countless news stories, editorials, columns. It revived suggestions that Congress itself be telecast, led Rep. Javits of New York to assert on House floor that hearings have proved desirability of "figura- tively enlarging Congress visitors' galleries to accommodate every citizen of U.S." But still left open is legal question whether a witness can be forced to testify before TV cameras (Vol. 7:11), for St. Louis "betting commissioner" James J. Carroll, who walked out on St. Louis hearing because of TV cameras, returned to Washington hearing March 22, asked and got same privilege as underworld figure Frank Costello — namely, that his face be kept off screen. It purged Carroll of contempt charge — but robbed TV of test case. Sen. Kefauver took occasion, after 45-minute wrangle at which Carroll protested not only TV but radio and newsreels, to give us his views on TV's place in public hearings: TV is a great means of public communication. ‘So long as the lighting, heat - 5 - and other physical conditions are not obnoxious to the witnesses, TV should have the same rights as movie cameras, radio and the ladies and gentlemen of the press. I can't see any difference between accommodating all the people the hearing room can hold and televising the proceedings." As dispute over ethics and legality of televised hearings continued. Sen. Wiley (R-Wis.) suggested voluntary code to assure fairness and help make TV "the greatest constructive force for public education achieved in this century." :(c ♦ * * There's little doubt hearings have been TV's biggest show to date — as illustrated by these items; Hearings earned 26.2 Hooperating Monday morning in New York, with TV audi- ence ISV2 times size of average weekday morning audience. Afternoon session had 51.5 rating, 86.2% share of TV audience, evening session getting 29.2 & 39.9. Effects were felt heavily. New York and Washington stores alike reporting sagging sales, non-TV bars empty, TV bars filled to capacity — even Red Cross blood donations falling off in New York until TV sets were installed at donor centers. NBC's formal request that ban on televising Costello's face be lifted, ask- ing same privileges as newsreels (run off on TV later anyhow), was turned down by Sen. Kefauver with observation that "it is more important [that] we have his testi- mony than that he be televised in the act of giving it." >i: * 4: * Sidelights on the televised hearings made good newspaper copy; Chicago gang- ster Jake Guzik, who refused time after time to answer Committee questions on grounds that "it might incriminate me," was asked by Sen. Wiley where he learned the phrase. "I heard it on TV," he replied. Likewise, students at a Queens public school were reported replying to teachers' questions, "I refuse to answer on the grounds that it may incriminate me." APPROACHES to compatible color system featured all Yx 10 highly technical papers at two IRE convention sessions. Tenor of discussion was that basic outlines of system are agreed upon and that specific details will be written out soon. Authors of papers — from Bell Labs, Philco, DuMont, Hazeltine, GE, Sylvania — seemed to feel RCA is on right track, but doesn’t necessarily have the only answer. Fundamental agreement of symposium participants makes it probable that single compatible system will emerge, eventually be presented to FCC. CBS felt it was being ignored — though it (with Rem- ington-Rand & Gray Mfg. Co.) conducted well-attended demonstrations daily. So v.p. Adrian Murphy got up during question period at March 20 evening symposium, attended by some 1500, said: “I’d like to remind this group that another gi'oup — the Supreme Court of the United States — will hear about color next Monday [March 26]. You may have heard that the FCC held hearings on color during 1949 and 1950. You may recall that it adopted the field-sequential system. “Compatible systems are very interesting and are a bright spot for the future — if they can be achieved. I thought you might be interested in this further informa- tion.” A few applauded. * « * * Depth of the cleavage over color that exists between FCC and the TV-radio engineering and industrial fra- ternity was indicated in blunt March 21 IRE banquet ad- dx'ess by RTMA president Robert Sprague — a sort of valedictory before turning RTMA post over to Glen Mc- Daniel as of April 1 (Vol. 7:2,7). He aimed it largely at accusations by FCC Comr. Jones in First Color Report (Vol. 6:35). “It is obvious,” said Sprague, “that were it not for the engineers there would be no TV. Less widely known is the fact that there would be no TV as we know it today except for the unselfish work of a large number of engi- neers who have consistently sought to protect the public interest, as well as the intere'sts of the industry, by resist- ing expei'iments conducted at the expense of the con- sumer’s pocketbook. “It is certain that if the action of these engineers, and of the industry generally, had been only self-seeking, or faulty, or erroneous — as has been recently implied by a member of the FCC — the public would have rebelled and TV would not be the multi-billion industry it is today . . . “Comr. Jones stated that [color] hearing had made it ‘crystal clear that the industry’s engineers were unsound analysts’ and in 1946 and 1947 had given testimony which was ‘completely worthless’ because ‘their economic inter- ests blinded their engineering judgment.’ He added more- over that there was ‘grave doubt’ that these engineers could ‘be relied upon to predict the potential performance of any system whose adoption might prejudice their eco- nomic interest.’ “If wholesale indictment of your great profession . . . were not so damaging and unfair, it would be ridiculous ... I only urge you to continue to be guided in the future, as in the past, by your own high standards, as I venture to offer you this credo and code for engineers : “Differences of engineering opinion can and should honestly exist. Unanimity of engineering judgment is not necessarily desirable. “Changes in engineering opinion resulting from the passage of time and the gaining of experience are healthy, and normally to be expected. “It is improper and futile to ask engineers to reach final and valid conclusions at too early a stage in the de- velopment of new systems or equipment.” Applause of conventioneers and congratulations Sprague received left little doubt of engineers’ feelings. 6 Station Acconnts: Seventeen sponsors, mostly national, are participating in Come into the Kitchen, Mon.-thru-Fri. 3-3:30 p.m. feature on KTTV, Los Angeles, among them: Blair Milling Co. (Ezy angel food cake mix), thru Jerome G. Galvin Adv., Kansas City; Converted Rice Inc. (Uncle Ben’s rice), thru Leo Burnett, Chicago; American Maize- Products Co. (Amazo instant dessert), thru Kenyon & Eckhardt, N. Y.; Purex Corp. (bleach), thru Foote, Cone & Belding, L. A.; A, E. Staley Mfg. Co. (Sta Flo starch), thru Ruthrauff & Ryan, Chicago; American Molasses Co. (Grandma’s molasses), thru Charles W. Hoyt Co., N. Y.; Tea Garden Products Co. (jellies and preserves), thru BBDO, San Francisco . . . New York State Dept, of Com- merce, to promote state, is placing 1-min. films thru BBDO . . . Goebel Brewing Co., Detroit, expanding to Pacific Coast, has bought new Vitapix half-hour time- talent package. The Jerry Colonna Show, reportedly cost- ing $6000 weekly, for placement on KGO-TV and KECA- TV, possibly other stations, thru Russell, Harris & Wood, San Francisco . . . Hotel Utah, Salt Lake City, sponsoring Tue. & Thu. 4:30 show on KSL-TV titled Uncle Roscoe's Playtime Party . . . Among other advertisers currently reported using or px’eparing to use TV : Somnyl Pharmaeal Corp. of America (Nu-Pax sedative), thru Emil Mogul Co., N.Y.; Sunnyvale Packing Co. (Rancho soups), thru Rus- sell, Harris & Wood, San Francisco (KECA-TV); Flex-Let Corp. (Flex-Let watch bands), thru Ben Sackheim Inc., N. Y.; Airmaid Hosiery Mills, thru J. B. Taylor Inc., Dallas; Chunk-E-Nut Products Co. (home popcorn pack), thru C. J. LaRoche & Co., N. Y. (WABD) ; Grosset & Dun- lap Inc. (books), thru Madison Adv. Co., N. Y. (WABD); Austin Motor Co. Ltd. (Austin cars), thru J. M. Mathes Inc., N. Y, (WABD); Herbert M. Adler (shoes for men), thru Frederick-Clinton Co., N. Y. (WABD); Foremost Dairies Inc., thi’u Fletcher D. Richards Inc., N. Y. (WABD). Network Acconnist Time Inc. extended its sponsorship of Kefauver Crime Committee telecasts through New York and Washington sessions on 19 ABC-TV stations, will con- tinue to conclusion, thru Young & Rubicam, N. Y. . . . Sponsored Easter Day specials on TV networks included: Philco Corp.’s Uncle Miltie’s Easter Party, starring Mil- ton Berle, on NBC-TV, 3-4, thru Hutchins Adv. Co., Philadelphia, and Lutheran Laymen’s League’s Bringing Christ to the Nation on ABC-TV, 3:30-4, thru Gotham Adv. Co., N. Y. . . . Easter Parade was sponsored by San- son Hosiery Mills on NBC-TV, noon-1, thru Borland Inc., N. Y.; by Old Gold on DuMont, 11:30-1, thru Lennen & Mitchell, N. Y.; by Wamsutta Mills, thru McCann-Erick- son, N. Y. and Bulova Watch Co., thru Blow Co., N. Y. on CBS-TV, 12:30-2 . . . Bymart Inc. (Tintair) March 19 moves Somerset Maugham Theatre from CBS-TV to NBC-TV, alt. Mon. 9:30-10:30, thru Cecil & Presbrey, N. Y.; will replace Procter & Gamble’s Musical Comedy Time cancelled March 19 . . . Starting April 28 Bymart will also sponsor Sam Levenson Show on CBS-TV, Sat. 7-7:30, thru Cecil & Presbi’ey, N. Y.; will replace Olds- mobile cancelling April 21 due to cutbacks . . . Emer- son Drug Co. (Bromo-Seltzer) March 18 started sponsor- ship of Rocky King, Detective on DuMont, Sun, 9-9:30, thru BBDO, N. Y.; replaced Arthur Murray Studios’ Arthur Murray’s Party Time moving to ABC-TV April 2 (Vol. 7:11) . . . Ford Dealers April 5 substitute James Melton Show for Ford Star Revue on NBC-TV, Thu. 9-10, thru J. Walter Thompson, N. Y. . . . Texas Co.’s Texaco Star Theatre, starring Milton Berle on NBC-TV, Tue. 8-9, June 12 starts a 13-week hiatus. Robert S. Peare, 50, GE advertising and publicity v.p., and as such in charge of its Schenectady TV and radio stations, died of heart attack March 17 in Schenectady. TdlfiCSStiny Notes: Song pluggers are turning to T\'^ (as they did to AM) as “prime exploitation factor, one which is likely to outweigh radio in the long run,” re- ports Billboard, which recalls that ASCAP once charged the broadcaster with “the murder of music” . , . Milton Berle, 42, gets 7-figure contract “for 30 years” from NBC, covering exclusive services as actor, producer, writer or director; it’s either a capital gains or spread-the-income deal, though neither side will discuss matter . . . TV’s high pay and good hours (daytime rehearsals) have created shortage of chorus girls for night clubs and stage, says New York Times, citing these weekly union minimums for experienced perfoi-mers : night clubs $70, Broadway shows $75, one-hour TV show $125 . . . Remotes direct From the Governor’s Office, with Gov. Kohler and legislators par- ticipating, are latest public service on WTMJ-TV, Mil- waukee; it’s 90-mi. haul from Madison, and show is Sat. 5:30 . . . Hollywood’s KTSL, now operated by CBS, has added 20 engineers under TV technical chief Herbert A. Pangborn . . . United Television Corp., Paramount Bldg., New York, organized to book movies for TV, reports 300 features, 60 westerns, 200 cartoons, etc., available; Arche Mayers is president, Robert Wormhoudt sales mgr., Con- nie Lazar program mgr. . . . NBC producer-director Her- bert Bayard Swope Jr. acquires TV-radio rights to Sax Rohmer Fu Manchu stories, giving NBC first refusal . . . NBC “O&O” v.p. James M. Gaines subject of “New York Close-Up” sketch in March 23 Herald Tribune. . . . Series on Navy history from previously unreleased Allied and enemy film, will be carried by NBC-TV starting late this year, first 26 weeks as recruiting aid; supervising pro- gram will be Henry Saloman Jr., asst, to Capt. Samuel Eliot Morison in compiling official History of U. S. Naval Operations, World War II, basis of series . . . Aimed at 6th grade classrooms (with 6 schools picking first show' up and very enthusiastic), series of 8 music appreciation shows began on Washington’s WNBW March 14, will con- tinue Wed. 10-10:30; it’s experijnent resulting from year’s study, says station, and “did not come about merely as a sop to the current advocates of educational TV.” The pro- ducers had tough choice to make March 21, but decided to break into Kefauver telecasts “because of advance com- mitment”— interrupted Costello highlight. Personal Notes: DuMont Network appoints Clarence G. Alexander, onetime NBC-TV, director of network opera- tions, upping Norman W. Drescher to director of station relations, and Joseph W. Hess to director of budget and general services . . . John M. Boyland, ex-NBC, joins ABC-TV station relations as regional mgr. . . . Forrester Mashbir, ex-KPIX, joins KTTV, Los Angeles, as sports director . . . Dr. Joe Zimmerman, TV Workshop director of Temple U, named production supei'visor of WFIL-TV, Philadelphia . . . James G. Cominos, ex-v.p. and TV-radio director of LeVally Inc., Chicago agency now liquidating, joins Needham, Louis & Brorby as v.p. ■ More rate increases reported: WSB-TV, Atlanta, March 1 raised base hourly rate from $325 to $500, one- minute announcements fx'om $52 to $80. On April 1, WNBW, Washington, goes fi'om $450 to $550 & $100 to $120; WDAF-TV, Kansas City, from $400 to $450 & $80 to $90; WFAA-TV, Dallas, from $300 to $400 & $45 to $60; WBAP-TV, Fort Worth, from $300 to $400 & $45 to $60. On June 1, WTVJ, Miami, goes from $375 to $550 & $65 to $95. On July 1, WBTV, Charlotte, raises rate from $300 to $400 & $50 to $65. Main NARTB (NAB) convention speakeis during April 15-19 sessions in Chicago’s Stevens Hotel w'ill be Gen. Omar Bradley, April 17, with off-the-record session afterward, and FCC Chairman Coy, April 18. , I FIRST QUARTER OUTPUT 2,000,000: Looks like first 1951 quarter TV output will run 'if somewhat over 2,000,000 units, as against 1,605,200 for same 1950 quarter and very nearly 2,500,000 for fourth 1950 quarter. Output was 181,008 in 11th week (ending jlK March 16), RTMA reports, holding close to preceding week (Vol. 7:11) but staying down from peak of 190,291 in week ending March 2. Total for 11 weeks thus far re- ported is 1,876,643. Factory inventories as of March 16 were 196,526 as against ij approximately 180,000 each of preceding two weeks. I Radios went up slightly — 564,916 units for 11th week, as against 355,044 „j preceding week (Vol. 7:11). Factory inventories were 142,247 vs. 146,848 week s earlier. Total radios for 11 weeks: 3,647,846. Production for week ending March 16 was 213,441 home radios, 122,125 auto, 29,350 portable. 0 TRADE RECALNED, AWAITS APRIL PUSH: TV trade continued too slow this week to clear ' i glut of inventories of high-priced units — even Kefauver telecasts (see p. 4) and prospect of baseball failing to serve as sufficient buying stimulants, j Easter over, merchandisers are praying they can bring business into calmer waters as (1) production falls off and factory shipments reduce; (2) production is M concentrated on lower-priced sets ; (3) "powerhouse promotion." to quote one leader, , is put behind big sales drives in April. Q j There *s plenty of worry but nothing like panic — and such distress selling 1 as occurs is highly localized. 'I 4: ^ ^ ,1 ^ Despite the blues — felt in other appliance lines, too, and blamed more on r I Regulation W than any other single factor — no major manufacturer up to this writing 1 has followed Admiral's lead in ordering list reductions (Vol. 7:11). They're all concentrating now on the smaller and cheaper models that sell easier and bring customers into stores — but Emerson, Crosley, DuMont, Philco . RCA, Zenith flatly state they have no intention of cutting prices. Several say they anticipated pre-Easter slump, so weren't hit too hard — ‘ noting that the Admiral cuts were all on its low-end plastic models against which they're competing with wooden units. RCA, Philco, Emerson, DuMont — and it can be e presumed Admiral and others, too — will burgeon forth shortly with huge advertising '• ’ campaigns, and some are going to push hard on radios now. Motorola expects to make ] up lower second quarter TV production with auto radios and portables, d "There's nothing wrong with this business," one big manufacturer told us, T "except too much high-priced stuff and not enough low-end merchandise. We'll simply 3 give them more low-end, and go back to normal selling." "Normal selling" appears to 'f mean vigorous promotion, liberal trade-ins, public prize contests, salesmen's trips ’’ to Miami or Bermuda or Mexico, giveaways of lamps, record albums, etc. etc. Table models weren't too plentiful, even when Admiral broke its prices. Admiral's troubles weren't with that item; it's rebating on only a few thousand in pipelines when ^30-$40 reductions were ordered. ^ ^ ^ It's a curiously ironical turn of events that news of production cutbacks, apparently inevitable as Washington materials controls tighten, should actually be hailed with pleasure by some of same folk who not long ago were bemoaning inability to get enough sets to meet demand. That's how it is in TV today. Some distributors and dealers are actually begrudging manufacturers their big 1950 sales and earnings, blaming them for (a) failing to give them benefits by way of better discounts, and (b) loading them up while failing to foresee current dip in demand. At factories, they're still waiting for flood of defense orders — expected - 7 - 8 - long before now. Most are quietly cutting back. DuMont announced 4-day week for receiver and parts divisions (not tubes), starting March 26, attributed this to steel limitation order (Vol. 7:11), stating this was preferable to laying off per- sonnel. It was disclosed by union sources in Chicago that Admiral had shut down 2 production lines March 14, resuming them March 22. Emerson is resuming production of 14-in. plastic table at $179.95, frankly as price leader, and Hallicraf ters this week announced 14-in. ebony leatherette table at $199.95, in mahogany finish $219.95. Philco probably won't hold usual big convention this summer, encouraging instead regional dealer conventions (including Bermuda cruises already arranged). Nobody's talking "new" spring or summer lines yet, though there probably will be some such items by time of Chicago Furniture Mart in June. As for substitute materials, they're simply being "inched into" current lines, with minimum of fanfare even by their prime promoters. =p * * * Few think second quarter, even if it gets good push from April-May promo- tions, will equal first quarter's production — or even sales. Nearly everybody seems sure materials shortages really will begin to pinch third quarter, some even fear for civilian supplies at all fourth quarter. Normally, it's calculated year's production and sales should be 25% first quarter, 15% second, 25% third, 35% fourth. Trade Miscellany: RCA Victor’s big ad campaign breaks April 15, timed for start of National Baseball Week, will urge attendance at games “but if you can’t make the game today, see it on TV” . . , Emerson’s fac- tory-paid advertising includes full-page newspaper ads plus radio and TV promotion, and big schedule of maga- zine space . . . DuMont for first time is authorizing trade- ins, part of promotion tied in with its 20th anniversary; also going heavily into consumer magazines and TV . . . Big sponsor of TV time, particularly sports, Hoffman Radio has own staff TV program producer — John More, ex-Brisacher, Wheeler & Staff . . . Crosley’s Wm. A. Blees subject of biographical sketch in March 20 “Business and Finance Leaders” column in New York Herald Tnbune. Plant Expansions: Philco has acquiied 3 new plants in Bedford, Ind., adding about 175,000 sq. ft. to its present 4,200,000 sq. ft., anticipating use for govt, work; they’re one-story buildings, never before occupied, purchased from Tecumseh Products Co., Emerson Electric Mfg. Co., Acklin Metal Products . . . Tung-Sol has acquired 100,000 sq. ft. plant in Washington, N. J. formerly occupied by Pohat- cong Hosiery Mills, will use it for defense tube produc- tion . . . Hytron closed deal for 60-acre tract in Danvers, Mass., plans to build new plant there (Vol. 7:4). Nation-wide publicity, including full-page reprints of songs, also kudos from civic interests, were rewards reaped by Washington-Baltimore Motorola distributor James H. Simon for sponsoring, in conjunction with Motorola, con- test for “state” song for District of Columbia; winner was professional songwriter Jimmie Dodd, of Hollywood, who got $1000 plus all royalties. There were 3627 other en- tries, 4 other winners (of Motorola sets). Gabriel Co., Cleveland, which manufactures shock ab- sorbers, coil springs, thermostats, etc., and of which Ward Products (TV antennas) is a subsidiary, has taken over Radio Workshops Inc., Needham Heights, Mass., special- ists in antennas, and will opei-ate it as a wholly-owned subsidiary. FTC hearing on its complaint against Sylvania tube l)iicing practices (Vol. 6:2, 7:12) postponed to April 27, when Sylvania and Philco attorneys will argue motion to dismiss charge Philco was favored with special prices. Topics & Trends ol TV Trade: Competition for en- gineers reached almost frantic stage at IRE convention in New York this week. Men were wooed by hundreds of companies; many carried half dozen tempting offers around in their pockets. Giant bulletin board in Waldorf-Astoria headquar- ters carried scores of placards extolling life in “Sunny CalifoiTiia,” etc. Company representatives took hotel suites, enticed engineers up for drink and subtle suasion. Not only electi-onic engineers az-e being sought. Hunt is on for physicists, chemists, draftsmen, mechanical engi- neers, too. The aircraft companies — Hughes, Fairchild, et al — were in there pitching, with blandishments as great or greater than those of strictly electronic firms. Striving with the rest were govt, agencies — Defense Dept., Bureau of Standards, etc. Kids just out of school felt like high-school girls danc- ing with All Americans — and old-timers blushed at calcu- lated compliments. * * * * Retail sales of TV-radio and household appliance dealers dipped 14% from December 1950 to Januaiy 1951, Census Bureau reports in its January Trends in the Elec- trical Goods Trade. This is considerably less, percentage- wise, than the 40% drop from December 1949 to January 1950 or the 41% drop from December 1948 to January 1949. Estimated total U. S. sales by retailers in this cate- gory were $307,000,000 in January 1951, or 459« higher than the $212,000,000 reported in January 1950. TV panel will be feature of Canadian Assn, of Radio & Appliance Dealers’ convention April 1-4 in Royal York Hotel, Toronto. Panel speakers include Crosley v.p. W. A. Blees. Other convention speakers include NARDA presi- dent Mort Farr, RCA TV sales mgr. D. D. Halpin and GE traffic appliance mei’chandise mgr. A. L. Scaife. Sheldon Electric this week posted price reductions from $2 on 10-in. CR tubes to $10 on 20-in., said to be result of new speed-up equipment making Ii-vington (N. J.) plant capable of producing up to 5000 units daily. Next Chicago Furniture Mart is scheduled for June 18-28. San Francisco’s summer mart set for July 16-20. DOLLAR VOLUME OF NIUTARY ORDERS: Military electronics production will reach peak annual rate of S2.5 billion in fall of 1952, said RTMA president Robert Sprague in IRE convention address March 21 — first such estimate to be made public by such an authoritative source. Thereafter, he said output will fall back to Si. 5 billion annual rate. He was referring to military electronics-communications program as whole, noted military production dollars have "about half the impact [of] civilian production dollars" because of higher specifications and non-electronic parts. "These figures indicate," he said, "that our Industry will not be so heavily loaded with military contracts but that it will be able to maintain a substantial amount of civilian production, even at the peak of the military output — except in the unfortunate event of an all-out war. Apparently only the shortages of certain critical materials will prevent manufacturers from turning out as many radio and TV sets as their plant facilities and military orders will permit. "It is, therefore, highly important that govt, officials make provision in their planning for the healthy continuation of our civilian economy, for we do not know when all of the present manpower and production facilities in our industry may be needed for the nation's defense." Study of TV industry by broker Fahnestock & Co. says that, since Korean War started, $1.8 billion of military electronics orders have been placed, estimates total of $5.5 billion by mid-1951, more than $7.6 billion by mid-1952. That's not far off — if you use rule-of-thumb estimate that electronics- communications account for roughly 10% of all military procurement. Official Defense Dept, report for first 8 months of fiscal 1951 shows $19.7 billion obligated over- i all, another $3 billion soon to be let. Defense Dept, also revealed recently that $87 billion out of total of $123 billion military appropriations for fiscal 1951 & 1952 would be for materials procurement, which indicates $8.7 billion for electron- ics-communications (Vol. 7:3). I Recent estimate by Wall Street Journal put actual deliveries of overall t military items at $20 billion in 1951, figured $50 billion each in 1952 & 1953, I then decreasing amounts. I RTMA MARSHALS CONSERVATION SKILLS: RTMA's "share the know-how" plan to conserve ) critical materials (Vol. 7:11) received full stamp of approval from members at big I March 21 meeting in New York's Hotel Commodore. RTMA's attitude was well summed up : by meeting chairman Dr. W. R. G. Baker (GE), RTMA engineering dept, director: (1) "No company has a monopoly on brains." (2) "If we show Washington exactly what we have achieved and will achieve, I we'll get a hell of a lot more help from dov/n there." Some 100-plus attendees, mostly top engineers, agreed to following organiza- tional setup: Chairmen of existing major RTMA engineering departments become chairmen of "Material Bureaus" for their respective departments, appoint other members of their Bureaus, set up task forces. An Advisory Council will coordinate Bureaus. Chairmen are : M. R. Briggs, Westinghouse, transmitters; L. M. Clement. Cros- ley, receivers; R. J. Biele, GE, components; 0. L. Angevine Jr. , Stromberg-Carlson, sound equipment ; V. M. Graham. Sylvania, Joint Electron Tube Engineering Council (of RTMA & NEMA). Chairman for special equipment is to be named later. Advisory Council comprises foregoing — plus D. B. Smith, Philco, RTMA vice director of engineering; Ralph Batcher, RTMA chief engineer; D. D. Israel. Emerson, chairman of general standards committee. Mr. Clement heads up Council. Discussion of conservation problems during rather brief session brought out I several things on engineers' minds: I - 9 - 4 10 - (1) Those manufacturers who've alv/ays conserved fear that NPA, through its "base period" materials limitations, may actually be rougher on them than on waste- ful producers. (2) Standardization of "conserved" components will be a major topic from now on. For example, hov/ much should resistor leads and bushings be shortened? Some end-product makers (TV or otherwise) can't use them if they're too short, would, have to redesign sets or other devices. (3) Ample warning of shifts to new types of components must be given to everyone, lest component makers find demand outrunning productive capacity. Example: Sudden big demand for copper-clad steel wire would swamp wire makers. (4) When and how to "go the whole hog" — redesign sets, rather than snip off a little here and there without changing basic design — worries many. One engineer suggested designers speed up industry's historical trend to smaller, less complex sets. He placed considerable hopes in hiked TV transmitter power. (5) Underwriters Laboratories must be consulted before various conservation measures are adopted. * * * * Engineers themselves are surprised at continued availability of components. One smaller producer said he'd given his suppliers go-ahead on shorter leads, cop- per-clad wire, etc., but continues to get all the conventional types he can use. Another insisted that nothing has yet become really tight, said: "I'm naturally pessimistic, but my fears have continually proved unfounded. I've just quit worrying. If shortages come, they come, but I haven't seen any yet." Nice military backlogs are keeping some manufacturers happy — and giving them new worries. One reports that engineers are the only "component" he needs: "Both conservation measures and military development use a lot of engineers. It's not like production of established goods." Mobilization Notes: Newly planned top-level Electronics Production Board (Vol. 7:11) will get chairman from high in the electronics industry, probably next week. Repre- sentatives of govt, units that will come under this over- all defense agency held first meeting March 19, with DPA Administrator Wm. H. Harrison acting as chairman. Gen. Harrison officially announced formation of board March 21 in statement pointing out that use of electronics equipment has reached such widespread proportions in in- dustry, defense and communications that any lag in elec- tronic production could affect entire' mobilization program. He said operation of ships, tanks, planes, missiles, guns and atomic devices would be impossible today without electronics. Board’s primary function “is to make certain that no electronic bottleneck stymies any element of the defense effort,” DPA announced. “This requires intensified atten- tion to research and development, facilities expansion and production engineering if the required equipment is to be available at the time that it is needed for . . . basic weapons of war.” As announced, board will consist of chairman ap- pointed by Harrison, NPA’s Electronic Products Div. di- rector (John Daley), general manager of Atomic Energy Commission (Marion W. Boyer) and “representatives of DPA and Defense Dept., and such additional representa- tives of the Munitions Board and the Armed Services as may be agreed upon.” Board will determine total requirements — military, in- dustrial, civilian and foreign — for electronic products, and will recommend to various agencies methods for their dis- tribution. Board will also “recommend policies and pro- cedures for insuring required production, including plant expansion, conservation and standardization of products.” Details of controlled materials plan (CMP) are ex- pected to be announced by NPA next week (Vol. 7:3). Under CMP, Govt, will ration steel, copper and alumi- num, beginning July 1. Best information is that planners now favor “open-ended” CMP, with the 3 important metals being doled out for defense and defense-supporting re- quirements only. To ease scramble for remaining supply, proposed limitation system would grade essentiality of civilian requirements. Avalanche of govt, forms and red tape may come shortly after April 1. Two big orders for radar equipment highlighted list of unclassified contracts negotiated by Air Force week ended March 9. Although Defense Dept, recently clamped security lid on dollar values of contracts awarded (Vol. 7:10), Air Force spokesman said this list had been pre- pared and cleared before new restrictions went into effect. Awards on list for electronics and related equipment (over $100,000) .: Bendix, $13,000,000, radar equipment and sets; Gilfillan Bros., $9,500,000, radar equipment; Federal Tele- phone & Radio, $6,373,475, ground radio transmitters; Raytheon, $1,116,808, magnetron tubes; Webster-Chicago, $142,000, radar receivers. Electrostatic 30-in. tube is planned, presents no un- usual difficulties, according to DuMont engineer H. Gross- bohlin. During IRE convention press conference, he said company doesn’t plan rectangulars with same picture area. Tube has 90-degree deflection, compared with 66 for 19-in. tube, yet is only 24-in. long — 2 inches more than 19-in. Full-scale congressional probe of administration of mobilization program will start April 4, with more than 50 witnesses, including Defense Mobilizer Charles E. Wil- son. Joint Senate-House Defense Production Committee chairman Burnet R. Maybank (D-S. C.) indicated tax amortization program will be one of inquiry’s focal points. 11 Trade Personals: Frank Folsom, RCA president, due back in New York April 2 from month’s vacation visiting daughter and grandchildren in Palm Beach . , . Rear Ad- miral Stanley F. Patten, USN ret., asst, to president Allen B. DuMont since 1947, named DuMont Govt. Dept.’s direc- tor of mobilization planning, handling Federal controls, security matters, etc. . . . Donald N. Berry, ex-Hathaway Instrument Co., Denver, named new Hoffman Radio chief mechanical engineer under engineering v.p. John A. Ran- kin . . . R. M. Butler appointed asst, sales mgr.. Inter- national Resistance Co., succeeded as jobber contact man by J. F. Whitaker . . . F. J. Cooke, chief engineer of Rem- ington Rand’s electronic tube laboratory, recently sold to Reeves Soundcraft Corp., now gen. mgr. of Reeves color- craft and magnetic tape divisions . . . Maurice L. Levy, ex-Stromberg-Carlson, Emerson, Philco, named Tele-tone director of engineering . . . Darwin Brown, attorney for RCA tube dept., has left to join Washington law firm of Ginsburg & Leventhal, now Ginsburg & Brown, Ring Bldg. Mobilization Personals: Four men have been added to staff of NPA Electronic Products Div. Named to radio- TV section under E. MacDonald Nyhen: John A. Pfau, ex-FCC radio intelligence and for 14 years utility indus- try engineer; O. W. McDaniel Sr., ex-WPB Radio-Radar Div. To end products section under J. A. Milling: Noble Harris, ex-lieutenant commander in Navy electronics work. Bureau of Aeronautics. To test equipment section, under Robert B. McCurdy: George G. Hoye, ex-WPB Radio- Radar Div. . . . Dr. Robert F. Bacher, ex-Atomic Energy Commissioner, named chairman of Committee on Atomic Energy in Defense Dept. Research & Development Board . . . Charles Franklin Kells, asst, president of West Penn Electric, appointed director of NPA Power Equipment Div. Some smaller TV manufacturers are worried over their ability to fill defense orders because of loss of skilled labor due to materials cutbacks and market conditions. New York Times reported March 19. Other small TV firms, however, maintain loss of labor won’t impair their ability to fill military contracts because they can keep skeleton staff of essential employes during transition period. In another development, NPA Administrator Manly Fleischmann met with Small Business Advisory Commit- tee, summarized their problems as “shortage of materials and lack of defense contracts,” and pledged that preserva- tion of small business will be major goal of his agency. Committee asked NPA to review availability of scarce ma- terials toward possible relaxation of limitation orders in light of curtailed stockpiling, lower military demands than anticipated, and increase in raw material production. New TV picture tube which conserves critical mate- rials was displayed at IRE convention by Rauland Corp. Like other electrostatically-focused tubes, it makes pos- sible savings of cobalt and copper. But unlike the others, Rauland claims, it doesn’t require re-engineering of pres- ent receivers. Focusing is done with power from regular DC power supply and only added equipment needed is voltage control, according to Rauland. RCA plans to be- gin production of its electrostatic tubes April 1, but they may not be incorporated into RCA’s sets until later date. GE says its electrostatic 17-inch tubes are being made in limited quantities at Syracuse and larger-scale production can begin on “several weeks’ notice” upon demand. Molybdenum, used in some electron tubes, ^vill be placed under complete govt, allocation according to end- use essentiality, NPA officials told tungsten and molyb- denum fabricators March 22. Among 8 industry repre- sentatives present at meeting were W. P. Kiernan, North American Philips; J. B. Merrill, Sylvania; Jack Gelok, Westinghouse. Financial Sz Trade Notes: Phiico sales of $.335,318,- 000 in 1950 represented 56% increase over the $214,884,000 of 1949, with each of its divisions up. Net earnings in 1950 also went to record high of $15,484,000, equal after preferred dividends to $4.50 on 3,357,556 shares of com- mon stock outstanding after December’s 2-for-l common stock split. In 1949, profit was $5,692,000 ($1.58). Total taxes of $18,220,000 exceeded earnings by con- siderable margin, and during year $1.27 per share plus 5% in common stock were paid as dividends, as against $1 dividend in 1949. Working capital at end of 1950 was $41,929,069, total net worth $68,499,947, up from preceding year’s $21,910,066 & $57,670,345, respectively. Most noteworthy rise in year was 300% in TV re- ceiver sales (reported in trade circles as around 950,000 units), with substantial increases also in radios, radio- phonos, refrigerators, freezers, etc. President Balders- ton’s report ventures no prediction for this year beyond indicating “gradual reduction in civilian business and a substantial increase in production for the Govt.” * * * « Zenith annual report released this week discloses profit of $5,627,003, or $11.43 a share, after normal and excess profits taxes totaling $5,900,000 for “fractional fiscal year” or 8-month period from May 1, 1950 to Dec. 31, 1950. This compares with $5,268,001 ($10.70) for pre- ceding 12-month fiscal year ended April 30. Sales were $87,704,071 for 8-month period, compared with $99,210,746 for preceding 12 months. Company changed fiscal year to conform to calendar year as of Jan. 1, 1951. Report shows sales were $134,012,595 for calendar 12-month pe- riod ended Dec. 31, 1950, net income after taxes $8,479,390. Hallicrafters did $37,000,000 worth of business in 1950, of which 80% was TV, 20% govt, and communications equipment, according to president William J. Halligan. Halligan compared 1950 volume with $15,500,000 in 1949, predicted volume of $60,000,000 in 1951 — with $22,600,000 in military orders booked at end of February. Known to be better fixed in military procurement than most, Hallicraft- ers topkick told distributor meeting in Chicago that first 3 months this year govt, orders are 11% of total billings; that April-May they should amount to 25% of production. * * * * Final CBS report on 1950 operations, issued this week, shows record gross income of $124,105,408, net profit of $4,105,329 ($2.39 per share), compared with 1949 gross of $105,397,580 and net of $4,184,079 ($2.44). Federal in- come taxes of $4,850,000 and excess profits tax of $600,000 held earnings down in 1950 to lowest point in 6 years (Vol. 7:6), Federal taxes for 1949 having been $3,450,000. Trav-Ler reports net profit of $1,156,851, or $1.52 per share on 761,995 shares outstanding, on sales of $13,892,- 485 during 1950. Preceding year, when company was pri- vately owned, its profit was $299,121 on sales of $7,014,870. Avco’s first quarter 1951 sales totaled $86,380,616, profit $3,590,976, or 406 per share. This compares with $37,919,344 sales, $1,137,581 profit (156) same 1950 period. Standard Coil Products Co. reports net profits of $5,- 266,442 on 1950 sales of $35,632,396, compai’ed with 1949 px-ofit of $2,579,279 on $16,594,626 sales. Hoffman Radio 1950 sales wei’e $29,580,510, net px’ofit $1,923,052 ($3.37 per common shai’e) vs. 1949 sales of $11,- 987,000, profit $1,276,036 (.$2.24). Decca Records reports net profit of $1,004,177 ($1.29 a shai-e) on 1950 sales of $21,408,618 vs. $830,870 ($1.04) on $19,820,987 in 1949. ABC reports 1950 profit of $84,605, as against net loss of $519,085 in 1949 after tax ci'edit then of $327,000. 12 NBC Count oi TV Sels-in-Use by Cities As of March 1, 1951 Estimates are sets within .1 Mv/m contours (60 mi.), excluding overlaps Because each tv station has a different pattern of coverage, and because so much dispute has arisen over estimates of total families within range, The Digest is reluctantly constrained to eliminate family figures in these monthly tabulations by NBC Research. Henceforth, we shall publish only estimated sets-in-use within .1 Mv/m contours (roughly, 60 mi.), as compiled by NBC Research each month — only such statistics gathered within the indus- try that bear any semblance of scientific effort. It should be noted, too, that overlaps in coverage of neighbor-city stations are eliminated, viz., Boston-Providence, Baltimore- Washington, etc. March 1 tabulation shows increase of 601,900 over Feb. 1 (Vol. 7:8), brings total sets-in-use to 11,748,400. These are the breakdowns (consult individual stations for esti- mates of number of families within range) : Interconnected Cities Area No. Stations No. Sets Ames (Des Moines) 1 47,600 Atlanta 2 96,50U Baltimore 3 285,000 Birmingham . 2 46,400 Bloomington, Ind. . 1 15,000 Boston 2 701,000 Buffalo X 191,000 Charlotte X 61,400 Chicago 4 890,000 Cincinnati — 3 243,000 Cleveland 3 454,000 Columbus 3 137,000 Davenport- Rock Island . 2 49,600 Dayton 2 120,000 Detroit 3 437,000 Erie — -- X 44,400 Grand Rapids . X 76,900 Greensboro — 1 57,500 Huntington — 1 38,000 Indianapolis — 1 117,000 Jacksonville 1 28,000 Johnstown 1 75,100 Kalamazoo — 1 35,000 Kansas City 1 108,000 Lancaster — X 84,600 Lansing 1 46,000 Louisville 2 82,900 Memphis 1 79,300 Ivlilwaukee 1 225,000 Minneapolis- St. Paul 2 251,000 Nashville 1 24,800* New Haven — 1 144,000 New York 7 2,240,000 Norfolk - 1 60,300 Omaha 2 66,500 Philadelphia _ 3 814,000 Pittsburgh — 1 240,000 Interconnected Cities — ( Cont’d) No. No. Area Stations Sets Providence 1 139,000 Richmond 1 68,800 Rochester 1 77,200 Schenectady X 147,000 St. Louis 1 268,000 Syracuse 2 108,000 Toledo - 1 87,000 Utica 1 38,500 Washington 4 244,000 Wilmington 1 59,900 Total Inter- connected 80 9,950,200 N on-interconnected Cities Albuquerque .. 1 7,900 Binghamton 1 34,400 (Dallas (Fort Worth 2 1 109,000 Houston 1 69,500 Los Angeles .— 7 877,000 Miami 1 55,000 New Orleans X 52,200 Oklahoma City 1 79,500 Phoenix X 37,400 Salt Lake City 2 39,000 San Antonio 2 41,500 San Diego 1 87,000 San Francisco 3 168,000 Seattle 1 75,800 Tulsa - 1 65,000 Total Non- Inter- connected 27 1,798,200 Total Inter- connected and Non- Inter- connected 107 11,748,400 * February 1 estimate for Nashville was erroneously published as 28,000 (Vol. 7:8): correct figure should have been 24,000. B Five applications for TV stations filed this week brought total pending to 394. WEEK & WIRL, both Peoria, 111., both asked for Channel 12; former once had CP, dropped it in 1949 (Vol. 5:22). Others were WSAV, Savan- nah, No. 3; WALA, Mobile, No. 3; KXEL, Waterloo, la., No. 3. [For further details about these applicants, princi- pals, etc., see TV Addenda 12-K herewith; for listings of all applications to date, see TV Factbook No. 12 with Addenda to date.] Terms of ASCAP per-program licenses may have to be decided in detail by court. That’s best industry opin- ion, following appointment last week of ex-Federal Judge Simon H. Rifkind as special counsel for all-industry music committee, and its call for contributions from all TV sta- tions. According to best sources, if ASCAP remains adamant, New York Federal district court can set tex-ms, under provisions of recent anti-trust decision against ASCAP. Judge Rifkind represents Emerson Radio in current color TV case. PRIME promoter of TV, nevertheless NBC was quick to counter ANA’s report on TV’s impact on radio listen- | ing (Vol. 7:11) — making public this week its elaborate presentation titled “Fox-ecast for Fall 1951” shown re- n cently at affiliates meetings around country. j Theme of NBC study is that network radio is “great- « cst channel of communication to buying public” — flexible, g mature, proved, not threatened by materials shortages such as face TV aixd publications. For October 1951, NBC foresees : (a) TV in 14,500,000 homes — 3 out of 10 — but radio in 9 out of 10 as against Saturday Evening Post in one out of 10, This Week in 2 out of 10. ' (b) Radio will cost $1.03 per 1000 listeners for net- work night half-hour, as against TV’s $2 per 1000, Life Magazine’s black-and-white page $3.55 per 1000, same in Saturday Evening Post $3.06, in This Week $2.53. Net- work radio will deliver 8,600,000 people for $19,484, news- papers same number for $38,530. That’s NBC’s cux-rent pitch, while other trade spokes- men attacked ANA study on premise that: (1) It doesn’t give radio credit for out-of-home listening, second set listening, radio listening in TV homes. (2) It doesn’t show what TV does to newspapers, magazines, billboards, other media. Meanwhile, new battle royal for AM network business seems to be shaping up — pointed up by ABC’s offer to 5 NBC afternoon radio sponsors to move their 13 soap j operas over to that network. Bait held out is said to be i 45% discount on time charges, $1000 per week contribu- tion toward production costs. Pittsburgh fares none too well in allocation plan, hav- ing one vhf station on air, one channel reserved for edu- cation, only one left for commercial use — plus allotment of 2 uhf (see TV Allocation Report). But Comr. Hennock repox’ts that city’s Mayor David L. Lawrence, who is a power in Pennsylvania Democratic politics, had wired congratulations to her and stated he would urge support of her campaign for educational channels by U. S. Con- ference of Mayors, of which he is president. In contrast, officials of 5 Lehigh Valley colleges and number of high schools met in Easton, Pa. recently to campaign for a commercial vhf channel in area. Group doesn’t intend to become licensee, but wants to present a “TV University” over commercial station. Group was headed by Dr. Lever- ing Tyson, ex-NBC, now president of Muhlenberg College. FCC observers of Skiatron system of coded-card sub- scx’iption-TV had “no comment” on what they saw on junket Max’ch 20 to witness deixxonstration. At WOR-TV transmitter they saw closed-circuit demonstration, and at Skiatron New Yox’k shop they saw off-air reception. At- tending wex'e Comrs. Coy, Hennock, Hyde, Jones, Sterling, Webster, staffers Cottone, Plotkin, Bx-auixx, Allen. Only other pay-as-you look system, Phoixevision, is nearing end of its FCC-authorized tests due March 31, hasn’t yet indi- cated next step. New Orleans will be interconnected by middle of 1952. AT&T this week announced start next July of $6,000,000 coaxial cable installation fx-onx Jackson, Miss. Circuit from Memphis to Jackson and then over to Bix-mingham is scheduled for completion late in 1951 (see map in TV Fact- book No. 12). AT&T also x-eported that Charlotte-Atlanta • microwave x-elay, scheduled for conxpletion late this year, has been postponed to early 1952. National Assn, of Broadcasting Engineers & Techni- cians (NABET), hex'etofox’e independent, has voted to ' join CIO. NABET Chicago headquarters says its 3000 members have contracts with ABC, NBC and about 80 ? ‘ radio and TV stations. MARTIN COOEL’s •UBLISHED WEEKLY BY RADIO NEWS BUREAU, 1519 CONNEaiCUT AVE. N.W., WASHINGTON 6. D.C. TELEPHONE MICHIGAN 2020 • VOL. 7, NO. 13 March 31, 1951 / Blue Chip Business of Telecasting, pages 1-2. \ Critics Dissect End-of -Freeze Plan, page 3. Jn This Mssues Film People Bridle at FCC ‘Advice’, page U- I ‘Hidden Assets’ in the Film Vaults?, jmge 5. \ Color Case Puzzles Supreme Court, jiage 6, Pros and Cons of Presidential Board, page 7. Full Military Impact in ’52 — Wilson, 10. Second Quarter Controls Will Bite, page 10. Blue-Book for TV Trade-Ins Proposed, page 13. Output and Trade at Lower Levels, page 13. I-BLUE CHIP BUSINESS OF TELECASTING: When we tell you that one telecasting station alone grossed $4,000,000 in time sales last year... that a dozen or more skirted or exceeded the $1,000,000 mark... that deficit operations among the existing 107 sta- tions are now the exception rather than the rule — When and if FCC's third and latest freeze-lifting plan (see Vol. 7:12 and text of TV Allocation Report) is actually adopted. .. even with its big slice of non- commercial educational channels, which "educators" may or may not apply for — When it becomes clearer that the freeze really is going to be lif ted. that transmitters and towers etc., despite the defense economy, can really be had... that I the uhf are practicable and receivable — Then you're going to see a veritable "gold rush" for commercial channels, I mainly by existing radio broadcasters but also by new enterprisers. ' Immediate quarry of most, of course, will be the tried-and-proved vhf, v/ith » uhf facing prodigious task (as did FM) of building audience from scratch. Actually, some 400 applications are already on file (see TV Factbook No. 12 1 with weekly Addenda to date) — but most of these will need overhauling in light of ; new channeling, new power and antenna standards, new local situations. That is, pre- : suming the proposed new allocations are finalized — still long way off (Vol. 7:12). * * * * Station grossing $4,000,000 last year was WNBT, NBC's New York key, with base rates of $2000 or $2500 per hour, $400 or $500 per minute, prevailing most of the year. (Rates currently quoted are $3250 & $675. ) WNBT's gross v/as doubtless highest of any station, though it can be assumed other network keys in New York did well into 7 figures, too. Indeed, 4 of NBC's 5 TV outlets operated in black last year — Chicago's WNBQ pushing $2,000,000. Only one in red is its Hollywood KNBH (though other Hollywood stations are in black) and its excessive overhead is nov; being reduced for hoped-for profitable 1951 operation. Figures are cited to point a trend — nam.ely, that this telecasting business is going like the proverbial house afire. For if WNBT did that much business in 1950, it's fair assumption it will do half again more this year — considering its I higher rates and the unabated demand for time. i And it's fair to assume that will be pattern of other existing station oper- ations — in the smaller cities as well as the big. Small wonder the "ins" are all delighted with their pioneering TV ventures ; (which generally didn't turn profitable until latter part of last year and still ; represent huge investments and losses yet to be written off). Small wonder, too, I that you seldom hear of a TV station for sale. 1 Gross and profit figures of individual stations, TV or AM, are seldom made I public — for understandable reasons. But AM stations grossing $1,000,000 or more Copyright 1951 by Radio News Bureau - 2 - are relatively few (albeit meditun is 30 years old). And the highest time rate ever quoted in AM is WCBS ' s current $1350 per hour (Vol. 7;1). Except possibly for network keys, we doubt whether any AM station other than Cincinnati's WLW has ever pushed $4,000,000. WLW has long been reputed to be AM's biggest. In 1947, it grossed $4,442,410 (profit $1,261,975) ; in 1948, it did $4,- 660,809 (profit $1,489,043) — these figures available only because they came out in record of proposed WHAS & WHAS-TV purchase deal in early 1949 (Vol. 5:1). Point is that the blue-chip telecasting business, station for station, is fast outstripping its parent AM in dollar volume. Like its counterpart TV-radio manufacturing business, it's the fastest-growing in America — slowed down only by 31-month-old freeze. 11-BLUE CHIPS $105,800,000 IN 1950: Our prediction that TV networks and stations would do $100,000,000 in gross time sales in 1950 (Vol. 6:52) is fully borne out in FCC's report on telecasting industry's estimated revenues, expenses and profit, released this week. This mimeographed document (Report No. 51-308) should be studied care- fully by all concerned with the business of telecasting. It will be recalled NAB estimated 1950 TV grosses would run $70-80,000,000 and Broadcasting 1951 Yearbook said $83,772,000. FCC auditors (only ones really in position to get full data) show figure of $105,800,000, more than triple $34,300,000 they reported for 1949. Report shows the 4 networks and their 14 O&O stations ac- counted for more than half, or $55,000,000; that 93 stations took in $50,800,000. Whole industry's deficit (before Federal taxes) was $7,900,000, as against $25,300,000 in 1949. Networks with their O&O stations ran deficit of $9,000,000 (resulting from $10,500,000 loss in network operation, $1,500,000 profit on their 14 stations) as against $12,100,000 deficit in 1949. But 54 stations reported profitable operations during 1950, more than half of these showing net before taxes of $100,000 or more, 8 showing earnings in excess of $400,000. Profit showings were best among interconnected stations, 47 out of 79 oper- ating in black; in non-interconnected cities, only 7 out of 27 showed profit. One- station interconnected cities were best, average profits of 29 running $90,000. * * if * FCC's AM-FM financial report isn't ready yet — but TV report includes table showing how TV measures up against radio revenues in some metropolitan areas: In New York, with 34 aural and 7 TV stations, TV accounted for $12,970,000, or 33.5% of total 1950 broadcast revenues; Los Angeles (27 aural, 7 TV), $7,711,000, or 39.7%; Chicago (28 aural, 4 TV), $7,003,000, or 30.8%; Philadelphia (16 aural, 3 TVs), $3,968,000, or 37.2%; Detroit (12 aural, 3 TV), $3,065,000, or 27.1%; Balti- more (10 aural, 3 TV), $2,297,000, or 37.7%; Cleveland (9 aural, 3 TV), $2,215,000, or 32.6%; Washington (17 aural, 4 TV), $2,100,000, or 32.3%; Cincinnati (7 aural, 3 TV), $1,516,000, or 17.9%; San Francisco (20 aural, 3 TV), $1,432,000, or 19.9%; Columbus (4 aural, 3 TV), $990,000, or 38.5%. These are only a few of the revealing figures in FCC's report. With higher rates in effect this year, with time increasingly at premium, with better know-how, it's reasonable to expect telecasting will exceed $200,000,000 in 1951. That's in time sales alone — doesn't include artist fees, production and film costs, etc. Network TV-Radio Billings February 1951 and January-February 1951 Network tv time bilUngs are now running better than half network radio’s, as shown in Publishers Information Bureau report for February. Network TV billings for month were $7,804,550, radio $14,957,460. For Jan.-Feb. combined TV billings were $15,921,656, radio $31,624,172. Month’s TV billings compare with $1,751,862 in February 1950 and $8,082,876 in January 1951 (Vol. 7:10) — first time any month went under preceding month, duo probably to fewer days. Network radio slipped in February to $14,957,460 from $15,383,320 in February 1950 and $16,629,928 in January 1951 (Vol. 7:10). PIB figures for TV exclude non-reporting DuMont: NETWORK TELEVISION Februars" February Jan.-Feb. Jan.-Feb. 1951 1950 1951 1950 NBC $ 3,949,360 $ 978,243 $ 8,136,582 $ 2,020,396 CBS 2.600,339 570,708 5,201,504 1,211,530 ABC . 1,254,851 202,911 2,583,570 436,860 Total $ 7,804,550 $ 1,751,862 $15,921,656 $ 3,668,786 NETWORK RADIO ( B.S $ 6,116,911 $ 5,609,636 $12,972,841 $11,741,703 NBC 4,731,626 5,204,674 9,947,573 10,938,567 ABC 2.682,218 3,167,607 5,734,166 6,705.370 MBS 1,426,705 1,401,403 2,969,592 3,080,291 Total .... - . $14,957,460 $15,383,320 $31,624,172 $32,465,931 - 3 - CRITICS DISSECT END OF-FREEZE PLAN: TV allocation plan won’t be changed easily — you can count on that. General FCC attitude on its proposal (see Vol. 7:12 and TV Allocation Re- port) is that plan is final in basic philosophy, that it will take completely new and earth-shaking argument to effect changes, but that a few bets may have been overlooked in assignments to individual cities. And don't expect anything to shake freeze loose for many, many months. Even "partial" unfreezing — new uhf stations, more power for existing vhf, new vhf sta- tions in Territories — could turn out to be impractical in many places. Real end of freeze — new stations on air — can scarcely come before 1952, and probably well into the year. Educational channel reservations are what stick in most aspirants' craws. They believe weakness of such reservations will become readily apparent to FCC dur- ing city-by-city hearings starting May 25 — doubting whether many educators will make convincing showings. Some are really incensed, speaking of "socialized TV, " "two systems of telecasting," etc. Look for plenty of political repercussions, too, as applicants go to their Congressmen and complain; "Look what they did to our State and cities." Someone might take plan to courts, contending educational reservation is illegal "pre judgment" of applicants. Decision in color case, when handed down by Supreme Court (see p. 6), might have bearing on such litigants' chances. FCC Bar Assn, will ask for oral argument before city-by-city hearing, rather than after (as FCC proposes). Supported by Comr. Jones' dissent, it will contend that fixed allocation, requiring rule-making for changes, is both illegal and admin- istratively unfeasible. But NARTB has gone along with idea of fixed plan. DuMont will certainly attack basic plan when it files comments, since pro- posal re j ects DuMont's painstaking 1949-50 blueprint for 4-network competition, non-intermixing of vhf -uhf (Supplement No. 68). CBS is bound to argue vigorously for more commercial vhf, especially in its key outlet cities — Chicago, Boston, San Francisco, etc. Yet ABC, which has as much to lose as DuMont, network-wise, but owns full limit of 5 stations, feels over-all plan is sound. And NBC , satisfied, is best situated of all — with strongest network ties plus 5 key stations of its own. ^ ^ V What plan means to networks is readily apparent when you tote up commercial vhf channels proposed: 188 one-station cities, 93 two-station, 19 three-station, only 6 four-station, only 2 seven-station, none with 5 br 6 stations. Many insist this means "two-network monopoly. " But argument from FCC runs this way: "DuMont plan was good job, and fine from network point of view, but artificial and wasteful from standpoint of full channel utilization. If our plan turns out to promote monopoly, remember that we have a pending proceeding designed precisely to eliminate monopoly." [See network "equalization" proposal, Vol. 6:40-48 and Supp. No. 71.] "Uhf must come along and alleviate problem," FCC argument also goes. "Even if uhf is long in coming, we must make full use of vhf, which we have done." But everyone wants vhf, regarding uhf as the "leavings". With uhf an economic unknown, some observers visualize eventual mergers of networks. CBS can't be very happy with FCC nowadays, as it balances dubious color vic- tory against allocations which would stymie it from owning stations (except possibly via through-the-nose purchases) in "lif e ' s-blood" markets. Already, CBS is being criticized by some of its AM affiliates who charge they were advised to stay out of TV when channels were to be had for the asking. But vigor of opposition to FCC ' s plan may be tempered somewhat with knowl- edge that the longer the fight the longer the freeze remains. Many technical and procedural questions won't be answered until FCC has For example ; pondered all comments after May 8 deadline. 4 Suppose uhf freeze is lifted before vhf. Should applicant compete for uhf? And, if he wins, can he be foreclosed from requesting vhf when latter are available? It may prove impossible to lift uhf freeze in intermixed vhf -uhf cities, if FCC can't find safe procedural answer. Will some educators press for commercialization, partial or otherwise? Will such stations as old and profitable WWL, New Orleans, owned by Loyola U, be content with non-commercial stations or will they compete for the few remaining commercial channels? Will Iowa State's pioneer WOI-TV, only present educationally-owned sta- tion, choose to relinquish income-bearing and audience-winning network commercial shows, even though it doesn't have to? A technical criticism raised is that FCC seems to be counting on far greater uhf coverage in rough terrain than it's likely to get. But FCC frowns on idea of powers over 200 kw, because of tropospheric interference. ^ ^ ^ ^ Question of equipment availability — vhf and uhf transmitters, uhf receiv- ers — will get hotter as time goes on. Vhf outlook remains reasonably good (Vol. 7:11). Uhf is something else, depending on demand, manufacturing time, laboratory development (Vol. 7:12). Uhf receivers face same problems, with demand and materials the governing factors. Only one manufacturer. Zenith, is currently promoting lohf angle, claiming its sets can be readily adapted. Most set makers have uhf units on the boards, waiting to see what FCC's plan looks like. Some say Commission gives impression it thinks that sets covering uhf, color, or what have you, can be turned off and on like a faucet. NPA won't stand in way of transmitter construction — little question about that, for present at least — since relatively small amount of material can build a lot of transmitters. In fact, NPA officials were over to FCC recently to study problem. Only question they have, apparently, is whether NPA should "expedite" materials for transmitters. Steel for towers is another thing, may prove stumbling block for some appli- cants. But many stations can use present AM or FM towers. V Note : A few errors in allocation plan have turned up, inevitable in such complex compilation, so we've listed our own and FCC corrections to our TV Alloca- tion Report in TV Addenda 12-L herewith. Working with FCC engineers, we plan to issue errata sheet shortly, covering all discrepancies. [Among these is asterisk beside channel for WOI-TV, Ames, la.; it should be removed.] FILM PEOPLE BRIDLE AT FCC 'ADVICE': Motion picture leaders don't like what they regard as gratuitous advice from FCC about releasing their films and stars to TV. But the few aspiring to get into telecasting by way of station ownership were satisfied with long-delayed FCC report (No. 51-317), released March 29, which indicated they won't be excluded from owning TV facilities because of involvement in anti-trust proceedings. It took Commission 2 years to arrive at conclusion it will consider movie applicants on case-to-case basis (Jones and Hennock not participating). And added was blunt warning that movie industry must not expect too much sympathy on appli- cations if it persists in withholding first-run films and stars from video. Moviemen don't like attitude that they must release their wares to top competition, say it's their business who shall use their product, their fealty is first to the exhibitors (who unanimously oppose such move). Moreover, there's the Petrillo ban — entirely beyond their control. Either FCC doesn't know facts of business life, one said, or somebody has it in for movie industry. No secret is expressed antipathy of some within the FCC — abetted by Justice Dept, trust-busters — to movie interests getting into telecast- ing (Vol. 5:5). And a prime mover in getting late films released to Phonevision was FCC Chairman Coy. 5 In deciding to fix no blanket policy, FCC set up criteria to judge each case: Whether anti-trust violations were willful or innocent, recent or long past. No special weight will be given to whether alleged violation was civil or criminal, or whether it pends trial or has been adjudicated. Criteria apply also to other types of applicants and licensees, for under "anti-trust" proceedings FCC has issued only temporary licenses to NBC, DuMont , GE, Westinghouse , Paramount , among others. * * * Telecasters and their audiences would, of course, be delighted to get first- run pictures — but former aren't pressing the point yet. As prudent business men, they recognize that even if they paid SlOOO per showing for such films (an exceed- ingly high rental in today's TV), and if each of the 107 present stations booked a shov;ing, the mere S107,000 revenue would be bagatelle to the producer as against theatre boxoffice. One big theatre often brings in more, and of course neighborhood theatre attendance might also be shattered by TV competition. Independent Theatre Owners Assn. , through president Harry Brandt, called FCC report attempt "to blackjack the industry into committing hara-kiri." Producers and theatres have vested financial interests in their film properties and theatres pay prices making them economically feasible, he said. "Why should they then turn over these films to TV for almost nothing [when] they could realize good returns from theatrical distribution?" he declared. "The FCC has made demands we wouldn't have the gall to make, " said a TV spokesman. Not yet, anyhow — not until there are many hundreds more TV outlets and they're strong enough to compete with exhibitors. And that, thanks to FCC's pro- longed freeze, is still a long way off despite present "unfreezing" efforts. * * * * Note : Practical effect of FCC probe was to lead 20th Century-Fox to drop its 5-city applications in disgust, Warners to drop Chicago application. Today, Para- motmt Pictures ovms KTLA, Los Angeles ; United Paramount WBKB, Chicago. Only other theatre interests owning TV stations are Wometco (WTVJ, Miami) and Kallett (WKTV, Utica) — but there are quite a few theatre interests involved in the nearly 400 pending applications (see TV Factbook No. 12 and Addenda to date). inDDEN ASSETS' IN THE FILM VAULTS? Financial v/orth of film companies could be sub- stantially enhanced by TV market, present and potential, for feature films now vault -bound because of (a) Petrillo, and (b) exhibitors. No advocate for release of such films to TV — not yet, anyhow — Paramount v.p. Paul Raibourn made this point in recent talk before New York Assn, of Customers Brokers. He's a financial man, has long been leader in effort to awaken movies to impact of TV, so his words bear close scrutiny. He cited case of one company (rather obviously. Republic ) whose asking price for TV rentals of pictures (carried on its books at $1 each) is exactly equivalent to the $4 per share at which its stock was currently quoted. Did Mr. Raibourn' s rather circumlocutory remarks, which were published in March 15 Commercial & Financial Chronicle, mean he foresees "gold mine" when his companies and others release their films to TV? Either to the present 107 stations, or when there are many more on the air? We asked him that — but he doesn't say. He merely points out that produc- ers over last 20 years have invested about $5 billion in films. "There will be a lot of water over the dam before this kind of value is played with lightly, " was his cryptic reply to inquiries seeking elucidation. On same subject. Variety recently estimated "TV worth" of films in vaults of 8 major producers at ^250,000,000. Variety toted 4057 features, 6000 shorts, several score serials (called "best" for TV) in vaults of MGM, 20th Century, Para- mount, Warner, RKO, Columbia, Universal, Republic. Aside from his widely quoted hint of "hidden assets" in storage films, Rai- bourn spoke about TV's impact on film business. He doesn't think it's to blame for more than 10% of current decline in boxoffice, won't account for more than 20-30% - 6 - when it expands to a national service. Movie industry's income is down now, he said, because of (a) drop of 50-60% in returns from foreign shows, and (b) drop of 30% in domestic attendance. COLOR CASE PUZZLES SUPREME COURT: Supreme Court granted more delay to compatible color proponents this week — by withholding start of commercial CBS color until final decision — while CBS advocates labored desperately to stave off still more delay. During March 26-27 oral argiament, it was obvious that greatest fear of U.S. Solicitor General Philip Perlman and CBS's Samuel Rosenman was that Court might send case back to lower court or to FCC for more thorough review or reconsideration. If anyone predicts Court's decision with accuracy, it's sheer luck, since justices' questions had both sides alternating between exhilaration and dejection. Whatever the outcome, students will certainly find case an extraordinary one — in Court's obvious bewilderment about what it's required to do or can do; in lower court's "decision without a decision," (Vol. 6:46); in speed with which it reached highest Court ; in time allowed for argument (5 hours) ; in maze of technical jargon; in spate of cross-allegations regarding motives. Most perplexing to justices was element of haste — being told that the "when" of their decision is as important as the "what". And, permeating whole fracas, was the unspoken fact of Korean war's impact on industry — the simple fact that "color now" is academic regardless how the bitter litigation turns out. Decision may come any Monday from now on. Court term ends in June, and new term starts Oct. 8. Traditionally, Court gets out decision during term in which case is heard, but we could elicit no prediction from CBS's Rosenman, Emerson's Rif kind or RCA's Cahill. * * * * Some strong minority opinions are expected, since each justice, like the fabled blind men, seemed to perceive a different part of the color "elephant". Justice Frankfurter seemed to smell "monopoly like the BBC" in FCC's prac- tice of setting up single standard, feared practice tends to negate "the history of science in achieving the impossible." In other comments, he seemed to sustain Commission's powers of discretion. Justice Black was also concerned whether FCC had right to fix single stand- ard and whether Commission wasn't foreclosing scientific advancement. Justice Jackson, silent during most of argument, finally asked Rosenman; "What is this court supposed to decide? We're not technically qualified, of course. If we're not supposed to decide which system is best, what's left for us to decide?" Case should never have reached courts, replied Rosenman. The "happy solution" — a universal receiver which would get both CBS and RCA color — was diligently probed by several justices inquiring into possibility of multiple standards. Rosenman said such receiver isn't possible, while Cahill reported that RCA had introduced diagram of such set during hearing. Justices Vinson and Clark seemed to lean towards CBS at times. Former asked Cahill: "Doesn't FCC have the responsibility of seeing good color goes on the air?" Latter appeared impressed with CBS's argument of convertibility of existing sets, unexcited about compatibility argument, told Cahill: "I want color. That's the objective, isn't it? How much will your color sets cost?" Cahill had some trouble, since RCA's major answers to convertibility and price have come since color decision. CBS was also bursting with desire to tell about post-hearing developments — such as 17-in. drum (Vol. 6:52). Lower court's decision obviously irritated several justices, notably Jack- son. He considered lower court quite remiss in passing the buck and frankly admit- ting it. Other justices pointed to recent Universal Camera and Pittsburgh Steamship cases, in which they had held lower courts must really dig into facts. Arguments of both sides v;ere much same as in Chicago court (Vol. 6:46). RCA stressed compatibility and quality of its system, contrasted it with incompatibility 7 and performance limitations of CBS's, contended FCC arbitrarily closed its eyes to RCA progress — in face of almost unanimous expert opinion. Emerson said it had reputation to uphold, feared reactions of 700,000 Emer- son set-owners when their sets blacked out at CBS-type colorcasts, argued FCC was attempting to regulate set manufacture through "bracket standards" device, and that Comr. Jones had an "obsession for color now" regardless of consequences. CBS reiterated that its system is good, ready, simple, cheap, that FCC con- ducted fair and exhaustive study before arriving at decision. It contended that FCC was .justified in ignoring RCA's post-hearing claims, because latter had pre- j sented FCC with nothing but "a series of broken promises." Furthermore, Judge Ros- I enman said. Commission has "left the door open" to RCA or anyone else who can come j up with a decent system. "If our system isn't adopted," he warned, "you will have no color." At v/hich Justice Frankfurter snapped: "And so what?" IBEW's main pitch, through attorney Alfred Kamin, was that FCC was way be- hind the times in standardizing on a mechanical disc which permitted screens no larger than 12)^-in. * * Only new voice was that of Philip Perlman, the Solicitor General, a homely, gangling, unimpressive-looking man — but a powerful advocate with a reputation for never having lost a govt, case before Supreme Court. Beautifully briefed by FCC lawyers, he conducted an arm-swinging denuncia- tion of RCA and rest of industry for being "opposed to color." Lower court did study case carefully, he insisted, and it made the only decision it could, based on the facts. Pointing at Cahill and Rifkind, he said: "RCA has a commanding position in the industry. Everyone pays a tribute to RCA, through its patent licenses. They don't want color. They're in the business of selling sets. Hold up the decision 2 or 3 years and they'll sell 30,000,000 or 50,000,000 black-and-white sets. Then, they'll come in with the dot-sequential system and make every set obsolete. "Let the FCC action stand," he shouted, "or destroy its usefulness forever." You figure out what the Court's going to do. Then figure out what FCC will do when compatible system comes before it again — as it surely will. I t PROS AND CONS OF PRESIDENTIAL ROARD: A permanent 3-man presidential advisory group, I with great pov/ers over govt, communications (including military) but apparently none 3 over FCC, is prime recommendation of President's Communications Policy Board (Vol. I 7:2, 6, 7) in report released by White House this week. Board of 5 eminent scientists and administrators sweated through 59 sessions i over year's period, came up with 240 pages of meat and gristle for Govt, and indus- I try to chew on. Report covers whole gamut of wire and wireless communications — 3 among other things tends to throw cold water on TV's chances for more vhf channels. Report is likely to prove hot subject for some time, particularly since ! Sen. Johnson (D-Colo.) has great misgivings about permanent board idea. He's seri- )■ ously exploring powerful medicine in form of legislation to give FCC powers which I would render academic many proposed functions of new board. CPB recommended: i Formation of a "Telecommunications Advisory Board" (preferably 3 men, pos- : sibly one) in President's office, to act as sort of "FCC" for all govt, agencies ; maintaining communications facilities. Report said such board should; j (1) Take over President's job of allocations to govt, frequency users, con- ' trol of all communications during emergency. (2) "Stimulate and correlate the formulation of plans and policies to insure maximum contribution of telecommunications to the national interest, and maximum > effectiveness of U.S. participation in international negotiations." (3) Stimulate research on communications problems. (4) Require all govt, "users" to justify frequency demands, cooperating with I FCC in allocating betv/een Govt, and non-Govt. I New board would have no jurisdiction over FCC. and report recommends l 8 strengthening of FCC in "funds and in organizational structure" — same for all other agencies with "large telecommunications interests." * * * * Senator Johnson reacts this way : "I don't like to see the Govt, have priority over civilian users. It has a lot of frequencies tied up — like a dog in the manger. The military must have what it needs for security purposes, but no more. "I've been doing some thinking about legislation which would give FCC au- thority over govt, users, just as it has over civilian users. Govt, users would have to go through exactly the same procedures of publicly justifying their use of frequencies as everyone else does. When it comes to frequencies involving security, these can be handled in executive session. "I don't find too much fault with other parts of the report." Senate majority leader Ernest McFarland (D-Ariz. ) , whose chief concern has been wire services, hadn't yet read report, thus had no comment. On Commission side, members seem iinanimous in agreement that all govt, users should have to justify their demands to somebody — rather than merely jockeying, through non-policy-making specialists, within Interdepartment Radio Advisory Commit- tee (comprising interested govt, agencies). Criticisms voiced by some commissioners: (1) Report calls FCC a "user", therefore presumably not totally impartial, apparently because Commission defends its non-govt, allocations. Commissioners in- sist that Communications Act makes it clear their sole criterion is "public in- terest, convenience and necessity." (2) Emergency powers of President would fall into hands of new board. In prolonged cold war, board could conceivably get arbitrary and kick around such non- govt. users as TV, AM & FM stations. ♦ ♦ * * Question of more vhf for TV is covered in some detail, with no flat recom- mendations one way or other. But report certainly isn't hot about idea, making it clear that giving all vhf to TV would mean terrific disruption of many other serv- ices, notably safety of life and military, and leaving impression it thought number of channels to be gained would still be inadequate. Report is v/onderful compilation of data on little-known governmental radio makeup and activities; e.g.. Govt, has 28.2% of useful spectrum between 30 me and 30,000 me, non-Govt. 45.7%, with 18.5% shared and 7.6% amateur. Wire communications occupy much, if not most, of report. And nub of recom- mendations is that: "The Govt, should adopt the policy of maintaining the strength of the private competitive international communications systems." Thus, the much- advocated merger is frowned upon. Full report is valuable addition to your files, may be obtained from Govt. Printing Office for $1. Title : "Telecommunications, A Program For Progress." Makeup of Communications Policy Board, which expired with completion of re- port: Dr. Irvin Stewart, president of West Virginia U and onetime member of FCC, chairman; Dr. Lee A. DuBridge, president of California Institute of Technology; Dr. William L. Everitt, dean of Illinois U electrical engineering dept. ; Dr. James R. Killian Jr. , president of MIT; David H. O'Brien, retired Graybar v.p. Twin bills affecting FCC, among other agencies, were introduced last week by Arkansas Sen. McClellan and 12 other Senators (S. 1139) and by Michigan Rep. Hoffman (H. R. 3307), proposed that: (1) “Any Commissioner may be removed by the President for inefficiency, neglect of duty, or malfeasance in office, but for no other cause.” (2) “Upon the expiration of his term of office, a commis- sioner shall continue to serve until his successor is ap- pointed and shall have qualified.” (3) Chairman shall have exclusive and final authority in matters of internal man- agement, relations with Congress, execution of policies. No more vhf experimentation, says FCC, for anyone except “transmitting equipment manufacturers, research laboratories and others engaged in developmental work requii ing the use of radiation.” That’s what it said this week in denying applications of Easton Publishing Co. and Lehigh Valley TV Co. for directional antenna work on Channel 8 (Vol. 7:7), in Easton-Allentown area, and Northwest TV Broadcasting Co., Portland, Ore., for propa- gation tests on Channels 3, 6 & 10 (Vol. 6:45). In latter case. Commission said that it didn’t want people buying sets thinking service was to be permanently available. Station Accounts: “Natural” for spring is WOR-TV’s Rose Garden, 3 half hours sponsored by Jackson & Per- kins, Newark (horticulture), describing planting and care of rose bushes . . . Local inventors and their creations pro- vide material for The Big Idea sponsored on WCAU-TV, Tue. 7-7:30, by Philadelphia Savings Fund Society, thru Gray & Rogers; half hour permits 4 inventors to do their stuff . . . Florists Assn, of Western Pennsylvania to spon- sor Say It With Flotvers on WDTV, Pittsburgh, Thu. 2:15-2:30, thru Whitman & Shoop . . . Handkerchief Pro- motions Inc., formed by 49 manufacturers of Handker- chief Industry Assn., planning campaign, including TV . . . Throwsters Group of National Federation of Textiles, to promote women’s hosiery made from twisted nylon yarn, buys participations in women’s shows on WNBT, WJZ-TV, WENR-TV, thru H. B. LeQuatte Inc., N. Y. . . . Delaware State Development Dept, planning test campaign includ- ing TV, thru Goff Associates, Wilmington . . . Among other advertisers currently reported using or preparing to use TV: Philadelphia & Reading Coal & Iron Co. (anthracite [ coal & heaters), thru McKee & Albright, Philadelphia; Gold Seal Co. (Glass Wax), thru Campbell-Mithun Inc., Minneapolis; Stokely-Van Camp Inc. (Honor Brand frozen peas), thru Kelso Norman Adv., San Francisco; Sportsmen’s Show (Los Angeles, April 12-22), thru Ted H. Factor Agency, Los Angeles; Nicolay-Dancey Inc. (New Era potato chips), thru Ewell & Thurber Associates, Chi- cago; Verd-A-Ray Corp. (Tee Vee light bulb), thru Jay H. Maish Co., Marion, 0.; Comfi-Coil Inc. (vinyl plastic has- socks), thru Hammer Co., Hartford; Sun Oil Co., thru Hewitt, Ogilvie, Benson & Mather, N. Y.; Strohmeyer & Arpe Co. (Re Umberto olive oil), thru Charles W. Hoyt I Co., N. Y. (WJZ-TV) ; Kenwill Corp. (Magikoter paint I applier), thru Duane Jones Co., N. Y. (WABD); J. A. I Folger & Co. (coffee), thru Grant Adv., Chicago (WHAS- !i TV); Daggett & Ramsdell Inc. (children’s novelty soap package), thru Erwin Wasey & Co., N. Y.; Ideal Film & Supply Co. Inc. (Falcon cameras), thru Richard & Gunther, N. Y.; Columbia River Packers Assn. Inc. (Bumble Bee ) seafoods), thru Botsford, Constantine & Gardner, Port- land; Artistic Foundations Inc. (Profile bras & Profile-Hi girdles), thru Thomas & Delehanty, N. Y. Network Accounts: Wildroot Co. April 4 moves Charlie Wild, Private Deteetive on CBS-TV from alt. Fri. 9-9:30 to Wed. 9-9:30, thru BBDO, N. Y. . . . Allen B. DuMont I Laboratories (TV sets) April 12 starts Royal Playhouse, second-run films of Fireside Theatre on DuMont, Thu. 9:30-10, thru Campbell-Ewald Co., N. Y. . . . Longines- ' Wittnauer Watch Co. considering sponsorship of musical I series on CBS-TV, alt. Thu. 10:30-11, thru Victor A. Ben- nett Co., N. Y.; would alternate with Carter Products’ Crime Photographer starting April 19, thru Sullivan, || Stauffer, Colwell & Bayles, N. Y. TV advertisers can save up to 19% by placing their I business on a spot basis, rather than buying network, ac- i cording to Katz Agency’s new 8-page brochure titled Straight Thinking on TV Costs. After alluding to cur- I rent complaints about high costs of network programs I (Vol. 7:2-4,7 -8), big rep firm makes following comparison I of network vs. spot costs on half-hour, night-time pro- I gram: On 35 interconnected NBC stations, $14,760; same • on spot basis, $12,260. On 20 interconnected CBS stations, I $8395.50; same on spot basis, $1639.50. More rate increases reported: WBZ-TV, Boston, Feb. I 1 raised base hourly rate from $700 to $1000, one-minute » announcements from $125 to $200. On April 1, WSM-T^^ 1 Nashville, goes from .$200 to $300 & $30 to $50; KRLD- ‘ TV, Dallas, from $300 to $400 & $45 to $60. On May 1, I WiMAR-TV, Baltimore, ups from $550 to $700, $100 to $125, Personal Notes: Comdr. Mortimer Loewi, DuMont di- rector, left this week on business trip to Europe . . . Mario Lewis, handling Ed Sullivan, Frank Sinatra, Steve Allen shows, and Donald Davis, producer, appointed CBS-TV executive producers . . . Roy W. McLaughlin appointed mgr. of national TV spot sales, WENR-TV, Chicago, in sepai’ation of radio and TV now being effected: Edward Lynch handles WENR national radio sales . . . Albert V. (Bud) Cole succeeds Robert V. Brown as program mgr., NBC’s KNBH, Hollywood . . . Wade H. Alley, ex-FBI, named program & public relations director, WHIG & WHIO-TV, Dayton, succeeding Lester Spencer, resigned to become mgr., WBKV, Richmond, Ind. . . . Wm. Elwell quits WCBS, New York, to join executive staff of WDSU & WDSU-TV, New Orleans, Lyman Clardy being named WCBS operations mgr., Rex Coston production director . . . Paul R. Martin, ex-Compton and NBC, joins Philip I. Ross Co. as TV-radio director ... Ed Leftwich, ex-Young & Rubicam, now TV director of Masterson, Reddy & Nelson, program producers . . . F. J. (Joe) Kelley, onetime RCA fieldman, now mgr. of WTSP, St. Petersburg, Fla., named executive v.p. and a director of St. Petersburg Times . . . R. Morris Pierce, president of WDOK, Cleveland, wartime engineer for OWI, has taken leave of absence to work on Voice of America consti’uction program, leaving Walberg L. Brown in charge. George M. Burbach Jr., 41, son of the director of St. Louis Post-Dispatch’s KSD-TV, died of heart attack in Hartford March 24. Formerly with NBC, he had been with various New Yoi’k advertising agencies, and recently was instructor in TV at Fordham U. He is survived by his wife and parents. TV hits moviegoing and radio listening hardest, news- paper reading least. That’s conclusion of BBDO survey last November of leisure time activities of 5657 urban homes, released March 29. During average day, BBDO re- ported, 18% of persons in non-TV homes attend movies; only 12% in TV homes — a 33%% decline. Radio listening drops from 87% in non-TV homes to 67% in TV homes — a 23% decline. Survey showed average TV viewer spends 3 hours 24 minutes in front of TV set. Sunday newspaper readership is virtually same in non-TV and TV homes, 94% & 93 %, respectively. Average reader of morning weekday newspaper in non-TV home spends 40 minutes, in TV home 37 minutes. Weekly magazine readership declined from 69% in non-TV homes to 60% in TV homes. Screen Actors Guild was upheld this week by NLRB as the appropriate bargaining unit for all film per- formers— whether film is used on TV or in theatre. In decision, NLRB rejected TV Authority (union of live per- formers) argument that it should have jurisdiction over actoi’s performing in film productions made especially for TV, called for elections within 30 days in major producer studios as well as independent units (Apex Film Corp., Bing Crosby Enterprises, Cisco Kid Pictures, Jerry Fair- banks, Flying A Pictures & Hal Roach Studios). Still pending is TVA request that it be authorized to represent all actors hired by TV networks for film programs. TV stations may have to shut down during enemy air attack, unless FCC and military work out some plan per- mitting vhf stations to remain on the air. So far, that’s somewhat dubious, according to best information ■we’ve been able to gather. Plans for keeping standard broadcast station on air during air alerts were revealed to 700-odd broadcasters and their engineers at closed FCC meeting in Washington March 26. Only TV application this week was from WABB, Mo- bile, Ala. (Mobile Register & Press) for Channel 8. i Mobilization Report March 31, 1951 1519 CONNECTICUT AVE. N.W. V WASHINGTON 6, D. C. • TELEPHONE MICHIGAN 2020 FULL MILITARY IMPACT IN '52-WILSON: industry and the public won't feel defense pro- gram's full impact until early 1952, Defense Mobilizer Charles Wilson estimates in first quarterly report on U.S. rearmament. ODM makes most optimistic estimate yet of 1951 TV-radio production — approximately 7,000,000 TVs, mere half-million under last year's output, 14,500,000 radios, about same as 1950. Most military items — including communications and electronics equipment — "require months between placing an order and date of delivery, and some require 2 to 3 years," report notes — meaning that many orders already placed won't be felt in terms of production for some time. Military demand for electronics equipment "has scarcely yet been felt." Report says full impact will come "when the heavy end-products of war — tanks, planes, automatically controlled weapons — reach mass-production stage. Current near-capacity production level of the industry is approximately $4.5 billion." Although Govt, has so far given electronics scant aid in expansion, "we hope to be able to expand capacity further this year." Approximately $25 billion has been obligated for military "hard goods" since June, and Defense Dept, is now letting contracts at rate of approximately $1 billion a week — which, according to rough rule of thumb, should mean about $100,000,000 a week for electronics-communications. SECOND QUARTER CONTROLS WILL RITE: Shortages and materials controls will really begin to bite into TV-radio production this quarter — unless Industry voluntarily pulls in its horns because of trade slowdown. There won't be much military production to fill the gap, either. Defense orders will continue to come in — but there'll be plenty of engineering, develop- ment, pilot runs, field testing, before military gives final go-ahead on full-scale production. With a few exceptions, defense orders for actual production of elec- tronic equipment will continue at slow pace in second quarter. Add to this picture the possibility of slowdown in mobilization program. There's much talk in Washington of letup in rearmament rate — of pushing target date for full buildup from 1953 to 1954 or 1955. This would relieve, or partially head off, some shortages of strategic materials — but it would slow down rate of military procurement even further. Interlaced in this problem is question of controlled materials plan — which would allocate steel, copper and aluminum according to end-use essentiality (Vol. 7:3,12). Though mobilization boss Wilson said March 26 that there's still some doubt whether Govt, will adopt CMP, most production officials, including NPA chief Fleischmann, say some form of CMP will go into effect July 1. However, it's expected that these controls will be far less extensive than originally planned. Full effect of any CMP-type plan ordered into effect July 1 wouldn't be felt by industry until fourth quarter. Likewise, if there's any slackening in mobiliza- tion pace, it certainly v/on't register until last half of year. As for second quarter, the die is cast — the bite is on. As for prognostication, govt, electronic production experts shy at making any estimate. They insist things will be "tougher" but when you ask about possible output, they point to first quarter's 2,000,000-plus TVs — and say they never dreamt industry could turn out that many, so v/hy guess about next quarter? =}: >1= * Many manufacturers anticipate 20-25% cutback in TV-radio production during second quarter. While they attribute this to shortages and materials controls, it's apparent they're really thinking of market conditions (see p. 13) — though none will say so. A 25% drop in TV production would result in output about equal to last 10 - 11 year's second quarter (about 1,500,000). One manufacturer who specializes in higher- priced sets, incidentally, says his production will be down 40-50% "on basis of steel order alone." 4: # 4: Here's the real dope on materials outlook for second quarter, based on best information available; STEEL — Most TV-radio manufacturers see steel as the limiting factor in second quarter production — this because steel order M-47 is first one to affect them directly (Vol. 7:10-11). It limits each durable goods maker to 80% of amoiint of steel (by weight) that he used during average quarter of first-half 1950. Some manufacturers are planning to cut weight of chassis by as much as 38%, others say they can eliminate 60% of steel in transformer cores by using line-con- nected circuits. The sooner these savings are put into effect, the less steel limitation will cut into their production. If steel does prove to be limiting factor, TV-radio production may run zig-zag course during second quarter, with output dropping last week in April, last week in May and entire month of June. This is because M-47 doesn't let manufac- turers use more than 40% of their quarterly steel ration in any month. If they produce the full 40% in April and in May, June's maximum permitted output will be half that for April or May. But before quarter is over, it's possible that other materials may pose even bigger problems to set makers than steel. * * * * COBALT — Under all-out NPA allocation since Feb. 1, progressively less of this scarce metal will be set aside for TV-radio this quarter. Computation of sup- ply for April, just completed by NPA, shows sharp cutback in amount to be doled out for TV-radio uses. During March, TV-radio industry got 42,000 lbs. , or 33% of its requirement. In April, it's scheduled to get 29,000 lbs., or 25% of requirements. But set makers say speakers have been coming in O.K. — at least, they haven't been major stoppage point so far. Average speaker now uses two-thirds less alnico (24% cobalt, 14% nickel, 8% aluminum, 3% copper, 51% iron) than last year. One magnet maker says his biggest worry at the moment isn't cobalt, but nickel. Alnico magnets are widely used in picture tube focus units. While most manufacturers plan to redesign circuits to accommodate electrostatically-focused picture tubes (which require no magnets), none is known to have taken the plunge yet — and no tube maker has been reported mass-producing ' the new type tubes. But it's safe bet that electrostatic tube will be industry standard by year's end. COPPER — A long-time sore spot, shortage of copper wire and wire-wound com- ponents is now near top of set manufacturers' list of production worries. Fabrica- tors and wire mills have been feeling ever-tightening pinch since NPA Order M-12 took effect Jan. 1. Beginning April 1. fabricators will be permitted to use copper at 75% of their first-half 1950 rate, as compared with 80% in March, 85% in January and February. Wire mills will still be limited to 80%. NICKEL — International Nickel Co. estimates that 80% of nation's supply will be reserved for defense priority orders, despite fact that Order M-14 "permits" fabricators to use it at 65% of first-half 1950 rate. Nevertheless, on basis of tube makers' estimates, it's possible coming crisis in receiving tubes (Vol. 7:11) may be forestalled until third quarter. Entire nickel problem has been dumped in lap of newly planned high-level Electronics Production Board (Vol. 7:11-12), and it's most pressing item on board's agenda for next weekly meeting April 2. Receiving tube manufacturers met March 27 with NPA (for list of those at- tending, see p. 12), and made these points: (1) Present production of military tubes is extremely low. (2) To keep tube plants going, 250,000 lbs. are needed in April, 225,000 in May, 200,000 in June for civilian production. Most immediate shortage is in special type of nickel from which tube pins 12 are made. Tube makers urgently requested NPA's aid. If this emergency help in pin metal situation comes soon, production may hold up this quarter. Some new set production will eventually have to be sacrificed to meet demeuid for replacement tubes, NPA told tube makers — emphasizing that tube industry can hope for only enough nickel to survive until big military production begins. TUNGSTEN — Tube industry will begin to feel shortage in June. April's allo- cation, first vmder NPA Order M-50 (Vol. 7:4,8), will be made next week. First 2 months' allocations aren't expected to work hardship on tube industry. Tungsten is used in all tube filaments, in grids of subminiature types and leads of some acorn and other small tubes. NPA officials warn that military will take huge chunk of nation's supply (all imported) in third quarter, and that Govt. will listen sympathetically to tube makers' tungsten problems only if they can prove they're practicing maximum conservation. * ♦ ♦ * ALUMINUM — On paper, there's been no cut in permitted use by fabricators — 65% of their rate of consumption in first-half 1950 (M-7). But NPA Order M-5, as amended March 26, requires aliiminum producers and fabricators to reserve average of 60% of output for defense orders. This is 15% more than they were required to set aside in February and March. Most set makers are eliminating aluminum parts, such as brackets, cup over end of picture tube, etc. But capacitor manufacturers can't get along without alu- minum. They've already felt the squeeze, and it's getting tighter. CADMIUM — This metal, used in TV-radio for plating chassis, isn't reported particularly short now. There's some doubt whether Order M-19 bans its use on TV chassis (Vol. 7:11), but clarification is expected soon. Manufacturers should be lining up substitutes now, since it may be only matter of time before there's an airtight ban on its use. Plastics, rubber, chemicals, used in components, are already short on spotty basis, and like almost everything else, will become scarcer. During second quarter, NPA says it will continue to lend sympathetic ear to emergency shortage problems — and especially those of smaller firms where inability to obtain a part may spell disaster. Nobilizalion Notes: Indicating military’s increasing in- terest in use of TV, Signal Corps this week ordered camera chain and other industrial TV equipment from RCA. Among other Signal Corps contracts awarded this week was one to RCA for 5,928,983 electronic tubes of 67 diifer- ent types. Dollar values of contracts are no longer an- nounced, because of security regulations. ^ ^ Mobilization Personals: Col. Gilbert Hayden, ex-chief of Air Materiel Command Electronics Subdivision, Wright- Patterson Air Force Base, named Air Materiel Command deputy chief of engineering and nominated by President Truman for promotion to brigadier general . . . Col. Wil- liam M. Talbot, retired Air Force signal officer, appointed director of Civil Defense Administration’s newly-created Warning & Communications Div. , . . Rex L. Nicholson, California implement and tractor company executive, to become special assistant to Civil Defense Administrator Millard Caldwell April 1 . . . Luther W. Hill, president of Carolina Telephone & Telegraph Co., appointed director of NPA Communications Equipment Div., succeeding Brig. Gen. Calvert H. Arnold, who will continue with division temporarily as consultant. Molybdenum, used in power tubes and to small extent in some receiving tubes, will be placed under complete govt, allocation starting May 1 (NPA Order M-33, as amended). Nickel and tungsten shortages, however, are expected to have far greater effect on tube production. Some idea of mineral expansion program by DPA may be gained from these figures, submitted to House Appro- priations subcommittee early in March by Administrator Wm. H. Harrison: For rest of fiscal year, $4,460,000 has been earmarked for purchases of chromite, beryl, colum- bium-tantalum, manganese and mica. In addition Defense Minerals Administration will commit $336,000,000 during next 3 months to buy, at above-market prices, quantities of chromite, cobalt, fluorspar, manganese and nickel. DMA also plans to purchase, at or below market price, alumi- num, copper, molybdenum, tungsten. DMA also revealed it was thinking of $65,000,000 loan to Canadian Falcon Bridge Nickel Co. to build nickel refinery in Canada or U. S. (Falcon now refines all its nickel in Norv'ay); $70- 85,000,000 loan to Copper Range Co. to expand copper mining at White Pine, Mich. Members of Receiving Tube Industry Advisory Com- mittee, who discussed nickel shortage with NPA officials March 27 (see p. 11): J. M. Lang, GE; J. Q. Adams, Hytron; W. J. Peltz, Lansdale (Philco); K. C. Meinken, National Union; Carl Hollatz, RCA; N. B. Krim, Raytheon; R. E. Carlson, Tung-Sol; R. F. Marlin, Sylvania. NPA extended to second quarter the provision in cop- per order permitting manufacturers whose plants were shut doAvn for more than 15 days during first-half 1950 to omit month or months during which shutdown occurred from base period computation (Direction 2 to M-12, see Vol. 7:5). BLUE-BOOK FOB TV TRADE-INS PROPOSED: If TV industry can show Federal Reserve Board how trade-in values can be "blue-booked," as in the automotive industry, there's 50-50 chance Regulation V/ might be revised to permit retailers to apply such trade- in values as dovm payments on new sets. Industry committee came away with that sentiment from 90-minute conference March 23 with about 10 members of Federal Reserve staff in Washington. Such a move would doubtless help TV sales immeasurably, for Regulation W is regarded as the chief contributor to TV's current inability to move big inventory. "There are plenty of people with good credit who v/ant to buy new sets, but don't have the ready money," in the words of sales chief of one major manufacturer. Regulation W now prohibits such transactions, requires 25% down payment on list price — with trade-in values applicable only to balance. Committee is working on details, may have plan in few weeks. Big problem is that TV-radio trade never had "blue book" like auto industry's. Trade-in value must bear "reasonable relationship" to the set's resale value. What makes for complexity is fact prices have changed so greatly over last few years; also, there are 100 manufacturers, and some have put out as many as 40 models in one year. Since Regulation W is designed to hold down volume of credit sales, FRB staff ventured these observations; (1) If regulation is revised to permit trade-ins on down payments, might FRB ' not find it necessary to make terms even more stringent — perhaps raising them from I 25% down and 15 months to 33 1/3% down and 12 months (as in auto purchases)? j (2) What about other consumer durables with resale market — like refrigera- tors, washing machines, stoves, etc. — shouldn't they have "blue books", too? Committee which met with Reserve Board staff comprised: John Otter, Philco ; ; Walter Stickel, DuMont; C. F. Baxter, RCA; Mort Farr, NARDA president; Herman Stein, Davega ; James Secrest, RTMA. OUTPUT AND TRADE AT LOWER LEVELS: It's possible TV production slide has begun — 1 for first quarter's 12th week ending March 23 resulted in output of only 161,602 I receivers (5801 of them private brand) as against preceding week's 181,008 (Vol. ’ 7:12). Factory inventories at week's end rose to 235,142 from preceding 196,326. With one week yet to be reported by RTMA, industry's aggregate output for ' first 1951 quarter thus far is 2,038,245 units — so it looks like quarter will end ' with about 2,200,000. This compares with 1,605,000 for same 1950 quarter and about 2,500,000 for record fourth 1951 quarter. Radio slipped a bit, too, down to 330,253 from preceding week's 364,916, making 12-week total 3,978,099. Factory inventories at week's end were 136,037 compared to 142,247 the preceding week. March 23 week's output comprised 190,260 home radios, 112,597 auto, 27,396 portable. ^ Jjc Business at retail level, meanwhile, continued too slow to unload bloated inventories — but flurry of distress selling and price-cutting seemed to have sub- sided somewhat and by and large the price line was being held. No major manufacturer followed Admiral's lead (Vol. 7:11) in cutting lists at low end of his line — generally the table models selling around $200 — but just about all (including Admiral) admit they're now concentrating on lower-priced models in their current production. Motorola, in fact, reveals it's making no combinations at all starting this week and continuing indefinitely. Its second quarter TV cutback is 20%. All through the industry curtailed operations, mainly reduced work weeks, are evident. Chicago 14 AP report March 30 noted "large scale layoffs. " UP reported about 1250 laid off by Admiral , 400 by Hallicraf ters , "some" by Zenith, some by parts makers — labor people estimating total of 10,000 out and companies calling them "temporary furloughs." Huge advertising campaigns, mostly factory financed, are under way to move pileup of merchandise, variously estimated at 1,000,000 or more sets. Only a few big companies claim their distributors and dealers aren't overloaded, these few say- ing they "planned" for the Easter and second quarter hiatus but admitting fear of being dragged down in a potential demoralization of markets. Business was "normal" up to mid-March, they say, but distributors-dealers were led to expect "abnormal" purchasing to continue. Hence they loaded up for big demand and continued easy selling that didn't materialize, so that now their credit positions are precarious and they refuse to accept more shipments. •ir ^ ^ Everyone seems to have own theory how to meet situation, most often heard plaint being against Regulation W. Few believe dragging market will prevail long, and we're still told by factories that steel order (see p. 10) and other restric- tions will inevitably mean less output and inevitable shortages later this year. One refrain that runs through much of the master-minding is epitomized in this remark by the sales chief of a major producer; "We're competing for the con- sumer dollar now, not just with each other." In other words, TV trade's job is to persuade buyers to choose their goods ahead of automobiles and other durables. Topics & Trends oi TV Trade: TV-radio achieved third place in home furnishings industry’s record 1950 retail sales, being credited with $3 billion by Gen. Law- rence H. Whiting, president of American Furniture Mart, Chicago. Household appliances led with $3.6 billion, re- tail furniture was second with $3.5 billion, reversing their 1949 positions. Total for every branch of home furnish- ings industry was estimated at record $16,511,000,000, compared with $12,852,000,000 in 1949 and $13,492,000,000 in 1948. Gen. Whiting predicted first 1951 quarter will probably exceed comparable 1950 quarter’s dollar volume, first 6 months probably run equal to same 1950 period, but final 3 quarters will see “a slowing down due to the mo- bilization economy.” V V V V Cross-section survey of 1882 respondents to Good Housekeeping “consumer panel” last December, just is- sued, discloses 363 already owned TVs — and only 4.9% of 1519 not then owning sets planning to buy in 30-90 days. But 24.9% said they’d buy within year or two, 35.9% said they’d wait longer, remainder had no plans to buy. Of those not buying within few months, 26.2% said they couldn’t afford to, 25.8% said they were waiting for im- provements (better programs, better pictures, color). Com- posite of set features desired showed new purchaser wants 16-in. mahogany console with AM-FM-phono, in conven- tional, modem or period styling, costing $200-$300. February excise tax collections for TV-zadio sets, phonographs, components totaled $11,349,880, down con- siderably fi-om high of $19,439,774 in Januai’y (Vol. 7:10), but considerably above $3,373,865 in Febi-uary 1950. Rea- son January collections leaped so high was because that was first full month reflecting new 10 '/o TV collections which began in November. Total excises collected from TV-radio industry for 8 months from July 1950 were $59,- 490,975, compared to previous 8 months’ $25,263,982. Trade Miscellany: Emerson to date has sold more than 700,000 TVs of the nearly 12,000,000 sets-in-use (Vol. 7:12)— disclosed by its counsel, former Federal Judge Simon Rifkind, dui'ing his Supreme Couif argument in color case this week . . . GE’s TV and radio sales first quar- ter 1951 were “far ahead” of same period last year, and “we expect to maintain a high sales volume in the months ahead,” accoi'ding to A. A. Brandt, gen. sales mgr. . . . Sheldon Electric, CR tube maker, is preparing to make radio I'eceiving tubes, with full production end of April at plant in Irvington, N. J. . . . Zenith repoi-ts that by fall it will be able to occupy new 450,000-sq. ft. plant — compris- iizg 2-story structure ali'eady up and adjoining 3-story building now being erected; they’re located about 2V2 miles west of its main Chicago plant. New sets and prices: Raytheon 17-in. console with AM-phono at $469.95 . . . Kaye-Halbert 20-in. walnut con- sole at $299.95; mahogany, $319.95; blonde, $339.95 . . . Tele King 14-in. leathei-ette table at $169.95; 16-in. leather- ette table at $189.95 . . . Sears Roebuck 14-in. plastic table at $199.95. Sears’ new spring flyer advertises 16-in. table at $239.95 (formerly $279.95) and 16-in. con- sole at $269.95 (fonnerly $299.95) . . . Muntz has cut prices on 17-in. leathei’ette table to $149.95; same in wood to $179.95; same in console to $219.95 . . . Magna vox, in April-May promotion, cut newly-introduced 20-in. Shore- ham console fi’om $445 to $395. National Assn, of Cathode Ray Tube Manufacturers has been fonned, with Chai’les E. Cohn, Arctui'us, pi'esi- dent. Oi’ganization comprises smaller CR manufacturers, with these other officei’s: Jacob J. Samuel, Sheldon, v.p.; Lester A. Landeau, Television Tube Reseai'ch Laboratories, secy.; Thomas Stave, Eui’eka, tz’eas. Boai’d includes offi- cers and Don Fei-raro, Fidelity; Sam Antkies, Tel-0- Tube; Thomas Clinton, Thomas Electronics. Moses Sha- piro, 575 Madison Ave., New York, is counsel. February receiving tube sales by RTMA members lan 36,821,794, of which 24,578,991 went into new radio or TV sets, 2,355,356 into other devices, with 8,237,372 for re- placement zziarket, 1,429,783 for export, 220,292 for Govt. Total was just under January’s 37,042,303 (Vol. 7:9), but 48% above February 1950. Bendix Aviation pi’esident Malcolm P. Ferguson re- poi’ted to stockholders at annual meeting Mai’ch 28 that backlog of uizfilled orders has jumped from $170,000,000 a year ago to $475,000,000 today — that Februaiy military shijzments were almost 85 '4. higher than same ziionth last year, civilian 13% higher. 15 Financisl & Trade Notes: Television-Electronics Fund I Inc., open-end investment trust specializing in TV-radio ' securities, in unaudited report as of Jan. 31, 1951, released i this week, shows total assets at cost of $4,981,934, net assets at value applicable to outstanding shares $6,125,746. As of Oct. 31, 1950, the figures were $4,878,588 & $5,560,- ; 022, respectively. Net asset value per share of its 480,848 outstanding shares (out of 5,000,000 authorized) was put at $12.74 as of Jan. 31, up from $11.84 Dec. 31, 1950, and $10.98 on Jan. 31, 1950. These were Fund’s common stock holdings ($4,277,135 at cost, $5,490,300 at current market quotations as of Jan. 31), all showing enhancement since purchase save those companies listed in italics: Admiral 5000, Aerovox 6000, American Bosch 9000, American Broadcasting 6000, American Phenolic 2000, AT&T 1000, Bendix Aviation 3000, Clark Controller 1000, CBS “A” 6000, Consolidated Engineering 2300, Coming- Glass 2000, Cutler-Hammer 4000, Disney Productions 6500, DuMont “A” 6000, Eastman Kodak 5000, Emerson Radio ^ 6600, Fairchild Camera 2000, Fansteel 3800, Federal En- terprises Inc. 2000, GE 5000, Hallicrafters 1000, Haloid \ Co. 1800, Hammond Instrument 1000, Hazeltine 2000, I-T-E Circuit Breaker Co. 1100, IBM 1155, International ' Resistance 3000, LaPointe Plascomold 5000, Loew's Inc. '• 6000, Mallory 1200, Minneapolis-Honeywell 6500, Motorola 5500, Muter 4000, Oak Mfg. 6000, Otis Elevator 4000, Owens-Illinois 2000, Philco 12,000, RCA 14,500, Raytheon i 5000, Reliance Electric 2000, Remington Rand 7000, Sperry 3000, Sprague 5000, Sylvania 2000, Tracerlah Inc. 1000, Tung-Sol 2000, 20th Century-Fox 5000, United Specialties 2500, Webster-Chicago 10,000, Westinghouse 6000, Zenith 1 2500. ' In addition, 9000 shares of Conrac Inc., or 10 Vc of out- standing voting stock, and 2400 shares of Television Asso- ciates Inc., 9.64Cc, arc held in the fund, plus govt, bonds costing $100,000. Admiral notice of annual meeting April 12 discloses that, of 1,928,000 outstanding shares of capital stock, chairman-president Ross Siragusa and immediate family are owners or trustees of 794,904 (41.239^ ) ; John Huarisa, executive v.p., and family, 106,520; Richai’d F. Dooley, v.p., and wife, 67,516; Lynn C. Park, treas., 24,820; Mau- ' rice S. Despres, director, president of Dale-Connecticut Inc., New Haven distributor, and wife, 6288; Frank Uriell, v.p., and wife, 1200. Company on Nov. 13 purchased 72,000 shares from Kenneth D. Turner, retiring v.p., at $28.50. Remunerations for 1950 included: Mr. Siragusa, $127,703; Mr. Huarisa, $76,742 plus $75,000 bonus; Wal- lace C. Johnson, v.p., $30,576 & $30,000; Mi-. Dooley, $17,217 & $16,500; Mr. Park, $19,765 & $19,000. Radio & Television Inc. (Brunswick brands) reports 1950 sales of $2,118,105 and net loss of $36,467 — -but notes that Thomasville Furniture Co., Thomasville, N. C., in which it is 509b co-owner with Capehart, during 8 months ending Dec. 31, 1950 showed growth “little short of remarkable.” Thomasville firm recovered $35,000 on a I contested claim, reduced original $200,000 moi-tgage to $135,000 effected other economies; so that, having started fiscal year with deficit of $183,493, it ended year with surplus of $13,660. David E. Kahn is chairman of parent company, Herbert L. Weisburgh president, Alfred 0. ' Englander v.p. & secy. Oak Mfg. Co. reports earnings for 9-month period end- ing Feb. 28 were $2.06 per share on 461,149 shares then outstanding vs. $1.70 per share on 450,000 shares same l)eiiod last year — with sales (unreported) said to be “well over 509b above the previous year.” Sylvania, reporting recoi’d 1950 (Vol. 7:12), has called stockholders meeting April 25 in Boston, -will ask authori- zation for 1,000,000 additional shares of no par common stock, stating that directors believe it advisable at first favorable opportunity to issue between 250,000 & 500,000 shares for additions to working capital, new plant, etc., to support increased volume of business. Company now has 1,500,000 shares authorized, of which 1,456,550 are out- standing. Officer-stockholdings include: Max F. Balcom, chairman, 3605 shares; Don Mitchell, president, 3000; Frank A. Poor, vice chaix-man, 7200; H. Ward Zimmer, ex- ecutive v.p., 3903. Remunex’ations listed for 1950: Mr. Balcom, $50,816 salary & $12,287 profit-sharing; Mr. Mitchell, $76,250 & $28,398; Mr. Zimmer, $46,668 & $17,570. Zenith officer-director stockholdings are listed in March 20 proxy notice of annual stockholders meeting in Chicago April 24. Of 500,000 authorized common shares of no par value, 492,464 are outstanding, with president E. F. McDonald Jr. holding 49,191 (38,931 owned by his wholly-owned Seneca Securities Corp.); Hugh Robertson, executive v.p., 1518; Karl E. Hassel, asst, v.p., 100; Ralph Hubbart, director, 100; Frank A. Miller, director, 500; Irving Herriott, counsel & director, 500; Irving R. Allen, adv. specialist & director, 100. Salaries list include: Mr. McDonald, $40,000 base salary, $118,190 bonus for frac- tional fiscal year May 1-Dec. 30, 1950 (to be changed to calendar year starting 1951); Mr. Robertson, $33,333 & $118,190; H. C. Bonfig, sales v.p., $26,666 & $56,826. Wilcox-Gay Corp., which now embraces the Majestic and Garod companies (Leonard Ashbach), consolidated statement for 1950, reports sales of $8,002,572, net profit of $28,205. In first 8 months of 1950, prior to merger with Garod-Majestic, Wilcox-Gay sales were $1,953,947, loss $444,720, so that after merger sales amounted to $6,048,- 625, profits after taxes $472,925. Operations for first 1951 quarter continue profitable, reports Mr. Ashbach, with sufficient backlog of civilian and govt, orders “to keep all plants running at capacity well into next year.” Sprague Electric Co. reports 1950 net income as $3,- 345,404, equal to $6.84 per share on 489,155 shares out- standing, vs. 1949 net income of $1,206,054, or $2.48 per share on 486,155 shares. The 1950 volume reached record of $28,614,860, which president Robert Sprague told stock- holders Mai’ch 27 should be exceeded this year. Tung-Sol on May 1 calls for redemption of 10,000 shares of its 48,236 outstanding preferred stock, to be selected by lot after Mai’ch 30. Call price is $17.50 a share. Standard Coil Products Inc. has had its stock (1,470,000 shares outstanding) admitted for trading on N. Y. Stock Exchange. Trade Personals: George B. Howell elected chairman of Electronic Tube Corp., Philadelphia, whose president now is Henry S. Bamford, ex-chief engineer . . . Maurice L. Levy, onetime Stromberg-Carlson, Emerson and Philco engineer, named Tele-tone director of engineering . . . Sidney Lidz, director of color research, promoted to chief engineer, Starrett . . . L. E. Septer, ex-Crosley, named gen. sales mgr.. Tele King . . . James B. Lindsay, ex-RCA, elected engineering v.p., Thomas Electronics Inc. . . . Frank Guthrie, ex-Rauland sales mgr., named field asst, to Air King president David H. Cogan . . . Wm. Lightfoot promoted to gen. mgr., Russell Electric Co., Chicago, Ray- theon subsidiary . . . Arthur H. Rogow elected president, Everett M. Patter.son engineering v.i). of Super Electric Products Corp., Newark, subsidiary of Universal Labora- tories Inc. . . . Ellis L. Spray, ex-Westinghouse v.p., joins W. L. Maxson Corp., electronics manufacturer. 16 - Telecasting Notes: Kefauver telecasts proved that “vacuum cleaner” audience can be very considerable — New York AP report noting they depressed local retail trade 237c, required extra generators to handle increased power load, enjoyed 30,000,000 audience in 21 areas to which they were piped . . . Cost to industry of handling crime hearing telecasts was estimated at $75,000 — most stations keeping spot commercial schedules but hard- pressed to relinquish shows; ABC-TV sponsor Time Inc. reported to have spent $200,000, regarding it as big bar- gain since “talent was free” . . . Several independent radio stations, including New York City-owned WNYC, New York WFDR (FM) and Pittsburgh WWSW, picked audio part of Kefauver Washington telecasts off the air and rebroadcast it by permission of DuMont Network . . . Rep. Keating (R-N. Y.) among first to record films for fortnightly telecasts of reports to his constituency via WHAM-TV, Rochester . . . Easter throngs on Fifth Ave- nue, due to cold weather and TV, hit peak of only 550,000 to 600,000, as against traditional sunny Easter Day’s 1,000,000 to 1,500,000, according to New York Times . . . CBS has leased “spectacular” on 46th & Broadway from Douglas Leigh Inc., will use giant animated electric sign for promotion of WCBS & WCBS-TV programs . . . Mar- garet Truman’s exclusive contract with NBC calls for 11 TV and radio appearances between now and June 1952, with option for 4-year renewal ... In line with growing exclusivity policies of networks, CBS signs Mary Sinclair, actress in 14 Studio One shows, calling it “approach to star system intended to recognize those talents that have matured within our own medium” . . . And NBC reports signing new long-term contract with Burr Tillstrom, cre- ator of Kukla, Fran & Ollie . . . Independent WPIX, New York, now doing same sort of promotion that WOR did in its early days under A1 McCosker, building up local pres- tige as a non-network TV; last week’s New Yorker Maga- zine carried full-page WPIX ad listing 57 clients, products, agencies, comparing New York area’s total claimed 2,050,- 000 TVs (as of Jan. 1) to circulations of city’s 9 dailies. IT SURPRISED few in the industry when widely pub- lished newspaper reports, sparked by Variety March 28 item, revealed that ABC chairman Edward J. Noble had held conversations with IT&T chairman Sosthenes Behn looking to possible disposal of the netw’ork to that com- pany in exchange for IT&T stock. Inquii’y elicited admis- sion from IT&T that there had been such conversations, but “no developments.” Over last 3 years, there have been reports that Mr. Noble would sell his majority holdings — first to 20th Cen- tury-Fox (offer reported $20,000,000, asking price $25,000,- 000), then at various times to Paramount and Mary Pick- ford. Nothing came of reported negotiations, it being indicated almost every time that buyers were more in- terested in ABC’s 5 TV stations in top 5 markets rather than network as a “package”. IT&T has sought to rival RCA in all-around radio fields ever since war forced disposal of many of its foreign telephone-radio properties. It sells transmitter equipment through Federal, TV-radio receivei’s through Capehart- Farnsworth which it purchased last year (Vol. 6:7 et seq). But latter sold its AM station in Ft. Wayne, and IT&T last year sold only station it owned — in San Juan, P. R. ABC has been running poor third among the 4 AM and 4 TV networks (see p. 2 & 1950 PIB figures, Vol. 7:3). Its earnings I'eports haven’t been very impressive over last few years — blamed mainly on high TV opei* *ating costs. But its 5 TV outlets and its 5 O&O broadcasting stations are re- puted to be profitable, the former now especially on high road to share in telecasting’s fantastic grovd;h (see p. 1). Big league baseball will be telecast this season from the lots of all clubs save St. Louis Browns and Cardi- nals, Pittsburgh Pirates. Many a minor league club, too, will permit telecasts this year. In all cases, advertising sponsors will pay for rights as well as foot the telecast- ing costs. In some instances, only partial home sched- ules will be telecast, by agreement, presumably to whet attendance — also because stations couldn’t always clear time. Baseball is expected to prove boon to TV receiver mar- ket once again when season gets under way April 16. Here’s lineup of big league telecast schedules, stations, sponsors: AMERICAN LEAGUE — Boston Red Sox, 20 home day and night games rotated on WBZ-TV & WNAC-TV, also on WJAR-TV, Providence, sponsored by Atlantic Re- fining Co.; Chicago White Sox, 58 daytime games on WGN- TV, American Vitamin Associates Inc.; Cleveland Indians, all home games on WXEL, Leisy Brewing Co.; Detroit Tigers, 35 games on WWJ-TV, Goebel Brewing Co.; New York Yankees, all home games divided between WABD & WPIX, P. Ballantine & Sons; Philadelphia Athletics, all home games divided among WPTZ, WCAU-TV & WFIL- TV, co-sponsored by Atlantic and Ballantine; Washington Senators, 21 games on WTTG, Heurich Brewing Co. NATIONAL LEAGUE — Boston Braves, all day, 14 night games rotated on WBZ-TV & WNAC-TV plus WJAR-TV, Ballantine; Brooklyn Dodgers, all home games on WOR-TV, Schaeffer Brewing Co.; Chicago Cubs, home games rotated on WGN-TV & WBKB, American Vitamin Associates sponsoring on WGN-TV only; Cincinnati Reds, 26 weekday and Sat. games on WCPO-TV & WHIO-TV, Dayton; New York Giants, all home games on WPIX, Chesterfield; Philadelphia Phillies, all home games rotated on WPTZ, WCAU-TV & WFIL-TV, Atlantic & Ballantine. Minor League clubs already reporting telecasts in- clude Baltimore Orioles, Oklahoma Indians, San Francisco Seals, Los Angeles Angels. Last year’s gross income from operations was $45,- 879,660, compared to $40,267,488 in 1949, $37,110,726 in 1948, $35,955,004 in 1947. The 1950 profit was $84,605, up from 1949 deficit of $519,085. In 1948 earnings were $468,676, in 1947 they were $753,911. At end of 1950 earned surplus was $3,627,559. Notice of annual meeting April 12 lists Mr. Noble as largest stockholder, holding 901,667 out of 1,689,017 shares outstanding, with these other officer and director holdings: Earl E. Andei'son, v.p., 8500; Robert E. Kintner, president, 7000; Mark Woods, vice chairman, 6500; Franklin S. Wood, director, 6000; Owen D. Young, honorary chairman, 5000; Wm. Zeckendorf, director, 2000; C. Nicholas Priaulx, v.p., 1000. Officers’ 1950 salaries and fees included: Mark Woods, $75,000; Mr. Kintner, $58,333; Mr. Priaulx, $27,499; Paul Whiteman, v.p., $86,999. * « * « CBS officer-director stockholdings and salaries at end of 1950, as disclosed in notice of April 18 annual meeting; Wm. S. Paley, president, 88,510 shares of Class A stock, 223,500 Class B, $100,000 salary; Frank Stanton, presi- dent, 810 A, 3025 B, $100,000 salary, $51,597 bonus; Jo- seph H. Ream, executive v.p., 100 A, 100 B, $52,192 sal- ary, $17,475 bonus; Edward Wallerstein, president Colum- bia Records Inc. (resigned), no stock, $60,000 salary, $4421 bonus; Edward R. Murrow, director, no stock, $135,086 in fees, salaries, commissions. Other director stockholdings include: Isaac D. Levy, 31,826 Class A, 20,475 B; Leon Levy, 14,100 A, 40,900 B; Samuel Paley, 7000 A, 15,000 B; J. A. W. Inglehart, 3400 A, 1000 B. »UBLISHEO WEEKLY BY RADIO NEWS BUREAU, 1519 CONNECTICUT AVE. N.W., WASHINGTON 6, D.C. TELEPHONE MICHIGAN 2020 • VOL. 7, NO. 14 April 7, 1951 Mm This issue: {Everyone Studying Allocation Angles, pac/e 2. Widening Breach Between FCC & Industry, page J. Nickel Threatens Real Bottleneck, page 5. NPA Steel Order Made Tighter, page 0. Output Pace Lower at Quarter’s End, page 8. Inventory Problem Still Clouds Trade, page 8. Zenith Uhf Claims Again Raise Stir, page 0. Pattern of TV-Radio Price Controls, page 10. THE PROSPECTS FOR UHF RECEIVERS: How about uhf receivers? When will they come? At what cost? With what performance characteristics? We checked major set manufacturers and tuner makers this week, found vir- tually everyone has a uhf unit in the works. But it's obvious that only demand — meaning stations actually on air or imminent — will bring full answers. If one big manufacturer took the leap now, of course, and built uhf in new lines, he might precipitate industry into such production — despite inescapable fact uhf stations are still long way off. But Zenith's resumption of old "obsolescence" campaign this week, with full- page ads across country (see pages 9-10), doesn't look like the "precipitator". Heavy developmental programs, on part of both the set manufacturers and the tuner makers, have produced number of acceptable devices, but — It will be years, rather than months, before more than merest handful of uhf stations can possibly get on air. Even if FCC finds it can lift the uhf freeze before vhf (Vol. 7:12-13), it can't conceivably start granting stations before late summer or early fall — since it has promised 2-3 months' hiatus while applications for stations are prepared and filed. Thus, 2 or 3 stations on air this year are about all that can be hoped for. And accretion next year is bound to be very slow, regardless of number of construc- tion permits granted, because the only uhf transmitters any manufacturers have for possible delivery are experimental. Many applicants are enthusiastic about uhf possibilities in non-vhf areas, but obviously none would order transmitter until he knew final score on allocations. Then manufacturer, after receipt of firm order, needs at least same 9-12 months it takes to make vhf transmitters (Vol. 7:11). * * * Uhf receiver situation is fairly well in hand as far as most manufacturers are concerned. They feel they have units for iihf ranging from "so-so" to "good" now, will have even better ones when people are willing to buy them. Biggest tuner maker of all. Standard Coil Products (over 4,500,000 built to date, for Admiral, et al), plans to test latest tuner in Bridgeport next week. [For Standard's answer to Zenith claims, see pages 9-10.] Sarkes Tarzian, who says he's next to Standard, seems quite happy with tuner he has up his sleeve. He says it's continuous type, covering whole band, claims it gives performance comparable with vhf. It's expected to cost 75-100% more than vhf-only, which costs manufacturers about |10. S.M.A. Co. plans continuous tuner, covering vhf-uhf, estimates it will in- crease set cost some $20-$30. Mallory, maker of continuous tuner for DuMont, et al , says it has "several good solutions," with converter now designed and tuner well on way. Crosley will be first to unveil a new tuner in "full-dress" press demonstra- Copyrlght 1951 by Radio News Bureau 2 tion. New "Ultratvmer" will be shown off at Bridgeport's Barmun Hotel April 11. Crosley group of top engineering and sales officials will be headed up by v.p. John W. Craig. Describing Ultratuner briefly, Crosley says: "It can be attached to TV receivers using continuous-type tuners. It is low-cost , simple-to-operate and can be installed without special tools or technical knowledge. It offers possibilities for quickly and economically extending vdif telecasts to the public when uhf stations are authorized to go on the air." All set makers using turret tuner say they can give same answer as Zenith — namely, addition of uhf "strip". Hallicraf ters says it has achieved satisfactory performance with strip in Bridgeport tests, but calls it only an "interim answer" for uhf reception. Fhilco says that slight alteration can adapt its sets, which have "dual chassis," with space between units for later insertion of tuner. Most others have left space for timer — Motorola, GE, DuMont, etc. RCA hasn't disclosed latest plans. However, during allocations hearing (Vol. 6:47), it told FCC it intended to build vhf-uhf sets, vhf-only, and uhf con- verters. It said vhf-uhf would cost about $25 more than vhf, that vhf-only would have room for later addition of uhf at some $50, and that uhf converter would run about $50, besides installation and antenna. EVERYONE STUDYING ALLOCATION ANGLES: industry is still mulling proposed vhf-uhf allocation plan (Vol. 7:12-13), but no one has filed comments on it yet. Actually, deadline date of April 25 is likely to be extended, perhaps for 10 days, as re- quested this week by NARTB. Many stations and applicants are waiting to exchange views at April 15-19 NARTB convention in Chicago, before filing comments, and FCC is expected to take that fact into account, grant postponement. Other deadline dates — May 8 for coun- ter-comments, May 25 for start of city-by-city hearing — would also be extended. Educational channel reservations remain most objectionable feature of allo- cation, in industry's eyes. Real showdown will come during city-by-city hearing when educators show up and state intentions. Failure to make good case, in face of commercial opposition, might conceivably result in loss of reservations — though Comr. Hennock, prime mover, actually seeks more such channels. Educators are hustling to "get out the vote," insure presentation of well- prepared cases. Joint Committee on Educational Television, which carried ball during hearing, is setting up permanent headquarters at 1785 Massachusetts Ave., NW. , Washington, to coordinate, advise, etc. A political "assist" for educators came from Rep. Emanuel Celler (D-N.Y.) this week, when he introduced H.R. 3547, which would force commercial stations to donate 25% of their time to non-commercial education programs. He parts company with Comr. Hennock when it comes to channel reservation, terming idea of setting aside 25% of channels "unworkable and untenable." Educators have approached big philanthropic foundations for funds to support JCET activities. Presumably, these include Ford, Kellogg and Carnegie Foundations, Whitney Fund. We gather that individual schools or groups are going directly to private donors for money to build and operate stations. Meanwhile, existing stations generally are quite happy with allocation plan — very happy over proposed increases in powers and heights, and are busily explor- ing availability of new transmitters, amplifiers, towers. The 51 who have to shift channels (see Allocation Report) haven't yet com- plained loudly to FCC, though a few may. Some have informally told Commission they have no objections. Some hope to increase power to maximum same time they shift. In Ohio, which has many shifts, stations are considering plan to swap equipment, meaning purchase of very little new gear. Others may follow suit. Engineers for new-station applicants are racking their brains, hunting holes in allocation where new vhf stations could be squeezed in. But chances of getting FCC to relax minimum station separations are awfully slim. - 3 - WIDENING BREACH BETWEEN FCC & INDUSTRY: Once again. FCC put its foot into it — provoking the film industry to bitter anger, impelling even the staid New York Times to comment; "The FCC evidently aspires to be the Pooh-Bah of the electronic age." Its incredible dictum in movie "anti-trust opinion" last week (Vol. 7:13) virtually threatens that industry with exclusion from telecasting licenses if it doesn't come across with its first-run films for TV. By itself, the opinion might be laughed off as mere words — but actually it's just another reflection of the Big Stick attitude, the master-slave philosophy, that has already alienated from FCC the esteem and respect of ; (a) Virtually the entire electronics manufacturing-distributing industry — because it sought to impose untested, unproved "bracket standards," within a ridicu- lous one-month deadline, in connection with its hell-in-a-hack quest for color (Vol. 6:35, et seq). (b) The great body of TV-aspiring radio broadcasters — because it sliced off a big chunk of the scarce vhf channels, and even more uhf, to meet nebulous demands for "educational stations" (Vol. 7:12-13). (c) Most existing telecasters — because it plans, though hasn't yet sched- uled, a probe into program content that some fear has Blue Book implications, albeit such motive is vehemently denied (Vol. 7:3-5). But telecasters can't forget attempt, which may be renewed, to dictate how many hours of time a station may or may not take from any particular network (Vol. 6:40-48) — though in this case it must be noted that 2 networks actually asked FCC for such regulation. These are only a few facets of the disaffection that unfortunately now pre- vails between this Commission and industry. Nor has this widespread feeling of mistrust been mitigated by artificial prolongations of a freeze, now 31 months old, which has hamstrung one of the most fabulous industries of all time. [The color issue, of course, was main cause for protracted freeze; and there's scant doubt that, should Commission win clearcut decision in Supreme Court case, effort will immediately be made to implement its choice of field-sequential system by (a) requiring existing broadcasters to telecast certain number of hours of color as condition of their licenses, and (b) extracting promises to telecast color as condition of post-freeze new station grants.] 4: ♦ * ♦ But leave aside the broadcasting-telecasting fraternity, who are licensed and who with their lawyers must pay lip service, sometimes abject obeisance, to the agency holding power of life and death over their business; There are political overtones to what FCC is doing that are unmistakable. FCC may not give a hang what licensees and their lawyers and engineers think and say about it behind its back, but its ears v/ould burn if it could hear what the movie exhibitors and their spokesmen are saying — and there are some 18,000 of them, most of them business leaders in their communities. Just as many of the 30,000-odd TV-radio manufacturers-distributors-retailers throughout country have come to believe there's "dirty work" behind some of FCC's curious recent actions, notably in the color imbroglio, so the movie people are now apparently convinced there's something rotten in Denmark. Actually, nothing venal is involved. Simplest explanation is that the power complex (you-do-as-we-say-or-else ) has become ingrained — notably at higher staff levels. Despite Chairman Coy's disavowals in this connection before House commit- tee this week (see p. 4), their extraordinary influence as policy initiators and opinion drafters is matter of common knowledge. if. ^ ^ The local merchandising folk may not comprehend Washington's peculiar power complexes, but the protracted freeze, the attempt to foist an unwanted color system on them against advice of preponderant engineering opinion and in midst of a war economy, unwonted attacks like Comr. Jones* on the integrity of the industry that created TV-radio (Vol. 6:35 et seq), and such bumbling acts as an official demand - 4 - that RCA "lend" rival its tri-color tube (now called the DiMaggio, see Vol. 6:44-45, 49) — these they do understand and don't like. Movie trade press is filled with bitter recriminations — and it's our guess that not only FCC, but an Administration already sore-beset by scandal, have not heard end of things yet from an industry far more adept at politics and far more articulate in publicity than TV-radio. An indignant writer to New York Herald Trib- vine, for example, states "this particular bureaucracy has gone off half-cocked again and is simply proposing to rob Peter of Hollywood to pay Paul of coaxial cables." First political reaction came from Senator Wiley (R-Wis.), who bitingly wrote Chairman Coy that FCC seeks to intimidate the film industry with a "gratuitous attack. . .worthy of Russia's 'courts' but not ours." New York Times editorial April 3 is calmest, most detached, yet most pointed we've seen. It tells the whole story; full text below. 'Pooh-Bah of the Electronic Age' Editorial in the New York Times, April 4 The FCC has overreached itself. Its warning to the Hollywood producers that they turn over their films and stars to TV, lest they jeopardize their own chances to enter video broadcasting, is an arbitrary and capricious action that fiouts the elementary principles of a competi- tive economy and raises serious questions of law. In what it calls “a statement of policy” the commission in effect is insisting that Hollywood must come to the aid and succor of its chief competitor. The stars, directors and other craftsmen in whom the film capital has built a substantial investment over the years, the commission suggests, now should be made available to the industry’s growing rival. The one thing which television does not have — the up-to-date, full-length picture which may cost millions of dollars — Hollywood now is expected to furnish on television’s terms. The FCC ignores completely in its statement the eco- nomic realities which today separate Hollywood and tele- vision. The only reason that the motion-picture industry can afford to make its feature films is because it has the box office to pay for them. Even the least expensive film requires a gross of $1,000,000 or more to show a profit. The most expensive show on television today, including the cost of talent and time on the air, runs to $85,000. Apparently the FCC is unconcerned, however, whether Hollywood goes broke in serving as the involuntary sugar daddy of television. Its statement merely notes that the motion picture companies “refuse to make copies of their films available for use by television stations.” Would a brand-new picture have to be released immediately to TV ? Or after it had been seen in the second-run houses? Or when? Whatever the answer, the practical result would be for a governmental agency and not the producers to run the private film industry. That is a bleak and fear- some prospect. The legal reasoning behind the commission’s action may give cause for even greater concern than its peculiar eco- nomic thinking. Superficially, the FCC merely is saying that if a motion-picture concern has been found in viola- tion of the anti-trust laws in its own field it will take that fact into consideration should the company ask for a tele- vision license. Indeed, the FCC has no alternative in this regard. But the commission then takes the extraordinary step of superseding both Congress and the Department of Justice in deciding without benefit of any public hearing what may constitute an anti-trust violation. Whether or not the refusals of the film companies to turn over to television their films and players is a violation of the law, the FCC says in so many words, the commission will consider them Hearings on McFarland Bill (S. 658) this week, be- fore House Interstate & Foreign Commerce Commit- tee, had FCC Chairman Coy most vehement about provi- sion to keep commissioners from consulting with staff membei*s other than their own assistants. “As far as we can determine,” he said, “the effort to place the commissioners in a kind of isolation ward is based upon the calumny, all too often repeated, that the commissioners are unduly infiuenced by the Commission staff, and that this staff is in turn prejudiced and irre- sponsible. I should like to say categorically that these assertions, or rather insinuations, are completely unfound- ed. These attacks on the Commission’s staff are, in reality, attacks upon the integrity and ability of the commission- ers . . .” Coy also objected to: (1) “Legislative time-table” which would require action on applications within certain deadline, with reports to Congress on reasons for delay. (2) “Protest” procedure “under which an existing station could demand and secure a hearing on any application . . . the grant of which might cause economic injury to it.” (3) Changes in criteria for granting license renewals. (4) Changes in transfer-of-licenses procedure which “would permit a person to secure a valuable broadcast license and then auction it off to the highest bidder, thereby making a mockery of comparative proceedings.” (5) Changes in criteria in granting applications to those in- volved in anti-trust violations. Hearing resumes April 9, with questioning of Comrs. Coy and Jones — latter favoring separation of Commission and staff. Others scheduled to testify for bill are Joseph Ream, CBS executive v.p. ; Frank Roberson, FCC Bar Assn.: Justin Miller, NARTB chairman. Opposing, in part, will be Robert Ramspeck, chairman, Civil Service Commission. Metropolitan Opera is setting up new TV dept, to pre- pare special operatic programs for sponsored telecasts, to be booked through Wm. Morris Agency. “We will attempt to develop special TV techniques rather than using stage techniques,” said gen. mgr. Rudolf Bing April 2. “The Metropolitan is not only thinking of the possible added revenue but also of the fact that TV as a new mass medium has come to stay and offers unlimited possibilities for opera.” Heading department will be Dr. Herbert Graf, Met stage director; Reginald Allen, business mgr.; John Gutman, artistic asst. relevant in granting a TV license. The FCC evidently aspires to be the Pooh-Bah of the electronic age. The commission on its own initiative should reconsider its latest statement of policy. Failing that, it is a matter which should commend itself to the prompt attention of Congress. NICKEL THREATENS REAL BOTTLENECK: Sporadic stoppages in receiving and cathode ray tube plants provide forewarning that nickel crisis may come sooner than anticipated. And make no mistake about it — nickel shortage is most serious problem facing electronics industry today. Here are the facts: Nickel is used heavily in receiving, picture and transmitter tubes, where there are no known substitutes for it. It's also ingredient in ferrite transformer cores (10-20% nickel) and alnlco permanent magnets (14% and up). Like cobalt and tungsten, it's vital to jet plane program and many other military projects. NPA "permits" civilian use of nickel at 65% of first-half 1950 rate (Order M-14, Vol. 6:48), but — This month, 85% of U.S. supply of nickel is earmarked for defense orders and govt, stockpiling. Govt, metal experts say that within 30 days — probably less — defense orders and stockpiling will require 100%. Past experience in shortage crises, however, indicates Govt, certainly isn't going to let electronics industry wither and die. Undoubtedly NPA eventually will siphon to tube industry enough nickel to keep it in at least minimum operation — probably not much more than half the 200,000-250,000 lbs, a month which industry estimates are its rock-bottom requirements. This may be accomplished by rescreen- ing military orders, cutting down wherever possible, as was done in case of cobalt. But hard times are ahead, any way you look at it — because even the most ingenious conservation measures (Vol. 6:49, 7:6-7) apparently don't come anywhere near eliminating tube industry's heavy dependence on nickel. No increase in nickel production is in sight before end of year. By then. Govt, will have reactivated World War II Nicaro Nickel Co. plant at Oriente, Cuba, which can turn out 25,000,000 lbs. yearly — mere drop in bucket compared with re- quirements. Nickel now comes from 2 sources, both Canadian: International Nickel, I 240,000,000 lbs. a year; and Falconbridge Mines, 30-40,000,000 lbs. I It's estimated civilian electronics industry (mostly TV-radio) used slightly i more than 2,500,000 lbs. of nickel last year — about 1% of total supply. ' That's the situation as it stands today, and that's No. 1 problem being 1 pondered by Govt.'s high-level Electronics Production Board (Vol. 7:11-12). * * * * Emergency appeal by tube makers for temporary aid (Vol. 7:11,13) has as yet received no action. There's strong possibility it will be delayed — some govt, people pointing to current sales slump and asking blandly why TV production should be kept going at all. Real crux of problem, of course, is that tube and other electronic plants : must stay in business, keep their working force — against time they'll be called on to produce the electronic nerve centers for Uncle Sam's military machine. By June, NPA will place nickel under all-out allocation, doling out every pound of available nickel among the hundreds of thousands of users — according to essentiality of end-product. Representatives of whole electronic industry will be summoned by NPA to discuss entire problem in Washington in about a week. Users of nickel have felt shortage for many months — but they say it's snowballed now so that it's cutting heavily into production, forcing stoppages. Timing of TV sales slowdown, however, has softened the blow. Actually, tubes are easier to get now than they've been in months, as TV manufacturers cut back schedules due to sales letdown. But demand is still lively — distributors' orders to fill depleted replacement stocks believed accounting for much of it. Picture tubes are reported "softest" item, so far as demand goes. Indeed, DuMont this week cut its prices to manufacturers by $1.50-|11. In second reduction 5 - 6 - this year (Vol. 7:5), its 17-in. picture tubes were cut from $26 to $24.50; 19-in. from $43.75 to $32.50; 20-in. from $43.75 to $37.50. RCA says it won't follow suit, and so far as we're aware no general CR price-cutting is in view. This sidelight graphically illustrates severity of nickel shortage; There's no cobalt problem now. Despite reduced allocation of cobalt for April (Vol. 7:13), it's now lack of nickel that's big hold-up in production of Alnico V magnets (24% cobalt, 14% nickel). NPA STEEL ORDER MADE TIGHTER: With a neat twist of the wrist, NPA April 5 converted its steel durable goods order (Vol. 7:10-11) from a hairshirt to a straitjacket for TV-radio industry. Last escape hatch in M-47 was locked, sealed and boarded shut with the pub- lication of amended list of product categories and groups covered by the order. Order's basic provision remains unchanged; Manufacturers are limited in their use of steel during second quarter to 80% of their rate of use during first six months of 1950. But new amendment, seeking to assure output of durable goods in same propor- tion as during first-half 1950 base period, has effect of "freezing the mix" of TVs, radios and phonographs that any manufacturer can produce this quarter. It divides consumer durables into 9 categories, subdivides categories into groups of closely-related items. Steel quotas can't be shifted from one group to another within a category. Radios. TVs and phonographs comprise one category, which is broken down into these groups; "(1) Radio receivers, home, portable, and broadcast band automobile receivers. (2) Radio-phonograph combinations. (3) TV receivers. (4) Radio-TV receivers, TV-phonograph combinations and radio-TV-phonograph combinations. (5) Phonographs and record players." Thus a manufacturer can't cut down on radios and put extra steel into TVs. TV receivers are a group by themselves ; TV manufacturer, therefore, isn't allowed to use this quarter more than 80% of the steel he used in TVs during average quarter of first-half 1950 — can't juggle proportion of TV steel to radio steel. Radio classification is more lenient. Manufacturer who turned out no port- ables durable first-half 1950, for example, could put entire radio steel allotment into portables this quarter, eliminating auto & home radios entirely, if he chooses. Classification 4 permits some flexibility. Manufacturer could cut down on combinations — saving steel by eliminating phono — and increase his output of TV-AM or TV-FM sets. But he couldn't use this steel for TV-only sets, which are in different classification group. NPA vetoed a proposed change which would have eliminated discrimination in M-47 against "assemblers," who buy all their steel parts ready-made. "Assemblers," therefore, won't be permitted to produce this quarter more than 80% of units in each group that they turned out during average quarter of first 6 months of 1950. Best hope for "assemblers" — and any others who can't live with current order — is to ask NPA for individual adjustments, backing up their cases with con- crete evidence of conservation measures. Mobilization Notes: Controlled Materials Plan (Vol. 7:3,12-13) is definitely in the books, said both Defense Mobilizer Charles Wilson and Production Chief Win. Har- rison at hearing of Congressional Joint Committee on De- fense Production April 4. Details haven’t been announced, but starting date may he pushed from July 1 to Sept. 1. CMP will allocate nation’s supplies of steel, copper and aluminum for military and essential civilian production, but bulk of materials control orders are expected to remain in effect, and so-called “non-essential” civilian production won’t come within scope of CMP, according to best in- formation. NPA Administrator Manly Fleischman is strong proponent of CMP, while DPA Administrator Wm. Harrison is reported as feeling all-out controls aren’t nec- essary now. It’s generally believed that Harrison, in ill health, will resign within 30-60 days, regardless of decision on how far CMP will go. It’s good guess that if he does, assistant W. W. (Wally) Watts, RCA v.p., will follow suit. Westinghouse’s $20,500,000 in new defense contracts, announced this week, include 4 totaling $12,000,000 for TV-radio division for radio test, transmitter and other equipment, one for $8,500,000 worth of Navy radar equip- ment for its appliance plant. F. M. Sloan, TV-radio di- vision chief, announced new plant at Raritan, N. J. (Vol. 6:35, 39), will be completed by mid-July and ready for de- fense output. 7 Copper, aluminum and lead I’estrictions were modified in 3 new NPA orders. Prohibitions on use of copper and aluminum were relaxed with an amendment to Order M-7 postponing for one month (until May 1) ban on use of aluminum in manufacture of about 200 civilian products. “Homo radio cases” is only category on list which applies to TV-radio industry. Copper end-use order M-12 (Vol. 6:52,7:10) was amended to permit purchase and sale of copper parts for use in prohibited items, provided they’re not suitable for use in permitted items. Sole TV-radio item on copper ban list is auto radio antennas. Amend- ment to lead oi-der M-38 limits consumers to 100% of their rate of use during first-half 1950, a period of low lead consumption, and reduces permitted lead inventories from 60 to 30 days’ supply. Revised “essential activities” list, issued by Commerce Dept, “for the guidance of Defense Dept, in scheduling calls on reservists to active duty, and for information of Selective Service in determining draft deferments,” is much more rigid than tentative list released last August (Vol. 6:31). Only electronic-communications activities listed are: production of military equipment, central switchboard, printing telegraph equipment and coaxial cable; telephone, telegraph, radio-telegraph service. Miss- ing are broad classifications of telecasting, broadcasting, TV-radio manufacturing, wholesaling and retailing which appeared in earlier list. Labor Dept.’s companion list of “critical occupations” will be forthcoming in next few weeks. Mobilization Personals: Brig. Gen. George Irving Back, Gen. MacArthur’s Signal Officer in Tokyo since 1947, World War II Chief Signal Officer of MTO, nominated as Army Chief Signal Officer, subject to Senate confirmation, succeeding Maj. Gen. Spencer B. Akin, who retired March 31 . . . Maj. Gen. Francis H. Lanahan, Ft. Monmouth (N. J.) commanding general, wartime Chief Signal Officer of Eisenhower commands, ordered April 4 to report to Gen. Eisenhower for duty at Supreme Headquarters Allied Powers in Europe, presumably as Chief Signal Officer . . . Thomas S. Nichols, on leave from Mathieson Chemical Co., Baltimore, ex-WPB, ex-State Dept., named NPA deputy administrator, succeeding Glen Ireland, who has returned to his post as Pacific Telephone & Telegraph Co. v.p. Test equipment section — Robert B. McCurdy and George G. Hoye — has been transferred from NPA Elec- tronic Products Div. to Technical & Scientific Supplies Div., 5th floor, 801 E St. NW, headed by Howard Pringle. Paul A. Porter, ex-FCC chairman and onetime Federal Price Administrator, named one of 4 public members of new Mobilization Policy Board named by President Truman April 7. Labor, agriculture, management and public com- prise top-level board of 16 to serve under Defense Mobilizer Charles E. Wilson. Censorship of TV by FCC to exclude programs “of- fensive to public decency” is objective of H. R. 3482, intro- duced April 3 by Rep. Lane (D-Mass.). He’s been lam- basting TV for “lewd images and suggestive language,” quoting warnings by Boston’s Archbishop Cushing and Worcester’s Bishop Wright (Vol. 7:9). Rep. Lane wants Communications Act to read: “No regulation or condition shall be promulgated or fixed by the Commission which shall interfere with the right of free speech by means of radio communication; but the Commission shall have au- thority to promulgate regulations for the purpose of pre- venting inclusion in television broadcasting pi-ogj-ams of any language, sound, sign, image, picture, or other mat- ter or thing which is obscene, lewd, lascivious, or other- wise offensive to public decency.” Financial & Trade Notes: Olympic Radio’s 1950 rec- ord sales of $21,937,175 compared with $9,609,672 in 1949. Net earnings were $1,577,484 after providing $1,604,500 for taxes, or $4.66 per share on 338,263 common shares outstanding, as against 1949 earnings of $578,163 ($2.24 on 256,667 shares then outstanding). Wall Street Journal reports Olympic’s first 1951 quarter sales may top $6,500,- 000, compared with $4,700,000 in same 1950 quarter. Raytheon showed profit of $1,797,000 on sales of $64,- 000,000 in 9-month period ended Feb. 28, reports president Charles Francis Adams Jr. This compares with profit after taxes of $131,162 on sales of $39,000,000 in corre- sponding 1950 period. Third quarter ended Feb. 28 ac- counted for $23,000,000 sales, $520,000 net profit vs. $16,- 516,699 sales and $752,863 profit for same 1949 period. National Union Radio Corp. (tubes) reports $14,799- 107 sales in 1950 vs. $7,455,105 in 1949, net profit $1,268,851 in 1950 (92c a share) vs. $70,845 in 1949. Company also announces purchase of 50 acres for new 130,000-sq. ft. plant in noi’theast Philadelphia costing $6,000,000 and em- ploying 1600. Construction starts immediately for com- pletion by end of 1951. Wells-Gardner 1950 sales were $17,825,097, net in- come $954,235, and consolidated earned surplus at end of year was $2,394,227 after payments of $307,725 (75<^ per share) dividend. Company last May 1 purchased Zangerle & Peterson Co. for $621,593. Sales in 1949 were $7,662,- 068, profit $182,289; in 1948 sales were $13,100,150, profit $717,836 (Vol. 6:14). P. R. Mallory & Co. reports 1950 sales of $39,158,150, net profit $2,553,758 ($5.29 a share) vs. 1949 sales of $24,- 647,429, net profit of $1,124,090 ($2.79). Backlog of orders Dec. 31 was $11,002,375, working capital $5,454,480. American Phenolic Corp. reports sales of $12,944,833, net profit $920,833 ($2.30 per share) for 1950 vs. $10,082,- 819 sales, $567,275 profit ($1.42) in 1949. Reeves Soundcraft Corp. will ask stockholders, at April 10 annual meeting, to authorize 1,000,000 more 54 par common shares, to be added to the 2,500,000 presently authorized (2,308,495 outstanding, along with 5080 shares preferred). Company reports 1950 sales of $1,513,470, net profit $118,458, earned surplus at Dec. 31, 1950, amount- ing to $79,052 (converted from $39,406 deficit at start of year). Company operates disc, magnetic tape, tube divi- sions; owns 93% of Light Metals Corp.; owns approxi- mately two-thirds of Tele-Video Coi-p., which in turn owns all capital stock of Airdesign Inc.; is majority stock- holder in Cinerama Inc., new color film process; reports manufacture of color TV cameras under contract with Remington Rand in accordance with CBS designs. Dividends: Tung-Sol, 254 on common, 204 on preferred, both payable May 1 to holders of record April 17; Hoffman Radio, 254 payable April 21 to holders April 7; Tele-tone Class A preferred, 16% 4 payable April 1 to holders March 27; American Phenolic, 204 payable April 13 to holders April 27; Clarostat, 10^ payable April 10 to holders April 16; Emerson, 254 payable April 16 to holders April 4; Olympic Radio, 10% stock and 254 quarterly dividends payable April 25 to holders April 12; RCA, 504 payable May 18 to holders April 20, 87%^ on preferred payable July 2 to holders June 11 (with announcement semi- annual dividends will be declared hereafter in May & No- vember, if earnings justify). Mallory-Sharon Titanium Corp., Indianapolis, is new lii-m formed by P. R. Mallory & Co., components makers, and Sharon Steel, to develop, produce and market titanium and titanium alloys. They own 50% each. OUTPUT PACE LOWER AT QUARTER'S END: Production slide continues — first quarter's 13th and final week (ending March 30) resulting in output of 157,771 TV receivers (6298 of them private brand) as against 161,602 preceding week. Factory inventories meanwhile climbed to 269,448 from preceding week's 235,142 and 196,326 week before. Total output for quarter is thus 2,196,016, subject to revision by RTMA statisticians, as against 1,605,000 for first 1950 quarter and about 2,500,000 for record fourth 1950 quarter. Recapitulating RTMA weekly counts, these are the figures seriatim for all 13 weeks; 105,699, 167,859, 188,758, 176,860, 167,315, 154,774, 181,945, 183,438, 190,291, 178,696, 181,008, 161,602, 157,771. Radios went down also in final week of quarter — to 319,926, lowest since New Year week. Factory inventories as of March 30 were 143,777 as against 136,037 preceding week. Week's breakdown showed 173,017 home radios, 114,848 auto, 32,061 portables. For quarter, radios totaled 4,298,025 — weekly figures seriatim hav- ing been as follows: 209,792, 338,520, 342,586, 344,216, 322,855, 322,300, 353,689, 326,606, 367,322, 355,044, 364,916, 330,253, 319,926. INVENTORY PRORLEM STILL CLOUDS TRADE: It's still a "sticky" market — with April ' s baseball , huge manufacturer advertising-promotion, more low-end sets the prime hopes for moving swollen TV stockpiles. First post-Easter weeks weren't great shakes for distributors-retailers , by and large, but there were some indications of pickup. Most manufacturers now are determined to bring about better equilibrium between supply and demand — but no one makes any bones about necessity of first clearing up pipelines clogged with estimated 1,000,000 or more sets. A few of the bigger producers say "things aren't too bad," and that "buying is normal for this time of year." One even tells of a major chain dealer reporting biggest Saturday-af ter-Easter sales ever. But nearly everybody is sitting on edge of seat, fearful of panic selling to unload inventory. So far, only Majestic among the majors (see Topics & Trends) has followed outright Admiral's example (Vol. 7:12) in cutting prices of low-end models, with Emerson and Hallicraf ters making price pitches via 14-in. models (Vol. 7:13), Air King out with new 17-in. table at $199.95, and Meek letting it be known it will announce something radically new next week. Price-cutting and bargaining at retail stores continue commonplace, but distributors seem inclined to hold tight as long as credits permit — on advice of factories that shortages are still in prospect. At the factories, defense orders haven't materialized large enough to pre- clude shorter work weeks and/or layoffs. There's scarcely a TV-radio producer who hasn't sheared payroll. Only one major manufacturer we've contacted said (as of Wednesday) it has had no cutbacks; in fact, claimed this week's production would reach all-time high — with "a good mix of sizes" and with "no cutbacks planned unless forced by materials." Everybody else admits cutbacks, reluctantly but frankly — some light, some as heavy as 50%. News wires, trade paper reports, union statements add up to fright- ening reduction of employment in Chicago's many TV-radio plants particularly. There's still strong school of thought — bolstered by NPA reports — that insists shortages are inevitable eventually, as voluntary cutbacks and enforced materials limitations begin to take their toll. Components may seem plentiful now, but they won't remain so. Even more significant than steel-copper-cobalt reductions will be nickel shortage that must inevitably hit tube production (see p. 5). Yet in face of this, there's curious anomaly of DuMont's reduction in prices of its CR tubes. Tube bottleneck — and nickel could force it in both picture and receiving - 9 - tubes — could very well mean shortages of sets by time present pipelines are cleaned out and usual mid-summer introduction of new models is due. Few are talking about them — though Sylvania has announced new models for May, Westinghouse for June, latter including new 24-in. — but it appears certain Chicago Furniture Mart June 18-28 will bring forth quite a few new models. ZENITH UHF CLAIMS AGAIN RAISE STIR: Zenith this week dusted off its old ill-fated "obsolescence" campaign of 1949 (Vol. 5:11, et seq) which was stopped in its tracks at that time by one speech by FCC Chairman Coy. In full-page ads in TV cities. Zenith took somewhat more cautious tack this time. It angered rest of industry, all right, but so far has kicked up much less uproar than last time. Ad reads: "The FCC has announced plans for 1807 new TV stations — the majority in the new ultra-high frequency channels. Zenith — and Zenith alone guarantees that every TV set it has ever built and sold to the public has built-in provision to receive these new stations without the use of any converter or adapter." What Zenith refers to are "uhf strips" to replace vhf in its turret tuner. Reactions of manufacturers, to what seems to be beginning of sustained Zenith campaign, has been in form of sales "ammunition" to dealers — but no counter ads, no appeal to Federal Trade Commission, etc., as was case in 1949. "Misleading" is mildest of words used by other manufacturers and tuner makers to characterize ad. Generally, they object to: (1) Implication that "Zenith alone" can achieve lihf with strips. (2) Implication that uhf performance, with "strips," would be comparable with present vhf. Most turret tuners are equally adaptable, other manufacturers contend. For example, Glenn Swanson, president of Standard Coil Products (which has built over 4,500,000 tuners for Admiral, et al), relates how Zenith was invited to showdown in New York's Warwick Hotel, in connection with Fortune Magazine June 1949 article on Admiral (Vol. 5:22). He said engineers did simple strip-replacement job on Admiral set, but that Zenith declined side-by-side comparison. This week. Admiral's reaction to Zenith ad was to rush memo to dealers, giving them this answer to customers' questions: "While other manufacturers have claimed 'exclusive' provisions for uhf, the fact is that Admiral pioneered in the development of the turret tuner which provides for adaptation to uhf reception by the simple expedient of easily replaced snap-in coil inserts." Admiral may also use small slug in ads, calling attention to adaptability. ^ ^ ^ ^ RCA's answer was detailed statement sent to distributors, who were urged to disseminate it to dealers. Gist of report : (1) Any vhf receiver will require modification to get uhf. Bridgeport ex- periments "proved conclusively" that use of converter is best. (2) RCA will build such converter — "competitively priced." (3) All conversions mean additional cost, including additional antenna. (4) FCC hasn't yet finalized uhf allocation. (5) "Large-scale telecasting of uhf will not commence before late 1952 or early 1955," because of time needed for transmitter and station construction — "aside from delays which may be caused by shortages of critical materials." (6) "When uhf broadcasts commence, RCA Victor, and we assume other manufac- turers, will have available an adequate supply of high quality converters for pres- ent vhf receivers, assuring full-band reception of all the uhf channels without sacrificing any of the present vhf channels." Others are telling dealers sam.e or similar story, assuring them they can advise customers sets are by no means obsolescent, may readily be converted. Performance of Zenith strips is eyed dubiously by most manufacturers, some 10 - of whom said they had actually tested them, compared them with their own. But tests by FCC labs, reported by Edward Chapin during allocations hearing (Vol. 7:5), appear to indicate Zenith performance about same as that of other units tested — GE, RCA, DuMont. Chapin's general conclusion regarding uhf sets then was; "Considerable progress has been made by the receiver manufacturers in their efforts to develop useful receiving equipment for uhf service, particularly in the direction of adequate sensitivity. However, at this time it is most apparent that there is considerable difficulty with oscillator radiations and spurious responses." Fortunately and wisely, FCC tailored its proposed uhf allocation plan (Vol. 7:12-13) to minimize problems of oscillator radiation, greatly simplify job of designer and manufacturer. It's too early to gauge effect of Zenith ads on public, but one big distrib- utor reports two "irate" groups in his area: "(1) Zenith owners who just can't be- lieve that uhf isn't here, or that they're not all set to receive it. (2) Non-Zenith owners who suspect that they may have been victimized, because they think uhf is upon us and they're not prepared for it." But, by and large, manufacturers don't anticipate repercussions of kind at- tending 1949 whoop-de-do for simple reasons that (a) uhf service is still far off (see p. 2), and (b) any company with a name to protect and service contracts to ful- fill will certainly see to it that past as well as future customers are protected. PATTERN OF TV-RADIO PRICE CONTROLS: Inclusion of TV-radio in retail price regula- tions (CPR-7) announced this week is only one step in controls that will set com- plete price regulations for TV-radio industry. Next step will be price control regulations covering manufacturers, due to be issued shortly — probably within week. Regulations for wholesalers are also due about then. TV-radio manufacturers at that time will be able to establish ceiling prices for each step in distribution system — for distributors, retailers, public. In fact, manufacturers' regulations are considered much more important than this week's move putting retail margin-type control over TV-radio-phonograph sets, replacement parts, accessories as of April 30 and removing these items from Jan. 25 general price freeze (Vol. 7:4). Rollback in prices may occur when manufacturers' regulations are issued — certainly where present lists are too far out of line with present costs. Mainly, squeeze will be on profit margins, since forthcoming manufacturers' rules likely won't permit continuance of same margins, percentagewise, as at present. With TV-radio products under CPR-7, manufacturers may apply to Office of Price Stabilization for dollars-and-cents ceiling prices. This can be done under Section 43 of CPR-7, which is special provision for "branded" merchandise (Vol. 7:9). CPR-7 is essentially a margin-type regulation for retailers. When manufacturers' regulations come out, they will permit dollar value of increases in materials and labor costs to be added to base period selling price to establish ceiling price. Base period will be "best" quarter for the year ending June 1950. Increases in costs will be permitted on materials to December 1950; for factory labor, to current payrolls. However, since TV-radio lines today are not same as during base period, manufacturers will have to figure complicated formula to arrive at ceiling prices of sets now in lines. This will involve a markup-type of calculation for present sets that are comparable to base period sets. Recalculation of these ceiling prices will be necessary several months after manufacturers' regulations are issued. Reason for this is that manufacturers' regu- lations will also apply to suppliers whose prices, too, may be rolled back. This would mean far higher markup margins for manufacturers than they initially figured and which OPS desires. Everyone at OPS vows he doesn't want to hurt any company or industry. Regu- 11 lations won't pinch TV-radio too hard, officials say. If it does, OPS will attempt to do something about individual hardship cases. If industry as whole gets hurt, tailored regulations for TV-radio can be formulated and put into effect. Both such adjustments will take profits into account. OPS experts don't think TV-radio will want specific industry rules, feel forthcoming regulations are pretty good for this industry. Trade Miscellany: “Treble the area coverage” of each TV station is claimed for new high-sensitivity receiver that John Meek is inviting newsmen to see in chartered plane flight April 12 from Chicago to Indianapolis, Milwaukee, possibly Deti’oit; it’s good for 140 to 150-mi. reception, he claims . . . Belmont (Raytheon) reports April cutback of 30-35 <;f, more if necessaiy in May and June; about 70 ''4 of its production is for Raytheon brand, remainder for Montgomery-Ward, Western Auto, Gamble-Skogmo and other private labels . . . Retailing DaiUj (April 2) re- ports big private-brand promotions being prepared by dept, stores, with offers of 17-in. tables at $179, open con- soles at $219 or $229, consoles with doors $269; 20-in. tables at $249, open consoles $299. New sets and prices: Majestic cut price on 17-in. leatherette table from $239.95 to $199.95; 17-in. plastic front console fi’om $299.95 to $269.95 . . . Stromberg- Carlson has 17-in. table at $299.95 . . . Air King has new 17-in. table at $199.95 . . . Macy’s this week advertised 17-in. Hyde Park table at $189 . . . Cadillac (Vol. 7:7) has 17-in. table at $189.95 . . . Both Jackson Industries and Trans-Vue have new “promotional line,” with same sets ' and prices: 17-in. table $199.95, console $239.95, 20-in. table $249.95, console $299.95. Trans-Vue sets are made by Jackson. I Trade Trends: Census Bureau’s monthly summary of retail trade in larger establishments in 45 cities over 100,- 1 000 population shows TV-radio store sales were down 6Vr in February from January, but 10% ahead of Febi'uary 1950 . . . New York Herald Tribune survey of leading local dept, stoi-e sales in Mai'ch shows TV-radio off IVc to 71 Oe from same 1950 month, but one store repoi’ted 131% I increase . . . Washington area’s appliance sales leader last I year was TV, says local Electric Institute, accounting for I $19,115,000 vs. refrigerator sales of $16,200,000. About 800 employes at 4 RCA plants reported “tem- porarily” laid off due to materials restrictions and change- over to defense production; plants are in Indianapolis, Bloomington & Marion, Ind.; Canonsburg, Pa. . . . CIO’s , International Union of Electrical Radio & Machine Work- ers (lUE) April 3 won vote in RCA Victor plant in i Camden, will replace left-wing UEW which CIO recently J ousted . . . RCA spokesman says nothing to reports its ( advertising account will switch from J. Walter Thompson 1 to Blow. I Upcoming Meetings: RTMA and Canadian RMA at ;| Seaview Country Club, Absecon, N. J., Api-il 12-13 . . . 1 Radio Pioneers, Hotel Stevens, Chicago, April 17 (during ( National Assn, of Broadcasters convention), with RCA’s ’ Sarnoff accepting Radio Hall of Fame Award in memory ; of Marconi . . . Parts Distributors Conference & Show, tj Hotel Stevens, Chicago, May 21-23 . . . National Appliance ' & Radio Dealers Assn., Hotel Stevens, Chicago, June 25. First on uhf bandwagon among receiving antenna ' makers is Clear Beam Television Antennas (Pete Wald), I <)18 No. La Brea, Los Angeles, which plans production of 1.3-iii. unit to retail for $2-$3. Company also makes lead- I in wires, including open-wire type claimed to have l/6th I as much loss as conventional lead-ins. Trade Personals: Charles E. Krampf succeeds Bert Conway, resigned, as executive v.p., Aei'ovox, continuing also as president of Electrical Reactance Corp. . . . John Kuneau, who joined Philco in January from J. Walter Thompson Co. to handle public relations, advanced this week to v.p. . . . W. A. Weiss, since 1947 mgr. of Sylvania receiving tube plant in Emporium, Pa., named mgr. of its new $1,000,000 receiving tube plant to be ready this fall in Burlington, la. . . . Wm. H. Moore, v.p. of Packard- Bell’s cabinet plant in Santa Ana, transferred to main office as asst, to president on defense contracts . . . Frank D. Langstroth, ex-Lansdale Tube Co., elected president of Starrett Television, succeeding R. D. Burnet, resigned . . . W. B. Whalley, of Sylvania plant at Bayside, L. L, ap- pointed adjunct professor of electric engineering, Brook- lyn Polytechnic Institute . . . John P. Gleason, ex-General Luminescent Corp., assigned by American Structural Prod- ucts Co. to repi’esent its Industrial & Electronics Div. in New York, with offices in Rockefeller Center . . . I. R. (Ike) Lambert, retired RCA general counsel, has moved to Vv^ichita where he is opening law offices; he represents Mary Pickford in applications for TV, having filed 3 al- ready in North Carolina (TV Faefbook No. 12) and plan- ning several more . . . Bernard Wolbarst, handling com- munications for Time Inc., elected v.p., Press Wireless Inc. . . . Ernest Marx, chief of DuMont receiver division, returned March 30 from month’s business tour of Europe and South American TV cities . . . R. V. Bontecou ap- pointed to new post of product mgr., GE Tube Divisions, Schenectady. ■ Washington’s provocative TV advertising of “sales, clearances, promotion” will have to be cleared with local Bettor Business Bureau, beginning April 10. In letter this week to all dealers, BBB informed them all 4 Washington papers have agreed to submit such copy to it for ap- proval before insertion; asked dealers to submit such ad- vertising to newspaper at least 3 days before publication date. BBB letter refers to last year’s standards (Vol. 6:15,23,26), “backsliding” that cropped up during sale ads last few weeks (Vol. 7:11). It’s believed this is first time newspapers and BBB have cooperated to screen TV ads before publication, although practice is not unknown on other products. An image orthicon film converter, selling for $270, is being offered by Television Accessories Co., 2514 Camino Real, Arcadia, Cal. Owner Wes Turner claims new device permits conversion of any image orthicon camei-a into film camera “within minutes,” says Los Angeles KECA-TV, has used converter daily since last June 22. Advantages, says Turner, are: “(1) No more iconoscope tube or camera worries. (2) No shading to bother with. (3) No edge flare. (4) No chalky faces. (5) No abrupt changes in picture level with scene changes. (6) Wide compensa- tion for light or dark prints. (7) Allen wrench only tool needed.” R'l’M A members .sold 6.31,080 pieliire lubes in February — 9(5 V (if them 16-in. (jr larger, 82'',; of them i-ectangular — valued at $17,555,375. Number is 9(1. greater than Janu- ary’s 580,317. 12 - NARTB-TV committee may choose department’s paid director (probably $35,000 a year) at meeting called Satur- day before NAB convention, April 14 — with FCC Chair- man Coy still among those to be considered, but consider- able opposition to him now because of his opinion in the vote favoring TV channels for “educators” (for text, see TV Allocation Report). Also, thei-e’s some question now whether he would prefer that job as against seeking- reappointment when present term expires June 30. Choice is in hands of 5 men: George Storer, Fort Industry Co.; Clair McCollough, WGAL-TV & WDEL-TV; Robert Swezey, WDSU-TV; Campbell Arnoux, WTAR-TV; Paul Raiboui-n, KTLA (Paramount). Meanwhile, parent NARTB chose as its $40,000 paid president Harold E. Fellows, CBS New England director and manager of its WEEI, Boston; he takes office June 4, succeeding Judge Justin Miller, who becomes chairman and general counsel. Phonevision’s 90-day test authorized by FCC among 300 Chicago families ended March 31, with Zenith’s E. F. McDonald reported elated over results. Next step, pre- sumably, is application to FCC for formal rule-making hearing to permit pay-as-you-look system of TV on com- mercial basis. Zenith hasn’t applied yet, however, but has invited commissioners and key staifmen to witness demon- stration in Chicago April 17 during NARTB convention. Before it goes to FCC, results of observations by U of Chicago National Opinion Research Council will pre- sumably be made ready. Movie industry, meanwhile, shows little more enthusiasm than before, and telecasters seem apathetic — particularly now that their time is at premium and they’re moving into profitable operation (Vol. 7:13). Latest wrinkle in Zenith’s continuing promo- tional campaign is metered-mail puff reading: “Zenith Phonevision can bring you the best TV for low cost enter- tainment.” How FCC’s statement about films for TV (Vol. 7:13) applies to theatre o-wners is object of probe by 3-man Theatre Owners of America committee, set up at this week’s TOA board meeting in Washington. Members of committee, who will seek meeting with FCC chairman Coy, are: Gael Sullivan, TOA executive director; Julian Brylaw- ski, V/ashington exhibitor; Marcus Cohn, Washington at- torney. TOA theatre-TV enthusiasts look for hearing on request for frequencies sometime this fall. New CBS color promotional effort will be demonstra- tion for Washington area servicemen in U. S. Chamber of Commerce Auditorium, 7 p.m. April 13, presumably first of series around country. CBS is working with local Rucker Radio Wholesalers; CBS consultant Richard Mahler will run show. CBS has also extended its product dem- onstration series (Vol. 7:11), conducting showings for executives of Congoleum -Nairn, Chesebrough, Wamsutta Mills, Borden, Duffy-Mott, Esso, Wildroot. Only application for new TV station this week was from KSWO, Lawton, Okla., for Channel 11. This makes total of 396 applications. Request of WPDQ, Jacksonville, for reinstatement of CP it relinquished in 1949 (Vol. 5:19, 22) -was denied by FCC. It was told to reapply. [For further details about applicant, principals, etc., see TV Addenda 12-M herewith; for listings of all applications to date, see TV Factbook No. 12, with Addenda to date.] Defense Mobilizer Charles E. Wilson will be featured TV luncheon speaker April 19 at NARTB convention in Chicago. He will speak from Washington over closed TV circuit, be seen on 30-in. DuMont sets. Andrew W. Bennett, 56, W’ashington radio attorney, died April 3 in Stuait, Fla., where he had lived since dis- solving his partnership recently with John A. Mason, re- called to Navy. PGfSOnsl NoIgS! Joseph V. Heffcrnan, RCA v.p. and gen. attorney, appointed NBC financial v.p.; he’s suc- ceeded at RCA by Robert L. Werner of his staff, whose title is gen. attorney . . . Vernon Brooks, operations mgr. of WGN-TV, Chicago, has resigned . . . Lew Frosl, a.sst. to John K. West, v.p. in charge of NBC Westeni Div., ap- pointed director of network operations, Hollywood . . . John W. Brooke promoted to Eastern TV sales mgr., George Stanton Midwest TV sales mgr.. Free & Peters, under TV v.p. I. E. (Chick) Showerman . . . Jack W. Brand named executive producer, WENR-TV and ABC-Central Div. . . . Robert F. Laws named sales mgr., KECA-TV, Los Angeles, in addition to being gen. sales mgr. of ABC Western Div.; Tom Sarnoff named sales supeiwisor and asst, to Mr. Laws, and L. D. Larimer placed in charge of TV national spot sales . . . Tom Knode, ex-NBC-TV sta- tion relations, now with WIVI, Virgin Islands . . . George E. Simons has resigned as Crosley adv. mgr. to become sales v.p., John Sutherland Productions Inc., Hollyw^ood . . . Walter H. Smith, ex-CBS and Young & Rubicam, named marketing-research v.p., Kastor, Fan-ell, Chesley & Clifford Inc. . . . Jeff Selden promoted to T\’’-radio dept, director, Arnold Cohen agency, N. Y. Station Accounts: American Vitamin Associates Inc., which has had exceptional results introducing its “Thya- vals” and “Oi-vita” via West Coast TV, will not only spon- sor Cubs and White Sox games on WGN-TV, Chicago, thru The Counselors, Hollywood (Vol. 7:13) but has also pur- chased 30-min. Leo Carillo Shoiv (kine) and three 15-min. Class A periods on that station — said to be largest single time sale ever made in Chicago . . . Sears Roebuck local stores throughout country turning more and more to TV, with these time purchases announced in New York area this week: Shopper's Corner, Tue. & Fri. ll:45-noon on WABD; sports on WNBT; participations in Margaret Arlen Shoiv on WCBS-TV; hour film weekly on WATV; 2 films weekly on Night Owl Theater on WPIX . . . Grosset & Dunlap (book publisher) takes Mon. 11-11:15 p.m. on WABD, New York, for We Challenge Your Memoi-y, thru Madison Adv. Agency . . . Family Circle Magazine, pub- lished by P. K. Leberman, who formerly owned Seattle’s KRSC-TV (now KING-TV), preparing TV film spots to promote sales through chain food stores . . . Add baseball sponsorships (Vol. 7:13): Burger Beer, Columbus Red Birds, WLWC . . . Add dept, store sponsorships, Rike- Kumler, Dayton, Shopping with Cornelia, 1-1:30 daily on WLWD . . . Among other advertisers currently reported using or preparing to use TV: Survival Inc. (paint that prevents flying glass), thi-u Klores & Carter Inc., N. Y.; Bu-Tay Products Ltd. (Rain Drops water conditioner), thru Brisacher, Wheeler & Staff, Los Angeles; Harry T. Campbell Sons Corp. (Sakrete dry mix concrete), thru H. Lee Hoffman Adv., Baltimore; Air King Products Co. (TV, radio receivers), thiai Bennett, Walther & Menadier, N. Y.; Kendall Foods Inc. (dog foods), thru Dan B. Miner, Los Angeles (KTLA); Zippo i\Ifg. Co. (Zippo lighters), thru Geyer, Newell & Ganger, N. Y. (WCBS-TV); American Cyanamid Co. (Superset wrinkle-proof fabric), thru Roy S. Durstine, N. Y. (WCBS-TV) ; Cinch Products Inc. (cake mixes), thru Elwood J. Robinson Adv., Los .\ngeles (WCBS-TV); Clean Products Co. (Clean wallpaper cleaner), thru Byer & Bowman Adv., Columbus, 0. (WDTV); Liquinet Corp. (Liquinet liquid hair net), thru A. Martin Rothbardt Inc., N. Y. (WCBS-TV); Roux Dis- tributing Co. Inc. (Roux color shampoo), thru Dundes & Frank, N. Y.; Orange-Crush Co. (Old Colony quart pack- age) (WGN-TV & WBKB); James Kiami Chemical Corp. (Weather Seal auto glaze), thru Product Services Grouj), N. Y.; Telegift Inc. (gifts-by-wire service), thru Lewin, Williams & Saylor, N. Y. *UBLISHED WEEKLY BY RADIO NEWS BUREAU, 1519 CONNEQICUT AVE. N.W., WASHINGTON 6, D.C. TELEPHONE MICHIGAN 2020 • VOL. 7, NO. 15 April 14, 1951 In This Issue: ( CBS Springs Surprise AM Rate Cuts, page 1. ) Whys & Wherefores of CBS-Hytron Deal, page 2. 1 FCC Eases Allocations Deadlines, page 3. ^ Bridgeport Winning UHF ‘Converts’, page U- Crosley’s ‘Ultratuner’ Scores Hit, page 5. Tighter Nickel Means Fewer TV-Radios, page S. NPA Pledges Action on Repair Parts, page 9. Topics & Trends, Financial Reports, pages 10-11. Editor’s Note: News of Controlled Materials Plan, vitally affecting every phase of TV-radio-elec- tronics manufacture, is included in special Mobilization Electronics Report ( white) section herewith. CBS SPRINGS SURPRISE AN RATE CUTS: Oddly enough, am radio’s league-leading CBS is first to crack network rates — an out-of-the-blue announcement April 12 stating that, effective July 1, rates for 8-10:30 p.m. network time will go down 15%, for 1-8 p.m. and 10:30-11 p.m. down 10%. It v/as tacit, though not expressed, capitulation to advertiser demands for reductions on basis largely of TV inroads on audience. Decision followed disclosure of CBS-Hytron deal (see p. 2) by one day, came as complete surprise to most affiliates right after special meeting of Affiliates Advisory Board headed by "Ike" Lounsberry, WGR, Buffalo. Presumably board wasn’t unanimous in agreement, and CBS officials declined further comment. CBS affiliates contacted around country expressed astonishment in light of high level of both CBS and their own billings. Though NBC had "no comment," there was irony in fact that network, more openly committed to TV, attempted to do same thing last December but backed down when affiliates howled (Vol. 6:50, 7:1). Sudden CBS move may have been precipitated by rumors ABC & MBS were about to cut rates and NBC is still bent on doing so. Their cuts are now deemed certain, but CBS wants to set pattern, standardize cuts, hold radio leadership. Ironical, too, is fact CBS continued first 2 months of 1951 to top rivals in network billings — Jan. -Feb. FIB figures showing CBS total of $12,972,841 vs. NBC * s $9,947,573, ABC’s $5,734,166, MBS’s $2,969,592 (p. 2, Vol. 7:13). All but CBS were down from same 1950 period — but apparently a general downward trend was betokened. During 1950, CBS led by far, with $70,744,669 to NBC's $61,397,651, ABC's $35,124,- 625, MBS's $16,091,977 (p. 5, Vol. 7:3). Better-positioned AM stations generally, with spot and local booming, say business is still at all-time high — and Detroit's powerful WJR, CBS affiliate, only this week reported first quarter sales far ahead of same 1950 quarter, profit down only because of higher taxes (see Financial & Trade Notes). Reasoning behind network rate-cut now, as stated by CBS sales v.p. Jack Van Volkenburg in April 13 interviev;, runs something like this: Advertisers are increasing resistance to radio. At present radio rates, it's hard to interest new advertisers in AM medium. ANA and individual sponsors have been pressing for rate cuts insistently during last year (Vol. 6:14-15,29-31; Vol. 7:11). Reduction should stimulate interest of old and new advertisers, main- tain radio's position as "best buy in advertising." But that doesn't alter objections, freely expressed by CBS affiliates, to across-the-board rather than selective cuts in TV markets only; to fact that most of them are heavily booked, indeed hard put to it to clear time for more commercials. And many simply don't like idea of "capitulating" to claims made for TV. This much seems sure : AM network rate cuts, now-documented facts of TV 1 AC1 W*r VT. - 2 - inroads on audience and sponsors, TV’s fast-building dollar volume (Vol. 7:13), feeling among broadcasters that telecasting is their natural heritage albeit so very few would venture into it pre-freeze — these factors will combine to intensify eager quest for new TV stations and demand for speedier action on freeze. WHYS & WHEREFORES OF GRS-HYTRON DEAL: These would seem to be factors which finally decided CBS to plunge into the TV-radio manufacturing business by acquiring Hytron Radio & Electronics Corp. , of Salem, Mass. , sizeable tube manufacturer, along with its receiving set manufacturing subsidiary Air King Products Co. , Brooklyn: (1) Simple and natural quest for profit — desire for share of an industry whose boom seems temporarily stayed (see p. 8) but whose potential is enormous, once the defense economy relaxes and FCC really unfreezes. (2) To capitalize on its own great trade name, and its great promotional abilities and facilities. It's reasonable to assume receivers will be made bearing "CBS" or "Columbia" brand names, publicized heavily via its AM & TV networks. (3) Buildup of resources in hope that its FCC-approved color system will eventually prevail. CBS wants to be prepared to produce color receivers itself if, as seems likely, rest of manufacturing industry persists in its lack of enthusiasm for any non-compatible, mechanical system of colorcasting. Issue is now before U.S. Supreme Court (Vol. 7:13). (4) Intense rivalry with RCA, whose subsidiary NBC it has outstripped in radio billings while lagging far behind it in TV (see p. 2, Vol. 7:13). CBS borrow- ings of $10,000,000 from Prudential and $5,000,000 from Metropolitan Life this week are obviously designed to help it win lost ground in TV and to finance expansions, notably its costly new Hollywood Center. Loans had nothing to do with Hytron deal, said CBS president Frank Stanton, and this would seem to be borne out by fact that no money is involved — CBS simply exchanging 31 shares of its stock (quoted at around 30 on N.Y. Exchange at time of announcement) for 100 shares of Hytron (quoted as around 9)2 over the counter). The Hytron quotation remained firm (9)4 bid, 10 asked) through week, but CBS gained 3 points up to Friday's closing. Stanton also said deal did "not particularly have color in mind" — also quite likely since (a) Supreme Court decision is tossup, and (b) the preponderant pro-compatibility, all-electronic color folk (including Hazeltine, GE, DuMont, Sylvania & Philco as well as RCA) have improvements up sleeves which FCC can hardly refuse to consider after the legalisms are cleared away. Deal wasn't entirely to liking of whole CBS corporate family, still needs approval of both companies' stockholders. But it may give CBS same hedge against possible shrinkage of still-lush AM broadcasting, and support for costly new tele- casting, which its rival NBC enjoys — namely, capacity to make up initial TV costs and losses from profitable (up to now, at least) receiving set and tube business. For fact is that TV receiver and component manufacture last year hit $1.7 billion ; that 6-year-old telecasting industry, with only 107 stations, last year enjoyed dollar volume of more than $105,000,000, or about 25% of 30-year-old radio broadcasting with 2000-plus stations ; and that TV's 4 little networks, linking mere 47 cities, are already doing half the dollar volume of AM's 4 big networks linking practically every market area of the land (Vol. 7:13). CBS has long cast eye on manufacturing business — in recent years had looked into Capehart-Farnsworth plant (later absorbed by IT&T) , Sylvania's Colonial plant in Buffalo, Raytheon's Belmont plant in Chicago, probably others. Ironically, CBS becomes patent licensee of RCA, since both Hytron tubes and Air King receiver production are licensed — and CBS will also nov/ have facility to manufacture RCA tri-color tube which it sorely needs for its color system and which RCA has promised to permit licensees to make and use, having already sent designs. >}: Financially. CBS is strong indeed -- ended 1950 with highest gross income in its history, $124,105,408, but with profit down slightly ($4,105,329, or $2.39 per share) due to taxes that were higher than profits (Vol. 7:12). At end of 1950, CBS 3 earned surplus was $28,572,222. Of 1,500,000 Class A $2.50 par common shares au- thorized, 961,278 were outstanding; of 1,500,000 Class B, 948,674 were outstanding. Net earnings record shows declines in recent years. In 1949, CBS grossed $105,597,580 and netted $4,184,079 ($2.44) ; 1948, $98,377,258 & $5,041,682 ($2.94); 1947, $101,045,647 & $5,920,104 ($3.45); 1946, $91,996,822 & $5,795,896 ($3.37) ; 1945, $86,257,385 & $4,308,627 ($2.51) plus $1,- 037,014 (600 per share) derived from sale of WBT, Charlotte; 1944, $84,905,830 & $4,678,361 ($2.72). [For officer stockholdings, see p. 16, Vol. 7:13.] How much of CBS gross and net derive from subsidiary Columbia Records Inc, has never been disclosed — but recording firm is said to have been fairly profit- able last year along with rest of that industry. Hytron has won good position in receiving tube manufacture, riding TV boom and recently expanding with nev; plant in Newburyport, Mass. It's also strong in picture tubes, though not in class with RCA, Sylvania, GE and DuMont volume-wise. It has not indicated how much dollar volume is accounted for by Air King, but that company is probably toward bottom of industry's Big 20 set producers (Vol. 6:8) and has been major private-label producer for Sears Roebuck, Firestone, Rathe, et al. It also has small Brooklyn cabinet-making subsidiary. Royal Wood Products Mfg. Co. Hytron's consolidated 1950 sales totaled $40,542,155, net profit $5,548,871 , or $1.65 per share on 2,004,892 shares outstanding. Its earned surplus at end of year was $2,584,694, net working capital $6,492,132. It split stock 2-1 in 1950. Last year represented huge jump from preceding operations: 19^, gross of $16,226,143 and net of $565,171 (450 on 1,262,422 shares) ; 1948, $4,159,714 & $63,- 853 (110 on 573,835 shares); 1947, $4,153,288 & $28,971 deficit; 1946, $5,013,143 & $30,603 deficit; 1945, $5,257,257 & $4,759 deficit; 1944, $5,264,088 & profit of $131,314 (760 on 173,835 shares). It's probable that acquisition of Hytron, with considerable plant facili- ties, will give CBS better tax base than now, for broadcasting represents far smaller plant investment in relation to volume than manufacture. As CBS figures show, its volume has gone up consistently, but profits have slipped — largely due to huge talent investments, resulting from raids on other networks, but also due to higher taxes (particularly 1950). Hytron-Air King operations, joint statement says, will continue under present managements, with 4 of their executives going on CBS board. These will in- clude Lloyd H. Coffin, chairman, and Bruce A. Coffin, president, of Hytron, and David A. Cogan, president of Air King. FCC EASES ALLOCATIONS DEADLINES: industry got requested breather, in vhf-uhf alloca- tions proceedings, when FCC granted postponement of deadlines for comments on allo- cation plan and beginning of city-by-city hearing. Largely because of conflict with NARTB April 15-19 convention. Commission moved comment deadline from April 23 to May 7, opposition deadline from May 8 to May 22, start of city-by-city hearing from May 23 to June 11. Most applicants will use delay in dogged hunt for more vhf channels. Intentness on vhf is understandable, in light of simple uncontroverted fact that uhf can't possibly get going on any meaningful scale for many months, probably sev- eral years. Yet, on other hand, additional vhf stations won't blossom forth in any hurry either (Vol. 7:12-14). Nevertheless, uhf outlook brightens daily, as manufacturers pull wraps off remarkable results quietly achieved in laboratories over past few years, and as additional propagation data indicates probability of very acceptable services areas for uhf in many, if not most, areas (see stories on pp. 4 & 5). Another Senator got into educational TV act this week — Sen. Wm. Benton (D-Conn.), onetime advertising mogul (Benton & Bowles) who controls Muzak. In long speech on Senate floor April 13, he introduced S. Res. 127 calling for 90-day "quick review" of question by Interstate & Foreign Commerce Committee. He wants FCC to hold off final decision until Senate receives and studies - 4 - Committee's findings on: FCC's allocations criteria, program trends, program con- trol, prospects of program financing by Govt, and other non-profit sources, legisla- tion needed. "I think TV is too vital to the future of America," he said, "to be rele- gated at this time, without further study by Congress, to the custody of any govt, agency or bureau. Without implying any criticism of the FCC...for which I have the very highest regard, I suggest that the Congress [should] inform itself..." Sen. Benton also plugged Phonevision and Subscriber-Vision, saying; "I suggest that there is nothing at all out of tune with our system of free enterprise in the suggestion that radio and TV might sell its service, instead of giving it away... I happen to believe it is a major business opportunity..." Chiming in on Sen. Benton's educational pitch were Sen. John Bricker (R-Ohio) and Sen. Lester Hunt (D-Wyo.). Opposition to vhf education reservations is coming from some educators them- selves. U of Kansas City president is reported to have consulted with city's appli- cants and written FCC that university didn't expect to get into TV for many years, thus would be satisfied with uhf reservations. Pro-reservation comment by one of TV's well-placed "ins" — WBEN-TV's A. H. Kirchhofer, whose Channel 4 would remain intact — as quoted in TV News, Buffalo; "The provision for educational channels is a forward-looking step. I hope the educational institutions will be more successful in their utilization than they were with AM or FM. . . " BRIDGEPORT WINNING UHF 'CONVERTS': Another visit to Bridgeport, which is turning out to be the "nursery of uhf," thanks to the RCA-NBC "guinea pig" station (Vol. 6;5 et seq) , reveals that just about every set and tuner maker and many of his brothers of the broadcasting business have been to town to run tests. Our junket this v;eek was mainly to have look at Crosley's new "Ultratuner" (see page 5), but we took occasion to check on what others have done in and around Bridgeport. By and large, the reports are favorable. Unusual focal point of activity is Bridgeport home of Rudy Frank, promotion manager of New Haven's WELI (AM), owned by veteran broadcaster Col. Harry Wilder, of Syracuse, who founded WSYR-TV there. Mr. Frank is an absolute convert to uhf, as is his boss, general manager Richard Davis, who told us he and his engineers are thoroughly convinced of uhf potential. This conviction isn't based on mere theory, say Messrs. Davis and Frank. Their engineers have conducted over 500 measurements in station wagon, checked con- verters in 14 homes, over many months. They're satisfied with what they've seen. Mr. Davis can't understand why more broadcasters don't get excited about uhf. "We don't want to cover all of New England," he says. "If we can deliver 20-25 miles, and I knov; uhf can do it, that's good enough for us. A clear channel AI^ station may claim a lot of area, but its listeners are close to home. Same will apply to TV." Mr. Frank has had samples of almost everyone's converters — including Zenith, RCA, GE, Crosley, Philco. Engineers have been running in and out of his house ever since the uhf test station went on air more than year ago (Vol. 5;53). Of converters he's had, some of them early models, he says GE's v;as best but would cost too much to build; Zenith ' s demanded very strong signal; RCA' s drifted most. Philco loaned its single-channel 2x3x4-in. converter (Vol. 6:15), which em- ployed rather expensive crystal. But Frank says RCA's Wenyuan Fan was fascinated with Philco device, worked up one using 300 crystal which could sell for ^2. We saw first-rate uhf pictures on Philco 16-in. set, to which Frank attached different converters. Uhf images were vastly better than vhf from New York sta- tions, 50 miles away, v/hose signals may be rated tolerable. WELI management is so hepped up about uhf that it placed first order with GE for its 5-kw transmitter and helical antenna (Vol. 7:12). Davis has written his - 5 - "uhf credo" for publication in April 16 Broadcasting Magazine. We urge you to read it to get full appreciation of reasons behind his enthusiasm. ❖ Firm optimism about uhf coverage is held by the chief engineer of FCC, Curtis Plummfi-p. Transmitting end doesn't bother him. In April 9 talk to Washington IRE, he ventured: "Success of uhf will be determined at the receiving end." "The uhf data indicates," he said, "that uhf will deliver about the same field strength as the lower vhf channels out to about 25 miles. I recall that in 1945 applicants came crying to us with tale that they had to have Channels 2 to 6, that 7 to 13 couldn't possibly serve their markets. Now, it's the same story — except that they insist on Channels 2 to 13." Defending allocation plan in toto, Plummer said FCC's basic philosophy is to insure reasonable amount of rural coverage and to prevent what happened in AM — gradual hemming in of service areas. Hence FCC's insistence on minimum spacings permitting maximum power for everyone, whether station starts out large or small. Roughly 40-mile radius is regarded as station's service area, he said. 't' T‘ “y* Plummer's worries about receivers should be fast diminishing, as manufac- turers show they can provide good uhf reception — whenever public wants it (see below). And manufacturers' transmitter and antenna developments make it clear they're ready to produce equipment — when applicants want it. GE is pulling out all stops at NARTB convention. It's ready to take orders for 5-kw lihf transmitters and 20-gain helical antennas (Vol. 7:12). Cost of trans- 1 mitter will probably run 20-40% higher than 5-kw vhf, which runs about $90,000. GE also has special deal for small operators — driver stage of the 5-kw unit, complete in itself, with output of 100-125 watts. Amplifiers can be added to I driver as desired — same as with many FM transmitters. Price of little package isn't yet set. GE promises delivery "third quarter 1952," thus lending weight to i predictions that uhf is bound to emerge slowly. RCA is planning to offer 1-kw air-cooled transmitter and 20-gain antenna, but feels it's too early to quote delivery dates or prices. Amplifiers may be added to unit, and antenna is built to take 10-kw input. DuMont has 1-kw unit, but isn't pushing it, apparently feeling that real demand will be for greater powers. CROSLEY'S TILTRATUNER' SCORES HIT: Looks like Crosley did a real job with its uhf converter. It produced excellent picture for newsmen at April 11 demonstrations in Bridgeport. And engineering claims are really quite striking — sensitivity, selec- tivity and stability as good as vhf, if not better. "Ultratuner" is a continuously-tuned converter, covering all uhf, built to sell for "considerably under $50" at present cost levels. It can be attached to vhf , set "in 2 minutes," simply by plugging in and hooking up piece of twin-lead. It has built-in antenna, which performed beautifully on 10th floor of Hotel Barnum — just as well as outside antenna, in fact. And company claims that per- formance in residential areas is even better, due to absence of downtown noise. Tuning is quite simple. Dial on vhf set is placed at spot marked "uhf" and converter is ready to go to work. Dimensions of wooden converter cabinet are 9)4x7x6%-in. Slide-rule dial is about 6-in. long, with 8 equally-spaced channel numbers — 14, 18, 24, 30, 38, 48, 62, 82. Other channels are tunable in between. Tuner has 2 knobs. Switching , between vhf -uhf antennas is automatic. Converters are useful only v/ith vhf sets employing the Crosley type of ! continuous tuner covering all 12 vhf channels plus spectrum between Channels 6 & 7. Crosley estimates there are about 2,500,000 such sets out, including most DuMont and Stromberg-Carlson. Some other types of sets may be able to use it, but many would I require extensive changes first. Basic portion of tuner is made by Mallory. Crosley didn't shilly-shally about its plans. It will make converters when 6 people want them — namely, when signals are available. This will be "late 1952 or early 1953," v.p. John W. Craig estimated. But, he said, "it's ready for production now. It ' s here. " Company isn't particularly interested in selling converters per se, said Craig. Its prime purpose is protection of its own customers and good name. It is conducting institutional ad campaign in 20 TV areas, emphasizing simple converti- bility of vhf sets. But no "selling" campaign is contemplated. "We just want to tell the public what we have," said Mr. Craig. FCC members will be invited to demonstrations "if they're interested." Combination vhf-uhf sets, with everything built in, will be available when needed. They'll cost $20-$50 more than vhf-only, Craig estimated, and he saw "no economic sense in charging customers extra for something they can't use for a long time or may not want or need at all in some areas." Craig took crack at Zenith (Vol. 7:14), saying "misleading advertising and half-statements are worse than outright falsehoods." He said installation of Zenith uhf strips would cost money, including 3-4 hours of serviceman's time, and he pointed out that each uhf strip means one less vhf channel available. * * * * Converter was built from ground up — two engineers under E. J. H. Buzzard working on it for over 2 years. Many new types of components were developed, in- cluding tubes. But all these are now ready for commercial production on standard basis. Buzzard reports. Some tricks are still trade secrets, apparently, including dialing mechanism and automatic vhf-to-uhf switching. Questions by some reporters probably reflected public confusion as to what \ihf means. Apparently, some believe that uhf is an entirely different system of TV, or that it's somehow peculiarly related to color. Of course, latter concept could turn out to be right, if uhf operators in strong vhf markets eventually seize upon color as an "extra" in attempt to offset obvious competitive disadvantage. FCC Chairman Coy, speaking personally, definitely qualifies dictum in now-famous paragraph 20 of Com- mission’s “anti-trust report” (Vol. 7:13-14) — an April 12 press release by Theatre Owners of America quoting him, with permission, as expressing hope that film companies will make special films for TV. FCC repoi-t had said, in effect, that it might go hard on movie applicants for TV stations if it’s shown they con- tinue to withhold their films from TV' — a statement that has aroused whole motion picture industry to anger, lead- ing influential Motion Picture Herald Apidl 7 to headline “Knife in the Back” and editorialize that Congress should investigate “before the FCC commissioners turn them- selves into commissars in charge of what the ‘proletariat’ may hear, see and think.” Said TOA statement following “very satisfactory” meeting of executive director Gael Sullivan, consultant Nathan Halpern and Washington counsel Marcus Cohn with Coy April 11: “Chairman Coy expressed the hope that motion pic- ture producers would produce more films especially made for TV, while continuing to produce feature films designed solely for theatrical exhibition. Chairman Coy recognized that the TV broadcast needs for film to fit advertising seg- ments call for special film product rather than the film features designed specifically for theatres.” TOA statement goes on to say movie company prac- tices mentioned in FCC report “were not intended to, and did not in fact, have any reference to practices of ex- hibitors” and Commission will judge “on a case-to-case basis the qualifications of applicants for TV stations who have been involved in the violation of anti-trust laws or practices which tend toward the violation of such laws.” Coy also is reported to have said FCC report will have no bearing on question of special frequencies for theatre-TV on which hearings are to be held. This backtrack may satisfy exhibitors, probably won’t sit well with producers — none but Paramount as yet show- ing any real desire to become telecasters — for language of FCC opinion plainly suggested release of first-run films “or else.” Actually, it’s exhibitors who don’t want first- run films released to TV, which isn’t in cards anyhow until TV outlets (now only 107 in number) can compete with 18,000 movie houses. Following up sharp editorial in New York Times (Vol. 7:14), its radio editor Jack Gould April 8, in article criti- cal of FCC dictum, suggested FCC “withdraw that part of its policy statement relating to the present practices of Hollywood studios as they concern TV, call a public hear- ing at which it can fairly set forth its own position, hear the full rebuttal of the film industry, and then reach a decision.” Wisconsin GOP Senator Wiley’s criticism (Vol. 7:14) W’as answered April 12 in letter (FCC Public Notice 62856) stating all FCC did was point up “possible conflict of interest” if movie company owned a TV station, but had “made no final judgement.” ■ “TV picturemaking without a camera,” both mono- chrome and color, is slogan of new Telechrome Inc., 88 Merrick Road, Amityville, N. Y. President and chief engi- neer is J. R. Popkin-Clurman, ex-Ha zeltine, who devel- oped inexpensive devices for generating pictures (Vol. 6:8, 27). Organization offers $965 picture generator which “borrows” sync signal out-of-the-air from commercial sta- tion. It also has color gear which can generate and dis- lilay signal for any system — simultaneous, field-, line-, dot-sequential or any variation thereof. 7 Siation Accounis: February TV sponsorships were up 6.1% over January, reports March Rorabaugh Report, with 99 of the 107 stations (60 out of 63 markets) report- ing 1053 national spot schedules, 3611 local-retail sched- ules, while networks reported 215 schedules (NBC 82, CBS 70, ABC 44, DuMont 19). Total of 4740 sponsoring com- pares with 4466 month before. List of network and spot sponsors is published in March Rorabaugh Reports . . . Philadelphia’s WPTZ reports 210 advertisers during March, 82 local, 63 thru national rep, 65 NBC network . . . Hygrade Food Products Corp. sponsoring Cook & Win on WJZ-TV, New York, Tue. & Thu. 4:30-4:45, thru Zan Diamond Adv. . . . CBS Radio Sales reports its new Range Rider film series, starring Jack Mahoney, now locally sponsored on 10 stations, Langendorf United Bakeries taking it in the 4 West Coast TV cities . . . Finnish Govt., to pi-omote tourist traffic on its railways and airlines dur- ing 1952 Olympic Games, planning to use TV and radio, thru Victor van der Linde Co., N. Y. . . . Add dept, store sponsorships: Saks Fifth Ave., with Ed & Pegeen Fitz- gerald, on WJZ-TV, New York, Mon.-Wed.-Fri. 2:30-3; ZCMI Store, Salt Lake City, on KDYL-TV . . . Add base- ball sponsorships (Vol. 7:13-14): Cleveland Indians, piped from WXEL to WBNS-TV, Columbus, for August Wagner Brewery; Washington Senators, piped from WTTG to WAAM, Baltimore, for American Brewery Inc.; Houston Buffs night games on KPRC-TV, for Philco and Henke & Pillot (chain market) ; Miami Sun Sox, on WTVJ for local Frigidaire distributor and spot users . . . Among other ad- vertisers currently reported using or preparing to use TV : Kyron Foundation Inc., thru Melvin, Newell & Rector, Hollywood; Trico Products Corp. (car accessories), thru Baldwin, Bowers & Strachan Inc., Buffalo (WPIX); J. B. Williams Co. (Skol suntan lotion), thru J. Walter Thomp- son Co., N. Y.; Charles E. Hires Co. (Hires root beer), thru N. W. Ayer & Son, Philadelphia; White Rock Corp. (sparkling beverages), thru Kenyon & Eckhardt, N. Y.; Hood Rubber Co. (canvas & rubber shoes), thru McCann- Erickson, N. Y.; Schiaparelli Inc. (men’s toiletries), thru Robert W. Orr & Associates, N. Y.; J. Colonna Bros. (Italian Kitchen bacon cheese), thru Nolan & Twichell Adv., Albany (WJZ-TV); John W. Taylor Packing Co. (potatoes & tomatoes), thru H. W. Fairfax Adv., N. Y. (WJZ-TV); Susquehanna Mills Inc. (mattresses), thru 1 MacManus, John & Adams, N. Y. (WABD); Judson Dun- I away Corp (Expello moth deterrent), thru J. M. Mathes !( Inc., N. Y. (WABD). “TV Is a Good Summer Buy” — 150-page April 9 Spon- < sor makes point with lot of facts. Trade journal com- i' pares 16.8 Videodex rating for 15 network TV shows for August 1950 with 18.5 average for December — drop of It only 1.7. It reports 8 top NBC-TV shows, using Nielsen I ratings, came up with average summer rating of 24.5 vs. .. spring average of 27.4 — difference of only 2.9. Magazine also quotes from Nielsen study showing ■ ' hours of viewing for all 1950 months ranged from high of 1 4.34 hours per day in September to low of 3.57 in August i — not very great dip. Elmo Roper study of TV owners in August 1950, Sponsor says, showed that 73.7 % chose TV I viewing as primary after-supper leisure time activity. 1 TV netwoi’ks are making pitch to keep Class A time I sponsors on during summer. CBS offers 10% discount I for 8 summer weeks in addition to regular 10% discount ifor 52 weeks; also will cut px’oduction charges one-third. ' NBC offers “contributions” as high as $4000 per program toward production costs if advertiser stays on during j summer. ABC and DuMont are said to plan no such in- • ; ducements. All networks feel they’ll have top commercial programs this summer, compared to thin fare in 1950. Corrections to TV Allocation Report Make these changes in your copy of full text of FCC’s “TV Allocation Report” of March 21, as printed by Television Digest and furnished you along with Vol. 7:12 — and FCC engineers assure us that the text will be completely accurate: Page 15: First column, 17 lines from bottom, change for- mula to read: R(T)r=R(T=10)k(T). Second column, 7th line down in paragraph starting “If the distance ...” change formula to read Rd(T=10). Page 23: Ames, Iowa, delete astei’isk (*) from Channel 5. Council Bluffs, Iowa, delete whole item. Kansas City, Kansas, delete whole item. Page 24: St. Joseph, Missouri, add asterisk (*) to Chan- nel 36. Page 27: Wheeling, W. Va., add asterisk (’•’) to Channel 57. Change Nanaime, British Columbia, to Nanaimo. Network Accounts: Bohn Aluminum & Brass Corp. April 29 starts sponsorship of American Forum of the Air on NBC-TV, Sun. 1:30-2, thru Biow Co., N. Y. . . . June 28 is starting date for Blatz Brewing Co.’s Amos ’ri’ Andy on CBS-TV, Thu. 8:30-9, thru Wm. H. Weintraub & Co. Inc., N. Y. . . . Maiden Form Brassiere Co. May 5 moves Faith Baldwin Theatre of Romance from alt. Sat. 11-11:30 to alt. Sat. 12:30-1; will alternate with Seeman Bros. (Air-Wick) I Cover Times Square which has had period weekly . . . Westinghouse will remain on CBS-TV through summer, but from June 18 will substitute West- inghouse Summer Theatre for Studio One, Mon. 10-11, thru McCann-Erickson . . . Northam Warren Corp. (Cutex, Odo- rono, Peggy Sage) May 5 begins sponsorship of 1-1:15 portion of new Laraine Day Show on ABC-TV, Sat. 1-1:30, thru J. M. Mathes Inc., N. Y. . . . McKesson & Robbins Inc. (drug products) June 2 begins Date with Judy, family comedy show, on ABC-TV, Sat. 11:30 a.m.-Noon, thru J. D. Tarcher & Co. and Ellington & Co., both N. Y. . . . Anthracite Institute May 5 starts Better Home Show on ABC-TV, Sat. 6:30-7, thru J. Walter Thompson, N. Y. Personal Notes: Elected directors of Brand Names Foundation this week were Frank M. Folsom, RCA presi- dent; Wm. O’Neil, president of General Tire, Yankee Net- work and Don Lee; Frank K. White, MBS president. . . . Wes Turner has taken leave of absence from ABC to open engineering consulting practice under business name of Westurner Co., 9918 E. Camino Real, Arcadia, Cal. . . . Neal Van Ells, formerly with Indiana AM stations, named program director of WLWD, Dayton, succeeding A, D. Faust, now with WDTV, Pittsburgh . . . Edythe J. Meser- and, asst, director of news and special features, WOR & WOR-TV, elected president of newly formed American Women in Radio & TV . . . Morton Galane, ex-U.S. Patent Office specialist in electronics and TV, has joined Wash- ington law firm of Roberts & Mclnnis . . . Vincent L. Her- man appointed v.p. in charge of TV operations. Jam Handy Organization . . . Harold Azine, ex-KTTV, Los Angeles, named chief of TV Branch, Civil Defense Administration; Stephen McCormick, ex-WOL, Washington, Radio Branch. NBC loses 37 employes to Army at one clip May 1 when network unit reports for active duty at Fort Riley, Kan. Unit is mobile broadcasting company, part of psychological warfare group commanded by Col. Ellswoi'th TI. Gniber of New York Daily Ncu's. Coinm.anding com- l>any is Capt. William B. Busdigon, NBC spot sales; exec- utive officer is Lt. T. M. Thompson, NBC personnel mgr. Trade Report AprU 14, 1951 TIGHTER NICKEL MEANS FEWER TV-RADIOS: Nickel shortage looms so real that it may soon force reduction of TV-radio output in direct proportion to impending cut in raw material supply — at least 50%, possibly even more. That's the current trade forecast from highest govt, sources, to be spelled out in detail by top mobilization officials when they meet with industry representa- tives in Washington next Tuesday (see Mobilization Notes). DO orders already placed would consume 85% of available supply of nickel if they aren't trimmed, as reported here last week (Vol. 7:14). For receiving tubes and kinescopes , there appear to be no all-out substitutes or real shortcuts. Tungsten will be next serious shortage to hit industry — and govt, metals experts say its effects on tube industry could be more crippling than nickel crisis. If condition were merely short-range, this might be welcome news to great number of distributors-dealers with "digestive tracts" figuratively "constipated" with excess of merchandise — but at the factories and among rank-and-file employes the situation presents grim prospects for later this year. ^ ^ ^ ^ Plain, unvarnished fact is that the public, with a few spotty exceptions, has taken a walk on TV buying. Whole trade is in dither. Instead of the 1,000,000 or so TVs estimated in inventories (Vol. 7:14), one of biggest set makers this week calculated nearer 2,000,000. Factory layoffs are spreading, union leaders plenty worried — latter now awake to need for hurrying end of freeze and adding their considerable influence to pressures being exerted for relaxation of Regulation W. Whole trade blames these factors in main for present situation, plus confusion about prices, color, etc. Cutbacks are order of the day, especially since defense orders are coming through in mere driblets. Hardly a receiver, tube or components factory has been lucky enough to escape layoffs. "Long vacations" this spring and summer may be tactic used by some. RCA layoffs at Camden are reported at 1300 to date, mainly recent additions to payroll. Emerson dropped 250 in Jersey City plant. DuMont . al- ready on 4-day work week, this week laid off 500 of 3500 workers in Paterson plants, and Westinghouse dropped 130 off usual 1300-1500 payroll at TV plant in Sunbury, Pa. Others had already cut rolls, notably in Chicago (Vol. 7:13-14). Philco, which has enjoyed fairly steady production pace, issued this statement this week: "Starting April 23, part of TV-radio production of Philco will be cut back temporarily due to an adjustment of production schedules in line with the require- ments of govt, regulations and the spring sales demand. Philco is continuing full production of all govt, work, auto radios, export products as well as refrigerators, freezers, electric ranges and air conditioners." Two-week furlough of 5000 employes is indicated, some of whom may not be called back soon. ❖ 5*^ ❖ Irony of situation is that, if nickel curtailment cuts tube supply and re- duces output of small as well as big radios and TVs, lower production rate may force higher prices because of inability to maintain economies of mass production. Thus if manufacture slows down and even a modicum of demand is maintained, present stocks next fall and winter might be "worth their weight in gold." That's what wholesalers and retailers are being told — but their retort is that it's scant comfort to them while huge credits are tied up in warehouses. Every conceivable sales gimmick is currently being employed to move goods — giveaways of all sorts, even of watches and candy for the kiddies. "Warehouse" and "surplus stock" sales offer even branded merchandise at 20% to 50% off. Yet the only items moving at anything like normal pace seem to be TV table models at $200 and under and radios, especially portables. 8 9 Note ; RTMA auditors failed to report output figures for first week of second quarter at week’s end, as customary — so they won't be available iintil early next week. RTMA members can contact association direct if they're in a hurry. Interesting parallel between TV and automotive unit output is discernible from glance at authoritative Automotive News figures. Both are in same boat now so far as lagging inventories are concerned; both face big second quarter cuts. TV output of 7,465,800 sets last year is matched by 8,004,242 automotive units (6,663,461 passenger cars, 1,340,781 commercial vehicles). First quarter this year, TV turned out 2,196,016 sets as against 1,605,000 same 1950 quarter (Vol. 7:14). Autos totaled 1,982,075 (1,605,611 passenger cars, 376,464 commercial ve- hicles) first 1951 quarter vs. 1,647,942 (1,348,312 passenger, 299,630 commercial). NPA PLEDGES ACTION ON REPAIR PARTS: Long-overdue NPA action to assure replacement parts for TV-radio and other electronic equipment was promised this week by Office , of Civilian Requirements. It's still in preliminary stage, however, and will prob- ably be incorporated into Controlled Materials Plan (see Mobilization Reports). Electronic parts distributors met April 9 with NPA and renewed last month's i plea that manufacturers be permitted to make and sell at least 150% of the number of parts sold for replacement during first-half 1950 (Vol. 7:10). This general plan has been approved by Office of Civilian Requirements, i which is headed by ex-West Coast broadcaster Lewis Allen Weiss (Vol. 7:10). But j first NPA order incorporating the principle has yet to be issued. Distributors made other proposals, and OCR spokesmen say some of them are being drafted in form of recommendations to other NPA divisions involved — in the hope they'll finally end up in orders or directives. The distributors proposed; (1) Base period of steel durable goods order M-47 (Vol. 7:10-11,14) — first 6 months of 1950 — be extended to entire year of 1950, because of phenomenal in- crease in production of TV and other electronic items during last-half 1950. NPA officials say this can't be done, since Defense Production Act provides base period must be "representative period preceding June 24, 1950." (2) Component wholesalers be granted priority to order replacement parts at 150% of base period rate. (3) NPA initiate campaign to salvage obsolete radio sets. (4) All equipment and parts used in maintenance and repair be "simplified," but not to the extent of so-called "victory lines" used during World War II. Dis- tributors' committee will meet with NPA again May 28. FIRST-QUARTER sales and earnings reports of the manufacturers should be good — many better than same 1950 quarter, some perhaps as good as boom fourth quar- ter— but they’re apt to mislead as to near-term trend of the now-lagging TV-radio industry. Unless sudden buying wave sets in, trade seems to be in for slower tempo during spring and summer months. Even if unit volume holds up as more low-priced sets are produced and sold, dollar volume probably won’t — unless defense orders come through faster and larger than now. Yet nobody can doubt TV-radio industry’s long-term prospects. Short of war, good portion of that half of nation’s populace still outside telecasting ranges should begin to get service by latter 1952. Mindless though it has been of trade implications of its dilatory handling of freeze, FCC can’t keep freeze on forever and is now really moving toward ending it (Vol. 7:12 et seq). New stations will have to be built, new-type receivers (in some areas with dual vhf-uhf tuners) will have to be made and marketed. If factory sales reached $1.7 billion last year (about 7,500,000 sets) and retail-installation- servicing trade was $3 billion, it’s fair to assume that kind of m.arket is still in store when artificial restraints like freeze, credit and materials limitations, etc., are lifted. There’s also simple fact that “TV saturation” is far from reality in most of the 63 population areas now served by the 107 existing TV stations (Vol. 7:12). On basis of 60-mi. coverage estimates. Radio & Television Retailing calculates Boston area families with TV sets total 65%, Philadelphia 61%, Milwaukee 60%, New York 57%, Los Angeles 57%, Cleveland 56%, Cincinnati 56%, Minne- apolis-St. Paul 55%, San Diego 48% — to list only top ones. These are the more “heavily saturated” areas. There’s still good proportion of non-TV homes yet to be supplied and replacements yet to be sold in these and other pres- ently-served areas, let alone the new ones to be opened up. a CBS has guaranteed itself a color set maker in ac- quiring Hytron’s Air King (see page 2) — if Supreme Court gives it go-ahead. But Tele-tone, too, says it will “dust off” plans for “slave” unit (Vol. 6:45) upon favor- able Court action. Pi’esident S. W. Gross says “we’ll get into production as soon as we can.” He says he’ll also be ready with uhf when demand arises, but doesn’t see any- thing in it now to lift today’s depressed market. CBS at- tracted big audience (1200-14C0) of servicemen to April 13 demonstration in V»’’ashington of 17-in. drum set (Vol. 6:52), followed by long technical discussion by Edward Noll, TV Technicians Lecture Bureau, Indianapolis. 10 - Topics & Trends ol TV Trade: Govt.’s Regulation W has “killed sales above the $250 level,” said Admiral presi- dent Ross Siragusa at stockholders meeting April 12, and it may be necessary for Admiral to seek bank loans to carry piled-up inventories. First 2 months of this year were good, he said, but March 1 began “definite slump” in company’s TV sales. He blamed 10% excise, higher prices forced by higher wage and materials costs, confusion over color as contributors to slump. It’s still too early to make predictions for 1951, said Siragusa, but present slowdown may affect company’s earnings for year despite brisk appliance business. Plas- tic material shortages particularly affect company’s low- pi’iced models, for which he said there’s good demand. But same chassis in more expensive combination cabinet “can’t be given away” in today’s market. Regarding defense program, he pointed out that 85- 90 % of electronic business is being given to non-electronic companies, while newer companies were getting only small percentage compared to their civilian output. Govt, busi- ness, he said, won’t take up slack caused by loss of TV sales until late this year or early next. H: * * RCA and Sylvania reduced prices of CR picture tubes this week, following DuMont’s action (Vol. 7:14) which followed wave of price-cutting by smaller firms. DuMont officially stated reason for cuts was “improved production methods and greater production” while neither RCA nor Sylvania gave out any statement, but it’s commonly known trade fact that inventories were piling up in tube indus- try due to reduced public demand and that cutbacks in production are now in progress. GE is expected to cut, too, but had not made any announcement up to presstime. RCA reduced 17-in. metal rectangulars from $25 to $23 to manufacturers, $27.60 to $25.30 distributors, $38.20 to $35 retailers, $51 to $46.75 list. Sylvania cut 17-in. glass tube from $26 to $23.50 to manufacturers, $28.60 to $25.85 distributors, $39.35 to $35.55 retailers, $52.50 to $47.50 list. Sylvania’s metal-coned 17-in. went down from $25 to $23 to manufacturers, $27.60 to $25.30 distributors, $38.20 to $35 retailers, $51 to $46.75 list. Sylvania’s 20-in. was cut from $43.75 to $35 to manufacturers, $48.15 to $38.50 to distributors, $66.50 to $53 retailers, $88.75 to $70.75 list. »{• S;' V New Meek high sensitivity set (Vol. 7:14) has four major engineering features that company claims will “treble the area of coverage” of each TV station, permit reception up to 100 miles from transmitter. This means, according to Meek’s trade advertising, that dealers have “a million more homes” as prospects for TV. Named the “Red-Head,” for color of some components, set’s features are said to be: (1) Four IF stages of amplification. (2) High level video detector, feeding twice the video signal level of average set. (3) Newly designed synchronizing circuits, to prevent interference. (4) Balance of engineer- ing factors to provide satisfactory fringe reception. Pro- motion speaks of a “built-in booster.” Work on set be- gan last October, Meek says. Set is now being delivered to market, and prices are “same as previous models.” Lois of talk about Tele King opening West Coast plant, and president Harvey L. Pokrass acknowledges that company is planning to open factory in Los Angeles area and that Mario Tosatti, ex-Crystal Productions (inde- pendent film producer), will be its executive head. Pokrass said Tele King production was continuing at about same levels as first quarter — which was about same as last 1950 quarter. Tele King plans new line in June for Chi- cago Mart. Trade Miscellany: RCA’s David Sarnoff tells Variety’s Abel Green (in April 11 interview) that 6,000,000 TVs will be produced in 1951, making total sets-in-use 17,500,- 000 by year’s end (though NBC Research’s own figures would thus put total nearer 16,500,000). “Mr. Electronics,” as Green calls him, “is so bullish in TV and its future that his dim views on radio would seem to dwarf AM’s future chiefly because of his enthusiasms about TV” . . . Freed Radio creditors (Vol. 7:10) meet April 26 at 11:15 a.m. before Referee John E. Joyce in Federal Courthouse, New York City . . . Muntz TV announces expansion of its retail stores, reporting that since Jan. 1 it has opened new ones in Dayton, Springfield, Marion, Lancaster, Hamilton & Middletown, 0.; Kenosha & Sheboygan, Wis.; Aurora & Waukegan, 111.; Santa Ana, Cal. . . . Philco accessory div. staffers, in recognition of all-time production x'ecords achieved in March, received gold watches from gen. mgr. Herbert Riband at dinner April 11 . . . Dumont reports turning out 30-in. tubes (for own receivers only) at “nice rate” but doesn’t disclose how many . . . New York Journal of Commerce says layoffs of TV-radio plant personnel in Chicago area close to 10,000, with Magnavox and Cape- hart-Farnsworth in Ft. Wayne reported laying off around 400 employes each . . . Hytron cut CR tube personnel at Newburyport this week, but receiving tube output re- ported still going full speed . . . Ansley has moved plant and offices from Trenton, N. J., to 85 Tremont St., Meriden, Conn. Plant Expansions: Raytheon starts construction this month on new $1,200,000 receiving tube plant at Quincy, Mass., adding 86,000 sq. ft. to 23,000 now occupied by Tube Div. in Quincy and 270,000 by plant in Newton . . . Canadian GE erecting $1,000,000 addition to its Royce Ave. plant in Toronto, new 90,000-sq. ft. structure to be used for increased electronic production . . . Canadian Admiral Corp. (Vincent Barreca, president) has moved into new $300,000 plant at Port Credit, Ont. . . . Sylvania’s new 30,000-sq. ft. plant in Warren, Pa., only few months old, will be expanded by July 1 with 50,000-ft. new wing to employ 300-400 workers on wire drawing and wire plating . . . Pacific Electronics, Las Gatos, Cal. (transmitting tubes, rectifiers) has acquired 77-acre plant site near Ventura, plans 125,000 sq. ft. plant, production of crys- tals, wood products, test instruments, etc.; George E. Mitzel is president. * * * In apparent reversal of trend to larger picture sizes, Arvin this week announced resumed production of 8% -in. table models listing at $129.95 and offered in mahogany, willow green and sandalwood colors. TV-radio v.p. Har- old B. Foulke also reported acceleration of four 121.^ -in. models at $169.95 (tables) and $199.95 (consoles), said growing demand for smaller screen sets is “dictated largely by the present condition of the popular pocket- book.” The 8l2-in. tube is made by GE, Ai-vin being only known customer. That neither SVz, 10, 12%, 14-in. sizes have been much in demand by manufacturers lately, is indicated by February RTMA production figures showing 96% of month’s output were 16-in. or larger (Vol. 7:14). Canadian RMA reports 4288 TVs sold by factories for $2,215,985 during February, with inventory of 2696 units as month ended. Table models under $400 list price totaled 324, over $400 totaled 1522. Consoles under $500 totaled 363, over $500 totaled 1637. TV-phonos numbered 442. More than half of February sales were in Windsor (De- troit) area. First 2 months of 1951 unit sales w'ere 8907, valued at $4,195,060. Cumulative TV sales to Feb. 28 totaled 45,920 valued at $20,471,643, with 44% in Windsor area, 35% in Toronto-Hamilton, 16% Niagara Peninsula, 5% other areas. 1319 CONNECTICUT AVE. N.W. !/ WASHINGTON 6, D. C. • TELEPHONE MICHIGAN 2OT0 ^obilizalioit Electronics Reports April 14, 1951 EDMUND T. NORRIS HEADS NEW EPB: Electronics Production Board, new top-level policy board of DPA, with last-word authority over all phases of electronics production and procurement (Vol. 7:11-12), will be headed by 44-year-old Edmund T. Morris, director of Westinghouse Electronics & X-Ray Div. , Baltimore. He's Westinghouse career man, who started with company at 21 after taking master's degree at MIT, reports to Wash- ington April 23 after vacation in Virgin Islands. Board's primary function is "to make certain no electronic bottleneck stymies any element of the defense programs." Four of 7 present members are drawn from TV and related industries, some probably serving on temporary basis pending fulltime appointees and shaping up of staff. Official appointments haven't been made yet, but makeup of board at outset will comprise besides Morris: John D. Small, ex-Emerson v.p., chairman of Munitions Board; Harry E. Ehle, International Resistance v.p., consultant to Army; Don Mitchell, Sylvania president, consultant to Air Force; Capt. Frederick R. Furth, chief. Naval Research Laboratory; John G. Daley, acting director, NPA Electronic Products Div. ; Marion W. Boyer, general manager. Atomic Energy Commission. I-HOW CMP WILL AFFECT YOUR BUSINESS: Tight new end-product controls on civilian TV-radio production will be by-product of Controlled Materials Plan (CMP) , beginning July 1, despite fact that consumer durables won't fall within CMP's scope. All phases of electronics industry v/ill be affected by Govt's new method of controlling production. Here's what CMP will mean to your business: CIVILIAN TV-RADIO, OTHER CONSUMER DURABLES — Present limitation orders will be revamped, aimed directly at end-product manufacturers — not at component makers and their suppliers, who bore brunt of previous materials orders. Use of copper and aluminum will be limited in same manner as Order M-47 now limits steel. Steel order will be tightened — permitting consumer durable makers to use steel in third quarter at 70% of rate they used it during first-half 1950, instead of current 80% limit (Vol. 7:10-11,14). Two other changes are being considered: (1) Direct ceiling on number of units each manufacturer is allowed to pro- duce. Auto industry is urging this type of control, several TV makers are known to favor it. Administrator Manly Fleischmann says NPA will ask for views of consumer durable manufacturers on this proposal. He'll run into stiff opposition from RTMA. whose board meeting April 12-13 at Absecon, N.J. passed resolution objecting to portion of present steel order which limits unit production of some TV-radio makers, asked tonnage limit instead. (2) Change in base period for NPA orders, to reflect full year, intended to make orders more equitable to seasonal industries. Known to be under discussion are 12-month period ending June 30, 1950, and full year 1949. Either of these would be worse for TV-radio industry than present first-half 1950 base, because of compara- tively low rate of 1949 TV production. MILITARY ELECTRONIC END-PRODUCTS — Will come under CMP. Plenty of paper work for manufacturers, who must estimate their requirements of steel, aluminum and copper — and in some cases the requirements of their suppliers and subcontractors. But they can be sure of getting the materials they need, on time. Days of the "hunting license" will be over when CMP begins operating smoothly. A CMP allotment will be a "certified check" for materials. COMPONENTS — Still subject to final decision, it appears now that makers of components for civilian as well as military products will fall within CMP. Under present plans, steel, copper and aluminum will be allotted by Govt, for manufacture of all components. Therefore, it's possible that availability of tubes and other 1 - 2 - components, which come under CMP, may be governing factor in production of civilian TV-radios, which don't. REPAIR SHOPS, TV-RADIO REPLACEMENT PARTS — To be covered by special CMP regulation designed to "assure repairmen of needed materials without application to NPA. " Specific amounts of steel, copper and aluminum will be allotted to keep re- pair parts for home TV-radio equipment on distributors' shelves (see Trade Report). MAINTENANCE, REPAIR, OPERATING SUPPLIES — Current MRO Reg. 4 (Vol. 7:9) will be superseded by new CMP regulation designed to assure that materials are set aside for maintenance supplies for industry and business, including broadcasting. BROADCASTING, TELECASTING EQUIPMENT — Manufacturers of this equipment will be required to file application for quarterly requirements of copper, aluminum and steel with NPA. Presently it's planned that new broadcasting and telecasting equip- ment will come under CMP for allotments of the 5 strategic metals. It's known that — short of all-out war — NPA won't stand in way of new station construction, and under CMP may even offer some help. * * Dates to remember; No CMP orders have been issued yet — merely the announce- ment that it will begin July 1. Seven specific CMP regulations, due about May 1, will put plan into operation. By June 1, NPA will require producers of a specific list of items to file their requirements for third quarter. Most manufacturers will be notified directly shortly after May 1; for others, there will be ample public notice as to where they can obtain applications. We'll follow CMP developments closely, keep you informed of steps you must take — and results you can expect — under new production plan. II-HOW GOVT. EXPECTS CNP TO WORK: CMP controls production through regulation of the 5 basic industrial metals — steel, copper and aliiminum. It's a method, proven in World War II, designed to let govt, planners know exactly how much of each metal is available, and exactly how much of each is re- quired for the defense program. It aims to put metals in right hands at right time — to keep military production program running smoothly. Limited CMP which will begin next quarter will actually dole out metals only to defense and defense-supporting activities ; but all manufacturers except those who make consumer durables will be required to file their requirements. In brief, here's how it's supposed to work; First, DPA's Program & Requirements Committee, directed by Charles Wampler, sits down and figures out .just how much steel, copper and aluminum will be available in this country next quarter. Then demand is figured up — on basis of requirements filed by military, by producers of military and essential civilian goods. Next, this total is measured against supply. If high policy makers don't think this leaves enough metal for civilian goods, military and defense-supporting orders may be cut back. *■ * * * When planning is completed. Govt, issues allocations of the 3 metals to all military and defense-supporting users. This "certified check" guarantees users will get the steel, copper and aluminum they require. What's left — difference between defense requirements and total supply — is available for civilian goods on a "free market" (not directly allocated) basis. NPA chief Fleischmann says it should be a "substantial balance." Present limitation orders will then be changed — tightened — to reflect, as accurately as possible, amount of materials left for civilian use, in attempt to divide them equitably among non-defense users. But civilian users aren't assured an exact supply of the metals, as are CMP defense users. They'll still have to scramble for what's left. Civilian products won't be classified according to essentiality . NPA feels all manufacturers should get even crack at materials not needed for defense. Hence 3 present bans on use of copper and aluminum in large variety of items (e.g., Venetian blinds, door knockers, coffee makers, etc.) will probably be lifted. Ban on purely decorative uses of copper and aluminum, however, will be continued. CMP will supersede NPA's 25 "special programs" which, helter-skelter, now allocate materials for freight car program, shipbuilding program, electric power in- dustry, etc., as well as countless special directives. Says Fleischmann; "What we have been doing is exactly what we cannot continue to do for any prolonged period of time ; namely, draw checks on the bank without knowing exactly how many checks are out, or even knowing the exact bank balance." 4: =!< * * CMP will minimize need for centralized defense production planning and supervision, by following normal "chain of command" in industry. Large share of re- sponsibility for getting out necessary production will be left to industry. Most producers of military products will get material allotments from their customers. Govt, is prime contractor's customer. Subcontractor's customer is a prime contractor or another subcontractor. A producer of tanks, for instance, will be required to allot controlled materials to his subcontractors and schedule produc- tion so that all the thousands of parts and components that make up a tank are ready on time and in the right quantities. As in World War II, products coming under CMP will fall into "A" and "B" categories. Producers of "A" products will get their allocations directly from their customers. "B" producers will receive individual allocations directly from Govt., but can't allocate any of their quotas to subcontractors. "A" products generally are end-products bought by military and other defense industries. "B" products are civilian-type items and components needed for defense, including industrial machinery and equipment. Most or all electronic equipment will be on "B" list, because it generally uses standard components. Application forms — stating amounts of steel, copper, aluminum needed — will be required of manufacturers of "B" products. Official "B" list will be issued May 1, and producers of military and defense-supporting items not on "B" list can assume they're on "A" list. These are electronic and related products appearing on tentative "B" list : Radio, radar & TV equipment, except home type (including transmitting); radio tubes; transformers, capacitors, rectifiers, induction & dielectric heating units ; telephone & telegraph communication equipment ; X-ray & therapeutic apparatus ; aircraft, scientific & surveying instruments; motors & generators; switch gear & electrical control apparatus ; aircraft & aircraft parts ; electrical wiring devices & supplies; electrical indicating & measuring instruments. Among items on tentative list of civilian products for which it's stated CMP applications won't be required or permitted; Home radio & TV sets ; household refrigerators, freezers, air conditioning; household electrical appliances. ' CMP will be master-minded by NPA Assistant Administrator Walter C. Skuce, on leave from Owens-Corning , who had similar responsibility in World War II. CONSERVATION RESEARCH BEARS FRUIT: There hasn't been much fanfare, but for months component makers' laboratories have been buzzing with development of materials- I saving conservation and substitution measures no less significant than those of the I big TV-radio manufacturers (Vol. 7:6-7). Most of the results haven't been spectacular in the usual sense of the word. A shortcut here, a substitution there, a small part eliminated, a steel part re- j placing an aluminum one — these have been quietly incorporated into production, i Now — possibly in the nick of time — reports of ma.1 or developments are beginning 1 to seep from the laboratories. Here are some recent ones; New type ceramic core for electronic applications has been developed by Henry L. Crowley Co., West Oreuige, N.J., which supplies Admiral, Philco, Zenith and j most other major TV-radio makers. New core, said to be interchangeable with 10-20% I nickel oxide ferrite type, contains no nickel at all. Trade-named "Croloy C-4," 4 it's said to be especially valuable in horizontal linearity, width control and fly- back circuits and other TV applications v/here ferrite is now being used. The new cores were experimentally used in standard Philco TV set recently, we were told, and performance was reported as good as or better than ferrite, with no circuit changes. Crowley Co. says Croloy is now "near the production stage." New permanent magnet "containing only non-critical material" was announced this week by Sylvania' s metallurgical laboratories "for applications in radio and TV receivers as well as other commercial and military equipment." No cobalt, aluminum or nickel — all ingredients of Alnico V magnets — are used in new magnetic material, Sylvania says. It's now in "pilot plant production stage," with commercial production scheduled "at an early date." The new magnets are reported comparable in strength to Alnico III, which isn't widely used in speakers or TV focus units because of lower field strength. Sylvania officials indicate, however, that stronger magnets can be produced. It's not known whether Sylvania 's new process stems from a French formula which has aroused interest in this country from time to time. After investigation, most U.S. magnet makers have termed French developments economically unfeasible. Hope for expansion of cobalt supply is riding high on basis of work being done by Indiana Steel Products and others tov/ard refining low-grade domestic ore, heretofore largely fruitless. A prime mover in this field told us progress so far "looks promising." Almost all cobalt now comes from Africa. ^ Just about every tube manufacturer has ready an electrostatically-focused picture tube (Vol. 7:1, 3, 5, 9), but none reports any orders by set makers. The 2 biggest TV manufacturers who've announced they'll use the new material-saving tubes — Philco and RCA (Vol. 7:5-7) — have postponed changeover dates. RCA says "later this month." Philco says "possibly in May." But most tube and set manufacturers see no industry trend to electrostatics until late summer, at earliest. The reason: Set manufacturers are now getting enough critical materials to take care of their production requirements, reduced by trade conditions (see Trade Report). In other words, consumer resistance, not material shortages, is limiting factor in production — for time being, at least. Mobilization Notes: Nickel shortage crisis will over- shadow everything else April 17 when representatives of all phases of electronics industry meet with NPA. But cobalt squeeze — which threatens to become much tighter than it is now — will come up for large share of discussion, too. Situation facing industry was summed up by NPA chief Manly Fleischmann April 11: “Military production will take up to 100% of cobalt . . . and very nearly that much of nickel.” Agenda for the meeting provides revealing hint of seriousness of situation: “(1) The nickel situation — re- ceiving tubes — resulting production level. (2) Require- ments for civilian tube replacements. (3) Eifects of in- creases in rated [priority] orders for tubes. (4) Supply of critical materials for speakers — cobalt vs. copper. (5) Current and near future production — TV and radio sets. (6) Summary and conclusions of recommendations.” In discussion of item 4, industry will probably be told that there will be no cobalt available for civilian use by June or July, and that NPA to date has granted no manu- facturer permission to use copper-wound electromagnets in place of permanent speaker magnets. * * ♦ * Spot check of aluminum industry’s compliance with NPA orders, undertaken by Federal Trade Commission (Vol. 7:9), is near completion. Of 300 cases transmitted to NPA Compliance Div., 239 have been reviewed. Of these. Compliance Div. recommended following action: That files be closed and no action taken in 96 cases; warn- ing letters regarding apparent violation be sent in 48 cases; supplemental investigation in 30 cases; files be re- ferred to NPA general counsel for enforcement action in 7 cases; further investigation regarding prohibited items be made in 32 cases; files be further interpreted in 26 cases. Next spot check will cover some 300 producers of copper and copper-base alloy products. NPA Adminis- trator Manly Fleischmann disclosed Compliance Div. since Jan. 1 has reviewed 409 other complaints of violation of NPA orders, mostly construction order (M-4). Mobilization Personals: Added to staff of NPA Elec- tronic Products Div., to serve in end-products section headed by J. A. Milling (which includes TV-radio): Lee Colder, ex-General Instrument; Wm. J. Bapst, ex-Marine Corps electronic expediting officer, ex-WPB; Adam Stein, ex-Engineering Research & Development Laboratories, Ft. Belvoir, Va. Other members of end-products section: O. W. McDaniel Sr., E. MacDonald Nyhen, Noble Harris . . . Franz T. Stone, on leave as president of Columbus McKinnon Chain Corp., Tonawanda, N. Y., named NPA Assistant Administrator in charge of industrial & agri- cultural equipment . . . Gerald R. Gallagher, engineer, for- merly consultant to NSRB, appointed Civil Defense Assist- ant Administrator for Technical Services. “Handbook of Emergency Defense Activities,” which lists key personnel and organizational outlines of mobiliza- tion-related govt, bureaus, is available for 25(‘ from Govt. Printing Office, Washington 25, D. C. 11 Financial & Trade Notes: Among officers’ and direc- tors’ stock transactions reported by SEC for February: Francis H. Uriell bought 15 Admiral, holds 1100; Joseph B. Hall bought 200 Avco, holds 200; James D. Shouse bought 4000 Avco (Jan.), holds 5350; Wm. J. Halligan gave 500 Hallicrafters as gift (Jan.), holds 36,900 in own name; IVm. Balderston gave 30 Philco as gift, holds 7188; David B. Smith bought 2 Philco (Jan.), holds 3273; Stan- ley P. Lovell bought 200 Raytheon, holds 400; Harry G. Sparks sold 1300 Sparks-Withington, holds 100; John Kuhajek sold 10 Zenith, holds 20. Westinghouse stoc’K transactions I’eported by SEC: John H. Ashbaugh bought 434 (Jan.), holds 1508; Walter C. Evans bought 6, holds 1400; John K. Hodnette bought 579 (Jan.), holds 1664; James H. Jewell bought 326, sold 50 (Jan.), holds 788; Andrew H. Phelps bought 434 (Jan.), holds 1445; Gwilym A. Price gave 55 as gift, bought 1085 (Jan.), sold 399 (Feb.), holds 4800. s;: ^ ❖ i'fi Admiral first quarter sales were $70,321,548, com- pared to $46,291,409 same 1950 quarter. Earnings before taxes were $8,490,463, and after provision for taxes $2,- 403,344 ($1.25 per share) vs. net profit of $4,158,449 ($2.16) for same 1950 quarter. Reserve for taxes, presi- dent Siragusa noted, was $3.16 per share this year vs. $1.25 last. Packard-Bell sales for 6 months ending March 31 were $13,839,147, virtually equal to the $13,894,713 for whole of 1950. Six-month report compares with $3,203,531 for same period 1950. Earnings for the 6 months were $902,629 ($1.53 per share on 588,000 shares outstanding). President H. A. Bell figured civilian sales for next 6 months will equal $10,000,000, profits $600,000. Bendix Aviation’s first quarter sales rose to $67,044,- 705 from $52,379,209 for same 1950 quarter, but earnings dropped to $2,578,457 ($1.21 a share) from $3,798,919 ($1.79) due to higher taxes. Backlog at end of quarter, president M. P. Ferguson reported, exceeded $475,000,000, heavily military, as against $170,000,000 backlog same time last year. Webster-Chicago sales in 1950 were $19,086,151, high- est in its history, compared with $11,089,364 in 1949, $13,- 768,731 in 1948. Net earnings were $1,212,050, equal to $2.69 a share on 450,000 shares of common stock outstand- ing vs. $835,824 or $2.89 a shai’e on 289,036 shares in 1949 and $834,550 ($2.89) in 1948. Inventories carried forward to 1951 totaled $3,662,409 and $2,000,000 in govt, contracts are on books, president R. F. Blash reported April 10. Muter Co. and wholly-owned subsidiaries, Rola Co. and Jensen Mfg. Co., had gross sales of $14,389,725 in 1950, compared with $7,907,572 in 1949. Consolidated net income after Fedei’al taxes was $1,034,200, or $1.59 per share on the 651,000 shares outstanding (including 59,200 shares declared as stock dividend in December 1950). This compares with net earnings of $453,264 ($1.53) on the 296,000 shares outstanding as of Dec. 31, 1949 and $389,184 ($1.31) in 1948. During 1950, dividends of 45^ cash were paid after 100% stock disti'ibution in May, as against 60f' cash dividends declared each of preceding 2 years. At end of 1950, consolidated working capital was $2,552,973, up $589,692 for year. Proxy notice for April 17 stockholders meeting at Chicago offices discloses Leslie F. Muter, presi- dent, holding 110,000 shares; Thomas A. White, president of Jensen, 12,810; A. A. Dailey, v.p., 5390; Karl E. Rollef- son, engineering v.p., 3850; Lawrence A. King, president, Rola, 1870. Compensations for 1950 included: Mr. Rollef- son, $12,000 ifius $35,649 bonus; Mr. White, $15,000 & $20,633; Mr. King, $15,000 & $33,814. Robert C. Sprague, recently retired president but still chairman of RTMA, whose Sprague Electric Co., North Adams, Mass., showed 1950 earnings nearly triple those of 1949 (Vol. 7:13), reports his company’s .sales of elec- tronics equipment, mainly capacitors, ran at higher rate first quarter this year than same quarter last year despite estimated 15(y reduction in TV production. He predicts 1951 sales will be “substantially greater” than 1950. Com- pany has acquired small plant in Bennington, Vt., to in- crease by 4% times its production of ceramic coated wire, particularly for military contracts. Stewart-Warner reports 1950 production of its Elec- tric Division (radio, TV & electronic products) tripled that of 1949 but was severely handicapped by materials shortages. Division has moved into new plant at 1300 No. Kostner Ave., Chicago, with E. G. Fossum as gen. mgr., Henry Gillig plant mgr. TV-radio are still small part of company operations, which in 1950 had total $80,482,372 sales, $4,584,936 net profit ($3.55 per share) as against $54,609,713 sales, $2,163,106 profit ($1.67) in 1949. Capehart-Farnsworth was profitable operation in 1950, showed threefold sales increase over 1949, according to IT&T report, which does not sepai’ate subsidiary profits and losses. IT&T consolidated net income for year rose to $15,557,339, highest since 1929, comparing with $4,685,877 in 1949. Sales were $216,947,277 vs. $201,005,225. Canadian Admiral Corp. reports first quarter 1951 sales were $1,836,426, net earnings $135,971 (47<^ a share) vs. $726,190 sales, $36,308 (13(‘) earnings for same 1950 period. WJR, The Goodwill Station Inc. reports first quarter sales were $891,441, profit $165,381 (32q per share) vs. $861,710 sales and $152,695 profit (30^') for same 1950 period. Trans-Lux Corp., operating 14 theatres and holding various other interests, blames TV in reporting drop in earnings to $50,857 in 1950 from $198,185 in 1949. New York distributors got together this week to set up standards against “misleading” and “wild” TV ad- vertising, and to get New York newspapers to use these standards as guides in accepting retail TV sales copy. Plan is somewhat similar to move made by Washington distributors last week, which involved local Better Busi- ness Bureau acting as clearance agent for TV “sales” ads, with local newspapers pledged to refuse copy tui-ned down by BBB (Vol. 7:14). Members of New York distributors committee to di’aw up standards: Gerald 0. Kaye, Bruno- New York; Benjamin Gi'oss, Gross Distributors; Martin L. Scher, Motorola-New York; William O’Brien, Crosley Dis- tributing; George Hai’t, Zenith Radio. Trade Personals: Joseph h. Giiues, Phiico Tv-Radio Div. operations v.p., adds duties of chief of newly estab- lished Govt. & Industrial Operating Div., Wm. J. Peltz reporting to him as mgr. of operations. Robert F. Herr, v.p., added to president’s staff, will direct all govt, and industrial sales-contract negotiations, with James D. Mc- Lean reporting to him as gen. sales mgr. and John Booth as gen. mgr. of Tech Rep Div. . . . Ernest Marx, gen. mgr. of DuMont receiver sales div., named head of new govt, contract dept., with H. B. Graham handling govt, negotia- tions and bids, Zeke Soucek Washington mgr., B.V.K. French Dayton mgr. . . . Patrick .1. Brady, chief industrial engineer of Sylvania TV-rudio div., named mgr. of com- paiiy’.s plant in William.sporl, Pa. . . . Edward K. EosCer, gen. mgr. of Bendix Radio Div., elected v.p. and member of company’s administrative committee; will continue at Baltimore post. 12 - Telecasting Notes: At least one big AM independent — and there may be one or two others — claims to have ex- ceeded record $4,000,000 gross time sales achieved in 1950 by NBC-TV’s New York key WNBT, which we said last week (Vol. 7:13) was probably exceeded in AM only by WLW and the AM network keys . . . Zenith’s president Eugene F. McDonald Jr. has presented to Indiana Techni- cal College, Ft. Wayne, company’s old custom-built experi- mental TV transmitter designed for Channel 2; city has been assigned 3 uhf channels (see TV Allocation Report), of which one is earmarked for education, but it’s doubted Zenith vhf transmitter will be used for anything other than closed-circuit operation for teaching . . . Gloria Swan- son and her daughter will be stars of new variety show to start Sept. 9 on ABC-TV, Sun. 1-2; no sponsors lined up yet . . . Ernest Hemingway has agreed to make his works (some 70 stories and novels) available for TV through MCA, appearing himself via film recordings, his N. Y. attorney Alfred Rice announced this week . . . WBKB, Chicago, April 1 raised base rate from $925 to $1100, one- minute announcements from $160 to $200 . . . Hal Roach’s old Our Gang 2-reelers shortly to be released to TV as Hal Roach’s Rascals thru Regal Television Pictures . . . CBS has granted cost-of -Living wage increase of 10%, ef- fective April 1, to all employes earning under $10,000 with exception of contract employes . . . NBC has leased Holly- wood’s 1100-seat El Capitan Theatre for 15 years, will use it to originate TV and radio shows . . . WNBF & WNBF- TV, Binghamton, N. Y., plans own new studio-oflice build- ing to cost $300,000-$400,000, construction to start June 1. Debate on separation of FCC and staff, between Chaii-man Coy and Comr. Jones, during April 9 hearing on McFarland Bill before House Interstate & Foreign Commerce Committee, found former insisting staff would be made “eunuchs” if it weren’t permitted to make recom- mendations to Commission. Jones said: “I personally can do without recommendations from the staff. But I can use all the facts I can get.” Coy maintained that diver- gent views of subordinate staff members were encouraged, not “smothered” by their superiors. Jones suggested that commissioners’ personal staffs be enlarged at expense of overall staff, saying: “Commissioners come and go, but the staff stays on, tends to stagnate. When a new commis- sioner is appointed, I believe that Congress intends that his influence be felt.” Jones also asserted that “expertese” of staff is overemphasized in rule-making procedures, tliat most questions are “fimdamentally economic” — including color and clear channels. For example, said Jones, there are “good technical reasons” for moving all TV into uhf, but Commission didn’t make move “because of tremen- dous investment involved. FCC doesn’t want to tear up a man’s investment.” Coy said that Jones’ logic would require every commissioner to be a lawyer, .something Congress had never intended. Heaifing resumes April 24. Sponsorship of public hearings, such as those of Kefauver Crime Committee, is perfectly all right, in opin- ion of FCC Chairman Coy, as long as committee involved agi'ees. He gave opinion in response to question by Rep. McGuire (D-Coiin.) during April 9 hearing on McFarland Bill before House Interstate & Foreign Commerce Commit- tee. Coy also warmly advocated televising of any major public hearing. Only application for new TV station this week was from Desert Television Co. for Channel 13 in Las Vegas, Nev. Applicant is composed of local businessmen, with interlocking ownership with KRAM, Las Vegas. This makes total of 397 applications. [For further details about applicant, principals, etc., see Addenda 12-N, herewith; for listings of all applications to date, sec TV Faetbook No. 12, with Addenda to date.] ABC Chairman Edward J. Noble told stockholders meeting April 11 that network is “not for sale,” though he has “listened” to several offers. Deal with IT&T (V’ol. 7:13) is off, no other negotiations now under way — and Mr. Noble predicted ABC’s time sales for TV alone will hit $18-20,000,000 this year, as compared with only $6,500,- 000 in 1950. “Profits are vei'y satisfactory,” he said. “We turned the corner in November 19.50, and are now definitely over the hmnp, with no di’ag on radio earnings.” TV' cameramen have newsreels faming. Seems Rep. Wood (D-Ga.), chairman of House Un-American Activi- ties Committee, forbade both newsreel and TV cameramen fi’om covering cuirent hearings into Hollywood Commu- nists unless they could function “with no noise, no lights, no space.” Newsreels couldn’t meet those requirements, but NBC-TV and Telenews cameramen shov/ed up at film actor Sterling Hayden’s appearance April 10 with small, noiseless, hand-held, specially designed 16mm. sound film cameras, got full coverage for telecasts later that night. Special processing of film and transmission control over- came underexposure due to ban on floodlights. Functional music FM operations employing super- sonic note to cut out voice annoimcements are clearly ille- gal, according to FCC. This week, it wrote 4 stations with such operations (Vol. 7:5, 9), told them as much in a sort of “declaratory order” which gives them a chance to quit before Commission gets tough. FCC hasn’t said any more about transitcasting or storecasting, but there’s believed to be fair chance it will at least permit transit operations. April 1 sets-in-use reported since NBC Research’s “census” of March 1 (Vol. 7:12): Washington 253,760, up 9760; Fort Worth-Dallas 112,608, up 3608; Memphis 83,018, up 3718; Omaha 73,930, up 7430; Norfolk 65,377, up 5077; Greensboro 63,949, up 6449; Miami 60,000 up 5000; St. Louis 282,000, up 14,000; Kansas City 114,600, up 6600; Johnstown 82,200, up 7100; Utica 40,700, up 2200; Boston 720,000, up 19,000; Baltimore 303,812, up 18,812. Live football telecasts of one major college game in each region each Saturday next fall under “test condi- tions”— that’s proposal of National Collegiate Athletic Assn. TV committee, announced April 11, subject to almost certain approval by NCAA national committee next week. TV sponsors would determine which game would be tele- vised, and NCAA’s TV committee would be clearing house. Parabolic microphone, 6 ft. in diameter, was used in TV studio for first time during NBC-TV’s April 11 Fotir Star Revue. According to engineering v.p. 0. B. Hanson, parabolic mike eliminates many drawbacks of overhead mike — threat of appearing in picture, hampered perform- ers’ movements, inadequate articidation. It’s said to be good for distances up to 35 ft. Strikebound KFI-TV is operating about 6 hom*s daily, mainly with film, while performer members of TV Authority remain out — with AFM musicians refusing to cross picket lines but AFRA performers meeting engage- ments at sister AM station KFI. TVA wants closed shop at KFI-TV under same tenns as other local stations. Copies of Allocation Report We can still supply full text of FCC’s proposed new VHF-UHF Rules, Standards & Allocations, printed for our subscribers and including detailed city-by-city allocations (with educational assign- ments), pi'oposed orders, engineering data with charts, commissioners’ separate statements, etc. Our 28-page print of FCC’s 60-page mimeographed docu- ment is available at $2 per copy, or $1 each in quan- tities of 25 or more. April 21, 1951 ( Kate Dispute Impelling ‘TV Wave-Rush’, page 1 , ) Take Wraps Off TV — NARTB Keynote, page 2. in TMS ssue, , Makers Outdo Themselves, page k. ^ Output Recedes, Controls Being Felt, page 7. Slight Sales Pickups, Output Down, page 7. How Labor Would Meet Layoff Problem, page 8. Causes & Effects of TV-Radio Slump, page 8. Nickel Pinch, Fewer Tubes Inevitable, page 10. RATE DISPUTE IMPELLING TV WAVE-RUSH': The great TV stampede will soon be on — sparked by coming thaw of the long freeze (Vol. 7:12 et seq), flamed by CBS network radio rate cut (Vol. 7:15) and virtual certainty other AM networks will follow suit. No one who was at NARTB convention this week could mistake surge to TV. It was all-pervading subject — dominated Coy and Miller speeches, BAB, Research & FM sessions, equipment exhibits, corridor talk. Attorneys and consulting engineers who flocked to Chicago to see clients left with instructions from most to "start work on our TV applications." Even General Bradley's big news-making luncheon talk had to be cut short during question-answer period so he could "keep a date with television. " * * * * AM rate-cutting and its effect on networking and future of radio were pre- dominant topics. Mostly, the broadcasters were angry — even some who own TV sta- tions — but generally there seemed to be resigned feeling that high-riding, lush day of radio had passed its zenith. Even special session of affiliates of all 4 AM networks, which began as anti-network (particularly anti-CBS) indignation meeting, simmered down to sober endorsement of special committee to "study radio rate structure" headed by Paul W. Morency, WTIC, Hartford (NBC), which meets April 24 in New York with networks. [For members of committee, see p. 5.] More than 750 at "protest meeting" asked networks not to effect any rate i changes until committee has had time for study and recommendations — albeit ABC j president Kintner has already indicated his company's course by stating it intends I to "meet the competition" ; NBC president McConnell has made no bones about convic- ; tion AM rates must eventually yield to TV inroads on audience ; and MBS president I White has said he will wait to see what all the others do. I Bitterness would not have been so great, it was apparent, had CBS cuts been confined to TV markets only — for all seemed to acknowledge TV's impact on radio listening, even those who don't like to admit it. Trade press is replete with quotes by embittered broadcasters. Variety head- lining "Radio's Fight for Survival," Broadcasting captioning strongly worded edi- I torial with obvious pun "Rate Race," Radio Daily quoting scores of disaffected j broadcasters' generally antagonistic comments (one used term "moral cowardice"). ' :4c What roiled most was that sudden move was timed when business is good — billings at new high in some cases, including CBS's. Indeed, only this week the FCC AM-FM income report for 1950 (Public Notice 62934) revealed revenues of the more than 2100 stations reporting had reached surprising total of $447,700,000, up 7.8% , from 1949 ' s $415,200,000 — the 4 networks and their O&M stations accounting for $109,700,000 of this total (up from $108,100,000 year before) while others' local, spot and other income rose to $338,000,000 (from $307,100,000 in 1949). Govt, figures tended to refute argument AM is slipping — but also showed Copyright 1951 by Radio News Bvireau - 2 - TV's phenomenal growth to $105,800,000 in 1950 from $34,300,000 in 1949 (Vol. 7:13). ■ Few would acknowledge good economic reasons for CBS move at this time, though everybody accepts CBS story that Lever, Procter & Gamble, other major spon- sors had given rate-cut ultimatiuns. CBS station relations v.p. Herb Akerberg spent some uncomfortable hours with affiliates at Chicago. NARTB chairman Justin Miller took cognizance of sponsor rate demands in his speech: "Far more dangerous to radio than competition from TV," said he, "is rate- cutting boycott recently engineered by a combination of national advertisers.- Al- though radio will be the immediate sufferer, it may be only a question of time until similar, monopolistic, conspiratorial coercion will be used to break down TV rates also." He thought anti-trust actions were possible. >Vhat rubbed CBS affiliates mostly was fact all they got was bare telegram telling them of July 1 cuts — no prior warning or discussion. They griped most bitterly that President Stanton had assured them at recent regional CBS meetings that there would be no cuts ; that CBS had been in fore with surveys showing "radio as best buy" ; that when NBC sought to cut rates in TV markets only last December (Vol. 6:51, 7:1), they had urged their local NBC brethren to buck such move — at behest of CBS executives, they said; and that some had stayed out of TV when chan- nels were plentiful — on advice of CBS. * * * * During all-affiliates meeting, one heard such expressions as "survival of radio," "beginning of the end," "dog eat dog," and Chairman Morency asked if high price of talent (referring to CBS raids) wasn't real cause. At BAB meeting, chair- man Edgar Kobak, ex-MBS president, remarked: "Broadcasters are to blame for fact they failed to raise rates in recent years. Rate structure, not rates, is out of date. Buyers think rates should be lower, and sellers have been making deals which indicate they think rates are too high, that they are losing confidence in their product." Kobak urged complete separation of TV and radio, if under same ownership. "These powerful media are in competition," he said. He quoted letter from ex-CBS executive v.p. Paul Kesten, member of BAB board: "Let TV fend for itself. While BAB's slugging need not be aimed primarily at TV, it must be considered a fair target. All double- j ointed radio-and-TV in- terests supporting BAB ought to agree to this in advance." Kesten suggested survey "to pit radio and TV against each other in parallel markets and measure the payoff." ♦ ♦ ♦ ♦ From Judge Miller's speech, some could take heart when he denied TV can "completely destroy and supplant aural radio." He said: "The walls have not yet crumbled on radio because of the impact of TV — and never will." On other hand, there was news — discounted by some because of its TV in- terest — that Detroit News' pioneer WWJ had cut Class A night hourly rate from $800 to $640 an hour, retroactive to April 1. Manager Harry Bannister explained WWJ had raised its rates in recent years, now faced TV cut into audience, felt it must "play square" with advertisers. He said radio would have to find its own level, but for next few years faces rugged going. Bannister's attitude exemplifies position of big broadcaster who also is big telecaster, recalls 1949 warning by Crosley's James Shouse (Vol. 5:42) and action of WFIL's Roger Clipp in readjusting that Philadelphia station's rates just prior to last year's NAB convention (Vol. 6:16). TAKE WRAPS OFF TV — NARTB KEYNOTE: Exasperation over long freeze and educational channel reservations (see TV Allocation Report) was obvious among NARTB conven- tioneers. But also v/orth noting was this growing attitude: "What the hell — let's quit fussing around, let's get going, let's build some stations." Greater optimism about uhf, stemming from excellent technical progress (see page 4 and Vol. 7:15), also contributed to "let's get going" feeling. Additional pressure was supplied by WHEC's able chief engineer Bernard C. O'Brien, who almost sold FCC on 150-mile vhf cc-channel separation and who contrib- - 3 - uted greatly to getting FCC 220-mile proposal of 1949 down to 180 miles (Vol. 7:5). "It is my opinion," he told engineers, "that these 12 vhf channels will eventually accommodate many more stations than are now proposed to be allocated... The range of all existing vhf stations will be in the neighborhood of 50 miles. Doubling the number of vhf assignments will reduce the figure to about 35 miles; 4 times as many... could be accommodated with a probable range of 25 miles or so. "Most of us who are now operating an AM station on a regional or local fre- quency would be very happy if we could cover a 25-mile range at night. "I believe that the first 4 priorities [of the FCC] will be more completely served by a larger number of smaller range stations than by the relatively small number of 50-mile range stations currently proposed." Also precipitating haste, of course, are the TV-prompted AM rate cuts, which would extend into non- TV areas (see page 1). Not that applicants won't strive mightily to get more commercial vhf chan- nels into their cities, during hearings beginning June 11 (Vol. 7:15). In fact, FCC Chairman Coy's speech appeared to indicate more than ordinary Commission receptive- ness to such efforts. DuMont will undoubtedly make most comprehensive pitch, improving its plan for 4-network system since FCC has proposed closer vhf channel spacing. To gain support for DuMont's position, v.p. Thomas Goldsmith said his plan will give 4 or more vhf channels to 51 of top 50 cities, compared with 7 in FCC plan. Further, he pointed out, his plan would require channel shifts of only 19 existing stations, compared with 31 proposed by FCC. Senator Johnson sounds almost like a vhf applicant when discussing alloca- tion plan. He tells us: "I'm disappointed in the vhf allocation to Colorado, particularly to Denver. Previously, Denver was scheduled to get 5 commercial vhf channels; now it's getting only 5. That's not enough for a city of 500,000. Other states, like Wyoming, seem to have gotten better treatment. I don't think much of this mixing of vhf and uhf, either. The Commission knows what I think; I've told them." Asked what he thought of moving vhf channels from other Colorado cities to Denver, he said: "I'm not commenting about that." * * * * * Uhf got lift from several sources. Said Coy in convention speech: "I feel quite sure that uhf stations in the future will be able to cover almost any metropolitan area and a very large part of the rural areas... To me the strong probability of early assignments in the uhf look a bit more attractive than prolonged and costly litigation [for] the few vhf channels available...! believe that by time uhf transmitters can be put on the air, there will be substantial flow of receivers equipped to receive both uhf and vhf signals ready to go on market." Ex-Comr. E. K. Jett, now of WMAR-TV, Baltimore, expressed great hopes for uhf future. NBC's Ray Guy emphasized that his apparent bearishness on uhf during hearing (Vol. 6:46) stemmed solely from Bridgeport experience with low power and height, hilly terrain. RCA lab chief C. B. Jolliffe, in talk at Princeton U, said company's experience "has shown that a major expansion is practical and possible in the uhf. " And GE this week announced it has uhf converter (see page 6). Educators are about to announce permanent establishment of Joint Committee on Educational Television, with WOI-TV's Richard Hull as administrator and head- quarters in Washington. Ford Foundation has granted JCET $90,000, and other founda- tions may come across soon with similar grants. Sen. Johnson wouldn't comment on educational reservation, said he had sent Benton Resolution for 90-day allocations freeze, pending Senate study (Vol. 7:15) to McFarland subcommittee "where it will get careful consideration." Pittsburgh's Mayor David Lawrence, president of U.S. Conference of Mayors, has been urging all mayors to spur educational TV activity in their cities. In Milwaukee, Mayor Frank P. Zeidler announced that he was doing just that. - 4 - TRANSMITTER MAKERS OUTDO THEMSELVES: Transmitter outlook appears remarkably good. Be it vhf or uhf, high power or low, chances are equipment won’t lag far behind demand when it's really needed. Prospects are subject to the usual "if" — if war's impact on economy doesn't get worse. Demand, as expressed by "dotted line" contingent contracts, has strong bear- ing on future equipment availability. And seriousness of applicants at this week's NARTB convention (see page 1) gave manufacturers something tangible upon which to base production plans. Uhf developments are most striking. Within space of a week, GE upped power of its klystron-powered transmitter from 5 to 10 kw (Vol. 7:12,15). Thus, with 20- gain helical antenna, GE is prepared to deliver equipment capable of emitting maxi- mum permissible power — 200 kv; — by third quarter of next year. All this, plus monitor, will cost $158,000, say GE salesmen, comparing it with |200, 000-plus for same vhf power. Makers of klystron, Varian Associates, say they can build about 50 tubes this year. GE says station should have 4 on hand — 2 for transmitter, 2 spares — meaning tubes for dozen stations by year's end. So klystrons shouldn't be bottleneck. Critics of GE's transmitter point out that klystron alone will cost some $10,000. GE answers that tube is good for 10-40,000 hours, compared with average vhf tube's 7000 or so; that burned-out klystron, which includes tvmed circuits, may be "retreaded" at factory for 15% of original cost ; that GE may offer life guarantee assuring hourly cost no greater than with standard tubes. RCA says it will have 1-kw uhf transmitter, selling for about $65,000, ready second half of this year. Outputs of 5-10 kw, employing new tetrode tube, will be available when needed, company says. DuMont expects to offer 1-kw unit within about 6 months. It's expected to sell for some 20% above vhf unit of same power. DuMont will also have, for first time, its own uhf antenna — 20-gain slotted radiator. ♦ * * * Prospects for high-powered vhf seem excellent. RCA is now in production of 20-kw amplifier to sell for around $85,000. With 5-gain antenna, this gives FCC- permitted maximum of 100 kw on Channels 2-6 ; with 10-gain, maximum of 200 kw is delivered on Channels 7-15. Scheduled for second half of 1952 is 10-kw transmitter to sell for $80-$85,000. GE plans to have 35-kw unit for Channels 2-6, 20-kw for Channels 7-13, by second half of this year. Equipment is intended either for basic transmitter or as amplifier for existing 5-kw transmitter. Expected price is $70,000. DuMont promises 40-kw transmitter in 18-24 months, with price of $115,000. At opposite end of scale — low powers permitted in FCC's plan — RCA has in production 2-kw transmitter to sell for $45-$50, 000. Presumably, GE and DuMont also will be able to offer low-powered units of any desired size. Not least important factor in all these promises is price — generally well under what might be expected, considering pre-freeze price levels. No other manufacturers showed transmitting equipment at convention. If they have anything in the works, they're keeping it quiet. Companies showing activity or interest in the field in past are Federal, Raytheon, Westinghouse and Claude Neon's Standard Electronics Corp. (Vol. 6:5,15). * * * * NPA hasn't yet formulated policy on materials for transmitters, but it's "studying" question and appears to be sympathetic , since no great tonnages of scarce materials are needed. It's expected transmitters will be covered by NPA's upcoming Controlled Materials Plan (Vol. 7:15). Towers may be something else, since steel involved is considerable, compared with transmitter needs. Possibility is that NPA may insist that stations explore usefulness of their AM or FM towers (if any) before coming to NPA for help. Of course, any station with AM or FM tower good for TV wouldn't want to spend money on new tov/er anyway. 5 NARTB Chicago Convention Notes NARTB-TV $35,000 general managership won’t be filled until June 2 meeting of nominating committee (Vol. 7:13) in Williamsburg, Va., 2 days before full NARTB board meets in Washington. Meanwhile, counsel Thad Brown is acting. Several committeemen want FCC chair- man Wayne Coy for job, but he can’t give answer yet as to availability — presumably still undecided whether to seek reappointment when term expires June 30. There’s some doubt about Coy, due partly to his stand on color, educa- tional reservations, NARBA, “anti -trust” report, McFar- land Bill. There’s some fear, too, that educational channel promoter Comr. Hennock would get chairmanship if Coy should quit FCC — and she’s persona non grata to most tele- casters. There’s also some insistence that an organiza- tion must be set up first; as of April 19, just 58 of the 107 stations had signed, will pay monthly dues starting May 1 of one-time 5-min. or half 15-min. rate, whichever is lower. AM stations and TV applicants may join at $25 monthly. Affiliates committee formed at NARTB convention to meet with networks, discuss rate cuts, consider whole radio rate structure, meets April 24-25 at BAB headquar- ters, New York. Headed by Paul W. Morency, WTIC, Hartford, it includes: Kenyon Bi’own, KWFT, Wichita; Walter Damm, WTMJ, Milwaukee; R. M. Fairbanks, WIBC, Indianapolis; Leonard Kapner, WCAE, Pittsburgh; Edgar Kobak, WTWA, Thomson, Ga.; Clair McCollough, WGAL, Lancaster & WDEL, Wilmington; John Patt, WJR, Detroit; Robert Swezey, WDSU, New Orleans; George Storer, Fort Industry; Ben Strouse, WWDC, Washington; G. Richard Shafto, WIS, Columbia, S. C.; Hugh Terry, KLZ, Denver. Defense Mobilizer Wilson told broadcasters they would not get priorities for building new TV stations, but must “compete with other essential industries” for materials. He spoke on DuMont closed circuit from Washington at TV luncheon April 19, viewed by more than 500 on 16 DuMont 19-in. sets. His main plea was “hold the line” on inflation, but in answer to question regarding TV set production, he replied that there would be periodic cut- backs during next several years of mobilization program but that there should be “substantial” overall output. Appeal from FCC’s FM functional music crackdown (Vol. 7:15), with NARTB backing, was assured when asso- ciation passed resolution to back up any fight challenging legality of ruling. Manufacturers remain principal stum- bling-block to FM, according to Everett L. Dillard (WASH, Washington), who told convention: “Frankly, we of the FM broadcasting industry are tired and disgusted with .stepchild treatment from the manufacturers ...” NARTB had 1446 members as of March 1, of which 43 were TV, 70 associates. It took in $847,052 from Jan. 1, 1950 to Feb. 28, 1951 (of which $792,929 was in dues) and spent $871,044 — or $23,992 more than income. Heaviest expenses were salaries, $459,793; general and office ex- penses, $209,583; travel, $105,529. Full line of studio equipment was shown at NARTB convention this week, for first time, by General Precision Laboratory. Included were studio and field camera chain at $12,250 (less image orthicon), and synchronizing gen- erator and video switcher ($7500) to be used with new $3200 16mm GPL projector. NARTB convention in 1952 will be held April 26-May 2 at Waldorf-Astoria in New Yoik. Next board meeting is June 4 in Washington, at which time newly chosen president Harold Fellows (Vol. 7:14) takes office. Program standards for TV' — “before somebody does it for us” — is object of 5-man TV committee set up by NARTB at April 19 Chicago meeting. Committee will call conference of telecasters in May or June to appraise “plunging neckline” and excessive commercialism. Plan is to meet before FCC conference (Vol. 7:3-5) takes place. Committee: Robert Swezey, WDSU-TV, chairman; Clair McCollough, WGAL-TV & WDEL-TV; George Storer, Fort Industry; F. M. Russell, NBC; Chris Witting, Du- Mont. All Fort Industry stations are in the black, v.p. Lee B. Wailes told telecasters at operating cost session April 19. He said one station (unnamed) had 400% increase in busi- ness first 4 months this year compared with same period last year, only 46% increase in costs. He gave following breakdown of expenses in Fort Industry TV stations (WJBK-TV, Detroit; WSPD-TV, Toledo; WAGA-TV, At- lanta): Programming, 40%; engineering, 30%; sales, 15% (ranging from 8 to 18%); administration & general, 15%. Siaiion Accounts: Adjacencies and spots for Dodgers games on WOR-TV, sponsored by Schaeffer Brewing Co., add up to imposing array of sponsors: Talk to the Stars following each game, 15-min. for Mennen Co. and Tide- water Oil; Happy Felton's Knothole Gang, Curtis Candy Co.; time signals, Elgin Watch Co.; 20-sec. spots. Life Magazine, Kreml, Bromo-Seltzer, Kools, Spuds, John T. Stanley Co. (shaving cream) . . . New beauty-health show on WJZ-TV, Mon. 2:15-2:30, is Claire Mann Glamour Show, sponsored by J. Ossola Co. (Buitoni starch-reduced spaghetti, Torini olive oil & olive mix), thru Carlo Vinti, N. Y. . . . Prize Beer sponsoring Texas travelog films on WOAI-TV, San Antonio, to be made available to other stations . . . City Furniture Co., Chicago, sponsoring Here Comes the Bride, actual wedding ceremonies, in its Engle- wood store, Mon. 9-9:30 p.m. on WGN-TV . . . Add baseball sponsorships: Baltimore Orioles on WMAR-TV, 2 games weekly, first half of each by Gunther Beer, second half by Atlantic Refining . . . Among other advertisers cux’rently reported using or preparing to use TV: Cyma Watch Co., thru Irving Berk Co., N. Y.; Waverley Fabrics, thru An- derson, Davis & Platte, N. Y.; Sick’s Seattle Brewing & Malting Co. (Rainier beer), thru Western Agency Inc., Seattle; Olympic Distributors (Nids chlorophyll tablets), thru Vic Knight Adv., Los Angeles; John T. Stanley Co. Inc. (Stanley’s Castile shave cream), thru Posner-Zabin Adv., N. Y.; Pure Frozen Lemon Juice Corp. of America (Nilcar), thru Newby & Peron, Chicago; Hawaii Visitors Bureau, thru Holst & Cummings, Honolulu; United Frozen Foods Corp. (Simple Simon pies), thru Davis & Co., Los -4ngeles; American Chemiatric Corp. (Refresher gum breath deodorant); H. Fox & Co. Inc. (U-Bet syrups), thru Paul Smallen Adv., N. Y. (WABD); Mt. Rainier Bulb Co. (mail order gladiola bulbs), thru National Radio Adv., Seattle (WABD). Network Accounts: standard Brands (Chase & San- born instant coffee. Tender Leaf tea) will sponsor Mon.- Wed.-Fri. 1:46-2 segments of Garry Moore Show on CBS- TV, thru Compton Adv.; Junket Brand Foods will take Thu. 1:30-1:45 portion, thru McCann-Erickson. Starting dates not set . . . Colgate-Palmolive-Peet May 7 starts Strike It Rich on CBS-TV, taking Mon.-Wed.-Fri. 11:30 a. m. -noon editions of across-the-board series, thru Wm. Esty Co.; Steve Allen Show will move to Mon.-Fri. noon-1 . . . Gillette May 5 will sponsor Kentucky Derby film on CBS-TV, Sat. 9:45-10, thru Maxon Inc., N. Y. . . . Arthur Godfrey’s morning AM show on CBS, Mon.-Fri. 10-11:30 reported likely simulcast next fall with present sponsors Toni, Reid Murdocli Div., Lever Bros., Pillsbuiy, Naiional Biscuit Co. & Chesterfield expected to back TV edition also. - 6 - Financial & Trade Notes: Motorola reports first quarter operations were “maintained at a relatively high level,” sales exceeding $46,000,000 compared with $35,800,- 000 for same 1950 period. Eai-nings before taxes, president Paul V. Galvin reported to stockholders April 16, likewise attained new peak for quarter, but final figures aren’t ready yet. Mr. Galvin stated home and auto radio sales should maintain satisfactory volume second quarter but that TV volume “tends to I'educe in the second quarter . . . down- ward trend usually continues until the third quarter.” Communications business, including microwave, has been stimulated by civilian defense requirements. Notice of stockholders meeting to be held May 7 discloses that, of 897,605 shares outstanding, Mr. Galvin owned 52,769 as of last Feb. 21; Robert Galvin, executive v.p., 64,258; Elmer H. Wavering, v.p., 10,450; George R. McDonald, v.p., 5170; Walter H. Stellner, v.p., 4400; Dannel E. Noble, v.p., 2933; Frank J. O’Brien, v.p., 2907; Matthew J. Hickey, di- rector, 2444. In addition, the Galvins held beneficial inter- est in 108,906 shares held in trust for estate of Lillian A. Galvin, deceased. President Galvin’s 1950 salary was given as $75,000, that of each of the 6 vice presidents ap- proximately $50,000. Magnavox reports $13,609,000 sales, $640,000 net profit (88(1 per share on 709,374 common shares) for first quarter 1951, compared to $8,901,000 sales, $625,000 profit (89<1 on 676,289 shares) in same 1950 quarter. For 9 months to March 31, sales were $39,398,000, net profit $2,454,000 ($3.40) vs. $22,678,000 sales and $1,400,000 profit ($2.04) for comparable preceding period. Defense contracts on books exceed $20,000,000. Magnavox will redeem 4000 shares of Class A preferred stock next June 1 at $15.75 plus accimed dividends — those called for redemption being selected by lot by Ft. Wayne National Bank. Right to con- vert into common shares holds until 5 days prior to redemp- tion date. Up to April 12, total of 49,575 Class A shares had been voluntarily converted, leaving 50,425 outstanding. Stromberg-Carlson will report net income of $243,113 (63^ per share) on sales of $8,163,951 for first 1951 quar- ter vs. $63,480 (lO^i) on sales of $6,707,796 same 1950 quar- ter. At stockholders meeting April 25, management will fight effort of Bernard Fein, ex-Ansley, to “try for control” with proxies opposing authorization of 500,000 additional shares of common stock, contending his “Independent Stockholders Committee” aggi’egates only 560 shares of common stockholdings. Olympic Radio stockholders meeting has been called for April 23 at company plant, proxy notice disclosing president Adolphe A. Juviler owner of 82,400 common shares (24%) of the 338,263 outstanding, drawing $44,550 salary in 1950; Percy Schoenen, executive v.p., 22,660 shares (6.7%), salary $30,550; Morris Sobin, v.p., 800 shares, salary $28,300. Company’s record 1950 sales- earnings were reported last week (Vol. 7:14). Muter Co. first quarter sales, including subsidiary Jensen and Rola companies, were $4,565,000, net profit $293,033, or 45(': per shai-e on 651,200 common shares out- standing. This compares with sales of $2,819,000, profit of $219,137 (34c on 296,000 shares) for same 1950 quartei'. Aerovox first quarter sales were up 20% over $4,700,- 000 of first quarter 1950, reports April 17 Wall Street Jour- nal, with earnings off “slightly” due to higher taxes and defense orders “picking up fast.” CBS consolidated gross income was $39,323,391, net profit $1,276,054 (74c‘ a common share) after $2,225,000 taxes foi‘ quartei’ ended March 31 vs. $30,809,064 sales and $1,304,050 earnings (76(‘) after $1,651,700 taxes for same 1950 period. Trade Personals: Charles H. Atkin, supeiwisor of in- dustrial relations, Westinghou.se plant at Fairmont, W. Va., appointed to same post in company’s new Elec- tronic Tube Div., temporarily headquartered at Bloom- field, N. J. . . . Louis C. Kunz appointed production mgr. for CR tubes in GE Tube Div., Schenectady . . . . J. J. Farrell, engineer in charge of commercial products, ap- pointed asst. mgr. of engineering, GE Commercial Equip- ment Div., Syracuse; L. H. Junken, design engineer, named division engineer of engineering service . . . E. K. Glauber, ex-Easteim regional mgr., named gen. mgr. of Admiral-owned distributing branches under v.p. Clarence S. Tay . . . Edward A. Pecara, cx-Zenith, appointed sales promotion mgr.. Motorola . . . H. L. HolTman, Hoffman Radio has been presented Helms Athletic Foundation Award for “noteworthy contribution to sports’” in con- nection with sponsorship of football telecasts . . . Bonnel W. Clark, retired Westinghouse sales v.p., named direc- tor, NPA Electrical Equipment Div. Marvin J. Kelly, executive v.p., elected president of Bell Laboi’atoi’ies April 20, suceceding Dr. Oliver E. Buckley, appointed by President Truman as chairman of new science advisory committee of ODM. ■ GE announced uh£ converter (called “translator”), will show it at July Music Merchants’ convention in Chi- cago. Like Crosley’s (Vol. 7:15), it’s continuous tuning, covering whole uhf band, easily attachable to present vhf sets. In memo to distributors, GE asserts conveider is best means of achieving uhf with present sets, that combination vhf-uhf sets aren’t now being offered because customer would be “forced to pay premium” for facilities which may not be used for long time. Price and perfonnance weren’t disclosed, but GE says that it will be “competitive,” prob- ably meaning $50 or so, and that unit worked satisfactorily during several months’ tests at Bridgeport. Stackpole Carbon Co., St. Marys, Pa., has developed ferrite type transformer cores for TV-radio uses which contain neither nickel nor any other material currently on critical list. Known as Stackpole “Ceramag No. 8,” this material, like Henry L. Crowley Co.’s “Croloy C-4” (Vol. 7:15), is said to be interchangeable with nickel-con- taining ferrite cores. Stackpole’s Electronic Components Div. says new material has been turned out in production lots and is now ready for commercial production. Spi'ague Electric Co. last April joined with Philips Industries Inc. to form Ferro.xcube Corp. of America (Vol. 6:29) which is now commei’cially producing ferrite core material de- veloped by Philips Research Labs in Holland and said to have superior characteristics to old-type ferrite and con- taining no nickel, cobalt or other critical alloying ma- tei'ial — also interchangeable with old-type cores. Color TV seemed to be furthest from NARTB conven- tioneers minds. Only FCC Chairman Coy seemed worked up about it, saying: “To me it is the most exciting and most effective communications medium ever devised ... It can be- come the most profitable medium.” He reiterated convic- tion that Supi'eme Court would uphold FCC decision, took ci ack at those who termed color issue “academic” because of impending materials shortages by citing first-quarter 1951 production of 2,200,000 sets. “It is my view,” he said, “that so long as TV sets can be made, color in TV need not be denied the American people.” Paramount’s interest in Lawrence tri-color tube (Vol. 6:18-36), through Chromatic Television Laboratories, amounts to 50%, president Barney Balaban reveals in an- nual report. “I can now repoi-t,” he states, “that Chro- matic has produced practical color TV tubes. These tubes also appear to have considerable value for military pur- poses.” Paramount has yet to show off tube. WITH AM~FM REPORTS Trade Report April 21, 1951 1519 CONNECTICUT AVE. N.W. / WASHINGTON 6, D. C. • TELEPHONE MICHIGAN 2020 OUTPUT RECEDES, CONTROLS BEING FELT: There can be little doubt, now, about shortages — once present stocks are cleared. The industry was told some cold, hard facts at Tuesday meeting with defense production officials (see p. 10). Nickel and tvingsten curtailments mean fev/er tubes, and tubes can determine rate of output. Next quarter, nearly all controls will be tighter, shortages worse — as natural by-product of gradually accelerating military production, as well as CMP (Vol. 7:15), which will set aside materials for practically all hard goods except consumer durables. It's not known how much will be left for consumer items such as TV-radio, but we've heard dire warnings — for instance, that of the copper produc- ers, who April 19 told NPA there may be no copper left after CMP allocations. TV production was down considerably first 2 weeks of this quarter. Trade slowdown is undoubtedly responsible, but even if TV sales were brisk we'd see some slackening of production rate all through this quarter, because manufacturers now must restrict their output to conform with quarterly and monthly quotas set by NPA steel order (Vol. 7:10-11,14). First week of second quarter (ended April 6) saw TV output drop to 140,964 (5393 private brand) from preceding week's 157,771, while factory inventories rose to 324,859 from 269,448 at end of March (Vol. 7:14). Second week (ended April 13) TV output fell still further — to 133,576 units (3864 private brands) and factory inventories rose to 386,307. Radios held up better, first April week's output totaling 332,463 units, leaving only 133,338 in factory inventories; second week 351,652 output and 156,445 in inventory. Radio breakdown for April 6 week; home radios 179,296, auto 121,959, portable 31,208. For April 13 week; home 158,206, auto 155,374, portable 38,072. SLIGHT SALES PICKUPS, OUTPUT DOWN: Baseball and the MacArthur homecoming helped sell some more TV sets this week — but the general outlook remained cloudy as piled-up stocks moved too slowly to offset even reduced production rate (see figures above). Pickups in business were noted in some major markets, notably along West Coast, with low-end receivers selling quite well. And there were strong forces at work seeking to persuade Federal Reserve Board to relax Regulation W and pressure FCC to greater haste toward ending new-station freeze. Adding his voice to industry's, mindful of big cuts in factory payrolls throughout electronics field, lUE president James Carey urged FRB to allow TV trade- ins under some sort of blue-book plan (Vol. 7:13), speaking before Pennsylvania CIO convention last week. His union was also active in Washington (see p. 8). AFL's IBEW reports it is asking FRB to return Regulation W to last year's level (15% down, balance 18 months in lieu of 25% and 15 months), and will urge FCC "to grant TV station licenses in some of the uncontested localities." FRB hasn't yet taken up industry proposal to permit blue-book values on trade-ins applicable to down payment, but outlook wasn't regarded with too great hope within industry circles because of complex price history of TV's multifarious models. Proposal hasn't been turned down, at least. There's cold comfort, at moment, in fact that (a) most consumer durables, notably autos, are suffering same sudden recession of buying as TV, their industry leaders also fearful of continued depression; (b) nearly all the business services and commentators seem to be of one accord in predicting upturn after swollen inven- tories — soft goods as well as hard — are disposed of. The pundits argue that people have jobs, there's plenty of money in circula- tion, inventory glut is temporary. Said United States News, for example, speaking of business generally; "Business firms, bothered over heavy stocks, probably will be glad they have 7 - 8 - them as the year wears on. Inventory dumping appears to be inadvisable. Trade prospect for the year as a whole points to a record business voltune . . . What ' s going to happen is that consumer demand will revive in the months ahead. But production of civilian hard goods won't pick up. It will decline. So wholesalers and retail- ers can expect to find buyers for the goods on hand." Federal Reserve Board, making public a survey made for it by U of Michigan Research Center, noted no decline in consumer plans to buy TVs, radios, furniture, refrigerators and other appliances — not even during first half of this year. Outlook was less optimistic for auto purchasing, said statement, which noted; "To the extent that consumers may have been unduly doubtful concerning the availability of goods and their own financial prospects at the beginning of the year, it is possible that purchases later in the year may be larger than is indi- cated by buying plans." Surprisingly, survey showed only 3-4% of consumers indicated their buying plans were being affected by Regulation W. HOW LABOR WOULD NEET LAYOFF PROBLEM: Pov;erful lUE-CIO's president James Carey and delegates from hard-hit locals (who claim 100,000 in TV-radio industry) have been visiting govt, agencies with rather startling proposal for "industry-labor-govt." program to attack unemployment and reconversion bottlenecks in the industry. Union says more than 20,000 workers have been laid off thus far, blames "breakdown in mobilization agencies' electronics program, govt, credit regulations and refusal of companies to share any sacrifices required in transition period." To share these sacrifices, Carey wants TV-radio companies to "pay a special unemployment benefit to those laid off — this money to come from 1950 profits." He estimates "f\ind of S12,500,000, or less than 10% of the industry's 1950 profits after taxes, would pay 20,000 workers $40 a week for 15 weeks." Delegation took this proposal to NPA chief Manly Fleischmann, Munitions Board vice chairman Harry K. Clark and Federal Reserve Board member R. M. Evans. Rest of union's "reconversion program" is less controversial, much of it coinciding with long-time pleas of TV-radio industry. lUE urges ; (1) Immediate cing of initial military production orders and allocation of materials "to keep the labor force fully intact until military electronics pro- gram is fully underv/ay. " (2) Relaxation of govt, credit controls. (3) Reconversion of TV-radio plants immediately to handle military production. (4) "Intensive training in military electronics field" for TV-radio industry's labor force. In speech to Pennsylvania CIO convention last week, Carey demanded that Federal Reserve Board "review this discriminatory Regulation W and at the very least permit people who want to trade in old TV and radio sets to have the same rights as those who trade in autos — to apply the trade-ins against the down payment." CAUSES & EFFECTS OF TV-RADIO SLUMP: Why the present confused situation in TV-radio? Answer is simply; uncertainties resulting from rearmament program and inescapable controls which accompany any mobilization effort. Diagnostician is RTMA chairman Robert C. Sprague, speaking April 20 before Chicago meeting of Armed Forces Communications Assn. His words bear repeating; "No doubt many persons outside the industry may question [my diagnosis] in the light of the high production of radio and TV receivers during the first quarter of this year. Frankly, it has surprised many of us in the industry. [But] an explanation is not hard to find. "With the outbreak of the Korean war, manufacturers began preparing them- selves for widely-predicted shortages to come. They knew that military contracts would not be immediately forthcoming to fill the gap caused by these shortages. They bought all the components they could find and afford, and even with the high production of last fall and v;inter were able to put some of these components into inventory. Parts and tube manufacturers also increased production in response to heavy orders from set producers, and in anticipation of material shortages. These actions were perfectly natural and to be expected of alert business men. "In addition, both set and parts manufacturers speeded up their efforts to 9 reduce the use of critical materials. They found that through redesign of equipment and components they could conserve hard-to-get materials and substitute less criti- cal materials without in any way impairing efficiency or performance. Our industry has a reputation for ingenuity. When the stimulus of necessity is added to the in- centive of cost saving, that ingenuity can achieve spectacular results. "The post-Christmas season is normally a slack one. This year, however, the circumstances cited induced everyone to produce beyond the immediate market needs in anticipation of increased shortages. Meanwhile, production costs have risen, credit restrictions have been tightened, and the 10% excise tax on TV sets was beginning to be felt. Consequently, the accumulation of heavy inventories... "In our industry, the feast-or-f amine pattern seems to be traditional. There is seldom a period that might be called normal — that is, when supply and demand are in perfect balance. Last fall TV sets were short and on allocation to dealers; during the first quarter of this year there was an over-supply, and by mid-year or early fall they will probably be in short supply again. " Topics & Trends of TV Trade: w estem union’s venture into TV servicing field, in cooperation with Du- Mont, is frankly starting out May 1 as trial run of what may turn into nation-wide service for any make of receiver. At outset, newly formed subsidiary Western Union Serv- ices Inc. will simply install and service DuMont receivers in Essex, Passaic and Union counties, in New Jersey, get- ting usual $65-$85 installation-plus-annual service fee or else a “per call” fee. and paying dealers 10% on service contracts they sell. Expansion of idea, which grew out of conversations be- tween Dr. DuMont and Walter P. Marshall, WU president, depends on how public takes to it; also on availability of manpower. WU’s first maintenance center is located at 1 Evergreen Place, E. Orange, N. J. President of subsidiary is WU v.p. Thomas F. McMains, with WU plant-engineering v.p. S. M. Barr vice president and director. Mr. McMains foresees “millions of new TV homes” and growing need for “efficient and reliable re- ceiver servicing” as TV expands westward, and stated the 100-year-old telegraph company is in good position to provide such servicing by reason of its experience with wide range of ultra-modem electronic devices. * ♦ * * In effort to liquidate inventory. Admiral is putting big promotion breaking April 22, behind unusual premium deal whereby dealers can give away, with each purchase of an Admiral console, one of its 3-speed phono-radio table units listing at $90. Sales v.p. Wallace C. Johnson, in let- ter to 25,000 dealers, outlined plan whereby with each Model 27K15, 27K16 or 27K17, retailing in $350 range (Vol. 7:1), distributor will sell him the $90 radio-phono for $14.95, or about one-fourth the wholesale price. For every higher-priced TV console the dealer orders, begin- ning with Model 27K25, which retails at $369.95, dealer gets the radio-phono unit free. Retailers may also buy one radio-phono unit at $29.95 each for every Admiral console in inventory purchased on or before March 3. Deals will be made “only as long as it takes to clear out existing TV stock now held by Admiral distributors.” They don’t apply to Admiral’s plastic con- sole Model 27K12, recently reduced from $280 to $250 (Vol. 7:11). * * * * Exemption from excise tax of TV-radio and other com- munications equipment sold to U. S. or “any allied govt.” is object of H.R. 3603, introduced April 9 by Rep. Kean (R-N. J.), referred to House Ways & Means Committee. Exemption would apply also to parts used in equipment made for Govt. Trade Miscellany: Admiral this week celebrated jubilee, with production of its 2,000,000th TV receiver . . . Muntz states it’s now making 12,500 sets a month, reports its 50 retail outlets have doubled sales since 17-in. leath- erette table model recently was cut to $149.95 . . . Sylvania receiver plant in Buffalo has cut TV output about 25%, cut force from 3200 to about 2600 . . . Trad Television Corp., producing mainly private label sets, announces 17-in. consolette at $219.95, 20-in. at $279.95 . . . RMA of Canada delegates, at last week’s joint meeting with RTMA, predicted 55,000 TVs will be sold in that country this year, as against about 35,000 last year (Vol. 7:15) . . . DuMont has appointed Companhia Auto-Lux Importadora as distributor for Rio de Janiero & Sao Paulo, Brazil, as result of receiver sales mgr. Ernest Marx’s recent visits there . . . Philco, hedging for its distributors against cur- tailed TV-radio demand, has added to its accessory line a 7-piece stainless steel kitchen tool retailing at $12.95; it includes potato creamer, masher, dipper, ladle, utility spoon, spatula, fork, is made by Ace Products Co., Chal- font. Pa. . . . GE reports new TV warranty policy guar- antees replacement tubes 6 months from date of purchase, superseding old deal guaranteeing them 6 months fi’om shipment from factory . . . Stromberg-Carlson this week laid off 200 workers due to TV curtailments . . . GE ship- ping 1500 chassis, 400 complete TV sets to Brazil, making 4700 for which it has x’eceived import licenses thus far. Plant Expansions: Westinghouse’s new Electronic Tube Div. (Vol. 6:51) will occupy 3 plants, first to be $4,000,000 one-story structure covering 3 acres near Bath, N. Y., employing 2000 on military production; second plant is now being built at Horseheads, N. Y., near Elmira (Vol. 7:10); site for third hasn’t 3^et been chosen. . . . Westinghouse, for new Aii’-Arm Div. under v.p. Walter Evans, who also heads Electronics & X-Ray Div., has pur- chased 75 acres adjoining Baltimore Friendship Airport for new 400,000 sq. ft. plant to be completed by autumn and to employ 2500-3000 by end of 1952. RCA has added new TV console (Model 7T125) to its 1951 line, making total 15 models (Vol. 6:51). It’s 17-in. Provincial in mahogany, walnut or maple, with 2 full doors, lists at $425, delivery in mid-May. Other Provin- cial in line is 9T128, a 19-in. 4-door console at $495. Hofifman Radio’s expanded line of TVs, announced this week, includes 14-in. mahogany table (Model 639) $199.95, oak $209.95; 17-in. mahogany table (637) at $309.95, oak $319.95. These have been tested on Pacific Coast, will now be released for Eastern distribution. RTMA annual meeting has been scheduled for June 8-9 in Stevens Hotel, Chicago. NICKEL PINCH, FEWER TUBES INEVITABLE: NPA laid facts on the line this week — told electronics executives there won’t be enough nickel available this year to prevent dislocations in receiving tube industry. For TV-radio manufacturers and "assemblers, " NPA held out the hope that inequities in steel order M-47 (Vol. 7:10-11,14) may soon be corrected. Speaker makers were told that while cobalt outlook won't be any better, it probably won't be any worse during May and June. But nickel crisis, affecting every segment of electronics industry, was pre- dominant theme of NPA's April 17 meeting with its Component, End Equipment and Receiving Tube industry advisory committees (for those attending, see p. 11). Tube manufacturers presented scale of minimum nickel requirements — May 250,000 lb., June 225,000, July 200,000 — and warned cuts below these figures would jeopardize industry, weaken its capacity to produce for defense orders. Govt, production officials shook their heads, said tube industry can expect far less than 200,000 lb. a month beginning in May. April's allotment actually was less than 170,000 lb. Only way tube industry can get more nickel, NPA men made clear, is to take it away from the military, an unlikely prospect. Lead time — period it takes to process and fabricate nickel alloys — is 3-5 months. Tube makers will thus feel April's shortage in August and September. Tube industry is already feeling cumulative effect of months of "little shortages." * * * * One big factor behind NPA's reluctance to shake loose relatively small amount of additional nickel for tube industry, it was learned, is ramifications such a move would have among hundreds of other nickel-using industries. Although tube industry doesn't use much more than 1% of U.S. nickel, many other industries could also make strong case of their essentiality as basis of plea for more nickel. An NPA metals expert put it into words of one syllable for us; "For the sake of argument, let's say there are 100 industries, each of which normally uses 1% of America's nickel supply. Comes the rearmament program and we chop a big hunk out of that supply for new military uses — jet planes, for instance. We chop out another hunk for the stockpile, and you can see everybody's got to take a cut, and there can't be any exceptions." Oft-heard warning that tungsten — only known tube filament material — may soon be worse shortage problem than nickel, was repeated by NPA officials. They said real pinch in tungsten supply may be felt by July. Tube industry was urged to assure that adequate supply of new tubes flows into replacement channels, lest NPA take situation into its own hands through new restrictive regulations. ♦ ♦ ♦ ♦ Cobalt will be available to TV-radio industry during May and June at about same rate as April — 29-30,000 lb. for all uses, or about 25% of normal require- ments (Vol. 7:13) — NPA officials said. They praised industry's conservation efforts, asked for still more. Question of electromagnetic speakers was brought up by set makers, who have learned the hard way that tales of cobalt conservation don't cut much ice in con- vincing NPA's Copper Div. to provide extra copper to replace cobalt. Set manufacturers who have conserved substantial amounts of copper. NPA spokesmen suggested, might "lend" part of their base periods to their speaker sup- pliers for use in obtaining copper wire for electromagnetic speakers. But it was emphasized that set makers must save considerably more copper than they ask NPA to approve for their speaker makers under any such arrangement. There's good chance 2 most objectionable features of steel order M-47 will 10 - 11 be swept away, Asst. Administrator Horace McCoy indicated at NPA-industry meeting. Some manufacturers protested section of order which limits second quarter output of so-called "assemblers" to 80% of sets they produced during average quarter of first-half 1950 (Vol. 7:11). They said it discriminates against some set makers and discourages conservation efforts, and asked that "assemblers" be limited on basis of use of steel as are "manufacturers". McCoy said request would be given favorable consideration. Second objection was to "strait-jacket amendment" to M-47 (Vol. 7:14), which in effect freezes manufacturers' "mix" of production as between radios, TVs, radio- phonos , TV combinations and phonos. Industry pointed out intent of amendment was to prevent manufacturers from skimping on output of lower-priced lines and concen- trating on high-end items — but its effect is just the opposite. In light of present trade conditions, they said, set makers want to produce more low-end items, but steel order forces them to turn out higher-priced combina- tions in same proportions as first-half 1950. Set makers asked permission to divert some of steel earmarked for TV-phonos to TV-only sets, some of steel reserved for radio-phonos to more saleable smaller radios. Steel order now divides TV-radio products into 5 groups. Steel quotas (80% of use during average first-half 1950 quarter) can't be shifted from one group to another. Groups are: (1) radios, (2) radio-phonos, (3) TV-only, (4) TV-radios, TV-phonos, TV-radio-phonos , (5) phonos, record players. Industry wants groups 1 & 2 combined, groups 3 & 4 combined. This can probably be arranged, McCoy said, but he warned NPA will be watching for "abuses". Industry's collective estimate of 1951 production, offered in response to NPA query: 5-6 million TVs, 10-15 million radios. Mobilization Notes: Seven certificates of necessity for rapid tax write-off of $9,688,168 worth of new plant facil- ities for electronic and related production were granted by DPA between March 7 and April 6. They represented only small portion of the 396 certificates issued for $1,310,- 799,399. Of the 7, Sylvania got 3 totaling $7,942,353. Certificates granted Sylvania; For production of sub- miniature tubes, at Burlington, la., $4,252,322 at 75% amortization; tungsten & molybdenum fabrication, To- wanda, Pa., $2,899,335 at 80% ; electron tubes, Warren, Pa., $790,695 at 80%. Certificates granted other electionic firms: Bendix, aircraft communications & radio equipment, Towson, Md., $1,008,474 at 75% ; Titeflex luc., radio & ignition com- ponents, Newark, $289,065 at 80% ; Litton Industries, mag- netron tubes, San Carlos, Cal., $248,277 at 85%; Good-All Electric Mfg. Co., metal-clad condensers, Ogallala, Neb., $200,000 at 75%. Of 258 ceilificates granted by NSRB from Oct. 30, 1950, to Jan. 25, only 7 wei’c for electi-onics manufacture (Vol. 7:10), and 3 more for electi’onics appeared on pre- vious DPA list of 228 granted Jan. 25-March 7 (Vol. 7:11). New procurement policies “to provide maximum aid for small business” v.^ere announced this week by Defense Dept. They include: (1) Assignment of small business specialists to all armed service procurement offices. (2) Division of negotiated procurements into small lots to allow multiple contract awards. (3) Program to encour- age subcontracting. (4) Payments of “price differential in negotiated procurements to accomplish the objectives of broadening the industrial base of suppliers.” NPA is also planning “special treatment” for small business. -\imy announced plans to open 34 more sample display and procurement information centers as aid to small busi- ness. Of these, Signal Corj)s will get one new centei- — at 2soo So. 20th St., Philadelphia — in addition to the pres- ent one at Ft. Monmouth, N. J. Air Force, citing “favor- able reception” of last February’s subcontractor clinic in New York (Vol. 7:7-8), is scheduling similar displays by prime conti-actors in 5 other cities, beginning in Chicago April 30, and later in Boston, Detroit, Los Angeles and Fort Worth. Munitions Board, in announcing January total of mili- tary contracts reached $3,984,000,000, revealed that small business received 73% of contracts, but only 17% of dol- lar value. During Januai-y, contracts negotiated directly (rather than awarded by bid) soared to 84% of total value, with small business receiving 13-14%. Members of 3 industry advisory committees who met with NPA officials April 17: End Equipment Committee — R. A. Graver, Admiral; C. W. Thompson, Arvin; J. W. Craig, Crosley; H. C. Roemer, Federal Telephone & Radio; W. J. Halligan, Hallicrafters; Dr. W. R. G. Baker, GE; A. A. Juviler, Olympic; Franklin Lamb, Tele King; J. B. Elliott, RCA; Ray C. Ellis, Raytheon; R. Alexander, Wells- Gardner; Fred Lack, Western Electric. Receiving Tube Committee — J. M. Lang, GE; J. Q. Adams, Hytron; W. J. Peltz, Philco; K. C. Meinken, National Union; Carl Hollatz, RCA; N. B. Krim, Raytheon; R. E. Carlson, Tung-Sol; R. F. Marlin, Sylvania. Components Committee — W. E. Wilson, Acme Electric; George Bliley, Bliley Electric; A. D. Plamondon, Indiana Steel Products; H. A. Ehle, International Resistance; A. P. Hirsh, Micamold; L. F. Muter, Muter Co.; W. R. Reisner, Reisner Mfg.; Sarkes Tai-zian. Sarkes Tarzian Inc.; R. C. Sprague, Sprague Elec- tric; J. J. Kahn, Standard Transformer; Max Balcom, Sylvania; C. E. Williams, DuMont; R. F. Sparrow, Mallory. Canada will put nickel under complete allocation be- ginning May 1. Canadian, U. S. and British defense pro- duction will get top priority, but Canadian civilian indus- tries aren’t expected to be cut off com]fictcly from sup- plies of the .strategic metal. Similar orders placing eoj)- per, aluminum, lead and zinc under controls are expected soon from Canada’s Defense Production Department. 12 - Telecasting Notes: Emilio Azcarraga’s XEW-TV, Mex- ico City’s second outlet, has been televising baseball twice weekly since Mai’ch 22, one night and one day game, as sort of test schedule on Channel 2, plans to increase time on air gradually to reach 5 hours daily by Sept. 18, date of inauguration of new Televicentro, which Mr. Azcarraga says will contain finest studios on the continent . . . With application of Providence Jounial to purchase WCFI, Paw- tucket, Attorney General J. Howard McGrath, agent for Pawtucket firm and executor for estate of one of owners, severs identity with radio; 2 other members of President Truman’s cabinet have TV-radio interests — Secretary of Commerce Sawyer, owning AM stations in Dayton & Springfield, 0., and Secretary of Navy Matthews, who con- trols WOW & WOW-TV, Omaha . . . ABC has purchased 4-story and penthouse showroom building at Broadway & 70th St., New Yoi'k, for $416,500, acquiring 50,000 sq ft. more space for TV operations, centered mainly in old New York Riding Academy at 6 W. 66th St. thru to 67th St. . . . CBS office workers (publicity and news writers, secre- taries, clerks) voted 308-290 this week against joining CIO American Newspaper Guild . . . Philco reports AT&T now installing its 6000-7000 me microwave equipment to link Cincinnati-Dayton, service to start May 14; similar short- haul links were supplied recently for linking Binghamton into Schenectady-Utica and Richmond-Norfolk . . . Pro- gram Advisory Board of 12 industry, education, religious leaders formed by WAAM, Baltimore, to counsel station on public interest seiwices . . . Crosley TV stations (WLWT, WLWC, WLWD) have appointed MCA as agent for syndication of their programs having national po- tential . . . WDTV, Pittsburgh, has raised base hour rate from $600 to $800, one-min. from $100 to $125 . . . First strike ever against a TV station (Vol. 7:15) ended this week after 3-week walkout (during which strikers argued their case over station) when Los Angeles’ KFI-TV man- agement agreed to discuss tenns with TV A. PerSOnsl Notes: Harry M. Bitner, onetime publisher of Pittsburgh Post-Gazette, now holding large interests in radio stations in Indianapolis, Evansville, Grand Rapids and Flint — his son Harry Jr. managing WFBM & WFBM- TV, Indianapolis — named one of National Production Au- thority’s consultants on printing and publishing; others are Wm. G. Chandler, Scripps-Howard; Buel W. Hudson, Woonsocket (R. I.) Call; Matthew G. Sullivan, Gannett Newspapers . . . Kingley F. Horton, CBS-TV asst, sales mgr. in New York, appointed CBS radio & TV sales mgr. for West Coast . . . Robert Hibbard acting operations di- rector of WGN-TV, Chicago, succeeding Vernon R. Brooks. . . . Norman Gladney, TV v.p. of Franklin & Gladney Inc., resigns to join Bulova Watch Co.; firm will continue pres- ent corporate name . . . Max Tendrich succeeds Lester J. Mallets as TV-radio director of Weiss & Geller, N. Y. Georgia interests, backed by Clement A. Evans & Co., investment bankers, retaining two-thirds ownership, ap- plied this week to FCC for authority to take over Channel 8 operation from WSB-TV, Atlanta, while that station retains Channel 2 on which it has been experimenting since Journal-Constitution merger (Vol. 6:12-13, 20). Appli- cant company is Broadcasting Inc., proposing to pay $525,000 for plant, headed by Walter T. Sturdivant, knit- ting mills executive. [For details, see TV Addenda 12-0.'\ Unusual letter received by FCC from attorneys Rivet & Blum, New Orleans, said their client, one Frank W. Bennett, wanted to be on record in event early applica- tions received any i)iiority. They said Bennett plans to apply foi‘ TV in I.,ake Charles, Lafayette, New Iberia, Jeanerette, Morgan City, Baton Rouge, Iluoma, Thi- bodaux, all Louisiana. Tremendous TV’ coverage of Gen. MacArthur’s re- turn and speeches, seen live or filmed by estimated 30-40,000,000 (probably biggest audience yet), will un- doubtedly spark off new series of evaluations of “TV’s im- pact on the democratic p) ocess,” educational TV, etc. Well worth noting is that commercial sponsorships of such events, encouraged recently by FCC Chairman Coy (Vol. 7:15), tend to insure quality and quantity of public- event coverage efforts in future. Pi’obably most spectacular station effort was that of Hoffman Radio, over KNBH, Los Angeles. Films of speech before Congress were flown West by famed speed flyer Paul Mantz, televised 7 p.m. same day. Station kept au- dience informed of his positions en route. Networks, heavily sponsored, went all-out in equip- ment and personnel, with following lineup : ABC-TV — Life Magazine, two 45-min. segments be- fore and after Thu. 12:30 speech before Congress, thru Young & Rubicam. CBS-TV — Longines Wittnauer Watch Co., speech plus New York parade and reception, thru Lennen & Mitchell. DuMont — Newsweek Magazine, 30-min filmed excerpts of speech Thu. 10-10:30, thru Lennen & Mitchell; United Airlines, 45-min. of New York arrival, thru N. W. Ayer & Son; Collier's Magazine, New York parade 11:45-1:30, thru Kudner Agency. NBC-TV — Motorola, segments before and after speech, thru Ruthrauff & Ryan; American Oil Co., New York ceremonies 11:30-1:30, thru Joseph Katz, Baltimore. New York independent WPIX rushed American Ex- press Co. commercial on air before speech just 25 minutes after receipt of order from sponsor which also bought New York ceremonies; agency was Benton & Bowles. ■ Justice Dept, and networks are studying National Col- legiate Athletic Assn. TV comittee’s college football plan (Vol. 7:15), formally approved by full committee in Wash- ington April 18. Plan provides: (1) One game to be tele- vised in each area each Saturday. (2) “Blackouts” to be imposed in each area on at least one Saturday, to study effects on game attendance. (3) No team to be seen more than twice, once when it plays at home and once , away. NBC, CBS and DuMont officials confeiTed wdth NCAA officials April 19, and seemed “interested,” NCAA TV chairman Tom Hamilton said. ABC, although invited, passed up conference. Committee discussed plan ^vith Justice Dept., but Govt, indicated it will thoroughly study matter before giving opinion on anti-ti’ust aspects. Formation of FCC Broadcast Bureau is held up, what with some commissioners desiring more time for study i and with clear majority approval of Harry Plotkin as chief still lacking. Plotkin appears to have solid backing of Chairman Coy, Comr. Walker, probably Comr. Hyde, ' with others on the fence or definitely opposed. If Plotkin appointment fails, it’s rumored chief engineer Curtis Plummer is shoo-in with 6 votes — if he wants the $11,200 job, and he may not since salary is same as he now gets. Another strong contender is Parker D. Hancock, who , heads Office of Formal Hearing Assistants. Phonevision demon.stration was given for 5 FCC com- missioners at NARTB convention Apidl 17, for broadcast- ‘ ers April 18-19 at special Blackstone Hotel showing. View- ers were addressed by Millard (Tex) Faught, Zenith pub- licity consultant, whose main point was that Phonevision was a means for broadcasters to garner additional income, paiticularly in early stages of establishing TV. Final 4 lesulls of 90-day test (Vol. 7:14) are now undergoing r (heckup by U of Chicago National Opinion Research Cen- ter. Zenith intends to do nothing until that’s completed j in a few weeks. PUBLISHED WEEKLY BY RADIO NEWS BUREAU, 1519 CONNECTICUT AVE. N.W., WASHINGTON 6, D.C. TELEPHONE MICHIGAN 2020 • VOL. 7, NO. 17 April 28, 1951 in This issue: End of Freeze Still Long Way Oft, page 1. Freeze’ Mail Flooding the FCC, jKige 2. Television Moving in on the Movies, 3. Stations Bitter But Rate Cuts Sure, jnigc J,. TV-Radio Escape Price Rollbacks, page 6. Trade Winds Blowing Nobody Any Good, page 6. Feast and Famine in Tube Industry, page 7. Defense Orders Aren’t the Answer, page 10. END OF FREEZE STILL LONG WAY OFF: Caution — once again: This freeze can't be thawed, in true sense of the word, for many months. We can't reiterate too often that there is almost no chance of any meaningful number of stations on air before late 1952. Let's be realistic about it, even assuming an optimistic view of probable snail-pace steps we know must be taken : (1) City-by-city hearing on nev/ allocation plan (Vol. 7:12), starts June 11 — unless something comes up to delay that. Bitter struggle for channels, now deemed to be worth millions, will run estimated 2 months. That means mid-August. (2) FCC mulls decision month or so, issues it, say, by end of September. (3) Applicants are given 2-5 months to file, amend. Thus, end of 1951. (4) FCC starts granting CPs — January at earliest, but only in those cities with more channels than applicants — and there will be mighty few of these. Handful of eager beavers, v/ith equipment bought on hope and speculation and already delivered, might start telecasting by spring or early summer. But majority of even these "easy" grants won't get going until late summer or fall. ' Conceivably, a few stations in Hawaii , other Territories, could get going before then if hoped-for "partial" unfreezing materializes (Vol. 7:12). (5) Really significant cities, hotly contested, must have competitive hearings — to take place during spring or summer of 1952 at earliest. Decisions on these might come in late siimmer or fall. But some of these could wind up in courts for indefinite period, if losers decide to appeal. ( 6 ) Winners of hearings could get on air during late 1952 or early 1955 — assuming transmitting equipment is available, likely unless defense needs increase. Freeze won't really be over until last step has been completed. Of course, FCC says it's trying for partial freeze-lifting on uhf without going through city-by-city hearing. Even if that does happen, only a tiny number of uhf stations could get on air this year — all of rather low power. Equipment deliveries are bottleneck in uhf. Some 1-kw units could be de- livered this year (Vol. 7:16), but GE is only manufacturer quoting dates on 5-10 kw transmitters — and it says "third quarter 1952." We say above estimate is optimistic, because we see nothing on horizon to speed things up by more than couple months at best. And there are plenty of other contingencies that might drag things out longer than foregoing timetable: (1) Congressional intervention. Plenty of this can be expected, since so many states and communities fare badly under allocation plan. Even Senator Johnson isn't very happy about way Denver comes out (Vol. 7:16). Senator Benton's resolution calling for 90-day freeze while the Senate "studies" educational channel reservations (Vol. 7:15-16) doesn't sound like much on surface, assuming such "study" could run concurrently with FCC deliberations. But situation is fraught with delay. Only NARTB-TV has seemed to appreciate delay factor in Sen. Benton's pro- 2 posal, and has told Sen. Johnson's Interstate & Foreign Commerce Committee how it feels. Everyone else seems complacent; committee has received no other comments. (2) Court delays. Many lawyers, including Communications Bar Assn., say flatly that portions of FCC plan violate Communications Act — particularly the predetermined geographical allocations and the educational reservations. A company opposing the plan as a whole — DuMont, for example, has already noted that plan permits only 2 networks on vhf basis — or disgruntled applicants might figure they have nothing to lose by appealing to the courts. This could quite conceivably tie up entire allocation in litigation for some time. Delaying action in courts or hearings might not make for popularity in an impatient industry, but the aggrieved may think their chances of getting a channel would be bettered by appeal to courts. There are other potential delays, undoubtedly, some as yet unforeseen. The color issue, chief reason for protraction of freeze to full 32 months, may flare anew after Supreme Court decision — and tie up FCC's time (and passions). And mobilization picture could change overnight, throwing every estimate out the window. TREEZE' NAIL FLOODING THE FCC: Stream of letters to FCC. constant throughout freeze, has approached flood stage since release of allocation plan March 22 (Vol. 7:12). Hundreds are on file in the docket, addressed to chairman or Commission as a whole. Individual commissioners are getting hundreds more. Members of Congress, college presidents, station managers, individuals — every type of interest is represented, with questions or comments on all aspects of the freeze. File is open, so we spent few hours studying it — and found: "When will we get TV?" is question most frequently asked. Frequently for- warded by members of Congress , letters come from every nook of the country — e.g., Butte, Mont. ; Woonsocket, R.I. ; Yoakum, Tex. ; Ashland, Mass. ; Decatur and Evans- ville, Ind. ; Yankton, S.C. ; Falls City, Neb. — in addition to those from such obvious big-city "outs" as Denver, Portland. Tampa, St. Petersburg. A few AM stations have written in. KGAF, Gainesville, Tex. , sees "nothing wrong" in uhf Channel 49 allocated there, hopes freeze ends soon, stands ready to apply. WOPI, Bristol, Tenn. , is happy with allocation, is prepared to file, plans microwave to Greensboro. WNLC, New London, Conn., is delighted; city gets Channel 3, only vhf in state besides Channel 8 assigned to WNHC-TV, New Haven. KUGN, Eugene, Ore., complains of being "left out." Channel 9, only vhf allocated, is earmarked educational. KVFD, Ft. Dodge, la., objects to vihf-only there. Montana-Washington-Oregon broadcaster Ed Craney, through Sen. Warren G. Magnuson (D-Wash.), objects strenuously to educational reservation. WGAN, Portland, Me., wrote FCC chief engineer Curt Plummer, native of Maine, saying it found how to add vhf channel to Bangor, Me. Plummer replied that plan looked good, didn't violate minimum spacing. Sen. Johnson's concern about Denver (Vol. 7:16) was expressed in April 2 letter which wondered whether vhf channels from nearby cities might be transferred to Denver if not used within 2 years. Coy replied that such shifts are implicit in allocation, if channels "remain unclaimed for a protracted period." This "protracted period," he said, is likely to vary from case to case. Correspondents from non-TV areas seem impatient enough, but letters from single-station areas — Kansas City, Pittsburgh, St. Louis, etc. — appear downright purple-faced v/ith exasperation. Queries about "booster" or "satellite" stations are rather frequent, as people hunt for means of pulling in signals just over the horizon. FCC answers that such stations would defeat purposes of allocation plan if they used vhf -uhf chan- nels, that no other frequencies are available. Educators generally commend channel reservations, occasionally complaining that their towns were given uhf instead of vhf. Only exceptions we've seen were from Clarence Decker, president of U of Kansas City, and Roscoe Shores, acting supt. of Kansas City schools. They say uhf will do, since they don't expect to get into 3 TV for a long time; moreover, cooperation of local stations has been excellent. Comr. Webster is worked up about flood of pro-educational letters he's get- ting. Seymour Siegel (WNYC, New York), president. National Assn, of Educational Broadcasters, has been urging educators to write Commission. Webster, who opposed educational reservations, has asked Siegel for copy of letter, saying; "While I am of the firm opinion that citizens have the right to express their views to the heads of govt, agencies, there is a proper time, place and means for such expressions..." Such "pressure," he said, "is of questionable propriety." Some educators say they have definite plans to build. Among these are U of Kansas , U of North Carolina, Miami U (Ohio). Last says it will need "very minimum of 2 years" to get proper approval. U of Chattanooga wants to get going, but fears great costs. However, it says, arrangements can be worked out with WDOD, "using certain facilities in common." Educational channel in Chattanooga is uhf. FCC doesn't reveal much in its replies, usually sends copy of its "Third Report" with brief summary of freeze history and status. Chairman Coy generally handles Congressional queries. In a couple letters. Coy and Comr. Jones indicate hope or expectation freeze will end "this year." TELEVISION MOVING IN ON THE MOVIES: "Straw in the wind" — and they're none too happy about it — best describes Hollywood's reaction to this week's deal with Petrillo whereby independent producer Robert L. Lippert obtained release of post-1946 feature films for TV. Major producers don't like it a bit, fear it's precedent. Nor are the big Hollywood producers joyous about emergence of new film com- panies organized to make pictures for TV. They recall how their own gigantic indus- try sprang from even humbler beginnings, are realistic enough to realize that in time the present handful of 107 TV stations will expand enormously and really become important factor in rental revenues. Negotiations between majors and Petrillo on renewals of present contracts begin this fall. These expressly forbid release to TV of any films made after 1946 — and there have been indications Petrillo considers same provisions binding on films made prior to that year. Lippert agreed to pay 5% of his gross from TV into AFM royalty fund. He also agreed to re-record music track on old films, using same number of musicians same length of time as on originals. He announced he would re-record 26 of his post-1946 films for immediate TV release. Known in trade as a "gangs and gore" film-maker, Lippert 's most recent pic- ture is The Steel Helmet, based on Korean war. He's owner of chain of 20 film houses in California, became producer in 1944, has in recent years turned out such pictures as Outlaw Country, I Shot Jesse James, Son of Billy the Kid, Arson Inc., Treasure of Monte Carlo, Apache Chief. What major producers find most significant in Lippert-Petrillo deal is 5% contribution to union fund. Only such TV film producers as Snader , Gene Autry and a handful of others had agreed to that so far. It may be Petrillo 's hedge or prece- dent against inevitable day v;hen majors will open up their vaults to TV (Vol. 7;13). * ♦ * * ♦ That new enterprise will make films for TV, if majors and other established producers don't do it, is indicated anew with formation of still another company with that in mind. It's a $1,000,000 cooperative venture, including some 50 tele- cast stations, known as Consolidated Television Broadcasters Inc. Mainspring is Harrison Dunham, ex-KTTV manager, who promoted such move for owner Los Angeles Times last year (Vol. 6:32). He's executive v.p. President is Richard Jones, WJBK-TV, Detroit, owned by Geo. Storer interests, principal backer. Already hired is Frank Wisbar, ex-Bing Crosby Enterprises (Fireside Theatre). Initial plans call for 2)^ hours of film per week for 26 weeks, each to cost between $10-20,000. Member stations will have first refusal rights in own market, rentals to be not more than 50% of card rate for running time of film. Potential of film-making for TV is indicated in statement to Wall Street - 4 - Journal by Richard Dorso, head of United Television Programs, formed recently by Standard Radio and Petry in collaboration with Century Artists (Vol. 7:2-3): "Based on conservative estimate of 6 hours of film programming per day on the part of each of the 4 networks, at an average price of $20,000 per half-hour of film, we can look for an annual $240,000,000 business here in Hollywood by 1954." Pointing to economic impact of TV film producing, already, is recent Pe- trillo edict that musicians' pay in TV field shall be $50 per 5 hours work instead of the $39.90 regular Hollywood scale, which is expected to be raised to same level. Not only are special production firms being formed to turn out TV films, but established radio program services have entered or are entering field. Already heavily involved are World (Ziv) and Goodman, as well as the Standard Radio-Petry group. New to field but already a factor is Snader. Soon to announce their entry, it's reported, are Associated Program Service and Lang-Worth. Networks are still quiet about what they intend to do, but there's little doubt they have film-making plans. Otherwise, they would not have met Petrillo's 5% royalty demand (Vol. 7:7,11). ABC already has huge Hollywood facilities (old Warner lot) and CBS has big plans under way for which it recently got financing (Vol. 7:15), and it's having its Amos « Andy series filmed. NBC is known to be shopping for studio space, with unverified talk about a tieup with Warner Bros. On exhibitor side. United Paramount Theatres president Leonard Goldenson, in 1950 annual report just issued, offers calm assurance that movies can meet threat of TV. He admits boxoffice is off more in TV areas than in non- TV, but states it's impossible yet to determine exact extent of TV's effect. After novelty wears off and set is paid for, he says, viewers become more selective. "Then, we believe, the American people, giving freer play to their gregari- ous instincts, will respond as in the past to our high-quality motion picture enter- tainment," his report states. He urges exhibitors to use TV as an "ally" — in advertising — but admits "much work remains to be done in developing techniques." STATIONS BITTER BUT RATE CUTS SUBE: Radio networks will all cut their rates shortly. They can't help it, they told Affiliates Committee meeting in New York this week. For die was cast by CBS, which sprang sudden 10-15% reductions on eve of NARTB con- vention (Vol. 7:15-16), leading to formation of protest committee. Committee chairman Paul Morency, WTIC, Hartford, indicated how seriously situation is regarded when he wrote all network affiliates this week: "If any real effort is going to be made to prevent a debacle in the radio industry, it must be made by affiliates. . .The radio industry and particularly the affiliates in it are faced with the greatest decision in the history of their operations." What they can do about it , is still obscure — but formation of permanent organization, allegiance pledge of stations before committee meets again May 15. is being urged. Membership dues were set at station's highest one time 15-minute rate. Some committeemen proposed (a) revision of option time agreements, and (b) elimination of day-night rate differentials. Some stations already have single- rate schedules for entire day, notably New York's WNEW, Washington's WWDC. Network cuts "should not be regarded [as] indication of the overall value of radio and particularly of the market-by-market value of radio," said Morency letter, which recommends affiliates raise local rates if warranted. That network leadership is on wane, was conviction of some committeemen who said they foresaw considerable change in scope of network operations as well as their position in industry during next few years. Nor were they likely to be molli- fied by latest PIB network billings figures (see p. 5) showing CBS January-March $2,000,000 ahead of same period last year, even MBS slightly ahead, others down. CBS rate cut goes into effect July 1, as announced. NBC is expected to follow suit after meeting with Stations Planning and Advisory Committee. ABC will wait for NBC card, and MBS will make known its cuts after all the others. There's talk of cuts only in TV markets, instead of following CBS across- the-board method. But all face fact total cuts must be equal to, or under, CBS's. 5 - Network TV-Radio Billings March 1951 and Janiiary-March 1951 ANOTHER big leap in network TV time billings is re- J \ vealed in Publishers Information Bureau report for March. Gross billings for March (not including non- reporting DuMont) wei’e $9,085,403 vs. $7,804,550 in Febru- ary (Vol. 7:13) and $8,082,876 in January (Vol. 7:10). The March billings were nioi'e than fourfold those of March 1950, and Jan.-March cumulative was $25,007,059 vs. only $5,799,995 for same 1950 quarter. Network radio went up also in March, totaling $16,440,- 387 vs. $14,957,460 in February and $16,629,928 in Jan- uary. But it was slightly down from March 1950, and radio’s Jan.-March cumulative of $48,132,847 compared with $49,308,757 for same 1950 months. Noteworthy was fact that CBS continued to show increases as well as main- tain big lead, with $6,815,406 March radio billings vs. $6,108,386 in March 1950 and $19,788,562 Jan.-March cumulative vs. $17,850,089 for same 1950 quarter. MBS also showed slight increase, but ABC and NBC were lower. It would appear to be only short time, what with up- grading rates for TV and downgrading rates for AM, that TV network billings will overtake AM networks — albeit only 48 TV areas are interconnected as yet, whereas just about every corner of the countx’y is reached by network radio. The PIB figui'es: NETWORK TELEVISION March 1951 March 1950 Jan. -Mar. 1951 Jan. -Mar. 1950 NBC CBS ABC .. _ $ 4,594,203 2,993,902 . 1,497,298 $ 1,175,186 657,501 344,097 $12,730,785 8,195,406 4,080,868 $ 3,195,582 1,823,456 780,957 Total $ 9,085,403 $ 2,176,784 $25,007,059 $ 5,799,995 NETWORK RADIO CBS - NBC - ABC MBS - . $ 6,815,406 .. . 5,085,636 2,891,339 _ .... 1,648,006 $ 6,108,386 5,847,374 3,476,383 1,410,683 $19,788,562 15,033,209 8,693,478 4,617,598 $17,850,089 16,785,941 10,181,753 4,490,974 Total $16,440,387 $16,842,826 $48,132,847 $49,308,757 Station Accounts: ’‘This season you can scarcely turn a dial (radio or TV) without bumping into a beer sponsor, large or small,” reports April 23 SpoJisor Maguzme in survey of “Beer on the Air” which your commercial dept, should study. It recounts how in 1941 only 4.3% of beer advertising went into radio, by 1949 TV-radio combined took 22.4%, exceeded only by outdoor media’s 23%c. Forty beer sponsors, their agencies and the TV-radio pi-ograms they place are conveniently tabulated . . . Adjacencies on Ballantine-sponsored Yankee home games and Chesterfield- sponsored Giant home games on WPIX include Play Ball with Hal Tunis 30-min. before Yankee & Giant games for Winston Stores (TVs, appliances). Dizzy Dean Show 10- min. before Yankees game for Philip Morris, A Day with the Giants l5-min. before Giants games for Krueger, vari- ous spots for Kreml, Palmolive, Read’s Ice Cream, Bufferin, Gruen, Kaiser-Frazer, Thom McAn, Barney’s Clothes . . . Falstaff Brewing Co., St. Louis, to sponsor The Great Merlini, United Ai-tists mystery film series in St. Louis, Omaha, Memphis, New Orleans, San Antonio, thru Dancer- Fitzgerald-Sample, N. Y.; Red Top Brewing Co., Cincin- nati, already signed for Cincinnati, Dayton, Columbus, In- dianapolis . . . Add baseball sponsorships: Cincinnati Reds, piped for Burger Beer from WCPO-TV to WSAZ-TV, Huntington, W. Va., as well as WHIO-TV, Dayton . . . Travel questions feature new-type quiz program on KTTV, I.os Angeles, titled TJoneynioon Express, Fii. 8-8:30, with ;iirline tickets as prizes; co-sponsors are Western Airlines, Lyon Van & Storage, Seven-Up, Tanner Motors, thru Dean Simmons Adv. . . . Harris, Upham & Co., New York stock- brokers, using 1-min. films on KRLD-TV, Dallas, as starter of wider campaign . . . Westinghouse Appliance Div. offer- ing local dealers new series of 1-min. and 20-sec. film dem- onstrations of refrigerators, ranges, ovens, vacuum clean- ers, fans, etc. . . . Among other advertisers reported using or preparing to use TV: Modern Food Process Co. (Thrive pet food), thru Lavenson Bureau of Adv., Philadelphia; Finkel Outdoor Products Inc. (beach & garden umbrellas, lawn furniture), thru Atlantic Adv., N. Y.; Wool Bureau Inc. (wool apparel), thru Grey Adv., N. Y.; Cowles Maga- zines Inc., thru McCann-Erickson, N. Y. (KTSL) ; Illinois Meat Co. (Broadcast Brand meats), thru Arthur Meyer- hoff & Co., Chicago (WCBS-TV) ; Richardson & Robbins (food products), thru Charles W. Hoyt Co., N. Y. (WCBS- TV); Seawol Corp. (Zig-Zag sewing machine), thz-u Vic Knight Inc., Los Angeles; Industrial Tape Corp., thru Kenyon & Eckhardt, N. Y. (WCAU-TV) ; Nedick’s Inc., thru Weiss & Geller, N. Y. (WTOP-TV); Quality Im- porters (Welch’s wine), thru A1 Paul Lefton Co., N. Y. (WCBS-TV); Ultra Chemical Works (Ultra Gloss floor wax), thru S. R. Leon Co., N. Y. (WCBS-TV); Newsweek Magazine, thru Lennen & Mitchell, N. Y. (WABD); Fred W. Amend Co. (Chuckles candies), thi'u Henri, Hurst & McDonald, Chicago (WOR-TV) ; George Schneider & Co. (carbonated beverages), thi’u Doyle Dane Bernback, N. Y. (WOR-TV); Dearborn Supply Co. (Chlor-O-Creme face cream), thi'u Gordon Best Co., Chicago; Dorchester Prod- ucts Co., Washington (Clorodets chewing gum), thru Jo- seph Katz Co., Baltimore. Personal Holes: Thomas F. O’Neil, v.p. and director of Yankee-Don Lee networks, v.p. of General Tire, elected chairman of board of MBS April 30, succeeding Theodore C. Streibert, WOR; E. M. Antrim, business mgr., Chicago Tribune (WGN & WGN-TV) succeeds O’Neil as vice chairman, and all other directors were reelected ... Vic- tor A. Sholis, dir-ector of WHAS & WHAS-TV, Louisville, awarded 1951 medal of Ameidcan Cancer Society as lay- man contributing most to cancer control program in America . . . Kenneth W. Church leaves managership of WIBC, Indianapolis, July 1 to become sales mgr. of WKRC & WKRC-TV, Cincinnati . . . Hoyt Andres appointed asst. mgr. of WKY & WKY-TV, Oklahoma City; Eugene B. Dodson named administrative asst., Ray Scales suc- ceeding him as public relations mgr. . . . Ben Gedalecia resigns as ABC research mgr. to join Dept, of State in- formation service . . . Joseph L. Tinney, v.p. of WCAU & WCAU-TV, Philadelphia, promoted to Captain, USNR . . . A. E. Joscelyn, CBS Hollywood operations director, re- elected president of So. Calif. Broadcasters Assn. . . . W. D. Fisher, ex-Young & Rubicam, joins Gardner Adv., St. Louis, as TV-radio director . . . Wm. A. Chalmers, ex- Kenyon & Eckhardt, appointed TV-radio v.p.. Grey Adv. Amendment to TV Allocation Report To CLARIFY meaning of paragraph II-B-1 of its allo- cation proposal (page 8 of Television Digest’s March 24 printed full text of TV Allocation Report), FCC this week amended it with Public Notice 51-410. New para- graph reads as follows, added language in italics: “1. A channel assigned to a community in the Com- mission’s Table of Television Assignments shall be avail- able, without the necessity of rule making proceedings, to any other community which is located within 15 miles of the assigned community and which has no assignment of its own provided the minimum separations set fortli in paragraphs “E” and “G” herein are maintained.” TV-RADIO ESCAPE PRICE ROLLBACKS: Price controls don't hurt the TV~radio industry . Instead of rollbacks, it looks like ceiling prices will be high enough to permit upward price changes as and when needed. At least, that's early interpretation of industry and govt, executives following issuance this week of Office of Price Stabilization's manufacturers' price regulation (CPR-22), effective May 1. And with this week's revision of Section 45 of retail price regulation (CPR-7), which now permits manufacturers of branded merchandise to set wholesale as well as retail prices, the TV-radio industry is in position to calculate its ceiling prices to distributors, retailers, public (Vol. 7:9,14). Inasmuch as today's TV prices are lower than they were during base period stipulated, plus permitted increases in factory labor and materials costs, nobody sees much difficulty in foreseeable future. Factory accountants are working on details of what the regulation means to their companies ; nobody, so far, seems to have found any hidden "gimmicks," as one put it. Parts manufacturers aren't quite so sanguine. Their best thinking is that no rollbacks v;ill be required immediately, but that "cushion" between present parts prices and ceiling prices is pretty close — doesn't give them much leeway if costs get out of hand. There's also still unresolved question in OPS whether manufacturers' regula- tion covers all electronic components makers. Best guess is that final decision, due in week, will keep parts makers whose products are primarily for TV-radio under manufacturers' regulation. TRADE WINDS BLOWING NOBODY ANY GOOD: More factory "vacations" and layoffs, further decline in TV production, mounting factory inventories, and a still-listless retail market — that about tells story of this week's TV trade. To say that industry folk are plenty worried — at manufacturer, wholesaler and retailer levels alike — would be putting it quite mildly. Short of seasonally- unlikely loosening of customer pursestrings, the outlook remained gloomy. One big effort was extended this week: RTMA president Glen McDaniel and general manager James Secrest waited on Federal Reserve Board staff to ask, once again, that Regulation W be at least ameliorated by way of (a) a 90-day moratorium on the 25% down payment requirement, so that TV stocks can be moved; (b) ruling that trade-ins may be applied against down payment; or (c) that up to 50% of trade-in value be so applied. Reduced installment buying is believed by many to be basic cause of current market lull. Time sales have declined much more sharply than cash selling since Regulation W was tightened last October. Bankruptcies and financial straits among dealers were cited as reasons for relief. The industry spokesmen were assured matter would be brought to attention of full board next week. There v/ere plenty of signs of distress, as sales and giveaways failed to move goods fast enough. Only promise of better things ahead was Dept, of Commerce April Survey of Current Business stating that high-inventory situation in consumer durables generally should be short-lived because (a) NPA steel order (Vol. 7:15-16) will cut future output, and (b) inventories of raw materials and components among manufacturers are getting low. "They're telling us!" might well be reaction to report's conclusion that TV-radio has felt blow harder than other lines. And "Oh yeah" to statement that in- ventories of consumer goods aren't "unduly" high in relation to sales, and that wholesale inventories "do not appear excessive in terms of sales volume." Nor is there much comfort in Federal Reserve Board's latest Survey of Con- 6 7 sumer Finance (Vol. 7:16), v/hich purports to shov; "little or no decline" in number of consumers considering 1951 purchases of TV, refrigerators, furniture, etc. "TV Cut Price Jamboree" was being advertised in New York, customer invited to name own price. New York Times April 26 reported out-of-town stores unloading many off-brand and a few top brand TVs in city at lower than distributor prices, being so hard-pressed to meet bank commitments. ^ ^ ^ Philco furlough of 5000 employes this week continues through next week, as planned (Vol. 7:15) — but RCA Victor's complete shutdown of all TV and some radio production, ordered last Monday (April 23) at 6 plants, was wholly unexpected. At first, it looked like full week layoff of 5857 employes, but NPA came to rescue Thursday with favorable action on adjustment of steel limitation. About 90% of workers at Camden and Indianapolis were called back to jobs immediately, and next day (April 27) plants in Bloomington & Monticello, Ind. and Pulaski, Va. were back at work. The 175 laid off at Canonsburg, Pa. radio plant are due to return May 1 when month's allotment of steel is available. RCA officials state emphatically that steel order M-47 (Vol. 7:10-11,14) alone was cause of shutdown — there was no motive of deliberately "vacationing" from TV-radio production due to becalmed market. Previous layoffs (Vol. 7:13-15) had discounted that "seasonal" condition, and company claims to be better off than most with respect to inventory. Employment situation in industry at large, however, continues bad, has the unions no less than employers worried. IBEW local chief in Chicago estimates that area's layoffs in TV and components plants at 15,000 or more. Another Chicago report had Zenith laying off 5000 this week, giving inventory-taking as reason. Nearly all TV-radio plants shut down in July, of course, for summer vaca- tions, usually first 2 weeks — and no exception is likely this year. Big question is whether, even if inventories persist, factories will offer usual new models in June-July, further aggravating market. Chances are most will, so far as we can learn, particularly since so much hullabaloo over uhf tuners has already been raised (Vol. 7:14-15) and everybody seems to anticipate lifting of freeze and opening up of new markets much earlier than seems likely (see p. 1). .Jt. 'I* «T* 'T TV production dropped to 122,489 (3116 private label) in v/eek ending April 20 — lov/est since 1950 post-Xmas week's 105,968 and lower than any other save last year's summer vacation weeks. Factory inventories rose to 455,950 from 386,307 week before and 324,859 first week of second quarter (ending April 6). TV output for quarter's 5 reported weeks: 140,964 first week, 155 , 576 second, 122,849 third. Radios fared better, thanks largely to seasonal auto and portable output. Third week's total was 549,767 vs. 561,652 second week, 332,463 first (Vol. 7:16). Radios for week ending April 20 were: 158,504 home, 147,587 auto, 43,676 portable. Factory inventory of radios was 175,014. FEAST AND FAMINE IN TUBE INDUSTRY: Despite shortages . despite trade slump, the production of receiving tubes is humming along at remarkable rate, with demand high. But picture tube industry is in doldrums. In this field probably more than any other — because it's purely TV — current trade slump is reflected and future TV production trends forecast. And picture tube business is bad — with no signs of pickup in near future. Larger CR tube makers report business down — from "a little" to "way off." But some middle-sized ones are operating at about 50% of capacity, and smaller manu- facturers are creeping along with production as low as 15% of normal. Bottom may not have been hit yet; at least nobody's reporting any increase in orders. These are strav;s in the wind in the depressed CR tube situation: Corning Glass Works is discontinuing picture tube bulb production at its new Albion, Mich, plant, and is convurting to manufacture of sealed beam headlights, electronic tube and incandescent lamp bulbs. TV bulb production will be limited to Corning, N.Y. 8 - factory. Two CR tube manufacturers, Sarkes Tarzian and National Video, are reported planning to enter receiving tube business. On price front, it’s possible the wave of CR tube slashes (Vol. 7:14-15) has subsided, at least temporarily. Common complaint is that recent reductions have come almost entirely out of tube makers* pockets; there hasn't been proportionate reduction in production costs. ^ ^ Things are different in receiving tube industry, possibly due in part to fact there are only 9 important producers in this field (with Westinghouse soon stepping in) as against 57 CR producers (see pp. 64-65, TV Factbook No. 12). Although shortages are bothersome, receiving tube manufacturers unanimously predict present high production rate will continue for at least 30 days. When it does fall off, scarcity of nickel — not customers — will be to blame, they say. Receiving tube sales hit all-time high in March despite depressed TV market, RTMA figures reveal — 44,415, 146 vs. 33,663,494 in March 1950 and previous record of 40,105,611 last October. In first quarter, 118,277,245 tubes were sold; 22% or 25,477,655 were for replacement, about 80,000,000 for new TV-radios, 4,000,000 for export and a mere 676,310 for govt, agencies, including military. There have been some cutbacks from March's record production — but many tube plants are still operating with extra shifts or on 6-day week. Military orders, while coming in steadily, still represent less than 10% of tube makers' business, industry-wide, according to manufacturers' own estimates. Principal reason for continued high demand — as most tube makers see it — is that set makers, who for past year have been operating with practically no tube inventory at all, are building up "normal" advance supplies. And radio production is still high. Distributors' buying wave, however, has slackened — most replace- ment shelves are fully stocked. Material shortages trouble tube makers day-to-day and hour-to-hour. They've felt nickel pinch (Vol. 7:15-16) last 30 days, but full fury hasn't hit yet. And coming tungsten crisis is just dark cloud on the horizon. Conservation and substitution will eventually result in use of about one- third less nickel in civilian tubes, most manufacturers say. But these measures won't do in military tubes — won't fit strict specifications. For example, the military requires pure nickel leads, whereas nickel-plated steel leads are adequate for civilian tubes. So tube makers are faced with new headache. They're going to have to make 2 production runs for each type tube — one to meet military specifications, another for civilian tubes, using minimum of strategic materials. Topics & Trends of TV Trade: Philco reports “pro- gram of cooperative research” with Massachusetts Insti- tute of Technology, alma mater of its engineering research v.p. David Smith and other top staffmen, whereby they will exchange data on military and commercial electi’onics, TV-radio, refrigeration, home appliances, etc. Special con- ferences and seminars and factory visits are planned. And this week, too. Majestic Radio announced the establish- ment of Majestic Research Fund Inc., endowed for $500,000, under which grants up to 48 scholarships per year for 6 years, each worth about $2000, will be made to persons over 35 years of age seeking another chance for education; scholarships will be known as “Second Chance,” and ad- visory board comprises Dean H. L. Masson, Engineering Graduate School, New York U; Dean Erich Hausman, Brooklyn Polytechnic Institute; Prof. R. T. Livingstone, executive officer. Dept, of Industrial Engineering, Columbia U; Prof. David Bendel Herz, Columbia U; G. A. Bishop, director of research. Textile Workers of America. Arguments against Regulation W have been mar- shalled in 8-page press release by Philip Lesly Co., 100 W. Monroe St., Chicago, public relations counsel for American Finance Conference, 176 W. Adams St., Chicago. Latter is campaigning for elimination or modification of credit con- trols. Lesly Co., which also handles publicity for Meek, is preparing leaflet on subject, will make copies available to all interested. Some 3,300,000 wired homes exist within 60-mi. radius of existing or projected TV stations in Latin America, so that within next 5 years there’s potential market for about 1,300,000 TVs. So Philco International Corp. v.p. Rad- cliffe L. Romeyn told meeting this week of Export Adver- tising Assn., New York. Within range of the 6 stations now operating in Latin America (2 in Cuba, 2 in Mexico City, one in Rio de Janeiro, one in Sao Paulo) Mr. Romeyn estimated 1,500,000 wired homes, only about 25,000 sets- in-use, perhaps another 15,000 in trade pipelines. Of sets- in-use, about 14,000 arc in Havana, 3500 in Mexico City, 3600 in Sao Paulo, 3000 in Rio. Esquire Radio Corp., 26 Court St., Brooklyn, is new manufacturing firm announced by A. Robert Lieberman, ex-.Icwel Radio, with B. Stohl in charge of purchasing. He slates eomi)any plans (o itroduoe TVs, radios and other electronic equipment. - 9 Zenith’s new uhf strip is much superior to old one, according to Rudy Frank, promotion manager of WELI, New Haven, whose management is extremely enthusiastic about uhf (Vol. 7:15). Frank, whose Bridgeport, home is virtual testing ground for various manufacturers’ uhf sets, writes: “This new device is so vast an improvement over the early strip which we tested that I feel that an injustice has been made if I didn’t correct the impression created by my appraisal [in Vol. 7:15]. Contrary to published com- ments that the job of installation of the strip required hours of work by a serviceman, I was able to install the strip myself in a matter of 5 minutes, and you might re- call that I am not an engineer or a serviceman. The impor- tant thing though is the quality of the picture. I can say that Zenith produced the clearest, cleanest pictux’e of any of the converters and receivers we have tested to date.” Trade Miscellany: DuMont announces availability of electrostatically-focused 17 & 20-in. picture tubes (17FP4 & 20GP4) which eliminate need for copper or cobalt-con- taining focus magnets (Vol. 7:1, 3, 5, 9) ... GE 12-in. tube promotion launched this week aims at what it regards as “tremendous replacement market” . . . Richmond Television Corp., Los Angeles, subject of adjudication order in bank- ruptcy proceedings in Federal district court (Vol. 7:7), has offered to pay creditors in full with 12-installraent notes . . . Pathe cut price of 12-in. table from $249.50 to $149.50, 17-in. consolette from $299.50 to $169.50; Pathe sets are made by Air King . . . Sparton returning to refrigerator field, will produce 9 & 10-ft. models starting next month. Skiatron Electronics & Television Corp., 30 E. 10th St., New York (new corporate name, new address), reports election of Telford Taylor and Rear Admiral Timothy J. O’Brien, USN retired, to board. Taylor is former general counsel of FCC, as USA brig. gen. pi’osecuted Nuremberg war crimes trials, is now partner in New York law firm of Paul, Weiss, Rifkind, Wharton & Garrison, which repre- sents Emerson (in color case) and educators (in TV chan- nel allocations issue). Admiral O’Brien is v.p. of Yearbook Publication Inc. Skiatron is promoting “Subscriber-Vision,” rival to Zenith’s Phonevision, and claims patents on a TV theatre projector that dispenses with CR tube. Dividends: Magnavox, 37% payable June 15 to holders of record May 25 and 25ont are also conducting field tests, while all other NTSC mem- bers are being urged to build color sets to test available signals. Hazeltine con- tinues its color classes, is starting fourth 2-week course of 20 engineers each. CBS plans Denver closed-circuit public showings of its system. It's Sen. Johnson's home state, and affiliate KLZ is cooperating in May 14-18 demonstrations. RCA picked next-biggest non-TV city, Portland, Ore., gave it first taste of TV this I week with black-and-white demonstrations in cooperation with U of Portland. I KINE REGORDINGS BIG FACTOR IN TV: Much of the future of TV programming depends on [ kinescope recordings — otherwise called kines, TV-recordings , tele-transcriptions. ! Despite early thinking that they would lose their importance as networks expanded and more films were produced for TV (to say nothing of release of feature films from big producers' vaults; see Vol. 7:13,16), it's increasingly apparent that of f-the-camera films of TV shows will gain added importance with time. Consensus of experts at May 1 session of Society of Motion Picture & TV En- gineers in New York this week seemed to be that, despite their present deficiencies, kines will be answer to (1) high cost of intercity coaxial and/or microwave hookups; (2) programming of independent cr non-interconnected TV stations; (3) delayed pro- !• gramming , where station time cannot be immediately cleared; (4) such complications 1 as daylight saving time, time zones, etc. ; (5) auditions and records. Thus kines will serve same purpose — possibly on bigger scale — as radio transcriptions , now an enormous factor in broadcasting and capable of quality every I. whit as good as live shows. Even today, it was noted, top TV shows are being kine-recorded , shipped to ! our troops overseas for showings in their cinema setups. Among the more noteworthy I developments reported at SMPTE meetings were these: (1) Some 3,000,000 ft. of 16mm film per week are already being processed by - 8 - TV networks, based on 120 hours of original negative. That's equivalent of 60 two- hour films per week. This year, networks v/ill make 40,000 prints, each to be shown at least twice. This information came from CBS's Howard Chinn. NBC's Frank Lapore. (2) Kine-recordings for military training films v/ere described by Navy's Lt. Comr. J. S. Baffin, who said, "Pictorial quality, while not up to motion picture standards, is acceptable for most types of subject matter. . .Pictures look better than a purely mathematical analysis of resolution would indicate." (3) How kine recordings might be used to make Hollywood movies, with conse- quent savings in production costs, was described by G. R. Stevens, of Television Film Productions Ltd. , London. He told of British experiments whereby TV camera chain, instead of film camera, is used to "shoot" a scene, with best shots recorded on film off face of monitor tube. This permits director to edit scenes before they are recorded on film, thus eliminating repeated film shots, lengthy editing proc- esses. Idea presupposes that kine recordings will be of same quality as today's motion picture films. Similar experiments are being conducted in Hollywood. Personal Notes: Jack P. Blume, FCC examiner, re- signed IMay 1 to join law firm headed by former FCC chairman James Lawrence Fly, heading newly-opened Washington offices at 1028 Connecticut Ave. (headquarters are New York). Firm will henceforth be known as Fly, Shuebmk & Blume. Blume was examiner in San Fran- cisco and Detroit TV hearings (no decision rendered due to freeze) and in Paramount-DuMont case . . . Rodney Chipp, DuMont Network engineering director, leaves May 18 on business-vacation flying ti'ip to Europe, accom- panied by Mrs. Chipp, who is also an engineer; she’s v.p. and chief engineer of Newark Controls . . . Theodore C. Streibert, president of WOR & WOR-TV, left May 1 for Tel Aviv, Israel, on inaugural flight of new El A1 Israel Airlines, returning May 22; he was subject of sketch April 30 in “Business & Finance Leaders” column in New York Herald Tribune . . . Robert N. Wold, ex-Knox Reeves Adv., named promotion mgr., WTCN & WTCN-TV, Minneapolis . . . James Kilian promoted to asst, program mgr., WAAM, Baltimore . . . Jack Barlass, ex-Meredith Publishing Co., named executive v.p., Princeton Film Center . . . Paul Monroe named executive director of TV-radio production, Theodore Gannon director of program development, Wrn. H. Weintraub & Co. . . . Irvin B. Levin new head of TV- radio dept., Degner & Associates, L. A. . . . Tom Wright, ex-BBDO, joins Dundes & Frank Inc. as TV-radio direc- tor .. . Robert Gillham, TV-commercial film v.p., J. Walter Thompson Co., has resigned to join Cunningham & Walsh . . . Florence Smith, ex-H. B. Humphrey Agency, ap- pointed TV-radio timebuyer for Hewitt, Ogilvy, Benson & Mather, N. Y. . . . Howard Chernoff, ex-West Virginia Net- work, named mgr. of KFMB & KFMB-TV, acquired by purchase by John Kennedy interests (Vol. 7:17) . . . Ed- ward L. Sellers, director of FM dept, of NARTB, resigns May 1 to join Carl Byoir & Associates, public relations counsel (for RCA, among others) . . . Leroy Bremmer, WABD engineer, has applied for 250-watt AM station on 1490 kc in Atlantic City . . . Wm. Doty Edouarde, ex- KFWB, appointed NBC spot sales rep for So. California, succeeding Robert E. Howard, resigned. Station Accounts: Union Pacific Railroad buys Singing Rails on KTSL, Sun. 7-7:30, and Pobjzoidcs, political colmnnist, on KTTV, Wed. 8-8': 15, thru Caples Co. . . . Banks were first to buy Ma/rch of Time Through the Years in 28 cities (Vol. 7:7,11), but Ohio Standard Oil Co. has taken it on stations in Cincinnati, Columbus, Dayton, To- ledo . . . McLevy Dance Studios and Slenderizing Salons sponsoring Video Venus, new beauty-talent search show starting May 11 on WJZ-TV, Fri. 10:30-11, thru Associated Adv. Service . . . Elgin .American Division, Illinois Watch Case Co., buys heavy schedules of pre-Mother’s Day (May 13) TV spots, thru Russel M. Seeds, Chicago . . . Cribben & Sexton Co. (Universal gas ranges) sponsoring Sally Smart’s Blue Flame Gas Kitchen on WOR-TV, Wed. 11:30- noon, kinescopes to be syndicated by Paramount Tele- vision Productions . . . Among other advertisers reported using or preparing to use TV: Pan American-Grace Air- ways Inc., thru J. Walter Thompson, N. Y. (WABD); Personal Products Corp. (Co-ets facial tissue), thru Young & Rubicam, N. Y. (WABD); Vitrex Co. (reducing plan), thru Courtland D. Ferguson Inc., N. Y. (WABD); Olson Co. Inc. (roofing materials), thru E. T. Howard Co., N. Y. (WABD); Nestle Co. Inc. (Nes-Tea), thru Needham & Grohmann, N. Y. (WABD); Bardahl Oil Co. (lubricants), thru Harold Kirsch Co., St. Louis (WDTV) ; C. H. Mussel- man Co. (apple products), thru Clements Co., Philadelphia (WBAL-TV). Network Accounts: Brown shoe Co. (Buster Brown Shoes) moving Smilin’ Ed McConnell Show from NBC-TV alt. Sat. 6:30-7 to CBS-TV every Sat. ll:30-noon, starting Aug. 11, thru Leo Burnett Co., Chicago . . . Nash-Kelvina- tor, starting June 9, takes over full sponsorship of Paul Whiteman TV Teen Club on ABC-TV, Sat. 8-9, thru Geyer, Newell & Ganger; American Dairy Assn, dropping 8-8:30 segment. Nash-Kelvinator reported dropping Star of the Family (Morton Downey) on CBS-TV Fri. 10-10:30 . . . Gillette sponsoring kine of Kentucky Derby on CBS-TV from WHIO-TV, Dayton, evening of May 5, 9:45-10 p.m. ; Gillette will also sponsor Pi-eakness from Baltimore on CBS-TV May 19, 5-5:30, thru Maxon Inc. . . . Pabst slated to sponsor Ezzard Charles-Joey Maxim championship fight from Chicago May 30 on CBS-TV, 10 p.m., thi*u Warwick & Legler . . . Anchor-Hocking Glass Corp. dropping Mon. & Wed. but continuing Tue.-Thu.-Fri. sponsorship of Broadway Open House on NBC-TV, 11-midnight, with Jack E. I.,eonard replacing Jerry Lester, thru Wm. H. Weintraub & Co. . . . Procter & Gamble replacing Fire- side Theatre with Cameo Theatre on NBC-TV from July 3, Tue. 9-9:30, thru Compton Adv. . . . Lucky Strike re- placing Your Hit Parade on NBC-TV with unnamed pro- gx'am stai'ting July 14, Sat. 10:30-11, thru BBDO . . . Philip Morris reported to have signed for I Love Lucy, new comedy series on CBS-TV to start in fall with Lucille Ball and Desi Arnez, thru Blow Co. . . . Next Jack Benny Show on CBS-TV will be May 20, sponsored by Lucky Strike, Sun. 7 :30-8, in lieu of This Is Show Business. Dm Fink, editor of Electronics Magazine, will be U. S. spokesman at TV sessions of CCIR conference June 5-July 6 in Geneva, Switzerland. Conference is expected to vote regional TV standards on world-wide basis so they can be recommended at 1952 world telecommunications sessions in Buenos Aires. Financial & Trade Notes: DuMont earned net income of $6,900,788 ($2.87 per common share) after provision of $6,300,000 for taxes on gross income of $76,362,565, ac- cording to 1950 annual report released this week. This compares with $3,269,880 net ($1.49) after $2,250,000 taxes on $45,267,089 gross in 1949 and $2,701,767 net ($1.29) on $26,934,239 gross in 1948. Report does not break down factory and network operations, but does reveal 78% in- crease in TV receiver output, 250% increase in units with higher margin of profit on CR tube production, increase of distributors to 34 covering 52 TV markets. Total current assets at end of 1950 were $31,087,710 vs. $15,481,032 at end of 1949, liabilities $14,134,480 vs. $7,260,662. Working capital was $16,953,230 vs. $8,220,370. (For network esti- mate, see Telecasting Notes.) Best first quarter in its 31 years was reported by RCA, with sales of $185,590,755, net profit of $11,901,542 (75<) on 13,881,016 common shares) after taxes of $15,842,000 for 3 months ending March 31. This compares with $127,- 369,550 sales, $11,236,231 (754) net profit, $7,709,000 taxes in first quarter 1950 (Vol. 6:18). Company’s business volume is 4(4 times what it was 10 years ago, chairman Sarnoff told stockholders at annual meeting in NBC’s TV studio 8H May 1, with TV biggest factor in new sales record. He also said military orders recently “reached a volume that required conversion of some of our commer- cial production facilities to manufacture of equipment to national defense.” Stockholders overwhelmingly approved : hotly-contested proposal to grant purchase options on 100,000 shares of stock to Gen. Sarnoff and 50,000 to presi- dent Frank M. Folsom. Philco annual meeting of stockholders will be held May 18 in Philadelphia, proxy statement disclosing these directors to be elected, their present stockholdings (in parentheses) and their 1950 compensation if active in management: Wm. Balderston, president (7188 shares), $75,000 salary and $118,750 bonus; James T. Buckley, chairman (21,966), $37,500 & $59,375; Harold W. Butler, v.p. (11,245), $30,000 & $52,250; James H. Carmine, execu- tive v.p. (31,225), $60,000 & $95,000; Wm. H. Chaffee, v.p. (901), $22,083 & $26,600; Charles S. Cheston, director (237); Joseph H. Gillies, v.p. (9437), $32,500 & $59,850; Larry E. Gubb, director (28,973), $30,000; Larry F. Hardy, v.p. (7809), $37,500 & $71,250; Russell L. Heberling, v.p. (24,087); Robert F. Herr, v.p. (27,578), $22,083 & $42,750; Thomas A. Kennelly, v.p. (25,474), $35,000 & $71,250; Wm. Fulton Kurtz, director (200); John M. Otter, v.p. (7312), $40,000 & $57,000; Courtnay Pitt, v.p. (1270), $25,625 & $35,625; David B. Smith, v.p. (3273), $35,000 & $19,000; Leslie J. Woods, v.p. (9905), $40,000 & $66,500. Dividends: International Resistance Co., 104 payable June 1 to holders of record May 15; CBS, 404 payable June 1 to holders May 18; Avco, 15-4 payable June 20 to holders of record June 1; Blaw-Knox, 25^ payable June 12 to holders May 14; Telecoin Corp., 54 payable May 15 to holders May 5; Television Electronics Fund, 154 payable May 29 to holders May 15. Motorola’s first quarter report, released May 4, shows record sales of $46,659,847, earnings before taxes $6,782,- 105, net income $2,572,718 ($2.93 per share). This com- j pares with $35,846,974 sales, $4,720,775 earnings before taxes, $2,825,966 ($3.21) net income for same 1950 period. ■ Wilcox-Gay Corp, (Majestic) reports net earnings of !{ $355,787 for first quarter on sales of $3,707,658. This com- j' pares with net loss of $227,223 on sales of $1,220,560 for j same 1950 period. (For 1950 report, see Vol. 7:13.) ij Collins Radio reports sales of $5,853,000, net profit of I $132,161, for 6 months to Jan. 31 vs. $5,551,000 sales and $145,243 profit for 6 months ended Jan. 31, 1950. TV is “superb” as means of public education, Kefauver Crime Investigating Committee said in its widely- publicized May 1 report summing up hearings on organ- ized gambling and racketeering. Senate Committee gave telecasters “major part of the credit” for impact of recent hearings on public, cred- ited telecasts with “salutary effect in awakening the pub- lic to the menace of organized racketeering that now con- fronts our national life.” But report points up new problems raised by tele- vising of legislative processes — including possible invasion of privacy — and urges “code of Congressional procedure . . . to insure the continuing dignity and maximum effec- tiveness of legislative proceedings which might be tele- vised as well as to preserve the constitutional rights of citizens.” With memory of Kefauver telecasts still in sharp focus, Gallup Poll released April 27 shows 70% of voters think it would be good idea to telecast sessions of Con- gress, 16% said poor idea, 5% fair, 9% no opinion. De- spite possibility of dull and long-winded speeches, 78% said they thought such telecasts would be interesting, 14% said no, 8% no opinion. Rep. Jacob K. Javits (R-N. Y.) May 2 inaugurated discharge petition in attempt to get House action on his H. Res. 62 — pigeonholed by Rules Committee — to provide for telecasting and broadcasting important House debates. National Union Radio Corp. sales volume was $5,021,- 822, profit after taxes $448,443 in first quarter 1951 which compares with $2,485,746 sales and $186,182 net earnings for same 1950 quarter. CR and radio tube sales ac- coiinted for favorable report, company reported to stock- holders May 1, but CR production at Hatboro (N. J.) plant has been curtailed due to decline in TV buying. “It is expected,” report states, “that towards the end of the second quarter there will be a favorable upturn, with de- mand for CR tubes continuing to increase into the early fall.” Meanwhile, construction will not be delayed on new 140,000-sq. ft. plant at Rhwan & Dugan Sts., Philadelphia, costing $5,000,000, to be devoted to miniature and sub- miniature tube production. National Union’s recent annual report for 1950 (Vol. 7:14), showing record sales and earnings (Vol. 7:14), was accompanied by proxy statement disclosing C. Russell Feld- man, chairman, as owner of 232,000 shares (entire issue) of preferred stock, no common, with director Harry E. Collins, senior partner in Collins, Norton & Co., invest- ments, owning 219,000 shares of common, Mrs. Collins 80,500, and president Kenneth C. Meinken 35,900 out of 1,375,766 shares outstanding. Mr. Meinken’s 1950 salary is given as $40,000, bonus $10,000. ^ ^ ^ ^ Standard Coil Products Co. reports consolidated net sales of $12,756,856 for quarter ended May 31, net profit of $1,123,539 after provision of $995,646 for estimated Federal income taxes. This is equal to 764 per share on 1,470,000 outstanding shares of common. Report includes figures for Kollsman Instrument Co., purchased Jan. 1, 1951, big govt, contractor for optical products. Stand- ard’s recent 1950 report (Vol. 7:12) showed net profits of $5,266,442 on sales of $35,632,396. Color performance of Eidophor theatre TV system (Vol. 7:7), specified in 20th Century-Fox’s agreement with Institute of Technical Research in Zurich, should be “not substantially less good than existing motion pictures in Technicolor.” According to 20th Century’s annual report, prototype of such color equipment is to be delivered in l8 months. Big movie firm has exclusive license on system. NEW LOW IN TV OUTPUT, RADIO HOLDS UP: TV production nose-dived fourth week in April (ending April 27), dropping to 85,516, of which 6720 were private label. Inventories at factory stayed high — 405,642 vs. 433,930 at end of preceding week (Vol. 7:17). Week's output was lowest since beginning of 1950, save for two July vacation weeks. Output drops began in mid-March, accelerated through April (Vol. 7:13-17) when first week showed 140,964, second week 133,576, third 122,489 — so that month's RTMA total is 480,545, lowest since last July's 330,377. They compare with 874,634 in March (5 weeks), 679,319 in February, 645,716 in January (revised RTMA figures). Further drops are expected. Radio output for fourth April week held up reasonably well, totaled 313,348 — as against 349,767, 361,652 & 332,463 preceding April weeks (Vol. 7:16-17). Month's total thus was 1,557,850 vs. 1,737,141 in March, 1,325,450 in February, 1,235,114 in January. Fourth April week's radio breakdown: home radios 138,241, auto 130,717, portable 44,390. PLANS AND PURPOSES OF THE SET MAKERS: RCA and GE committed themselves definitely this week to hold their TV price lines — RCA until Aug. 1, GE until Sept. 10. In addition, RCA assured distributors it will introduce no new models before Aug. 1. This seems to contravene downward trend indicated by current trade lull and Emerson's deep price slashes ordered as of May 1 (see Topics & Trends). Fact is that, despite discouraging apathy of today's retail market, despite huge inventories forcing what look like distress sales and intercity dumping, de- spite factory curtailments, a sort of quiet optimism appears to have settled over many manufacturers in contemplating future prospects. It will be surprising if Admiral, Motorola and Philco, who with RCA form industry's Big Four, will offer new models by usual time of Chicago Furniture Mart, Jione 18-28. Nor will many other name brand producers, so far as we can learn. If some do come out with nev/ models next few months, and do any appreciable promoting, the big fellows figure that such promotion will build store traffic on which present models can ride. New ”1952" gimmicks, whether furniture or gadgets, aren't likely to obsolete current lines, is general belief. Talk about uhf is seen adding to confusion, helping no one sell sets now or until such stations are actually on the air — still long time away. Color, even if Supreme Court should uphold FCC choice of CBS system, isn't regarded likely to do more than create still more confusion in buyers' minds — since colorcasting isn't going to be done on any big scale for long time and industry forces opposed to CBS system will renev/ pitch to FCC and public with better, compatible system. Impulse of the manufacturers now is to underproduce, particularly higher- priced sets. Laid off workers are protesting loudest now, their unions among the foremost urging more haste in lifting freeze and easing of Regulation W (Vol. 7:16). ^ ^ ^ RCA called its decision "a positive move to stabilize the dealers' invest- ment in [our] inventories in the face of the current slump... to bolster dealer con- fidence in the long-range stability of the TV market." Consumer v.p. Joe Elliott promised to continue advertising of current models at present lists, urged dealers to "go out and sell TV" and reiterated conviction that materials shortages will limit his company's TV production during second half of year. Mr. Elliott told Pacific Coast NEDA, later in week: "In regard to the pro- duction of TV sets, hard times are ahead... A stock of TV receivers today is money in the bank tomorrow. " He warned dealers who dump inventories that they will be "making a mistake they will seriously regret." Said he: "Employment is high, there is plenty of money in circulation, consumer demand is certain to pick up. .. opportunities are unlimited for the capable business man who can and will plan, sell and work." 10 - 11 GE's receiver sales chief Arthur A. Brandt stated price-holding policy was formally adopted because "price uncertainties in a few lines are creating a depress- ing effect on all segments of the industry. " Purpose is not only to stabilize the market but protect distributors and dealers, he stated, and he predicted: "Despite the fact that TV sets are in plentiful supply at this time, cur- tailed production will catch up with the industry later in the year when the full impact of material restrictions is felt by manufacturers." ^ ^ DuMont sales chief Walter Stickel told Buffalo group April 29 that defense limitation orders must inevitably cut TV production — forecast best rate of output rest of this year would not exceed 60% or 65% of 1950’s fourth quarter peak rate. By sheer coincidence, his line of reasoning seemed to follow closely that of Phil- co's Jack Otter and other Philco executives in recent trade talks: shortages are coming, current slump is no reason for panic and in many respects seasonal, talk of "saturated markets" comes only from "weak sisters" among field men and dealers, period of stress affords chance "to separate the men from the boys." Dr. DuMont says his plant is now producing "no more sets than we can sell." Admiral's Ross Siragusa sees pickup by end of third quarter. Motorola's Robert Galvin said production is now down about 35%, thought third quarter may re- vert to first quarter's pace. Olympic's Percy Schoenen wasn't quite that optimistic, thought third quarter v;ill continue low but fourth should be better even than fourth quarter 1950; he feels time will alleviate current condition, also is convinced that shortages impend and plans no new models in June or July. Tele-tone's Morton Schv/artz attributes current troubles to overexpansion of plants, thinks next big sales push should be second sets in homes. Another manufac- turer said he v/ould have color sets coming off lines in September if Supreme Court renders decision before June favoring CBS system. ❖ To dealers, NARDA v.p. H. B. Price Jr., head of Price's Inc., Norfolk, offered this advice at appliance dealer confab in Wilmington May 2: "Stop buying, i Don't buy until you need merchandise for sales — not anticipated sales." He urged lowered sights on volume, advised; , "It is reasonable to expect a shortage of certain models of popular brands, I but don't stock up planning another killing; take smaller volume and sleep nights." I: He even had good word for manufacturers; "Their only sin was aggressive selling." Trade Personals: Edward F. Harbison, recently chief of guided missiles plans, Air Materiel Command, Wright Field, Dayton, appointed mgr. of new Pacific Coast office for Philco’s Govt. & Industrial Division, located at 260 S. Bevci’ly Drive, Beverly Hills, Cal. . . . John Ward Dawson, ex-Stanford Research Institute, named chief engineer of Electronics Div., Sylvania . . . George O. Smith, well known as science-fiction writer, during last war writer of man- uals for National Defense Research Council, named by Emerson as mgr. of components engineering . . . Anthony Dillon, recently with Olsen & Co., Philadelphia DuBIont distributor, has )’ejoined Air King as field sales mgr. . . . B. G. Hickman, TV-radio service mgr., promoted to asst, sales mgr., Sparks-Withington. I Largest theatre-TV purchase yet was announced this week by United Paramount Theatres, which ordered 22 systems for installation by fall. RCA got 20 orders, and Paramount Pictures (which uses intermediate-film equip- ment) got 2. Theati’es into which installations are going- will be mainly in Midwest. This will bring to 27 number of UPT houses with large-screen installations; present ones being New York Paramount, Chicago State-Lain' and Tivoli, Detroit Michigan, Minneapolis Radio City. It will bring to more than 40 number of theatre-TV installations throughout country. Plant Expansions: Webster-Chicago considering new office-plant building sites in Chicago area, but won’t move right away; executive v.p. C. P. Cushway told stockholders meeting May 1 that company curr-ently has $2,000,000 in war contracts . . . Wilcox-Gay has leased 85,000 sq. ft. factory in Burbank, Cal., to produce TVs, radios, recording- products, etc. . . . Traeerlab Inc., Boston, nucleonic instru- ments, has leased 20,000 ft. of manufacturing- space for assembly of electronic equipment . . . Lmvyt Corp., Brook- lyn, plans new $3,800,000 plant in Nassau County, Long- Island, for military electronic production, covering- about 250,000 sq. ft., employing- 2000 . . . GE will triple Syra- cuse electronics laboratory. May 4 announcement stating new 2-story wing to .start this month will increase space from .33,000 to 101,000 sq. ft. National TV-radio set and station ads last year brought $22,760,000 in revenue to newspapers, 78.4 '/o in- crease over $12,756,000 in 1949, acoerding to ANPA re- port. This included: set advertising- $16,507,000, up 98.9% from $8,300,000 in 1949; station ads $6,097,000, up 39.4 C from $4,373,000; miscellaneous $156,000, up 88^1 from $83,000. TV-i adio set advertising show-ed bigg-est increase of any category on publishers’ list. Total national news- paper advertising- amounted to $499,019,000 in 1950, up 12.1% from $445,015,000 in 1949. - 12 Topics & Trends of TV Trade: Philadelphia may or may not be indicative of national trend, but its first quarter TV sales figures, as released by Electrical Assn., are quite eloquent. They show total of 79,907 sets sold first 3 months of this year for retail dollar volume of $27,992,- 605. This compares with 93,188 for $26,992,605 in same period last year, the dollar volume holding up because 1951 average price per unit was $350 vs. $279 in 1950. During all 1950, total TV sales in Philadelphia area were 364,233 units as against 220,366 in 1949 and 82,606 in 1948. Seventeen brands of receivers are covered in Phila- delphia repoi't, which showed 34,329 sold in January (up 43'^v from the 23,970 for same month last year); 25,151 in February (down 15% from 29,688); 20,427 in March (down 499^ from 39,530). Apparently, the recession in sales volume began in February. Chicago Electric Assn, reports TV sales there fell to 18,176 in March, only slightly moi'e than half preceding month. Washington’s downward trend is indicated by esti- mates that sales fell from 14,150 in January to 10,350 in February, 9500 in March, 8540 in April. ♦ * * * Machinery price order (CPR-30), issued by Office of Piice Stabilization May 3, is practically identical with manufacturers’ price order issued last week (Vol. 7:17), covers TV-radio transmitters, studio equipment, all elec- trcnic parts. OPS is expected, however, to divide con- trols on electronic parts to bring those primarily used in TV-radio under manufacturers’ regulation. RTMA production figures for first 1951 quarter, re- vised by its statisticians, indicate 645,716 TVs turned out by industry as whole in January, 679,319 in February, 874,634 in March — total of 2,199,669, as against the 2,196,- 016 we reported on basis of tallying first 13 weeks’ reports (Vol. 7:14). Radio total is given as 4,235,669, of which 2,603,532 were home radios, 1,329,875 auto, 302,190 port- able. The TV total compares with 1,605,200 for same 1950 quarter, radio with 3,343,600 for same 1950 quarter. Casualty of current trade slump was revealed this week with announcement that small private-label set and components maker S. M. A. Co., Chicago, had been sold to investment banker Samuel C. Rudolph, 640 Madison Ave., New York, who paid $173,000 for assets and inventoi-y. Chester Lytle continues as president. TV production, half company’s business, is down to 60% of first quarter, which ran at rate of 20,000 sets a year. Heavy inventories, lull in TV sales, lack of military orders were given as reasons for sale. RTMA annual meeting will be June 4-7 in Chicago’s Stevens Hotel, not dates previously reported erroneously; RTMA board May 8 will be host to new president, Glen McDaniel, at reception in Carlton Hotel, Washington. Other upcoming meetings include May 21-23 Parts Dis- tributor Show in Hotel Stevens, Chicago, to be addressed by Indiana Steel’s A. D. Plamondon Jr., RTMA chairman Robert C. Sprague, Sylvania’s Frank W’^. Mansfield. March excise tax collections on TV-radio sets, compo- nents, phonos reached new high of $23,390,352, more than double $11,349,880 collected in February (Vol. 7:13), con- siderably more than $19,439,774 in January (Vol. 7:10). Total excises collected from TV-radio industry for 9 months from July 1950 were $82,881,327, compared to previous 9 months’ $29,474,108. “Rediscovery” of the 14-in. tube is reflected in RTMA members’ picture tube sales for March. Although 91% of 608,396 total were 16-in. and up, 6% were 14-in., compared with 31'^% in February. At same time, 24-in. and 30-in. rose from 1483 to 2324. Total sold for $16,064,425, com- pared with February’s 634,080 at $17,555,375 (Vol. 7:14). Emerson cut prices $15 to $145 on full 22-modcl line as of May 1, distributors being rebated on all purchases of last 30 days and instructed to rebate dealers on same terms. Prices are lowest yet offered by Emerson, but schedule was to be effective “no longer than 60 days,” ac- cording to president Ben Abrams. New prices do not in- clude excise tax or warranty, lumped extra, which had been included in old prices. Hence, down payment under Regulation W should be within reach of average purchaser, said Mr. Abrams. Move was dictated by oversupply, he admitted, estimating industry inventory is about 2,000,000 sets and Emerson production is now down to 60% of first quarter. These are new Emerson prices, not including excise or warranty (old prices, including tax-warranty, are in parentheses): Table models — 14-in., Model 662, plastic walnut $149.95 ($179.95). 17-in., 676, mahogany, $199.95 ($299.95); blende, $209.95 ($309.95); 680, mahogany, better cabinet, $219.95 ($299.95); 696, mahogany, deluxe cabinet, $219.95 ($299.95). Consoles — 17-in., Model 686, mahogany, $249.95 ($349.95); blonde, $259.95 ($359.95); 681 & 6*87, mahog- any, doors, $279.95 ($379.95); blonde $299.95 ($399.95). 19-in., 688, mahogany, $269.95 ($439.95); 689, mahogany, half doors, $299.95 ($459.95); blonde, $319.95 ($479.95); 690, mahogany, full doors, $319.95 ($479.95); blonde, $349.95 ($509.95). 20-in., 692, mahogany, $359.95 ($459.95); 693, mahogany, half doors, $379.95 ($479.95); blonde, $399.95 ($499.95); 694, mahogany, full doors, $399.95 ($499.95); blonde, $429.95 ($529.95). Combinations — 16-in., 666, mahogany, AM-FM-phono, $399.95 ($499.95). ♦ * * Trade Miscellany: Federal Reserve Bank of New York reports dollar value of TV inventories held by dept, stores in Second Federal Reserve district as of March 31 was 446*;^ ahead of same date 1950 . . . Herald Tribune April suiwey of N. Y. dept, stores showed 5 went ahead of April year ago in TV-radio sales “as a result of heavy promo- tional effort,” showing gains up to 65%; but 6 stores showed declines ranging from 6% to 74% . . . Newspaper advertising of TVs in 49 cities totaled 10,766 standard- sized newspaper pages first quarter 1951, reports Adver- tising Checking Bureau, about 77% placed by local dealers; total was nearly same as same period 1950 . . . Latest RCA Antenaplex installation is in 261-suite “100 Memorial Drive” apartment house, Cambridge, Mass., owned by New England Mutual Life . . . Reeves Soundcraft Corp. has purchased Bergen Wire Rope Co., Lodi, N. J., maker of specialty wire . . . Sylvania has released new vest pocket TV Tube Selector, listing more than 100 picture tube types, indexed as to sizes, shapes, metal or glass, coating, etc. Price Miscellany: Kaye-Halbert lists 20-in. walnut table at $239.95, mahogany $259.95. blonde $279.95 . . . In- ternational Television Cerp. this week advertised 17-in. ma- hogany table at $199.95 . . . Pathe cut 20-in. console from $399.50 to $249.50, with doors from $449.50 to $269.50; these are in addition to 12 & 17-in. price cuts reported last week (Vol. 7:17). “Selective” mobile communications system for cabs, trucks, etc. was announced by GE this v/eek. It permits headquarters to talk to each car individually, all others excluded from conveisation. Avco has purchased all stock of Horn Mfg. Co., Ft. Dodge, la., manufacturer of hydraulic loader attachments for tractors, stalk shredders, wagon boxes; will operate it under Horn name as wholly owned subsidiary. British Marconi, beating U. S. competition, has sold 3 camera chains to UN for program originations from New York headquarters. READYING FOR CNP, LISTS & FORMS OUT: Govt, set machinery in motion this week for trial run of its production-regulating Controlled Materials Plan (Vol. 7:15). If you're a manufacturer, in next few days you'll probably receive NPA's official "Class B" product list together with CMP Regulations 1 & 3 and Application Form CMP-4B for third quarter allotment of steel, copper and aluminum. If you don't receive this material, it's important to get it as soon as possible from Commerce Dept, field office, local Chamber of Commerce, or by writing NPA. There'll be plenty of paper work, plenty of red tape, plenty of mistakes — both by you and by Govt. But production officials don't expect plan to run smoothly until first quarter 1952. And they pledge to rectify mistakes as rapidly as possible during this trial period. Class B list, issued May 5 by NPA, contains more than 4000 manufactured articles containing the 3 controlled materials -- steel, copper, aluminum. Class B products are common industrial components and other general purpose items. Allot- ments of the 3 metals for these products will be received directly from NPA. Complete Class A list won't be made public — but if your product is a mili- tary item and it's not on B list, you can assume it's an A item. Special purpose products built to order for military agencies are in Class A. Some electronic items — military type radar, for example — will be on list A, others more closely re- lated to civilian products are on B list. Class A producers will receive production authorizations and material allot- ments from their customers, and pass allotments down to their suppliers. Allotments of controlled materials for Class B items will be made by NPA industry divisions, after DPA makes general decisions on how nation's materials supply is to be divided. Allotment of steel to radio transmitter manufacturer, for example, will come from NPA Electronics Div. If your product is on Class B list, you must state your third quarter re- quirements for steel, copper and aluminum, along with proposed production schedules, on form CMP-4B and file form with NPA by May 31. It will go to industry division assigned to your product. When you receive, from your industry division, your third quarter CMP allocations, they will generally be accompanied by priorities to obtain other needed materials (nickel, cobalt, mica, etc.). You needn't file CMP-4B if your quarterly requirements don't exceed 5 tons of carbon steel, 1000 lb. of alloy steel, 500 lb. of copper and copper-base alloy, 500 lb. of aluminum — or if you manufacture consumer durables exclusively. * * * * Consumer durables won't be covered by CMP, during third quarter at least. But their repair parts and components will. If you're a durable goods manufacturer and you make some of your own repair and replacement parts, you should file a CMP-4B to get materials for these parts only. But no consumer durable maker is permitted to apply for allotment of metal to make the product itself. These electronic and related consumer goods won't come under CMP; All house- hold-type TVs, radios, phonos, record players, combinations, auto and portable radios, radio receiver chassis, phono needles and cutting styli. CMP allocations for repair parts for these items will be handled by Electronics Div. ^ ^ ^ These electronic products which come under CMP are assigned to Electronics Div. for allotment of controlled materials: Amplifiers & public address systems; recorders, recording wire & tape : TV, AM & FM broadcast transmitters & studio equip- ment; communications transmitters, receivers & transceivers; civilian radar; oscil- loscopes & oscillographs. Nearly all electronic components, including transmitting, receiving, indus- 13 - - 14 - trial and cathode ray tubes, as well as all TV-radio parts, will come under Elec- tronics Div. for CMP allocations. Electronic and related items covered by CM? but assigned to divisions other than Electronics Div. for materials allotments: Scientific & Technical Equipment Div. — Broadcast monitoring, transmitter test, other electronic test equipment; X-ray tubes, equipment & components. Electrical Equipment Div. — Specialty, pov/er & distribution transformers & parts (except those used in radio); motors k generators; industrial electrical control apparatus ; industrial capacitors ; non-communications rectifiers. Communications Equipment Div. — Microwave relay equipment, telephone k telegraph; intercommunication equipment. General Industrial Equipment Div. — High frequency induction k dielectric heating apparatus. Consumer Durable Goods Div. — Electric hearing aids. * * * Plans for allocation of m.aterials for all electronic items on B list have been worked out by Electronics Div. for approval of higher WPA and DPA echelons. This includes program for manufacture of TV-radio broadcast transmitters and related facilities. It's believed Govt, v/ill take liberal attitude toward granting materials to build new stations because of importance of communications to defense effort and relatively small amount of controlled materials involved (see p. 3). For more information on CMP, you'll have opportunity to attend NPA-conducted "school." The one-day sessions will be held in 20 principal U.S. industrial cities between May 15 k 25. Dates for specific cities haven't yet been announced. NAY-JUNE NICKEL ALLOTMENT FOR TUBES: Rec eiving tube makers will get less nickel than they asked — but a little more than they expected — during May and June. NPA will allocate 200,000 lb. in May, 180,000 in June, for use in all types of receiving tubes. Manufacturers had asked 250,000 lb. for May, 225,000 for June — their rock-bottom requirements. Nevertheless, May- June ration is high in view of April's allotment of 169,000 lb. (Vol. 7:16) and recent warnings by high NPA offi- cials that May's allocation would be considerably less than 200,000. An NPA official said the allotment, "while not large by industry's stand- ards, should be adequate, with maximum conservation efforts, for essential require- ments." He stated manufacturers have given assurances they'll turn out enough replacement tubes to prevent shortage in that field. Nickel allotment covers military, industrial, export as well as tubes for civilian TV-radios. And because of lead time in manufacture of tube elements, it will probably be fall before nickel authorized this month is incorporated in tubes rolling off production lines. By that time, much of tube makers' output is expected to be for armed forces. On another component front, NPA Electronics Div. has finally succeeded in arranging system to get copper for speaker manufacturers as substitute for cobalt. In past, TV-radio and speaker makers have been stymied in attempts to switch from cobalt-containing alnico speakers to copper-wound electromagnetic speakers. Under new program, speaker makers will be permitted to substitute some copper as cobalt allotment is reduced. But before NPA stamps "OK" on this type of arrangement, it will require evidence of copper conservation by set manufacturers for whom the speakers are made. Govt, may buy tungsten abroad to help relieve short- age, but even this additional supply wouldn’t be enough to meet all requirements. So NPA told meeting of trans- mitting and power tube manufacturers April 27. There’s little relief in sight, NPA said, and July and August tungsten allocations will be “considerably reduced.” Tube makers reported growing shortages of cobalt-containing products, but NPA replied cobalt outlook is probably bet- ter than that for tungsten. Nickel situation won’t get better soon either, manufacturers were informed — but NPA did tell them it recognizes importance of electronics industry and “some relief on critical metals can be ex- pected” as result of CMP. Members of Transmitting & Special Purpose Tube Industry Advisory Committee at- tending meeting: W. L. Meier, Chatham Electronics; J. A. McCullough, Eitel-McCullough; G. W. Henyan, GE; H. J. Hoffman, Machlett Laboratories; W. Thompson, Raytheon; t’. E. Burnett, RCA; C. A. Rice, United Electionics; H. Myrl Stearns, Varian Associates; L. C. Jarvis, Western Electric. 15 Mobilization Notos: John G. Daley resigned this week as director of NPA Electronics Div., effective June 1. He’s retired general plant mgr. of New England Telephone & Telegraph Co., has served as division chief 5 months, is leaving for personal reasons. Successor hasn’t been named. Tentative staff assignments in Daley’s division (Don- ald S. Parris, deputy director) were announced this week. These are section chiefs: J. A. Milling, end equipment (in- cluding TV-radio receivers); J. Bernard Joseph, TV-radio transmitters; Louis H. Niemann, tubes; R. D. Parker, ca- pacitors; E. MacDonald Nyhen, transformei-s; Edward W. Glacy, conservation; Eric D. Bovet, statistical; J. R. Syphcr (acting), resistors; Delmus J. Fagge (acting), connectors, relays, sockets & plugs; J. A. Pfau, executive assistant. President Truman’s military budget of $60.65 billion for fiscal 1952 year includes about $3.6 billion for elec- tronics-communications, according to best estimates. Budget includes $29.7 billion for major procurement and production, with $1.74 billion for electronics-communica- tions. But this isn’t complete sum for electronics-commu- nications, since that kind of equipment is also included in figures for aii'craft, ships, combat vehicles and artillery, guided missiles, etc. — each of which has separate esti- mate. In budget message. President strengthened powers of Defense Dept.’s Munitions Board over Army, Navy, Air Force procurement and requirements, charged it with watching military’s bite of civilian economy. Govt, aid for expansion of electronic production facil- ities continues on small scale previously established (Vol. 7:10-11,16-17). Of 98 accelerated tax amortization cer- tificates granted by DPA April 14-26 for all types of de- fense facilities, costing $215,277,047, the 9 granted for expansion of electronic and related production totaled $3,892,896, or less than 2%. Only one of these certificates represented a sizeable venture — the one granted to Varian Associates for I'adar tube production facilities valued at $2,455,933 at Palo Alto, Cal., with 5-year write-off for tax purposes on 75 ^ of that amount. Other firms receiving certificates for expansion of facilities relating to electronic production: Collins Radio, Cedar Rapids, radar equipment, $903,266 at 80%; Gen- eral Ceramics & Steatite Corp., Keasbey, N. J., trans- former cores and materials for condensers, $345,253 at 75%; Technicraft Laboratories Inc., Thomaston, Conn., electronic components, $76,006 at 75% ; New York Trans- former Co., Alpha, N. J., transformers for electronic equip- ment, $50,000 at 15'/n; DuMont, Clifton, N. J., electronic equipment, $27,625 at 75%; Hogan Laboratories Inc., New York, electronic research & development, $14,205 at 85%; United States Testing Co., Hoboken, testing of electronic equipment, $11,829 at 75% ; Electronic Associates, Long ' Branch, N. J., electronic instrumentation, $8709 at 85%. Stepping down as DPA administrator to resume IT&T j presidency, Gen. Wm. H. Harrison May 1 assured news- ' men there’s been no delay in military electronics procure- ment program. He said slowness of program hasn’t been j due to bottlenecks, but to time required to develop “en- tirely new products,” many of them unheard of before re- ; armament effort. Before full-scale military electronic j production can begin, these designs must be reduced to i manufacturing stage. We’re in this phase of electronics program now, the general said. i Col. Elton F. Hammond, ex-Pentagon G-4 executive I oflicei-, became Signal Officer of Far East Command, suc- , feeding Maj. Gen. Geoige 1. Back, sworn in May 2 in Tokyo as Army Chief Signal Officer, due back May 23. For benefit of subcontractors, aviation electronics and communications equipment and related equipment will be displayed next month in New York and Chicago by Navy Bureau of Aeronautics and Air Force. Munitions Board has invited 2400 representatives of electronics and related firms to exhibits May 8-10 at New York’s Grand Central Palace and May 21-23 at Chicago’s Navy Pier. Displays will give prime contractors opportunity to show their products to potential subcontractors. If you want to at- tend the exhibition in Chicago and haven’t been invited, you must apply at least 5 days before exhibit at nearest Air Force Procurement Field Office in order to allow time for interim security clearance. Electronic exhibit is sepa- z-ate from current Air Force genei’al subconti’actor clinic ending May 9 at Chicago’s Navy Pier. Revised “critical occupation” list, issued by Labor Dept, for use by draft boards and Defense Dept, in con- sidering defei’ments and delays in call-up of resei’vists, in- cludes electronic technician (except TV-radio ti'ansmitter and receiver repaii’men), electrical engineer, electrical in- strument I'epaii’man, mathematician, physicist. List is to be used in connection with Commerce Dept.’s list of “es- sential activities” (Vol. 7:14). Copies ai'e available from Defense Manpower Administi’ation, Dept, of Labor, Wash- ington, and from Labor Dept, field offices. * Defense priority orders consume 25-100% of the pro- duction of electronic porcelain pai'ts manufacturei’s. So NPA was told April 23 by Steatite Electidcal Procelain Industry Advisoi'y Committee. These manufactui'ei's urged pi’ime govt, contz’actors to advise them as early as possible on estimated needs because of time involved in tooling for new items. Some producers said their plants were running at full capacity; others said they had idle pi’oduction facilities — but all agreed both military and civilian oi’dei’s wei’e being met. Industry members present: John Kruesi, American Lava Corp.; H. Collin Minton Jr., Frenchtown Procelain Co.; George H. Aderhold, Saxonburg Pottei’ies Co.; Christopher L. Snydei*, General Ceramics & Steatite Corp.; William S. Parsons, Centz'alab Div., Globe Union Inc.; Harold I. Danziger, Henry L. Crowley Co.; Joseph Schei’merhorn, National Cei’amic Co.; W. S. Mills, D. M. Steward Mfg.; S. H. Stupakoff, Stupakoff Cei-amic. Rudolph Wurlitzer Co., which makes juke boxes and musical instruments, announced it has total of $10,000,000 in defense contracts and is negotiating for $2,000,000 more. Its principal military products are electronic equip- ment, guided missiles and electi’onic organs for armed forces chapels. In addition to Army and Air Force prime contracts, Wurlitzer holds subcontracts from Emerson, Zenith and Bell Aii’craft. Defense production officials April 24 visited Wright- Patterson Air Foi-ce Base, Dayton, to inspect electronics and aii'cz’aft production progress. Among those znaking flying visit: ODM Director Wilson, DPA chief Harrison, NPA Administrator Fleischmann, Munitions Board chair- man John D. Small, DPA production executive committee chairman W. W. Watts, Electronics Pi'oduction Board chaiiziian Edmund T. Mori-is Jr. Only NPA can grant materials aid to manufacturers. Munitions Board said in recent directive to Secretaries of Army, Navy and Air Force. At the saizze time it requested manufacturers to seek assistance of NPA field offices rather than ask armed forces for help. Weekly DPA publication. Defense Production Record, made first appeai'ance May 4. It summarizes oi’ders, regu- lation.s, recommendations and other activities of govt, de- fense production agencies. It can be obtained for $2. .50 a year from Govt. Printing Office, Washington. 16 Telecasting Notes: DuMont’s 1950 annual report (see Financial & Trade Notes) does not reveal netwoi-k profit- and-loss figures, as did 1949 report — but it does state that “network continued to operate at a loss, although to a considerable less extent than during 1949.” Gross billings of DuMont Network and its 3 TV stations (WABD, WTTG, WDTV) were reported 207% of 1949 billings, which had been I’eported as $2,435,966 (Vol. 6:14). It can therefore be adduced that 1950 income was around $5,000,000. Du- Mont network-station operating loss ran $2,564,491 in 1949 and $1,424,530 in 1948 (Vol. 6:14) . . . Billings of many if not most TV station operations are now running ahead of their AM counterparts, where jointly owned, but first ad agency to reveal TV billings exceeding AM is Young & Rubicam; Variety reports that 1951-52 season, starting Sept., v/ill find that agency spending $30,000,000 on TV- radio (out of total billings of $93,000,000), with $17-18,- 000,000 going for TV time and production, $12,000,000 for radio . . . Either Chicago or Philadelphia, due to conven- tion halls and availability of TV pickups, seen certain to get 1952 Republican and Democratic national conventions; Radio Correspondents Assn, has designated Bill Henry, MBS commentator, to ai’range for pooled telecasts as well as network and station broadcasts . . . Manual titled The ABC’s of Television Film Production, setting forth time and cost factors in production of commercial spots for TV, has been issued by Henri, Hurst & McDonald, Chicago agency . . . Catholic U and NBC’s WNBW, Washington, have arranged tieup for Television Workshop, dramatic productions, educational broadcasts . . . TV applicant KRNT, Des Moines (Cowles) plans to share new 709-ft. TV-FM tower, now under construction, with other stations, a la Empire State Bldg. (Vol. 7:11) . . . KPHO-TV, Phoenix, April 15 raised base hour rate from $250 to $300, one-min. from $40 to $60. Following increased rates May 1: WAAM, Baltimore, $550 to $650 & $95 to $113.75; WHIO-TV, Dayton, $400 to $525 & $50 to $90; WTVR, Richmond, $400 to $500 & $90 to $100; KLAC-TV, Los Angeles, $750 to $1000 & $125 to $175 . . . KOB & KOB-TV, Albuquerque, N. M., appoints Branham Co. as national rep. Five applications for TV stations this week bring total pending to 404. Applying were: WLVA and WWOD, Lynchburg, Va., both for Channel No. 13; WNEX, Macon, Ga., No. 13; WTOC, Savannah, Ga., No. 11; Texarkana (Tex.) Gazette & News (KCMC), No. 6. [For further details about applicants, pi-incipals, etc., see TV Addenda 12-Q herewith; for listings of all applications to date, see TV Faetbook No. 12, with Addenda to date.] Application for proposed sale of facilities of WSB-TV. Atlanta, to group of local business men but with invest- ment firm of Clement Evans & Co. holding 66% (Vol. 7:16) was returned to applicant by FCC this week on grounds it could not tell who ultimate stockholders would be. Investment firm pi'oposed to sell shares locally, and is expected to re-file with complete list of prospective stock- holdei’s. FCC liberalized rule prohibiting separate operation of visual and aural TV transmitters this week. New regula- tion, effective June 13, permits use of test pattern, still pictures, slides for not more than one hour daily to ac- company aural announcements of station’s program sched- ule, newscasts, commentaries. Previous rule limited this to 15 minutes a day. New rule also permits sign-on test patteiTi to be accompanied by music for 15-minute “warmup” period, previously prohibited. May 1 sets-in-use reported since NBC Research’s “census” of April 1 (Vol. 7:17): Washington 261,300, up 7500; Dallas-Fort Worth 117,068, up 4068; Memphis 86,221, up 3221; Greensboro 66,972, up 3072; Miami 65,000, up 5000; Utica 42,000, up 1300; Norfolk 67,309, up 3109. Talk of coast -to-coa.st TV in time for World Series has just enough substance to make it possible. AT&T just doesn’t know whether Omaha-San Francisco microwave will be in seiwice by October, but reiterates that system “may be equipped for TV seiwice before the end of the year.” It announced that telephone ser\'ice would ’oe in- stituted via microwave from Omaha to Denver in July; from Chicago to Omaha in August; from Denver to San Francisco in late August. It also reported that on April 1 an additional coaxial circuit was put into operation from Toledo to Dayton, making total of 4 southbound, one north- bound. On May 14 additional microwave circuits will be opened from Columbus to Dayton (making total of one westbound, 3 eastbound) and from Dayton to Cincinnati (making 3 southbound, one reversible on notice). Advertisers are using new money for TV, not taking it from other media. That’s conclusion of Magazine Ad- vertising Bureau in recent study titled Where Are TV Budgets Coming From? Bureau took 126 TV advertisers, found that although they increased TV expenditures 286.5% last 6 months of 1950 compared to same period 1949, they also increased magazine buying 11.8%, Sunday newspaper supplements 20.1%, network radio 0.6%. Non- TV advertisers, on other hand, increased magazine ad- vertising by 10.3%, but reduced Sunday newspaper supple- ments 9.1%, network i-adio 3.3%. Value of movies in vaults of 5 major producers is figured at $281,520,000 in the TV market by New York stockbroker Reynolds & Co. in April 19 report titled Hid- den Values in Motion Picture Production Companies. In much same vein. Paramount’s Paul Raibourn touched on subject recently (Vol. 7:13). Reynolds report estimated that TV can pay $20,000 per half-hour film, that Holly- wood movies run for 2 hours, therefore each film is worth $80,000. Here’s what Wall St. firm figured each of the 5 majors has in way of films made between 1933 and 1949: MGM, 670, value for TV estimated at $53,600,000; Para- mount, 732, $58,560,000; RKO, 694, $55,520,000; 20th Cen- tury-Fox, 758, $60,640,000; Warner Bros., 665, $53,200,000. Two SMPTE committees are working on standards for TV films. Joint SMPTE & RMTA committee on film equip- ment is working on 3 standards: (a) dimensions of TV slides and opaques; (b) development of 16 mm motion pic- ture projector for use with TV cameras operating on full- storage basis; (c) location and size of picture area in TV recordings of 16mm and 35mm motion picture film. Com- mittee on TV films is working on getting industry to ac- cept additional markings on film “leaders” (that portion of film preceding actual pictures), including 16mm sound start, pattern for TV adjustment, switch-on mark. Eastman-Kodak’s new 16mm film projector for TV stations was described for first time at SMPTE conven- tion in New York this week. Principal feature is method by which pull-down time of film is coordinated with blank- ing period of TV camera. Especially built for TV, $6500 apparatus is said to furnish greater definition, more light, higher sound quality than can present equipment. Also described w'as new 35mm TV recording camera devel- oped by Pi'oducers Service Co., Burbank, Cal. Telecasters Film Syndicate Inc. is new corporate name of cooperative TV film syndicate recently formed as Con- solidated Television Broadcasters Inc. (Vol. 7:17), with Richard E. Jones (WJBK-TV, Detroit) president and Har- rison Dunham (ex-KTTV, Los Angeles) executive v.p. All FM stations operating functional music fall within puiwiew of FCC “order” declaring such operations illegal. Commission announced this week. I.ast month, FCC wrote 4 such stations .advising them of such ruling, told them to 4 state why they shouldn’t be forced to cease such broad- casting (Vol. 7:15). MARTIN COOEL's AUTHORlTATIVi NCWS SfRVICf or THE VIlUAl MOAOCASTINO ARTS AND INDUSTRY WITH AM (/ FM RIPORTS PUBLISHED WEEKLY BY RADIO NEWS BUREAU, 1519 CONNEatCUT AVE. N.W.. WASHINGTON 6. D.C. TELEPHONE MICHIGAN 2020 • VOL. 7, NO. 19 May 12, 1951 {‘The Great Channel Hunt’ Slows Freeze, page 1. How Building Controls Affect TV-Radio, page 2. ABC Sale Deal Still on the Fire, page 3. Bitners Buy WLAV-TV for $1,300,000, pa.ge 5. No Regulation W Relief, Output Dwindles, page 6. Case for the TV-Radio & Appliance Industry, page 7. The TV Business — Take a Long Look Ahead! jmge 8. Topics & Trends, Financial Reports, pages 9-10. 'THE GREAT CHANNEL HUNT' SLOWS FREEZE: Freeae-end appears further away than ever, as FCC and industry stagger under load of some 600 comments on end-of-f reeze plan (see TV Allocation Report of March 24), dumped in Commission's lap this week. [For digests and listings of all comments available — 308 commercial, 215 educational, 56 from municipalities — see Supplement No. 72 sent herewith to all full-service subscribers. We'll catch any stragglers next week.] Beyond sheer weight of comments, presaging protracted city-by-city hearings, intimations of possible court action in many of the comments render timing of end- I of-f reeze even more nebulous. FCC's plan is already in court, in a sense, since City of Jacksonville has asked District of Columbia Court of Appeals to enjoin proposal to move Channel 2 to Daytona Beach. City is fighting to recapture CP it once held (Vol. 6:41). ; Court action is "being seriously considered” by number of applicants, ac- cording to their attorneys. Some say such action is "probable," on any or all of these grounds, among others: (1) Educational reservations. (2) Pre-determined allocation plan, fixed in rules. (3) Denials of applications where hearings have already been held, via plan's channel shifts and reservations (Detroit, Philadelphia, San Francisco, etc.). When such court appeals might come isn't clear. They could come immediately or wait until final decision on whole allocation. ^ ^ ^ * Legalities aside, FCC's ov/n procedural plan is bound to undergo delays. ' For example, legal and engineering associations, plus NARTB-TV, plan to ask for I postponement of deadline for counter-comments from May 22 to June 11, will undoubt- t edly get it. That means early July before city-by-city hearing starts; it's pres- ' ently scheduled for June 11. Hearing itself will be a dilly. In addition to commercial interests — who certainly won't let channels slip out of their cities by default — educators' spokesmen claim that 3 or more witnesses from each of 50-75 cities will be on hand. That doesn't sound like a mere couple months of hearings, even though FCC will strain to keep testimony to the point. There's some thinking in Commission that hearing's gait will accelerate after heavy initial testimony. And Congress isn't out of the picture, by any means. Sen. Johnson himself filed a comment for Colorado, as did colleague Sen. Millikin, proposing reshuffle to get more channels into Denver and State in general. Still pending, too, are educational resolutions of Sen. Benton and Rep. Celler (Vol. 7:18). Nature of most comments is obvious from glance at Supplement 72; (1) Channel shifts. Everyone discovered the obvious in FCC's plan — it ' s "loose" (Vol. 7;12), most co-channel allocations being 200-220 miles apart, rather than 180-mile minimum. Thus, adroit juggling frequently allows additional stations - 2 - without violation of proposed standards or robbing any city of channels. In addi- tion, many propose simply to shift channels from neighboring cities, claiming their own are vmder-served. (2) Reduced spacings and pov;ers. When FCC's standards couldn’t be met with any parlay, exceptions to Commission's minima are requested. Frequently requested is abandonment of 180-mile city-to-city spacing, retention of 170-mile transmitter- to-transmitter spacing. (3) Educational reservations. Schools simply endorse idea, want more chan- nels, particularly vhf. Same goes for mayors, city councils, etc. Commercial in- terests either simply oppose reservation, frequently claiming principle illegal. or suggest giving schools uhf instead of vhf. * ^ ^ * Those pitches account for bulk of comments, but almost every other angle is covered, sometimes at exhaustive length; (1) Of the 51 existing stations required to shift channels, none gives flat "no," but several don't want to, offer alternative shifts — generally to stay on low vhf channels. (2) Network reactions vary. ABC likes plan in general, but doesn't want adjacent-channel restrictions on heights and powers. CBS wants enough flexibility to allow more stations in major markets. DuMont attacks basic philosophy of plan, holds that it promotes monopoly, offers complete substitute in huge document (Vol. 7:18). NBC thinks plan pretty good, engineering-wise, but suggests procedures for faster freeze-lifting. (3) In Gulf area, existing stations want more space between stations, appli- cants see no good reason for it. (4) Move all commercial TV to uhf, say a few "outs," suggesting vhf for the educators, if anyone. (5) Uhf powers are too low, is claim of some who say that ceiling should be left open, changed quickly as propagation data is gleaned from experience. (6) A very few educators say they don't want vhf channels, ask their release for commercial use. A few more want to go commercial themselves. (7) State-wide educational network, 10 cities at first, is planned in New York. Board of Regents says it will ask legislature for $3,500,000. HOW BUILDING CONTROLS AFFECT TV-RADIO: NPA hasn't "banned" construction of TV-radio stations — notwithstanding plethora of wild rumors and reports. Even FCC people were in dither this week about these tales, which are about as correct as saying NPA has banned construction of schools, churches, hospitals, highways, bridges, public utilities and railroads — covered by same NPA order which governs TV-radio station construction. New order (M-4 as amended) simply says you'll need authorization from NPA if you want to build any of these items, as well as others previously put under con- trols (Vol. 7:3,6). The only actual construction ban issued by NPA came out last fall and affects amusement building (6:43,44), not including broadcasting plants. Effect of new regulation — together with earlier ones — is to put all con- struction under NPA controls, paving way toward inclusion of construction in Con- trolled Materials Plan (Vol. 7:15,18) by July 1. But every present and prospective broadcaster and telecaster will be af- fected by the regulation. It requires NPA authorization for any construction using more than 25 tons of steel (some 500-ft. antenna towers weigh less) or alteration costing more than $5000. If you've already begun construction, cleared site for new building before May 3, you can go ahead and finish without authorization. Same is true of altera- tions if you used "substantial quantities of materials" before that date. After you apply to NPA, what are your chances of getting go-ahead to build? From all indications, they're very good — probably excellent if you plan to build new station in community which doesn't have one now. NPA officials long ago placed - 3 - TV-radio broadcasting in "essential" category, even specifically exempted this type of construction from earlier controls. NPA will look favorably upon your application if you can answer "yes" to any one of these questions: (1) Would it further the defense effort by providing needed facilities near military establishments or defense projects? (2) Is it essential to maintenance of public health, safety or welfare? (3) Would it alleviate or prevent hardship to a particular community? TV-radio *s value in civil defense, information and morale makes strong case on each point. In final consideration of application, NPA says it "will consider the type and quantity of materials on hand, and needed, for the facility, and the effect on the community at large if the authorization were denied." NPA will consult FCC to work out detailed criteria for authorization of station construction. But two things are certain now; (1) NPA won't approve any plans for station construction if station doesn't have CP from FCC. New building and alterations by radio stations, which take into account future expansion into TV — common in past — probably won't be approved. (2) Frills and furbelows will have to be eliminated. NPA says "architects and engineers. . .must give fullest consideration to using substitutes for critical materials and keep the design simple." Complete, detailed plans, specifications and lists of materials to be used must accompany applications — on form NPAF-24, available from Commerce Dept, field offices or NPA Construction Controls Div. , Washington. Approval by NPA won't carry with it any certified check for materials. As things stand now, there'll still be a scramble. But picture will change when con- struction is brought under CMP. Then, authorization will probably entitle builder to necessary materials. Structural steel — vitally needed for expansion of defense plants — is big bottleneck. If shortage gets much worse, it's possible all non-defense building will be banned for a period, as it was during most of last war. But at present, NPA would rather see that all new stations conserve to the limit — than give any a flat turndown. ABC SALE DEAL STILL ON THE FmS: Complex deals upon which projected purchase of ABC by CBS was predicated — involving sale or re-sale of ABC's radio network and of 1, 2 or 5 of its 5 TV stations — were still supposed to be cooking at end of week. There were indications, though, that CBS might not be the package-purchaser. Apparently the hottest of all the "sub-purchase" prospects, Yankee-Don Lee interests, went glimmering this week after long and detailed negotiations. Storer interests also definitely dropped out, and IT&T deal apparently never was serious. United Paramount, big movie theatre chain recently separated from Paramount Pictures, was revealed as having entered the lists as a possible purchaser of the whole kit and kaboodle — with thought of re-selling only Chicago TV outlet, WENR-TV. Natural purchaser would be CBS, which had indicated willingness to pay as much as $10,000,000 for 3 of the 5 TV outlets owned by ABC (Vol. 7:18). Conferences were under way in New York as this was written, with topkicks of United Paramount and ABC participating but CBS executives notably absent. It's com- mon knowledge that United Paramount is more than pleased with highly profitable operation of its WBKB, Chicago, and its executives have never shared the aloofness of other movie tycoons toward the parvenu TV competitor. There's many a slip, and an announcement one way or the other — probably in the negative — should be forthcoming by the time you read this. Part of Paramount's consideration is said to be disposal of AM network, for its prime interest is TV. Discussions about the AM properties were held with Farm Bureau Insurance Co. , big Ohio concern which owns Peoples Broadcasting Corp. , recent purchaser of WOL, Washington, and owner of WRFD & WRFD-FM, Columbus, 0. But these were said to have come to naught. All this week has been merry-go-round for newsmen seeking to plumb confused 4 - off-again-on-again ABC-CBS "deals". They have had entire broadcasting-telecasting fraternity buzsing ever since story broke last week about proposed $28,000,000 CBS "package purchase" (Vol. 7;18). "A lot of opium smoking," was way one newsman described phantasmagoria of reports, rumors, denials — and that just about tells the story. Only thing certain was that ABC is definitely on block, can be had by any customer who can not only meet majority stockholder-chairman Edward J. Noble's demands but can also satisfy qualifications (notably anti-trust) of FCC, Dept, of Justice and Congress. Until mid-week, apparently, CBS had reason to believe it had deal all but- toned up, whereby it would buy ABC, retain 2 or 5 of its TV outlets (in Chicago, Detroit, possibly San Francisco), maybe even keep an ABC-AM outlet here or there, sell off the rest for $18-20,000,000. (Detroit entered into speculation because CBS has one of its toughest AM affiliation deals there, with Dick Richards' WJR. ) Buyer was to have been General Tire & Rubber Co. , v/hich owns Yankee and Don Lee networks. Those networks v;ould have been sold, along with their own stations, but Yankee TV outlet in Boston (WNAC-TV) was to have been retained. Tom O'Neil, 35-year-old son of General Tire president, who riins the radio properties, would have turned attention to running ABC radio network and a revamped ABC-TV network, whose nucleus would be WNAC-TV plus ABC's WJZ-TV, New York; KECA-TV, Los Angeles; KGO-TV, San Francisco, and such present affiliates as would stick. CBS would thus get only WENR-TV, Chicago, and WXYZ-TV, Detroit. It was felt such a parlay would be acceptable to Washington, since neither the AM nor TV network would be discarded. Indeed, even keener competition was envisaged — for the young O'Neil, who is also chairman of MBS, would have to pull out of that network. The legal fraternity, watching developments closely, are of one mind in their conviction that no deal which would eliminate or curtail competition could possibly win approval of Washington. Hence, any mergers seem out of the question. * * * * As things stand now, it's apparent Noble v/ill eventually sell — may indeed be constrained to do so, regardless of frequent disavowals that probably will be re- peated if Paramount deal falls through, because the negotiations have already had these palpable effects; (a) ABC staff morale has been seriously shaken, along with confidence in management. Everybody's worried, many are casting about for new jobs. Resignations already include 2 vice presidents within week (see Personal Notes). (b) ABC affiliates, both AM and TV, make no bones about their anger toward ABC management — for creating state of uncertainty, failing to tell them the score. They've been disaffected long time, anyhow, by dwindling network income, latterly worried (along with all other network affiliates) by projected AM rate cuts. (c) Sponsors are asking whether there's going to be a network, whether they may safely make long-term commitments for time, personnel, etc. It's manifest cur- rent negotiations — with inevitable crop of rumors — aren't good for business. (d) Minority stockholders of ABC, which is traded on N.Y. Stock Exchange, are also puzzled and disturbed about future status of their holdings. There are 1,698,017 common shares outstanding, of which Mr. Noble owns 901,667. or 53.38%. Executives' holdings, reduced in recent years, aren't very large (Vol. 7:13). What- ever deal Noble makes is bound to be subject to approval of minority stockholders. Latest asking price was reported $26,000,000, based on a 14-15 valuation of ABC stock. Noble is said to have wanted exchange-of -stock deal with CBS, not cash — and same idea was being considered in Paramount discussions. * * * * Some CBS affiliates are also outspoken in their dislike of what's going on, also sore because they've been told nothing. They're really smarting under recent rate cut order (Vol. 7:15-16), and some who went along with CBS in not applying for TV channels now don't like the enormous testimonial to TV implicit in their net- work's zeal to get stations via the high finance route. 5 There can be little doubt that network domination of the industry is thing of past, its collapse hastened by recent events — particularly the impact of TV. Since rate cuts, NBC suffers from disaffection only little less than ABC and CBS. This week. Securities & Exchange Commission disclosed that Isaac D. Levy, one of CBS's founders, a major stockholder and director, had sold 5000 shares of his Class A stock as of April 30. It's generally assumed he and his family sold the block of 35,000 shares also marketed privately last week (Vol. 7;18). BITNERS BUY WLAV-TV FOR $1,300,000: Deal for sale of WLAV-TV, Grand Rapids, was closed in Washington May 11 — purchase price $1,300,000, purchasers the group headed by Harry M. Bitner, onetime top Hearst executive, former publisher of Pittsburgh Sun- Gazette. Bitner family and employe interests (WFBM Inc.) own WFBM-TV, Indianapolis, which with its AM counterpart is managed by Harry M. Bitner Jr. They also operate AM stations WOOD, Grand Rapids; WFDF, Flint; WEOA, Evansville. Seller is Leonard A. Versluis, who established WLAV-TV in August 1949. He retains companion AM outlet WLAV, which probably means WLAV-TV call will be changed to WOOD-TV. Station is on Channel 7, which is only vhf outlet allotted Grand Rapids under FCC's new allocation plan; city gets 2 uhf channels, one for education. Price is highest ever paid for TV outlet in comparable market, exceeded only by the $1,400,000 which Washington Post (55%) and CBS (45%) paid for WOIC, Washing- ton, now WTOP-TV (Vol. 6:25). When CBS last winter bought KTSL, Los Angeles, it paid $333,765 plus $228,000 annual rental of facilities (Vol. 6:52). Only other TV station sales deals since telecasting came into own — though a few others are known to be in the making — were KFMB-TV with KFMB, San Diego, sold to John A. Kennedy for $925,879 and other considerations (Vol. 6:46, 7:17); KBTV, now WFAA-TV, Dallas, sold to Dallas News for $575,000 (Vol. 6:4,11); KLEE-TV, now KPRC-TV, Houston, sold to Houston Post for $740,000 (Vol. 6:13,21). Personal Notes: otto B. Brandt, ABC-TV stations v.p., resigns as of June 1 to become v.p. & gen. mgr. of KING & KING-TV, Seattle, succeeding Hugh Feltis . . . Frank Samuels, ABC Western Div. v.p., has resigned to join William Morris Agency as head of TV-radio dept., Holly- wood . . . Richard Doherty, NARTB’s labor relations direc- tor, appointed by President Truman as one of the 6 man- agement representatives on new National Wage Stabiliza- tion Board . . . Robert S. Woolf promoted to mgr., DuMont Teletranscription Dept., succeeding Edward R. Carroll, re- signed . . . Lloyd Dennis promoted to dii-ector of program service, WTOP & WTOP-TV, Washington, succeeding Mrs. Hazel Markel, resigned to join MBS ... A. Donovan Faust, ex-WLWD, appointed asst. gen. mgr. of WDTV, Pitts- burgh; Byron Dowty, ex-WDSU-TV, named production director . . . Harry W. Zipper, ex-asst. to J. Kelly Smith, CBS v.p. in charge of owned & operated stations, named production business mgr., KTSL, Los Angeles . . . W. H. Case, director and senior v.p., appointed head of creative and TV statf for all offices of Campbell-Ewald Co., De- troit; Frank W. Townshend, v.p., named mgx'. of New York office . . . Richard McKeever, ex-Wm. Esty & Co., ap- pointed head of TV-radio timebuying, Walter Weir Inc. . . . Edward F. Kenehan, ex-FCC and recently with Welch, Mott & Morgan, Washington, has joined legal staff of RCA Victor, Camden . . . Edgar F. Vandivere Jr. leaves FCC’s Technical Information Div., joins Washington consultants Weldon & Carr . . . Newly-elected officers of Assn, of Fed- eral Communications Consulting Engineers: George C. Davis, pres.; James C. McNary, v.p.; Frank G. Kear, secy.; Frank H. McIntosh, treas.; Ronald H. Culver and John Creutz, members of executive committee . . . Mark Woods, ABC vice chairman, awarded honorary Doctor of Laws de- gree by Ithaca College May 12 . . . Richard C. Dreyfuss, ex-CBS, named film director of WDTV, Pittsburgh . . . Charles A. Batson, TV director, NARTB, has resigned. Station Accounts: Major newcomers to TV, buying par- ticipations on WCBS-TV, New York, are reported by that station to be: Tasty Toothpaste Co. (strawberry & bubble gum flavors), in Sheriff Bob Dixon Show, thru Victor Van Der Linde, N. Y.; Pan American World Airways, in The Early Show, The Real McKay and One o’Clock Matinee, thru J. Walter Thompson Co., N. Y.; British Xylonite Inc. (Halex combing brushes), in Margaret Arlen Program, thru Coppo Co., N. Y.; National Enameling & Stamping Co. (Nesco electric roasters), in Margaret Arlen Program, thru Needham, Louis & Brorby, Chicago . . . TV-Radio in- cluded in plans for National Guard recruiting, for which Congress has been asked for $600,000 for 1952, Robert W. Orr Co., New York, reappointed agency . . . Among other advertisers reported using or preparing to use TV: Clover Lamp Co. Inc. (lamps), thru Ed Shapiro Adv., Philadelphia; Maybert Corp. (Merrie Magic cream sham- poo), thru Hilton & Riggio Inc., N. Y.; Rean Mandell Inc. (Candle-Glo home permanent wave), thru Allen & Reyn- olds, Omaha; Temptin’ Products Inc. (Temptin’ hair make- up), thru Jay Gabriel Bumberg, N. Y.; Roselux Chemical Co. (Rose-X bleach & starch), thru Mui’ray Director As- sociates, N. Y.; Altes Brewing Co. (Golden Lager beer), thru McCann-Erickson, Detroit; Pearson Pharmacal Co. (Ennds deodorant pills), thru Harry B. Cohen Adv- Co. Inc., N. Y.; Comal Hosiery Mills Inc. (Comette hosiery), thru Glenn Adv. Inc., Dallas; Brock Candy Co., thru Liller, Neal & Battle Adv., Atlanta (WSB-TV); H. W. Lay & Co. (potato chips), thru Liller, Neal & Battle Adv., At- lanta (WSB-TV); Jose Escalante & Co., Chicago (Cornia cigars) (WENR-TV) ; Amity Leather Products Co. (bill- folds), thru Cramer-Krasselt Co., Milwaukee (WABD); Minnesota Paints Inc., thru Nelson-Willis Inc., Minneap- olis; Parfums L’Orle Inc. (Silkmist hair beautifier), thru L. H. Hartman Co. Inc., N. Y.; Hoffman Candy Co. (Cup- o-Gold bar), thru Mayers Co., Los Angeles, NO REGULATION W RELIEF, OUTPUT DWINDLES: Federal Reserve Board flatly rejected RTMA requests for relaxation of Regulation W — even as lUE-CIO radio and television con- ference board was being told by its researchers that about 25,000 TV-radio workers are now unemployed and as official trade statistics showed production falling to new low and factory inventories climbing to new high. It now looks like a trade stalemate that can be relieved, at least in imme- diate future, only if there's resurgence of public buying, which nobody contemplates will resume before fall on anything like last year's scale. Inventories continue high (see Topics & Trends), and situation wasn't alle- viated by RTMA auditors' report that week ending May 4 saw only 66,077 TVs produced (3833 private label), year's new low, comparing with 83,516 preceding week. Factory inventory figure as of May 4 went to 474,541, new high, compared to 403,642 the week before. Radios fell, too — totaling 298,149 for week, with inventory of 187,305, auto sets actually exceeding home units. Week's output comprised 136,538 auto radios, 122,686 home sets, 38,925 portables. * * * * RTMA decided to appeal to Congress for relief, disagreeing with the FRB' s finding that Regulation W isn't to blame. It had asked amendment of credit regula- tion to permit trade-ins to be applied against 25% down payment , or else that TV- radio sets be placed in house furnishings category so that down payment might be 15%. Both ideas were rejected, FRB stating: "Although the Board recognizes that there has recently been a marked soften- ing of demand for TV sets, compared with the heavy buying wave during December and January, it doubts that the restrictions of Regulation W have been the dominant factor in this relative slackening of demand for such sets. "The phenomenal expansion of TV production and sales in the relatively short span of the past few years raises a question as to whether there may now be a temporary condition of near-saturation of existing major markets. Also, many poten- tial purchasers in the existing major markets probably are deferring purchases for one reason or another, such as the expectation of further price reductions as pres- ent inventories are liquidated, or the imminence of uhf TV. "In so far as Regulation W is not the cause of the reduction in sales of TV sets, a relaxation of the requirements of the regulation could not reasonably be expected to solve the problem. . . "A major relaxation for one regulated article — such as allowing trade-ins to be counted as down payments on television sets — would tend to create important competitive inequities unless there was also such an equivalent relaxation for com- peting articles as to amount to a general relaxation that would tend to nullify the effectiveness of the regulation." Board's letter, whose economic reasoning regarding TV markets and "the immi- nence of uhf TV" are obviously open to challenge (see statement on p. 7), says it can't make exceptions for one regulated article, concludes it must "consider the necessity for curbing the inflationary effect of installment credit in the interests of the country as a whole in this period of national emergency. " * 5i= >1: RTMA has engaged consulting economists Boni, Watkins, Mounteer & Co., New York, which worked with its tax committee, to prepare data on effects of Regulation W on sales for presentation to Congress. Philco general counsel Philip Dechert was appointed chairman of special committee to prepare testimony. Members : Robert S. Alexander, Wells-Gardner ; H.C. Bonfig, Zenith; John W. Craig, Crosley; S.R. Curtis, Stromberg-Carlson ; Allen B. DuMont ; Paul V. Galvin, Motorola; H.L. Hoffman, Hoffman Radio; Robert Seidel, RCA Victor; Glen McDaniel, RTMA; Frank Uriell, Admiral. - 6 - 1 THE CASE FOR THE TV-RADIO & APPLIANCE INDUSTRY Editor’s Note: Here is a sizeup of the TV-radio and appliance trade’s current dilemma, with recommendations what to do about it — so clearly and succinctly stated, so sound, that the full text ments close reading by everybody in the industry. The author prefers to remain anonymous. Suffice to say he’s one of the business’ older and wiser heads, who wrote this as a memorandum for certain govt, officials as an industry service, not for aggrandizement of himself or his firm. It wasn’t intended for publication, but we were able to obtain a copy with permission to reprint. An important arterj’’ of the national economy has developed a clot — and remedial measures are urgently needed. This clot is in the form of excessive inventories in the appliance and television industries. The condition of dis- tributor and retail inventories in this field has reached a state which, if allowed to continue, can do great harm in our economy. It is already causing bankruptcies, and due to increased factory inventories which are not moving will result in the layoff of a large number of our labor force before the Government’s defense program is ready to ab- sorb this labor. While it makes no difference at this time how the pres- ent condition came about, it will be helpful in finding a solution to review exactly what has happened and not happened. Last fall the Government, of necessity, released publicity indicating to the public, manufacturers, distributors and dealers that there were going to be shortages. These short- ages, according to the statements, would begin to take effect in the spring of 1951 and would get worse as the year wore on. The reaction was immediate. The manufacturer, having lai’ge stocks of material on hand, was galvanized by fear that his production would gradually diminish and decided to ignore the normal seasonal trends by building every- thing possible in the little time that he felt was available. The dealer shared this fright. He decided to buy every- thing he could in order to protect himself, so as fast as the goods were produced they were absorbed by the dealers. The consuming public, watching the Korean war and remembering the war shortages, bought in anticipation of its future needs. As is always the case when decisions are made in fear and haste, they were wrong. * * * ^ The Government misjudged how rapidly the defense orders would be placed and industry switched over to defense production. Manufacturers were wrong in accept- ing the Government’s appraisal of how fast this was going to happen and also in ignoring seasonal trends. Equally in error were the distributors and retail dealers in buying too much and in buying from many different manufac- turers. Everybody was wrong in the light of today’s developments. Neither second-guessing nor recrimination can change the present situation, which is now acute. But an error in judgment may be compounded — as we all hope it will not — by ignoring the unhappy result and letting it con- tinue. Unfortunately, with this condition existing the Government in its effort to control inflation recently an- nounced it was “rolling back prices to pre-Korean levels.” This announcement, coupled with the price break which had already taken place in television due to distress stocks in dealers’ hands, has caused the public to reduce buying on all appliances. So the combination of the pre-buying which took place last fall, the application of Regulation W which has elim- inated the low-income groups from purchasing, the price break in television and the government’s announcement of rollbacks has drastically reduced retail sales. * :1s What is to be done with these vast inventories? Stagnating in distributor and dealer stocks, these products will not do anybody any good. They are both wanted and needed by the public, but they cannot serve the public in warehouses. The terminals, being used to store these and other inventories, are also needed for defense purposes. Unsold, they will not produce any profits from which taxes are paid. It is in the best interest of everyone — government, in- dustry, distributors, dealers and the public — to help move these inventories and dissolve the clot in our distribution system at the earliest possible moment. The effect of the present situation on labor is of special urgency. Because of the inventory congestion, manufac- turers are now forced to lay off workers, and unless sales are stimulated quickly large unemployment will result as activation of defense orders are not presently sufficient to absorb the labor. The result is not only a loss of trained manpower to the manufacturer but loss of tax revenues to the government. The laying off of this labor places a strain on the economy and an extra burden on these people. In the electronics field, this dispersal of labor is very dangerous. Skilled help must be retained to a reasonable degree by those companies upon whom the Government must depend to produce the electronic equipment that will be needed when the full impact of defense production is upon us. We believe that these inventories can be relieved within a reasonable time if a temporary modification of some of the orders and Regulation W can be made. In modifying Regulation W, there are two ways in which this can be done. One is to discontinue the discriminatory requirements that trade-ins on appliances and television sets do not apply to the down payment. The Federal Reserve Board has permitted trade-ins to apply in auto- mobile sales, and there is no reason why they should not apply to the sales on television and appliances. These articles which are traded in have value and represent an investment in money by the people who own them. 4: ^ The second way to help sales is to reduce the 25% down payment now required to 15%. The 25% payment is dis- criminatory against the low-income groups, forcing them either to forego purchases altogether or in many instances causing them to sell “E” bonds to make the down pay- ments. These people, under our present standard of living, require appliances and the advantages of television sets as much or more than do the more fortunate individuals with larger incomes or more money. It has been proved in the past that low-income groups which are accustomed to buy- ing on low down payments live up to their contracts. As labor leaders have stated, these people should not be dis- criminated against. In normal times thousands upon thousands of these low-income people would now be pur- chasing these articles at this season of the year, but under the credit regulations cannot do so. These modifications would do much toward relieving the excessive inventories. * * * The Government should also do something quickly to correct and clarify its price rule order which has just been issued. An analysis indicates that this order is vitally affecting sales and companies cannot do the accounting required by the order in the time allotted, which is May 28. This order, as written, may precipitate a real crisis if not corrected. In effect, the public has been told that prices are going to be lower on May 28. It is only natural that they will put off buying until after that date unless the dealers and factories guarantee to rebate the difference if prices are reduced. These rebates which would have to apply to present stocks as well as production may amount to mil- lions of dollars, and no factory would dare guarantee prices without knowing the amount involved. It is a 7 8 physical impossibility for the accounting departments of companies to comply with the order as written, and analyze and furnish to the government the information that is necessary in determining the prices by May 28. If the Government extends the time allowed when it is evident that this accounting work cannot be done, it will only have the effect of further delaying sales as the public will con- tinue to put off buying. This delay in purchasing is hap- pening during May and June which usually produces about 25% of all appliance sales of the year’s total volume. While this delay in sales is taking place, the factories must continue to produce enough products to hold the labor force. The situation is obviously most serious unless sales can be increased and the inventories reduced. It has been the practice of the Government in the past to recognize dislocations in our economy and to correct them. The Government, for instance, helps keep farm production and prices on an even keel with a carefully planned program. There are programs to protect wages and help labor in many ways. There are other programs, and there should be a program to protect the distributive system of the country, which is the bloodstream of business and so important to our economic welfare. Since the distributive system now is clogged, action should be taken — immediately — to get the system functioning again. Unlike the assistance usually given to other segments of our economy, relief in this case calls for no subsidies, and no additional taxes. All that is needed is the correc- tion of orders which are proving to be unworkable and the temporary relaxation of restrictive measures that the government has taken in anticipation of conditions that did not materialize and as a result are impeding the normal functioning of our country. We, therefore, recommend that the Government immedi- ately modify temporarily these orders. Control of produc- tion will automatically be effected in the future through the Controlled Materials Plan for essential industries. Today, living in a dual economy, part war and part peace, for the first extended period of our history, our country needs flexible approaches to problems that are bound to change from time to time unless we have an all-out war. False consistency can be as dangerous as false security, and our strength will be in our ability to quickly recognize and to change anything that is not working. THE TV BUSINESS-TAKE A LONG LOOK AHEAD! It isn*t often that anybody’s ad is worth repeating as news — but Bendix Radio ’ s inspiring full-page in recent Retailing Daily, captioned "Take a Long Look Ahead 1" ought to be posted prominently in every business house in TV, ought to be must reading for every employer and employe alike who may feel any sense of gloom about TV's currently becalmed trade winds. The text: "We who are in the television business — whether as manufacturers, dis- tributors, or retailers — are fortunate, indeed. "Here is a business as sure of its future as the automobile industry, and for an identical reason: television fills a fundamental human need. "Nothing can stop it — not Regulation W, station freezes, material short- ages, taxes, competition from other consumer products, or any other spectre evoked by the prophets of gloom. "What the public wants it gets — and it is now beyond question that the public regards television as an essential of living. As sure as sunrise every home will have it, for the obvious reason that — unlike almost every other necessity — it has no substitute. "The bogey of market saturation also vanishes before the facts revealed by a nearly perfect business parallel. "The radio business is nearly thirty years old. Ninety per cent of American homes have radios. Yet, despite the competition of television in radio's major out- lets, in 1950 this old and allegedly saturated market absorbed 14,500,000 new radio sets — more in a single year than all television sets sold to date. "The future is brighter still for television. For the past decade popula- tion increase in the United States has averaged 1,900,000 a year. Simple mathemati- cal progression should increase that figure in coming years... "Normal replacement of small picture sets, worn out sets, and sets outmoded by improvements now in prospect, plus multiple set ownership, assure a steady yearly market of many millions more... "Actually, the lifting of the station freeze will eventually multiply the number of buyers many times, and benefit today's markets immeasurably by opening up sales to the millions in the marginal regions around present broadcasting areas. Phenomenal as its voliune has been to date, the business is still but a shadow of what it will become. "In fact, a business opportunity as broad as television has appeared only two or three times in this century. As far as thought can reach, the market is big and prosperous. It is one of the richest bonanzas of all time. "If you have a soundly backed and soundly financed television franchise, hang on to it — you own a gold mine. If you have television sets in storage, don't be panicked into price-cutting. The radio industry, stampeded by every seasonal change in the selling pace, threw away untold millions of dollars in profits by lan- necessary dvunping. We know better today. The market is there. Take a look ahead, then get back to good old-fashioned aggressive, intelligent selling." 9 Topics & Trends oi TV Trade: Inventory statistics are next quarry of Frank Mansfield’s RTMA statistics committee, with Dun & Bradstreet to do monthly survey of wholesale and retail establishments to determine exactly how many TV and radio receivers are on hand. Factory inventories are already being reported weekly, along with RTMA’s production estimates, compiled by Hasldns & Sells. Plan is to have about 40 manufacturers underwrite effort for about year, see how well it works, then make it part of regular RTMA statistical service if figures fill a real need. While industry leaders have guessed total TVs now in pipelines at anjrwhere up to 2,000,000, Television-Elec- tronics Fund Inc. this week released what it believes is first published “study” of TV industry’s inventory posi- tion. Details of how figures were arrived at weren’t dis- closed, but investment trust’s statisticians estimated ac- cumulated inventory on May 1 at between 1,750,000 and 1,850,000 sets, or about a 3 to 3% months’ supply based on average monthly sales for preceding 12 months. Report estimated inventory at 1,261,000 as of Jan. 1, 1951, rising to 1,835,000 as of April 1 and 1,935,000 as of April 27. Latter figure, it is stated, should be adjusted to allow for between 150,000 and 200,000 sets scrapped and destroyed — hence the above May 1 “guesstimate.” * * ♦ * Radio, TV & Parts Conference of lUE-CIO, represent- ing about 75,000 workers (Daniel Arnold, RCA, chairman), adopted resolutions in Chicago May 5 making these points: (1) Asks companies to cut prices, produce lower- priced models. Asks Federal Resei-ve Board “to tempo- rarily liberalize the credit rules [by] reducing the down payment to 15% and permitting old sets to be used as part of the down payment.” Opposes proposed increase in excise tax to 25%. (2) Wants defense agencies to “take more vigorous steps” to see that “proper share” of electronics prime and subcontracts go to electronics industry, and that such contracts “be distributed widely and not concentrated into a few firms.” Union refers to 190,000 workers in TV, radio, parts industries, foresees 400,000 within another year. It claims “resources of this industry have not been adequately utilized,” asserts “new facilities are being built while present facilities are inadequately used, new man- power is being hired and trained in new centers while present manpower suffers unemployment.” (3) Seeks to wipe out what it calls present “12-15(^ an hour differential our industry suffers compared with I others.” Asks that (a) wages be adjusted for increases in I living costs; (b) wages be adjusted for increases in pro- I ductivity; (c) all segments of industry be brought up to i date with respect to pensions, insurance, severance pay, j vacations, holidays, etc.; (d) $2000 wage floor be set for ' average year’s work; (e) layoff plan be adopted providing ! for full pay for short periods of unemployment, half -pay : for prolonged layoffs — all to come out of company profits ■ (Vol. 7:16). * ♦ * ♦ Admiral is introducing 14-in. table model at $159.95, including excise tax, lowest price it has ever quoted. Purpose stated by sales v.p. Richard Graver: “To bring TV back within the buying power of the majority of American wage earners, whose ability to buy more ex- pensive models has been seriously handicapped by the high down payments and short repayment period imposed by Regulation W.” John Meek May 8 guaranteed prices against reduction until Sept. 15, and RCA distributor Krich-New Jersey this week went RCA’s guarantee to Aug. 1 (Vol. 7:18) one month better and extended it to Sept. 1. DuMont’s guarantee against price reductions, an- nounced this week in wake of RCA and GE guarantees (Vol. 7:18), is all-inclusive, reads thus: “. . . beginning May 9, 1951, and continuing until Sept. 10, 1951, [DuMont] guarantees distributors against any reduction in distribu- tor prices below the published price schedule of Nov. 1, 1950, on merchandise purchased by distributors during the period of guarantee. Under this guarantee, the distributor will receive a merchandise credit or cash covering reduc- tion of distributor prices, whether brought about by price control, rollback, or otherwise . . .” No new models will be offered before fall, DuMont also stated. New trade-in policy developed by Krich-New Jersey Inc., RCA distributor, which may be extended to other areas where there are lots of 10-in. receivers: Krich guar- antees to pay dealers $50 for any 10-in. sets they take as trade-ins against purchase of more expensive 1951 model with larger screen. If dealer wants to keep set for re- sale, RCA Service Co. will overhaul it for $8.95. RTMA tax committee has submitted study on effect of proposed excise tax increase to 25% to House Ways & Means Committee, supporting industry’s recent testimony (Vol. 7:5-13). Report prepared by Boni, Watkins, Moun- teer & Co., New York, shows that increase would “dras- tically affect industry sales,” particularly among lower income consumers; also that loss of revenue to Govt, from income and excess profits taxes would largely offset addi- tional revenue that might be obtained from higher excise. Meeting on trade practice rules will be held by RTMA in Washington June 21, preparatory to industry confer- ence with Federal Trade Commission which has called conference but set no date (Vol. 7:10). Proposals to be submitted to industry meeting first will be approved by RTMA board at June 4-7 Chicago meeting. He iN Hi RCA has started production of electrostatically- focused 17-in. tube sets, to be delivered later this month. Electrostatic picture tubes will be used in RCA’s 14 & 19-in. sets when current supply of magnetic-type tubes and focusing components is exhausted. No model change is involved. Majestic will begin production of electrostati- cally-focused set in 6-8 weeks, using new 21-in. all-glass rectangular tube to be produced by American Television Inc. (U. A. Sanabria) beginning June 1. Canadian RMA reports 5995 TVs sold by factories for $3,501,795 during March, with inventory of 2830 units as month ended. Table models under $400 list price totaled 338, over $400 totaled 1735. Consoles under $500 totaled $432, over $500 totaled 2985. TV-phonos numbered 465. Windsor area (Detroit) took 38% of March sales, Toronto- Hamilton took 39%. First 3 months of 1951 unit sales were 14,052, valued at $7,696,855. Cumulative TV sales to March 31 totaled 51,875 valued at $23,973,438, with 44% in Windsor area, 35% in Toronto-Hamilton, 16% in Niagara Peninsula, 5% other areas. Plant Expansions: Bendix Radio has leased 40-acre former Pimlico tract, Baltimore, has remodeled field’s 2 hangars, v/ill use space to train Air Force personnel in maintenance of electronic equipment . . . Radio Materials Corp. (ceramic condensers) building new one-story plant at 3311 N. California Ave., Chicago; it adds 15,000 sq. ft. to the 6500 already available in 1708 Belmont Ave. plant and 30,000 in Attica, Ind. . . . Canadian Westinghouse, which recently completed new plant at Three Rivers, Que., plans 2 new plants in Hamilton, Ont., for defense elec- tronics and other production. GE is shipping its 24-in. console to distributors, priced at $775 (Vol. 7:2). GE is also shipping 24-in. tube to dis- tributors. 10 - Trade Miscellany: “We Have the Most to Save, Let’s Save the Most,” was slogan that won $600 all-plant prize in RCA contest to promote savings of critical materials; winner, out of 17,000 entries, was Theodore Miley, opera- tor in engineering section of Lancaster tube plant . . . Custom TV market took about $10,000,000 worth of chassis in 1950, which means estimated 90,000 such units were bought and installed in fireplaces, bookcases, wall recesses, special cabinets, etc., according to John H. Cashman, Radio Craftsmen president . . . Arvin has new 12% -in. console at $199.95; it also recently put last year’s 8% -in. table model at $129.95 back into line (Vol. 7:15) . . . Second TV outlet projected in Sao Paulo, Brazil, is reported by IT&T, whose subsidiaries have orders for complete equipment, in- cluding Telecruiser remote pickup coach and microwave links; new company is Radio Televisao Paulista, S. A. . . . Some 3000 TVs are now in use in Rio de Janeiro and Sao Paulo, reports Philco International v.p. R. L. Romeyn, and another 5000 should be sold in those cities by end of 1951 . . . RCA Victor is first to announce summer vacation close- down period — July 7-16, same dates as many of its sup- pliers . . . Admiral consoles will be installed in all suites of both Ambassador East and Ambassador West Hotels in Chicago, beginning June 1; contract between hotel man- agement and Admiral was signed May 9 . . . Hotel Book- Cadillac, Detroit, has installed RCA “Antenaplex” system to permit TV reception in each of its rooms; installation was by Wells Television Inc. TV-radio workers averaged $57.53 per week in Febru- ary, reports Bureau of Labor Statistics. This compares with $57.55 in January, $56.96 in December. BLS also noted that TV-radio employes worked 40.4 hours in Febru- ary, 40.9 in January, 41.1 in December; earned hourly average wages of $1,424 in February, $1,407 in January, $1,386 in December. Average weekly earnings for all 1950 were $53.85, compared with $50.68 for 1949, average weekly hours were 40.7 vs. 39.5, hourly eaimings $1,323 vs. $1,283. BLS also reported industry employed 180,900 pro- duction workers in February, 179,900 in January, 190,300 in December — compared to average of 159,000 for all 1950. Admiral’s Ross Siragusa said May 12 his company is now producing 40,000 TVs a month, same as second 1950 quarter, adding that “sales have turned the distress cor- ner.” He said Admiral owes no money, contemplates no bank loans. Offering of 400,000 shares of Sylvania common, priced at 29%, was sold quickly this week when placed on market by Paine, Webber, Jackson & Curtis and about dozen asso- ciated underwriters. About two-thirds of proceeds will be used to increase working capital, remainder largely for new equipment. Trade Personals: Wm. C. Scales appointed gen. sales mgr., DuMont cathode ray div. . . . Milton R. Benjamin promoted to sales v.p.. Majestic . . . Harold W. Giesecke, ex-Westinghouse, appointed asst, to gen. mgr., Bendix Radio . . . George Axmacher has resigned as sales mgr.. Freed Radio . . . Edward J. Penberthy named sales mgr.. Radio Condenser Co.; David DeWitt named research v.p., Devereaux Martin asst, to president, Allan Easton mgr. of communications engineering. Radio Receptor Co. . . . Jo- seph B. Hersh named executive v.p., O. L. Cohen purchas- ing v.p., John A. Van .\uken, sales v.p.. Utility Electronics Corp. . . . N. J. Sims promoted to mgr. of distribution, F. T. Myles to mgr. of home instruments dept., RCA Vic- tor Ltd. of Canada . . . Rex AVilson, chief engineer, elected engineering v.p. of Tele-Vogue Inc., Chicago, inanufac- tuiing subsidiary of Muntz TV Inc.; iV. G. Henke, ex- Admiral, named coordinator of engineering. Financial & Trade Notes: Philco discloses govt, de- fense orders totaling about $100,000,000 for radar, elec- tronic and ordnance equipment, research and development programs, training projects — one of largest, if not largest, totals in electronics industry. Nearly 2000 Philco techni- cal representatives are on duty all over the world with Army, Navy and Air Force, working on electronic equip- ment, president Wm. Balderston stated in announcing first quarter report. Philco sales first 3 months of 1951 were $113,524,000, new record for any quarter in its history, comparing with $79,487,000 same quarter last year. Net income after taxes was $4,354,000 or, after preferred dividends, $1.21 per share on 3,525,372 shares of common outstanding. In same period last year, profit was $4,074,000 ($1.13). In- creased taxes brought Federal tax bill for quarter to $9,- 542,000 vs. $3,358,000 same quarter 1950, up 184%. “We are now going through a period of balancing pro- duction with sales, which may last for another few weeks,” said Mr. Balderston. “The country has demonstrated that it can maintain a high level of civilian output at the same time it is building up its defenses, and this means that Philco production and sales for 1951 promise to be con- siderably greater than appeared likely in January.” $ ^ Among officers’ and directors’ stock transactions re- ported by SEC for March: Lynn C. Park gave 1000 Admiral as gift, holds 24,820; Joseph B. Hall bought 200 Avco, holds 400; Herbert W. Clough bought 100 Belden Mfg., holds 600; Arthur L. AVanner bought 50 Belden Mfg., holds 1850; AA'illiam C. Decker bought 3000 Corning Glass, holds 7296; Charles D. LaFolIette bought 2000 Corning Glass, holds 5200; Allen B. DuMont gave 100 DuMont as gift, holds 56,400; Anthony R. Kirsch bought 50 Indiana Steel (Feb.), holds 50; Percy L. Schoenen sold 1900 Olympic (Sept. 1950), holds 22,600; Courtnay H. Pitt sold 200 Philco, holds 1270; AAllliam Gammel Jr. gave 100 Raytheon as gift, holds 17,170; Robert H. Bishop sold 400 Sylvania, holds 659; Arthur L. Chapman bought 38 Sylvania, holds 58; Curtis A. Haines bought 43 Sylvania, holds 143; John S. Learoyd bought 37 Sylvania (Feb.), holds 587; Don G. Mitchell bought 174 Sylvania, holds 3174; Donald Mac- Gregor sold 100 Zenith, holds 150. Oak Mfg. Co. transactions reported by SEC: Common — AVilliam Bessey bought 800, inherited 7418, holds 12,229; John A. Rovelstad bought 300, holds 2556; Elof Sandstrom bought 800, holds 5512. Warrants for common — Peter B. Atw'ood sold 2000, holds 1500; William Bessey sold 800, Robert A. O’Reilly sold 1800, John A. Rovelstad sold 1000, Elof Sandstrom sold 1500, Irwin N. AValker sold 1470, no longer hold any warrants. * * * * Hoffman Radio, due to sharp declines in TV sales in March, showed first quarter sales of $5,771,607 as against $6,240,660 for same 1950 period. Net dropped to $107,876 (18 DuBois and Pittsburgh, Pa.; Lexington, Ky.; Windsor, Ont., (Spearman & Roberson and Loucks, Zias, Young & Jansky and Caldwell-Rollo and Pierson & Ball). Empire Coll Co., Cleveland (WXEL) — Favors FCC proposal to shift WXEL from Channel 9 to 8. (Morton H. Wilner). National Broadcasting Co., Cleveland (WTAM & WNBK) — Favors FCC proposal to move WNBK from Channel 4 to 3. (Gustav B. Margraf, v.p. and general attorney). j United Broadcasting Co., Cleveland (WHK) — See Cleveland Broad- casting Co. ! WGAR Broadcasting Co., Cleveland (WGAR) — See Cleveland Broadcasting Co. i WJW IMC., Cleveland (WJW) — See Cleveland Broadcasting Co. Ohio State U, Columbus (WOSU) — Requests Channel 12 be classi- fied for educational use in Columbus, moving 13 from Indian- apolis’ and Huntington to Cincinnati, 12 from Cincinnati to Columbus, deleting Channel 12 in Clarksburg. (H. L. Bevis, president). I Miami Valley Broadcasting Corp., Dayton (WHIG & WHIO-TV) — I Favors FCC proposal to shift WHIO-TV from Channel 13 to 7. I (Dow, Lohnes & Albertson). I WSTV Inc., Steubenville (WSTV) — Requests assignment of Chan- nel 7 or 9 to Steubenville from Wheeling. (Caldwell-Rollo). Community Broadcasting Co., Toledo (WTOL) — Favors FCC pro- posals for Toledo. (Pierson & Ball). Maumee Valley Broadcasting Co., Toledo — Favors FCC proposals for Toledo. (Roberts & Mclnnis). Warren Tribune Radio Station Inc., Warren (WHHH)— Favors FCC proposal for Warren. (Miller & Sclnoeder). Wooster Republican Printing Co., Wooster (WWST) — Requests as- signment of Channel 55 to Wooster from Akron. (Pierson & Ball). I Vindicator Printing Co., Youngstown — Requests assignment of uhf flexibility channel to Youngstown. (Fisher, Wayland, Duvall & Southmayd). Southeastern Ohio Broadcasting System Inc., Zanesville (WHIZ) — Requests assignment of Channel 12 to Zanesville from Clarks- burg, W. Va., substituting 11 for 12 in Cincinnati, 12 for 11 In Louisville, 65 in Clarksburg. (Dow, Lohnes & Albertson). OKLAHOMA KTOK Inc., Oklahoma City (KTOK) — Requests assignment of Channel 11 to Oklahoma City from Lawton, 12 to Lawton from Elk City, 8 to Elk City from Woodward, 6 to Woodward from Dodge City, Kan., 4 to Dodge City. (Dow, Lohnes & Albertson). WKY Radiophone Co., Oklahoma City (WKY & WKY-TV) — Re- quests that WKY-TV remain on Channel 4 instead of switching to Channel 7 as proposed by FCC, suggesting following vhf allo- cation in lieu of FCC proposal: Oklahoma City, 4, 7 «Sj 13; Tulsa, 2, 6 & 9; Muskogee, 11. (Pierson & Ball). All Oklahoma Broadcasting Co., Tulsa — Requests assignment of Channel 8 to Tulsa from Muskogee, 11 to Muskogee. (Dempsey & Koplovitz). Southwestern Sales Corp., Tulsa (KVOO) — Requests assignment of Channel 11 to Tulsa from Lawton, 12 to Lawton from Elk City, 11 to Elk City. (Dow, Lohnes & Albertson). OREGON Central Willamette Broadcasting Co., Albany (KWIL) — Requests assignment of Channel 12 to Albany, substituting 5 for 3 in Salem, 3 for 12 in Portland. (Fisher, Wayland, Duvall & South- mayd). KUGN Inc., Eugene (KUGN) — Requests assignment of Channel 11 to Eugene. (C. H. Fisher, president). Lane Broadcasting Co., Eugene (KORE) — Requests assignment of Channel 4 or 5 to Eugene from Medford, 20 or 26 to Medford from Eugene. (John C. Kendall, Portland, Ore.) KOIN Inc., Portland (KOIN) — Favors FCC proposals for Portland. (Dow, Lohnes & Albertson). PENNSYLVANIA Lehigh Valley Television Inc., Allentown — Contends that (a) FCC plan is contrary to Secs. 303(d), 303(r), 307(b) and 309(a) of Communications Act, (b) vhf and uhf channels should be dis- tributed independently of each other, (c) vhf-uhf intermixture is contrary to public interest, (d) all commercial TV should be assigned in uhf (Arthur W. Scharfeld). Gable Broadcasting Co., Altoona (WFBG) — Requests assignment of Channel 3 to Altoona, requiring exemption from minimum city-to-city separation (Philadelphia). (George O. Sutton). WBVP Inc., Beaver Falls (WBVP) — Requests assignment of Chan- nel 16 to Beaver Falls. (Segal, Smith & Hennessey). Matta Broadcasting Co., Braddock (WLOA) — Requests assignment of Channel 4 to Braddock requiring modification of city-to-city mileage separation (Columbus, O.). (Spearman & Roberson). Easton Publishing Co., Easton (WEEX-FM) — Question legality of FCC proposals to freeze allocations for one year and refusal to accept application for channel not specified in allocation table. (Hanson, Lovett & Dale). Erie Television Corp., Erie (WIKK and Erie Times)— Requests as- signment of Channel 64 to Erie from Oil City; substituting 62 for 64 in Oil City. (Haley, McKenna & Wilkinson). Presque Isle Broadcasting Co., Erie (WERC) — Objects to vhf-uhf intermixture, requests all commercial TV be assigned in uhf. Alternatively, requests that either (a) Channel 12 be reserved for educational assignment and that Channels 35 and 41 both be assigned lor commercial use or (b) Channel 58 from James- town, N. Y., or 66 be assigned to Erie. (Arthur W. Scharfeld). Patriot-News Co., Harrisburg— Requests assignment of uhf flex- ibility channel to Harrisburg. (Fisher, Wayland, Duvall & Southmayd). W'JAC Inc., Johnstown (WJAC & WJAC-TV) — Favors FCC pro- posal to shift WJAC-TV from Channel 13 to 6. (Dow, Lohnes & Albertson) . Peoples Broadcasting Co., Lancaster (WLAN)— Requests compara- tive hearing with WGAL-TV for Channel 8. (Stephen Tuhy, Jr.). WGAL Inc., Lancaster (WGAL & WGAL-TV) — Favors FCC pro- posals for Lancaster. (George O. Sutton). Lock Haven Broadcasting Corp., Lock Haven (WBPZ)— Requests as- signment of Channel 32 to Lock Haven. (A. H. Lipez). Tri-City Broadcasting Co., McKeesport (WEDO)— Requests Chan- nel 13 be moved from Pittsburgh to McKeesport, classified for commercial use. (Fisher, Wayland, Duvall & Southmayd). Chamber of Commerce, Philadelphia— Requests assignment of Channel 12 to Philadelphia: 8 in Wilmington in lieu of 7- use of directional antennas. See also Daily News Television Co (J. Harry Le Brum, general counsel). City of Philadelphia— Requests assignment of Channel 12 to Phila- delphia, 7 to Wilmington, or assignment of uhf channel to Wilmington in lieu of 7 and use of directional antennas. (Frank F. Truscott, city solicitor). Daily News Television Co., Philadelphia (WIBG-Philadelphia Daily News) — Requests assignment of Channel 12 to Philadelphia in lieu of 44; retention of 7 in Wilmington, Del. (WDEL-TV) in lieu of proposed change to 12; that transmitter for 12 in Phila- delphia be sited south of city to avoid interference with 12 in Binghamton, N. Y. (WNBF-TV). Or. 12 be assigned to Phila- delphia and uhf channels be allocated to Wilmington or Bing- hamton or both. (Roberts & Mclnnis). Pennsylvania Broadcasting Co., Philadelphia (WIP)— Requests as- signment of Channel 12 to Philadelphia, 4 to Lancaster in lieu of 8, 8 to Wilmington in lieu of 7. Requests amendment to allocations providing that in cases where existing stations vio- late minimum separation requirements proposals lor power in- creases be considered on individual basis. (Dow, Lohnes & Albertson). 0 PENNSYLVANIA (Continued) Allegheny Broadcasting Corp., Pittsburgh (KQV) — Requests as- signment of Channel 4 to Pittsburgh or 9 from Wheeling and reclassification of 13 for commercial use. (George O. Sutton). Pittsburgh Radio Supply House Inc., Pittsburgh (WJAS) — Requests that Channels 4 and 9 be allocated to Pittsburgh, substituting Channel 16 for 9 In Wheeling. (Bingham, Collins, Porter & Kistler). WCAE Inc., Pittsburgh (WCAE) — Requests assignment of Channel 9 to Pittsburgh, affecting following cities: Wheeling, W. Va., Washington, Pa., Bellfontaine, Hamllton-Middletown, O., Mun- cie, Anderson, Ind. (Dempsey & Koplovitz). Westinghouse Radio Stations Inc., Pittsburgh (KDKA) — Requests assignment of Channel 4 & 9 to Pittsburgh; 9 from Wheeling, W. Va. (John Steen). WWSW Inc., Pittsburgh (WWSVV') — Requests assignment of Chan- nel 4 to Pittsburgh; questions legality of reservation of Channel 13 for educational purposes. (Segal, Smith & Hennessey). Eastern Radio Corp., Reading (WHUM) — Requests assignment of Channel 15 to Reading from Lebanon, 55 to Lebanon from Read- ing. (Arnold, Fortas & Porter). .Appalachian Co., Scranton — Favors FCC proposals for Scranton- Wllkes-Barre. (Krleger & Jorgensen). Scranton Times, Scranton (WQAN) — Requests assignment of uhf flexibility channels to Scranton. (Fisher, Wayland, Duvall & Southmayd). Washington Broadcasting Co., Washington (WJPA) — Requests in- terchange of Channels 9 and 63 between Washington and Wheel- ing. (Cohn & Marks). RHODE ISLAND Cherry & Webb Broadcasting Co., Providence (WPRO) — Favors FCC proposals for Providence. (Dow, Lohnes & Albertson). Outlet Co., Providence (VVJAR & WJAR-TV) — Favors FCC pro- posal to shift WJAR-TV from Channel 11 to 10. (Dow, Lohnes & Albertson). SOUTH CAROLINA Clemson Agricultural College, Clemson — Requests that uhf flexi- bility channels be made available for educational use. (R. F. Poole, president). Greenville News-Piedmont Co., Greenville (WFBC) — Favors FCC proposals for Greenville. (Dow, Lohnes & Albertson). Spartan Radiocasting Co., Spartanburg (WORD) — Requests assign- ment of Channel 7 to Spartanburg, affecting vhf channels in following cities: Middlesboro, Ky.; Knoxville, Chattanooga, Tenn.; Rome, Ga.; University, Ala.; State College, Miss.; Colum- bia, S. C. (Spearman & Roberson). SOUTH DAKOTA Midcontinent Broadcasting Co., Sioux Falls (RELO) — Favors FCC proposal for Sioux Falls. TENNESSEE WOPI Inc., Bristol (WOPI) — Favors FCC proposals for Bristol. (W. A. Wilson, president & general mgr.). WHUB Inc., Cookeville (WHUB) — Requests assignment of Channel 5 to Cookeville, requiring exception to minimum city-to-city separation (Atlanta). (Dow, Lohnes & Albertson). Kingsport Broadcasting Co. Inc., Kingsport (WKPT) — Requests as- signment of Channel 2 to Kingsport. Requests transmitter spacing be sole separation criterion, operation with reduced power. (Fisher, Wayland, Duvall & Southmayd). WMPS Inc., Memphis (WMPS) — See WREC Broadcasting Service. (Dow, Lohnes & Albertson). WREC Broadcasting Service, Memphis (WREC) — Requests assign- ment of Channel 3 to Memphis from Blytheville; or assign 4, 7, 9, 11, 42, 48 to Memphis in lieu of 5, 10, 13, 42, 48, affecting fol- lowing cities: Little Rock, Blytheville, Fort Smith, Pine Bluff, Hot Springs, El Dorado, Jonesboro, Ark.; Monroe, Shreveport, Alexandria, La.; Jackson, Tenn.; Tyler, Tex.; State College, Miss. (Spearman & Roberson). Capitol Broadcasting Co., Nashville (WKDA) — Requests assign- ment of Channel 5 to Nashville; questions legality of FCC pro- posals to freeze allocations for one year and refusal to accept application for channel not specified in allocation table; ques- tions legality of reservation of educational channels. (Segal, Smith & Hennessey). City of Nashville — Requests that Channel 2 be assigned to com- mercial use. (Supported by similar statements from David Lipscomb College, George Peabody College for Teachers, Fisk University, Scarritt College for Christian Workers. (Thomas I. Cummings, mayor). W'LAC Broadcasting Service (WLAC) and WSIX Broadcasting Sta- tion (WSIX), Nashville — Requests assignment of Channel 5 to Nashville and reclassification of 2 to commercial use. Cites local city and school authorities in behalf of latter. (Spearman & Roberson). WSIX Broadcasting Station, Nashville (WSIX) — See WLAC Broad- casting Service. TEXAS Beaumont Broadcasting Co., Beaumont (KFDJI) — Favors FCC pro- po.sals for Beaumont-Port Arthur. (Segal, Smith & Hennessey). Stephens County Broadcasting Co., Breckenridge (KSTB) — Re- quests assignment of Channel 7 to Breckenridge. (P. W. Seward). A. H. Belo Corp., Dallas (WFAA & WF.AA-TV)— Favors FCC pro- posals for Dallas. (Loucks, Zlas, Young & Jansky). A. Earl Cullum Jr., Dallas— Objects to FCC failure to allocate ad- ditional channels in 72-78 me. range, restriction on power in upper vhf and uhf channels, limitations on antenna height, re- strictions on directional antennas. (Dempsey & Koplovitz). Harbenito Broadcasting Co. Inc., Harlingen (KGBS) — Requests as- signment of Channel 4 to Harlingen from Brownsville, 36 to Brownsville. (Loucks, Zias, Young & Jansky). Houston Post Co., Houston (KPRC & KPRC-TV)— Requests greater co-channel mileage separation in Gulf area, viz: 240 ml. on Channels 2-6, 200 mi. on Channels 7-13. (Frank W. Wozeu- craft). KTRH Broadcasting Co. (KTRH) and Shamrock Broadcasting Co. (KXYZ), Houston — Request assignment of Channels 5 & 10 to Houston, substituting 12 for 4 in Beaumont-Port Arthur, 4 for 11 In Galveston; 27 to Fredericksburg, and 43 to Karnes City. (Dow, Lohnes & Albertson and Haley, McKenna & Wilkinson). Shamrock Broadcasting Co., Houston (KXYZ)— See KTRH Broad- casting Co. South Texas Television Co., Houston — Requests assignment of Channel 5 & 10 to Houston affecting Galveston and Port Arthur; requests Channel 8 be reclassified lor commercial use. (Segal. Smith & Hennessey). lovgoi. East Texas Television Co., Longview — Requests assignment of Channel 9 to Longview from Lufkin, Tex., substitute therefore 10. (Johnson, Bohannon, Prescott & Abney). Voice of Longview, Longview (KFRO)— Requests assignment of Channel 12 to Longview, substituting 5 for 10 In El Dorado, Ark., 10 for 12 in Shreveport, La. (Frank Stollenwerck). Plains Radio Broadcasting Co., Lubbock (KFYO)— Requests as- signment of Channel 5 to Lubbock from AmariUo; 9 for 5 In Monahans. (Dow, Lohnes & Albertson). McAllen Television Co., McAllen — Requests assignment of Chan- nel 5 to McAllen from Brownsville. 12 for 5 In Brownsville. (Johnson, Bohannon, Prescott & Abney). Trinity Broadcasting Corp., Oak Cliff (KLIF)— Requests assign- ment of Channels 7 & 9 to Dallas In lieu of 8, affecting follow- ing cities: Tyler, Lufkin, Ft. Worth, Waco, Tex.; Lawton, Okla. Also contends transmitter-to-transmltter separation should be ruling criterion. (Cohn & Marks). Red River Valley Broadcasting Corp., Sherman (KRRV) — Requests assignment of Channels 10 & 17 to Sherman-Denlson affecting Fort Worth, Denton, Weatherford, Waxahachie & l^lsboro, Tex. (Fisher, Wayland, Duvall & Southmayd). Sherman Television Co., Sherman — Requests assignment of Chan- nel 12 to Sherman. (Johnson, Bohannon, Prescott & Abney). Bell Broadcasting Co., Temple (KTEM) — Requests assignment of Channel 6 to Temple. (Fisher, Wayland, Duvall & Southmayd). Lack’s Stores Inc., Victoria — Requests assignment of Channel 12 to Victoria from San Antonio. (Cohn & Marks). KWTX Broadcasting Co., Waco (KWTX) — Favors FCC proposals for Waco. (M. N. Bostwick, mgr.). Taylor Radio & Television Corp., Weslaco (KRGV) — Requests chan- nels 4 & 5 be assigned to Weslaco-Harlingen area instead of Brownsville, 2 be assigned to Saltillo, Coahuila, Mexico and Weslaco, Tex., instead of Monterey, Nuevo Leon, Mexico. (Dow, Lohnes & Albertson). Rowley-Brown Broadcasting Co., Wichita Falls (KWFT) — Favors FCC proposals for Wichita Falls. (Dow, Lohnes & Albertson). UTAH Eastern Utah Broadcasting Co., Price (KOAL) — Requests assign- ment of Channel 6 to Price in lieu of 11, affecting following cities: Provo, Ogden, Logan, Tooele, St. George, Utah; Montrose, Colo. (Fletcher & Midlen). Salt Lake City Broadcasting Co., Salt Lake City (K.YLL) — Requests assignment of Channel 2 to Salt Lake City, substituting 9 for 12 in Ogden, 11 for 9 in Provo, 12 for 2 in Logan, 3 for 11 in Price. (Haley, McKenna & Wilkinson). Oquirrh Radio & Television Co., Tooele, Utah — ^Requests that Channel 2 be moved from Logan to Tooele, 12 from Ogden to Logan, 9 from Provo to Ogden, 11 from Price to Provo, 6 be allocated to Price and 39 allocated to Montpelier, Ida. (Pierson & Ball). Uintah Broadcasting Co., Vernal, Utah (KJAM) — Requests assign- ment of Channel 8 to Vernal. (Paul L. Badger). VIRGINIA Appalachian Broadcasting Corp., Bristol (WCY'B) — Requests as- signment for Bristol, Tenn., be made for Bristol, Va., also, on grounds that both cities are single market. (Fly, Shuebruk & Blume). Radio Station WCHV (WCHV), City of Charlottesville and Cham- ber of Commerce, Charlottesville — Requests assignment of Chan- nel 8 to Charlottesville from Petersburg; requests reclassification of single uhf for commercial use. (Thomas J. Michle and Wil- liam C. Battle, Charlottesville). Piedmont Broadcasting Corp., Danville (WBTM) — Favors FCC pro- posal for Danville, also supports any possible vhf assignments. (Fletcher & Midlen). Shenandoah Valley Broadcasting Corp., Harrisonburg (WSVLA) — Requests that (a) Channel 12 be allocated to Harrisonburg, af- fecting these cities: Zanesville, Clarksburg, Cincinnati and Louisville, or (b) 3 be allocated to Harrisonburg, affecting these cities: Norfolk, Richmond, Huntington and Charleston. (Bing- ham, Collins, Porter & Kistler). Lj-nchburg Broadcasting Co., Lynchburg (WLV.A) — Requests that adjacent-channel ratio be changed from 0 db to — 6 db. (George O. Sutton). Old Dominion Broadcasting Corp., Lynchburg (WWOD) — Requests assignment of additional vhf channels to Lynchburg. (F’lsher, tVayland, Duvall & Southmayd). Hampton Roads Broadcasting Corp., Newport News (WGH) — Re- quests assignment of Channel 12 to Newport News from Nor- folk-Portsmouth, 2 to Norfolk-Portsmouth, waiver of minimum city-to-city separation requirements (Baltimore). As alterna- tive to waiver, requests change in engineering standards to specify interference be held to value contemplated by 170-mile transmitter-to-transinitter rule through site selection or reduc- tion in power. (Spearman & Roberson). WTAR Radio Corp. Norfolk (WT.VR & WTAR-TV)— Objects to FCC proposal to shift from Channel 4 to 10, suggests assignment of 3 to Norfolk from Richmond and No. 12 from Norfolk to Rich- mond, requiring W'lAR-TV to shut from 4 to 3, or add 2 to Norfolk and requiring WTAR-TV to shift from 4 to 2. (Hanson, Lovett & Dale). , 6 VIRGINIA (Continued) Havens & Martin Inc., Richmond (WMBG & WTVR) — Requests continued assignment of Channel 6 to WTVR. (Fletcher & Midlen). Larus & Brother Co. Inc., Richmond (WRVA)— Requests assign- ment of Channel 8 to Richmond from Petersburg, 59 to Peters- burg. (Fisher, Wayland, Duvall & Southmayd). Radio Virginia Inc., Richmond (WXGI)— Opposes channel reserva- tions, withholding of flexibility channel assignments, vhf power increase, omission of use of directional antennas on vhf. Be- quests delay in all station construction until allocations are final, share-time arrangements where facilities are limited, re- quirement of equal time allotments to networks in localities with two channels, return of all applications now on file and setting of new filing date. (D. H. Robertson, president). Richmond Newspapers Inc., Richmond (WRNL)— Requests assign- ment of Channel 8 to Richmond from Petersburg, 59 for 8 to Petersburg. (Spearman & Roberson). WASHINGTON KVOS Inc., Bellingham (KVOS)— Requests assignment of Channel 12 to Bellingham from Chilliwack, Canada; substituting 3 for 12 in Chilliwack. (Haley, McKenna & Wilkinson). Central Washington Broadcasters Inc., Ellensburg (KXLE)— Favors FCC proposals for Ellensburg. (Roberts & Mclnnls). Twin City Broadcasting Corp., Longview (KWLK)— Requests as- signment of Channel 2 to Longview using offset carrier and lo- cating transmitter as far south of city as possible to prevent interference with Channel 2 in Victoria, B. C.; or assign Channel 2 to Vancouver from Victoria and assign 6, 8 or 10 to Victoria from Vancouver in lieu of 2. (John W. Kendall). Tom Olsen, Olympia (KGY)— Requests assignment of Channel 11 to Olympia from Tacoma. (Haley, McKenna & Wilkinson). Fisher’s Blend Station Inc. (KOMO) and Totel Broadcasters Inc. (KJR), Seattle — Requests assignment of Channel 2 to Seattle, replacing 2 in Victoria, B. C. with 3. (Fisher, Wayland, Duvall & Southmayd and Dow, Lohnes & Albertson). Queen City Broadcasting Co., Seattle (KIRO)— Approves KOMO comment regarding assignment of Channel 2 to Seattle — pro- vided does not require deletion of 4 from Seattle. (Arnold, Fortas & Porter). Totel Broadcasters Inc., Seattle (KJR) — See Fisher’s Blend Station Inc. WEST VIRGINIA Joe L. Smith Jr. Inc., Beckley (WJLS)— Requests assignment of Channel 6 to Beckley. (Pierson & Ball). WSAZ Inc., Huntington (WSAZ & WSAZ-TV)— Requests assign- ment of Channel 3 to Huntington in lieu of 8, substituting 8 for 3 in Charleston, adding 4 to Beckley. Interchanging 4 and 5 in Raleigh and Chapel Hill, N. C. (Cohn & Marks). Daily Telegraph Printing Co., Princeton (WHIS Bluefield) — Re- quests assignment of Channel 6 to Princeton. (Dow, Lohnes & Albertson). Fort Industry Co., Wheeling (WWVA) — Requests amendment of engineering standards to Indicate smaller coverage of uhf sta- tions in rough terrain. Favors FCC proposals for Wheeling. (Dow, Lohnes & Albertson). Williamson Broadcasting Corp., Williamson (WBTH) — Favors FCC proposal for Williamson. (Fletcher & Midlen). WISCONSIN Green Bay Newspaper Co., Green Bay (WJPG) — Requests assign- ment of Channel 2 to Green Bay. (Roberts & Mclnnls). Badger Broadcasting Co., Madison (WIBA) — Favors FCC proposals for Madison. (Dow, Lohnes & Albertson). Radio Wisconsin Inc., Madison (WISC) — Opposes vhf-uhf Inter- mixture, requests that Channels 21, 27 & 33 be assigned to com- mercial use, that 3 be reserved for educational use, contends that all commercial TV should be assigned in uhf. (Arthur W. Scharfeld). U of Wisconsin and State Radio Council, Madison (WHA) — Re- quests that 5 additional channels be reserved for educational stations in Wisconsin. (E. B. Fred, president). M & M Broadcasting Co., Marinette (WMAM) — Favors FCC pro- posals for Marinette. (Fisher, Wayland, Duvall & Southmayd). Hearst Radio Inc., Milwaukee (WISN) — See Wisconsin Broadcast- ing System. Milwaukee Broadcasting Co., Milwaukee (WEMP) — Requests that Channel 6 be allocated to Milwaukee from Green Bay, 2 to Green Bay. (Bingham. Collins, Porter & Kistler). Wisconsin Broadcasting System (WFOX) and Hearst Radio Inc. (WISN), Milwaukee — Requests assignment of Channel 6 to Mil- waukee from Green Bay; 2 to Green Bay; also, reservation of uhf channel for education in lieu of 10. (Dempsey & Koplovltz). Alvin E. O’Konski, Wausau (WLIN, Merrill) — Favors FCC proposal for Wausau. (Fletcher & Midlen). WYOMING Warren M. Mallory, Laramie — Requests change in reservation for educational use from Channel 8 to 18; or, assign 3 or 5 to Laramie. HAWAII Pacific Frontier Broadcasting Co., Honolulu (KULA) — Requests as- signment of Channels 7, 9. 11 or 13 be reserved for educational station Instead of 2. (Haley, McKenna & Wilkinson), EDUCATIONAL INSTITUTIONS FAVORING RESERVATION PLAN Following institutions filed comments endorsing jdan in general terms. If comments object to plan or propose changes in specific channels, they are reported along with all other comments in main body of this supplement. All comments are being revie%ved by FCC and some may be classified as correspondence rather than comments. Educational institutions commenting are listed alphabetically by States and by cities within states. Mobile Public Schools, Mobile, Ala. ' University of Alabama, University, Ala. Phoenix College, Phoenix, Ariz. University of Arizona, Tucson, Ariz. University of Arkansas, Fayetteville, Ark. University of California, Berkeley, Cal. Fresno City Unified School District, Fresno, Cal. I Chapman College, Los Angeles, Cal. College of Medical Evangelists, Los Angeles, Cal. Los Angeles State College of Applied Arts & Sciences, Los Angeles City College, Los Angeles, Cal. ; ' Mount St. Mary’s College, Los Angeles, Cal. Occidental College. Los Angeles, Cal. i Sacramento City Unified School District, Sacramento, Cal. • ' San Bernardino City Schools, San Bernardino, Cal. • ! San Bernardino Valley College, San Bernardino, Cal. 1 San Diego Unified School District, San Diego, Cal. San Jose State College, San Jose, Cal. I University of Santa Clara, San Jose, Cal. ' Cogswell Polytechnical College, San Francisco, Cal. University of Colorado, Boulder, Colo. Pueblo Junior College, Pueblo, Colo. . Pueblo Public Schools, Pueblo, Colo. • ' University of Connecticut, Storrs, Conn. e I American University, Washington, D. C. . ; Archdiocese of Washington, Washington, D. C. 1 George Washington University, Washington, D. C. ■ Howard University, Washington, D. C. t j Duval County Board of Public Instruction, Jacksonville, Fla. Dade County Board of Public Instruction, Miami, Fla. I Palm Beach County Board of Public Instruction. Palm Beach, Fla. s I Florida State University, Tallahassee, Fla. University of Georgia, Athens, Ga. Atlanta Public School System, Atlanta, Ga. Wesleyan College, Macon, Ga. j 1 University of Idaho, Moscow, Ida. Chicago Public Schools, Chicago, 111. ’ I Columbia College, Chicago, 111. • George Williams College, Chicago, 111. ■ I Illinois Institute of Technology, Chicago, 111. ‘ University of Chicago, Chicago Board of Education, Illinois Insti- tute of Technology, Chicago, 111, ■( Biadley University, Peoria, 111. Rockford College, Rockford, 111. j Rockford Public Schools, Rockford, 111. Springfield Board of Education, Springfield, 111. Springfield Junior College, Springfield, 111. University of Illinois, Urbana, 111. Urbana School District No. 116, Urbana, 111. Indiana University, Bloomington, Ind. Indiana Central College, Indianapolis, Ind. Purdue University, Lafayette, Ind. University of Notre Dame, South Bend, Ind. Indiana State Teachers College, Terre Haute, Ind. Mount Mercy College. Cedar Rapids, la. Cedar Rapids Public Schools, Cedar Rapids, la. Des Moines Board of Education, Des Moines, la. Des Moines City Council, Des Moines, la. Des Moines Council of Parent Teacher Associations, Des Moines, la. Des Moines Independent School District, Des Moines, la. Des Moines Public Schools, Adult Education, Des Moines, la. Drake University, Des Moines, la. State University of Iowa, Iowa City, la. Lav/rence Public Schools, Lawrence, Kans. University of Kansas, Lawrence, Kans. Kansas State College, Manhattan, Kans. Washburn Municipal University, Topeka, Kans. Louisville Free Public Library, Louisville, Ky. Louisville Presbyterian Seminary, Louisville, Ky. Nazareth College, Louisville, Ky. Southern Baptist Theological Seminary, Louisville, Ky. Louisiana State University, Baton Rouge, La. Xavier University of Louisiana, New Orleans, La. University of Maine, Orono, Me. Goucher College, Baltimore, Md. Boston University, Boston. Mass. Emerson College, Boston, Mass. Franklin Technical Institute, Boston, Mass. University of Michigan, Ann Arbor, Mich. Mercy College, Detroit, Mich. University of Detroit, Detroit, Mich. Flint City School District, Flint, Mich. Grand Rapids Public Schools, Grand Rapids, Mich. Sault Ste. Marie Public Schools, Sault Ste. Marie, Mich. Minneapolis Public Schools, Minneapolis, Minn. University of Minnesota, Minneapolis, Minn. College of St. Catherine, St. Paul, Minn. Concordia College, St. Paul, Minn. Mississippi State College, State College, Miss. University of Mississippi, University, Miss. Rockhurst College, Kansas City, Mo. St. Joseph School District. St. Joseph, Mo. St. Louis Public School System, St. Louis, Mo. Springfield Public Schools, Springfield, Mo. 7 I Billings and Laurel public schools, colleges and civic organizations, Billings, Mont. City Council. Billings. Mont. Montana State College. Bozeman. Mont. Great Falls Public Schools, Great Falls, Mont. Montana State University. Missoula, Mont. Creighton University, Omaha, Neb. Omaha School District, Omaha, Neb. Reno School District No. 10, Reno. Nev. Reno United Parents-Teacher Assn., Reno. Nev. University of Nevada, Reno, Nev. University of New Hampshire, Durham, N. H. Albuquerque Board of Education, Albuquerque, N. M. University of New Mexico, Albuquerque, N. M. St. Michael’s College, Santa Fe, N. M. Buffalo Board of Education, University of Buffalo, Canisius Col- lege, Buffalo, N. Y. Buffalo Public Schools, Buffalo, N. Y. D’Youville College, Buffalo, N. Y. New York State College for Teachers, Buffalo, N. Y. Barnard College of Columbia University, New York, N. Y. Child Education Foundation. New York, N. Y. City College of the College of the City of New York, New York, N. Y. Fordham University. New York, N. Y. New School for Social Research, New York, N. Y. New York City Board of Education, New York, N. Y. New York University, New York. N. Y. Rochester Board of Education, Rochester, N. Y. Rochester Institute of Technology, Rochester, N. Y. University of Rochester, Rochester, N. Y. Le Moyne College, Syracuse. N. Y. Syracuse University, Syracuse, N. Y. Consolidated University of North Carolina, Chapel Hill, Raleigh and Greensboro, N. C. Durham City Schools, Durham, N. C. Board of Trustees, Greensboro Administrative School Unit, Greens- boro, N. C. Raleigh Public Schools, Raleigh, N. C. Winston-Salem Teachers College, Winston-Salem, N. C. University of North Dakota, Grand Forks, N. D. Akron Board of Education, Akron, O. University of Akron, Akron, O. Cincinnati City Council and 21 public and private institutions, including schools, colleges, civic organizations. Cincinnati, O. Cincinnati Public School System, Cincinnati, O. Cleveland Public Schools, Cleveland, O. Ursuline College for Women, Cleveland, O. Capital University, Columbus, O. Columbus Public Schools, Columbus, O. University of Dayton, Dayton. O. Kent State University, Kent, O. Miami University, Oxford, O. Toledo Public Schools, Toledo, O. University of Toledo, Toledo, O. University of Oklahoma, Norman. Okla. Oregon State College, Corvallis, Ore. Eugene Public Schools, School District No. 4, Eugene. Ore. Portland Public School System, Portland, Ore. University of Portland, Portland, Ore. St. John Kanty Prep, Erie, Pa. Franklin Institute, Philadelphia, Pa. Duquesne University, Pittsburgh. Pa. Mount Mercy College, Pittsburgh. Pa. Pittsburgh Board of Public Education. Pittsburgh, Pa. University of Pittsburgh, Pittsburgh, Pa. Pennsylvania State College, State College, Pa. Providence Bible Institute. Providence, R. I. Providence College, Providence, R. I. Rhode Island College of Education, Providence, R. I. Rhode Island State Dept, of Education, for 11 institutions. Provi- dence. R. I. Superintendent of Schools, Providence, R. I. Furman University, Greenville, S. C. Greenville City Schools, Greenville, S. C. Pierre Public Schools, Pierre, S. D. Augustana College, Sioux Falls. S. D. University of South Dakota, Vermillion, S. D. Chattanooga Public School System. Chattanooga, Tenn. Knoxville City School System, Knoxville, Tenn. University of Tennessee, Knoxville, Tenn. Southwestern at Memphis, Memphis. Tenn. Vanderbilt University, Nashville, Tenn. Amarillo Public Schools, City Commission, Amarillo College, West Texas State College, Amarillo, Tex. University of Texas, Austin, Tex. A & M College of Texas, College Station, Tex. North Texas State College, Denton, Tex. El Paso Independent School District, El Paso, Tex. Texas Western College, El Paso, Tex. Galveston Independent School District. Galveston. Tex. University of Houston, Houston, Tex. Our Lady of the Lake College, San Antonio, Tex. St. Mary’s University. San Antonio, Tex. Trinity University, San Antonio, Tex. Texarkana Public Schools, Texarkana, Tex. Baylor University, Waco, Tex. Midwestern University, Wichita Falls, Tex. Ogden Public Schools. Ogden, Utah. Weber College. Ogden, Utah. Brigham Young University. Provo, Utah Salt Lake City Public Schools, Salt Lake City, Utah. University of Utah, Salt Lake City, Utah. Virginia Polytechnic Institute, Blacksburg, Va. University of Virginia, Charlottesville, Va. College of William and Mary, Virginia Polytechnic Institute in Norfolk. Norfolk, Va. Norfolk School Board, Norfolk, Va. Washington State Board of Education, Olympia, Wash. State College of Washington, Pullman, Wash. Joint Comment of following educational agencies: State Dept, of Public Instruction. Seattle Pacific College, King County Schools, Seattle Public Schools, Seattle Public Library, Seattle Univer- sity, University of Washington, Seattle Committee on Adult Education, all of Seattle, Wash. (All also filed separate com- ments) . Seattle City Council, Seattle, Wash. Washington State School Directors’ Association, Seattle, Wash. YMCA Technical Schools, Seattle, Wash. Tacoma Public School Board, Tacoma, Wash. Tacoma Vocational-Technical School, Tacoma, Wash. Allied Committee of 16 (public school and PTA officials), Walla Walla, Wash. Kanawha County Schools, Charleston, W. Va. Morris Harvey College, Charleston, W. Va. Marshall College, Huntington. W. Va. West Virginia University, Morgantown, W. Va. Ohio County Board of Education, Wheeling, W. Va. Eau Claire State College, Eau Claire, Wis. Marinette Public Schools, Marinette, Wis. Alverno College, Milwaukee, Wis. Marquette University, Milwaukee, Wis. Milwaukee Board of Vocational and Adult Education, Milwaukee, Wis. Milwaukee Public Schools, Milwaukee, Wis. University of Wisconsin in Milwaukee, Milwaukee, Wis. University of Wyoming, Laramie, Wyo. MUNICIPALITIES, CIVIC GROUPS, ETC. Comments favoring educational channel reservations, generally submitted by mayors, were filed from the following cities. Comments are itsually accompanied by letters and resolutions of endorsement from various civic groups, educational agencies, etc. Birmingham. Ala. Montgomery, Ala. Phoenix. Ariz. Little Rock, Ark. Los Angeles, Cal. Sacramento, Cal. San Bernardino, Cal. San Francisco, Cal. San Jose, Cal. Stockton, Cal. Pensacola, Fla. St. Petersburg, Fla. Atlanta, Ga. Chicago, 111. Rockford, 111. Evansville. Ind. Davenport, la. Des Moines, la. Sioux City, la. Baton Rouge, La. Lake Charles, La. Boston, Mass. Ann Arbor, Mich. Bay City, Mich Flint, Mich. Duluth, Minn. Jackson, Miss. St. Joseph, Mo. St. Louis, Mo. Billings, Mont. Reno. Nev. Trenton, N. J. Albany, N. Y. Schenectady, N, Y. Durham, N. C. Raleigh. N. C. Wilmington. N. C. Cincinnati, O. Dayton, O. Toledo, O. Youngstown, O. Oklahoma City. Okla. Portland. Ore. Erie, Pa. Pittsburgh, Pa. Reading. Pa. Scranton, Pa. Providence, R. I. Columbia. S. C. Memphis, Tenn. Amarillo, Tex. San Antonio, Tex. Norfolk. Va. Richmond, Va. Seattle, Wash. Wheeling. W. Va. Milwaukee, Wis. 8 WITH AM 1519 CONNECTICUT AVE. N.W, WASHINGTON 6, D. C. * TELEPHONE MICHIGAN 2020 Addenda to DIGESTS OF COMMENTS ON PROPOSED TV ALLOCATION PLAN Hearing Scheduled before FCC Starting July 9^ 1951, Docket No, 8736 Note; Digests of comments listed below are in addition to those publivShed in Supplement No, 12^ Iklay 12^ 1951* Specific and General Comments ] j(For list of ’educatloriaX’ institutions'/ miiaidipalities' ajnd fcivic' organizations favoring plan in general terms, see other side,) aban & Katz Corp, » C^cago, Illo (WBKB) 2^ (Hogan & Harts on )« Favors FCC proposal to shift WBKB from Channel k versal Broadcasting Co,, Indianapolis g Ind, (WISH) Requests reclassification of nnel 13 to commercial use, (Segal, Smith & Hennessey), tre College of Kentucky, Danville, Ky* Requests assignment of flexibility channels to ville in lieu of 35 for education. of Kentucky, Lexingtona Ky. Requests reclassification of Charinel 2? or 31 to educational or assignment of flexibility channel to Lexington for educational use,(Krieger & Jorgensor of Missouri, Columbia a Mo, ■=— Requests educational stations be permitted to commercialize to 50^ of broadcast day, (Fisher, V/ayland, Duvall & Southmayd), Jersey Audio Visual Educational Assn,, Jersey City, N, J, — Request at least four non- mercial channels for education, I te Dept, of Education, Trenton, N,J, — Requests assignment of flexibility channels to non- mercial use in ccmmunities where there are no educational channels reserved. Alternative!;^ uests reclassification for educational use of Channels 37 in Paterson, 44 in Trenton, 46 ir antic City, 47 in New Brunswick, testant Radio Commission, New York, N.Y, — Requests that uhf flexibility channels be made liable to educational institutions, (p^ank S. Ketcham), Jones U»» Greenville, S* C. (YJMUU) — Urges permission to operate educational stations on -profit basis, (Frank StoUenwerck), River VaLLey Publishing Cooi Sherman, Tex, — Requests assignment of Channels 10 & 17 to rman-Denison affecting Forth Worth, Denton, Weatherford, VJaxahachie & Hillsboro, Tex, h State Agricultural College, Logan, Utah Requests assignment of uhf flexibility channe] jLogan. (Louis S. Miadsen, president). ! Journal Co, » Milwaukee, Wis, (WTMJ & ?^TMJ-TV) • — Favors FCC proposal to shift WTMJ-TV fron nnel 3 to 4* (Hogan & Hartson), Educational Institutions and Civic Organizations Favoring Reservation Plan I !nt St, Mary College, Los Angeles, Gal, ta Clara County Board of Education, Santa Clara, Cal, ,versity of Miami, Coral Gables, Fla, bondale Federation of omens Clubs, Carbondale, 111, jthwestern University, Evanston, 111, te Normal University, Normal, 111, Page 2a Supplement iloo ’^2- A Educational Institutions and Civic Organizations Favoring Reservation Plan (Cont*d Springfield Chamber of Commerce, Springfield, 111* University of Illinois, Urbana, Ille Evansville College,, Evansville, Ind» Cje College, Cedar Rapids, la, Des Moines Register & Tribune, Des Moines, la. - (Harlan lliller). Iov;a Weselyan College, Mount Pleasant, la. Tulane University, New Orleans, La. Lowell Institute Cooperative Broadcasting Council, Boston, Mass. (Covington & Burling). J'-^aphens College, Columbia, Mo. angelical Lutheran Synod of Missouri, St. ^uis. Mo. So. Louis Archdiocesan Council of Catholic Men, St. Louis, Mo. St. Louis Coiincil of Parent-Teachers Assns., St. Louis, Mo. Meredith College, Raleigh, K. C. Wilmington College, VJilmlngton, N, C. Cameron State Agricultural College, Lawton, Okla, Oklahoma City Public Schools & Board of Education, Oklahoma City, Okla. Geneva College, Beaver Falls, Pa. State Teachers College, California, Pa, State Teachers College, Edinboro, Pa. Thiel College, Greenville, Pa. Sto Vincent College, Latrobe, Pa. Westminister College, New ViTilmington, Pa. Carnegie Institute, Pittsburgh, Pa, Catholic School Board, Diocese of Pittsburgh, Pa. Pennsylvania College for Women, Pittsburgh, Pa. State Teachers College, Slippery Rock, Pa. Washington & Jefferson College, Washington, Pa, Wayne sburg College, Vfaynesburg, Pa. Brown University, Providence, R. I, Sioux Falls College, Sioux Falls, S. D. Del Mar College, Corpus Christi, Tex, University of Vermont & the Agricultural College, Burlington, Vt. Washington State College, Pullman, Wash. (KWSC) King County School Directors Assn. , Seattle, Wash, Seattle Board of American Association of University Women, Seattle, ViTash. Washington Congress of Parents &. Teachers, Seattle, Wash. Marshall College, Huntington, W. Va. Puerto Rice Dept, of Education, San Juan, P. R. Munici paliti e s City of North Little Rock, Ark. City of Miami, Fla. City of Boise, Ida. City of Baltimore, Md. City of Chattanooga, Tenn. City of San Angelo, Tex. Planning Board of San Antonio & Bexar County Inc., San Antonio, Tex. City of Portsmouth, Va. - end - WITH AM-FM REPORTS Supplement No. 72-B June 16, 1951 519 CONNECTICUT AVE. N.W. If WASHINGTON 6, D. C. • TELEPHONE MICHIGAN 2020 ) Digests of Oppositions to Comments on TV Allocation Plan For Digests of Comments on Proposed TV Allocation Plan, see Television Digest Supplements 72 & 72-A Hearing Scheduled to be Conducted before FCC en banc Starting July 9, 1951; Docket No. 8736 For proposed rules and table of allocations, see TV Allocation Report issued by FCC March 22, 1951 and published in full text by Television Digest March 24, 1951 ALABAMA Giddens & Rester, Mobile (WKRG) — Opposes proposal of Lamar Life Insurance Co.. Jackson, Miss., to substitute Channel 10 for 5 in Mobile. (George O. Sutton.) Pape Broadcasting Co., Mobile (WALA) — Opposes proposal of Tuscaloosa Broadcasting Co., Tuscaloosa, Ala., to assign Channel 8 to Tuscaloosa. (Dow, Lohnes & Albertson.) U of Alabama, University — Opposes proposal of Voice of Dixie Inc., Birmingham, Ala., to delete reserved Channel 7 from University and assign 2 to University or Tuscaloosa. ARKANSAS Harold L. Sudbury, Blytheville (KLCN) — Opposes proposals of: (1) WREC Broadcasting Service and WMPS Inc., Memphis, to assign Channel 3 to Memphis from Blytheville. (2) Allen B. DuMont Laboratories Inc., New York, which lists no uhf assignment for Blytheville. (Harry J. Daly.) I CALIFORNIA American Broadcasting Co. Inc., Los Angeles (KECA & KECA-TV) — Opposes proposals of: (1) Alrfan Radio Corp. Ltd., Charles E. Sallk and San Diego County Board of Education, San Diego, to assign Channel 6 or 12 to San Diego. (2) Television Broadcast- ing Co., San Diego, to assign 12 and 15 to San Diego. (3) Allen B. DuMont Laboratories Inc., New York, to assign 7 and 9 to Phoenix, Arlz., 13 to Yuma, 6 to San Diego, 7 to Mexicali and 12 to Tijuana. (Haley, McKenna & Wilkinson.) S Earle C. Anthony Inc., Los Angeles (KFI & KFI-TV) — Opposes proposals of: (1) Radio KIST Inc., Santa Barbara, Cal., to as- sign Channel 8 to Santa Barbara; (2) Alrfan Radio Corp., Tele- vision Broadcasting Co., and Charles E. Sallk, San Diego, to assign 6 or 12 to San Diego from Tlajuana, Mexico. (Caldwell- Rollo-Russell.) t Monterey Radio-Television Co., Monterey (purchase of KMBY pending) — Opposes proposals of Salinas Broadcasting Co., Salinas, Cal.; Harmco Inc. and KCRA Inc., Sacramento, Cal.; KROW Inc., Oakland, Cal., to substitute uhf channel for Chan- nel 8 in Monterey. (Dow, Lohnes & Albertson.) KCRA Inc. (KCRA), Harmco Inc. (KROY), Sacramento — Oppose proposals of following as in conflict with their comments: Cali- fornia Inland Broadcasting Co., Fresno; Monterey Radio-Tele- vision Co., Steven A. Clsler, Monterey; Tribune Building Co., KROW Inc., Oakland; Salinas Broadcasting Co., Salinas; Colum- bia Broadcasting System Inc., Television California, San Fran- •* cisco; Keynon Brown, Reno, Nev. (Loucks, Zlas, Young & Jansky.) Kennedy Broadcasting Co., San Diego (KFMB & KFMB-TV) — Op- poses proposals of: (1) American Broadcasting Co., New York, to permit operation of KECA-TV, Los Angeles on Channel 7 with effective radiated power of 23 db and antenna height in ex- cess of 500 ft. (2) Radio KIST Inc., Santa Barbara, to assign 8 to Santa Barbara. (Cohn & Marks.) Public Library, San Diego — Favors reservation of Channel 3 to San Diego for educational use. American Broadcasting Co. Inc., San Francisco (KGO & KGO-TV) Opposes proposals of DuMont Laboratories Inc., New York, KARM, The George Harm Station and McClatchy Broadcasting Co., Fresno, to assign Channel 7 to Fresno. (Haley, McKenna & Wilkinson.) Chronicle Publishing Co., San Francisco (FM station KRON & KRON-TV) — Opposes proposals of: (1) Tribune Co., Oakland, to assign Channel 3 to Stockton, 4 to Reno. (2) Harmco Inc. and KCRA Inc., Sacramento, to assign 3 to Sacramento, 4 to Reno. (3) McClatchy Broadcasting Co., Sacramento, to assign 3 to Sacramento, 4 to Reno. (Krleger & Jorgensen.) San Jose Television Broadcasting Co., San Jose — Opposes proposal of Columbia Broadcasting System, New York, to delete Channel 11 from San Jose. (St. Clair, Connoly & Cerinl and Wheat, May & Shannon.) McClatchy Broadcasting Co., Stockton (KWG) — Opposes proposals of: (1) Columbia Broadcasting System, New York, and Tele- vision California, San Francisco, to substitute Channel 6 for 13 in Stockton; (2) KROW Inc., Oakland, to substitute 8 for 13; (3) Tribune Bldg. Co. to substitute 3 for 13. (Dow, Lohnes & Albertson.) E. F. Peffer, Stockton (KGDM) — Opposes proposals of: (1) KROW Inc., Oakland, to substitute Channel 6, 8 or 58 for 13 in Stock- ton; (2) Television California, San Francisco, to substitute 6 for 13; (3) Tribune Bldg. Co., Oakland, to substitute 3 for 13; (4) Columbia Broadcasting System Inc., New York, to substitute 6 or uhf channel for 13. (Fisher, Wayland, Duvall & South- mayd.) Radio Diablo Inc., Stockton (KSBR-FM, San Bruno) — Opposes proposals of; (1) Television California, San Francisco; KROW Inc., Tribune Building Co., Oakland, Cal., and Columbia Broad- casting System, New York, to remove Channel 13 from Stockton; (2) Allen B. DuMont Laboratories, New York, to assign 12 to Monterey. (Loucks, Zias, Young & Jansky.) Note: Following California educational institutions and organiza- tions filed oppositions to proposals of KROW Inc., Oakland, Cal., and Columbia Broadcasting System Inc., New York, to classify Channel 9 for commercial use in San Francisco-Oak- land: Acalanes Union High School, Canyon; State Dept, of Education, Sacramento; Campbell Union School District, Camp- bell; Castro Valley School District, Castro Valley; Contra Costa County Schools, Martinez; Hayward Elementary Schools, Hay- ward; Hayward Union High School District, Hayward; Irving- ton Elementary School, Irvington; Los Gatos Union High School, Los Gatos; Marin County Superintendent of Schools, San Rafael; Mt. Eden Elementary School, Mt. Eden; Oakland-San Francisco Bay Area Public Schools TV Council, Oakland; Pied- mont Public Schools, Piedmont; Ravenswood Elementary School District, Palo Alto; Richmond Schools, Richmond; San Lorenzo Elementary Schools, San Lorenzo; San Mateo County Schools, Redwood City; San Rafael City Schools System, San Rafael; Sonoma County Schools, Santa Rosa; John Swett Union High School, Crockett; Walnut Creek School District, Walnut Creek. COLORADO Northwestern Colorado Broadcasting Co., Craig (KRAI) — Favors, in part, proposals of Sen. Edwin C. Johnson; suggests alternatives where conflicts arise. (Fletcher & Midlen.) Board of Education, Denver — Opposes proposal of Sen. Edwin Johnson to classify Channel 6 for commercial use. Western Slope Broadcasting Co., Grand Junction (KFXJ) — Same as Northwestern Colorado Broadcasting Co., Craig, Colo. Uncompaghre Broadcasting Co., Montrose (KUBC) — Same as Northwestern Colorado Broadcasting Co., Craig, Colo. CONNECTICUT Travelers Broadcasting Service Corp., Hartford (WTIC)— Opposes proposals of: (1) Columbia Broadcasting System, New York, to assign Channel 10 to Albany. (2) WTAG Inc., Worcester, Mass., to assign 12 to Worcester. (3) Hampden -Hampshire Corp., Holyoke, Mass., to assign 3 or 10 to Sprlngfield-Holyoke. (4) Thames Broadcasting Corp., New London, Conn., to support FCCs assignment of 3 and 63 to New London. (5) Cherry & Webb, Providence, R. I., to support FCC’s assignment of 10, 12 16 & 22 to Providence. (6) Outlet Co., Providence, R. I., to sup- port FCC’s shift of WJAR-TV to 10 in Providence. (7) Mathe- son Radio Co., Boston, to assign 10 to Springfield. (8) Re- gional TV Corp., Springfield, Mass., to add 3 to Springfield. (9) Greylock Broadcasting Co., Pittsfield, Mass., to add 3 to Pittsfield. (10) Allen B. DuMont Laboratories, New York, for failure to add vhf and uhf channels to Hartford, for assignment of 3 & 10 to Albany-Schenectady-Troy. (11) Elm City Broad- casting Corp., New Haven, Conn., to support FCC’s Connecticut allocations. (12) Brockway Co. to substitute 8 for 7 in Montreal- Verdun. (Caldwell-Rollo-Russell.) Elm City Broadcasting Corp., New Haven (WNHC & WNHC-TV) — Opposes proposals of: (1) American Broadcasting Co. and Gen- eral Teleradio Inc., New York, to increase power without refer- ence to adjacent-channel interference. (2) Pennsylvania Broad- casting Co. and Chamber of Commerce, Philadelphia, to substi- tute Channel 8 for 7 in Wilmington. (Fisher, Wayland, Duvall & Southmayd.) WAVZ Broadcasting Corp., New Haven (WAVZ)— Opposes proposal of Hartford Times Inc., Hartford, Conn., to substitute Channel 75 for 59 in New Haven. (Greenbaum, Wolff & Ernst.) 1 DISTRICT OF COLUMBIA Joint Committee on Educational Television, Washington— Op- noses' (1) Petition of Federal Communications Bar Assn (2) ProDosal of Columbia Broadcasting System Inc., New York, to substitute uhf for vhf for educational use in Chicago, San Pran- S and Boston. (3) NARTB's comments. (4) Proposal of Allen B DuMont Laboratories Inc., to eliminate channel res ervations. (Telford Taylor, Seymour Krieger.) Kational Assn. Of Radio & Television Broadcasters, Teleinsion Board Washington — Requests permission to participate in hear- Pn in V«^ct W ^signTent of 470-500 me and issue of educa^ tional reservations in specific communities. (Thad H. Bro Pel 9 foP noP-Pommerclal use in Washington. (Covington & Burling.) FLORIDA commercial use. (Vernon Bronson.) f Anon -r Channel 9 to Ft. Lauderdale. (Dow, Lohnes & Albertson.) 5 for 6 9 18 & 24 in Orlando area. (George O. Sutton.) Pinellas Broadcasting Co., St. Petersburg (WTSP)-Opposes pro- posals of Tampa Times Co. and tribune C(^^ Tampa o ] Ing to educational reservation. (Miller & Schroeder.) Pinellas County School System, St. Petersburg— Opp^es proposes of r^mpa Times Co. and Tribune Co., Tampa, to classify Chan nel 3 for commercial use. Hillsborough County School System, Tampa— Opposes proposals Tampa Times Co. and Tribune Co.. Tampa, to classify Channel 3 for commercial use. Tribune Co., Tampa (WTLA)— Opposes proposal of Jacksonville Broadcasting Corp.. Jacksonville. Fla., to assign Channel 10 to Jacksonville, (Segal, Smith & Hennessey.) Ken-sell Inc.. West Palm Beach (WTRK)— Opposes proposals of: (11 Fort Industry Co., Miami, to delete Charing 5 or 5 & ^2 Wect Palm Beach- (2) Allen B. DuMont Laboratories Inc.. ™Y^rk! t™ s^ftute 13 for 5 & 12 there. (Fletcher & Mldlen.) WJNO Inc., West Palm Beach (WJNO)— Opposes proposals of: Ml Tale of Dreams Broadcasting Co., Miami, to substitute Chan nels 11 & 13 for^ & 12 in Welt Palm Beach; (2) Fort Industry Co Miami to s^utetltute 11 for 12 or delete 5 & 12 or substitute a uhf channel for 12 in West Palm Beach; (3) Allen B DuMont LaboLtories, New York, to substitute 13 for 5 & 7 in West Palm Beach. (Hogan & Hartson.) U of Illinois, Urbana (WILL)— Opposes proposals of: (1) West Cen- tral Broadcasting Co., Peoria, to move Channel 12 from Urbana to Peoria. (2) Columbia Broadcasting System, New York, to move 12 to Rockford. (3) L. B. Wilson Inc., Cincinnati, and Peoria Broadcasting Co., Peoria, to substitute 3 for 12 in Urbana. (4) Quad-City Broadcasting Corp., Moline, 111., to assign 13 to Springfield, 111. (Telford Taylor.) INDIANA Evansville Television Inc., Evansville — Opposes proposal of Quad- City Broadcasting Corp., Moline, 111., to substitute Channel 5 for 7 in Evansville. (Barnes & Nellson.) Lake Broadcasting Co. Inc., Gary (WWCA)— Opposes proposals of Allen B. DuMont Laboratories Inc., Columbia Broadcasting Sys- tem Inc., New York, and Southern Illinois U, Carbondale, 111., as would preclude assignment of Channel 11 to Gary. (Haley, McKenna & Wilkinson.) William H. Block Co., Indianapolis — Opposes proposals of: (1) Logansport Broadcasting Corp., Logansport, Ind. to assign Chan- nel 10 to Logansport. (2) Owensboro On The Air Inc., Owens- boro, Ky.. to assign 10 to Owensboro. (3) Ohio State U, Colum- bus, 0„ to delete 13 from Indianapolis, 12 from Clarksburg, W. Va., 13 from Huntington, W. Va. and to assign 12 to Columbus, O. and Cumberland, Md. (4) L. B. Wilson Inc., Cincinnati, O., to delete 13 from Indianapolis. (5) Columbia Broadcasting System Inc., New York, to delete 13 from Indianapolis. (6) South- ern Illinois U, Carbondale, 111., to delete 6 from Indianapolis and assignment of 10 to Carbondale as educational. (Caldwell-Rollo- Russell.) Crosley Broadcasting Corp., Indianapolis — See Crosley Broadcasting Corp., Cincinnati, O. Indianapolis Broadcasting Inc., Indianapolis (I\TRE) — Opposes pro- posals of: (1) Columbia Broadcasting System Inc., New York, to substitute Channel 64 for 13 in Indianapolis or duplicate 13 in Indianapolis and Chicago. (2) Ohio State U, Columbus, O., to delete 13 from Indianapolis. (3) L. B. Wilson Inc., Cincinnati, O., to substitute 10 or 12 for 13 in Indianapolis. (Pierson & Ball.) Radio Indianapolis Inc., Indianapolis (WXLW) — Opposes proposals of: (1) Ohio State U, Columbus, O., and Columbia Broadcasting System Inc., New York, to delete Channel 13 from Indianapolis. (2) L. B. Wilson Inc., Cincinnati, O., to assign 23 to Muncie, Ind. (Miller & Schroeder.) Universal Broadcasting Co. Inc., Indianapolis (WISH) — Opposes proposals of: (1) Columbia Broadcasting System, New York, to substitute Channel 64 for 13 in Indianapolis. (2) Ohio State U, Columbus, O., to delete 13 from Indianapolis. (Segal, Smith & Hennessey.) WFBM Inc., Indianapolis (WFBM & WFBM-TV) — Opposes propos- als of L. B. Wilson Inc., Cincinnati. O., and Southern Illinois U, Carbondale, 111., to delete Channel 6 from Indianapolis and shift WFBM-TV to 4. (Dempsey & Koplovitz.) Wabash Valley Broadcasting Corp., Terre Haute (WTHI) — Opposes proposals of: (1) William H. Block Co. and WIBC Inc., Indian- apolis: Logansport Broadcasting Corp., Logansport, Ind.; Owens- boro On The Air Inc., Owensboro, Ky., and L. B. Wilson Inc., Cincinnati, O., to delete Channel 10 from Terre Haute. (2) L. B. Wilson Inc. to assign 13 to Cincinnati & Terre Haute. (Haley, McKenna & Wilkinson.) IOWA GEORGIA Broadcasting Inc., Atlanta (purchase of facilities of VVSB-TV, ‘^^ttianta ending FCC approval)— Opposes proposal of Radio Athens inc., Athens, Ga., to assign Channel 11 to Athens. (Spear- man & Roberson.) Fort Industry Co., Atlanta (WAGA & WAGA-TV)-Opp^es pro- posal of WHUB Inc., Cookeville, Tenn., to assign 5 to Cookeville. (Dow, Lohnes & Albertson.) “t™N-C . S Sbstltute Chaimel 7 lor 6 In Augusta. (Pierson & Ball.) ILLINOIS wTKT inr Centralia (WCNT)— Opposes proposals of follovdng to rtpiptp Phannel 2 from Centralia; Peoria Broadcasting Co., P^ria, Chamnafgn News-Ga^^^^^ Inc., Champaign; AUen B DuMont Laboratories Inc., New York. (Caldwell-Rollo-Russell.) T>„i..hoTs X, Katz Com Chicago (WBKB)— Opposes proposals of plo?la Bro^dcastlnT'Co. Ptorla\ 111., and Champaign News- Gazette Inc. Champaign, 111., to substitute Channel 2 for 3 In Snringfield ill., and proposal of Allen B. DuMont Laboratories, New -fork, to assign 4 to Springfield and require WBKB to remain on 4 in lieu of shifting to 2. (Hogan & Hartson.) lotinson-Kennedy Radio Corp.. Chicago (WIND)— Opposes propo- Johnson Kenneuy -Rroadcastlng Co., Gary, Ind., to move Channel if from Chicago to Gary and classify 20 for educational up in Public Schools of Gary, to move 44 from Chicago to ctly foflducftfonal^^^^ °( 3) Alien H DuMont Lf oratories Inc., New York, to reduce number of uhf channels in Chicago. (Pierson & Ball.) a. Vnrthem Illinois State Teachers College, De Kalb— Requests as- signment of reserved channel to De Kalb. (Krieger & Jorgensen.) Citv Council of Marshall— Opposes proposal to delete Channel 10 *^ fmm Terre Haute, Ind. (Emory Bloodworth, mayor.) Rock Island Broadcasting Co., Rock Island (WHBF A: V^IBF-TV) ODDOses proposal of Independent Broadcasting Co., Des Mmnes, to ^sl4 Channel 4 to Des Moines. (Dow, Lohnes & Albertson.) Rockford” Broadcasters Inc., Rockford (WROK)— Opposes proposals Rocktord Bmaacape s system. New York, and L. B. Wilson Inc., Cincinnati, O., to delete Channel 13 from Rockford. (Dow, Lohnes & Albertson.) VVatertown (WWNY) — Opposes proposals of: (1) WAGE Inc. and Onondaga Radio Broadcasting Corp.. Syracuse to assign Channel 11 to Syracuse. (2) Cornell U, Ithaca, N y' to assign 5 to Syracuse. (Fisher, Wayland, Duvall & Southmayd.) NORTH CAROLIN.A High Point Enterprises Inc., High Point (WHPE)— Opposes pro- posals of: (1) Winston-Salem Broadcasting Co. and Piedmont Publishing Co.. Winston-Salem, N. C., to assign Channel 6 to Winston-Salem. (2) Allen B. DuMont Laboratories Inc., New YorK, to assign 5 to Winston-Salem. (Harry J. Daly.) WPTF Radio Co., Raleigh (WPTF) — OpQpses proposals of: (1) Allen B. DuMont Laboratories. New York, to assign Channel 5 to Dur- ham, 8 to Raleigh. (2) WSAZ Inc., Huntington, W Va to assign 5 to Chapel Hill, 4 to Raleigh. (Loucks, Zias, Young & Jansky.) Winston-Salem Broadcasting Co., Winston-Salem (WTOB) — Op- poses proposals of following to assign Channel 6 to respective cities: Joe L. Smith, Beckley, W. Va. and Dally Telegraph Print- ing Co., Princeton, W. Va. (Krieger & Joregensen.) OHIO Board of Education, Akron— Opposes proposal of Wooster Republi- can Printing Co., Wooster, Ohio, to assign reserved Channel 55 from Akron to commercial use in Wooster. Summit Radio Corp., Akron (WAKR)— Opposes proposal of Wooster Republican Printing Co.. Wooster, O., to delete Channel 55 from Akron. (Caldwell-Rollo-Russell.) Tri-City Broadcasting Co., Bcllaire — Opposes proposals of: (1) Alle- gheny Broadcasting Corp., WCAE Inc. and Westinghouse Radio Stations Inc., Pittsburgh, to delete Channel 9 from Wheeling. (2) WSTV Inc., Steubenville. O., to delete 7 or 9 from Wheeling. (3) Allen B. DuMont Laboratories Inc., New York, to assign 18, 39, 43 & 63 to Wheeling in lieu of 7, 9 & 57. (4) Pittsburgh Radio Supply House, Pittsburgh, to assign 16 to Wheeling in lieu of 9. (5) Washington Broadcasting Co.. Washington, Pa., to assign 63 to Wheeling in lieu of 9. (Barnes & Neilson.) Crosley Broadcasting Corp., Cincinnati (WXW-T, Cincinnati; WLW-D, Dayton; WLW-C, Columbus) — Opposes following: (1) For Cincinnati, proposal of Indiana Technical College, Ft. Wayne, Ind., to assign Channel 5 to Ft. Wayne. (2) For E>ayton, pro- posal of Allen B. DuMont Laboratories, New York, to operate WLW-D on 5. assign 5 to Cleveland, 6 to Columbus. (3) For Co- lumbus, proposals of: (a) Southern Illinois U, Carbondale, 111.; WIBC Inc., Indianapolis; L. B. Wilson Inc., Cincinnati, to assign 4 to Indianapolis and Columbus; (b) Allen B. DuMont Labora- tories, New York, to assign 3 in lieu of 4 to Columbus. 3 to Indianapolis; (c) Matta Broadcasting Co.. Braddock, Pa., to assign 4 to Braddock; (d) Allegheny Broadcasting Corp.. Pitts- burgh Radio Supply House Inc., Westinghouse Radio Stations Inc., WWSW Inc.. Pittsburgh, to assign 4 to Pittsburgh. (4) For Indianapolis, proposals of: (a) Columbia Broadcasting System, New York, to delete 13 from Indianapolis or assign 13 to both Indianapolis and Chicago; (b) Ohio State U. Columbus, to assign 13 to Columbus fro.oi Iiidianapoll.s. (5) For Toledo, proposals of: (a) Wayne University and Detroit Board of Education to assign H to Detroit from Toledo; (b) Allen B, DuMont Laboratories, New York, to delete 11 from Toledo. (Hogan & Hartson.) 4 OHIO — Continued Radio Cincinnati Inc., Cincinnati (VVKRC & WKRC-TV)— Opposes proposals of: (1) Allen B. DuMont Laboratories Inc., New York, to retain Channel 7 and 11 in Cincinnati. (2) L. B. Wilson Inc., Cincinnati, to assign 9 and 13 to Cincinnati, 7 to Dayton. {3) Ohio State U, Columbus, to assign 13 to Cincinnati. (4) South- eastern Ohio Broadcasting System Inc., Zanesville, O., and Shen- andoah Valley Broadcasting Corp., Harrisonburg, Va., to assign 11 to Cincinnati. (Cohn & Marks.) Cleveland Broadcasting Co. Inc. (WERE), United Broadcasting Co. (WHK), WGAR Broadcasting Co. (WGAR), WJW Inc. (WJW), Cleveland — Oppose proposals of: (1) Treblt Corp., Flint, Mich., to assign Channel 10 to Flint. (2) WCAE Inc., Pittsburgh, Pa., to assign 16 to Washington, Pa. and 65 to Bellefontaine, O. (3) WBVP Inc., Beaver Falls, Pa., to assign 16 to Beaver Falls. (4) Pittsburgh Radio Supply House, Pittsburgh, to assign 16 to Wheeling, W. Va. (5) Allen B. DuMont Laboratories Inc., New York, for failing to provide competitive situation between vhf and uhf in Cleveland, and providing only 6 channels instead of 8 proposed by Cleveland applicants. (Caldwell-Rollo-Russell.) Scripps-Howard Radio Inc., Cleveland (TV station WEWS) — Op- poses proposals of: (1) Bay City Broadcasting Co., Bay City, Mich., to assign Channel 5 to Bay City. (2) L. B. Wilson, Inc., Cincinnati, O., to assign 5 to Clarksburg, W. Va. (3) Music Broadcasting Co.. Grand Rapids, Mich., to assign 5 to Lansing. (Dempsey & Koplovitz.) Crosley Broadcasting Corp., Columbus (WLW-C) — See Crosley Broadcasting Corp., Cincinnati, O. Dispatch Printing Co., Columbus (WBNS & WBNS-TV) — Opposes proposals cf: (1) William H. Block Co., Indianapolis, and L. B. Wilson Inc., Cincinnati, to assign Channel 10 to Indianapolis. (2) Twin Valley Broadcasters Inc., Coldwater, Mich., to assign 10 to Coldwater. (Dow, Lohnes & Albertson.) Picture Waves Inc., Columbus (WTVN) — Opposes proposals of: (1) Booth Radio & Television Stations Inc. and WJR, The Goodwill Station, Detroit, to assign Channel 6 to Detroit. (2) Allen B. DuMont Laboratories Inc., New York, to assign 6 to Detroit, 5 to Dayton. (Fly, Shuebruk & Blume.) Crosley Broadcasting Corp., Dayton (WLW-D)— See Crosley Broad- casting Corp., Cincinnati, O. Miami Valley Broadcasting Corp., Dayton (WHIG & WHIO-TV)— Opposes proposal of Allen B. DuMont Laboratories. New York to assign Channel 13 to Dayton and Toledo, Ohio, and Terre Haute, Ind. (Dow, Lohnes & Albertson.) WSTV Inc., Steubenville (WSTV) — Opposes proposals of: (1) Allegheny Broadcasting Corp., Pittsburgh Radio Supply House Inc., WCAE Inc., Westinghouse Radio Stations Inc., Pittsburgh to assign Channel 9 to Pittsburgh. (2) Washington Broadcast- ing Co., Washington, Pa., to assign 9 to Washington. (3) Port Industry Co., Wheeling, W. Va., favoring FCC proposals for Wheeling. (4) Allen B. DuMont Laboratories Inc., New York for failure to propose vhf channel to Steubenville. (Caldwell- Rollo-Russell.) Community Broadcasting Co., Toledo (WTOL)— Opposes proposals of: (1) Allen B. DuMont Laboratories Inc., to delete Channel 13 from Toledo. (2) Wayne U and Detroit Board of Education to move 11 from Toledo to Detroit. (Pierson & Ball.) Crosley Broadcasting Corp., Toledo — See Crosley Broadcasting Corn.. Cincinnati, O. Fort Industry Co., Toledo (WSPD & WSPD-TV) — Opposes proposal of Allen B. DuMont Laboratories, New York, to substitute Chan- nel 11 for 13 in Toledo. (Dow, Lohnes & Albertson.) Maumee Valley Broadcasting Co., Toledo — Opposes proposals of Wayne U and Detroit Board of Education, Detroit, to assign Channel 11 to Detroit and 12 to Saginaw. (Roberts & Mclnnls.) Toledo Blade Co., Toledo — Opposes proposal of Wayne U and De- troit Board of Education to move Channel 11 from Toledo to Detroit. (Segal, Smith & Hennessey.) OKLAHOMA Oklahoma A & M College, Stillwater— Request channel be allo- cated to Stillwater for educational purposes. (Philip S Don- nell, v.p.) Cameron Television Inc., Tulsa (KOTV)— Opposes proposals of KFBI Inc. and Taylor Radio & Television Corp., Wichita, Kan to substitute Channel 11 for 6 in Tulsa. (Hogan & Hartson.) All Oklahoma Broadcasting Co., Tulsa — Opposes proposals of: (1) WKY Radiophone Co., Oklahoma City, to assign Channels 4, 7 & 13 to Oklahoma City, 2, 6 & 9 to Tulsa, 11 to Muskogee. (2) Southwestern Publishing Co., Fort Smith. Ark., to assign Chan- nel 8 to Fort Smith. (Fly, Shuebruk & Blume.) OREGON Central Willamette Broadcasting Co., Albany (KWIL)— Petitions for waiver of rules to permit filing of new proposal to provide 4 additional vhf channels to Washington and Oregon. (Fisher, Wayland, Duvall & Southmayd.) PENNSYLVANIA WBVP Inc., Beaver Falls (WBVP) — Opposes proposals of: (1) Cleve- land Broadcasting Co.. United Broadcasting Co., WGAR Broad- casting Co. and WJW Inc., Cleveland, O., to assign Channel 16 to Pittsburgh. (2) WCAE Inc., Pittsburgh, Pa., to assign 16 to Washington, Pa. (3) Pittsburgh Radio Supply House, Pitts- burgh. to assign 16 to Wheeling, W. Va. (Segal, Smith & Hennessey.) Tri-County Broadcasting Co., DuBois (WCED)— Opposes proposal of Cleveland Broadcasting Co., United Broadcasting Co WGAR Broadcasting Co., WJW Inc., Cleveland, O., to substitute Chan- nel 60 for 31 in Dubois. (Fisher, Wayland, Duvall & South- mayd.) Ditspatch Inc., Erie (TV station WICU)— Opposes proposal of Presque Isle Broadcasting Co., that Channel 12 in Erie be re- served for educational use and WICU be shifted to uhf chan- nel. (Ply, Shuebruk & Blume.) Peoples Broadcasting Co., Lancaster (WLAN)— Opposes assign- ment of Channel 7 or 8 to Wilmington, Del., proposed by Penn- sylvania Broadcasting Co., Chamber of Commerce, City of Phila- delphia, Daily News Television Co., Philadelphia. (Stephen Tuhy Jr.) WGAL Inc., Lancaster (WGAL & WGAL-TV) — Opposes proposal of Peoples Broadcasting Co., Lancaster, Pa., for competitive hear- ing with WGAL-TV for Channel 8; serves notice it will appear at hearing to support FCC proposals as they affect WGAL-TV and to oppose proposals of Easton Publishing Co.. Easton, Pa., and Trent Broadcast Corp., Trenton, N. J., both of whom chal- lenged legality of fixed allocation plan. (George O. Sutton.) Lebanon Broadcasting Co., Lebanon (WLBR) — Opposes proposals of Eastern Radio Corp., Reading, to assign Channel 15 to Read- ing, 55 to Lebanon. (Miller & Schroeder.) Board of Public Education, Philadelphia — Opposes proposals of Philadelphia Chamber of Commerce. City of Philadelphia. Dally News Television Co., and Pennsylvania Broadcasting Co. to as- sign Channel 12 to Philadelphia for commercial use. (Edward B. Soken.) WCAE Inc., Pittsburgh (WCAE)— Opposes proposals of: (1) Tri- City Broadcasting, McKeesport, Pa., to assign Channel 7 to Mc- Keesport. (2) Cleveland Broadcasting Co.. United Broadcasting Co., WGAR Broadcasting Co., WJW Inc., Cleveland, O., to assign 16 to Pittsburgh. (3) Columbia Broadcasting System Inc., New York, to assign 64 to Indianapolis. (4) Washington Broadcast- ing Co., Washington, Pa., to assign 9 to Washington. (5) WBVP Inc,, Beaver Falls, Pa., to assign 16 to Beaver Falls. (6) WSTV Inc., Steubenville, O., to assign 9 to Steubenville. (7) L. B. Wilson Inc.. Cincinnati, to assign 63 to Steubenville. (Dempsey & Koplovitz.) WWSW Inc., Pittsburgh (WWSW) — Opposes proposals of: (1) Matta Broadcasting Co., Braddock, Pa., to assign Channel 4 to Braddock. (2) Tri-City Broadcasting Co., McKeesport, Pa., to assign 13 to McKeesport. (Segal, Smith & Hennessey.) RHODE ISLAND Outlet Co., Providence (WJAR & WJAR-TV) — Opposes proposals, requiring its shift to Channel 12, by Columbia Broadcasting System, New York; Hampden-Hampshire Corp., Holyoke, Mass.; Travelers Broadcasting Service Corp., Hartford, Conn.; Matheson Radio Co., Boston, Mass.; WTAG Inc., Worcester, Mass., and Allen B. DuMont Laboratories Inc., New York. (Dow, Lohnes & Albertson.) SOUTH CAROLINA Broadcasting Co. of the South, Columbia (WIS) — Opposes pro- posals of: (1) Southeastern Broadcasting Co. and Middle Georgia Broadcasting Co., Macon, Ga., to assign Channel 7 to Macon. (2) Spartan Radiocasting Co., Spartanburg, S. C„ to delete 7 from Columbia. (3) Allen B. DuMont Laboratories Inc., New York, to assign only 5 & 9 to Columbia. (Dow, Lohnes & Albert- son.) City of Columbia — Opposes proposals of: (1) Spartan Radiocast- ing Co., Spartanburg, S. C., to move Channel 7 to Spartanburg. (2) Southeastern Broadcasting Co. and Middle Georgia Broad- casting Co., Macon, Ga., to assign 7 to Macon. (3) Allen B. DuMont Laboratories Inc., New York, to assign 5 & 9 to Colum- bia in lieu of 7 & 10. Marseco Broadcasting Co., Columbia (WMSC) — Opposes proposals of: (1) Southeastern Broadcasting Co. and Middle George Broad- casting Co., Macon, Ga., to assign Channel 7 to Macon. (2) Spartan Radiocasting Co., Spartanburg, S. C., to assign 7 to Spartanburg from Columbia. (Hogan & Hartson.) Palmetto Broadcasting Corp., Columbia (WNOK) — Opposes pro- posals of: (1) Spartan Radiocasting Co., Spartanburg, S. C., to delete Channel 7 from Columbia. (2) Southeastern Broadcast- ing Co. and Middle Georgia Broadcasting Co., Macon, Ga., to assign 7 to Macon. (3) Allen B. DuMont Laboratories Inc., New York, to assign 5 & 9 to Columbia in lieu of 7 & 10. (John P. Clagett.) Greenville City Schools, Greenville — Opposes proposal of Bob Jones U, Greenville, S. C. TENNESSEE Tri-State Telecasting Corp., Chattanooga— Opposes proposal of Allen B. DuMont Laboratories, New York, to remove vhf channel from Chattanooga. (Loucks, Zias, Young & Jansky.) WDOD Broadcasting Corp., Chattanooga (WDOD)— Opposes pro- posal of Allen B. DuMont Laboratories Inc., New York, to reduce number of vhf channels in Chattanooga. (Dow, Lohnes & Albertson.) WJHL Inc., Johnson City (WJHL) — Opposes proposals of: (1) Radio Athens Inc., Athens, Ga., to assign Channel 11 to Athens. (2) Allen B. DuMont Laboratories Inc., New York, to assign 5 to Johnson City in lieu of 11. (Haley, McKenna & Wilkinson.) Capitol Broadcasting Co., Nashville (WKDA) — Opposes proposal of WHUB Inc., Cookeville, Tenn., to assign Channel 5 to Cookeville. (Segal, Smith & Hennessey.) WSM Inc., Nashville (WSM & WSM-TV) — Opposes proposal of Allen B. DuMont Laboratories Inc., New York, N. Y., because co-channel and adjacent-channel separation is less than PCC’s proposals. (Caldwell-Rollo-Russell.) TEXAS Lufkin Amusement Co., Beaumont — Opposes proposals of: (1) KTRH Broadactsing Co. and Shamrock Broadcasting Co., Hous- ton, to assign Channel 12 in lieu of 4 to Beaumont-Port Arthur, 4 in lieu of 11 to Galveston, 5 to Houston. (2) Allen B. DuMont Laboratories Inc., New York, to assign Channel 13 in lieu of 6 to Beaumont-Port Arthur, 4 to Monroe, La. (3) South Texas Television Co., Houston, to assign 12 in lieu of 4 to Beaumont- Port Arthur, 4 in lieu of 11 to Galveston, 5 to Houston. (Barnes & Neilson.) Oil Belt Television Co., Breckenridge — Opposes proposal of Trinity Broadcasting Co., Oak Cliff, Tex., to assign Channel 7 to Dallas. (P. W. Seward.) Brownsville Broadcasting Co., Brownsville (KBOR)— Opposes pro- posals of Harbenito Broadcasting Co., Harlingen, Tex., McAllen Television Co., McAllen, Tex., and Taylor Radio & Television Corp., Weslaco, Tex., to delete Channel 4 or 5 or both from Brownsville. (Fisher, Wayland, Duvall & Southmayd.) Corpus Chrisli Broadcasting Co. Inc., Corpus Christi (KSIX)— Opposes proposals of FCC to delete Channels 3 & 8 from Corpus Christi. (Fisher, Wood & Burney, Corpus Christi.) 5 Houston Post Co., Houston (KPRC & KPRC-TV) — Opposes pro- posals for mileage separation on Channels 2 thru 6 and 7 thru 13 made by Loyola U. New Orleans; KTRH Broadcasting Co., Sham- rock Broadcasting Co. and South Texas Television Co.. Houston; WMPS Inc. and WREC Broadcasting Service, Memphis; Harbenito Broadcasting Co. Inc., Harlingen, Tex.; Lamar Life Insurance Co., Jackson, Miss.; Taylor Radio & Television Corp., Weslaco, Tex.; Red River Valley Publishing Co., Sherman. Tex., and Allen B. EhiMont Laboratories Inc., New York. (Frank W. Wozencraft.) South Texas Television Co., Houston— Opposes proposal of Allen B. DuMont Laboratories. New York, for adding only one channel to Houston. (Segal, Smith & Hennessey.) East Texas Television Co., Longview— Opposes proposals of Radio Station KFRO, Longview, to assign Channel 12 to Longview, 10 In lieu of 12 to Shreveport, La., 5 In lieu of 10 to El Dorado, Ark. and 32 and 38 to Gilmer or Tatum from Longview. (Johnson Bohannon, Prescott & Abney.) Julius M. Gordon & Associates Inc., Lufkin — Opposes proposals of: (1) East Texas Television Co.. Longview, Tex., to substitute Channel 10 for 9 in Lufkin, move 9 to Longview (2) Trinity Broadcasting Corp., Oak Cliff, Tex., to substitute 5 for 9 in Luf- kin. (Barnes & Nellson.) JIcAllen Trfevision Co., McAllen— Opposes proposals of Taylor Radio & Television Corp., Weslaco. Tex., to assign Channel 2 to Weslaco and to Saltillo, Mex. from Monterey, Mex., and assign 4 & 5 to WiMlaco-Harlingen from Brownsville, Tex. (Johnson Bohannon, Prescott & Abney, Dallas.) ^ Trinity Broadcasting Corp., Oak CUff (Dallas) (KLIF)— Onnoses *1^0 Corp., Dallas, favoring assignment of Channel 8 to Dallas. (2) East Texas Television Co., Long- .assign 9 to Longview and 10 to Lufkin. (3) KFBI Inc and T^lor Radio & Telivlsion Corp., Wichita, Kan., to assign Wichita Falls. (4) KTRH Broadcasting Co.. Shamrock Broadcasting Co. and South Texas Television Co., Houston, to assign 5 and 10 to Houston. (5) Red River Valley Broadcast- ing corp., Shennan, to assign 10 to Sherman-Denison. (6) Stephens County Broadcasting Co., Breckenridge, to assign 7 to Breckenridge. (7) Allen B. DuMont Laboratories Inc., New York, only if adopted in part, adversely affecting Dallas. (Cohn & Marks.) Texas State Network Inc., San Antonio (KABC)— Opposes pro- posal of Lack’s Stores Inc., Victoria, Tex., to assign Channel 12 to Victoria. (Eugene L. Burke.) Walmac Co., San Antonio (KMAC) — Opposes proposal of Lack's Stores Inc., Victoria, Tex., to move Channel 12 from San Antonio to Victoria. (Dow, Lohnes & Albertson.) Red River Valley Broadcasting Corp., Sherman (KRRV)— Opposes proposal of Allen B. DuMont Laboratories, New York, for failure to provide vhf channel to Sherman area. (Fisher, Wayland, Duvall & Southmayd.) Red River Valley Publishing Co.. Sherman— Opposes proposals of Allen B. DuMont Laboratories Inc., New York, on grounds it as- signs no vhf channel to Sherman-Denison. (Fisher, Wayland, Duval & Southmayd.) Sherman Television Co., Sherman — Opposes proposals of Radio Station KFRO, Longview, to assign Channel 12 to Longview. (Johnson, Bohannon, Prescott & Abney.) Bell Broadcasting Co., Temple (KTEIM) — Opposes proposal of Allen B. DuMont Laboratories, New York, for failure to provide vhf channel to Temple. (Fisher, Wayland, Duvall & Southmayd.) Lucille Ross Buford, Tyler (KGKB) — Opposes proposal of Trinity Broadcasting Co., Oak Cliff (Dallas), Tex., to assign Channel 8 to Tyler in lieu of 7. (Haley, McKenna & Wilkinson.) Lacks Stores Inc., Victoria — Opposes proposal of Allen B. DuMont Laboratories Inc. in failing to assign vhf channel to Victoria. (Cohn & Marks.) Texoma Broadcasting Co., Wichita Falls (KTRN)— Opposes pro- posal of Allen B. DuMont Laboratories Inc., New York, to delete Channel 3 from Wichita Falls and assign it to Lawton, Okla. (Eugene L. Burke.) Wichtex Radio & Television Co., Wichita Falls (KFDX) — Opposes proposals of: (1) KFBI Inc. and Taylor Radio & Television Corp., Wichita, Kan., to assign Channel 11 to Wichita Falls in lieu of 3. (2) Allen B. DuMont Laboratories Inc., New York, to delete 3 from Wichita Falls. (Samuels, Brown, Herman & Scott, Wichita Falls.) UTAH Salt Lake City Broadcasting Co. Inc., Salt Lake City (KALL) — Op- poses proposals of Uncompaghre Broadcasting Co., Montrose, Colo.; Eastern Utah Broadcasting Co., Price, Utah, and Oquirrh Radio & Television Co., Tooele, Utah, to assign Channel 2 to Tooele. (Haley, McKenna & Wilkinson.) Uintah Broadcasting Co., Vernal (KJAM) — Same as Northwestern Colorado Broadcasting Co., Craig, Colo. (Paul L. Badger.) VIRGINIA Appalachian Broadcasting Corp., Bristol (WCYB) — Opposes pro- posals of Allen B. DuMont Laboratories Inc., New York, to de- lete Channel 5 from Bristol, Tenn. (Fly, Shuebruk & Blume.) Beachview Broadcasting Co., Norfolk — Opposes proposals of Hamp- ton Roads Broadcasting Corp. to assign Channel 2 to Norfolk in lieu of 12. (Irving M. Kipnes.) Commonwealth Broadcasting Corp., Norfolk (WLOW) — Opposes proposal of Hampton Roads Broadcasting Corp. to substitute uhf channel for vhf In Norfolk. (Jack J. Siegel.) Louis H. Peterson, Petersburg (WSSV) — Opposes proposals of fol- lowing to assign Channel 8 to respective cities, unless other- wise indicated: Larus & Brother Co., Richmond Newspapers Inc., Richmond; Radio Station WCHV, Charlottesville; Allen B. DuMont Laboratories Inc., New York (to Norfolk). (Cohn & Marks.) Havens & Martin Inc., Richmond (WMBG & WTVR) — Opposes proposals of; (1) Radio Virginia Inc., Richmond, and Radio Kentucky Inc., Louisville, to limit vhf power, hold up construc- tion until allocation plan is final, institute time-sharing ar- rangements, require return of applications now on file and establishment of new cut-off date for filings. (2) Allen B. DuMont Laboratories Inc., New York, Winston-Salem Broad- casting Co. and Piedmont Publishing Co., Winston-Salem, to assign Channel 6 to Winston-Salem. (Fletcher & Midlen.) WASHINGTON KVOS Inc., Bellingham (KVOS)— Opposes proposals of: (1) Fisher's Blend Station Inc., Totem Broadcasters Inc. and Queen City Broadcasting Co., Seattle, to assign Channel 2 to Seattle and 3 to Victoria, B. C. (2) Allen B. DuMont Laboratories Inc., New York, to assign 3 to Victoria and 12 to Vancouver, B. C. (3) Twin City Broadcasting Corp., Longview, Wash., to assign 2 to Vancouver, B. C. (Haley, McKenna & Wilkinson.) Fishers Blend Station Inc., Seattle (KOMO)— Opposes proposals of: (1) Twin City Broadcasting Corp., Longview, Wash., to assign Channel 2 to Longview. (2) KVOS Inc., Bellingham, Wash., to add 12 to Bellingham, substituting 3 for 12 in Chilli- wack, B. C. (Fisher, Wayland, Duvall & Southmayd.) KING Broadcasting Co., Seattle (KING & KING-TV) — Opposes proposals of: (1) Twin City Broadcasting Corp., Longview, Wash., to assign Channel 6 to Victoria, B. C. (2) Central Wila- mette Broadcasting Co., Albany, Ore., to assign 5 to Salem, Ore. (Haley, McKenna & Wilkinson.) Tribune Publishing Co., Tacoma (KTNT-FM)— Opposes proposal of Tom Olsen, Olympia, Wash., to delete Channel 11 from Tacoma. (Dow, Lohnes & Albertson.) WEST VIRGINIA Clarksburg Broadcasting Corp., Clarksburg (WPDX) — Opposes pro- posal of Ohio State U to assign Channel 12 to Columbus, O., from Clarksburg. (Mechlin, Marshall & Smith.) Ohio Valley Broadcasting Corp., Clarksburg (WBLK) — Opposes pro- posals of following to assign Channel 12 to respective cities unless otherwise indicated: Southeastern Ohio Broadcasting System Inc., Zanesville. O.; Shenandoah Valley Broadcasting Corp., Harrisonburg, Va. (to Zanesville); Ohio State U. Columbus, O. (Cohn & Marks.) Greater Huntington Radio Corp., Huntington (WHTN) — Opposes posals of: (1) Ohio State U, Columbus, to assign Channel 12 to Columbus and delete 13 from Huntington. (2) Allen B. DuMont Laboratories. New York, to assign 9, 49, 52 & 65 to Huntington in lieu of 8, 13 & 53. (Loucks, Zlas, Young & Jansky.) Community Broadcasting Inc., WTieeling (WKWK) — Opposes pro- posals of Washington Broadcasting Co.. Washington, Pa.; Alle- gheny Broadcasting Corp., Pittsburgh Radio Supply House Inc., WCAE Inc., Westlnghouse Radio Stations Inc., Pittsburgh. Pa., and Allen B. DuMont Laboratories Inc., New York — insofar as they would delete Channels 7 & 9 from Wheeling. (Pierson & Ball.) Fort Industry Co., Wheeling (WWVA) — Opposes proposals of: (1) Washington Broadcasting Co.. Washington, Pa., to assign Chan- nel 63 to Wheeling in lieu of 9. (2) WSTV Inc., Steubenville. O., to assign 7 or 9 to Steubenville from Wheeling. (3) Allen B. DuMont Laboratories, New York, to delete 7 & 9 from Wheeling, as well as entire DuMont allocation proposal. (4) Allegheny Broadcasting Co., Pittsburgh Radio Supply House, WCAE Inc., Westlnghouse Radio Stations Inc., Pittsburgh, to assign 9 to Pittsburgh from Wheeling. (Dow, Lohnes & Albertson.) Williamson Broadcasting Corp., Williamson (WBTH) — Opposes pro- posal of Allen B. DuMont Laboratories Inc., New York, to sub- stitute Channel 60 for 17 in Williamson. (Fletcher & Midlen.) WISCONSIN Green Bay Newspaper Co., Green Bay (WJPG) — Opposes proposals of following to assign Channel 6 to respective cities: Milwaukee Broadcasting Co., Wisconsin Broadcasting System, Hearst Radio Inc., Milwaukee; Music Broadcasting Co., (jrand Rapids, Mich. Also opposes proposals of Columbia Broadcasting System, New York, to assign 13 to Chicago. (Roberts & Mclnnis.) Booth Radio & Television Stations Inc., Milwaukee (WJLB, Detroit) — Opposes proposal of Columbia Broadcasting System Inc., New York, to assign Channel 13 to Chicago without increasing num- ber of vhf channels in Milwaukee. (Caldwell-Rollo-Russell.) City of Milwaukee — Opposes proposal of Wisconsin Broadcasting System and Hearst Radio Inc., Milwaukee, to reserve uhf channel for educational use in lieu of 10. (Walter J. Mattison, city attorney.) Hearst Radio Inc., Milwaukee (WTSN) — Opposes proposals of: (1) Quad City Broadcasting Corp., Moline, 111., to assign Channel 10 to Grand Rapids. (2) Columbia Broadcasting System to replace 12 with 6 in Milwaukee. (3) Music Broadcasting Co., Grand Rapids, Mich., to move 6 to Grand Rapids. (Dempsey & Koplo- vitz.) The Journal Co., Milwaukee (WTMJ & WTMJ-TV) — Requests op- portunity to participate in hearings to protect self against pos- sible adverse implications of proposals by Quad-City Broadcast- ing Corp.. Moline, 111., and Allen B. DuMont Laboratories, New York. (Hogan & Hartson.) 6 June 23, 1951 Supplement No. 72-C Addenda to DIGESTS OF OPPOSITIONS TO COMMJTS ON TV ALLOCATION PLAN Hearing Scheduled before FCC Starting July 9, 1951: Docket 8736 Note; Digests of oppositions listed below are in addition to those published in Supplement No. 72-B, June 16, 1951o i Inco, San Francisco, Cal. (KSFQ and TV station KPIX) -- Opposes proposals of; (1) KARM, George Harm Station, and McClatchy Broadcasting Co., Fresno, Cal,, to assign Channel 5 to 3no» (2) Television California, San Francisco, and Columbia Broadcasting System, New York, issign 6 to Stockton. (Fly, Shuebruk & Blume) 3-Journal Corp. , Daytona Beach, Fla. (V<1ID3) — Opposes proposals of; (1) City of Jackson- L.e| Isle of Dreams Broadcasting Corp, and WKaT Inc., liiami; Central Florida Broadcasting , Orlando, to substitute Channel 11 for 2 in Daytona Beach. (2) Allen B. Duiiont Labora- .es, New York, to substitute 13 for 2 in Daytona Beach. )den°Hampshire Corp., Holyoke, Mass. (VIHYN) ■— Opposes proposals of; (1) Travelers Broad- wing Service Corp., Hartford, Conn., to assign Channel 3 to Hartford from New London, Conn. lC to Hartford from Providence, R.I. (2) Hartford Times Inc., Hartford, to assign 3 to wford from New London. (3) Greylock Broadcasting Co., Pittsfield, Mass., to assign 12 to '.ester. Mass, from New London. (4) WTAG Inc., Y.'orcester, to assign 12 to ’Worcester from ridence. (5) Columbia Broadcasting System, New York, to assign 10 to Albany, 8 to Portland , from Lewiston, Me., 3 to Calais, Me., 11 to Providence, (6) Brockway Co,, Watertown, to assign 8 to Montreal-Verdun, Quebec. (7) Allen B. DuMont Laboratories Inc., N.Y. tc .gn only uhf channels to Springfield-Holj’-oke. (8) Outlet Co. and Cheriy & Webb Broadcast- Co., Providence; Thames Broadcasting Corp., New London, Conn,, all of which approved FCC )osed allocation plan, (Bingham, Collins, Porter & Kistler) .an Broadcasting Co., Adrian, Mich. (WABJ ) ^ — Opposes proposal of Wayne U and Detroit Board Mucation to delete Channel 11 from Toledo. (Arnold, Fortas & Porter) )it Corp. 9 Flint, Mich. (WFDF) — Opposes proposal of Michigan State College, E. Lansing, issign Channel 10 to S. Lansing, (Dempsey & Koplovitz) (•Continent Radio-Television Inc», Minneapolis, Minn, (WTCN & WTCN-TV) ■— Opposes proposal lorthwest Broadcasting Co., Ft. Dodge, la,, to assign Channel 4 to Ft. Dodge, substitute )r 4 in Sioux City, la. (Fly, Shuebruk & Blume) ;st Capital Broadcasting Co., Lufkin, Tex. (KTRE) — Opposes proposal of East Texas svision Co. Longview, Tex., to assign Channel 9 to Longview, substituting 10 for 9 at dn, (Cohn & Marks) ■City Broadcasting Co. , Wheeling, W, Va. (WTRF) — Opposes proposals of; (1) Allegheny idcasting Corp., WCAE Inc,, Westinghouse Radio Stations Inc. and Pittsburgh Radio Supply !e, Pittsburgh, to move Channel 9 from Viheeling to Pittsburgh, (2) Allen B. DuMont >ratories. New York, to substitute 18, 39, 43 & 63 for 7, 9 & 57 in ViJheeling. (3) dngton Broadcasting Co., Washington, Pa,, to interchange 9 & 63 between Washington Wheeling. (4) VvSTV Inc., Steubenville, 0., to assign 7 or 9 to Steubenville. (Barnes I Neils on) nna Broadcasting Co., Madison, Wis. (WKOW) =■= Opposes proposal of Radio Wisconsin Inc., I.son, to move all commercial W to uhf. (Fly, Shuebruk & Blume) - end - LhArvH^f'fi^i^Awii-W*' /^ '4rW-i«^Artrt>;'*<^,vfa AKA»4rt^ t‘ . aao^d^ ;-^ANii»J«qa ■M'S y • a « rx I » w>i^ ' VWA . V aU ^ *• Wl»^ i ^UA^ )«7 « ifl^ wvxSu.ffiitt: . I Vl ' X^t^Q^viq -WK^'J oJ A Xsnnxwior WPiti4*vi‘'<«| lft«., «*J» r^M'^K/* a^Ati<^ ,-i i— i-wr,* .Ji»3. 3iS?*«<^on'‘ V. flfc»'(-fi^‘>’H>^ (t ^fi U ■ * CXV 'istfl^fii&q&Ki saiiSqqO ,-^ iirtgfwdte^;f»6*5^ »:r ' ‘ V»^oX ^4/iooftXll oib^i^Q Xasogoiq aoeoggO ^ flc ” ^ t[aflu/XS i*’ )iy*id® jjiie , i y;Xt * , o4 m.'. . ,; '> , f- - 11 - MobilizstiSE^ ^cies: Controlled Materials Plan rules on inventories and distributors’ sales (Regs. 2 & 4) were is- sued May 10 by NPA. Reg. 2 generally limits steel in- ventories to 45 days’ supply, copper and aluminum to 60 days’ supply. Reg. 4 requires distributors to accept all orders bearing CMP allotment numbers or DO ratings. Application foi-m CMP-4A for manufacturers of military items and machinery not on “B” list (Vol. 7:18) is now being mailed to manufacturers. NPA has issued Product Assignment Directory, listing 13,000 items and indicat- ing in each case the NPA industry division assigned to the product for purposes of CMP and limitation orders. Also issued by NPA, and being mailed to all firms who are ex- pected to operate under CMP, is brief non-technical book- let, ABC’s of CMP. All of this CMP material will soon be available from Commerce Dept, field offices, and can be obtained now from NPA, Washington 25, D. C. Only one of 90 certificates for rapid tax amortization of new production facilities granted by DPA April 27-May 3 went to manufacturer of electronic products. Collins Radio was issued certificate for 5-year writeoff of 80% of $77,382 in new Arcadia, Cal. facilities for production of radio units. The 90 certificates represented expansion costing $291,112,376. Total certificates issued through April 13 covered expansion valued at $3.25 billion, vast majority for production and processing of basic materials. Elec- tronic and electrical production facilities represented about 1% of this amount, or $32,800,000. Nickel is so critical that NPA has ordered Interna- tional Nickel Co., sole supplier, not to furnish during May more than 60% of nickel called for in any defense-rated (DO) order, or more than 15% of monthly average first- half 1950 consumption to civilian users. This directive doesn’t apply to receiving tube industry, to which 200,000 lb. of nickel was allocated for May, 180,000 for June — close to 75% of the industry’s first-half 1950 average monthly i-ate of use. Allotment is for both military and civilian tubes, and comparative size of tube industry’s ration indicates how vital NPA regards electronic industry. To help relieve copper shortage, Congress this week passed bill to suspend 2 parent Hytron was recently purchased by CBS (Vol. 7:15) Company quotes lowest pz'ice yet, $29.95 including antenna says it will have units ready when uhf stations are on air More May 1 sets-in-use reported since NBC Research’ “census” of April 1 (Vol. 7:17): Los Angeles 1,038,750, uj 138,750; St. Louis 289,000, up 7000; Kansas City 118,528 up 3523; Omaha 77,415, up 4615. Copies of Digests of Comments Included herewith, for all full-serwice subscribers, is our 8-page Digests of Comments on Proposed TV .Allocation Plan (Supplement No. 72). Extra copies of this report, containing digests and listings of all commercial, educational and municipal comments, are available at .$2, or $1 in ((Uantities of 25 tir more. mm cooEL's ^UTNORITATIVI NfWS SfRVICf >f TNI ntUAl MOAOCASTINO lITt AND INDUtm WITH AM/FU RIPORTS UHKNEO WKKIY lY RADIO NEWS MJREAU, 1519 CONNEaKUT AVE. N.W.. WASHINCTON 6. D.C TEUPHONE MICNI6AN 2020 • VOL. 7, NO. 20 May 19, 1951 iCoast-to-Coast Hookups by Year’s End, page 1. After Effects of ABC-CBS Deals, p>age 1. Freeze-End Horizon Grows Bleaker, page 3. Broadcast Construction Can Continue, page U. Financial & Trade Notes, page 7. New Metal Curbs Presage Set Shortages, 2jar/c S. Trade Up Slightly, Plenty Yet To Do, page 8. Mobilization Notes, jmge 11. COAST-TO-COAST HOOKUPS BY YEAR'S END: Exactly when transcontinental TV will become reality, is indeterminate at this moment — except that it should be sometime before end of this year, possibly in time to pipe World Series in October to 3 of the Pacific Coast cities having stations: San Francisco, Los Angeles, San Diego. Inquiry at AT&T discloses only that Omaha-Denver-Salt Lake-San Francisco ' microwave extensions of present hookups east of Omaha will be in operation for phone service by late August. After that, technical installations will determine addition j of two-way TV circuits, which could thus be linked into present San Francisco-Los . Angeles microwave hookup. ’ San Diego gets service off air from Los Angeles. Nothing has been decided ■ about hooking up San Francisco-Seattle , though there is a coaxial out of Sacramento j for phone service to Seattle which could be modified for TV. jj Besides this week's additions of microwave circuits between Columbus -Dayton i- and Dayton-Cincinnati (Vol. 7:18), phone company this year plans more microwaves *1 into Southwest, is considering Kansas City-Wichita-Oklahoma City-Tulsa-Ft . Worth- ! Dallas-Austin-San Antonio links (Vol. 7:6) — but primarily for phone use. 'j’l Rest of this year, aside from coast-to-coast interconnection, AT&T plans [I only the Memphis-Birmingham-Atlanta coaxial extension, via Jackson, Miss., due for i- completion in October and providing second circuit for Birmingham and Atlanta, each now with 2 stations and already linked via Charlotte-Jacksonville. Next year, addi- j tional Rochester-Syracuse and Charlotte-Atlanta circuits are scheduled by spring “j plus Jackson-New Orleans by fall. «| AFTER EFFECTS OF ABC-CBS DEALS: By_ their pro.jected "sale and re-sale" deals (Vol. 7:18-19), which came to naught, ABC & CBS have thrown sharper focus on these trends : (1) Value of TV franchises enormously enhanced — not only by their profit potential but by willingness of such traditionally smart operators as CBS to go to such great lengths to obtain outlets. Channels now held will be held more tightly than ever, or for huge prices, and those sought when FCC thaws freeze will be sought more eagerly than ever. (2) Value of radio properties, including ABC's, further depreciated — the manifest result of tacit and expressed admission that TV is so important. Even more than ABC-CBS negotiations, the reductions in radio network rates are contributing to such depreciation of AM values. ABC this week followed lead of CBS and NBC (Vol. 7:15 et 15% radio network rate cuts effective July 1 (see p. 12). This curtailed income from that source, while TV revenues climb. * sj: seq) by announcing inevitably means ABC Chairman Noble's explanation of deals is contained in statement issued May 16 and published in full on page 7. This is all that affiliates and sponsors, as well as press, were told. It implies all deals are off — and "it means what it says," according to an ABC spokesman. None the less, the trade is utterly convinced that ABC will be sold sooner Copyright 1951 by Radio News BXire«u - 2 - or later. Some even saw significance in fact United Paramount's president Leonard Goldenson used word "suspended" when telling stockholders meeting this week about his company's negotiations with Noble. Nor is it secret that CBS and ABC initiated talks with other prospective customers, notably the O'Neil and Storer interests, to say nothing of IT&T, and that many ABC employes and affiliates are still quite bitter. Said one ma.ior affiliate, who operates both AM and TV outlets ; "We ought to be flattered, I suppose, by the very high value placed on our properties by our worthy competitors, but for my money these proposed deals have taken a year off the life of ABC. And the network radio rate cuts are a forewarning of what can happen to radio stations. It all goes to show how we and the networks can love each other today and grow to hate each other tomorrow." * * * ♦ There's scant doubt that all radio networks, in pulling down rates, face increasing difficulty in clearing time on their affiliated stations. Some ABC affiliates took their troubles, particularly the "merger" stories, to their Senators and Congressmen, and several threatened to sue if deals went through, though principals took pains to make clear all deals were predicated on continuing ABC networks — CBS's purpose being mainly to get some of its TV outlets. Another boomerang effect may be new opposition in Washington to network ownership of stations, either AM or TV — and some talk about that is already heard. FCC has limited any one entity to 5 TV stations (which only ABC and NBC now have) and custom (and proposed FCC rule) limits AMs to 7 (CBS has 7, NBC 6, ABC 5). If networks were deprived of own stations, which could be done only by act of Congress, they would rightly argue there would be less, not more network service. Their balance sheets, they say, show profits come largely from station and not net- work operations. That will be more true of TV even than AM because interconnection charges are so much higher for TV. The political dangers are great, nevertheless, and the networks have always been very sensitive to what FCC and Congress say. There have been a few outbursts in Congress on score of "monopoly" and "merger" as result of CBS-ABC negotiations. ♦ # * * What CBS will do next is subject of much conjecture, but it's common gossip that it has shopped strenuously for key TV stations to add to the 2 it owns plus 45% interest in third. One big city newspaper station is said to have quoted, no doubt facetiously, a SlO.OOO.OOO asking price! CBS is bound to go after new station grants in post-freeze hearings, and it's even conceivable that it will become one of the most earnest protagonists of uhf. May 19 Variety, without indicating source, quotes what it calls "extremely conservative estimates" of the worth of ABC's TV and AM stations, not taking into account "foreseeable potential and other important facts". The TV station figures are shown as; WJZ-TV, New York, §5,000,000; WENR-TV, Chicago, §1,000,000; WXYZ-TV, Detroit, §2,500,000; KECA-TV, Los Angeles, §1,500,000; KGO-TV, San Francisco, §1,250,000; total for 5 TV stations $11,250,000. And the AM station quotations; WJZ, §2,000,000; WENR, §500,000 (ABC has only half-time on its channel); WXYZ, §750,000; KECA, §1,000,000; KGO, §1,000,000; total radio station valuation $5,250,000. (No reason is given for low WENR-TV estimate.) Thus, worth of TV and AM stations alone would aggregate $16,500,000. In the CBS negotiations, purchase price of whole package was indicated as §26-28,000,000. ^ ^ ^ ^ ABC earnings statements have been unimpressive lately, explained as due to huge TV costs. This week, first quarter profits after taxes went up to $222,000, or 130 a share on 1,689,017 shares of common outstanding (of which Mr. Noble owns some 53%). This compares with §93,000 (50) for same 1950 quarter — but for all 1950 the net profit figure was only $85,605 on gross operating income of §45,879,660. Noble's May 16 statement speaks of annual business of "about §65,000,000." In 1949, ABC ran deficit of S519,085 on gross sales of $40,267,488; in 1948 profit was $468,676 on $37,110,726, and in 1947 profit was $753,911 on $35,955,004. At end of 1950, earned surplus was $3,627,559. FIB figures for 1950, covering only network income, show ABC radio billings of $35.124,625, TV $6,470,510 — total of about $41,600,000, which might indicate owned and operated stations, both AM and TV, accounted for only slightly more than $4,000,000. That figure is probably low, however, since FIB network figures cover gross billings. Station prof it-and-loss figures aren't revealed by any network, but with very few exceptions their AM and TV stations are reputed to be good earners. FREEZE-END HORIZON GROWING RLEAKER: Confronted with an avalanche of comments on its proposed allocations (Vol. 7:19), FCC could do no less than grant more time in ever- lengthening end-of-freeze procedures — so as to give its own staff as well as in- terested parties chance to mull the comments, which reached final total of 645. [Supplement No. 72-A, herewith, completes our digests of all comments.] Big allocation hearing was moved forward about month — to start July 9 — and deadline for oppositions was extended to June 11. That means you can add at least one more month to our calendar of probable times when new TV stations can get on the air (Vol. 7:17). It's still good guess ' first few won't make it before mid-1952. And if applicants come in droves, as indi- : cated, it may be well into 1953 before any sizable market areas get new outlets. I What worries the industry far more than this delay are other factors augur- ' ing added years rather than months to freeze now approaching end of its third year: * * * (1) Legality of FCC's procedures. More and more lawyers are beginning to ! take it for granted that someone will hail Commission into courts. Regardless who wins in courts, such appeals always take months if not years. Commission must have known risks it was taking, radio attorneys say, but I they find it incomprehensible FCC didn't try to clear legal air 3 years ago when : Communications Bar Assn, asked for oral argument on exactly same issue it now poses — whether fixed city-by-city channels can be laid down in rules, changeable only via the devious and laborious rule-making process. They oppose fixed assignments, think allocations should be based on demand. Commission is apparently bent on making this latest allocation plan stick — as is. Commission counsel have long been cocky about luck in courts, though that Ji attitude may have been somewhat shaken by industry's success in getting color case as far as Supreme Court. And, this week. District of Columbia Court of Appeals ^ indicated that it's very meticulous about seeing that everyone gets a fair shake, i During oral argument on WJAX-City of Jacksonville's request FCC be enjoined . from moving Channel 2 out of city (Vol. 7:19), Chief Judge Stephens seemed dubious : whether city was getting full "due process" hearing before FCC, as required by the Administrative Frocedures Act. Court came up with idea that made injunction unnec- i essary, doesn't tie up allocation plan: Last year, FCC took CF for WJAX-TV away from City of Jacksonville, denying , it more time for construction (Vol. 6:41). City appealed FCC action to Court of : Appeals. After this week's oral argument. Court decided it will try to get out its i decision, on city's appeal to recapture CF, before allocation plan becomes final. ‘ Thus, city will know whether it has a CF to protect — before allocation is frozen. (2) Congress . Sen. Benton is working hard, seeking support for his resolu- I tion to study educational TV (Vol. 7:15-18.) This week, he made another long speech !: in. Senate contending that 6-12 months' delay, if necessary, is small price to pay ; for proper treatment of educational TV. Commercial interests are of one accord in bucking educational channel reser- vations worked into allocation plan by Comr. Frieda Hennock, and there are indica- tions quite a few members of Congress don't like that approach either since so few ) educational institutions are financially equipped to run own expensive TV plants. I Sen. Benton, once an adman (Benton & Bowles), once vice president of U of - 4 - Chicago, has a lot of ideas for getting more public service into TV. According to his assistant John Howe, who used to run the U of Chicago Round Table broadcasts, he's exploring such avenues as; (a) Creation of a national advisory committee to assist Congress and FCC. (b) Resolution requiring FCC to finalize current reservation proposal. (c) Federal grants-in-aid for educational TV stations. (d) Legislation spelling out "public interest," making applicants "stick to promises" when they get stations, (e) Setting aside of choice time for "public service" by commercial licensees. Sen. Johnson is obviously beginning to get stirred up about allocations. He has indicated doubts about educational reservations and criticized "lack of flexi- bility" in FCC's plan (Vol. 7:18-19). And, nagged by constituents, particularly from his own Denver, biggest non-TV city in the country, he appears to be getting somewhat weary of the freeze himself. * * * * Whether oft-suggested "partial" lifting of freeze will be effected, isn't yet indicated by FCC. Guessing is it will say "no can do" — except maybe for grants in Territories, though nobody has yet applied from Hawaii, Alaska, Porto Rico. But chances for vhf station power increases and new uhf stations "soon" appear slim. Some stations may offer to assume risk, however, and ask FCC for temporary authorization of high power immediately where interference wouldn't be increased. ^ ^ DuMont is striving mightily to convince everyone that its allocation — a complete substitute for FCC's (Vol. 7:18-19) — is not only more realistic but more efficient. It's based on population density, probable economic support. DuMont demonstrated its "light map" at New York press conference May 17 to give graphic illustration of such contentions as these: (a) Its plan supplies 575 cities with 655 vhf stations, compared with FCC's 342 cities, 557 stations. (b) It gives 4 or more vhf channels to 47 cities, compared with FCC's 18 cities. In north- east U.S., it provides 598 uhf assignments, compared with 537 in FCC plan. DuMont plans Washington demonstration, in week or so, for consulting engi- neers and attorneys. After analyzing our digests of allocation comments (Supp. 72), DuMont research v.p. Thomas Goldsmith ventures that his company's plan would satisfy "vast majority" of requests for vhf channel shifts and additions. BROADCAST CONSTRUCTION CAN CONTINUE: ^ cond-week sizeup of NPA order M-4 regulating all construction (Vol. 7:19), as it applies to broadcast station building: Despite confusion over errors in wording of order, mistakes in interpreta- tion, despite fact that specific criteria haven't been worked out yet, all respon- sible sources we've contacted indicate that — (1) Govt, considers present and prospective TV-radio broadcast facilities essential to national defense. (2) Holder of FCC construction permit, as general rule, will receive NPA authorization to build if his plans for use of steel aren't too grandiose. (3) NPA authorization system will actually help broadcasters get building materials when Controlled Materials Plan begins working smoothly (by late fall). Order M-4 requires NPA authorization for practically all building. That's all it does. It doesn't ban station construction. :jc sjc Aside from general criteria of community necessity and essentiality to de- fense, specific principles to be applied in considering applications to build new broadcast facilities are being worked out by NPA's Construction Controls and Elec- tronics Divisions in consultation with FCC. Specifications will probably limit amount of money to be spent and tonnage of steel to be used in building stations. Construction Controls Div. administers order, issues authorizations. Elec- tronics Div. is "claimant" , or spokesman, for broadcasters. As such, its job is to see that broadcasters' case is adequately presented to other NPA divisions in charge of materials for manufacture and maintenance of equipment, as well as construction. 6 ‘- Electronics Div. has prepared third quarter "program" for construction of new broadcast stations under Controlled Materials Plan — meaning it has put in re- quest for materials it expects new stations to require. It did this after checking at FCC. Broadcasting program has been tentatively approved by DPA for allocation of materials — and approyal carries goyt. stamp of essentiality. This claimant function would normally be duty of FCC; in fact, some within FCC haye complained because NPA didn't take initiatiye in consulting them before blanketing TV-radio stations into construction order. Fact is, howeyer, that FCC Chairman Coy in January relinquished all rights as claimant in production program. FCC chairman was designated by Commerce Dept. Noy. 20, 1950, to serye as claimant "with respect to all communications facilities, both Govt, and private, of a civilian character not covered otherwise." But on Jan. 12, 1951, Mr. Coy wrote DPA chief Wm. Harrison that FCC couldn't implement designation as claimant. Gen. Harrison acknowledged Mr. Coy's letter Jan. 26 and designated NPA Electronics Div. as claimant for broadcasters. Although FCC is being consulted on standards, it is NPA Electronics Div. to whom prospective broadcaster should look for help in getting approval of construc- tion plans. FCC will enter picture only to extent that its grant of a CP is pre- requisite to NPA consideration of application for station construction. * t * * No one has yet applied for authorization to build a station. After specific criteria have been established, here's how authorization procedure will work: Applicant will apply on Form NPAF-24 at nearest regional NPA office, which will haye power to grant authorization. If it's denied, applicant may modify his specifications to meet NPA criteria, and resubmit them. If refused again, it's sent to Washington for reyiew. Then broadcaster's best bet is to get in touch with NPA Electronics Div. which, as his claimant, would discuss his case — acting as his spokesman — with Construction Div. If he's turned down again, he can appeal to NPA's 3-man appeals board. NPA will be lenient with broadcasters who have already bought materials to construct stations, but haven't begun building. They must file applications for adjustment or exception, showing equipment can't be resold without loss or incon- venience. Then they'll get go-ahead to build. sj: * * * Confusion aplenty is rule at NPA — and especially in Construction Diy. A mistake in phrasing of construction order — giying newspapers apparent preference oyer TV-radio stations — drev; from NARTB a demand for a conference with NPA Administrator Fleischmann. NPA general counsel's office says error was made in printing, but assures that master copy of order doesn't contain the inequity — although there's been no . public correction yet. In another case of confusion, NPA lawyers rebuffed Construction Diy. Direc- I tor Rufe Nev/man, who last week told us broadcast stations may be constructed without I NPA authorization if they use less than 25 tons of steel. That isn't so, general {counsel's office says. Tonnage exemption applies to certain other construction (categories — such as schools, hospitals, factories — but not to TV-radio. Among grants for educational radio-TV reportedly being made: Kellogg Foundation, $200,000-$250,000 to National Assn, of Educational Broadcasters for AM “tape netv/ork” facilities; Ford Foundation, $25,000 to NAEB for monitoring of TV programs in several cities. Rumor has it that $750,000-$1,000,000 grant of some sort is in the mill. Ford Foundation officials say they have no pres- ;ent plans for granting funds for station construction or ^ operation, that recent grants are to “get things going.” TV has an obligation “to attempt to lift the cultural .level of the masses [but] we cannot proceed by leaps and . bounds to an all-culture diet.” That was sizeup of educa- I tional TV by RCA chairman David Sarnoff in May 18 speech during conference on “Living in Industrial Civiliza- tion,” sponsored in Corning, N. Y. by Corning Glass Works and American Council of Learned Societies. Gen. Sarnoff pleaded for patience with young industry, saying medium shouldn’t be expected to devote itself, overnight, to pri- marily cultural projects. “I am a proud parent today,” writes inventor Lee DeForrest to May 17 New York Times. He states: “In the past I have complained bitterly about some of the uses to which ‘my children,’ radio and TV, have been put. I am delighted to see the splendid way these media were em- ployed in bringing to the public the living history of Gen- eral MacArthur’s return and subsequent discussion . . .” PsiSOnal Noies: Alexander Stronach Jr. promoted from TV program v.p. to v.p. in charge of ABC-TV, succeeding Otto B. Brandt, who goes to KING & KING-TV, Seattle (Vol. 7:19) . . . Slocum Chapin, Eastern TV sales mgr., named v.p. for ABC-TV stations, and Richard A. Moore, mgr. of KECA-TV, named acting mgr. of ABC Western Div. . . . AVayne Mason, mgr. of RCA Frequency Bureau, New York, loaned to State Dept, for 2-year hitch as Tele- communications Attache for Western Europe, to be sta- tioned in Geneva; he replaces C. W. Loeber, who has re- tui’ned to FCC . . . Comdr. Mortimer W. Loewi, director of DuMont Network, returned from Europe May 15, accom- panied by Andrew P. Jaeger film div. director ... In addi- tion to ABC vice chairman Mark Woods (Vol. 7:19), hon- orary degrees were conferred by Ithaca College May 12 on Justin Miller, NARTB, and Michael R. Hanna, gen. mgr. of Cornell’s WHCU and of Rural Radio Network . . . Man- nie Sachs, RCA v.p., named program chief for Philadel- phia’s 175th Declaration of Independence anniversary cele- bration . . . FCC Comr. George Sterling has chosen David W. Warren, Camden, Me., to be legal assistant; Warren is 1948 graduate of Boston U School of Law . . . Fred Whit- ney, ex-Altec, joins staff of Society of Motion Picture & Television Engineers to take charge of test film technical operations . . . Marshall N. Terry, ex-Crosley, back to Trailmobile Co., Cincinnati, as adv. director . . . Tony Moe, KNX sales promotion mgr., named to same post for CBS’s KTSL, Los Angeles, replacing Ralph Taylor, with Sherril Taylor coming from KSL, Salt Lake City, to take his place at KNX. Station Accounts: TV sponsorships, resulting in more beer drinking at home, are given credit by U. S. Brewers Foundation for reversal of 1947-50 downward trend in beer production — up 4% first quarter 1951 over same 1950 period. Survey shows 62% of American families now buy beer for consumption at home. Brewers are top sponsors on TV-radio, particularly of baseball and other sports (Vol. 7:13,17) . . . B. J. Roesch Co., electrical equipment manufacturer, sponsoring Inside Television on KTTV, Los Angeles, Sun. 9:15-9:30; guest experts (first was Dr. Lee DeForest, May 13) tell audience in lay language how TV works . . . Ashland Oil & Refining Co., Ashland, Ky., ex- pands into TV with Mon.-thru-Sat. newscasts plus thrice weekly General Store program on WLWT, Cincinnati, thru Byer & Bowman, Columbus . . . Lic-Rich Co., Cleve- land, soon to introduce licorice-flavored soft drink, ice cream and frozen sticks, will use TV, thru Hutchins Adv., Rochester . . . Zenith Radio, seldom user of TV or radio, preparing TV spots for local co-op use, plugging uhf tuners, thru MacFarland, Aveyard & Co., Chicago . . . Elgin-American planning to use TV for new campaign to promote Certina watches . . . Among other advertisers re- ported using or preparing to use TV : Graham Co. (Red- bow products), thru Blaine-Thompson Co. Inc., N. Y.; G. N. Coughlan Co. (DeMoist dessicant), thru A. W. Lewin Co., N. Y. ; New Netherlands Trading Corp. (Juliana cheese), thru Hilton & Riggio Inc., N. Y.; Jewel Food Stores, Dept, of Jewel Tea Co. Inc. (food products), thru Goodkind, Joice & Morgan Inc., Chicago (AVNBQ); Nesco Inc. (stain- less steel ware), thru Needham, Louis & Brorby Inc., Chi- cago; Mira-sham Corp. (chamois substitute), thru C. Wendel Muench & Co., Chicago; Scudder Food Products (peanut butter), thru Davis & Co., Los Angeles; Myers In- dustries (candies), thru Watts-Payne Adv., Dallas; Plym- outh Dealers of N. Y., thru Klores & Carter Inc., N. Y.; Packard-Bell Co. (TVs & radios), thi'u Elwood J. Robinson & Co., Los Angeles. Russell D. Valentine. 51, chief engineer of WQXR, New York, and a pioneer in amateur radio and high fidelity broadcasting, died May 15 at his home in New York. Nolwork Accounts: Pepsi-Cola, starting June 16, spon- sors Faye Emerson on CBS-TV, Sat. 9-9:30, thru Biow Co., taking time vacated by Bulova’s Frank Sinatra Show and dropping present Faye Emerson Show on ABC-TV, Mon.-Wed.-Fri. 7:15-7:30 . . . Hazel Bishop Inc. (lipstick) starting July 5, sponsors Freddy Martin’s Band of To- morrow on NBC-TV, Thu. 10-10:30, thru Raymond Spec- tor Co., as summer replacement for U. S. Tobacco’s Martin Kane, Private Eye . . . Procter & Gamble in fall will spon- sor Red Skelton on film on NBC-TV, Sun. 10-10:30, taking over period being dropped by Congoleum-Nairn’s Garro- way at Large . . . Armour & Co. considering Garroway at Large as replacement for Stars Over Hollywood, on NBC- TV, Wed. 10:30-11, starting in fall, thru Foote, Cone & Belding, Chicago; also daytime across-the-board show for Garroway . . . Lehn & Fink (Lysol, Hinds) has bought 10-10:15 portion of Doodles Weaver Show, which will re- place Saturday Night Revue during summer on NBC-TV, Sat. 10-10:30, thru Lennen & Mitchell and McCann-Erick- son, both N. Y. . . . DeSoto Div., Chrysler Corp., substi- tuting It Pays to Be Ignorant for You Bet Your Life on NBC-TV, Thu. 8-8:30, during summer, thru BBDO, N. Y. . . . Bauer & Black (surgical products) sponsorship of 5:30-6 portion of Super Circus on ABC-TV, Sun. 5-6, starts June 10, thru Leo Burnett, Chicago . . . Goodall Fabrics Inc. (Palm Beach) June 10 will sponsor Palm Beach Round Robin Championships from Wykagyl Country Club, New Rochelle, N. Y., on CBS-TV, Sun. 5-6, thru Ruthrauff & Ryan, N. Y. . . . General Foods (Sanka) replacing The Goldbergs for summer with Phil Baker handling celebrity husband-and-wife quiz show titled Who’s Whose? starting June 25 on CBS-TV, Mon. 9:30-10; sponsor has cancelled The Goldbergs, but is retaining time and will have new show in fall. Agency is Young & Rubicam, N. Y. . . . Larus & Bro Co. Inc. (Edgeworth tobacco) June 24 starts Plainclothesman on DuMont, Sat. 9:30-10, thru Warwick & Legler Inc., N. Y. AVestinghouse is currently spending $2,300,000 for its Studio One on CBS-TV, using 51 stations, as against $400,- 000 in 1949 when it used 9 stations, according to J. Gilbert Baird, appliance sales promotion mgr., in glowing report on TV advertising at joint American Television Society- Executive Sales Club May 15 meeting. Sum includes $75,000 for newspaper advertising, $50,000 for dealer pro- motions, plus unstated amount for publicity, Baird revealed. Reason why Westinghouse is happy with TV, he said, is that appliances must be demonstrated and TA’’ is best medium for that function, costing about $1.60 per thousand to reach 9,000,000 persons every week. Million dollars is National Collegiate Athletic Assn.’s asking price for sponsorship of its college football tele- cast-a-week package this fall (Vol. 7:16), w.th breweries ruled out as sponsors. May 16 Variety reports, adding that NCAA reportedly would keep 60% of take, divide remain- ing 40% among participating colleges. “Best approach yet” is NCAA reaction to formula proposed by WAVJ-TV gen. mgr. Harry Bannister: televising of second half of each Big Ten game. WPIX survey of New York area sports viewers indicates TV creates new sports enthusiasts, shows 8 out of 10 viewers who have seen major sport for first time on TV plan to attend in person, majority would rather attend than watch on TV, 37%. have actually gone out and bought tickets. Joint Committee on Educational TV has named Ralph Steetle, Louisiana State U, to replace Richard Hull as direc- tor of Washington headquarters when latter goes back to ' AVOI-TV, Ames, la., June 5. Hull has been on 2-months’ ' leave of absence. Blanche Crippen, formerly of National Education Assn., was appointed administrative assistant for program development. Sialemeni by Nr. Noble i Following collapse of negotiations for sale ^ of ABC, chairman and majority stockholder \ Edward J. Noble May 16 issued the following statement to press, affiliates and sponsors: It is pertinent that I reveal the facts relating to recent t reports of the “sale” or merger of the American Broad- ! casting Company. Over the past two years, I have fre- i quently stated that, as a representative of our stockholders, : affiliates and advertisers, I would always listen to proposals ■ that would strengthen and improve ABC and better equip our networks to serve the public. This statement remains true today. About three weeks ago, Mr. William S. Paley, Chairman of the Board of the Columbia Broadcasting System, ap- proached me, and in these discussions a merger of ABC and CBS, designed to create the strongest radio and tele- vision networks yet to be conceived, was suggested. Because of the Federal regulations prohibiting one com- pany from owning two radio or two television stations in the same city and from owning more than one radio or television network, the discussions were expanded to in- clude various other parties, who expressed desire to own I radio and television facilities that could not legally be absorbed into a combined ABC-CBS company. It soon became apparent that any such plan would ' weaken the remaining ABC radio and television networks. I This was rejected by my associates and me in the belief that the public interest would not be served. We felt that the plan was unfair to ABC advertisers, ABC affiliates and our organization who had built ABC in eight years from a small radio network of 116 stations, doing $12,000,000 of business, to a radio network of 290 stations and a tele- vision network of over 60 stations, doing an annual busi- ness of about $65,000,000. During the negotiations, as the controlling stockholder, I was offered, by an interested party other than CBS, an opportunity of selling my personal stock at $15 a share. This, I rejected, both because I would not accept an offer not available to all stockholders and because, as I have said, I have no interest in a “sell-out” which would take me away from the development of television and radio. The merger of ABC into CBS was abandoned by my associates and myself, although it was very attractive, both financially and otherwise, because the remaining ABC radio and television networks would not be as strong or have the potential of growth equal to the present set-up. Thereafter, United Paramount Theaters, Inc. proposed a merger with ABC, whereby ABC stockholders would receive United Paramount preferred stock and warrants for shares of United Paramount common stock. ABC could not accept this offer because we are interested only in a real partnership whereby ABC stockholders would share more fully in the growth of radio and television through ownership of greater amounts of equity securities and through exercise of more proportionate voting representation. My associates and I have been complimented by the recognition given the value of ABC by our competitors ■and by others who have studied the operation of our company. We will continue to operate ABC radio and ABC tele- vision and are convinced that we will continue our growth and progress and better serve the public in both fields. We have but one objective — the improvement of the posi- I tion of the American Broadcasting Company, its personnel, stockholders, affiliates and advertisers. More May 1 sets-in-use reported since NBC Research’s “census” of April 1 (Vol. 7:17) : Baltimore 297,368, up 5368; Johnstown 87,275, up 5075; New Orleans 56,364, up 1964. Cleveland total is now 470,487, up 16,487 during March and April, Bureau of Business Research, Western Reserve U reports. NBC did not have April 1 figure for Cleveland. Finandal & Trade Holes: Details of CBS-Hytron deal (Vol. 7:15) are disclosed in notice to CBS stockholders of special meeting June 13, at which CBS board will seek approval of issuance of 621,550 more shares of its stock (310,775 shares each of Class A & B) in exchange for Hytron assets. Chairman Raley’s letter to stockholders states : “We believe that, as was the case when Columbia Records Inc. was acquired some years ago, Columbia will by this transaction provide for itself a more varied source of income and greater revenues . . . We believe that the potential growth of the TV set manufacturing business is considerable and that only a small part of the possible market has been realized. We also believe that the use of the name ‘Columbia’ . . . will aid materially in the market- ing of radio and TV sets and phonographs which may be produced by Air King.” Proxy statement states the 621,550 shares of CBS stock will provide 31 shares for each 100 shares of the 2,005,000 outstanding common of Hytron, that Hytron will distribute these shares to its stockholders in “complete winding up and liquidation of Hytron” and that Hytron will change its corporate name. Hytron’s chairman Lloyd H. Coffin, president Bruce A. Coffin and v.p. David H. Cogan are to be employed for 3 years at basic compensa- tion of $50,000 per year each plus bonuses up to $50,000; their present stockholdings in Hytron are 115,886, 120,238 & 32,269 shares respectively. All 3 with Hytron director Frederick L. Chapman would be elected to CBS board. If CBS board determines and satisfactory tax ruling is obtained, the 2850 Class A and 189,750 Class B shares now in treasury of CBS may be used as part of shares to be issued and delivered to Hytron. If agreement is con- summated (assuming no Hytron stockholder demands pay- ment for his shares), there will be outstanding 1,269,203 shares of CBS Class A and 1,069,699 shares of Class B. As of May 7, notice says, there were outstanding 958,428 Class A and 758,924 Class B shares. The A & B shares ci.re identical except that holders of A, voting separately, have right to elect half the total directors. CBS chairman Wm. S. Paley owns beneficially 88,510 Class A and 223,500 Class B, or 9.23% and 29.45%, re- spectively, of those presently outstanding. On April 30, director Isaac D. Levy was reported as selling 5000 shares of B, and it’s generally believed he and family were principals in recent private sale of 35,000 shares (Vol 7:18-19). * Raytheon sales for 10 months ended March 31 amounted to about $73,000,000, profit about $2,000,000, so that earnings for fiscal year ending May 31 should equal $1.10 or $1.15 per share, compared with 49(^ in fiscal 1950. This is gist of statement by president Charles Francis Adams Jr., speaking before N. Y. Society of Security Analysts. He predicted volume of more than $100,000,000 next few years, profits of $1 to $3 per share, possible divi- dend action after next spring when govt, work hits peak. Defense backlog amounts to $100,000,000, he stated. Dividends: DuMont, 2btf quartei'ly on preferred pay- able July 1 to holders of record June 15; Hazeltine, 25«J payable June 15 to holders June 1; Aerovox, 15^ payable June 15 holders June 1; Cornell-Dubilier, 20«! on common payable June 28, $1.31 on preferred payable July 15, to holders June 20; I-T-E Circuit Breaker Co., 35^-in. traded-in TV, a radio or even a small washing machine for one cent with every purchase of a new TV. Monarch-Saphin auction drew 5000 first day, 8000 second, enjoyed brisk sales. Many attending at first were representatives of manufacturers and distributors. There were dealer complaints at first, then these faded when it became apparent auction was more in nature of promo- tion than true distress sale. Company reported it sold 7000 sets during 4-day auction. ^ ^ ^ Oscillator radiation problem (Vol. 6:37,7:4) appears well in hand, with most, if not all, TV manufacturers pre- pared to report meeting RTMA’s recommendations — 50 uv/m at 100 ft. for Channels 2-6 and 150 uv/ni for Chan- nels 7-13 — by July 1. Of course, many sets which don’t meet standards are now in inventories, will appear on market for many months. FCC’s attitude remains: “So far, so good. Let’s see how much more you can reduce it.” Standard Coil’s iihf strips, for existing tuners, will be unveiled June 7 at press showing in Bridgeport. Big- gest tuner maker. Standard says it has built tuners con- tained in 40% of all sets made, has supplied over 60 set makers. Company contends existing receivers containing its tuner “can be properly adusted in a matter of min- utes, and at little expense to the owner.” IBEW-AFL has dropped idea of urging freeze-lifting now in non-contested areas, deciding it’s too complicated for union to get involved with, according to Washington spokesman. It has had conferences with Federal Reserve Board and NBA on credit and steel, respectively, and will urge Congress not to increase excise to 15%. Said spokes- man: “Things are bad enough. Looks like they want to kill the business.” Union has 500,000 members, possibly 125,000 in TV-radio plants, including Admiral, Crosley, RCA, Sylvania, Westinghouse. •Materials exchange program has been launched by West Coast Electronic Manufacturers Assn. Group issues “have and want” list, monthly tabulation of materials on hand and items wanted. 0. B. Sundberg, exchange com- mittee chairman, says list is available to those who write to him on their business letterhead, at 395 Page Mill Road, Palo Alto, Cal. Trade Miscellany: Chicago Furniture Show, June 18- 28, will see very few new TV models — possibly a mockup here and there, but none of the usual extensive lines of new production models . . . Philco plans no convention this summer, leaving get-togethers to distributor-dealer Ber- muda cruises . . . RCA has officially stated no new models before Aug. 1 (Vol. 7:18) . . . Westinghou.se and Sylvania say new sets will be ready in July . . . Arvin schedules dealer convention for July 29-Aug. 1, promising new TVs and radios . . . Hallicrafters says new TVs, if any, some- time in fall . . . Air King, which as Hytron subsidiary’ is soon to come under CBS ownership (see Financial & Trade Notes) , is out seeking to line up distributors, telling pros- pects that if color decision goes CBS way it will have color sets quickly, otherwise it will have plenty of monochrome . . . TV''s accounted for less than $7,500,000 of Sylvania’s record first quarter sales of more than $60,000,000 (Vol. 7:17), according to president Don G. Mitchell, who said he looks for TV trade upturn around Aug. 1-15, reported very low inventory of receivers . . . Raytheon president Charles Francis Adams regards current slump as “purely sea- sonal” but admits it caused Belmont subsidiary to go into red in April. Plant Expansions: Collins Radio will erect $1,000,000 manufacturing-assembly plant in Dallas-Fort Worth area, including personnel training school and main building covering 60,000 sq. ft., eventually employing 6000 . . . Aerovox Corp. has acquired Wilkor Products Inc., Cleve- land (precision resistors), whose 35,000 sq. ft. plant and staff under former owner W. M. Kohring will be con- tinued; Aei'ovox’ other subsidiaries are Aerovox Canada Ltd., Hamilton, Ont.; Electrical Reactance Corp., Olcan, N. Y. * « # * RCA’s community antenna installation in Pottsville, Pa., operated by distributor Martin Malarkey (Trans- Video Corp.) and now feeding 275 homes, will be shown off to press May 22. Philco and Jerrold have broken up arrangement whereby former distributed community equip- ment built by latter (Vol. 7 :2, 7, 11). Automatic-focusing CR tube was announced May 15 by DuMont. Said to eliminate need for focus coil, focus control or other focusing mechanisms, new tube has no external focusing attachments. DuMont says secret of materials-saving tube is new type electron gun. Pilot pro- duction is now under way, and DuMont plans to put out complete line of self-focusing tubes. New cathode permitting manufacture of tubes with higher current and longer life reported by Philips Lab- oratories. Developed in Holland, “L” cathode is being offered to tube manufacturers, is claimed to be first new basic cathode in over 25 years. * * * * Sales of retail radio and appliance dealers totaled $259,000,000 in March, Census Bureau estimates in its March Trends m the Electrical Goods Trade, a decline of $28,000,000 from Februaiy, but $1,000,000 more than March 1950. TV shipments to dealers during first quarter totaled 1,814,767, according to RTMA. March shipments were 595,042, compared with February’s 619,122. Breakdown of shipments, by counties, is available on request from RTMA, 1317 F St NW, Washington 4, D. C. Sun Oil has installed TV sets in 8 tankers plying Gulf and east coast waters. Sets are 12(^-in. RCA models, equii)pcd with boosters, rotating antennas, etc. •\vco about to sell its 48.6^; stock in ACF-Biill Motors to group headed by Allen & Co., in line with policy of switching from holding to an operating company. 11 Mobilization Notes: Edmund T. Morris Jr., on leave from Westinghouse to be chairman of high-level defense Electronics Production Board, is widely mentioned as next director of NPA Electronics Div., succeeding John G. Daley, who leaves May 21. So far as Ave can find out — even from Morris himself — appointment hasn’t heen made yet, but no other names I have been mentioned in connection with post. Presumably, if Morris is named, he will also continue to head Elec- I tronics Production Board, which comes under DPA. His I knowledge of broadcasting field, as well as electronics pro- duction, should be valuable to Electronics Div., which is short on personnel familiar with broadcasting industry. Daley, retired general plant manager of New Eng- land Telephone & Telegraph Co., will return to retirement in Boston, after having served as division chief 6 months. * * * * Three firms Avere issued certificates of necessity during Aveek ended May 11 for rapid tax amortization on expan- sion of electronic production facilities to cost $3,991,510, DPA announced — out of total of 106 certificates granted to all industries during period, covering expansion valued at $183,189,208. Hytron was granted certificate for expan- sion of electronic tube production facilities at Danvers, Mass., to cost $3,333,000, with rapid tax write-off on 75% of that amount. Others Avere: Sylvania, Warren, Pa., parts of electron tubes, $427,533 at 80% (Sylvania’s 11th certificate) ; Wickes Engineering & Construction Co., Cam- den, N. J., electronic equipment, $230,977 at 75%. Mobilization Guide for Small Business, issued May 17 by Defense Production Administration, contains such infor- mation as; hoAV to be placed on govt, bid lists, methods of ; financing plant construction, how to appeal for “hardship relief’’ fi'om controls and regulations, how to get help in obtaining needed machinery and operating supplies. It’s n available at Commerce Dept, field offices and from Defense pi Production Administration, Washington 25, D. C. ’• Regulation W, not shortages, was chief complaint of . Radio. TV & Household Appliance Wholesale Advisory ij ! Committee when it met May 17 with NPA. Govt, pro- j5 duction officials pointed out that credit controls aren’t 10 lAvithin their jurisdiction, but they Avere gratified to learn of that Avholesalers’ stocks are “adequate”. Some spot short- 0- ages were reported, in some ai’eas, including certain types lit :Of TV and radio tubes. (For list of committee members, see Vol. 6:51.) Cadmium order M-19 Avill be relaxed, at least tempo- rarily, because sufficient supplies are now on hand to alloAV wider use of the metal. So NPA told leaders of cadmium industry May 15. NPA now permits use of cadmium for plating TV chassis, but not for radio chassis. It’s believed that many of the restrictions on cadmium plating — prob- ably including ban on its use in radio — may be lifted. Polyethylene, used in insulation and plastic products, Avill be placed under allocation July 1 by NPA (schedule 5 to Order M-45), because demand exceeds supply. Purchas- ers of polyethylene will be required to certify on their orders to their suppliers the end-use of the material ordered, but only the 2 polyethylene manufactui'ers Avill "fhave to fill out forms. Is MRO regulation being obeyed? NPA launched series of spot checks on May 14 in 800 different industries to see if it is. Federal Trade Commission examiners will look into: (a) use of DO-97 ratings to obtain maintenance, repair and operating supplies, (b) MRO quotas, (c) ac- ceptance and treatment of DO-97 and otliei’ rated oiders, (d) impact of MRO program on defense program, (e) ob- servance of record-keeping requirements. Eighty percent of TV cost goes into receivers and servicing, only 20% into production of shows. Paramount Pictures’ Paul Raibourn told joint American Television Society-Sales Executive Club New York meeting May 15. He noted that “such a ratio belongs to the sillier side of our economic organization,” and has produced “strange I’esults, such as a network [CBS] going into the manufac- turing business and another [obviously ABC] apparently undecided which way to go but surveying them all.” When ratio changes, Raibourn said, “you will find many new people producing programs, including the motion picture companies.” Raibourn estimated average set owner spends $100 a year for TV set, servicing, obsolescence, incidentals and programs — cost of electricity alone running about $15 a year. That’s about half of what average family spent on movies in their palmiest days, he said. Supply and demand of FM sets remains controversial as CA'er (Vol. 7:11), as broadcasters, manufacturers and dealei-s come up Avith surveys showing different results. NARTB reported returns from 123 distributors in 41 cities, 18 states, shoAv half of them indicating demand for FM-AM table models exceeds supply. NARDA queried 1000 dealers, got returns from about 100. Of these, 78% said their stocks of FM-AM table models are adequate; 59''/, reported FM-only stocks sufficient. RTMA is still compiling its returns, but spokesmen indicate FM demand is far nearer being met than NARTB study shows. Another broadcaster-manufacturer conference is expected. Theater-TV Avill have paying audience of 200,000 by end of year. That’s estimate of Nathan L. Halpern, Fa- bian and TOA television consultant, in talk to Georgia Theatre Owners Assn, in Atlanta this week. He based estimate on fact that more than 100 theatres in 50 cities Avill have installations by then, their seating capacity 200,000. He presumably also referred to recent RCA an- nouncement of orders from dozen theatre exhibitors for more than 50 installations at cost of $750,000-$!, 000, 000. Hollywood talent and technical unions are working on repayment formula in cases where motion pictures are rented to TV, following acceptance of principle week ago by Independent Motion Picture Producers Assn, in nego- tiation with Screen Writers Guild. SWG was spurred to this action, even threatening to strike, by musicians’ re- cent 57/ royalty deal with producer Robei’t L. Lippert (Vol. 7:17). So far, talk is that performers and techni- cians should get anywhere from 5-15%« of TV income. Industry delegates to international radio technical sessions in Geneva June 4-July 6: Haraden Pratt, Ameri- can Cable & Radio; EdAvin W. Bemis, AT&T; C. C. Taylor, Bell Labs; J. B. Coleman, J. H. Delinger, C. G. Mayer, Wayne Mason, all RCA; Neal McNaughten, NARTB; Don- ald Fink, Electronics. U. S. group is headed by H. B. Ot- terman. State Dept., Govt, members: Florence Trail, State Dept.; E. W. Allen, George Turner, W. F. Minners, all FCC; Newbern Smith, D. K. Bailey, W. Q. Crichlow, W. D. George, all Bureau of Standards; W. B. Burgess, Naval Research; Maj. E. J. Holliman, Signal Corps. Trade Personals: D. W. Gunn named equipment sales mgr., Wm. T. Buschmann merchandising coordinator, G. V. Bureau govt, sales mgr., Raymond W. AndrcAvs, factory .sales mgr., Sylvania Radio & TV Tube Div. . . . Carl Was- mansdorff promoted to director of engineering, Hoffman Radio . . . Edward A. Freed, ex-RCA tube dept., named sales mgr. for products of General Instrument Corp.’s Elizabeth (N. J.) plant; Lee Ballengee transferred from Elizabetli to (^liieago sales uflica- . . . I’eaiik Folsom, RCA luesideiiL, a leading Catholic layman, cliusen by Temple U to make presentation of honorary degree to Eddie Cantor at June 14 commencement. 12 - Telecasting Notes: Despite prospective hookup of West Coast TV stations into the national networks via new trans- continental link due for completion by end of year (see p. 1), despite current NBC negotiations to buy 40-acre tract from Warner Bros, in Bux-bank for new TV-radio center, despite elaborate plans of CBS to build similar TV center on site of Gilmore Stadium, May 19 Billboard sees only “sad TV futui-e” for Hollywood (1) because of sparse TV studio facilities, and (2) because supporting vaudeville talent is centered in East and it’s vex-y necessary to variety shows. Some big name stars may prefer to live in Holly- wood, but other talent needs “vaude or nitery bookings”, says Billboard. Show business periodical coixxpletely over- looks intercity switchovex’s, which will be possible no less in TV than iix radio, once links ax’e in . . . “Television City” sites recommended by Mayor’s committee in New York, 16 in Manhattan, 2 in Nassau County, ranging in size froixx 57 to 401 acres, reported by New York Times to have been received with indifference “because several of the ixxajor networks have already made comnxitments fox- studio space in Manhattan while others are waiting to ascertain the strength of a developing ixxove [to] Holly- wood” . . . WOR-TV x’epox'ts its new 2-stox-y building at Bx-oadway & 67th St., covering nearly whole square block, will be ready by Jan. 1, 1952, and will be called “Television Square” . . . Fix-st x-adio station to convert exclusively to 45 x'pm xecox’ds is WFIL, Philadelphia, which announces it has acquired library of 5000 selections, convex-ted dual- speed tux-ntables with RCA Victor conversion kit, will go on all-45 rpm standard May 21 . . . British and French film px'oducex’s will turn out 15 & 30-min. films for TV fx-oixi Anxerican scripts, which DuMont will telecast in U. S. and movie exhibitox-s will show abroad, under deal concluded by DuMont’s Comr. Loewi dux’ing European trip just con- cluded; he says this “assures a reasonable cost to both users” . . . DuMont bid for Texaco’s Milton Berle show for 1951-52 season went by boards this week when sponsor reixewed with NBC-TV for same Tue. 8-9 period; show vacations for 13 weeks after June 12. Berle’s 30-year art- ist contract with NBC isn’t effective until fall of 1952 . . . DX contest conducted by WBKB, Chicago (Channel 4), with auto as prize, was won by Wm. J. Tong, Imlay City, Mich., 246 miles away; he phoned at 5:30 a.m.. May 13, to descx-ibe plainly the show then being carx-ied — contest hav- ing been run from midnight to 9:30 a.m. . . . Chicago Trib- une’s WGN-TV reported signing extension of DuMont affiliation contract for 2 years from Juixe; United Para- mount’s WBKB contx-act with CBS due for renewal in Oc- tober . . . KECA-TV, Los Angeles, May 15 raised base hour rate from $900 to $1200, one-min. fx-om $150 to $220. Urgent need for program code of own — standax'ds that are industry-formulated rather than laid down by Govt, or others — is stressed in letter to all stations from NARTB- TV progx-am committee (Vol. 7:16) resulting from May 17 New Yoxk meeting. All-station conference was called June 22 in Hotel Statler, Washington, stations being asked to submit their May 6-12 program logs for study and recommendations. It’s obvious problem isn’t mex-ely “V necklines” but “program balance,” e.g., commercial vs. sustaining tinxe, live vs. film, local vs. network, etc. Com- mittee’s chairman is Robert D. Swezey, WDSU-TV, New Orleans. Other nxcmbers: Clair McCollough, WGAL-TV & WDEL-TV; Frank M. Russell, NBC; Chris Whiting, Du- Mont; George B. Stox-er, Foi-t Industry Co. Should educational TV programs be sponsored? Ac- cording to survey of 694 educators by U of Ciixcinnati un- der Crosley grant, 58% favor “restricted” sponsorships, lO'/i favor unlimited sponsor.ships, 26% say TV stations should bear full costs. Suggested “restricted” sponsois: books, insurance, TV sets, autos, food, spoi-ts equipment. Needle the network.s — and take all steps necessary to preclude further weakening of radio rate struc- ture, especially national spot. That seems to be way Affiliates Committee’s functions shaped up following May 15-16 New York meetings of 7 of the 13 members named in Chicago last month after CBS first announced network radio rate x-eductions (Vol. 7:16-17). Even while affiliate group was meeting, ABC May 17 made known its competitive rate cut — 157c less for all time periods fx-om 1 to 10:30 p.m., effective July 1. In effect, this is an undei'cut, for CBS and NBC rate reductions are 107c on day time, 157o night (Vol. 7:15, 18). It’s foregone certainty new MBS rates will shortly be quoted, too. Affiliates Committee reported 200 stations backing its wox'k, $13,000 in ti-easui-y, 146 more stations pledging sup- pox't dux'ing meetings. It addressed missives to network- presidents bluntly declaring there is “widespread feeling . . . some major radio networks no longer have a vital in- terest in AM x-adio” and demanding they “state clearly and unequivocally the position of your company with re- spect to your continuing intex-est and complete suppox't of the radio ixxedium.” To Assn, of National Advex-tisex-s and all ANA mem- bers, letters were sent avex-ring radio is still good buy and obsex'ving: “We think we have been negligent in not raising I'ates through the years . . . Overzealous, competitive, up- ward bidding for naixxe talent, both by advertisers and net- works, initially caused the dike to break.” Committee agreed BAB should do research on radio, rather than spe- cial project— though NBC and its affiliates committee have set up special research study on economics of network i-adio, to cover rates, discounts, sales policies, station com- pensation, etc. (For list of committeemen, see below.) NBC has notified affiliates it’s eliminating sustainings 8:15-10 a.m., 6:15-6:45 p.m., which weren’t being cax-ried generally anyhow since times were good local and spot availabilities. Reduction of sustainers is expected to be general, along with curtailment of AM staffs and other economies designed to meet reduced revenues. Key men in FCC’s new Broadcast Bureau, the division chiefs, (Vol. 7:18) haven’t been named or even hinted by chief Curtis Plummer or coixxmissionex-s, but cox-ridor gos- sip has jobs filled and vacated daily. Here ax-e predomi- nant guesses, for what they’re worth: Assf.. Chief, Harry Plotkin (50-50 chance) ; TV Facilities, Cyril Braum’ TV en- gineering chief; Aia-al Facilities, James Barr, AM-FM en- gineering chief; Renewal & Transfer, Walter Emery, chief, renewals & revocation branch of law bureau, or LeRoy Schaaff, chief of broadcast accounting; Hearing, Dwight Doty, AM legal chief, or Joseph Kittner, assistant to general counsel; Rides & Standards, Paul Dobin, legal assistant to Coixix-. Jones, ox- Kittnex-. For chief eixgineer, replacing Plummer, talk has narrowed down to: Edward Allen, now chief. Technical Information Div.; Albert Mc- Intosh, now chief, Frequency Allocation & Treaty Div.; C. W. Loeber, who has been on loan to State Dept, as teleconxixxunications attache in Geneva. Members of joint stations-NBC committee to study the economics of x-adio netwox-k opex-ations ax-e: Jack Hax’x'is, KPRC & KPRC-TV, Houston; C. Robex-t Thompson, WBEN & WBEN-TV, Buffalo; Harold Essex, WSJS, Win- ston-Salem; Harry Bannister, WWJ & WWJ-TV, Detroit; George Whitney, KFI & KFI-TV, Los Angeles. Represent- ing NBC are Chai les R. Denny, executive v.p.; Carleton D. i Smith, stations relations v.p.; Hugh M. Beville, plans & leseaich diiector; Henry T. Sjogren, controller; Norman Cash, ladio .station relations director; David Adams, asst, to Denny. UBLISHED WEEKLY BY RADIO NEWS BUREAU, 1519 CONNECTICUT AVE. N.W., WASHINGTON 6, D.C. TELEPHONE MICHIGAN 2020 • VOL. 7, NO. 21 i May 26, 1951 in This Issue: Lull Before the Allocations Storm, page 1. Meaning of ABC-Paramount Merger, page 1. Are Community Antennas a ‘Sleeper’?, page Coy Reappointed, Top Staff Named, page 5. Financial & Trade Notes, page 8. Some Bullish Estimates of the Future, page 9. Topics & Trends of the TV Trade, pages 10-11. Mobilization Notes, page 13. LULL BEFORE THE ALLOCATIONS STORM: TV allocations situation merely simmered this week, as everyone busily prepared oppositions to comments (Supp. 72 & 72-A) , awaited FCC action on petitions questioning legality of freeze-ending procedures. Commission opinion on "legality" question should be forthcoming soon. So far, there's no indication FCC intends to depart from present plan — namely, fixing channel allocations in rules, these to be changed only by formal rule-making pro- ceedings (Vol. 7:20) — method strongly opposed by some applicants. Question of "partial" freeze-lifting also should be answered soon. Chances for uhf station grants appear remote. Possibilities of vhf power increases, vhf grants in Territories — in near future — are greater. Commission action on these doesn't necessarily await filing of oppositions to comments, due June 11. City-by-city hearing, starting July 9, shapes up as drawnout affair. Many I educators , as well as commercial station operators and aspirants, will be on hand, have notified FCC of intentions to appear as v/itnesses. En banc hearing certainly I will run for months. With Harry Plotkin out of Broadcast Bureau (see p. 5), Commis- I sion counsel during hearing may be nev; chief of Rules & Standards Div. , Paul Dobin. Hearing on Sen. Benton's resolution (S. Res. 127), providing Congressional ■ study of educational and commercial TV (Vol. 7:15,19,20), will be held May 31 by i Senate Interstate & Foreign Commerce Committee. Sen, Benton will be only witness. MEANING OF ABC-PARAMOUNT MERGER: i’rom .lust about every angle, ABC -Paramount merger I deal looks good for the people most concerned — and, even more important, good for 1. the radio-listening and TV-viev;ing public. There's many a legal and political slip, but an appraisal of main factors ■ I involved v;ould seem to indicate approval won't face very tough sledding in Washing- , j ton in light of facts and circumstances. This is how we size up v;hat deal means ■ — (1) TO THE TV AND RADIO AUDIENCE; New operational management promises I stronger competition by reason of greater financial resources and possible new ■ talent and program reservoirs, d I- It must be borne in mind, though, that United Paramount is a theatre-operat- ing concern. It owns some 600 houses, but doesn't produce pictures. It's outgrowth of split of big Paramount producing-exhibiting combine forced by anti-trust consent I decree, and came into being at end of 1949. Thus, merger doesn't necessarily mean jj more and newer movies for TV from Hollywood -- though these are sure to come as soon as there are enough TV stations, n, jf: :ic (2) TO ABC STAFF, AFFILIATES AND SPONSORS: This week's deal brings end to ;■ long period of rumors, uncertainties and suspense (Vol. 7:18-20), given credence by P- obviously declining fortunes of ABC and not much mitigated by equivocal statements i of principals involved in frequently reported deals. ■ "Both the AM and the TV networks will be preserved." asserts United Para- ■j mount secretary-treasurer Robert W. O'Brien, who u-ill become executive v.p. of the Copyright 1951 by Radio News Bureau - 2 - Radio-TV Division of the new American Broadcasting-Paramount Theatres Inc. ABC's president Robert Kintner will be president of the division. Real operational boss will be Mr. O'Brien, a former member of Securities & Exchange Commission. New program topkick will be Robert M. Weitman, with title of v.p. ; he's also a UPT director, who as manager of New York Paramount Theatre is credited with developing such stars as Frank Sinatra, Danny Kaye, Red Skelton, Tony Martin, Perry Como, and starting off such famous bands as Glenn Miller, Tommy Dorsey, Eddie Duchin, Woody Herman, Stan Kenton. Affiliate and sponsor relationships, badly shaken, will be first "repair" job to be undertaken by new management. Station relations, particularly, have been deteriorating in recent years — so much so that one basic affiliate, doubtless re- flecting general attitude, remarked on hearing news of the merger: "Any change will be for the better, since things can't get any worse." *T* ^ :jc (3) TO ABC STOCKHOLDERS ; Deal involves outright exchange of stock, no cash, plus sale of UPT's Chicago station WBKB, on Channel 4, to CBS for $6,000,000. In effect, ABC's 1,689,017 shares of outstanding stock (about 57% owned or controlled by chairman Edward J. Noble) is costing Paramount something less than $25,000,000 in stock — paid for at rate of one ABC share for $7.50 in common stock of new company measured at $19 per share plus $7.20 in preferred stock measured at par (preferred dividend rate 5%) . Thus ABC stockholders get equivalent of $14.70 per share. United Paramount in 1950 earned profit of $12,141,667 ($2,144,384 in capital gains) on gross of $106,731,403, paid $2 dividend, and has paid 500 first quarter dividend already this year. It has upwards of $30,000,000 cash resources for investments, may as result of this deal buy fewer than limit of 650 theatres permitted under consent decree. ABC purchase includes about $3,500,000 surplus account, but also means taking over about $5,500,000 indebtedness. ABC's earnings record has been poor in recent years (Vol. 7:13,20), and it has never paid a dividend. 'P T* *T* (4) TO THE TV-RADIO INDUSTRY AT LARGE: New blood, keener inter-network and inter-station competition, closer liaison between broadcast media and theatrical interests — these can only be welcomed by all objective observers. Sometimes bitter competition between well-positioned NBC and shrewd CBS has far outstripped ABC since i it was sold by NBC in 1943, under FCC "duopoly" pressure, for $8,000,000. ' Paramount purchase is recognition by movie industry (as by the newspapers, ' somewhat belatedly, vis-a-vis radio) of necessity of "keeping pace with the times." i Each has much to offer other, particularly in showmanship and commercial and techni- cal know-how. W is manifestly the favored child of the new parents — but we have absolute assurance from Mr. O'Brien that there's no intention of selling AM network and/or the 5 AM stations ABC owns in same cities as TV outlets. It can be assumed new faces will be brought into ABC operations, besides Messrs. O'Brien and Weitman — including very likely WBKB manager John H. Mitchell, whose Chicago operation is reputedly one of the most successful in TV. In selling WBKB, new ABC owners keep Chicago's WENR-TV on Channel 7. This is same channel occupied by ABC's 4 other TV outlets — in New York, Detroit, Los Angeles, San Francisco — result of successful early tests and recommendations by able chief engineer Frank Marx. WENR-TV call letters will be changed to WBKB. and i old WBKB doubtless will become WBBM-TV, companion to CBS's AM station WBBM. t'J ^ »r 5p (5) TO THE MOVIE INDUSTRY : Decision of big United Paramount to "join 'em if you can't lick 'em" v/ill inevitably impel others to do same, particularly local exhibitors who may nov/ become just as eager-beaver applicants for new post-freeze TV outlets as are the large and small radio broadcasting interests already. Combina- , tion of local radio-movie forces for costly ventures into TV may become commonplace. Of the 107 existing TV stations, only 2 besides WBKB are owned by theatre interests: WTVJ, Miami (Wometco chain) and WKTV, Utica (Kallett). Paramount Pictures 3 owns KTLA, Los Angeles, retained in consent-decree splitup, would like to have more but has been stymied by FCC procedures growing out of its ownership of DuMont stock. There's no secret, also, that FCC influences tend to oppose producer owner- ship of TV stations, though Chairman Coy was quick to disclaim any antagonism to exhibitor ownership after recent criticisms of "anti-trust" opinion (Vol. 7:13-15). In connection with ABC deal, in view of new parent company's acquisition of limit of 5 TV stations, 4 old local Paramount applications still on file will have to be dropped, namely, those of United Detroit Theatres Corp. , New England Theatres Inc. of Boston, Tri-States chain in Des Moines, Gulf Theatres Inc. of Tampa (see TV Factbook No. 12). United Paramount is also half-owner, with big local dept, store Maison Blanche, of AM station WSMB, New Orleans, long an NBC affiliate. On top of the foregoing considerations, there's inescapable fact that will- ingness of CBS to pay whopping $6,000,000 price for the Chicago outlet it so badly needs will have effect of skyrocketing values not only of existing stations but of those yet to be granted after the 3-year-old freeze is lifted. Competition for post-freeze stations will become keener than ever — it's a blue chip game now and those who once stayed out are now ruing their judgment. FCC will probably require hearing on deal of such magnitude, biggest in all radio history. First, Paramount and ABC must take appropriate legal action — board approvals, stockholder approvals — and the complex legal and financial details must be arranged. This should take until July, by end of which formal applications should be ready to file v/ith FCC. In view of importance, full FCC may hold hearing, rather than examiner, thus expediting decision by September or October. Most likely objection would be against "bigness" — but it's obvious that one of weaknesses of ABC, running poor third in both AM and TV, has been lack of risk capital — and it takes big money to run TV and radio networks. Somebody may object, too, that United Paramount will now lose interest in theatre TV, in which it has played leading role thus far — with 5 of its theatres already equipped, 22 more installations on order. But UPT spokesman says there is no intention of abandoning theatre TV ; quite the contrary, plans will go forward. V ^ V ^ Dominant personalities in deal, aside from ABC's Mr. Noble and director Robert Hinckley, who did the Washington spake-work (mainly contacts with FCC Chair- man Coy), are United Paramount's 45-year-old president Leonard Goldenson and Mr. O'Brien. Both are lawyers. Mr. Goldenson's father owned theatres in Pennsylvania. He's a 1930 law graduate of Harvard, has been with Paramount since 1933, working his way up through the ranks. He has always taken "liberal" attitude toward TV competi- tion, not denying it's effects but always planning to work into it somehow. "Bob" O'Brien is described glowingly by former Washington colleagues as a brilliant, personable chap with fine record of administrative achievement. He's 46, a Montanan who rose from SEC ranks to commissionership, resigned in 1944 to join old Paramount combine as aide to president, played leading legal role in reorganization. As a football star at Beloit College, he won this accolade from Knute Rockne after a game that didn't prove to be a setup for the Irish: "Best quarterback in the country." He was graduated from U of Chicago law school in 1933, having betimes worked as a miner in Butte, in a gold mill, on a newspaper, on a ranch, at teaching. * * * * In new corporate setup, 5 ABC directors go on new American Broadcasting- Paramount Theatres board of 18: Mr. Noble, holder of 901,667 shares of ABC stock, who becomes chairman of finance committee ; Mr. Kintner, 7000 shares ; Mr. Hinckley, no shares ; v.p. Earl E. Anderson, 8500 shares ; Ov/en D. Young, who holds title of honorary chairman, 5000 shares. Present ABC directors left out are: Mark Woods. 6500 shares, now vice chairman; C. Nicholas Priaulx, 1000 shares, v.p. & treasurer; Alger B. Chapman, attorney; Wm. Zeckendorf, realtor. 7/ood and Priaulx presumably will be retained in management. United Paramount's 15 directors include Messrs. Goldenson, O'Brien and - 4 - Weitman plus: John A. Coleman, of Adler Coleman & Co., brokers; E. Chester Gersten, president, Public National Bank & Trust Co. of New York; Wm. T. Kilborn, president, Flannery Mfg. Co., Pittsburgh (railroad & automotive parts) ; Walter P. Marshall, president. Western Union; Robert B. Wilby, president. North Carolina Theatres Inc. and Alabama Theatres Inc., subsidiaries; John Balaban, president, Balaban & Katz, subsidiary; A.H. Blank, president, Tri-States Theatre Corp. , subsidiary; Herbert Schwartz , president. City Stores Inc. ; Charles T. Fisher Jr. , president. National Bank of Detroit; Herbert L. Huff ines Jr. , president, Burlington Mills Corp. ARE COMMUNITY ANTENNAS A 'SLEEPER'? Future of community antennas (Vol. 7:2,7,11) is provoking a lot of hot speculation — both bullish and bearish — but there's no denying fact such installations are today bringing TV to communities which would otherwise get little or no service. This week, we traveled to Pottsville, Pa. , 75 miles northwest of Philadel- phia, took a close look at system installed by local Trans-Video Corp. and RCA Service Co. Trans-Video has sunk $100,000 into it, plans more, doesn't at all feel it's out on limb on this basic question: When freeze is over, new stations built, will customers drop service in favor of "free" TV? Here's the Pottsville setup: Trans-Video is local group headed by Martin F. Malarkey Jr., whose family owns music-appliance store, sells RCA and Stromberg- Carlson sets. It has 11 employes who have installed equipment purchased from RCA. Latter supervised installation, will service system, equipment being adaptation of RCA's apartment-hotel distribution system called Antenaplex. Some 300 homes have been equipped, more being tied in daily. Enough cable has been strung to supply 1500 homes. Population is 24,500 (6700 families) and present target is 2000 installations. Ultimate plan is to make service available to every home within city itself. Company estimates additional $100,000 will cover whole city. Subscribers pay S155 for installation, $5.75 monthly. Rates were established almost arbitrarily, says Malarkey, but "we hit it right on the nose." * * * * Technically, system is simple. Fortunately, 1390-ft. Sharp Mt. is very close by. Signals from 100-ft. antenna are currently piped 2-3 miles, but can be boosted along another 2-3, maybe more. Amplifiers every 2000-2500 ft. kick signals along RG/llU main cable, signals going into homes via RG/59U. Wire is strung along electric and phone poles which are rented for $1. 50-per-year-per-pole. Some 1500 poles will supply 3000 homes. Channel 6 signals from Philadelphia are converted to Channel 5, Channel 3 to 2 — to reduce line-loss, minimize oscillator radiation problems. Channel 10 service, now being installed, will be converted to Channel 4. When uhf signals be- come available, they'll be converted to vhf, eliminating need for set converters. Signal strength of Channels 6 and 5, at Sharp Mt., is about 1000-1500 uv/m ; Channel 10 is about 400-500 uv/m. Quality of picture is good — comparable with average TV city pictures. In contrast, direct signals we saw in Necho Allen Hotel and a private home were poor. Channel 10 completely useless. Average city viewer, spoiled by decent reception, wouldn't watch them a minute. But Pottsville folk, like others in fringe areas, gaze at them for hours. These private signals are captured by considerable arrays, boosters, rotators, etc. — costing up to $500, averaging $200. ^ ^ ^ ^ Future of service doesn't seem to worry young Malarkey, who really bubbles with enthusiasm and energy. Here's how he figures it: Philadelphia isn't likely ever to throw really good signals into Pottsville. Town itself probably can't support TV station, though it has 2 AMs. In any event, he can't visualize support for more than one, which must be uhf. Nearest larger 5 town is Reading, 25-odd miles away, which may be able to handle 1 or 2 stations, also ticketed to be uhf-only. This competition, Malarkey predicts, won't wean many away from trouble-free "piped" service. What's more, he says, expansion of service will permit reduction of rates, down to "nominal" sum of $1.75 or less monthly. "We're not out to make a million bucks," declares Malarkey. How about State or Federal regulation, setting rates, quality of service, etc.? "Fine," he says ; actually, he appears to welcome regulation, feeling it will guarantee a profit, protect company from unreasonable demands for service. System creates market for sets, naturally, but Malarkey says his store has made only about 25% of sales, other dealers in town quite happy with situation. 'J' ^ ^ ^ Where do systems go from here? RCA is proceeding very conservatively, leav- ing it up to local distributors and entrepreneurs to take initiative, balancing "quick" service against threat of future "free" service from stations. Many other ideas have been sparked by success of community antennas. For example, local AM station operator may consider TV station uneconomic, ask to feed commiinity system with camera chain — a super closed-circuit. Theatres are greatly interested, may seek special-event exclusives for their houses. Subscription serv- i ice, a la Phonevision or Subscriber-Vision, may find an angle. In big cities, single neighborhood antenna may provide everyone with best possible signal, eliminate forest of antennas. jjc Of other companies in the field, Jerrold Electronics is most active. It re- ports that Maine's former governor Sumner Sewell heads $500,000 company with 20 towns lined up; that Western TV Inc., Ogden, Utah (Dean Buchanan, president) is [capitalized at $250,000, intends to feed number of towns; that Perfect TV Inc., iHarrisburg, Pa., plans 10,000-home hookup there; that following towns have systems under construction or about to begin; Tamaqua, Lock Haven, Harmarville and Coals- dale. Pa. ; Corning (WCLI), Watertown and Dansville, N.Y. ; Kingsport and Johnson City, Tenn. ; Carmel and Monterey, Cal. News of other towns, planning or building, keeps popping up; Portland, N.Y. ; Frankfort, Ky. ; Bethlehem, Pa. ; Claremont, N.H. ; Bath, Me. Jerrold's first installation. Panther Valley TV Co.'s in Lansford, Pa. (Vol. 7;2) has run into competition, new outfit from Philadelphia reported to have moved in. Other companies reported entering community field are Industrial Television Inc., Television Equipment Co., probably more. Outlook for materials, cable primarily, doesn't seem too bad. Systems don't come under NPA's Controlled Materials Plan, will have to scramble for what they need. But companies concerned say they're optimistic, feel they'll make out. COY REAPPOINTED, TOP STAFF NAMED: Continued tenure for FCC chairman Wayne Coy, halt I to speculation about new jobs awaiting him, seems assured in view of reappointment jthis week. President sent name to Senate, and key Senators have declared themselves )|for him — though he may face some sharp questions during hearing before Interstate Foreign Commerce Committee set for May 29. But he's virtually in. "I'm all for his reappointment," said committee's powerful chairman. Sen. Johnson (D-Colo.), echoed by committee's ranking Democrat Sen. McFarland (D-Ariz. ) jwho is also Senate majority leader and by Sen. Tobey (R-N.H.), ranking Republican. Term is 7 years from June 30, but it's anybody's guess how long he will Jstay, what with presidential election next year, physical strain of job, etc. Main reasons for his desire to stay on right now, undoubtedly, are color and freeze-end. He's hell-bent to put across CBS color system, to justify FCC decision. 'If Supreme Court upholds FCC, chances are he'll be able to muster majority behind quick order to require field-sequential colorcasts. And there's little question jhe'd like to see TV allocations finalized substantially as FCC proposes (Vol. 7;12). , Highest court's color decision could come May 28, June 4, even June 11, and - 6 - it's now virtually certain Court won't adjourn for summer before June 4 at earliest. Coy suffered blow when colleagues, 5-2, turned thumbs down on his right-hand man Harry Plotkin for chief of new Broadcast Bureau and instead chose chief engineer Curtis Plummer. But longer Coy stays, better are chances that the controversial Mr. Plotkin' s star will rise again. He now becomes asst, general counsel in office of general counsel Benedict Cottone, says he didn't want any Broadcast Bureau job. Key division chiefs in Bureau were announced this week; Joseph Kittner, ex-asst. to Cottone, asst, chief; Cyril Braum, ex- TV engineering chief, head of TV Facilities Div. ; James Barr, ex-AM-FM engineering chief. Aural Facilities (AM-FM) ; Paul Dobin, ex-asst. to Comr. Jones, Rules & Standards; Dwight Doty, ex-AM legal chief. Renewals & Transfers; Fred Ford, ex-trial atty. , Hearings. Jobs pay $10,000. Nev; chief engineer to replace Plummer hasn't been named, but it looks like C.W. (Walt) Loeber is the man. He's old-time FCC engineer, ex-chief of Common Car- rier Div. radio branch, who recently was State Dept, telecommunications attache for Europe, stationed in Geneva. Still a possibility, however, is choice of Edward Allen, now chief of Technical Information Division. More LATIN American TV stations ordered and going up: Buenos Aires’ and Argentina’s first will be Channel 7 outlet, equipment ordered by Yankelevitch broadcasting interests from International Standard Elec- tric (IT&T), with Federal Radio providing transmitter, Capehart-Farnsworth delivering initial quota of more than 10,000 receivers. International Standard Electric also is supplying Channel 5 job for Radio Televisao Paulista, Sao Paulo, Brazil, second in city, with Federal transmitter, DuMont mobile unit, cameras, studio equipment. Matamoros, Mexico, just across Rio Grande from Brownsville, Tex., will get TV station this year if plans of Compania Mexicana de Television go through; sparked by W. B. Miller, ex-KEYL, San Antonio, company has CP for Channel 7, has ordered DuMont equipment. And when Emilio Azcarraga’s new Televicentro in Mexico City is ready for Sept. 18 inaugm’ation (Vol. 7:16), XEW-TV on Channel 2 will go into fulltime operation (now carry- ing baseball only twice weekly) ; later he plans to operate XEQ-TV on Channel 9 as basic sports outlet, DuMont transmitter already delivered. Havana report states Union Radio (Caspar Pumarejo), whose CMUR-TV was first to be established there, has bond issue out for $2,000,000 expansion embracing microwave- linked network of 6 more outlets in Pinar del Rio, La Habana, Matanzas, Las Villas, Camaguey, Oriente. Equip- ment order hasn’t been announced yet. Goar Mestizo’s CMQ-TV is expected to announce similar expansion de- signed to cover island. Caribbean Television Co., Storer- financed, is reported to have abandoned plans for new station on Channel 7 in Havana (Vol. 7:9, 17). Spain’s Radiodiffusion Nacional has purchased com- plete TV installation from Philips of Eindhoven, to op- erate on 625 lines, 50 fields. “Except for certain exceptional programs, the public does not like TV.” Statement is by 20th Century-Fox executive Darryl F. Zanuck in double-page ad in May 21 Daily Variety, of Hollywood, devoted mainly to subject of executive salary cuts by Skouras company. Zanuck gees on: “Up until now it [TV] has proven a poor substitute for motion pictures. Nevertheless, thousands upon thou- sands of American families have purchased their sets on the installment plan and while most of them have been disillusioned by the quality of the entertainment they have seen on TV screen, they are, nevertheless, committed to pay for the sets and they economize by elimination of cer- tain other luxuries. We, unfortunately, bear the brunt of this onslaught.” Request to set up Phonevision as regular, commer- cial TV service is due to go to FCC within few weeks, or as soon as U of Chicago National Opinion Research Council completes analysis of recently completed 90-day Zenith test with 300 Chicago families (Vol. 7:14). Also due in next few weeks is request from Skiatron Corp. for public test in New York for its coded-card “Subscriber- Vision” system of fee-TV (Vol. 7:11-12). Zenith’s E. F. McDonald this week released preliminai'y analysis of Phonevision tests, showing: (1) “Take” for 90 days was $6750, or $22.50 per fam- ily, or $1.73 per family per week. (2) Average “attend- ance” first month was 2.1 movies per week per family, second month 1.5, third month 1.6. This is 3% times greater than 0.47 times per week average family goes to movies, McDonald estimated. (3) Audience of individual pictures ranged from low of 8% to high of 60% (Welcome Stranger) of 300 test families. (4) Average of 4 out of 5 test families said they had not previously seen pictures in theatres, 9 out of 10 said they’d rather see movies in home. Projecting estimates to 10,000,000 Phonevision- equipped TV sets, Comdr. McDonald came up with these potential earnings: Average net return per picture based on average attendance during test period, $1,250,000. For 10 most popular pictures, this would be $2,983,000; for 10 least popular, $600,000. ■ Hopes of moviemen for substantial income from post- theatre-run feature films rented to TV were dashed con- siderably by producer Robert L. Lippert, who recently signed 5Vc royalty deal with AFM for use of his old films on TV (Vol. 7:17). There aren’t enough TV stations using j old features to make market exciting, Lippert declared on i recent return to Hollywood from swing around country, j He said he found only 16 out of present 107 stations using 1 old feature films to any marked degree; remainder are ' all tied up with live shows, network feeds, kines. Production charges for one-minute TV commercial begin with basic charges of $500 per day — and that doesn’t include performers’ fees or studio’s overhead and profit. According to survey by Chicago advertising agency Henri, Hurst & McDonald, here’s how that figure breaks down: production crew, $250; sets, $100; film director, $50; film stock, $50; editing, $50. In brief discussion, agency makes | point that advertisers are willing to “spend $500 for single good photograph without a qualm. Why expect to spend less for 1440 photographs, the number required for just a single minute film?” 1 7 Network TV-Radio Billings April 1951 and January-April 1951 Network tv time billings in April, totaling $9,089,- 454 (not including non-reporting DuMont), went up only a few thousand dollars from the $9,085,403 in March (Vol. 7:17) — NBC accounting for enough increase to off- set dips by ABC and CBS. Most significant, NBC’s net- work TV time billings of $4,758,809 are now within about $140,000 of its AM network time billings. April TV fig- ures for the 3 reporting networks are more than 3% times those of April 1950, brought cumulative for first 4 months of this year to $34,198,545 vs. $8,193,058 for same 1950 period. On the AM side, all but MBS dropped somewhat below March (Vol. 7:17), aggregate network radio billings for April being $15,921,908 vs. $16,440,387 in March and $15,- 908,806 in April 1950. Cumulative for January-April pe- riod was $64,054,755, down more than $1,000,000 from the $65,217,563 for same 1950 period. The PIB figures: NETWORK TELEVISION April April Jan, -Apr. Jan. -Apr, 1951 1950 1951 1950 NBC $ 4,758,309 $ 1,147,698 $17,548,954 $ 4,343,280 CBS 2,913,956 873,343 11,109,362 2,696,799 ABC — 1,417,189 372,022 5,540,229 1,152,979 Total .. $ 9,089,454 $ 2,393,063 $34,198,545 $ 8,193,058 NETWORK RADIO CBS $ 6,509,147 $ 6,054,738 $26,297,709 $23,904,827 NBC 4,897,882 5,284,013 19,931,091 22,069,954 ABC 2,975,078 3,128,603 11,668,556 13,310^356 MBS - 1,539,801 1,441,452 6,157,399 5,932,426 Total $15,921,908 $15,908,806 $64,054,755 $65,217,563 Personal Notes: Edward S. Friendly Jr. named ABC- TV Eastern sales mgr., succeeding Slocum Chapin, pro- moted to TV stations v.p. . . . Charles T. Ayres appointed ABC radio sales v.p. . . . Harvey J. Richardson, ex-NBC and Standard Radio, named sales mgr. of new studio and recording services div., Capitol Records, Inc., Hollywood, set up for custom recording of AM, TV and other com- mercials . . . Howard G. Barnes, TV-radio v.p. of Borland Inc., resigns to set up own film production service, 40 E. 49th St., N. Y. . . . Robert Foreman, BBDO v.p. in charge of TV radio copy, placed in charge of TV dept. . . . Nathan P. Colwell, ex-Treasury savings bond drive TV-radio chief, named TV-radio-film director. Office of Price Stabilization . . . William Binzcn Jr., ex-Foote, Cone & Belding, named TV art director, Hewitt, Ogilvy, Benson & Mather . . . Howard Anderson named film director, WFAA-TV, Dallas. . . . Robert F. Jamieson, ex-DuMont, appointed mgr. of CBS-TV network sales service, Thomas P. Maguire han- dling radio — CBS sales service dept, having been split into 2 divisions . . . Guy Cunningham, ex-WEEI, Boston, named CBS sales presentation director . . . Dr. Roy K. Marshall, who conducted The Nature of Things on NBC-TV, has re- signed from U of North Carolina faculty to become educa- tion director of WFIL & WFIL-TV, Philadelphia, suc- ceeding Dr. Armand Hunter, who goes to Michigan State U . . . Richard W. Hubbell has closed down Hubbell Tele- j vision Inc., is now transcription service director for Voice ' of America, also heading section to explore possibilities of TV in international field. Importance of women in sales and how to use TV to capture their attention, is subject of Sure-Fire Sales Formula: Women Selling Women — Through TV, brochure put out by Edward Retry & Co., station reps. Presentation lists 46 national advertisers using local women’s TV, logs 3507 minutes of homsmaking shows on New York’s 7 sta- ll tions week of Jan. 4, 1951. I Station Accounts: Total of 5093 tv advertisers, of whom 233 were network and 1103 spot, remainder local- retail, are reported for March in April edition of Rora- baugh Report — increase of 7.4% over February, 79.2% over March 1950. Rorabaugh Report lists all the network and spot advertisers, as reported by 99 of the 107 existing stations . . . American Vitamin Associates Inc. (Thyavals & Orvita), big buyer of baseball time in Chicago (Vol. 7:13), purchases 19 hours weekly on WLWT, Cincinnati, biggest TV package sale yet in area, thru Counsellor Adv. Agency, Los Angeles . . . Fort Pitt Brewing Co. sponsor- ing 7 Sat. Cleveland Indians games and Chevrolet, RCA, GE dealers dividing 9 Sun. games, piped to WJAC-TV, Johnstown . . . GE and local dealers sponsoring first tele- casts of Salt Lake City Bees on KDYL-TV, thru Gillham Agency . . . Fred W. Amend Co. (Chuckles candy), spon- soring Buster Crabbe Show on WOR-TV, New York, Mon.- Wed.-Fri. 5-5:30, thru Henri, Hurst & McDonald, Chicago; Schneider Beverages sponsoring on Thu.; Chuckles spon- soring special 2-hour rodeo from Tarzan-movie star’s Jer- sey ranch on WOR-TV May 30 . . . Toni Co. to use TV in new drive to promote its White Rain soapless shampoo . . . Detroit Edison Co. sponsoring The Detroit Story for 10 Sundays, 3:30-4, on WWJ-TV, each episode depicting 25- year period in city’s history . . . Douglas Aircraft Co. buying 13 Sun. 11:30 a.m.-12:30 p.m. periods on KECA-TV, Los Angeles, for institutional programs stressing employ- ment oppoi'tunities, thru Charles Stahl, Los Angeles . . . Fox Wisconsin Theatres buys weekly 5-min. newscast on WTMJ-TV, Milwaukee . . . Among other advei’tisers re- ported using or preparing to use TV: Pleasant Valley Wine Co. (Great Western champagne & wines), thru Charles L. Rumrill & Co. Inc., Rochester; Green Spot Inc. (orange beverage), thru Beaumont & Hohman, Los Angeles; Sweets Co. of America (Tootsie Rolls), thru Moselle & Eisen, N. Y.; E. J. Brach & Sons (candy), thru Arthur Meyerhoff & Co., Chicago (formerly handled by J. Walter Thompson Co.); Ethyl Corp. (anti-knock fluid), thru BBDO, N. Y. (WTMJ-TV); Club Aluminum Products Co. (aluminum & glass cookware), thru Leo Burnett Co., Chi- cago (WTMJ-TV); Berkline Corp. (Berk-Lock chairs), thru Hammer Co., Hartford; Page-Barker Distributors (British hair lotion), thru Howard J. Ryan & Son, Seattle. Network Accounts: Ronson Art Metal Works Inc. (Ronson lighters), starting July 29, sponsors Star of the Family on CBS-TV, Sun. 6:30-7, thru Grey Adv., N. Y., taking time vacated by Nestle’s Mr. I. Magination, which moves to Sat. morning sustaining; Peter Lind Hayes and Mary Healy take place of Morton Downey . . . Ralston Purina Co. (cei-eal) starting June 9, sponsors Space Patrol on film on 33 ABC-TV stations (27 interconnected, 6 spotted). Sat. 6-6:30, thru Gardner Adv., St. Louis; Ralston also sponsors Your Pet Parade on ABC-TV, Sun. 4:30-5 . . . Lehn & Fink (Lysol, Hinds) reported buying whole Doodles Weaver Show, which starts June 9 on NBC-TV, Sat. 10-10:30; last week Lehn & Fink bought 10-10:15 por- tion thru Lennen & Mitchell and McCann-Erickson, both N. Y. . . . Schlitz moving Piditzer Prize Playhouse from ABC-TV Fri. 9-10 to same Fri. time on CBS-TV on weekly basis if Ford drops Ford Theatre at end of current run next month . . . Seiberling Rubber Co. (tires) reportedly will sponsor The Amazing Mr. Malone on ABC-TV, Mon. 8- 8:30, thru Meldrum & Fewsmith Inc., Cleveland; no starting date set . . . Esso Standard Oil Co. replacing Alan Young Show on CBS-TV Thu. 9-9:30 during July and August with news series . . . Bymart Inc. (Tintair) moving Sam Levenson Show on CBS-TV from Sat. 7-7:30 to Tue. 9- 9:30 starting in fall . . . Eversharp Inc. (writing & shav- ing instruments), starting May 5, bought 8:15-8:30 por- tion of Jack Carter Show on NBC-TV, Sat. 8-9, thru Biow. Financial & Trade Notes: General Instrument Corp. sales for fiscal year ended Feb. 28, 1951 were highest in its history, totaling $25,850,231 compared with $13,634,582 the preceding year. Net income before taxes was $2,639,- 099, after taxes $1,229,099 ($2.52 per share), compared with net loss after tax ci-edits for preceding year of $107,- 184 (22(‘). Net working capital was $4,578,923 at end of fiscal year, earned surplus $3,048,935, inventories $2,752,- 765. Notice of June 11 stockholders meeting discloses chairman Abraham Blumenkrantz’s salary as $54,000; Richard E. Laux, president-treas., $48,000; Monte Cohen, director and president of subsidiary F. W. Sickles Co., $36,000 plus $12,000 bonus. Of 608,573 shares of common stock outstanding, Mr. Blumenkrantz’s holdings were 12,000 shares, Mr. Laux 1600, Mr. Cohen 718. DuMont earnings statement for fii'st 12 weeks of 1951 ended March 25 reflects general sales up, profits down pat- tern. Sales for period were $18,851,000, compared with $15,113,000 same 1950 period. Net profit after taxes totaled $1,022,000 (42^ per common share on 2,361,054 out- standing), compared with $1,967,000 (92S in New Volk’s 21 Club . . , William I*. Iteady, fornierly TV sales mgr., appointed gen. sales mgr.. National Co. Special Supplement May 26, 1951 519 CONNECTICUT AVE. N.W. Editor’s Note: T)iis objective appraisal by an awthoritative non-trade observer merits attention of all our readers. We fully concur with Mr. Gould’s conclusions that TV is forcing “an economic upheaval’’ in radio but that “it is still much too early to write off radio as a lost medium.’’ From The New York Times, May 20, 1951 OUTLOOK FOR RADIO Readjustment in Over- All Approach and Programming Appears in the Making By JACK GOULD The hectic and anxious days which broadcasting has just experienced in the wake of the many proposed deals in- volving the American Broadcast- ing Company have pointed up with singular vividness the transitional stage through which the industry is passing. The main emphasis throughout the sundry negotia- tions, all of which were finally called off by Edward J. Noble, A. B. C. chairman, because he did not believe they would benefit his network, was almost exclusively on TV. Radio was just an also- ran. The present plight of network radio, however, is far from just an A. B. C. matter; it cuts across the industry as a whole. If the facts are faced, radio obviously is headed for trying moments next season and there is bound to be a readjustment both in its program- ming and over-all outlook. Already the handwriting is clearly on the wall. The Columbia Broadcasting System, the National Broadcasting Company and the American Broadcasting Company have announced cuts ranging from 10 to 15 per cent in their rates for advertising time, a move which un- doubtedly will be copied by the Mutual Broadcasting System. A reduction in radio personnel has been put through by N. B. C. and further payroll slashes! in radila as a whole would not be surprising. Changes Sooner or later, perhaps by next fall, this economic retrenchment will become increasingly notice- able in the programs heard on the air. Undoubtedly the first presenta- tions to go will be a number of the sustaining programs — N. B. C. last week revealed it was reducing such service by about two hours daily — which does not bode well for the future of such attrac- tions as classical music offerings, discussion periods, .etc. Service by the networks will consist more and more of just revenue-produc- ing programs. Local shows, liberal- ly sprinkled with spot announce- ments, may be expected to take up the slack. The thoughtful radio listener who at present has not been altogether happy with the diversity what he has heard via the networks may find the worst still lies ahead. What has brought about the revolution in radio isf of course, a matter of cold statistics. Taken away from the radio audience in g;reater or lesser degree has been a minimum of perhaps 36,000,000 persons, bajsed on an average audi- ence of three persons for each of the 12,000,000 television sets in use. Many industry leaders be- lieve this estimate, if anything, is conservative. More pertinently, however, is the known certainty that TV’s audience is bound to ex- pand through the years with a fur- ther contraction in radio’s follow- ing. As a result of these develop- ments, many of the larger national advertisers have cooled off on ra- dio and have put a bigger share of their budgets into video. 'Their attitude inevitably has influenced the position of the networks and set off a chain reaction which ultimately will bo felt by every type of station down to the 250- watter. If there is one party which takes vigorous exception to this turn of events, it is the out-of-town radio station affiliated with the major networks. Many of them realisti- cally recognize that perhaps some adjustment is inevitable, but at the same time they believe network officials have become unreasonably panicky over TV and have acted prematurely. Because radio may have to move into smaller quarters, they assert, is no reason to destroy its whole house. Factors Even with the growth of tele- vision, radio’s audience is still sub- stantially larger than video’s and in many communities listening has risen rather than fallen. Phe- nomenal as has been the sale of television sets — though si]gnificant- ly there is a serious slump in the market at present — the sale of radio sets is holding up astonish- ingly well. And it may easily be at least another year or two be- fore additional television sta- tions actually get on the air be- cause of the Federal Communica- tions Commission "freeze” on con- struction permits. There are other factors as well. One of the more important is the rapidly rising costs of television which seem certain to exclude many advertisers who, however, would be able to afford radio. Fur- ther, no one knows for certain at what point in the ownership of a television set the novelty may be- gin to wear off and the individual’? interest return again to radio and other old habits. Viewers who have had sets three or four years fre- quently find radio a welcome al- ternative. FM Frequency modulation radio also does not lack for vigor in many communities. Although a number of FM stations have folded up, others are enjoying slowly expand- ing audience^. With its emphasis on fine music, fidelity in reproduc- tion and freedom from static, FM radio is a real blessing for many who can take only so much of the vaudeville and quiz shows, visual or aural. There also is a minor boom in the sale of kits for quality FM tuners and amplifiers and in some sections of the coun- try FM sets reportedly are in short supply. All in all, there appears little doubt that radio Is bound to suf- fer an economic upheaval In con- siderable measure and that there will be some fatalities in the over- all number of stations. The im- portsmee of the national networks may be on the wane to some de- gree with more attention being paid to programs of local origin, particularly news broadcasts and recorded music shows. But in any case it is still much too early to write off radio as a lost medium. It can still do many things which lie beyond the power of television, one of which is the elimination of the visual commercial. ‘‘■•‘'-•*Haei .e -vwW'pW'' ri*. ft/ :■■! '_.:u/*»» •' ■ '. , -.jr Wttw’ ^v,^' ■O.f - .■ ' V>, ■.v,v^^:j,.^:2^..«^* r4 iV. • l*Tfl‘ '^'‘fn ' itiliBii liitlT '•■ lajiriflT ii rii Tiijijiij'ifr i TS.*’,.'-^' <■ tv- o ii il HM . T *4 if»|^4ll'jj( »«*f ■•^ V'tUTiitiiyi ^^■‘■■ii'*T j,nf»t»7 V/wo’ «'fi-' ft»;tt>iv|r:-^i?• ; •■''>iA •ykH' 4U ' '7 xitHTTi ® ‘I* «»H >o- iit»affl4tf jar^. # "fif ?ii4J?i- .Ife if, ' ' ^ i ’* '■ 4tt.- tr «t»iiig|A4 (tMil iv- ‘ ' ' ' ,rt»< wifl . >«?.■- aa-^^w v'*-‘MwiC ^«Mk,- ;**fl ,iton|pp?f; '. ■< Sr-J •w4, t»^-hMmA:* , ,. ■ ■•'*■■^1* , ’ llK-14 r. ' ' ' ' - Ih^'tJliAfl- ^(, iik^f f (gi, - . .- ; ■ ii-<»w i trTf’g'riWi '. >to m » ■ s ■ri§».^l'tc' "T UrVv **!l^' *^ ' ji . »ttt ai t . j W’l' is.'ia it 'Vt.o^tr^' ^••i.- I r^ a -| • ■■ 'aM .'W. . . . *K4K^4l^Ji „ , ‘ ^ . t»t t4P. ^ ‘^t ■ ^ jlol^'t 'to«e?Xj. kShf'V r W ' r/if'tiiliylSiblCwii «/»4xv^'».’li>i i ii*d^ v4 * ‘ •; U - : • iS ""■m ij' *>' f tn »r*tttjfA( <*v^i 5f^(U/': j» '.Vs*' ^'l i^*^'^'--- " ' j V '441 I .^ • • ■■»* ^r,', , I \ ' I -w ■■' 1,^ -"'*-'TiM tW' I»i a3o8' tu )i t*l U»*W’<44*- iir j t# «no>* B ,:>' . tbi^i _4 ■vci^auaBAik.^'K S f »c r 13 Nobilizaiion Holes: Speaker manufacturers don’t seem very interested in proposal by NPA Electronics Div. to help them get copper for electromagnets to replace cobalt- containing alnico permanent magnets. It’s understood there have been relatively few replies to recent letter sent all speaker and focus device makers, asking their copper needs for next 4 months so Electronics Div. can make rec- ommendations to Copper Div. for special allocation. Here are reasons for sudden lack of interest by speaker industry, which was TV-radio industry’s crisis spot a few short months ago: It’s known that a number of speaker makers are importing large quantities of alnico magnets from abroad. One is reported to have purchased 25,000 speaker magnets in France. While distribution of raw nickel and cobalt — alnico magnets’ principal ingre- dients—is strictly NPA-controlled. there are no cm’bs on purchase of finished magnets. Add to this the TV sales slump. Demand for speakers is down somewhat, but demand for copper-wound coils and focus devices has dropped much more sharply, and some coil manufacturers have found themselves in unusual posi- tion of being able to take on new customers. Some of them are now making field coils for electromagnetic speakers. So, many speaker makers, now turning out as many as they can sell — and focus device makers, whose orders have taken big dive with TV slump — see no reason to appeal for copper to make components for which they have no customers. June’s cobalt and nickel allocation to magnet makers will be about same as May — roughly 25% of amount used during first-half 1950 base period, or 30,000 lbs. of cobalt plus about 20,000 lbs. of nickel. * * * :> W. W. (Wally) Watts, RCA engineering products v.p. on leave, was named deputy DPA administrator May 24 by acting administrator Edwin T. Gibson in realignment of duties of top officials. Formerly assistant to the ad- ministrator and chairman of Production Executive Com- mittee, Watts will now supervise all DPA production and procurement activities. This includes direction of 6 inter- agency boards — Production Executive Committee, Elec- tronics Production Board, Aircraft Production Board, Pro- curement Policy Committee, Central Committee for Re- gional Defense Mobilization Committees, Critical Areas Committee. He also will continue to seiwe as chairman of Production Executive Committee and acting chairman of Procurement Policy Committee and Aircraft Production Board. Charles E. 'Wampler and Nathaniel Knowles were also named deputy administrators, in charge of program & requirements and staff service respectively. Edmund T. iJorris Jr., on leave from Westinghouse, chairman of Electronics Production Board, took over May 22 as director of NPA Electronics Div., succeeding John G. Daley, retired . . . Harry J. Holbrook, on leave from Norge D-'v., Borg-Warner Corp., appointed director of NPA Consumer Durable Goods Div. May 21 . . . L. M. Slaght, ex- ECA, named director of NPA Foreign Div. . . . Col. Justice IM. Chambers, holder of Congressional Medal of Honor, May 18 became Civil Defense asst, administrator for plans & policies. M ^ iJC File your CMP form now, is advice of responsible au- thorities at NPA. All indications are that you’ll get bet- ter break in allocations, earlier .July deliveries, if you get form 4A and/or 4B in as soon as possible. But whatever you do, don’t miss May 31 deadline. If you can’t get all your requirements together by deadline time, NPA advises, send in whatever you have — you can always file supple- mentary statement later. Better deal on upkeep supplies will result from NPA’s May 24 amendment to Reg. 4, which gives all public and private establishments (except households) DO-97 priority ratings to obtain maintenance, repair and operating (MRO) equipment (Vol. 7:9). New amendment (a) lifts quarterly MRO quota from 100% to 120% of average quarterly base period MRO expenditures, (b) permits or- ganizations to use fiscal year ending before March 1, 1951 as base period instead of calendar year 1950, (c) permits establishments using DO-97 priority for 20% or less of MRO quota to buy unlimited additional amount of upkeep supplies without priority rating, (d) permits firms with more than one plant to decide whether MRO quotas are established for each plant individually or for company as whole. Rapid tax amortization certificates covering $54,800,- 000 in expansion of facilities for production of electric and electronic equipment (including such items as wire and cable as well as components and end products) have been issued by Govt, since program started last October. This figure represents 12% of the $439,500,000 certified for ex- pansion of all types of finished product production, and about 1 1-2 % of $2,842,800,000 certified for all production, including basic materials. The $54,800,000 certified for elec- tric and electronic expansion represents 59 certificates at average amortization of 74.9%, total cost of facilities being about $73,200,000. Total of 379 applications was filed in electric and electronic field for amortization of $253,800,000 in expansion. Tighter squeeze on copper is heralded by NPA’s hike in percentage of defense-rated orders that producers of copper and copper-base alloy products must accept. Px'o- ducers of wire mill products were notified they’ll be re- quired to accept priority orders for July shipments up to 80% of their average monthly shipments during first- quarter 1951. Other copper producers wei'e ordered to re- serve 20-115% of their first quarter production for de- fense orders. Canada will begin rationing aluminum, cop- per and brass June 1, allotting to each user 100% of his 1950 use. All firms using copper or copper-base alloys must file monthly reports of their operations, beginning with April, to guide NPA in making copper allotments under Con- trolled Materials Plan, NPA announced May 14. Companies using these materials, and which haven’t received reporting forms from NPA, should write Copper Div., Metals & Min- erals Bureau, National Production Authority, Washington. * TV’s value to guided missiles is pointed out in May 21 Time Magazine article which says: “Some missilemen think that the Govt, should shut down the TV industry to free electronic men for guided-missile work.” Article tells of remotely-controlled planes with TV “eyes,” con- trolled with such accuracy that experts claim: “We could have flown that plane right into the mayor’s office” in city hundreds of miles away. Best explanation yet of rapid tax amortization and how it works, was recent speech by U. S. Steel chairman Ii-ving S. Olds. Copies of this simple and interesting ex- planation are available from J. Carlisle MacDonald, asst, to chairman, U. S. Steel, 71 Broadway, New York 6, N. Y. Permanent subcontract display will be set up by Air Force late next month at Chicago’s Navy Pier. Prime con- tractors have been invited to display items for which they need subcontracting facilities. Newly-revised pamphlet. How to Sell to U. S. Army, is available for 30 <1 from Superintendent of Documents, Washington, D. C. 14 NBC Count of TV Sels-in-Use by Cities As of May 1, 1951 Estimates are sets within .i Mv/m contours (60 ml.), excluding overlaps CURRENT TV sales slump is reflected in NBC Research “census” report showing only 328,400 sets-in-use added during April — making total of 12,499,900 as of May 1. Similarly, March figure of 423,100 (Vol. 7:17) fell be- low February’s 601,900 (Vol. 7:12), indicating pace of audience growth is reducing. These are the May 1 figures (consult individual stations for estimates of number of families within range): No. No. Area Stations Sets Interconnected Cities Ames (Des Moines) 1 58,400 Atlanta 2 110,000 Baltimore 3 297,000 Binghamton 1 37,200 Birmingham — 2 51,700 Bloomington, Ind. 1 16,200 Boston 2 732,000 Buffalo 1 202,000 Charlotte — 1 75,300 Chicago 4 921,000 Cincinnati 3 255,000 Cleveland 3 470,000 Columbus 3 147,000 Davenport- Rock Island _ 2 56,400 Dayton 2 128,000 Detroit 3 472,000 Erie 1 46,900 Grand Rapids 1 78,800 Greensboro 1 67,000 Huntington - 1 43.000 Indianapolis 1 132,000 Jacksonville 1 32,000 87,300 Johnstown 1 Kalamazoo 1 36,800 Kansas City 1 119,000 Lancaster 1 97,100 Lansing 1 50,000 Louisville — 2 89,200 Memphis 1 85,000 Milwaukee 1 239,000 Mlnneapolls- St. Paul 2 259,000 Nashville 1 29,100 New Haven 1 153,000 New York 7 2,350,000 Norfolk 1 67,300 Omaha 2 76,800 Philadelphia 3 852,000 No. No. Area Stations Sets Interconnected Cities — (Cant’d) Pittsburgh 1 255.000 149.000 78,600 Providence 1 Richmond 1 Rochester .... 1 8i;400 155,000 Schenectady 1 St. Louis 1 289,000 Syracii. McMahon (D-Conn. ) » Mundt (R-S.D.), McCarthy (R-Wis.)* Some seemed impressed, Johnson saying; "I think more Senators should see this." Engineers and attorneys specializing in radio saw demonstrations next day. One engineer's reaction was typical; "There's no magic in it. DuMont has done on a national scale what most of us have done on a local or regional basis — squeezed FCC's 'loose' separations down to 180-mile minimum, moved channels to cities where they can be used, taken those educational asterisks off channels." * ♦ * * Coy's confirmation hearing was veritable love-feast with Johnson. Only Johnson and Magnuson (D-Wash. ) attended, and Johnson concluded by heaping praise; "You have the finest conception of the public interest of anyone from the administrative agencies appearing before us. I'm pleased beyond expression." Coy was emotionally moved. "I'm very grateful to you," he said. "So few people like what we do, that perhaps I'm oversensitive about those comments you have just made." FGC GETS BIG ROLE IN BUILDING CURBS: The knotty question of how to determine whether I a community "needs" new TV or radio stations has been thrown into FCC's lap. Community need and material availability — these are basic criteria NPA uses in deciding whether to authorize new construction. And, as far as TV-radio station construction is concerned, it's now pretty certain FCC will get the job of deciding where stations are needed, while NPA Construction Controls Div. keeps its finger on the building materials situation. Several applications to build radio stations reportedly were filed with NPA this week, but they're being held up pending determination of TV-radio building criteria under construction control order M-4 (Vol. 7;19-20). Definite decisions aren't expected for a few weeks pending completion of NPA-FCC negotiations — but criteria may follow general lines of the 5 priorities for TV channel assignments in FCC's third "freeze" report (see TV Allocation Report, Vol. 7;12). And it appears certain that FCC will take construction controls into consideration in its licensing policies. As one commissioner said; "There's no use granting a CP for a station that can't be built." NPA will be lenient in granting authorizations to build stations which don't consume unnecessarily large amounts of steel. All signs so indicate, but "Radio City" type projects appear to be out of the question for the duration. NPA Electronics Div. is still claimant agency for broadcasters, and as such will be specially helpful if obstacles block path of broadcasters seeking construc- tion authorization. It's a good idea for applicants to send duplicate copies of their applications to J. Bernard Joseph, chief, end products section. Electronics Div. , NPA, Washington. Original applications go to Construction Controls Div. ^ ^ ^ ^ Remodeling of existing facilities, as well as new construction, is covered by M-4. Not more than $5000 worth of either can be done without NPA authorization. ^ This has worried many present TV-radio broadcasters, as well as NARTB, whose offi- cials conferred with NPA Administrator Manly Fleischmann May 31 about problems ) raised by the construction order. At this meeting. Fleischmann indicated NPA will probably permit stations to increase powers, and let grantees begin TV transmission, they can do it without requiring large amounts of structural steel. Actually, in many cases, power in- ) creases and other additions to present facilities will be possible without necessity I of application to NPA. i "Personal property" isn't considered by NPA as part of construction, and isn't figured in cost of building or remodeling. Without authorization, "personal property" may be installed, so long as installation costs don't exceed $2000. ' i There's no ceiling on cost of equipment itself. NPA defines personal property as * "any and all equipment or fixtures which may easily be removed without material injury to the structure, equipment or fixtures." - 5 - Based on previous NPA interpretations, it's reasonable to assume this will include all electronic equipment, including transmitters, camera chains, mobile cameras and transmitters, turntables and probably antennas — but not towers. Already classified as personal property are: film projectors and equipment, sound reproducing systems, emergency power plants, spot and flood lights, etc. Most of the equipment needed to increase power of a TV or radio station is "personal property." It may even be possible to add TV transmitting facilities to an existing AM station by adding little more than "personal property" — if existing studio and antenna supporting structures are used. Personal Notes: Gen. David SainofT, RCA president, sails June 15 on Queen Mary for 2 months in Europe . . . James W. McRae appointed Bell Labs v.p. in charge of de- velopment dept., succeeding A. B. Clark, v.p. and coordina- i tor . . . Jules Seebach, WOR-TV v.p., nominated for presi- dency of American Television Society, elections by mail to be conducted until June 15 . . . Harry R. Lubcke, who es- tablished W6XAO in 1931 (now KTSL) and claims it was nation’s first TV station, has resigned from Don Lee to establish own consulting TV-electronics practice at 2443 Creston Way, Hollywood . . . Gordon J. Alderman, ex- WAGE, Syracuse, joins W’HEN in that city as production mgr. . . . Richard S. Paige, recently with DuMont, has re- turned to NBC-TV sales planning & research dept, as supervisor of ratings . . . Charles H. McQuiston, NBC-TV production cost controller, promoted to asst, to Lyman Munson, director of TV network operations, and J. Robert Myers appointed NBC-TV purchasing mgr. . . . Louis J. Kleinklaus promoted to chief engineer of New York Times’ WQXR, Athan Cosmas to AM-FM transmitter chief; Kleinklaus succeeds late Russell Valentine . . . T. F. Flanagan resigns as managing director of National Assn, of Radio & TV Station Representatives due to ill health . . . Mike Jablons, recently asst, to FCC Comr. Hennock, named TV-radio director of N. Y. Herald Tribune Fresh Air Fund . . . Walter E. Benoit appointed mgr. of new Westinghouse Air-Arm Div., preparing to go into new 400,000 sq. ft. plant in Baltimore; Joseph E. Baudino, KDKA mgr., succeeding him as gen. mgr. of Westinghouse Radio Stations Inc. . . . Network Accounts: Lehn & Fink (Lysol, Hinds), start- ing July 31, sponsors Bride & Groom on CBS-TV, Tue. 3:15-3:30, thru Lennen & Mitchell and McCann-Erickson, both N. Y. Hudson Pulp & Paper Corp. sponsors Thu. show . . . Noxzema Chemical Co. (skin cream), using TV first time, starts Cameo Theatre June 18 on NBC-TV, Mon. 8-8:30, thru Sullivan, Stauffer, Colwell & Bayles, N. Y. ; time is vacated by Speidel’s What’s My Name? . . . Best Foods Inc. (Shinola shoe polish & Rit dyes), starting July 24, will sponsor Tue. & Thu. 1:30-1:45 segments of Garry Moore Show on CBS-TV, thru Earle Ludgin & Co., Chi- cago . . . General Electric Co. starting Sept. 17, sponsors I Mon.-Wed.-Fri. 1:30-1:45 portions of Garry Moore Show on I CBS-TV, thru Young & Rubicam, N. Y. . . . Procter & Gamble replacing filmed shows with live on Fireside The- \ atre, dramatic shows with same title, starting July 3 on I NBC-TV, Tue. 9-9:30, thru Compton Adv. . . . Campbell Soup Co. Sept. 7 replaces Henry Morgan Show with Aldrich Family on NBC-TV, Fri. 9:30-10, thru Ward / Wheelock Co., Philadelphia; General Foods is retaining Sun. 7:30-8 time vacated by Aldrich Family . . . Armour I & Co. starts Garroway at Large Sept. 5 on NBC-TV, Wed. il 10:30-11, thru Foote, Cone & Belding, Chicago . . . Schlitz ; as of June 29 cancels Piditzer Prize Playhouse on ABC- 'I TV, Fri. 9-10, takes same time on CBS-TV for film show ' during summer from July 6; in fall will sponsor dramatic > program, replacing CBS-TV’s Ford Theatre. Station Accounts: In front of backdrop of blown-up newspaper classified page, Lenore Kingston’s Classified Column on KTTV, Los Angeles, Mon. thru Fri. 4:30-5, al- lows people to present their “situations,” “for sale,” “lost and found” and other want ads free in person after having submitted them in writing. Regular participating spon- sorships are revenue source — at $80 each . . . Bruner- Ritter Inc. (Bretton monogram v/atch band) planning TV program or spots this fall, thru Raymond Spector Co., N. Y. . . . Kenmar Mfg. Co. (chairs) offering TV film spots to its dealers for local placements . . . Among other ad- vertisers reported using or preparing to use TV: Holiday Brands Inc. (Holiday soluble coffee), thru Hoag & Pro- vandie, Boston; Union Oil Co. of California (Royal Triton motor oil), thru Foote, Cone & Belding, Los Angeles; Craftshire Sports (misses’ & women’s suits), thru Wm. Wilbur Adv., N. Y.; Car-Ree-All Products Inc. (Roll-a-Vac vacuum cleaner carts), thru Ray C. Jenkins Adv., Minne- apolis; Skinner Mfg. Co. (Raisin Wheat), thru Bozell & Jacobs, Omaha; Bowes Industries Inc. (Bondware paper plates), thru Russel M. Seeds Co., Chicago; Dad’s Root Beer Co., thru Malcolm-Howard Adv., Chicago; Cameo Curtains Inc. (window curtains), thru Product Services Inc., N. Y. Another proposed subscription-TV entry came into field this week with announcement that Paramount Pic- tures Corp. had bought half interest in International Tele- meter Corp., 846 No. Cahuenga Blvd., Hollywood, develop- ers of a coin-operated fee-TV system designed to accom- plish same thing that Zenith’s Phonevision does via phone lines and Skiatron’s Subscriber-Vision with coded cards. Hollywood company has David Loew, son of late Marcus Loew, as president; Carl Leserman, ex-United Artists sales mgr., v.p.; Eugene J. Zukor, son of late Adolph Zukor and Paramount executive, as secy-treas. Paramount Pictures’ Paul Raibourn will be chairman. Loew and Leserman are independent film producers. Request to FCC for experimental grant to test device is due soon. It’s attachable to any TV receiver, has been under development for 2 years. It can be used not only with broadcast pictures but on closed-circuit frequencies. To refute immediate rumors that system means Para- mount is ready to release films for TV, Paramount Pictures v.p. Y. Frank Freeman declared: “There is no prospect in view of marketing Paramount pictures on TV or of making pictures at Paramount for TV. I cannot say,” he added, “that we will never make pictures for TV.” * ♦ * * Some sort of movie-Phonevision tieup was subject of conjecture in movie-TV trade this week, following May 31 luncheon meeting of FCC Chairman Coy, Zenith’s E. F. McDonald and MGM-Loew’s Nicholas M. Schenck and Leo- pold Friedman. Heretofore, Schenck has been adamant against release of film features for TV — Phonevision or otherwise. He did, however, supply some film for recent Phonevision tests in Chicago. NOBILIZER WILSON CAUTIONS INDUSTRY: In light of current confusion about color, these quotes from speech by Defense Mobilizer Charles E. Wilson, prepared for delivery before Executives Club of Chicago May 25, are worth careful heed; "This optimist notes pessimistically that some civilian manufacturers are still hanging out the sign; 'Business as usual. ' They are designing and building new models for which tools must be provided, and to do so they are using skilled men who should be devoting their time and talents to the defense program. "For the period of our extreme emergency, this practice must be reversed. "Let's scrap idea of new seasonal designs in automobiles, television sets, dishwashing machines or any other product whose 1950 design is plenty good enough. "Let's scrap the idea of wasting the ingenuity of craftsmen on civilian gadgets when their brains and magnificent handicraft are needed to turn out new weapons...! have run across instances of a whole class of men graduating from elec- tronics schools going into the civilian TV business, making and servicing home sets. And this at a time when our defense industries are badly in need of their services." OUTPUT STILL DOWN, FACTORY INVENTORY UP: For fifth straight week, tv output stayed well below the 100,000 mark it has far exceeded through most of 1950 and the first quarter 1951. Production for week ending May 25, which closes statistical month, totaled 85,146 imits (7407 private label), down from preceding May weeks' 93,681 (Vol. 7:21), 82,224 (Vol. 7:20), 66,077 (Vol. 7:19) — or 327,128 for 4-week month as against 469,157 in April, 874,634 March, 679,319 February, 645,716 January. Inventories at factory climbed again — to 598,141 from preceding week's 562,138 (Vol. 7:21). Thus, it would appear that about one-third of estimated over- all trade inventory of 1,750,000 is at factory. (That figure isn't official; actual figures should be known by mid-July when RTMA institutes monthly inventory checks.) Radio output for May 25 week was 350,323 sets, holding to average pace for year thus far — factory inventories at 299,399 vs. 281,432 week before. Breakdown: 153,424 home radios, 148,821 auto, 48,078 portables. PHILCO OUT WITH NEW LOWER-END LINE: Philco pops 11 new models in lower end of line next week — in manifest belief today's is a price market and with statement that its table model inventories are depleted. Prices range $199.95 to $329.95 for 16 & 17-in. tables, $299. 95-$369. 95 for 17-in. consoles, include tax but not warranty. Models are now being distributed, Philco states, shown first to Atlantic-New England-Texas division dealers who left June 2 on week's Queen of Bermuda cruise. Philco states all sets "are so engineered that by the use of an adapter they can re- ceive future uhf telecasts and also the Columbia color signals in black-and-white." Philco is first major producer to bring out new line, move coming as some- thing of surprise in view of becalmed trade. At Chicago convention in January, it had new line of 17 sets, including 12)^-in. metal table at $199.95, dropped, plus 11 models with 17-in. tubes, 6 with 20-in. The 20-in. are continued, but other upper- end models will be announced later. (For details of January line, see Vol. 6:52.) Two 16-in. tables in new line are No. 1610, walnut-finished metal cabinet, $199.95, and 1612 at $229.95. Five other tables are 17-in. rectangular: No. 1808, mahogany, $259.95; 1810, mahogany, $279.95; 1810L, same in blonde oak, $299.95; 1812, Contemporary mahogany, $299.95; 1812L, same in blonde, $329.95. Four new consoles, all 17-in. : No. 1839, mahogany, $299.95; 1841, blonde, $349.95; 1831, mahogany, leather tooling, $339.95; 1831L, same in blonde, $369.95. Philco distributor cruises also include this week's for West Coast dealers on S.S. Lurline to Hawaii , 2 weeks; June 9 , Allegheny and Great Lakes area dealers on Queen of Bermuda, one week; June 16, Southern, Southwestern, New York-Newark dealers on Queen of Bermuda, one week. 6 7 Topics & Trends of TV Trade: Bloratorium on Reg- ulation W for SO days, then 15% down payment terms like those for household furnishings, was asked of Congress June 1 by Stromberg-Carlson president Robert C. Tait, appearing for RTMA before House Banking & Currency Committee. He will also appear before Senate Banking & Currency Committee June 5 with same plea. Congres- sional committees are weighing renewal and revisions of Defense Production Act, which authorizes credit controls. Highlights of Tait’s fact-filled testimony before House committee, which drew no questions from attending Reps. Brown (D-Ga.), Betts (R-0.), Cole (R-Kan.): (1) Unemployment in TV-radio industry now stands at 50,000 workers. (2) Factory inventories now are well over 500,000 — compared to average of 65,000 sets first 5 months 1950. Tait graphically illustrated this point by declaring that, in 1950, for every 5 sets sold one was in inventory; today, for every 5 sets sold, 25 are in inventory. (3) TV has unique problem since 50% of its market has been withheld by FCC “freeze.” (4) TV’s only market today is in lower income class, and it’s hardest hit by 25% down payment requirement. TV has pretty well saturated higher income groups, he said, and replacement market isn’t important nationally. Significant point made by Tait — and also by spokes- men for other industries — was that Regulation W was de- signed to retard inflation, “not to cause deflation.” With charts prepared by consulting economists Boni, Watkins, Mounteer & Co., Tait showed that TV and auto sales have been worst hit by Regulation W. Retailers want Regulation W changed to 15% down payment, 18 months to pay — ^instead of present 25% down, 15 months to repay. They also w^ant permission to count trade-ins against down payment. That’s sense of May 29 letter to both Congressional committees by NARDA presi- dent Mort Farr. A bill to suspend Regulation W for 60-90 days will be introduced by Rep. Patman, Texas Democrat. He made statement after House committee heard ex-Senate major- ity leader Scott Lucas, of Illinois, representing American Finance Conference (automobiles) and ex-Senate major- ity whip Francis J. Myers, of Pennsylvania, representing National Foundation for Consumer Credit and the Retail Credit Institute of America. Both testified about harshness of credit terms. ♦ * * * New June 1 Emerson prices are $30-$60 above 30-day “interim” lists announced May 1 (Vol. 7:18) — but are still $30 to $70 below pre-May 1 prices. Emerson dropped from line 14-in. table, two 17-in. tables, and three 19-in. consoles. Following are new prices, with old list price (before 30-day cut) in parentheses: 17-in. table: 696, ma- hogany, $249.95 ($299.95). 17-in. consoles: 686, mahog- any, $299.95 ($349.95); 686, blonde, $309.95 ($359.95); 687, mahogany, doors, $329.95 ($379.95); 687, blonde, doors, $349.95 ($399.95). 20-in. consoles: 692, mahogany, $399.95 ($459.95); 693, mahogany, half doors, $429.95 ($479.95); 693, blonde, half doors, $449.95 ($499.95); 694, mahogany, full doors, $459.95 ($499.95); 694, blonde, full doors, $489.95 ($529.95). Combination: 16-in., 666, mahogany, AM-FM-phono, $429.95 ($499.95). Govt, orders for radio-radar equipment received during first 1951 quarter by RTMA members totaled $184,216,795. This compares with $41,305,390 same 1950 quarter. Radar accounted for $95,735,292 of total, communications equip- ment $62,999,826, radio navigational aids $16,475,767, sonar $5,874,976, laboratory and test equipment $21,814,999, crystals $315,935. Trade Miscellany: Latest gimmick of sales-hungry re- tailers is “Action Sale,” extensively advertised in Boston and Detroit . . . Monarch Sapliin auctioneer, up before New York City license commissioner, called “grossly ex- aggerated” reports that 7000 sets were sold at sale that started whole auction ruckus (Vol. 7:20-21) . . . Washing- ton Phillips chain had “Warehouse Sale” this week, offer- ing trade-in 10-in. sets for $29, 14-in. at $79, 16-in. at $88, 17-in. at $99 . . . Muntz TV is advertising 20-in. table at $179.95 . . . GE guaranteeing TV prices to Nov. 15 in- stead of Sept. 10 first announced (Vol. 7:18), also is in- augurating “factory-paid free floor plan to finance dealer working inventories” . . . Greber Distributing Corp., giving up Hallicrafters franchise, June 1 succeeds Simon Distrib- uting Co. as Washington-Baltimore Motorola distributor . . . Philco sales v.p. Jack Otter announces appointment of Albert J. Rosebraugh to new post of mgr. of distribution, John J. Moran suceceding him as radio sales mgr. and John L. Utz named special TV representative. ^ ^ ^ Complete electronics components sold to manufac- turers come under OPS price regulation CPR-22, but same parts sold to replacement market stay under Jan. 25 general ceiling price regulation. That’s official inter- pretation by OPS of problem that’s caused a lot of head- scratching since manufacturers’ ceiling price order came out last April (Vol. 7:15). Meanwhile, Lee McCanne, chief of Housewares & Accessories Branch, Consumer Goods Div. — on leave from Stromberg-Carlson — has added mar- ket analyst Ned Crane as electronics parts specialist, join- ing TV-radio cabinet specialist Earl Smith, from Connecti- cut Cabinet Co., Mystic, Conn, to TV-radio section. ^ Now it’s the auctioneers who are haunting TV dealers, offering to take inventory loads off their backs. Solicita- tion got to point where Philadelphia Philco distributor wrote all dealers warning that trans-shipments to non- authorized sources were violation of franchises, that “under no conditions are Philco dealers to be a party to this scheme.” Week saw more auctions held, several cancelled. Big- gest of those taking place was by Detroit’s House of Tele- vision. Audience got anti-auction dealers’ handbills list- ing what they should look for in sets they bought — in same vein as Bruno-New York ad last week (Vol. 7:21). Scheduled auctions were cancelled in Buffalo, Philadel- phia, Keyport, N. J. * * * * Clarification of these TV trade practices are suggested by Federal Trade Commission in agenda for June 21 hear- ing in auditorium of National Archives Bldg., Washing- ton: (a) interference claims, (b) picture tube size, (c) long distance reception, (d) simplicity of operation, (e) number of tubes, (f ) necessity of certain accessories. Gen- eral industry practices such as pricing, warranties, dis- criminations, trade-mark and trade-name imitation, com- mercial bribery, are also recommended for consideration. FTC Chairman Mead will conduct meeting, open to entire industry. TV manufacturers who fair trade are trying hard to get all franchised dealers in 45 fair trade states signed up in order to meet Supreme Court decision last week which held manufacturer can’t enforce prices if dealer hasn’t agreed to do so (Vol. 7:21). Magnavox this week said only small number of its dealers haven’t yet signed. Packard-Bell is reported to have every dealer signed. Emerson, which fair trades through intra-state distribu- tors, goes to court June 4 to enjoin New York retailer from selling its TV sets below lists. - 8 - “Greatest name in television” is Allen B. DuMont and outstanding TV firm is RCA, in opinion of 1200 business leaders participating in survey conducted by Forbes Maga- zine. As reported in June 1 Forbes, RCA received 46% of votes as outstanding firm, DuMont 20%, Philco 9%, Admiral 8.5%, Zenith 5%, Motorola 4.5%, Magnavox 2.5%, Capehart 2%, Stromberg-Carlson and Hallicrafters 1% each, and Emerson, Crosley, Meek less than 1%. Dr. DuMont was voted TV’s outstanding leader by 51%, RCA chairman Sarnoff 26%, Admiral president Siragusa 11%, RCA president Frank Folsom 3%, Zenith president Mc- Donald 3%, Motorola president Galvin 2%. Dr. DuMont came in fourth, mentioned on 13% of ballots, in tabulation of nation’s outstanding business figures. United Airlines president Eddie Rickenbacker was No. 1 with 27%. RCA was No. 12, and mentioned on 40% of ballots, in tabula- tion of outstanding corporations, with General Motors selected for first place on 63% of ballots. Plant Expansions: RCA dedicates new tube plant in Cincinnati June 11 to memory of late RCA Victor execu- tive v.p. John G. Wilson; it’s old Rich Ladder Mfg. Co. plant, 136,000 sq. ft. and 17 acres, will be devoted mainly to subminiature tubes . . . GE broke ground May 30 for new 50-acre, 338,000 sq. ft. plant costing $15,000,000 at New Hartford, N. Y., near Utica, for manufacture of military electronics gear, expected to be completed in 12-15 months . . . Willys-Overland acquiring new Toledo plant for electro-mechanical production, will employ about 100 elec- tronics and mechanical engineers on 2 developmental con- tracts for Signal Corps and Glenn L. Martin Co. . . . National Video, Chicago cathode ray tube manufacturer, building new plant at Grayslake, 111., plans production there in 4-6 months. Bearish on fall TV sales is retail furniture consultant Arthur Fertig, who feels buying trend earlier this year is “very likely to recede sharply in the last half of the year.” Furniture and home furnishing stores, he says in inter- view in May 24 “Buyers and Sellers” column in New York Herald Tribune, won’t meet high volume of last half 1950. “Saturation points temporarily appear to have been reached in TV, particularly in the East,” he says — which would indicate he doesn’t believe Regulation W is sole villain of present TV sales slump. TV-radio accounted for 13.62% of total furniture & home furnishing sales first quarter 1951 vs. 9.36% same period 1950, Fertig says. Canadian RMA reports 4409 TVs sold by factories for $2,500,867 during April, with inventory of 3636 units as month ended. Table models under $400 list totaled 153, over $400 totaled 1373. Consoles under $500 totaled 97, over $500 totaled 2722. TV-phonos numbered 64. Wind- sor area (Detroit) took 36% of April sales, Toronto-Ham- ilton 34%. First 4 months of 1951 unit sales were 18,461, valued at $10,197,722. Cumulative TV sales to April 30 totaled 56,284 valued at $26,474,305, with 43% in Windsor area, 35% in Toronto-Hamilton, 17% in Niagara Penin- sula, 5% other areas. From theatre owner to TV dealer is story told in May 25 Tide Magazine. Seems Colver, Pa., theatre owner ran only movie house in coal-mining community with weekly attendance of about 1700. Recently attendance fell to 700. Looking over rooftops of town of 1500, theatre owner saw TV aerials all over the place, immediately boarded up his theatre, opened up TV store across the street. Mobilization Personals: Everard L. Stuhrman, ex- Air Force procurement, named deputy chief, and H. J. Brad- field, ex-Defense Dept. Research & Development Board, technical div. chief. Office of Electronic Programs, Muni- tions Board . . . Clay P. Bedford, Kaiser-Frazer v.p., ap- pointed assistant to Mobilization Director Charles E. Wil- son, in charge of expediting defense production. Nobilizaiion Notes: First of 3 new consumer durable limitation orders for third quarter — M-47 steel order, amended June 1 — limits manufacturers to 70% of steel used during average base period quarter, as expected (Vol. 7:20). Scheduled to appear shortly are similar orders on copper (60%), aluminum (50%). Most objectionable features of old M-47 (which im- posed 80% steel limit for second quarter) have been eliminated in new order, as recommended by TV-radio manufacturers (Vol. 7:10-11,14). Here are the major changes: (1) “Strait jacket” provision of old order — which in effect froze manufacturers’ “mix” as between (a) radios, (b) radio-phonos, (c) TVs, (d) TV combinations, (e) phonos & record players — has been modified. The 5 cate- gories have been broken down to 3 now: (a) Radios & radio-phonos, (b) TVs & TV combinations, (c) phonos & record players. This permits more flexibility of output to meet consumer demand. (2) Old order’s discrimination against “assemblers” as distinguished from “manufacturers” — which discour- aged conservation — has been wiped out entirely. “Assem- blers”— including possibly half the TV-radio set makers — will no longer be required to limit their output to a per- centage of the units they turned out during base period. As of July 1, they will have 3 alternative methods of limit- ing their use of steel: (a) By weight of steel used in parts; (b) by number of steel-containing parts; or (c) by number of end units. (3) Alternative base period of second-half 1949 is provided for seasonal manufacturers dissatisfied with first- half 1950 base. Since industry turned out more than twice as many TVs during first-half 1950 than during second-half 1949 (3,114,000 vs. 1,557,000), and consider- ably more radios, most TV-radio companies will probably stick with 1950 base. He * * * Electronic distributors’ stocks of power and special purpose tubes, test equipment, wire and cable, batteries are “seriously depleted.” This was indicated in survey of 237 distributors transmitted to NPA May 28 by Electronic Parts & Components Distributors Advisory Committee (for membership see Vol. 7:10). Survey showed receiving tubes in good supply, except for spot shortages in individ- ual types. Special distributors’ task group report urged that licensed “ham” operators be authorized to use DO-97 (maintenance, repair and operating supply) priorities to obtain replacement parts. Other recommendations by dis- tributors: (a) At least 50% of first-half 1950 production of test equipment be made available to distributors during remainder of 1951. (b) NPA reconsider committee’s pro- posal (Vol. 7:10) to make available during second-half 1951 at least 150% of number of replacement parts sold during first-half 1950, in light of TV’s phenomenal expan- sion. (c) No inventory curbs be placed on finished goods. Four certificates of necessity for accelerated tax amortization on new electronic production facilities were approved by DPA, out of total of 135 certificates for rapid depreciation of $178,485,663 in new productive facil- ities of all types issued week ended May 25. Certificates were granted to: Stewart-Warner Corp. for production of electronic equipment at Chicago, $958,600 at 75% amorti- zation; F. W. Sickles Co., Joliet, 111., transformers and coils, $386,750 at 75%; Sangamo Electric Co., Carbondale, 111., mica capacitors, $347,307 at 75%; Lavoie Laboratories Inc., Morganville, N. J., electronics, 47,780 at 85%. Picture tube sales took drastic drop in April, RTMA reports. Only 278,955 worth $6,869,181 were sold, com- pared with 608,396 which sold for $16,064,425 in March. WITH AM-FM REPORTS Special Color Reports June 2, 1951 i 9 CONNECTICUT AVE. N.W. If WASHINGTON 6, 0. C. • TELEPHONE MICHIGAN 2020 J ( Color Issue — Public Now the Arbiter, page 1. The Color Edict — Impact on the Trade, page 5. ' This Sectionzy colorcasting — Choice up to Stations, page U- Industry Comments on Color TV Plans, pages 6-8. I COLOR ISSUE-PUBLIC NOW THE ARBITER: Supreme Court's color decision clears up the ' litigation — but not much more. Still left wide open are the really basic economic I and technological questions : (1) Can CBS get anywhere, almost single-handedly, with a system that can't be picked up by any of the nearly 13,000,000 TV sets in use? (2) How soon will the "right" compatible system, backed by overwhelming : majority of industry, be welcomed by FCC through its "open door"? ;jc :jc :{e >!: Text of court's 8-1 decision of May 28 was sent you the day issued. It sus- tains FCC choice of CBS system, thus permitting it to go commercial in 25 days. It [speaks for itself, but crux is probably contained in this sentence; I "But courts should not overrule an administrative decision merely because [they disagree with its wisdom." Justice Frankfurter's doubts, reflecting same what ' s-the-hurry attitude manifested by lower court, are epitomized in; "What the Commission here decided is that it could not wait, or the American public could not wait, a little while longer, with every prospect of a development which, when it does come, concededly will promote the public interest more than the incompatible system now authorized." ^ ^ ^ if. Decision came as no surprise, hence no great shock — except to TV trade, , already in doldrums, now more becalmed than ever. Buying of TV receivers, competent sources say, has all but stopped as inventories pile higher (see Trade Report). No one was startled into taking a new position — neither industry, FCC, Sen. Johnson nor CBS, though it was noted that the CBS broadcast claims about the immediacy and low cost of adaptation, conversion and new color receivers were much less extravagant, much more toned down than when it won its first victory. FCC Chairman Coy and Sen. Johnson, if anything, went out of their way to make clear that Commission is duty-bound to reconsider compatible systems whenever proffered. Also, intra-Commission talk has been dropped, for time being at least, of "forcing" CBS colorcasts upon recalcitrant stations (see story, p. 4). Stations are as reluctant as ever, even CBS affiliates indicating they'll experiment with off-coaxial colorcasts slowly and cautiously, if at all. Most manufacturers stand as before (see symposium, pages 6-8). No major set maker says he'll produce CBS-type receivers now. Some reject system flatly and completely; many say they'll wait and see how the public reacts; others offer no comment. Handful of smaller outfits say they'll make them — including, of course, soon-to-be CBS subsidiary Air King (Hytron). * H: >!c So it's CBS's baby — almost entirely — and there's public choice. Whether it can build brand new audience fast enough to make colorcasting commercially worth- while for itself and other telecasters, in light of today's materials shortages and slow purchasing pace, is up to CBS and its followers to prove. Officially, CBS says it will shortly expand its present 10-11 a.m. daily experimental telecasts in New York, promises "substantial schedule" in a few months, with feeds to other stations on network. CBS doesn't say which stations would accept color, but claimed it had 15 ready to go last Nov. 20, before RCA appealed FCC decision. It has done good sell- Copyright 1951 by Radio News Bureau 2 ing job to advertisers , has several lined up to pay token rates for initial color audiences in order to enjoy publicity claims of "firsts". But how long can CBS carry the burden? Presumably it's counting on Air King to sell color sets, also on rich return in patent royalties. But major manufacturers make it clear that a lot of litigation will pass through the courts before they pay any extra royalties for CBS color — if they ever do make field-sequential sets. CBS, too, is now "one of the boys," from manufacturing standpoint, so can suffer same problems of economic dislocation v/hich affect competitors. «t. ^ «r 'T -1* FCC has adopted theory of "gradualism" in regard to CBS color. Chairman Coy's ideas are fairly representative of opinions held by other commissioners we've contacted. Here's his sizeup, expressed during colloquy with Senators Johnson and Magnuson at May 29 hearing on his appointment for 7 more years on Commission; "It will begin something like black-and-white did. I expect some color in 30 days. CBS will probably be first, probably in fringe hours. The public can then buy adapters, or new sets with built-in adapters, or color converters, or complete combination color-monochrome sets. "You need broadcasts for the incentive to build color sets. I'd think manufacturers would now be in position to make any of these units immediately, since they've been on notice since our order was issued last September. "I expect Air King to make color sets, of course. And I have reason to be- lieve that one or more of the maj or manufacturers will find it to be a competitive advantage to break into the manufacture of such sets. This is the most competitive business in the country. None of these manufacturers will let a young upstart become the leader. "Another thing is the resistance to set-buying currently. The answer to this problem would seem to be; (1) Reduction in prices or cheaper sets, (2) Color. The Supreme Court said so clearly that we weren't arbitrary and capricious that people will expect color. "Some color sets will be on the market before the end of summer. Colorcasts will begin slowly. I think impetus will come from the sports promoters who will make events available for color and not to black-and-white. "There is a natural turnover in sets. Next time people buy, they'll buy color. People who bought recently will probably buy adapters or converters. Con- verters will probably cost $100-$150. " Nothing about "making" stations broadcast color was asked or volunteered during hearing. Several other commissioners say there is no such intention. One said such action might be considered "if there appears to be concerted action to thwart the system by placing artificial barriers in its path." It was pointed out by one staff member that precedent exists, in that FCC required at least minimum hours of programming from black-and-white stations. :{: "Open door" for compatible systems is truly open. Coy insisted during his Senate hearing. Sen. Johnson asked; "Suppose I invented an improved system and I wanted to get the right to broadcast it. Would the door be closed, the situation frozen?" Coy answered; "The door is not closed; it's never closed. We couldn't, if we wanted to, prevent a new development in the public interest. We wrote into our order the procedures whereby new systems would be considered. We said we're not foreclosing a new system. We said you must have field tested it and developed it to the stage where it has a reasonably good chance of replacing the one we adopted. We authorized experimental operations. I don't think that's foreclosing such systems." "Is your decision likely to speed up a compatible system, now that you've adopted a color system?" asked Sen. Johnson. "I think it's self-evident," Coy replied, "that the decision will give new impetus to such developments. We've had promises before. The RCA system came in under forced draft when we invited 6-mc color proposals." 3 "My feelings exactly,” said Sen. Johnson. Other comniissioners have same attitude — but it's obvious any compatible system will have to be tied up with a pretty red, blue and green bow, with no loose strings, before Commission takes another look. Said one commissioner: "Remember, we've chosen a system. We've litigated it through the courts. Certainly, we're not going to jump lightly from one system to another. Investments will be made. People will be assuming some stability. Yet we'll always consider new developments. We have to." Open mind on dual standards, commercializing both CBS and compatible sys- tems, was indicated by another member, who also takes tough "show me" attitude. * * * * All-out all-industry work on compatible systems continues unabated. Report of Ad Hoc color committee of National TV System Committee (RTMA & IRE) is now being circulated in the industry (Vol. 7:18). Members are satisfied that basic job is done, agreed on major principles. They're field-testing individual techniques of handling details, such as sampling frequency, oscillating color sequence. NTSC is inviting all manufacturers to partic- ipate in field tests, utilizing colorcasts of RCA-NBC in New York, Philco in Phila- delphia, DuMont in Passaic. Motorola is reported installing color gear in Chicago. Confidence of Ad Hoc members, all distinguished men in their field, is truly remarkable. They're apparently not at all shaken by court decision. They're fully convinced they've got the system, and that FCC must eventually adopt it. It's manifest there's plenty of uncertainty in highest FCC circles now, albeit flushed with court victory. Commission will stick by its criteria, and "remote pickup" is constantly reiterated fetish. What some industry folk don't seem to appreciate is that FCC people regard an outdoor camera as crux of compatible system. Said one staffer: "When they've televised a crew race in color, then I'll tell you when the Commission will act favorably on a petition for a new hearing." Industry experts say remote equipment is minor apparatus matter. Such gear, we're told by the scientists, will be disclosed at proper time. Two of NTSC's prime movers met with Coy May 31 to present "progress report" on industry's work with compatible systems. NTSC's chairman Dr. W.R.G. Baker (GE) and Ad Hoc chairman David Smith (Philco) came away from reportedly friendly session, after hearing Coy reiterate statement that FCC is obliged to look at new systems after proper development and field testing. RCA isn't letting up one whit (see statement on p. 6), immediately annotinced i it would hold public demonstrations of its system in New York — probably piping signals to Washington, too — and let the public compare. RCA is throwing tri-color tube wide open to entire industry, has invited 231 receiver and tube makers to June 19-20 technical symposium in New York's Waldorf- Astoria, will disclose complete and latest know-how, tell of plans to make samples ' of tubes and components immediately available. Indicating hard row the compatibility boys must hoe, however, is attitude of one commissioner who seemed a little leery about such public demonstrations. "I think it would raise serious questions," he said, "if anyone made demonstrations for the purpose of combatting the system adopted. We don't grant experimental licenses for the purpose of exploitation. Of course, closed-circuit showings would be out of our jurisdiction." There's possibility sample receivers will be offered commis- : sioners to view in their homes. ♦ ♦ * ♦ Color story has become quite familiar to public, and newspapers have become quite deft in telling it. Few metropolitan reporters fumbled the story this time. Fact is that, whatever qualms it may currently be giving set owners and prospective 1 purchasers, they've heard and read so much about "color now" that they'll believe it ' when they see it. Editorialists were pretty calm and unhurried. Said Washington Post, which has consistently favored CBS color and which is the co-owner with CBS of WTOP-TV; "The choice betvjeen color and black-and-white broadcasts will then be up to the public — the appropriate final arbiter in our judgment ... If RCA comes along soon enough with a superior 'compatible' method of transmitting color, it will have its chance to win the public's favor." New York Herald Tribune : "At best, it probably will be a slow process to get enough sets into the hands of the public to make color TV a flourishing enterprise ; owners of present black-and-white sets will continue to get years of use from them. To the layman, it seems unlikely that the cumbersome wheel on the CBS set will be a permanent feature of color TV. But the layman has sufficient confidence in the engineering and scientific talent of the nation to believe a convenient and workable system can be devised, whether by CBS or RCA or the combined abilities of both." New York Times; "Because of the technical changes that must be made in millions of installed sets and because priorities have lately been established to govern the allocation of materials, the introduction of TV in color will be slow... There is still confusion. .. There will be more research. The public will sit on the improvements that will emerge, and act as its own court, if given a chance to pass judgment. As for the Commission, it was created to act in the public interest. This being so, it can hardly refuse to reconsider, amend, even reverse decisions if they are no longer tenable in the light of technological progress." COLORCASTING-CHOICE UP TO STATIONS: What the stations will do about carrying color , I now that talk of "implementation" and "minimum color hours" has receded at FCC. at present appears to be fairly clear. It looks like a free choice for telecasters — for a while, at least — with CBS facing the tedious and expensive job of persuading reluctant stations to break the chicken-egg cycle. It's anybody's guess how many will go along, but it's clear CBS's best prospects will come when freeze lifts and when its non-compatible system can start from scratch in virgin TV territory. Big-stick attitude (you-do-as-we-say-or-else ) isn't so evident at FCC as formerly. Partly, this is due to sober caution on part of commissioners waiting to see just how much dislocation their decision has wrought. Partly, it's due to staff reorganization (Vol. 7:21). There's this attitude, too: Why club 'em over the heads until you're sure you have to? Commissioners and staff still can't shake off doubts raised by fact that preponderant industry and technical opinion is opposed to incompatibility, in- sisting that superior compatible system is in offing. Thus, apparently, nature will be allowed to take its course — with tele- ' casters lending one ear to CBS, other to compatibility proponents, while keeping ' both eyes on FCC. Some CBS affiliates will accept some fringe-hour color from cable, making no equipment investments until sure the system is really "in". But they won't throw out good commercials to make room for color, while ) competitors stay with monochrome and take advantage of audience desertions to them during the years that few color sets will be in use. Everybody, including CBS, is carefully assuring public that black-and-white ) isn't out the window — will be with us for a long, long time. Most stations say they have no color plans, or prefer not to talk about color yet — obviously fearful not only of all-powerful FCC but of loss of audience, and of course mindful of local dealer complaints about reduced set sales. Radio lawyers and consulting engineers, most of them opposed to any incom- patible system, are advising their TV station clients to sit tight, hoping upcoming ) allocations hearing won't be dominated by the color imbroglio. But they're gen- ' erally expecting certain commissioners will make it point to elicit rosy promises ‘ about colorcasting plans from stations and applicants. CBS's Washington outlet WTOP-TV, jointly owned with Washington Post, plans ) to carry color in fringe time at first, following lead of network's New York key WCBS-TV. Manager John Hayes says he's "firmly convinced public will go for color." . i. - 5 - CBS's Boston affiliate, Yankee's WNAC-TV, announced it "has ordered the technical equipment necessary to project color programs as they are received over existing circuits from New York." One of sanest appraisals of colorcasting problem from a CBS affiliate is that of E.K. Jett, ex-FCC member and its onetime chief engineer, a calm and savvy gentleman with a fine public service record, who now runs Baltimore Sun's WMAR-TV ; "We will cooperate fully in bringing color to Baltimore," said he. "It will undoubtedly come from the network at first. When sufficient public interest is evi- denced, and when equipment is available, we will originate local colorcasts. "Lack of compatibility is going to be hard to live with for some time, especially in an area like ours which has 375,000 families and 300,000 sets — very near saturation. I think TV stations will have to maintain a substantial schedule of black-and-white for a long time to come." Jett then made some pertinent observations, posed pointed questions; (1) When materials limitations really begin to bite manufacturers, how can they see their way clear to change over to color sets? Color sets will emerge, but won't they be greatly limited in number for some time? (2) The public won't rush to buy color receivers until it sees what kind of programs are telecast, at what time of day. And certainly, cost has to be right. (3) Public must be confused by kinds of color sets in prospect. Currently, the CBS system is labeled "mechanical," is said to be limited to small screens. But what of the drum permitting big screens? How about the tri-color tube? Will public want to wait for these promised developments before it buys? CBS's new tube-making subsidiary Hytron is an RCA licensee, may be able to make tri-color tube. Will mere promise of tube restrain potential disc-set buyers? (4) Public will continue to buy black-and-white at today's bargain prices. Demand lately has tapered off due to normal summer slump. Regulation W, and the fact that saturation is being approached in some areas. THE COLOR EDICT-INPACT ON TV TRADE: "Confusion worse confounded" just about de- scribes thinking in TV trade in wake of Supreme Court's color decision and resultant publicity. But attitude of the sellers of sets is well expressed by one of them; "Let's see the sets; we'll sell anything the public will buy." What the manufacturers think, is best recounted in their own comments pub- lished in comprehensive symposium herewith. They and trade generally are still for compatibility, by and large, but they're watching trade winds (and each other) very closely indeed. There's no stampede to tool up for CBS color; mostly, the attitude is one of "wait and see" how public reacts — whether there's the "sweeping demand" so confidently expected by FCC-CBS proponents. Receiver sales were beginning to pick up rather nicely in many parts of the country last few weeks, considering the season, and some slight inroads were being made into inventories — and then the news broke. Now business has turned bad again, we're told — and even fall prospects have been dimmed by this luicertainty , added to Regulation W and other factors con- ducing to slower buying pace. It's really too early to gauge actual impact of color news, but some manufacturers-wholesalers-retailers are wringing their hands. This week's trade wasn't good barometer, anyhow, because of Memorial Day. Wait-and-see attitude arouses natural speculation whether public will go to cost and trouble of adapting present sets (to get black-and-white during color- casts), converting present sets (to get color in sam.e set or on slave units), or buying such new color combinations as may be offered — all at a price. Since today's depressed TV market is a price market, with low-end units at around ^200 selling best, tradesmen wonder whether people will pay substantially more for equipment capable of receiving such few hours of color, mainly during fringe viewing periods, as CBS and the stations it feeds will offer. You get every-which-way kind of answer to this — the consensus being, CBS 6 included, that it will take years for color to take hold. What trade fears is that these may be years of the locust so far as selling present-type sets is concerned. That CBS will turn on promotion heat, goes almost without saying. It's re- ported in trade circles that big ad splurges have been prepared cautioning public not to buy any TV sets unless they're at least adapted to get color signals in black and white. That could start a round of lawsuits and trade-practice complaints that would keep whole industry in turmoil for months, further confusing public. The estimated 1,750,000 or more TVs now in inventory aren't so adapted — though adapter units could be marketed — and a complete stoppage of buying could spell ruin for a lot of businesses. The major manufacturers could offer adapters for present sets, which also means service fee to install them. They'll fight back, if CBS promotion hurts their trade, by pointing to FCC Chairman Coy's assurance that door isn't closed to compat- ible systems, which of course could render CBS system obsolete overnight if adopted. There's also logical question: Will public wonder why brand-name firms, with great businesses to protect and reputations to maintain, don't make color sets or converters? Will that confuse buyers to point of no sales? Or will some "upstart" firms, as Coy suggested, seize leadership away from established leaders in the "rush for color" so confidently expected by proponents? Or will some big boys get on CBS bandwagon without waiting for compatible systems promised by RCA, Hazeltine, GE, Philco, DuMont, Sylvania, other top names? ^ * Organized manufacturers' RTMA meets in Chicago next week for annual conven- tion, but they v/on't do anything giving semblance of "conspiracy" against edict. CBS's Hytron (Air King) is member of RTMA, thus has voice in its affairs. Air King, it's said, also has inventory problem — and of course Hytron has big stake in re- ceiving and picture tube business, now taking beating due to lowered demand for TVs. CBS's Hytron ownership, it's clear, means that company, with its "Columbia" brands, will strive to be major factor in TV-radio trade. Yet it could slip into same trade desuetude as others, if confusion means less buying of any kind of TVs. It's rags or riches for CBS no less than for rest of industry, since it elected to go into the manufacturing field. STATEMENTS BY PRINCIPALS IN THE SUPREME COURT LITIGATION COLUMBIA BROADCASTING SYSTEM— “The decision of the Supreme Court removes the last road block to the public’s enjoyment of color television in the home. CBS will shortly expand its present color broadcast schedule in New York, and within a few months expects to be pro- ducing a substantial schedule of color programs. Many of these will be sent over existing circuits to stations in other cities of the Columbia Television Network. The enthusiasm which both the public and important national advertisers have shown for color television gives great encouragement that this exciting new medium will grow rapidly.” EMERSON RADIO (Benjamin Abrams, president) — “We will not make CBS color sets because we don’t think it’s the right system. The right system will be a compatible system, and it will be here in 2 years. The Supreme Court decision will have a momentary effect on sales of black-and-white TV sets, but it will be a 7-day wonder. Even Air King [due to be CBS-owned] won’t be able to get samples to the trade for 6 months, and mass production is at least 2 years away. Right now, color TV ■'s a great mystery to the public; when dealers begin get- ting CBS color sets, the public will be able to see the limitations of the CBS system.” RCA (David Sarnoff, Chairman) — “The RCA has always maintained the policy that what is best for the public and the industry is best for its own welfare. That policy we shall always adhere to. We continue to be con- vinced that the best color TV system for the public and the industry is a compatible, all-electronic, non-degraded sys- tem. We have such a high quality system, and we shall demonstrate it to the public within the next few weeks. The public will be given the opportunity to judge for itself.” Statement by RCA May 28 “Now that the Supreme Court has made its decision, RCA will go ahead with public demonstrations of its im- proved compatible all-electronic system of color television. “Everyone concedes that a compatible system is more in the public interest than a non-compatible system. “At the time the FCC made its decision last year, it took the position that there was no satisfactoi-y compatible sys- tem. Therefore, it adopted the less desirable non-compat- ible system. “RCA has developed a fully compatible, all-electronic color system which provides reception of color broadcasts in black-and-white on the nearly 13 million existing sets, without any change whatever. “Present set owners cannot receive any picture what- ever from the non-compatible color system without buying an expensive adapter. Even with such an adapter they would only receive a black-and-white picture degraded in quality. “To receive color they would also need to buy an expen- sive and cumbersome converter. “Approval of the compatible system would save present set owners about a billion dollars, and would avoid waste of material and labor, which it is vital to conseiwe in these critical times.” Most Still Oppose Incompalibiliiy Industry Comments on Plans for Color Television Following U. S. Supreme Court Decision Upholding FCC Adoption of CBS System Full Text of Supreme Court Decision Published by Television Digest as Special Color Report of May 28, 1951 SURVEY OF THE TV RECEIVING EQUIPMENT MANUFACTURERS (Replies to requests for comment, plus digests of comments published in other periodicals) ; ADMIRAL CORP. (Ross Siragusa, president) — “There will be color eventually — at a cost, of course — but black-and- white will be with us as the mainstay of TV for at least I the next decade. Our own feeling is that compatibility is still basic. It is too early to estimate the whole industry picture yet, but we can say again that we continue to have faith in today’s excellent black-and-white television and tomorrow’s compatible color.” AIR KING (David H. Cogan, president) — This company will shortly become a subsidiary of CBS, under recent Hytron merger deal (Vol. 7:15, 20), due to be completed next week when it’s expected CBS will issue official state- ment— presumably regarding new “Columbia” brand re- ceivers. Meanwhile, Mr. Cogan told newsmen models of color receivers will be shown at Chicago Furniture Show, disclosed plans for press showing of combination color and black-and-white receiver at company’s Brooklyn plant, Mon., June 4. “We’re pretty well along in our tooling for such a set,” I Mr. Cogan is quoted in May 29 Wall Street Journal. “Ma- j terial problems made it difficult to say when they’ll hit the I market. Under normal circumstances, it might be 90 days; i we may possibly get some sets out by early fall.” j How much will they cost? Wall Street Journal quotes I Mr. Cogan as saying quite a bit more than black-and- white models. He put it this way: “A color set probably will cost anywhere from 50% to 75% more than a black-and-white receiver with a compar- : able screen. In other words, a console color receiver with 12%-in. picture screen might run as high as $499; a simi- lar size black-and-white set would retail for about $299.” Story continues: “As for converters, Mr. Cogan says he’s not completely sold on them, but his firm may make a couple of thousand later on to see how the public responds to them . . . Mr. Cogan said, too, that Air King probably would make ‘adapters,’ but the quantity would depend on consumer responses . . . [He] estimates adapters will sell around i $39 to $49.” i CROSLEY (John W. Craig, executive v.p.) — “We have no plans to manufacture CBS color receivers at this time and are studying the overall aspects of this situation.” ! Crosley had previously announced it has made provisions in some 1951 models for plug-in of converter units, can make converters if there is public demand. In trade press, Mr. Craig was quoted as stating: “We ai’e still not con- vinced that the CBS system will be the ultimate one.” I DuMONT (Allen B. DuMont, president) — “This decision I does not alter the general situation in color in so far as we are concerned. We still feel the CBS mechanical color system is not suitable for the public. When acceptable color is ready, it will he an all-electronic system, which is j still years away, despite all the progress made in that di- - 7 rection. We have no present plans for the manufacture of CBS-type color receivers.” FREED RADIO (Arthur Freed, president) — Told New York Times May 31 that “until consumer demand indicates public acceptance of CBS color, no Freed-Eiseman color receivers will be marketed.” Also stated “dollars-and-cents minded” consumer is not now even buying black and white sets in volume. Washington ruling, Mr. Freed stated, can- not in itself make color TV a reality because a successful color transmission service must depend on the huge elec- tronics industry that will manufacture the receiving and transmitting equipment and on TV broadcasters as well as the consumer. GENERAL ELECTRIC (Dr. W. R. G. Baker v.p. and gen. mgr.. Electronic Dept.) — “This [Supreme Court] decision came in same month that NBA placed restrictions on all TV construction projects; when CMP regulations were is- sued which exclude TV set production from any assurance of having steel, copper or aluminum after July 1; and when the Federal Reserve Board finally refused to ease Regula- tion W restrictions, which had effectively dropped con- sumer ability to purchase standard TV receivers to an all- time low. “Against this background, it is impossible for [GE] to reach any immediate conclusion on its future plans in the color TV field . . . There is bound to be an extended period before the public can expect to have any substantial num- ber of color programs available to it. It is possible [that] during this period a fully compatible system will gain ac- ceptance by the Commission — a system which, unlike the CBS system, will give a black and white picture on every standard TV receiver, of which there are now over 12,000,- 000 owned and used in the American homes. Both the FCC and the Supreme Court have stated their preference for such a compatible system; the FCC has kept the door open for its consideration and possible adoption. Substan- tial progress has been made toward its achievement since the FCC color hearings closed. “If this compatible system is achieved and should ulti- mately be adopted, then the CBS System will have been, in fact, an interim system, approved by the FCC in order to insure color during this transition period to those who desire to make the necessary investment in this type receiver. “Against the present background of material, construc- tion and credit restrictions, our company is in no position to estimate the number of persons who can and will buy the CBS type of color TV set. If there are a substantial number we will, as always, be guided by public demand. However, such receivers cannot be reasonably expected in production in the near future, due to needed development time, material controls, and the limited facilities available to us alter meeting the requirements of our defense con- tracts and commitments. Transmittters and, particularly. 8 studio equipment cannot be realistically anticipated on a production basis at this time. “To those who now own or may purchase a General Electric television receiver during this interim period, we do make this reassuring statement: If the CBS color sys- tem does gain general acceptance, we guarantee that there will be made available at competitive prices for use in con- junction with any television receiver General Electric man- ufactured after July 1, 1949, a means for receiving color programs originating in your local stations. That is a responsibility which we gladly recognize and which we will make every effort to fulfill within the limitations placed on industry by the present national emergency.” HALLICRAFTERS (Wm. J. Halligan, president) — State- ment to press says company “will stand by until we see what the public wants.” To Wall Street Journal, Mr. Hal- ligan added: “We believe there may be a non-mechanical system soon, either RCA’s or somebody else’s, and we’d hate to go ahead with new sets or converters that would be obsolete in a short time. We’d be breaking faith with the public if we gave them something they couldn’t use for long.” To Retailing Daily, he said: “We’re afraid that the new tooling to produce a color wheel or drum may take a lot of money and, once production is under way, CBS or RCA may come out with a color tube that will render the mechanical apparatus obsolete. I think you’ll find every manufacturer in the same boat.” Hallicrafters starts fall production line in latter July, with only slight model changes, plans 25-30% lower ouput than last year. MAGNAVOX (Richard A. O’Connor, chairman) — “We will make color receivers when we can be convinced that the design will give value received to the consumer. We do not feel that the CBS system falls into that category un- less some revolutionary improvements have been made since it was last demonstrated.” MATTISON (Richard Mattison, president) — Quoted in N. Y. Herald-Tribune as having already started production of “slave unit” converters to receive CBS color on existing sets, with 50 samples ready to go to dealers next week and 1000 per week production planned starting mid-June. Units will have 12-in. screens, will sell for $60 to $75, Mattison stated. JOHN MECK INDUSTRIES and SCOTT RADIO (John Meek, president) — Via telegram: “Material controls make immediate production color units impossible. Further study required before decision as to exactly when production can begin.” Press releases May 28 state all Meek and Scott receivers made since Jan. 1 equipped with adapter circuits for connection to color adapters, quotes Meek as welcoming Court decision as “end to one of the uncertainties that has beset the TV industry” and saying his companies will begin production of auxiliary color units “as soon as possible.” .MOTOROLA (W. H. Kelley, sales mgr.): “No comment now.” .MUNTZ TV (Don .\dams, national sales mgr.) — Quoted in trade press as having already made pilot models and “prob- ably w’ill bring out color receivers in the near future.” OLY.MPIC (.\. A. Juviler, president) — “We have included converter devices in all of our sets for the past several months, so it would create no great problem in adapting them to receive either CBS or RCA color.” Mr. Juviler told Retailing Daily Olympic has no plans for producing color equipment light now, but will make adapters and convert- ers if there’s definite demand. He added he thought cur- cent controversy is “academic” because critical materials restrictions will keep production of color equipment to a minimum. PHILCO (James H. Carmine, executive v.p.) — “Current Philco TV receivers are engineered for adaptation to re- ceive the color signals in black and white. We have no im- mediate plans beyond that, but we are continuing our work on an all-electronic system with direct-view pictures.” STEWART-WARNER (E. L. Taylor, sales mgr.) — Press release states all Stewart-Warner sets shipped since last November have been equipped with adapter jack, Mr. Taylor stating: “We will have an adapter to be used with our sets by the time color broadcasting is in gen- eral use.” STROMBERG-CARLSON (R. W. Tait, president)— “We have no specific plans in relation to CBS color and believe color telecasting is still a long way off. In any case, it will not replace the present black-and-white.” SYLVANIA (Max Balcom, chairman) — “It’s too early to make any plans yet. At the moment it would seem that nothing really has been changed.” TELE KING (Harvey L. Pokrass, executive v.p.) — An- nounced development of “startling new method of receiv- ing color telecasts on the field-sequential system” with pat- ented unit called “Fadrak” described thus: “No wheel or drum is used, no motors or moving parts, and it can be adapted to present sets without enlarging the size of the cabinet.” Mr. Pokrass is quoted as saying the unit will be cheaper than any type of color adapter currently on the market (though no price is indicated), adaptable either inside or outside the set, fitting any size sci’een. “We will produce Fadrak for use by the public long before there are any appreciable number of color TV shows on the air,” he stated, “There would be no point in our going into large- scale production with the development until there is a market for it.” TELE-TONE (S. W. Gross, president) — Told Retailing Daily May 31 his firm will begin immediate production of converters “which will enable present black-and-white TV receivers to receive telecasts on the CBS system.” Added: “In view of cuiTent materials shortages engineers at our Bayway, N. J. plant cannot estimate how soon converters will be ready for sale by our dealers. As of today, we are setting up to produce our adapter-convei’ter combination. Our dealers have been and are receiving detailed instruc- tion labels telling how simple it is to convert present Tele- tone receivers to receive color programs.” WEBSTER-CHICAGO (C. P. Cushway, executive v.p.)— “We will start, in a modest way, based on demand, to make (1) companion or ‘slave’ units, under our own name, no private label, and (2) color units for other manu- facturers to put in owm sets and in companion units.” Mr. Cushway stated units will be 10 & 12-in., using lenses to magnify 7 & 10-in. tubes, will sell for about $175. Larger sizes, including drum types, are still in engineering stages, he said. Could produce units “no sooner than 60-90 days.” Can’t judge materials situation but problems, though diffi- cult, aren’t insoluble. Special materials, such as special motors, are needed, which AVebster-Chicago won’t make but will get from other manufacturers. Company has no plans for adapters to get colorcasts in black and white. WESTINGHOUSE — No comment because of absence of F. M. Sloan, TV-radio plant manager. ZENITH No leply, but .spokesmen reported in trade press as having no plans as yet to make color sets or converters. Full Text of Decision U. S. SUPREME COURT UPHOLDS FCC CHOICE OF CBS COLOR Sustains Chicago Federal District Court Decision on Appeal by RCA, et al., from FCC Order Justice Frankfurter Renders Separate Opinion (For stories on Supreme Court Appeal, see Television Digest, Vol. 7:10, 13) (For full text of Chicago court’s decision, see Television Digest’s Special Color Report of Dec. 23, 1950) For full texts of FCC’s First and Second Reports on Color (FCC Public Notices No. 50-1064 & 50-1224), see Special Color Reports of Sept. 2, 1950 and Oct. 14, 1950, respectively SUPREME COURT OF THE UNITED STATES No. 565. — October Term, 1950 RADIO CORPORATION OF AMERICA, NATIONAL BROADCASTING COMPANY, INC., RCA VICTOR DISTRIBUTING CORPORATION, ET AL., APPEL- LANTS, V. THE UNITED STATES OF AMERICA, FEDERAL COMMUNICATIONS COMMISSION, AND COLUM- BIA BROADCASTING SYSTEM, INC. Appeal from the District Court of the United States for the Northern District of Illinois, Eastern Division. [May 28, 1951.] Mr. JUSTICE BLACK delivered the opinion of the Court. Radio Corporation of America (RCA) and two of its subsidiaries brought this action in a three- judge District Court to enjoin and set aside an order of the Federal Communications Commission prescribing standards for transmission of color television.^ The effect of the chal- lenged order was to reject a color system proposed by RCA and to accept one proposed by the Columbia Broad- casting System (CBS).^ The basis of RCA’s complaint was that the order had been entered arbitrarily and capriciously, without the support of substantial evidence, against the public interest, and contrary to law. After hearing and oral argument, the District Court entered summary judgment sustaining the Commission, one judge dissenting.® RCA and the other plaintiffs took this direct appeal under 28 U. S. C. § 1253 and § 2101 (b). At the outset we are faced with RCA’s contention that the District Court failed to review the record as a whole in determining whether the Commission’s order was sup- ported by substantial evidence; it is urged that for this reason we should summarily reverse and remand the case for further consideration by that court. If RCA’s premise were correct, the course which it suggests might be wholly appropriate. For as pointed out recently, in considering the question of sufficiency of evidence to support an ad- ministrative order, this Court must and does rely largely on a first reviewing court’s conclusion. Universal Camera 1 The subsidiaries are the National Broadcasting Co. and RCA Victor Distributing Corp. Later, other parties were permitted over the Commission’s objection to Intervene in support of RCA’s posi- tion. The Columbia Broadcasting System (CBS) Intervened as a party defendant. 2 ’The order also rejected a system proposed by Color Television, Inc., which is not a party to this litigation. 3 95 F. Supp. 660 (N. D. HI.) . Corp V. Labor Board, 340 U. S. 474. The present case, however, need not be returned for further scrutiny below because we are convinced that the review already afforded did not fall short of that which is required. The District Court heard oral argument for three days and deliberated for about five weeks before handing down its decision. Both the majority and dissenting opinions show a famili- arity with RCA’s basic contention (and the minor ones as well) that could have come only from careful study of the record as a whole. To be sure, there was a casual statement in the majority opinion susceptible of the in- terpretation that the court in reaching the decision made an examination of the record less complete than it should have been.* Fairly construed, however, the remark, while perhaps unfortunate, is entirely consistent with that con- scientious review which we are satisfied was given this record by the District Court. We therefore pass to the question of validity of the Commission’s order. All parties agree, as they must, that given a justifiable fact situation, the Commission has power under 47 U. S. C. § 303 (c), (e), (f), (g)® to do precisely what it did in this case, namely, to promulgate standards for transmission of color television that result in rejecting all but one of the several proposed systems. Moreover, it cannot be con- tended seriously that the Commission in taking such a course was without evidential support for its refusal to * “After listening to many hours of oral argument by able coun- sel representing the respective parties, we formed some rather definite impressions relative to the merits of the order, as weli as the proceedings before the Commission upon which it rests. And our reading and study of the numerous and voluminous briefs with which we have been favored have not altered or removed those impressions. Also, in studying the case, we have teen un- able to free our minds of the question as to why we should de- vote the time and energy which the importance of the case merits, realizing as we must that the controversy can only be finally ter- minated by a decision of the Supreme Court. This is so because any decision we make is appealable to that court as a matter of right and we were informed during oral argument, in no uncertain terms, that which otherwise might be expected, that is, that the aggrieved party or parties will Immediately appeal. In other words, this is littie more than a practice session where the parties pre- pare and test their ammunition for the big battle ahead.” (Em- phasis added.) 95 F. Supp. at 664. ®47 U. S. C. § 303: “. . . [Tjhe Commission ... as public con- venience, interest, or necessity requires, shail — “(c) Assign bands of frequencies to the various classes of sta- tions, and assign frequencies for each individual station and de- termine the power which each station shall use and the time dur- ing which it may operate; “(e) Regulate the kind of apparatus to be used with respect to its external effects and the purity and sharpness of the emissions from each station and from the apparatus therein; “(f) Make such regulations not inconsistent with law as it may deem necessary to prevent interference between stations and to carry out the provisions of this Act. . . . “(g) Study new uses for radio, provide for experimental uses of frequencies, and generally encourage the larger and more effective use of radio in the public interest.” 1 adopt the EGA system at this time.® The real argu- ment, advanced at great length and in many different forms, boils down to this: Viewing the record as a whole, the Commission as a matter of law erred in concluding that the CBS color system had reached a state of develop- ment which justified its acceptance to the exclusion of RCA’s and that of others. Consequently, before the Com- mission, the District Court and here, RCA’s main attempt has been to persuade that no system has yet been proven worthy of acceptance for public use, that commercial color broadcasting must be postponed awaiting inventions that will achieve more nearly perfect results. We sustain the Commission’s power to reject this posi- tion and hold valid the challenged order, buttressed as it is by the District Court’s approval. To explain our conclusion it is unnecessary to repeat the detailed state- ment of facts made in the majority and minority opinions of the Commission and District Court.’ Nor, for present purposes, is it necessary to attempt a translation of the technical terms invented to carry meanings in the rapidly growing television industry. It will suffice to give the following brief summary of the background of the Com- mission’s findings and what was found: Standards for black and white television transmission were first promulgated by the Commission in 1941. RCA’s complaint alleges, and all apparently agree, that “The quality of the present [black and white] service, the im- provements and reductions in price to the public that have been made, the incredible expansion of the industry as a whole, are all due to the fact that manufacturers could build upon a single set of long-range high-quality stand- ards.” * From 1941 until now the Commission has been engaged in consideration of plans and proposals looking toward promulgation of a single set of color standards.® CBS apparently made quicker prograss in developing an “ The Commission unanimously believed that CBS had the best system presently available, although two Commissioners dissented on other grounds. The relative merits and demerits of the RCA and CBS systems were summarized as follows; “[T]he RCA system [Is] deficient in the following respects: “(a) The color fidelity of the RCA picture is not satisfactory. “(b) The texture of the color picture is not satisfactory. “(c) The receiving equipment utilized by the RCA system is exceedingly complex. “(d) The equipment utilized at the station is exceedingly com- plex. “(e) The RCA color system Is much more susceptible to certain kinds of interference than the present monochrome system or the CBS system. “(f) There Is not adequate assurance in the record that RCA color pictures can be transmitted over the 2.7 megacycle coaxial cable facilities. “(g) The RCA system has not met the requirements of success- ful field testing. “[T]he CBS system produces a color picture that is most satis- factory from the point of view of texture, color fidelity and con- trast. . . . [R]eceivers and station equipment are simple to operate and . . . receivers when produced on a mass marketing basis should be within the economic reach of the great mass of pur- chasing public. . . . [EJven with present equipment the CBS sys- tem can produce color pictures of sufficient brightness without objectionable fiicker to be adequate for home use and . . . the evi- dence concerning long persistence phosphors shows that there is a specific method available for still further increasing brightness with no objectionable fiicker. Finally, . . . while the CBS system has less geometric resolution than the present monochrome system the addition of color to the picture more than outweighs the loss in geometric resolution so far as apparent definition is con- cerned.” Second Report of the Commission, October 10, 1950, F. C. C. . ’ The facts found by the Commission appear In two reports on Color Television Issues. First Report of the Commission, Septem- ber 1, 1950, F. C. C. : Second Report of the Commission, October 10, 1950, F. C. C. . The District Court described the proceedings before the Commission as follows: “The hearing, participated in by all members of the Commission, commenced September 26, 1949 and ended May 26, 1950. In all, fifty-three dif- ferent witnesses were heard and 265 exhibits received. The tran- script of the hearing covers 9717 pages. During the period from November 22, 1949 to February 6, 1950, extensive field tests were made of the three systems [RCA, CBS, Color Television, Inc.] proposed. Progress reports concerning these tests were filed with the Commission by the three proponents during December 1949 and January 1950. Comparative demonstrations of the three pro- posed systems were made on different dates until May 17, 1950.” 95 F. Supp. at 665. * Emphasis added. » See the particularly interesting historical summary of these efforts In Commissioner Jones' dissent to the First Report of the Commission, September 1, 1950, F. C. C. . His view was that color television standards should have been promulgated long before they were. acceptable system than did others.“ It was soon attacked, howevei’, on the ground that it was utilizing old knowledge highly useful in the realm of the physical sciences and mechanical practices but incongruous in the new fields of electronics occupied by television. This is still the core of the objection to the CBS system, together with the objec- tion that existing receiving sets are not constructed in such a way that they can, without considerable adjust- ments, receive CBS color broadcasts either in color or black and white. The fact that adjustments are required before a CBS color broadcast can be received in black and white on existing sets makes this system “incompatible” with the millions of television receivers now in the hands of the public. There is no doubt but that a “compatible” color television system would be desirable. Recognition of this fact seems to be the controlling reason why the Commission did not long ago approve the “incompatible” CBS system. In the past, it has postponed adoption of standards with the hope that a satisfactory “compatible” color television system would be developed. But this time, in light of previous experience, the Commission thought that further delay in making color available was too high a price to pay for possible “compatibility” in the future, despite RCA’s claim that it was on the verge of discovering an acceptable “compatible” system. The Commission’s special familiarity with the problems involved in adopting standards for color television is amply attested by the record. It has determined after hearing evidence on all sides that the CBS system will provide the public with color of good quality and that television viewers should be given an opportunity to re- ceive it if they so desire.” This determination certainly cannot be held capricious. It is true that the choice be- tween adopting standards now or at a later date was not free from difficulties. Moreover, the wisdom of the decision made can be contested as is shown in the dis- senting opinions of two Commissioners. But courts should not overrule an administrative decision merely because they disagree with its wisdom.^ We cannot say the Dis- trict Court misapprehended or misapplied the proper judi- cial standard in holding that the Commission’s order was not arbitrary or against the public interest as a matter of law.“ Whether the Commission should have reopened its pro- ceedings to permit RCA to offer proof of new discoveries for its system was a question within the discretion of the Commission which we find was not abused.” We have considered other minor contentions made by RCA but are satisfied with the way the District Court disposed of them. The District Court’s judgment sustaining the order of the Commission is Affirmed. “ See note 6, supra. See note 6, supra. ^ National Broadcasting Co. v. United States, 319 U. S. 190, 224. “ Universal Camera Corp. v. Labor Board, 340 U. S. 474, 490-491. See United States v. Pierce Auto Lines, 327 U. S. 515, 534-535. With respect to reopening the record, the Commission said in part: “. . . [A] new television system is not entitled to a hearing or a reopening of a hearing simply on the basis of a paper presen- tation. In the radio field many theoretical systems exist and can be described on paper but it is a long step from this process to successful operation. There can be no assurance that a system is going to work until the apparatus has been built and has been tested. None of the new systems or improvements in systems meet these tests so as to warrant reopening of the hearing. . . . “The Commission does not imply that there is no further room for experimentation. . . . Many of the results of such experimen- tation can undoubtedly be added without affecting existing re- ceivers. As to others some obsolescence of existing receivers may be Involved If the changes are adopted. In the interest of stabil- ity this latter type of change will not be adapted unless the im- provement is substantial In nature, when compared to the amount of dislocation involved. But when such an improvement does come along, the Commission cannot refuse to consider it merely because the owners of existing receivers might be compelled to spend additional money to continue receiving programs. “. . . [A]ny improvement that results from the ej;perimentatioa might face the problem of being incompatible with the present monochrome system or the color system we are adopting today. In that event, the new color system or other improvement wUl have to sustain the burden of showing that the Improvement which results is substantial enough to be worth while when com- pared to the amount of dislocation involved to receivers then in the hands of the public.” Second Report of the Commission, Oc- tober 10, 1950, F. C. C. . 2 SEPARATE OPINION OF JUSTICE FRANKFURTER Mr. Justice Frankfurter, dubitante.f Since I am not alone in entertaining doubts about this case they had better be stated. The ultimate issue is the function of this Court in reviewing an order of the Fed- eral Communications Commission, adopted October 10, 1950, whereby it promulgated standards for the transmis- sion of color television. The significance of these stand- ards lies in the sanction of a system of “incompatible” color television, that is, a system requiring a change in existing receivers for the reception of black and white as well as colored pictures. The system sanctioned by the Commission’s order will require the addition of an appropriate gadget to the millions of outstanding receiv- ing sets at a variously estimated, but in any event sub- stantial, cost. From the point of view of the public inter- est, it is highly desirable to have a color television system that is compatible. The Commission’s order sanction- ing an incompatible system is based not on the scientific unattainability of a compatible system, nor even on a forecast that its feasibility is remote. It rests on the de- termination that inasmuch as compatibility has not yet been achieved, while a workable incompatible system has proven itself, such a system, however intrinsically unsat- isfactory, ought no longer to be withheld from the public. After hearings on the Commission’s proposals were closed, the Radio Corporation of America, presistent pro- moter of a compatible system, suggested to the Commis- sion further consideration of the progress made after the Commission had taken the matter under advisement in May, 1950. To be sure, this proffer of relevant informa- tion concerning progress toward the desired goal was made by an interested party. But within the Commis- sion itself the need for further light was urged in view of the rapid development that had been made since the Commission’s hearings got under way. The heart of the controversy was thus put by Commissioner Hennock: “It is of vital importance to the future of television that we make every effort to gain the time necessary for further experimentation leading to the perfection of a compatible color television system.” The Commission did not rule out reasonable hope for the early attainment of compatibility. Indeed, it gave ground for believing that success of experimentation to that end is imminent. But it shut off further inquiry into developments it recognized had grown apace because in its “sound discretion” it con- cluded that “a delay in reaching a determination with re- spect to the adoption of standards for color television serv- ice . . . would not be conducive to the orderly and expedi- tious dispatch of the Commission’s business and would not best serve the ends of justice . . .” The real question, as I have indicated, is whether this determination of the Commission, considering its nature and its consequences, is beyond judicial scrutiny. I am no friend of judicial intrusion into the administra- tive process. I do not believe in a construction of the Communications Act that would cramp the broad powers of the Communications Commission. See National Broad- casting Co. V. United States, 319 U. S. 190. I have no doubt that if Congress chose to v/ithdraw all court review from the Commission’s orders it would be constitutionally free to do so. See Stark V. Wickard, 321 U. S. 288, 312. And I deem it essential to the vitality of the administrative process that, even when subject to judicial review, the Commission be allowed to exercise its powers unhampered by the restrictive procedures appropriate for litigation in the courts. See Federal Communications Comm’n v. Na- tional Broadcasting Co., 319 U. S. 239, 248. But so long as the Congress has deemed it right to subject the orders of the Commission to review by this Court, the duty of analyzing the essential issues of an order cannot be escaped by too easy reliance on the conclusions of a district court or on the indisputable formula that an exercise of t Editor’s Note: Rare legal terminology; word dubitante, when appended to a judge’s opinion, means he doubts the correctness of the decision but does not necessarily dissent. discretion by the Commission is not to be displaced by a contrary exercise of judicial discretion. What may be an obvious matter of judgment for the Commission in one situation may so profoundly affect the public interest in another as not to be a mere exercise of conventional discretion. Determinations by the Commis- sion are not abstract determinations. We are not here called upon to pass on the abstract question whether the Commission may refuse to reconsider a problem before it although enlightening new evidence is promised. We are faced with a particular order of great significance. It is not the effect of this order upon commercial rivalries that gives it moment. The Communications Act was not de- signed as a code for the adjustment of conflicting private interests. It is the fact that the order originates color television, with far-reaching implications to the public interest. The assumption underlying our system of regulation is that the national interest will be furthered by the fullest possible use of competition. At some point, of course, the Commission must fix standards limiting competition. But once those standards are fixed, the incentive for improve- ment is relaxed. It is obvious that the money spent by the public to adapt and convert the millions of sets now in use may well make the Commission reluctant to sanction new and better standards for color pictures if those standards would outmode receiving sets adapted to the system al- ready in use. And even if the Commission is willing to adopt a second, inconsistent set of color television stand- ards sometime in the future, the result will be economic waste on a vast scale. And all to what end? And for what overriding gain? Of course the Commission does not have to wait for the millennium. Of course it does not have to withhold pic- tures from the American public indefinitely because im- provements in color transmission will steadily be per- fected. That is not what is involved here. What the Com- mission here decided is that it could not wait, or the Ameri- can public could not wait, a little while longer, with every prospect of a development which, when it does come, con- cededly will promote the public interest more than the in- compatible system now authorized. Surely what con- stitutes the public interest on an issue like this is not one of those expert matters as to which courts should properly bow to the Commission’s expertness. In any event, noth- ing was submitted to us on argument, nor do I find any- thing in the Commission’s brief of 150 pages, which gives any hint as to the public interest that brooks no delay in getting color television even though the method by which it will get it is intrinsically undesirable, inevitably limits the possibilities of an improved system or, in any event, leads to potential great economic waste. The only basis for this haste is that the desired better method has not yet proved itself and in view of past failures there is no great assurance of early success. And so, since a system of color television, though with obvious disadvantages, is available, the requisite public interest which must control the Com- mission’s authorization is established. I do not agree. One of the more important sources of the retardation or regression of civilization is man’s tendency to use new inventions indiscriminately or too hurriedly without adequate reflection of long-range consequences. No doubt the radio enlarges man’s horizon. But by making him a captive listener it may make for spiritual impover- ishment. Indiscriminate use of the radio denies him the opportunities for reflection and for satisfying those needs of withdrawal of which silent prayer is only one mani- festation. It is an uncritical assumption that every form of reporting or communication is equally adaptable to every situation. Thus, there may be a mode of what is called reporting which may defeat the pursuit of justice. Doubtless, television may find a place among the de- vices of education; but much long-headed thought and patient experimentation are demanded lest uncritical use may lead to hasty jettisoning of hard-won gains of civili- zation. The rational process of trial and error implies 3 a wary use of novelty and a critical adoption of change. When a college head can seriously suggest, not by way of irony, that soon there will be no need of people being able to read — that illiteracy will be the saving of wasteful labor — one gets an idea of the possibifities of the new barbarism parading as scientific progress. Man forgets at terrible cost that the environment in which an event is placed may powerfully determine its effect. Disclosure conveyed by the limitations and power of the camera does not convey the same things to the mind as disclosure made by the limitations, and power of pen or voice. The range of presentation, the opportunities for distortion, the impact on reason, the effect on the looker-on as against the reader-hearer, vary; and the dif- ferences may be vital. Judgment may be confused instead of enlightened. Feeling may be agitated, not guided; rea- son deflected, not enlisted. Reason — the deliberative proc- ess— has its own requirements, met by one method and frustrated by another.* What evil would be encouraged, what good retarded by delay? By haste, would morality be enhanced, insight deepened, and judgment enlightened? Is it even eco- nomically advantageous to give governmental sanction to color television at the first practicable moment, or will it not in fact serve as an added drain on raw ma- terials for which the national security has more exigent needs? Finally, we are told that the Commission’s determina- tion as to the likely prospect of early attainment of com- patibility is a matter within its competence and not subject to court review. But prophecy of technological feasibility is hardly in the domain of expertness so long * “Broadcasting as an influence on men’s minds has great possi- bilities. either of good or evil. The good is that if broadcasting can find a serious audience It is an unrivalled means of bringing vital Issues to wider understanding. The evil is that broadcasting is capable of Increasing perhaps the most serious of all dangers which threaten democracy and free institutions today — the danger of passivity — of acceptance by masses of orders given to them and of things said to them. Broadcasting has in itself a tendency to encourage passivity, for listening as such, If one does no more. Is a passive occupation. Television may be found to have this danger of passivity in even stronger form.” Report of the Broadcasting Committee. 1949 (Cmd. 8116, 1951) 75. as scientific and technological barriers do not make the prospect fanciful. In any event, this Court is not without experience in understanding the nature of such compli- cated issues. We have had occasion before to consider complex scientific matters. Telephone Cases, 126 U. S. 1 ; McCormick V. Whitmer, 129 U. S. 1 (harvester) ; Corona Co. v. Dovan Corp., 276 U. S. 358 (improvement in vul- canization of rubber) ; DeForest Radio Co. v. General Electric Co., 283 U. S. 664 (high-vacuum discharge tube) ; Radio Corporation V. Radio Engineering Laboratories, 293 U. S. 1 (audion oscillator) ; Marconi Wireless Co. v. United States, 320 U. S. 1 (wireless telegraphy improve- ment) ; and Universal Oil Products Co. v. Globe Oil & Ref. Co., 322 U. S. 471 (oil cracking process). Experience has made it axiomatic to eschew dogmatism in predicting the impossibility of important developments in the realms of science and technology. Especially when the incentive is great, invention can rapidly upset prevail- ing opinions of feasibility. One may even generalize that once the deadlock in a particular field of inquiry is broken progress becomes rapid. Thus, the plastics industry de- veloped apace after a bottleneck had been broken in the chemistry of rubbers. Once the efficacy of sulfanilamide was clearly established, competent investigators were at work experimenting with thousands of compounds, and new and better antibiotics became available in a contin- uous stream. A good example of the rapid change of opinion that often occurs in judgment of feasibility is fur- nished by the cyclotron. Only a few years ago distin- guished nuclear physicists proclaimed the limits on the energy to which particles could be accelerated by the use of a cyclotron. It was suggested that 12,000,000-volt protons were the maximum obtainable. Within a year the limitations previously accepted were challenged. At the present time there are, I believe, in operation in the United States at least four cyclotrons which accelerate protons to energies of about 400,000,000 volts. One need not have the insight of a great scientific investigator, nor the rash- ness of the untutored to be confident that the prognostica- tions now made in regard to the feasibility of a “compati- ble” color television system will be falsified in the very near future. i i 3 % n I _ Paramount Pictures Corp., with its Lawrence tri-color tube (Vol. 6:18 et seq & 7:16), shapes up as dark horse in color set production field with announcement that it will make sets with tube — first probably available in July, though tube has never been demonstrated publicly. Color work is being done by Chromatic TV Labs, 50*;^ owned by Paramount, 50% by inventor Dr. Ernest Lawrence and associates (U of California, Berkley). Officials say: Com- pany has acquired some production facilities from Machlett Labs, which has made the tubes, is obtaining more in Stamford, Conn. They’ll make 16 & 21-in. round tubes, offer them to other manufacturers, but none has bought any yet — not even CBS-Hytron (“they seem to like the di-um”). Other tube makers have approached company with proposals for making tube themselves, but no agree- ments have been reached. A “wild guess” at price of color sets, with tube, is 25-30% more than black-and-white. Screen of tube comprises thin aluminum strips, phospor- coated. Chromatic promises “limited public demonstra- tions” within 30 days, reports following scientists on its staff: Dr. Luis Alvarez, inventor of GCA air navigation system; Dr. Edward McMillan, co-discoverer of plutonium; Dr. Andrew Longacre, early worker on radar. Note: Paramount is big stockholder in DuMont, opponent of CBS color system, but DuMont has no voice in Paramount’s TV policies — largely influenced by v.p. Paul Raibourn. A “history” of color TV, written by 6 students of Har- vard Graduate School of Business Administration, was re- ported by New York Times this week. “History” had erred only as to date when it had Supreme Court sustain- ing FCC on July 2, 1951. Then, the students predicted, on Nov. 1, 1951, Commission began to have doubts, and in “April of 1952” reversed itself, chose RCA’s system, whereupon “CBS accepted defeat, shook hands with RCA, and the new FCC decision was not carried to court.” Color conversion kit will be offered within 60 days, says Celomat Corp., New York, early enthusiast for CBS system (Vol. 6:41). President Myron Greenwald says that it will sell for under $30, also that “de luxe” 12% -in. con- verter will be offered shortly. Black-and-white set must first be adapted by serviceman to 405-line, 144-field stand- ards before kit can be used. Hytron subsidiary Air King, soon to be part of CBS i holdings (Vol. 7:15, 20), has invited press for demonstra- Ition of combination color and black-and-white TV receiver at its Brooklyn plant, Monday, June 4. Hitherto a heavy private-brand producer. Air King is slated to turn out TVs I and radios under “Columbia” brand, has lately been seek- I ing to build up distributorships. Another color system: John Sherman, technical direc- tor of WTCN-TV, Minneapolis, and Edwill Fisher, printer ■ and photographer, are reported by UP as claiming inven- tion of system which may be “the ultimate answer to the whole color TV squabble.” They believe they have sys- tem which would permit stations and set owners “to modify their equipment inexpensively for color.” Someone at FCC was being coy when he placed on press table an RCA radiogram on color decision from Stephane Mallein, Radiodiffusion Francaise, Paris, to “Monsieur Wayne Coy, President, Federal Communica- tions Commission,” reading: “Vives felicitations pour bril- liante victoire.” More lead and zinc will be reserved for defense pro- gram— and consequently les.s will be available for civilian production — under amendments issued May 28 to basic NPA orders M-9 and M-15 (zinc) and M-38 (lead). 1‘resideat ha.s a.sfied Congress to give FCC $1,340,000 foj- nionilui ing pui'ijoscs, in addition to $6,000,000 already appropriated by House. Financial & Trade Notes: Latest Emerson earnings report, released June 2, is illustrative of downward pace of profits to be expected this year, result of reduced TV sales and higher taxes. For 26 weeks ended May 5, Emer- son net profit was $2,366,542 after taxes ($1.22 per share) as against $3,048,948 ($1.57) for comparable period ended May 6, 1950. Before taxes, the 1951 figure was $5,121,952. Sales figure wasn’t available at press time, but it’s re- called that president Benjamin Abrams predicted in Feb- ruary that 1951 sales will equal 1950’s $74,188,297 (Vol. 7:2,6) but said “we’ll have to go some” to achieve 1950’s earnings of $6,514,716. Warner Bros. Pictures Inc., reflecting not only higher taxes but diminished movie attendance, reports net profit of $3,827,000 (56(- per share) for 6 months ended Feb. 24, compared with $5,897,000 (80$-) in 6 months ended Feb. 25, 1950. Profit is after all charges, including $4,200,000 provision for taxes and $400,000 for contingent liabilities. Total revenues declined to $57,143,000 for the period from $64,800,000 for similar period preceding year. The Wall Street Journal reports boxoffice receipts in many areas now running 17-33% below last year, quotes Southern California executive as fearing “this summer will murder us,” states Chicago losing film emporiums at rate of one weekly to tune of $6000 a week in tax revenues, 134 closing in Southern California last year. Walt Disney Productions reports $201,914 net profit, or 30<< per share on 652,840 shares outstanding, on total income of $2,357,845 for 26 weeks ended March 31 vs. $75,905 (10<-) on $2,251,444 for same period last year. Firm has set up Herrell Productions Inc., as controlled subsidiary, to produce films for TV, including commercials, spot announcements, sei'ialized drama and comedy shows. * Quarterly analysis of business profits of 617 companies by Wall Street Journal shows earnings first 3 months of this year 21.3% higher than same 1950 quarter. In “Electrical & Radio” category, 22 companies showed $84,- 745,929 eai'nings first quarter, up 7.3% from $78,966,895 for same 1950 period. National City Bank of New York, making similar analysis of 18 leading electrical equipment, radio and TV firms reports their combined first quarter income as $65,871,000, up 8% from first quarter 1950’s $60,882,000 but down 38% from fourth quarter 1950’s $106,733,000. Identities of the companies were not revealed in either report. ■ Motorola, which contributes 20% of yearly profits to its employes’ savings and profit-sharing fund after deduc- tion of 5% of company’s net worth, transferred $2,295,000 of its record 1950 earnings (Vol. 7:11) to that fund — rep- resenting company contribution of $4.41 for every $1 paid in by participating employes. Amount was new high, compares with $1,654,120 in 1949, brings current value of fund to $7,093,059. President Galvin illustrates fund’s benefit by noting that if an employe put $200 into it each of last 3 yeai’s, starting when fund began in Nov. 1947, his account would now be worth $3808. ABC board this week approved proposed merger with United Paramount Theatres Inc. (Vol. 7:21) into new firm to be known as ABC-Paramount Theatres Inc. Deal now awaits exchange-of-stock details, formal application to FCC for license transfers. Radio & Television Daily’s 1951 Radio Annual is 1280- page compendium of TV-radio stations, adveitiser.s, agen- cies, uiiioii.s and other organizations, includes list of most- wanted telephone numbers in New York, Chicago, Wash- ington and Los Angeles. 10 - Telecasting Notes: Canada’s first tv station, 5-kw Ca- nadian GE installation with 500-ft. 6-bay superturnstile, operating on Channel 9 in Toronto, won’t get started until early 1952, according to CBC engineering dept. Second should be ready in Montreal, 15-kw Canadian RCA job on Channel 2, few months later — possibly June. They’ll be known as CBL-TV & CBF-TV, respectively. Delay in con- struction start until early fall is being caused by delivery of steel for towers, and materials shortages are also given as reason for fact there are no other CPs for com- mercial TV outlets yet. Studio equipment for both sta- tions is being supplied by British Marconi . . . Goar Mestre, CMQ & CMQ-TV, Havana, reports he’s planning TV net- work expansion, as is rival Union Radio (Vol. 7:21), states he has bought 2 transmitters from DuMont, 2 from GE, to be installed at Matanzas (Channel 9), Santa Clara (5), Camiguey (6), Santiago (2); he plans to buy 2 more for Holguin (4) and Pinar del Rio, and to link them via 17-relay microwave setup between Havana and Santiago (520 miles) and between Havana and Pinar del Rio (100 miles) . . . ABC-Paramount TV-radio operations may be consolidated under one roof — big ABC Television Center on W. 66th St., New York — after merger, because NBC wants ABC space in Rockefeller Center. Moving Day probably will come early in 1952 . . . ABC-United Para- mount Theatres merger (Vol. 7:21) has led film trade press to make much of fact that Balaban & Katz, UPT Chicago area chain, has signed top TV stars for its Chicago The- atre this summer, including Milton Berle, Martin & Lewis, Sid Caesar, Imogene Coca . . . Herald Tribune columnist Hy Gardner hints ABC is dickering with RKO to take over New York’s Palace Theatre for conversion into TV the- atre . . . San Francisco’s KPIX and AM outlet KSFO quit Mark Hopkins Hotel studios in early December, moving into new 3-story structure including 3 large TV studios being built at cost of $500,000, Van Ness Ave. & Greenwich St. . . . George Storer, Fort Industry Co., has pulled out of Consolidated Television Broadcasters Inc., recently formed film producing syndicate (Vol. 7:17-18); says he will soon have different plan along same lines . . . First TV educa- tional “commencement” was celebrated June 1 when WFIL-TV, Philadelphia, played host to FCC Comrs. Coy Hyde, Sterling, Webster and presidents of 20 colleges cooperating in University of the Air, which it has carried 11-noon each weekday since January (Vol. 7.2) . . . Miami’s WTVJ (Lee Ruwitch, mgr.) has made special arrange- ment with Miami Beach’s new Continental Hotel whereby TV station and ad agency folk get special $5 per day rate for $10 double room. Group of Atlanta business men has again filed re- quest with FCC for approval of sale of Channel 8 facili- ties of WSB-TV (Vol. 7:15). Known as Broadcasters Inc., applicant lists textile manufacturer Walter C. Sturdivent Jr. as president, includes also broker Clement A. Evans, 14 others. Sale price is $525,000. WSB-TV owners Atlanta Journal & Constitution plan to retain call letters but switch to Channel 2 (WCON-TV) operation as soon as current tests prove out. WCON-TV was originally granted to Constitution, but when that newspaper was merged with Journal, new company had to give up one or the other. First application for sale was returned by FCC because it couldn’t tell who ultimate stockholders would be — two- thirds of stock being held by Evans’ firm (Vol. 7:18). Mutual cut AM network rates least of all networks — 10% for 1-10:30 p.m. periods as of July 1, offering also half-rates for Sunday afternoons instead of present two- thirds night rate. It’s thus last of 4 netwoiks to reduce rates. ABC cut same periods 15% (Vol. 7:20), while CBS and NBC cut afternoon hours 10%, night segments 15% (Vol. 7:15-18). Transit FM is unconstitutional — the commercials at least. So District of Columbia Court of Appeals ruled unanimously June 1 in first test case. Decision will be appealed, since there are 15 such operations, with big investments, and Supreme Court is likely to consider case because of novel constitutional question involved. It can’t get to highest court before next fall. Some radio attor- neys contend decision challenges radio-TV commercials in general. Decision was based on Fifth Amendment, said: “The Supreme Court has said that the constitutional guar- antee of liberty ‘embraces not only the right of a person to be free from physical restraint, but the right to be free in the enjoyment of all his faculties . . .’ One who is sub- jected to forced listening is not free in the enjoyment of all his faculties.” George A. (Dick) Richards’ death May 28, at age of 62, means dropping of case against the 3 radio stations he controlled — KMPC, Hollywood; WJR, Detroit; WGAR, Cleveland — though FCC may go through form of ruling on charges leveled against him that he slanted newscasts against Franklin D. Roosevelt, the Democrats and Jews. Three-year-old case has been cause celebre, resulted in long hearings, recent strongly-worded proposed findings by FCC general counsel Benedict Cottone urging licenses be revoked. Fight against charges has cost some $2,000,- 000, said stations’ president John J. Part in reply. Rich- ards became critically ill last week of disease of the arteries, had been living at Detroit Athletic Club since return from Europe about year ago. Theatre telecasts of college football games got boost last weekend when National Collegiate Athletic Assn.’s TV committee ruled that any 7 out of 10 games scheduled by NCAA member colleges will be available to movie houses this fall, leaving theatre interests free to nego- tiate with individual colleges. But Illinois legislature this week passed bill, 110-7, forbidding theatre TV unless same game is simultaneously available on free public TV. Measure now goes to Senate. Meanwhile, Esso reportedly turned down NCAA bid to sponsor “controlled” football telecasts (Vol. 7:16), presumably because of anti-trust implications of NCAA’s experimental “game of the week” plan. Big Ten approved NCAA plan May 27, will permit each member college to televise one home game, one away. First commercial uhf application came to light this week — filed May 7 by WSBA, York, Pa., in form of amendment to pending vhf application. Station asks for Channel 43, proposes 70 kw ERP, 550 ft. above average terrain, using RCA 5-kw transmitter. This week, WHK, Cleveland, and WIBX, Utica, also filed for uhf, amending vhf applications. [For all TV applications to date, see TV Factbook No. 12 with Addenda to date; for detail about this week’s applications, see TV Addenda 12-U.~\ TV programming meeting June 22 in Washington’s Hotel Statler will be addressed by FCC chairman Coy and Senator Johnson (D-Colo.), chairman of Senate Interstate & Foreign Commerce Committee. Meanwhile, acting NARTB-TV general mgr. Thad Brown and staff are an- alyzing May 6-12 program logs (Vol. 7:20). Speakers at TV panel of Advertising Federation of America convention June 13 in St. Louis will be George Burbach, KSD-TV; Louis A. Hausman, CBS; Don L. Kearney, Katz Agency; Don McClure, McCann-Erickson;- Newman McEvoy, Cunningham & Walsh; John A. Thomas, BBDO; Louis Westheimer, Westheimer & Block, St. Louis. • Eugene S. Thomas, WOR-TV mgr., is program chairman. TV commercials are better than radio commercials. That’s opinion of 70% of 200 Chicago viewers, interviewed by Pilot Surveys Inc. for ad agency Gourfain-Cobb. Ma- jor reason given for attitude, suiwey explains, is that TV commercials make it possible to see product advertised. June 9, 1951 ! O’Neil Buys KFI-TV for $2,500,000, page 1. FCC Mulls Allocation Legalities, page 1. UHF Equipment Outlook Still Brighter, page 2. TV-AM Forces Meet on Common Ground, page 3. The Challenge of Fee-TV to Free-TV, page U. TV Output Falls to 1950-51 Low, page 7. Topics & Trends of the TV Trade, page 8. Mobilization Notes, page 9. Co 'or Report Published as Separate Section of This Issue O'NEIL BUYS KFI-TV FOR $2,500,000: This week's sale of KFI-TV, Los Angeles, like the ABC-United Paramount Theatres merger, may be forerunner of still another major change in management pattern of American broadcasting — for purchaser General Tire & Rubber Co. is looking to an eventual Mutual Broadcasting System TV network. Deal to buy Earle C. Anthony's KFI-TV for !|2,500,000 cash was negotiated in Washington by 35-year-old Tom O’Neil, chairman of MBS board, son of General Tire's president and manager of its subsidiary Yankee and Don Lee networks and stations. Mr. O'Neil recently negotiated unsuccessfully to buy ABC (Vol. 7:19). Cash purchase turns over Channel 9 outlet to Thomas S. Lee Enterprises, subject to FCC approval by next Dec. 31. It does not include 50-kw KFI (AM), an NBC affiliate which may or may not be on market and which NBC itself once wanted to buy. Don Lee couldn't buy KFI since it already has an AM in Los Angeles (KHJ). Purchase does include all leasehold rights, Mt. Wilson transmitter, tract on Mt. Harvard, realty known as Hollywoodland. When General Tire bought Don Lee last year (Vol. 6:52), it sold off TV outlet KTSL to CBS for approximately $3,600,000 — $300,000 down, $278,000 "rental" per year for 10 years, $50,000 taxes per year. Tom O'Neil's plans envisage eventual network built around nucleus of Yankee Boston outlet WNAC-TV, New York's WOR-TV, Chicago's WGN-TV, the Los Angeles station (call to be changed) ; and such other outlets as may be lined up after freeze thaws. It's highly unlikely, though, any such "fifth network" would be mutually owned, as is MBS, which some have long wanted to convert to private operation. Costs of TV outlets are coming higher — at least, those among the 107 pre- freeze pioneers being sold. It's a far cry from the $375,000 paid for Seattle's KRSC-TV, now KING-TV, to CBS's recent $6,000,000 deal for Chicago's WBKB (Vol. 7:21), its $3,600,000 purchase of KTSL (Vol. 6:52), and now the KFI-TV sale. KING-TV was sold in May 1949 after owner felt he couldn't continue taking $1000 per month loss (Vol. 5:20). WBKB and KTSL were bought because CBS needs own key-city outlets. And Anthony is selling station that only recently began to show small operating profit. Only other TV station sales into 7-figure sums were Grand Rapids' WLAV-TV to Bitner group for $1,300,000 (Vol. 7:19) and Washington's WOIC (now WTOP-TV) to Washington Post-CBS (55 & 45%, respectively) for $1,400,000 (Vol. 6:25). FCC NULLS ALLOCATION LEGALITIES: FCC hasn't yet answered Sen. Johnson's sharp letter regarding legality of TV allocation procedures (Vol. 7:22), but it's likely to do so next week. Commission may not give clear-cut "yes" or "no" reply he wants, but it certainly won't give him delay treatment accorded industry petitioners. Text of Johnson's letter makes it pretty obvious he doesn't want merely a legal opinion. He wants support for "allocation-by-application" principle, rather than "allocation-by-rule-making" concept now being pursued. "It seems to me that only chaos can follow procedures which are legally doubtful," he stated. "By persisting in adopting its present plan, the Commission Copyright 1951 by Radio News Bureau 2 invites all disappointed parties to take their cause to court, thereby creating further unpredictable delay in lifting of the 'freeze'." Chaos would follow the Johnson concept, say some of FCC's legalists — re- gardless which procedure is legal. Here are the two arguments: PRO-FCC PROCEDURE; If yog have no fixed plan, everyone eind his brother will apply for any channel he wants. Neighboring cities will get into the act. Their . neighbors will be affected. Soon, each comparative hearing in each city will amount to a complete allocation hearing for whole region, if not most of U.S. This will be an impossible mess, creating more delay than imaginable. Argument goes on: Upcoming hearing — starting July 9 and probably lasting all through summer (Vol. 7:20) — will give everyone chance to poke holes in proposed allocation, show how to correct inequities if they exist. If we persist in faulty allocation despite these hearings, say FCC people, aren't we just as likely to allocate poorly with any other procedure? Why not set a pattern for the whole nation at one time? Our rules permit changes if they're needed. ANTI-FCC PROCEDURE: The only realistic allocation is one based on assign- ments where stations will be built. And you don't know where they'll be until people apply. Sure, this will mean some rugged hearings, but not as bad as the FCC thinks. After all, the 107 stations are concentrated in areas of greatest demand; they'll limit "chain reaction" of channel shifts. This argument goes on: What ' s more , applicants will have to go through only one hearing, not an allocations hearing and a comparative hearing. And they'll cooperate — as they did in AM — to reduce complexity of hearings. Meanwhile, there's big risk someone will take whole allocation to court, tieing up whole nation for years. So the arguments run, with every applicant fretting to see it settled, once and for all — and quickly — because all are now anxious for end of freeze. * * * * Sen. Benton (D-Conn. ) introduced his revised "educational study" resolution this week (Vol. 7:22). Also backed by Senators Hunt (D-Wyo.), Bricker (R-0. ) and Saltonstall (R-Mass.), S.J. Res. 76 includes some remarkable "whereases," such as: "Whereas television is proving so costly in all its phases, to the point where the public has already invested nearly $4,000,000,000 in receiving sets which may become quickly obsolete, and the broadcasting industry has spent at least an- other billion in trying to cope with programming costs." Resolution asks: (1) No grants for 6-12 months, while educational and subscription TV are explored by everyone concerned. (2) TV licenses to be granted for one year only. (3) FCC to be "encouraged" to explore subscription TV and, in turn, should "encourage its development in every legitimate manner." (4) Establishment of a National Citizens Advisory Board on Radio and TV. UHF EQUIPMENT OUTLOOK STILL BRIGHTER: Uhf enthusiasts got another lift this week as Standard Coil Products Inc., biggest tuner maker, showed off its "easy conversion" strips in Bridgeport, and ^ divulged latest station equipment developments. Standard's week-long showings to its customers and press were probably not only to reveal what it has developed but also to provide its many set-manufacturing customers with ammunition to counter full-page Zenith ads implying Zenith alone can accomplish conversion via strips. Standard's showings were latest in series of tuner demonstrations in range of RCA-NBC "guinea pig" uhf station — last previous . one we saw having been Crosley ' s (Vol. 7:15). Uhf strips we saw in Bridgeport are based on precisely same principle as Zenith's, work just as well, as far as we can tell. Two small bakelite strips from unused vhf channel are snapped out of tuner, 2 uhf strips are snapped into their place. Nothing else is added to set. Strips for top of uhf band — 890 me — offer no more problem than low end. Standard says. And oscillator radiation, once a real uhf bugaboo, is said to be no worse than in vhf where it has been drastically reduced. 3 Cost of strips wasn't estimated, except that they would be "nominal". Shipments could begin in "few weeks" if orders were received. List of 66 set makers which have used Standard's tuners was handed out — including Admiral, Capehart, Emerson, Hallicraf ters , Hoffman, Olympic, Packard-Bell , Philco, Stewart-Warner . But company made it clear all these haven't used its tuners exclusively. Nevertheless, it reports that 4,500,000 sets include its tuner. ^ ^ Success in licking vhf oscillator radiation, reported by Standard engineers, makes possible following limits in average sets; 50 uv/m at 100 ft. for Channels 2-6, 60 uv/m for Channels 7-15 — well under RTMA-re commended 50 uv/m and 150 uv/m. Zenith engineers were among guests, are tremendously optimistic about uhf. They report good pictures all over Bridgeport, even at New Haven, 17 miles away. Of 60 installations in Bridgeport, majority get good results with vhf antenna, they say. For locations needing vhf and uhf antennas. Zenith has small device, about 2x3x4- in. , which acts as automatic switch when signals from both are fed into it. We also saw new RCA converter which seems to work as v;ell as any. RCA also is reported having designed new broad-band uhf antenna — a "bow-tie" and parabola combination — said to be good for whole uhf spectrum. All engineers long for station at 890 me. Then, they say, you'd be able to make real comparisons. Apparently, it's no great trick to show good results on sin- gle low channel — but it takes real engineering to run the complete uhf gauntlet. & sk ^ ^ T' *T* T* GE now says "12 kw" for its klystron-powered uhf transmitter (Vol. 7:16,18). Originally, it was 5 kw, then 10 kw. In Washington dinner session June 7, attended by heavy turnout of FCC members and staff, consulting engineers and radio attorneys, GE gave full technical and price details on all uhf and vhf equipment. Cost of 12-kw transmitter is $125,000, including tubes ; 20-gain antenna, to provide 200-kw ERP maximum proposed by FCC is $18,000. Total cost of monitoring equipment and accessories isn't estimated, but it runs $15, 000-$16, 000 for vhf. For small towns, GE offers 100-w driver of 12-kw transmitter for $37,000. GE has, for vhf Channels 2-6, 5-kw transmitter at $65,000, 35-kw unit at $140,000. Antennas range from $11,850 for 3-bay to $90,000 for 12-bay. For Channels 7-15, 5-kw transmitter costs $69,000, 20-kw runs $134,000. And antennas go from $11,630 for 3-bay to $36,750 for 12-bay. Studio equipment costs for 5 typical stations were given. For station pri- marily network, also handling films, it's $58,779. For station with 2 sources of live program material and 2 film sources, it's $114,655. Elaborate setup, such as used for network originations, runs $195,186. "No insurmountable hardships" were foreseen in getting materials during next 6-12 months. As GE engineers put it: A station's equipment takes about same amount of copper needed to wire 3-5 homes, motors to provide fans, in a few homes, magnets for a few receivers. Company reports taking uhf orders "every day." TV-AN FORCES MEET ON COMMON GROUND: How broadcaster-telecaster interests overlap — not only because of parent-offspring relationships, but because of their many oper- ating and regulatory problems in common — was exemplified this week at NARTB's separate and joint radio and TV board meetings under old NAB's "one big tent". Lessened antagonism between radio and TV was indicated in this line from banquet speech by veteran broadcaster Paul Morency, WTIC, Hartford: "History gives no example of one major advertising medium destroying another." Radio business is holding up proudly, by and large — so the AM directors reported, though bitterness toward networks for rate cuts still smoulders. The TV youngster, of course, is now flourishing beyond fondest hopes of this time last year — nearly all stations in operating black, some doing exceptionally well, most being ardently wooed by networks, film interests and, in several cases, would-be buyers. Overall impression at meetings was that nearly all major radio broadcasters - 4 - and quite a few smaller ones still outside TV entertain hopes that end-of-f reeze will eventually get them into telecasting field, too. NARTB*s new president is Harold Fellows. ex-WEEI, Boston, and autonomous TV board picked for |15,000 job of TV operations manager 34-year-old Thad H. Brown Jr. . son of a late FCC commissioner, Princeton and Harvard law graduate, recently with big Washington law firm. Some 60 of the 107 existing TV stations are now members, providing budget of about $100,000, and drive will continue to get rest to join. TV board's topmost problem was seen as excess profits tax, which imposes gross inequity on stations because it fixes as their base periods first several years of their existence — when, without exception, they operated at huge loss. George B. Storer was named to head committee to get better terms for TV. In session with Ford Foundation's James Young, former J. Walter Thompson executive, agreement was reached on joint effort to build public service shows on workshop basis — Foundation to pay writers and producers, shows to be offered live or film, sponsored if salable. Foundation’s recent $90,000 grant to educators does not necessarily mean support of FCC Comr. Hennock's current crusade for educationally-owned stations. Nor does it mean Foundation intends to underwrite such stations. Grant was merely to help educators explore educational TV possibilities and present their case. Board also prepared for "program code” session June 22, to be addressed by Sen. Johnson and FCC Chairman Coy, looking to self -regulation as means of precluding govt, interference. At another session. Sen. Johnson, who is president of Western Baseball League, explained his anti-trust baseball bill, which some feared might be used to block telecasting and broadcasting of baseball ; there were assurances no such restraints are intended, indeed that Dept, of Justice would be urged to stop any combined effort to prevent sportscasts of any kind. Among other subjects considered by the 2 boards (radio board for first time under chairmanship of retiring president Justin Miller, now also general counsel) were the Benton Bill to provide for educational TV and super-board over programs, which NARTB opposes; transit FM, declared illegal by Court of Appeals (Vol. 7:22), appeal to Supreme Court supported by association; Broadcast Advertising Bureau, now embarking on new studies to prove "basic values" of radio; 1952 convention, to be held in Chicago’s Stevens Hotel next April; membership, totaling 1461 as of May 17, with hopes still held that ABC and CBS will soon return to fold. THE CHALLENGE OF FEE-TV TO FREE-TV: Battle royal appears to be shaping up between free home TV and paid-admission TV. First significant shot was fired this week with annoiincement that June 13 Joe Louis-Lee Savold heavyweight bout in New York will be televised exclusively by theatre TV cable "network". And there were significant indications that protagonists of the various home subscription TV systems will put on heavy pressure this fall — with hints even of possible tie-ups between theatre and subscription TV systems. It’s not news that TV has rearranged amusement habits of millions of Ameri- cans — and that motion picture industry has been chief victim of this TV revolution. Sports promoters and college athletic directors, too, in many cases have bemoaned the "effect of TV" on gate receipts. Yes, TV has made inroads. And now the movie exhibitors and producers, aided by some of the sports promoters, are trying to make inroads on TV — using TV itself as their weapon. Until this week, their fight has been passive. Big film producers refused to release films to TV. Some professional and amateur athletic groups laid down rules to govern telecasting of sporting events. But TV continued to make gains at expense of movies, and public continued to get good share of top-flight athletic contests free for the viewing. And this week the dike broke on National Collegiate Athletic Assn.’s "controlled TV experiment" in football, with U of Pennsylvania’s announcement that it doesn't care what Mama don't allow, it’s gonna have TV anyhow. Attendance at boxing matches has dipped heavily since TV became fixture in American homes. And as boxing promoters watched the gate drop they hiked video 5 rates to compensate. Ezzard Charles-Joev Maxim heavyweight championship bout May 30 brought in mere 7.226 spectators who paid |77,319, while Pabst Brewing Co. paid $100,000 for right to telecast fight over CBS-TV. But the coming Louis-Savold bout at New York's Polo Grounds was snatched right from under Pabst 's nose by group of movie exhibitors (including Fabian, Loew's, RKO, United Paramount) represented by Nathan Halpern. Details of deal with International Boxing Club weren't disclosed — but club won't get anything like $100,000 for rights, unless theatres take a loss, which isn't likely. Fight won't be carried in New York theatres. In other cities — including Washing!^, Baltimore, Albany, Cleveland, Chicago — picture will be piped directly by coaxial cable to TV-equipped theatres, in effect a giant closed circuit. Even if all 13 TV-equipped theatres outside New York carry the fight, and charge $1.50 admission, they couldn't take in more than $40,000, New York Times estimates. Actually, most don't plan to hike price, will throw bout in as bonus. Next week's show, as well as rest of the "series of outdoor fights this summer" announced by Halpern, is being viewed by theatre and sports people as a "trial run" rather than a money-maker. But deals of this type eventually could be very profitable , if public takes to them. Halpern estimates that as early as end of this year more than 100 theatres in 50 cities will have TV installations, with total seating capacity of some 200,000 (Vol. 7:20). ^ Home subscription TV is another contender in fee-TV vs. free-TV contest — perhaps destined to be a partner of theatre TV. Paramount Pictures, which last week bought half interest in Telemeter coin-operated system (Vol. 7:22), is known to be looking toward eventual tie-up whereby home subscribers could see same shows being transmitted over theatre TV hookups. Trend toward exclusive theatre TV showings will accelerate until home TV gets a "boxoffice," in view of Zenith's president E.F. McDonald Jr., developer of Phonevision. "If Phonevision is established as a commercial service," he predicts, "the 2 systems — theatre and home TV — can together bring these great sports events to millions and at the same time bring new prosperity to promoters." Another subscription system, Skiatron' s coded-card Subscriber-Vision, has high hopes for test run in New York this fall, similar to Phonevision' s Chicago tests. Telford Taylor, Skiatron counsel, reportedly visited FCC chairman Coy June 6 to discuss tests, which would go "far beyond" mere use of motion picture films. Plans include at least one Broadway show direct from stage, and lots of sports. Subscription TV people, as well as theatre TV folk, got plenty of encourage- ment from NCAA's TV committee, which saw these systems fitting in perfectly with its "controlled TV experiment" — permitting live telecasting of only one college foot- ball game in each area each week, no one college to be featured twice. But whole structure of NCAA's "experiment" may collapse as result of U of Pennsylvania's defiance. ABC is supposed to have contract to carry 8 home games at price in neighborhood of $200,000, sponsor not revealed. Penn's defection will probably result in similar action by other NCAA mem- bers. Notre Dame, possibly Army , are likely to follow suit. And teams which play Penn this fall before TV cameras run risk of being read out of NCAA, along with Penn. At v/eek's end, Wisconsin, Army and William & Mary said they'd probably play Penn, TV or no TV; Cornell and Navy hadn't made up their minds; Columbia, California and Dartmouth talked about canceling games. Breakdown of NCAA ban would be blow to theatre TV folk, who were planning to capitalize on shortage of live football TV this fall. But regardless of outcome of this particular skirmish, there are indications a real battle is on. New York Herald-Tribune in editorial June 7 summed up issue thus; "The success of an extra-charge system. . .will , of course, depend on the reaction of the public. It is entirely conceivable that people will be v/illing to pay a special price to see a special event. But it certainly isn't what most of them had in mind when they purchased their seats." 6 Personal Notes: Don Stewart, mgr. of WDTV, Pitts- burgh, assigned to New York to handle film-buying for the 3 DuMont-owned stations; successor not yet ap- pointed . . . John H. MacDonald, NBC v.p. and treasurer, has resigned to become asst, to Ben Tobin, of Hollywood, Fla., big hotel operator and one of group of purchasers of Empire State Bldg.; his duties will be taken over by Joseph V. Heffernan, ex-RCA v.p., recently named NBC v.p. . . . Robert W. Sarnoff, NBC-TV director of unit productions, elected v.p. . . . Henry Ginsberg, ex-Paramount Pictures v.p. in charge of studio productions and operations, joins NBC Hollywood as consultant to John West, v.p. in charge . . . Donn B. Tatum, ex-Don Lee, onetime Blue Network executive, joins ABC as TV director, Western Div., Holly- wood, replacing Richard A. Moore, who becomes mgr. of KTTV, Los Angeles; Ernest Felix, asst, treas., named acting mgr., ABC Western Div. . . . Murray B. Grabhorn, ex-ABC sales mgr. and ex-mgr. of WJZ, on June 15 becomes gen. mgr., WPTR, Albany, succeeding Robert L. Coe, who has been acting as management consultant for Schine theatre interests . . . Paul W. White, onetime CBS news chief, recently with San Diego Journal, has joined KFMB & KFMB-TV, San Diego, as executive editor . . . Arthur J. Daly, ex-Peck Adv., joins Geyer, Newell & Ganger as TV program mgr. . . . Harold Kaye named head of new TV- radio dept., Dorland Inc. . . . Burke Crotty quits ABC-TV to go into package producing on own, succeeded as execu- tive producer by Ward Byron . . . Oliver Trayz named ABC director of research and sales development in newly con- solidated research dept, with sales promotion div., under which separate divisions will handle TV and radio . . . Gilbert I. Berry, Chicago sales mgr. of DuMont Network, resigns June 30 to become sales mgr., WIBC, Indianapolis . . . Richard L. Palmer, ex-CBS-TV, joins N. W. Ayer New York TV-radio dept, as traffic mgr. . . . Wayne Kearl, public service editor, promoted to promotion mgr., KSL & KSL-TV, Salt Lake City, succeeding Sherril W. Taylor, now with CBS Hollywood . . . Leo Fitzpatrick, co-owner of WGR, Buffalo, leaves for Athens June 15 on special mis- sion for State Dept, related to broadcasting . . . Maurice B. Mitchell, v.p. & gen. mgr. of Associated Program Serv- ice, elected to board of Muzak Corp. . . . Murry Harris, ex-NBC, recently with TV Guide, joins A. C. Nielsen Co. as TV-radio public relations director . . . Roy McLaughlin, ABC central div. sales mgr., elected president of Chicago Television Council; George Harvey, WGN-TV, v.p.; Edgar Greenebaum Jr., TV Shares Management Co., secy-treas. Station Accounts: Using tv only, sharing time with 4 other products, Bosco milk amplifier increased sales 238% in Cleveland area after just 26-week participation in Uncle Jake’s House on WEWS, Mon.-Fri. 5:-5:30; end of second 26-week period found sales at plus-346% where they now stand. Bosco Co. has renewed for second year, thru Rob- ert W. Orr & Associates, N. Y. . . . Ruppert’s current cam- paign for its new Knickerbocker brand beer so successful it’s planning to increase TV-radio budget and expand coverage of New York, New Jersey, New England, north- east Pennsylvania markets . . . Block Drug Co. (Amm-i- dent toothpaste & powder) , in addition to present network TV, plans expanded summer ad schedule, including TV- radio spots, thru Cecil & Presbrey . . . CBS Radio Sales reports sale of The Cases of Eddie Drake, film series starring Don Hagerty and Patricia Morison, to WPTZ, Philadelphia, for sponsorship by Old Reading Brewery Inc.; WBEN-TV, Buffalo, O’Keefe’s Ale; WTMJ-TV, Mil- waukee, Blatz; KPHO-TV, Phoenix, (Mark Smith Cars; WDTV, Pittsburgh, Ford Dealers; WNBW, Washington, Ford Dealers; KRON-TV, San Francisco, Tru-Pak Foods . . . Statler Tissue Corp. (paper products), thru Chambers & Wiswcll, and Grovcton Papers Co. (Vanity Fair tissues, Blue Ribbon paper napkins), thru John C. Dowd, are spon- sors of WNAC-TV, Boston — latter buying Buster Keaton Show . . . Inga’s Angle is twice weekly TV beauty school on WNBW, Washington, sponsored for last 26 weeks (13 each) by Hecht’s and Woodward & Lothrop dept, stores, with following cosmetic firms participating: Elizabeth Arden, Dorothy Gray, Harriet Hubbard Ayer, Charles of the Ritz, Helena Rubenstein, Lentheric, Dana, Bourjois, Marie Earle, Revlon, Frances Denny, Barbara Gould, Lano- lin Plus, Tussy, Duart, Bonnie Bell, Milkmaid, Corday, Goubaud . . . National Iced Tea Time, July 13-20, con- ducted by the Tea Council, contemplates TV-radio tie-ins by food advertisers, in addition to heavy use of magazine and newspaper space . . . Bulova Watch, thru Biow Co., to provide dealers with film commercials of varying lengths for use in locally placed TV sponsorships . . . Swift & Co., network TV user, planning to test spots for premium chicken, thru McCann-Erickson, Chicago . . . Among other advertisers reported using or preparing to use TV : Phillips Petroleum Co. (gasoline & motor oil), thru Lambert & Fcasley, N. Y.; Jost Jewelry Mfg. Corp. (gold jewelry), thru William Wan-en, Jackson & Delaney, N. Y.; Perfex Mfg. Co. (cleaning products), thru Buchanan-Thomas Adv. Co., Omaha; Bayuk Cigars Inc. (Phillies cigars), thru Neal D. Ivey Co., Philadelphia; Nunn-Bush Shoe Co. (men’s shoes), thru W. Earl Bothwell-Hamilton Adv. Agencies (formerly handled by Calkins & Holden, Carlock, McClinton & Smith Inc.); Miller-Becker Co. (Cotton Club beverages), thru Lang, Fisher & Stashower, Cleveland (WEWS); Little Crow Milling Co. (Coco- Wheats cereal), thru Rogers & Smith, Chicago (WEWS); Locatelli Inc. (cheese importer), thru H. C. Rossi, N. Y. (WOR-TV); Rolley Inc., San Francisco (perfumes) (KPIX); Polaroid Corp. (cameras), thru BBDO, N. Y. (WABD); Royal Crest Sales Co. (household appliances), thru Product Services Group, N. Y. (WABD); Oscar Mayer & Co. (sandwich spread), thru Sherman & Marquette, Chicago. Network Accounts: Minnesota Mining & Mfg. Co. (Scotch tape), starting June 19, sponsors Juvenile Jury on NBC-TV, Tue. 8:30-9, thru BBDO, Minneapolis, occu- pying last half-hour of time of Texaco Star Theatre dur- ing summer hiatus . . . Longines-Wittnauer Watch Co- June 11 starts sponsorship of Longines-Wittnauer Chrono- scope, with Frank Knight as host, on CBS-TV, Mon. 11- 11:15 p.m., thru Victor A. Bennett Co., N. Y.; time is vacated by Masland’s At Home Show . . . Debut of Blatz’s Amos ’n Andy film series on CBS-TV June 24, on as many stations as can be cleared for Thu. 8:30-9, will be heralded by $250,000 promotion campaign, including ads in Life, Look, American Weekly, Ebony, plus tune-in newspaper ads in all cities carrying show . . . American Safety Razor Corp. moving The Show Goes On from Thu. 8:30-9 to Sat. 9:30-10 on CBS-TV starting June 16, Thu. time being taken by Amos ’n Andy . . . Brown Shoe Co. (Naturalizer shoes) moving Say It with Acting from NBC-TV alt. Sat. 6:30-7 to ABC-TV, Fri. 7:30-8 weekly for 5 weeks start- ing Aug. 3; beginning Sept. 14, show vill alternate with Life with Linklettcr, sponsored by Green Giant Co., dur- ing same Fri. time . . . Budweiser replacing Kc7i Murray Shotv for summer with film series titled Budweiser Sum- mer Theatre starting June 9 on CBS-TV, Sat. 8-9, thru D’Arcy Adv. Co., St. Louis; Murray returns Sept. 8 . . . Lambert Pharmacal Co. (Listerine) has bought 7-7:30 Sat. on CBS-TV for fall sponsorship of unnamed show, thru Lambert & Feasley, N. Y. . . . Jessie DeBoth on June 19 starts Jessie’s TV Notebook on ABC-TV on participating basis, with these sponsors already signed: Clorox Chemi- cal Co., thru Honig-Cooper Co.; ('rosley Div., Avco, thru Benton & Bowles; LaChoy Foods Div., Beatrice Foods Co., thru Foote, Cone & Belding. TV OUTPUT FALLS TO 1350-51 LOW: Receding tide of TV production, expected to fall to still lower ebb in ensuing weeks, is indicated by output of only 55,966 units (2715 private label) during week ending June 1 — lowest for any week since start of 1950, with exception of one vacation week last summer. Factory inventory was 593,655, only about 4500 less than at end of preceding week (Vol. 7:22). Thus, total production first 5 months of 1951 was approximately 5,050,000 sets, as against 2,592,000 same months of 1950. Difference, though, is that sets moved all last year as fast as produced; now, total trade inventories are estimated up to 2,000,000 — boding tough going for manufacturers rest of this year. Radio output v;eek ending June 1, according to RTMA, fell to 255,256 sets as against 350,323 the preceding week. Radio inventory totaled 307,728 vs. 299,399 week before. Week*s radios were; 100,261 home, 110,748 auto, 24,227 portables. * * * * Ticklish cash position of some producers is indicated in reports current at RTMA convention this week (verified in cases of 3 companies) that some factories were selling large amounts of components to jobbers. Manufacturers get components at much lower cost than do jobbers, so latter get good deals. Such sales presume parts won't be short this fall and winter, still matter of conjecture. There was talk at Chicago, too, that several TV-radio factories had shut down receiver production entirely, may stay shut down through usual summer vacation periods in July, then resume only warily if inventories go down and trade outlook improves. On other hand, ^ was said to be turning TVs out at high rate, and ware- housing them against expected shortages. And Packard-Bell was put in "top producer" category by envious colleagues when it reported one line still going day and night. Notes from This Week's RTMA Chicago Convention More than 80% of RTMA members belong in small business category — employing less than 500 men. Thus, small business conference at RTMA convention had wide interest, resulted in setting up task group to study prob- lems and recommend steps RTMA might take to aid mem- bers. Among suggestions: (1) Compilation of history book for each company to show military services what its facilities are, what products it makes, what it did in World War II. (2) Establishment of panels of industry experts in various fields to which smaller entities could take their problems for advice. Newly elected RTMA directors are Harlan B. Foulke, Arvin, and Robert S. Alexander, Wells-Gardner. Robert C. Sprague was renamed chairman, all other officers re- elected. New division chairman are: Set Div., John W. Craig, Crosley, succeeding Glenn W. Thompson, Arvin; Tube Div., R. E. Carlson, Tung-Sol, succeeding Max F. Balcom, Sylvania; Amplifier & Sound Equipment Div., A. K. Ward, RCA, succeeding A. G. Schifino, Stromberg- Carlson. Remaining as division chairmen are H. J. Hoff- man, Machlett, transmitters; R. G. Zender, Lenz, parts. Prestige and morale advertising in trade papers — similar to now-famous Bendix ad (Vol. 7:19) — will hence- forth be undertaken by RTMA. Industry leaders feel this I type of advertising is needed to hold dealer confidence, will ■look better over RTMA imprimatur. RTMA is setting up own statistical dept., will handle all paper work involved in industry reports — set produc- tion, tube sales, etc. Association is dispensing with serv- ices of Haskins & Sells, which heretofore handled reports. TV isn’t anywhere near saturation, said RTMA chair- man Robert Sprague at June 7 luncheon meeting. By early 1952, he foresaw lifting of freeze and, unless materials shortages prevent, an expansion of TV. He recalled 1930 ownership of 13,000,000 radios by 40% of the then 29,000,- 000 families, yet in 1950 the manufacturers turned out 14,500,000 radios. “With a normal replacement market for TV sets, the establishment of 1,500,000 new families a year, the desire for larger screen by those who originally bought small screens, and the purchase of second and even third TV set for the home, the future looks bright indeed.” Of 14 electronics manufacturers failing during last 12 months, 6 were TV-radio makers, according to H. N. Henrye Sailer, credit mgr., John E. Fast Co., chairman of RTMA credit committee. Liabilities of 14 bankrupts totaled $4,125,653. Since January, following TV-radio manufacturers have been reported as going through wringer: Freed (Vol. 7:10), Richmond Television (Vol. 7:7, 10,17), S.M.A. (Vol. 7:18), Vidcraft (Vol. 7:7,9). President Glen McDaniel sees 2 major long-range poli- cies for RTMA during next several years: (1) Solidify friends and overcome “suspicions” of Washington officials — in Congress, FCC, other govt, agencies. (2) Work closer with telecasters and broadcasters on mutual prob- lems, since manufacturers “aren’t just selling TV-radio sets but are really selling programs.” Canadian RMA has voted to change name to Canadian Assn, of Radio & TV Manufacturers — though cumulative TVs turned out to May 1 has been only 56,284 (Vol. 7:22). 7 8 Topics & Trends of TV Trade: “Good old days of 1950” were fondly recalled by manufacturers when RTMA statistics committee chairman Frank Mansfield (Sylvania) officially reported 7,463,800 TV sets were turned out last year at factory value of $1,356,097,822 — meaning probable retail plus installation-warranty-servicing trade of at least $3 billion. Also produced were 9,849,300 home and port- able radios at factory value of $237,959,088, and 4,740,600 auto radios valued at $123,018,570. TV unit price last year averaged $181.69 at factory, home and portable radios $24.16, auto radios $25.95. Picture tube sales last year totaled 8,057,759, up 225% from 1949. Receiving tubes totaled 382,960,599, up 193%. Beginning July 1, RTMA will handle own inventory- sales statistics, will provide complete figures on factory, distributor, dealer sales. Dealer suiwey will be conducted by Dun & Bradstreet. Figures will be issued on national basis, won’t show city-by-city sales. First dealer inven- tory figures may be ready July 25, sales Aug. 5. * ♦ * * Senate Banking Committee, listening to Stromberg- Carlson’s Robert C. Tait repeat plea June 5 for 90-day moratorium on Regulation W, then same 15% down pay- ment terms as housefurnishings, indicated such sympa- thetic reaction that hopes were lifted that something may yet be done to help TV-radio trade out of present inven- tory troubles. Several committeemen said they would ask Federal Reseiwe Board what can be done. Mr. Tait’s testimony, as spokesman for RTMA, was heard by Sena- tors Maybank (D-S. C.), chairman; Capehart (R-Ind.), Ben- ton (D-Conn.), Schoeppel (R-Kan.). It was generally same testimony he gave before House committee the week before (Vol. 7:22). Mr. Tait indicated that as of May 11 ratio of factory inventory to TV sales was 4.99, up fx'om end of April’s 1.17, March’s 0.35, February and January’s 0.25 each; ratio never went beyond 0.53 in all 1950. The Tait testimony is contained in 19-page statement, with graphs and tables, that sets forth case for TV indus- try with most detailed economic data yet compiled — copies available from RTMA, 1317 F St. NW, Washington. 4: ^ Misleading TV ads is subject of special bulletin issued June 6 by New York Better Business Bureau president Hugh R. Jackson, pointing out that advertisements by some retailers and distributors don’t state what extra charges must be paid for warranty and federal taxes — thereby featuring prices at which TV sets can’t actually be bought. Jackson warned that this practice is violation of Federal Trade Commission’s radio trade practice rules, which provide that statement describing additional charges must be prominently featured “in immediate conjunction” with advertised price. World-wide patent pool covering entire field of tele- communications was set up June 6 by agreement between Western Electric, AT&T and subsidiaries and IT&T and its subsidiaries throughout the world. Agreement means any patents held by any one of signatories may be freely used by any or all of them. Some of the fields said to be covered by pact: TV (including color); radio, wire & cable transmission; radio transmitters & receivers; radio indi- cation (including i-adar), direction finding, aerial naviga- tion, instrument landing of aircraft; vacuum tubes, crys- tals & condensers; automatic telephone switching. IT&T subsidiary. International Standard Electric, owns 33 fac- tories in 22 countries. Only 4 are in U. S. Capehart- Farnsworth is home TV-radio manufacturing subsidiary of IT&T. Agreement runs for minimum of 6 years, may be terminated at end of 1956 by one year’s notice. Merchandising Notes: Price wars this week moved some sets by reason of heavy store traffic, but prices weren’t much lower (if at all) than previous inventory- unloading sales had been offering . . . Macy-Gimbel price markdowns were mainly consoles and combinations, these being some of June 1 offerings by Macy’s: RCA 17-in. combination, cut from $595 to $465; Emerson 19-in. con- sole, $289.95 to $224; DuMont 19-in. console with doors, $589.95 to $499; Stromberg-Carlson 24-in. combination, $975 to $774; Philco 17-in. console, $349.95 to $276 . . . One sign in TV-radio section of Macy’s read “$10 to $211 off manufacturer’s list price — complete line of Admiral TV” . . . Davega store in Flatbush, says Retailing Daily, displayed Emerson 19-in. in original carton, marked down from $439.95 to $239.95; store spokesman said same set at same price had been displayed for some time but before price war nobody even looked at it. “Now it stops dozens of people and brings them into the store” . . . Lowering prices of 20-in. table models indicated in Vim chain’s ad in New York June 8 offering unidentified make for $149.95; Muntz’s same day for $159.95; American Television, Chi- cago, June 7 for $169.50 . . . American Television also quoted 17-in. table at $99.50, console $129.50; 20-in. con- sole $189.50 . . . Raytheon now giving lifetime guarantee on all parts, except tubes, of TV tuner stage in its re- ceivers . . . Plesser’s chain, on Long Island, sends truck loaded with TVs through area’s big housing developments, offers free trial installations to homes not showing an- tenna . . . Good word for auctions in article in June Elec- trical Merchandising titled “TV Auctions Move Trade-ins Fast”; tells how Chicago northside retailer R. H. Tele- vision Sales advertised 7-in. trade-ins as low as $29.95 but couldn’t move them, then had auctioneer come in and sold some as high as $80 (good for color conversion, was pitch) . . . E. F. Hutton & Co., brokers, states “market for air- conditioning in metropolitan New York is reported to be less than 8% saturated, compared with 65% for TV”. Extent of installment credit drop is indicated in Fed- eral Reseiwe Board report for April, showing fourth con- secutive month of decline. Installment credit by TV and other household goods dealers dropped $79,000,000 from month before, by auto dealers $16,000,000. In contrast, there was $25,000,000 rise in loans repayable in install- ments made to finance retail purchases. April drop meant that 6 months since October showed nearly $500,000,000 decline in total debt for retail installment purchases, as against more than $2,000,000 increase in preceding 6 months. At beginning of May, FRB states, total volume of consumer credit outstanding was $19,121,000,000 vs. peak of $20,093,000,000 last Dec. 31. RTMA Trade Practices Committee, scheduled to meet with Federal Trade Commission June 21 (Vol. 7:22), will I’ecommend that new rules include definition of what con- stitutes false advertising of color sets and uhf. Commit- tee headed by Emerson’s Benjamin Abrams got board go- ahead on this and number of other proposals. * Hearing on community antenna system (Vol. 7:2, 7, 11, 21) by a state public utilities commission, first yet, has been scheduled in Wisconsin. System involved is that proposed for Rice Lake by Edwin F. Bennett, 511 W. Knapp St. Admiral assures trade in page ad in June 11 Electrical Merchandising : “No New Midseason Line — Present models' will be continued until introduction of new 1952 line next January”. Philco has joined Rensselaer Polytechnic Institute’s cooperative program for training scientific personnel; also has tieup for tiaining and exchange of technological data with MIT. COLOR WAR AWAITS SETS, SHOWS, SALES: Basic color picture hasn*t changed much in the fortnight since Supreme Court decision. It shapes up as series of running publicity- skirmishes until CBS unleashes its biggest guns when it goes commercial June 22. or thereabouts, and RCA counters with public demonstrations of its own system "in early July." Main battleground will first be New York area. But all this will still be just publicity. A realistic showdown isn't seen likely until people can walk in and buy color apparatus and make clear, by their purchases over a period of time, whether CBS-type color warrants a mass production industry — and can stand the gaff in a "price market." Even then, a compatible system may be placed before FCC in such an attrac- tive package that the Commission must carry out its promise to reopen whole issue, regardless of incompatible system's status at the time. Meanwhile — * * * (1) It's obvious that color sets aren't here yet, won't be cheap when they do come. Authority for that is Air King itself, soon to be "CBS Columbia Inc., consumer products division of CBS." (2) CBS is counting on slim initial colorcasting fare to precipitate big promised demand for sets. That's apparent in its proposed color schedule, which is carefully set up to minimize black-and-white dislocation. (3) Mass of manufacturing industry, despite fact current trade is badly shot (see Trade Report), has become sold on all-industry compatible system, hasn't been panicked into climbing on CBS bandwagon. * =f: * Price of Air King's color sets, shown to press June 4, came as surprise, in light of CBS's consistent "inexpensive" talk. TV-only 10-in. consoles, with magni- fiers giving 12)^-in. , will run $400 & $500, depending on style. And these have only manual switch to go from color to monochrome. "Early September" deliveries of sets, to be called "CBS Colorvision, " are promised. Company says it recognizes gamble in tooling for color in face of pos- sible materials shortages. It has no present plans for converters or slave units. Black-and-white sets will remain basic, because of price, even Air King officials are telling trade. Though confident color sets will sell like hot cakes, they're no less positive than rest of industry in saying that black-and-white will continue to be industry's main product for long time to come. Adapters , to enable past and present black-and-white sets to receive CBS color in monochrome, will be built — cheap, they say. When new CBS subsidiary will make drum sets instead of disc type, so as to get bigger pictures, wasn't indicated. Air King also takes dim view of tri-color tube, saying Hytron is working on one of its own to be used whenever practical. Color demand is enormous, says Air King, but it also reports great increase in black-and-white business and dealers clamoring for franchises. Company reports it now has 55 major distributors, and is "closing up weak spots" elsewhere. About 35% of business is private label, including Sears Roebuck. ^ Paramomt's "Chromatic TV" seems to promise earliest date, July 1, for com- bination color-monochrome sets. These will be built around Lawrence tri-color tube (Vol. 7:22), which officials admit doesn't give quite as sharp a picture as disc but permits pictures 17-in. and 21-in. or larger. Chromatic's plans don't seem very clear. It has no distribution setup, is cagey about production facilities. Tieup v/ith big department stores is possible. Copyright 1951 by Radio News Bureau - 2 - First offering may be AM-FM combination which could cost up to SlOOO. New York will be first market — for "several thousand." Company says CBS has spurned offer of tube. CBS denies that, says it was never offered. But Paramount feels some big firms will be buying it soon, claims it can be mass-produced much more easily and cheaply than RCA's. Among other manufacturers in the CBS color act ; Tele-tone reports that slave converters will be available for "under $100" by Aug. 1 ; Tele King says it will go into production "soon" on color-producing "Fadrak," described only as a plastic panel that is "wired directly to the body of the receiver" ; Muntz claims that color production activity has already begun. And there's the inevitable flock of fringe operators, unknowns who promise everything — including one advertising "color adapter" for $14.95 "to convert black and white TV to color." * * * * CBS's colorcasting schedule, as tentatively proffered affiliates, starting June 22, date of Supreme Court mandate; 10;50-11 a.m. & 11;15-11:45 p.m. daily plus 2;50-5 p.m. Saturdays. Among shows reportedly planned are color repeats of portions of regular Godfrey, Big Top, Ed Sullivan shows. Some 25 sponsors are said to be lined up, to pay $300-$400 an hour for time and facilities. Included are major advertisers, many of whom have been given color demonstrations of their products (Vol. 7:11,14). CBS's problem is how to make these sponsors stick when publicity value peters out — which many think is bound to happen before size of audience can grow to anything worthwhile. No break in industry front was apparent at RTMA convention in Chicago this week. Top-level executives heard GE's Dr. W.R.G. Baker and Philco's David Smith describe work of NTSC's Ad Hoc color committee (Vol. 7:1,18,22), agreed to throw weight into development of projected all-industry "composite" system. Some companies have their own ideas about methods for building upon basic principles of NTSC plan, which majors have accepted as better method of producing color — giving rise to speculation about schism among manufacturers. Actually, no break is apparent between RCA and others on Ad Hoc committee — DuMont, GE, Philco, Hazeltine, Sylvania - — but it's apparent the others don't want system to bear "onus" of FCC attitude toward RCA. Hence they refer to "composite, compatible, all-electronic system," though it is said by members to be basically the same one RCA promises to show in July. No one knows when FCC v/ill be asked to reconsider compatible system. Field testing certainly will take some months, and public reaction to demonstrations of RCA system, which embraces Ad Hoc's recommendations, will be watched closely. GE announced that it will begin test colorcasts, in Syracuse, "as soon as possible," using still pictures at first, live programs later. NTSC will be reor- ganized into 8 panels June 18, for coordinated attack on problems. Plan is to bring perfected system to Commission's attention by end of this year. Added impetus for other manufacturers will come with RCA's June 19-20 New York symposium on tri-color tube (Vol. 7:22), right after which 17-in. samples will be made available to licensees and during which 21-in. model will be shown. RCA will telecast its system for many showings to public, press, technical bodies — first in New York, then in other cities via coaxial and microwave. RCA Chairman Sarnoff sails for Europe June 15, leaving direction of company's "color campaign" in hands of committee headed by president Frank Folsom. But "it's a race against time," as chairman Robert Sprague frankly warned RTMA members. He pointed out that if CBS sets or converters sold in any quantity, compatible system would face problem of being "incompatible" v/ith CBS system — as FCC's own decision said in declaring "open door policy" on compatibility. This time factor may induce RCA, or someone else — if industry progress seems too slow — to go to Commission on its own system even before whole industry agrees on all system details. - 3 - No RTMA-sponsored anti-CBS advertising; campaign is in the works, though RTMA plans brochure to give dealers its evaluation of color situation. Individual manu- facturers say they intend to slap back hard in big ads, if CBS "plays rough" in its promotion campaign and further depresses their already moribund sales. Sample of industry ammunition, at this stage of game, comes from Philco’s James Carmine, one of industry's savviest merchandisers. In statement to Philco distributors and dealers, he said; "The situation is exactly as it was last October when the FCC first issued its ruling... We advised all Philco distributors and dealers that even though FCC had approved a color system, actual color signals would be on the air during fringe hours and on a very limited basis. These limited color broadcasts will not inter- fere with the great TV programs of today... The present firmly-established black-and- white TV service will continue to be the basic system of commercial TV for years to come. [A compatible system], in the very near future, should be ready for field- testing. It will require, however, refinements of the receiver as well as refine- ments of the color picture tube before it can be presented to the Commission. . .We firmly believe that this all-electronic color system [will] become the very finest color TV system in the world." He went on to say that Philco sets now being made are equipped for easy adaptation, thus enabling customers to buy with assurance of protection. :{: * * Talk of "immediate" color production on any sizable scale by CBS adherents is pooh-poohed by major manufacturers. Sure, they say, anyone can build samples, but it takes 6 months for any serious start on mass production. They point to criti- cal shortage of engineers, who are wrapped up in military developmental work on 5 times as many kinds of electronics gear as in last war. You can't sustain an indus- try, they say, by a few thousand sales to gadget fans and wealthy novelty-seekers. Idea of cheap color sets, converters or adapters is just day-dreaming, as far as top manufacturers are concerned. Even Zenith engineers, who built CBS sets for medical demonstrations, claim mere adaptation means almost complete rebuilding of sets now in hands of public, with scarcely any servicemen able to handle the job. CBS disagrees, contends a few adapter designs can take care of all existing sets. Sets now being built are something else. They can be designed to take adapters later. Matter of fact, Philco 's new line (Vol. 7:22) was built just that way. Company says it has adapters for anyone who wants them. * * ^ Color's impact on sales is hard to figure, simply because business is so bad anyway (see Trade Report). Some say customers' color queries have petered out. Others claim it's just beginning, is one more factor keeping people away. CBS's forthcoming campaign, countered by RCA demonstrations and possible other counter-campaigns, may leave color-impact element impossible to segregate. It's not likely FCC will give forth with any "advice to the consumer" — not in near future, at least. FCC hasn't distinguished itself in past for acumen about economic trends, or for its knowledge of manufacturing costs or its awareness of current demands on electronics industry. At moment, its policy is also "wait and see," and members now apparently appreciate it too has tremendous responsibility not to dry up an indus- try. "Gradual evolution" is attitude, and "open door" to compatibility is policy. ^ ^ Press handling of color story remains quite accurate, with few exceptions. I One egregious slip was May 29 Chicago Sun-Times headline, reading; "Court Backs CBS. Next Week — Color Video." But later editions read; "Color TV Here But Sets Aren't." RCA is distributing brochure of reprints of stories and editorial comment ' from newspapers and trade press throughout country, most showing remarkable grasp of I intricacies and implications of complex color issue. It's designed to help distrib- utors and dealers explain things to buying public. CBS keeps up flow of publicity pending Big Day, carrying on demonstrations 4 for fashion groups and the like. It is even reported sending Dr. Peter Goldmark to Geneva, where international TV standards are under discussion, in effort to sell other nations on CBS color. * Stations haven't had much to say, still sit tight. CBS is undoubtedly get- ting more gear from Remington Rand to equip its KTSL, Los Angeles, and partially- owned WTOP-TV, Washington, possibly also other outlets. Remington Rand says it's in good shape to handle orders, has had lots of inquiries lately, but no firm station commitments yet. Company says it has already got its initial costs out, believes potential competitors would have tough time catching up. Delivery of camera ordered now could be made in 120 days, it says. DuMont says it will accept orders for CBS camera chain, has been building new one easily adaptable to system. ^ likewise reports simple adaptability of new equipment. RCA, which once made color camera for CBS, says "no comment" at present. CANADA’S TV and radio will remain under control of Canadian Broadcasting Corp. if Parliament follows recommendations submitted this week by Massey Commis- sion on Arts, Letters & Sciences. For TV — only 2 stations yet authorized being CBC’s (Vol. 7:22) — Commission pro- poses: (a) No private stations be licensed until CBC na- tional programs are available, and private stations be re- quired to serve as CBC program outlets. (b) Financing of CBC’s TV programming to come from Federal treasury, with commercial revenue and TV license fees to pay operating expenses. (c) CBC to exei’cise strict control over TV stations to avoid excessive commercialism and encoui'age use of Cana- dian talent. (d) Entire question of telecasting in Canada be re- examined by independent body within 3 years after start of regular service. Commission gave CBC administration 4-1 confidence vote, rejected broadcasters’ appeals for separate board to control both CBC and private stations. Report recom- mended private broadcasters’ licenses run for 5 years in- stead of present 3, and that private broadcasters be granted right to appeal CBC rulings to Federal courts. Commission wants present $2.50-per-set radio license fee unchanged, didn’t recommend any specific TV fee. Census Bureau’s count of 5,120,000 homes with TVs as of April 1950, though more than year old, establishes sort of bench-mark for industry statisticians. Prelimi- nary 1950 Census of Housing Report, released this week, discloses this number of TV homes (census takers also counted refrigerators, heaters, etc.) : 4,376,000 urban dwellings with sets, or 15.8% of urban total; 571,000 rural non-farm homes, 6.8% ; 174,000 rural-farm, 3% . North- east and North Central areas had about 75% of all. Cen- sus Bureau count compares with NBC’s April 1, 1950 sets- in-use figure of 5,343,000 (Vol. 6:16), May 1 figure of 5,846,000 (Vol. 6:20). Census takers found radios close to saturation — 40,093,000 out of 45,875,000 homes (95.6%). Republic Pictures opens film vaults to TV in deal very much like Lippert’s (Vol. 7:17), whereby Petrillo’s AFM agrees to release of either old or new films if new musi- cal scores are recorded for TV and 5% of gross receipts from TV is paid to union. Move is first by any mem- ber of big MPA. President Herbert Yates has assured exhibitors releases will be only old films, depending on TV revenue potential. Meanwhile, Lippert is leasing 26 films to WCBS-TV in New York, KTLA in Los Angeles (owned by Paramount Pictures) and WGN-TV, Chicago, for re- ported $70,000, $69,000 & $67,500, respectively. Paramount Pictures’ net earnings for first quarter were estimated at $1,411,000, as against $1,441,000 in first quarter 1950, by president Barney Balaban at June 5 stock- holders meeting. Figui’e doesn’t include $205,000 (vs. $597,000 first quarter 1950) in pi’ofits from partially-owned companies, principally DuMont in which Paramount has 2914% interest. Paramount also holds half interest each in Chromatic Television Laboratories (Lawrence color tube; 7:22) and International Telemeter Corp. (fee-TV; Vol. 7:22). Balaban said increase in foreign revenues “in the face of a contraction of our domestic market” may be enough to offset higher taxes and amortization charges. As to TV’s impact, Balaban said: “It is now clear that TV has had its unmistakable effect upon our grosses, particularly in those areas of high TV concentration such as New York, Chicago, Detroit and Los Angeles.” But change from wartime to peacetime economy — not TV — ^has been principal cause of movie slump, he added. “With further expansion of television, we can expect its increasing influ- ence on our business,” Balaban said, adding that “it need not be an adverse influence.” He gave “beneficial inter- relationship” between film and TV industries as Para- mount’s aim, cited successful operation of its TV station KTLA, Los Angeles. Stockholder Benjamin M. Corey charged “bungling” in Paramount’s TV and reseai'ch de- partment had cost company more than $4,000,000 a year, but company officials said only $1,500,000 had been invested in TV research in 7 years. Extension of TV network to Miami will take “at least a year,” reports AT&T official following ABC announce- ment this week that it had asked phone company to inter- connect Miami’s single outlet, WTVJ (Wometco theatres). Meanwhile, further extensions seem to be in prospect be- tween U. S. and Canada. Tests to determine best sites for microwaving TV signals from Buffalo to Toronto were reported in April Electrical Digest, Toronto, quoting Har- old G. Young, Canadian Bell western area gen. mgr.: “We know we can bring TV in and provide good quality recep- tion, whenever the time comes for its authorization.” CBC’s Toronto station is due on air in early 1952 (Vol. 7:22). And, NBC has asked that following cities be inter- connected next year: Tulsa, Oklahoma City, Fort Worth- Dallas, San Antonio, Houston — microwave route now un- der study by AT&T engineers (Vol. 7:6,20). June 1 sets-in-use reported since NBC Research’s “cen- sus” of May 1 (Vol. 7:21): St. Louis 293,000, up 4000; Washington 265,250, up 4250; Fort Worth-Dallas 120,736, up 3736; Memphis 87,871, up 2871; Omaha 79,098, up 2298; Miami 70,000, up 5000; Greensboro 69,556, up 2556; Nor- folk 69,130, up 1830; Utica 43,500, up 1500. 9 Financial & Trade Notes: Among officers’ and direc- toi’s’ stock transactions reported by SEC for April: Wil- liam W. Trench gave 10 GE as gift, holds 252; Frank A. Hayden bought 100 Indiana Steel Products, holds 1500; Joseph V. McKee Jr. bought 1000 National Union (Nov., 1950), holds 1000; Kenneth C. Meinken bought 7500 Na- tional Union (March), holds 35,900; Adolphe A. Juviler gained 8240 Olympic through stock dividend, holds 90,640; Richard C. Noel gained 121 Olympic through dividend, holds 1333; Percy L. Schoenen sold 200 Olympic, gained 2240 through dividend, holds 24,700; Morris Sobin sold 800 Olympic, holds none; Herbert J. Allemang bought 100 Philco, holds 100; James T. Buckley gave 200 Philco as gift, holds 22,385; Thomas A. Kennally sold 500 Philco (March), hold 25,474; Fred W. Rombach gained 255 Philco through dividend (Dec., 1950), holds 5328; William B. Yoder gained 57 Philco through dividend (Dec., 1950), holds 1181; Herbert I. Markham sold 100 Sangamo Elec- tric, holds 2500; Richard L. Bowditch bought 85 Sylvania (Dec. & March), holds 100; James P. Hale bought 50 Syl- vania (Dec., 1949), hold 175; John B. Merrill gained 34 Sylvania through profit-sharing plan (March), holds 254. SEC also reported that in April Isaac D. Levy, CBS director and one of its founders, sold 5000 CBS Class A, retaining 26,826 Class A and 20,475 Class B. This week. New York Stock Exchange reported that in May he sold the 26,826 Class A and 15,179 Class B, retaining 5296 Class B. He has resigned as CBS director (Vol. 7:22). *r V V Dividends: Admiral, 25«i payable June 30 to holdei-s of record June 18; Bendix Aviation, 754 payable June 30 to stockholders of record June 6; Avco, 15^^ payable June 20 to holders June 1; Muter Co., 15<( payable June 30 to holders .June 15; Indiana Steel Products Co., 20^ payable Sept. 10 to holders Aug. 8; Corning Glass, 25^ quarterly, 87V2('- quarterly preferred, both payable July 2 to holders June 18; Arvin Industries, 504 payable June 30 to holders June 18; Zenith, 50^ payable July 31 to holders July 10; WJR The Goodwill Station Inc., 10^ payable June 20 to holders June 14. Cornell-Dubilier reports sales of $17,221,493 for 6 months ended March 31, up 68% from $10,237,040 same period year before. Net profit was $940,217, or $2.13 per share, vs. $554,349 ($1.21). For March 31 quarter, sales were $9,224,746, profit $606,508 ($1.39) vs. $5,436,316 and $246,141 (53<') same 1950 quarter. Trade Miscellany: Fire at Hoffman No. 3 plant in Los .\ngeles June 5 caused estimated $300,000-$500,000 dam- ages, started in incoming inspection quarters, raced through shipping and administrative areas, demolished stockroom . . . Raytheon has sold its subsidiary Russell Electric Co., Chicago manufacturer of fractional horse- power motors, heating elements, theimiostats, etc., to Charles Frost, New York City . . . Crosley plant at Rich- mond, Ind. (refrigerators) lays off 122 workers, about third of force, due to cutbacks in materials; early in May 800 were laid off, and TV-radio plant in Cincinnati for several months has been working at much reduced capacity . . . Allied Electric Products reports summer vacation shut- down June 30-July 16 . . . Sylvania TV-radio div., Buffalo, reports 25% expansion of space to meet backlog of defense electronics orders, now some $20,000,000; $275,000 addition is near completion and $400,000 plant is in planning stage. RTMA now has 330 members, compared with 314 last year, took in $249,690 in dues, spent $268,212 during fiscal year ending July 31. Budget for next fiscal year is set at $440,000 — with $485,000 expected from increased dues, moi-e members. During last fiscal year, RTMA spent some $40,000 in connection with FCC color hearings. Nobilizalion Notes: First definitive military procure- ment figures for electronics-communications were revealed June 7 by DPA acting administrator Edwin T. Gibson to RTMA Chicago convention. As of May 1, he stated, mili- tary had obligated $2,482 billion under 1951 fiscal appro- priations (out of approximately $4.1 billion set up for this category). Estimates for fiscal 1952 (July 1, 1951-June 30, 1952), based on overall militai’y budget of $60.65 billion, of which $29.7 billion is for procurement, come to $3.6 billion (Vol. 7:18). Backlog of orders as of May 1, said Gibson, totaled $2,784 billion, including pre-Korea oi’ders with long lead time. Expected rate of deliveries will be $881,000,000 dur- ing fourth quarter this year — “with much, much more to come in 1952.” (RTMA chairman Robert Sprague has said electronics-communications deliveries will hit peak of $2.5 billion in 1952, recede to $1.5 billion thereafter; Vol. 7:12.) Speaking of overall military orders, Gibson said: “The flood of deliveries is beginning now; it will increase in vol- ume in the last quarter of this year and reach its peak next year.” He added: “The full impact of materials shortages will be felt next year.” Nevertheless, he saw brighter outlook for materials : Steel capacity, 100,000,000 tons last June, is now up 5% and well on way to 20% increase planned. Aluminum, 750.000 tons last June, is now up 14% and on way to 75% increase planned. Difference between military dollar and civilian dollar, as applied to electronics, was illustrated for first time by Mr. Gibson. Citing “typical 17-in. TV set” as example, he said 86% of its price represents materials costs, only 14% labor and engineering. But: “For a modern air- borne fire control equipment, only 49% represents ma- terials, the balance represents the value of labor and engi- neering.” Thus, he noted: “Price-wise, this complex electronic equipment re- quii'es a vastly greater investment of labor and engineering by the end-product manufacturer than a comparable home television combination.” * * * Approximately 20% of total supply of nickel is ear- marked by NPA for non-defense use in June. Electronic tube industry is scheduled to get 180,000 lbs. this month for both military and civilian use, as compared to 200,000 last month and average 283,000 lbs. monthly last year. For TV-radio use, magnet manufacturers will get about 20.000 lbs. in June — unchanged from May- — enough to match their 30,000-lb. ration of cobalt, or about 25% of average 1950 monthly use. Some 600 applications for allocations of steel, copper and aluminum under Controlled Materials Plan had been received from electronics manufacturers at week’s end by NPA Electronics Div., with possibly 300 more expected. No allocations have yet been made by the division, al- though it was understood that they may begin next week. Trade Personals: Henry T. Roberts, manufacturers representative, appointed Majestic Radio v.p. in charge of private-brand contract sales, with offices at 743 N. La- Salle St., Chicago, and at Wilcox-Gay plant in Charlotte, Mich. . . . Ovid Riso, Philco International adv. & sales- promotion mgr., appointed v.p. in charge of adv. . . . Jack L. Hobby, ex-Capehart-Farnsworth and Andrea, appointed public relations asst, to Raytheon president Charles F. Adams . . . David P. Higgins elected Hallicrafters v.p. in charge of govt, contract div. . . . Joseph Grossman ap- pointed mgr. of Sentinel TV Sales Distributing Corp., suc- ceeding v.p. Joseph Bonnem, resigned because of ill health . . . Tom Jacocks named GE tube div. special repre- sentative in Washington. 10 - Telecasting Notes: United Auto Workers (CIO) wants in on TV, too, plans to apply for Detroit outlet (presum- ably one of 3 uhf proposed, since all vhf are already occu- pied); meanwhile, it’s buying weekly documentary on WWJ-TV, Tue. 7:30-8, conducted by own commentator Guy Nunn, starting June 19. UAW went heavily into FM, now wants to drop Cleveland FM, saying its Detroit WDET-FM provides ample coverage there. It also con- templates other TV applications . . . NBC-TV network billings for May expected to exceed AM network billings first time; PIB figures due in few weeks. Variety reports NBC-TV now sure to move into black ink by end of this year, as against $2,500,000 loss last, thanks to SRO on time commitments for fall-winter, good summer schedules, 30G rate hike effective July 1 . . . Bernice Judis, who runs big New York AM independent WNEW, never has liked TV anyhow, really got riled this week when Xavier Cugat, on DuMont, grimaced and made remarks that seemed de- rogatory to radio — so she has ordered his recordings banned from all WNEW disc shows; Cugat, contrite, told UP: “I am only a band leader who tries to make with the jokes sometimes. I certainly meant no harm, as some of my best friends are in radio” . . . Overflow crowd at this week’s commencement exercises at Washington U, St. Louis, watched ceremonies on battei’y of 8 TV sets on campus, featured pictorially in newspapers this week . . . Baltimore Markets chain’s “last word” in super-market, in Philadel- phia, includes TV lounge for tired shoppers as well as hab- erdashery, gas station, glass-enclosed bakery, etc. . . . WNBT begins telecasting June 11 from new Empire State Bldg, multiple antenna (Vol. 7:2,19), WJZ-TV due to start June 26, other 3 (WCBS-TV, WABD, WPIX) due by end of July; date for WATV is undetermined. Engineers say that at least 3 uhf stations (total proposed for New York) can also be handled . . . ABC increases night rates of its own TV stations, as of Aug. 1: WJZ-TV, from $3100 to $4000; WENR-TV, $1650 to $2000; WXYZ-TV, $1100 to $1350 KECA-TV, $1650 to $2000; KGO-TV, $600 to $850 . . . Milton Berle’s third “telethon” for Damon Runyon Memorial Fund was to run from 12 noon Sat., June 9, to 10 a.m.. Sun., June 10, from NBC studio 6B. Two vhf and one uhf application filed this week brought total pending to 410, as WHEB, Portsmouth, N. H., volun- tarily dropped application for Channel 5. John L. Booth’s WJLB, Detroit, applied for Channel 6; KRIS, Corpus Christi, also seeks Channel 6; WEXL, Royal Oak, Mich., asks for uhf Channel No. 62. New application for exper i- mental TV was filed by Conestoga Television Assn., Lan- caster, Pa., group of RCA engineers who once relayed Philadelphia programs to members with TVs but whose license was revoked last February (Vol. 7:5). [For de- tails about foregoing applications, see TV Addenda 12-V herewith; for all TV applications, see TV Faetbook No. 12 with Addenda to date.] Applications for construction of TV-radio stations under NPA order M-4 (Vol. 7:19-20, 22) will be processed in Washington, NPA announced June 4 — correcting pre- vious announcement that certain field offices would bo authorized to act on applications for this type of construc- tion which involve less than 50 tons of steel or less than $1,000,000 in construction costs. Applications may still be submitted at field offices, but will be forwarded to Wash- ington for action. I’V has depressed attendance at college football games, U of Chicago National Research Center concludes in sur- vey prepared for National Collegiate Athletic Assn. Survey, made public June 8 by NCAA, found that last year “col- leges in TV areas dropped about 4% from their normal attendance, while colleges outside those areas gained 4%.” “I did not become president of NBC to preside at the dissolution of the NBC radio network.” Thus, NBC’s Jos. McConnell answered June 7 demand of Affiliates Commit- tee, organized following network rate cuts (Vol. 7:16-17), that networks state their position on radio (Vol. 7:20). Supporting stand that NBC intends to “maintain network radio at highest possible level,” McConnell cited huge in- vestment NBC has made in Sunday night Tallulah Bank- head Dig Show extravaganza, recent sales promotion ac- tivities, forthcoming economic study of network radio by committee of affiliates (Vol. 7:20). Further reassurance that United Paramount has no thought of dumping ABC radio in favor of TV after pro- jected merger gets FCC approval (Vol. 7:21) is this state- ment by President Leonard Goldenson to June 4 Sponsor Magazine: “Despite any rumors you may hear, we defi- nitely will not get rid of the radio network. On the con- trary, we will devote our energies to building the radio network. We will not sell radio short . . .” On June 6, United Paramount board approved merger, set July 27 for stockholders’ ratification meeting. FCC closed down illegal TV station in Madisonville, Tex., suspended licenses of 2 amateurs involved — Henry W. Menefee, Madisonville, and Lawrence W. Peay, Ada, Okla. Station had been picking up and rebroadcasting signals of KPRC-TV, Houston, some 60 miles away. Com- mission was ready to crack down on another outfit in area but dropped action when it learned operation was com- munity antenna. Radio Writers Guild, in letter to FCC chairman Coy June 1, called for FCC investigation of “blacklist” it claims is maintained by “some networks, agencies and sponsors,” allegedly depriving TV-radio writers of jobs for reasons “unrelated to writing ability or professional experience.” Specifically named in letter are CBS loyalty questionnaire and “Red Channels” pamphlet. WJR, Detroit, has elected 3 new directors, following May 28 death of G. A. (Dick) Richards, chief owner (Vol. 7:22). President John F. Patt announced them as follows: Worth Kramer, v.p. & gen. mgr.; Selden S. Dickinson, gen. counsel; F. Sibley Moore, son-in-law of Mr. Richards, also elected asst, treasurer. Fraud by TV, radio or wire is placed in same cate- gory as postal fraud in H.R. 2948, amending title 18, U. S. Code, passed by House June 4 and now before Senate. Maximum punishment is 5 years imprisonment, $1000 fine. Trade journal of newspaper business. Editor & Pub- lisher, in June 2 editorial warns comic strip syndicators they better think twice before allowing dramatization of their comic strips on TV. “The newspapei--TV battle,” it states, “is not merely a fight for the advertisers’ dollar, as was the radio-newspaper fight primarily. This is a contest for the readers’ time in which no holds are barred” Editor & Publisher itself has published numerous surveys and statements to show TV’s effect on newspaper reading has been nil, as has Television Digest (Vol. 6:19,38; Vol: 7:5). Its editorial grows out of May 26 story that Bayonne (N. J.) Times billed United Features for fee after A1 Capp’s Li’l Abner mentioned recent Milton Berle TV show. Note: Comic book publishing house. Whitman Publishing Co., has signed contract for new monthly comic book titled The Range Rider, based on CBS-TV show of same name. Study of 168 newspapers in 62 TV cities indicates cir- culation gains since 1948 — 75% of morning papers and 81% of evening showing increases. In 1950, record TV set sales year, total circulation of newspapers studied went up to 31,000,000 as against 30,360,000 in 1948, according to Geyer, Newell & Ganger Inc., which made study. LISHED WEEKLY BY RADIO NEWS BUREAU, 1519 CONNECTICUT AVE. N.W., WASHINGTON 6, D.C. TELEPHONE MICHIGAN 2020 • VOL. 7, NO. 24 June 16, 1951 tn This Issue: High Production Out for Duration, page 1. Speedier End of Freeze Now FCC Aim, gage 3. Better FCC-Industry Relations Seen, gage U, Maneuvering of the Color Principals, gage 5. Theatre-TV ‘Premiere’ Scores a Hit, gage 7. Financial & Trade Notes, gage 9. Topics & Trends of TV Trade, gage 10. Mobilization Notes, gage 11. HIGH TV PRODUCTION OUT FOR DURATION: it isn't Must talk" any more. Even if demand for TVs should suddenly snap back.... even if by some miracle today's inventory glut were to be wiped out.... even if buyers began clamoring for every new TV receiving set produced — Production couldn't begin to approach last winter's boom proportions. Out- put at 150,000 to 200, 000-per-week level is out for the duration of the mobilization build-up period. Here's why; "Military production is .lust now getting under way on a big scale. The output of civilian goods is just now beginning to be seriously cut back." The words are President Truman's, from his June 15 TV-radio address, and they point a finger at the TV-radio industry particularly. Materials limitations and shortages , from here on in, will be every bit as drastic as predicted. Shortages have slipped in the back door, while trade slvimp held production down. If demand picks up, present rate of TV production can go up — but not much. * ♦ * * Military orders and production generally are moving forward and the volume is big (Vol. 7:23), albeit not all TV-radio manufacturers are getting enough defense work to offset their civilian dropoff. The condition is underscored by RCA's announcement June 15 that its big Camden TV plant v/ill be entirely converted to military production after 2-week vaca- tion that begins June 29. And GE, in revealing layoff of 500 of the 900 workers at radio receiver plant in Utica, stated it was due to govt, materials restrictions. Camden plant employs 1200, begins radar output this fall after engineers have reconverted it. Until then, about 450 workers will go into other jobs, start- ing July 17; others will be recalled as military production progresses. RCA plants at Indianapolis and Bloomington, Ind. will continue to turn out TVs. "Govt, orders for critical electronic equipment have reached a volume which requires a substantial increase in manufacturing space and facilities." This state- ment by RCA Victor v.p.. Admiral W.A. Buck, brings President's words closer home. Signs are same throughout all industry, indicating defense production is beginning to take some of factory space — and vast gobs of materials — which would normally be used in TV-radio production. Although wholesale conversion of TV-radio plants to defense is still months off, the big cutbacks in strategic materials are here now and are destined to get progressively tougher. V ^ ^ ^ I You don't have to be a soothsayer to get an idea of the terrific potential j value of the 2,000,000 or so TVs now languishing in inventory — in light of this (irastically curtailed production. President of Associated Vi/arehouses Inc., Curtice Robertson, estimates that iLhe nation's warehouses are filled to 95-100% capacity, largely with appliances. Copyright 1951 by Radio News Bureau including TVs. These may be a drug on the market now, but what will they be worth next Christmas season? Toughest problem for TV trade during this eerie reconversion period is how to hold onto these sets, prevent distress selling, until that oft-predicted day when they're "worth their weight in gold." Factory inventories climbed to new high of 621,299 as of June 8, up from 593,299 preceding week's end, RTMA reports. Production of TVs for week was 75,470 (3160 private label), up from 53,969 week ending Jiine 1 (Vol. 7:23), which included Memorial Day hiatus. Radios for week went up to 526,867 from 235,236 preceding * week, factory inventory rising to 377,625 from 307,728. June 8 week's radios were 145,131 home receivers, 144,123 auto, 37,613 portable. If you have any doubts about potentialities of trade's big inventories, con- sider these facts of life about TV production: Lack of demand has dictated production cuts since March. You didn't hear much squawking about material shortages. But they weren't far behind. If demand had been at peak — even then there would have been steady decline in TV production through the second quarter. Consumer resistance applied the brake just as material shortages were about to do it. Future TV production will be dictated by govt, defense production plans — and, regardless of trade conditions, regardless of war or peace in Korea, the pinch will get tighter and tighter. You can expect this until late 1952. when planners expect mobilization to pass peak, and civilian production to hit comeback trail. What of the rest of this year? On basis of third quarter curbs, industry couldn't conceivably average even close to 100,000 TVs a week. And fourth quarter can't possibly be better — overwhelming odds are that it will be worse. All-out Controlled Materials Plan for fourth quarter will probably cover TV-radio and other consumer durable goods. But it won't mean bigger share of ma- terials. It will simply allocate to manufacturers the metal the Govt, doesn't need for defense production. But consumer goods will still be at the end of the line. * * * *■ Here's the score for third quarter, as adduced from careful checks with govt, production control authorities: Cutbacks in steel, copper, aluminum — the basic controlled metals — will hit directly at TV set manufacturers. But shortages of the rare metals used in TV and radio components — nickel, cobalt , tungsten — may hit the hardest. "Rough, tough and nasty, " is how one high control official described the nickel situation. Just this week, NPA sharply stepped up amount of nickel-bearing alloy steel the mills must reserve for defense orders. This leaves less nickel for tubes, speaker magnets, focus devices. And they tell us it's only the beginning. Tube makers are getting less and less nickel — and they must use it to make more and more military tubes. What's left goes into civilian tubes. They're sched- uled to get 150-180,000 lbs. of nickel in July, compared to 180,000 in June, 200,000 in May, average 283,000 a month in 1950. Whether tube shortage can be averted this year rests on answers to these questions: (1) How many tubes will set manufacturers require? (2) How big a supply of unbranded stock are tube makers setting aside for future sale? ^ * On basis of copper supply alone — ignoring nickel and the other rare metals — third quarter outlook isn't rosy. Set manufacturers will be limited to 70% of steel, 60% of copper, 50% of aluminum they used during average quarter of first-half 1950 base period. This includes metal in parts as well as raw metal. Assuming that 60% copper cut will be the limiting factor — and, for the moment, disregarding conservation measures — restrictions would permit production of about 934,000 TVs during third quarter. This is an annual rate of 3,737,000, or 72,000 a week — based on a flat 60% of average base period quarterly output of 1.557,000 sets 3 But conservation will surely enter the picture. So, assuming that conser- vation, together with concentration on smaller low-end lines, could save 25% of copper used per set during base period — third quarter could see maximum output of 1,125,750 TVs, an annual rate of 4,503,000, or 86,000 a week. Greater conservation could possibly bring this figure up a few notches — but, by the same token, other shortages and restrictions could drag it way down. And there's another joker in the deck. Since consumer goods won't come under CMP third quarter, the 70-60-50% limitations on steel, copper, aluminum may be just another fishing license. They're maximums, not firm allocations. Govt, production planners say they've cut down CMP allotments of metals in order to leave enough for consumer goods. But if there's a slip-up in their figur- ing, the cuts may go much deeper. SPEEDIER END OF FREEZE NOW FOG AIM: Now really bent on hastening freeze thaw, FCC batted vexing freeze problems back and forth almost all this week — finally assented to hear oral arguments June 28 on legality of its predetermined allocation plan prior to scheduled July 9 city-by-city hearing. Not that Commission has much doubt about legality — or wisdom — of its proposed rule-making and allocating course (see Allocation Report, March 24, 1951). But it insists it has open mind — "will consider better ideas, if any are offered," to use the words of Chairman Coy. Looking beyond oral argument. Commission racked its collective brains for techniques enabling speedup. So far, only one idea has gained strong support, but it's doubtful FCC will try it without considerable industry backing. It's this; Dispense with city-by-city hearing. Let FCC make final allocation on basis of written comments, perhaps after another round of comments wherein all parties fire all guns they've been saving for hearing. Legality of this procedure is quite sound, say Commission sources. But, as one commissioner puts it: "We'd be called 'a bunch of arbitrary bastards* if we did that by ourselves. It would be pretty hard to get 7 rather gun-shy commissioners to do it. But if the industry liked the idea, there would be no trouble." Four weeks of scrutinizing comments would produce a final allocation, ac- cording to some commissioners. Whether much of industry would go along with such procedure, is hard to say. Lav/yers always incline towards hearings, like to "make a case," to embarrass the opposition, to feel out commissioners. And educational issue probably increases reluctance to drop hearing, because applicants thus have a "common enemy". Answer to Sen. Johnson's letter (Vol. 7:22) is implicit in grant of oral argument. Also implicit is fact that partial freeze-lifting (Vol. 7:13) becomes impossible pending disposition of legalities. FCC's authority to allocate by rule-making and to reserve channels are only questions to be argued. Commission ruled. Other contentions were dismissed, such as those of WKMH, Dearborn, Mich. (Vol. 7:18) to effect that parties didn't have full opportunity to participate in rule-making and that proper quasi-judicial hearing hasn't been given the 31 stations involved in channel shifts. * * * * I Opposition comments filed this week numbered 300-odd, are just about what was expected: Everyone wants a vhf channel, will even quote FCC rules to get it. [For digests of oppositions, see Supplement No. 72-B sent herewith to all full-service subscribers. Any we've missed will be reported next week.] j Ramifications of original comments (Supps. 72 & 72-A) and oppositions impel I people in Commission to contend procedures proposed by FCC Bar Assn. . et al., are ] impractical, legal or not. They insist you can't combine allocations and competi- 1 tive hearings and still confine them to specific cities, that there aren't enough I "fire breaks" (existing stations) to keep such hearings within workable limits. * * * Educators have suffered couple setbacks. (1) Their FCC champion. Comr. i Hennock, was nominated to be Federal judge (see p. 4), which may take some of steam - 4 - out of their cause. (2) Views of Ford Foundation consultant James Young, favoring use of commercial stations for education (Vol. 7:23), were widely disseminated. Though educators haven't always been happy with Comr. Hennock, they appre- ciated value of her vociferous advocacy via public speeches and on FCC bench. They’re plenty disturbed over Young's statement, in letter released by NARTB. He wrote; "There may develop specialized uses for TV in instructional and cultural material for which we need non-commercial support, just as we need it in other in- stitutions of our society, but the important fact remains that we are committed to a commercial, competitive system of broadcasting in this country, and that through it we will eventually be spending not less than a billion dollars a year in time and talent costs for commercial TV. "It is this powerful stream of commercial broadcasting which, in my opinion, will be the real Impact of TV on this country — on its level of information, its emotional maturity, and its unconscious behaviour pattern." Reluctant to bite hand which has fed educators to tune of some $500,000 to date. Joint Committee on Educational TV insists educators mean business. New asso- ciate director Ralph Steetle estimates that 10 institutions would be ready to build today, if they could get channels, that another year would bring 10 more. BETTER FCC-INDUSTRY RELATIONS SEEN: It remains to be seen whether FCC changes mean end to big-stick era of TV-radio regulation and improved relations between the Com- mission and the broadcasting-telecasting and related industries. Comr. Frieda Hennock' s appointment to a Federal judgeship, resignation of asst, general counsel Harry Plotkin to join top-hole Washington law firm, unopposed confirmation of Chairman Coy by Senate — all happened this week. Add promising staff setup of newly established Broadcast Bureau (Vol. 7:18), and it would seem the outlook for fewer brickbats is good. But anything can happen. Miss Hennock stays until confirmed by Senate, which may take quite a while, inasmuch as New York City bar association is opposing her as "unqualified" for the district judgeship there, to which President Truman appointed her. But Federal nominations aren't usually beaten by such local opposition — so the radio fraternity is already playing the usual guessing games about her successor. ^ ^ Miss Hennock' s departure is frankly welcomed by radio folk — though her FCC voting record is good. But she's author and prime mover in "educational allocation" plan whereby sizable number of scarce and now-eagerly-sought TV channels, particu- larly vhf, would be held for institutions of learning. This means that many less available for commercial stations, and probable slowdown of end of freeze. The brilliant Mr. Plotkin, credited with being architect of some of FCC's get-tough policies, the man who drafted its bitterly controversial color reports. joins Arnold, Fortas & Porter law firm to work mainly on litigation and appellate cases. Former FCC chairman (ex-OPA administrator) Paul Porter is partner in this firm, whose clients include many TV-radio and related interests — among them ABC, Paramount Pictures, Muzak, Western Union. Scuttlebutt has Hennock job going to Robert T. Bartley, aide to his uncle Speaker Sam Rayburn and onetime employe of NAB and Yankee Network. But at Demo- cratic National Committee the women's division says the post definitely is earmarked for a woman, though no candidates were indicated. Mrs. Fanny Litvin, with FCC and old FRC since 1928, now an examiner, is supported by Senator Murray, of Montana, her home state, and trade talk has mentioned these other possible candidates: Neville Miller, onetime mayor of Louisville, ex-NAB president, now practic- ing radio law in Washington; Edward Cooper, former communications asst, to Senator Johnson's Committee on Interstate & Foreign Commerce, now aide to majority leader McFarland (D-Ariz. ) ; Benedict Cottone, FCC general counsel ; Theodore F. Granik. who moderates NBC's American Forum of the Air; Don Fink, editor of Electronics Magazine. Only certainty abcut appointment is that Senator Johnson will have decisive voice. - 5 - MANEUVERING OF THE COLOR PRINCIPALS: Color showdown — or a series of them — is yet to come. Crescendo of activity and publicity continues to rise; June 18: National Television System Committee (RTMA-IRE) reorganizes into panels for all-out assault to perfect details of all-industry system (Vol. 7:23). June 19-20: RCA reveals all its latest know-how on tri-color tube manufac- ture to 231 patent licensees, including CBS-Hytron, in New York's Waldorf-Astoria. June 25 : CBS inaugurates commercial color with an all-star show, featuring Arthur Godfrey and piped to Boston, Philadelphia, Baltimore, Washington. July 9, or thereabouts; RCA begins public demonstrations of its system — locations and schedules yet undisclosed. From then on, it's up to public to answer these questions: (1) What happens to black-and-white sales before color sets appear? (2) How well will color sets sell when they begin trickling through in couple of months? And how will they affect black-and-white market? ^ ^ But status of compatible system may be an even bigger imponderable. That's up to FCC and probably RCA — since rest of industry, through NTSC, isn't expected to place its system before FCC prior to fall or winter. FCC's position was reiterated in question-answer statement released this week. Commission indicated that CBS system is "law of the land," that compatible system will be considered only when it completely fulfills all requirements laid down in original color decision, namely — petition for hearing must be filed; receiver must be delivered to Commission; signal must be put on air in Washington; system must meet 7 rigid performance criteria (see Oct. 14 Special Color Report). Nothing new or unexpected in that. But various interpretations have been put on this statement: "Persons with genuine programs of experimentation. . .may carry on their experiments by securing [appropriate authorizations]. Such authorizations, however, do not permit the rendition of a regular broadcast program service nor may any of the programs be sponsored." Whether this cramps RCA's style in its off-air public showings remains to be seen. Closed-circuit demonstrations are something else ; FCC admits it has no jurisdiction there. Extent and nature of off-air showings will undoubtedly deter- mine Commission's attitude. At least one commissioner has made it clear he doesn't want demonstrations used for "exploitation" purposes (Vol. 7:22). Comr. Hennock's attitude toward compatible system was reiterated on June 10 Meet the Press telecast when she said she thinks such system is ultimate answer, and wondered whether "it might be a good idea to have dual standards and let the public provide the answer." She also said that present sets won't be obsolete for 5-10 years. Nevertheless, she defended CBS system as a "very great Improvement that shouldn't be kept from the public." RCA's intensity can't be underestimated. Although it goes along with NTSC on color system principles, it apparently feels it's way ahead of the pack, may well come to Commission on its own in near future. But it isn't saying so, yet. RCA has set up top-echelon committee to handle color in absence of chairman Sarnoff, who left June 15 for 2 months in Europe. It comprises RCA's Frank Folsom, D.F. Schmit, C.B. Jolliffe, Mannie Sacks, NBC's Charles Denny and Frank Russell. And NBC-TV has temporarily detached program manager Ernest Walling for full-time supervision of color programming. Gen. Sarnoff predicted, in June 13 speech at Chicago's Mundelein College, that black-and-white "will remain the backbone of the TV industry for a number of years to come," said "we hope and believe" FCC will eventually approve RCA system. >:= ❖ >!: CBS's gala June 25 color opening, set for 4:30-5:30 p.m. , will feature FCC Chairman Coy, CBS's Wm. Paley and Frank Stanton, in addition to netv/ork's top stars — Godfrey, Ed Sullivan, Faye Emerson, Garry Moore, Sam Levenson, et al. Show will be sponsored, participation, probably by stars' regular sponsors. Regular daily schedule begins June 27, 10:30-11 a.m. & 4:30-5 p.m. with 6 early afternoon shows added on Saturdays. CBS is said to be dickering with General Mills for regular sponsorships. Programs will be offered to VVMAR-TV, Baltimore; WNAC-TV, Boston; WCAU-TV, Philadelphia; WTOP-TV, Washington. E.K. Jett, director of Baltimore Sun's WMAR-TV, says he'll carry only morn- ing schedule, can't clear afternoon, will use occasional early Saturday afternoon show. Station has borrowed two 10-in. table sets from CBS, will display them in lobbies of old and new Sun buildings. It has also ordered color monitor from Gray Mfg. Co. No big promotion is planned, Jett says, but newspaper will carry small box inviting public in and will feature news stories on color. John Hayes, manager of WTOP-TV (55% owned by Washington Post, 45% by CBS), says station will carry morning programs only, will have couple sets for display in station lobby, doesn't plan heavy newspaper promotion. Expected CBS publicity campaign hasn't broken in full force yet. However, Retailing Daily has story to effect that $12,000,000 promotion was to start June 16, on CBS's own facilities, newspapers and magazines. Story came from Los Angeles, was based on interview with Jack Covel, head of Exclusive Sales Corp. , Air King distrib- utor. He said he had conferred with CBS officials, believed that color would be on air in Los Angeles in 60 days, that 12%-in. converter would be available for "about $200, " that "we will guarantee in writing, if necessary, that converter units can be installed in a matter of minutes by a serviceman." Meanwhile, CBS issues news releases daily, quoting glowing tributes from Walt Disney, members of Japanese radio delegation, CBS programmers, etc. 4= * * * Aside from RCA, most outspoken critic of Commission among major manufac- turers seems to be Emerson's Ben Abrams. In June 12 talk to Assn, of Customers' brokers in New York this week, he said: "The CBS system is an imposition on the public. With all its other draw- backs, it will be at least 2 years before color sets can be available to the public generally, allowing for the time required to tool up for mass production. A few sets may be seen next fall, but they will be for demonstration purposes only. Further- more, to adapt present sets to receive CBS color broadcasts in black-and-white would cost the owner $50 to $100 for an adapter, plus $150 to $200 for a converter to re- ceive color." And he said that such equipment might not pass underwriters' approval. As for compatible system, Mr. Abrams said; "Its advantages will be con- cretely demonstrated to the public through comparison of the limited entertainment value of the mechanical color system with great strides made in black-and-white." Another strong-minded manufacturer, H.L. Hoffman, after attending RTMA Chicago convention (Vol. 7:22), stated: "It would appear that the prospects of har- nessing the entire know-how of the electronic industry in the NTSC system is a very good one, and one that will not only protect the retail customer, but give the industry sufficient latitude for future technical developments." * ♦ * * The few manufacturers going along with CBS apparently have settled down to carry out color production promises or have merely settled down. Air King, now officially a CBS subsidiary (see Financial Notes), is still promoting its black-and- - white sets to the trade, saying they're adaptable to color and uhf. Its color sets, when they do come, will all be disc-type initially, not drum, since company still has to lick problem of splitting or folding up drum for black-and-white reception. Paramount's "Chromatic Television Labs" hasn't said any more about sets since it promised demonstrations of combination color-monochrome receivers July 1 (Vol. 7:22), but it did announce signing research and development contract with Air Force , covering tri-color tube and "general electronic projects." Really unusual color angle is that of Majestic. In full-page ad June 14 in Retailing Daily, it announced: "Coloramic" TV — "It's Magical I It's Spectacular! It's Colorific! You don't need color telecasting in your city to see color on Majestic TV." Majestic turns out to have red-blue-green piece of film which is I - 7 - I placed in front of tube. Colors don't change, have no relation to subject matter, i according to company officials. Majestic says it also expects to make film avail- j able to trade, to sell for about $10 for 16-in. tube. I A "color guarantee" was offered in New York by big Vim chain — a contract to supply current set purchasers with adapters and converters at cost. Terms of contract leave Vim well-protected against almost every contingency of price, availa- bility and performance. Both FCC and RTMA agree that color and uhf should be among subjects of fair trade practices conference scheduled June 22 by Federal Trade Commission (Vol.7;23). It remains to be seen what FCC will recommend, but it's to be noted that Commission offered no "to buy or not to buy" advice in its question-answer statement. THEATRE-TV 'PREMIERE' SCORES A HIT: America's first theatre TV "network" experiment was a terrific success — judging from our own observations and from newspaper com- ments. All 9 theatres in 6 cities presenting the June 15 Joe Louis-Lee Savold heavyweight bout were packed to overflowing, with thousands turned away. Madison Square Garden, too, was filled near capacity — 18,000 spectators, an unusual crowd for a non-title fight these days. But success of initial Inter- national Boxing Club-movie house effort doesn't fully secure theatre TV's standing as substantial rival to free home TV (Vol. 7:23). Tremendous publicity attending this "premiere" — together with fact that bout was postponed twice because of rain to Friday night, normally a good theatre and fight night — may have had considerable effect on attendance. Ticket sales for fight itself, not telecast at all nor shown in New York theatres, lagged when bout was originally scheduled at Polo Grounds June 13, picked up Friday when it was moved indoors. The 18,000 crowd wouldn't have been very impressive at Polo Grounds. Nathan L. Halpern. who set up the cable-microwave network, said after show; "This is strong evidence that the public will pay to see programs they want on TV, film or whatnot. This will encourage further development of theatre TV." Fight was shown in Albany, Baltimore, Washington, Pittsburgh, Cleveland and Chicago. Theatres in Boston, Binghamton, Detroit, Minneapolis were unable to get coaxial line clearances. IBC got percentage of theatres' take, varying from house to house. It didn't amount to much compared to the $100,000 offered by home-TV sponsor Pabst, but all parties emphasized hookup was purely experimental. * * * ♦ We saw the show at RKO Keith's in Washington. Line in front of boxoffice began 4 hours before 10 p.m. fight time. By 9:45 it extended more than a city block. We selected 12 people at random, found that 9 of them had TVs at home. Some grumbled ' about having to pay to see TV — nevertheless they were waiting in SRO line. Crowd was cool at first, but warmed up quickly when real action began in second round. By knockout round (sixth) there was much of the vocal enthusiasm of a fight arena in the theatre audience. Most of the audience didn't stay to see the feature picture, although it was shown as part of the bill. Enthusiasm for theatre TV was apparent in the crowds leaving the theatre. I! The 15x20— ft. picture, while dim , fuzzy and lacking in depth by movie standards, was superior to home TV. in opinions we heard after the show. And there was certainly i: more of a feeling of "being in the arena" than with home set. But theatre TV hasn't established itself by this one event as a big-time . competitor to free home TV. More experiments are to follow. Same "network" will ' screen 2 more IBC bouts in next few weeks; Jake LaMotta-Irish Bob Murphy June 27, Rex Layne-Rocky Marciano July 11. Time alone will tell whether the public will pay to see events which have been kept off their TV screens at home. Surprising angle in fight telecast was fact NBC camera crews shot the fight - for the theatres. This plug appeared on theatre screens; "This theatre telecast has ; been made with the technical facilities of the National Broadcasting Co." Apparently NBC doesn't want to be left out in the cold if theatre TV does become important factor on the American entertainment scene. It's known also, that - 8 - NBC's parent RCA, chief manufacturer of theatre-TV equipment, is developing its own system of home subscription TV. Leaping into the theatre vs. home IV fray was Zenith's E.F. McDonald, pro- moter of Phonevision, this week who wrote to CBS president Frank Stanton; "Is the TV industry, manufacturing and advertising fraternity going to sit idly by and' do nothing while theatre TV gains a monopoly on the showing of great events? Or are you going to help us establish subscription TV, which will give you a box office?" Network Accounts: Curtis circulation Co. (Saturday Evening Post, Holiday), starting June 19 sponsors second edition of Meet the Press for 13 weeks on NBC-TV Tue. 8-8:30, thru BBDO, N. Y., occupying first half-hour of Texaco Star Theatre time for summer; Sun. edition of Meet the Press July 1 moves from 4-4:30 to 7:30-8, will continue to be sponsored by Revere Copper & Brass Co. . , . International Shoe Co. (Red Goose shoes), starting Sept. 1, will sponsor Kids & Co. on DuMont Sat. 11-11:30 a.m., thru Westheimer & Block, St. Louis . . . Mennen Co. (shaving products), starting July 6, sponsors Twenty Questions on DuMont Fri. 8-8:30, thru Duane Jones Co., N. Y. . . . Walter H. Johnson Candy Co. (Powerhouse candy bar) starts sponsorship of Flying Tigers July 29 on DuMont, Sun. 12:30-1, thi-u Franklin Bruck Adv. Corp., N. Y. . . . National Biscuit Co. (crackers & cookies) in fall takes over sponsorship of Wed. portion of Kukla, Fran & Ollie on NBC-TV Mon.-Fri. 7-7:30, thru McCann-Erickson, N. Y. ; time being vacated by Ford at end of current run . . . Pall Mall July 6 replaces Big Story on NBC-TV Fri. 9:9:30 with Door with No Name for summer . . . Kate Smith starts new weekly show Sept. 19 on NBC-TV, Wed. 8-9, with Congoleum -Nairn Inc. signed as first sponsor taking half-hour alt. weeks . . . Gulf Oil July 6 replaces We The People with The Clock on NBC-TV Fri. 8:30-9 for summer. Station Accounts: “Daytime tv’s oldest continuously sponsored pi’ogram,” is claim made for Philadelphia Elec- tric Co.’s Television Kitchen, cooking show, on WPTZ Wed. 2-2:30, just renewed for another 6 months; it has been running since 1947 . . . Brooklyn Union Gas Co. takes additional half hour, Tue. 2-2:30, on Market Melodies on WJZ-TV, New Yoi’k . . . Coca-Cola Bottlers of N. Y. em- bark on summer “saturation” campaign on TV-radio, aim- ing at housewives and teen-agers; using TV stations WCBS-TV, WNBT, WABD . . . Some 52,000 dogs, cats and other pets have been placed in good homes via Calo Pet Exchange, oldest sponsored show on KTTV, Los Angeles, Fri. 7:30-8 . . . Continental Oil Co., to promote Conoco N-Tane gasoline & Super Motor Oil, using TV-radio along with some 1000 newspapers in its 22-state distribution area (Midwest & Southwest) in campaign starting this month, thru Geyer, Newell & Ganger Inc. . . . Owl-Rexall drug chain buys Jeanne Gray Show on KTSL, Los An- geles, 3-3:30 Mon. thru Fri., thru BBDO, and Cunningham di'ug chain buys daily Telenews Ace plus 2 other daily newscasts on WJBK-TV, Detroit, thru Sinions-Michelson . . . Forest City Products Inc., for new Adhesa-Foam food aid, testing TV before national campaign, thru Foster & Davies, Cleveland . . . Lutz & Schramm Inc. (jellies & preserves) using WDTV, Pittsburgh, preparatory to pos- sible expansion later, thru Wasser, Kay & Phillips Inc., Pittsburgh . . . Among other advertisers reported using or preparing to use TV: Special Foods Co. (Jays potato chips), thru Olian Adv., Chicago; Beauty Sales (Shampoo- Curl), thru Barton A. Stebbins Adv. Agcy., Los Angeles; Regens Lighter Corp. (lighters), thru Alfred J. Silberstein- Rert Goldsmith Inc., N. Y. (WOR-TV); Gordon Strubler Inc. (Lathercap shaving brush), thru Sid Robbins Adv., N. Y. (WOR-TV); Mrs. Drenks Foods Inc. (Mrs. Drenks potato chips), thru Stone-O’Halloran Inc., Milwaukee; Jet Wax Co. (spray wax), thru A1 Herr Adv. Agcy., Mil- waukee (WTM.J-TV); Sheerr Bros. & Co. (Anno apparel intei’facing), thru Lane Adv. Agcy., N. Y. ■ Best way to stretch TV advertising dollar is to buy into a multiple-brand show, costing more than $17,000 per hour weekly to produce and rating 20 or better. That’s one of the significant things NBC learned in its second Hofstra College study of TV audience, announced June 11. Average TV program produces 15.6 extra customers per product for each dollar invested compared to pull of non-TV advertised item, report indicates. Program that costs more than $17,000 an hour weekly delivers 19.5 extra customers. A show with a rating of 20 or higher delivers 23.5 extra customers. And a multiple-brand show like Kate Smith Show or Shoiv of Shows — where several brands are advertised on a single program— produces 38.8 and 36.8 extra customers respectively. Study was based on 5067 completed interviews, includ- ing 3648 TV homes, made during last December and Janu- ary in 16 counties of the 51% TV-saturated New York market. It is chockfiil of facts reiterating what first study showed last year (Vol. 6:18) — that TV sells merchandise. Some new details about TV audience extracted from study, which NBC plans to take on road soon: (1) Adult TV set owners spend 135 minutes a day on TV — more time than they spend on radio-newspapers- magazines combined. Set owners spend 61 minutes on radio, 47 minutes on newspapers, 11 minutes on magazines. Non-TV owners spend 16 minutes a day on magazines; therefore, TV cuts magazine reading down by 31.3%. Average of all New York family heads — TV owners and non-owners — spends 90 minutes a day listening to radio, 73 minutes watching TV, 45 minutes reading newspapers, 13 minutes reading magazines. (2) TV families are larger and have a higher income than non-TV families. Thei’e are 62 more people per 100 families in TV homes. Annual income of TV families is $664 more than non-TV owners. That adds up to $1.5 bil- lion more income in New Yoi-k’s 2,350,000 TV-owning fam- ilies (as of May 1). NBC points out that 73.2% of all new cars sold in New York last 6 months were bought by TV families. (3) TV advertisers on air less than 13 weeks got 9.9 extra customers per month for each dollar invested; those on air more than 15 months got 20 extra customers. (4) Daytime TV delivers 18.7 extra customers per dol- lar invested, while night time delivers 18.6 extra customers. =;: # ♦ TV saturation of at least 51% will have been reached in 25 top markets by October 1951 when total set popula- tion will be 14,000,000, NBC estimates in its new Hofstra College study. These are the cities, listed in descending order of set saturation : New York, Buffalo, Dayton, Minne- apolis-St. Paul, Albany-Schenectady-Troy, Boston, Chicago, Detroit, Philadelphia, St. Louis, Baltimore, Cincinnati, Eric, Richmond. Syracuse, Los Angele.s, Cleveland, Lan- caster, Salt Lake City, Washington, Binghamton, Colum- bus, Milwaukee, San Diego, Wilmington. 9 PcfSOnsl NoIBS! Harry S. Ackerman reelected v.p. in charge of CBS Hollyood network programs (TV & AM), resuming post he relinquished year ago to become pro- duction chief and, under his contract, still be able to col- lect royalties on show packages he created; Howard S. Meighan, heading HollyAvood operations, returns to New York shortly . . . Fred Kilian resigns as ABC central div. program director as of July 1 to join Young & Rubicam, Chicago . . . Murray Grabhorn, ex-ABC sales mgr., has re- considered taking managership of WPTR, Albany (Vol. 7 :23) , instead will be managing director. National Assn, of Radio & TV Station Representatives, headquartering at 101 Park Ave., New York; he succeeds T. P. Flanagan, re- signed because of ill health . . . Don L. Kearney appointed to newly created post of TV program mgr., Katz Agency, major rep firm, devoting time to selling TV film programs and station-produced programs on national spot basis . . . Walter B. Emery, ex-chief of renewals & revocation branch, FCC Law Dept., has been appointed legal asst, to Comr. Paul Walker . . . John S. Hayes, gen. mgr., named president of WTOP Inc., Washington, operating WTOP & WTOP-TV (.55% owned by Washington Post, 45% by CBS); George Hartford named sales v.p., Clyde M. Hunt engineering v.p. . . . George Castleman, ex-v.p., Berming- ham, Castleman & Pierce, joins CBS Radio Sales . . . Charles F. Gannon, Benton & Bowles v.p., resigns to form Armstrong, Gannon & Associates, 280 Madison Ave., N. Y., with Spencer Armstrong, director of Opinion Lead- ers of America . . . David Kees, technical director, pro- moted to production mgr., KPIX, San Francisco, succeed- ing Forrester Mashbir, re.signed . . . Dick Oberlin, news director, WHAS & WHAS-TV, Louisville, on 3 months leave to act as consultant on UNESCO education project . . . Victor Forkner resigns as adv. mgr., WPIX, New York . . . Laura Eggleston promoted to TV-radio time- buyer, Henri, Hurst & McDonald, succeeding Mary Polo- son . . . Clarke A. Snyder, recently with Bulova and Biow, named field representative of CBS-TV sales seiwice dept., handling station contacts . . . Jacob A. Evans, adv. -promo- tion mgr. of NBC spot sales, appointed mgr. of radio adv. and promotion for the network, succeeding George W. Wallace, resigned to join Reader’s Digest International. Comdr. Mortimer Loewi, retiring as director of Du- Mont Network this week, announced appointment of gen. mgr. Chris Whitting to that top network post while he re- sumes position of executive asst, to Dr. Allen B. DuMont. Mr. Whitting said staff shifts are now being Avorked out, will be announced next week. TV was third biggest money-maker for TV-radio ap- liance dealers in 1950, according to NARDA’s fifth annual “Cost of Doing Business” survey. Refrigei-ators were first, accounting for 28.3% of total dollar sales volume, washing machines were second, and TV accounted for 13.7% of sales, up 2.4% from 11.3% in 1949. In 1948, TV repre- i sented 4.4%. Order of first 3 items Avas unchanged from # 1949 to 1950. Significant is fact that 13% of all respon- P dents’ TV sales AA-ere made on trade-in basis. Some 92 (c of the responding dealers reported net dollar operating f profit in 1950, as compared Avith 87%3 in 1949. Packard-Bell preliminary report shows $992,000 earn- t ings for fiscal Oct. 1, 1950, to May 31, 1951, compared with J $775,000 for corresponding period year before. Sales for Ij'i the 8 months totaled $16,000,000 as against $8,000,000. f Before taxes, earnings AA-ere $2,672,000 vs. $1,191,000. I Total of $143,735 in profit-sharing checks was distributed |l June 14 b3'^ Packard-Bell at Silver Anniversary ceremonies II at Los Angeles plant. All hourly and salaried employes li who were employed previous to March 31, 1051, were eligi- i! ble. High man got $654. Financial & Trade Holes: CBS-Hytron merger, Avhereby former pays 31 shares of its stock for each 100 of Hytron, was approved June 13 by stockholders of both companies on terms previously reported (Vol. 7:20) — and CBS added as vice presidents Lloyd H. Coffin, Hytron chairman; Bruce A. Coffin, Hytron president; David H. Cogan, Air King president. They Avill be elected to CBS board at July meeting, along with Frederick L. Chapman, H3d;ron director. CBS board filled vacancy caused by recent resignation of Isaac D. Levy (Vol. 7:22) by elect- ing James B. Conkling, president of Columbia Records Inc. Name of Air King Products Inc., Hytron subsidiary, has been changed to CBS-Columbia Inc., David H. Cogan continuing as president, and its receivers marketed under label “CBS-Columbia”. Hytron Radio & Electronics Co., major tube manufactux-er, continues under chairmanship of Lloyd Coffin, w-ith Bruce Coffin as president. It’s name may be changed, depending upon clearance with Secretary of State of New Yoi'k, or it may simply be called Hytron Division of CBS. Top compensations paid in 1950 as salaries plus bonuses and/or profit-sharing to executives-directors of TV-radio and related electi’onics fields, as reported by SEC, included following over $50,000: Admiral — Ross D. Siragusa, $127,703; John B. Huarisa, $151,742; Wallace C. Johnson, $60,576. Avco — Victor Emanuel, $177,000; James D. Shouse, $131,000. DuMont — Di’. Allen B. DuMont, $364,- 239. CBS — William S. Paley, $100,000; Frank Stanton, $151,597; Edwai-d R. Murrow, $135,086. RCA — Daxad Sarnoff, $200,000; Frank M. Folsom, $154,000; Charles B. Jolliffe, $101,000; Niles Ti-ammell, $100,000; Walter A. Buck, $82,500. Philco— William Balderston, $193,750; James H. Carmine, $155,000; James J. Buckley, $96,875; Larry Hardy, $108,750; Leslie Woods, $106,500; Thomas Kennally, $106,250; John Otter, $97,000; Harold W. But- ler, $82,250; Joseph H. Gillies, $92,350; Robert F. Hei’i-, $64,833; Courtnay Pitt, $61,250; David B. Smith, $54,000. Sylvania — Don G. Mitchell, $104,679; Max Balcom, $70,103; H. Wai-d Zimmer, $64,239. Motorola — Paul Galvin, $75,- 881; Robert W. Galvin, $50,881; Elmer H. Wavering, $52,- 081; Frank J. O’Bi-ien, $50,881; Walter H. Stellner, $50,881; Daniel E. Noble, $50,881; Geoi-ge R. Macdonald, $50,881. Zenith — E. F. McDonald Jr., $148,190; Hugh Robertson, $151,523; H. C. Bonfig, $83,492. Davega Stores Corp., which this month opened 27th store, reports net eai’nings of $718,340, equal to $2.48 per shai-e after preferred dividends, on sales of $28,842,269 during fiscal year ended Max’ch 31. Provision for Federal taxes amounted to $637,000. This compares Avith net pi-ofit of $649,074 ($2.44) on sales of $24,359,215 for pre- ceding fiscal year, when taxes Avei-e $403,541. Dividends: Raytheon pfd., 60(* paj’^able July 1 to holders of record June 15; Reeves Ely, 10^ payable June 25 to holders June 15, 15d on pfd. payable July 2 to holdei’s June 15; Packard-Bell, 50^ payable July 25 to holders July 10; Da\'ega, 25(1 on common, 25d on pfd., pay- able June 25 to holders July 5; 3Iotorola, 50i^ paj-able Aug. 1 to stock of record July 16. IT&T reports consolidated net income of $4,136,256 on gross of $21,095,199 for quai'ter ended March 31 vs. $2,064,045 on $16,777,976 for same 1950 quai'ter. Monarch Radio & Television Corp., Brooklyn, special- izing in coin-operated TVs and i-adios, has declai-ed divi- dend of otU‘ cent per share, payable Api-il 30. Erie Resistor Co.’s offering of 84,000 connuon shares (Vol. 7:21) is being made at $12 a share through Fulton, Reid & Co. 10 - Topics & Trends of TV Trade: TV-radio industry feels it’s lost another round in efforts to get Regulation W relaxed, now that Federal Reserve Board chairman William McChesney Martin has publicly told Senate Banking Com- mittee there isn’t going to be any modification. But some industry observers feel that FRB hasn’t closed door com- pletely, and that perhaps in month there may be chance to try again. Despite pressures from Congress and industry to get 90-day moratorium on credit restrictions, FRB after 2 meetings this week decided to let things stand. Not the least of reasons for its adamant stand, in belief of many, was fact President asked continued measures against infla- tion in TV-radio speech June 14 and Board couldn’t very well relax restrictions at same time. It must be borne in mind that FRB looks at economy as whole and feels, according to informed sources, that Regulation W has halted upward spiral of installment credit, that any relaxation might “open up the floodgates” to inflation. As to TV slump, FRB’s attitude is: “You can’t say Regulation W is the sole or even primary cause of your distress. There’s usual summer slump, color, saturation. Therefore, we can’t do anything for you.” It’s much same attitude as was originally taken in turning down RTMA petition (Vol. 7:19). Any revisions of Regulation W on basis of hardship would have to apply to complete segments of the national economy, not to any specific industry which might be suf- fering, according to FRB experts. As for putting TV under household furniture category, which requires down payment of 15% compared to 25% for TV, FRB officials claim that TV, like any other durable, is a “deferrable” item — meaning that the consumer doesn’t have to have it immediately but can wait and save up down payment. Furniture, they say, is a “non-deferrable” item — meaning consumer must have it at once. Only alternative seems to be Congressional action — but Senator Capehart (R-Ind.), a former radio manufacturer who has been active in seeking revision of Regulation W, thought it would take 30 days for Congress to do anything, and “by then the whole picture probably would be changed.” * * * * Not much excitement about TV-radio exhibits at June 18-28 Chicago Furniture Show, though usual exhibitors will be on hand both in Furniture Mart and Merchandise Mart. Advance reports indicate current lines will be shown mainly, with few if any new models on tap. Air King (now CBS) has been advertising to trade that it will show its “Colorvision” sets (Vol. 7:23) in Trading Post Room, Merchandise Mart Bldg., July 18, 19 & 20, at 10 & 11 a.m., 12 noon, 1:30, 2:30, 3:30 & 4:30 p.m. But its ads play up standard black-and-white line. Philco has already shown its new low-end models (Vol. 7:22), doesn’t call them “new line” since more are to come later. Zenith is reported readying new line for August. Sparton, Pathe and Jackson have several new models to show in Chicago, and Stromberg-Carlson will have some too at its own Chicago branch office. Arvin holds distrib- utor meetings July 29-Aug. 1 in Moraine Hotel, Highland Park, 111., where new sets will be shown. ♦ * sK Jjc DeForest Pioneers, club formed by alumni of various DeForest radio companies, met at Yale Club June 14— in- cluding Dr. Allen B. DuMont, DuMont Laboratories; Ad- miral Ellery W. Stone, American Cable & Radio Corp.; Frank Andrea, Andrea Radio; Wm. J. Barkley, Collins Radio; Louis Pacent, Pacent Engineering. Dr. DeForest, 78, now living in Los Angeles, was unable to be present. Trade Miscellany: Nearly 2000 Crosley TV sets were j| destroyed in fire that razed warehouse in Carrollton, Ky., this week; loss is estimated at $350,000 in merchandise, ! $125,000 building . . . Aladdin Industries Inc., makers of radios, moving out of Chicago plant, going to new quar- ters in Nashville . . . TV credited with increasing Sears Roebuck’s overall sales in Cuba by 20%, though offered only since last October, reports Retailing Daily . . . Uncon- firmed reports are that Simon Distributing Co., which gave up Washington-Baltimore Motorola distributorship re- cently, will soon handle Zenith lines . . . DuMont has 1 penchant for All-American grid stars — has Kyle Rote, ex- SMU star, working for distributor S. H. Lynch & Co., Dallas, pending return to N. Y. Giants squad in July; Sid ’ Luckman, former Columbia and Chicago Bears star, is Chicago DuMont distributor, and at network Les Arries is a onetime Northwestern All-American . . . Scott Radio and Hoffman first to announce that they will show new TVs and radios at Music Industry Trade Show in Chi- ; cago’s Palmer House, July 16-19. Merchandising Notes: Illustrating how auto sales are < suffering trade lapse, too, was offer of Chicago dealer to give away 20-in. table model TV listing at $199.95 (Jack- son) with every new car purchase; dealer says traffic in- creased 25% . . . Buyers of any brand TV, radio or ap- pliance at list were offered specified new appliances for only $1 more in June 15 sale at Washington’s Electrical Center . . . Arvin advertising 8% -in. table model at $129.95 for “summer outdoor living”; trade ad headline reads: i “When America Moves Outdoors Sell the TV They Can Take Along” and urges small set as “perfect for porch, i patio or terrace” . . . Emerson 17-in. table model included in interior decor of deluxe trailer exhibited by General Coach Works at Chicago Sportsmen’s Show. Plant Expansions: Sylvania plans new metallurgical lab at its research plant at Bayside, N. Y., costing $1,000,- 000-2,000,000, to be housed in 50,000-sq. ft. building sched- uled for mid-1952 completion . . . Lear Inc., California Div., i. making aircraft radio equipment, to start $400,000 factory and hangar in Los Angeles. ! _ ♦ * * ♦ f Halllcrafters’ opinion of mechanical color sets is being shown at Chicago Furniture Show, It’s demonstrating slave converter with 8%-in. tube, magnified to 10-in., alongside 20-in. standard set, latter as example of what ' ^ electronic system will look like with tri-color tube. Card , beside first set asks: “Will your customers be satisfied with this?” Card beside other asks: “Or is this worth waiting for?” Disc set is fed with slide picture from flying-spot ^ scanner; other has no picture. Harking back to lusher days of not so long ago. Bu- reau of Labor Statistics reports TV-radio factory workers totaled 183,400 in March, up from 181,500 in February, 180,500 in January. Average weekly wage was $57.49 in March, holding about same level as preceding months. ; Average hourly wage was $1.42, average hours worked 40.4. Figures are latest from Govt., but it’s estimated in trade that TV-radio factory payrolls are now down as ! - much as 65%. TV-radio firms exhibiting at American Furniture Mart June 18-28 are: Admiral, Arvin, Belmont, Bendix, Halli- |- crafters, Jackson, Motorola, RCA Victor, Sparton, West- v inghouse. At Merchandise Mart: Air King, Crosley, Capehart-Farnsworth GE, Magnavox, Murphy Radio Ltd., Rauland, Westinghouse. RTMA county-by-county TV shipment report (avail- able on request) shows April shipments to dealers down to 261,357 sets from 595,042 in March. First 17 weeks of 1951 shipments totaled 2,071,124. Monthly reports cover all counties to which as many as 25 sets have been sold. 11 Mobilizaiion Nol6S: What are your chances of getting a satisfactory adjustment right off the bat when you ap- peal to NPA for “hardship relief” under material limita- tion orders? An official of NPA’s last-word Appeals Board says it appears that approximately 90% of the complaints are “satisfactorily adjusted” at the NPA indus- try division level — at least satisfactorily enough so that appeals don’t go any further. He said manufacturers of electronic equipment probably have even a better batting average, as indicated by the small number of their appeals which have reached the board. Three-man Appeals Board, which set up shop April 1 under T. Munford Boyd, U of Virginia law professor, has more than 70 cases on its docket, of which about 30 have been heard. Among appeals pending hearing is one from Sylvania, asking permanent adjustment of its base period copper usage for TV-radio production. The appeal was turned down by Copper Div., then brought before Appeals Board by Sylvania. ♦ * ♦ * TV-radio and other consumer goods manufacturers will receive Controlled Materials Plan application forms from NPA by the end of this month. Although Govt, hasn’t made up its mind whether to include civilian hard goods in CMP during fourth quarter, it’s asking all manu- facturers to fill out form CMP-4B. Form must be returned by July 31. Probability is that all segments of American industry will come under the steel-copper-aluminum curbs in October. Manufacturers who are now under CMP — and this in- cludes all who made out third quarter CMP forms — will receive allocations of the 3 basic metals in time to place orders for September delivery. But they must stay within their CMP quotas for all 3 months of third quarter. First CMP allotments to electronics manufacturers will be sent out next week. It was learned that many parts manufacturers didn’t file CMP applications. Although TV-radio doesn’t come under CMP, all parts for TV-radio are CMP items, and their manufacturers must file applica- tions to get materials. Manufacturers of CMP items must get their allocations from Govt. ; they’re not allowed to buy metals on the “free” market. Record-keeping required of manufacturers operating under CMP is spelled out in new NPA booklet. Allotment Accounting for Consumers under CMP. It’s illustrated and details suggested methods of accounting for allotments of steel, copper and aluminum. It’s available from Na- tional Production Authority, Washington 25, D. C., and Commerce Dept, field offices. ^ ^ ^ One certificate of necessity for expansion of electronic production facilities was issued by DPA during week ended June 8, out of total of 109 certificates issued during the period for facilities to cost $207,110,690. Certificate went to National Electrical Machine Shops Inc., for $158,364 in expansion of facilities to produce electronic equipment and instruments at Silver Spring, Md. Certificate provides rapid tax amortization on 80% of this amount. Sylvania has $75,000,000 backlog of military orders, has put $39,000,000 into postwar plant expansion, accord- ing to June 18 Time Magazine report on president Don G. Mitchell. Article deals with Sylvania’s recent introduc- tion of “Electro-Luminescence,” new method of lighting which makes whole panels glow when electric current excites chemical sprayed on glass. Avco, which years ago sold holdings in Pan American World Airways and recently sold its 48.6% interest in ACF-Brill Motors (Vol. 7:20), this week sold its 257,690 shares of American Airlines (4% of total) as another step in transition from holding to operating company. Trade Personals: E. L. Hulse, former GE electronics dept, comptroller, heads new components div., comprising GE-owned Illinois Cabinet Co., Rockford, 111.; Precision Laboratories Inc., Irvington, N. J.; Wabash Cabinet Works, Wabash, Ind. G. L. Chamberlin, ex-electronics dept, audi- tor, is new comptroller . . . Robert E. Noth, ex-sales train- ing mgr., GE receiver div., appointed St. Louis district mgr. . . . Carl Dufify, ex-San Francisco service mgr. for Northern California, named Packard-Bell service div. mgr., his asst. Bob Clark promoted to his San Francisco post; Duffy succeeds Thomas L. Stevens, now Los Angeles dis- tributor . . . Jack Kramer has resigned as sales mgr. of Mattison . . . Emerson Dickman, Princeton baseball coach and former big league ball player, resigns that job to devote fulltime to sales position with Capehart-Farns- worth . . . Sarkes Tarzian, Indiana parts manufacturer and TV broadcaster (WTTV), was subject of laudatory June 14 column on foreign-bom scientists by Scripps-Howard columnist Robert C. Ruark . . . Peter H. Cousins promoted to RTMA director of information, succeeding John Koepf, resigned to join Treasury bond div. TV programming has fallen far short of its potentiali- ties, critic Jack Gould writes in June 10 New York Times Magazine. To “broaden TV’s base,” he suggests: (1) Broadcasters stop using TV as “second or third run house for products of stage and screen,” but begin to develop their own new material and art forms. (2) Programming structure be varied to “meet the convenience more of the viewer than of the broadcaster,” avoiding sameness which now marks most programs at any given time of day. (3) Commercial broadcasters should welcome educational in- terests into the TV field, for “whatever will expand the audience of the medium [and] reach those persons who are not viewers can only mean added strength and security for all broadcasters ...” In separate article in Sunday Times, Gould hails possibilities of home subscription TV as ideal means of catering to minority cultural tastes and supporting cultural institutions at same time. Mercurial elder statesman of radio invention Dr. Lee DeForest this week expressed great concern over his TV “grandchild.” Said he : “I’m sorry to say that this medium, for which I had such high hopes a few years ago, seems to me already to have become more an influence for bad than for good.” On May 17, he had written Neto York Times: “I am a proud parent today. In the past I have complained bitterly about some of the uses to which *my children,’ radio and TV, have been put. I am delighted to see the splendid way these media were employed in bring- ing to the public the living history of General MacArthur’s return and subsequent discussion . . .” Tallest tower in the world, built for Loran studies, was recently completed near Rome, N. Y., by Truscon Steel Co. It’s a 1212-ft. guyed structure, will be used by scientists of Griffiss Air Base. Tower took 772 tons of steel, 4 miles of guy cables, 1400 cubic yards of concrete. Only taller man-made structure is Empire State Bldg. St. Louis Star-Times ceased publication June 15, vic- tim of mounting labor and material costs. It was sold to St. Louis Post-Dispatch, but publisher Elzey Roberts is retaining its radio station KXOK (ABC) which is appli- cant for TV. More June 1 sets-in-use reported since NBC Research’s “census” of May 1 (Vol. 7:21): Baltimore 301,043, up 4043; Kansas City 121,832, up 2832; Johnstown 93,143, up 5843. Tide Magazine, advertising weekly, was sold this week to Magazines of Industry Inc., publisher of Modern In- dustry. Reginald Clough continues as editor. 12 - Telecasting Notes: New Orleans WDSU (5 kw on 1280 kc) swatches from ABC to NBC, probably in fall, while longtime NBC affiliate WSMB (5 kw on 1350) presumably goes ABC — result (1) of WDSU’s ownership of city’s first and only TV affiliate, and (2) fact that Gulf Theatres owns half of WDSU, with Maison Blanche dept, store, and United Paramount Theatres, about to merge with ABC (Vol. 7:21), owms Gulf Theatres . . . WDSU-TV principally owned by Lt. Edgar Stern Jr., now on duty at Pentagon, managed by ex-ABC & MBS v.p. Robert Swezey, will con- tinue to take service from all TV networks, however, until New Orleans gets more outlets; city is due to get coaxial link in summer of 1952 (Vol. 7:12) . . . Paramount Pic- tures hasn’t released any of its vault-bound films, but that doesn’t deter its own station KTLA, Los Angeles, from publicity splurge on fact it’s carrying 26 Lippert features of 1946-50 vintage (Vol. 7:17) and billing them as “the newest block of Ameidcan films ever released for TV” . . . Not many network TV' programs originate outside New York, Chicago or Los Angeles — but NBC-TV is picking up Ruth Lyons’ 50 Club from WLWT, Cincinnati, starting Oct. 1, Mon.-thru-Fri. 12-12:30 p.m., folksy-chatter type show with music and singing; also, from same station^ it’s now carrying Midwest Hayride, Sat. 9-10 . . . ABC-TV signs Frances Langford and Don Ameche for Mon.-thru- Fri. noon-1 p.m. show starting Sept. 10, to be sold in 15- minute segments at $2500 per segment; it w-ill originate in Times Hall, on West 43rd St., New York, being leased from New York Times . . . CBS-TV has leased 300xl52-ft. Keywest Studios, Hollywood, for building and storing scenery and props . . . Caroline Burke, NBC producer, re- ports she has backing and plans to file for new TV station in Portland, Ore., her home; 5 applications are already pending for that city (see TV Factbook No. 12) . . . CBS has signed Jack Donohue, film and dance director, to long- term contract; his recent chore was Frank Sinatra Show, and his first under new contract will be Faye Emerson’s new show . . . Milton Berle’s 22-hour “telethon” on 41 NBC-TV stations June 9-10 brought in $1,127,211 in pledges to Damon Runyon Cancer Fund . . . George A. Cameron Jr., oilman-owner of KOTV, Tulsa, and movie actor Russell Wade have organized Cameron-Wade Tele- vision Productions, with headquarters in Beverly Carlton Hotel, Hollywood, to make “films in color” for TV. U of Pennsylvania’s defiance of live football ban by National Collegiate Athletic Assn. (Vol. 7:23) may cost Penn 5 top opponents this fall. California, Dartmouth, Princeton, Columbia, Cornell notified Penn this week they won’t play at Philadelphia if TV cameras ai’e there. Nev- ertheless, ABC is seeking sponsor for Penn’s 8-game home schedule at $750,000 for package. Billboard reported June 16 that Southwestern Conference will join the bolt from NCAA, televise all sellout games, as it did last year. Most Southwestern Conference games in recent years have been sellouts, and 2 games to be played in Cotton Bowl are al- i-eady sold out — so plenty of live telecasts are practically assured in that area. With NCAA’s blessing, Pacific Coast Conference okayed live telecasting of next New Year’s Rose Bowl game, and signed contract with Sportsvision Inc., San Francisco firm headed by W. J. Parry, to film conference games for delayed transmission. Parry says Sportsvision will film and telecast some 93 games through- out nation this year. Both United Paramount and ABC stockholders meet- ings are set for July 27 to vote on proposed merger (Vol. 7:21), but application to FCC may be filed sooner by coun- sel in hopes that approval will be forthcoming before start of fall telecast season. Both companies have already filed prosijecluses with SEC. United Paramount is represented by Hogan & Hartson, ABC by Arnold, Fortas & Porter. SAITNG to telccasters of nearly $.3,000,000 in taxes is goal of all-industi y TV Broadcasters Tax Committee, which as new growth industry goes before Senate Finance Committee on or about June 25 to aslc for relief from ex- cess profits provi.sions of new revenue bill. Headed by Fort Industry’s George Storcr, committee is asking all TV stations for contributions equaling onetime one-hour rale. Appeal to Senate will be predicated on fact that base years 1946-49 for excess profits credit were years of heavy los.ses in TV ($851,000 loss in 1946, $2,015,000 in 1947, $8,556,000 in 1948, $13,520,000 in 1949), so that there ac- tually is no realistic base. They propose formula which would fix credit base on rate of profit on total assets (AM- TV combined) in 1946, considered as representative year in AM broadcasting, w'hich then showed profit of $14,869,000. The 1946 profit rate would be applied to total assets at end of 1949, which committee thinks w'ould give true credit base. To qualify under proposed formula, telecaster must show that 30 9^ of his gross revenue in December 1950 came from TV. As alternative proposal, Secy, of Treasury would be entrusted to determine telecasting industry’s 1946 rate of return as the tax base. Committeemen are: Dwight Martin, Crosley, vice chairman; Clair McCollough, WGAL-TV & WDEL-TV; Campbell Arnoux, WTAR-TV ; Frank M. Russell, NBC; Earl H. Gammons, CBS; Donald W. Thornburgh, WCAU- TV; John Poole, Fort Industry tax counsel. Committee counsel is Lovell H. Parker, ex-chief of staff. Joint Com- mittee on Internal Revenue Taxation. Blistering indictment of televised Congressional hear- ings as “new form of public inquisition” bordering on “mob justice” comes from Thurman Arnold, ex-asst. At- torney General and former Federal judge, in June Atlantic Monthly. Arnold says TV makes probe “more of a trial than an attempt to obtain information for legislative ac- tion,” and thereby (a) distorts govt, objectives by making the most dramatic issues appear to be most important ones; (b) nullifies basic judicial traditions that trial must not be publicity device and must protect the innocent even at cost of letting the guilty escape. Meanwhile, one of the stars of the Kefauver hearings, Rudolph Halley, former chief committee counsel, predicted that the TV audience which viewed the Kefauver hearings will sway this year’s elections, presumably in his favor. He’s Liberal Party candidate for president of New York City Council. Dismissal of charges of bias in handling of newscasts leveled by FCC against G. A. (Dick) Richards stations (KMPC, Los Angeles; WJR, Detroit; WGAR, Cleveland) was recommended June 14 by FCC Examiner Cunningham. Death of Richards (Vol. 7:22) renders questions of Mr. Richards’ eligibility as a broadcaster moot, Cunningham held. It’s believed FCC will affirm examiner’s recommen- dations, but on June 15 Broadcast Bui*eau chief Plummer, general counsel Cottone and counsel Ford petitioned FCC that Cunningham’s initial decision be remanded to him for “proper” decision in case on grounds he had no author- ity to dismiss. Not only has Petrillo made deal with Republic for re- lease of old films to TV (Vol. 7:23), but he also has signed Monogram Pictures and is negotiating vith independent producer David 0. Selznick. Petrillo revealed this in speech to AFM convention in New York last week. Re- public has informed telecasters its films will be available in blocks of 13, 26 or 52 weeks, including such featured^ players as Gene Autjy, Johnny Mack Brown, Bob Steele, Roy Rogers. More Community aiilennu inslallal ions (Vol. 7:2,7,11, 21), reportedly in operation or planned: Pikeville, Jenkins and Frankfort, Ky. jUBLISHED WEEKLY BY RADIO NEWS BUREAU, 1519 CONNECTICUT AVE. N.W., WASHINGTON 6, D.C. TELEPHONE MICHIGAN 2020 • VOL. 7, NO. 25 June 23, 1951 I In This Issue: TV Rates Up, AM Down, As of July 1, pagre 1. Everybody Hell-Bent to Thaw Freeze, page 2. Telecasters Plan Self-Censorship Code, page 3. Color Now Up to Public and Industry, page U. Dealers Move TVs, But Factories Don’t, page 9. Vacations Starting; Afterward, What? page 9. Trade Slump Delays Electrostatic Tube, page 10. Count of TV Sets-in-Use by Cities, page lU. ' TV RATES UP, AM DOWN, AS OF JULY 1; tv time charges surge to new highs with NBC-TV*s I increase in network rates for its entire lineup of 63 affiliates, effective July 1. I New one-time rate for purchase of hour on all these stations (Class A time, ! 6-11 p.m. Mon. thru Fri., 1-11 p.m. Sat. & Sun.) would thus be $45,425 as against $36,775 at present, up 24%. That's exclusive of talent costs, subject to discounts. : Local time rates generally are considerably under network. But in compiling l! data for our TV Factbook No. 13 (due July 15) we find that just about 50% of all TV ' stations are also boosting their rate cards as of July 1, or thereabouts. ' Mounting costs of telecasting time are illustrated by boosts for NBC's own ;| stations ; WNBT, New York, upped from $3100 an hour to $4000 ; WNBW, Washington, from I $750 to $950 ; WNBK, Cleveland, from $1050 to $1275 ; WNBQ, Chicago, from $1650 to j $2000 ; KNBH, Los Angeles, from $1650 to $2000. (These are network rates; NBC also raised KNBH local rate from $1000 to $1250, one-minute spots from $165 to $200.) ABC-TV's own stations v/ere similarly hiked week ago (Vol. 7:23): WJZ-TV, New York, $3100 to $4000 ; WENR-TV, Chicago, $1650 to $2000 ; WXYZ-TV, Detroit, $1100 I to $1350 ; KECA-TV, Los Angeles, $1650 to $2000 ; KGO-TV, San Francisco. $600 to $850. I CBS-TV may raise rates Sept. 1, but plans none across-the-board. Its last I rate card change was Jan. 1, when it posted $3250 network charge for WCBS-TV, New I York (Vol. 7:1), v/hich compares with WCBS rate of $1350, highest in radio. Its ' KTSL, Los Angeles, charges $900, and WTOP-TV, Washington (45% owned) charges $750. DuMont says it has no present plans to up rates ; network charge for WABD, New York, went to $2200 last Feb. 1; WTTG, Washington, $400 ; WDTV, Pittsburgh, $600. I NBC-TV sales v.p. Edward D. Madden said hike means cost-per-thousand homes is $3.46, compared with $3.85 in July 1950 — with "circulation" 7 times greater. Customary 6-months protection is given contract advertisers signing before July 1. ^ I How high can TV rates go? One rough guess, by Young & Rubicam's TV-radio I manager W. Rodney Erickson, is that by 1955 there will be 35,000,000 TV homes and : that a 52-week half-hour show on 125 stations by then will cost $3,000,000 a year for time and talent. He made guesstimate before AFA meeting in St. Louis June 13. TV rate increases come on eve of effective date of AM decreases by networks (Vol. 7:16-17) — and radio broadcasters , still smarting, have moved to attack. Some actually have raised rates, but not many; others are promoting hard to show radio is still better buy. This week, though it was first to order 10% AM rate cut. CBS ran full-page newspaper and trade paper ad jibing at TV. Headlined "Television's Big Brother," ad said [radio] "can still lick anybody on the block." Theme was that radio is still only medium combining all advertising essentials — "nation-wide coverage, thumping impact... and minimum cost." "The big advertisers know better than anybody that you don't send a boy to do a man's work," the text reads. "When there's a big job to be done, you'll want Copyright 1951 by Radio News Bureau i 2 radio..." CBS network radio cost of Si. 18 per thousand is compared with leading magazines' |2.72, newspapers' $4.03. National reps of stations rushed into fray with big ads, too. Katz Agency trade ad tells how spot TV can be bought on network stations at 19% less. Petry. in similar double-spread, charges network AM rate cuts were "indiscriminate," took no notice of increased listening, added radios — especially in non-TV areas. It also observed that "revalued" radio doesn't mean "devalued" radio. Other activity in radio rate picture; (1) Affiliates Committee held explora- tory meeting with ANA's Paul West and others, "found no areas of disagreement," according to chairman Paul Morency. (2) Sponsor Magazine June 18 reported Wm. Esty agency (Colgate) has written AM stations recently raising rates to ask "how come?" in light of network radio reductions. Marschalk & Pratt previously had questioned AM station rates, too (Vol. 7:18). And (3) Don Lee Network ordered 10% rate cuts for 1-10 p.m. dally from July 1. EVERYBODY HELL-BENT TO THAW FREEZE: Hunt for formula for quick end to TV freeze — at least one promising quicker action than present FCC procedures — is in full cry at every level of Commission and industry. Prospects for speedup appear brightest yet. That doesn't mean things could be wound up in couple of months — but "out of the trenches by Christmas" is now considered realistic goal ; that is, processing applications by then. New station construction is another matter. "Well into 1952" is still safest guess. Idea of calling off oral testimony for city-by-city hearing now scheduled to start July 9 (Vol. 7:24), relying instead on FCC to come up with final allocation on basis of written comments, is gaining impetus. Many variations on the theme are being considered, and FCC welcomes them. There's widespread feeling, almost one of desperation, that currently-scheduled hearing can't possibly be concluded in less than 6 months — and some think a year is even more likely. After that, several months more would be needed to end freeze. Willingness to forego hearing is by no means unanimous. DuMont . with its completely new national plan based on different fundamental premises from FCC's, may insist on hearing — and Commission may prefer it that way. Then some of the 31 stations which FCC proposes to shift to new channels may feel lack of hearing would short-change them. But both cases would be small potatoes compared with the size of hearing implicit in the 1000-plus comments & oppositions filed (Supplements No. 72 to 72-C). Formal petition to dispense with hearing — the kind of urging sought from industry by Commission — was filed this week by Westinghouse Radio Stations. It proposes that its direct testimony be submitted in writing, that only cross-examina- tion be conducted orally. Some think cross-examination should be dropped, too. * * ♦ ♦ Interwoven with search for "ways and means" is question of the FCC's legal authority to promulgate an allocation plan fixed in its rules. On June 28, Commis- sion will finally hear pros and cons in oral argiiment. But preponderant opinion is that FCC will prove virtually unshakeable in conviction of its authority, that it will decide it risks no greater delays from court appeals now than it will at any other stage of proceedings. Legality question shapes up as battle royal, with industry lined up on both sides of question. FCC Bar Assn. (Wm. Porter or Leonard Marks arguing) and several law firms oppose FCC. CBS (Richard Salant), Joint Committee on Educational TV (Telford Taylor), plus other law offices, side with Commission with equal vigor. FCC will have its own general counsel Benedict Cottone argue for it. This industry split lends weight to predictions FCC will sustain itself. Sen. Johnson, who really pushed FCC into granting oral argument now, before proceed- ings render it meaningless, congratulated Commission for "forthright" action. And FCC confirmed the obvious this week — announcing that partial freeze lifting can't be effected pending oral argument and settlement of legality question. - 3 - ! (Industry has been applauding Sen. Johnson for his cool attitude towards the reservation of channels for educational institutions. But, after reading comments , filed by Colorado educational groups, that they support reservations, he wrote Com- . mission that he knows very v;ell schools in his State can't afford such "frills". ( Then, he added, way to get education into TV may be through imposing conditions on . licenses of commercial stations "requiring them to devote appropriate time for edu- 1 cational purposes." Meanwhile, to clear up rag-tag of allocation issues, in preparation for the i "big push," Commission is attempting to dispose of 470-500 me question — that is, (Whether band should be given to TV or set aside for common carrier use. I TELECASTERS PLAN SELF-CENSORSHIP CODE: Telecasting industry gets off to good start . with the Washington authorities, so far as self-regulation of programs is concerned, iif attitudes manifest at all-industry conference on program standards mean anything. Instead of threatening with a big stick, FCC Chairman Coy and the powerful • Sen. Ed Johnson, chairman of Interstate & Foreign Commerce Committee ruling radio, I simply passed along friendly words of admonition and advice to the 105 telecasters representing 65 stations and all networks attending NARTB-sponsored parley June 22. Though Coy called meeting "logical forerunner" of FCC's announced program ( inquiry (Vol. 7:3-5,16), the soul-searching among telecasters themselves and concil- I iatory attitude of the lawmakers was so heartening that some ventured opinion such *a probe (which some fear has Blue Book implications) can be headed off — that is, ■ if industry does good job of uplift and self-censorship. Opinion was well-founded, for FCC plainly wants to be friends with industry ( and has hands plenty full with problems of ending freeze — under prodding now of tSen. Johnson himself. Even Coy remarked he seems to be "on a honeymoon" with the broadcasters again, now that he has been reappointed. ) 1 Group unanimously adopted resolution by WBAP-TV's Harold Hough calling for , "extensive and careful review of present program practices with a view to establish- ! ing standards of self-regulation designed to improve character of TV programming..." Thereupon NARTB president Harold Fellows was directed to appoint committee, , to make "an immediate and thorough investigation of all the aspects of promulgating standards for TV... in consultation with representatives of govt., public, civic and ^ other special groups" — and to draft a proposed code. V ^ ^ ^ Said Sen. Johnson; "I know you can do it yourselves." He warned against program excesses (though said he, as a fan and grandfather of children who love TV, found few to complain of). But he warned that criticisms aren't always the work of "bluenoses". He went on, after telling how school kids of his own Colorado (still without TV) are writing him to ask when it will come there: "I like television. It is the greatest science and art that ever came to the human race. It has restored the home again. "I'm a TV and radio fan, and I'm not ashamed to admit it. I get a lot out I of it, including the advertising. When cleverly done, that too is entertaining [loud applause] and I think most people feel the same way as I do." Said Coy: "I am delighted that you are exploring ways and means here today : to strengthen TV... by moving in on these problems yourselves." He predicted that [ positive action by telecasters to improve the programming level would bring about "an immediate upsurge of public confidence" — and said this could be done "without the benefit of govt, intervention." ^ ❖ Coy cited as "most prevalent" of some 1000 complaints FCC had received dur- ing 72-day period (covering both radio and TV) : objected to advertising alcoholic ; beverages , 255; indecency, obscenity or profanity, 221; false or misleading adver- tising, 128; lotteries & giveaway schemes, 107. He noted, though, that anti-liquor complaints were obviously part of organized prohibition and temperance campaigns. Coy suggested telecasters consider these "Blue Book" points in determining L 4 whether they hold licenses in public interest: (1) Assistance in civic improvements. (2) Promotion of educational and cultural opportunities. (3) Integrity of the news. (4) Promotion of community labor relations and inter-racial understanding. (5) The wholesomeness of entertainers and their sense of responsibility as "visitors" in the home. (6) Fairness in controversial issues. (7) Reliability, good taste, excesses in advertising. (8) Advertiser domination of program schedules. Self-criticism during discussions included warning from Paramount's Paul Raibourn, citing movie industry's experience, to "organize or be censored" — and he urged positive action, not mere list of "don'ts". NBC passed around newly-published booklet "Radio and Television Broadcast Standards" setting forth its limitations on commercials, restrictions on "indecent exposure , " "lewd dances," "sex references" — first such code-book yet published, available from network on request. There was some disappointment that more of the 107 stations weren't on hand, but prominently present were ABC and CBS representatives, auguring possible return of those networks to NARTB membership. COLOR NOW UP TO PUBLIC AND INDUSTRY: a 5-city network, top-flight talent, one hour of programming daily, a handful of friendly sponsors — and 20 receivers available for public showings of color TV. These are the simple facts as CBS begins commercial colorcasting June 25. Watching with keenest interest will be a skeptical industry, still largely opposed to the FCC-approved CBS system, still dubious about its public saleability, still bent on perfecting and proving a superior all-electronic system. FCC Chairman Coy will participate in debut — but he has also consented to take a look at RCA's tri-color tube next week, personally accompanied by president Frank Folsom, with presumably a full-blown demonstration. Significant also was industry's all-out mobilization this week to whip into shape its promised compatible system. Prospects looked so good that, at week's end, even that wary scientist-industrialist Dr. Allen DuMont was impelled to declare, after his lab workers had hooked their own test color circuits to RCA tricolor tube: "For the first time, I have seen color pictures which I consider eminently satisfactory and practical for home receivers." For the first time, reporters found the usually cautious and skeptical Dr. DuMont really enthusiastic. * * * * Publicity is by far the most important device left to CBS. It's about only thing that could break the chicken-egg cycle, and possibly create demand for color sets that CBS hopes other manufacturers will find impossible to resist. No great promotional campaign had been started up to our press time, but everyone is expecting big ad splurge (in the 5 cities) to herald June 25 "premiere". CBS is now apparently playing its promotion by ear — an unusual practice for that company, known for its well-planned, long-range campaigns. CBS's relative quietness on color lately has some people thinking that true zeal is somewhat lacking within the organization — clearly manifest among many of its employes and among its own station affiliates. Moreover, CBS is now deep into TV manufacturing field (Vol. 7:15,20,24) — with the same stake in its selling economics as all other manufacturers. All 5 stations will carry Monday's 4:50-5:50 premiere. After that, here's the setup, as revealed by the stations: New York: WCBS-TV will undoubtedly transmit all scheduled colorcasts — 10:30-11 a.m. & 4:30-5 p.m. daily, plus some Saturday sports events, including major football games if NCAA permits (Vol. 7:24). CBS will have 10 sets for press and public, but had not disclosed their locations. Baltimore : WMAR-TV will carry morning shows only, plus occasional Saturday events. Two 7-in. sets, magnified to 10-in. , borrowed from CBS, will be used for public showings in lobbies of old and new Baltimore Sun buildings (Vol. 7:24). 5 Boston : WNAC~TV can handle only morning shows, has also borrowed 2 sets from CBS, will display them at Jordan Marsh dept, store until CBS takes them back, according to manager Linus Travers. Hub Distributors has an Air King, plans show- ings in Hotel Somerset for its dealers Monday and several days thereafter. Philadelphia ; WCAU-TV plans to carry only Saturday programs, nothing on weekdays for the present. It also has 2 sets on loan from CBS, will show them in its own auditorium. Washington ; WTOP-IV will accept morning programs only, including 10-10:30 test pattern. Three sets are on hand for the premiere, fabricated by stations' own technicians — one at Carlton Hotel for FCC, Congressmen, other VIPs; one at studio, one monitor at transmitter. Manager John Hayes reports dept, stores and TV dealers I begging for display receivers. I Air King (now CBS-Columbia Inc.) won't have quantity of sets ready until late September, and other companies planning sets or converters are moving in rather slowly. But CBS spokesman says many home-made sets will be tuned to colorcasts, estimating these at "around a thousand" in New York, "hundreds" elsewhere. There are also quite a few manufacturers with field-sequential test sets of their own. Besides celebrities scheduled for first program (Vol. 7:24), 16 sponsors have been lined up for it: General Mills, Lincoln-Mercury , Longines, Pabst, Wrigley, Revlon, Lipton, NBC (National Biscuit Co., that is), Toni, Monarch Foods, Procter & Gamble, Standard Brands, Quaker Oats, Best Foods, Pepsi-Cola, Chesterfield. Four sponsors have bought 15-week station breaks: Phoenix Aristomat (stove covers), O'Cedar (mops), Bulova (watches), Wembley (neckties). o> 4* * *T* ^ Manufacturers' faith in compatible system appeared stronger than ever this I week, as National TV System Committee (NTSC) geared itself for field tests, and RCA j supplied all its licensees with tri-color tube — key device to system's fruition. ; NTSC formed 9 color panels, laid out test program, during June 18 New York i meeting. [For panel chairmen and vice chairmen, see p. 7.] Now that most manufac- turers have receiving equipment to work with, they'll be able to use the compatible 1 signals transmitted by RCA and DuMont (with Hazeltine assistance) in New York area, j Philco in Philadelphia, probably Zenith, Hallicraf ters and Motorola in Chicago. Chicago is only one of the 3 not yet transmitting. Dr. DuMont's burst of enthusiasm was expressed in June 22 telegram to Coy, I after company had fired up RCA tri-color tube. He invited Coy to see it June 25. I Dr. DuMont admits it will take time to get tube into mass production, but he said ( "the Colvunbia system will take plenty of time, too." To DuMont's recommendation that commercial advent of CBS color be delayed. Coy answered: "We concluded our . hearings some time ago." ^ ^ ^ RCA's tri-color tube symposivim June 19-20, in New York's Waldorf-Astoria, was heavily and enthusiastically attended. Each set maker planning experimentation was given 16-in. tube and kit of about 15 parts to make receiver for it. They may buy more when available. Tube makers were also given tube components, with complete story on how to put them together, make their own tubes. Attendees agreed mass production of tube will be tough job, but RCA likened situation to that existing when industry geared for black-and-white production. RCA is concentrating on 5-gun tube at present. Reason is that system is now essentially simultaneous, and 3 guns give 3 times the brightness of single-gun. Tubes distributed are 16- in. , but 21-in. (round, metal-coned) was also shown. It has same 600,000-dot structure as previous tubes. DuMont claims it is working on tubes with many more dots, some even larger than 21-in., using similar techniques. Observers at symposium say RCA let down its hair completely, answered all questions frankly. Apparently, company described no radical changes in techniques previously revealed in bulletin distributed to licensees (Vol. 7:10). There was some criticism in press, though, because tube wasn't shown in - 6 - action. Shortly afterward, however, RCA announced public showings to start July 9 — receivers with tri-color tube picking up live subjects. First demonstrations will be in Radio City’s Exhibition Hall — from WNBT in morning before regular programming hours, via closed-circuit thereafter. Radio, TV and Broadway stars will be featured. Network transmissions to other cities will be added later, with "at least 100" color sets to be available for public viewing — some undoubtedly to be placed in Washington and made available to FCC members and staff. Remote pickup camera has been developed and successfully tested, according to RCA. FCC critics have said that absence of this device was one of biggest fac- tors contributing to RCA's defeat. RCA indicates no plans to petition FCC to reopen whole color issue at this time. It may well develop into an all-industry request, through aegis of NTSC, after period of field testing (Vol. 7:23-24). ^ t * * * Bendix and Crosley caused raised eyebrows this week when former showed CBS-type converter in Chicago and latter announced June 28 press showing of one in New York's Park Sheraton. But both said emphatically that their only purpose was to show "readiness to meet demand" if and when it arose. "Demand" remains keynote throughout industry. But, as one typical manufac- turer put it; "A certain type of buyer will buy anything. But the depth of that market won't support mass production." Another key producer pointed to price of Air King's sets (S400 & $500 for 10-in. magnified to 12)^-in. ) , recalled testimony of Air King president David Cogan in October 1949, to effect that 10-in. color set would sell for only $75-$80 more than the then current $199 table model 10-in. Same manufacturer said his cost engi- neers reported that 12)^-in. color set would cost company $600-$700 to make. CBS-Columbia Inc, is reported to be paying $60 for motors alone, and one components manufacturer is said to be offering 10-in. disc-motor assembly for $230, 7-in. for $150. Thus, no mass market is visible to the set makers — though it's fair to assume that most are prepared to meet any true demand when and if it comes. Matter of fact, one very big manufacturer said he wanted to make 500-1000 color sets just to prove their market sluggishness when compared with far cheaper big-screen black- and-white. But he said his staff talked him out of it. ^ That July 1 unveiling of Paramount's "Chromatic TV" set with Lawrence tri- color tube (Vol. 7:24) won't come off. Paramount v.p. Paul Raibourn says tube has to be "finished up, " and he admits picture quality "isn't quite up to steindards of the CBS picture." He says company won't conduct press or public showings until "people can look at it and say, 'That's it I'" Nevertheless, Raibourn says that the military like the tube, provide a market regardless of set production prospects. Webster-Chicago , which plans to sell color converters under its own name and offers chassis to manufacturers, is still in "sample" stage. According to v.p. C.P. Cushway; "We're getting the loose ends together. We're getting some inquiries from manufacturers, and they're talking about substantial quantities. But we don't know whether they mean it. We can't move fast until we see the demand. Then there's the materials situation. Manufacturers may not want to jeopardize the market for known products while diverting materials to something new." * Cost and efficacy of adapters, to get black-and-white from CBS colorcasts, is another controversial subject. Philco says its new sets are so designed that its own $20 adapter, now available, may be added at any time. Apparently, power-handling capacity of transformer and tubes was stepped up to do the job. Adaptation of existing sets appears to be something else. Many responsible engineers assert that a true adapter would amount to "half a slave unit, tube and all, minus the disc." Television Equipment Co., New York, has an adapter to retail 7 for $15.95, but president John Milliken agrees that it would have to be tailored to each model of each set. He complains that "we have inquiries from everyone, but there's no cash-on-the-barrelhead demand. Somebody's got to subsidize it." * ^ * Industry fought color hearing all over again — in miniature — during June 21 trade practice conference held by Federal Trade Commission (see p. 12). RTMA, as well as various dealer groups, wanted color and adapter claims tied down on such points as: (1) Size of color picture should be stated as size of tube, not magnified image. (2) Ads must indicate black-and-white pictures from colorcasts have less detail than standard picture. (3) Size of picture produced by converter must be stated. (4) Ads should indicate whether adaptation requires modification of set, new parts, serviceman, etc. Such restrictions are totally mfair, CBS counsel Richard Salant argued. For exam.ple, he said, current TV ads don't specify whether sets have complete band- pass, giving full resolution of transmitted picture. FTC moves slov/ly, won't act on recommendations until fall or later, by which time the color trend (if any) should be better resolved. FCC had own observer on hand, lawyer Arthur Scheiner, but he merely observed. INTENSITY of FCC’s interest in uhf is illustrated by fact Chairman Coy asked RTMA for opportunity to survey industry’s receiver-converter development to date. Upshot is June 29 trip to Bridgeport, where commission- ers and staff will see products of Hallicrafters, GE, Motor- ola, Stromberg-Carlson, DuMont, RCA, Zenith, Capehart- Farnsworth, Philco. Scheduled to attend are Comrs. Coy, Walker, Hyde, Webster, Sterling, possibly Jones, and staff members Cottone, Braum, Simpson, Chapin, Boese. Meanwhile, Westinghouse, Bendix and tuner-maker I Sarkes Tarzian showed off uhf units this week. West- inghouse demonstrated to its distributors in Bridgeport’s Hotel Barnum. It’s continuous-type, claimed to be com- petitive with any other in performance and price. Bendix converter, unveiled at Chicago Home Furnish- ing Show, featured tuner made by Kingston Co., Kokomo, ; Ind.; it’s also continuous. Company officials report excel- lent performance in field tests, including some in Bridge- port, say they plan to make design improvements. Tarzian demonstrated his “UTl” at Bloomington, Ind. plant. It’s useful with any set, regardless of type of tuner it contains. Tarzian claims that unit, which covers whole uhf band, rates particularly high in sensi- tivity. ■ National TV System Committee reorganized this week for color field tests (see story, pages 4-7), shapes up as follows: Dr. W. R. G. Baker (GE), chairman, D. G. Fink i (Electronics), D. B. Smith (Philco), E. W. Engstrom I (RCA), vice chairmen. Chairmen and vice chairmen, 1 respectively, of various panels: Dr. A. N. Goldsmith (con- ' sultant), D. E. Hyndman (Eastman Kodak), subjective ( aspects of color; D. G. Fink (Electronics), A. G. Jensen i (Bell Labs) , color system analysis; A. V. Loughren (Hazel- tine), W. T. Wintringham (Bell Labs), color video stand- : ards; D. E. Harnett (GE), M. R. Briggs (Westinghouse), ! color synchronization standards; Dr. D. E. Noble (Motor- ' ola), Rinaldo DeCola (Admiral), compatibility; Dr. T. T. Goldsmith (DuMont), G. E. Gustafson (Zenith), field test- I ing; Frank Marx (ABC), R. E. Shelby (ABC), networks; i D. B. Smith (Philco), I. J. Kaar (GE), coordination of I panels; Dr. R. M. Bowie (Sylvania), M. W. Baldwin (Bell Labs), definition of terms. Additional organizations rep- resented on NTSC: Bendix, Color Television Inc. (which reports brand new system), Crosley, Federal, Hallicraft- ers, Hogan Laboratories, NARTB, Tele-tone. Network TV-Radio Billings May 1951 and January-May 1951 (For April figures, see Television Digest, Vol. 7:21) NETWORK TV time billings for first 5 months of this year, $43,589,968, already far exceed 1950’s total $40,453,878 (about $45,000,000, if you include non-reporting DuMont) — auguring, v/ith higher rates upcoming, better than $100,000,000 network sales for all of 1951. May’s $9,398,488 was ahead of April’s $9,089,454 (Vol. 7:21) and 5-month total compares with $11,211,455 for same 1950 months, according to monthly Publishers Information Bu- reau report. Only ABC-TV failed to show gain in May over April, but all gained considerably over May 1950. Network radio in May went up to $16,518,337 from $15,921,908 in April (Vol. 7:21), totaling $80,572,128 for 5-month period, down slightly from same 1950 months. NBC and CBS showed AM gains over April, ABC and MBS slipping slightly; all but CBS showed gains over May 1950. The PIB figures: NETWORK TELEVISION May May Jan. -May Jan.-May 1951 1950 1951 1950 NBC $ 4,946,338 $ 1,583,185 $22,495,292 $ 5,926,465 CBS 3,066,249 1,003,658 14,168,546 3,764,022 ABC 1,385,901 367,989 6,926,130 1,520,968 Total - - 9,398,488 $ 2,954,832 $43,589,968 $11,211,455 NETWORK RADIO CBS $ 6,763,933 $ 6,319,197 $33,060,678 $30,224,024 NBC . 5,329,752 5,639,188 25,260,843 27,709,142 ABC 2,913,834 3,260,839 14,582,390 16,571,195 MBS 1,510,818 1,356,580 7,668,217 7,289,006 Total $16,518,337 $16,575,804 $80,572,128 $81,793,367 New type of survey, “covering an entire TV area and utilizing complete probability sampling,” prepared for Dallas’ WFAA-TV by Dr. Ira G. Corn of Southern Meth- odist U, claims “highest degree of accuracy known to marketing research.” Survey indicates 113,947 homes in Dallas-Ft. Worth 12-county area, or 20% of all residences, have TVs — and house 381,722 viewers, or 307c of total population. Survey found that average of 3.3 persons live in a TV home, while all residences average 3 persons, thus indicating TV homes have 127e more people than non-TV homes. According to study, there were 115,717 sets in Dallas-Ft. Worth area May 1 (NBC set “census”, Vol. 7:21, reported 117,000). Of these, 61.17c were found to be in 7-county Dallas area, 38.97c in 5-county Ft. Worth area. 8 - Network Acconnls: Norge Div., Borg-Warner Corp. (home appliances) is second sponsor to buy half-hour alt. weeks on new Kate Smith Show stai’ting Sept. 19 on NBC- TV, Wed. 8-9, thru J. Walter Thompson Co.; Congoleum- Nairn was first to sign . . . Lambert Pharmacal Co. (Lis- terine) starting Sammy Kaye’s So You Want To Lead a Band July 28 on CBS-TV, Sat. 7-7:30, thru Lambert & Feasley . . . Pearson Pharmacal Co. Inc. (Ennds deodor- ant pills), starting July 20, sponsors unnamed dramatic show on CBS-TV, Fri., 10:30-11, thru Harry B. Cohen Adv. . . . Bymart Inc. (Tintair), starting early in July will run Somerset Maugham Theatre weekly for 8 weeks during first half-hour vacated by Robert Montgomery Presents on NBC-TV Mon. 9:30-10:30; show will resume full hour alt. weeks when Montgomery returns in fall . . . Colgate-Palm- olive-Peet Co. has renewed Colgate Comedy Hour on NBC- TV Sun. 8-9 on regular weekly basis starting Sept. 2 formerly bought only 3 weeks each month . . GE re- placing Fred Waring Shotv with General Electric Guest House starring Oscar Levant for summer period starting July 1 on CBS-TV, Sun 9-10 . . . Lever Bros. (Lux) re- placing Lux Video Theatre July 2 with Pantomine Quiz on CBS-TV, Mon. 8-8:30; Lux Video Theatre returns Aug. 27 . . . Wine Corp. of America (Mogen David wine) has bought Wed. half-hour on NBC-TV, thru Weiss & Geller, no time or show yet announced. Station Accounts: Carrier Corp.’s Chicago distributor. Temperature Equipment Co., sponsoring 15-minute news- casts on WNBQ, Tue. 10:15 p.m., reports sales up “because TV viewers are thinking more than ever of home comfort”; last year, an estimated 210,000 such units were sold, com- pared with 89,320 in 1949, and industry looks to 1,000,000 by 1956 unless cut off by materials restrictions . . . Ideal Mfg. Co. (women’s dresses), whose factory and sales offices are located in little Hammonton, N. J., midway between Philadelphia and Atlantic City, returns July 17 to WPTZ, Philadelphia, with Pick Your Ideal, fashion quiz, which last spring produced such crowds that, on Sunday particularly. State police had to be called upon to handle traffic converg- ing on store . . . Sequences from film The Frogmen being used as trailer spots on all New York and nearby TV sta- tions for several days before June 29 premiere; 20th Cen- tury-Fox will watch results to gauge value of this type of TV advertising . . . Boyle-Midway Inc. (Autobrite Silicone car polish) on June 25 starts sponsoring Wrestling with Dennis James on WABD, New York, Mon. 9-11, thru W. Earl Bothwell Inc., N. Y. . . . Kellogg Co. (Corn Pops) on June 26 starts Wild Bill Hickok on WJZ-TV, New York, Tue. & Thu. 6:30-7, thru Leo Burnett Co., Chicago . . . Among other advertisers reported using or preparing to use TV: Karseal Corp. (auto wax), thru Mogge-Privette, Los Angeles (KTSL); Effanbee Dolls, subsidiary of Noma Electric Corp., thru Lawrence Boles Hicks Inc., N. Y.; Phillips Packing Co. (canned soups & vegetables), thru Clements Co., Philadelphia. TV helps increase magazine audience because TV owners stay at home more, spend more time on magazines. That’s deduction of Macfadden Publications’ researchers Everett R. Smith and Helen E. Johnson in June Advertis- ing Agency and Advertising & Selling. Article uses fol- lowing figures from recent Macfadden-sponsored survey by Stewart, Dougall & Associates: (1) More time spent at home than prior 6 months or year, said 56.3% of TV owners; this compares to half that number of non-TV owners who said they were spending more time at home. (2) Average number of magazines read in TV homes is 3, compared with 2.7 in non-TV homes. (3) Read magazines as much as they did 6 months or year before, said 66.7% of TV owners — with 11.4% saying they read more. PGFSOnsl NoIgs: Harold C. Lund, ex-Walker & Down- ing agency, named gen. mgr. of WDTV, Pittsburgh, suc- ceeding Don Stewart, now assigned to DuMont New York headquarters . . . Howard E. Stark, radio and newspaper brokerage, has separated from the Smith Davis offices at 9 E. 62nd St., New York; Mr. Stark’s new office is at 50 E. 58th St., telephone Eldorado 5-0405 . . . Robert M. Mc- Gredy named sales mgr. of WCAU-TV, Philadelphia, in split of sales staff; John S. DeRussy, ex-sales mgr. for both AM & TV, now heads AM sales . . . Frank E. Mullen has resigned as v.p. of Jerry Fairbanks Inc., recently ab- sorbed by Isaac D. Levy’s Official Flms Inc. (Vol. 7:22) . . . Louis A. Smith, ex-Chicago manager of V/OR & WOR-TV, named Chicago sales mgr. of Petry TV div.; Theodore H. Walworth Jr., ex-ABC, joins Petry New York TV staff. . . Scott Donahue Jr., ex-WPIX, appointed asst. TV sales mgr., Katz Agency, succeeding Don L. Kearney, now TV program mgr. . . . Pel Schmidt, prominent in Baltimore radio and music circles for decade, joins WAAM as local sales mgr. . . . Noran (Nick) Kersta, ex-NBC-TV mgr., recently with Wm. Weintraub agency, will be sales v.p. of Roosevelt Enterprises Inc., packaging firm formed by Elliott and John Roosevelt and starting with 6 TV shows; also in firm are Dee Tucker and Henry Morgenthau III, who now produce Mrs. Roosevelt’s NBC-TV show . . . Philippe de Lacy named asst, program director. Bob Seal production coordinator, Jamee Jamet acting traffic mgr., KTTV, Los Angeles . . . Harrison Dunham, ex-KTTV gen. mgr., named TV director of Commodore Productions, Hollywood package firm . . . Edmund J. Linehan, ex-KSO, Des Moines, appointed chief of Radio-TV Section, U. S. Savings Bond Div., succeeding Nathan P. Colwell, re- signed; adv. director Elihu E. Harris also announced ap- pointments of John Koepf, ex-RTMA, and Harry Gatton, ex-WSIC, Statesville, N. C. . . . Robert C. Duffield, mgr. of WO WO, Ft. Wayne, new mgr. of KDKA, Pittsburgh, suc- ceeding Joe Baudino, named to head Westinghouse sta- tions’ headquarters office in Washington; Frank Tooke, from KYW, Philadelphia, goes to WO WO . . . Charles H. Crutchfield, v.p. & gen. mgr., WBT & WBTV, Charlotte, goes to Greece in July on special radio mission for State Dept. . . . John F. Royal, NBC v.p., retiring in August under company’s age retirement plan . . . Holcombe Parkes, ex-NAM public relations man, joins Benton & Bowles as public relations v.p., succeeding Charles F. Gannon. CBS is considering various plans for corporate as well as functional reorganization, one being autonomous cor- porations for AM, TV, owned-&-operated stations, research & licensing (color), record-making (Columbia Records Inc.), TV-radio set manufacture (CBS-Columbia Inc.), tube manufacture (Hytron Radio & Electronics Co.) — prompted by recent merger with Hytron-Air King prop- erties (Vol. 7:20, 24). President Frank Stanton is re- ported destined to head all operations (like president Frank Folsom at RCA), with present TV-AM sales v.p. Jack Van Volkenburg expected to become “president” of TV network subsidiary, v.p. Adrian Murphy continuing to master mind color, ex-Hytron executives (now CBS v.p.’s) heading manufacturing subsidiaries. ABC is separating its TV and radio networks, also its owned-and-operated stations, as of July 2 — naming Alexander Stronach Jr. v.p. in charge of TV network, Ernest Lee Jahncke Jr. v.p. for radio network, James Con- nail y v.p. for radio stations and radio spot sales, Slocum Chapin v.p. for TV stations and TV spot sales. Coopera- tive sales dept, is also being separated, with Ludwig Simmel as mgr. for radio, George Smith mgr. for TV. Tom A. Brooks, Hearst Radio Inc. v.p. in charge of its stations, died suddenly June 19 at age of 46. His widow and 4 children survive. DEALERS MOVE TVs, BUT FACTORIES DON'T: "Lift" the TV trade usually feels this time of year, when new models customarily begin cropping out and autumn-winter selling campaigns are generally contemplated, is noticeably lacking right now — but the j optimistic see some good signs; (1) Dealers are slowly but surely depleting their inventories, though not replenishing stocks. They say, generally, that TV sales aren't too bad for this time of year, having picked up somewhat in last few weeks. "The aggressive dealers , are doing all right," to quote words of one of biggest New York distributors. (2) Hope springs eternal that Regulation W will be relaxed (see Topics & ! Trends), which nearly everybody in the industry thinks will give business the fillip j needed to speed disposition of inventory. Once stocks are cleared, any imbalance between demand and supply is certain to be adjusted by reason of materials limita- : tions and shortages created by accelerated defense requirements (Vol. 7:24). (3) Factory vacation shutdowns (see story below) are welcomed this summer ( as never before as providing the needed "breather" for manufacturers whose factory 3 inventories of TVs have been piling up all too fast — reaching record 669,950 units : as of June 15 (see below). Curiously, nearly every manufacturer likes to propoiuid i the fiction that "it's the other fellow, not me, who's loaded up." 1 "We've trimmed our sales because of market conditions," said one big set ; maker — and that about tells story for all. "Our industry's trouble," he continued, 1 "was that we borrowed at least 1,500,000 of this year's sales from last year." Chicago furniture market is currently slower for TV-radio than for furniture generally, and latter is also at very low ebb. What the trade thinks about fall j prospects may possibly be made more evident at time of the Music Merchants Show in ’ Chicago, July 16-19. Only positive forecasts we've heard were noteworthy by their contrasting character: Sales chief of one big manufacturing firm tells everybody that he's quite ; sanguine about outlook, thinks second-half TV business will be "as good as always." But head of rival concern told us, "Things are rugged now, and I think it's going ' to be a slugging match all through the fourth quarter. " >}: :{: Factory inventory continues to climb, according to RTMA weekly report. It went to new high of 669,950 TV units as of June 15 from 620,299 June 8 and 593,633 June 1. The climb has been steady since March 2 report of 146,548 (Vol. 7:10). Production of TVs week ending June 15 was 75,933 (2472 private label), very few more than preceding week (Vol. 7:24). Radios totaled 323,016 (173,727 private label), also about same — with inventories rising to 399.086 from 377,625 one week before. Week's radios were; 148,091 auto sets, 134,038 home, 40,887 portable. VACATIONS STARTING; AFTERWARD, WHAT? vacation shutdown time for TV-radio plants is about here — and the manufacturers welcome it as giving them just that much more time for deflating swollen inventories. Nobody's sure what will come after the 2, 3 & 4-week shutdowns planned by big and little plants alike. When we queried them about vacation schedules and post- vacation prospects, they were cagey indeed — few venturing any predictions at all, some pessimistic, few really optimistic. Typical replies: "Post-vacation production outlook substantially less than fall of 1950, due to (a) steel limitation order, (b) probable reduced demand." "Post-vacation manufacturing schedule about double present low level of pro- duction. I think we have seen the worst of the current slump. " 9 10 - "We anticipate continuing the same schedules on which we were operating prior to the vacation period." "Outlook is only fair. It is, as might be expected, less than a year ago." "We will, of course, be controlled by govt, restrictions and availability of materials. With information available now, we contemplate a TV production of ap- proximately two-fifths the volume we had during our 1950 period, radio about 60%. " "Post-vacation production outlook should be very good as this crazy market is bound to dry up before the summer period is over." Most vacations are first 2 weeks in July, as usual — but there are some variations. Philco , for example, shuts down most TV and home radio production as of June 29, meshing this into July 16-50 vacation agreed upon with unions this week. "The cutback in civilian materials and the swing to govt, production, coupled with the seasonal industry trends in TV and radio, have made it desirable for Philco to balance stocks in proportion to sales during the summer weeks," company states. This "slowdown," like RCA's ordered last week (Vol. 7:24), does not apply to govt, radar, microwave and other electronic materials, nor to auto radios, which continue full-scale. Philco 's Sandusky TV plant closes July 16-30. Of remainder of Big Four, RCA regular plant vacation is July 2-16; Motorola and Admiral observe same period. Longest outright shutdown of commercial production announced is DuMont * s — entire month of July — but its tube manufacturing plant's vacation is first 2 weeks (same as most other tube makers). Others reporting "odd dates" are: Arvin, June 22- July 9 ; General Electric, June 28-July 16 ; Wells-Gardner . June 22-July 17 ; Sylvania. July 16-27; Bendix, July 23-Aug. 5; Andrea, July 27- Aug. 6. Remaining companies reporting all say first 2 July weeks, meaning actually the 10 workdays from July 2-13: Air King (now CBS-Columbia) , Capehart-Farnsworth . Crosley , Emerson, Fada, Hallicraf ters . Hoffman, ITI , Jackson. Kaye-Halbert . Magnavox, Meek, Olympic, Raytheon, Stromberg-Carlson, Westinghouse . Zenith. TRADE SLUMP DELAYS ELECTROSTATIC TUBE: Indicative of manufacturers' plans regard- ing new materials-saving circuits, is decision by most set makers to defer use of electrostatically-focused CR tube until first quarter 1952 or later. This tube is heart of until-recently much-talked-about "conservation" receiver. Average set today uses considerably less strategic materials than did its counterpart a year ago, but major conservation steps involving circuit redesign have been put off in most cases. Reason : Under today's trade conditions, manufacturers have enough materials, despite shortages and limitations. They aren't feeling pinch — yet. Reduced demand and curtailed output is accomplishing what the conservation circuits were designed to do. Second quarter 1951 TV output will run less than 1.000,000 sets as against 1,500,000 same 1950 period; third quarter, with vacations, may be even less. By and large, new designs haven't been necessary so far. Electrostatically-focused picture tube (Vol. 7:1) requires no focus magnet. saving cobalt, nickel, copper, in substantial quantities. Every tube manufacturer has a model ready. Practically every set maker plans new circuitry to accommodate this tube whenever materials situation conflicts with production plans. Most set makers apparently don't see that condition emerging until first quarter of 1952 at earliest. These among others have said they don't plan electro- static TV output before then: Admiral, Arvin, Crosley. Jackson, Radio Craftsmen. Raytheon, Sentinel, Sylvania, Tele-tone, Wells-Gardner. Westinghouse. We know of only 2 using electrostatic tube in current output. RCA has them in all 17-in. sets, plans to incorporate them in some other sizes in its new line next fall or winter. Maj estic says it began production this week of 2 new 20-in. sets using electrostatics made by Sanabria's American Television, Chicago. Philco, which demonstrated "performance-conservation" set last February (Vol. 7:8), still has no definite plans for production of new chassis that would in- 11 elude electrostatic tube, says it will be guided by materials and trade conditions. Emerson plans no action on electrostatic set for at least "couple of months." DuMont says it*s still exploring situation, but its tube division hopes to have new 17-in. self-focusing electrostatic tube (Vol. 7:20-21) — which requires no circuit redesign — in production in August. If this type tube lives up to DiiMont ' s claims and is generally accepted by industry, it will mean considerable saving in materials without necessity of new picture tube circuits. Rauland announced devel- opment last March of tube (Vol. 7:12) which appears somewhat similar to DuMont's, also requires no re-engineering of present receivers. Topics & Trends ol TV Trade: “Shootin’ chance” to get Regulation W relaxed — that’s sentiment of some indus- try observers following House Banking Committee’s action June 20 favoring reduced down payments on TV and other appliances from 25% to 15%, and approving lengthening of repayment period fx’om 15 to 18 months, as part of bill to extend Defense Production Act. Senate Banking Committee rejected same proposal by 7-6 vote June 19 and 8-5 June 21 — but closeness of vote encouraged hopes that provisions favoring TV can be in- serted in bill on Senate floor as amendment. Failing that, industry leaders intend to push hard to get Senate to ac- cept House version when bills go into conference — if credit relaxation provision can be kept in House bill. Both committees voted for relaxation of auto credit terms, gave President Truman far from what he asked in more stringent controls. Senate will begin debate June 25, House June 27. Present Defense Production Act nins out June 30 — so both houses are pressed for time. Of course, there’s likely to be many a slip in the in- volved process of coming up with a final bill. Proposal in House bill is just what TV-radio industi’y has been asking for some time — being twice turned down cold by Federal Reserve Board (Vol. 7:19-24). Except for 90-day mora- torium on credit controls, it’s precisely what Stromberg- Carlson president Tait urged before both Congressional committees two weeks ago (Vol. 7:22-23). Flood of telegrams to Senators and Congi'essmen can be expected from retailers all over country, as well as from manufacturers and wholesalers. They are convinced that relaxation of 25% down payment on TVs can have stimulating effect on present depressed business. 'A‘ ^ Auctioneer brought gavel down only 450 times, but 7000 TV sets were sold — and that means it wasn’t true auction. New York City commissioner of licenses McCaf- frey scr reasoned in reprimanding Tobias, Fischer & Co., auctioneers who ran recent Monarch Saphin sale that caused such a ruckus in trade circles (Vol. 7:20-21) and started wave of TV auctions. He also noted that dealer- cost-price references were based on December-January lists, that 23 of 147 models in catalog weren’t offered at auction, that Monarch Saphin refused to divulge cost fig- ures. Reprimand did not lead to revocation of auctioneer’s license, for “no complaint has been registered by a cus- tomer claiming to have suffered by the misrepresentation.” Nor does decision penalize Monarch Saphin (except for ad- verse publicity). Auction flurry, meanwhile, seems about over; last gasp heard was Baltimore auction this week by Desser Distributing Co. of Majestic, Starrett, Freed lines plus scattering of Emerson, Motorola, RCA, Philco units. Sales of retail TV-radio and appliance dealers in April were estimated at $216,000,000 in Census bureau’s April Trends in the Electrical Goods Trade, a drop of $43,000,000 or 17'^; !)elow March. Significant is fact that sales were $27,000,000 or 11'^/ below Apiil 1950, first time since July 1949 that TV-radio-appliance sales went below figure for same month of previous year. RCA Victor’s “Operation Trade” is working wonders in the sale of larger-screen models for liberally traded-in 10-in sets. Moreover, it’s stimulating purchases of recon- ditioned small-screen sets as secondary home receivers. That’s the testimony not only of RCA home instru- ment dept, sales mgr. A. B. Mills but of William W. Cone, sales v.p. of Krich-New Jersey Inc., which initiated plan that other RCA distributors, let alone some other brand handlers, are emulating with success. Plan simply guarantees dealers that distributors will buy any 10-in. accepted as trade-in on new RCA; that RCA Service Co. will recondition old set at nominal cost; that dealer can retain it for resale if he wishes (Vol. 7:19). In speech prepared for delivery at NARDA Chicago conven- tion June 25, Mr. Cone tells how initial mail test to 201 small-set owners produced 43 trade-ins, 28 more prospects, and how RCA Service Co. absorbs usual $4.95 dealer in- stallation charge for demonstration model if sale is made. Note: Best trade sources indicate 2,444,000 tubes of 10-in. size have been produced to date — ^plus 553,000 of 7-in., 3,392,000 of 12%-in., not to forget 13,000 of 3-in. and 27.000 of 5-in. Thus, taking into account mortalities and tubes still in trade pipelines, it’s estimated fully one-third of the nearly 13,000,000 sets-in-use are 12-in. and under. * * * * Sharp advance in personal saving has been by-product of current consumer buying slump, says U. S. Commerce Dept’s Survey of Current Business for June. Survey points out consumer expenditures were 8% lower in May 1951 than in May 1950, while personal incomes were 14% higher. Govt, military procurement, it notes, “is grad- ually taking an increasing share of national output,” but “the generally strong inventory position for the civilian products has prevented the development up to this time of general shortages of consumers’ products in this transi- tional period between tooling up and the attainment of vol- ume output of military end-items.” TV receiver, passenger car and refrigerator produc- tion were the 3 consumer industries hardest hit by produc- tion cutbacks in April and May, Survey reports, present- ing these interesting comparisons: Auto production dropped 10% from March to April, an unspecified further amount in May; refrigerator output dropped about 25% from March to April; TV production was cut more than 50% from March to May — “from a weekly average of around 175,000 units in March to 117,000 in April and 80.000 in May.” ❖ ❖ Sylvania’s “mystery” device for increased viewing comfort is said to be lighted panel around screen, presum- ably of new “electro-luminescent” material (Vol. 7:23). Sylvania has been playing up feature with “teaser” ads in major slick magazines and newspapers. One competitor, usually crustily skeptical of rivals’ claims, says he has seen device, calls it “wonderful.” Apparently, panel pro- vides optimum lighting conditions. If it’s all that is claimed it would be biggest innovation in tubes, from viewing standpoint, since “black” face. 12 - HOW to define TV receiver picture size — this issue pro- voked prolonged discussion at Federal Trade Com- mission’s TV industry trade practice conference June 21 in Washington (Vol. 7:22-23). Aside from controversy over color claims (see p. 7), picture-size question was most thoroughly explored item at manufacturer-whole- saler-ietailer-govt. meeting. ETMA recommended advertisements be required to indicate size of tube and of image. NARDA thought size of image was enough. Most of discussion centered on how to measux’e tube and picture — whether by diameter (or diagonal) or square inches. No decision was reached, won’t be until FTC comes out with proposed rules after second conference in mid-September. Public hearing will follow issuance of rules, then final trade practice code will be set up— first for industry since original radio rules were formulated in 1939. Other rules proposed at June 21 conference : (1) Sets with built-in antennas shouldn’t be advertised as requiring no external aerial in all cases. This proposal by RTMA drew strong support from among the 60-odd representatives of NARDA, National Association of Elec- trical Distributors, National TV Dealers Assn., and Assn, of Cathode Ray Tube Manufacturers — as well as many local retailers. (2) Action should be taken to stop distributors’ tie-in sales — ^whereby dealer must take whole line of TV-radios, and even appliances, in order to get products or models he wants. Trade rules should discourage “spiffs” — gratui- ties paid by manufacturer to dealer sales personnel to push one brand ahead of competitor. (3) Dealers should have guarantee that sets delivered to them will be in good shape. National TV Dealers Assn, claimed one-third of the 12,000,000 sets in use last February-March weren’t in good working condition when delivered to dealers. (4) Limitation on number of model changes per year, or establishment of regular policy so dealer knows ahead of time when new models will come out. (5) Rules should brand as unfair (a) exaggerated claims of receiver performance; (b) concealment of fact reconditioned tubes or parts aren’t new; (c) description of set as “RCA licensed,” implying it was made by RCA. Merchandising Notes: “Color talk and publicity hasn’t hurt much — but it hasn’t helped, either.” This epitomizes attitude of manufacturers-distributors-retailers alike; they don’t discount its impact, but they seem to think low- priced TVs will continue to sell nicely against high-priced (and small-screen) color sets, once credit restrictions are relaxed . . . Phil Keller, mgr. of George’s, Washington chain, sui-veyed customers to whom he sold 7-in. sets, found they all want larger pictures but don’t have enough money for down payment; he believes decrease to 15% would be “just about right” to make difference between sale and no-sale, for on a $300 set 25% is $75 while 15% is only $45 . . . Desperation selling this week included 20-in. tables offered in Chicago and Washington at $169.50 & $199.50, respectively . . . Chicago dealer offered $46.50 Mixmaster free with purchase of any TV set; sale ads also featured Admiral 14-in. combination console (list $369) for $199.95 . . . Meek is out with new 14-in. table at $139.95 . . . Zenith’s new Washington area distributor is definitely Simon Dis- tributing Co., as of July 1 (Vol. 7:24) — Simon having given up Motorola franchise . . . Houston Post’s KPRC-TV pushed local TV sales with 3-day TV Jamboree in civic auditorium that drew 30,000 persons. Philco’s Plant 9 in Philadelphia (refrigerators) from June 29 is being conveited to govt. -industrial pioduction of high priority marine, aircraft, ordnance equipment; its former schedules go to plant at Connersville, Ind. Financial & Trade Notes: Short interest in T^’-^adio and related stocks on New York Stock Exchange showed these changes between May 15 and June 15, NYSE reported this week: Admiral, 50,030 shares on May 15 to 42,445 on June 15; Avco, 21,464 to 19,680; CBS “A”, 5337 to 12,283; CBS “B”, 3312 to 7489; Emerson, 9965 to 7368; GE, 9056 to 11,215; Magnavox, 24,925 to 20,757; Motorola, 20,209 to 16,497; Philco, 16,779 to 18,444; RCA, 27,081 to 25,223; Zenith, 36,571 to 34,306. Magnavox is currently operating at about break-even level, due to reduced TV demand, so that quarter ending June 30, which ends fiscal year, won’t show much change from $3.40 a share reported for 9 months ended March 31 (Vol. 7:16), reports Wall Street Journal. Sales for current fiscal year will probably amount to about $45,000,- 000, compared to $31,700,000 in fiscal 1950 when earnings were $2.81 per share. Defense products currently run $500,000 to $600,000 a month, but aren’t contributing much to profits. By October, these should reach $2,000,000 a month, with total backlog of war orders now $20,000,000 and more being negotiated. Aerovox reports first quarter sales of $6,384,000 (vs. $5,003,000 same 1950 period), net earnings after taxes of $309,578 or 44(‘ on 700,000 common shares (comparative 1950 figures not available). In letter to stockholders, presi- dent W. Myron Owen predicted “new highs” in sales fourth quarter of this year because of rapidly increasing backlog of govt, orders and expected pickup in TV sales, but warned that second and third quarters will not be as good as first. Owen revealed Aerovox has increased its loan with Pruden- tial from $3,000,000 to $4,000,000 to finance larger inven- tories required in govt. work. Sale of 1900 shares of ABC common by v.p. Earl E. Anderson was reported this week to N. Y. Stock Exchange. He now holds 6600 shares. Sightmaster Corp. offering 600,000 shares of 5^ par common stock at 25(* per share through Tyson & Co. and E. L. Aaron & Co. Tv&ds PcrSOnsls: Earl smith, from Connecticut Cabi- net Co., Mystic, Conn., named acting chief of OPS elec- tronics & musical instruments section. Housewares & Accessories Branch, handling TV-radio; branch is headed by Lee McCanne, of Stromberg-Carlson . . . Leo G. Sands promoted from sales to Bendix Radio adv. & public rela- tions director, with F. Donald Fenhagen and William W. Price as assistants . . . John B. Langley, ex-Ford acces- sories sales mgr., named gen. mgr., Motorola-Detroit Co., succeeding v.p. E. A. Holsten who joins Chicago head- quarters July 1 as special merchandising mgr. . . . Roger B. Yepsen named marketing research mgr. for GE tube div., headquartered in Schenectady . . . Ted Lucas leaves Philco public relations dept, to join Jerrold . . . Walter J. Currie, ex-Crosley international representative, named deputy assistant NPA administrator for Office of Cmlian Requirements under former MBS chairman Lewis Allen W eiss . . . Louis Kahn, Aerovox research director, appointed to armed forces Research & Development Board as consul- tant on components and chairman of capacitor sub-panel . . . Crosley appoints 3 divisional sales managers in new 21-zone realignment of factory field organization: M. R. Rodger, asst. gen. sales mgr., named mgr. for central div.; E. W. Gaughan, .special activities, eastern div.; T. H. Mason, sales promotion mgr., western div. RCA Victor and U of Pennsylvania are jointly con- ducting 10-week electronic engineeiing course, June 25- Sept. 7, for 15 Army combat officers; they will work in Camden plant through summer, return to university in fall for masters degrees in electrical engineering. 13 Mobilization Notes: NPA controls on third-quarter use of copper and aluminum in consumer durable goods turned out to be much more flexible than expected. As antici- pated, Order M-47A, issued June 22, fixes permitted use of copper at 60%, aluminum at 50% of amount used by manufacturer during average quarter of first-half 1950 base period. But it permits him to switch his quotas of the 2 metals among long list of products. Steel, as previously announced (Vol. 7:22), is restricted to 70% of amount manufacturer used for each group of closely-related products during base period quarter. Here’s example of how M-47A will work: Manufac- turer can use in TV sets, during third quarter, 70% of amount of steel (including steel in parts) he used during average base period quarter to make TVs, TV-radio com- binations, TV-phonos and TV-radio-phonos. But he can’t, for example, borrow steel from his radio quota to make TVs. However, he can switch his copper or aluminum quotas as among the products he makes, including TVs, radios, phonographs, ranges, refrigerators, washing ma- chines, and even motor scooters, toy whistles and civilian airplanes. In short, he can shift practically his entire line of consumer durables. Many new items have been added to list for third quarter. Included are auto radio antennas, use of copper in which was banned in second quarter by order M-12. New order cancels copper Order M-12, supersedes much of aluminum Order M-7, discarding all lists of items in which use of the 2 metals had been banned outright. Queer topical quirk in new order is provision which appears practically to ban production of color and uhf adapters and converters. These fit definition of “acces- sories” in M-47A, and constitute “separate item” on list — meaning that manufacturer in third quarter may use only 70% as much steel to make them as he used for them during base period quarter. But how many color and uhf converters were made during first-half 1950 base period? This isn’t as significant as it appears, of course, since NPA has always made adjustments in unusual cases. In fact, an NPA official predicted that adapters and con- verters will probably be considered TV sets so far as steel quota is concerned, if anyone requests such dispensation. But no ruling is known to have been made yet on this subject. At least 75% of CMP applications received by NPA’s Electronics Div. have been improperly filled out. And a like number of letters of transmittal submitted with appli- cations are “absolutely useless.” Such was disappointed reaction at NPA as Electronics Div., at week’s end, had scrutinized some 700 applications from manufacturers of electronic Class B products (stand- ard, civilian-type). Division is still waiting for final word on slicing of materials pie before making bulk of alloca- tions of steel, copper and aluminum to individual manu- facturers. Electronics Div. officials emphasize that each applica- tion is processed as an individual case; in many cases staff members must supplement applications with phone calls to manufacturers — because of obvious errors or insufficient information on application forms, and because official Class B list is highly inadequate. Many products don’t appear on list; some listings are obscure. Revised list will be issued soon. Biggest complaint is that not enough information ac- companies applications. NPA people say letters of trans- mittal— one for each application — should explain applica- tion in detail. It’s especially important to explain any sharp variations in use of materials or in requirements shown on application. CMP applications for fourth quarter allotments will Theatre TV’s big hit, Louis-Savold fight June 15 (Vol. 7:23-24), netted International Boxing Club mere $10,000 on basis of 40«(-a-seat payment by 9 theatres with total seating capacity of 25,000. Following spectacular success of first theatre-TV “network” experiment, proph- ets of TV’s doom this week were predicting end of top- flight live sports events on free home TV; and some set owners were showing signs of getting restive about the whole thing, as evidenced by letters to newspapers. Also greatly in evidence this week was idea that some- how “TV industry” is cooking up vast conspiracy to funnel entertainment from free home sets to theatre screens. Even the usually careful and accurate Life Magazine fell into the trap. In angry editorial June 18, Life suggested: “FCC may wish to have another look at the industry” for surrendering “an important public service function” by making viewers pay to see programs. “The industry” is warned: “When TV begins to charge us for what we see, let its high chieftains be well advised that they will have to give us something better than the Louis-Savold fight, dreary night club comedians or the idiotic quiz shows that now make up so many telecasts.” Group of 10 New York businessmen — 9 of them attor- neys— set up “Fair TV Practices Committeee” June 20, said they’ll petition FCC to suspend license of any broad- caster caught participating in subscription or theatre TV. Home TV got last word in Louis-Savold episode. CBS- TV showed films of June 15 bout in place of regular Wednesday night fights June 20 (sponsored by Pabst), v/ith this unusual twist: Joe Louis himself, in studio, dis- cussed the fight between rounds, and participated in run- ning commentary on the fight itself. It wasn’t 15 feet high, but it was a good show. be due next month from manufacturers of consumer dur- ables as well as those who filed for third quarter. NPA officials emphasize that plenty of headaches can be avoided by reading instruction sheet which accompanies form CMP-4B. ❖ * * ❖ Practically all metals used in electronic equipment are in scarcest category on NPA’s new List of Basic Ma- terials and Alternates, issued this week. Among metals listed under “Group I-A — In very short supply” are cop- per, aluminum, selenium, tin, lead, zinc, cobalt, tungsten, nickel, molybdenum. Pamphlet notes that “certain alloy metals, such as nickel, cobalt and tungsten, are in very short supply. All non-ferrous metals are tightening rapidly.” On subject of plastics, it says: “The range of adaptability among plastics as substitutes for metals already has resulted in such a tightening of their supply that cellulose acetate is the only important plastic still generally available.” List is available at NPA in Wash- ington and all Commerce Dept, field offices. Westinghouse received DP A certificate of necessity for construction of $12,010,000 electronic tube plant at Pitts- burgh, 75% of cost of plant subject to 5-year tax write- off. Three other certificates for expansion of electronic production facilities were issued June 8-15: Polytechnic Research & Development Co., for facilities to produce elec- tronic testing apparatus at Brooklyn, N. Y., cost $108,842, at 85% amortization; Haydu Bros., Mt. Bethel, N. J., tubes, $76,694 at 80%; Sylvania, Salem, Mass., tubes, $35,791 at 85%. ^ ^ ^ International Standard Electric Corp. (IT&T) an- nounces TV transmitter contracts from Radio Belgrano y Primera Cadena Argentina de Broadcasting, Buenos Aires, and Radio Televisao Paulista, S. A., Sao Paulo, Brazil. They will be Argentine capital’s first, Brazilian metropo- lis’ second station. - 14 Count of TV Sets-in-Use by Cities As of June 1, 1951 Estimates are sets within .IMv/m contours (60 ml.), excluding overlaps, as established by NBC Research. NLY 269,400 units were added to TV sets-in-use dur- ing May, smallest number in years, reflecting cur- rent sales slump. Total thus was 12,769,300 sets-in-use as of June 1. Receding rate of additions to TV audience was also indicated in April, for which NBC Research re- ported figure of 328,400 (Vol. 7:21) and in March, 423,100 (Vol. 7:17). These are the June 1 estimates (consult indi- vidual stations for estimates of number of families within their respective ranges): No. No. No. No. Area Stations Sets Area Stations Sets Interconnected Cities Interconrected Cities- —(Cont'd) Ames (Des Philadelphia ... 3 858,000 Moines) 1 59,400 Pittsburgh 1 265,000 2 115,000 Providence ... 1 152,000 Baltimore 3 301,000 Richmond _ 1 82,000 Binghamton _ „ 1 40,100 Rochester _ 1 83,100 Birmingham - 2 54,900 Schenectady _ ... 1 158,000 Bloomington, St. Louis 1 293,000 Tnrt 1 16,500 Syracuse 2 122,000 2 741,000 Toledo . .. 1 93,000 1 205,000 Utica ... 1 43,500 Charlotte .. .. 1 79,900 Washington ... ._ 4 265,000 Chicago 4 930,000 Wilmington ... 1 69,000 Cincinnati 3 258,000 Cleveland — ^ Columbus 3 3 477.000 149.000 connected ... ... 81 10,821,000 Davenport- Non-Interconnected Cities Rock Island __ 2 57,600 Albuquerque 1 8,800 Dayton 2 130,000 [Dallas 2 121,000 .. 3 491,000 [Fort Worth 1 Elrie 1 48,000 1 80,100 Grand Rapids _ 1 79,000 Los Angeles ... 7 933,000 1 69,600 1 70,000 Huntington 1 44,000 New Orleans _. ._ 1 57,500 Indianapolis 1 138,000 Oklahoma City. _ 1 90,200 Jacksonville . 1 32,200 Phoenix ... 1 38,200 Johnstown . 1 93,100 Balt Lake City.. ... 2 46,600 Kalamazoo — 1 38,000 San Antonio _ ._ 2 46,100 Kansas City 1 122,000 San Diego _ 1 100,000 Lancaster 1 101,000 San Francisco ._ 3 197,000 Lansing ... 1 53,000 Seattle ... 1 85,000 Louisville 2 92,000 Tulsa 1 74,200 Memphis ..... 1 86,500 Milwaukee 1 243,000 Intftr- Minneapolis- connected - ... 26 1,948,300 St. Paul .. 2 265,000 Nashville 1 31,700 Total Inter- New Haven _ ..... 1 158,000 connected New York ... 7 2,390,000 and Non- Norfolk 1 69,100 Inter- Omaha .. . 2 78,800 connected _ _ 107 12,769,300 Objection to proposed sale of Channel 8 facilities of WSB-TV, Atlanta, while Cox newspaper interests (Atlanta Journal and Constitution) retain CP-holder WCON-TV’s Channel 2, was filed with FCC this week on behalf of Georgia Tech’s WGST, applicant for Channel 11. To prosecute case Gov. Talmadge appointed ex-FCC chairman Paul Porter (Arnold, Fortas & Porter) as deputy asst, attorney general. Pi’oposed purchaser is Broadcasting Inc., local business group (Vol. 7:18,22). WGST counsel claim sale precludes other stations in Atlanta, asks dismis- sal or placing in pending file until freeze is lifted. FCC this week also received application (total now 412) for Channel 6 from Ridder Newspapers’ WDSM, Duluth- Superior, and for Channel 12 from KFVS, Cape Girar- deau, Mo. [For details about foregoing applications, see TV Addenda 12-X herewith; for all applications pending, see TV Directory No. 12 and Addenda 12-A to 12-X.'] More than 6 years after it was cited in now-famous FCC Blue Book case for alleged overcommercialization, Hearst Radio’s WBAL, Baltimore (50 kw on 1090 kc) got its license renewed. Commission this week issued final decision, reiterating 3-2 findings last December that WBAL (and WBAL-TV) deserved to have license renewed, not- withstanding representations of newspaper columnists Drew Pearson and Robert S. Allen that they could “do it better” (Vol. 6:49). Comrs. Coy and Webster dissented. Telecasting Notes: More TV station sales may result Lj from current “shopping” by substantial interests want- ing in; prices, though, have soared to fantastic heights, stimulated by CBS deals for KTSL and WBKB, Bitner pur- chase of WLAV-TV, O’Neil purchase of KFI-TV — all well into 7 figures (Vol. 7:23). Asking price for one big-city station is reported $10,000,000, which owner jocularly says is his way of keeping would-be buyers away . . . KOTV, Tulsa, appoints Retry as national rep, quitting Adam Young; it’s first city in which Retry has separate TV & ■< AM representation, latter being KVOO . . . Washington ■ Star’s WMAL-TV leaves ABC Spot Sales as of July 1 to be represented by Katz . . . New York Times June 24 begins series of articles by Jack Gould on social and economic impact of TV, based on reports from its correspondents throughout country . . . Non-telecast Pittsburgh Pirates [ reported to have given permission to WDTV to carry se- i lected games rest of this season, sponsor and details to be I released shortly . . . ABC to convert storage warehouse j at 39-41 W. 66th St., New York, into TV-radio building, | with studios, offices, library, to supplement its plant at 7 i W. 66th St.; cost estimated at $610,000 ... U of Illinois, recipient of $245,350 grant from Kellogg Foundation for “educational broadcasting,” announces gift of TV trans- mitter by GE, plans to telecast (on educational Channel No. 12 reserved for Urbana) when and if it gets post- freeze grant from FCC . . . Monogram’s releases to TV (Vol. 7:24) will be 26 old features, 26 westerns, to be leased to Elliott Hyman, reports Variety; film producer later may have own TV distributing setup . . . TV Au- thority’s George Heller is described as “master of the four- letter word, with a tongue that lashes like a mule-skinner’s whip” in June 20 “New York Closeup” column in Herald Tribune . . . Screen Directors Guild survey shows 55 out of 253 regularly employed Holljwvood film directors are cur- j rently working on TV film production . . . Bing Crosby going on TV next year via film, reports Billboard. NPA is now processing applications for construction or alteration of TV-radio stations under order M-4 (Vol. 7:19-20, 22). Most or all of those now under consideration are from broadcasters who were caught in the squeeze — j had their materials and were ready to begin construction -j before construction controls were amended to include * broadcast stations. None of the applications has received final action yet, and NPA apparently isn’t ready to con- ' sider applications for new stations where grantees haven’t bought their building materials. NPA June 21 brought construction under Controlled Materials Plan (CMP Reg. ’ 6), but left builders the choice whether to apply for govt.- i allocated building materials or buy them on the free market. i Confirmation of Comr. Frieda Hennock as New York Federal district judge (Vol. 7:4) is delayed, pending ob- jections raised by New York Bar Assn, and request by American Bar Assn, that hearing be postponed. Senate ' Judiciary Committee reports no additional opposition has been heard, that it hasn’t set date for hearing, that it hasn’t even received formal notice from New York Bar Assn. Committee has unique procedure; during hearing, anyone can walk in and oppose nominees — without filing prior notice of intention to appear. Prospects of confirma- tion still remain good, though there’s some political oppo- sition, too, from within Democratic organization. Eight more illegal TV stations (Vol. 7:6,7, 23), all in West Virginia, have been reported to FCC. Such stations, symptomatic of tremendous pent-up demand for TV, were picking up and rebroadcasting WSAZ-TV, Huntington. Strangely and stupidly enough, some were using WSAZ- TV’s owTi frequency, Channel 5, creating intolerable inter- ference. Logan and Marmet are 2 of towns involved. June 30, 1951 {Status of TV-AM-FM as of June 30, page 1. ABC-TV Turns Profit Corner, page 0. Urgent Quest for Quick Freeze End, page 1. Financial and Mobilization Notes, page S. Hearst Buys Into Seattle Outlets, page 2. Good and Bad in the Trade Picture, page 9. Color TV — Short & Long-Range Outlook, j>age 3. DuMont Selling 30-in. Sets and Tubes, page 10. r STATUS OF TV AN-FN AS OF JUNE 30: At mid-year, TV stations in operation remain at ! exactly 107 — only one more than year ago when Nashyille's WSM-TV was still building for September debut. But new-station applications have climbed to 415 from 575 last ; Jan, land 351 the year before. It's clear that seekers after new stations will in- f crease by leaps and bounds, once end of now 54-month-old freeze is in sight. AM stations continue to multiply, but at decelerating rate. June 30 finds [ 2599 AM stations authorized (2251 licensed and on air, 148 CPs), up from 2351 (2199 ; licensed, 152 CPs) at end of 1950 (Vol. 7:1). End of 1949, there were 2246 AMs auth- ! orized ; end of 1948, 2151 ; end of 1947, 1961 ; end of 1946, 1579 ; end of 1945, 1056. Applications for new AMs pending totaled 256 as of June 50. only slightly I down from 259 last Jan. 1. During last 6 months, 9 AM licenses, 11 CPs were dropped. PM had 670 commercial grantees on June 50 (642 on air) ys. 706 grantees c (672 on air) last Jan. 1 and 791 on Jan. 1, 1949. In addition, 81 non-commercial FM licenses are outstanding. Dropped during last 6 months were 24 FM licenses. 24 CPs, I and only 11 new FM station applications are pending. [For lists of TV stations & applicants, see TV Factbook No. 12 with weekly ' TV Addenda to date. For details on AM-FM licenses, grants, applications, etc., see i our AM-FM Directory of Jan. 1, 1951 with weekly AM-FM Addenda to date.] Note : FCC reports that July 1 marks 10th anniversary of commercial TV. On I April 30, 1941 FCC authorized commercial telecasting to begin July 1. Of many ex- ' perimental licensees, only NBC ' s WNBT & CBS's WCBS-TV chose to go commercial, but by ! May 1942 Commission's log showed 10 commercial outlets — 6 of which continued to ; provide service during World War II. ^ URGENT QUEST FOR QUICK FREEZE END: Though FCC again delayed start of city-by-city allocations hearing — pushing date forward from July 9 to 25 — it did so this week with earnest hopes and intentions of speeding up end of freeze. But the calendar of new station possibilities still stands; None this year, first prospects no sooner than late 1952 — considering not only the legal but war-affected equipment and construction factors. Commission postponed hearing ostensibly to mull June 28 oral argument con- cerning its allocations authority (Vol. 7:18-20, 24-25). Equally important, prob- ably more so, is that FCC is giving industry more time to come up with request that it call off hearing — partially or totally — and decide allocation on basis of additional written comments. Prospects of such a request are currently very strong. Actually, Westing- house had already filed petition (Vol. 7:25). But Commission itself would be re- luctant to call off hearing, for fear of being labeled "arbitrary", without stronger industry support. Petition from group such as NARTB-TV might precipitate action. Latter is now polling its board. First responses favor move. Many lawyers also favor dispensing with hearing, feeling it would bring Copyright 1951 by Radio News Bureau 2 freeze end 6-12 months sooner, even though some feel FCC has no legal right to fix an allocation plan in the rules — which is purpose of hearing. DuMont is only outfit so far to speak up in opposition to contemplated pro- cedure, wiring Commission that it wants complete oral hearing. Many ideas for quickening freeze-end tempo are being bandied about, e.g. ; (1) Make it optional, granting hearing to anyone requesting it. (2) Require parties to "show cause" why they should be given oral hearing. (3) Accept written direct testimony, conduct oral cross-examination. (4) Grant hearing only for those proposals involving conflicts greater in number than specified minimum. If hearing is dropped, FCC may give everyone 20-25 days to file additional material supporting original proposals filed May 7 (Supplements No. 72 & 72-A) , then same amount of time to amplify oppositions submitted June 11 (Supplements No. 72-B & 72-C). People in Commission think the final allocation could be made in couple more months, and processing of applications could begin by year's end. ^ ^ ^ June 28 oral argument , on FCC's legal authority to fix allocation plan in rules and reserve educational channels, was unusual in that rarely have so many come away from an FCC hearing so fully convinced they could predict decision — namely, that the Commission won't change its mind. Every possible nuance of Communications Act was brought into play — its conception, birth, adolescence and manhood — but argiiments boiled down to this; Opposition contends that law guarantees person right to file an application for a channel and requires Commission to give him full hearing before granting or denying him a license. Commission and its supporters insist law gives FCC authority to determine whether a channel exists, and to ignore applications which specify channels not in- cluded in allocation plan. They insist that FCC procedures give applicants adequate opportunity to seek change in plan. Only Comr. Jones sided against FCC majority, v/hen he implied he considers forthcoming city-by-city hearing a "kangaroo" hearing, compared with regular "due process" hearing on applications. Some think FCC may not even render decision on subject. Others think Sen. Johnson's interest (Vol. 7:22-23) impels one. Though there's possibility an adverse decision may be appealed to courts and could hold up whole allocation plan, much doubt exists whether such appeal can be made before allocation plan is made final. Lined up with FCC majority were; Telford Taylor and Seymour Krleger (JCET), Richard Salant (CBS), Henry Fisher (New York Board of Regents), Abe Stein (WTTV, Bloomington), Maurice Barnes (Mich. State College), George Sutton (several clients), James McKenna (ABC), Vernon Wilkinson (several clients). Against FCC were ; William Porter (Bar Assn.), Theodore Pierson (several clients), Paul Spearman (clients), Robert Booth (WKMH, Dearborn), Thomas Wilson (clients). Supporting FCC on authority to fix allocation plan, but opposing its right to reserve channels, were Thad Brown (NARTB-TV) and E.D. Johnston (DuMont). HEARST BUYS INTO SEATTLE OUTLETS: Latest TV station deal, whereby Hearst Radio Inc. purchases 25% interest in Seattle's KING-TV and its AM-FM companions for $375.000, points up another noteworthy trend in telecast operations — newspaper ownership. Exactly 45 of today's 107 TV stations are now owned in whole or part by newspaper interests, following trend in radio — a trend less long delayed in TV than radio, manifest also in large number of newspaper applications for new TV stations. [Complete lists of newspaper, network, manufacturer, multiple ownerships of TV stations, plus list of applications showing newspaper-radio interests of the principals, will be included in our TV Factbook No. 13, due off presses July 15.] Mrs. Dorothy Stimson Bullitt, wealthy widow of noted Northwest lumberman, paid exactly S375.00Q for KRSC-TV and KRSC-FM just 2 years ago (Vol. 5:20), joined - 3 - them with her 50-kw AM station KING. Founder Palmer K. Leberman, publisher of Fam- ily Circle Magazine, said he had invested about that much, didn't want to continue taking losses then running $1000 monthly, preferred to retain his local AM only. TV property is "in very good condition" now, according to Mrs. Bullitt, who recently hired the able ABC-TV stations v.p. Otto P. Brandt as general manager. Sale deal was concluded June 28 between Mrs. Bullitt and New York Mirror publisher Charles G. McCabe, president of Hearst Radio, which also operates WBAL & WBAL-TV, Baltimore; WCAE, Pittsburgh; WISN, Milwaukee. It had been negotiated by Hearst Radio v.p. Tom Brooks, who died suddenly last week (Vol. 7;25). The KING stations will have working tieups with Hearst 's powerful Seattle Post-Intelligencer, but there will be no changes in management, personnel or policy, according to Mrs. Bullitt. Note ; Sale deal follows close upon purchase of WLAV-TV, Grand Rapids, by the Harry M. Bitner interests for $1,300,000 (Vol. 7:19). Mr. Bitner was onetime Hearst general manager and former publisher of Hearst 's Pittsburgh Sun-Telegraph. COLOR TV-SHORT & LONG-RANGE OUTLOOK: Where does CBS color go from here, now that it's commercial? This much is more obvious than ever: If it gets anywhere at all, it will get there very slowly. Impact on black-and-white sales remains first and most important thing to watch. Second factor is sale of color devices when they arrive this fall. Third, of course, is progress of compatible system. If today's battered market becomes critically depressed, and condition can be clearly attributable to color, and stays that way for considerable time — If color sets sell like hotcakes when nothing else does — If compatible systems appear definitely to be years off — Then, color may be eyed desperately by the manufacturers. But those "ifs" are extremely unlikely for these reasons: * * * * (1) Color has been very small factor in keeping people out of stores. The magic word "commercial," tacked onto color, means almost nothing to the customer. He has to see color — lots of it, good programs — before he's persuaded he's miss- ing anything. One hour daily, at very poor times, won't impel him to buy an expen- sive color set. At least, that's general feeling within trade. CBS promises 20 hours of color weekly by fall, but certainly few stations besides WCBS-TV, New York, will carry that much of it during decent viewing time. Matter of fact, only one of CBS's 4 affiliates now carrying color uses the full hour of color transmitted daily — other 3 using half hour or less. What will change affiliates' mind by fall, when number of color sets will still be insignificant? As aptly put by Linus Travers, manager of CBS's Boston affiliate, WNAC-TV: "We intend to cooperate, but we have a responsibility to 750,000 set owners." And, taking FCC Chairman Coy's view of color development — that it will be very much like history of black-and-white (Vol. 7:22) — here are TV set production figures for its "normal" inceptive years 1946-50: first year 6475, second 178,571, third 975,000. Boom didn't begin until 1949 when production (and demand) went to 3,000,000, output leaping to 7,463,800 in 1950. * * (2) Manufacturers wouldn't be so opposed to CBS system, even though most of them consider it technically inferior and abhor its incompatibility, if they thought a profit could be made in color sets. But the brand-name companies don't. They've carefully analyzed costs, fail to see how CBS can make any money on the sets to be offered at $400 & $500, even if 25,000 are produced this year — the production goal indicated by CBS-Columbia Inc. (formerly Air King) president David Cogan. What's even more important, they see no "depth" to the market, nothing that promises the fruits of mass production — inexpensive sets. Even the CBS adherents — Meek, Muntz, Tele-tone. CBS itself — are extremely careful to preserve black-and-white market. All have made statements insisting on - 4 - continued value of black-and-white. Now a set and tube maker itself, CBS faces the same hard facts of manufacturing life that everyone else does. Nevertheless , there's some danger color will develop into a depressant to black-and-white sales. If it becomes one during next few months, it will be solely because of publicity. Then, after a few sets are finally on dealer floors, there's possibility people may remain reluctant to buy anything, decide to wait for cheaper. bigger, color sets. "Eager beaver" buyers already have their TV sets. Current prospects have either less money, less desire, or both. And substantial new markets are at least 1-2 years off because of freeze. ^ sjc CBS's June 25 commercial "premiere" was big hit — no question about it — particularly to those seeing color for first time. Our own reactions to program, as a show, coincide almost exactly with those of Variety's George Rosen, who found it deficient in showmanship, despite big names, and spotty in color values. Color fidelity wasn't as consistent or as good as it has been in past. Virtues and defects of system stood out clearly. Flicker was worse than we've ever seen it, and breakup continues to annoy some, but not everyone. Brightness is fair, should be greater. In Washington, technicians finally doused room lights, and ob- servers liked picture much more. Low resolution, particularly after coaxial losses, makes closeups mandatory. At its best — model displaying lipstick and nail polish — pictures were superb. This was generally true of advertising subjects. Press and public reaction ran wide range, generally highly commendatory. New York News' Sid Shalit: "There were times when the hues were lush and dripped with pure beauty." Philadelphia Bulletin's Harry Harris: "Color was varied and realistic, and compared favorably with the color of Hollywood films." New York Times ; "CBS presented one for the record yesterday; it was hardly more." New York Journal-American' s Jack O' Brian; "As the 'first commercial colorcast,' it was un- satisfactory on several levels." But man-in-the-street was genuinely thrilled, though some criticized skin and hair tones, color breakup, small picture size, magnifying lens, etc. CBS broke full-page ads in June 25 newspapers in the 5 colorcasting cities, but tone of promotion is still more restrained than many expected. One ad heralded premiere, other announced availability of $500 CBS-Columbia set in late summer (no mention of $400 set). Ads made it clear CBS isn't trying to unsell public on black- and-white. Ads didn't say "wait for color" but CBS radio newscaster Don Hollenbeck said on the air: "The wait may be worthwhile." Statement by FCC Chairman Coy, during program, was in keeping with his pre- vious comments: "FCC sincerely believed that color in TV now is more important than a promise of color in the future. Such promises in the past have had a way of going unfilled. Today is a day of fulfillment." He emphasized CBS system is only one approved, said nothing about possible development of any other. ^ ^ ^ Fresh public interest in compatible system will be generated when RCA runs demonstrations of own and NTSC electronic system (Vol. 7:25) for press and industry in New York week beginning July 9. Based on sort of preview we saw at DuMont Labs June 26, we venture that reaction v;ill be one of consternation to those who think CBS's field-sequential should be the one and only system. We saw RCA tri-color tube, fed by DuMont's version of NTSC basic system (Vol. 7:18). It would be unfair to make exact comparison with CBS system, since pictures we saw were of f-the-line , slides — a laboratory version. But with pre- vious day's CBS picture still in mind, we were struck by remarkable fidelity, high resolution and brightness, freedom from flicker and breakup. From still to moving images is "mere detail," no great problem, said Dr. DuMont. DuMont plans to telecast such signals, on uhf, for benefit of manufacturers in New York area, from site of its WABD when latter has moved to Empire State Bldg, in month or so. Idea is to give manufacturers more time to work with off-the-air pictures than will be possible from NBC's WNBT, which is limited to non-programming I hours. Signal will be 700-706 me, about 8 kw to start, more power later. Kazeltine I may microwave various types of color signals from its labs at Little Neck, Long 3 Island, for rebroadcast by DuMont. I RCA's July 9 show will be for press — the demonstrations lasting 15-20 I minutes, repeated 10 a.m., 2 & 4:15 p.m. Remote pickups may be shown — not defi- nite yet. For first time, 21-in. tri-color tube will be demonstrated. Important technical aspect of RCA pictures will be so-called "oscillating I color sequence" (Vol. 7:18). Net result of technique, as Hazeltine's Knox Mcllwain ^ puts it: "You can make receivers sloppy as hell and the colors still stay true." ' Demonstrations will continue daily through Friday, after which engineers will knock off for few weeks rest, then return for public showings. Signals will be networked to Washington shortly thereafter. RCA hasn’t indicated when it will ask FCC for new hearing, presumably wait- ing to go along with rest of industry through NTSC after period of field-testing. Nevertheless, its spokesman asserts positively it can meet all color criteria now. ^ ^ Coy's look at tri-color tube will be July 2, at RCA's Lancaster tube plant. He'll look over tube's innards, see how it works. Other commissioners are to be , invited later — all Informally. CBS raised roof early this week because it hadn't yet received tube whereas DuMont had, accused RCA of trying to keep "mechanical" stigma attached to CBS sys- tem. But RCA said tubes were shipped June 27 to both CBS-Columbia and Hytron. CBS faces delicate .iob when it does get tube and hooks it up. If it then boasts its system is no longer mechanical, it runs danger of persuading customers : that its forthcoming CBS-Columbia sets with rotating discs are already obsolete. 1 DuMont also had built own tri-color tube, but isn't satisfied with it yet — j mostly because of poor red phosphor. We saw 16-in. tube with dots covering complete face, and company says it has put 1,500,000 dots on tube. Raul and. Zenith subsid- iary, has built tube with 1,000,000 dots, performance details unavailable. On DuMont tube, dots were difficult to see, even with magnifying glass. Philco isn't saying anything, nor is Sylvania, but it's hard to believe they haven't already made tubes. Now that manufacturers have tubes, you can expect more and more of them to come up with new ideas, improvements , economies. Which, of course, is industry's i whole purpose (Vol. 7:25). Dr. DuMont, who doesn't enthuse very readily and who is ; himself one of TV's great tube inventors, confesses he's "now completely sold" on j tri-color tube, though sees tough but not insurmountable mass production problems. ' He now thinks commercial telecasting of NTSC all-electronic compatible system should be ready by January, if FCC approves. * ' No manufacturer has gone all-out on CBS color, no matter how enthusiastic he , is about it. During June 24 discussion on Chicago's WJJD, John Meek said he planned , to have "Add-a-Color" slave unit, with 14-in. tube and "10 to 14-in." picture avail- able in 60-90 days. "We're shooting at under $150," he said. He and Hallicraf ters ' Wm. Halligan disagreed on market for slave units and probable prices of compatible I and incompatible sets. Meek felt there will be large demand that can be satisfied I now, regardless of future developments in any system. I Crosley displayed own slave unit June 28 in New York's Park Sheraton, but ' v.p. John Craig indicated company has little faith in system, had built unit solely > to meet possible demand. "There is every probability that the all-electronic com- )! patible system will emerge," he said. j Muntz nov/ talks of 2-5 months for beginning of color production, whereas he I first said "one month," and he also emphasized value of black-and-white. I Many small outfits are promising and predicting mightily, but as yet there :| is little evidence of actual production plans and capabilities. Some adapters are I being made and sold. Extent of that market is anyone's guess; Philco offers one for i $20 (Vol. 7:22) but says it has had little or no demand. Apparently, some customers - 6 - feel adapters will either bring color or make it easy to get, find it difficult to understand that they merely give black-and-white.. Demand for color, as gauged in Videotown survey (see p. 11), hasn't changed much. Says survey ; "There is today very little interest among the people in Video- town for color TV. Only a handful gave that as a reason for not buying a set this year. When asked about color, the expressed attitude was that they might buy it if it didn't cost too much; if they wait long enough, they will be able to receive j color TV on their present sets at little or no extra cost ; or that they are pretty well satisfied with black-and-white. Color is something that will come at some time, but no one is very excited about it." One of best analyses of color was given by Capehart-Farnsworth engineering v.p. Antony Wright, at June 25 NARDA meeting in Chicago. It's worth quoting because he pretty well reflects best industry opinion; "My own estimate for a good receiver which will operate on both black-and- white and color, providing the same size picture for color as in black-and-white, with the same inherent stability which the customer has a right to expect, is double the cost of the black-and-white. Such a receiver in table model form would be S500 ...Of course there will be cheaper [sets] but they will not be very good... "Of course, there is always a market for the pioneer, and a good salesman should be able to differentiate between the ordinary customer who expects to get a good color TV picture with a flip of the switch and the experimentalist who will put up with almost any inconvenience... "TV is a medium for entertainment. I think we must all realize that so long as the result is satisfying, and enjoyment is obtained through this medium, it does not matter too much whether it is black-and-white or color." NPA created some confusion with its M-47A order (Vol. 7:25). As worded, it provides no steel for manufacture of converters , adapters (or even uhf converters). Actually, it's expected order will be amended to permit manufacturers to divert steel currently earmarked for TV sets. Manufacturer who didn't make TV during base period, like Webster-Chicago , must appeal in order to get any steel for converters or adapters. And it's good bet j that steel he does get will be subtracted from amount he's permitted for his other consumer durable products. Note ; NFA hasn't had single manufacturer inquiry as yet on converter-adapter situation. Complete color sets aren't involved. They're simply called TV sets. Operations of ABC-TV turned profit comer first quarter this year — after taking bad beating 3 preced- ing years of network and 5-station operation. Net income from all TV sources for 3 months ended March 31, 1951 was $7012, before Federal income taxes, according to summary published in notice of July 27 stockholders meeting and proxy statement released June 25 in connection with pro- posed ABC-United Paramount merger (Vol. 7:21). Details of merger plan are disclosed in full, including hitherto unrevealed fact that ABC’s approximate losses from TV operations, network and stations combined, were $1,737,562 in 1948, $4,544,545 in 1949, $1,972,568 in 1950. Thus, TV was largely responsible for poor over-all earnings record of ABC in recent years: total $468,488 profit on total net sales of $37,110,726 in 1948; loss of $519,085 on sales of $40,267,488 in 1949; profit of $84,605 on sales of $45,879,660 in 1950. First quarter’s total profit was $221,858 on sales of $14,560,345, auguring well for rest of year, pai'ticularly since TV losses have been halted — though as yet TV sta- tion profits are barely offsetting TV netwoi-k losses. Sta- tion income isn’t broken down, but it’s significant that national spot and local time sales of ABC’s 5 TV and 5 AM stations combined climbed from $4,965,889 in 1948 to $6,194,231 in 1949 and $9,286,008 in 1950, and $2,763,281 in first quarter 1951. \ Significant, too, is this statement: “Of the total dollar ( volume of sales of ABC for the 3 months ended April 30, j 1951, radio broadcasting represented slightly more than 50% and TV broadcasting the balance. Because of growing popularity and effectiveness of TV as an advertising medium, it is expected that TV broadcasting sales will shortly produce a larger proportion of revenues of ABC.” Tei-ms of merger deal are as previously reported (Vol. 7:21), but also disclosed is fact that new American Broad- casting-Paramount Theatres Inc., if deal gets FCC ap- proval, assumes Jan. 1, 1951-58 employment contract of ABC president Robert Kintner, who stays as president of j ABC division, whereby he gets $75,000 salary plus increases j depending on profits. Also assumed are $75,000 annual salary contract of vice-chairman Mark Woods, which runs I to Dec. 31, 1953; $27,500 salary contract of v.p.-treasurer ■, Nicholas Priaulx, also running to Dec. 31, 1953 and re- muneration contract of Paul Whiteman ($87,000 salary in 1950), running to April 1, 1956. \ Note: Mark Woods on June 30 announced his resigna- ! tion from ABC to enter either the advertising agency or i TV-radio consulting field after vacation until September. i 7 ' Personal Notes: Fred Shawn, NBC-TV director of pro- duction services, heads 2 newly formed divisions in .realign- ment this week by Lyman Munson, TV operations direc- tor: Production Operations, managed by James Kovach, and Staging Services, headed by Benjamin L. Webster . . . Robert J. Wade, ex-NBG mgr. of production services, named executive coordinator of production development, I Robert Brunton supervisor of stage special effects . . . , Charles F. Holden named ABC-TV asst, director of pro- gram production under TV v.p. Alexander Stronach Jr.; iDean Shaffer promoted to mgr. of TV sales development, Eugene Accas mgr. of radio sales development, Don Coyle mgr. of research, under Oliver Treyz . . . Telford Taylor, representing Joint Committee on Educational TV, has (opened own law offices at 400 Madison Ave., New York; he was onetime FCC general counsel, held rank of brig, gen. as pi'osecutor of Nuremberg war trials, returned to join Paul, Weiss, Rifkind, Wharton & Garrison . . . John iH. Battison, associate editor of Tele-Tech and author of new book titled Movies for Television, joins TV-radio dept, of Dancer-Fitzgerald-Sample Inc. . . . J. Neal Reagan, i Hollywood TV-radio mgr., McCann-Erickson, elected 1951- 52 president of Advertising Assn, of the West . . . Edward . Roberts Carroll, ex-DuMont teletranscription chief, now v.p. & gen. mgr., Vidcam Pictures . . . Carlos Franco, ex- Kudner, joins Wm. Weintraub agency July 2 to work on TV-radio . . . Robert Colodzin joins Cecil & Presbrey as TV production supervisor . . . William J. Flynn, CBS asst, treasurer, elected chairman of New York Credit & Finan- cial Management Assn.’s new radio-TV broadcasting group . . . Abiah A. (Bob) Church, 1950 George Washing- ton U law school now with U. S. Court of Claims, joins NARTB law staff Aug. 1 . . . Francis Martin Jr., ex- ‘ DuMont and MCA, joins Blair- TV Inc. . . . Francis P. Matthews, Secretary of the Navy, who is president of WOW & WOW-TV, Omaha, appointed June 28 as Am- bassador to Ireland . . . Wm. B. Campbell, ex-Young & Rubicam, joins Borden Co. as asst. adv. mgr. handling TV- radio . . . Chester H. Lang, GE adv. v.p., named to new post of GE public relations director in New York. Siaiioit Accounts: New York Telephone Co.’s Long Lines Div. buys spots in John Wingate’s newscasts on WOR-TV, Wed. 8:45-9, to point out that defense prepara- tions have placed burden on long-distance operations, urg- ing users to save time by giving operator exact phone number if possible; placed thru BBDO, N. Y. . . . Zenith Radio’s first national use of TV will be 20 & 60-second Sarra film spots featuring John Cameron Swazey, Bob Trout, Westbrook Van Voorhis, Arctic explorer Comdr. Donald McMillan, plugging Zenith Super Trans-Oceanic portable radio, thru MacFarland, Aveyard & Co., Chicago !. . . High cost of TV decided Florida Citrus Commission on newspapers and radio for its new $2,000,000 advertising i campaign, according to J. V/alter Thompson Co.’s Don ^ Francisco, handling account, but some TV spots will be [ used to illustrate recipes and menus . . . Universal- li International, film producer, will use TV to promote pic- jl tures, planning bi-weekly 5-minute Movie Star Album > consisting of 20 stills, transcription of star’s voice, pre- pared script enabling station announcer to “interview” I star; account handled by adv. v.p. David A. Lipton . . . ' Delaware floor products div., Congoleum-Nairn Inc., for ' its Flor-Ever vinylite floor covering, will use TV spots in I fall, in addition to its participation in NBC-TV Kate Smith Show (Vol. 7:24), thru McCann-Erickson . . . B. F. Mc- Donald Co. (industrial safety devices) using film spots on ; western stations, thru Philip J. Meany Co., Los Angeles . . . Hoffman Radio to sponsor 23 Fri. & Sat. night local col- i| lege and junior college grid games next fall on KFI-TV, I Los Angeles . . . MacLevy Studios (dance school) sponsor- ing The Magic Door, children dramatizing fairy tales, with ballet and choral groups, on WOR-TV, Sun. 5:30-6, thru Associated Adv. System, N. Y. . . . Among other adver- tisers reported using or preparing to use TV : A. Goodman & Sons (noodles, spaghetti), thru A1 Paul Lefton, N. Y.; New York Frito Inc. (Frito corn chips), thru Ruthrauff & Ryan (WCBS-TV); American Home Foods Inc. (G. Wash- ington coffee), thru Ted Bates & Co. (WCBS-TV); Per- sonna Blade Co. (razor blades), thru J. D. Tarcher & Co. (WCBS-TV); Damar Distributing Co. (Damar household accessories), thru Maxwell Sackheim & Co., N. Y.; West Coast Soap Co. (Powow cleansers & White Navy soap), thru Buchanan & Co., San Francisco; Plastics Mfg. Co. (plastic dinnerware), thru Product Services Inc.; Forest City Products Inc. (Cropax foot aids), thru Foster & Davies Inc., Cleveland; Beaute Vues Corp. (Nutri-Tonic permanent wave), thru Hixson & Jorgensen Inc., Los An- geles; Olympic Distributors Inc. (Nids deodorant pills), thru Knight Adv., Los Angeles; Prim Products Co. (Prim waterless hand cleaner), thru Copley Adv. Agcy., Boston; Wiggins Chemical Co. (Wiggs waterless cleanser), thru Associated Adv. Agcy., Cincinnati; Paxton & Gallagher Co. (Butter-Nut coffee), thru Buchanan-Thomas Adv., Omaha (WTMJ-TV). Network Accounts: Cory Corp. (coffee brewer) is first purchaser of 15-min. segment of new Frances Langford- Don Ameche show which starts Sept. 12 on ABC-TV, Mon.- Fri. noon-1 p.m.; starting Oct. 2, it’s taking Tue. & Thu. segments under plan to sell 15-min. segments to advertis- ers on “escalator” basis whereby each sponsor moves up to preceding period each day. Agency is Dancer-Fitzger- ald-Sample . . . Gillette will sponsor 1951 All-Star baseball game on NBC-TV July 10 from Briggs Stadium, Detroit; game will also be piped to WOR-TV, New York; WGN-TV, Chicago; WNAC-TV, Boston . . . Colgate-Palmolive-Peet, starting July 4, buys additional evening half-hour of Strike It Rich on CBS-TV, Wed. 9-9:30; show continues regular runs for same sponsor on same network, Mon.- Fri. ll:30-noon . . . Your Esso Reporter, long-time radio spot feature, will make debut on CBS-TV, Thu. 9-9:30, starting July 12, occupying time of Alan Young Show for 8 weeks . . . Jacques Kreisler Mfg. Corp. (men’s jewelry) starts sponsorship of Tales of Tomorrow Aug. 3 on ABC- TV, alt. Fri. 9:30-10, thru Hirshon-Garfield, N. Y. . . . C. H. Masland & Sons (rugs) will sponsor Masland at Home starting Aug. 30 on ABC-TV, Thu. 10:30-10:45, thru An- derson & Cairns, N. Y. . . . Eversharp Inc. (Schick razors) starts unnamed show Sept. 4 on CBS-TV, Tue. 9-9:30, thru Kudner Agency . . . Procter & Gamble will sponsor new serial on CBS-TV, Mon.-Fri. 12:30-12:45 p.m., starting Sept. 3, thru Biow . . . American Home Products has bought Mon.-Fri. 12:15-12:30 p.m. on CBS-TV for unnamed serial to start Sept. 24, thru Biow . . . General Electric will spon- sor Bill Goodwin on NBC-TV, Tue. & Thu. 3:30-4, starting Aug. 28 . . . Holiday Hotel on ABC-TV, Thu. 9-9:30, being replaced by Don Ameche’s Musical Playhouse starting July 5; Packard and Cluett, Peabody & Co. (Arrow mens- wear) retain alt. weeks . . . Lucky Strike replacing This is Show Business July 15 with Go Lucky comedy quiz starring Jan Murray on CBS-TV, Sun. 7:30-8; This is Show Business returns Sept. 9 . . . General Foods (Sanka) replaces Who’s Whose? July 2, after one performance, with panel-quiz It’s News to Me on CBS-TV, Mon. 9:30-10, John Daly moderator . . . General Foods (Jello products) replacing Aldrich Family Aug. 26 with new show featuring Jackie Kelk on NBC-TV, Sun. 7:30-8, thru Young & Rubicam. Arthur M. Sherwood, ex-GE and RCA executive, died June 29 in Princeton Hospital. He was 63, and a brother of playwidght Robert E. Sherwood. 8 Financial & Trade Holes: Phenomenal growth of elec- tronics industry in 10 years is exemplified by these com- parative figures from July Fortune Magazine article on “The Electronics Era.” Table only gives rough idea of electronic expansion since many of these companies have vast non-electronic business, such as electrical equipment, refrigerators, lamps; Percent . increase millions in income 1940 1950 4,908% Admiral $ 4.7 $ 230.4 4,319 DuMont .17 76.0 1,782 Motorola 9.9 177.1 1,746 Collins Radio .72 12.6 1,709 Raytheon 3.5 59.5 1,132 Sylvanla 14.3 162.5 880 Emerson 10.6 74.2 657 Zenith 20.4 134.0 641 Philco __. 52.3 335.3 469 Bendix Aviation 46.7 219.4 459 RCA 127.8 586.4 426 Westinghouse 239.4 1,019.9 372 Olympic Radio .05 21.9 368 General Electric 532.7 1,960.4 342 Sperry 47.5 162.4 328 Claude Neon .44 14.4 281 Hazeltlne Electronics 1.4 4.0 243 Hoffman Radio .12 29.6 Halllcrafters (inc. 1943) 28.5 Packard-Bell (inc. 1945) 13.9 ■ DuMont’s first five 4-week periods (Jan. 1-May 20) resulted in sales of $23,970,335 as against $22,474,562 dur- ing comparable 1950 periods. But profits before taxes went down to $832,018 from $3,885,186 during same 1950 period. After taxes, profits were $487,618 vs. $2,380,886. Dr. Du- Mont told June 29 stockholders meeting that defense orders totaling $30,000,000 have been received, but conversion is some months away and production won’t reach high level until end of year. When 4-week plant vacation ends in August, TV production will resume at about 40% the comparable 1950 rate, he said. Muntz TV Inc. reports $749,852 net income, or 74^ per share on 1,013,994 shares of common stock outstanding, during first year of operation ended March 31. Earnings before taxes were $1,781,352. Sales for year were $27,147,- 846. Current assets on March 31 were $5,171,634, current liabilities $3,466,025. President Earl W. Muntz stated company will have color TV models, but expects change- over to be gradual and demand for black-and-white sets to continue for some time. Sentinel Radio reports net sales $20,090,708 for fiscal year ended March 31 vs. $9,072,994 for fiscal 1950. Net profits were $706,252, or $1.96 per share on 360,000 com- mon shares vs. $47,717 (13^). Profit before taxes was $1,899,524 vs. $77,717 last year. Miscellany: Secondary offering of 18,000 shares of CBS Class B stock, made June 27 by W. E. Hutton & Co., was oversubscribed (at 26% a share) and books closed; block of stock was said to be remaining holdings of Isaac D. Levy, resigned director . . . Change in stockholdings re- ported to SEC: Abraham Rosen, asst, treas., Emerson Radio, sold 1920 shares of Emerson common in May, re- ducing direct holdings to 500 shares . . . Hoffman Radio took no dividend action at June 28 meeting due to financial requirements for transition to military production; has been paying 25^ quarterly . . . Keystone Custodian Fund discloses 11,400 shares of Hazeltine among new purchases. ■m Dividends: Tele-tone A, 16% payable July 1 to holders of record June 20; Emerson, 25() payable July 15 to holders July 5; Howard W. Sams & Co., $2.50 on 5% cumulative payable July 1 to holders June 21; Olympic Radio, 25(f payable July 19 to holders July 9; Avco, 154 payable Sept. 20 to holdeis Aug. 31; American Phenolic, 204 payable July 27 to holders July 13. .\vco names Ll. Gen. Albert C. Wedemeyer, retiring 6th Army commander, as v.p. and director as of Sept. 1. Mobilization Notes: Many electronics manufacturers are going to get a jolt when they receive allocations of steel, copper and aluminum under Controlled Materials Plan. All signs indicate allotments of the 3 controlled metals for producers of class B (sta.ndard, civilian type) electronic products and components have been cut to bone. On basis of past actions, it’s good bet NPA Electronics Div. will appeal — and probably successfully — to higher NPA and DPA echelons to get bigger share of materials pie for electronics industi*>'. Throughout entire mobiliza- tion period, as well as during last war, top control author- ities have consistently sold electronics short — ^then recon- sidered when pressure was applied. Electronics Div. staff worked day and night this week to process all applications by June 30 deadline. Manufac- turers will be notified of their allocations by July 5; most will receive them July 2. Plenty of individual appeals are anticipated, especially from larger manufacturers who apparently have been hardest hit. NPA has gone much easier on small business in first CMP metals allocation. * * * * Certificates of necessity granted week ended June 22 by DPA for rapid tax amortization of new or expanded facilities for production of defense electronic equipment: Sangamo Electric Co., Springfield, 111., sonar equipment, $125,500 at 85% tax write-off over 5 years; Sylvania, Bos- ton, electronic tubes, $47,688 at 80%; DuMont, Clifton, N. J., electronic detection equipment, $11,755 at 75%. Extensive controls over all production can be expected as result of Manly Fleischmann’s appointment June 25 to head DPA, succeeding Edwin T. Gibson. Defense mobiliza- tion chief Charles E. Wilson upgraded the exponent of strong controls as first step in streamlining and coordinat- ing loose-jointed production control setup. NPA will probably be stripped of all its remaining policy functions and devote itself entirely to carrying out DPA policy. Fleischmann temporarily continues to head NPA as well as DPA pending his confirmation by Senate and completion of reorganization plans. Trade Personals: Cleo F. Craig, finance v.p., named acting president of AT&T in place of the late Leroy A. Wilson; T. Brooke Price, general attorney, elevated to v.p. & general counsel, succeeding John H. Ray, retiring Sept. 30 . . . Carl E. Wideberg named gen. mgr., George G. Jones personnel director, AT&T Long Lines Div. eastern area . . . Ballard F. Smith, ex-RCA Victor, Indianapolis, named Motorola wage & salary administrator; R. A. Holsten named special merchandising mgr. of Motorola . . . Scott Morency, ex-Western Automatic Machine Screw Co., named Washington representative of Zenith war contracts div. . . . Dr. W. R. G. Baker, GE v.p. in charge of electronics operation, awarded honorary degree of doctor of engineer- ing by Syracuse U . . . H. L. Pierce resigns as gen. sales mgr., Sparton, his duties taken over bj’^ asst, sales mgr. B. G. Hickman . . . W. D. Espey elected v.p. of Lear Inc. . . . Paul V. Galvin, president of Motorola, awarded honor- ary degree by Loyola U, New Orleans . . . L. D. Cahoon named president of Astatic Corp., succeeding F. H. Wood- worth, retiring . . . P. B. Reed, RCA Victor v.p. in charge of govt, service div., leaves July 6 on 4-week tour of mili- tary installations in Europe to which RCA Service Co. field personnel are attached. * ❖ * ❖ Avco reports consolidated net income of $5,547,211 for 6 months ended May 31 vs. $4,804,685 for same period pre- ceding year, after all tax provisions. That’s equal to 61c jier share on 8,731,058 shares outstanding, compared with 67c on 6,751,611. Sales for first half of fiscal 1951 were $158,959,656 vs. $98,223,246. GOOD AND BAD IN THE TRADE PICTURE: Theories and wishful thinking are about all you I can get from key TV-radio producers and merchandisers, in trying to evaluate market i for rest of year. There's no unanimity of opinion, no crystalized thinking, no feel- I ing of certainty or even confidence. Main factors worth reporting, after talking with key industry sources and studying latest trade reports and business services, are these; i (1) Nobody seems to go along with gloomy view attributed to one industry j leader some weeks ago that there's enough TV inventory at factories and in pipelines j to fulfill all demands for rest of year. Yet cold fact is that factory inventories i alone rose to unprecedented 715,032 units as of June 22. ! (2) Everybody thinks relaxation of Regulation W will help — but few think I it's the whole answer. Aside from season, "high cost of groceries" is simplest ex- I planation of current buying recession. Yet there was better-than-seasonal pickup at retail levels in latter June — enough to pull down dealer-wholesaler inventories somewhat but not enough to help factories move all new production (Vol. 7:25). (2) Trade is wary rather than worried about impact of color promotion on buyer demand, will of course sell color sets and converters if there's demand. Their concern was lessened when CBS-Columbia Inc, (formerly Air King) indicated $400 and $500 prices for 10-in. color receivers, which many think can't stand up price-wise against 16, 17, 19 and 20-in. black-and-white at around $200 to $300. (4) The business services and investment house letters are so confident that the general outlook is good, that surpluses and price-cutting won't last long, that consumer buying will pick up after the hot summer in view of high employment and wages — that their views become infectious. They're saying what all want to believe. (5) Second, third and fourth quarter profits will be nothing like what the trade enjoyed all last year and first few months of this year. Higher taxes and low margins on defense contracts, to say nothing of reduced civilian output, mean that the industry can't possibly achieve 1950 's fabulous earnings levels. (For cogent example, see DuMont's first 20-week report in Financial Notes). ❖ ❖ ^ It's estimated up to 2,000,000 TVs are in inventories — - but we won't really knov; until first RTMA-arranged Dun & Bradstreet survey of dealer inventories is made available toward end of July. Second quarter production will add up to about 1,150,000 TVs, as against first quarter's 2,199,669. Week ending June 22, RTMA reports, saw 75,911 sets made (3004 private label), not much change from preceding week (Vol. 7:25), but inventory at factories climbed to 715,052 from 669,950 on June 15. Final week of quarter, to be reported next week, shouldn't show much output change; then come plant vacations. I Radio output held steady level — 514,661 sets in week (170,666 private I label), not much change from preceding June weeks. Radio inventory at factory was 1 417,155 on June 22, up from 399,086 on June 15. Units were 129,587 home radios, I 142,436 auto, 46,638 portable. Interesting trend in TV prices is noted in fact that average factory price ■: per set was $191.21 in January, $205.70 in February, $197.55 in March, $171.85 in '. April. Downgrading is doubtless due to current emphasis on low-end units. If TV industry were entering third quarter all tooled up for maximum conser- vation (which it isn't) and with strong incentive to turn out every set it could J (which doesn't exist), it might possibly stretch materials supply enough to equal second quarter production total. But getting off to poor start, especially with 2, 3 & 4-week plant vacations I in July-August (Vol. 7:25), it seems certain third quarter output will lag behind i i - 9 - 10 - second quarter. For not to be lightly dismissed is 50% cut in steel. 40% in copper. 50% in aluminum, as against 20% steel cut and no copper-aluminum end-product cuts during second quarter. And because of flexibility of copper and aluminum restrictions (Vol. 7:25), manufacturers can cut back TV even further if they want to use copper and aluminum they save in order to make more radios, appliances or whatever is in biggest demand. Add to this the near-certainty that soaring military demands will tighten pinch on nickel, tungsten, cobalt during third quarter. Fourth quarter can't possibly be better, will probably be worse, what with defense production taking an ever-increasing share of the materials pie. One of biggest producers has been betting on TV shortages this fall to the extent of keeping lines humming second quarter, piling up sets in own and distrib- utor warehouses. His sales chief says there never was a September without business pickup, feels that if year ends with 750,000 inventory in all pipelines that will mean normal and successful market. Still another top sales chief said, "If we can cut the present inventories by 50%, we should be prepared this fall for a good, healthy business." DuNONT SELLING 30-in. SETS AND TUBES: If this weren't a "price market," you'd be hearing lots more about DuMont's 50-in. tube, largest yet made, as yet offered in only one super-duper receiver called Royal Sovereign, selling at $1795, most expen- sive TV set on the market today. Even so, DuMont has sold more than 500 such sets since first brought out last March (Vol. 7:10), has orders for about 500 more, is now making tube available to other manufacturers at $175, to distributors at $200, dealers $251, consumers $242, including excise tax. One manufacturer has placed order for 200 per month. It's distinctly a luxury item, yet mass production could bring set and tube prices down — if size clicks. Picture is fully as satisfactory as 19 or 20-in. , even more so in very large room. For public places, it's vastly better than most smaller sizes, certainly superior to any projection screen — and we viewed it as close as 5 or 6 feet quite comfortably. Tube is metal-coned, round, affords 525 sq. in. of picture space vs. 215 on 20-in. , 208 on 19-in. , 150 on 17-in. , 145 on 16-in. It has 90-degree deflection angle, as against 70-degrees in 17 & 19-in. It's 25)^-in. from face to end of neck, only inch or two longer than 20-in., weighs 40 lbs., requires 20,000 volts as against 12-15,000 in 19-in. Dr. DuMont has reputation for leading way in tube sizes ever since he would not go along with first industry 10-in. standard, instead made first 12- in. , led way to the larger sizes now vogue. He isn't sure the 50-in. will win mass popularity, thinks next step up from 20-in. may be 24 or 26-in. GE has 24-in. , but in today's moribund market hasn't done much with it; Sylvania worked on 24-in. , and Philco ' s Lansdale plant is also known to be working on stepups from present 20-in. maximum. Dr. DuMont says 50-in. can be made rectangular eventually, has plans on the boards for a 5x7-ft. tube which he says should be entirely practical and could gain same acceptance as that size movie screen. Giant 20xl5-ft. tube for theatre TV is also within realm of possibility, he thinks. And the larger the size, the easier to make tri-color tubes, which RCA has modeled at 17 & 21-in. but which DuMont says can be made even more easily at 24 & 50-in. Merchandising Notes: Chicago’s summer fnrniture market, ending June 28, suffered 14% decline in attend- ance— about 16,000 during the 10 days as against 18,644 at last summer’s market . . . Trade-in guide for 1951-52 TV receivers will be issued soon by National Appliance & Radio Dealers Assn., president Mort Farr told NARDA Chicago convention June 25. He also told of plan to assist new TV area dealers, based on experiences of “veteran” TV merchandisers . . . Sears and Spiegel fall catalogs now being mailed; noteworthy is Sears offer of 17-in. table TV at $189.95, whereas last year’s catalog’s lowest priced 16-in. was $209.95 . . . Electron Enterprises, Berwyn, 111., offers clever gimmick — lady’s overnight case, 16xl2x7-in., with built-in portable radio, 4-tube, battery-powered . . . Auc- tioning TVs via radio, buying local spots between mid- night and 3 a.m., “moved considerable inventory” for Video Store, Pacific Beach, Cal., owned by L. N. Papernow, appli- cant for TV station in San Diego; merchandise was de- scribed on air, phone bids accepted . . . Westinghouse Sup- ply Co. testing “Old Trader” campaign in Newark via 10 dealers, using newspaper ads, skywriting, etc. to call on public to trade in “anything around the house” for a West- inghouse TV — mentioning old percolators, toasters, radios, tricycles, irons, iceboxes, skates, tools, etc. 11 Topics & Trends of TV Trade: Battery-powered, ■ portable TV has been developed by National Scientific . Laboratories, 2010 Massachusetts Ave., N.W., Washington, D. C. (Dr. Robert I. Sarbacher), formerly the Wedd Lab- oratories— and it has been shown some manufacturers with an eye to commercialization. It operates on one or 2 wet cells, each capable of 4 hours of performance, with 25 watts to power 3-in. CR tube magnified to about 5-in. by means of lens. Set also covers full FM broadcast range. It can also operate on house current, and batteries are re- chargeable olf house current. Only 13 miniature tubes are used, whole unit being encased in satchel-like casing meas- uring 18xl0x5-in., weighing about 21 lbs. It’s claimed some 5 lbs. more can be taken off in commercial produc- tion, and that set could be made to sell for under $100. ^ Replacement and second-set market doesn’t look too 1 promising, as gleaned in ad agency Cunningham & Walsh’s fourth annual “Videotown” survey (Vol. 6:26), covering unidentified city of 40,000 that’s 50% TV-saturated — -be- lieved to be in New York City area. Since 1949, intent of owners to replace sets has been dwindling — 11% of TV families that year substituting old sets for new ones with r larger screens, 10% doing so in 1950, less than 4% show- ing interest in doing so this year. As for second sets, only : 16 families in 1950 had them; this year 65 said they did, but half of these reported first set “in storage.” Among non-owners, interest in buying has dropped from 28% in 1950 to 21% this year — but of course non-owners last year were 70% of population, are 50% now. National Retail Dry Goods Assn., in TV study just released, indicates doubt TV sales will take their usual up- I turn in September. What’s needed are “added incentives to buy,” says report — incentives such as price, picture size, ' shortages. Report is based on study of TV sales in all markets since 1948, includes charts to show retailer his potential market (which isn’t always total of homes in his area). As for color TV, report sees it as “replacement proposition” and sees “slave unit” as having possibilities, price-wise. Copies of 40-page report are available from NRDGA at $5 a copy to members, $10 to non-members. Reflecting trade slump. Bureau of Internal Revenue collected $17,327,085 in excise taxes on TV-radio sets, ; phonos for May — $897,463 less than April (Vol. 7:21) and , $6,000,000 down from high of $23,390,352 collected in March (Vol. 7:18). May collections compare with $4,436,908 in same 1950 month. Total excises collected from TV-radio industry for 11 months from July 1, 1950 were $118,432,959, compared to same preceding period’s $37,919,797. Dept, store tie-ins for color promotion are being pushed in number of cities. Washington’s WTOP-TV has loaned . set to Hecht’s. Boston’s WNAC-TV is working with Jor- dan-Marsh. And CBS-Columbia Inc. reports it’s being “swamped” with requests from such stores as Lyon & I Healy, Chicago; Shillito, Cincinnati; D. L. Hudson, Detroit; I Macy’s, Gimbel’s and Abraham & Straus, New York. I 4: S: :^e * I Trade Miscellany: Add Kaye-Halbert, Pilot and Tele- Ij tone to list of TV plants shutting down for vacations first :j 2 weeks in July (Vol. 7:25) . . . Canadian RCA Victor II starts construction of $1,000,000 new electronics plant at 'I Prescott, Ont., to employ 700 . . . Raytheon’s new 3-story, ■| 144,000 sq. ft. $2,000,000 power tube building at Waltham, !' Mass., had first girders placed at ceremony June 26; it’s 1: due for completion in fall, will add 1000 employes . . . ll Sylvania has leased plant in Nelsonville, 0., for produc- l| tion of welded lead-in wires for tubes, lamps and electronic I equipment, plans eventually to move to new building sched- 4 uled for construction by city of Nelsonville. Commander Television Corp., New York (M. F. Jaffa, president) is fourth TV set-making firm to go through bankruptcy proceedings thus far this year, having filed petition under Chapter XI of Federal bankruptcy act pro- posing to pay creditors 100% over 30 months. Liabilities are listed at $86,750, assets $15,600. Creditors include Du- Mont, $6441; Regal, $3522; Trad, $7641; Victory Container, $3213. According to gen. mgr. Robert Ehrlichman, who resigned June 28, assets actually ai’e $35,000, liabilities actually $68,000. Earlier this yeai', similar proceedings in- volved Freed Radio (Vol. 7:10), Richmond Television (Vol. 7:7, 10, 17); Vidcraft (Vol. 7:7,9). Emerson’s “1952 line” of 15 receivers, featuring 17 & 20-in. only, includes only 2 new models — 17-in. console with phono and 20-in. console, each $349.95; instead of regular mid-year distributor convention, Emerson will hold series of regional meetings. Radio receiving tube sales in May totaled 34,074,356, slightly down from April’s 35,883,627, bringing total for first 5 months to 188,235,226. Of May shipments, 21,187,- 963 went to TV-radio set manufacturers. ■ FCC’s uhf junket to Bridgeport June 29 as guest of RTMA (Vol. 7:25) was most solid evidence of Commission- industry reconciliation since start of color hearing. Chair- man Coy was particularly complimentary, in comments at luncheon, suggested RTMA take receiving equipment on tour throughout nation to convince broadcasters of uhf’s feasibility. Particularly impressive to Commission was fact uhf is much more resistant than vhf to some types of interference, such as diathermy. Eight manufacturers demonstrated converters, quoted off-the-record tentative prices averaging $40. One showed 1-channel and 2-channel devices to sell for $10-$15. Attending were all commis- sioners except Jones, staffmen Cottone, Braum, Simpson, Roberts, Boese. Crosley’s John Craig was host. Manu- facturers demonstrating were Capehart-Farnsworth, Cros- ley, GE, Hallicrafters, Philco, RCA, Stromberg, Zenith. President Truman won’t withdraw nomination of FCC Comr. Hennock for New York Federal district judge (Vol. 7:24-25), despite opposition of American Bar Assn, and New York City Bar Assn, on grounds lady commissioner is “totally unqualified.” President so told press-radio con- ference June 28. Second week went by without Senate Judiciary Committee setting date for hearing on Miss Hennock’s nomination, which American Bar Assn, asked be postponed until after July 15. Support for Miss Hennock has come from fellow New York Democratic Leader Sena- tor Lehman and Rep. Louis B. Heller. New York Republi- can Senator Ives said he’s withholding judgment until after hearings. New York Daily News in June 14 editorial, al- though not taking sides, chided New York City Bar Assn, for not being more specific about its objections. Eve of July 1 network radio rate cuts (Vol. 7:16-18) saw broadcasters breaking out with rash of trade ads, some strongly worded, to counter implications that I’adio is on downgrade (Vol. 7:25). Even NBC took full page in June 20 New York Times tying in with Jack Gould’s series on TV’s social and economic impact; it was captioned, “Yes, Mr. Gould, TV does have impact, but . . . Network Radio Reaches More People in More Places at the Lowest Cost . . .” Nashville’s AVSM got quite emotional: “The in- fection, until these last few months shielded from the public by the skin and flesh of sober judgment, has broken through, a blood-red rash across the face of the indus- try . . .” Charlotte’s WBT ran coldly factual graphs to show Sunday night listening audiences first quarter this year about same as same months last year. Mutual plumped: “More Radio Homes Than Ever Before.” 1 12 - Telecasting Notes: Considering high prices of TV sta- tions (Vol. 7:24) and higher rates for TV time as AM network I'ates go down (Vol. 7:25), stoi-y of Washington’s 250-watt WINX, on which FCC Chairman Coy cut his com- mercial teeth as manager, may be symptomatic: Washing- ton Post paid $500,000 for it in 1944, lost nearly that much on its operation, sold it in 1949 for $130,000 to buyers who didn’t do so well with it and now propose to sell it for $120,000 . . . TV isn’t alone in raising rates (Vol. 7:25); Curtis Publishing Co., effective next January, hikes Saturday Evening Post rates 10% (to $12,935 per one- time black-&-white page) , Ladies Home Journal 6% ($13,510), Country Gentleman 6% ($6900), Holiday 6% ($4320) . . . Also raising rates 10%, as of next Jan. 15, is Look Magazine . . . Lutheran Television Productions Inc. being formed by Missouri Synod of the Lutheran Church (which comprises 5000 churches and operates AM station KFUO, Clayton, Mo., suburb of St. Louis) to produce 26 half-hour Bible dramatizations for TV; $750,000 has been voted for project . . . Cowboy star Roy Rogers got re- straining order from Federal district court in Hollywood last week to prevent Republic Pictures from releasing any of his old films to TV, and Gene Autry has indicated he will take similar action . . . June 27 Variety front-pages story that Warner Bros, offering 600 unproduced story properties for sale to TV networks and ad agencies . . . Jerry Fairbanks Studios, now part of Isaac D. Levy’s Offi- cial Films Inc. (Vol. 7:22) hires Sid Rogell as operations mgr. for stepped-up production of films for TV . . . His- toric Fort Lee, N. J., studios, where some of early movies were made, being remodeled by Shuberts for lease to TV producers; 80xl20-ft. stage to be ready Aug. 1, another 40x80-ft. in fall . . . Spike Jones troupe to be paid $200,000, or $40,000 per performance, for 5 NBC-TV shows next fall, 3 probably on Colgate series again, according to Hollywood reports . . . Fordham U-CBS Summer Institute of Professional TV and Radio will use CBS studios and staff in 6-week course, July 5- Aug. 14 . . . Robert J. Landry, ex-Variety and ex-CBS, now publishing newsletter Space & Time, will direct New York U’s summer Radio-TV Workshop, July 2-Aug. 10 . . . Big color TV feature is planned for a late July issue of Life Magazine. CBS raises network charge for WCBS-TV from $3250 to $4000 for night time hour Sept. 1, thus following by week similar actions by ABC and NBC (Vol. 7:23,25). ABC raised all its owned & operated stations Aug. 1, NBC its complete rate cai'd July 1. About 60% of CBS-TV affiliates raise rates July 1, substantial number during following months (see TV Factbook No. 13, due July 15). No change is indicated for WTOP-TV, Washington (45% owned by CBS). CBS-owned KTSL, Los Angeles, ac- tually is being reduced July 15 — from $1600 to $1500. American Bar Assn, has named committee to study “constitutionality and advisability” of telecasting and broadcasting trials and Congressional hearings, to report at annual meeting in New York Sept. 17-21. Chairman is John W. Davis, New York attorney and Democratic candi- date for President in 1924. Other members: Bruce Brom- ley, New York; John A. Danaher, Hartford; Joseph J. Dan- iels, Indianapolis; Joseph W. Henderson and Wm. A. Schnader, Philadelphia; Monte M. Lemann, New Orleans. First educational TV channel application to be for- mally filed came this week from Lindsey Hopkins Voca- tional School, Miami, seeking Channel No. 2 there, ear- marked for educational institutions under FCC’s proposed allocations. Also filing for new TV outlets this week were WIBA, Madison, Wis., seeking Channel No. 13 in Eau Claii-e, and WJOB, Hammond, Ind., seeking uhf Chan- nel No. 56 . . . [For further details about these applica- tions, see TV Addenda 12-Y.} NBC’s move into film-making and distribution of TV- inspired films to theatres sounds as if it has all sorts of possibilities — emphasizes anew TV’s impact on show busi- ness. As envisaged by TV executive v.p. Sylvester (Pat) Weaver, NBC intends to film 60-90-minute shows, high- lighting season’s top TV entertainment — with Durante, Cantor, Sid Ceasar-Imogene Coca, Martin & Lewis shows among those prominently mentioned. Entei'tainers would re-create high spots of TV season, and these would be filmed on 35mm at NBC’s New York Center Theater, Some kines would be used. Undecided yet is choice of pro- ducer and distributor. Robert Montgomery will be narra- tor for those films needing one. Variety, which broke story in June 27 issue, says Weaver estimates $150,000 cost per picture. Pitch to theatre-owners would be: (1) Proven audience of 15,000,000, not all of whom have seen performers’ entire series on TV. (2) High pull in non-TV areas, where public has heard about but hasn’t seen the TV stars. “Shooting” may start Aug. 1, with release planned for Sept. 1. Second theatre-TV “network” boxing bout June 27 re- peated success of first (Vol. 7:24-25) — for the theatres at least. Nine of 11 theatres in 8 eities sereening Bob Murphy- Jake LaMotta slugfest reported overflow crowds (though Washington’s colored Lincoln Theatre was three-quarters full). Fight wasn’t telecast or shown in New York thea- tres, yet drew only 21,257 spectators to Vankee Stadium — less than one-third of capacity. Promoters blamed threat- ening weather. Theatres again paid total of about $10,000 to International Boxing Club for TV rights. Two new theatres joining closed-circuit “network” were Warner’s Stanley in Philadelphia and Fabian’s National in Rich- mond. Next exclusive theatre-TV showing is Rex Layne- Rocky Marciano bout from Madison Square Garden July 12. Success of experimental showings undoubtedly will fea- ture in FCC hearing scheduled Sept. 17 on theatre inter- ests’ request for special theatre-TV frequencies (Vol. 7:17). W’ashington consulting engineer Frank McIntosh was hired to represent Motion Picture Assn, of America at hearing. Edward W. Allen Jr. is FCC’s new chief engineer — his appointment putting “first team” man in top engineering advisory position. He succeeds Curtis Plummer, now Broadcast Bureau chief. As long-time head of technical information div., Allen participated actively in postwar broadcast developments, FM and TV particularly. He’s known as “an engineer’s engineer” among industry’s tech- nicians. He’s 1925 electrical engineering graduate of U of Virginia, got LL. B. from George Washington U in 1933, worked for Westinghouse and Chesapeake & Potomac Telephone Co. before joining Patent Office in 1930, trans- ferring to FCC in 1935. He takes new office July 23, when he returns from CCIR conference in Geneva (Vol. 7:20). TV Factbook No. 13 Exactly 415 applications for new TV stations are on file with FCC as of end of first half of 1951 — 44 having been filed, 2 withdrawn, since publication of our last TV Factbook in January. All applications to July 15, 1951, plus detailed data (including i-ate summaries) on all the 107 operating stations and the networks will be published — along with present and proposed channel allocation tables and many other directory features — in TV Factbook No. 13, due off presses July 15. Full-service subscribers will receive copies in usual routine; Newsletter-only subscribers may order at $2.50 per copy. Pre-print orders in quantities of 20 or moie will be accepted uj) to July 6 at $1 per copy. I JBLISHEO WEEKLY BY RADIO NEWS BUREAU, 1519 CONNECTICUT AVE. N.W., WASHINGTON 6. O.C. TELEPHONE MICHIGAN 2020 • VOL. 7, NO. 27 July 7, 1951 /Film Trend to TV Dominates Trade News, page 1. ) Higher Hopes for Faster Freeze Thaw, page 1. ' This Mssue:\ gQcial and Economic Effects of TV, page 2. (.All Eyes Focus on RCA Color Pictures, page 3. Output Way Down But Factory Stocks Up, page 7. After Korean Cease-Fire, What? page 7. Electronics — Fastest Growing Industry, page 8. Trade, Financial, Mobilization Notes, pages 9-11. FILM TREND TO TV DOMINATES TRADE NEWS: Pointing up TV's ever-increasing affinity with motion picture industry was announcement this week that The March of Time is dropping its theatrical motion picture series, popular in movie houses since 1935, in favor of concentrating on producing TV and special theatrical films. Only 5 more issues of March of Time are in works, plus certain documentaries — also "Crusade in the Pacific" now being put together as sequel to "Crusade in Europe" for TV release. Said Time Inc. president Roy E. Larsen; "Our company has been increasingly active in recent years in developing and producing programs for TV and our facilities are admirably suited for the new medium." Theatrical trade press is so replete with TV items these days that news of stage and movies is often overshadowed. Getting big play are subscription- TV proj- ects, notably Skiatron and Paramount's Telemeter. These will doubtless be subject of FCC hearings, as yet unscheduled, along with Zenith's Phonevision. Meanwhile, they're riding high tide of free publicity, despite the fact FCC must yet rule on pay-as-you-look principle ■ — and approval is by no means assured. Much ado, too, over NBC's plans to film highlights of TV programs for show- ings in theatres (Vol. 7:26), which may be extended to top AM programs like Tallulah Bankhead's. Then there's theatre-TV, notably recent fightcasts (Vol. 7:24-26), and of course United Paramount's projected merger with ABC (Vol. 7:21,26). Variety got so hot about wedding of TV with films that it headlined July 6 edition: "Films' New Prosperity — Via TV" and observed, anent NBC-TV movie project: "The prime objective is a triple-threat ballyhoo for the picture theatres, the talent and TV. It would blend and wed the 2 media for mutual boxoffice or other benefits, bringing to non-TV audiences a sample of video's talent values, and at- tract into video-saturated sectors the 'lost' audiences v/ho may have gone overboard for TV favorites at the expense of the boxoffice." Also worth noting was meeting of Isaac D. Levy, a co-founder of CBS, now in TV film business, with RCA president Frank Folsom (see back page). HIGHER HOPES FOR FASTER FREEZE THAW: FCC got what it was looking for — petition from NARTB-TV asking it to call off city-by-city oral allocations hearing, accept another rovind of written comments, come up with final allocation plan (Vol. 7 :25-26) . NARTB-TV contends 8-15 months delay is inherent in oral hearing, asks that 50-day deadline for new comments be set, with 30 additional days for oppositions — and that's all. Petition filed July 6 asks FCC to issue "due notice that opportu- nity for oral presentation will not be provided, unless good cause is shown to the contrary by specific petition." Whether NARTB-TV s petition alone is enough to spark off speedup procedure, it's hard to say. FCC may wait for "overwhelming" demand by more organizations, and for substantial number of individual petitions. Convinced of its rule-making authority, FCC is going ahead with plans to adopt fixed allocation plan in rules, to be changed only by rule-making. It may be Copyright 1951 by Radio News Bureau - 2 - assumed Commission has rejected contentions of ille,fi;ality made during oral argument of FCC Bar Assn, and others last week (Vol. 7:26). But Commission's course isn*t clearcut yet. DuMont has insisted on oral hearing, may get it. And many parties object to facets of DuMont’s nation-wide plan, may demand to join hearing. It could snowball, get out of hand. Educators, too, are worried. If FCC sets 20-30 day deadline for filing additional comments, attorneys for Joint Committee on Educational TV may feel they will need more time to prepare cases. Then, the 51 station shifts proposed by FCC present knotty question. WKY-TV, Oklahoma City, brought this to a head when it filed petition for "severance" and "formal hearing." It contends that FCC's intentions to shift it from Channel 4 to 7 must be thrashed out in conventional "due process" hearing, not buried among hun- dreds of unrelated issues involved in national rule-making proceeding. Informal conference of attorneys, to establish "ground rules" for oral or written procedures — whichever prevails — is being considered by Commission, may be called sometime during week of July 16. If July 25 oral hearing is dropped, in whole or part, some within FCC feel that consideration of final allocation may begin around end of September, then con- cluded in month or so. Most observers regard that target as pipe dream, would be delighted with final decision by Jan. 1. ^ ^ Meanwhile , FCC has at least 5 other matters to clear : (1) 470-500 me allocation. There's every indication that this 30-mc band, sought for common carrier use by Bell Labs, will shortly be assigned to TV. (2) "Partial" unfreezing. FCC originally hoped to increase vhf powers, grant vhf stations in Territories and authorize uhf stations — all in near future, before lifting of general vhf freeze. Decision on these is now likely to remain suspended until nature of speedup procedures, if adopted, become clear. (3) Calif ornia-Mexico border conflicts. These are in process of solution through removal of one vhf channel from San Diego, one from Il^exicali. FCC may have to give San Diego TV aspirants opportunity to protest deletion. SOCIAL AND ECONOMIC EFFECTS OF TV: How is TV changing the pattern of American life? New York Times provides plenty of clues — if not the answers — in series of 7 articles June 24-30, written by able radio editor Jack Gould, based on reports from correspondents in more than 100 cities. It's well-nigh impossible, even for the capacious Times, to give a really definitive picture of TV's impact. But this series has come closer to it than any- thing yet. Mere fact that the Times undertook project emphasizes recognition of the social and economic revolution being wrought by mere handful of TV stations (107 as against some 2250 radio stations) — the video signals as yet within reach of very little more than half the nation's homes, only some 15,000,000 as yet with TV sets. Yet this series is "must reading" for everyone connected with TV-radio, and we urge you by all means to get copy of pamphlet of reprints available for lOjJ from Dept. TV, New York Times. Some highlights, just to give you an idea; CHILDREN — Surprisingly enough, "the overwhelming majority of school offi- cials from coast to coast believe [TV] is benefiting youngsters. . .and is not having significantly adverse effects." TV stimulates imagination, vocabulary and interest in current events, educators are saying. Even Hopalong comes in for praise — and a Columbia U psychiatry professor calls cowboy films "an excellent outlet" for children's natural and normal hostility and aggression. POLITICS — President Truman and Thomas Dewey both acclaim TV to be a great force for public enlightenment but strongly oppose televising of "trials" such as the Kefauver hearings. TV is causing revolution in politics, v/here it's destined to replace the old-time political rally. Candidate who is telegenic, quick v;ith the answers and at ease before the camera has head start at election time. 3 SPORTS — TV makes biggest inroads on the second-raters. Top-notch events still attract capacity crowds, but poor teams, small-timers , high school athletic ' events are getting crushing blows at the gate. RADIO — Big radio programs have lost sizable hunk of after-dark audience. New Hooper tabulations for New York show Jack Benny had 4.8 rating in early spring 1951 vs. 26.5 in early spring 1948; Amos *n' Andy 5.9 vs. 13.6; Arthur Godfrey (radio) 5.9 vs. 20.3; Lux Radio Theatre 8.4 vs. 25.3; My Friend Irma 6.6 vs. 18.8; Bob Hope 3.2 vs. 16; Bing Crosby 3.8 vs. 18; Fibber McGee 5 vs. 17.2; Big Town 2.2 vs. 12.7; Groucho Marx (radio) 5 vs. 12. NIGHT LIFE — Where TV once v/as boon, now it's bane to taprooms. It's ’ competing with night clubs not only for customers but for chorus girls and other . entertainers. People eat out less often than before TV, with restaurant business I off 25% in Chicago. Lodges and labor unions are having hard time getting quorums for evening meetings. READING — Sale of books to adults has fallen off in most cities, but most . public libraries report children reading more than before. Newspaper circulation continues to gain in TV cities. Several booksellers want publishers to advertise on TV, but publishers say network time is too costly. CULTURE — Educators are divided every-which-way on TV's merits, faults, ' possibilities. Series presents typical quotes from leading educators, representing virtually every conceivable viewpoint — no clear-cut trend of thinking about merits or demerits of TV ; rather, a desire to probe its potential further. MOVIES — Theatre attendance has dropped 20-40% since advent of TV, with 70 theatres closing in Eastern Pennsylvania, 135 in Southern California, 61 in Massa- chusetts, 64 in Chicago area, 55 in metropolitan New York. Good films still draw good audiences. Washington exhibitor's comment is typical; "You can't charge for mediocrity any more when everybody can get it at home for nothing." Other "impact points" are covered in articles — from TV's effect on life at sea (coastwise vessels now equipped with TV) to its impact on bus and streetcar riding (fewer passengers often blamed on TV stay-at-homes). Even eating habits may be feeling influence of TV — Will TV produce nation of fat men? Asbury Park, N.J. physician is quoted as believing many of his patients are putting on weight because they spend night after night at home eating additional snacks and munching sweets and nuts (drinking beer, too, he might have added). Credence to this point of view, says article, is lent by druggist reports of sharp rise in sale of weight-reducing preparations. ALL EYES FOCUS ON RCA COLOR PICTURES: Next v/eek will be one of most critical yet in color struggle. RCA demonstrates its system to press and industry for first time since last December, first since CBS system finally achieved commercial status. If RCA's pictures are as good as claimed, compatible system will be well on its way back to Commission hearing rooms. And if cost, stability and versatility of receiving and transmitting equipment unmistakably fulfill FCC's rigid criteria, the eventual approval of compatible system will be clearly foreshadowed. Comments of press, subsequent reaction of public, should be watched with j extreme care. They're likely to establish tenor of whole battle from now on. j Demonstrations start July 9, 10 a.m. , 2 & 4:15 p.m. , running daily all week in Radio City's Exhibition Hall for benefit of press and industry. Shows will j feature Broadway-TV stars Nanette Fabray, Yma Sumac, Ray Malone, Bob Smith, George Burton, plus Conover models, with Ben Grauer announcing. Engineers then rest few weeks, return for public showings, network feeds. ❖ >■; This week, flat demand that FCC reverse itself came from Congressman Wolver- tcn (R-N.J.), ranking minority member of Interstate & Foreign Commerce Committee. ;! In June 28 Congressional Record, he states: "it is unfortunate that the decision rendered by the FCC relating to color 1 TV has had the effect of denying to owners of TV sets a system that could be uti- 4 lized to receive broadcasts in color or plain black-and-white interchangeably. "The advancement that has been made in this art now makes it possible to have a system that can be interchangeable. The sensible thing for the FCC to do under the circumstances would be to review the decision previously made to the end that the best possible system be made available to the public." FCC Chairman Coy toured RCA's Lancaster tube plant July 2 in company of RCA president Frank Folsom. He saw how tri-color tube is made — no color demonstration. He made no comment to press, but is said to have been particularly interested in rate of production. Rest of commissioners are due to be invited soon. RCA doesn't indicate whether it will ask Commission to see New York color demonstrations. Rest of industry, through National TV System Committee (Vol. 7:17-26), is gearing for field tests of compatible system, albeit slowly because of vacations. In Chicago, Hallicraf ters expects shortly to "fire up" tri-color tube it received from RCA, is building 20 more chassis for tubes to come. Company has own color generating equipment. Zenith has been testing Rauland-built tube (Vol. 7:26). Admiral and Motorola are known to have color programs mapped out, but they aren't talking about them. Nor is Philco , also very active on color. To get color signal on air in Chicago, there's good chance Zenith's experi- mental Channel 2 station (used until recently for Phonevision) may be employed. Unequivocal stand against CBS system was taken by Olympic this week when it advised its dealers of decision not to make CBS sets, declaring: "Before long a very superior color system, providing large screen, high- definition color images with excellent color fidelity and complete compatibility will emerge and will have the backing of the entire TV manufacturing industry, as well as broadcasters, sponsors and the public." But mass production of compatible system can't come until year or more, com- pany estimated. Meanwhile, CBS-Columbia Inc, (formerly Air King) will "gauge" color market , in a sense, with its offering rest of this year of some 25,000 color receiv- ers due for initial deliveries to dealers in September (Vol. 7:26), and various other smaller manufacturers promise sets and slave units. ^ ^ ^ CBS's biggest current promotion seems to be via dept, stores. It has loaned sets to Gimbel ' s , Abraham & Straus and Gertz, in New York area. Estimated 1500-2000 people saw demonstrations July 3. In Boston, Hub Distributors reports that over 1200 dealers attended 3-day showings of CBS-Columbia set. Reason behind CBS's less-than-all-out campaign, according to July 7 Bill- board, is that "CBS believes that the only way to effectively promote color TV is to have people see it for themselves." Thus, CBS awaits fall crop of receivers. CBS also hopes for lift from sports, is seeking NCAA permission to color- cast Eastern football games, arguing that paucity of sets means no impact on gate. Horse races are first events on sports schedule, with colorcasts of Monmouth Park (Oceanport, N.J.) races set for July 14, 21, 28 & Aug. 4 at 3:45-5:15 p.m. To coincide with Music Merchants Show in Chicago July 16-19, CBS will fea- ture Columbia Records artists Rosemary Clooney and Frankie Lane in closed-circuit colorcasts in WBBM auditorium, to be viewed on CBS-Columbia sets. First broadcast station to receive NPA construction authorization (Vol. 7:19-20, 22) was WEKZ, owned by Green County Broadcasting Co., Monroe, Wis. Applica- tion got o.k. June 16. Authorization was for a “broadcast building” to cost $10,200. WEKZ was granted CP by FCC March 21 for 500 watts daytime on 1260 kc. Appar- ently the case for NPA authorization was clear-cut matter of “community need” since there is now no station in Mon- roe (pop. 6182), 35 air miles south of Madison, 20 miles north of Freeport, 111., 35 miles northwest of Rockford, 111. Operating under its emergency authority, NPA is known to have taken action on applications for construc- tion and alterations by other radio and TV stations since approval of WEKZ, but names of applicants and disposi- tion of their cases haven’t yet been disclosed. As of June 16, NPA hadn’t denied any applications from broadcasters. Applications cover only the cost of actual construction, not broadcast equipment, which NPA calls “personal property.” New or existing stations may install personal prop- erty without authorization if installation cost (as distin- guished from cost of property itself) doesn’t exceed $2000 in any 12-month period. Constiuction Older M-4, as re- vi.sed July 1, specifically mentions “theatre seats, TV trans- mitter” as examples of personal property. I Personal Notes: John F. Royal’s retirement as NBC j! v.p. is definitely set for Aug. 1; now 65, he’s going into consulting business, and Variety says his first clients will be NBC and Mexico’s Emilio Azcarraga and that he’s ne- gotiating to sell his biography as veteran showman for filming as “The Royal Story” . . . Judge Justin Miller, NARTB chairman and gen. counsel, off this week with Forney Rankin, detached from U. S. Embassy staff in ' Mexico City, on 6-week Latin American tour for State Dept., studying international radio, notably work of Voice of America . . . Edward Lamb and Stephen Mack announce new law firm of Lamb & Mack, Security Bldg., Toledo. Mr. Lamb is owner of TV stations WICU, Erie, and WTVN, Columbus. Former partnership of Lamb, Goerlich & Mack was dissolved June 1 after appointment of Mr. Goerlich as associate counsel, UAW-CIO . . . William H. Hylan appointed CBS-TV asst, sales mgr. in charge of color TV sales . . . Norman Boggs, executive v.p., WMCA, New York, July 23 joins Don Lee as sales v.p.. Ward In- grim having been elevated to Don Lee executive v.p. and Wm. Pabst elected to board of Thomas S. Lee Enterprises ... Reynold Kraft, ex-NBC-TV sales mgr., recently TV : v.p. of Paul H. Raymer Co., named to head new Chicago : sales office of Fort Industry Co. (Storer stations) . . . John ' William Quinn, ex-Rural FM Network, Ithaca, N. Y., 1 named production mgr., WBTV, Charlotte . . . Donald Shaw ' promoted to regional mgr., ABC-TV stations dept, under vi Richard B. Rawls; new regional mgr. also is Carl Cannon, . ex-NBC, Branham and WSMB, New Orleans . . . James A. I Glenn, photographic engineer, appointed mgr. of new NBC- I TV special effects dept. . . . Theodore P. Wallower ap- ( pointed TV-radio timebuyer, Bermingham, Castelman & j Pierce . . . Robert Sawyer joins Kenyon & Eckhardt as I TV-radio supervisor . . . James N. Manilla, ex-BBDO, I named film supervisor in TV-radio dept., Geyer, Newell & I Ganger Inc., N. Y. . . . Raoul Pagel, ex-General Sei’vice ! Studio mgr., named production mgr. of Jerry Fairbanks- ( Official Films operations in Hollywood, first change made j by new executive v.p. Sid Rogell. NARTB-TV engineering committee, set up to advise ' TV board on any or all engineering matters: Raymond F. I Guy, NBC, chairman; R. J. Rockwell, Crosley; R. D. Chipp, ■ DuMont; J. G. Leitch, WCAU-TV, Philadelphia; J. E. 1 Mathiot, WGAL-TV, Lancaster; C. G. Nopper, WMAR-TV, : Baltimore; J. R. Poppele, WOR-TV, New York. Jack Kent Cooke, Canada’s first TV applicant, has pur- • chased Toronto Maple Leaf baseball club, whose games are 1 broadcast by his CKEY. I TV Factbook No. 13 Rate cards of the 4 TV networks, digests of rate cards with other detailed data about the 107 TV sta- tions now in operation, directory of present or pro- jected TV stations in Canada and Latin America, listing of the more than 400 applications pending for new TV stations — these are main features of TV Factbook No. IS due to be mailed to all full-service subscribers July 14. Many other features valuable to station operators, new-station applicants, adver- tising agencies, film syndicators, etc., will also be carried, including present and proposed vhf and uhf allocation tables broken down geographically and by frequencies. Included with each Factbook will be a 20x30-in. wall map showing TV areas with status of stations and network routes. Extra copies of Fact- book will be available to subscribers at $2.50; to non- subscribers, $5. FCC Chairman Coy took dim view of some proposed “purity” safeguards suggested by Senate Labor subcom- mittee studying ethical standards in govt. Testifying July 5, he said Congress conceivably could go too far, though he thought proposed Federal commission on ethics could be valuable in calling attention to practices in regu- latory commissions. It may be, he said, some officials are “over-friendly” to groups they regulate, but he believes legislation to ban former FCC members for specific period from joining any private business subject to FCC regula- tion is “much too restrictive.” He added: “Within limits ... I would prefer a bit of abuse to a generally incom- petent staff.” Vigorous opposition to educational channel reserva- tions came to FCC this week, from a TV-sawy educational institution — Western Reserve U, Cleveland. University’s Radio-TV Council resolved that “the interests of education can best be served by cooperating with existing commer- cial TV stations.” School, under Barclay Leathern, direc- tor of dramatic arts dept., has produced nearly 200 shows over WEWS and WXEL. Says Leathern: “We felt that the university will do a better job and reach more people by concentrating on producing a limited number of excel- lent, professionally-done programs on a commercial sta- tion than by spreading itself thin . . . What we need is not a TV station, but a TV studio, which might be connected to the commercial transmission facilities.” Sen. Johnson’s attitude on educational TV was reem- phasized this week when he sent FCC copy of letter he received from Syracuse U graduate student Sidney Dashef- sky, who is working on master’s degree in education, spe- cializing in TV. Student describes and endorses tieup between university and WSYR-TV, wherein school has own studio and studio equipment, and students provide free production help for station’s local originations. Dashefsky contends such arrangement, with one additional factor — FCC requirement that stations set aside specific times for school use — is far superior to complete operation of sta- tions by educational institutions. Sold on uhf, one experienced broadcaster and TV sta- tion founder-manager, who attended June 29 showings for FCC in Bridgeport (Vol. 7:26), had this to say: “I can foresee uhf as the program service the majority will even- tually receive ... I am convinced that uhf will work and that its advantages may offset disadvantages (which are mostly the distance you can get good pictures).” He observed reception in 20-mile-distant New Haven, on Zenith, RCA, Crosley and GE converters, termed pictures “acceptable” despite 15-kw radiated power (compared with FCC’s proposed 200-kw maximum). Investigation of TV-radio programs which contain “im- moral or othei’wise offensive matter, or place improper em- phasis upon crime, violence and corruption,” is called for by H. Res. 278, introduced June 28 by Rep. E. C. Gathings (D-Ax’k.). Bill directs House Interstate & Foreign Com- merce Committee to conduct probe and recommend legisla- tion “to eliminate offensive and undesirable” programs. NARTB-TV committee to draw up program standards (Vol. 7:25) will be named next week. FCC was upheld by U. S. Court of Appeals this week in refusing to extend CP of city-owned WJ AX-TV, Jack- sonville, granted Channel 2 in August 1948 for completion by April 1949 but revoked for failure to pursue construc- tion diligently. Court ruled Commission did not act arbitrarily in denying extension requested last July. League of American Song Writers has been organized to protect composers of popular music and lyrics, reports attorney Robert Daru, 292 Madison Ave., N. Y.; it differs from ASCAP in that publishers are ineligible for member- ship. Station Accounts: New or expanded brewery sponsor- ships reported during last week: Esslinger Inc., Philadel- phia, feature movies, on WPTZ, Philadelphia, thru J. Cun- ningham Cox, Philadelphia; Terre Haute Brewing Co., Terre Haute, Ind., news and sports, on WFBM-TV, Indian- apolis, and WJIM-TV, Lansing; Stegmaier Brewing Co., Wilkes-Barre, Pa., thru McManus, John & Adams, Detroit; G. Kreuger Brewing Co., New York, expanding in South, thru Charles Dallas Reach Co., N. Y.; George Wiedemann Brewing Co., Cincinnati, Bostoji Blackie series, thru Strauchen & McKim, Cincinnati; Brewing Corp. of America (Carlings beer & ale), purchases TV-radio rights to Cleve- land Browns pro football games, to be placed on WXEL . . . Rudisco Inc., DuMont Albany distributor, sponsoring Fri. night Teen Age Barn, now in third year on WRGB, Schenectady, claims it enjoys highest rating of any local or network TV show; performers are high school and dra- matic groups, glee clubs, church choirs . . . Owens-Illinois Glass Co., thru J. Walter Thompson Co., to use TV spots to promote throwaway beer bottles . . . Rockwood & Co. (mint-flavored chocolate wafers) and Quaker Oats Co. (Aunt Jemima cake mix) planning joint campaign in fall to promote use of both products in making cakes . . . American Medical Assn., in campaign against socialized medicine, reported planning to use TV as well as radio, thru Russel M. Seeds Agency, Chicago . . . Local Chevrolet dealers to sponsor 9 grid games of Loyola U, Los Angeles, on KNBH this fall, thru Campbell-Ewald; none of games is Saturday afternoon . . . Among other advertisers re- ported using or preparing to use TV : Dictograph Products Inc. (Acousticon hearing aids), thru McCreery, Quick & McElroy Inc., N. Y.; Aeolian-American Corp. (Knabe pianos, Aeolian pianola keyboard), thru George N. Kahn Co., N. Y.; Bachman Bakeries Inc. (pretzels), thru Aitkin- Kymett Co., Philadelphia (WPTZ); Olympic Knitwear Inc. (Tish-U-Knit sweaters), thru Sterling Adv. (WABD); Lexor Corp. (Sip-and-See straws), thru Franklin Bruck Adv. Corp. (WABD); Saratoga Racing Assn., thru George R. Nelson Inc. (WABD). TV network and spot billings have tripled since 1949, but their total increase was only $36,000,000 while news- papers gained $54,000,000 and magazines $24,000,000 in same time. These figures by Harold S. Barnes, director, ANPA Bureau of Advertising, were cited June 27 at News- paper Advertising Executive Assn, convention in Denver, with admonition that if they fight hard for their medium they have nothing to fear from TV. Mr. Barnes recalled radio’s sensational gains in early ’30s, said that in present expanding economy there’s room for increased budgets in all media. TV’s inroads into newspaper classified advertising have been most serious in used car and real estate classifi- cations. So panel on “competing media” told Montreal convention of Association of Newspaper Classified Adver- tising Managers last week. Cincinnati Post classified ad manager Larry Keller suggested TV is profiting because it is “glamor advertising,” despite fact that it produces less sales and is more costly than classified advertising. TV can be “terrific” circulation builder, Charles Staab, Cincinnati Enquirer, told International Circulation Mana- gers Assn, at June 19-21 convention in Washington. He cited 6024 requests for 2 weeks free trial subscription offer made over WLWT during 3 week period, said 35% have remained as regular subscribers. Other speakers claimed TV has not cut into circulation. More July 1 sets-in-use reported since NBC Research’s “census” of June 1 (Vol. 7:25): Fort Worth-Dallas 124,148, up 3148; Utica 45,200, up 1700; Greensboro 70,808, up 1208; Memphis 87,600, up 1100; Washington 270,450, up 5450. Bids by 4 ad agencies on behalf of potential sponsors for college football games under National Collegiate Ath- letic Assm’s “controlled TV experiment” (Vol. 7:23-24) were submitted to NCAA’s full TV committee in Chicago July 6. Names of agencies, sponsors and amounts bid weren’t disclosed, but TV chairman Tom Hamilton indi- cated only one agency would be granted contract for net- work football TV, but other agencies may bid later for rights outside network area (beyond cable). Under NCAA plan, each market district would have 3 of 10 Saturdays when no home game would be televised, and each district would be limited to one TV game on remaining 7 ; each col- lege is limited to one home game and one away on TV. Francis Murray, U of Pennsylvania athletic director, ap- peared at meeting at own request to explain Penn’s de- cision to televise home games, defying NCAA plan. Notre Dame has openly opposed plan, and Justice Dept, is still investigating whether plan violates anti-trust laws. Latest survey by Woodbury College, Los Angeles, based on 10,000 interviews in Los Angeles, San Francisco, San Bernardino, Portland, Denver and Fresno, found: (1) Subscription TV seems to be more welcome than theatre TV — with 50% to 63% (depending on city) willing to pay $1 for top movies and major events on former, while about one-third thought they’d pay $1 for theatre-TV showings. (2) In non-TV areas, desire to have TV was evinced by 57% to 62%, with 47% to 66% willing to buy sets; 55% of Portland respondents and 62% of those in Denver said they’ve seen TV. (3) In Los Angeles, 16.1% own Admiral sets, 13.8% Packard-Bell, 13.2% Hoffman; in San Fran- cisco area, it’s 16.5% Hoffman, 14% RCA, 13.2% Admiral. (4) Wrestling, Milton Berle and Groucho Marx are favor- ite shows. (5) TV’s moral standards are considered some- what higher than those of movies; about half of respond- ents feel TV should have equivalent of movie morals czar. (6) About two-thirds would like to see station devoted solely to educational programs. (7) About one-third find TV beneficial to children, and approximately 10% find it harmful, with mysteries considered worst offender. Average daytime TV viewer in New York spends 10 hours Mon.-Fri. watching programs between 9 a.m.-5 p.m., according to third study on subject by Advertest Research, New Brunswick, N. J. Based on May 4-15 interviews with 765 women, study also shows: (1) Length of ovmership has no effect on daytime viewing; those who have owned set more than year watch longer than those who own sets less than year. (2) Almost 95% of dasrtime viewers watch mostly noon-5 p.m. (3) Daytime viewer watches average of 4 hours, 23 min. at night, compared to non-daytime viewers, 3 hours, 24 min. at night. (4) Daytime TV “homes” numbered 880,750 in May, compared to 631,000 in June 1950, 147,500 in March 1950. (5) Of non-daytime viewers, 50% listen to radio during day. Interest in community antennas (Vol. 7:2,7, 11,21-24) has brought Bell Telephone companies 70 inquiries con- cerning pole rentals, according to AT&T spokesman. He says Bell system once considered providing complete serv- ice itself, but shelved plans because of materials short- ages. Competition among equipment manufacturers has grown so great that WESB, Bradford, Pa., seeking to es- tablish service, reports it has been approached by Jerrold, RCA and Technical Appliance Corp. (Sherburne, N. Y.). Latest multiple antenna equipment offered, designed for hotels, etc., with 64 receivers or less, is RCA’s SX-7C (7 channels) and SX-4D (4 channels). WTTV’s 660-ft. tower on outskirts of Bloomington, Ind., authorized recently for relay use (from Cincinnati), is intended for station itself, eventually, move to be ef- fected whenever FCC permits. Station also plans to in- crease height of relay tower at Columbus, Ind. OUTPUT WAY DOWN BUT FACTORY STOCKS UP: Trends aren't easy to discern these summer dog-days, period of TV-radio plant shutdowns for annual summer vacations. Nor is it possible as yet to calculate, with positiveness, effects of Korean truce. TV-radio industry is still preoccupied, at moment, with getting rid of its . bloated inventory, still hoping against hope for upturn and "normal" fourth quarter. Main encouraging sign was improvement in June retail sales — so good for [ one brand manufacturer that he tells us his wholesale-retail inventories as of June 30 were down 50% in units and 56% in dollar value from low point of May 1; also ! that he now has virtually no factory inventory. ^ ^ But over-all picture for TV-radio trade still isn't good. RTMA this week i reported production plionging to 27,109 sets for week ending June 29, just preceding start of most vacations. This was lowest week of year so far, lowest since first t vacation week in July 1950. Factory inventories climbed to new high of 725.909 units as June ended, peak ‘ of steady increase during each of the 5 June weeks: 595,655 as of June 1; 621,299 , ; June 8; 669,950, June 15; 715,052, June 22; 725,509, June 29. Thus 5-week June saw 504,592 TVs produced, as against 522,000 same month 1 last year — but last year at this time buyers took every set as fast as produced. Radio production fell to 229,715 units (157,789 private label) week ending June 29, of which 155,549 were auto radios, 47,630 home receivers, 26,534 portables. ; Radio inventory June 29 was 419,002 vs. 417,155 June 22 (Vol. 7:26). June's total radio output was 1,429,495 vs. 1,559,000 in June 1950. For first 6 months of 1951, TV production totaled 3,312,557, somewhat ahead of the 3,136,300 recorded for first half 1950. Radios were 8,374,741 vs. 7,333,600. Of 1951 TV production, 2,196,669 were produced in first quarter, 1,115,688 second, compared with 1,605,200 in first quarter last year, 1,531,000 in second quarter. Federal Reserve Board continues firm against any relaxation of Regulation W, but Congressional pressures may result in easier terms for TVs along with autos and ■ other goods. House bill due for vote next v;eek specifies down payment of 15% and 18 months to pay, which Senate-approved bill does not. Treasury is still asking for stiffer excise taxes, citing TV as example how present 10% excise amounts to only 6% at retail level as against 17% on admissions, toilet goods, luggage, etc. House bill makes no changes in present 10% excise. AFTER KOREAN CEASE FIRE, WHAT? Aftermath of Korean peace could bring, in opinion of several major manufacturers engaged in both military and civilian electronics: Period of deflation, marked by (1) stretching out of govt, contracts, and (2) continued poor civilian business. If materials restrictions are relaxed, if materials get cheaper, then there may be cheaper TV-radio receivers. But that would be meaningless if unemployment results and buying power disappears. Electronics industry leaders, no less than those of other arms industries, see plenty of trouble ahead for everybody if Russians are pulling tricks to get us to disarm or slow down rearmament. They go along with Defense Mobilizer Wilson, whose second quarterly report to President July 4 warned against any letdown. Mr. Wilson reasserted that output of consumer durables "will be reduced" in third quarter, but he stated that because of high first-quarter production "supplies available to consumers during remainder of this year will still be high." He did not 7 8 mention TV or stick out his neck, as he did in last report, when he estimated that TV output this year would be 7,000,000. He said; "Military production is still for the most part in the ’tooling up' stage — the period during which orders are placed, blueprints drawn, subcontracts worked out, and production lihes organized... "The military production program is highly selective in character. It is heavily concentrated in those items in which obsolescence has taken the largest toll on our World War II surplus stocks — and is therefore particularly heavy in air- craft, combat vehicles and electronic equipment. The program also emphasizes new weapons, such as guided missiles, and items for which long periods of time are re- quired to organize production and to subcontract for component parts." * t * 4: Despite Wilson's warnings, it's generally expected that any cease fire will affect military procurement and production. Tempo may slacken a little, arms appro- priations may be whittled down, since we will no longer be fighting a war on top of our rearmament effort. This could mean lesser degree of tightening of materials availability during fourth quarter — but any actual loosening still appears to be out of the question. Some NPA officials feel best that civilian industry can hope for in fourth quarter is same amount of materials as in third quarter — but this is pure conjecture. Less metals are likely in fourth quarter, as military programs reach the production stage. ELECTRONICS-FASTEST GROWING INDUSTRY: Riding TV boom, electronics has leaped in 3 years to major industry rank — and "at the rate it is going... will some day crowd the dynamically expanding chemical industry as the premier industry in the second half of the century. " Thus Fortune Magazine for July evaluates "The Electronics Era" in exciting and well-dociimented article. Today, electronics sustains estimated $2.5 billion industry, says author Lawrence P. Lessing, whereas in 1940 it barely went beyond $500,000,000 [of which about $175,000,000 represented factory value of radio receiver output — TV being then virtually non-existent]. With defense orders, factory output should be worth $5 billion next year. Fortune reckons, and "in any all-out war that would be run up to $10 or $15 billion a year, greater than the whole aviation industry and 3-4 times the electronic peak in World War II." Other highlights from Fortune article; New electronic industries have sprung up like weeds — as exemplified by aviation's heavy preoccupation with electronics (Vol. 7;4). One-third to half the cost of military aircraft is in electronic equipment, and aircraft firms now have "electronic orders running into the hundreds of millions. . .Bendix alone has backlog of $475,000,000." But TV industry's woes are just beginning. Trade slump will be followed by lag between material shortages and defense production. Defense business this spring ranged "from less than 5% for RCA to about 25% for GE's electronics dept." And these dim prospects lie ahead for TV-radio manufacturers — TV production will be cut "at least in half" by fall, when defense program will show its first real impact. Cut won't be forced by direct defense business, though, but "by the increasing pinch in nickel, cobalt, tungsten and steel for other defense needs and stockpiling." Defense orders will bypass most of TV industry. "Even when defense produc- tion of electronics hits its stride — about March 1952 — it will not employ much more than 15% of the industry's capacity. Many makers of radio and TV receivers only, therefore, do not have enough defense orders to take up the forced cut in civilian production. "Heavy military business has gone outside the industry proper to such specialists as Western Electric, Federal Telephone & Radio, Sperry and the aircraft companies. And the big orders in the industry have gone to such basic companies as 9 GE, Westinghouse , Raytheon, RCA and Sylvania, having engineering and research staffs big enough to handle heavy engineering requirements of military electronics." "A tiny bombshell." says the v/riter, threatens technical revolution in elec- tronics' most basic department, the tube industry. Shaking industry's foundations is the little transistor, which can be housed in cartridge the size of a pencil eraser and can do most of the things a vacuum tube does — but with no vacuum, no glass tube, no heat required, and practically indefinite life. "More revolutions of profound impact on industrial society" are in progress through electronics than through any other technology. Impact may be strongest in these 4 new growth areas ; (a) mobile 2-way radio, (b) microwave relay, (c) indus- trial instruments and controls, (d) computers or "electronic brains." Topics 8e Trends of TV Trade: Their passing has gone almost unnoticed — but fact is that, one by one, quite a few small TV manufacturers have quietly been giving up the ghost. Many think more will have to do so, consider- ing hard times now facing an industry that was riding high and handsome this time last year. In compiling directory of Television Receiver Manu- facturers for our semi-annual TV Factbook No. 13, to be published July 15, we come up with only 91 companies claiming to be making TV sets, plus 13 TV-radio manu- facturers in Canada. This compares with 98 in Factbook No. 12 of Jan. 15, 1951, well over 100 in early 1950. No brand-name manufacturer has disappeared from rolls, but over last 6 months such names as Altec-Lansing, Natalie Kalmus, Mercury, Reeves Soundcraft, Rembrandt, Tru-Vue, U. S. Television, Vidcraft have disappeared as set makers, among others. None ever did cut much ice in receiver production, and Vidcraft was among the several which since start of year have gone through bankruptcy proceedings (Vol. 7:26). Lists of 37 picture and 11 i-eceiving tube manufac- turers remain virtually unchanged, except for addition of Westinghouse, still making ready. One copy of the semi-annual Factbook, whose lists of telecasting stations in operation or applied for are kept up-to-date with weekly Addenda, will be sent to each sub- scriber to the full TV services of Television Digest at no additional charge. Extra copies are available to all sub- scribers at $2.50 per copy. Volume carries no advertising. RCA entry into white goods field, also other appliances, subject of published reports this week, brought statement from president Frank Folsom that “RCA is always study- ing new fields and new products” but that “we couldn’t do anything about new lines now, even if we wanted to, in view of materials restrictions.” Merchandise-wise Mr. Folsom, onetime Montgomery Ward executive, was said in reports to be looking for new items to counterbalance seasonal trends in TV-radio-recording lines. Plant Expansions: GE announces plans for 150,000-sq. ft. electronic tube plant at Anniston, Ala., costing $6,000,- 000, employing 2000, to be ready early next year; tube di- visions mgr. J. M. Lang said it will permit further concen- tration on specialized tube types . . . GE’s subsidiary Pre- cision Laboratories Inc., Irvington, N. J., July 5 announced new 20,000 sq. ft. plant about 12 miles west of Newark, 5 miles from present factory, to make metal parts for TV, radio, other tubes; it will double Irvington factory’s ca- pacity, said E. L. Hulse, mgr., components div. Picture tube sales continue to reflect low set produc- tion rate. RTMA reports May sales totaled 229,250, com- pared with 278,955 in April, 608,396 in March. Value of tubes was $5,120,553, 80'"/; were 10 & 17-in. rectangular, and 1914 were 24 & 30-in. Year’s total to end of May was 2,330,998, worth $61,882,188. Trade Miscellany: Sylvania’s “mystery” picture tube device for greater viewing comfort (Vol. 7:25) may have rival in new GE picture tube promising greater contrast; secret is “transparent” phosphors heightening blacks on face of tube . . . Scott Radio third to announce 24-in. re- ceiver (others are GE, Stromberg) — out w’ith console called “Wellington” with proposed list of $645, including tax and warranty . . . DuMont’s Ernest A. Marx, gen. mgr., re- ceiver sales div., recently returned from TV suiwey abroad, is author of roundup in July 3 Retailing Daily, providing invaluable data to firms interested in export markets. It details transmission standards, type of electric current, currency situation in 16 different countries . . . Standard Transformer Co., 3580 N. Elston Ave., Chicago, has new TV catalog listing about 1500 models and chassis made under 79 brand names . . . Pittsburgh Steamship Co.’s 7 ore boats plying Great Lakes equipped with TV sets, tests having proved reception in many areas excellent . . . RTMA has asked Govt, to protest trade-marking of word “elec- tronic” in Chile, being proposed by Compania Electro In- dustrial Ltda., Santiago, claiming it’s a dictionary woi’d derived from generic word electron. Merchandising Notes: TV servicing eventually will be like automobile servicing, customers paying for specific jobs — and the business can be profitable under good man- agement, sound accounting system. That was gist of June 26 NARDA convention speech by Crosley sales v.p. W. A. Blees, himself a veteran of automobile business . . . One- day “cash and carry” TV set servicing is unique setup in- stituted by dealer Mort Farr, Upper Darby, Pa., who is also NARDA president. Idea is to have customers deliver set on way to work in morning, pick it up on way home — saving both time and cost of transpoi’tation . . . TV dealers advertising sets not actually available for sale are liable to prosecution, says New York Better Business Bureau, quoting Markets Commissioner Masciarelli and citing re- cent fine of $300 against Dynamic chain for such offense. Industry v/as urged to adopt own fair practice rules . . . Capehart-Farnsworth’s export sales mgr. A. J. Gilardi reports order for 11,000 TV sets from Compania Standard Electrica, S.A., of Argentina, also affiliated with IT&T; Capehart now appointing distributors in various Latin American countries. Improved TV-radio sales by New York dept, stores in June were noted in monthly Herald Tribune survey, re- porting 7 out of 11 registered increases over June 1950, wdth 82'/f best gain ; it was month of New' York’s price war, W’ith over-all sales gaining 14V( ■ New' transistor, device replacing vacuum tubes for some purposes, w'as announced by Bell Labs this w'eek. Called “junction” transistor, it’s claimed to be capable of taking 1 microwatt, amplifying it to 1 watt. Gates Radio, Quincy, 111., entering TV transmitter field, will supply vhf & uhf equipment, including camei'as, antennas, etc., of other companies. 10 - .Vmon}' the 100 top national advertisers in the 4 major media during 1950, according to Bureau of Advertising, American Newspaper Publishers Assn., RCA ranked 26th, spent $6,509,622 (newspapers $3,168,624, general & farm magazines $1,522,691, network radio $906,155, network TV $912,152.) Philco ranked 28th, spent $5,951,494 (newspapers $2,373,382, magazines $948,418, network radio $1,618,266, network TV $1,011,428). Admiral ranked 38th, spent $4,542,170 (newspapers $2,724,631, magazines $1,023,659, network radio $34,347, network TV $759,533). Motorola ranked 48th, spent $3,399,657 (newspapers $2,046,758, mag- azines $1,066,549, no netwoi-k radio, network TV $286,350). Zenith ranked 92nd, spent $1,927,219 (newspapers $792,991, magazines $1,134,288, no radio or TV). Note: Foregoing does not include dealer cooperative advertising, trade papers, national radio and TV spots. GE (ranking 10th) is listed with $694,933 expenditures for network TV, $39,650 for network radio; Westinghouse (32nd), $673,920 & $152,895; Avco (45th), $270,795 & no radio — but the ad expenditures of these big advertisers cover big lists of appliances generally, not just TV-radio apparatus. Canada’s credit restrictions, like those in U. S., are blamed for slowdown in demand for TVs, with May pro- duction 75'/i down from April, 82% from March. Radios dropped, too, down 42% from April, 50% from March. Canada requires one-third down payment, 12 months to complete installments. According to Canadian RTMA, 1116 TVs were sold by factories for $555,257 dui'ing May, with inventory of 8335 units as month ended. Table mod- els under $400 list totaled 305, over $400 totaled 418. Con- soles under $500 totaled 34, over $500 totaled 332. TV- phonos numbered 27. Windsor area (Detroit) took 37% of May sales, Toronto-Hamilton 35%. First 5 months of 1951 cumulative unit sales were 19,577, valued at $10,752,- 979. Cumulative TV sales to May 31 wei-e 57,400 valued at $27,029,562, with 43% in Windsor area, 35% in Toronto- Hamilton, 17% in Niagara Peninsula, 5% in other areas. There’s no FM receiver shortage, say manufacturers — but FM broadcasters insist there is — leading joint RTMA- NARTB FM committee meeting in Washington June 26 to agree that broadcasters will advise manufactui-ers when their areas run shoi’t. Manufacturers’ survey showed 145,059 AM-FM sets in distributor inventories, 42,872 at factories as of May 25. During May, radios with FM turned out by factories totaled 75,337, 12% of all home sets. Demand for FM is greatest in South-Southwest. At recent Chicago furniture mart, radios were reported selling fairly well, at least by contrast with TVs, with AM-FM table models and portable radios in best demand. But con- sole sales were down. Color impact on trade, according to Retailing Daily roundup, has brought these reactions, among others: (1) Sales resistance because of color, still not very prevalent, is generally countered by salesmen who tell customer adapter and converter may be added when desired — at total price no greater (perhaps less) than that of complete color set which won’t be here for some time. (2) Sales of small-screen trade-ins may improve because of presumed easier convertability to color. Export market continues sizable factor in radio econ- omy, amounting during April to $12,150,159 vs. $5,840,072 in .A.pril 1950, reports Commerce Dept.; included were 7545 radios at $1,291,226, 6566 auto sets at $208,991, transmitter & receiver parts and accessories valued at $1,456,424. No TV exports were listed. Color TV imitations keep cropping up, most persistent being rash of transpaj-ent colored films offered as equip- ment “bringing color to TV.” In Huntington, W. Va., some 1000 people crowded Fiankel’s Appliances Store to see devices shown by Marvel-Lens Industries, Philadelphia. Financial & Trade Notes: Though T\' business is slow and Belmont plant in Chicago has been operating at low level, Raytheon’s fiscal year ended May 31 saw sales and eai-nings higher than for any year save during World War II. Company, moreover, has more than $100,000,000 worth of govt, orders on books, repoi-ts president Charles F. Adams Jr. Full-year sales figures haven’t yet been re- leased, but during 9 months ended Feb. 28 sales were $64,- 000,000 compared with $39,000,000 in same 9 months a year earlier and $59,533,000 for full year ending May 31, 1950. Despite higher taxes, net profit for year is esti- mated in excess of $2,000,000, compared with $935,413 (49(‘ a common share) the preceding year. Miscellany: ABC directors Wm. Zeckendorf, New York realtor, and Earl E. Anderson, a v.p., sold 2000 and 1900 shares, respectively, in May — all the former’s holdings, and leaving Mr. Anderson with 6600 shares . . . P. R. Mallory & Co. sales believed to have exceeded $24,500,000 for 6 months ended June 30, reports Wall Street Journal . . . Avco (Ci-osley) has borrowed $10,000,000 to finance present and anticipated defense production, 3%% loans to Sept. 1, 1970 negotiated with Prudential and Metropolitan insurance companies through Emanuel, Deetjen & Co. and Lehman Brothers . . . Net income of WJR, The Goodwill Station Inc. (Detroit) for quarter ended March 31 rose to $165,382 (32r a share) from $152,696 (30(') for same period last year. Glowing report on CBS by Thomson & McKinnon, New York stockbrokers, calls it “quarterback in a gro\vi;h in- dustry,” says it’s “calling the signals” and points to its “cornei-ing of the Sunday night radio time with a galaxy of performers,” then the introduction of LPs, color victory before Supreme Court, initiation of reduced radio time rates, acquisition of Hytron. Production of 2,200,000 to 2,500,000 TVs during second half of 1951, making nearly 6,000,000 for year, is foreseen by Packai-d-Bell executive v.p. Robert S. Bell. In talk to Los Angeles Security Analysts Society June 27, he said he thought one or two good sales months could clear out “present 1,500,000 total inventory,” revealed Packard-Bell has $8,500,000 in govt, contracts. AFL Electrical Workers Union, Local 1031, has sent letter to President Truman blaming layoff of some 13,000 TV-radio factory employes in Chicago area on FCC freeze. Regulation W, lack of defense contracts. Trads Parsonals: Robert Pa.xton, GE v.p. in charge of manufacturing policy, named executive v.p. to succeed Hardage L. Andrews, retiring after 41 years service . . . William V. O’Brien, ex-commercial v.p. & asst. mgr. of marketing policy, promoted to commercial v.p. & mgr. of marketing, GE apparatus marketing div., succeeding Ches- ter H. Lang, now public relations v.p. . . . W. Benton Har- rison Jr. named treasurer of Sylvania, succeeding 5Iax F. Balcom, who now devotes full time to post of chairman . . . Fred Abrams, recently working on govt, contracts, pro- moted to head new Emerson Radio parts sales-seiwice div., assisted by William Kay, parts dept, mgr., and Harold Bernstein, service dept. mgr. . . . Sydney .1. Mass named sales mgr., Edmund D. Lucas Jr. adv. -public relations mgr., Jerrold . . . Tyler Nourse, ex-Broaclcastiv g Magazine, joins information staff of RTMA, Washington . . . Charles An- dress has resigned as sales mgr., Admii'al-New York . . . William C. Grunow, 58, founder with B. .1. Grigsby of old Majestic Radio and in late ’20s one of i-adio industry’s first millionaires, died July 6 of heart attack in Hotel .Stevens, Chicago. lie made and lost several fortunes, lately has operated prosperous poultry farm at Lake Geneva, Wis. 11 Mobilization Notes: Sizzling report of Senate Armed Services “watchdog” subcommittee makes it clear that ! tungsten is one of most critically short materials, pins blame directly on Army and Munitions Board (not present board headed by John D. Small). Explosive 55-page report, issued July 4, says nation’s I supply of the strategic metal used in armor-piercing shells, jet engines — and indispensable in electronic tubes — “is lit- tle short of desperate . . . The harsh, inescapable fact is that we can foresee nothing short of a miracle that will produce enough tungsten for the combined essential needs of ourselves and our allies.” Stockpiles have gone “down to the danger point” be- cause Munitions Board failed to buy up and store ade- quately from July 1946 to July 1950, report says, and as a result “the United States and the free world stand on the verge of tungsten starvation.” There won’t be enough to go around, report predicts, even if production is in- creased, more efficient methods found and non-essential uses slashed ruthlessly. Senate group estimated U. S. civilian requirements at 14-15,000,000 lbs. a year. Domestic output for 1951 was forecast at 5,450,000 lbs., imports at 7,000,000 lbs. — ^leaving potential deficit of 2,000,000 lbs. for civilian needs alone, not considering military or stockpile requirements at all. Far Eastern warfare cut off Chinese and Korean supplies of tungsten. Korean mines are now being reopened, but it may take years to get them back to full operation. Report climaxes period of increasing concern by govt, control officials over tungsten situation. Tungsten pinch : hasn’t been felt yet by electronic tube industry because of long lead time involved in drawing the metal into filaments, but production planners who are hep to electronics indus- ! try are forecasting it will be by far most serious shortage i to hit civilian TV-radio. NBA officials are predicting tube ' makers will really begin to feel tungsten shortage some time in fourth quarter. August allocation of tungsten to tube industry, made this week, was about the same as July’s — but more of it will be used to make military tubes, less for civilian tubes. At the moment tube makers are more worried about nickel shortage than about tungsten. “Watchdog” committee urged: (a) Prompt decision by Defense Dept, on feasibility of new process for making tungsten carbide, (b) Immediate Munitions Board author- ization of tungsten metal powder and tungsten carbide stockpiling, (c) Govt, be made sole importer and reseller of foreign tungsten, (d) Program to stimulate foreign production, (e) Determination of whether custom mills and a retreatment plant are needed. ^ ❖ Appeal for more copper by NPA Electronics Div., to be used for essential civilian electronic products under CMP (Vol. 7:26), was granted by DPA July 5. CMP 1 programs in electronics industry originally had been al- I lotted 24,360,000 lbs. of copper, but appeal provided 750,000 more. In addition, DPA shifted copper allocations from some electronics programs to others where allotments were i| seriously short — resulting in about 3,000,000 lbs. extra near-by trees took on completely black coloring." RETAILING DAILY (Martin Rosenblum) ; "Ma j or improvement . . . was the absence of :! smear when a subject on the screen moved quickly. However, by and large, the pic- . tures in color appeared hazy, and at times, lacked adequate detail. The colors them- i I i - 6 - selves were not as bright and vivid as those produced [by CBS]... In an outdoor scene, the colors didn't appear to be true, with trees in the background much darker than nature has made them. The blue sky was washed out and at times appeared green." NEWSWEEK ; "RCA showed a picture that, compared with CBS's, seemed to have a greater color fidelity (blues rarely turned into greens), less reflection (skin tones were a mite better) and, to the layman's eye, was a little softer." * * * ♦ VARIETY (George Rosen) ; "Vast improvement ... So much so, in fact, that to the casual viewer... it suggested anew that the ever-recurring RCA vs. CBS controversy could conceivably be headed back to the FCC's doorstep for re-examination and re- appraisal. . . "Despite the unquestioned refinements achieved in the past few months... there were equally apparent weaknesses and drawbacks in the transference to tint, with occasionally not much more than a pastel quality brought to screen surface." BILLBOARD (Joe Csida) ; "If Frank Folsom and his RCA gang are able to deliver the same color and monochrome signal when these field test electronic, compatible shows are carried on Channel 4 in New York — and later in other cities on the cable — as it delivered at this closed-circuit preview, CBS and its field sequential adherents are in for the struggle of their lives. "The color picture ranged from fair to excellent, with more than 75% of it in the latter category. The black-and-white picture. . .was far better than any mono- chrome this reporter has ever seen." WASHINGTON POST (Sonia Stein) ; "After last Monday's showing. I'll acknowl- edge that RCA has color — which it could produce for mass use sometime in the future for some unknown price. The color it produces is no better than, and probably not as good as CBS color. That RCA can produce an acceptable black-and-white picture from a color show is important, but obviously more important to other people than to me. . .Monday ' s press demonstration. .. indicates that RCA [is] now able to produce colors which appear as natural to the viewer as do the CBS colors — at least until the viewer begins to wonder why there's so little clear yellow in the RCA color pic- tures. Since color memory is considered by experts to be among our shortest, it is hard to carry the true subtleties of both systems in the mind's eye very long." WASHINGTON STAR (Harry MacArthur) ; "Might be called the best color TV yet seen... Flesh tones are about the only hint you have v;hen you see only the picture, and those seen yesterday [were] the most natural, most life-like yet seen. "Another hint of the RCA system's color fidelity could be seen during the outdoor scenes, when the camera picked up a row of breeze-swept trees in the far background. The deep green of the foliage and the pale green of the underside of the wind-turned leaves were as true-to-life as any you ever saw without looking at a real tree." ♦ ♦ ♦ ♦ Reaction of manufacturers was one of unrestrained enthusiasm. They grinned throughout programs, erupted into spontaneous applause after the demonstrations. Generally, they feel faith in industry engineers has been vindicated. Some opinions, as gleaned by ourselves and other reporters after several of the demonstrations; PHILCO ; "This is terrific," said president Wm. Balderston, "It's out of this world." Chairman Larry Gubb nodded agreement, and TV-Radio Division president Larry Hardy remarked: "Tremendous progress, tremendous." Could you sell this sort of thing? he was asked. "Darn right," he replied. Philco engineering v.p. Leslie Woods said; "This is a remarkable progress report. There are still some obvious defects, but none that are insurmountable." Executive v.p. Jimmy Carmine was less restrained; "This is 10 years ahead of a year ago. The long shots today were clear. No 25-cycle flicker. No color breakup. The CBS pictures are often off focus, with only its closeups really clear. There is no question but that electronic TV can be fully perfected." I - 7 - I DuMONT: Always bluntly outspoken. Dr. Allen DUiMont asserted, "This is on the !i right track. Columbia now ought to pick up its marbles and quit. This is better I than CBS right now. It's good enough to start commercial operations immediately." 1 i DuMont research chief Dr. T.T. Goldsmith said : "RCA has done a wonderful j ob i|: in getting a color TV camera into the field for remote shots. It's a real step for- I ward. I v/as impressed by the brightness, definition and fidelity of the big 21-in. j tri-color tube... great promise for the big-picture, direct-view tube of the future." I HAZELTINE; "This is a great step forward," said president Jack Binns. "The ] color is very good, particularly the rapid motion, and there was no color breakup at j all. The compatible color system has got to win for it is in the public interest." I Engineering chief W.A. MacDonald was also enthusiastic, said added refinements will i make it impossible to reject an electronic system. MOTOROLA ; "I'd have no hesitancy," said president Paul Galvin, "in marketing this color receiver now. From a picture standpoint, I feel it is ready for the FCC, but I haven't spoken to my engineers as yet." Said v.p. Robert Galvin, "I was very pleased. The color pictures were excellent and the black-and-white fine." GENERAL ELECTRIC: "Excellent," said Dr. W.R.G. Baker. "Not only the color but the black-and-white was outstanding." He made it clear, though, he thinks an all-industry system, endorsed by NTSC, is what finally should be brought to FCC. CROSLEY ; Radio products manager W.H. Myers remarked on the "tremendous im- provement" over the last demonstration. "This is unquestionably the best color show I have ever seen. We should get it out to the public as soon as we can." EMERSON ; President Benjamin Abrams thought show "very good and ready for the FCC right now." But, he added, "I'd like to see the two systems side-by-side." HALLICRAFIERS ; Executive v.p. Ray Durst said, "We thought it was particu- larly good, especially the high fidelity during rapid movement. Compatibility is the thing that impresses us the most." Sales chief R.J. Sherwood said; "Remote control 1 pickup and the tremendous action, with the colors staying true, were remarkable per- formances. Anybody who doesn't like compatible color needs his head examined." * There were others too numerous to chronicle, including veteran parts makers like Leslie Muter and Robert Sprague, past and present RMA leaders — and their enthusiasm was unrestrained. Some of the truly "forgotten men" of the color controversy, the telecasters, vitally affected but staying out of the controversy so far, attended several dem- onstrations. Telecaster reaction was almost universally enthusiastic, too, but with their traditional wariness of FCC they didn't want to be quoted. For list of those attending, see page 10. THEATRE vs. HOME TV-BATTLE JOIHED: TV set manufacturers struck back this week at theatre TV's threat to deprive them of one of their biggest selling points — top- notch sports events in the living room. j Nine major set makers, under the aegis of sports-conscious DuMont Network, ! snatched video rights to July 18 Ezzard Charles-Joe Walcott heavyweight championship ' fight from under noses of theatre interests. I Riding high on the heels of 5 highly successful exclusive theatre-TV bouts !| (Vol. 7:23-26), each of which cost them a token SlO.OOO, theatre interests upped the : ante to bid $65,000 for the championship event in Pittsburgh. ; . But set makers, through DuMont, bid SlOO.OOO for TV rights — with another ' $50,000 paid by Pabst for radio rights (on CBS). International Boxing Club, which ; turned down big money from prospective TV-radio sponsors for last 3 fights — and in ; return received a less-than-expected compensatory hike in gate receipts — apparently couldn't resist the higher bid. I Theatre interests, looking to 18-theatre hookup for the bout, evidently felt it was their turn to lose money when they made the $65,000 offer — since 18 theatres i| would have to charge close to $2 admission to pay for TV rights alone, not to men- - 8 - tion regular expenses, film rental (if movie is shown along with fight), cable and technical costs — or the little matter of profit. Latest shot in battle of free-TV vs. fee-IV was admittedly an attempt by set makers to hypo sagging sales by assuaging fears of sports fans that prime sports events had been removed forever from the armchair arena. Bout will be carried by 40 TV stations, with Pittsburgh and Johnstown, Pa. blacked out. Participating in sponsorship will be Admiral. Crosley. DuMont . GE, Motorola. Philco . RCA, Sylvanla. Westinghouse. Now the battle has been joined. TV manufacturers are looking for other big athletic events to "buy away" from the theatres. Both home and theatre-TV promoters have their eyes on September's Joe Louis-Ezzard Charles and next Randy Turpin-Sugar Ray Robinson matches. Bidding should be spirited. * * * * Another facet of theatre-TV-vs. -home-TV bears watching: Rivalry for network cable-microwave facilities. If and when theatre-TV webs are firmly established, home TV networks are going to find it harder to clear time with AT&T's long lines. Conflict for cable is inevitable, AT&T spokesman told us. "In many cases," he said, "we're now allocating time among the 4 networks. If we have 5 or 6 cus- tomers for those facilities, it will mean less time for each of them until we can install more facilities — and that takes time." Surge of orders for theatre-TV equipment was one result of successful boxing shows. RCA reports well over 100 orders, with "very big pick-up" following theatre- aired bouts. RCA ran double-spread ad in July 14 Motion Picture Herald, pointing to success of theatre bouts and advising: "Order your RCA theatre TV. ..NOW. " New equipment is being developed to supply growing demand of theatres, large and small, for projection TV. General Precision Laboratory, long a strong propo- nent of Paramount's film-relay TV, this week announced new direct projection set. And Skiatron (Subscriber-Vision) president Arthur Levey says he'll have "Theatre- vision" projection units to rent to small houses within a month. XND-THE-FREEZE' DRIVE IN HIGH GEAR: FCC whipped out 5 TV allocations actions this week, did much as expected by: (1) Proposing to drop oral hearing (Vol. 7:25-27), thus hasten freeze end. ■ (2) Giving TV 470-500 me band, making total of 82 channels — 12 vhf, 70 uhf. i (3) Reaffirming its legal authority to fix allocation plan, city-by-city and i channel-by-channel, in its rules, subject to change only by rule-making procedures. Deletion of oral hearing isn't final yet, is still "proposed". What FCC did ; was to call July 20 formal pre-hearing conference of parties or their attorneys to i see whether there's overwhelming support for plan. j So far, only NARTB-TV (Vol. 7:27) and handful of parties have petitioned ^ for new procedure. Commission wants more, fears being tagged "arbitrary" imless opposition is miniscule. * If FCC considers support inadequate, it says it will go ahead with oral ; hearing, as planned, to start on July 50 instead of previously-set July 23. ' Commission will be open to suggestions during conference, but it obviously ] considers its plan a good one. In essence, plan would permit all parties who have - filed comments so far to file additional supporting material. Only oral presenta- * tion possible would be cross-examination — and then only if "it appears relevant ' factual issues cannot otherwise be satisfactorily resolved." No exceptions are contemplated. This includes DuMont, which insists its ' nation-wide plan can't be presented properly except by oral testimony. Educators. 1 too, may object, but their attorneys haven't yet made up minds. | No deadlines for filing of written comments are suggested by FCC. NARTB-TV thinks 30 days for original comments, additional 30 for oppositions, would be ade- ’ quate. Attorney George Sutton, speaking for number of clients, suggests 45 to 60 days for each period. 9 Addition of 470-500 me band gives TV 5 more uhf channels — which may well have gone by default if a few industry folk hadn't got concerned at last minute. Reason given for assigning band to TV, rather than to common carrier, is simply that TV has greater need and common carrier can be placed elsewhere in spectrum. Highly technical legal points upon which FCC decided it has authority to fix TV allocation plan in rules and to reserve education channels need no elaboration. Ruling can't be appealed now, but many attorneys feel that someone will take it to courts eventually. Commission went out of its way to show "we ain't scared," saying: "It is obvious enough that if we are to perform our duties properly we can give no weight to the contention that the Commission should refrain from adopting the rules in spite of its belief that they are both legal and in the public in- terest, because their adoption might lead to litigation..." Comr. Jones dissented, as expected. One of his principal objections is that allocation plan, fixed by rule, appears insufficiently flexible to permit proper use of new knowledge of the art as it develops. "It is obvious that the Commission violated its table of priorities so ma- terially," he added, "that by its own proposed criterion it cannot be sustained in court." This, he says, is indicated by fact that 909 cities are allocated only one channel, 169 would have two, 74 v/ould get three, etc. Actually, commissioners all want to put more flexibility into plan. How this may be done, with fixed rules, has attorneys guessing. Congressional heat about freeze is really on. Sen. Johnson's Interstate & Foreign Commerce Committee this week voting to ask FCC Chairman Coy to report July 18 or 25 on status of freeze, educational channels, a few other issues. Slaiion Accounts: continental Baking Co., filling in va- cationing Garroway at Large period on hookup of Crosley Ohio stations (WLWT, WLWD, WLWC) with Live It Again, described as a “telehistory of bygone days in which film clips and musical numbers are combined to re-create a period,” Sun. 9-9:30, thru Ted Bates Inc. . . . Chicago Symphony will quit radio (WCFL) next fall season, plans 25 or 30-piece TV symphonic group, Rafael Kubelik con- ducting, for placement on WENR-TV, which has sold weekly half-hour series to Chicago Title & Trust Co. . . . Henry T. Campbell Sons Corp. (Sakrete ready-mixed ce- ment) sponsoring Family Handy Man, how-to-do-it house- hold tips, on WJZ-TV, New York, Thu. 10-10:15 p.m., thru H. Lee Hoffman Adv., Baltimore . . . B. F. McDonald Mfg. Co., making safety helmets, goggles and dirt respirators for construction workers, has ordered 5 one-minute films with Careless Charlie and Safety Sam routines from TV Ads Inc., Los Angeles, for placement as sports participa- tions, thru Philip J. Meany Co., Los Angeles . . . Florida Citrus Exchange, Tampa (Sealdsweet fruit juices & con- centrates) has appointed Ruthi’auff & Ryan, N. Y., and California Fruit Growers Exchange (Sunkist lemon juice & frozen lemonade) currently using TV on big list of sta- tions, thru Foote, Cone & Belding, Los Angeles . . . Add to expanding list of beer accounts these users of INS-Tele- news: Jacksonville Brewing Co. (Jax beer) on KPRC-TV, WOAI-TV & WKY-TV; Duquesne Brewery, WDTV & WICU; Dixie Brewing Co., WDSU-TV; Stag Beer, KSD- TV . . . Among other advertisers reported using or pre- paring to use TV: Mawsaid Products Co. Inc. (Titeliner auto-rope lock), thru Ray C. Jenkins Adv. Inc., Minne- apolis; Piatt & Smillie Chemicals Inc. (antiseptic liquid detergent), thru Krupnick & Associates Inc., St. Louis; Minute Maid Corp. (frozen orange juice concentrate), thru Ted Bates & Co. (WCBS-TV); Dow Chemical Co. (Real- Kill bug killer), thru MacManus, John & Adams Inc., De- troit; Bunte Brothers (candy), thru Schoenfeld, Huber & Green, Chicago; Sheraton Corp. of America (hotels), thru BBDO, N. Y.; Rayco Mfg. Co. (auto seat covers), thru Robert B. Grady Adv., N. Y. (WOR-TV); Squirt Co. (soft drink), thru Harrington-Richards Inc., Los Angeles. Network Accounts: Pet Milk scheduled to participate with 2 others, as yet unsigned, in sponsorship of All Star Revue on NBC-TV, Sat. 8-9, resuming in Sept, with Jimmy Durante, Danny Thomas, Ed Wynn, Jack Carson, alter- nating, just before 9-10:30 Show of Shows with Sid Caesar and Imogene Coca; Pet Milk participated in sponsorship of these stars on recent season’s Wed. night Four Star Re- vue . . . Campana Sales Co. (Italian Balm) is first sponsor of Ruth Lyons’ 50 Club which starts Oct. 1 on NBC-TV, Mon.-Fri. noon-12 :30; Campana, thru H. W. Kastor & Sons, bought 12:15-12:30 Fri. segment of show, which will originate at WLWT, Cincinnati . . . Procter & Gamble (Ivory flakes) starting Aug. 7 will sponsor 1:15-1:30 seg- ment of Steve Allen Show on CBS-TV, Tue. & Thu. 12:45- 1:30, thru Compton Adv. . . . Admiral will sponsor annual Chicago Tribune Charities All-Star Football Game from Soldier’s Field Aug. 17 on DuMont . . . Philco resumes Don McNeill TV Club Sept. 12 on ABC-TV, alt. Wed. 9-9:30, thru Hutchins Adv. Co. . . . Wine Corp. of America (Mogen David wine) starts Charlie Wild, Private Detec- tive Sept. 26 on NBC-TV, Wed. 11-11:30, thru Weiss & Geller Inc. . . . Kellogg Co. (cereals) starting July 7 re- placed Victor Borge Show with Tom Corbett, Sjjoce Cadet for 8 weeks during summer on NBC-TV, Sat 7-7:30 . . . Goodyear Tire & Rubber Co. replaced Paul Whiteman Revue for 8 weeks starting July 15 with Goodyear Sum- mertime Revue on ABC-TV, Sun. 7:7:30; Whiteman re- turns Sept. 9 . . . Gruen Watch Co. starts Gruen Guild Theatre Sept. 27 in place of Blind Date on ABC-TV, Thu. 9:30-10, thru McCann-Erickson; show will run 52 weeks. TV is “partly to blame” for slump in weekend bus and street-car business, Minneapolis Street Railway Co. told City Council in requesting permission to reduce service. 10 - PLANS to build new broadcast station facilities during fourth quarter may have to be deferred because of serious shortage of structural steel. So far as telecasters and broadcasters are concerned, that’s crux of DPA’s an- nouncement July 10 that demand for the building steel is nearly double estimated supply for last 3 months of year. Heavy expansion of defense industry will reach building stage by that time, and all users of structural steel will feel tight squeeze. Meanwhile, NPA prepared to toss out construction control Order M-4 (Vol. 7:19-20,22,27) and supplant it with new Controlled Materials Plan regulation. This will mean that, instead of applying for permission to build, potential builders will apply for the steel, copper and aluminum they need. If their applications are accepted, they’re guaranteed the materials they require. If they’re rejected, they can’t get materials — therefore can’t build. NPA announced July 13 that all construction applica- tions must be made on new form CMP-4C, which com- pletely replaces old form NPAF-24. Persons having ap- plications pending on old form are being notified to fill out new one. Commerce Dept, field offices, which had been processing applications involving 50 tons of steel or less, were instructed to send all pending applications to Wash- ington for action. FCC and NPA representatives are continuing talks on construction policy respecting TV and radio stations. Al- though NPA has taken action on several applications by broadcasters, no final decisions have been reached in the FCC-NPA talks. Decision on over-all policy toward broad- cast building is expected soon as result of negotiations. FCC is urged to expedite merger of ABC-United Para- mount Theatres (Vol. 7:21,26) before Oct. 31, in for- mal applications filed July 12 by attorneys Paul Porter for ABC, Duke M. Patrick for UPT. Applications seek ap- proval of transfers of the 5 TV, 5 AM & 4 FM stations in- volved, plus okay on contingent deal for CBS $6,000,000 purchase of WBKB, Chicago, while merged companies re- tain those same call letters for WENR-TV. WBKB’s companion FM outlet, WBIK, would be dropped since both ABC and CBS already have Chicago FMs. Also to be dropped, contingent upon FCC approval of deal, would be new-station TV applications in “freeze file” from UPT subsidiaries in Boston, Detroit, Des Moines and Tampa. Principals are hoping FCC approval will come with- out hearing, but fact that $24,000,000 exchange-of-stock merger is biggest such deal in radio history may impel FCC to go through formality of hearing. Letter of sub- mittal to FCC says basic purpose is “to establish resulting company which can function more efficiently in the public interest”; asserts UPT’s record of accomplishments as- sures building up of ABC “to point of competitive vigor” and to “degree heretofore non-existent”; states funds are available to promote operation of resultant American Broadcasting-Paramount Theatres Inc. “to position of equality with those who now lead in the network field.” In view of fact that ABC has run poor third in radio and TV networking, that its radio operations have been slipping, that its obvious prime assets are its TV station properties, that some have feared new company might let radio slide in favor of TV, UPT counsel’s letter gives FCC this assurance: “We are as fully intent upon improving and strengthening the radio operations of stations and net- work as in making new and important strides in TV.” # * * * More July 1 sets-in-use reported since NBC Research’s “census” of June 1 (Vol. 7:26): Miami 75,000, up 5000; St. Louis 297,000, up 4000; Kansas City 125,047, up 3047; Norfolk 71,600, up 2500; New Orleans 58,565, up 1065; Baltimore 304,418, up 3418. Broadcasters attending RCA color demonstrations in New York this week included: Cecil Mastin, WNBF-TV, Binghamton; M. J. Kallett, Wm. T. MacNeilly & M. C. Fusco, WKTV, Utica; D. L. Provost, WBAL-TV, Balti- more; Wilbur Havens and W. A. Bowry, WTVR, Rich- mond; W. E. Walbridge, WWJ-TV, Detroit; Aldo De Dominicis, WNHC-TV, New Haven; Harry M. Bitner Sr.; WFBM-TV, Indianapolis; Louis Read, V/DSU-TV, New Or- leans; G. E. Yeldell, KSD-TV, St. Louis; Clair McCollough, WGAL-TV, Lancaster & WDEL-TV, Wilmington; J. Leon- ard Reinsch, WSB-TV, Atlanta & WHIO-TV, Dayton; Arden Pangborn, WOAI-TV, San Antonio; H. F. Gross, WJIM-TV, Lansing; Irving Waugh, WSM-TV, Nashville; George B. Storer, WJBK-TV, Detroit, WAGA-TV, Atlanta & WSPD-TV, Toledo; Walter Damm, WTMJ-TV, Milwau- kee; B. J. Rowan & W. J. Purcell, WRGB, Schenectady; A. D. Schrott, WJAC-TV, Johnston; Joe Baudino, Westing- house stations; J. R. Poppele, WOR-TV, New York; Paul Morency, WTIC, Hartford. NARTB’s TV Program Standards Committee, detailed to task of drawing up program code (Vol. 7:25), is headed by Robert D. Swezey, WDSU-TV, New Orleans. NARTB president Harold Fellows said rest of committee will be named this month. It will include, he said, NARTB board and non-board members and network representatives, wdth special attention to geographic representation. Frank U. Fletcher, co-owner of WARL, Arlington, Va., was named chairman of NARTB’s new legal-legislative committee. He’ll represent FM and independent stations. Other mem- bers: Frank M. Russell, NBC v.p., TV & network; Hugh B. Terry, KLZ, Denver, medium-sized AM stations; Robert T. Mason, WMRN, Marion, 0., small AM; John H. DeWitt Jr., WSM & WSM-TV, large AM & TV. Confirmation of Comr. Frieda Hennock’s appointment to New York Federal judgeship (Vol. 7:24-26) is still up in air, though few doubt eventual approval. Senate Judi- ciary Committee named subcommittee to hold hearing, date not yet set. It comprises Sen. Pat McCarran (D-Nev.), chairman; Sen. Alexander Wiley (R-Wis.), Sen. Willis Smith (D-N.C.). Last is former president of American Bar Assn., which, along with New York Bar Assn., is opposing Miss Hennock as “unqualified.” RTMA legal committee to supersede legislative com- mittee, named this week: John W. Van Allen, RTMA gen- eral counsel, chairman; Frederick J. Ball, Crosley; Philip Dechert, Philco; Robert Estes, GE; Samuel E. Ewing, RCA; Irving Herriott, Zenith; Raymond Herzog, Emerson; Ray S. Donaldson, RTMA, ex officio. o Personal Notes: Paul Hollister, ex-CBS v.p., onetime Macy’s advertising v.p., has rejoined Macy’s as corporate publicity advisor . . . Norman Gladney, ex-Franklin & Gladney Adv., named director of newly formed TV mer- chandising div., Bulova Watch Co., handling dealer ad- vertising . . . Ralph W. Hardy, NARTB govt, relations di- rector, elected to board of Assn, of Better Business Bu- reaus Inc. . . . Stanley A. Lomas, chief of TV commercial production dept., Wm. Esty Co., named v.p. . . . Carole Gottlieb, ex-Kenyon & Eckhardt, named asst. TV-radio di- rector, Marfree Adv. Corp, N. Y. . . . Capt. John B. Green, NBC-TV production staff, recalled to active Marine Corps service, assigned to m.c. Marine Corps Review, Fri. 3:30 p.m. . . . Robert J. McAndrews, managing director. South- ern California Broadcasters Assn., elected president of Hollywood Ad Club . . . Arthur Bellaire promoted to head BBDO TV-radio copy staff. Charles Wesley Turner, 39, maintenance supervisor of KECA-TV, was drowned July 7 at Newport Beach, Cal., in attempt to save 7-year-old son. WITH AM'-FM REPORTS 9 CONNECTICUT AVE. N.W. / WASHINGTON 6. 0. C. • TELEPHONE MICHIGAN 2020 Trade Report July 14, 1951 J HO HIATUS YET IN FACTORY INVENTORIES: Those few TV-radio manufacturers who continued producing during first week in July, when most plants closed down for annual vaca- tions (Vol. 7:25-26), turned out mere 12,817 TV receivers, 74,863 radios. Yet factory TV inventories, despite this relatively miniscule production, went up still more — to 759,945 units as of July 6 from 723,309 June 29 (Vol. 7:27). Factory inventories of radios were 406,046, dovm from 419,002 the preceding Friday. Actually, TV inventory estimated by RTMA as of July 6 showed higher gain (some 16,000) than week's output of 12,817, lowest since same 1950 week's 8672. No TVs were made for private label first July week, but 63,722 radios were. Week's radio output broke down thus; auto 62,863, home 9630, portable 2370. It's a seasonally quiet retail market right now, with dealers slowly but surely getting rid of stock while biding time about putting in new supplies. Some say summer TV-radio business, particularly June, hasn't been too bad — indeed, for some it was a bit better than expected. What bothers everybody is Lincertainty ahead — but that feeling is shared in all consumer durable goods fields. Easing of Regulation Vi/, main hope for upturn in late summer and early fall, is still opposed by Federal Reserve Board. Chairman Martin July 11 urged Congress not to tamper with credit controls because, he said, "inflationary pressures, even though abated at present, threaten to reemerge irrespective of Korean developments." Senate-passed Defense Production Act extension provides for easier credit terms on autos. House version, still being debated, includes easier terms for TV-radio and other appliances (Vol. 7:27). House vote has again been postponed, to next week. Judging from temper of Congress toward Administration requests, chances favor retention of provisions easing present credit restrictions. OUTLOOK FOR METALS AND REPAIR PARTS: TV-radio repairmen got their long-sought priority to obtain parts and materials this week (Vol. 6:51, 7:2,10,15) — and DPA hinted the steel-copper-aluminum pinch on civilian manufacturers isn't going to get much worse. As CMP application forms went out for first time to consumer durable goods manufacturers, DPA-NPA administrator Manly Fleischmann assured civilian producers they'll get all the steel, copper and aluminum they need this quarter with which "to produce at permitted levels." Pointing to TV sales slump, Mr. Fleischmann said in response to question at July 10 press conference he couldn't foresee any civilian goods "pinch" this quarter. He feels there'll be "more than enough" to take care of all customers. No sharp cut in supply of the 3 basic metals to civilian manufacturers is contemplated in fourth quarter, the materials control boss revealed for first time. Matter of fact, Mr. Fleischmann said he hopes steel, copper and aluminum will begin to loosen up early next year. As for repairmen, new CMP Regulation 7 appears to give them what they want. It authorizes all types of repair shops to write their own defense priority tickets to procure limited amounts of parts and materials. Maintenance, repair and operat- ing (MRO) supply priorities for all establishments except households (Vol, 7:9) were also brought under CMP this week in CMP Regulation 5. All consumer goods will probably come under Controlled Materials Plan next quarter — but decision won't be announced officially until next month. At present, manufacturers of parts and components used in consumer goods get CMP allotments of the 3 basic metals, but end-product makers must seek their share on "free market". CMP won't solve all of TV-radio 's material problems, though. No matter how 11 - 12 - much copper and steel is available, you can't build a set without tubes which require jiickel and tungsten. These metals are expected to be bigger bottleneck than steel and copper (Vol. 7:16,18,27). As for the truce — if there is a truce — Mr. Fleischmann is one of the few govt, officials who admit the rearmament program will feel its effects. Even on basis of present planning — regardless of any chipping of appropriations by Congress — Mr. Fleischmann draws common-sense conclusion that "if you aren't losing equip- ment in a war, you meet your goal a little earlier." Obviously the goal won't be met this year. But while target date for full rearmament is in 1953, Mr. Fleischmann sees possibility" the effects of truce would be felt next year in form of some relaxation of curbs on civilian production. * * ♦ * Some smaller TV-radio manufacturers may get a break as result of new revi- sion of Direction 1 to CMP Regulation 1. blanketing all very small users of steel- copper-aluminum into CMP. It permits them to assign themselves priorities to buy as much as 500 lbs. of copper, 500 lbs. of aluminum, 5 tons of carbon steel, half ton of alloy steel each quarter — not including metal in parts they buy ready-made. Topics & Trends of TV Trade: Big Music Trade Show in Chicago’s Palmer House, July 16-19, staged annually by National Assn, of Music Merchants, will attract more TV- radio manufacturer exhibitors than did recent Chicago furniture marts (Vol. 7:24) — ^but only a handful are show- ing new models. Roster of several hundred exhibitors, mainly makers of musical instruments and associated equipment, includes these TV manufacturers: Admiral, Air King (now CBS-Columbia), Crosley, GE, Hoffman, Jackson, Magnavox, Majestic, Pathe, Philco, RCA, Video Products, Scott, Sparton, Starrett, Stromberg- Carlson, Sylvania, Tele King, Tele-tone, Trad, Westing- house, Zenith. Radios are also being exhibited by most of foregoing plus Fisher, Jewel, Regal, and there will be ex- hibits by such parts makers as Jensen & Webster-Chicago. Of foregoing manufacturers, only Jackson, Magnavox, Pathe, Scott and Stromberg have stated new sets will be shown, new prices posted. Tele-tone, at Stevens Hotel, will unveil some new sets plus its color converter, a “slave unit” capable of attachment to black-and-white receivers for reception of CBS color — and CBS-Columbia plans Mon. thru Wed. demonstrations of its color system at 10:30 a.m. and 2, 3 & 4 p.m. via closed-circuit transmissions from Pal- mer House exhibition floor to its upstairs Suite 649-650. ^ ^ “Halolight” is what Sylvania calls its finally-revealed device designed for greater viewing comfort (Vol. 7 :23, 25). Utilizing principle of “surround lighting,” engineers de- veloped “cold cathode” light bulb, curved all the way around picture tube. It gives off “soft, cool light” to ease eye’s transition from screen to darker surroundings, in- creases apparent size and clarity of picture. Only 3 top models of Sylvania’s new “Golden Jubilee” line — 20-in. consoles and combinations running $490-$600 — will include device initially. Cost of including it adds $30 at retail. Company has applied for patents, reports no other set makers using it now. One conservative manu- facturer says he’s seen device, considers it “terrific.” 4: ^ 4: Merchandising Notes: Some new models and prices due in next few weeks, including line of 15 Arvin TVs rang- ing from present 8% -in. retailing at $129.95 to 21-in. con- sole at $499.95, to be released at distributors meeting in Moraine Hotel, Highland Park, 111., July 29-Aug. 1 . . . Stromberg-Carlson’s new line includes 17, 19, 20 & 24-in. models, prices to be announced at NAMM show next week . . . Stromberg guaranteeing distributors net prices on all current models until next Dec. 1, has reduced suggested list of 17-in. “Stafford” from $299.95 to $289.95 and “Pem- broke” from $489.95 to $439.95 . . . Jackson reduces 20-in. table from $249.95 to $179.95, console from $299.95 to $199.95 . . . Pacific Mercury has new models ranging from $299.95 to $399.95 ... DuMont’s 30-in. “Royal Sovereign” (Vol. 7:26) presented to President Socarras of Cuba by his ministers for use in presidential palace . . . Goar Mestre, who operates Havana’s CMQ-TV and controls Cuba’s Admiral distribution, says publicity about color TV has been hurting sales of receivers, yet audience is still growing; he plans new satellite stations in Matanzas, Santa Clara, Camaguey and Santiago, which are expected to boom Cuba’s TV sales. First legal ruling on community antennas (Vol. 7:2, 7, 11, 21, 23-24) came from Wisconsin Public Service Com- mission, which this week said it had no power to authorize community systems, adding: “Whatever jurisdiction the PSC may have been given by the Wisconsin legislature has been nullified by complete supervision exercised by Con- gress over transmission by 'TV. This necessarily tran- scends state lines and is, therefore, interstate in charac- ter.” Decision came after petition to install system in Rice Lake was submitted by Edwin F. Bennett. He took de- cision to mean he can proceed, since FCC has adopted no policy on systems, though staff has studied them. Latest system under construction is in Grass Valley, Cal., 155 miles from San Francisco. Jerrold equipment is being in- stalled by Community Antenna Co., whose president is appliance dealer John Colling. Trade Miscellany: Concord Radio Corp., 901 W. Jack- son Blvd., Chicago, handling TVs, radios, parts, etc., about 50% via mail order, filed bankruptcy petition in Federal district court this week, showing liabilities of $445,549, book net worth of $184,485 . . . Arvin Distributors Inc., 8 W. 30th St., New York, formed as wholly-owned sub- sidiary of Arvin Industries to distribute and service Arvin TVs, radios and appliances in New York-New Jersey area . . . General Precision Laboratory Inc. purchased 3% -acre site in Pleasantville, N. Y., for new 35,000-sq. ft. plant for manufacture of electronic devices, to be ready in early 1952 . . . Philips of Eindhoven plans making Holland fac- tory biggest in Europe turning out TVs, reports $28,000,- 000 profit after taxes on 1950 business, which included heavy radio tube exports to Great Britain, Germany and other countries . . . Sylvania’s research chief Frank Mans- field predicts replacement tube market will rise to $154,- 000,000 in 1952 and $286,000,000 in 1953. - 13 - TrsdB Personals: Frank Folsom, RCA president, spend- ing remainder of this month at Bohemian Grove, Monte- Rio, Cal.; he was subject of “Business and Finance Lead- ers” sketch in July 13 New York Herald Tribune . . . Benjamin Abrams, president of Emerson Radio, awarded bronze plaque at Waldorf-Astoria banquet last week in tribute to his service in the State of Israel bond drive . . . Earl B. Abrams has resigned as editor of Television Digest . . . Walter Lukas promoted to chief TV engineer, Francis J. Burger chief radio engineer, L. G. Zucker chief mechan- ical engineer, Emerson Radio, reporting to R. T. Capodanno, director of engineering . . . George J. Ikelman, member of FCC Safety & Special Services Bureau for 11 years, named to staff of NPA Scientific & Technical Equipment Div.; Arthur T. Koyce, ex-Signal Corps radio-radar specialist at Philadelphia, joins same division as chief, electrical indi- cating instrument section . . . Karel van Gessel, ex-Philips of Holland, appointed to newly created post of coordinator for foreign manufacturing affiliates of Sylvania . . . P. M. Pritchard, ex-Victor Electric, named gen. sales mgr. of Sylvania parts div. . . . Clifford J. Cosgrove named asst, mgr. of subcontracting, John Siena staff asst, to director of industrial relations, Bendix Radio . . . Nathaniel B. Nichols, ex-Taylor Instrument Co., then MIT researcher, recently U of Minnesota professor of electrical engineer- ing, named mgr. of Raytheon research div. . . . John B. Tuthill, ex-asst. v.p., American National Bank, Indian- apolis, named asst, to gen. mgr., Collins Radio . . . Fred- erick W. Timmons Jr. promoted to regional sales mgr., DuMont cathode ray tube div. . . . Robert Digges, Philco division mgr. in Cleveland, appointed head of Atlantic div., Philadelphia, succeeded at Cleveland by L. H. Huntoon, ex- Pittsburgh sales rep. . . . Bernard Grae appointed product design mgr., CBS-Columbia Inc. (formerly Air King) in charge of all designs for TV-radio receivers . . . Gordon Groth, president of Electra Mfg. Co., Kansas City, named executive v.p., Erie Resistor Corp. . . . Zee Goodman new v.p. & gen. mgr.. Pacific Mercury Television Mfg. Corp., Los Angeles; Elliott Peikofif new sales mgr. succeeding James Oliver, now with Hoffman . . . Carl E. Smith, ex- tube div., named supervisor of factory sales service, Syl- vania, Emporium, Pa. . . . Ray S. Donaldson, ex-administa- tive asst, to Senator Capehart of Indiana, DePauw ’32 and Harvard Law ’35, named RTMA staff attorney in Wash- ington. Electromagnetic radiation bill (Vol. 7:2-11) is emerg- ing in form acceptable to everyone. Senate Interstate & Foreign Commerce Committee voted to report S. 537 with amendments giving President emergency powers to control devices capable of radiating signals, from 10 kc to 100,000 me, useful for navigational purposes beyond 5 miles. FCC, RTMA and NARTB had all agreed that original bill sub- mitted by military was unnecessarily strong, would have given military control over literally billions of devices. Bill, when reported, will also have penalty clause — $1000 and/or one year imprisonment for individuals, $5000 for others. Climax came 2 weeks ago, when military finally agreed to accept amendments and stipulated the 5-mile limitation. Self -focusing electrostatic picture tube has been an- nounced this week by Thomas Electronics, Passaic, N. J. New tube, apparently similar to DuMont’s self-focusing tube (Vol. 7:20-21,25), eliminates external focus devices and controls, uses low voltages and is said to be inter- changeable with magnetic focusing tubes in present sets. Samples of 17-in. tubes have been sent to set manufac- turers. Perfection Electric Co., Chicago, is marketing “Kine-Center,” new picture-centering device for electro- statically-focused tubes. Financial Trade Notes: Among officers’ and direc- tors’ stock transactions reported by SEC for May: Earl E. Anderson sold 1900 ABC, holds 6600; William Zeckendorf sold 2000 ABC owned through holding corporation, holds none; Dee S. Lenfesty sold 100 Arvin, holds 4700; John E. Bierv/orth bought 200 Avco, holds 200; Frank Cordcs sold 1000 Blaw-Knox (April), holds 25,165; D. V. Sherlock bought 500 Blaw-Knox, holds 600; Isaac D. Levy sold 26,826 CBS Class A, 15,179 Class B, holds 5296 Class B; James M. Seward bought 200 CBS Class B, holds 200 Class A, 200 Class B; George D. Macbeth sold 1000 Corning Glass, holds 8000; Bernard Goodwin sold 200 DuMont, holds none; Neil H. McElroy bought 100 GE, holds 200; William J. Halligan gave 1000 Hallicrafters as gift (April), holds 35,900, holds 139,200 in trusts, wife holds 24,000; Laurence B. Dodds sold 100 Hazeltine, holds none; Clendenin J. Ryan sold 23,000 IT&T, holds 12,500. Frank L. Taylor exchanged 8470 shares of National Union preferred for 13,984 common (August 1950), bought 16 common (December 1950), holds 14,000; James T. Buck- ley gave 398 Philco as gift, holds 21,987; Charles S. Cheston bought 13 Philco (April), holds 250; Joseph H. Gillies gave 30 Philco as gift, holds 9407; John F. Giiligan bought one Philco (January), holds 10,969; R. L. Heberling gave 100 Philco common as gift, bought 100 preferred “A”, holds 23,987 common, 300 preferred; Robert F. Herr bought one Philco (February), holds 27,587; Meade Brunet bought 100 RCA, holds 300; William Gammel Jr. gave 100 Raytheon as gift, holds 17,070; Max F. Balcom bought 134 Sylvania (March), holds 3739; Howard C. Riordon bought 100 Syl- vania (October 1950), received 40 as compensation (March), holds 240; R. L. Huffines Jr. bought 1000 United Para- mount, holds 1000; Andrew W. Robertson sold 400 Westing- house, holds 1000. Sale of 2500 shares of Philco by Thomas A. Kennally, Philco v.p. and president of its refrigeration division, was reported to New York Stock Exchange this week. He now holds 22,974 shares. * i!- ip ^ CBS gross radio billings of more than $33,000,000 for first 5 months of 1951 (Vol. 7:25) represent 9.4% increase over same 1950 months, NBC’s $25,260,000, down 8.8%, but July 11 Variety reports CBS anticipates loss for year on radio while NBC figures to break even — notes CBS is pay- ing final installments this year on its 1948-49 talent deals. In TV network operations, neither these nor ABC-TV and DuMont are expected to show profit, but their owned-&- managed stations, with possibly one or 2 exceptions, are all expected to be good earners. General Instrument Corp. consolidated statement for quarter ended May 31 shows net loss of $36,550 as against net profit of $258,810 same quarter last year. a Small business survey committee, formed to draft pro- gram for RTMA assistance to small manufacturei's in mili- tary and commercial fields, was announced this week by president Glen McDaniel. Chairman is A. D. Plamondon Jr., Indiana Steel Products Co. Members: G. 0. Benson, Premax Products; G. R. Haase, Operadio; Otto H. Hof man. General Magnetic Corp.; Matt Little, Quam-Nichols; Rich- ard W. Mitchell, Industrial Development Engineering Associates. May shipments of TV receivers to dealers totaled 234,522, compared with 261,357 in April, making 2,310,646 units shipped during first 21 weeks of 1951. RTMA month- ly report tabulating all counties to which as many as 25 sets were shipped is available on request from association headquarters, 1317 F St. NW, Washing-ton. 14 Telecasting Notes: “Finding Radio’s Future Format,” headlines article in July 11 special “Review-Preview” sec- tion of Variety, which pretty well epitomizes chief pre- occupation of very TV-conscious broadcasting industry today. Article is by NBC program v.p. Charles (Bud) Barry, but there are others “Presenting the Case for Radio” by WOR’s Theodore Streibert, WDSU’s Robert Swezey, WSB’s John Outler, KFWB’s Harry Maizlish, KMBC’s Arthur Church, WTP’s Ben Gimbel, WTIC’s Paul Morency — interesting reading. Noteworthy is fact that first 3 of these also operate TV stations . . . NBC’s Syl- vester (Pat) Weaver, in another article in the Rialto idiom, sums up “the revolution” being wrought by TV : “If tele- vision is a fad,” he writes, “so is breathing. Enterprises that will feel the direct impact of TV will be sharply mod- ified, recast, remolded. Alas, poor Security, all is flux” . . . It’s common knowledge NBC-TV network revenues are about to overtake its AM network’s — ^but as if to prove healthiness of radio, non-TV-operator MBS reported this week that its gross billings for first 6 months are up 4% over same period last year, being estimated at $8,500,000 . , . Korean cease-fire, many hope and expect, will bring biggest boon to TV-radio industries in possible slowdown of draft and reduced drain of staff through calling up of reserves . . . NBC-TV clocking commercial time “runovers,” as in radio, plans to send detailed reports to agencies each month with request these be eliminated in subsequent pro- grams . . . “America Is Sold on ABC” is theme of series of page sales promotion ads in New York dailies and trade papers to run 13 weeks, plugging both TV and radio fa- cilities . . . Bing Crosby may or may not pursue now- frozen TV applications for his home town of Spokane and for Tacoma and Yakima, filed in October 1948, but mean- while he has acquired minority investment interests in AM stations KMBY, Monterey, Cal., and KGLC, Miami, Okla. . . . Erie’s WICU, which claims first building exclusively designed for TV, will move into additional quarters July 15, Austin & Co. having completed doubling size of struc- ture; owner Ed Lamb also plans to ask FCC for power in- crease to 40,000 watts . . . Phillips H. Lord’s radio series Gangbusters to be prepared for TV by CBS, planning fall start . . . WTVN, Columbus, July 1 raised base hour rate from $500 to $675; one-min. rate remains $110 . . . KTLA, Los Angeles, Aug. 1 raises base hour rate from $1000 to $1250, one-min. from $175 to $250, also changes noon-6 p.m. Sun. from Class A to Class B. WOW & WOW-TV, Omaha, aren’t on block, if spokes- man for present control is to be believed — but property has been looked over with view to possible purchase by Tom O’Neil, Don Lee Enterprises (Vol. 7:27); Ed Lamb, WICU and WTVN ; Meredith Publishing Co., WHEN ; 0. L. (Ted) Taylor, Texas radio station operator; probably others. Reports of $2,500,000 sale deal with Mr. Lamb are denied by principals. Three applications for new TV outlets, one uhf, filed with FCC this week, bringing total pending to 419: WLAM, Lewiston, Me., seeking Channel No. 8; WJPG, Green Bay, Wis., No. 2; Booth Radio, for Grand Rapids, Mich., uhf Channel No. 23. Also filed was request of WBTM, Dan- ville, Va., to have application amended to ask for uhf Chan- nel No. 24 in lieu of Channel No. 7. [For further details about these applications, see TV Addenda 13-A herewith.'] Robert L. Lippert, independent Hollywood producer, reported July 12 he has cancelled film series for TV plus theatre release that he had planned to make with Hal Roach Jr. Extra payments demanded by Screen Actors Guild, Screen Writers Guild and AFM made it impossible to turn proposed pictures out at profit, he said. Two of projected 12 films, each 15-minutes, that have been com- pleted will be released only to theatres. CBS becomes parent company of 6 divisions, each with own president, under operational realignment ordered ef- fective July 16. Already functioning are newly acquired Hytron Div. (Bruce Coffin, president); CBS-Columbia Inc. (David Cogan, president); Columbia Records Inc. (James Conkling, president). New divisions and presidents are: TV Div., Jack Van Volkenburg, presently TV sales v.p.; Radio Div., Howard S. Meighan, until recently v.p. in charge in Hollywood; Laboratories Div., Adrian Murphy, who as v.p. has handled color campaign, now will handle that and also the coordination of all manufacturing di- visions. Each division will have own departments for programs, sales, promotion, press, legal, accounting, etc. Chicago and West Coast network operations continue as in past, with executives reporting to proper counterparts in New York. Besides president Frank Stanton, only parent company appointment announced was that of Herbert V. Akerberg, who continues as station relations v.p. for both TV and radio. Reassurance that FM channels are in no danger of extinction came from FCC chairman Coy July 13 in letter to Josh L. Home, owner of WFMA (FM), Rocky Mount, N. C. Coy made public his reply to letter in which Home expressed concei-n about reports FCC may turn 18 of FM’s 20 me over to TV. Said Coy: “The FCC is not consider- ing the deletion of the FM band or any part of it . . . The approximately 700 stations now operating in the FM band is real testimony to the strength of the service, particu- larly when one considers that many manufacturers do not make sets and none of them have carried on continuously aggressive sales campaigns. In almost every area in the country there is an unfilled demand for FM receivers.” Several big advertisers, notably Time Inc., Gillette & Pabst, seeking exclusive TV-radio rights to Republican and Democratic national conventions in Chicago next summer — with payments up to $1,000,000 mentioned for each series of sessions. It’s understood politicos are amenable, pro- vided legal way can be found for part of money to go not only toward defraying expenses but also into party coffers. Decision is up to party arrangements committee, not yet named. In 1948 conventions, Time-Life had working ar- rangement (non-sponsorship) with NBC, Newsweek with DuMont. Meanwhile, movement is under way to shift con- ventions to International Arena at Chicago stockyards instead of Chicago Stadium, urged by some TV-radio interests because better facilities are available at former. Canadian Broadcasting Corp. ran deficit of $1,149,000 last fiscal year, gross income being $8,300,000 and expendi- tures $9,200,000 plus depreciation — leading to official state- ment in Parliament that CBC’s first TV station in Toronto, due for “early 1952” debut (Vol. 7:22), will not be ready until mid-summer of next year, the one in Montreal pre- sumably even later. At same time, it was indicated private CPs won’t be granted for a while, ostensibly because of materials shortages but actually because govt, policy ap- parently is not to let private outlets get going before CBC’s projected two. CBC drew $5,500,000 of its revenues from $2.50 annual radio set licenses, $2,400,000 from advertising, now wants annual subsidy (up to $5,000,000 mentioned) from Govt. Ten TV applications are pending from private entex’prises. Joining opposition of Atlanta’s WGST to proposed sale of Channel 8 facilities of WSB-TV, Atlanta, while that station retains CP-holder WCON-TV’s Channel 2 (Vol. 7:25), is Eurith Dickinson Rivers Jr., operator of WEAS, Decatur, Ga. and applicant since January 1947 for Channel 8 in Atlanta; he’s son of onetime Gov. “Ed” Rivers, owner of several other AM outlets. WGST also filed similarly “frozen” application, for Channel 13, in January 1948 (TV Addenda 1-G & l-I). 3LISHED WEEKLY BY RADIO NEWS BUREAU, 1519 CONNECTICUT AVE. N.W., WASHINGTON 6, D.C. TELEPHONE MICHIGAN 2020 • VOL. 7, NO. 29 {Regulation W May Be Eased, page 1. Freeze-End in Sight — But Not Quick, page 1. NPA OKs First Building Applications, page 3. Peering Into Colored Crystal Ball, page 6, July 21, 1951 Count of TV Sets-in-Use, July 1, page 10. ‘Bedrock Now — No Place to Go But Up’, page 11. What CBS Color Sets Will Be Like, page 12. Trade, Mobilization, Financial Notes, pages 13-15. REGULATION W MAY BE EASED SOON: Chances look p;ood now for easier consumer credit terms, despite persistent Federal Reserve Board opposition — House having passed amendments relaxing Regulation W during past-midnight session on control legislation July 20-21. House bill permits household appliances (including TVs & radios) to be purchased with 15% down and 18 months to pay in lieu of present 25% and 15 months, also permits trade-in allowances to be applied toward down payments. Senate bill doesn’t include this provision, as passed in June, but its com- mittee votes were close (Vol. 7:25) and industry people have Senatorial assurances of staunch support when bill goes to House-Senate conference next week. On other hand, bill's over-all controls were so watered down that many think President Truman may veto whole bill. Rep. Patman (D-Tex. ), sparking opposition to present tight credits, got through an amendment, 140-43, permitting new and used autos to be purchased with one-third down and 21 months to pay (now one-third and 15 months) ; then came the household appliances amendment, and then another permitting household furnishings to be purchased 10% down and 21 months, then the trade-in amendment by Rep. Forester (D-Ga. ) . RTMA, prime mover in seeking remedial legislation, had unsuccessfully sought to get TV-radio classified as house furnishings. FREEZE-END IN SIGHT-RUT NOT QUICK: A vague and unjustified optimism about speedy end to the freeze — a sort of wistful wishful thinking that new stations, somehow, can be rushed onto the air — still pervades much of industry. Even FCC Chairman Coy, after 3 years of agonizing delay, prolonged by color issue, sometimes lapses into it. Witness his widely-publicized testimony before Senate Interstate & Foreign Commerce Committee this week. TV-radio stocks actually rose on the exchanges the day he testified — on basis of incomplete and misleading news reports indicating end-of-f reeze was nigh. Actually, clearest view yet of freeze-end did appear on horizon this week — but it's not going to be a quick ending, not by a long shot. Paste this into your hat again, whatever else you read or hear or hope: No new telecasting stations on the air before late 1952. None in any size- able markets until well after that — probably not until 1953 sometimes — unless by some clever arranging the FCC itself can get competitive applicants together to agree to consolidate or drop out. ^ ^ ^ 4: It'S highly involved in legalisms — but better picture of freeze-melting process evolved from heavily-attended FCC-industry conference July 20. Meeting left little doubt that Commission, in effort to hasten thaw, will adopt procedures it proposed last week (Vol. 7:28) — namely, drop oral hearing scheduled for next Mon- day, July 30, instead conduct it by written comments. Clincher came at end of long day of palaver, when FCC Chairman Coy asked if anyone in lawyer-packed room had any "legal" objection to written procedure. Only Copyright 1951 by Eadlo News Bureau 2 - T < attorneys for Philadelphia's WIBG & WIP spoke up — on grounds they had already gone | through pre-freeze hearing for channel which FCC proposes to delete, thus have rights which might be abridged. Though end of freeze seems less nebulous with new procedure, and will come much sooner than with longsome oral hearing, it's still no flip of the wrist. Five months for filing of comments and coxinter-proposals , was suggested at conference. This might be cut to 3-4. But FCC needs additional month or so to ren- der final decision. Then, it has promised at least 2 additional months hiatus for filing of new applications. Thus, it's first quarter 1952 before grants of new stations are possible. But only a few of these, in small uncontested markets, can be made out of hand, and fierce competition for the precious few franchises in more desirable markets will inevitably require individual city hearings. So it will be many, many months before final decisions in these important markets; then probable appeals to courts by rejected parties — and then still more months before stations are actually on the air. ^ ^ ^ Two major bones of contention dogged the conference — "time element" and "rules of the game." Attorneys and engineers generally couldn't see how they could properly present cases in suggested 30-45 days. Many thought FCC should finalize Appendices A & B of its allocation proposal (TV Allocation Report, March 24, 1951), so that parties would know how to prepare their cases in respect to mileage separa- tions, powers, heights, priorities, etc. To resolve these questions, Coy appointed FCC-industry committee to meet during lunch. It comprised Commission staff members Curtis Plummer, Joseph Kittner, Paul Dobin, Cyril Braum, plus industry attorneys Paul Spearman and Telford Taylor, engineers Earl Cullum and Stuart Bailey. They came up with "staggered" system, Bailey's idea, as solution to "time" 1 problem. Briefly, system would give industry a lot of small deadlines to meet, ; rather than 2 big crises. Suggestion of committee is this; < Divide country into 10 areas. Give first group 30 days to file comments. Give parties opposing those comments 30 days to reply. Then allow 10 days for all parties to request oral cross-examination. Repeat this procedure, at 10-day inter- vals for other 9 area groups. This would take total of 150 days. No one opposed suggestion. Most thought it best yet. It's very likely to be adopted, though Coy said he was "appalled" at thought of 150 days. Quite pos- sible is reduction of number of groups and intervals between deadlines. Order in which groups would have to file comments would probably follow list of appearances issued by FCC this week "in the event an oral hearing is held." It starts with Maine, works down to District of Columbia, then across north- ern half of U.S., down California and across southern half. FCC planned to send copies of the 98-page document, listing some 700-900 parties who have filed 1100-odd comments, to all hearing participants and their attorneys. It may send it out any- way, with notation of new groupings for written procedures. Or it may issue new list, reflecting new groups. Regarding "rules of the game." committee made no recommendation, except that parties be permitted to raise no nev; objections to mileage separations, etc. It's extremely unlikely that FCC will finalize Appendices A & B now. Its attitude seems to be: "We're still not ready. We want to see whether these basic rules should be changed, as people show us their particular cities are 'different'." Spirit of cooperation at session was truly extraordinary — for an FCC pro- cedure. Moderate amount of bickering in morning dissipated by day's end. All 7 commissioners were on hand, plus 100 or more industry attorneys, engineers, et al. Coy ran the conference, and everyone who desired had his say. * * * * Coy's oscillation between rosy hopes and realism came during his July 18 appearance before Senate committee. Needled by Senators, particularly Kern (R-Mo.), a ♦ - 3 he dreamt that final decision could come by late September. But in answer to ques- tion by Chairman Johnson (D-Colo.)> he got down to hard earth and said; "You*d be lucky if Denver had a station on air by Labor Day 1952. " Denver is largest non-TV city; and Coy made it clear, in answer to other Senators' quick queries, that same estimate goes for Hartford and similar major markets. Unfortunately, some news stories carried estimate of final decision, but left out on-the-air prediction. That's what lifted TV stocks. Coy gave less than complete answer when Sen. Kern asked how long competitive hearings would take in individual cities, once final allocation is made. Where 6 applicants would be involved. Coy said, it might take 5 weeks. What he failed to point out was that; Commission has only 7 examiners. . .there will be scores of hearings. .. exam- iners already have hands full of non-TV cases... it takes months for examiners to render proposed decisions. .. it takes additional months for FCC to finalize those decisions. . .many defeated applicants are likely to appeal decisions to courts, after considerable period of trying to get FCC to reverse itself. Kern asked whether "remedial legislation" would move things faster. Coy said it wouldn't, that freeze would be lifted before such legislation passed. He also delivered his philosophy on 5 significant points; (1) FCC isn't alone to blame for lack of TV in many cities. "Many would-be telecasters lacked the desire to break ground, to become pioneers," he said. "They thought of television as a losing business." (2) An allocation plan is needed because, otherwise, "every big city would hog the facilities, and the small communities would be outside looking in. Under an allocation plan, people in smaller communities have time to get financial resources in order to build." (3) Priority of grants, post-freeze, will be cities with no TV, first ; those with one station, next — and so on. Coy estimated 1500 TV stations may be built in next 5 years, 2500 in 10, possibly 3000 ultimately. * * * * Educational channel reservation absorbed considerable time. Coy set Johnson back on his heels by saying he questioned legality of the Senator's pet idea — that of stipulating in station's license that it must devote specific portion of time to educational programs, in lieu of reserving channels for schools. Coy thought censorship provisions of Communications Act barred FCC from such action, but said he'd ask his general counsel for opinion. If Commission does not have such power, said Johnson, "there ought to be some legislation." Sen. Benton (D-Conn.) plugged for the educators — appeared to want schools to become "a little bit pregnant," as one observer put it, when the Senator said he'd like to see channels reserved but permit schools to go commercial. Coy called this "a snare and a delusion. " If schools want to go commercial, he said, let them apply for commercial channels, not ask for reservation. What if schools don't want reserved channels, as in Kansas City? Kern asked. "I don't think we ought to impose channels on them," Coy answered. Coy handled himself beautifully, basking under warm eye of Sen. Johnson, with whom he's a favorite. He appeared to have convinced the Senators, including Kern, who seemed to be nodding in agreement by time Coy finished testifying. NPA OKs FIRST BUILDING APPLICATIONS: First go-ahead by NPA for alterations to a TV station was announced this week — along with approvals of building projects involv- ing 9 radio broadcasting stations. This first batch of approvals by the emergency materials control agency didn't set any clear-cut precedents or give real clue to attitude NPA is going to take toward construction of new TV stations or alterations to present ones that may be necessary by power increases, cramped studio space, etc. What it did show is that NPA is treading cautiously -- pending determination 4 - of definite criteria for TV-radio station construction (Vol. 7:19-20,22,27), now being worked out between FCC and NPA in consultation with NARTB, et al. FCC Chairman Coy is optimistic over chances for construction of new TV sta- tions, once freeze is ended. At Congressional hearing July 18, he said both FCC and NPA "think TV is a dynamic industry which should expand." He suggested single antenna tower for all stations in a community, after pattern of cooperative Empire State Bldg, venture (Vol. 6:27,40,48; 7:2). Many sta- tions, he asserted "can be built without use of great amounts of materials.” He noted a number of prospective telecasters already have buildings and antenna towers which can easily be converted to TV. Most applications granted to date by NPA have been "hardship" cases -- where applicant had purchased materials, contracted for building job before NPA's M-4 construction order was amended to include TV-radio (Vol. 7:19). First TV station to receive approval was WJAR-TV. Providence, authorized to make alterations to its studios, including reinforcement of walls and ceilings to accommodate Klieg lights. It had ordered materials before building restrictions were imposed. The alterations will cost an estimated $54,455. WEEU, Reading, Pa. (AM) was authorized to build new studios in an existing building — requiring very little critical materials. This was also "hardship" case, and the work will cost about $47,200. Five AM grantees not yet on air received NPA authorizations to begin con- struction: KBOX, Modesto, Cal., studio building, $27,000; KORK, Las Vegas, Nev. , station, $21,000; WIST, Charlotte, N.C., transmitter building, $12,000; WSYD, Mt. Airy, N.C., station, $7850; WLOP, Lancaster, S.C., station, $7500. Two AM stations with CPs for increased power received approval to alter transmitter buildings: KSOO, Sioiix Falls, S.D., $19,500; WMSC, Columbia, S.C., $7101. WHBL, Sheboygan, Wis. , was authorized to alter transmitter building, $8450. New NPA regulation due next week is expected to exempt from building curbs all construction requiring less than 2 tons of steel. NARTB was unsuccessful in its efforts to have this upped to 25 tons in case of TV-radio. July 20 was deadline for applications for construction during the fourth quarter, but if NPA runs true to form, applications arriving late will be given equal consideration — especially since NPA gave practically no advance notice of deadline. Action on applications — as well as allotments of steel, copper and aluminum (Vol. 7:27) — can be expected by second week in August. INDUSTRY-SPONSORED SPORTS NAY STICK: Powerful and sudden as Jersey Joe Walcott's left hook, TV set manufacturers think they've found effective weapon against threat- ened inroads on receiver sales by exclusive theatre-TV sports bookings. "Once again your living room becomes the greatest showplace on earth," said Bill Stern to televiewers tuned to July 18 Walcott-Charles championship bout. First round in theatre TV vs. free TV — the 3 exclusive theatre-televised bouts (Vol. 7:23-26) — was clearcut victory for theatre TV. But this week's second round, hastily arranged (Vol. 7:28), went unanimously to home-TV exponents — at least, from public-relations standpoint. The 8 sponsoring set makers (Admiral, Crosley, DuMont, Motorola, Philco, RCA, Sylvania, Westinghouse) believe they've hit on formula that will work. It's a sort of insurance: If no other sponsor wants to make it worthwhile for sports promoters to give TV owners a look-in on their contests, these and other set makers will. DuMont sales director Tom Gallery, prime mover in deal, makes it plain this week's show, dramatized by unexpected knockout, was only the beginning. Permanent organization is in the wind — the TV set makers to contribute on pro-rata basis toward bids on sports events when necessary. "We have nothing up our sleeves," says Gallery. "It's not important who sponsors the program or what net- work carries it, just so it's on home TV. "If some other sponsor — for instance, Pabst — can get TV rights to a fight, so much the better. But if nobody else can meet the price, then we'll step 5 in." Gallery points out it will be long time before theatre interests can rival offers made by entire TV industry, working together. Fight telecast featured no plugs for individual set makers. The 8 manufac- turers' names were flashed on screen several times, but crux of message was: "Lean back in your favorite chair, and enjoy the fight in the comfort of your own home." Viewers were also urged to trade in old small-screen sets, patronize service organ- izations of the sponsoring manufacturers. Pabst , which bought radio rights (CBS) and relinquished time on some TV stations, got couple plugs. Hookup of 47 stations in 46 cities (both Birmingham stations carried Pitts- burgh fight, with Pittsburgh and Johnstown blacked out) brought bout to TV homes. DuMont paid $100,000 for TV-radio rights, re-sold radio rights. Bill amounted to S15,000 for each participating company for entire TV package — including annoiincers, time charges, etc. Fight brought in gate of $245,000, exclusive of radio rights — record for this year in U.S. Ten manufacturers originally were lined up to sponsor bout. Zenith recon- sidered because of its Phonevision, which it hopes some day will compete with com- mercial TV for rights to sports contests. On other hand, RCA, which is pushing its theatre-TV equipment hard these days, was among sponsors — in apparent competition with itself. GE pulled out at last minute, reportedly because it was refused per- mission to prepare its own individual advertising copy. Tremendous lift in morale of sports-loving set owners, plus aid to TV set sales , should result from success of June 18 sportcast and promise of more to come. Moreover, latest move firmly establishes TV manufacturing industry as the staiinch defender of home TV, should banish forever oft-repeated gripe that "TV industry" is conspiring to shift best shows from home to theatre. * * * * Battle is far from won — by either side. Theatre interests still have an Inside track on many sports events. For 3 previous New York bouts. International Boxing Club refused to listen to competitive bids, sold exclusive TV rights to theatres outside New York for SlO.OOO a fight on "experimental" basis. IBC sees theatre TV primarily as method of insuring big gate receipts. Boxing promoters are enjoying current dispute over TV rights. Playing each side against the other, IBC president Jim Norris told the Associated Press July 19: "We will not consider anything below $250,000 for TV-radio rights [to next fall's Turpin-Robinson and Walcott-Charles return matches]. If we can't get at least that, we will go back to theatre TV. . . "We are exploring both of these fights with the idea of getting the most we can possibly get," Norris said. "If we go back to theatre TV, it will be consid- erably more than a $10,000 proposition." IBC wasn't so anxious to give Pittsburgh bout to theatre TV as it was its New York matches; good gate was relatively certain when it accepted manufacturers' offer. Norris says there was no bidding, as such, for rights to bouts. "Warner Brothers theatres intimated they might be willing to pay $50,000, but no firm bid was made," said Norris. "The theatre-TV people talked in terms of $20-25,000. Then the set manufacturers came up with their $100,000 offer." Another challenge to home TV comes from National Collegiate Athletic Assn.'s "controlled TV experiment" on college football games this fall (Vol. 7:23-24,27). With end of U of Pennsylvania's revolt (Vol. 7:23) and expected endorsement by once- rebellious Notre Dame, there are no longer any defections in NCAA's ranks. NCAA plan has been softened considerably since it was first proposed, but it still sharply limits live telecasting of college games — at the same time approving live theatrecasts of the games banned from home screens. CBS was first TV network to fall in line with NCAA's "experiment". It's reported planning to film highlights of top eastern games each Saturday for TV pres- entation the following afternoon. This is in addition to CBS's plans with NCAA's blessing — to present live color telecasts of 9 games this fall. - 6 - PEERING INTO COLORED CRYSTAL HALL: Thinking ahead 6 months or so in the color war, we venture that dominant motifs will be: "dual standards" and "universal receiver. " Everything points that way. Reasons appear quite simple: (1) RCA now produces excellent color. That alone is a solidly-planted foot in FCC's oft-reiterated "open door" to compatible systems. (2) Cost of compatible system sets, which now employ 54 tubes, will cer- tainly come down as did early TV sets, but is likely still to appear high at year's end. And mass production of tri-color tubes will probably still appear more diffi- cult task than mass output of CBS discs, drums and motors. Those 2 "cost and time" factors could prove enough to keep FCC from totally reversing itself and replacing CBS system with compatible one — despite latter's equality or superiority in color quality, to say nothing of the basic overwhelming desirability of compatibility. * ♦ * ♦ Commission may then size up situation something like this: "We acknowledge high quality and compatibility of new system. But we have doubts about prices and immediacy of sets, also about enthusiasm of manufacturers to make color sets in absence of competition. If compatible system is indeed superior, it should be hastened, but not at public's expense. "Best goad to manufacturers will be competition provided by CBS system, which has the jump in cost and potential speed of manufacture. "Dual standards are the answer. But we cannot burden public with cost of buying 2 sets to get all color programs. Therefore, we will authorize both systems. IF "universal receiver" can be built to accept both signals — at a cost no greater, or little greater, than that required for most expensive of the two systems." This sizeup may sound too pat. Possibly it is. We think not, because — It's directly in line with FCC's color decision; with post-decision state- ments of commissioners ; with "multiple standards" efforts, all through hearing, of Comr. Jones, the prime color mover; and with the entire background and thinking of Sen. Johnson, whose great drives are "competition" and "anti-monopoly." It wouldn't be surprising, in fact, if Sen. Johnson and/or Comr. Jones were to take lead in advocacy of dual standards. Much hinges on feasibility of universal set. We think this a small detail. If such set is the condition FCC puts on adoption of a system in which industry has obstinately placed its technical and economic faith, ingenuity of its engineers will meet it — with margin to spare. Any existing CBS sets won't get compatible color, if dual standards are adopted. But a Commission which rejected importance of compatibility when there were 10,000,000 sets isn't likely to hesitate at partially obsoleting a few thousand, or even a few hundred thousand, sets which could still get monochrome from both sys- tems, plus CBS color. It must give Commission pause when it considers that manufacturers, though desperate for a sales fillip, have not leapt into production of CBS color in hopes of quick profits envisioned by a few. * * * ♦ In interim, before compatible system is again presented to FCC, 2 principal factors are most important: (1) Public demonstrations of compatible system, by RCA and/or others of the NTSC group. (2) Production of CBS sets. If FCC deems RCA's shows are for "exploitation" purposes, to combat accept- ance of CBS system, it may initiate clampdown. But this would seem to be an unlikely procedure, from obvious public relations and political standpoints. If Commission is satisfied, on other hand, that demonstrations are designed to compile field-test data on public evaluation of color quality, compatibility, etc., it isn't likely to complain — inasmuch as it has previously stipulated such tests are important facets of field tests. RCA will open color demonstrations to public about Aug. 22. relaying signals 7 to other cities sometime thereafter. Company reports over 12,000 responses, uni- formly highly favorable, to its requests for evaluation of compatible pictures. Tenor of letters reflects full appreciation of meaning of compatibility. Many respondents said they resent "jumble of lines" they get from CBS color- casts, recoil from cost and bother of adapters required to get pictures out of them. RCA is answering each letter with card, signed by president Frank Folsom, advising of future color showings, inviting attendance and reactions. Public hasn't yet seen RCA*s latest color, but additional press comments, like those of last week (Vol. 7:28), leave little question they'll react favorably. Anticipating network feeds of RCA color, AT&T July 12 filed new rates, ef- fective Aug. 15, stipulating same charges for all color systems. These are same as black-and-white, plus $450 monthly station connection charge. Other manufacturers* work on compatible system goes on, though slowed by vacations. From Chicago, for example, Hallicraf ters ' Wm. Halligan reports tri-color tube has been put to work, using signal from flying-spot scanner. He plans to add camera chain, hopes to see signal on air soon, for use of all Chicago manufacturers. Sort of climax to press reaction was Time Magazine's July 23 cover story on RCA chairman David Sarnoff which said: "The public scored David Sarnoff's RCA with a lost round last year in the great color TV fight with CBS. Sarnoff did not stay down. Last week he showed the TV industry a new tube that receives clear, true color, and he showed the public that RCA's color system can do what CBS's can not: color programs broadcast by RCA can be received in black & white on present sets without any change. It looked as if radio's miracle man had not run out of miracles... "There was no blurring or running of colors, even in the fastest movement, e.g., a pair of performing lovebirds flapping their wings. As a show topper, an RCA mobile unit focused on a swimming pool near New York where a troupe of swimmers and divers performed. The outdoor telecast, which RCA explained could just as well be a football game or boxing match, came through almost as clearly as the studio show." But Gen. Sarnoff is cautious. Time says, regarding rapid spread of color. It quotes him: "Commercial color TV on a big basis is still 2 to 5 years away. Material shortage, NPA cutbacks on TV production and defense orders will delay it... [And] it will take a long time to get the bugs out of mass production of the color tube." Other TV men disagree, according to Time, which says: "Now, TV manufacturers are up to their ears in unsold sets, are more likely to grab at RCA's system, which they think will get customers buying again... if FCC gives the go-ahead." [For other press comments this week, see page 9.] ^ il: CBS's sorest problem remains — sets. Not only to test public acceptance, but even to get affiliates to take network feeds. [For CBS's receiver plans, see p. 12.] Number of stations are willing to try color, but their refrain seems to be: "We can't put on programs no one can see." That goes for such stations as Chicago's WBKB, Detroit's WJBK-TV, Louisville's WHAS-TV. Spokesmen for these CBS basic affiliates tell us they need monitors, as well as sets. Typical response was that of John Mitchell, WBKB manager: "We're in a cooperative state of mind, but we'd like at least 10 sets before putting on color. I'm still very cognizant of the million set owners in Chicago. We've ordered a monitor from Gray Mfg. Co., but they gave us 90-day delivery date. We've made no commitment to CBS. One of our problems is that we have no time open for CBS's present color schedule." CBS has to spread very thin its limited amount of equipment. Thus, Cincin- nati's WKRC-TV will pick up CBS color for "one week stand" July 20-28 only, broad- casting signals to set rotated among Kroger supermarkets. What CBS lacks in transmitting and receiving equipment, it's trying to make 8 up in well-publicized demonstrations and in continued output of publicity releases. Latest quote foreign radio dignitaries: Jan Philip Boon, managing director general of National Belgian Broadcasting Institute, stated: "We have the advantage of being able to start TV broadcasting in color and should do so." President of Broadcasting Corp. of Japan, Tetsuro Furukaki, said: "After having seen the CBS system, which is so simplified and which brings such good results, I hope our country can inaugurate color telecasts very soon." How CBS sets will sell remains puzzler. Most manufacturers still place little stock in CBS system, either as a system or as potential market item. But RTMA (to which CBS now belongs by reason of Hytron merger) has taken new stand of impartiality, as expressed in speech by president Glen McDaniel at Chicago Music Show July 18. He said: "The controversial language and the emotionalism should be forgotten. Some unduly sensitive souls [believe] that TV manufacturers would refuse to make and sell equipment to receive [CBS color] because their advice had been rejected by the Com- mission. This is nonsense. Our industry was recently described by the chairman of the FCC himself as perhaps *the most competitive of all industries.' He is right... "Whenever a public demand arises for adapters, converters, or color sets at prices that make production feasible, I'm sure that manufacturing industry will meet that demand. .. They would be particularly interested in a market for a new product at this time when they're suffering severely from heavy inventories and lack of sales." As for compatible system, McDaniel said that "the industry is taking the Commission and Senator Johnson at their word" — that any better system can again be brought to FCC when sufficient experience has been gained through field testing. ^ *T“ *T* ^ CBS color was big attraction at Music Show, but few dealers appear to be going overboard. Writes Retailing Daily's correspondent: "Buyers who seem to be well versed in the color controversy showed little or no interest in color at the show, while those attending who have never seen the phenomenon mobbed the booths of CBS and CBS-Columbia Inc. "One New York store representative reported that his CBS color demonstration caused only passive interest in his customers until RCA went on the air with its field tests last week. At that moment, he reported, there suddenly was considerable activity in color and people assumed that color was here." Lack of consumer interest, according to this buyer, was because CBS programs were "very, very bad" and "because of all the detrimental stories being circulated about the drawbacks of CBS-type equipment." GE's TV sales director Donald Davis, in speech before Music Show group, put the merchandisers' case thus, vis-a-vis expected small output of color receivers by few set makers promising them: "Remember that your store is an emporium and not a museum. If you put on your floor a color set today without actually being able to take orders on it and without knowing the price or being able to give an accurate delivery date, you're going to find your customers saying, 'I'll wait for that,' and refusing to consider the merchandise you have to sell — black-and-white sets." Some manufacturers are gearing themselves, meanwhile, for any eventuality. Stromberg-Carlson & Stewart-Warner are latest reported with sample slave converters — a la Crosley, Bendix, Tele-tone , Meek — ready to meet whatever demand arises. Rights to CBS color for use with Eidophor theatre TV (Vol. 7:7,18) have been acquired by 20th Century-Fox. President Spyros Skouras says 20th Century will use the color TV in its own theatres and make it available to others. Film company plans demonstration of combined systems in September, may eventually produce some of its own shows for theatre network. A 20th Century official said company may some day make Eidophor projection TV sets for home use. Quality of picture produced by the Swiss system, he said, is “nearest thing to home movies.” Reproduction of CBS color pictures in July 23 Life isn’t quite accurate. Actually, CBS closeups are some- v\fhat sharper than most of the pictures. Life commented cautiously: “The [CBS] premiere went off on schedule and, although some critics found the entertainment a bit rag- ged . . . most agreed that color TV was fascinating.” 9 PTIESS reaction to RCA color (Vol. 7:28) continues in same vein as last week, overwhelmingly favorable. Herald Tribune syndicate columnist John Crosby, who has always been sold on compatibility, wrote: “CBS’s system [is] now the law of the land. Yet it is still an uncomfort- able secret which CBS would like to share with the rest of us but doesn’t quite know how to go about it. The RCA system, while not exactly illegal, is terribly unofficial . . . As to the merit of the two systems, it would be pretty hard to determine unless CBS and the improved RCA receiver were set side by side. The differences, I suspect, would be of great interest to the engineers but probably wouldn’t be very noticeable to you and me. “RCA color, I think, is sometimes a little more pallid, not quite so rich in texture as the CBS brand, just the same it’s good color transmission . . . Just now TV needs a lot of things — imagination, taste and money, to name three; it needs almost everything except color. The progress of the art [would] be seriously interrupted by any non- compatible system like CBS’s; it would be left unimpaired and possibly unchanged for years to come by RCA color . . .” Bruce Robertson, of Broadcasting, which has main- tained cautious approach throughout, ventured : “A re- opening of the color TV question, probably on a petition for dual standards . . . seemed inevitable last week . . . Fine quality of the black-and-white reception of the color- cast images also was noted . . . RCA’s colors seemed to tend tov/ard the pastel shades, pleasing but less vivid and exciting than the hues shown by CBS . . . There was no fringing in RCA colors . . . Most noticeable advantage of the RCA method [was] in the flesh tints. RCA’s were true and lifelike at all times, while the faces of the per- formers before the CBS color cameras paled and darkened as they turned toward and away from the studio lights . . . No one could ask for better color fidelity or more accurate skin tone reproduction than was demonstrated in the pic- tures of Nanette Fabray.” Leaning towards CBS in past. Editor & Publisher’s Jerry Walker said: “This department, which has had a Perscnal Notes: Harold L. Morgan Jr., ABC-TV opera- tions director, elevated to v.p. in charge of TV pi’Ogram dept., reporting to Alexander Stronach Jr., TV v.p.; Charles M. Underhill, ex-CBS, joins ABC-TV July 30 as national director, program dept.; Henry T. Hede named business mgr., Anthony M. Hennig production mgr., program dept. . . . James C. McNary has withdrawn from consulting en- gineering partnership of McNary & Wrathall, will con- tinue Washington offices while Grant Wrathall continues to operate from Aptos, Cal. . . . D. L. Provost, business mgr. of WBAL & WBAL-TV, Baltimore, named acting gen. mgr., Hearst Radio Inc. under president Charles B. Mc- Cabe; he will work out of Baltimore . . . William A. Wil- liams elected asst, treasurer, NBC, reporting to Joseph V. Ileffernan, financial v.p. . . . Ray Stone named asst, mgr., CBS-TV network sales service dept, under Robert F. Jamieson . . . Robert G. Dalchau promoted to film editor, KEYL, San Antonio, succeeding Tom J. Maloney, resigned; Vernon Poerner named stage mgr., following promotion of Bill Michaelis to director . . . Frank A. Daniel appointed mgr. of TV-radio dept., Lennen & Mitchell . . . Clinton F. Wheeler Jr., ex-BBDO, named director of TV-radio, Hewitt, Ogilvy, Benson & Mather . . . Michael Foster scheduled to head up TV public relations dept, of newly-reorganized CBS setup (Vol. 7:28), George Crandall to handle radio . . . Henry J. Christal, partner in Petry rep firm, has resigned, indicating no future plans . . . I. E. (Chickl Showerman, Free & Peters, nominated to succeed WMCA’s Norman Boggs (soon joining Don Lee) as president of N. Y. Radio Executives Club. soft spot for CBS on the same ground as the FCC — that the CBS system was the only one really ready, as of last year — finds it difficult now to chase the cruel thought that FCC is riding an obsolete horse. The RCA pictures seen this v/eek could easily stand up to comparison with the CBS presentation . . . The direct large-sized pictures, with 16-in. and 21-in. tri-color tubes, were easier on the eyes than those seen through magnifying glass. Also noted was the absence of flicker and color hangover. The eyes carry over a flashing spectrum as they blink while watch- ing a CBS ‘mechanical’ (rotating disc) picture.’’ After thumbing through some of RCA’s thousands of viewer responses regarding compatibility, Nexv York Her- ald Tribune’s Joseph Kaselow wrote: “Many letters said the black-and-white pictures had better definition and clar- ity than the regular telecasts and, in some instances, that something approaching a 3-dimensional effect was achieved. The pictures also were said to have ‘more black- ness’ than usual. A random sampling of the letters and cards showed that, in addition to giving the basic informa- tion asked by RCA, many set owners were surprisingly well informed on the issues involved in the color con- troversy ... As was to be expected, viewers liked the idea of being able to receive the colorcasts without having to buy and install adapters . . . The few letters which in- cluded criticism of the pick-ups said that there had been blurriness in the long shots and during rapid action.” Harry MacArthur, of the Washington Star, mulled over what he’d seen, wrote another piece on it: “It is hard to foresee anything but approval of the system when it is submitted to the FCC, which is certain to happen in due course ... You can be sure of one thing. Before it is sub- mitted to the FCC again, this RCA color system will have been tested, retested and tested again until it is definitely proved immune to earthquake, fire, flood, unexpected cata- clysm of nature or any possible disaster . . . The two color TV systems are close enough together now that some might find it hard to choose between them.” TV Program Standards Committee (Vol. 7:25,28) will lay groundwork for TV code July 30 at NARTB head- quarters in Washington. In addition to chairman Robert D. Swezey, WDSU-TV, New Orleans, members are: From NARTB board — Harry Bannister, WWJ-TV; Harold Hough, WBAP-TV; Clair R. McCollough, WGAL-TV & WDEL-TV; Paul Raibourn, KTLA-TV. Non-board mem- bers— Walter J. Damm, WTMJ-TV; James C. Hanrahan, V/EWS-TV; J. Leonard Reinsch, WSB-TV & WHIO-TV; Henry W. Slavick, WMCT-TV; Donald W. Thornburgh, WCAU-TV. Network members — Davidson Taylor, NBC; James L. Caddigan, DuMont. Code of ethics for TV films was adopted at July 19 meeting of National Society of TV Producers in Holly- wood, with ex-newsman and movie producer Martin Mooney named to administer it. Code covers such subjects as “crimes against the law, race and nationality, vulgarity, obscenity and profanity, religion and sex,” is similar in content to motion picture code. NSTP also announced it is setting up committee under president Louis T. Snader to formulate standard labor relations contract for TV film industry. FM committee of NARTB, named this week by presi- dent Harold Fellows: Ben Strouse, WWDC-FM, Washing- ton, chairman; Frank U. Fletcher, WARL-FM, Arlington, Va.; Josh L. Horne, WFMA, Rocky Mount, N. C.; Edward A. Wheeler, WEAW, Evanston, 111.; Raymond S. Green, WFLN, Philadelphia. Alternates: Everett L. Dillard, WASH, Washington; Victor C. Diehm, WAZL-FM, Hazle- ton, Pa.; Herald Harrison, WMAS-FM, Springfield, Mass. 10 - Connl of TV Sels-in-Use by Cities As of July 1, 1951 Estimates are sets within .1 Mv/m contoiirs (60 ml.), excluding overlaps, as established by NBC Research. SETS-IN-USE total went above 13,000,000 as of July 1, up from 12,769,300 reported for June 1 (Vol. 7:25) by NBC Research — reflecting steady audience growth despite receding rate of sales due to slump. New York area total went to 2,435,000, up 45,000 from preceding month. Los Angeles was credited with an even 1,000,000, up 67,000. On other hand, Philadelphia’s 863,000 was mere 5000 gain in month, Chicago’s 940,000 gain of 10,000. These are the July 1 estimates (consult individual stations for estimates of number of families within respective service ranges) : No. No. Area Stations Sets Interconnected, Cities Ames (Des Moines) 1 60,000 Atlanta 2 119,000 Rfllt.imnrp 3 304,000 Binghamton 1 40,700 Birmingham — 2 57,400 Bloomington, Ind 1 16,800 Boston - 2 748,000 Buffalo 1 207,000 Charlotte - 1 82,600 Chicago 4 940,000 Cincinnati 3 261,000 Cleveland — 3 482,000 Columbus 3 150,000 Davenport- Rock Island 2 58,600 Dayton 2 131,000 Detroit 3 501,000 Erie 1 49,200 Grand Rapids _ 1 79,400 Greensboro — 1 70,800 Huntington 1 46,100 Indianapolis — 1 143,000 Jacksonville 1 33,000 Johnstown 1 101,000 Kalamazoo 1 40,600 Kansas City 1 125,000 Lancaster 1 104,000 Lansing 1 55,000 Louisville 2 93,300 Memphis 1 87,600 Milwaukee 1 247,000 Mlnneapolls- St. Paul - 2 269,000 Nashville 1 33,300 New Haven 1 163,000 New York 7 2,435,000 Norfolk 1 71,600 No. No. Area Stations Sets Interconnected Cities — (Cont'd) Omaha 2 79,900 Philadelphia 3 863,000 Pittsburgh — 1 310,000 Providence 1 156,000 R.irhmnnrt 1 83,700 Rochester 1 84,600 Schenectady 1 159,000 St. Louis - 1 297.000 124.000 Syracuse 2 Toledo 1 95,000 Utica - 1 45,200 270,000 Washington 4 Wilmington Total Inter- 1 72,400 connected 81 11,045,800 Non-Inter connected Cities Albuquerque 1 9,000 fnpi.nn.q 2 124,000 IPort Worth 1 Houston 1 82,200 Los Angeles 7 1,000,000 Miami 1 75,000 New Orleans 1 58,600 Oklahoma City 1 91,900 Phoenix . 1 38,400 Salt Lake City 2 47,500 San Antonio 2 47,500 San Diego 1 103,000 San Francisco 3 204,000 Seattle 1 87,500 Tulsa 1 *74,200 Total Non-Inter- connected 26 2,042,800 Total Interconnected and Non-Inter- connected 107 13,088,600 * Same as June 1; no new figure reported for July 1 at time of going to press. Slation Accounls: H. J. Heinz Co. (57 Varieties) using TV for first time starting Aug. 10 on WDTV, Pittsburgh, sponsoring 26 Friday segments of Kay’s Kitchen, Kay Neumann’s local domestic science show, placed thru Maxon Inc., N. Y. . . . “Old Stove Round-Up” campaign of 800 gas utility companies, joining with 62 gas range manufac- turers and 40,000 appliance dealers, will have $1,500,000 ad budget for September-October campaign, using TV along with local newspapers and radio . . . Glidden Co. to advertise new Spred Satin rubber latex emulsion “wonder paint” for interiors, to use TV along with radio, news- papers, magazines, thru Meldrum & Fewsmith, Cleveland . . . Scrip to Israel, corporation headed by Bartley C. Crum, to promote sending certificates to persons in Israel which may be redeemed without ration points for food, clothing, etc., will use TV and radio, thru J. R. Kupsick Adv., N. Y. . . . BAB has issued 30-page report on dairy industry, de- signed to aid broadcasters in servicing accounts . . . Drewry’s Ltd., South Bend (beer), has named MacFarland Aveyard & Co., Chicago, to replace Maxon Inc. as agency, plans spending $250,000 rest of year on TV-radio, about 75% on Chicago and Michigan TV stations, remainder on regional radio; Drewrys is about to merge with Atlas Brewing Co. and Schoenhofen Edelweiss Co., both Chi- cago . . . Muntz TV sponsoring I Want to Get Married, ad- vice panel on KTTV, Los Angeles, Tue. 9-9:30 p.m. . . . Among other advertisers reported using or preparing to use TV: Dentabs Inc. (mouthwash & gargle), thru Ray- mond Morgan Co., Hollyivood; Kingan & Co. Inc. (meat packer), thru Warwick & Legler, N. Y.; Ben-Gee Products Inc. (bean sprout balm), thru Schoenfeld, Huber & Green Ltd., Chicago; Radion Corp. (TV antennas), thru Calkins & Holden, Carlock, McClinton & Smith, Chicago; W. F. Mc- Laughlin & Co. (Manor House coffee), thru Earl Ludgin & Co., Chicago; Thomas (hair & scalp specialists). New York (WOR-TV); Kentile Inc. (flooring material), thru Ruth- rauff & Ryan, N. Y. Network Acconnls: NBC-TV’s Saturday night All Star Revue and Your Show of Shows, resuming Sept. 8, are virtually sold out — only vacancy left on All Star Revue. Lineup for 8-10:30 show begins with Pet Milk and newly signed Snow Crop Marketers participating in All Star Revue, 8-9; Camel will sponsor 9-9:30 segment of Your Show of Shows, with Benrus, SOS (scouring pads) and Minnesota Mining Co. (Scotch tape) sharing 9:30-10 time and Lehn & Fink (Lysol, Hinds) and Eversharp-Schick alternating 10-10:30 portion weekly . . . Celanese Corp. of America (textiles, plastics, chemicals), starting Oct. 3, will sponsor Celanese Theatre alt. weeks on ABC-TV, Wed. 10-11 . . . General Foods (Maxwell House coffee) substi- tuting The Ad Libbers for Mama during 5-week vacation beginning Aug. 3 on CBS-TV, Fri. 8-8:30 . . . ABC-TV has bought Crusade in the Pacific, sequel to Crusade in Europe, will make it available to all affiliates for early fall local sponsorships. Some 80% of the program time on American TV sta- tions is sponsored, NARTB’s research dept, reported July 18 in analysis of program logs of 81 stations. This doesn’t include out-of-program or spot announcements, which averaged 216 a week per station, or 3.2 per hour of opera- tion. Analysis showed average TV station is on the air 82 hours, 25 minutes per week, exclusive of test patterns. Study also indicated TV stations devote average 6.5% of weekly broadcast time to “educational, religious and dis- cussion program.ming,” including travelogs, educational films and features, press interviews, forums and discus- sions, but not including news, weather or market informa- tion. Fifty-five interconnected stations took 50% of their pi'Ogramming from networks; 12% kinescope, 18% film, 17% live local programs. Twenty-four non-interconnected stations derived 46% of their program time from kine, 28% film, 29% local live shows. CBS will reflect reorganization (Vol. 7:28) right down to network identification announcements. Starting July 22, it’s: “This is CBS television.” Next day, it begins: “This is the CBS radio network.” Bulova president John H. Bullard presented plaque this week by NBC chairman Niles Trammell to commem- orate 10th anniversary of TV’s first commercial time sig- nal placed July 1, 1941. TV Slation & Network Nap New Television Map of the United States, in color, revised to July 15, 1951, showing locations and lists of all operating TV stations with present and projected (1951-52) network routes, was made avail- able with each copy of our TV Factbook No. 13. It’s 22x34-in., suitable for wall or desk, usable as work- ing outline. Demand for this map has been so great that we’ve ordered re-run, can offer extra copies at $1 each — or 50<‘ each in quantities of 20 or more. 'BEDROCK NOW-NO PLACE TO GO BUT UP': Still loaded with factory TV inventories that may be nearly as large as total in trade pipelines (see figures below), most TV- radio manufacturers resume post-vacation production determined to err this time on side of conservatism. They plan no great surge of output — however confident some are about fall-winter market, for which they normally begin producing about now. So it will be surprising, indeed, if second half 1951 production comes any- where near first half's 5,500,000-odd TVs, 8,000,000-odd radios (Vol. 7:27). Third quarter, with July-August vacation shutdowns running 2-4 weeks (Vol. 7:25-26), seems certain to fall off to negligible total compared to first quarter's 2,200,000 and second quarter's 1,110,000. Thereafter, it's anybody's guess. [Note : It's interesting fact that first half 1951 TV units are very few more than automotive industry's 3,103,111 passenger car production in same period.] Where do we go from current small-scale output — for it's no secret that all factories have post-vacation schedules in low gear? RTMA president Glen McDaniel told NAMM convention in Chicago this week: "I do not believe I am being unduly rash when I say that business will improve this fall and winter. To begin with, we are at bedrock now and there's no place to go but up. Second, the fall and early winter are normally the best sales months for our industry. Third, the quickness with which set manufacturers cut back their production in the second quarter has had its effect in lowering retail inven- tories and putting an end to threats of dumping. "Many of you will recall the somewhat alarming condition that arose in May when a public auction was announced in New York for the purpose of unloading |5 mil- lion worth of TV sets and similar auctions were started in other cities. The ex- tended credit condition of many dealers throughout the country was a cause of very grave concern to us when the auction movement started. Balance quickly restored itself, however, and dumping operations decreased. "I believe that the action of the manufacturers in sharply curtailing pro- duction was instrumental in avoiding financial catastrophe for many dealers. Dealer inventories are now generally being reduced, and a return to normal dealer buying can be expected by late summer or early fall." McDaniel held out hope for relaxation of Regulation W, approved by House a few days later (see p. 1). As to outlook for raw materials, he said: "It noYJ appears that, despite growing limitations on civilian uses of these materials, the industry will be able to manufacture as many TV and radio sets as the market will absorb before end of the year unless more severe shortages develop. This is due in part to progress the industry has made in its materials conservation efforts. . .achieved without any sacrifice of quality in the equipment or parts." * * 4= * Dun & Bradstreet report on dealer inventories should be out in week or so, giving first authentic figures on extent of pileup. Meanwhile, with RTMA releasing ever-mounting factory inventory figure each week, popular trade guessing game — and source of lots of whispers — is v/ho has most of the sets? Only frank admission that it was warehousing considerable numbers came from General Electric, which turned out somewhat over 300,000 sets first 6 months of this year, resumed production July 16 at rate of 75,000 per quarter — in other words, plans to turn out half as many second half 1951 as it did first half. It doesn't tell how many TVs it has in warehouses, but GE's TV sales chief David Davis said in Chicago this week: "We believe that the present excess inventory position of the industry will reverse itself into a definite shortage position before the end of the year. We 11 - believe that any inventories you may accumulate during the summer will be the best \ insurance that you will be able to satisfy the great acceptance and demand which we y expect to have this fall [when] we believe that the industry as a whole will be seriously curtailed. " Few others will admit big inventories, some pointing ruefully to the huge financial resources that enable GE to do what they cannot — even if they were minded to. Taking cognizance of whispers about its condition. Admiral issued statement denying it now has any factory inventory at all and revealing its strong financial position (see Financial Notes), particularly as one of the few big (or little) companies in TV-radio without any bank loans. * * * * Output of TVs dropped to mere 8270 (no private brands) during second summer plant vacation week, ended July 13. Radios totaled only 99,667 (88,673 private). The TVs compare with 12,817 week preceding, radios with 74,863 (Vol. 7:28). Radios were 72,553 auto, 21,964 home, 5150 portable. Factory inventories of TVs went up a bit more — to 744,162 from 739,945 week before. Radio inventories were 351,368, down from 406,046. RTMA revised 6-month output figures now show 3,331,268 TVs (vs. 3,136,300 same period last year) and 8,027,254 radios (vs. 7,333,600). Of these, 2,199,669 TVs and 4,343,600 radios were produced during first quarter. WHAT CBS COLOR SETS WILL BE LIKE: CBS-Columbia Inc, now plans novel color receivers with 2 picture tubes — one tube 17 or 20-in. for black and white, the other 10-in. (magnified to 12%) for color. Proposed models would have tubes side-by-side and/or one above the other. "Shot-in-dark" estimate of price: S600. That's latest from big radio network’s manufacturing subsidiary, revealed by its president David H. Cogan. But first color production, he said, will be $500 10-in. (magnified) color-monochrome set with disc that splits to give black & white (Vol. 7:23). Pilot run of 500 is slated for late August, going to 300-a-day rate in September — "if we can get materials, and we're having a little trouble." Then will come $249 "slave" unit with 10-in. tube, along with a $400 color- monochrome set. Thereafter, the 2-tube set may emerge in October. Plan is to devote former Air King factory one-third to color sets, produce 25,000 by year's end. Air King, said Mr. Cogan, has been making 20,000 black-and- white sets monthly — heavily in private label field (including Sears Roebuck). **!}!!{: If ardor for FCC-approved CBS color system has been dampened by RCA's very successful demonstrations of tri-color tube last week (Vol. 7:28), it isn't apparent among CBS folk. Well-attended showings of its color models at Chicago Music Trade Show this week were deemed huge success. Said Mr. Cogan: "We aren't taking orders, because we have orders for all we can produce from our established distributors — and they're on allocation." What did he think of RCA's color, as he and other CBS executives saw it last week? "No better," he replied, "than last year. Do you think their set is a pro- duction item? With 54 tubes? And a tri-color tube that would cost $200? "RCA says our sets are too expensive. Then they say they can bring their costs down. Don't they think we can bring our costs down, too?" CBS chairman Wm. Paley may differ with Cogan in evaluation of RCA color. According to Variety, Paley "reportedly told friends he was impressed by the 'tre- mendous improvement '.. .He is said to have been especially impressed by RCA's compat- ibility feature... He observed, however, that CBS colors are still more brilliant." CBS has tried the RCA tri-color tube with its system, and Cogan reports: "It doesn't compare. Don't think we wouldn't use such a tube if there were a good one. We'd be glad to have it. We're in the tube business, too [Hytron] — not in the manufacture of discs and motors. It just happens that the disc is the best and cheapest way of producing color today." It would take only 4-5 extra receiving tubes to incorporate tri-color tube 13 in CBS sets, he added. He emphasized rejection of tri-color tube when he said that drum sets for 17-in. or larger pictures are planned next year. Besides TV and radio advertising, splurges in Life, Saturday Evening Post, etc. are planned in promotion campaign this fall-winter. But CBS is now treading cautiously, for it faces (1) problem of keeping that two-thirds line of monochrome receivers moving; (2) task of meeting pro-compatibility arguments of main body of the TV-radio industry, who also are good advertisers and promoters; (3) probable need to persuade own color set customers their sets won’t be obsoleted soon. As a starter, it has published booklet "Questions and Answers About Color Television." Topics & Trends of TV Trade: namm’s annual mu- sic trade show in Chicago this week resulted in little, if any, more business for TV manufacturers than did dull summer furniture market there few weeks earlier. Re- ports were uniformly “blue” — Retailing Daily's Martin Rosenblum even describing how some of the exhibitors (Vol. 7:28) whiled away their time (as retailers merely “looked around”) by watching ball games on their display sets or playing gin rummy. Consensus seemed to be that it was slowest such show in many years, that much of the time was spent bemoaning sad state of business and en- gaging in guessing games about when upturn would come. Reporter Rosenblum even told of furniture chain picking up 17-in. tables at $85, to be promoted shortly at $139 retail; of “secondary manufacturers” quoting 17-in. leatherette-covered table at $105, 20-in. table at $130, 20-in. open console at $140, latter 2 with tax-warranty included. New York trade circles sat up and took notice this week when Gertz dept, store in Jamaica advertised 17-in. table sets (made for store’s own Ambassador brand by Starrett) at $99 plus $20 to cover excise tax year’s war- ranty on picture tube, 90-day warranty on replacement parts. Needless to say, the sets sold like the proverbial hot cakes. Olf-brand manufacturers are known to be oifering enormous concessions to dealers to help move factory in- ventories, and it’s generally felt some mortalities are in- evitable. But the top brand producers insist they’re stick- ing to wholesale price schedules, pressing their outlets to promote more and more, some even paying 100% of the retail advertising bills. In fact, one of biggest told us last week that, so far as his company and others at top level are concerned, business at retail level has been “ex- traordinarily good” this summer — better than seasonally expected; even better than same time last year. Factory sales are another matter, and the big boys are simply biding their time until retailers unload; they’re confident of good fall-winter season, though nobody thinks it will be as good as lush 1950’s. Some think the industry was lulled by easy selling last year into thinking that condition would be permanent. ❖ ❖ ❖ ^ Prices being quoted on such new models as are coming out don’t indicate any price collapses— quite the contrary. Magnavox’s 2 additions to line are TV-radio-phono com- bination at $595 list in mahogany, $610 blonde, and TV console at $475. Zenith has 5 new super-dooper 19-in. mahogany units selling from $1300 to $1925. Stromberg- Carlson adds 12 new sets, lowest priced being 17-in. at $290, with 4 new 24-in. at $675, $725, $795, $975 proposed list. Pilot’s new sets range from 17-in. mahogany table at $299.50 to 20-in. console at $495. Trad has 24-in. console at $340, 20-in. console at $220. Video Products Corp., now operating as Sheraton Television Corp., has 20-in. line starting with table at $300 up to console at $379, plus 24-in., unpriced. Rash of articles on how to hypo TV sales has broken out in current issues of merchandising publications. For example: July Electrical Merchandising features spread on “Two Ways of Riding the TV Slump,” discusses results achieved by Algene Electric Co., Bridgeport, Conn., based on good servicing department, very little advertising, no price-cut promotions or big trade-in offers. Contrasting methods used by Music Shop, Cleveland, are described in same article; it increased sales volume from $20,000 to $75,000 a month on basis of large trade-in business built up solely by newspaper advertising. Store does no in- stallation or servicing. Sales resistance fostered by color ballyhoo is hot topic in July Radio & Television Retailing. Two-page question- answer feature, “What to Tell Your Customer About Color Television,” points to paucity of color programs and sets, high cost of sets, “open door” to compatible systems, etc. Another article, “How One Dealer Overcomes the Color TV Sales Bogey,” points to success of Sneed’s Radio & Television Co., Tulsa, in telling public via ads and talks that “folk who ‘wait’ will miss big shows now on air.” In same magazine is story on how to “Sell More TV Sets via the Home-Trial Method.” “How a Music Dealer Sells Television” through planned promotions, intelligent displays, alertness to changing times is discussed in July Radio & Television Journal article on Hopper-Kelly music store, Seattle. Overcoming credit restrictions is topic of big feature in July 12 Retailing Daily, which cites “new, aggressive merchandising plan” which it says boosted TV sales of Dorn’s House of Miracles chain in Los Angeles $500,000 in 5 months. Dorn’s, says article, turned “temporary defeat by hands of Regulation W into startling sales victory.” Owner Harry Dorn is quoted: “The crux of the whole prob- lem is that you must offer sets at a low enough total price so that the down payment is also budgetwise.” Note: In anticipation of end of freeze, NARDA is in- stituting unique program to acquaint dealers from non-TV areas with problems and techniques of TV retailing. NARDA members in TV areas are being asked to serve as hosts to dealers from non-TV cities to give them first-hand look-see into the unique aspects of TV receiver selling. * Sylvania is out with 14 new models, four embracing its new “Halolight” for better viewing comfort (Vol. 7:23, 25,28). Three 17-in. tables sell at $250, $300, $310; one 20-in. at $400. Two 17-in. open consoles are $370 & $380; two 20-in. with Halolight are $500 & $520. Two 17-in. con- soles with doors are $400 & $420, and 20-in. console with Halolight $530. Console combinations are 17-in. at $550 & $570, and 20-in. with Halolight $660. Carried over are 12 models, ranging from 14-in. table at $220 to 20-in. consoles with doors at $490 & $510 to 17-in. combination at $550. Some new lines have uhf converters offered separately, Sylvania’s at $44.95 and Stromberg’s promised later this year at around $50. 14 - Trade Personals: Marvin Hobbs named electronics ad- visor to chairman John Small, Munitions Board, succeeded as chief of Office of Electronics Programs by Col. C. A. Poutre, Signal Corps . . . Edward M. Tuft, RCA Victor v.p. and director of personnel, appointed to newly created post of v.p. in charge of organization development, coordinating company’s manpower for expansion and development; Albert F. Watters promoted to director of personnel . . . K. R. Patrick, gen. mgr., engineering products dept., RCA Victor Ltd., Montreal, new president of Canadian Aviation Electronics Ltd. . . . Joseph Thwaites appointed mgr. of electronic research, Canadian Westinghouse Ltd. . . . Rob- ert H. Bishop, Sylvania sales v.p., resigns as of Sept. 1 to join Drew Chemical Co., N. Y. . . . M. D. Schuster, ex- Hoffman Sales Corp. gen. mgr., recently with Magnavox as district mgr., has returned to Hoffman Radio as na- tional sales mgr. under R. J. McNeely, director of sales . . . William J. Halligan Jr., 25, eldest son of founder-presi- dent of Hallicrafters, Notre Dame graduate. Navy radio veteran, appointed chief of Hallicrafters communications equipment sales , . . Robert D. Dunn, ex-asst. treasurer, Phillips Export Corp., promoted to v.p. . . . Henry R. Geyelin, DuMont receiver sales div. adv. mgr., appointed to coordinate advertising of various DuMont activities . . . Muriel Young, ex-Raymond Loewy Associates, appointed head of Emerson industrial design dept. Time Magazine’s July 23 cover story on RCA chair- man David Sarnoff discloses that he has “plans to expand RCA into new territory.” It states: “He is already itching to put RCA into the electric-appliance business, NBC into the movie business (to make films for TV), and is planning a ‘pay-as-you-hear’ TV system which would not depend on telephones as does Zenith Radio Corp.’s system.” Trade gossip has long had RCA entering appliance fields, and it’s known to have looked into several properties. This week, there was unconfirmed report that IT&T, which last year purchased Farnsworth, was negotiating for control of Coolerator Corp. Trade Miscellany: Crosley distributor meetings to be held in Chicago, July 26-27 . . . Philco holding no summer convention but has called distributors (no dealers) for in- formal sessions in New York’s Waldorf-Astoria, Aug. 3-4, and in Chicago, Aug. 6-7 . . . Westinghouse’s new TV- radio line to be showed to distributors in New York Aug. 6, Chicago Aug. 13, San Francisco Aug. 20 . . . Admiral calling in some 200 executives of own and distributor branches for Aug. 10-11 meetings in Drake Hotel, Chicago — won’t show new models but will conduct “clinic” on selling, on uhf & color, other merchandising problems. Merchandising Notes: “Price is now the deciding fac- tor in moving goods,” said William Tobey, v.p. of big Abraham & Straus dept, store, Brooklyn, in reporting July 20 on “more than satisfactory” volume achieved this week in selling Wilcox-Gay 17-in. table model at $129 (regu- lar list $290), 17-in. console $159 (regular $359), 19-in. console with doors $249 (regular $475) . . . Kaye-Halbert Distributors Inc., Los Angeles, offering customers 5 days with room and board at 3 southern California and Mexican resorts with purchase of each model priced from $369; salesman gets clothing certificates for each set sold, same type paid vacation if he sells 24 sets . . . Big Hudson Ross chain opens branch in Chicago’s Merchandise Mart soon, to be managed by Frederick Dumont . . . DuMont new policy warrants its TV tubes sold as replacements for 6 months from date of installation in user’s set; formerly it was 6 months after shipment from factory. Move is de- signed to stimulate replacement-conversion business among the 1,000,000 TVs 3 years old or more and the 3,000,000 sets 121^ -in. or smaller. Mobilizaiion Notes: Top 50 defense contractors include 8 firms which are heavy producers of electronic equip- ment. This was revealed July 18 when Senate Small Busi- ness Committee made public list of companies receiving “heaviest concentration” of military orders from July 1, 1950, to June 1, 1951. Committee’s complaint was that 10 big firms got 40% of defense contracts during that period. Most of the “electronic” firms listed make many non- electronic military items. Two electronic firms made the “big 10.” They were GE, seventh with $500,000,000 in military contracts, and Bendix, tenth with $475,000,000. Other companies in elec- tronics field which appeared on list: Western Electric, 13th, $343,000,000; Westinghouse, 15th, $245,000,000; Sperry Corp., 21st, $198,000,000; Avco, 32nd, $122,000,000; RCA, 36th, $108,560,000; Raytheon, 39th, $103,500,000. Heading whole list was General Motors with $3.5 bil- lion, Ford with $1 billion. Among the first 10 were 6 air- craft companies in addition to Bendix — ^all of which are known to be deeply in production of aero electronic equip- ment (radios, radar, guided missiles, etc.). They are Boeing, Curtiss-Wright, Lockheed, Republic, United Air- craft, North American Aviation. * * ♦ ♦ Twelve electronic equipment firms received DPA cer- tificates of necessity for tax aid in expansion of produc- tion facilities during 2 weeks ended July 13. Largest went to General Radio Co. for expansion of facilities for pro- duction of electronic test equipment at Cambridge, Mass., estimated cost $725,000, of which 75% is to be amortized over 5-year period. Other certificates were granted to: American Lava Corp., Chattanooga, Tenn., titania dielec- trics, $362,000 at 75%; Amperex Electronic Corp., Wyan- danch, L. I., communication and industrial electron tubes, $83,750 at 75%; Sylvania (Radio & TV Div.), Buffalo, N. Y., ordnance, $67,524 at 75%; Tung-Sol, Bloomfield, N. J., electron tubes, $65,951 at 75%; Gorham Mfg. Co., Providence, R. I., electronic mixer assemblies, $63,419 at 85%; Reeves-Hoffman Corp., Carlisle, Pa., oscillators, $50,- 765 at 75%; Clarostat Mfg. Co., Dover, N. H,. resistors, $40,740 at 75%; General Instrument Corp., electronic equipment, $30,612 at 85%; Polorad Electronics Corp., Brooklyn, N. Y., receiving equipment, $18,260 at 85%; Raytheon, Waltham, Mass., transformers, $14,079 at 85%; DuMont, cathode ray tubes, $6,038 at 85%. Plant expansions have been authorized by NPA under construction control regulations (Order M-4) for 3 manu- facturers of electronic equipment during 2 weeks ended June 30. General Electric was given approval to construct addition to laboratory at Syracuse, estimated cost $2,133,- 000. 3Iagnavox got OK for new factory at Ft. Wayne, to cost $329,000. Sylvania was authorized to build industrial building at Buffalo, $315,000. Ray S. Erlandson, president of San Antonio Music Co., was reelected president of National Assn, of Music Mer- chants by NAMM board at Chicago convention. Harry E. Callaway, Thearle Music Co., San Diego, was renamed v.p. Other officers elected: Thomas J. Holland, Glenn Bros., Salt Lake City, secy.; Ben F. Duval, W. W. Kimball Co., Chicago, treas. Wm. R. Card was reelected executive secy. Assn, of Electronic Parts & Equipment Manufacturers, at Chicago meeting this week, elected John H. Cashman, Radio Craftsmen Inc., as chairman; Francis F. Florsheim, Columbia Wire & Supply, vice chairman; Helen S. Quam, Quam-Nichols, treas.; Kenneth C. Prince, executive secy. RTMA’s inning on excess profits tax bill comes Aug. 2 when spokesmen (probably chairman Sprague and/or president McDaniel) will testify before Senate Banking Committee. 15 Financial & Trada Notes: Admiral’s president Ross Siragusa reported this week (1) that company “has no completed TV sets in inventory at the factory level,” and (2) that “while Admiral has large untapped available bank credits, it is free of debt financing, none is contemplated, and the company has expanded its working capital to $25,- 700,000 compared with $21,900,000 in December while net worth has increased to $35,900,000 for the same period.” To all Admiral dealers, Siragusa sent letter with first half 1951 financial figures, stating “Admiral’s financial health is in the best shape in its history,” cautioning them to consider financial responsibility of manufacturers from whom they get goods, forecasting “healthy resumption of TV buying in the fall.” Company resumed production this week after vacation period, gearing output to demand of distributors. Admiral sales first 6 months of 1951 totaled $103,587,- 355, net profit after taxes $4,093,421 ($2.12 per share), as against $103,295,848 sales and $8,485,184 ($4.24) profit for same 1950 period. Second quarter sales were $33,265,807, net profit $1,690,078 (88^) vs. $57,004,439 sales and $4,326,- 755 profit ($2.16) same 1950 quarter. Most of second quar- ter earnings, it was reported, came from readjustment of tax reserves. Drop in volume is shared with whole TV- radio industry, Siragusa blaming it on “general consumer apathy attributed to stringent govt, credit restrictions, 10% excise tax and confusion over color TV.” Govt, orders have increased, deliveries begun, ex- pected to reach peak within 6 months so that “the $5,000,- 000 to $6,000,000 rate of delivery per month of govt, or- ders will compensate in Admiral activity for any decline in civilian business occasioned by material shortages.” :(c ^ ^ ^ United Paramount Theatres Inc. reports consolidated earnings of $4,849,000 for first 6 months of 1951, includ- ing capital gains and company’s share of earnings of non- consolidated subsidiaries. Earnings are equal to $1.49 per share, compare with $5,660,000 ($1.74) for first half 1950. Provision for Federal taxes for first half amounted to $3,256,000 vs. $2,445,000 same period last year. Quarter ended June 20 showed $2,058,000 earnings (66^) com- pared with $2,467,000 (93(^) for second quarter 1950. President Leonard Goldenson reported proxies on pro- posed UPT-ABC merger (Vol. 7:21, 26, 28) are overwhelm- ingly in favor. Through July 13, proxies from 12,319 stockholders representing 1,183,503 shares voted in favor of merger proposal and 75 holders representing 8474 shares opposed; thus, 36% of outstanding stock has been voted in favor, .03% against. V-loan credit of $50,000,000, plus additional unsecured credit line of $20,000,000 was arranged this week by Avco president Victor Emanuel, who stated they’re to finance de- fense contracts for “wide range of electronic equipment” along with tanks and aircraft engines and airframe com- ponents. It’s largest loan processed to date through New York Federal Reserve Bank, participants being 14 banks headed by Bankers Trust. How higher taxes are biting into profits is illustrated in GE statement for first 6 months, showing all-time rec- ord sales of $1,184,735,000 and pre-tax profit of $212,326,- 000 — latter reduced by 139% tax increase to $70,326,000 ($2.44 per share) as against $77,445,000 ($2.68) same period 1950. June quarter sales were $615,047,000, net earnings $35,329,000 ($1.33). International Resistance Co. has purchased Hardy In- strument Co., Forest Hills & Long Island City, N. Y., makers of Microstak rectifiers, etc., will operate it hence- forth under IRC specialty div., Philadelphia; president Norman Hardy and chief engineer Benj. Solow join IRC. Motorola sales for first half 1951 were approximately $72,000,000 compared with $70,568,388 for same 1950 pe- riod. Second quarter sales slumped to $25,500,000 from $34,717,415 for second quarter 1950 due to falling off of TV demand. Forward buying of TV sets first quarter this year, says preliminary report, “borrowed” greatly from sales in first quarter. Said July 16 letter from president Paul Galvin to stockholders: “Assuming a Korean armistice and no world war, this is about the way the next six months appear in prospect. We do not expect to equal the dollar volume attained in the last six months of 1950, nor do we expect to show earnings equivalent to those of the same period of 1950. Volume reduction will be influenced greatly by controlled material govt, regulations which will limit our production of civilian goods. Car radio sales should parallel auto- mobile sales which, in turn, will be curtailed by govt, regu- lations. TV sales, in addition to regulations limitations, will be influenced by the forward buying of the past year, as well as by the restriction of markets due to the [FCC] ‘freeze’ . . . Our home radio and communications sales, however, will probably remain about the same as in the last 6 months of 1950. Our govt, business will be very moderate for this period because military contracts for the most part require lengthy preparation and tooling and, therefore, will not influence our billings to any substantial degree until 1952. “Net profits, in addition to being influenced by a lesser volume of business for the next 6 months, will be affected by the excess profits tax. Nevertheless, at this writing, we expect to earn a satisfactory profit for the year 1951.” * Hf * OflScial Films Inc., Isaac D. Levy’s big films-for-TV project which recently absorbed Jerry Fairbanks Studios (Vol. 7:22,27), holds special stockholders meeting Aug. 2 to change authorized capital from 1,000,000 shares of Class A common (10^ par), 1,000,000 Class B (10^) and 36,230 shares of 35^ cumulative preferred ($5 par) to 2,000,000 shares of common — eliminating distinction between A & B. Preferred has already been redeemed. Board will also be increased to 12 members, says letter by president Aaron Katz accompanying notice signed by Emanuel Sacks (RCA v.p.) as secretary. Short interest in TV-radio and related stocks on New York Stock Exchange showed these changes between June 15 and July 13, NYSE reported this week: Admiral, 42,445 shares on June 15 to 37,405 on July 15; Avco, 19,680 to 20,280; CBS “A,” 12,283 to 3400; CBS “B,” 7489 to 1452; Emerson, 7368 to 5775; GE, 11,215 to 13,296; Magnavox, 20,757 to 17,373; Motorola, 16,487 to 17,373; Philco, 18,444 to 18,252; RCA, 25,223 to 29,986. Society of Motion Picture & Television Engineers won’t participate in forthcoming hearings on requests for theatre-TV frequencies (Vol. 6:2, 9; 7:17), president Peter Mole announced following June 20 board meeting in New York. Pointing out that SMPTE is a technical organiza- tion not concerned with “commercial or industrial matters as such,” Mole said: “The Society is convinced that the matters under consideration at these hearings can be ade- quately . . . handled by the qualified engineering repre- sentatives of the motion picture organizations.” In letter to FCC, Society explained that its mission to coordinate various technical aspects of theatre TV has been accom- plished, invited Commission and 8 motion pictm-e organiza- tions to “call upon it at any time” for answers to specific technical questions. Theatre-TV hearing, scheduled for Sept. 17, will probably be postponed because of crowded FCC calendar. 16 Telecasting Notes: Senate crime investigating commit- tee (Kefauver) to “play” return TV engagement in New York shortly after Aug. 1 under new chairman, Sen. O’Conor (D-Md.), who will permit telecasts of new probes. Meanwhile, ABC-TV has optioned rights to Sen. Kefauver’s syndicated feature and book. Crime in America, will use factual stories as basis for dramatic series . . . ABC has purchased Eagles Bldg., 4-story structure in downtown San Francisco, for studio-office space, will spend $1,000,000 on alterations including 70xl00-ft. studio 30 ft. high accom- modating audience of 750 and 3 more TV studios each 30x40-ft. . . . NBC-TV officials Lyman Munson, Fred Wile, Sam Fuller, Pete Barnum were in Hollywood this week seeking studio space for expected insurge of network pro- grams with completion of coast-to-coast cable-microwave facilities; they were said to be eyeing big Walt Disney sound stage, reportedly available for lease . . . Uncertainty about delivery of steel for TV-FM tower in Toronto may delay completion schedule for Canada’s first TV outlet, but CBC engineers are still aiming for completion in March 1952 (Vol. 7:22) ... In theatre-TV experiment celebrating opening of Cyrano de Bergerac film, Washington’s RKO Keith’s Theatre July 18 picked up 5 minutes of WTOP- TV’s local Mark Evans-Elinor Lee program discussing the film and Douglas Edwards’ 15-minute newscast which fol- lowed— commercials and all. Theatre official said “the audience loved it,” applauded after news show . . . Young America Films Inc. has acquired TV film rights to “My Most Unforgettable Character,” regular feature in Reader’s Digest, plans series of half-hour shows . . . Tele- vision Authority and the 4 TV networks July 16 announced statement of policy pledging expansion of opportunities for Negro artists on TV . . . Still under TVA picketing after 16 weeks of strike, KFI-TV, Los Angeles, has dropped more than dozen employes; it looks like impasse with union until FCC approves proposed $2,500,000 sale (Vol. 7:23) to Don Lee Enterprises (Tom O’Neil) . . . Screen Actors Guild July 17 announced signing of collective bar- gaining contracts with 37 companies, “most of which make TV films” . . . McCall’s Magazine setting up awards for achievements by women in TV-radio — 3 to go to broad- casters, 3 to executives — for service to community, to women, to children . . . WBZ-TV, Boston, raises base hour rate Aug. 1 from $1000 to $1250, one-min. from $200 to $250, changes Class A time to 7-11 p.m. daily except Sun. (6-11 p.m.) . . . KSTP-TV, St. Paul, Aug. 1 raises base hour rate from $650 to $800, one-min. from $130 to $160 . . . WCPO-TV, Cincinnati, revises July 1 rate card to fix 6-11 p.m. Mon.-Fri. as Class A time and 7-11 p.m. daily Class A announcement time; also to raise one-min. rate from $110 to $150, 20-sec. rate from $92.50 to $135. Republic Pictures’ first sale of its old films to TV (Vol. 7:23, 26-27) was deal reported this week with KNBH (NBC), Los Angeles, involving package of 26 mystery fea- tures and 48 serial episodes for $77,700. Films were made between 1938 and 1945, sold on basis of one TV run for each feature, 2 for each serial. KNBH was said to have turned down Gene Autry, Roy Rogers and Red Ryder west- erns on ground one-run price of $30,000 each would be too steep for a sponsor. Also on films-for-TV front, Snader Telescriptions this week changed name to Snader Produc- tions, announced plans to distribute full-length films to theatres as well as TV. Snader has exclusive American rights to 13 British Alexander Korda films, of which 9 will be released both to theatres and TV, 4 to TV only. Negotiations with ASCAP for TV station performance rights have broken off, and petition was filed July 18 by Judge Simon Rifkind and Stuart Sprague on behalf of 56 stations asking Federal district court in New York to fix reasonable terms and conditions for local station and net- work licenses. Telecasting industry employs seme 12,500 persons as staff members of TV stations and networks, according to fourth annual TV Employment & Wages Report compiled by NARTB employe-employer relations dept, under Rich- ard P. Doherty. Report shows average TV station em- ployed 85 persons (61 full-time, 24 part-time) during late spring 1951 vs. 57 in 1950 and 66 in 1949. Average weekly station payi’oll is $6267. Median salary for non-super- visory technical personnel ranges from $63-$84 weekly, ac- cording to job classifications; average for supervisory tech- nicians is from $153 for chief engineers to $98 for assistant technical supervisors; average for film personnel is $70-$81. Supervisory program personnel average is $51-$135, non- supervisory $56-$83. Much-needed uhf signals at top of 470-890 me band will be broadcast by RCA-NBC’s experimental KC2XAK, Bridgeport, beginning approximately Aug. 1. FCC has been asked for permission to operate station on 850-856 me, with directional antenna fed by 300-watt transmitter, radiating 110 kw visual power, 22.4 aural, towards New York. Station has served as industry “guinea pig” for over 1% years, operating on 529-535 me. North Dakota’s first TV application was filed this week — by WDAY, Fargo, seeking Channel 6. Only other state with no TVs as yet on file, among the 421 thus far is Montana. Also applying this week was WIMA, Lima, O., asking for uhf Channel 35. [For further details, see TV Addenda 13-B herewith; for complete list of all pend- ing TV applications, see TV Faetbook No. IS with Ad- denda to date.] “Trial” community antenna installations (Vol. 7:28), numbering 18-20, are operating in New York State with Technical Appliance Corp. equipment, according to sales engineer S. K. McNeil. They’re called “trial,” he says, because Bell Telephone has yet to write code governing use of its poles. Therefore, he adds, “Until this has been writ- ten, most of the installations will be only in the stage of running to the first group of homes or down the hill to the edge of the community.” Network TV-Radio Billings June 1951 and January-June 1951 (For May figures, see Television Digest, Vol. 7:25) Network tv time billings for first half of this year rose to $52,037,560, excluding non-reporting DuMont, auguring far better than $100,000,000 year inasmuch as best months are ahead. Total compares with only $14,- 032,166 for same 1950 months. June billings slipped to $8,432,462 from May’s $9,398,488 (Vol. 7:25) and AprU’s $9,089,454 (Vol. 7:21), but this is seasonal drop — and July billings will probably fall still lower. June billings, how- ever, compare with only $2,820,711 in June 1950. Network radio billings in June went down to $14,872,- 111 from $15,145,753 in June 1950 and $16,518,337 in May of this year — also seasonal drop. All 4 AM networks showed declines. Total radio time sales for first half 1951 was $95,489,672, down from $96,939,120 for same 6 months of 1950. The figures by Publishers Infonnation Bureau: NETWORK TELEVISION NBC . CBS ABC _ June 1951 $ 4,244,240 2,900,782 1,287.440 June 1950 $ 1,574,771 840,374 405,566 Jan. -June 1951 $26,739,532 17,069,328 8,228,700 Jan.-June 1950 $ 7,501.236 4.604,396 1,926,534 Total $ 8,432,462 $ 2,820,711 $52,037,560 $14,032,166 NETWORK RADIO CBS - $ 6,220,959 $ 5.837,873 $39,285,216 $36,061,897 NBC - 4,739,193 5,200,901 30,000,036 32,910,043 ABC . 2.720.268 2,902,341 17.344,512 19.473.536 MBS . 1,191,691 1,204,638 8,859,908 8,493,644 Total $14,872,111 $15,145,753 $95,489,672 $96,939,120 PUBLISHED WEEKLY BY RADIO NEWS BUREAU, 1519 CONNECTICUT AVE. N.W., WASHINGTON 6, D.C. TELEPHONE MICHIGAN 2020 • VOL. 7, NO. 30 July 28, 1951 {Station Power Hikes — Everyone Gains, page 1. Modus Operandi for Ending the Freeze, page 2. 10 Station Sold to Date, More Pend, page 3. Color Labs Race CBS’s ‘Head Start,’ page U- Congress Breaks Regulation W Log-Jam, page 7. Business Outlook & TV-Radio Trade, page 7. New Steel-Copper Cuts in Prospect, page 8. Trade, Mobilization, Financial Notes, pages 9-11. Full Text of TV Power-Boost Order Published as Supplement No. 74, herewith City-by-City Deadlines for Comments in Allocations Proceedings Published as Supplement No. 73, herewith STATION POWER HIKES-EVERYONE GAINS: Wider TV station coverage and improved pic- tures in a few areas — in a matter of days. Similar improvement for virtually all other TV markets — potentially. And all before end of freeze. That's meaning of "power increase" order issued by FCC this week (full text in Supplement No. 74 herewith), its first action after adopting "written hearing" procedure designed to hasten end of freeze (see story, p. 2). Action won't revolutionize TV coverage overnight, by any means, but it does offer prompt relief for those few markets cursed with very weak signals — while promising long-run benefits to public everywhere and enhancing set markets and sta- tions' coverage claims. Specifically, FCC will permit stations to radiate up to 50 kw effective ra- diated power (ERP) , with heights up to 2000 ft., for 6-month periods renewable at end of each period. Only 5 exceptions are stations designated as "community" under old rules — WGAL-TV, Lancaster, Pa. ; WDEL-TV, Wilmington, Del, ; WNHC-TV. New Haven, Conn. These are limited to 1 kw ERP, presumably with 2000 ft., though ruling isn't specific about height. Though new order leaves some questions \manswered, one provision is clear: Any station now operating 5-kw transmitter at less than full output may run it wide open simply by requesting and obtaining FCC permission to do so. Permission may be requested informally, by letter or wire. Commission promises quick action in absence of complications — and few are expected. FCC engineers count 45 stations now running 5-kw transmitters at less than full 5-kw rated output. These may boost powers simply by turning a few transmitter dials. Of these, most will gain only slightly. A few should show marked improve- ment; for example. New York's WJZ-TV may go from 3 kw to 16-18 kw, WOR-TV from 9 kw to 22 kw. Columbus' WTVN can hike from 6 kw to 19.7 kw ; Miami's WTVJ is eligible to jump from 2.2 kw to 16.5 kw, etc., etc. [For list of all 45 stations, with present transmitter outputs, see p. 6. By using Television Factbook No. 15. showing present ERPs of these stations, en- gineers may calculate ERPs immediately possible.] Within 48 hours, 15 stations had requested power hikes (see list, p. 6). * * * * Confusion arises where stations are now operating transmitters full blast, as most of them are. People at FCC differ on interpretations, but most think such stations may increase ERF and coverage by installing antennas with greater gain and/or by building higher towers — but not by installing bigger transmitters. One commissioner puts it this way; "We don't want people investing large sums for equipment for facilities which won't be final until end of the freeze." He said reason for permitting use of higher-gain antennas, but not more powerful trans- mitters, is that antenna is minor investment. Copyright 1951 by Radio News Bureau 2 Yet some transmitter powers may be doubled, according to engineers, simply by modest changes in final stage. They're awaiting Commission clarification. Only exceptions to ban on larger transmitters are those 6 non-commtmity stations now using transmitters rated at less than 5 kw. These may apply for CPs to install 5-kw units, though they may decide to wait until end of freeze to buy even larger transmitters to achieve 100-200 kw. These are the 6 stations, with maximum output of present transmitter in parentheses: WTTV, Bloomington (1 kw) ; WFMY-TV, Greensboro (.5 kw) ; WLWD, Dayton (3 kw) ; WBNS-TV. Coliimbus (.5 kw) ; WICU. Erie (.5 kw) ; KDYL-TV, Salt Lake City (1.2 kw) . FCC emphasizes power increases aren't permanent, have no influence on final powers to be authorized at end of freeze. For any permanent changes, all stations remain subject to same limitations held throughout freeze — namely, higher antennas may be authorized but powers will be reduced so that coverage is no greater than with previous facilities. FCC action on Empire State Bldg, antennas is typical. Commissioner Jones dissented for 2 reasons; (1) "After 3 years of freeze, the first to benefit are the existing stations. I don't think that's right." And — (2) Possibility of prejudicing final decisions re powers, heights, mileages, etc. MODUS OPERANDI FOR ENDING THE FREEZE: Granted virtual free hand to write own ticket on procedures to end freeze — something almost unheard of in the ferociously com- petitive radio-TV industry — FCC this week whipped out an order adopting "written hearing" with time schedule pared to the bone. Final decision a few weeks after Nov. 26 is now entirely possible, barring complications. And there should be few of these, considering tenor of industry. Commission liked the "staggered" system proposed last week (Vol. 7:29) and, as expected, compressed whole thing into 4 months instead of suggested 5 — July 25 to Nov. 26, with first filings due Aug. 27. Taking order of testimony originally set up in event an oral hearing were held, FCC regrouped the 40 groups therein into 9 geographical areas, gave them dead- lines week apart — in lieu of 10 days previously suggested. Then, opposition has 21 days to reply, instead of suggested 30. After that, there are 2 weeks for briefs on legal questions which may arise, instead of opportunity for oral argument. FCC is sending copies of order of testimony, with filing deadlines, to all parties or their attorneys. For quick reference, we've listed cities, with respec- tive deadlines, in Supplement No. 73 herewith. Parties may still request oral presentation or cross-examination. But it's no secret that Commission intends to be tough in granting requests — probably won't grant any except when it fears possibility of successful challenge in courts. Actual mechanics of written procedure requires that: (1) Parties may amplify, with sworn statements & exhibits, their original comments (digested in our Supplements 72 to 72-C). No new proposals are permitted. (2) Basic allocations policy issues, contained in Appendices A & B of FCC's plan (see TV Allocation Report), remain undecided. But parties aren't permitted to suggest any new changes beyond those proposed in comments already on file. (3) Fifty copies of all statements must be filed with FCC. They may be in- spected at Commission offices or borrowed "for reasonable periods." Parties are "encouraged" to send copies of their statements to other parties affected. Sepa- rate statements must be filed for comments on each party's proposals. Commission's schedule for DuMont's plan, and oppositions thereto, caught many parties off-base. Seems FCC intends not only that DuMont conclude its pitch by Aug. 27, but that all opposing parties file their objections to DuMont plan by same date, rather than Sept. 17. Engineers fear they can't make it. Looking beyond Nov. 26, here's situation regarding true lifting of freeze: . Commission hopes to clean up oral presentations, if any, as they arise. But some may be dangling after Nov. 26, take up undeterminable period thereafter. Next, time is needed to write final decision. Commission hopes decision will be crystallizing as comments are filed, take only few weeks to write. 3 After final decision, how long will FCC accept applications before starting to make grants? Chairman Coy has continually spoken of 2 months, but some commis- sioners are thinking about one month, saying people can fill out everything but engineering data almost anytime. Beyond this. Commission is .lust beginning to consider ways and means of speeding up comparative hearings in cities where applicants will outnumber channels — meaning virtually every sizeable market — sure to run well into 1952 & 1955. Commission maintains its budget is so limited that it can't expand personnel required for comparative hearings — which includes, in additional to examiner, one attorney, one engineer and secretarial help for each hearing. Some think an appeal to Congress might bring special appropriation, if it's timed right and international conditions permit. That's possible, considering at- tentive Congressional ear given to outraged howls from "frozen" constituents. 10 STATIONS SOLD TO DATE, MORE PEND: Thus far, exactly 10 TV stations (out of 107 total on air) have been sold to new owners since postwar emergence of telecasting — aside from proposed transfers, by way of merger, of the 5 ABC-owned outlets into projected new American Broadcasting-Paramount Theatres Inc. (Vol. 7:21). In most cases, reasons for selling were simply that operators couldn't make ends meet during TV's days of rough fiscal sledding and/or could sell out at handsome profits. San Antonio's KEYL, which began operation only VA years ago — on Feb. 15, 1950 — is being sold to George Storer group for $1,050,000 at time it's just begin- ning to turn a profit and with future outlook very bright. Successful operator of 7 radio stations and 5 TVs (WJBK-TV, Detroit ; WSPD-TV, Toledo ; WAGA-TV, Atlanta) , Storer 's Fort Industry Co. wants to latch onto FCC-imposed limit of 5. So it outbid another group seeking KEYL, said to be San Antonio Express (KTSA) , by $10 a share. Storer is also TV applicant for Cincinnati, Wheeling, Miami, where he has AM stations, presumably will drop 2 of these — possibly all 3, if he should get his fifth by way of purchase. [Note ; Many stations are being approached with offers, and several more sale deals are in offing — with broadcasters, newspapers, theatre people as prime movers. Story persists that sale of Omaha's WOW-TV & WOW is im- minent (Vol. 7:27-28), but parties involved say it isn't so.] The $1,050,000 purchase price of KEYL represents $210 per share for 5000 shares, largest holders being W. L. Pickens of Dallas, R. L. Wheelock of Corsicana, H. H. Coffield of Rockland, all Texas oilmen, each holder of 1098 1/3 shares: W. R. Nichols, Dallas, 418 shares; W. D. Rogers Jr. , who stays as gen, mgr. . 418; Vernice Ford, Lubbock, 300; R. Guy Carter, Dallas, 168; John Yakimo, Dallas, 60; Jack Bloom, Dallas, 35; Roger Kuykendall, Lubbock, 32; R. W. McKinney, Nacogdoches, 25 — plus 10 others owning not more than 10 shares each. Other TV station sale deals to now, exclusive of projected ABC merger, were these — all save last 3 already FCC-approved : KSRC-TV, Seattle (now KING-TV), sold to Mrs. A. Scott Bullitt for $375,000 (Vol. 5:20), who in turn sold 25% recently to Hearst Radio for $375,000 (Vol. 7:26) ; KBTV, Dallas (now WFAA-TV) . sold to Dallas News for $575,000 (Vol. 6:4,11) ; KLEE-TV, Houston (now KPRC-TV) , sold to Houston Post for $740,000 (Vol. 6:13,21); WOIC, Washington (now WTOP-TV) , sold to Washington Post 55%, CBS 45%, for $1,400,000 (Vol. 6:25) ; KFMB-TV & KFMB. San Diego, sold to John A. Kennedy interests for $925,000 plus other considerations (Vol. 6:46, 7:17); KTSL, Los Angeles, sold to CBS for total consideration of $3,600,000 (Vol. 6:52); WLAV-TV, Grand Rapids, sold to Harry Bitner group for $1,300,000 (Vol. 7:19) ; WBKB, Chicago ; sold to CBS in connection with ABC-UPT merger for $6,000,000 (Vol. 7:21) ; KFI-TV, Los Angeles, to General Tire (O'Neil) interests for $2,500,000 (Vol. 7:23). Actually, there was an 11th sale — but no actual transfers of money were involved. The 5 Texas oilmen in KEYL deal were also principals in grant of KPHO-TV, Phoenix (Vol. 5:26), but by time it went on air they had pulled out (Vol. 6:5,20). Note : Deficits marked operation of most of these stations at time of sales, but WOIC (WTOP-TV) was reported coming out of operating red when sold, WLAV-TV is a good earner, and WBKB is reputed to be one of telecasting's best earners. KFI-TV is - 4 - known to be losing |20,000 per month. Biggest bargain of all, KING-TV. was losing $1000 a month when Mrs. Bullitt purchased it in early 1949. All other sales took place in 1950 and 1951 (see issue of Television Digest indicated for full details). * * Sales point up eagerness of broadcasters, to say nothing of many non-radio interests, to get into the TV swim — especially now that the business shows great profit promise. Veritable "gold rush" for new station permits is certain after FCC ends freeze, but some well-heeled interests have chosen to make haste by buying. It takes blue chips to go into telecasting business, as compared with radio, which is reason why Howard Stark, broker formerly associated with Smith Davis, plans to set up company to help finance grantees by buying and leasing costly equipment required — sure-fire idea so far as demand is concerned but requiring FCC blessing. Stark says he has Wall Street money interested, predicates plan on belief local banks and insurance companies, usually requiring brick-and-mortar collateral, will hesitate about financing new TV stations, as they did about radio in the past — and many broadcasters simply haven't the necessary resources. COLOR LABS RACE CBS's 'HEAD START': Developments in all-industry compatible color system, plus CBS's redoubled efforts to make its system "stick" as its investment in system mounts daily, foreshadow fiercest kind of showdown this fall and winter. From one of industry's top color experts, and one of most confident. Hazel- tine v.p. Arthur Loughren, we have these comments on status of compatible system: (1) Agreement on system standards, among National TV System Committee mem- bers, should be reached by September. Exhaustive field testing will then be conduct- ed until end of year, by which time it should be ready for presentation to FCC. (2) Cost of now complex compatible color receivers will be reduced dras- tically and rapidly. "By year's end," Loughren predicts, "at least 15, if not 20 tubes will be removed from RCA's 54-tube set — with no loss in performance." (3) Controversy over RCA's "pastel" colors vs. CBS's more "brilliant" hues (Vol. 7:28) is something of a joke to Hazeltine engineers, he says. "During RCA's demonstrations, we varied controls on our receiver, got more saturated colors, but our men thought they looked much less natural. " Loughren also reports tri-color tube now in operation, calls it "excellent" — a big relief from looking down "dichroic tunnel" required with 3-tube sets. Schedule of compatible colorcasts will be issued bi-weekly by NTSC's field test panel under DuMont's Dr. T. T. Goldsmith. Next demonstrations to be obesrved by Loughren' s standards panel: Aug . 6 , GE , at Syracuse; Aug. 7, Hazeltine. Little Neck, L. I.; Aug. 8, RCA, Princeton; Aug. 9, Fhilco, Morrisville, Pa. Tour will wind up in New York Aug. 10 with discussion of observations. FCC this week granted Philco authority to begin compatible colorcasts over WPTZ's Channel 5 facilities, using experimental call KG2XDT, running 90 days from July 23. Transmissions are limited to periods outside regular programming hours. Then, around Aug. 22, RCA starts public demonstrations (Vol. 7:29). ^ ^ ^ Meanwhile, CBS is making most of its best promotional prospects to date: (1) Nine top-flight eastern football games (Army, Navy, Penn, et al), banned on black-and-white, to be colorcast. Sept. 29-Nov. 24. These will be fed to stations able to clear time. Availability of games may spark purchases of adapters, to get games in black-and-white, whether or not it moves color sets and converters. (2) Tieup with 20th Century-Fox on theatre TV, employing CBS system with Swiss-developed Eidophor large-screen system (Vol. 7:29). This week, GE agreed to make color camera for combined systems, said it will have definition greater than black-and-white's 525 lines — but doesn't say how much greater. Demonstration of large-screen color, says 20th Century-Fox, may come before year's end. In Cincinnati, CBS reports, color proved such hit that WKRC-TV extended programs second week. Signals are received on set rotated among Kroger stores. 5 CAMPAIGN to bolster radio as “greatest mass medium” and “biggest advertising value” is in full sway in wake of July 1 radio network reductions and drops in net- v/ork radio billings (see PIB figures, Vol. 7:29). Letter from CBS president Frank Stanton to affiliates assures them CBS still considers radio “America’s No. 1 mass medium.” CBS, which broke radio rate dike (Vol. 7:15 et seq), was “able to stave off a rate reduction as long as it was humanly possible,” said Stanton. “Without the exceptional network value that CBS radio held out to ad- vertisers, the great pressure for rate adjustments would have come much sooner.” But, Stanton added: “No policy of support for radio can stand up today without recognizing TV. We have found, despite radio’s absolute values, that it is nonetheless extremely difficult to sell on a declining trend. And so what we are doing now is to project radio values forward to January 1952 ... in effect, building a floor under network radio — an impressive level of values that advertisers can count on next year, as a bare minimum.” Stanton told affiliates that radio’s net audience loss to TV in 1951 “cannot exceed 8.5%, and it may well be less.” New CBS promotional piece. Where Advertising Makes the Difference, shows 18 of 25 top advisers select net- wox’k radio above all other media. July 23 Broadcasting Magazine survey found “radio business is better than it was a year ago in both TV and non-TV markets,” with vast majority of radio stations reporting increases in local and national spot. Big July “Fall Facts Issue” of Sponsor Magazine de- votes most space to radio, advises “network radio offers the astute advertiser a better buy than ever before.” On top of this, says Sponsor, “network radio will this fall offer the advertiser bonus values relative to TV,” because TV set sales are in “serious slump” while “sale of radio sets keeps increasing phenomenally.” Radio, Sponsor con- cludes, is “still the Goliath towering over other media,” July issue contains 14 pages of charts to back contention. As to TV, Sponsor sees daytime as best bet, spot easier to clear this fall than network. Magazine predicts average 15 'io network TV rate boost by October, with good time availabilities “impossible” to clear this fall. NARTB president Harold Fellows in July 18 Variety article challenges AM broadcasters to “go to work, face the facts squarely ... to be confident, to be visionary, to be intelligent and to be industrious in utilizing the force and in bringing about an ever increasing realization of [AM’s] ‘necessities’ and the vital part it plays in the American scene, all the way from quickly locating a lost child to building businesses through advertising.” Network Accounls: Frigidaire starts new series, as yet untitled but dealing with youth opportunity, on CBS-TV Sept. 2, Sun. 6-6:30 . . . Sterling Drug Inc. starts sponsor- ship of 10:30-11 portion of Songs for Sale Sept. 15 on CBS-TV, Sat. 10-11; Carter Products Inc. (Arrid) has 10- 10:15 segment which leaves only 10:15-10:30 available . . . Toni Co. (White Rain shampoo), starting Sept. 27, will share alt. week sponsorship of Casey, Crime Photographer on CBS-TV, Thu. 10:30-11, with Carter Products Inc. (drug products) . . . Burkhart Mfg. Co. (shoes), starting Aug. 11, sponsors noted ballerina in Patrica Bowman Show on CBS-TV, Sat. 6:45-7, thru Winius-Brandon Co., St. Louis . . . Schick Inc. (electric shaver), starting Sept. 4, will sponsor Gangbusters on CBS-TV, Tue. 9-9:30, with ex- Kefauver committee investigator Rudolph Halley as narra- tor; agency is Kudner . . . Gerber Products Co. (baby foods) will sponsor Wed. 4:45-5 portion of Kate Smith Shotv on NBC-TV, Mon.-Fri. 4-5 starting Sept. 12. Slalion Accounts: Successful use of TV trailers and spots to boost movie attendance is being emulated by road show of Guys & Dolls, smash Broadway hit, opening this week in Los Angeles after playing San Francisco last week, and due to play Dallas Oct. 6-22; musical comedy is using spots on TV stations in areas played . . . Necchi Sewing Machine Sales Co. (Robert M. Phillips, adv. direc- tor) plans cooperative dealer-distributor use of TV, radio & newspapers this autumn, thru Doyle Dane Bernbach Inc., N. Y. . . . National Shoe Stores (women’s shoe store chain) resuming use of TV in expanded fall-winter campaign, thru Emil Mogul Co., N. Y. . . . American Snuff Co. to sponsor Old American Barn Dance for 13 weeks from Sept. 1 on 7 Southeastern TV stations, thru Simon & Gwynn, Memphis . . . Southern California Pharmaceutical Assn., comprising 1300 independent druggists, sponsoring Bob Shannon’s Varieties, half hour, on KTTV, Los Angeles, thru Crossley & Jeffries . . . Union Oil Co. Aug. 1 starts sponsoring Watch and Win, quiz show, on KPIX, San Francisco, and KTSL, Los Angeles, thru Foote, Cone & Belding, L. A. . . . National Pressure Cooker Co. (Presto household utensils) appoints George R. Nelson Inc., Sche- nectady, to handle TV campaign starting with participa- tions in CBS-TV’s Homemaker’s Exchange (21 stations) . . . Among other advertisers reported using or preparing to use TV: Tuwill Chemical Co. (Knoba car shampoo), thru A. W. Evans Co., Los Angeles; Stewart Hartshorn Co. (Diana Fyrban shade cloth) and M. J. Holloway Co. (con- fectioner), thru Calkins & Holden, Carlock, McClinton & Smith, N. Y.; Bol Mfg. Co. (Hopalong Cassidy Aid drink), thru Goodkind, Joyce & Morgan, Chicago; Erno Laszlo Co. (cosmetics), thru Dowd, Redfield & Johnstone Inc., N. Y.; Jetron Inc. (Dust Free silicone polish & 88 car wax), thru Robert W. Maerckein Adv., Milwaukee; O’Donnell-Usen Fisheries Corp. (Taste O’Sea fish), thru Arnold & Co. Life Magazine points up stature of TV-radio in full- page ads in metropolitan newspapers this week, ranking national advertising media in this order on basis of Janu- ary-June 1951 total investments by advertisers: (1) Life, $43,089,969. (2) CBS-Radio, $39,285,216. (3) Saturday Evening Post, $34,121,636. (4) NBC-Radio, $30,000,036. (5) NBC-TV, $26,739,532. (6) ABC-Radio, $17,344,512. (7) CBS-TV, $17,069,328. (8) Time, $14,229,834. (9) Ladies’ Home Journal, $11,484,173. (10) Better Homes & Gardens, $11,413,731. (11) This Week, $10,911,380. (12) Look, $9,743,833. (13) Collier’s, $9,197,871. (14) MBS- Radio, $8,859,908. (15) ABC-TV, $8,228,700. (16) Good Housekeeping, $7,904,187 (17) American Weekly, $7,182,- 895. (18) Woman’s Home Companion, $6,318,319. (19) Netvsweek, $5,971,709. (20) McCall’s, $5,476,607. Top CBS executives named this week, heading TV and radio divisions (Vol. 7:28), include: Four vice presi- dents common to both divisions — H. Leslie Atlass, Central Div.; Harry S. Ackerman, Hollywood programs; Herbert V. Akerberg, station relations; Wm. B. Lodge, general en- gineering. Five vice presidents in TV Div. — Hubbell Rob- inson, network programs; Frank B. Falknor, operations; David V. Sutton, sales; Merle S. Jones, CBS-owned sta- tions; I. S. Becker, business affairs. Five TV Div. dept, heads — Oscar Katz, research; Wm. S. Harrison, senior at- torney; Wm. Golden, creative director, advertising & sales promotion; John Cowden, operations du’ector, advertising & sales promotion; Michael J. Foster, press. In Radio Div., administrative vice presidents are Louis Hausman, James M. Seward, J. Kelly Smith. John J. Karol is v.p., network sales; Arthur Hull Hayes, v.p., San Francisco. Lester Gottlieb is director, network programs, and Ed- mund Chester, director, news & public affairs. - 6 PerSOnsl NgIgs: Tom Gallery relinquishes sales man- agership of DuMont Network to head newly organized sports program sales dept., succeeded by Ted Bergmann; John H. Bachem, ex-NBC & CBS, promoted to asst, sales mgr., succeeding Treror Adams, who on Aug. 13 joins ABC as mgr. of its WJZ-TV, New York . . . Don L. Kearney, ex-Katz Agency program director, named ABC-TV spot sales mgr., representing its 5 stations . . . Tom J. Maloney, ex-KEYL-TV, San Antonio, joins INS-INP TV dept, as sales and TV film specialist . . . H. Norman Neubert named NBC spot sales mgr. of sales development, advertising & promotion, succeeding Jacob A. Evans, named NBC radio advertising-promotion mgr. . . . Fred N. Dodge, ex-Ameri- can Weekly and Puck, joins NBC as director of mer- chandising for radio under John K. Herbert, radio sales v.p. . . . Thomas H. Peterson, ex-John E. Pearson reps, named mgr., western sales development, CBS Radio Sales . . . William P. Sedgwick promoted to ABC-TV spot sales development mgr., Lillian Dishian promoted to mgr. of radio spot-cooperative program sales promotion, and George W. Huelser named radio netwoi-k sales mgr. . . . Charlton G. Shaw promoted to executive v.p., A. C. Niel- sen Co. . . . Howard Nussbaum, who as an Army colonel served with Armed Forces radio dept., was radio officer on Gen. Bradley’s staff, lately has been special asst, to Stuart Symington at NSRB, assumes newly created post of TV- radio director, Harry B. Cohen Adv., N. Y. . . . David Crockett, ex-asst. program director, KING-TV, Seattle, named head of TV-radio dept., MacWilkins, Cole & Weber, Seattle . . . Hal Hoag new western mgr.. Free & Peters, Hollywood; Wm. A. Morrison, ex-Sidney Garfield agency, named radio mgr., San Francisco . . . Roy Winsor and Roland Gillett named co-directors, TV-radio dept., Biow Co.; Robert McNeil named dept, coordinator . . . Nathan Halpern is devoting full time to Theatre Network Tele- vision Inc. (TNT), of which he is president, having dropped assignments as TV consultant to Fabian Theatres and Theatre Owners of America . . . Lewis Allen W eiss, director of NPA Office of Civilian Requirements, ex-MBS chairman, ex-Don Lee president, appointed chairman of DPA sub- committee on civilian requirements. Telecasting Notes: United Press business mgr. LeRoy Keller and 20th Century-Fox’s Peter Levathes master- minding new film-&-news service for TV, still in planning stage, think they have answer to hitherto unsolved prob- lem how to make spot news as important in TV station schedules as in radio . . . No such inhibitions or prohibitions face them, in this project, as faced UP when it first broke down newspaper opposition to sale of its wire news to radio, now a major source of income — they’re letting TV stations tell them what they want and need and are tailoring new seiwice accordingly . . . Meanwhile, INS this week announced new wire service for TV stations, entirely separate from its newspaper-radio circuits — proposing to supply wire news and newsreel film to “provide the world’s first complete basic news service for TV” . . . Kansas City televiewers got birdseye views of flood and fire last week as WDAF-TV trained its telephoto lens on disaster area from its hilltop studios in center of town; film made from flood telecasts was also shown over station later and will be viewed by Congressional committee helping to work out flood relief program . . . Canadian Broadcasting Corp. this week awarded 5-year contract to Bell Telephone Co. for TV network service linking projected new stations in Montreal and Toronto (Vol. 7:22, 29), also permitting their hookup with Buffalo so as to get U. S. network service . . . Cecil B. DeMille may become TV film producer, says Bill- hoard, DeMille’s long association with Paramount Pictures having “resulted in a strong following among United Para- mount Theatres execs, who would like to see the film maker part of ABC’s future film plans” . . . Billboard also sees producer David O. Selznick going into TV films, pos- sibly with close friend Wm. Paley (CBS) in job similar to that now held with NBC-TV by ex-Paramount studio chief Henry Ginsberg ... A. J. Balaban, one of founders of Chicago’s Balaban & Katz theatre circuit, to quit as execu- tive director of New York’s Roxy Theatre Jan. 1 to pro- duce live TV show. Cavalcade of the Motion Picture Theatre . . . TV Hooperatings monthly in 23 multi-station cities, thrice yearly (or oftener, as demanded) in 27 single- station cities, are promised in new project by C. E. Hooper, who will discontinue his 12-city program popularity rat- ings; Hooper recently sold his TV-radio national-regional rating services to A. C. Nielsen . . . Hopalong Cassidy En- terprises, 8907 Wilshire Blvd., Beverly Hills, Cal., now offering users of its TV films 15 & 50-second commercials tailored to local retail sponsors . . . Credit courses in TV now offered by Brooklyn College, Boston U, Western Re- serve U . . . Metropolitan Museum of Art, New York, plans $820,000 alteration in 710-seat lecture hall to provide TV- radio facilities . . . WINX, 250-watt AM which cost Wash- ington Post $500,000 in 1944, lost nearly that much in operation, was sold for $130,000 in 1949, is being sold again — for $95,000 instead of $120,000 originally proposed (Vol. 7 :26) . . . WJZ-TV, New York, on Aug. 1 extends Class C time full hour up to 6 p.m.; 7-7:30 Mon. thru Sat. will be Class B, 7:30-10:30 Class A. Also offered are new frequency discounts for use of 2 or more ABC-owned sta- tions, and eliminated is 20-second rate in Class B & C times . . . KGO-TV, San Francisco, new Aug. 15 rate card raises basic hour rate from $480 to $600, one-min. from $80 to $120, changes Class A time to 7-10:30 p.m. Mon.- Fri., 6-10:30 p.m. Sat. & Sun. ■ Following 43 stations may increase powers quickly, under new FCC ruling (see p. 1), simply by boosting transmitter output to 5 kw from current operating figures indicated: WBRC-TV, Birmingham, 4.06 kw; KNBH (2.97) & KTSL (1.1), Los Angeles; KPIX, San Francisco, 4.9; WTVJ, Miami, .44; WAGA-TV, Atlanta, 3.4; WBKB (2.18), WENR-TV (4.42), WGN-TV (1.92) & WNBQ (4.69), Chi- cago; WHBF-TV, Rock Island, 2.36; WOI-TV, Ames (Des Moines), 4.14; WAVE-TV (1.37) & WHAS-TV (.89), Louisville; WMAR-TV, Baltimore, 4.83; WWJ-TV, Detroit, 3.35; WLAV-TV, Grand Rapids, 3.5; WKZO-TV, Kalama- zoo, 2.55; KMTV (3.53) & WOW-TV (4.7), Omaha; WNBF- TV, Binghamton, 2.5, WCBS-TV (1.87), WJZ-TV (.81), IVNBT (1.42), WOR-TV (2.04) & WPIX (3.5) , New York; WH2\M-TV, Rochester, 3.81; WHEN (2.78) & WSYR-TV (4.45), Syracuse; WKTV, Utica, 2.25; WCPO-TV, Cincin- nati, 4.4; V/NBK (4.2) & WXEL (4.1), Cleveland; WTVN, Columbus, 1.52; WKY-TV, Oklahoma City, 3.85; KOTV, Tulsa, 4.76; WJAC-TV, Johnstown, 3.5; WCAU-TV, Phila- delphia, 4.41; WSM-TV, Nashville, 3.02; KRLD-TV, Dal- las, 2.52; WTAR-TV, Norfolk, 4.96; WTVR, Richmond, 3.53; WSAZ-TV, Huntington, 3.6. At week’s end, these had already applied for power boosts: KTSL, WTVJ, V/BKB, WGN-TV, WAVE-TV, KMTV, WOR-TV, WHAM- TV, WHEN, WKTV, WXEL, WTVN, WICU, WSM-TV, KRLD-TV. 4: 4c RCA describes full line of transmitting equipment in new brochure, offers up to 200 kw on any vhf or uhf chan- nel. Vhf transmitters are 500-watts, 2 kw, 10 kw, 20 kw, 50 kw. Vhf Antennas are 3, 5, 6 or 12-bay, plus “Super- Gain” special installation. Uhf transmitters are 1 kw & 10 kv/ antenna is slotted type, Bridgeport’s being prototype. DuMont offers new camera chain, claims number of improvements, including extension of image orthicon life up to 1500 hours and easy convertibility to CBS color. CONGRESS BREAKS REGULATION W LOG-JAN: By the time you read this, big push that may break TV sales log- jam — relaxation of credit controls — will probably have been completed by Congress. Industry gets all it asked for, and more. Barring veto by President Truman, now deemed unlikely, extension of Defense Production Act will remove Regulation W's barrier to set sales. Senate-House confer- ence committee, writing compromise version of bills passed by both houses, accepted House provisions easing installment curbs (Vol. 7:29). Final bill provides; Down payment of 15%, balance in 18 months — in lieu of present 25% down and 15 months. AND — it also provides that trade-in allowance may be applied toward down payments, or in place of them. Committee action was victory for RTMA, v/hich had asked 90-day moratorium on credit curbs, then 15% down, 18 months to pay (Vol. 7:22), and had been rejected by Federal Reserve Board in several appeals. It was also victory for NARDA, which had proposed the exact provisions finally adopted. Final approval by Senate came Aug. 27, is expected in House Aug. 30. The President must sign measure by Aug. 31, when stop-gap controls law expires. Industry leaders are optimistic, but cautious, about effects of new credit regulation on TV trade. While at first it seemed this was answer to their prayers for relief from inventory stalemate, there's growing realization that major sources of current trade apathy are (1) too easy selling during 1950 boom, and (2) high cost of groceries. But business forecasters generally see better times ahead (see below). RTMA president Glen McDaniel feels new rules "will give the industry the psychological lift it needs to reverse the trend." But he hastens to add they can't possibly bring back the good old days when customers virtually beat down doors to buy TVs. Dealers must still use aggressive merchandising techniques, beat the bushes for customers, he says — but this time it should bring more results. BUSINESS OUTLOOK & TV-RADIO TRADE: Business looks good for the long pull, say the forecasters with almost one accord — but hard-hit TV-radio industry is nevertheless moving very cautiously. Easier credit terms may bring speedier inventory relief, but no one sees repetition of 1950 boom short of opening up lots of new TV markets — unlikely before well into 1952-53 (Vol. 7:29). Right now, trade can take com- fort from these assurances in usually very authoritative U.S. News & World Report; "Worried about a general business slump? Forget it. The signs point to prosperity, whatever happens finally in Korea. Figures indicate the present 'slow period' is temporary. They promise new highs in production and trade by early 1952. Outlook varies in different lines. But total spending is to go up. It means a market for almost everything available." On that theme, it states; "Appliance dealers, for example, will begin to fare better after a few more months. Rising income can boost demand for TV sets, refrigerators, toasters even without any easing of Government credit controls." * ^ * Such words are heartening, of course, but right now the TV-radio and other appliance plants are still feeling pinch of shutdowns, layoffs and shortened work weeks forced by heavy trade inventories, slow demand, uncertainty about fall-winter trade. Materials shortages would be factor, of course, if demand were there. This week, more layoffs were reported from plants just resuming post-siimmer production; 200 at DuMont plant in E. Paterson, N.J. ; 400 at Westinghouse appliance plant (refrigerators, etc.) in Mansfield, 0.; 100 at Erie Resistor Co.. Erie, Pa. There probably are many more, unreported. Expectations of most of TV-radio industry were nicely put by Westinghouse division sales manager Joseph F. Walsh to Retailing Daily last week; "I think the 7 - 8 - market will firm up after Labor Day, but not to the extent it did last year. Instead of 3 buyers for every set, there will be one reluctant buyer for each receiver and it will become necessary to increase stress on selling, including outside sales, home demonstrations and the like." Because of the uncertainty, he added, Westinghouse will formulate its pro- duction plans on a month-to-month basis rather than on an entire season. * * * * We won*t know over-all dealer inventory figure until end of August, now, due to fact Dun & Bradstreet survey couldn't get under way earlier. Plan is to contact 4000 to 5000 retailers early in August to ask them to count their total table TVs, all others, total portable radios, all others — and from this "sample" of \inits on hand to project an Aug. 1 total inventory figure for all nation's dealers. Thereafter, the monthly reports will automatically indicate month's sales and purchases — first such figure for the industry. Dun & Bradstreet is asking — and certainly should get — full dealer cooperation as it breaks this new ground. * * * * Statistics at factory level are available weekly from RTMA, of course — and output for week ending July 20 was reported as 44,196 TVs (1322 private label), good jump from vacation-time lows of 8270 and 12,817 first 2 July weeks (Vol. 7:29), reflecting reopening of factories. Radios totaled 180,339 (84,580 private label), of which 85,689 were home sets, 59,385 auto, 35,265 portable. Factory TV inventories went up to 754,717 from 744,162 preceding week, and radio inventory climbed to 375,066 from 351,368. Last distributor inventory figures reported were 622,080 TVs and 999,590 home radios as of May 25. NEW STEEL-COPPER CUTS IN PROSPECT: Air of optimism among top government materials control authorities showed signs of disintegrating at week's end, when DPA-NPA boss Manly Fleischmann pulled aside curtain on materials picture for fourth quarter. Consumer durable goods — including TV-radio — will have to take another 5% cut in steel, possibly more in copper, Fleischmann indicated. This caused some surprise, coming on heels of his July 10 statement that there probably would be no change in civilian steel-copper-aluminum supply for fourth quarter (Vol. 7:28). TV-radio and other consumer durables are permitted this quarter to use steel at 70% of first-half 1950 rate, copper at 60%, aluminum at 50% (Vol. 7:25). Fleisch- mann points out that while military program will engage only about 20% of nation's economy next quarter, total demands for the 3 basic metals by defense industries are "vastly higher" — mainly due to expansion of industry. Copper situation is particularly serious. Said Fleischmann: "If we were to prohibit manufacture of all consumer durables, including autos, it still would not free enough copper to satisfy the demand from other segments of the economy." Further copper pinch is inevitable as result of 4-week-old CIO Steelworkers strike at big American Smelting & Refining Co. smelter at Garfield, Utah. Stoppage is cutting into output at rate of 25,000 tons a month, about one-fourth of domestic production. President Truman has asked Wage Board to try to settle dispute. Whether or not consumer durables are brought under Controlled Materials Plan next quarter, the same amount of materials will be reserved for them. CMP, in this case, is merely method of assuring equitable distribution. *1 *1 * Military and defense-supporting electronics programs were again sliced sharply in latest division of CMP materials pie. It's good bet NPA Electronics Div. will appeal to higher echelons for more steel-copper-aluminum for essential produc- tion, as it successfully did for third quarter allotments (Vol. 7:26-27). In face of steadily increasing military orders and resumption of production after summer vacations. Electronics Div. was assigned these fourth quarter totals for Class B (standard part & product) manufacturers (third quarter figures are in parentheses): steel. 72,550 tons (56,500); copper, 33,385,000 lbs. (25,157,000); alumin\im, 15,750,000 lbs. (14,800,000). 9 Topics & Trends oi TV Trade: Jerrold Electronics claims 1,000,000 people live in towns where contracts have been signed to use its community antenna equipment (Vol. 7:29). Company says installations are now being made in following towns: Pennsylvania — Ashland, Bangor, Belle- fonte, Coaldale, Coal Township, Harrisburg, Lansford, Lewistown, Lock Haven, Mahanoy City, Oil City, Palmer- ton, Plymouth, Pottsville, Port Carbon, Shamokin, So. Bethlehem, St. Clair, Tamaqua. New York — Dansville, Watertown, Corning. In addition, Jerrold reports con- tracts in following: Grass Valley, Cal.; Cumberland, Md.; Biddeford, Me.; Pikesville & Maysville, Ky.; Beckley, W. Va.; Kingsport, Tenn.; Newport, Ark.; Uvalde, Tex.; La Salle-Peru, 111. Company says that over $100,000 worth of sets have been sold in Lansford, Pa., first to get in- stallation (Vol. 7:2). •{s V Three industry groups will appear before Senate Finance Committee next week to oppose Administration’s request for 15% hike in manufacturers’ excise taxes on TV-radios in revenue bill H. R. 4475 (Vol. 7:20-21). Scheduled to testify Aug. 2 are RTMA, probably repre- sented by chainnan Robert C. Sprague, and NARTB govt, relations director Ralph W. Hardy. Mort Farr, NARDA president, will be heard Aug. 1. Also appearing before committee Aug. 2 will be L. G. Homey, Bendix, and J. M. Marks, Fada. GE’s Dr. W. R. G. Baker reappointed chairman of RTMA’s TV committee for ensuing year, other members named by Chairman Sprague being: Benj. Abrams, Emer- son; Robert S. Alexander, Wells-Gardner; Max Balcom, Sylvania; W. J. Barkley, Collins Radio; H. C. Bonfig, Zen- ith; John W. Craig, Crosley; Allen B. DuMont; J. B. Elliott, RCA; E. K. Foster, Bendix; Paul V. Galvin, Motorola; W. J. Halligan, Hallicrafters; L. F. Hardy, Philco; W. A. MacDonald, Hazeltine. Admiral’s Ross Siragusa told Retailing Daily’s Martin Rosenbloom July 23 that, barring further materials re- strictions, Admiral will have produced 650,000 TVs this year (as against reported 1,000,000 in 1950); that recent “free radio-phonograph” with each TV console moved 15,000 sets between April 28 & May 14; that refrigerators have been moving at rate of 300,000 a year. * * * ♦ IT&T moves further into appliance field with purchase, announced this week, of Coolerator Co., Duluth, makers of refrigerators, freezers, electric ranges. Company was bought for undisclosed sum, involving stock and cash, from Gibson Refrigerator Co., Greenville, Mich. IT&T’s other manufacturing subsidiaries include Capehart-Farnsworth (TV & radio sets). Federal Telephone & Radio and Federal Telecommunications (broadcast transmitters, microwave equipment, etc.). Value of electronics exports tripled in May, compared with year ago — $16,717,022 vs. $5,721,446 — according to Census Bureau. TV sets aren’t listed as such, but Census plans to specify them in breakdowns beginning first of year. Lion’s share of May exports, $7,896,103, is listed in “special category,” understood to include radar, air naviga- tion aids, etc. Included in May breakdown are: 1791 home type radio phonographs worth $163,832; 22,575 other home type receivers, $582,988; 4381 automobile sets, $164,564; 8863 radio sets not elsewhere specified, $1,829,993. Receiving tube sales first 6 months of 1951 totaled 215,902,325 units, compared with 170,375,921 same period last year. RTMA report shows 153,957,760 tubes sold for new equipment, 50,105,634 for replacements, 10,358,858 for export, 1,480,067 to govt, agencies. June sales were 27,667,099 compared with 32,480,668 in June 1950. Trade Miscellany: Westinghouse introduces new TV line, some table radios and portables, in about week (Aug. 6), reports it plans biggest TV-radio ad campaign this autumn . . . Philco International putting on special August drive to promote sale of its tropic radios & radio-phono- graphs, offering foreign dealers special prizes for window displays . . . Hoffman Radio reported planning regional warehouse at 321 Grand Ave., Chicago, to stockpile TVs, radios, replacement parts . . . Kent Television, Brooklyn, leases 8000 sq. ft. additional space at 187 Varet St. . . . Tel-A-Ray Enterprises Inc. has purchased 75,000 sq. ft. factory in Henderson, Ky., for manufacture of antenna- mounted TV boosters, etc. . . . General Radio, Cambridge, Mass., building 3-story brick plant in W. Concord, Mass., for production of electronics gear . . . Dukane Corp. is new name of Operadio Mfg. Co., St. Charles, 111., brand name under which firm makes intercom and sound equip- ment, sound slide film projectors and magnetic tape re- corders . . . Canada modifies credit controls, effective Aug. 1, to permit trade-ins to be applied toward down payment on all types of goods . . . Western Union Services Inc., re- cently formed TV receiver-servicing subsidiary of big telegraph company (Vol. 7:16), plans TV and newspaper promotion campaign, thru United Adv. Agency, N. Y. . . . CBS-Columbia Inc. (formerly Air King) names Beller Dis- tributors Inc., Newark (Jack Gaertner) for northern N. J. and for Orange & Rockland counties in N. Y. . . . Raytheon moves into Mexican market with appointment of Television Continental, Mexico City (Pedro Block, mgr.). 4c « He « Scott Radio (Meek) showing “most expensive and ex- clusive home instrument of its type ever offered to dis- criminating music lovers” — model called “Limited Edi- tion,” a TV-radio-3 speed phono with separate amplifier unit and special 15-in. speaker, to list at $2000. Picture tube is 24-in. Cabinet is mahogany breakfront credenza, 68-in. wide, 38-in. high, 24-in. deep, styled in 18th Cen- tury, French Provincial and modern. Price-wise, this unit exceeds DuMont’s 30-in. “Royal Sovereign” at $1795 (Vol. 7:26) as most expensive set on market. Arvin is out with 14 new models, one holdover — latter being its 8%-in. “portable” at $130 (GE picture tube). Three new 17-in. tables list at $250, $270, $280; two 21-in. at $370 & $380. Three 17-in. open consoles are $300, $320, $330; one 20-in. $450; two 21-in. $400 & $420. Consoles with doors include one 17-in. at $350, one 20-in. at $450, and 21-in. French Provincial at $500. All prices include tax, with warranty extra except on the 8% -in. Sets may be easily converted to uhf or color, Arvin says. Company also has 30 new radio models in AM, FM or both. H Audio & Video Products Corp., specializing in techni- cal installation for ad agencies and factory representatives for Ampex magnetic tape i-ecording apparatus, Altec am- plifiers and speakers, etc., has moved to old WQXR studios at 730 Fifth Ave., New York, may soon float stock issue. President is Charles E. Rynd, ex-ABC v.p. & treasurer, with Richard Rynd v.p. W. Oliver Summerlin, ex-Capitol Records chief recording engineer, is engineering v.p. Other directors are Percy L. Deutsch, founder of World Broad- casting System; Fred M. Thrower, ABC-TV sales v.p.; Thomas P. Robinson, ABC-TV sales service mgr.; Russell 0. Hudson, ex-ABC Hollywood. Roy Rogers got temporary injunction from Federal district court in Los Angeles this week restraining Republic Pictures from syndicating his old cowboy movies to TV (Vol. 7:26-27) — case seen as test whether studios have right to sell for TV sponsorship old films that weren’t originally meant to accompany advertising. 10 Nobilizalion Notes: July 31 is deadline for filing appli- cations for fourth quarter allocations of steel, copper and aluminum under Controlled Materials Plan. Manufactur- ers of consumer durable goods are required to file for first time — and NPA’s Electronics Div. is preparing for about 850 applications from electronics manufacturers. This is 150 more than Division received for third quarter, TV and radio manufacturers making up the difference. In estimating requirements for fourth quarter on Form CMP-4B, TV-radio manufactm'ers are being warned by Electronics Div. to observe materials limitations im- posed by NPA Order M-47A (Vol. 7:25). In other words, a manufacturer shouldn’t list in his requirements for fourth quarter more steel, copper or aluminum than he’s permitted to use during third quarter. TV-radio makers were also urged not to include in their requirements the steel, copper or aluminum in Class B items (parts & components) they purchase ready-made — since allocations of metals for these products are made directly to parts manufacturers — and are asked to men- tion in letters of ti-ansmittal accompanying applications that these items aren’t included. Since household TVs, radios, phonographs and combi- nations are all lumped under the same product class code in NPA’s “B product” list, they may all be included in same application. NPA has announced no official decision as to whether consumer durables will actually be included in CMP next quarter, but it’s generally expected they will. 4: ^ He 4: Emergency DPA loans for expansion of industrial fa- cilities needed for defense effort were granted 2 electronics firms between May 28 & July 18. Electronic Associates Inc., Long Beach, N. J., received $150,000 to purchase land, building, machinery and equipment for manufacture of electronic devices for Signal Corps. Industrial Research Laboratories, Baltimore, received $75,000 to buy facilities for research and development, alteration and equipment; it develops electronic and radar systems for industry and Armed Forces. DPA also issued certificates of necessity for rapid tax amortization to 2 electronic firms: Oak Mfg. Co., for new facilities at Crystal Lake, 111., for production of switches and tuners, to cost $408,673, of which 80% will be ^vritten off in 5 years for tax purposes; and Thomco Mfg. Co., Redwood City, Cal., tape recorder parts, $5954 at 90%. Radio amateurs will get defense priorities to buy parts and equipment, if new order now being prepared by NPA gets final approval. Electronics Div. began work on order at suggestion of electronics parts distributors, picked up heavy support from such govt, groups as military services and civil defense, as well as Red Cross. Order is expected to permit “hams” to widte their own priority ratings, with dollar ceiling on amount of priority equipment they may buy in given time period. Members of amateur networks such as Military Amateur Radio Service (MARS) may be authorized to buy more priority parts than non-members. Reason for this, NPA official explained, is to induce ama- teurs to join emergency nets such as MARS or civil de- fense amateur service. Communications industry — radio, telegraph, telephone &, cable, but not including commercial TV-radio broadcast stations & networks or radio “hams” — receives special priorities assistance to obtain materials for maintenance and expansion under terms of NPA Order M-77, issued June 27. “Defense Loans for Small Business” titles pamphlet issued July 20 by NPA Office of Small Business. It’s avail- able for 5(1 from Commerce Dept., Washington, and Com- merce Dept, field offices. Trade Personals: W. E. Dulin, former acting asst, chief of FCC’s Marine Div., World War II chief of Navy Bureau of Ships Electronics Div., radio maintenance sec- tion, named chief radio communications equipment sec- tion of NPA Electronics Div., reporting to J. A. Milling, end equipment branch chief; Gerald W. Davis, ex-Bureau of Standards electronic scientist, ex-Raytheon & GE engi- neer, heads communications equipment unit under Dulin . . . Earl R. Smith, ex-RCA International, on leave from Connecticut Cabinet Co., heads new electronic & musical instrument section of OPS, formed from old radio, TV & miscellaneous section of housewares & accessories branch. Consumer Durable Goods Div., headed by Harold B. Wess . . . David H. Cogan, president of CBS-Columbia Inc. (for- merly Air King), elected July 25 to CBS board . . . William Garstang, technical products contracts coordinator, named administrative director of engineering & research, Belmont (Raytheon), with Robertson Gannaway continuing as chief engineer . . . George Hakim named adv. mgr., DuMont re- ceiver sales div., succeeding Henry R. Geyelin, now coordi- nator of all DuMont advertising . . . Michael R. Buehner promoted to chief mechanical engineer, Hoffman Radio . . . H. B. Nelson Jr. named asst, to John T. Thompson, sales mgr. of replacement tubes, GE tube div. . . . J. J. Kahn, Standard Transformer Co., named 1951-52 chairman of RTMA promotion committee, other members being Max F. Balcom, Sylvania; Paul V. Galvin, Motorola; Leslie F. Muter, Muter Co. . . . H. N. Henrye Sailer, of John E. Fast & Co., reappointed chairman of RTMA credit committee, with D. F. Reed, Raytheon, eastern vice chairman; A. D. Sigler, Crucible Steel Co., western vice chairman . . . Her- bert J. Ravis, president of Peerless Album Co., phonograph record albums, appointed president and gen. mgr. of Tele- King Distributors, Los Angeles, Russell Martin continuing as sales mgr. . . . Henry Onorati, ex-RCA Victor Records, joins Crosley as director of electronics advertising. Henry A. Sullivan, 63, who retired as RCA controller in 1950, died July 23 at his home in Ridgewood, N. J. NPA received some 490 requests for assistance from small electronics manufacturers Nov. 1 to June 15, of which the majority received aid. This is revealed in report on NPA’s small business program, soon to be made public. Report shows 48,000 small businessmen asked for NPA aid during that period, and substantial majority received spe- cial assistance. Plant expansions have been authorized by NPA under construction control regulations (Order M-4) for these electronics manufacturers July 2-19: Wilbur B. Driver Co., factory building at Newark, estimated cost $663,450; Bendix, remodeling of electronic equipment plant at El- mira, N. Y., $43,850; GE, addition to plant at Bridge- port, $42,114. « * H< * Annual “Buyers’ Guide,” published by Electronics, runs 640 pages this year, is now available from McGraw- Hill Pub. Co., 330 W. 42nd St., New York ($2). It in- cludes: (1) Lists of parts and end-product manufacturers, with addresses, alphabetically and by products. (2) Index of trade names. (3) List of equipment distributors. British Marconi has sold complete TV stations to Span- ish Govt, for Madrid and Barcelona. Recently, it also sold studio and camera equipment for United Nations head- quarters in New York and for CBC’s projected new sta- tions in Montreal and Toronto (Vol. 7:22, 29). Tax of $11.60 per TV set levied on basis of $200 per- sonal property assessment by Ridgewood, N. J. (pop: 4000 TVs) was discontinued July 25 by village commissioners ‘ after irate citizens protested. Report and Order FCC Authorizes Temporary TV Power Increases Full Text of Public Notice No. 51-752 Adopted July 25, 1951, Effective Immediately Upon request for special temporary authority (STA), stations may boost effective radiated powers (ERP), thus widening coverage areas, improving signal quality, pending final decision on freeze issues; see story Vol. 7:30 In the Matters of Amendment of Section 3.606 of the Commission’s Rules and Regulations. Amendment of the Commis- sion’s Rules, Regulations and Engineering Standards Con- cerning the Television Broad- cast Service. Utilization of Frequencies in the Band 470 to 890 Mcs. for Television Broadcasting. FIFTH REPORT AND ORDER OF COMMISSION 1. On May 6, 1948, the Commission issued a “Notice of Proposed Rule Making” (FCC 48-1569) in the above en- titled Dockets 8736 and 8975 designed to amend its Table of television channel assignments for the United States. During the hearing subsequently held by the Commission on its proposed Table, evidence was presented concerning tropospheric interference, directional transmitting an- tennas, increased power and mileage spacings between tele- vision stations. As a result of this evidence, an Industry- Commission Conference was held on September 13, and 14, 1948, on the following issue, among others: “If the standards are to be revised, what policy should be adopted with respect to applications now pending before the Commission.” At the conclusion of that Conference the Commission an- nounced its plan to hold an engineering conference “to consider questions regarding revision of the Commission’s Rules, Regulations and Standards vdth respect to the tech- nical phases of television allocations.” 2. On September 30, 1948, the Commission issued a “Re- port and Order” (FCC 48-2182), commonly referred to as the “freeze” order. By the terms of said Order, Section 1.371 of the Commission’s Rules was amended by adding footnote 8(a) thereto, reading as follows: “8a Pending further consideration of the issues in Dock- etc Nos. 8975 and 8736, requests for television authoriza- tions on channels 2 through 13 will be considered in ac- cordance with the following procedure: “(a) Applications pending before the Commission and those hereafter filed for permits to construct television stations on channels 2 through 13 will not be acted upon by the Commission but will be placed in the pending files. “(b) Applications pending before the Commission and those hereafter filed for modification of existing permits or licenses will be considered on a case-to-case basis and Commission action thereon will depend on the extent to which they are affected by the issues to be resolved in the proceedings bearing Docket Nos. 8975 and 8736. “(c) No hearing dates will be scheduled with respect to applications for construction permits which have been designated for hearing, and in cases in which hearings have been commenced or completed but decisions have not been issued, no further action will be taken. “(d) This procedure does not apply to construction per- mits or other television authorizations heretofore issued by the Commission.” 3. Pursuant to the provisions of subparagraph “(a)” above, no applications then pending or thereafter filed for construction permits for new television stations have been granted, and there are now on file with the Commission 420 such applications. Since December, 1948, in considering various applications before it for modification of out- standing construction permits, the Commission has clari- fied its intentions concerning the “case-to-case basis” specified in the subparagraph “(b)”. In passing on these applications, the Commission has not granted applications for modification of construction permits where such grants would result in increased coverage over that resulting from the effective radiated powers and antenna heights specified in the applicants’ authorizations outstanding on September 30, 1948, the date of the Commission’s “freeze” order. It has granted requests for lower powers and in- creased antenna heights which would result in coverage not in excess of that existing on the “freeze” date. It has not granted increased powers and lower antenna heights since such increased power involved questions of increased troposperic interference. It has issued partial grants in accordance with the above policy. 4. On March 22, 1951, the Commission issued its “Third Notice of Further Proposed Rule Making” (FCC 51-244) in which it provided in paragraph “10” thereof the fol- lowing: “10. The most important single factor which induced the issuance by the Commission of its ‘freeze’ order of September 30, 1948, was the desire to ascertain whether sufficient mileage spacing had been provided between as- signments set forth in its table. On the basis of the data contained in the record of this proceeding the Commission is proposing the separations specified in the attached Ap- pendix A. In the light of these separations the Commis- sion proposes to take the following actions upon the ex- piration of the time specified in paragraph 12 herein for the filing of comments and oppositions thereto: “(a) The Commission will determine whether any issue has been raised which would prevent the lifting of the ‘freeze’ with respect to channel assignments in Alaska, Hawaiian Islands, Puerto Rico and Virgin Islands. These Territories are sufficiently removed from the continental United States so as not to be involved in the separations problems of continental United States and present no as- signment problem with any neighboring countries. Sepa- rations have been maintained within the Territories which Dockets No. 8736 & 8975 Docket No. 9175 Docket No. 8976 1 are in accordance with the Commission’s proposals in Ap- pendix A. Accordingly, in the absence of any issue with respect to these separations, the Commission proposes to lift the ‘freeze’ with respect to the above Territories with- cut waiting to reach a final determination on all the as- signments proposed in Appendix C. “(b) The Commission will determine whether any issue has been raised with respect to the Commission’s proposed assignments in the UHF band. In the absence of such issue, and where serious procedural or practical objections do not exist, the Commission will consider lifting the ‘freeze’ on applications which specifically request a UHF channel. “(c) The Commission will determine whether any issue has been raised with respect to applications by existing television licensees and permittees to increase power in accordance with the proposals set forth in Appendix A. In the absence of such issue the Commission will consider lifting the ‘freeze’ so far as existing stations are con- cerned on a case-to-case basis where it appears that a grant of increased power not in excess of the maximum specified in Appendix A will not affect channel assignment proposals offered by the Commission or by interested parties and will not unduly restrict the Commission’s flexi- bility in reaching final determinations with respect to as- signments still in issue. “(d) Should the Commission take action in accordance with the views expressed in subparagraphs (a), (b), and (c) above, a reasonable period will be provided for the filing of appropriate applications.” 5. In advancing the above proposals for a partial lift- ing of the “freeze” the Commission recognized that the factors which called for a continuance of the “freeze” on the construction of new VHF television stations in the United States were not the same, in all respects, as those relating to the Territories, the UHF band, and increased power for existing stations. The Commission was of the opinion that under certain conditions a partial lifting of the “freeze” might be effected in the three instances speci- fied in paragraph “10” of the Third Notice. However, with respect to the construction of new television stations in the VHF band, it became evident that a change in a channel assignment in a particular city, or the retention of a particular assignment might have a chain reaction on as- signments in areas hundreds of miles away. For example, assuming the mileage separations specified in Appendix A, if a channel were changed in City X, it might require a change in co-channel assignments within a 180-mile radius from City X, as well as in adjacent channel assignments within 70 miles of City X, and possible shifting of other channels. These channel changes might require corre- sponding shifting of channels located within a 180-mile radius from the second group of channels. In the same way, if construction permits were issued for new stations in City X either on the existing channels or on the pro- posed channels, it might have the effect of freezing chan- nel assignments within 180 miles, which, in turn, might freeze assignments within another 180 miles, ond so on. It followed, therefore, that any crystallization of channel assignments resulting from the authorization and con- struction of new television stations in particular areas might remove the element of flexibility, an element which is essential if the Commission is to remain free to adopt an assignment table based on the soundest engineering principles. 6. On June 15, 1951, in a “Memorandum Opinion and Order” (FCC 51-635) the Commission designated for oral argument questions relating to its authority to issue a Table of Assignments as part of its Rules and to reserve channels for non-commercial educational stations. There- after, on June 21, 1951, the Commission issued its “Third Report of Commission” (FCC 51-640) in which it ex- plained why it could not, at that time effectuate the pur- poses of paragraph “10” of the Third Notice. In that Re- port the Commission pointed out that because of the ex- istence of substantive and procedural objections it would take no action at that time to lift the “freeze” with respect to applications for UHF channels; and that, pending the above mentioned oral argument, it v/ould take no action at that time to lift the “freeze” in the Territories and to permit existing stations to increase power. Subsequently, on July 13, 1951, the Commission issued its “Memorandum Opinion” (FCC 51-709) in which it concluded that it had legal authority under the Communications Act of 1934, as amended, to “(1) Prescribe as part of its rules and subject to change through rule making a table specifying the channels upon which television station assignments may be made in specified communities and areas; and (2) desig- nate and reserve certain of the assignments provided in such table for use by non-commercial educational tele- vision stations.” In view of these conclusions we have again considered the possibilities suggested in paragraph “10(a)” and “(c)” of our Third Notice. And we have con- cluded that it is now possible, consistent with the basic criteria set out in paragraph “10(c)” to take certain steps permitting some increase in power for existing stations. A separate further report will be issued with respect to the suggestion contained in paragraph “10(a)”. 7. In suggesting the possibility, in the Third Notice, of permitting increased power for existing stations we recog- nized that this might be accomplished without encounter- ing problems such as those which would arise if we per- mitted new stations to be constructed in areas having no service at present. Without prejudice to those areas not now having stations, we would be providing for a better service to the public from existing stations and would be creating a situation in which, as a general matter, existing stations could operate on a more nearly equal basis from the viewpoint of coverage — a condition which would con- tribute materially to the healthy development of the new television industry. 8. In paragraph “10(c)” of the Third Notice the criteria we enunciated were, in essence, that increases in power for existing stations would be permitted if, upon considera- tion of all comments, we could permit such increases on a “case-to-case” basis in a manner which would not affect channel assignment proposals offered by the Commission or by interested parties in this proceeding, and would not unduly restrict the Commission’s flexibility in reaching final determinations with respect to assignments still in issue. Out of approximately 700 comments filed by inter- ested parties pursuant to the Commission’s Third Notice, only two comments opposed the Commission’s proposal to increase power of existing stations. Neither of the two opposing comments advanced a single reason as to why the proposal should not be effectuated.^ From a review of the many comments and oppositions heretofore filed in this proceeding we do not believe it to be advisable at this point in the proceeding to permit increases to the powers specified in Appendix A. However, the Commission is of the opinion that some action can be taken during this interim period to accomplish in part the basic purpose ex- pressed in paragraph “10(c)” of that Notice. The Com- mission proposes to continue its present policy of con- sidering applications for modification of existing facilities which request changes in transmitters, antennas or loca- tions therefor, under the terms of the existing “freeze” policy as described in paragraph “3” herein. We would also provide, on an interim basis, for a more efficient use of authorized stations through the granting of special temporary authority (STA) permitting temporary in- creases in power within the framework of the Commis- sion’s existing Rules and Standards “which will not affect channel assignment proposals offered by the Commission or by interested parties and will not unduly restrict the 1 The comments referred to are those of Radio Virginia, Inc., WXGI, Richmond, Virginia, and of Radio Kentucky, Inc., WKYW, Louisville, Kentucky. These comments. In pertinent parts, are as follows : Radio Virginia, Inc.; “2) In general, we wish to register oppo- sition to these phases of the plan: . . . C — The plan to grant power increases on the VHP channels.” Radio Kentucky, Inc.; "Radio Kentucky, Inc., opposes the granting of further power Increases to VHF channels.” 2 Commission’s flexibility in reaching final determinations with respect to assignments still in issue.” Accordingly, the Commission proposes to consider, on a case-to-case basis, requests by existing stations for special temporary authority to increase coverage beyond that permitted under the “freeze” policy. The following considerations will be applicable to such requests for special temporary author- ity: (a) Community stations are permitted, pursuant to Sec. 3.603 of the Commission’s Rules, to operate with a maxi- mum effective radiated power of 1 kw and with an an- tenna height of 500 feet above average terrain. The Com- mission will consider requests by existing community sta- tions (three in number) operating 500 watt transmitters with less than 500 watts power output for special tempo- rary authority to increase transmitter power output to that figure, provided that the effective radiated power may not exceed 1 kw. Transmitters of more than 500 watts rating will not be authorized. (b) Section 3.604 of the Commission’s Rules permits metropolitan stations to operate with effective radiated power not in excess of 50 kw with antenna height of 500 feet. However, under the provisions of said Section, an- tenna heights in excess of 500 feet are permissible but such grants may be subject to reduced effective radiated power “so that the coverage (within the 5000 uv/m con- tour) shall be substantially similar to that which would be provided by 50 kilowatts effective radiated peak power and a 500 foot antenna.” Under this rule antenna heights in excess of 500 feet have been authorized, but the Com- mission has until now limited effective radiated power so that the reduced power and increased antenna height would provide equivalent 5000 uv/m coverage. The Commission now will consider requests by metropolitan stations op- erating 5 kilowatt transmitters at less than 5 kilowatt power output for special temporary authorization to in- crease transmitter power output to that figure, provided (1) the effective radiated power may not exceed 50 kilo- watts and (2), where antenna heights exceed 2000 feet, the Commission may limit effective radiated power to less than 50 kilowatts. (c) Section 3.605 of the Commission’s Rules provides for rural stations serving areas more extensive than those served by metropolitan stations, where the additional areas served are predominantly rural in character. This rule does not limit the powers and antenna heights of such sta- tions and, prior to the “freeze,” applications therefor were considered on a case-to-case basis. The Commission will consider requests by rural stations to use the same power proposed for metropolitan stations in subparagraph “(b)” above. (d) Grants made in accordance with the provisions of subparagraphs “(a),” “(b)” and “(c)” above will be issued subject to the condition that they are without prejudice to any determination which the Commission may hereafter make with respect to outstanding proposals concerning Appendices A, B, C and D of the Third Notice. (e) Special temporary authorizations issued pursuant to the above requests, and extensions thereof, will be lim- ited to periods not in excess of six months. (f) Applications by stations for changes in their classi- fication will not be granted. 9. Applications filed by existing stations for changes of transmitters and antennas will, therefore, be considered in accordance with the existing “freeze” order, and requests for operation of authorized equipment beyond the limits of the “freeze” policy will be considered for temporary periods in accordance with the procedure described above. Since amendment of our rules to provide for this proce- dure constitutes an amendment relating to practice and procedure before the Commission, and constitutes a state- ment of policy, under Section 4 of the Administrative Pro- cedure Act proposed rule making is not required and said amendment may be made effective immediately. Accordingly, it is ordered, this 25th day of July, 1951, that effective immediately. Section 1.371 of the Commis- sion’s Rules and Regulations is amended so that sub- paragraph “(b)” of footnote “8a” (designated footnote “10” in the Code of Federal Regulations) shall read as follows: (b) Formal applications pending before the Commis- sion and those hereafter filed for modification of existing permits or license will be considered on a case-to-case basis and Commission action thereon will depend on the extent to which they are affected by the issues to be resolved in the proceedings bearing Docket Nos. 8736, 8975, 9175 and 8976. Such formal applications will be considered on the basis that neither the coverage within the 500 uv/m con- tour nor the effective radiated power shall exceed that authorized on September 30, 1948; applications requesting greater coverage or power will be given consideration on the basis of partial grants within these limits. Licensees and permittees of television stations may apply by letter or other informal application for special temporary au- thority (STA), and for extensions thereof, for periods not in excess of six months, to operate under the following terms and conditions: (1) Community television stations operating 500 watt transmitters with less than 500 watts power output may apply for special temporary authority to increase trans- mitter power output to that figure; provided that the effec- tive radiated power may not exceed 1 kw. (2) Metropolitan and rural television stations operating 5 kilowatt transmitters at less than 5 kilowatts power out- put may apply for special temporary authority to in- crease transmitter power output to that figure. In no event may the effective radiated power of a metropolitan or rural station exceed 50 kw. Where the antenna height of a metropolitan or rural television station exceeds 2000 feet above average terrain, the effective radiated power of such station may be limited to less than 50 kw. (3) Applications by existing television stations for changes in their classifications will not be granted. (4) Any authorization issued pursuant to the above sub- paragraphs shall be granted subject to the condition that it is without prejudice to any action the Commission may take with respect to outstanding proposals concerning Ap- pendices A, B, C and D of the Third Notice of Further Proposed Rule Making and that such authorizations will either be modified to conform with any final determina- tions reached by the Commission in said proceeding, or will be cancelled. 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' p -•—iii- *•*' ' '.nftai aepii# nadl /v>m ejir ’-^ - ---' ■' aiofa VaotfibM 9« a'ln «niT nl' iircn , bttf TlvW_3Wfr^|f|,^oai2^ :, 917771 nr lUw np%at^fao^ •4‘4.^* ilJ t9\joq o&^ 9(0 'iJ^xn siatnD‘a0i$ct • -xiMx • • cj?. esi •■»^,*' N Id sdi dbidar ro.jan jitxlaraaaoo blasofpar ^lUbaaibUfe -oi t^in. di ' u^.i»3UoK in 0^ odflaiQ tstrO A Ttciioq ina} -cnij aJvb^'tliw^^ -jvoda'j ,' , ,, , ‘ 'jitfffwrri lo ia^* td ^po, dnafa itadi ah%*tTmmii itA -rauitM \d ' loUaTii^^Ai O) '* %o'iV ittan)t9d4aa lOtf noit* »!»•» V. _■•'■» • •> 41 • »o»aat^§ „ ^ 4i^i' . fTirfcTs- i . -* tb$ ' ' ••fi*‘*“"tch «•# noCj ' ai^cv , r |* .J',,* -f-j ■ • " -,• ^ii; •KJi* wtoi'fBg. **%*«;■ IMu^’ .^M^>ii -» iiii«raiXi»‘iiB„*i i : ■ «o- I va -•< /%!/■ I Deadlines for Comments AGENDA FOR FCC's ALLOCATIONS PROCEEDINGS, BY CITIES Cities below are grouped according to dates by which written statements must be filed in accordance with FCC's Order of Hearing Procedure (Notice 51-739) of July 25, 1951e Statements to be filed are those in support of comments previously filed. For digests of previous comments, see Television Digest Supplements 72 to 72-C inclusive. Note: Each group has 3 dates. First is deadline for statements supporting original comments, offering counter-proposals to FCC allocation plan (see TV Allocation Report of March 24, 1951). Second is for oppositions to counter-proposals. Third is for briefs on issues of fact or law. Groups & dates are as follows: ont plan. 27 - Sept. 17 - Oct. 1 Groups X-AA .... Oct , 1 - Oct. 22 - Nov, 5 ups A-F.. • o Sept a 4 - Sept. 25 - Oct. 9 Groups BB-EE.,,0ct. 8 - Oct. 29 - Nov. 12 ups G“M . o ..Sept. 10 = Oct. '1 - Oct. 15 Groups FF-II . . , Oct . 15 - Nov, 5 - Nov. 19 ups N-R.. , , S ept . 17 - Octo 8 - Oct. 22 Gr oups JJ "NN .... Oct . 22 - Nov, 12 - Nov. 26 ups , .Sept. 24 - Oct, 15 - Oct. 29 GROUP A aine usta ais is ton no tland ew Hampshire Lin cord cam over Chester hester ermont Lington tpelier olulu, Hawaii rto Rico GROUP B onnecticut tford Haven London rrs Massachusetts Barnstable Boston Brockton Fall River Holyoke Lowell New Bedford Pittsfield Springfield Worcester Rhode Island i^rovidence CROUP C New York Albany Binghamton Buffalo Corning Ithaca Kingston Malone New York Niagara Falls Oneonta Poughkeepsie Rochester Rome Schenectady Mew York (cont'd) Syracuse Troy Utica Watertown GROUP D New Jersey Atlantic City Jersey City Newark New Brunswick Paterson Princeton Trenton CROUP E Delav/are V/ilmington Pennsylvania Harrisburg Lancaster Lebanon Philadelphia Pottsville Reading Scranton State College C.'j- - . - GROUP F Dist. of Columbia Washington Maryland Baltimore GROUP G Pennsylvania Altoona Beaver Falls Braddock DuBois Pittsburgh Washington West Virginia V{heeling GROUP H Pennsylvania Erie Lock Haven Oil City CROUP I Maryland Cumberland -(over)- Page 2, Si;^plement 73 GROUP I (cont'd) West Virginia Beckley Charleston Clarksburg Huntington Morgantown Princ etcn W^illiamson GROUP J Kentucky Lexington Ohio Akron Cleveland Findlay Gallipoli s Lorain Marion Massillon Sandusky Steubenville Warren Wooster Youngstovrn /' GROUP K Ohio Bellefontaine Cincinnati Columbus Dayton Hamilton Middletown Oxford Zanesville GROUP L Kentuc~ky Danville Louisville Mdddlesboro Paducah GROUP M Indiana Evansville Kentucky Ov;ensboro CROUP N Indiana Anderson Bloomington Conner sville Fort ’"ayne Indianapolis Kokomo LaFayette Logansport Marion Michigan City Muncie South Bend Terre Haute Vincennes GROUP 0 Michigan Ann Arbor Bay City Coldwater Detroit East Lansing Flint Lansing Ohio Toledo GROUP P Michigan Alpena Cadillac Calumet Escanaba Essexville Grand Rapids Hancock Ludington Marquette Midland Saginaw Sault St. Marie Traverse City CROUP Q Illinois Bloomington Champaign Chicago DeKalb Rockford Urbana Indiana Gary I CROUP R Illinois Carbondale Centralia Lincoln Olney Peoria Quincy Springfield GROUP S Michigan Iron Mountain Wisconsin Clintonville Green Bay Madison Marinette Milwaukee Racine Wausau CROUP T Minnesota Austin Brainerd Duluth Hibbing Mankato tCinneapolis New Ulm Rochester St. Paul YJisconsin Eau Claire La Crosse Reedsburg CROUP U Iowa Ames Atalissa Cedar Rapids Chariton Davenport Des Moines Dubuque Fort Dodge Iowa City Iowa (cont’d] Keokuk Mason City Mount Pleasant Sioux City V.’aterloo GROUP V Missouri Brookfield Cape Giradeau Columbia Grandview Hannibal Jefferson City Joplin Kansas City Kirksville St. Joseph St. Louis Sedalia Springfield ' "rent on GROUP W Nebraska Lincoln Omaha North Dakota , Grand Forks South Dakota ; Mitchell Pierre Sioux Falls • Vermi3J.ion '"a ter town i GROUP X ; Montana Billings I Bozeman Butte I Great Falls Miles City Missoula j CROUP I Colorado Boulder [ Colorado Sprin ' Craig Denver Durango Grand Junction Pueblo rwra LOUP Y (cont'd) jbraska GROUP BB Nevada GROUP GG Texas .ance ^oming '•enne imie •ins ®OUP Z .... j dorado rose lenburg iaho \e .pelier ow ivada .11 ■ah n n e ’0 George . Lake City le lal over GROUP AA egon ,ny allis ne ord land m shington ingham nsburg view pia 'man I tie ma a Walla Ely Goldfield Las Vegas Reno Tonopah GROUP CC California Bakersfield Fresno Madera Monterey Pittsburg Sacramento Salinas San Francisco San Jose Santa Barbara Santa Clara Stockton Visalia Yuba City Los /.ngeles San Bernardino San Diego GROUP EE Arizona GROUP DD California Phoenix Tuscon Yuma New Mexico Albuquerque Sante Fe r GROUP FF Texas Amarillo El Paso Lubbock Monahans Austin Beaumont Brownsville College Station Corpus Christi Fredericksburg Galveston Harlingen Houston Karnes City McAllen Port Arthur San Antonio Temple Victoria Weslaco GROUP HH Texas Breckenridge Dallas Denton Fort Worth Hillsboro Longview Lufkin San Angelo Sherman Texarkana Tyler Waco Waxahachie Weatherford CROUP II Kansas , Dodge City Lawrence Manhattan Pittsburg Topeka Wichita Oklahoma Elk City Lawton Muskogee Norman Oklahoma City Tulsa Woodware Supplement No. 73# Page 3 Texas T.'ichita (ROUP JJ Arkansas Blytheville El Dorado Fayetteville Fort Smith Hot Springs Jonesboro Little Rock N. Little Rock Pine Bluff Louisiana Alexandria Baton Rouge Houma Lake Charles Monroe New Orleans Shreveport Tennessee Cookeville Jackson Memphis Nashville CROUP KK Alabama Birmingham Mobile Montgomery Tuscaloosa University Florida Pensacola Mississippi Biloxi Hattiesburg Jackson Meridian State College West Point (over)- Page Us Supplement 73 ®OUP LL Florida Coral Gables Dade County Daytona Beach Fort Lauderdale Fort Myers Fort Pierce Gainsville Jacksonville Miami Orlando St. Petersburg Tallahassee Tampa West Palm Beach Georgia Thomasville ^ • GROUP MM i rrf— = r: t ; Georgia Athens Atlanta Augusta Macon Rome North Carolina Asheville Chapel Hill Charlotte Durham Greensboro North Carolina (con1 Raleigh Wilmington Y\Tinston-S alem South Oarolina Charleston Clems on Columbia Greenville Spartanburg Tennessee Chattanooga Bristol Kingsport Knoxville -(end)- i *d) Virginia Blacksburg Bristol Danville i - GROUP NN H ; Z Virginia Charlottesvill( Harrisonburg Lynchburg Newport News Norfolk Petersburg Portsmouth Richmond i j 1 11 - 'inancial & Trade Holes: Syivania’s first half net ales reached record total of $103,822,579, up 70% from 61,086,101 in same 6 months of 1950. Net earnings were 5,680,670, equal to $2.95 on 1,856,550 shares now out- tanding after payment of preferred; this is more than wice the $2,259,453 ($1.41 on 1,456,550 shares) profit hown for same 1950 period. Second quarter sales also et record: $43,191,494, up 36% from $31,738,190 for same 950 quarter, with earnings of $2,165,515 ($1.11) vs. $1,- 33,609 (64^). Earnings before Federal taxes amounted 0 nearly 4% times what they were first half 1950. Study y Freehling, MeyerhofF & Co., Chicago, gives these op- rating statistics since 1941 — noting that capitalization, esides 1,856,550 shares of common as of June 1, 1951 and >9,964,276 of preferred, includes funded debt of $17,200,000. Pre-Tax Net Per Share 'ear Sales Profits Income Earnings * 950 $162,514,814 $19,221,185 $8,221,185 $5.37 949 102,539,866 5,027,840 3,052,840 1.82 948 99,347,751 6,183,382 3,823,382 2.84 947 . . 95,715,638 2,847,075 2,507,075 2.10 946 69,313,127 1,360,017 2,384,017 1.97 945 - .. 125,750,512 8,383,820 2,136,279 2.05 944 100,398,043 9,353,479 2,053,235 2.04 943 - 60,473,821 7,097,636 1,567,936 1.79 942 32,338,870 3,617,060 1,057,760 1.76 941 20,561,246 2,402,186 1,067,186 1.78 * Based on shares outstanding at end of fiscal years. * * * Zenith and subsidiaries report estimated net con- olidated profit of $2,379,797 ($4.83 per share) after pro- ision of $2,611,603 for excess profits for 6 months ended une 30. Consolidated sales totaled $53,007,639. Second quarter profits were $151,088 (31^), after taxes of $159,- 110, on sales $15,954,575. Since company has changed iscal period to end Dec. 31 instead of April 30, there are 10 comparable figures for same periods last year — but 1950 .nnual report (Vol. 7:12, 17) showed net profit of $5,627,- '03 ($11.43 a share) on sales of $87,704,071 for 8-month leriod ended April 30, 1950, and net profit of $8,479,390 m sales of $134,012,595 for 12 months of 1950. “Although production and sales of TV receivers have leen substantially curtailed because of the normal summer- ime seasonal decline and the restraining effect of Regula- ion W, the company has been maintaining normal produc- ion schedules of radio receivers, particularly portable re- eivers, AM-FM receivers and table model AC-DC sets,” ays July 25 statement by president E. F. McDonald. “In- ventories of Zenith TV sets presently in the hands of the ompany’s distributors and dealers are higher than at the ame date a year ago but they are not considered burden- ome.” ♦ is * ♦ Packard-Bell sales for 9 months ended June 30 were >16,893,445, net income $989,902 ($1.68 per share) after de- luction of $401,700 for taxes. This compares with $9,325,- .28 sales, $796,648 ($1.35) net income for same 1950 pe- iod. Defense orders now exceed $8,500,000, deliveries )eginning this quarter and reaching volume proportions n fiscal year beginning Oct. 1, according to executive v.p. lobert S. Bell. Aerovox, despite decline in TV business and shift to lefense contracts, about duplicated first quarter’s $6,000,- >00 sales during second quarter for gain of 16% over the >10,300,000 in first half of 1950 when net was $1,749,418 '$2.51 per share on 691,356 common), reports Wall Street Journal. Current net is not up to last year’s rate due to ;axes. Company reports only once a year. Hoffman Radio reports net loss of $247,345 on sales of 57,703,942 in first half of 1951. During same 1950 period, sales were $11,229,630, net profit $930,279 ($2.19). WJR, The Goodwill Station Inc., Detroit, reports sales )f $1,693,993 for first 6 months of 1951 vs. $1,713,703 same L950 period. Profit was $288,253 (56age 3. New Curbs Won’t End Station Building, page U- Big Omaha & Havana Station Sale Deals, page 5. Final Industry Color System Emerging, page 5. Trade ‘Climate’ Is Turning Better, page 9. 4th Quarter Under CMP — Fewer Sets? page 9. Outlook for CBS Color Set Production, page 10. Trade, Financial, Mobilization Notes, page 11-13. MEXICO PUSHING NEW TV STATIONS: You can expect Mexico to go forv;ard with TV station construction faster than we "unfreeze" — with border stations prominent. Aside from the one in Matamoros, opposite Brownsville, Tex., promised in September (Vol. 7:31), there are informal reports one or 2 will soon be constructed in Tiajuana, near San Diego, and one in Mexicali, opposite Calexico, Cal., in the Imperial Valley. Mexico *s director-general of telecommunications, Miguel Pereyra, while in Washington this week to consult with State Dept, and FCC for agreements on stations 250 mi. on either side of border, said "20 or 22 grants” have already been made to Mexican enterprisers for stations to be built within a year. He would mention only a few in the works, however — notably wide-coverage transmitters planned atop mountains near Mexico City by Romulo O’Farrill. already operating a station in Mexico City and builder of the one in Matamoros ; and by radio tycoon Emilio Azcarraga, operating Mexico City's other TV. Also, XEW chief engineer Guillermo Gonzales Camarena plans one there to use his "sequency" system of color (Vol. 5:52), apparently same as CBS system. Another station is on tap for Monterrey and one for Guanajuato, latter in geographical center of Mexico, 170 ml. from capital. They may be ready "very soon." List of applications and grants hasn't been officially released, said Senor Pereyra. BUSINESS OF TELECASTING-DOLLAR SIGNS: You can count on one hand the telecasting stations that haven't at least pulled out of the operating red by now. Many may not yet be showing much net profit, due to depreciation charges on big investment and the amortization of heavy early losses — to say nothing of their very unfavorable excess profits base. But simple fact is that the business of telecasting, even now during summer doldrums, is booming. And it's going to enjoy a huge fall-winter business, with time sellouts on books for some networks and many stations. This year's gross time sales of the 4 networks and 107 TV stations will far more than double the industry's aggregate revenues of $105,800,000 of 1950, which compared with $54,500,000 in 1949 (see Vol. 7:13 for official FCC figures). Indeed, we'll go out on limb once again — pretty strong limb, we hope, as was our calculation of $100,000,000 for 1950 (Vol. 6:52) — and forecast that TV time sales for 1951 will equal or exceed $250,000,000! It's impossible to forecast profits — FCC will report these in spring of 1952 — but it's reasonable to assume huge upsurge in time sales mean that the 1950 deficit of $7,900,000 and 1949'S deficit of $23,300,000 are things of the past. During 1950, according to official FCC report (No. 51-308), 54 stations enjoyed operating profits, mostly $100,000 or less each — a few showing $400,000 or more. Networks and their 14 stations accounted for $55,000,000 sales, 93 reporting stations for $50,800,000. Telecasting as whole had operating loss of $7,900,000 largely because nets lost $10,500,000 while their stations showed $1,500,000 profit. Only ABC and CBS, listed on New York Stock Exchange, release P&L statements Copyright 1951 by Badlo News Bureau 2 — otherwise, neither networks nor stations make public their gross business and net profits. Even ABC-CBS do not break down figures as between TV-radio. Nor does FCC release anything but annual aggregate figures well after end of year. But it's possible, on basis of monthly network sales figures, which are officially released, plus experiences of stations reported privately and informally to us, to draw some reasonable conclusions about the course of this year's business. ♦ ♦ * * Network time sales were $55,098,126 first half of this year, according to Publishers Information Bureau — NBC S26,759,532, CBS S17,069,528. ABC 88,228.700 (Vol. 7:29). Unreporting DuMont's sales are known to be $5,060,566. These sums are exclusive of the time sales of their own stations, now numbering; ABC & NBC 5 each, DuMont 3, CBS 2 plus 45% of a third. Best income months for networks and stations are fall-winter, and nearly all have rate increases in effect or about to go into effect. So, if networks did about $55,000,000 first half of 1951, it's fair to assume they'll do a lot better during second half. Let's guesstimate combined network sales for year at $125,000,000. Old rule-of-thumb in radio was that national-regional spot plus local about equalled network sales — but in recent years ratio has been nearer 70% spot-local. 50% network. In TV, it probably isn't that yet — but it's good guess that the 107 stations in the aggregate are grossing more from spot-local than the networks are from national. Quite a few stations are exceeding $1,000,000 billings rate, some much higher — one sold $4,000,000 worth of time last year alone (Vol. 7;13). Spot-and-local , in fact, have been going like the proverbial house afire Rorabaugh Reports at the end of May listing 4227 local-retail advertisers plus 1095 national-regional spot advertisers on 99 reporting stations, up from 3883 & 894, respectively, at end of 1950. There were 158 network users at end of May. Therefore, merely doubling the network sales figure to account for gross time sales by the telecasters as a whole would seem quite conservative. Figure for all would thus come to $250,000,000. Our opinion is it will be higher in the final reckoning from FCC. Meanwhile, we can go only by monthly net- work "gauges", as reported by PIB and published regularly in these pages. ^ ^ fti* 'T* A quarter-billion dollar "take" by mere 107 stations in 65 markets, plus 4 networks that so far extend to only 48 of those markets — and then only part time due to paucity of circuits ! What will the figure be when there are more stations and wider networks? Your guess is as good as ours. But it's noteworthy that the 6-year-old TV child is fast approaching the comfortable estate of its radio parents, whose 50 years have spawned some 2250 AM and 650 FM radio stations. These and the 4 radio networks grossed $447,700,000 last year, an all-time high, according to FCC audit (Vol. 7:16). COMPLEXES IN COAST-TO-COAST HOOKUPS: Only one TV circuit westward as of Sept. 30. one eastward about month later — that's all AT&T promises for transcontinental net- work service in immediate future. The 4 networks will have to divvy the facilities. We erred last week (Vol. 7:31) in reporting 2 TV microwave circuits west- ward, 2 eastward — though it's fact there are additional telephone channels in each direction. It's also fact that AT&T contemplates more circuits, both phone and TV, for it has just filed 71 applications with FCC for that many additional transmitters on its Chicago-San Francisco relay towers, proposing to spend $3,000,000. All sorts of stories are going rounds since prospect of transcontinental baseball, football and Hollywood shows opened up with definite time fixed for coast- to-coast hookups. AT&T says there's as yet no big-name time-and-talent show planned on all 4 networks to inaugurate transcontinental service, such as it sponsored when first hookup from East to Midwest was opened up in January 1949. But it indicated occasion will probably be made gala one, with possibly big sponsored show. Between Omaha and San Francisco, only Salt Lake City (2 stations) can tap into transcontinental for network service, but there's story from Denver (no outlet) 3 that theatre interests there now propose to do likewise — simply projecting TV shows taken off the relays onto local screens. And trade headlines now proclaim that " int e mat i onal " and "world-wide” TV hookups are in offing, making good copy out of Hollywood interviews with NBC's Pat Weaver. Best "international" TV prospect in near future is projected linking of Canada's Montreal-Toronto hookup (stations not yet built) into U.S. networks via Buffalo (Vol. 7:30). Nearest to "world-wide" service in foreseeable offing is shipping of kine-recordings of big TV shows to U.S. troops. Newly completed Omaha-San Francisco microwave setup comprises 55 relay sta- tions, Chicago-Omaha 18, New York-Chicago 34 — 107 in all. No time commitments have been made to networks yet, though it's taken for granted they will divide by agreement as they do on other limited-circuit routes. Note ; Coaxial-microwave intercity TV links spread spectacularly but slowly, won't get real impetus until TV freeze ends and new stations are actually built. For rest of year, AT&T plans only new Memphis-Birmingham-Atlanta coaxial via Jackson, Miss. Only others definitely in works; San Antonlo-Austin microv;ave, due sometime in 1952; added Washing! on-Atlanta microwave circuits, also sometime in 1952; and an Oklahoma City- Amarillo coaxial now under survey but no construction scheduled yet. All are designed basically for added phone service, for which Omaha-San Francisco setup is also to be used starting Aug. 17. NICE UFT REPORTED FROM POWER BOOSTS: The quick and easy benefits of FCC power-hike ruling (Vol. 7:30-31) have already been achieved by almost all stations eligible — 41 of the 46 requests having been granted in last 2 weeks. [For list of this week's grants, see p. 14; for last week's, see Vol. 7:31.] Sharp improvements in service have come in number of markets, but picture enhancement has been moderate or merely nominal in many instances — though stations are naturally making most of every watt, promotion-wise. Real payoff comes in such places as Miami, where WTVJ had been operating with weakest signal of all metropolitan stations. Now, with station's ERP lifted from 2.2 to 16.5 kw, manager Lee Ruwitch tells us that signal is getting into West Palm Beach, 63 miles away, so well that dealers had 300-400 sets shipped in, sold 150 at once, expect 2000 sales before end of season. And one enterprising West Palm Beach dealer rushed to buy time on WTVJ to reach his potential customers — but sizeable antennas and boosters are still needed there, according to Ruwitch. Most marked improvement came in 30-mile radius, he reports. There, indoor antennas now work, whereas outdoor installations used to be mandatory. New York's WOR-TV telecast request for reactions to its 9-to-22 kw boost, drew rash of glowing reports from towns well into Pennsylvania, New Jersey, upper New York State, etc. — as well as from New York City's "canyons" where shadows and indoor antennas often degrade pictures. WOR-TV s desire to join others on Empire State Bldg, could conceivably cool now. Says engineering v.p. Jack Poppele ; "Why, people are now getting good pictures with the ends of their antennas pointed at us." Two big jumps at once were taken by New York's WJZ-TV Aug. 9 when it hiked power 5% times to 20 kw and moved to permanent Empire State Bldg, antenna. Full report on improvement will come from survey, by outside organization, of 420 fringe-area homes, but engineering v.p. Frank Marx is all smiles, says spot observations indicate improvement is everything hoped for. "Next, 200 kw," said he. Other New York stations achieving increases haven't yet reported results. ^ ^ Any further gains will be long coming, since they involve purchase and in- stallation of new equipment, rather than mere twist of transmitter dials. Actually, few operators can see good reason for buying gear to get the 50 kw ERP now permit- ted, when freeze-end seems certain to bring 100 and 200 kw authorizations. However, high-powered transmitters and amplifiers would be snatched up and put to work as soon as available — if FCC permitted. But it won't, since it feels; (1) It can't give iron-clad guarantee that end of freeze will make such equipment 1 - 4 - permanent, and (2) As soon as station has equipment capable of more power, pressures grow for permission to use it. Example cited at Commission is WNHC-TV, New Haven. It was granted as "com- munity" station, with 1-kw maximum. But, FCC men say, station was given 1.82 kw in "a moment of Commission weakness." Station bought 5-kw transmitter, but has been limited to only 500 watts of it. This week, it asked permission to use full 5 kw. Commission's basic premise, stemming primarily from legalistic caution; We will permit nothing outside of existing rules until freeze is over. This goes for powers, heights, station classifications. It even applies to propagation curves, despite fact FCC knows they're obsolete. All during freeze, and currently, it has been granting site changes, etc., calculating coverage on old propagation and protection data. Stations have been pounding at Commission gates for hikes to FCC-proposed 100 and 200 kw, but Commission has been adamant, is likely to stay that way \intil someone comes up with arguments more persuasive than those employed to date. Now that virtually everyone's throttle is wide open, only prospects for further improvement before end of freeze are; (1) Installation of 5-kw transmitters by those few stations, not community- type, using smaller units — WFMY-TV, Greensboro ; WTTV, Bloomington; WLWD, Dayton; WICU, Erie ; KDYL-TV, Salt Lake City. Incidentally, WBNS-TV, Columbus has been oper- ating 5-kw job, not .5 kw as reported in Vol. 7;30. WFMY-TV has already asked for CP to install 5-kw. Others may elect to wait for freeze-end, install big ones then. (2) Use of higher-gain antennas. Commission will permit outlays for these, but won't let stations touch transmitters to get more than 5 kw. Not too many of these are expected — also because of freeze-end uncertainties. (3) Construction of taller towers. Actually, this means more than do most power boosts. Number of these are in works, steel availability permitting. NEW CURBS WON'T END STATION BUILDING: still no "ban" or "freeze" on TV-radio station alterations and construction — notwithstanding widespread misinterpretations of new NPA regulations placing construction under Controlled Materials Plan (Vol. 7:31). Small scale construction may be easier to start, in fact, under new controls than it was under old (Vol. 7:19 et seq). On basis of best information, it's likely these types will get go-ahead from NPA in fourth quarter; (1) Remodeling of TV or radio studio & transmitter buildings. (2) New station construction on modest scale. These projects may be deferred; (1) Big new TV antenna towers. (2) Radio City- type buildings. But by time freeze is over, it's unlikely TV station building will be subject to severe restrictions — barring shooting war, of course. Big in- dustrial expansion program for defense production, which necessitated building con- trols, is scheduled to be over the hump by first or second quarter 1952 and con- struction material situation will then be much more favorable. Principal provisions of new building regulations (M-4A, CMP Reg. 6) , as they apply to broadcast stations; (1) NPA won't specifically OK any construction before Oct. 1. (2) No new building can be begun before Oct. 1 unless builder has all the materials he needs, or doesn't need more than 2 tons of steel, 200 lbs. of copper or any aluminum. (3) After Oct. 1, anyone may build — and receive guaranteed allot- ment of materials — if he doesn't need more than 2 tons of steel, 200 lbs, of copper or any aliiminiim. (4) If he needs more than that, he must apply to NPA. If applica- tion is approved, he'll receive allotment of all the steel, copper and aluminum he needs. If it's denied, he can't build in fourth quarter. Most broadcast alteration and construction projects use relatively little controlled materials, and NPA approval is expected to be more or less routine. Many alterations need less than 2 tons of steel, can be built without application. FCC offered to supply NPA with general criteria on "community need" as it applies to TV-radio stations — for use in deciding applications for construction of broadcast facilities. NPA turned down offer, said it was applying no "predetermined standards," but would use FCC as source of information in checking applications. 5 BIG OMAHA & HAVANA STATION SALE DEALS: Watch how publishing and theatrical interests become prime competitors of the radio broadcasters — not only as applicants for new TV stations, come end of freeze, but also as purchasers of existing stations. We had further example of their eager quest for TV properties this week, when two more 7-figure sale deals were disclosed — one in Cuba. You can expect more as the affinity of TV, .iournalism and films becomes increasingly apparent. WOW-TV, Omaha, with its AM counterpart WOW were sold for S2, 525, 000 to the Meredith Publishing Co., $24,000,000 concern which publishes the widely-circulated magazines Better Homes & Gardens and Successful Farming. Sale culminated probes by several prospective buyers (Vol. 7:27-28), frequent denials by principals headed by recent Secretary of Navy, now Ambassador to Ireland, Francis P. Matthews. Meredith also owns WHEN, Syracuse, which it started Dec. 1, 1948 as 47th station in nation, has pre-freeze applications pending for Rochester and Albany, is hell-bent to become major factor in TV — indicated also by its purchase this week of 40% interest in Princeton Film Center Inc., Princeton, N.J. CMUR- TV , Havana , with its Union Radio Network, has been sold for reported $1,500,000 by Director Kaspar Pumarejo and backers (including local Polar brewery and Partagas tobacco interests) to Manuel Alonso, owner of Noticiaro Nacional, the island's main newsreel producer. Alonso actually holds CP for Channel 7, but he and his backers apparently prefer to take over going CMUR-TV on Channel 4, Cuba's first outlet, founded by Pumarejo and inaugurated less than year ago (Oct. 24, 1950). Rumors have Cuba's President Prio and family back of Alonso, but this is denied. :5c Omaha deal is complex, involves Meredith assuming 25-year rental lease from Woodmen of the World, original owner of WOW, at $160,000 a year — first profits to go into $750,000 fund guaranteeing lease and providing for equipment purchases. Half has already been paid in, with 19 years to go. WOW Inc. has $200,000 paid capital, $720,000 surplus account, total current assets of $673,000, current liabilities of $220,000. Combined TV-AM stations first 6 months of this year had operating gross of $996,386, net profit of $91,100 after provision of $97,800 for taxes. Stockholders own equal amounts of the 1000 shares of common and 1000 pre- ferred, estate of late manager John J. Gillin holding 238; Mr. Matthews, 250; Guy C. Myers, New York & Seattle utilities magnate, 250; Robert P. Samardink, head of local detective agency, 83; M.M. Meyers, financier, 84; J.J. Isaacson, governor of Ak-Sar-Ben fair grounds, 83; Cecelia Broderick, Mr. Gillin' s former secretary, 12. * * * Of 3 Other recent station deals still pending FCC approval (of 10 since TV's post-war emergence; Vol. 7:30), one got nod this week — the $2,500,000 sale of KFI-TV, Los Angeles (Vol. 7:23) by Earle Anthony to Thomas S. Lee Enterprises Inc. Comr. Walker dissented, Hyde, Webster, Jones & Sterling approving. The 2 others pending FCC approval: WLAV-TV, Grand Rapids, sold to Bitner group for $1,300,000 (Vol. 7:19) and WBKB, Chicago, sold for $6,000,000 to CBS but involved along with ABC-TV's 5 owned stations in projected ABC-Paramount merger (Vol. 7:21). The KFI-TV & WLAV-TV sales excluded AM counterparts, retained by present owners. Note ; Atlanta's pre-freeze CP, only one still on FCC books, looks like it will shortly turn into full-fledged commercial outlet — nation's 108th — FCC this week granting transfer of WCON-TV to local group (for details, see p. 14). FINAL INDUSTRY COLOR SYSTEM EMERGING: "Definite improvement. " That's the most you can get in way of comment from any of 4 top FCC staff engineers who attended 4 im- portant compatible color demonstrations this week. But there can be little doubt they were greatly impressed with their first view of such pictures since May 1950. And there's less industry doubt than ever that compatible system is rushing pell-mell back to FCC for eventual approval, along with CBS system or in lieu of it. Commissioners themselves will probably see latest pictures soon. RCA is expected to invite them when it starts public showings later in month — but deci- sion apparently awaits chairman David Sarnoff's return from Europe next week. Every variation on compatible theme was shown Broadcast Bureau chief Curtis 6 Plummer, chief engineer Edward Allen, Technical Research acting chief Wm. Boese. Lab Div. chief Edward Chapin. Demonstrations were successively Aug. 6-9 by GE in Syra- cuse ; Hazeltine. Little Neck, L.I.; R^, Princeton; Philco, Morrisville,~Pa. Main purpose of demonstrations was to enable National TV System Committee Panel 13 (standards), under Hazeltine's A.V. Loughren, to agree on which set of standards to field test from here on out — probably until year's end. Panel wound up in New York Aug. 10, agreed on "large fraction" of issues, according to Loughren. Recommendations will be submitted to NTSC's overall commit- tee Aug. 15, and field testing during forthcoming several months will be based on them, if parent body is satisfied with them. [For panel members, see below.] "There was agreement in principle," says Loughren, "with several specific 'numbers' recommended. We didn't pin everything down, but we're closer and closer to agreement. We did pretty well today. We'll let it soak a while." Here are types of system variations shown; (1) Color carrier at 3.58, 3.89 and 3.99 me. (2) System with and without oscillating color sequence (OCS), also called "color phase alternation" (CPA) or "flip flop". (3) Pictures with and without constant luminance factor. Only RCA showed live pickups, rest using still pictures from flying-spot scanners. As test of color fidelity, resolution, etc., RCA compared televised color picture with slide projection of same scene, side-by-side. One observer scratched his head, blurted; "Which is which?" Philco supplied weak-signal test in Morrisville, about 25 miles from its WPTZ transmitter, right on noisy U.S. Route 1. Then signal was attenuated to equiv- alent of 40-50 mile reception, and Philco v.p. David Smith concluded; "Stands up as well as black-and-white rnider adverse signal and interference conditions." Schedule of further field tests will probably be issued soon. Zenith says it's prepared to cooperate by transmitting compatible signals over its experimental Channel 2 facilities in Chicago, first such telecast signals there. Zenith has also experimented with CBS-type transmissions. * * * Cost of compatible receivers would probably trouble FCC if system were put before it today. But most experts foresee drastic drop in matter of months, many agreeing that subtraction of 15-20 tubes from RCA's current 54-tube set is conceiv- able before year's end (Vol. 7;30). Even more important, some say, are such critical techniques as color phase alternation, which permits far greater tolerances in construction. And there's little question cost of tri-color tube will plummet, just as tubes did for black-&- white, when mass production becomes fact. Since manufacturers will want tri-color tubes — for CBS system, even if FCC again rejects compatible system — they're likely to invest in plants to make them. Personal Notes: John T. Quisenberry appointed gen- eral attorney, AT&T, succeeding T. Brooke Price, who on July 1 became v.p. & general counsel . . . John McClay, ex- WPIX, New York, returns to WCAU-TV, Philadelphia, as asst, to v.p. Charles Vanda . . . William Dozier, ex-Samuel Goldwyn Productions, joins CBS-TV story dept. Oct. 1, assigmed to develop new talent . . . W. Eldon Hazard pro- moted to sales mgr., CBS Radio Network; Guy Dell Cioppa promoted to director of CBS network programs, Hollywood . . . Cecil Barker, ex-KTSL, named TV program director, KECA-TV and ABC western div. . . . Norman V. Farrell, ex-Weed & Co., joins WATV & WAAT, Newark, as asst, sales mgr. . . . Louis L. Ergmann, ex-Hewitt, Ogilvy, Benson & Mather, named TV-radio director of Robert W. Orr & Associates . . . George R. Jeneson, ex-WLW Chicago sales office, Aug. 27 becomes Midwest sales mgr., WOR & WOR-TV . . . Leavitt T. Pope, e\-New York News, named asst, to G. Bennett Larson, WPIX gen. mgr. Members of NTSC Panel 13 (standards) who attended 4 color demonstrations this week (see story above) include: A. V. Loughren, Hazeltine, chairman; W. T. Wintringham, Bell Labs, vice chairman; Wm. Bradley, Philco; George Brown, RCA; Charles Hirsch, Hazeltine; Leo Mead, Halli- crafters; John Rennick, Zenith; Garrard Mountjoy, Strom- berg-Carlson; Albert Murray, Caldwell-Clements; Lewis Winner, IRE; Henry Samulon, GE; Kurt Schlesinger, Motorola; H. G. Schwarz, Crosley; G. R. Tingley, DuMont; B. F. Tyson, Sylvania; S. Klapman, Admiral; G. C. Larson, Westinghouse; Ralph Evans, Eastman Kodak. Old song with new words: WCTU president Mrs. D. Leigh Colvin, at big temperance convention in Boston this week, said TV and radio are turning American par- lors and kitchens into “beer bars”. To compete with TV on meeting nights, Chicago News- paper Guild now offers door prizes. Other unions report they’re shifting dates away from big TV shows. 7 Home or theatre TV for major sports events? Both sides in the battle fired volleys this week, and TV networks and set manufacturers were talking about rig- ging up a weapon that could turn out to be a blockbuster — or a dud. DuMont Network sports sales chief Tom Gallery met with NBC’s TV operations & sales v.p. Ed Madden to lay groundwork for multi-network drive to outbid theatres for rights to topflight sports. Scheme is to set up permanent organization of TV manufacturers — each contributing on pro-rata basis — to sponsor sports on home TV. Plan is outgrowth of successful 8-manufacturer sponsorship of July 18 Charles-Walcott bout (Vol. 7:28-29). But there’s many a slip, and some in industry doubt such an alliance could be formed, or, once formed, hold together. Other developments this week: (1) Nathan Halpern’s Theatre Network TV Inc. an- nounced it had bought exclusive rights to Aug. 15 Joe Louis-Jimmy Bivins 10-rounder in Baltimore for 15-thea- tre hookup, with New York City and Boston on circuit for first time. Baltimore theatres will be blacked out. (2) Pabst announced simultaneously it had pushed its fight telecast schedule ahead 6 weeks to include 2 cham- pionship bouts over CBS-TV & radio this month. Joey Maxim-Bob Murphy light-heavyweight bout Aug. 22 and Network AcCOnnls: Reynolds Metals Co. (aluminum products), makes TV debut Sept. 26 with sponsorship of half-hour alt. weeks of Kate Smith Evening Hour on NBC-TV, Wed. 8-9, thru Buchanan & Co.; Reynolds is third to sign for show which starts Sept. 19, Congoleum- Nairn and Norge Div., Borg-Warner Corp. being others. At same time, Reynolds bought first half-hour of Tallulah Bankhead’s Big Show on NBC-Radio, Sun. 6:30-8, starting Sept. 30, and on Aug. 9 it sponsored Hambletonian Stake, harness race, onetime on CBS-Radio . . . United States Shoe Corp. (Red Cross shoes) Sept. 12 presents Irving Berlin’s Salute to America one-time on NBC-TV, Sun. 8-9; revue will be directed & hosted by Berlin, who will con- tribute fee to Girl Scout Fund. It’s second one-shot for Red Cross shoes, first having been tribute to Richard Rodgers last March 4 (Vol. 7:3) ... Pabst Sales Co. (Pabst Blue Ribbon beer) renews sponsorship of live telecasts of championship fights on CBS-TV, Wed. 10-11, starting Aug. 22 with Joey Maxim-Bob Murphy light heavyweight title bout followed Aug. 29 by Kid Gavilan-Billy Graham fight for welterweight crown; 41 fights in all are scheduled for season . . . U. S. Tobacco Co. (Model, Dill’s Best, Old Briar, Tweed pipe tobaccos), brings back Martin Kane, Private Eye Aug. 30 to NBC-TV, Thu. 10-10:30, Lloyd Nolan re- placing William Gargan as star of show . . . Ralston Purina Co. (cereal) resumes sponsorship Sept. 9 of Space Patrol on ABC-TV, Sun. 4:30-5 alt. weeks; Ralston also sponsors Your Pet Parade during alt. week period . . . Florsheim Shoe Co. brings football news back for second year starting Sept. 27 with Red Grange Predicts on ABC- TV, Thu. 10 : 45-11, thi-u Gordon Best Co. . . . Seiberling Rubber Co. (tires) starts sponsorship Sept. 24 of The Amazing Mr. Malone on ABC-TV, alt. Mon. 8-8:30, thru Meldrum & Fewsmith, Cleveland; show will alternate with Bristol-Myers’ Mr. District Attorney starting Oct. 1 . . . Sundial Branch, International Shoe Co. will sponsor 11:15- 11:30 portion of Foodini the Great, filmed puppet show, on ABC-TV, Sat. 11-11:30 a.m. starting Aug. 25; Bristol- Myers will sponsor 11-11:15 segment starting in Oct. . . . Wine Corp. of America (Mogen David wine) starts Charlie Wild, Private Detective Sept. 11 on ABC-TV, Tue. 8-8:30, thru Weiss & Geller Inc., Chicago, not on NBC-TV as er- roneously reported in Vol. 7:28 . . . M & M Ltd. (candy) resumed alt. week sponsorship Aug. 12 of 5:30-6 portion Kid Gavilan-Billy Graham welterweight Aug. 29 will lead off season of 41 Pabst-sponsored fights. (3) Rep. L. Gary Clemente (D-N. Y.) introduced reso- lution Aug. 6 for investigation of boxing — including ques- tion whether denial of bouts to TV set owners consti- tutes monopoly practice. (4) Theatre-TV interests were working out plans for full 9-week schedule of telecasts of college football games which will be kept from home screens under National Col- legiate Athletic Assn.’s experimental program. Halpern estimated 100 theatres will carry the games, but figure seemed a bit high to most observers. Already signed up for theatre TV are Princeton, Notre Dame, Pitt, Yale, Fordham, Dartmouth, Navy. United Paramount was nego- tiating for right to Midwest games. (5) Continuing its letter-and-press-release campaign, group known as Fair TV Practices Committee protested Navy’s proposed tie-up with Theatre TV to Vice Admiral Harry W. Hill, Naval Academy superintendent. Aug. 11 letter accused Navy of following “bad policy” because Academy “is entirely supported by public funds and pre- sumably should be operated solely in the public interest.” (6) Westinghouse, official sponsor of NCAA’s “limited experimental schedule” of grid game telecasts this fall (Vol. 7:30), picked NBC-TV as network outlet. of Super Circus on ABC-TV, Sun. 5-6 ; Peters shoes (Inter- national Shoe Co.) shares alt. weeks with M & M Ltd., Canada Dry sponsoring 5-5:30 segment weekly . . . Hall Brothers Inc. (Hallmark greeting cards) reported ready- ing Oct. 7 sponsorship of Sarah Churchill interview show on CBS-TV, Sun. 5:45-6, thru Foote, Cone & Belding, Chi- cago . . . Armour cancels NBC-TV Garroway at Large. Sialion Accounts: National Assn, of Manufacturers has placed order for one-time use, between Aug. 15-31, of its 15-min. film Story of ‘Kip’ Van Winkle, on one station in each market, thru Benton & Bowles . . . Twin City Lines, operating streetcars & buses, using WTCN-TV, Minne- apolis, along with radio to promote traffic and improve pub- lic relations; formerly used only newspapers . . . Gordon Baking Co., for Silvercup Bread, has 20-sec. & 1-min. films prepared by Video Films for use on stations in New York, Chicago, Detroit, Toledo, thru N. W. Ayer . . . Pure Drug Chemical Co., Chester, Pa., maker of foot antiseptic spray called No-If, is newcomer to TV, sponsoring Mrs. Greater Philadelphia contest to select area’s Mrs. America con- testant, Fri. 9:30-10 on WPTZ, Philadelphia, thru Loh- meyer-Adelman Agency, Philadelphia . . . Dallas Home Builders Assn, using WFAA-TV Sun. 2-3 to display homes for sale, floor plans, discuss financing . . . Cling Peach Ad- visory Board, San Francisco, plans “Party Peach Pie” pro- motion in October, tying in with Pet Milk Co., using TV, newspapers, magazines, store tie-ins . . . E. L. Bruce Co. (Bruce floor cleaner, wax & applicator) will use TV in fall campaign, thru Christiansen Adv., Chicago . . . Among other advertisers reported using or preparing to use TV: Good Humor Corp. (ice cream products), thru Grey Adv. Inc., N. Y. (WCBS-TV); American Biscuit & Cracker Co. (ABC crackers & cookies), thru Condon Co. Inc., Tacoma; Brown & Williamson Tobacco Corp. (Raleigh cigarettes), thru Russell M. Seeds Co., Chicago; Albert Inc. (BraVete nylon slips), thru Edward A. Grossfeld & Staff, Chicago; Shulton Inc. (Old Spice men’s toiletries), thru Wesley As- sociates, N. Y.; Sol Friedman & Sons (slips & gowns) & Seely Shoulder Pad Corp. (shoulder pads), thru Dunay Co., N. Y.; Meyenberg Milk Products Co. (evaporated milk), thru Mayers Co., Los Angeles; R. M. Hollingshead Corp. (Whiz automotive chemical products), thru Campbell- Mithun, Chicago (KSTP-TV); Slumberland Products Co. (bedding), thru Hirshon-Garfield, Boston (WNAC-TV). 8 TeleCSSting Notes: NBC-Radio, too, is making big pitch to national advertisers, with full-page ads this week beginning buildup paralleling CBS’s (Vol. 7:31). Ad cap- tioned “People sell better than paper” makes point that “when you want to close a sale with a tough customer, you don’t send a printed page” and that radio reaches 19 out of 20 families whereas TV as yet reaches only 3 out of 10. “The voice is more persuasive than ink,” says first ad, which looks like it’s going to start nice furore among competing printed media. Printed NBC-Radio ads in 14 business papers will be backed up by 5 Sun. night radio shows starting Aug. 12, promoting radio as ad medium, playing on theme “You Can’t Take It With You.” Whole campaign is budgeted at $720,200 for rest of year . . . AFRA will bar from membership Communists so proven by State or Federal court action “since Dec. 31, 1945”, re- sult of 2118 to 457 vote on ballots sent to 7000. Federa- tion will also disqualify subversives identified by FBI, Justice & State depts. ... Of 244 adult Negro TV viewers polled by Advertest Research about CBS-TV Amos ’n’ Andy show, 75% said it’s “not harmful” to colored race; 86.5% said it should be continued; survey was occasioned by Negro association’s threats of boycott (Vol. 7:27) . . . CBS has leased 25,000 sq. ft., 6 upper floors, in 7-story building being built on E. 52nd St., adjacent its Madison Ave. quarter's, for use as executive offices . . . Cathedral Films has released entire backlog of 40 religious pictures to TV, asking $12,500 per film, for first run . . . Douglas Fairbanks Jr. and producer Sol Lesser planning to reissue about 16 old Doug Fairbanks Sr. films to theatres, then sell them to TV . . . KLAC-TV, Los Angeles, reported to have paid $320,500 for 52 old features bought from Quality Films (Charles Weintraub) who put package together from properties of independent producers and local Chemi- cal Bank & Trust Co. . . . WKZO-TV, Kalamazoo, raised base hour rate Aug. 1 from $400 to $500, one-min. from $60 to $90, set 9 a.m.-5 p.m. as Class B time . . . WDAF-TV, Kansas City, raises base hour rate Aug. 15 from $450 to $550, one-min. from $90 to $110 . . . WHBF-TV, Rock Island, new rate card Sept. 1 raises base hour rate from $250 to $300, one-min. from $50 to $60, changes Class A time to 6-11 p.m. Mon.-Fri., 1-11 p.m. Sat. & Sun., Class B to 5-6 p.m. Mon.-Fri. . . . WENR-TV, Chicago, raises base hour rate Sept. 1 from $1300 to $1500, one-min. from $250 to $300. ■ TV network hookups via coaxial and/or microwave cost 7 times more than i-adio, requiring much wider-band channels, but they’re far from highest item in networking overhead, according to AT&T spokesman taking issue with our observations about high cost of coaxial-microwave (TV Films May Supersede Live Networks; Vol. 7:31). Long lines represent far less than 5% of average program cost, actually average only 10^ per mile per half hour of pro- gram time, or $11 per station on 40-station hookup, we’re informed. There are now approximately 18,500 miles of coaxial-microwave TV circuits, and during 1950 (when combined TV networks took in $55,000,000) total long lines billings ran some $5,000,000, according to FCC sources. Admiral $7,000,000 plant expansion program includes $2,000,000 for new 300,000 sq. ft. building at Cortland & Springfield, Chicago, for defense work; $1,500,000 seven- story office building at Cortland & Hamlin; $1,000,000 ex- pansion of Galesburg plant by 120,000 sq. ft.; $2,500,000 for added distribution space and facilities in Chicago, New York, Boston — all financed from working capital, no bor- rowings. Dr. Edward U. Condon, director. Bureau of Standai'ds, has resigned as of Sept. 30 to join Corning Glass as director of research and development. Truly international TV standards, meaning easy di- rect exchange of programs without film, just aren’t in the cards for visible future: regional standards have good chance. Those facts are clear from June 5-July 6 international committee sessions in Geneva, according to recently-returned U. S. participants. No nation would yield in advocacy of its system — 405 lines, 5 me channels (Britain); 525, 6 me (U. S. and most of Americas); 625, 7 me (most of Europe); 819, 14 me (France). All that was agreed upon were 11 standards com- mon to all systems — 4:3 aspect ratio, 2:1 interlace, inde- pendence of power supply frequency, etc. Besides number of lines, and channel widths, systems differ in fields (50 & 60), modulation (positive and negative picture, AM & FM sound), other basic characteristics. Participants decided to study many problems, includ- ing: (1) Color, which all want to integrate inexpensively into their systems. (2) Bandwidth reduction techniques, such as dot-interlace, “crispening”, long-persistence phos- phors. (3) Interchange of programs among nations and between systems. (4) Desired-to-undesired signal values. * * ♦ * Foreign TV stations now operating, other than Latin American, are as follows, according to data submitted at Geneva sessions (all experimental except British and French) : Denmark — 1 station, 625 lines, .5 kw transmitter output, 50 receivers, 6 more stations planned. France — 1 station on 441 lines, 30 kw; 2 on 819 lines, 3 kw, 25,000 sets, 3 more stations planned. Italy — 1 station, 625 lines, 5 kw, 1000 sets. Japan — 1 station, 525 lines, .5 kw, 25 sets. Netherlands — 2 stations, 625 lines, one with 3 kw, other 5 kw, 1000 sets, 1 or 2 more stations planned. Britain — 2 sta- tions, 405 lines, one with 17 kw, other 42 kw, 1,000,000 sets, 3 more stations planned. Sweden — 1 station, 625 lines, 1 kw, 25 sets, 1 more station planned. Switzerland — 1 sta- tion, 625 lines .4 kw, 30 sets. Czechoslavakia — 1 sta- tion, 625 lines. Germany (Allied High Commission) — 1 station, 625 lines, 1 kw, 25 sets, 6 more stations planned. Russia — number of stations and sets not given, 625 lines (8 me channels). Countries without stations, but plan- ning to build: Spain 2, Morocco-Tunisia 2, Monaco 1. Still others report existence of “planning committees.” TV’s own “Battle of Berlin” opens Aug. 13 when U.S. throws two electronic “divisions” into cold war to show strength and productivity of free world. Sponsored by ECA, both CBS and RCA will give most Berliners their first taste of TV — color and monochrome, respectively. Two-week demonstrations are expected to attract thou- sands from World Communist Youth Festival in East Berlin, for which Russia claims 2,000,000 attendance. CBS contingent of 7, headed by Dr. Peter Goldmark, wdll con- duct closed-circuit color programs in Funkstmun Exhibit Grounds. RCA’s Richard Hooper and staff of 27, taking along some 35 tons of materials, have installed complete monochrome transmitter, the pictures to be received on 3 big-screen units in Schowenedgerstadt Park. Additional 110 home-type sets will be scattered throughout West Berlin. CBS also plans color transmissions of surgery, sponsored by Smith, Kline & French Labs, at Sept. 24-29 International Congress of Surgeons in Paris. GE Appliance Div.’s 150 distributors and salesmen meet in NBC-TV’s Studio AA in Chicago’s Merchandise Mart Sept. 5 for 9-9:30 a.m. closed-circuit preview of GE’s Bill Goodwin Show, starting Sept. 11, Thu. 3:30-4, thru Young & Rubicam. It’s part of sponsor’s sales counselors convention in Chicago, and 48 interconnected stations will carry the preview so local GE distributors and dealers can also watch. NBC calls it “pattei'n for what may be the typical sales convention of the future.” WITH AM-FM REPORTS CONNECTICUT AVE. N.W, *r WASHINGTON 6. 0. C. • TELEPHONE MICHIGAN 2020 Trade Report August 11, 1951 J TRADE 'CLIMATE' IS TURNING BETTER: Signs are still good, "psychological impetus" seems to be there — but we'll have to wait a few more weeks, maybe a month or so, to be able to gauge fall-winter industry trends with any feeling of assurance. Right now, you can almost feel the "lift" TV-radio trade is enjoying as re- sult of bullish developments; excellent values of product, whether in new lines or old ; easier credit terms, not yet making deep impression on retail trade but reason- ably certain to do so when people turn homeward from vacations ; higher TV powers, improving signals and widening service areas of many markets ; super-dooper new telecasting programs promised soon, and coast-to-coast network service in offing; assured public buying power as Congress acts favorably on multi-billion dollar defense budget covering procurement to mid-1952, production into 1953. With defense effort still on upgrade, with materials shortages no mere chimera, there are those in the industry who still feel TV-radio merchandise must inevitably go into short supply by end of year or maybe a bit later. Even discount- ing huge inventories, discounting their impulse to "talk up" better times, there may be some basis for long-term bullishness — though certainly the present pile-up of TV receivers doesn't seem to bear them out for near future. Distributor meetings thus far have reflected bullish outlook, despite fact wholesalers are probably loaded as heavily as manufacturers. Consensus is that the dealers are slowly but surely getting rid of inventory, and are now more inclined to buy — "their frame of mind much better," to quote one executive. Puzzler to trade is effect CBS-Columbia' s upcoming color promotion campaign will have on black-&-white market, in which CBS as a telecaster as well as manufac- turer now has same stake as rest (see story, page 10). Weekly output figures, meanwhile, tell more of same. Week ending Aug. 3, RTMA reports, saw only 51,217 TVs produced (3229 private label), up less than 500 from preceding week's 50,772 (Vol. 7:31) — and comparing with first August 1950 week's 160,000! Yet factory inventories forged ahead again, reaching new high of 768,766 compared to 761,448 week before. Radios went up to 212,946 units (92,877 private label) from 184,685 the preceding week. Factory inventories were 394,223, some 10,000 up from preceding week. Week's radios were: 120,921 home sets, 63,117 auto, 28,908 portable. 4th QUARTER UNDER GMP-FEWER SETS? NPA is preparing to allot the TV-radio industry enough steel, copper and aluminum to make about 940,000 TVs, 2,200,000 radios during fourth quarter under Controlled Materials Plan (CMP). Figures are rough estimates — NPA's — based on present mix. They compare , with 2,199,669 TVs and 4,235,597 radios produced in this year's first quarter and , 1,134,836 TVs & 3,792,338 radios in second quarter. The fourth quarter estimates are based on NPA's plan to dole out to TV-radio and other consumer durables manufac- turers steel at rate of 65% of first-half 1950 use, copper at 54%, aluminum at 48% — compared to 70%, 60% & 50% for third quarter under Order M-47A (Vol. 7:25,31). Decision to include consumer durable goods in CMP next quarter — announced this week — came as no surprise to anyone. This had been only segment of economy operating outside govt.'s all-out materials rationing plan, and its inclusion was inevitable to keep soaring military production from squeezing out civilian industry. Tighter restrictions are almost certain next year. House's approval Aug. 9 of whopping |56 billion for Armed Forces during the year ending June 30, 1952 fore- shadows accelerated military buildup. And it's to be followed by more money for foreign military aid, and possibly still more for our own Armed Forces this fall. It's good guess that $4-5 billion of this is for electronic equipment (for - 9 - 10 - partial breakdown, see Mobilization Notes) — although many electronics contracts go outside TV-radio industry, and many have lead time of a year or more. So they can't be counted on to take up much of the slack caused by curtailed TV-radio production. You can get idea of magnitude of this appropriation by comparing it with this week's Pentagon announcement that Defense Dept, obligated $55.3 billion for military procurement during first 12 months following Korea. Of this amount, $27.9 billion represents contracts for military "hard goods". By rule of thumb, something less than |3 billion, or about 10%, is for electronic equipment. But civilian industry won't be blotted out by military, except in all-out war. Govt, takes great pains to make that clear. In Aug. 7 broadcast, DPA-NPA boss Fleischmann stressed desire to maintain healthy economy by "allowing the largest volume of civilian production consistent with meeting our military needs first." To back this up — for fourth quarter, at least — DPA has instructed NPA's operating divisions to slash some "essential" or "defense-supporting" programs deeper than consumer goods. Reports on CMP's operation haven't been good during current "dry run". DPA has been widely accused of "over-allotting" — writing too many checks against its bank of strategic materials. To which Fleischmann replies fault is manufacturers' — too many have placed duplicate orders with different suppliers ; others have not cancelled excessive orders. He's ordered crackdown, pledges smoother operation during fourth quarter. But applications have been drifting in too slowly to begin fourth quarter allocations on schedule. Electronics Div. , for example, has received only about half the 1200 applications it expects. Fleischmann extended July 51 deadline, warns that anybody who doesn't file before Aug . 15 "is running a tremendous risk" of not getting enough materials next quarter. (For other CMP news, see Mobilization Notes.) There's still a rub — even if CMP works as planned next quarter. Most pro- duction experts expect big electronic bottlenecks as a result of shortages of the so-called "rare metals" — rather than the "controlled metals," steel, copper and aluminum. Fleischmann took cognizance of this in his broadcast, when he said of nickel, cobalt and chrome: "Practically 100% of the available supply of these materials must go direct- ly into the military, defense-supporting and expansion programs." OUTLOOK FOR CBS COLOR SET PRODUCTION: Who's going to make CBS color sets? And how many? Only CBS-Columbia, Tele-tone , Webster-Chicago , Meek, Muntz have shown any enthusiasm, made consistent promises thus far. Crosley and Bendix have shown sam- ples, but with noticeable lack of faith in system. Their apparent purpose is to show their dealers they won't be left out in cold if demand grows. None of biggest producers has yet gone even as far as Crosley and Bendix, but there was talk this week that one or more might — to keep dealers "protected". It's extremely questionable whether any top producer would really throw his full weight into CBS-type production, albeit FCC-approved, since industry's faith in ultimate approval of compatible system mounts daily (see p. 5). Of course, virtually every manufacturer has made CBS sets in labs, for own edification and protection. But CBS's promotion — football, baseball, etc. — is likely to produce some impact on trade, according to some manufacturers. "It's the moral effect of the Godfrey kind of propaganda that bothers us," said one — explaining he means the kind of publicity that renders low-income folk indecisive about buying their first black-and-white set, inevitably cheaper than color, and that keeps wealthier folk from buying their second or third set. * * Meanwhile . CBS-Columbia says it "will try like hell" to meet its goal of 25,000 color units by year's end. President David Cogan feels company has good argument to persuade more materials out of NPA. "We were changing models during our base period," he says, "and naturally our production was lower. But I think NPA will be reasonable." If NPA doesn't relent, Cogan points out, company can shift materials from 11 - black-and-white to color as demand warrants. Types of color sets and slave vinits planned are same as previously announced (Vol. 7:29). Same goes for costs, though Cogan says engineers are learning short-cuts, should be able to cut prices next year. First of pilot-run sets are due about Sept. 1. Tele-tone will build 10,000 to 15,000 slave units this fall, according to president S.W. Gross. "We *11 feel our way,” he says. "Materials situation will be tight as hell during fourth quarter." Complete color sets aren’t due until next year. Gross says, adding: "Our engineers are working on something that looks promising for sizes up to 20-in." Projection? "No". Drvim? "Wouldn't call it a drum." Philco reports almost no demand for its |20 black-and-white adapters. And Motorola says it plans adapters, designed for most of its models, past and present, will know production dates and costs in 30 days or so. Topics & Trends of TV Trade: Philco reports sub- stantial orders — “all we asked for” — from distributors at- tending its sessions in New York and Chicago, and its speakers urged comparisons with “last half 1949, not 1950” in calculating markets ahead. It wasn’t officially stated, but it’s manifest Philco, like other majors, is in- clined to err on side of under-production rest of this year rather than over-production — materials restrictions forcing this anyhow (see p. 9). New 1952 Philco line of TVs comprises 28 models, in- cludes tax in price, offers 90-day warranty on all models at flat $12.50. Prices are downward at low end. Popular feature with distributors was placing of casters on all consoles. Seven 17-in. table models range from plastic models at $199.95 (mahogany finish) and $229.95 (cordovan leather) through (rounding out prices) $260, $280, $300 (2 models), $330. Eleven 17-in. TV-only consoles are priced from $300 through $340, $350 (2), $370 (2), $380, $400, $420, $500, $550 — latter being Sheraton full-door de luxe models. There’s also one 17-in. combination with AM-FM-3 speed at $450. New 20-in. table models are $360 mahogany, $380 blonde; 20-in. consoles $450 & $480; with full doors, Georgian, $450 & $480. Combinations in 20-in. are $600 & $629. One with remote control is $800, same without remote $750. Radio line continues many old models, tables ranging from $19.95 to $49.95; clock radios, $37.50, $39.95, $42.50 (white or ivory); one AM-FM table, $69.95; portables at $35, $40, $50; table radio-phonos, $80 in ebony, $100 ma- hogany; radio-phono combinations at $200 for AM-only in mahogany, $250 for AM-FM mahogany, other at $270, $300, $320. Big promotion push is “tube saver” limiting current during power surges. * * * * Manufacturers’ price controls, including those on TV- j radio and other electronic equipment and parts, were post- I poned indefinitely Aug. 9 while OPS prepares new regula- j tions incorporating the more liberal provisions of new Defense Production Act (Vol. 7:31). New manufacturers’ I price ceilings, which were to have been effective Aug. 13, I may be ignored, OPS announced. “Capehart amendment” of new controls law permits manufacturers to ask for j ceilings based on their pre-Korea prices plus all reasonable I cost increases between then and July 26, 1951. In the OPS manufacturers’ orders, only increases permitted were those L in labor costs up to March 16, 1951, material costs to j Dec. 31, 1960. Described as “magazine for audio-philes,” High Fidel- ity titles new popular quarterly publication being issued by Milton B. Sleeper. Trade Miscellany: Non-profit TV service plan, mem- bers passing $10 year and then getting service at cost, pro- jected by Authorized Manufacturers Service Co., Brook- lyn, partnership of George Fried, Alfred Coleman, Morton Greenberg, proposing this scale of “at cost” fees: home service call, $2.35; shop labor, $2.85 an hour; antenna & installation, $3.90 an hour; parts at 20% discount to mem- bers . . . Pennsylvania Legislature bills to license TV-radio servicemen after examinations unanimously endorsed by 3500 members from 9 chapters of Federation of Radio Servicemen’s Assns. . . . Illinois Cabinet Co. becomes Rock- ford (111.) Cabinet Works of GE as of Sept. 1, result of merger, gen. mgr. Oscar M. Lindgren continuing on job . . . Sylvania has new subsidiary, Sylvania Electric of Puerto Rico Inc., formed to fabricate mica for radio tubes, within 60 days starts production by 100 persons in 10,000 sq. ft. plant outside San Juan to supplement supplies from Brazil and U. S. . . . IT&T, which last week bought Cool- erator Corp. (Vol. 7:31), has purchased 31% of common, 40% of preferred stock of Kellogg Switchboard & Supply Co., Chicago, for $2,240,000, from former president J. G. Kellogg; none of present president James H. Kellogg’s or other directors’ stock involved, and no changes in manage- ment contemplated . . . Western Union Services Inc., new TV servicing subsidiary of WU, handling all standard makes, expanding present New Jersey servicing territory (Essex, Passaic, Union counties) to include Bergen and Hudson counties. • * ♦ ♦ Distributor Meetings: Admiral sales convention in Chicago postponed from Aug. 10-11 to Aug. 17-18, which will enable company’s 600 distributor delegates to attend All-Star grid game being sponsored by Admiral Aug. 17 on DuMont Network . . . Crosley showing new TV, freezer & range lines in Savoy Plaza, New York, Aug. 14-16 . . . Sentinel has new TV models to show at Sheraton Hotel, Chicago, Aug. 14-15 . . . Motorola’s new TV-radio lines to be shown in Essex House, New York, Aug. 21-22 . . . Hoffman’s new sets (Vol. 7:31) promised for September delivery, with distributor meetings due in St. Louis, Aug. 12-13; San Antonio, Aug. 13-14; Salt Lake City, Aug. 14-15; Memphis, Aug. 16-17; Oklahoma City, Aug. 27-28; Tulsa, Aug. 30-31. Stop misleading public, warns New York Better Busi- ness Bureau in special bulletin condemning retail ads stressing “no money down” or “no cash required” in buy- ing TVs and radios since easing of Regulation W (Vol. 7:30). BBB says its shoppings revealed very few trade- ins met full down payments, higher prices being asked when no trade-ins were available. It also cautioned deal- ers that Regulation W, even as amended, requires record be kept of each sale showing down payment in cash and trade-in value. I 12 - Financial & Trade Notes: CBS gross income rose to $77,369,615 first 6 months of 1951 from $60,276,582 same 1950 period, but net profit after providing $4,125,000 for taxes fell to $2,221,317 ($1.29 a share) from $2,495,370 ($1.45) after $3,286,700 taxes. First quarter CBS sales were $39,323,391, profit $1,276,054 (74(^) vs. $30,809,064 & $1,304,- 050 (Vol. 7:16). The 1951 figures are exclusive of earn- ings of recently-merged Hytron and subsidiaries, effected last June 15. The earnings per share were calculated on 1,717,352 shares of $2.50 par stock outstanding prior to June 15, increased as result of merger (Vol. 7:20-24). Next quarterly report will reflect operations of new manufac- turing subsidiaries. Along with Raytheon’s annual report, showing un- usual gains in both sales and profits for its fiscal year ended last May 31 (Vol. 7:31), proxy notice to stockholders asks them to vote at Sept. 6 meeting on resolution to in- crease authorized $5 par common shares from 2,250,000 to 3,000,000 and total shares of all classes from 2,346,370 to 3,096,370. Proxy report also shov/s Charles F. Adams Jr. owning 6000 shares of common & 600 pfd., drawing $40,083 salary for fiscal year; David T. Schultz, v.p.-treas., holding 7594 common, $34,450 salary & $5000 bonus; Percy L. Spencer, v.p. & mgr. of power tube div., $22,500 salary & $5000 bonus. ^ ^ ^ ^ Among officers’ and directors’ stock transactions re- ported to SEC for June: Dee S. Lenfesty sold 400 Arvin, holds 4000; T. Earl Robinson bought 3 Arvin, holds 632; Albert L. Cuff bought 500 Blaw-Knox, holds 1000; Charles M. Thorp Jr., sold 60 Blaw-Knox, holds 1740; William J. Flynn bought 40 CBS Class B (May), holds 40; J. A. W. Iglehart bought 300 CBS Class B, holds 1300; Isaac D. Levy sold 5296 CBS Class B, holds none; J. L. Van Volken- berg bought 100 CBS Class B (May), holds 100; Octave Blake sold 206 Cornell-Dubilier, holds 36,638 common & 31 pfd.; C. Russell Feldmann sold 116,100 National Union pfd., holds none; Strong, Carlisle & Hammond Co. bought 116,100 National Union pfd., holds 116,100; Larry E. Gubb sold 43 Philco, holds 28,930; Thomas A. Kennally sold 2500 Philco, holds 22,974; John S. Timmons sold 4950 Philco, holds 13,000; Edward M. Tuft sold 100 RCA, holds none; William Gammel Jr. sold 100 Raytheon, holds 16,970; John F. Fennelly sold 200 Stewart-Warner, holds none; Walter R. Seibert bought 41 Sylvania, holds 141; E. F. McDonald Jr., sold 4800 Zenith, holds 34,131. Merchandising Notes: Lots of TV-radio set advertis- ing in all media, particularly radio, scheduled for fall in big promotion drives, with Westinghouse’s football sched- ule one of biggest promotions (Vol. 7:31) . . . CBS-Radio gets 2 big network campaigns scheduled by industry lead- ers— GE Football Roundup, Sat. 2:30-5 p.m. for 8 weeks starting Sept. 29, thru Maxon Inc.; Sylvania sponsoring Grantland Rice football forecasts on CBS-Radio starting Sept. 28, Fri. 8-8:15, and Sammy Kaye’s Sylvania Sunday Serenade, Sun. 3-3:30 p.m. starting Oct. 7, thru Roy S. Durstine Inc. . . . Capehart-Farnsworth to sponsor 15-min. news commentary with Fred Van Devanter on Mutual Net- work, starting Aug. 19, thru J. M. Mathes . . . DuMont allowed dealers 33% discount on 17-in. console listing at $535 and 19-in. at $625 & $675, giving rebates on inventory bought between May 23 & Sept. 10, then withdrew offer after enough goods had been moved . . . Chicago’s Hudson- Ross and Goldblatt Bros, ran full-page ads in Aug. 9 Tribuyie plugging Emerson’s 2-year 100% trade-in-on- color-set deal (Vol. 7:31) . . . Westinghouse assuming floor plan charges on new TVs and radios (Vol. 7:31) de- livered by Oct. 1, also guarantees prices to Nov. 15 . . . Television-Electronics Fund Inc., open-end investment trust, reports net assets of $7,153,000 as of Aug. 6, or $13.14 per share on 544,194 shares outstanding, and de- clared year’s third quarterly dividend of 15^ payable Aug. 28 to holders of record Aug. 16. July 31 quarterly report shows net assets of $6,970,933 ($12.86 a share), compared with $5,180,307 ($10.88) same time last year. Cash and govt, securities accounted for 23.1% of total assets, up from 10.2% at Jan. 31, 1951 and 4.7% at July 31, 1950. “There appears to be no reason to change our opinion,” president Chester D. Tripp reported to stockholders, “that the decline of demand for telesets has been largely sea- sonal and that a normal upswing will commence in the not too distant future. There is a large segment of the popu- lation still not enjoying TV but . . . within the range of reception. It is our belief that the improved programs which will be put on the air will be an important factor in inducing purchase by many of these families.” These were the Fund’s common stock holdings as of July 31: TV & Electronics (41.23%) — Aerovox 7000 shares, ABC 6000, American Phenolic 2000, Bendix Aviation 3000, CBS “A” 4000, Comell-Dubilier 3000, Coming Glass 1600, Erie Resistor 2000, Fansteel 3000, GE 5000, General In- strument 5000, Hazeltine 2000, International Resistance 3000, Mallory 1200, Muter 4000, Oak Mfg. 6000, Owens- Illinois 2000, RCA 15,000, Raytheon 5000, Sprague 4000, Sylvania 2000, Westinghouse 6000. Electronics Other Than TV (26.03%) — American Bosch 9000, Clark Controller 2000, Consolidated Engineer- ing 3000, Cutler-Hammer 4000, Fairchild Camera 2000, Hammond Instrument 1000, IBM 1000, Minneapolis-Honey- well 5000 common & 425 pfd.. Remington Rand 7000, Sperry 3000, Telecomputing Corp. 3000, Tung-Sol 2000, Webster-Chicago 9000. Primarily TV (16.84%) — Admiral 3500, DuMont “A” 6000, Emerson 7500, Motorola 5100, Philco 11,500, Zenith 2500. Miscellaneous (15.9%) — AT&T 1000, Disney 6500, Eastman 4500, Federal Enterprises 2000, General Controls 2800, Haloid 1800, I-T-E Circuit Breaker 1100, LaPointe Plascomold 5000, Otis Elevator 4000, Tracerlab 2000, United Specialties 2100, Conrac 9000, Television Associates 2400. * * * Hf Dividends: CBS, 40«^ payable Sept. 7 to holders of record Aug. 24; Magnavox, 37<‘ payable Sept. 15 to hold- ers Aug. 15 and 25^ on “A” pfd. payable Sept. 1 to holders Aug. 15; Standard Coil, 25!e * Based on GE market research studies. Dr. Baker forecast that 2 years after freeze-lifting, possibly next spring, there should be minimum of 141 new vhf outlets on air (making total 248) plus minimum of 36 uhf stations. And in Dr. Baker's words; "At the end of 5 years, I think we can look forward to a minimum of 343 vhf stations and 166 uhf stations or more than 500 stations in the United States. This t 3 doesn't agree with many predictions ranging as high as 1500 transmitters in 5 years and I'll admit the estimates are conservative. If materials, including construction materials, should be in free supply, then these estimates could be quite low. "You may consider these forecasts to be pessimistic. On the contrary, they are realistic , not based alone on what industry members think can be produced, as many surveys are." How soon will non-TV areas get stations — and open up new gold mines for set and parts manufacturers and merchandisers? This rule of thumb, said Dr. Baker, can give very rough idea; "If a city is a good market area; if it is on the coaxial cable, or relay network, or within one microwave link of the cable ; if it has only one applicant for permission to construct and operate the station, then, according to our market re- search experts, it has pretty good chance of getting on the air in next 2 years. If any one of these items is missing, it may be 5 years." [Editor's Note: Dr. Baker's 5-year prediction appears unduly pessimistic. All these conditions would rarely obtain, e.g., only one applicant in "good" market.] "Happier side of the picture" is Dr. Baker's forecast that approximately 55,500,000 families will be within range of at least one TV station by end of 1955. "We believe," he said, "there will be 44,500,000 wired homes in 1955 or 14% more than in 1950. We believe that by the end of 1955, nearly 80% of these homes... will be within range... And there is a possibility that 9 out of 10 of those more than 35,000,000 families will own at least one TV receiver." To parts & components distributors, this will mean gross annual business about $1 billion in 1955 — more than triple 1950's gross of $520,000,000, and over twice as much as 1951's estimated $475,000,000, Dr. Baker said. COMPATIBLE COLOR UP ANOTHER NOTCH: "Operation Lovebird. " so called because lovebird act is one of most critical tests of a color system, continues to prove smash hit with more people who make TV tick — the makers & merchandisers of TV receivers and , the broadcasters, advertisers & agencies providing the programs for those receivers. Enthusiasm for RCA's pictures — and compatibility — came from all quarters i during all-week, thrice-daily showings in Radio City's Johnny Victor and Center theatres. Even those who have no special love for RCA-NBC attested to prime impor- tance of compatibility and the high quality of RCA's images. Quality of pictures seemed about same as during July showings (Vol. 7:28), with exception that more emphasis was placed on vivid (saturated) colors, presumably in answer to criticisms that colors were too pastel (Vol. 7:28). Entertainment content of program has been enhanced, but George Burton's extraordinarily well-trained lovebirds, brought in from Coast for demonstrations, and singing & dancing turns by Nanette Fabray, are still top attractions. To show black-&-white on color tube, extremely clever sequence had a secre- tary living drab life in monochrome, then flashing into color when she took "a trip to Havana, on one of those cruises," meeting outrageously-dressed Latin dancer. Remote pickup from Merchant Marine Academy, Kings Point, L.I., some 12 miles away, featuring Marine drill team and cadet color bearers, came through well. ^ * :{! From two of nation's biggest TV merchandisers — Davega Stores' Jules Smith land Vim Stores' Max Kassover (about 40 outlets each) — came indignant comments. Smith burst out in middle of demonstration: "CBS is still out of step. Somebody ought to show Coy a thing or two." Everyone laughed. Kassover 's opinion; "This is Hthe ultimate. I think it's a shame to keep this from the public. It ' s here now. " "Compatibility is very critical, we've found," said telecaster George Storer , whose WJBK-TV, Detroit, is scheduled to carry CBS's color football schedule (Vol. 7:35). He described how flock of complaints followed an experimental color- 5 cast. "But what troubles some of us. regarding a compatible system," he said, "is •lithe problem of mass producing tri-color tubes." RCA president Frank Folsom replied; I "We think we can mass produce them. When we had Mr. Coy out to Lancaster, |a worker showed him a machine that exhausts 12 tubes an hour. Coy thought that 1 - 4 - wasn't much. Then we showed him a machine, costing $400,000, which will be able to exhaust 200-500 per hour. It's just like the first RCA '630' model TV receiver. People said only 2 outfits could make a TV set in those days. Today, there must be 150 making them. " Cuba's Goar Mestre, operating CMQ-TV, Havana, and building 4 other stations, stated flatly; "Compatibility is basic. I can't see using a system that would make people buy additional devices." * * * * Showings continue next week, close down for a week, then resume with demon- strations for public. Network and large-screen tests are planned, dates undecided. FCC is sending Wm. Boese, technical research chief, to RCA's Sept. 17 show- ing for benefit of NTSC's field-test Panel 16. On Sept. 26, RCA will have 4 Commis- sion engineers — Plummer, Allen, Boese, Chapin — up to Lancaster for inspection of tri-color tube production. Choice of standards for field tests, as recommended by Panel 13, is expected to be approved by v/hole NTSC at Sept. 18 New York meeting. Zenith's experimental colorcasts should offer one of best opportunities for field testing, since it's only vhf station (Channel 2) permitted to operate without restrictions on hours. PCC has limited RCA, Philco and Crosley to colorcasts during periods outside regular programming hours, because they're using commercial sta- tions. DuMont , however, will be able to supply signals any time, when its New York uhf station gets going. FCC's "open door" to compatible systems is probably more ajar than it has ever been. FCC Chairman Coy's good-natured exchange on color with Folsom, at Bridge- port uhf seminar (see p. 1), is an indication. Coy stood up for FCC's decision, but reiterated Commission would have preferred compatible system if it had been ready. Congressional backing of compatible system is likely to grow as time for resubmission of system to Commission nears. For example. Rep. Charles Wolverton. ranking Republican on Interstate & Foreign Commerce Committee, attended Sept. 12 showing. He said: "We are now approaching that for which we have all striven. I never did think the RCA system was inferior." * * !r * CBS-Columbia Inc, announced "mass production" of color sets began Sept. 6. President David Cogan reports $500 color-monochrome unit now coming off line at rate of 50-a-day, and "we expect to go up every week." He's still shooting for 500- a-day production, still "hoping for total of 25,000" by year's end, he says — despite competitors' doubts company can make more than 2000-5000. Sample display set is going to all distributors first. Cogan says. There- after, production will be channeled to areas with colorcasts. The $250 "slave" unit is due in about 60 days, with $400 color-monochrome set "before year's end." DuMont announced "DuMatic" switch this week, a $19.95 adapter to get black- &-white from CBS colorcasts, says it can be installed in an hour. And Raytheon is reported planning $14.95 adapter and "slave" units. Other makers of such adapters, notably Philco, say demand has been negligible. Personal Notes: Thomas H. Dawson returns to CBS- TV from Petry Co., where he has been TV director, to head up new separate CBS-TV Spot Sales, rep for WCBS- TV, WCAU-TV, KTSL, WTOP-TV, WBTV, KSL-TV, WAFM-TV; George R. Dunham Jr. continues as Eastern sales mgr., Sam Cook Digges as Chicago TV sales mgr. . . . Ben Feiner Jr., ex-MGM, returns to CBS Oct. 1 as execu- tive TV producer under v.p. Harry Ackerman, Hollywood . . . James T. Maddigan promoted to ABC-TV news-special events director, succeeded as ABC-radio news director by Donald R. Coe . . . Ernest de la Ossa, NBC personnel di- rector, named member of New York Regional Wage Sta- bilization Board . . . Frank Cooley, ex-farm program direc- tor, WHAS & WHAS-TV, Louisville, now adv.-information director, California Farm Bureau Federation, Berkeley . . . James C. Douglass has resigned as coordinator of TV-radio advertising of Colgate-Palmolive-Peet to become TV-radio v.p., El-win, Wasey & Co., succeeding C. H. Cottington, resigned . . . Nat Wolff named Young & Rubicam v.p. in charge of TV-radio production under Edward W. Meade, v.p. & TV-radio director . . . David D. Polon named TV- radio v.p., R. T. O’Connell agency . . . Charles Harrell named production supervisor, TV-radio dept., Lennen & | Mitchell . . . Sylvania Dowling, ex-Young & Rubicam, now TV copy supervisor, Sullivan, Stauffer, Colwell & Bayles. Possible successor to Comr. Frieda Hennock is Atlanta lawyer and former Congresswoman Mrs. Helen Douglas Mankin, according to Billboard’s Washington correspondent Ben Atlas. He says she’s being pushed by India Edwards, Democratic National Committee vice chairman. However, consensus is that inside track is still held by Robert Bartlej', | House Speaker Sam Rayburn’s nephew and assistant. Miss ! Hennock’s appointment to New York Federal judgeship > (Vol. 7:24 et seq) still hangs fire, no date set for hearing. , 5 First million dollar “take” in history from any non-heavyweight prizefight was assured Interna- tional Boxing Club as result of theatre TV, fight film royal- ties, and complete home TV-radio blackout of Sept. 12 Sugar Ray Robinson-Randy Turpin middleweight title match at New York’s Polo Grounds (Vol. 7:36). Theatre TV network of 14 theatres in 11 cities enjoyed its biggest success to date, at prices ranging from $1.80 to $2.60. In Chicago, fans rioted and literally tore down the doors of Balaban & Katz’ State-Lake theatre. All theatres were jammed to capacity, turned hundreds away. IBC took in $767,630 at Polo Grounds, with well over $250,000 assured from theatre-TV and film rights. It’s not likely that anguished cries of the TV set own- ers will disturb the honeymooning IBC-theatre couple. Reflecting ire of constituents. House Rules Committee met Sept. 14 to consider resolution (H. Res. 409) by Rep. L. Gary Clemente (D-N. Y.) calling for investigation of sports, specifically including boxing and “whether or not the people of the U. S. are being denied the viewing of boxing matches on TV by unreasonable restraint.” Com- mittee members were reported unanimous in their desire for such a probe; official vote is scheduled Tuesday. Senate also received resolution (S. Res. 208) from Sen. Robert C. Hendrickson (D-N. J.) calling on Justice Dept., FCC and FTC to prepare legislation to outlaw “limited telecasting of events of national interest.” In Cleveland, the TV Owners and Viewers League, claiming membership of 300, announced “boycott” of local theatre which had shown the bout on its screen. New taxes may become problem for theatres showing TV. State boxing commissions are eyeing the televised bouts longingly, and New Jersey’s commission levied 5% tax on Walter Reade’s St. James Theatre in Asbury Park on grounds telecast is similar to regular live fight. Theatre has refused to pay. And Philadelphia city councilman James 0. Clark is asking city to levy $1500 annual tax on theatres showing exclusive telecasts. Nation’s theatre owners were urged to equip their theatres with TV equipment and to take leadership in the telecasting field by chairman Mitchell Wolfson, of Theatre Owners of America, whose Wometco circuit owns WTVJ, Miami. He said exclusive theatre telecasts won’t be detri- mental to home TV, and recommended that all theatre owners “who are qualified by public service and are finan- cially able should apply to FCC for TV station licenses.” Network Accounts: Westinghouse- sponsored NCAA football schedule on NBC-TV (Vol. 7:36), starting Sept. 29, gets added touches with General Tire & Rubber Co. sponsoring Ted Husing on film in 15-min. pre-game show discussing outstanding games of day with top coaches, and National Carbon Co. (Prestone anti-freeze) presenting Jimmy Powers and other sportscasters in live post-game interviews of sports figures plus late scores. Agencies are D’Arcy Adv. & William Esty Co., respectively . . . General Foods Corp., Post Cereals Div., has signed Roy Rogers to 3-year TV-radio contract, and first of half-hour films will be shown Dec. 30 on NBC-TV, Sun. 6-6:30, taking over time being vacated by Hopalong Cassidy . . . General Cigar Co. (White Owl cigars) starts Spoi'ts Spot Oct. 3 on CBS- TV, Wed. for 15 min. following fights, thru Young & Rubicam . . . Longines-Wittnauer Watch Co., starting Sept. 24, presents Chronoscope 3 times weekly on CBS-TV, Mon.- Wed.-Fri. 11-11:15 p.m., thru Victor A. Bennett Co., N. Y. . . . B. T. Babbitt Inc. (Bab-0 cleanser) completes list of sponsors of Kate Smith Evening Hour starting Sept. 19 on NBC-TV, Wed. 8-9; others are Reynolds Metals Co., Congoleum-Nairn and Norge Div., Borg-Warner Corp. . . . Lever Bros. (Surf, Spry, Pepsodent) start daily sponsor- ship Oct. 1 of Hawkins Falls — Pop. 6200 on NBC-TV, Mon.-Fri. 5-5:15; heretofore has sponsored show 4 days a week . . . Derby Foods Inc. (Peter Pan peanut butter) starts Sky King Theatre Sept. 16 in place of The Magic Slate on NBC-TV, alt. Sun. 5:30-6, thru Needham, Louis & Brorby Inc. . . . Jene Sales Corp. (Jene home perma- nent) starts weekly sponsorship Sept. 27 of Thu. 10-10:30 pei-iod on ABC-TV, program to be announced, thru Rogers & Associates, Chicago . . . Old Gold’s sponsorship of Down You Go starts Oct. 5 on DuMont, Fri. 9-9:30 . . . Premiere of live Schlitz Playhouse of Stars on CBS-TV, Fri. 9-10, is Oct. 5 with Helen Hayes and Franchot Tone starring . . . Jack Benny, though he’s CBS contract star, will be star of Gratitude, play presented on Lucky Strike’s Robert Mont- gomery Presents on NBC-TV, November date undecided as yet . . . Richfield Oil sponsored pickups of Japanese peace treaty conference last week on all San Francisco & Los Angeles stations and the one in San Diego, as it did Gen. MacArthur’.s San Francisco arrival, thru Hixson & Jorgen- sen Inc., Los Angeles . . . Max Gordon, big legitimate pro- ducer, branches into TV as producer of Frank Sinatra Show on CBS-TV starting Oct. 9, Tue. 8-9 (no sponsor announced), opposite Milton Berle’s Texaco Star Theatre. Station Accounts: Spot testing tv for possible ex- panded use: Nestle Co. (Nescafe), thru Sherman & Mar- quette, Chicago; Oil-Eye Corp., for new oil-level indicator for cars, on KSTP-TV & WTCN-TV, thru Firestone-Good- man Adv., Minneapolis; Ford Gum & Machine Co., for candy-coated ball gum sold thru dispensers, on WBEN-TV, thru Baldwin, Bowers & Strachan, Buifalo; Vitamin Corp. of America (Rybutol, Vitamin B complex pill), in Los Angeles & Chicago, thru Harry B. Cohen Adv., N. Y. . . . Major time sales reported by KTTV, Los Angeles: Thrifty Drug Stores (chain), 10% hours weekly (movies, bowling, variety, etc.), thru Milton Weinberg Adv.; Sears Roebuck, Dude Martin Show, Western variety. Wed. 8:30-9, thru Mayers Co.; Land Title Insurance Co., Melody Time, musi- cal, Tue. 8-8:30, thru Wm. W. Harvey Inc. . . . Schick of Canada (electric razor), using Detroit & Buffalo stations to reach contiguous Canadian audience, thru Harold F. Stanfield Ltd., Toronto . . . Tea Garden Products Co. (syrups) and Sperry Div. of General Mills (Sperry pan- cake mix) planning joint campaign via Calif ornia-Arizona stations, thru BBDO & Knox Reeves Adv., San Francisco . . . Fidelity-Philadelphia Trust Co. again sponsoring Great Music on WPTZ, with Guy Marriner, lecturer, and guest artists. Sun. 10:30 . . . Among other advertisers reported using or preparing to use TV: Silver Skillet Brands (Sil- ver Skillet corned beef hash), thru Frederick Asher Inc., Chicago; Donnelly Garment Co. (Nelly Don dresses), thru J. R. Flanagan Adv. Agcy., N. Y.; Simmons Slicing Knife Co- (cutlery products), thru Arthur R. MacDonald Inc., Chicago; California Central Airlines, thru Calkins & Holden, Carlock, McClinton & Smith, Los Angeles; Elec- tric Deodorizer Corp. (Odor-Master electric deodorizer), thru Betteridge & Co., Detroit; Jacqueline Cochran Inc. (cosmetics), thru James P. Sawyer Inc., N. Y.; Sparks Products Co. (nrechanical pencils), thru Marfree Adv. Corp., N. Y.; Ronzoni Macaroni Co. Inc. (spaghetti, maca- roni), thru Emil Mogul Co., N. Y. (WJZ-TV); Seabrook Farms Co. (frozen foods), thru Hilton & Riggio, N. Y. (WJZ-TV); Eastern Wine Corp. (Chateau Martin wine), thru H. C. Morris & Co., N. Y. (WPIX). What does public like most on TV? These are 10 top program types for August, rated by The Pulse Inc. for its multi-market Tele-Pulse: drama & mysteries 14.5, fea- ture films 14.1, talent 14, boxing 13.7, comedy-variety 11.5, musical variety 10.6, comedy situation 10.4, westerns 9.7, news 9.7, quiz-audience participation 9.6. 6 TGlGCasting NoIGS: One sponsor buying 17% hours weekly on one station — that’s report from KTTV, Los Angeles, where Thrifty Drug Stores chain has just added 10% hours of programs, its budget now running about $16,000 a week (see also Station Accounts) . . . Apace with NBC-TV network plans to expand TV day to past midnight, also to start at 7 a.m. weekdays, its owned-&-managed stations are already widening schedules: WNBQ, Chicago, reports sale of 12-1:15 a.m., Mon.-thru-Fri., to Alan Indus- tries, furniture & radio-appliance group, for feature movies — making station’s total TV week 120 hours . . . Pitts- burgh’s WDTV now signing on at ^ a.m. daily . . . Actual church services in New York Catholic, Jewish & Protestant churches will be telecast Sundays, 10-11 p.m., on rotation basis, in series arranged by WPIX . . . One-hour operas start on NBC-TV Oct. 4, to be carried once monthly 11-12 midnight EST; other dates are Nov. 1, Dec. 6, Jan. 3, Feb. 7, March 6, April 3, May 1. NBC-TV also preparing 10- min. opera segments for Kate Smith shows . . . Shubert show properties, including many dramas, musicals, short sketches, reported up for sale for TV uses . . . Eastman Kodak estimates TV this year will use 300-350,000,000 feet of film, mostly black-&-white IGmm; it says 30% of all TV This encomium from one of the keenest and ablest observers of show business. Variety’s editor Abel Green, merits the attention of everyone concerned with TV. He puts into better words than most editorialists how “almost awesome in its potential” was the TV coverage of the Japanese peace treaty conference (Vol. 7:36). He titles his Sept. 12 editorial “The Eyes of the World.” Per- tinent portions: “TV’s historical closeup on the Japanese Peace Treaty proceedings from San Francisco this past week make the Kefauver, MacArthur and kindred ‘shows’ look like road companies. Here was a big-power, parliamentary proce- dure that was the real thing. It was impressive in its unfolding, and almost awesome in its potentials. “Video’s omnipotent spotlight on public officials or the gimlet eye on suspected criminals in recent months — already remarkable as milestones in the technological progress of the new medium — were quickly capped by the first transcontinental hookup. ... It put power politics into sharp focus. It made Americans proud of our states- manship. It spotlighted the hope that a world family of nations may yet be made to work. Just as it pinpointed a defeated aggressor swallowing its medicine, hoping to re- gain its economic position with dignity. And, above all, the iconoscope exposed the brashness and chicanery of the Soviet bloc for what it was — a dishonest, obstnictive but shrewd enemy who knows that we know his game, and also knows that we know that we must go along playing that game until we are better equipped to play the only other game a militant power understands — a superior force of arms. “All that General Sarnoff predicted about ‘entertain- ment being but one segment of television’ was never so fruitfully and dramatically depicted as via the proceed- ings from the San Francisco Memorial Hall. . . . “Showfolk, hyper-attuned to the dramatic, are the first to be heard exclaiming that they are ‘still amazed by the magic’ of modern science development. TV’s showcase of life, in all its manifestations, must remain a never- ending marvel. It may be added that TV’s progress from the very beginning has been made more palatable under the aegis and flavoring of a show-wise treatment and presentation. . . .” ■ Next NBC affiliates convention set for Nov. 26 at Boca Raton (Fla.) Hotel & Club. production is already on film, with proportion steadily in- creasing . . . NBC’s 25th anniversary is celebrated Sept. 20 simultaneously with New York Herald Tribune’s 75th, with all-star cast on NBC-TV between halves of newspaper’s an- nual Fresh Air Fund football game — New York Giants vs. Los Angeles Rams from Polo Grounds. But game itself is to be carried only on theatre TV . . . Ad- packed spe- cial TV section of Johnstown Tribune Sept. 10 celebrates second anniversary of its WJAC-TV, notes growth of re- ceivers in area fi’om 22,000 as of July 1, 1950 to 103,000 as of Aug. 1, 1951 . . . Ultra-modern TV-radio center for Kansas City Star’s WDAF & WDAF-TV will be com- pleted by early spring or summer, floor space in present radio building being trebled to provide for expansion, in- cluding 40x60-ft. TV studio . . . San Antonio’s KEYL, whose $1,050,000 sale to George Storer interests pends FCC approval (Vol. 7:30), joins CBS-TV Dec. 11 as exclusive affiliate . . . WJAC-TV, Johnstown, Pa., shifts representa- tion to Katz Sept. 26, making it that firm’s 17th; former rep was Headley-Reed . . . WCAU-TV, Philadelphia (Rate Card No. 7), raises base hour rate from $1200 to $1500, one-min. from $220 to $300; effective Sept. 16 . . . NBC-TV has leased Colonial Theatre, 1000-seat movie house at Broadway & 62nd St. Theatre-tv proponents are expected to ask FCC not to set technical standards for theatre telecasting — just to allocate frequencies. This appeared probable after meeting in New York Sept. 10 at which movie ex- hibitors and producers thrashed out strategy for hearing scheduled to start Nov. 26. They feel that standards — lines, fields, color systems, etc. — could best be settled among themselves, since no vast number of sets is in- volved as in home TV. All are looking toward color as a natural for any theatre-TV system, but they’re anxious not to bring cur- rent color dispute into FCC hearing. Film and theatre folk have their pro-CBS and pro-RCA factions — 20th Cen- tury is already embarked on project involving CBS color and Swiss Eidophor projection system (Vol. 7:29). Others favor RCA system, feel that one of FCC’s principal objec- tions to it — complexity and high cost of equipment — isn’t valid insofar as theatre TV is concerned, whether or not such objections are still valid for home sets. Movie exhibitors and producers agreed to push for band of frequencies 360-mc wide to accommodate 6 “cir- cuits,” each composed of two 30-mc channels which would carry 10-mc video signal. Engineering committee, ap- pointed to make further study and prepare technical testi- mony for presentation to FCC: Frank McIntosh & Andrew Ingles, representing Motion Picture Assn.; C. M. Jansky & Stuart Bailey, Theatre Owners of America; Earl Sponable, 20th Century-Fox; Paul Raibourn, Paramount; Frank Cahill Jr., Warner Bros.; David W. Atchely Jr., United Paramount Theatres. Petition by 20th Century-Fox to broaden hearings to include possibility of theatre-TV operations on already- assigned industrial frequencies (Vol. 7:36) wasn’t enthu- siastically received hy others at New York conference, but some expressed private opinions that idea will be good one to fall back on in event FCC refuses to allocate chan- nels for exclusive use of theatres. Benton bill hearings (Vol. 7:36) remain suspended, no date set for resumption. There’s possibility Sen. Benton’s proposals to establish 11-man TV-radio program advisory board and to foster subscription TV may not get further hearing this season, since Senate Interstate & Foreign Commerce Committee starts crime-communications hearing Sept. 19-20 and Senate is straining for Oct. 1 recess. w WJTH AM-^FM REPORTS 19 CONNECTICUT AVE. N.W. !/ WASHINGTON 6, D. C. • TELEPHONE MICHIGAN 2020 i SHORTAGES ARE REAL, HERE FOR LONG RUN: it's a moot question when there will be real shortage of TV-radio receivers — but there's no doubt about shortages of materials : that go into them. And into other appliances. The shortages are going to hit hard, and soon — and grow worse through 1952. With TV trade log.iam broken, set manufacturers thinking in terms of higher output are going to bump against the metals ceiling. For it will be availability of metals ' — copper wire, steel, aluminum — rather than any shortages of components, that will limit most set makers' production in fourth quarter. But components will be big stumbling-block in first quarter 1952 — with tubes , transformers and coils due to be hardest-to-get items. Component production has been pretty good in third quarter; most set makers stocked up on them. But — allotments of copper, steel and aluminum to parts makers were cut to the quick for fourth quarter — and this should show up in form of parts shortages early in 1952. Sharp drop in civilian tube production is inevitable. There's no pat solu- tion to the nickel crisis (Vol. 7:36), and receiving tube industry will be living from hand to mouth — depending on NPA spot assistance even for some military orders — for many, many months to come. ^ ^ ^ ^ Shortage of hook-up wire will plague manufacturers during fourth quarter, may even be limiting factor in set production. NPA gave set makers CMP tickets for fourth-quarter copper at 54% of rate they used it in first-half 1950. This would be enough to make 850,000 sets or more — they could get the copper. Trouble is, nobody expects the copper to be available. Strike took huge nick out of U.S. output, imports have fallen off, scrap copper industry is virtually shut down. With copper production considerably lower than govt, planners antici- pated when they worked out the allotments, there's serious doubt whether set makers will be able to get anywhere near the full 54%. Threatened new cutbacks in steel (chassis, brackets, etc.) before end of fourth quarter also have set makers worried. TV-radio manufacturers have been allotted steel at 60% of their first-half 1950 rate for fourth quarter (consumer ' durables as a whole got average of 58%). Any new cuts would be on top of this. Aluminum is rationed to set makers at 48% of first-half 1950 rate. Most I will have to use precious steel for items formerly made of aluminum. Inventories of 1 materials left over from third quarter could mitigate situation to some extent — I for all manufacturers obviously haven't been using all the materials earmarked for : them this quarter (see p. 9). , That's the picture facing set manufacturers last 3 months of this year. How i many sets can they make? NPA is sticking to its estimate of 940,000 TVs (Vol. 7:32), but we've heard some educated guesses as low as 700,000 from govt, people. I "Ridiculous" is comment of one NPA official on Drew Pearson's Sept. 9 broad- , cast prediction that strategic materials may soon be so tight that "all manufacture i of TV sets may have to be stopped." Others at NPA pointed to the repeated statements by mobilization boss Charles E. Wilson and DPA-NPA chief Manly Fleischmann that the Govt, is determined to maintain healthy production of civilian goods. Conservation measures, developed by industry at accelerated pace over last year, will become necessities in months ahead. Many of them are now being incorpo- rated into current production. New Zenith sets use Rauland electrostatic-focus CR I tube, said to save 2 lb. of copper per set as well as cobalt, nickel and aluminum. DuMont's self-focusing picture tube (Vol. 7:20-21,33-34) is now being shipped to set manufacturers; it eliminates need for focus magnet, coil and focus control. ■ "Standardization & simplification" are in discussion stage at policy-making 7 - 8 - DPA. On distant horizon is possibility of regulations standardizing TV-radio com- ponents and limiting variety of models each set maker may produce. In advance of any such action, NPA officials assure us, set and component makers would be given opportunity to draw up their own set of rules. It will be nip and tuck whether transformers or receiving tubes are scarcest civilian electronic items next year. Transformer production will suffer seriously because of sharp cutbacks in copper allotments. And civilian tube production seems destined to do tailspin because of (1) serious shortage of nickel and (2) steadily increasing military demand for tubes. There's no magic key to nickel snarl — that's becoming increasingly appar- ent. At week's end there were signs that most critical sectors of tube industry would get some spot relief. But by the very nature of NPA's nickel allotment setup and complexity of tube industry itself, there can be no special overall ration of nickel to keep entire industry operating at hefty rate. Severity of present situation was underscored in letter to NPA from RTMA president Glen McDaniel following special tube division meeting Sept. 11. Tube makers will have to start cutting production by mid-October unless there's special relief, McDaniel said. He made these points: Receiving tube industry will be operating at "as low as 50% of its present rate of production" by Dec. 1, necessitating layoffs of as many as 15,000-18,000 employes, if there's no "immediate relief from present nickel allocation policies." "Delays in meeting delivery schedules for military tubes will inevitably re- sult... The lead time for obtaining new nickel is 2-5 months... A fair estimate of delays in military tube deliveries is 4-5 months." Nickel conservation is paying off, McDaniel said, in production of more tubes from less nickel. Industry turned out "229,000,000 tubes in first 7 months of 1951 with only two-thirds of the nickel used to produce 191,000,000 tubes in the corresponding period of 1950." When Senate raised its sights on military production this week it was, in effect, chalking up more cutbacks for civilian industry. It added $3 billion to arms bill after being told of "fantastic new weapons" including new electronically-guided pilotless bomber. Every such increase in appropriations for military procurement inevitably results in less material remaining for TV-radio and other consumer goods. Mobilization Notes: Applications for CMP allotments of steel, copper and aluminum for first quarter 1952 must be filed with NPA by Oct. 1, but spokesmen for NPA’s Electronics Div. urged manufacturers not to wait for dead- line to submit them. Applicants who file after Oct. 1 dead- line are liable to be short-changed on their material ra- tions, since the division expects to base its allocations on the applications on hand shortly after the deadline date. Applications for fourth quarter allocations — as well as some for third quarter — are continuing to pour into Elec- tronics Div., despite fact that deadlines passed long ago and materials have already been allotted. All manufacturers of Class B (standard civilian-type) items, including TV-radios & appliances, must file form CMP-4B, except those whose requirements are so small they never have been required to file. An NPA official estimated that little more than half the nation’s TV-radio manufacturers filed applications for fourth quarter allot- ments. He could give no explanation for large number of abstentions other than possibility that non-filing firms may have sufficient materials to take care of fourth quarter production. ♦ * * » TV and radio broadcasters will get priorities to buy wire and cable under terms of new ruling now being drafted and slated for official NPA approval. Ruling probably will be in form of amendment to CMP Regula- tion 5, which governs maintenance, repair and operating (MRO) supplies. Much of the wire and cable required by broadcasters doesn’t fall within definition of MRO, but is vital to operation of stations. Excellent roundup on “Film in the Future, as TV’s Horizons Expand,” by Broadcasting Magazine's Los An- geles correspondent Dave Glickman, is published in Sept. 10 edition — starting with premise: “Cross country micro- wave relay notwithstanding, film is expected to represent moi’e than 65% of TV’s future program total, with Holly- wood as the major supply line.” It states 75 independent TV production units in Hollywood are filming TV pro- grams, reports on some (with sponsors), tells of plans of bigger movie producers and the TV networks to supply film programs. It quotes tycoon Louis B. Mayer, ex-MGM, as taking attitude that TV and movies must work together and saying: “We’ll furnish the entertainment and talent, and TV will distribute it.” Cuban advertisers have greeted TV so enthusiastically, reports Circuito CMQ’s Goar Mestre, that his CMQ-TV, Havana, is up to 50% of CMQ’s billings, after only 8 months of operation. He expects figure to reach 80% by year’s end, TV billings catching up with radio by mid- 1952. Mestre says that 4 other stations under construc- tion by his company (at Matanzas, Santa Clara, Camaguey, Santiago) should be on air by year’s end, covering 807c of island’s population. Plans include microwave relays feed- ing programs from Havana. I TRADE FACTS & FIGURES LOOK RETTER: Business has picked up so nicely that you even , hear talk again of TV shortages — some brand-named producers forecasting tightened supplies of their product by December. There’s little doubt now that critical materials are getting scarcer, could i spell eventual set shortages. But at moment supply is plentiful. And bargains are i so great that customers are buying up cut-priced stock at very satisfactory rate I now, while wholesalers and retailers are replenishing supplies. Factory inventories took another nice dip week ending Sept. 7, RTMA report- i ing drop of some 55,000 to bring total down to 622,456, lowest since last June 8. i Thus, downtrend noted since first week in August continues. Inventory figure reached : peak of 768,766 as of Aug. 3 (Vol. 7:32). TV output Sept. 7 week was 52,874 sets (1868 private label), as against the 55,273 week preceding (Vol. 7:36) — but it should be noted this was Labor Day week, with its one day off and usual absenteeism. Radio output dropped to 179,872 units (86,878 private label) from preceding I week's 226,013, while factory inventory rose to 414,130 as of Sept. 7 from 383,604. ' The radios were; 105,631 home sets, 13,582 portables, 60,659 auto. * * * * It's good guess that accelerating sales during the 7 weeks since July's end I have considerably reduced dealer stocks from the 900,000-1, 150,000 counted as of i Aug. 1 by Dun & Bradstreet (Vol. 7:35), and the 640,393 distributor inventory RTMA ‘ reports as of the end of July (vs. 633,077 at end of June). . Buoyant feelings are manifest throughout the trade, nearly everyone report- i ing public buying again. Only fear now seems to be that public may have lost confi- i dence in prices — especially now that big brands are officially cut-priced. More comfortable balance between supply and demand seems well on way, result of (1) resurgence of buying, (2) restocking by wholesalers and retailers, though on more cautious scale than before, (3) controls-induced slowdown of production by the manufacturers, insuring against adding to over-supply (see p. 7). * 4: !{: While brand-name manufacturers claim they're producing as many sets as ma- terials will allow, it's evident from production figures that somebody isn't. Third quarter NPA regulations limit set makers to 70% of steel, 60% of copper, 50% of aluminum they used in "average quarter" of first-half 1950. Taking conservation into consideration, govt, production planners have felt industry could produce TVs in this third quarter at about 70% of first-half 1950 's rate. This would be total of 1,089,900 sets this quarter, or close to 85,000 sets a week. Thus, this quarter's first 10 weeks' production of 427,069 TVs is just about one-half the 846,000 sets that could have been produced for this period, in NPA officials' view of materials situation. These figures are based on production of TVs and radios according to same mix as first-half 1950. Actually, many manufacturers cut down on TV during the : trade slump, stepped up radio by using metals originally earmarked for TV. * * >l5 :}! Jump from famine to feast again in matter of few weeks illustrates quick ups and downs of this industry. There's no gorging on the feast this year, though, : and the profits aren't same. Question is, will feast continue after inventories go? Answer seems to be positive No. Quite aside from tightening supplies of raw . materials and components, in which grey market has already reared its head, labor ■ and materials costs aren't going down — quite the contrary. End of cut prices very likely will be followed by price rises. Said one astute middle-sized manufacturer: "The problem is to make money at the present prices. It is my opinion that - 9 - 1. 10 - most manufacturers, once they are in an inventory position to justify it, will raise their prices so they can make money, and that by Oct. 15 we will have a higher price level in our industry on standard brands." RISE & FALL OF FACTORY PRICES & SALES: Average prices of TVs were trending downward even before RCA and other big makers broke down lists last month (Vol. 7:33 et seq) in out-and-out effort to unload inventories. Best index is factory average. Most authoritative source shows 1949 average factory price per set was $189.55, going down to $181.70 for 1950. Then, in January, while market still looked good, factory average jumped to $191.21, in February to $205.70. Then downtrend began: March $197.55, April $171.85, May $157.07, June $156.39. No figures for July or August are available yet. These averages are illusory, in one respect, since they cover all models and it's well known that buyers have turned more and more to lower-priced tables, which would tend to bring average down. July-August cuts should reduce averages more. It's also Interesting to note changes in factory inventories during first 6 months of 1951. Year began, RTMA shows, with about 150,000 sets on hand at fac- tories. In January, RTMA production figure was 645,716, whereas factory sales, according to our report, were 633,708 (valued at $126,908,218 at factory). In February, output was 679,319, factory sales 612,799 ($126,053,787) ; March output 874,634, factory sales 718,986 ($142,035,675); April output 469,157, factory sales 285,498 ($49,061,450) ; May output 339,132, factory sales 241,790 ($39,987,- 824); June output 326,542, factory sales 129,287 ($20,220,076). Thus RTMA's reported 3,334,505 sets produced during first half of 1951 were offset by 2,622,068 sets sold at factories, a differential of 712,437. RTMA's in- ventory count at end of June was 723,309. Topics & Trends of TV Trade: Television Shares Management Corp. once again “guesstimates” top TV pro- ducers and their probable output in article written by its researchers Edgar N. Greenebaum Jr. and John W. Edger- ton for Sept. 17 special supplement to Retailing Daily. They pick first 10 companies to produce 3,780,000 sets, rest of industry 1,520,000 — for industry total 5,300,000 — giving individual figures that are bound once more to arouse the ire of some industry leaders. This time, though, they don’t venture dollar volume, as they did for 1949 & 1950 (Vol. 5:45 & Vol. 6:8), nor do they attempt listing as many as 20 leaders, as formerly. Their “guesstimates”: Estimated Units 1951 1950 RCA - - 700,000 950,000 Admiral — - 625,000 875,000 Philco — - 625,000 875,000 Emerson - 400,000 550,000 General Electric - - 400,000 425,000 Motorola 400,000 660,000 Zenith . 300,000 450,000 DuMont — 130,000 240,000 Crosley . 100,000 140,000 Hallicrafters — 100,000 172,000 3,780,000 5,337,000 Balance of Industry 1,520,000 2,163,000 TOTAL INDUSTRY . 5,300,000 7,500,000 Note: The 1950 figures are considerably x ■evised since they were “guesstimated” in advance in Februai •y 1950 (Vol 6:8), when rankings were forecast in this order; : Admix'al, RCA, Philco, Motorola, Zenith, Emerson, GE, DuMont, Tele-tone, Hallicrafters. :t> Western Winter Market set for Feb. 4-8 in San Fran- cisco’s Western Merchandise Mart. Zenith’s 19 new TV models, shown distributors at Chi- cago convention Sept. 14-15, start with six 17-in. tables at (figures rounded) $230, $240, $250, $260, $270, $280. Six 17-in. consoles are $300, $310, $330, $350, $370, $380. Two 17-in. console combinations are $550 & $650. Sole 20-in. table is $300, with 20-in. consoles at $370, $400, $430, $460. Zenith accents radios, with 3 AC-DC models at $30, $32 & $40, each available in 5 colors. AC clock radios in 6 colors are $40 & $42. Pox’tables are same as before — $40, $60, $61, $124.25. AM-FM tables are $55, $65, $85. Table combination is $100, and AM-FM console combinations are $260, $300, $330, $350. Raytheon’s Belmont is out with 4 new table TVs — 16-in. at $200, 17-in. at $260, 20-in. at $280 & $290 — along with uhf tuner installed at factory for $30, in field $40, and a color adapter costing $15 not installed. At same time, Belmont cut prices of eleven 17 & 20-in. sets in pres- ent line by $50 to $120, models now ranging from table at $230 to combination at $750. Prices include tax but not warranty, and slogan of new promotion campaign is “It’s futurized.” Without cutting list prices, DuMont this week reduced by 10-15% px’ices of its TV sets to distributors, extending to entix-e line pxdce cuts announced for 3 models last month. CuxTently purchased goods are guaranteed to Nov. 3 at present distributor price levels. Tele King’s new line comprises 14 models, all 17 & 20-in., featuring “Tele-tuner” for better fringe reception. Px-ices including excise tax range from $180 for 17-in. leatherette table to $420 for 20-in. limed oak console. ♦ * ♦ sjt Elected 1951-52 officers of National Electronic Distri- butor's Assn, at close of Cleveland convention Sept. 13: Aaron Lippman, Newax-k, chairman; George Wedemeyer, Ann Arbor, Mich., px'esident; W. D. Jenkins, Richmond, first v.p.; Byx'on C. Deadman, Green Bay, Wis., 2nd v.p.; Harry Stark, Minneapolis, secy.; H. E. Ruble, Dayton, treas. 11 RCA will cut off cooperative advertising funds from dealers whose ads mislead public about credit terms, says letter to distributors from ad manager Jack M. Williams. They’re advised continued false retail ads involving Regu- lation W “may lead to very drastic regulations,” possibly resulting in elimination of trade-in provisions. “At the very least,” letter states, “stricter regulations might place a burden on the retailer of keeping meticulous records of every trade-in transaction, which would be available on demand for govt, scrutiny.” Following quickly on heels of Federal Reserve Board’s interpretation of trade-in regulations (Vol. 7:36), Wil- liams’ letter hit at practice of advertising “no down pay- ment,” “no deposit,” “no money down.” It follows com- munication to all TV-radio & appliance manufacturers from NARDA president Mort Farr, urging them to moni- tor retailer ads and cut off co-op funds from dealers whose claims are misleading. “If we don’t get together and clean this situation up, the job will be done for us,” said Farr, “and many clean, legitimate retailers will be made to suf- fer for the abuses of which a relatively few are guilty.” 4c 4! ifc « Trade Miscellany:-. Sylvania signs with lUE (CIO) for one year covering 4500 workers in 6 plants, contract retroactive to July 30 and providing wage boosts of 9 to 16 cents hourly plus cost-of-living adjustments . . . Cape- hart-Farnsworth TV division laid off 400 at Ft. Wayne factory Sept. 12 to “balance out inventories and accumu- late materials” . . . Magnavox now building new 35,000 sq. ft. addition to plant at Ft. Wayne, costing $400,000 and giving total factory space of 315,000 sq. ft., warehouse 67,000 sq. ft. . . . Trav-Ler has purchased all capital stock of Telegraph Apparatus Co., Chicago, maker of telephone- telegraph and other electronic equipment and holder of about $5,000,000 in govt, contracts. Finest thing TV-radio industry does, at highest public relations level, wins well-merited kudos when American Trade Association Executives, at annual meeting in Chi- cago Sept. 17, presents NARTB & RTMA its Award of Merit for annual Voice of Democracy contest for high school students. Contest is underwritten jointly by the 2 associations as a non-commercial public service, has won praise of public officials and educators everywhere for “stimulating appreciation of the youth of America for the meaning of democracy and free speech.” It’s third they’ve won, others being that of American Public Rela- tions Assn, in 1947 and Freedom Foundation in 1949. Award was accepted for RTMA by James D. Secrest, secy- gen. mgr., and for NARTB by Robert Richards, public rela- tions chief, who conduct the contest. Good Use of Good Idea We’re gratified — and we know KSD-TV and the St. Louis Post-Dispatch must be, too — that so many stations and newspapers have seen fit to publish lo- calized prototypes of the full-page ad, which we re- produced from Aug. 5 edition of that newspaper with our Vol. 7:33, as a service to subscribers. We pointed it out as a fine example of a TV station’s co- operation with local dealers and distributors toward helping them move inventory, and at same time good self-promotion for the station. If you missed this reprint, we have extra copies we’ll be glad to furnish on request. It’s still a good idea for others to emu- late, particularly in special TV sections of news- papers now being prepared for publication. Trade Personals: Dr. w. r. g. Baker, ge v.p. in charge of electronics div., named recipient of IRE Medal of Honor for his “early technical contributions to the radio transmitter art [and] his long sustained and effec- tive leadership of Institute and industry engineering groups” . . . Ernest A. Marx, mgr., DuMont receiver sales, leaves Oct. 1 for month’s tour of South American capitals, during which he will consult prospective distributors . . . Wm. P. Maginnis, ex-RCA Victor, named asst. v.p. in charge of manufacturing. Federal Telephone & Radio Corp. . . . John L. Ward, general mgr., electrical products div.. Corning Glass, promoted to asst, controller, succeeded by John L. Hanigan, div. manufacturing mgr., who in turn is succeeded by Norman J. Vang . . . Wm. M, Nave, supt. of metal tube production at Owensboro, Ky., plant, named works mgr. of GE’s new 150,000-sq. ft. tube plant in Anniston, Ala., due to open next March .... Col. Myer Fried, USA retired, specialist in military & aviation elec- tronics, engaged by RCA Service Co. as special advisor to P. B. Reed, v.p. in charge of govt, service div. . . . Ricardo Muniz has resigned as DuMont receiver manufacturing mgr. . . . Coleman London appointed mgr. of Westinghouse electronics service, supervising domestic and foreign field service personnel handling military and commei'cial equip- ment . . . Paul A. Hilton promoted to asst, mgr.. New York branch, Crosley Distributing Corp . . . James Greer ap- pointed sales training mgr.. Motorola . . . John S. Lanahan named asst. Eastern states regional sales mgr., DuMont receiver div., will open office in Washington . . . Robert P. Thompson Jr., ex-Kierulff & Co., Motorola distributors, joins Packard-Bell as adv. mgr., succeeding George Oliver, now with Leo J. Meyberg Co. (RCA). . . . Wm. A. Cox, ex- president, C. M. B. Mfg Co. (TV tables), named v.p.. Sentinel Television Sales Corp., Chicago . . . Henry J. Arbeiter, chief engineer, appointed v.p., Jerrold Electronics, Daniel J. McCarthy asst, secy-treas. . . . Fred D. Wilson, DuKane Corp. (formerly Operadio), appointed chairman of RTMA school equipment committee . . . Max W. Burrell, ex- sales mgr., named mgr. of new procurement div., Collins Radio, which consolidates former purchasing, expediting & procurement depts. 4t * * 4t Lowest sales report by Canadian RTMA thus far this year were July’s, with only 323 TVs sold for $167,746, down 170 from June’s 493 (Vol. 7:31). Inventory at month’s end totaled 14,715. Table models under $400 list totaled 10, over $400 totaled 139. Consoles under $500 totaled 27, over $500 totaled 138. TV-phonos numbered 9. Toronto- Hamilton area took 52% of July sales, Niagara Peninsula 20%, Windsor (Detroit) 18%. First 7 months of 1951 cumulative unit sales were 20,393, valued at $11,174,964. Cumulative TV sales to July 31 were 58,216 valued at $27,451,547 — 43% in Windsor area, 35% in Toronto-Hamil- ton, 17% in Niagara Peninsula, 5% in other areas. There’s huge potential for tube replacement and set conversion sales among the more than 4,000,000 TVs two years old or older, in opinion of DuMont’s CR tube sales chief Wm. C. Scales. Between 1946-49, some 2,030,000 sets with 10-in. tubes or smaller and 2,404,000 larger sizes (mainly 12% -in.) were sold, he told Cleveland National Electronics Distributors Assn, meeting this week. He noted trend to fewer picture tube types, said this simpli- fication is step toward making replacement and conversion easier for servicemen. Freak TV reception in TV-less Denver — stemming from troposphere, “sporadic E,” etc. — is reported in Sept. 14 Retailing Daily. Mel Collier, of Collier Music Co., says he’s picked up Detroit, Miami, Milwaukee, Cincinnati, Los Angeles, Kansas City. He once had Kansas City for “full hour,” Los Angeles “over a considerable period of time.” - 12 Telecasters get excess profits tax relief— all they asked for, possibly more — in Senate Finance Committee’s version of House-passed revenue bill (H. R. 4475) which emerged from executive session this week, goes to full committee for final action Sept. 17, should pass Senate by end of week (in opinion of majoi-ity leader Sen. McFarland), then goes to conference with House. Few new major benefits go to TV-radio manufacturers, except corporations that began operation after Jan. 1, 1946; they can now qualify under “growth formula” pro- visions enacted last year. Most vital section pertaining to telecasters is provision allowing firms with combined TV-radio station opex-ations to drop TV losses and TV capital investment in figuring EPT credits (Vol. 7:9, 21, 24, 30). Results will vary in indi- vidual cases, but over-all relief is expected to be greater than first anticipated by TV tax consultants. Fort Industry Co.’s John B. Poole, spokesman for TV Bi-oadcasters Tax Committee, said: “The Senators saw our problem, recognized it and have done a most fair and equitable job all around. It is very gratifying.” Com- mittee chaii-man George Storer wired all telecasters Sept. 14 that “substantial relief on matter of EPT has been provided” and credited much of the success to Mr. Poole, tax consultant Lovell B. Parker, CBS v.p. Earl Gammons, NBC v.p. Frank Russell, WGAL-TV president Clair Mc- Ccllough. He urged wii-es to Senators to vote for the bill. Other salient provision of Senate committee bill would allow companies deriving part of income from broadcasting and part fi-om some other business (like newspaper pub- lishing or manufacturing) to treat non-bi'oadcasting busi- nesses sepai’ately in computing EPT credits; they may figui-e the EPT on their TV-i’adio business as companies engaged solely in broadcasting. Bill hikes coi-porate taxes fx-om maximum of 47% to 52%, with ceiling on combined income-EPT taxes lifted from 62% to about 69%, makes EPT amendments effec- tive x'etroactive to July 1950, thus opening way for x’efunds to some firms after they deduct TV losses in computing credit base; makes new cox-porate taxes x’etroactive to last April instead of House-approved Jan. 1, 1951. ■ NBC-TV has bought old Vitaphone studios in Brook- lyn from Warner Bros, for reported $500,000; single big stage will be converted to 3 smaller ones. It’s second big NBC-TV deal with Warners, other having been purchase of 30-acre lot adjacent movie firm’s Burbank, Cal., studios, now being converted for TV. NBC-TV has also leased New Amsterdam Theatre roof, taking over from WOR-TV, about to move into own new home (Vol. 7:35). NBC ex- paixsions are part of plan to begin TV day at 7 a.m. Republic Pictures president Herbert J. Yates is quoted in Hollywood Variety as estimating potential profit of $10-$12,000,000 in next 3 years via leases to TV of films from its library, citing onetime use of 175 on KTTV (for $225,000) as stax’ter; films being made available exclude Gene Autry and Roy Rogers items, now involved in litiga- tion. Trade paper notes that, if Yates’ estimate is correct, Republic will earn considerably more from TV alone next 3 years than present value of all its outstanding common stock, now totaling 1,818,000 shares selling x-ecently at 414. More details on Telemeter tests (Vol. 7:34), requested by FCC, have been supplied by Paramount Pictures Corp. Response included confidential patent information, said tests with coin-operated system, if authorized, will be con- ducted midnight-9 a.m. over Paramount’s KTLA, Los An- geles, using slides, film, test pattern. Some 6 sets will be employed, all by Paramount personnel, no public showings. Paramount asks for 6 months’ authorization; Commission action is expected in couple weeks. Denver’s Broadway Theatre (John Wolfberg), thanks to good offices of Colorado’s Senator Johnson, definitely plans to show WoxJd Series on large screen in its 890-seat auditorium by tapping transcontinental TV circuit starting regular operation Sept. 28 (Vol. 7:36). Gene O’Fallon’s KFEL is also planning closed-circuit showings via RCA chain he has acquired and already demonstrated at recent Hallicrafters distributor meeting; he proposes to use an auditorium. FCC advised Sen. Johnson it would interpose no objection to such showings in Denver, largest city with- out a TV .station, provided arrangements can be made with AT&T and NBC-TV. Latter holds exclusive xdghts to Gillette-sponsored series, dxie to start first week in October (Vol. 7:36). Large-screen TV suppliers, notably RCA and General Precision Labs, have been consulting with various Denver theatre interests, presumably intending to be sta- tion applicants but stymied by freeze, which are also con- tacting networks for inghts to carry sponsored as well as sustaining shows on regular basis pending end of freeze. Second coaxial circuit into Birmingham and Atlanta started Sept. 12 with special Red Cross program, reg;ular service beginning Sept. 17. Circuit comes from Memphis, via Jackson, Miss. Present single circuit to the 2 cities comes from Charlotte and Jacksonville. AT&T says no change regarding schedule for New Orleans and Miami — “late 1952” (Vol. 7:36). This week, AT&T applied for CP to build 19-hop relay from Kansas City to Dallas, esti- mated completion date as February, 1953. Up to now, AT&T has been quoting “second half of 1952” for link, in- cluding leg to San Antonio. Estimated cost is $6,200,000. Even Iowa State College’s WOI-TV, Ames (Des Moines) is “doing all right,” though it was never designed to be profit maker. First full fiscal year ending June 30 resulted in $162,000 in revenues, while operating expenses ran $85,000. The $77,000 excess was applied to equipment. Station carries no local commercials, took in $6400 between July 1, 1950 and Nov. 1 when it began getting network service. At present rate, gross is indicated as $233,400 for present fiscal year. Station was built in latter 1949, began operating in February 1950 after other Des Moines interests shied away from then profitless TV; it had co- operation of industry, alumni, students — represents fruits of efforts largely of Manager Richard B. Hull. Three applications for new uhf stations in Dallas, Houston and San Antonio, filed last week on behalf of Texas oilmen who own KEYL, San Antonio (Vol. 7:36), wex’e suddenly withdrawn this week by Dallas counsel for UHF Television Co. without explanation to FCC. It’s understood one of reasons was that agreement with George Storer interests for $1,050,000 sale of KEYL, now pending FCC approval (Vol. 7:30), included proviso same interests would not reapply for TV there. Same group also still has long-standing vhf applications still pending for Corpus Christi and New Orleans. Two new-station applications were filed this week by WHTN, Huntington, W. Va. and KFBC, Cheyenne, Wyo., each seeking Channel 13. Latter is owned by Tracy Mc- Cracken interests, including Wyoming Eagle and State Tribune and other newspapex's. [For further details about applicants, see TV Addenda 13-J herewith; for complete listing of all applicants to date, see TV Factbook No. 13 plus Addenda 13-A to 13-J.'\ TV set-owning families increased from 24% of U. S. total in January to 27% in July, reports Industrial Surveys Co., Chicago, on basis of its national consumer panel of 4200 families. Nox’theastern section of country has 45% of families TV-equipped, North Central 27%, Pacific Coast 26';^, South 13%, Mountain & Southwest 10%. Only 7% of farm families have sets, while 53% of families in cities of 500,000 or more have them. IBLISHED WEEKLY BY RADIO NEWS BUREAU, 1519 CONNEaiCUT AVE. N.W., WASHINGTON 6, DX. TELEPHONE MICHIGAN 2020 • VOL 7, NO. 38 September 22, 1951 In. this Issue: Heightening Agitation Over Theatre TV, page 1. Zenith Ready to Start Fee-TV Scramble, page 2. NPA Priorities for TV-Radio Projects, page 3. Jockeying for Post-Freeze Position, page U- Telecasting Costs Up, So Is Business, page U. Deeper Cuts in Metals for TV-Radio, page 8. Healthy TV Trade as Inventories Drop, page 8. Action in Military Contract Crisis, page 8. ■ Reports on Color: RCA Washington Showings, Lawrence Tube, CBS Plans, page 7. HEIGHTENING AGITATION OVER THEATRE TV: Will theatre TV's shaky alliance with the prize ring blow up in the faces of movie exhibitors? There were straws in the wind this week in wake of sensationally successful closed-circuit telecasts of Robinson- Turpin middleweight championship bout to 14 theatres in 11 cities (Vol. 7:37). Resentment of TV set owners went to all-time high. Their letters to FCC, to Congressmen, TV stations and networks — even to set manufacturers — were almost without exception bitter and vitriolic. The gist: "We wuz robbed!" Radio-owning fight fans were indignant, too. They insist blackout of radio in recent fights is unwarranted and unprecedented. Radio wasn't even permitted to broadcast any information on progress of Robinson- Turpin fight until it was over. FCC received 100 or more particularly nasty letters, although it is without jurisdiction over such use of AT&T cable-microwave circuits. Three resolutions before Congress call for investigations or legislation to ban or limit exclusive theatre telecasts of "public events". And Justice Dept, con- firms that its anti-trust division is looking into the "exclusive" aspects. Even inside film industry there's open criticism. Film Daily editorialized that TV-equipped theatres drive movie fans into opposition houses or (horrors !) even home to their TV sets on fight nights. Theatres are filled with fight fans, not movie fans, said Film Daily, "with demeanor and conduct in kind." Noisy, raucous crowds generally fled theatres after fight without waiting for film feature. Authoritative Motion Picture Herald admonished theatre-TV promoters to look to greener fields. With a glance at the $1.80-$2.60 admission theatres had to charge to break even on Robinson- Turpin match. Sept. 22 editorial observed; "Major prize fights are already priced out of the regular theatre-goer's bracket." Public relations, always important to movie industry, are at critical ebb at particularly bad time. Film folk right now are preparing case for theatre-TV channels before FCC hearing set for Nov. 26 (but likely to be postponed). Some think it was poor policy to stir up opposition which may burst forth at hearing. As for Congress, suffice to say there's an election next year — and many more voters own TV sets than movie houses. Theatre folk may be playing with fire, too, in their romance with Interna- tional Boxing Club. Movie palaces will be out of fight game if they're jilted by IBC. Sept. 19 Variety reports that IBC is "studying the possibility of feeding fight telecasts into the several stadia under its control." Any such move, backed by Arena Managers Assn. , which has already announced it wants exclusive fight telecasts (Vol. 7:36), would take boxing out of the theatre and into — of all places — the boxing arena. ^ =i= * * Seventeen theatres in 13 cities, largest network yet for exclusive theatre- TV, will carry Sandy Saddler-Willie Pep featherweight title bout from New York Polo Grounds Sept. 26. Theatres on network for first time will be Detroit's Michigan, Copyright 1951 by Radio News Bureau 2 Minneapolis' Radio City, Binghamton's Capitol, Pittsburgh's Stanley. As in case of Robinson- Turpin fight, IBC made theatre-TV rights contingent on theatres' guarantee of $200,000 for the fight films. Theatres have also signed up 15 Eastern colleges for exclusive telecasts of some of their football games; Army, Penn State, North Carolina, Maryland, Colgate, Boston, Navy, Princeton, Pitt, Yale, Columbia, Fordham, Dartmouth. These are apart from NCAA-arranged schedule of telecasts via NBC-TV (Vol. 7:36). And 5 Notre Dame games — with Indiana, Purdue, Iowa — have been signed up by United Paramount for its theatres in Chicago, Detroit, Minneapolis. These games will also be made avail- able to the Eastern theatre-TV network. * * 4: Plan for permanent sports-sponsoring organization of TV set manufacturers is under study by RTMA sports committee under RCA v.p. Joseph Elliott. Committee will consider proposal to set up fund to buy sports events away from theatre TV through voluntary assessments based on set sales — and already has been offered a 50-50 deal with one of telecasting's biggest sports sponsors. But it's unlikely RTMA will undertake such a project — more probable that any such joint-sponsorship setups will be formed outside RTMA, as was group of 8 major set makers who pooled to sponsor Walcott-Charles bout July 18 (Vol. 7:28-29). ZENITH READY TO START FEE-TV SCRANDLE: Zenith is about to petition FCC for hearing looking to establishment of Phonevision as regular commercial service. At week's end, word was that it would file for rule-making hearing next week — thus opening way for first formal official consideration of principle of pay-as-you-look TV. But keep this in mind: If Phonevision or any other system of fee- TV is ever authorized — and there's no assurance that it will or will not be — it's probably years from actuality as day-by-day service. Reasons are simple: TV freeze is far and away FCC's first concern, and it can scarcely be melted before first of year (Vol. 7:36). Then theatre-TV hearing, set to begin Nov. 26, is going to be killer-diller — furore following Robinson-Turpin bout is proof of that. Theatre-TV hearing could generate as much heat as color fracas, even take as much time, though there's talk at Commission of assigning an examiner to that case, rather than hearing it en banc — iinusual for so important & controversial an issue. If fee-TV hearing starts before mid-1952 it will be surprising. In any event, it shapes up as tug-of-war whose political pulling and hauling — with movie industry so vitally involved — may well make color business look like demure after- noon tea. As we pointed out (Vol. 7:34), you don't need a diagram to explain the central issue — “to pay or not to pay." Engineering complexities can't obscure it, and several commissioners are openly doubtful about it. At least 3 other projected subscription systems will be in with both feet — Paramount ' s Telemeter, Skiatron' s Subscriber-Vision, RCA' s "mystery" system. And, although he's been quiet for several years, one Thomas E. Corbett. Briarcliff Manor, N.Y., once offered a metered- TV proposal that may turn up again. What prompted Zenith to choose this moment to file is anyone's guess. Its publicity-wise president E.F. McDonald may have found catalyst in uproar currently generated by set-owning fight lovers enraged over absence of Robinson-Turpin match from their screens. Or it may be part of pitch to hang onto now-precious Channel 2. which he has been licensed to use experimentally for Phonevision for some years. At any rate, Comdr. McDonald last week wired Congressmen, newspapers, all Zenith distributors, probably others, as follows: "How can TV, now without a boxoffice, expect to compete for great events against the tremendous boxoffice that will exist when thousands of these theatres are equipped with theatre TV unless TV itself secures a boxoffice? "Zenith is not opposed to theatre TV. but we are opposed to theatres monopo- lizing great events. Our only hope to keep great events on the air is some system of subscription TV — whether or not it is Phonevision — where the public can pay as they see." 3 NPA PRIORITIES FOR TV-RADIO PROJECTS: Telecasting and broadcasting are regarded as "indirect defense-supporting" industries — hence the 13 station and network con- struction-alteration projects included in last week's first list of fourth quarter approvals by NPA (Vol. 7:37). Despite extremely tight materials controls — 83% of fourth quarter applica- tions from all industries were denied — the TV-radio projects got NPA go-ahead, along with allotments of steel, copper and aluminum. They succeeded because they made strong cases for essentiality in civil defense and as information media. "Indirect defense-supporting" tag pinned on TV-radio grantees by NPA gave them priority over most other "commercial" construction applicants. Roughly, it put them third-from-top on NPA's 4-rung ladder of priorities. It's not very high, but it's long way from bottom — and bottom- rung projects are being turned down. This priority can be applied to any type of station alteration or construc- tion — from a complete commercial or experimental station to antenna towers, trans- mitter buildings or studio alterations. But TV-radio projects can also be rejected, as forthcoming over-all list of some 2000 denials will show. Priority isn't automatic; applicant must prove case. * * * * In applying for permission to alter or construct, these are the points to stress — they carry most weight; (1) Essentiality of project to civil defense, public safety and welfare. If it's near military training base or big defense plants, make point of importance of station for information, defense and morale in this connection. If you're requesting alterations, explain exactly why they're important. Attach as many pertinent ex- hibits as possible — NPA will base its action only on availability of materials and the information in your application. (2) Reconstruction required as result of fire, flood, disaster or other cir- cximstances beyond your control. Oklahoma City's KOMA (AM), for example, must vacate its present studios, hence got NPA's permission (and materials) to build new studios for both radio and TV. (3) Amount of basic materials needed — steel, copper, aluminum; the less the better. It's to your advantage to explain in detail how you propose to conserve building materials, cut corners to use least possible amounts of the 3 metals. * * * '* You must have CP from FCC if you're applying to build new station or make alterations necessitated by changes in power, transmitter location, antenna height, etc. NPA insists that's No. 1 prerequisite — despite its admitted error last week in approving construction of TV project which still pends before FCC. Allotment of 46 tons of structural steel to Humboldt Grieg's WHUM, Reading. Pa., to begin construction of experimental uhf tower, was a mistake, says Stephen Burns, deputy director, NPA Construction Controls Div. (Error, incidentally, is direct result of NPA's rejection of FCC offer to confer on status of individual ap- plicants and general TV-radio station criteria. ) "Whoever approved that application evidently thought the station had an FCC license," said Mr. Burns. Actually. FCC approval of WHUM's application isn't in the bag by any means, and Commission action may be delayed for some time — Reading's WEED having filed opposition (see p. 12). As for the 46 tons of steel, it's still allotted to WHUM. Only other NPA authorization for uhf station went to John H. Poole's experi- mental KM2XAZ, which has FCC permit to move from Long Beach to Mt. Wilson, Cal. Of 3784 applications for all types of fourth quarter construction, 2080 were denied, 458 approved, 848 found to be exempt from regulation. Only 152 of the ap- proved projects — and none of the denials — have been identified so far. Rejected applicants may re-apply for first quarter construction and allotments. Through first half of 1952, construction materials will be tight. Barring full-scale war or vastly accelerated rearmament, shortages should ease by time post- freeze TV construction rush is in full swing, probably 1953 (Vol. 7:36). - 4 - JOCKEYING FOR POST-FREEZE POSITION: A££i icants looking beyond freeze and seeking vantage, as most are, pose a lot of questions — few of them answerable as yet. In intermixed vhf-uhf city, for example, how will Commission award channels when hearing victors are chosen — who will get which? There’s no policy yet, but you can be sure of at least two things : (1) Uhf will be fostered by Commission, which will use the competition for channels to uhf's advantage where possible. (2) FCC will seek to minimize number and length of hearings in every way it believes to be consistent with law. Here's how one commissioner thinks about it, putting into words what others have said in part and implied: "If a man wants a uhf channel, and there's no competition for it, I think he should get it without a hearing, regardless whether there's competition for the vhf channels in the city. I think the rest of the Commission will feel the same. I don't see why vhf and uhf should be thrown into the same pot. "In competition for vhf, should we hold hearings on individual channels? I don't know. That's a tough one. Aside from legal complications, I wouldn't like to see applicants lining up and, in effect, making a partial determination of who will get the grants. I think we should have complete choice as to which are best. "Yet you must remember our budget situation. We have only 7 examiners and aren't getting any more. Our staff is very limited. If jockeying for position seems to promise much quicker grants, perhaps that's what we'll have to permit." We suggested: Perhaps "grass roots" campaign, now, might bring the needed funds from Congress? "It would be ironic," said the commissioner, "if we should get funds through the efforts of the industry we regulate, when the House has rejected our request for appropriations to conduct monitoring for the defense effort." Another commissioner favors "specified channel" type of hearing, believes it legal, proper, expeditious. Still others favor almost anything that will hasten growth of uhf — but manifestly haven't thought deeply about modus operand!. One more possibility being toyed with; If applicants outnumber channels in particular city, cut loose one or 2 uhf "flexibility" channels — enough to go around — and grant everyone. Who would get vhf, who uhf? "I don't know, but we could do it, and I think many applicants would accept what they got, and be glad to avoid a hearing and get a channel." Sounds possible — in new markets. Only thing sure ; All the commissioners, having heard from Congress and the public, really are eager to end the freeze as quickly as possible, some now openly regretting delays caused by the color imbroglio. When final decision is rendered, FCC may well call in applicants' attorneys and engineers for conferences to speed up hearing procedures. Commissioners regard last conference, which resulted in the "written hearing" procedures now in progress (Vol. 7:30), as most fruitful effort to end freeze yet undertaken. TELECASTING COSTS UP, SO IS RUSINESS: operating costs are mounting — but business of telecasting is in such "good financial health" that even the conservative NARTB (National Assn, of Radio & Television Broadcasters) echoes our prediction that most TV stations will operate in the black for 1951 (Vol. 7:13,36). "This would reverse the 1950 picture, when approximately 65% of the TV sta- tions reported red-ink operation for the 12-month period," said NARTB's capable employer-employe relations chief Richard P. Doherty at Chicago meeting Sept. 18. Until FCC's 1951 audit comes out next spring, no one can say what figures really are — but fact is that TV time is selling like the proverbial hotcakes, that telecasting is probably the fastest growth industry in the land. Even the smaller- town stations among the 107 pre-freeze "pioneers" now report profitable operation, so it could be that "most" now means "nearly all". Even in 1950, as matter of fact, 54 stations ended year in black, according to official FCC report (Vol. 7:13), although the industry as whole showed deficit of 5 - S7, 900,000 (before Federal taxes) as against S25.500,000 deficit in 1949 — mainly due to network losses. FCC auditors reported more than half these 54 had net profit of $100,000 or more before taxes, while 8 stations earned more than $400,000 each. All isn’t gravy for the telecasters, however. Mr. Doherty's talk was based on his second annual TV cost study, just sent NARTB members, which covers 1950 oper- ations. It starts by reporting "substantial and even remarkable increases" in indi- vidual station revenues. But it also notes total operating expenses per station have risen because of larger staffs, higher wages, added equipment, more hours on air, allocation of certain costs hitherto not charged to TV (presumably to radio). Biggest expense item was payroll, averaging 50-60% of revenues, says report. Depreciation ran some 16-17% of total expenses. Film & minor unclassified programs averaged 15-14%. Report doesn't identify stations, nor disclose extent of sampling, but breaks stations down into 5 categories of operating costs ranging from $200,000 & below to $800,000 & above. Lower group averages 32 employes (2 part time) and weekly payroll of $2169; latter averages 152 workers (8 part time), payroll $15,875. NARTB report conflicts with FCC's in that it says only 35% showed profit in 1950, FCC figures being before taxes. NARTB sample stations showed average per- station increase of 60% in revenues in 1950, or an average of $441,000 per station. Average operating cost per station was put at $532,000 — so that operating ratio was 121% for full year of 1950 as against 197% for 1949. IS TV LOSING ITS AUDIENCE? New York Herald Tribune Syndicate’s caustic John Crosby thinks it is, and he blames “the freeze in ideas,” which he calls “even ' more paralyzing than the FCC freeze.” In Sept. 19 column he advises telecasters to heed signs of restiveness among set owners, and — yes — even the current wave of anti-TV jokes. Says Crosby: “Just as did radio, TV is losing — or may already have irrevocably lost — the support of the most intelligent level of the American community, the most influential body of opinion in the country.” As a result of stereotyped pro- gramming and avoidance of new ideas, “TV has earned for itself, in 5 years, a popular contempt which it took radio 20 years to win — if that’s the word for it . . . TV is break- ing the hearts of its own most able and imaginative cre- ators— those who got into TV early, those who saw it as the greatest mass communications medium ever devised . . . “Broadcasting has always been more aiflicted with taboos than any other medium. Today the timidity has reached an all-time high. Virtually everything from pregnancy to freedom of religion is considered a contro- versial subject, leaving almost nothing except homicide as ; a fit topic to enter our homes. You can’t hire a contro- . versial figure, either, meaning anyone whose name has ap- peared in Red Channels. No one in broadcasting . . . will defend these taboos; all scrupulously observe them.” And New York Times’ Jack Gould same day takes a swipe at those half-hour filmed commercials which he says are shaping TV into “America’s flea circus.” “Fifty percent of the TV industry,” he says, “is now 1 ardently embracing the commercial commercial” — those long sales talks, minus entertainment, which advertise vitamin pills, hair oil, etc. These pitchmen, says Gould, “ai'e a breathless and tireless band of recruits from medi- , cine shows, carnivals and auction galleries,” and names j them as Sid Hassman, Richard Lewellyn, Charles Kasher, I Paul Bedell and David Klein. “Their technique is sim- i plicity itself: treat the customer as a consummate dope.” Baltimore ad agency, TV Advertising Associates Inc., I is responsible for the epidemic, Gould says, observing that i gen. mgr. Allen C. Kaye-Martin is “happily surprised by l| the advantages that come from the program not subject to |l the distractions of entertainment . . . Even in one-station I towns, he doesn’t hesitate to repeat films: 300 showings in i. 14 months has been one community’s fate . . . 'i “Fifty-five video stations out of a total of 107, as well as 750 radio outlets, are playing host to the medicine men. WOR-TV is in its twentieth month showing the same half- hour commercial 3 times a week. WJZ-TV [is] just be- ginning. ‘Our first network-owned station,’ Mr. Kaye- Martin said, with a touch of pride.” Neither press, radio nor TV has right to be in a court- room, which “belongs to the litigants trying a case,” said ex-Federal Judge Simon H. Rif kin in opposing telecasting of criminal trials and Congressional hearings on Ameri- can Bar Assn, convention panel in New York Sept. 19. Columnist Marquis Childs was opposed to “hippodroming” as incentive to prosecutors to go all out for prominence rather than justice. But Rudolph Halley, ex-Kefauver committee counsel, backed TV by noting “sobering effect” it had on committee members and counsel during recent hearings. And New York Times’ Jack Gould said it’s better to use TV at real trial where justice is being dis- pensed than for gang operas and pseudo-crime thrillers. Electromagnetic radiation bill (Vol. 7:8, et seq) was reported Sept. 19 by House Interstate & Foreign Com- merce Committee with only 2 amendments to Senate- passed version (S. 537). First would bring Canal Zone under provisions, second increase punishment to $20,000 and/or 20 years for violations intended to harm U. S. There’s little doubt Senate & House will agree quickly on measure, pass it. V/hat bill would do is extend President’s power over stations to other devices capable of emitting radiations of navigational use to enemy. Govt, should buy TV-radio time for candidates for Federal office because of “frightening increase” in cam- paign costs. Thus Sen. Benton (D-Conn.) testified before Senate Elections subcommittee Sept. 14. Major parties would allocate time to their candidates, but minority parties would have to pay full rates if they poll less than 2% of vote. Sen. Benton would have stations continue offering free time and suggested FCC, in making grants, “give weight” to applicants proposing to offer free time. Resumption of hearings on Benton bills (Vol. 7:36-37) is still not scheduled, and probability grows that they won’t be concluded this session. NARTB says that when its tui’n comes to oppose bills — which propose setting up 11-man TV-radio program advisory board and encourag- ing box-office TV — testimony will be offered by station operators as well as headquarters spokesmen. I - 6 Personal Notes: Allen L. Haid reported succeeding late Ed Flanagan as mgr., WSPD & WSPD-TV, Toledo, transferring from WSAI, Cincinnati, where he will be re- placed by Robert Kern, ex-WMMN, Fairmont, W. Va. . . . Jack Van Volkenburg and Howard S. Meighan, presidents of CBS-TV & Radio divisions, respectively, guests of honor at Washington reception Sept. 17 attended by govt, officials and by CBS chairman Paley, president Stanton & execu- tive v.p. Ream . . . Martin N. Leeds promoted CBS-TV di- rector of business affairs, Hollywood, as Kenneth L. Yourd transfers to New York to become CBS-Radio director of business affairs; Hollywood radio job taken over by John F. -Meyers . . . Frank II. Fletcher has resigned as an FM mem- ber of NARTB board, having sold his interest in WARL & WARL-FM, Arlington, Va.; he practices law in Washing- ton . . . Les Arries has resigned from DuMont Network executive staff . . . Harvey Marlowe appointed program mgr., WOR-TV, New York . . . Max Jacobson promoted to NBC-TV studio supervisor under operations supervisor R. R. Davis; Herbert DeGroot to newly created post of kinescope recording supeiwisor and John Schaller to TV training supervisor, both under technical operations super- visor F. A. Wankel . . . David Miller, v.p. & general coun- sel, Young & Rubicam, named TV-radio operations direc- tor; David Levy, v.p., named executive asst, to Everard W. Meade, v.p. & director of TV-radio dept., and Rodney W. Erickson named mgr. of contact service . . . Robert Peyson, ex-Kenyon & Eckhai’dt and CBS, named TV production su- pervisor, Grey Adv. . . . Gil Babbitt named TV-radio direc- tor, Feigenbaum Adv., Philadelphia . . . Jack Poppele, WOR-TV engineering v.p., named to advisory council, Upsala College, E. Orange, N. J. . . . Howard Lepple, ex- chief engineer of WLWD, Dayton, named engineering ad- ministrative asst, under v.p. R. J. Rockwell to coordinate TV plant and operations of 3 Crosley TV stations; he’s succeeded at WLWD by Lester Sturgill, while Carl Bopp, WLWT chief engineer, leaves station to work on color TV at Crosley plant. J. M. McDonald named asst, technical director, all Crosley stations . . . Robert E. Kintner, ABC president, replaces Mark Woods, ex- ABC vice chairman, on the Advertising Council . . . Guilford S. Jamieson, for- mer president, FCC Bar Assn., has joined William P. Smith ^ in establishing law firm of Smith & Jamieson, Walker Bldg., Washington. Dr. Newbern Smith, chief of Bureau of Standards cen- tral radio propogation lab, named recipient of IRE’s 1952 Harry Diamond Memorial Award for person in govt, serv- ice making outstanding contributions. Among 45 new fellows IRE board has named: S. J. Begun, Brush Develop- ment Co.; P. S. Christaldi, DuMont; Howard Post Corwith, Western Union; L. A. DeRosa, Federal; D. W. Epstein, R. S. Holmes, Harold B. Law, L. S. Nergaard & Louis Malter, RCA; R. N. Harmon, Westinghouse Radio Sta- tions; John K. Hilliard, Altec Lansing; J. A. Ouimet, Cana- dian Broadcasting Corp.; Henry W. Parker, Sylvania; D. W. Pugsley, GE; H. H. Scott, Hermon Hosmer Scott Inc.; C. S. Szegho, Rauland; Russell H. Varian, Varian As- sociates. Frank J. Eisner, 76, chief electrician at NBC’s Center Theatre, died of heart attack while at his post Sept. 16 during Colgate Comedy Hour. During 40 minutes of pro- gram, show went on while 4 of his grieving electricians handled his light cues — at times reaching over his body to throw switches because it could not be moved until medi- cal examiners arrived. Second volume of Best Television Plays of the Year: 1U50-5}, edited by William I. Kaufman, NBC-TV casting director, due from Merlin Press in October. Network Accounts: Block Drug Co. (Amm-i-dent tooth powder & paste) begins Crime with Father Oct. 5 on ABC-TV, Fri. 9-9:30; also resumes Danger Sept. 25 on CBS-TV, Tue. 10-10:30, thru Cecil & Presbrey, N. Y. . . . Aluminum Co. of America (Alcoa products) will present See It Now on CBS-TV, Sun. 5:30-6, starting date an- nounced . . . S. C. Johnson & Son Inc. (wax products) starts Garry Moore Evening Show Oct. 18 on CBS-TV, alt. Thu. 8-8:30, thru Needham, Louis & Brorby, Chicago . . . Word of Life Fellowship Inc. (religious organization) starts new series of Word of Life Songtime Oct. 6 on ABC-TV, Sat. 11-11:30 p.m., thru Walter F. Bennett & Co., Philadelphia . . . Jene Sales Corp. (home permanent) new program starting Sept. 27 on ABC-TV, Thu. 10-10:30 (Vol. 7:37) is Paul Dixon Show, originating at WCPO-TV, Cincinnati . . . Grove Laboratories Inc. (Bromo Quinine Cold Tablets) reported readying alt. week sponsorship of Tales of To- morrow on ABC-TV, Fri. 9:30-10, thru Gardner Adv., St. Louis; Jacques Kreisler Mfg. Corp. (men’s jewelry) now sponsors alt. weeks . . . General Tire & Rubber Co., which sponsors Ted Busing on film before each Westinghouse- sponsored NCAA football game (Vol. 7:37), will also spon- sor Dizzy Dean intci-viewing World Series players 15-min. before each series game on NBC-TV; agency is D’Arcy Adv., St. Louis. Station Accounts: Philips Petroleum Corp. sponsoring film versions of Big 7 grid games on WDAF-TV, Kansas City, and other Midwest stations, Tue. nights . . . Miller Brewing Co. (beer) sponsoring Marty Glickman in Giant Quarterback Huddle on WOR-TV, New York, Wed. 7:30-8, thru Matthisson & Associates, Milwaukee . . . Buitoni Macaroni Corp. Oct. 1 resumes sponsoring Clair Mann’s Glamour Show on WJZ-TV, New York, Mon. 2-2:15, thru Astral Adv., N. Y. . . . Quaker City Chocolate & Confec- tionery Co. buys Good & Plenty Western Show, dude cow- boy Dave LaRue as m.c., Fri. 5:30-6 on WNAC-TV, Bos- ton, thru Adrian Bauer Adv., Philadelphia . . . National Brewing Co. signs with WMAR-TV, Baltimore for third year, 52-week contract covering 3 programs, 131^ hours weekly, thru Owen & Chappell, N. Y. . . . Among other advertisers reported using or preparing to use TV: John W. Leavitt Co. (Teddie peanut butter, nuts), thru Cham- bers & Wiswell, Boston (WNAC-TV); Sunbeam Corp. (electrical appliances), thru Perrin-Paus Co., Chicago (WABD); Ralston Purina Co. (Rice Chex), thru Gardner Adv., N. Y. (WOR-TV); Elmira Filter Tip Corp. (ciga- ; rette holder), thru Wesley Associates, N. Y.; Mandee I Fabrics Inc. (rayon & rayon acetate fabrics), thru William j Wilbur Adv., N. Y.; New Mexico Tourist Bureau. ( Mounting costs of TV talent were pointed up this / week when, with announcement that NBC has signed Ezio I Pinza to exclusive 3-year contract. New York Herald ! Tribune reported his fee on TV shows built around him will run ?5000 a show and his TV-radio guest appearances $2000 per. Variety says fees of $5000-$7000 are already being paid in network “battle for ratings” — Dinah Shore and Tony Martin each getting $5000 plus expenses and Margaret Truman $2500 plus expenses for recent appear- ance on Red Cross Shoes’ America Salutes Irving Berlin on NBC-TV. Average in TV, says Variety, is $3000 for single guest shot. Ross Reports estimates over-all TV production costs will run $262,000,000 for 1951-52 year, ' which means production-talent bill will equal or exceed telecasters’ probable time billings (Vol. 7:32,36). Novel request by XELD-TV, Matamoros, Mex., asks FCC for temporary use of 5-watt transmitter on 140.02 me to transmit electrical impulses and voice from Broisms- ville, Tex., for purpose of synchronizing stations’ diesel power generator with Brownsville cux’rent. 7 The FCC’s first look at RCA’s latest color pictures may come in early October, since it probably will get invitation soon from RCA. Decision to pipe pictures to Washington — bringing them home to capital’s big brass — came after RCA Chairman Sarnolf went to Washington Sept. 20, looked at signals sent from New York via coaxial and microwave, pronounced them “excellent — just as good as in New York.” Transcontinental transmission to Los Angeles and San Francisco is just as feasible, said Gen. Sarnoff. RCA is so satisfied with its New York showings (Vol. 7:36-37) and networking potential of its compatible color system that it plans 2 weeks of demonstrations in Washington, prob- ably starting Oct. 3, carrying thrice-daily shows originated in New York. The 10 a.m. show will be telecast via WNBW, the 2 & 4 p.m. shows via closed circuit. Invitations to FCC would be informal, not in nature of request for reopening color hearing which RCA and/or NTSC will seek after sufficient field-testing. * * * ❖ Biggest color flurry of week came when Sept. 20 New York Times ran Wm. Laurence’s excited story on tri-color tube built by his friend Dr. Ernest Lawrence. Dr. Law- rence had demonstrated tube in New York labs of Para- mount Pictures, 50% owner of Chromatic Television Lab- oratories Inc., formed to develop and produce the tube. Story by Times’ eminent science editor was followed by jump in Paramount stock from 27% to 33%. It fell back to 3014 at closing Sept. 21. Other reporters clamored for look, got it. Consensus was that tube still has quite a ways to go. Wm. Laurence attended RCA demonstration after- noon of same day, was asked how pictures compared with Lawrence tube results. He said: “The color I see here is far superior.” But he believed it unfair to compare the two, since Lawrence tube was hand-made model, actually built in Dr. Lawrence’s Berkeley, Cal., garage and flown to New York over weekend. Wall St. Journal reporter wrote: “Newsmen were of the opinion that the color reproduced with the Paramount tube was not as good as that shown by either CBS or RCA ... In some instances, the various hues had a ‘washed out’ look; in others they lacked sharpness and appeared to overrun each other. Flesh tints were unnatural, too.” AP reporter’s reactions were similar. But all observers took into account fact that tube was hand-made, hurriedly set up. Actually, tube wasn’t even sealed, was on pumps during demonstration. Signals used were closed-circuit, live, fed from field-sequential equip- ment purchased from DuMont. Plans to manufacture tube at recently-acquired Stam- ford, Conn., plant were described by Paramount v.p. Paul Raibourn. He said that capacity will be 75-100,000 yearly; that 16 & 22-in. tubes to be made will run about $5 more than comparable black-&-white if mass-produced; that “limited number” of color-monochrome sets will also be made; that tube licenses will be offered to other manufac- turers, some of whom have already approached Paramount. Tube has single gun, 400 vertical lines of phosphors in glass plate (eventually on face plate), wire grid to direct electron beam to proper line. Paramount officials CBS Affiliates Advisory Board has reelected I.R. (Ike) Lounsberry, WGR, Buffalo, as chairman. Richard Borel, WBNS, Columbus, was elected secretary, succeeding Arnold Schoen, WPRO, Providence, who continues to rep- resent District 1. Other members: C. T. Lucy, WRVA, Richmond; Glenn Marshall, WMBR & WMBR-TV, Jack- sonville; Howard Summerville, WWL, New Orleans; Harry Burke, KFAB, Omaha; Clyde Rembert, KRLD & KRLD- TV, Dallas; Clyde Coombs, KROY, Sacramento. say brightness is about 15 ft.-lamberts, claim overall per- formance is “1000%” over early Lawrence tubes. It hasn’t been used with RCA signals, but Paramount says it can be. FCC and industry are being invited to showings of tube in near future. Field tests of compatible signals will get under way on several additional fronts, now that NTSC adopted, at Sept. 18 New York meeting, major recommendations of NTSC Panels 14 & 16 — synchonization and standards. These standards include: 3.89-mc color subcarrier, color phase alternation (formerly called oscillating color se- quence) , constant luminance sampling. Minor, non-contro- versial standards are still to be set. Among those to broadcast compatible signals: RCA, in New York and Washington; DuMont, Passaic and New York, latter with new 5-kw ERP 708-714 me transmitter at WABD’s present site and with portion of schedule micro- waved from Hazeltine labs; Philco, Philadelphia; GE, Syracuse; Crosley, Cincinnati; Zenith, Chicago. Crosley, like Philco, has protested to FCC against limitation of colorcasts to periods outside regular commercial hours. NTSC is shooting for completion of field tests by end of year, its chairman Dr. W. R. G. Baker (GE) reported to RTMA board this week. FCC will join in on field tests, in a way, since it is building sets around 2 RCA tri-color tubes received at Laurel, Md. labs Sept. 14. Plans are to look at both CBS and RCA pictures. 'Ai * He Status report on CBS color, delivered at Sept. 18 Washington Ad Club meeting by CBS Labs president Adrian Murphy, stressed this unusual point: CBS color is a stimulant to black-&- white sales now, since manufac- turers can assure customers that they can buy now, con- fident that color “slave” unit may be added any time. CBS has advantage over RCA in that RCA says tri-color tubes won’t be mass-produced for 2 years or so. Manufac- turers are recognizing that “color can’t be uninvented.” Additionally, Murphy reported that: (1) CBS would offer 20 hours of color weekly by October. (2) CBS has 7 color cameras on order. (3) CBS-Columbia has completed tooling, expects to reach production of several hundred color sets daily within next few months. (4) Eidophor- CBS theatre TV is now being tested in Zurich. (5) France appears ready to adopt CBS system. (6) Remington-Rand industrial color has been bought by U of Kansas, U of Chicago, Boston’s Jordan-Marsh dept, store. (7) Drum- type color sets are planned for “future.” Nine-game color football schedule beginning Sept. 29 is to be fed to 1 1 stations, but at least 2 — WTOP-TV, Washington, and V/MAR-TV, Baltimore — plan to feed pro- grams closed-circuit to receivers in auditoriums or halls rather than clear time on the air for the few color receiv- ers yet available or adapters people might buy. Neither has yet chosen location. Other 9 affiliates CBS reports will carry its color football: WCBS-TV, New York; AVCAU-TV, Philadelphia; WNAC-TV, Boston; WBKB, Chicago; V/KRC-TV, Cincinnati; WHIO-TV, Dayton; WBNS-TV, Columbus; WJBK-TV, Detroit; WEWS, Cleveland. Acute CBS-TV Chicago dilemma, pending projected $6,000,000 purchase of Paramount’s WBKB (Vol. 7:36), as reported by Chicago correspondent of Billboard (Sept. 22) after noting 22 programs constituting 17 hours a week now being piped to other networks from Chicago: “Colum- bia [continues] the big blank in Chi network program- ming. WBKB, local CBS outlet, is so busy making money on local shows it has no time to think about network orig- inations.” DEEPER GUTS IN METALS FOR TV-RADIO: Fourth quarter materials allotments completed, j NPA Electronics Div. took a look at its books this week and discovered TV-radio set j makers' rations will be a little slimmer than they appeared last week (Vol. 7:37). Here's how they average out on industry-wide basis: Set manufacturers will be limited to 58.5% of steel they used during average quarter of first half 1950 (vs. 60% reported last week), 52.6% copper (vs. 54%), 46.8% aluminum (vs. 48%). And another copper cutback is due for fourth quarter, may be announced in next few days. Recent strike cost U.S. 50,000 tons — about same amount used by the entire TV-radio industry in all of 1950. Over-all allotments were determined before walkout ; therefore Govt, has allotted much more copper than will be available. These alternatives face mobilization planners: Dig into stockpile, slash allotments, or both. Copper stockpile is already low, 25,000 lbs. having been with- i drawn earlier this year. Burden of new cuts in fourth quarter allotments will be borne heavily by consumer durable industries. HEALTHY TV TRADE AS INVENTORIES DROP: "Steady and healthy" .just about sums up the upsurge in TV-radio trade at all levels — with inventories going down as production creeps forward. One key dealer calls it "nice normal business." epitomizing what the trade press and other dealers as well as distributors & manufacturers are saying. Renewed confidence is manifest on all hands that fourth quarter output and sales will be satisfactory, though by no means comparable to last year's. Extent of dealer-inventory drop can only be conjectured, won't be known (and (| then only as of Sept. 1) until next Dun & Bradstreet report is issued at end of this ' month. RTMA's monthly distributor-inventory figure always lags month, too. 1 But factory inventories are reported weekly — and latest, covering week i after Labor Day, ending Sept. 14, showed drop of more than 61,000 units from preced- | ing week to total of 560,044. On basis of reports how well cut-price sets have been | moving from factories, and selling, it's entirely likely this drop will have been | equalled or bettered this current week (ending Sept. 21). The 61,000 drop was biggest since Aug. 24 report of 88,151 drop (Vol. 7:35). It's apparent the downtrend from Aug. 3 peak of 768,766 will continue. Production of TVs rose to 62,758 (only 487 private label) for week ending Sept. 14, bring to just under 500,000 the total for 11 weeks of third quarter thus far reported — and about 3,825,000 for year to date. Third quarter should hit 600,000 or more, compared to roughly 1,850,000 in third quarter 1950. There are those who believe pace can only accelerate — at least to limit of materials availability — so that fourth quarter may well achieve NPA's informal estimate of 940,000 (Vol. 7:32) to bring year's total to about 5,000,000. As against recent level of 50-60,000 sets per week, output ran thrice that rate this time last year. Radio output for week was 222,406 (101,296 private label), up from 179,872 preceding week (Vol. 7:37). Factory inventory of 381,139 on Sept. 14 compared with 414,130 Sept. 7. Radios were 125,501 home sets, 19,840 portables, 77,065 auto. ACTION IN MILITARY CONTRACT CRISIS: Military electronic contracts are by-passing most of TV-radio industry (Vol. 6:48-49; 7:3,10) even while materials cutbacks threaten body blow to industry kicked in face by summer buying slump. Serious dislocations have already resulted — more are inevitable. With these grim facts in mind. Defense Production Authority Sept. 21 set up joint Govt. -industry-labor electronics task group "to study the possibilities of placing additional defense work in mass production plants of electronics industry. " Employment has dropped 50% in TV-radio plants in Chicago and New York-Phila- ' delphia areas since first half 1950, task group's first meeting was told, on basis - 9 of "preliminary reports." If measured against fall 1950 's peak employment, the dip would be far greater. Where have the military orders gone, meanwhile? For first time, the Govt, reveals this distribution pattern of electronic prime contracts by dollar value: Manufacturers ivho make only TV-radio sets have gotten 7%. I Old, established firms which did govt, electronic work in World War II got ' 65%. (Top 5 contractors then were Bendix, GE, RCA, Western Electric, Westinghouse. ) Old, established firms which are new to electronics industry, notably the aircraft and automotive manufacturers, got 21%. ' New electronics firms, most of them especially set up to produce military equipment, got 7%. Many military electronic items aren’t suited to mass production techniques . typical of TV-radio industry, task group agreed, because of "high degree of engi- ! neering required, fluidity of design, and high proportion of mechanical devices in- corporated in the delivered equipment." In addition, large number of samples sub- , mitted to the military by TV-radio firms haven't come up to specifications. Named to task group by DPA chief Manly Fleischmann; Edmund T. Morris Jr., ; chairman, DPA Electronics Production Board, and director of NPA Electronics Div. ; ‘ Air Force Col. Leigh Hunt, Munitions Board; Emerson president Benjamin Abrams; i Philco president William Balderston; M.F. Darling, IBEW-AFL, Chicago; Daniel Arnold, chairman, radio-TV conference board, lUE-CIO, Camden. They recommended; I (1) Military procurement services request prime contractors to place subcon- i tracts in areas having surplus of facilities and labor for electronics production. ^ (2) TV-radio manufacturers be more aggressive in seeking subcontracts, work- ing through armed forces regional councils. (3) Defense agencies study existing contract loads, and spread orders more ; evenly throughout industry, provide suitable incentives to encourage prime contrac- tors to farm out more of their work to subcontractors. (4) Component manufacturers submit samples for testing by Armed Services i Electronics Standards Agency (ASESA). Meeting followed by few days RTMA's formation of "clearing house" to match 'prime contractors' needs with subcontractors' productive facilities (see p. 10). Task of making accurate employment and production survey of the electronics ( industry was assigned labor representatives on group, who were also asked to submit I fourth quarter estimate and complete list of Chicago & New York-Philadelphia firms. If group does accomplish objective of spreading contracts throughout the ; industry, it will be year or more before results are noticeable — because of time I required for engineering and design, field testing, etc. Trade Personals: John C. Weisert, ex-Scott v.p., special asst, since last February to asst, price stabilizer Edward F. Phelps Jr., has resigned from OPS to open Washington office for Magnavox . . . Ricardo Muniz, ex-mgr., DuMont receiver manufacturing div., named operations v.p., Trad Television Coip. . . . Morton M. Schwartz has resigned as gen. sales mgr.. Tele-tone ... A. Blumenkrantz, General Instrument Corp., succeeds R. E. Laux as a director of RTMA parts div. . . . Paul V. Batt, ex-Graybar, promoted to TV-radio sales mgr., RCA Victor Distribution Corp., Albany . . . Irving M. Sandberg named New York sales mgr., Stewart- Warner TV-radio div. . . . Herbert A. Bell, founder-president, Packard-Bell, honored at testimonial dinner in Santa Monica’s Miramar this week, given by 80 company officials and distributors . . . Bendix Radio, Balti- more, reports these appointments: F. Donald Fenhagen, mgr. of adv.-public relations, succeeding Leo G. Sands, transferred to Detroit; Henry B. Yarbrough, mgr. of govt, sales, Walter C. Jager asst, mgr.; J. Walter Colvin, mgr. of Air Force sales; L. H. Jones, asst. mgr. of radio sales; James S. Wells, chief industrial engineer; Wolf Broehm, asst, factory mgr. . . . Dr. Thomas H. Morrin, Stanford Research Institute’s electrical engineering chief, becomes head of all SRI engineering in new setup; Wm. E. Evans heads TV Group, Paul G. Bohlke heads Electron Tube Lab . . . Jack Frietsch, ex-mgr. at Dayton, named Crosley zone mgr., Cincinnati. July TV shipments to dealers totaled 117,862, reports RTMA, making cumulative total of 2,588,816 shipped dur- ing 30-week period ending July 27 when distributor inven- tories were reported at 640,393 units. July shipment figure compares with 160,308 in June. Total production during July was 116,000 sets. Copies of RTMA county-by-county report, showing 7-month shipments to each county where 25 or more sets were sold during period, is available from RTMA, 1317 F St. NW, Washington. Fair trade practice conference for TV-radio industry goes on Sept. 26-28 before Federal Trade Commission attorney Paul H. Butz, despite request of NARDA presi- dent Mort Farr for postponement of 2-4 weeks to give more time to study “dangerous” parts warranties practices which he said have mushroomed in industry last few weeks. 10 - Topics & Trends of TV Trade: Upturn in production at Chicago TV-radio plants reflected by fact only 3000-4000 IBEW-AFL members now unemployed, as against 11,000 in July, reports Local 1031 president M. Frank Darling . . . Depths to which TV sales fell this summer indicated by Washington Electric Institute figures, showing July TV sales only 1663 units vs. 6274 in July 1950; but for first 7 months of this year total was 25,279 vs. 37,632 for same 1950 period ... In New York, Herald Tribune survey of dept, stores showed August TV-radio sales down in 13 out of 16 stores, compared to August 1950; they reported drops ranging from 28% to 84%. Three had gains of 94%, 68% & 17% . . . Muntz hikes prices of 20-in. table from $170 to $200, consoles from $200 to $240 and $220 to $270; Harold W. Brown, executive v.p., reports 12,000 sets sold in Au- gust, compared with 7000 same month last year . . . Tech- Master reports 3 new custom-built 24-in. models . . . JFD Mfg. Co. offering “Tele-Plex,” new coupler permitting up to 4 TV sets to operate from one antenna . . . Blonder- Tongue Laboratories, 38 N. Second Ave., Mt. Vernon, N. Y., offers new multiple distribution amplifier, says it can feed up to 200 TV sets . . . Another sign of improving times: Zenith’s new Washington distributor, Simon Distributing Corp., reports 487 dealers attending preview of new line this week bought 5137 TV sets — exceeding allocation. ♦ * * • TV set servicing problems are growing so acute that RTMA board has authorized employment of staff assistant to devote full time to work with distributors and dealers in coordinating activities looking to improved industry prac- tices and policies. Crosley’s John W. Craig, chairman of set division, will appoint special committee to study and recommend servicing policies. Latest effort to license servicemen and dealers, in Milwaukee, was defeated this week when NARDA group persuaded city council to kill proposed ordnance. Emerson’s line of 17 TV receivers is led by 17-in. table (Model 696) at $199.95 and 20-in. mahogany ensemble (No. 697) with swivel-action console base at $279.95. Also shown distributors last week end were 23 radios listing from $16.95 to $199.95. President Benjamin Abrams said distributor sales to dealers last few weeks have exceeded production “with the result that, keeping up with demand, distributors have reduced their inventories [and] we can now predict that within 3 weeks Emerson will be unable to fill the intensified demand for most models.” Packard-Bell has 31 models in new line introduced this week, starting with 17-in. table at $240, console $290, and 20-in. walnut console at $340. Also introduced was 24- in. with doors at $550 in mahogany, and $575 in oak, American Colonial or French Colonial. Console combina- tions ai-e full-door 17-in. with AM-FM-3-speed at $475 in walnut or mahogany, $495 in oak or Provincial; 20-in. at $615 in walnut or mahogany, $640 in oak, American Co- lonial or French Provincial. Prices are generally lower than preceding line, low-end 17-in. table comparing with former $270 price. Advertising Notes: Westinghouse’s $700,000 budget to advex’tise its TV sponsorship of NCAA football schedule (Vol. 7:36), will be spent mostly on newspaper space in the 60 major cities where games are played . . . Belmont ad budget for new line of Raytheon TVs (Vol. 7:37) runs nearly $1,000,000, including John Cameron Swayze’s radio series (NBC, Sun. 3:45-4 p.m.) and heavy schedules in consumer magazines . . . Majestic sponsoring 7 U of Illinois, 2 Michigan grid games on Chicago’s WAAF (radio), with special merchandise tie-ins, including contest to locate oldest Majestic radios . . . NARDA president Mort Farr, dealer in Upper Darby, Pa., is m.c. of Wit’s End, children’s quiz show he sponsors Sun. 12:30-1 on WCAU-TV. Nobilizalion Notes: To speed military electronic pro- duction and aid small manufacturers, RTMA has set up “clearing house” aimed at bringing prime contractors and potential subcontractors together. Recent survey by RTMA’s Small Business Committee headed by Indiana ' Steel’s A. D. Plamondon Jr. (Vol. 7:28, 34) provided master list indicating what prime contractors are in need of par- ticular services and what subcontractors are in position to supply them. As result of suiwey, 2 or 3 subcontracts have already been arranged, according to RTMA president Glen Mc- Daniel. “Clearing house” vrill be especially helpful to the many manufacturers who haven’t received govt, contracts and have been badly hit by TV sales slump and materials restrictions. Committee agreed to classify as “small busi- ness” all manufactm’ers who employ 750 or less and are , not subsidiaries of firms employing more than 750. Some | 72% of RTMA’s 329 member companies fall within this definition. * 4c 4c 4e Special CMP instruction sheet for electronic equip- ment manufacturers has been drafted by NPA Electronics Div., to go out in few days to all electronics firms. Letter will give specific directions for filing first quarter CMP-4B forms, was prompted by large number of inadequate and incorrectly filled-out forms for third and fourth quarters. First quarter applications are due hy Oct. 1. Late appli- cants for fourth quarter CMP allotments apparently are out of luck — for Electronics Div. has allotted its full quota of steel, copper and aluminum for last 3 months of this year. New CMP “Class B” product list for fourth quarter — which is supposed to list all civilian type products and com- ponents with appropriate code number and industry divi- sions— reflects some changes on electronic product classifi- cations. Added to list, assigned to Electronics Div., are color slave units, color adapters and converters, uhf con- verters and radio hardware. Intercom systems, assigned to Communication Equipment Div. for third quarter. Elec- tronics Div. for fourth quarter, reverts to Communication Div. for first quarter 1952. Gray market “has all but cornered” sizable por- tion of the dwindling free supply of a dozen criti- cally needed materials, says House Small Business sub- committee on gray markets in report on nickel. Group headed by Sen. Blair Moody (D-Mich.) finds that nickel normally priced at 67^ a pound has been selling for as much as $4.50 on gray market, where 40^ scrap is selling as high as $2.75. Report charges that: (1) “Pattern of nickel anode [for plating] distribution has crumbled under the pressure of war-born scarcity.” (2) “Nickel anodes have been priced beyond the reach of small business men.” (3) “Self- styled brokers, many of whom never saw a nickel anode until a few months ago, with no more than a telephone by way of business equipment . . . have all but taken over control of a substantial portion of those anodes not ac- tually pinned down for specific uses by defense priority ratings.” (4) “The value of nickel anodes has enhanced to the point where reports from the Chicago area ... in- dicate that since Jan. 1 there have been 30 hijackings or warehouse thefts of nickel anodes by racketeers.” Small users of nickel are bearing disproportionate burden of nickel shortage, report holds, quoting from rec- ords of an alleged gray marketeer and testimony by GE small appliance division material manager George A. Wil- liams to indicate that large firms such as GE are getting this nickel — principally because they’re the only ones that can afford it. Subcommittee urged immediate “vigorous action” by OPS, NPA, Justice Dept, and Internal Revenue to nip racket in bud. 11 - Financial & Trade Notes: Profits of lo top TV-radio and electronics firms are subjected to scrutiny of lUE-CIO in officers’ report to this week’s Buffalo convention, with observation that their “enormous rate of return compares with 5% to 6% a year usual on preferred stocks, 3% on govt, bonds, and 2% on savings accounts.” Compared with wages, report said, profits between first quarter 1950 and first quarter 1951 jumped $200,000,000, or 92%, while wages increased $162,000,000, or 39%, most of wage in- crease due to 25% increase in workers. Electrical industry ranked 12th in profitability among 24 key industries in 1949, jumped to first by fourth quarter 1950 with return of 25.2%, said report. But in firet quar- ter 1951 stockholders’ returns had declined to 18.4% — in second place after rubber. Percentages of stockholders’ profits were listed as follows: Adrnii'al 101.9%, Motorola 74.6, RCA 32.2, GE 28.1, Philco 26.9, Emerson 26.7, Rem- ington Rand 22.3, Sperry 19.6, Sylvania 19.1, Westing- house 17.6. * * * * Aerovox sales for 6 months ended June 30 were $11,855,000 compared to $10,828,000 same 1950 period, pres- ident Wm. Owen reported to stockholders Sept. 15. Net earnings after all taxes were $500,178, or 704 a share on the 700,000 shares of common outstanding. Backlog of govt, orders continues to rise, he stated, and monthly ship- ments are holding fairly steady despite lack of TV busi- ness. TV slump has continued, Mr. Owen states, with “no real pickup as yet [but] some indications that there will be later this fall.” Short interest in TV-radio and related stocks on New York Stock Exchange showed these changes between Aug. 15 & Sept. 14, NYSE reported this week: Admiral, 35,586 shares on Aug. 15 to 33,492 on Sept. 14j Avco, 21,080 to 23,280; Emerson, 5848 to 5692; GE, 10,725 to 11,995; IT&T, 22,714 to 21,100; Magnavox, 15,623 to 13,190; Motorola, 15,332 to 15,603; Philco, 18,793 to 15,547; RCA, 31,896 to 34,860; United Paramount Theatres, 7895 to 8815; Zenith, 26,197 to 21,336. Dividends: Motorola, 50^ payable Oct. 15 to holders of record Sept. 28; Sparks-Withington, 10^ payable Oct. 10 to holders Sept. 27 (paid 204 in Feb., 10^ in 1950); IT&T, 154 payable Oct. 17 to holder’s Sept. 21; Corning Glass, 254 payable Sept. 29 to holders Sept. 22; Cornell- Dubilier, lOd (special) payable Sept. 28 to holders Sept. 21; Packard-Bcll, 25^ payable Oct. 25 to holders Oct. 10. * * * * Financial Miscellany: Cornell-Dubilier net will run close to $4.50 per share this year, compared with $3.96 last year, according to financial circles quoted in Wall Street Journal . . . Dominion Electrohome Industries Ltd. (Can- ada) reports net profit of $93,980 (94(f a share) for year- ended April 30, against $81,912 (82^ preceding year . . . I-T-E Circuit Breaker Co., says SEC report, earned net of $864,721 ($3.25 a share) fir-st 6 months of 1950 on net sales of $21,149,098 . . . Additional changes in holdings of securities of their own corporations (Vol. 7:36) have been reported to N. Y. Stock Exchange as follows under regula- tions of SEC: D. S. Lenfesty sold 1200 shares Arvin indus- tries, decreasing direct holdings to 1500; Richard E. Laux sold 1500 shares General Instrument Corp. in August, de- creasing direct holdings to 100 . . . Hoffman Radio obtains regulation V-loan from Bank of America providing credits up to $6,500,000 to finance govt, contracts which president Leslie Hoffman says “presently total $60,000,000.” Britain’s Radio Industry Council reports $28,547,000 worth of radio exports first 6 months of this year, 39.4% more than same period last year and 5 times value of highest full pre-war year. Military recruiting services plan no regpilar TV spon- sorships in fiscal 1952, though they may buy some spots. Pentagon recruiting officers claim “surveys show other media, like radio and newspapers, serve our purposes bet- ter than TV because of high TV rates.” In recent testi- mony before Senate Appropriations Committee, Army spokesman Col. W. G. Caldwell reported that Army-Air Force in fiscal 1951 spent $260,000 for TV, $690,000 for radio, out of $5,300,000 ad budget. For each military dol- lar spent, he said, stations donated $10-$20. Navy-Marines don’t buy time. Army-Air Force 1952 ad budget is $2,100,- 000, with $850,000 earmarked for radio and following al- ready allocated: $434,000, Frankie Lane Band (CBS, 37 weeks) ; $254,000, Bill Stern Sportscast (NBC, 26 weeks) ; $81,000, Game of the Week (ABC, 7 college football games) ; $50,000, Big Inning (Liberty, 48 broadcasts). NBC Spot Sales ad in trade press this week, cap- tioned “Why your next 500-line ad should be on Television,” notes that TV set circulation surpasses that of leading newspapers in nation’s major markets: New York, 2,455,- 000 TVs as of Aug. 1 vs. leading paper’s 2,197,518 circulation as of March 31; Los Angeles, 1,003,000 vs. 393,595; Chicago, 942,000 vs. 917,000; Philadelphia, 874,- 000 vs. 711,396; Boston, 754,000 vs. 565,641; Cleveland, 486,000 vs. 304,104; Washington, 278,000 vs. 265,684; Schenectady-Albany-Troy, 161,000 vs. 142,003 (3 papers). Ad also cites Hofstra study (Vol. 7:24), showing average family head, both TV-owners and non-owners, spends 49% more time watching TV than reading newspapers, TV- owning family heads spending 187% more on TV. Planning to tap transcontinental TV circuit, 9 Denver area theatres have ordered General Precision Laboratory projection equipment, according to National Theatre Sup- ply Co., GPL distributor. First installation is planned in John Wolfberg’s Broadway Theatre (Vol. 7:37) in time for World Series. Trad TV has announced new direct projection theatre-TV system to sell for $7500. New unit, called Tx’adiovision, was used in St. James Theatre, Asbury Park, N. J., to receive last week’s Robinson-Turpin bout. Paramount says it’s turning out its intermediate-film theatre-TV units at rate of 10 a month, has designated Century Projector Corp. as sole sales agent. NARTB baseball committee to serve as industry liaison with major and minor leagues was named last week by president Harold E. Fellows and includes these TV mem- bers: James Hanrahan, WEWS; Leslie C. Johnson, WHBF-TV; Clair R. McCollough, WGAL-TV & WDEL-TV; Lee B. Wailes, Fort Industry (WJBK-TV, WSPD-TV, WAGA-TV); Carleton D. Smith, NBC-TV; Otto Brandt, KING-TV. Radio members: Merrill Lindsay, WSOY, Decatur, 111.; Paul Jonas, MBS; R. Sanford Guyei-, WBTM, Danville, Va.; Harry McTigue, WINN, Louisville; Wm. B. McGrath, WHDH, Boston; Hugh Boice, WEMP, Milwaukee. “Is Hollywood Through?” titles article by producer Samuel Goldwyn in current Collier’s, in which he admits TV has hurt movies and will hurt even more. But he fore- casts emergence of stronger, healthier and more profitable movie industry as it meets competition with better prod- ucts, and sees “no reason whatsoever for hauling out the crying towel for Hollywood.” Slump of “close to a quarter of a billion dollars” from the $1.5 billion public paid each year in 1946-47-48, he attributed not solely to TV but also to rising cost of living, too many bad pictures, etc. More Sept 1 sets-in-use reported since NBC Research’s “census” of Aug. 1 (Vol. 7:35) : Boston 766, 492, up 12,492; St. Louis 306,000, up 6000; Baltimore 313,889, up 5889; Kansas City 132,784, up 5784; Syracuse 129,276, up 3276; Washington 281,125, up 3125; Johnstown 107,000, up 3000; Ames (Des Moines) 62,903, up 1903; New Orleans 61,231, up 1731; Milwaukee 257,607, up 6607. 12 - Telecasting Notes: Ever-increasing number of top-name shows will be telecast “live” from Hollywood — though nothing like enough to rank that film center anywhere near New York as TV capital — after transcontinental TV circuits open for regular schedules (Vol. 7:35) . . . Coast- to-coast hookup was to be opened up part time Sun., Sept. 23, for Ed Sullivan’s noon-to-midnight marathon, with big- name stars, on behalf of Crusade for Freedom — actually the first direct pickups from Hollyv'ood and first use of transcontinental circuits for entertainment . . . Networks have divided time on single circuit available each way, which open at 11 p.m. Fri., Sept. 28, though big shows be- gin next night — NBC-TV piping its 8-11 p.m. All-Star Revue, Show of Shoivs & Hit Parade all the way . . . ABC- TV’s “first” to go transcontinental will be Goodyear’s Paul Whiteman Revue Sun., Sept. 30 . . . CBS-TV’s “first” is Lucky Strike’s This Is Show Business same night . . . From West to East, Colgate Comedy Hour picks up Eddie Cantor Sun., Sept. 30, on NBC-TV ; American Vitamin’s Frosty Frolics starts Wed., Oct. 3, on ABC-TV; Carnation’s Burns & Allen starts Thu., Oct. 4, on CBS-TV . . . Oldsmobile’s CBS-TV News with Douglas Edwards goes transconti- nental Oct. 1 on Mon.-thru-Fri. basis, his regular 7 :30- 7:45 show being completely rewritten for 8-8:15 p.m. PST (11-11:15 EST) transmission to Coast . . . First Eastern telecast of West Coast football is scheduled for Dec. 1 when Notre Dame-U of Southeim California game in Los Angeles is carried from Los Angeles via NBC-TV; sponsor is West- inghouse, but game is separate from its NCAA schedule (Vol. 7:36). Gillette sponsors Rose Bowl game on NBC-TV Jan. 1 . . . Pan American Television Corp., 127 So. Broad- way, Los Angeles, offering some 1000 Spanish-language feature films to Latin American stations — president Frank Fouce, Los Angeles theatreman, estimating after return from trip there will be 36 stations operating in Central & South America within year . . . WTCN & WTCN-TV, Minneapolis, 50% owned by St. Paul Dispatch and Pioneer Press (Ridder), has purchased 45% interest in WEMP, Milwaukee, with Milwaukee theatreman Andrew Spheeris acquiring 4.5%, new stockholders agreeing to supply up to 8200,000 for TV if WEMP gets grant; ex-Sen. Robert M. LaFollette and attorney Glenn D. Roberts remain in con- trol of WEMP . . . UAW-CIO adds its voice to that of Assn, for Advancement of Colored People in protesting Amos ’n’ Andy show on CBS-TV, wiring Blatz Sept. 20 to stop sponsorship because of alleged unfair portrayals of Negro race . . . WXEL, Cleveland, has leased downtown Esquire Theatre for conversion into studio-theatre . . . WGN-TV, Chicago, has completed new 250-ft. antenna near Roselle, 111., will have Truscon tower ready for test trans- missions Oct. 15 . . . WNHC-TV, New Haven, raises base hour rate as of Oct. 1 from $600 to $660, one-min. from $120 to $132 . . . KEYL, San Antonio, raises base hour rate Oct. 1 from $300 to $400, one-min. from $45 to $65. “Foot in the door” is how WEEU, Reading, Pa., char- acterizes application of WHUM, Reading, to build uhf ex- perimental station to radiate 200 kw from 1000-ft. tower (Vol. 7:33). In petitioning FCC Sept. 20 to deny or set application for hearing, WEEU contends that WHUM: (1) Doesn’t have, and may not get, the $500,000 it pro- poses to spend. (2) Won’t be doing anything of value to the art. (3) Misrepresented its ownership. (4) Would violate FCC’s freeze policy. “Now that we are on the very eve of the ‘freeze lifting,’ ” says WEEU, “it is an insult to one’s intelligence to believe that WHUM intends to ‘experiment’ for the good of the industry at this late date.” Last week, NPA created stir by announcing grant of steel for construction of the station (see p. 3). Comr. Frieda Hennock’s nomination to New York Fed- eral judgship finally goes to hearing before closed session of Senate Judiciary Committee Thursday, Sept. 27. Outlook for excess profits tax relief accorded tele- casters (Vol. 7:37) in Senate committee’s version cf House- passed revenue bill (H.R. 4475) continued good this week. Bill goes to Senate vote next week, then to conference. Though Senators O’Mahoney (D-Wyo.) and Humphrey (D-Minn.) are seeking to boost corporate tax'^s and EPT, latter says he recognizes TV has special problems, plans no amendments to knock out EPT relief. Sen. O’Mahoney took a few swipes at profits of telecasters this week, but he hasn’t yet proposed any amendments, and there’s no indication of other opposition. TV Broadcasters Tax Com- mittee sent all stations letter Sept. 21 explaining EPT provisions and probable effects. Sponsorships of 1952 political conventions in Chicago look certain, though final decisions must yet be made by both Republican and Democratic national committees be- fore networks are given formal go-ahead (Vol. 7:28,30, 32). It’s estimated TV-radio coverage will cost networks anywhere from $5,000,000 to $7,000,000. Publicity depart- ments of parties right now are talking about spending about $1,000,000 each on TV-radio during campaign itself, j as against the $700,000 Democrats spent in 1948 (only $15,000 for TV), $650,000 GOP (none for TV). “Code” for sponsorship has been drawn up — “looks good,” says Democratic TV-radio director Kenneth Fry — and will be basis on which networks can sell time. FCC reaflSrmed approval of Atlanta deal, authorizing transfer of WSB-TV’s Channel 8 to new local group while Gov. Cox’s Atlanta Newspapers Inc. (Journal and Consti- tution) take over WCON-TV’s Channel 2 (Vol. 7:32-33, 35). Comrs. Coy, Hyde & Hennock did not participate in decision (FCC Public Notice 51-949). Georgia’s Congres- sional delegation had asked for hearing. Unless there’s court appeal by either WGST or E. D. Rivers Jr. (WEAS, Decatur), who protested grant, new Broadcasting Inc., which paid $525,000 for WCON-TV facilities, plans to put station into commercial operation Oct. 1 as nation’s 108th, using call letters WLTV, with William T. Lane as manager. Sale of WLAV-TV, Grand Rapids, to Harry M. Bitner group (Vol. 7:19) was approved by FCC Sept. 19, and formal transfer takes place within 30 days. Call letters will be changed to WOOD-TV, purchasing group being operator of NBC radio outlet WOOD in same city. Seller Leonard Versluis retains WLAV, local ABC radio outlet. New manager will be Willard Schroeder, who also man- ages WOOD. New rep will be Katz. Channel 7 station was sold last May for net of $1,382,086. ! First requests for oral presentation, in lieu of written, * during FCC’s continuing “paper” TV allocations hearing, are due Oct. 1. Cornell U (WHCU), Ithaca, N. Y., has already asked for oral presentation to back its proposal to * add Channel 3 to Ithaca; it’s the first. Most hearing parties are standing by, waiting for FCC’s first decision on matter, ready to say “me too” in event of favorable action. To date, 449 statements have been filed in hear- ing, 102 of them this week. Nov. 26 is last filing date. Sylvania got experimental uhf grant this week to op- erate on 509-529 me and 870-890 me in Emporium, Pa. with call letters KG2XDU (Vol. 7:9). But FCC denied request j to use vhf Channel 7 there and to rebroadcast programs j of WJAC-TV, Johnstown. Station will be remotely-con- trolled, carry test patterns and monoscopes, be used for I testing tubes, circuits, propagation. j Two applications for new TV stations this week — by ! Quincy (111.) Herald-Whig’ s WGEM for Channel 10 and 1 by KIEM, Eureka, Cal., for Channel 3 — brought total ! pending to 442. [For details about these applications, see - TV Addenda 13-K herewith; for complete listing of all applicants, see TV Faetbook No. 13 and Addenda to date.] i MARTIN CODEL's PUBLISHED WEEKLY BY RADIO NEWS BUREAU, 1519 CONNECTICUT AVE. N.W., WASHINGTON 6, D.C. TELEPHONE MICHIGAN 2020 • VOL. 7. «IO. 39 September 29, 1951 In this Issue: Cross-Country TV — and 108th Station, page 1. Count of TV Sets-in-Use as of Sept. 1, page 5. Theatre Owners Gird for Challenge of TV, page 1. Network TV-Radio Billings, Jan. -Aug., page 5. More Magic on Electronics Horizon, page 3. Sets Moving, Shortages Again Foreseen, page 11. Transistor’s Potential for TV-Radio? page J. Still More Copper- Aluminum Cuts Loom, page 12. Color Report: CBS Sets and Grid Schedule — RCA Washington Showings — Paramount’s Tube, pages 8-9. CROSS-COUNTRY TY-AND 108ih STATION: Not much fanfare surrounded formal opening at week's end of 2-way transcontinental network TV circuits on regular day-by-day basis — partly because edge was taken off news by the Japanese peace treaty telecasts (Vol. 7:36), mainly because so few shows are as yet scheduled to be piped via the new microwave links either westward beyond Omaha or eastward from the Pacific Coast. Fact is no sponsor ordered circuits for official opening day Sept. 28, and only a few were booked for Sat. & Sun., Sept. 29-30 (Vol. 7:38). Though 2000-mile "line haul" from Omaha to Los Angeles via San Francisco adds contract cost of only 10(zi per mile per half hour ($200), sponsors are slow to expand their network shows because of added station time costs for Salt Lake City, San Francisco, Los Angeles, San Diego, the only new cities made available; and, more particularly, because 3-hour time differential means top shows staged at 8 or 9 p.m. in East must be seen in West at not-so-f avorable 5 or 6 p.m. PST. But end-of-month is another landmark for TV. It marks recrudescence of set sales everywhere (see p. 11), and the beginning of "national service" coincides with World Series, football, and "at home" season's usual lineup of super-dooper shows. As if to point up paralyzing effect of FCC's new-station freeze, this Sun- day, Sept. 30, is third anniversary of that technically-induced stymie. Freeze in- tended to last mere few months, now looks like it will go well into its fifth year (1953) before any appreciable number of new stations can be had (Vol. 7:37). But we get 108th station on Sept. 30, at least. It's day Atlanta's WLTV goes into regular operation, first since Sept. 30, 1950, when Nashville's WSM-TV went on air as last pre-freeze grantee to fulfill terms of construction permit. That left only one CP outstanding — for Atlanta Constitution's WCON-TV. That newspaper merged with Atlanta Journal, already operating WSB-TV, so one outlet had to be dropped. Deal with local purchasers got FCC approval (Vol. 7:38), WSB-TV to assume CP holder's Channel 2 and the new WLTV taking over WSB-TV 's Channel 8. WLTV thus is Atlanta's third, nation's 108th station — unless you count as the 108th XELD-TV, Matamoros, Mexico, opposite Brownsville, Tex. (Vol. 7:31), which got under way a bit earlier and which to all intents and purposes is an American program outlet, covering U.S. audience, operating in traditional American pattern. THEATRE OWNERS GIRD FOR CHALLENGE OF TV: Theatre owners have big plans for TV — now convinced, much sooner than were the newspapers after radio hove onto the scene, that "if we can't lick 'em, we must join 'em." First shock of TV's admitted inroads on boxoffice has been followed by calm resolution to "take the offensive" by way of: (1) Better pictures — promised by Hollywood, to draw TV owners out of their living rooms and into the theatres. (2) Theatre TV — entertainment and "stage show" features as well as sports and public events to bring to the movie show the timeliness and on-the-spot aspects Copyright 1951 by Radio News Bureau of the home TV set. (FCC, incidentally, this week postponed all-important hearing on theatre-TV frequencies from Nov. 26 to Feb. 25, 1952.) (3) TV stations of their own — theatre owners, as pillars of their local communities with their experience in "bringing visual entertainment to Main St.," to apply for local outlets. (4) Use TV for promotion — as potent ad medium to hypo theatre attendance. * * I TV was omnipotent influence, primary topic of discussion, at this week's New York convention of powerful Theatre Owners of America. In the debates, speeches and reports, it was made clear that rank-and-file theatre owners don't intend to board up their houses and start selling TV sets along with candy, popcorn and soft drinks. Their determination now is to hold the reins if and when electronics takes over the entertainment field. And importance they attach to TV was evidenced by the election of Mitchell Wolfson as TOA's new president. He's not only head of Florida's Wometco theatre chain but also owns WTVJ, Miami, one of the 3 (out of nation's 108) TV stations ov/ned by theatre people — others being Utica's WKTV and Chicago's WBKB. Report of Wolfson' s TV committee, officially adopted by convention, urged theatre owners to "embrace" TV, which was described as "just another way of doing what you have always been doing — presenting live pictures for entertainment." | Report stressed that "the 2 media can survive and prosper together," and strongly j backed theatre ownership of telecasting stations and advertising of movies via TV. j * * ❖ * I Theatre TV was perhaps liveliest topic at convention and trade show — where , displays by 4 manufacturers were among most popular exhibits. TV committee urged j theatre owners to "take a long look at theatre TV, and adopt this splendid medium." But theatre people realize they have tough public relations problem as re- sult of agitation following exclusive theatre prizefights (Vol. 7:38). Convention delegates were told how to answer the accusations of irate set-owning sport fans. "We're not taking anything away from anybody," is their argument. Instead, theatre TV is providing "added service" by presenting "events which the American people wouldn't otherwise see." Discussion came on eve of latest in series of theatre-TV fight triumphs — lightweight champion Sandy Saddler's massacre of Willie Pep, viewed by capacity crowds in 17 theatres in 13 cities Sept. 26. I But blackout of home TV-radio failed to hypo attendance at Polo Grounds ' bout. Scant 12,000 fans showed up — far cry from crowd of more than 60,000 which j filled same arena 2 weeks earlier for Robinson- Turpin match. ^ I Sporting events are only a starter for theatre TV, president Nathan Halpern of Theatre Network TV Inc, told convention. TNT's preoccupation with the boxing ring, he said, is only because sports are relatively easy to produce and most prac- tical for present limited number of TV-equipped theatres. TNT will test "various entertainment features" as soon as there are enough theatre installations to make it practical, Halpern promised. Trade press reports say Hollywood's Motion Picture Assn, is mulling proposal by TNT to pipe the annual Academy Award ceremonies to some 150 theatres next March. Theatres which carried first 5 televised prizefights (up to and including Robinson- Turpin) are "near the break-even point," according to Halpern. Some, he added, actually made profit on fights. Combined theatre attendance for first 5 bouts was 142,616, out of combined capacity of 145,180 seats (Joe Louis-Jimmy Bivins bout . being only poor drawing card), with estimated turn-away of 150,000 fans or more. Some 28 theatres in 17 cities are now TV-equipped, Halpern said, and manu- facturers report about 200 firm orders. [For details about theatre-TV equipment, prices, manufacturers, etc., see p. 10.] * ^ * This formula for theatre-TV success was postulated by TOA board chairman Charles P. Skouras, president of Los Angeles' National Theatres chain: (1) Theatre- | - 5 - TV proponents must produce own shows, sponsor own sports, etc. (2) All theatre telecasts must be in color. (3) Theatre TV must be regularly scheduled event, and should supplement films in same manner as stage shows and vaudeville. RCA will show 9xl2-ft. color theatre TV in New York soon (see p. 8). MORE MAGIC ON ELECTRONICS HORIZON: RCA has 5 intriguing new electronics projects among its goals for next 5 years — 2 in TV, one in home appliance field — set up by chairman David Sarnoff as he celebrated his 45th year in radio. Gen. Sarnoff offered the "challenges” to his scientists, engineers and exec- utives during Sept. 27 ceremonies at RCA Princeton Laboratories, rechristened the "David Sarnoff Research Center. " The projects; (1) "Magnalux" — an amplifier of light. "A true photo-amplifier that could produce bigger and brighter pictures in fine detail would greatly advance TV in the home. It is also needed for theatres and industrial purposes. The presently known optical systems cannot accomplish it. We can, of course, enlarge pictures optically, but in the process light is lost and the pictures become dimmer." (2) "Videograph" — TV tape recorder. "Today when a TV program is recorded, the pictures pass from the camera through a major portion of the TV system and first reproduce the picture on the face of a kinescope. Another and special camera placed in front of the kinescope photographs the program on motion picture film. But that technique is costly, time-consuming and limited. The pictures pass through all the possible hazards of the TV system, and then through all the photographic process with its possible degradations. .. The Videograph would be a new instrument that could reproduce TV programs from tape at any time, in the home or elsewhere, in much the same way as the present phonograph reproduces music..." (3) "Electronair" — home air-conditioner. "You have succeeded in throwing away the spinning wheels in TV, and I am sure you will also succeed in discarding the wheels and noise in air-conditioners." Perfection of these devices would be unquestionable boon. TV industry has been chipping away at first 2 v;ith little success — early TV's complex magnifying mirrors and lenses for projection pictures having proved a commercial bust. Problem of tape recorder is how to get away from conventional techniques which would require tapes of tremendous widths traveling at fantastic speeds. An electronic air-conditioner could conceivably give RCA edge in field it entered just this week, after moving towards it for some time under president Frank Folsom, whose forte is merchandising (Vol. 7:27). Through arrangement with Fedders- Quigan Corp. , Buffalo, it will offer "RCA Victor" brand air-conditioners beginning January, 1952. Yet unpriced, they'll be window-type, 1/3, 1/2 & 3/4 hp. Though Gen. Sarnoff mentioned no other home appliance projects in speech, engineers may well come up with host of imaginable new devices — such as electronic refrigerators , cook stoves, furnaces , etc. Gen. Sarnoff was also fascinated by electronics in solids — semi-conductors such as germanium — now finding exciting employment in the transistor (see p. 4). He anticipated wedding of atomic and electronic sciences; "Your brother scientists working in nuclear physics in our Laboratories have successfully derived electrical voltages from radioactive materials. This achievement — still in its initial stages — holds tremendous promise for the future." Essentiality of electronics to the military was epitomized by Sarnoff 's statement that RCA's 4000-tube electronic computer "Typhoon" has saved Govt. $250,- 000,000 and years of time by simulating nearly 1000 test runs of guided missiles in last 10 months — "before the missiles were actually built and flown." Note ; Exactly 45 years ago. Sept. 30, 1906, immigrant boy Sarnoff went to work as messenger for Marconi Wireless. This week. President Truman was among those who sent congratulations "on your 45 years of great achievements in the field of radio, television and electronics." The President's wire continued; "Through your leadership in American industrial life and in science you have contributed immensely to the growth of America and its pre-eminence in communications...! extend to you and your staff of scientists my warm good wishes for continued progress." 4 TRANSISTOR'S POTENTIAL FOR TV-RADIO? The tiny transistor has titillated imaginations of electronics engineers ever since Bell Labs announced its development 3 years ago — but prospects of its direct use in TV & radio receivers seem slim for some time. Yet the amazing substitute for the vacuum tube could find TV-radio use sooner than most think. Says Dr. Ralph Bown, Bell Labs research director; "It now operates at video frequencies. I wouldn't say it won't be used for TV, not at all." Transistor's potential in electronics seems breath-taking, but TV manufac- turers aren't holding their breaths over it. Everyone's excited about it. but most common expression heard is: "It's where vacuum tubes were 20 years ago." And many set makers remember how the great hopes for printed circuits in TV failed to materi- alize (Vol. 2:46). Printed circuits have scarcely been used in TV sets. Transistor is a tiny speck of germanium touched by 2 or 3 "catwhisker" wires and imbedded in bead of plastic. It can replace tubes for number of purposes. August Scientific American gives glowing report on device by Prof. Louis H. Ridenour, dean of U of Illinois' graduate school, currently on leave as chief scien- tist of Air Force. Conservative Bell Labs finds article a little too glowing, but here are advantages over conventional vacuiam tubes cited by Prof. Ridenour: (1) Power requirements; It may use one-millionth the power required by tube for same job. (2) Size ; 2/1000-cu. in., compared with %-cu. in. for the smallest subminiature tube. (3) Reliability ; Theoretically, its life should be indefinite; early transistors have run 70,000 hours, several times as long as many vacuum tubes. (4) Lack of heat ; Transistor produces almost none. (5) Resistance to shock and acceleration ; Being solid unit, transistor stands tremendous impact. Electronic devices just begging for those characteristics are innumerable : undersea & underground cables with built-in amplifiers which need never be touched ; tiny, trouble-free airborne transmitter-receivers ; almost infallible new proximity fuses ; computers with hundred-times present complexity and a fraction of present breakdowns ; and whole communications systems with negligible maintenance problems. Electronics editor Donald Fink envisions hearing aid with entire unit, battery and all, completely concealed in ear — with battery life increased many fold. Advantages for TV sets are obvious; smaller, lighter, cheaper, more reli- able. And, because of low power drain, truly portable battery set may be near. Asked if shortage of nickel for tubes might not hasten wider use of transis- tors, Dr. Bown said; "There are so many forces hastening it now that I don't think that would make any difference." Is supply of germanium adequate? "I know of no shortage in sight," he said. Eagle-Picher Co. produces almost all germanium, as zinc byproduct. Though cost seems very high, 57d a gram, speck needed in each transistor is so small that its cost is estimated at 5d per transistor. Germanium production in 1951 is estimated at 5-6000 lbs., with 15,000-lb. potential in all-out emergency. NPA says there's no shortage, but no surplus, either. Germanium is listed under materials "in approximate balance with essential demand." PeiSOnsl Notes; FCC Comr. Rosel Hyde due back Oct. 6 from vacation in home state of Idhho . . . Leslie Harris, NBC radio program director, joins Colgate-Palmolive-Peet Oct. 15 as director of TV-radio . . . Tom McAvity, ex- Famous Artists, recently CBS, named NBC-TV director of talent-program procurement, succeeding Carl M. Stanton, now director of commercial program planning . . . V/illiam B. Lewis, onetime CBS program v.p., Avartime radio chief of OWI, elected president, Kenyon & Eckhardt, succeed- ing Dwight Mills, chairman . . . Louis Ames named pro- gram mgr., WPIX, New York, succeeding Warren Wade, resigned; Jack F. A. Flynn named administrative asst, to Ames . . . Van Beuren W. deVries promoted to mgr. of TV production, WMAL-TV, Washington . . . D. L. Provost named v.p. & director, Hearst Radio Inc., succeeding late Tom A. Brooks . . . C. Richard Evans, mgr. of KSL & KSL-TV, Salt Lake City, elected v.p. under executive v.p. Ivor Sharp . . . Robert B. Hanna, mgr. of WGY & WRGB, Schenectady, elected president of local Chamber of Com- merce . . . Jack Hill named program-production mgr., WWJ-TV, Detroit, Kirk Knight being promoted to opera- tions mgr. for TV-radio . . . Robert Brunton, ex-NBC, named gen. mgr., P. J. Rotondo Construction Co., de- signers-builders of TV and stage scenery . . . William G. Tice Jr., ex- American Metals Co., joins NBC Oct. 1 as mgr. of personnel, replacing Theodore M. Thompson, recalled to Army duty . . . Harry R. Lubcke, ex-Don Lee TV chief, announces consulting practice in TV engineering and elec- tronics, 2443 Creston Way, Los Angeles . . . Andrew P. Jaeger, DuMont Network film director, has resigned to become v.p. & gen. mgr., Prockter Syndications Inter- national, headed by Paul White and organized to syndicate TV-radio and theatrical film shows. San Francisco schools expect no absenteeism during World Series next week, reports AP, for Supt. Herbert Clish has ordered TV sets placed in classrooms and turned on for games. 5 Count of TV Seis-in-Use by Cities As of September 1, 1951 Estimates are sets within .1 Mv/m contours (60 mi.), excluding overlaps, as established by NBC Research. ONLY some 716,600 TV sets-in-use in 10 areas with 13 stations were still outside the reach of network seiw- i ice when transcontinental relay circuits were first used in early September for coverage of Japanese treaty confer- I ence (Vol. 7:36). Though regular day-by-day 2-way trans- continental service didn’t start until this week end (Sept, j 29), listing below of sets-in-use includes Salt Lake City, 1 San Francisco, Los Angeles, San Diego in “interconnected” ; table for sake of convenience. As of Sept. 1, according to NBC Research’s monthly i “census”, total sets-in-use reached 13,556,000, of which I 12,839,400 in 52 areas (counting St. Paul-Minneapolis as one) ax'e within network scope. Sept. 1 figure is 284,300 more than the 13,271,700 of Aug. 1 (Vol. 7:35), which was only 183,100 above July 1 (Vol. 7:29), which was 319,300 above June 1 (Vol. 7:25) — indicating low summer ebb in set sales is gone and resump- tion of the rise, though not very great yet, began in August. September additions, not compiled until toward end of October, are expected to show bigger increases — very likely will bring national total near 14,000,000. Increases even in the big cities during August weren’t very startling: New York gained 35,000, San Francisco 23,000 (possibly in anticipation of peace conference), Chicago 18,000, Boston 12,000, Los Angeles 9000, Detroit 8000. These are the Sept. 1 figures by areas (consult indi- vidual stations for their estimates of number of families within respective service ranges): No. No. Area Stations Sets Interconnected Cities Ames (Des Moines) 1 62,900 Atlanta 3* 126,000 Baltimore 3 314.000 Binghamton — 1 42,000 Birmingham — 2 63,400 Bloomington, Ind. - 1 17,400 Boston 2 766,000 Buffalo 1 214,000 Charlotte .. .... 1 86,400 Chicago 4 960,000 Cincinnati 3 269,000 Cleveland 3 494,000 Columbus 3 156,000 Davenport- Rock Island ... 2 62,300 Dayton 2 136,000 Detroit 3 534.000 Erie 1 51,500 Grand Rapids . 1 79,600 Greensboro 1 73,900 Huntington — 1 50,600 Indianapolis ... 1 154,000 Jacksonville 1 38,800 Johnstown 1 107,000 Kalamazoo 1 44,500 Kansas City — 1 133,000 Lancaster 1 109,000 Lansing 1 60,000 Los Angeles 7 1,012.000 Louisville 2 97,500 Memphis . 1 93,200 Milwaukee 1 258,000 Mlnneapolls- St. Paul 2 273,000 Nashville 1 37,000 New Haven .. : 1 177,000 New York 7 2,490,000 No. No. Area Stations Sets Interconnected Cities- — (Coni’ d) Norfolk 1 75,300 Omaha . 2 82,700 Philadelphia 3 883,000 Pittsburgh 1 312,000 Providence 1 162,000 Richmond 1 87,100 Rochester 1 88,100 Salt Lake City_ 2 51,500 San Diego 1 105,000 San Francisco .. 3 233,000 Schenectady 1 166,000 St. Louis 1 306,000 Syracuse 2 129,000 Toledo 1 107,000 Utica . 1 50,000 Washington 4 281,000 Wilmington 1 77,700 Total Inter- connected 95 12,839,400 N on-interconnected Cities Albuquerque 1 9,600 (Dallas 2 130,000 )Fort Worth 1 Houston 1 88,400 Miami - 1 76,000 New Orleans . .. 1 61,200 Oklahoma City.. 1 92,300 Phoenix 1 38,600 San Antonio . . 2 50,400 Seattle 1 92,600 Tulsa 1 77,500 Total Non-Inter- connected . 13 716,600 Total Interconnected and Non-Inter- connected 108 13,556,000 * Third Atlanta station, WLTV, goes on air as of Sept. 30 (see story this Issue). Note: TV sets sold In Canada totaled 58,216 up to July 31, 1951, according to Canadian RTMA (Vol. 7:37). Since Canada has no stations of Its own and nearly all of these sets are In border areas, they add appreciably to audiences of stations In nearby U. S. cities. The CRTMA area count as of last July 31; Windsor, 24,768; Toronto- Hamllton, 20,712; Niagara Peninsula, 9644; other areas, 3092. Nielsen gives President Truman’s speech at Japanese treaty conference in San Francisco Sept. 4, carried by 94 stations in 52 of nation’s 62 TV areas and thus available to Network TV-Radio Billings August 1951 and January-August 1951 (For July report, see Television Digest, Vol. 7:34) NETV/ORK tv billings didn’t quite catch up to net- work radio billings in August, despite prediction from NBC sources that they would (Vol. 7:36) — but there’s little doubt about trend. August TV gross billings of combined networks totaled $9,302,071, as against not quite $9,000,000 in July (Vol. 7:34) and more than quadruple figure for August 1950. For 8 months Jan.-thru- Aug., total was $73,459,488. Network radio billings totalled $11,804,161 in August, slightly ahead of July but down from $12,558,825 in August 1950. Cumulative network radio for first 8 months was $119,051,340 vs. $121,790,724 for same 1950 period. NBC & CBS showed increases over July, and only MBS showed increases over August 1950. The Publishers Information Bureau figures: NETWORK TELEVISION August August Jan. -Aug. Jan.-Aug. 1951 1950 1951 1950 CBS . $ 3,734,551 $ 354,524 $ 24,238,538 $ 5,339,826 NBC .. 3,359,856 1,242,276 33,577,340 9,684,755 ABC .. 1,444,593 265,421 11,174,614 2,402,902 DuMont 763,071 * 4,468,996 * Total $ 9,302,071 $ 1,862,221 $ 73,459,488 $ 17,427,483 NETWORK RADIO CBS . $ 4,455,528 $ 4,644,066 $ 48,106,085 $ 45,218,878 NBC .. 3,808,906 4,566,293 37,537,629 41,931,767 ABC . 2,210,352 2,258,244 21,870,502 23,999,013 MBS — .. 1,329,375 1,090,222 11,537,124 10,641,066 Total ..$11,804,161 $12,558,825 $119,051,340 $121,790,724 * Figures for 1950 not available. i(s 4: 4: Following are network TV and radio figures for Jan- uary thru July, asterisks indicating revisions from pre- viously reported PIB figures: NETWORK TELEVISION 1951 ABC CBS DuM NBC Total Jan. $1,328,719* $2,601,165* $ 435,527 $4,187,222 $ 8,552,633 Feb. 1,254,851 2,600,339 406,079 3,949,360 8,210,629 March 1,539,470* 2,993,902 457,811 4,654,063* 9,645,246 April 1,432,319* 2,906,891* 574,025 4,758,309 9,671,544 May 1,385,901 3,066,249 622,646* 4,946,338 10,021,134 June 1,437,593* 2,900,782 564,478 4,244,240 9,147,093 July 1,351,168* 3,434,659 645,359 3,477,952* 8,909,138 NETWORK RADIO 1951 ABC CBS MBS NBC Total Jan. $3,099,418* $6,849,462* $1,542,887 $5,215,947 $16,707,714 Feb. 2,702,721* 6,111,346* 1,426,705 4,731,626 14,972,398 March 2,891,339 6,808,938* 1,648,006 5,085,636 16,433,919 April 2,980,183* 6,502,009* 1,539,801 4,897,882 15,919,875 May 2,996,143* 6,760,750* 1,510,818 5,329,752 16,597,463 June 2,720,268 6,216,255* 1,191,691 4,739,193 14,867,407 July 2,270,078* 4,401,797 1,347,841 3,728,637* 11,748,403 Note: These figures do not represent actual revenues to the net- works, which do not supply them. They’re compiled by PIB on basis of one-time network rates, or before frequency or cash dis- counts. Therefore, in terms of dollars actually paid to networks they may be inflated by as much as 40%. Figures are accepted by networks themselves, however, and by the industry generally, as a satisfactory index of comparisons and trends. Salary stabilization in telecasting and other entertain- ment fields will be discussed in closed conferences begin- ning Oct. 22 in New York by Salary Stabilization Board’s 3-man talent committee (Vol. 7:35). The committee — Roy F. Hendrickson, chairman, Philip F. Siff, Neal Agnew — wants witnesses to offer ideas on how entertainers’ pay may be stabilized on self -administering basis. Those who want to testify should apply to J oseph D. Cooper, executive director, SSB, room 1042, Federal Security Bldg. South, Washington 25. NBC-TV now syndicating to stations daily 71^ -min. newsreel on 16mm film, also weekly sportsreel, both fully scored with words and sound — thus going into direct com- petition with recent UP-20th Century-Fox and INS news- reel services. Service is headed by Francis C. McCall, 94.7% of audience, a rating of 50.5% or 6,348,000 homes. director of TV news and special events. Network Accounts: Curtis Publishing Co. (Saturday Evening Post, Ladies Home Journal, Holiday) Oct. 9 be- gins Martha Rountree-Larry Spivak (Meet the Press) show titled Keep Posted on DuMont, Tue. 8:30-9, thru BBDO . . . Penick & Ford (My-T-Fine desserts) and Corn Products Refining Co. (Mazola oil, Karo syrup, Niagara starch) sign for Thu. 12-12:15 and 12:15-12:30 segments, respectively, of Ruth Lyons 50 Club on NBC-TV, new Mon.-thru-Fri. show starting Oct. 1; agencies are BBDO and C. L. Miller, respectively . . . Rhodes Pharmacal Co. (pharmaceutical products) starts The Clock Oct. 17 on ABC-TV, Wed. 9:30-10, thru O’Neil, Larson & McMahon, Chicago . . . Procter & Gamble (Ivory Snow, Tide, Prell) starts Red Skelton Show from Hollywood Sept. 30 on coast-to-coast NBC-TV, Sun. 10-10:30, thru Benton & Bowles . . . Manhattan Soap Co. (Sweetheart soap) shares alt. week sponsorship with Miles Laboratories (Alka- Seltzer) of One Man’s Family resuming Sept. 22 on NBC- TV, Sat. 7:30-8; agency for Manhattan is new Scheideler, Beck & Werner Inc., N. Y., for Miles it’s Wade Adv., Chicago . . . Billy Graham Evangelistic Assn. Inc. will sponsor Hour of Decision starting Sept. 30 on ABC-TV, Sun. 10-10:30, thru Walter F. Bennett & Co., Chicago . . . Drugstore TV Productions replaces Cavalcade of Bands with Cosmopolitan Theatre Oct. 2 on DuMont, Tue. 9-10, thru Product Adv. Corp., N. Y. . . . Bristol-Myers (Ipana) on Oct. 6 starts sponsorship of 11-11:15 segment of Foodini the Great on ABC-TV, Sat. 11-11:30 a.m. . . . Chesterfield’s sponsorship of Bob Hope starts Oct. 14, rotating with other comics on NBC-TV, Sun. 7-7:30. Station Accounts: Republic Aviation buys 39 one-min. announcements on WABD, New York, to recruit factory personnel, thru Deutsch & Shea, N. Y. . . . Riggs-Warfield- Rolonson Inc., Baltimore insurance firm, sponsoring Plan- ning for Tomorrow on WAAM, Tue. 7:15-7:30 p.ni., pre- senting community leaders with college students discussing careers . . . Wildroot (hair oil) sponsoring Los Angeles’ first regular female disc jockey. Candy McDowell, in Musical Nightcap on KTSL, Tue. & Thu. 11-11:15 p.m., thru BBDO . . . Graybar Electric Co., for Gibson refrigera- tors, sponsoring Wed. & Fri. Billie Burke — at Home on KTTV, Los Angeles, thru Roy S. Durstine Inc. . . . Gaylord Co. (bobby pins) sponsoring Eva Gabor on WJZ-TV, Thu. 7:15-7:30, thru Herschel Z. Deutsch . . . Canada Dry buys Dining Out with Dana (Robert W. Dana, restaurant edi- tor, N. Y. World-Telegram) on WJZ-TV, alt. Tue. 7:15- 7:30 . . . Ideal Novelty & Toy Corp. (dolls), thru Atlantic Adv., and Standard Brands (Royal desserts), thru Ted Bates & Co., have purchased partic. in Magic Cottage on WABD, Mon.-thru-Fri. 6:30-7 . . . Borden Co., already sponsoring T-Men in Action on NBC-TV for its instant coffee, reported planning spot TV, thru Doherty, Clifford & Shenfield, and dropping many local radio shows . . . Stroh Brewing Co.’s sponsoring of 35 Red Wings hockey games on WWJ-TV, Detroit, ran into schedule snag, so only third and final periods will be covered, timed to start 10 p.m., or after network signoffs . . . Market Tire Co. (Fisk tires) on WWJ-TV, Detroit, first local sponsor announced for Football This Week, weekly predictions and films by Nor- man Sper which Station Distributors Inc. reports it has sold to 16 stations . . . Amoco again sponsoring 6 Wash- ington Redskins home games on WMAL-TV . . . Melville Shoe Co. (Thom McAn shoes) sponsoring football high- lights films on WPIX, New Yoi’k . . . Minnesota Mining & Mfg. Co. (Scotch tape) buys Paul Jones’ Football Previews on WLWT, Cincinnati, 15-min. before each Sat. NCAA game, thru BBDO, Minneapolis . . . Among other adver- tisers reported using or planning to use TV : Thornton Canning Co. (Lido tomato paste), thru Roy S. Durstine, N. Y.; Norwich Pharmacal Co. (Teek cherry flavored cough syrup), thru Benton & Bowles, N. Y.; Squire Dingee Co. (Ma Brown preseiwes), thru L. W. Ramsey Co., Chicago; Proctor Electric Co. (appliances), thru John Falkner Arndt & Co., Philadelphia; Doeskin Products Inc. (tissues, nap- kins), thru Federal Adv., N. Y.; J. C. Penney Co. (chain department stores), thru Roy S. Durstine Inc., N. Y.; Universal Co., High Point, N. C. (TV tables & bases), thru Corbin Adv., N. Y.; Diamond State Brewery, Wilmington, Del., thru J. Robert Mendte Inc., Philadelphia; Englander Co. (mattresses & foundations), thru Leo Burnett Co., N. Y. (WNBQ); Reddi-Wip Inc. (w'hipped cream), thru Ruthrauff & Ryan, Chicago; C. B. Drug Co. (C. B. insect spray, aspirin), thru Walter Klein Co., Charlotte. Back into radio after plunges into TV, national adver- tisers are seeking “media balance,” reports Sept. 24 Spon- sor. It cites Quaker Oats and Hudson Pulp & Paper Co. as examples. Quaker dropped 4 AM shows last October in favor of 4 TV shows, this season is keeping latter (at estimated §2,500,000) but “balancing” with $1,500,000 worth of radio. Hudson in fall of 1950 was spending 80% of $600,000 ad budget on spot radio, rest in newspapers; in January, it pulled out of most radio stations and news- papers in favor of CBS-TV Bride & Groom. Last spring, after promotion over 7 remaining radio stations pulled 400,000 replies in day, Hudson reconsidered, upped budget to $750,000 to include pre-TV spot radio schedule plus TV show. Said Quaker public relations director Charles White: “We haven’t lost faith in radio. It’s just that we started last year diverting radio money into TV to . . . exploit TV’s terrific impact. But currently we’ve seem- • ingly reached our saturation point in TV spending, and are ploughing into radio again. We think that radio and TV are both good selling media.” March of Time reports these additional sponsors for Crusade in the Pacific to those listed in Vol. 7:34: WICU, Erie, & WJAC-TV, Johnstown, Pennsylvania Electric Co.; WJZ-TV, New York, & KECA-TV, Los Angeles, Quality Importers Inc. (Welch’s Wine); WHAM-TV, Rochester, Stromberg-Carlson; WBEN-TV, Buffalo, Marine Midland Bank. In addition to 4 stations it previously bought. Miller Brewing Co. (Miller’s High Life) is sponsoring Crusade on WAGA-TV, Atlanta; WBTV, Charlotte; WFAA-TV, Dal- las; WFMY-TV, Greensboro; KMTV, Omaha; KPHO-TV, Phoenix; WHBF-TV, Rock Island; WOAI-TV, San An- tonio; KFMB-TV, San Diego. Sold to station, no sponsor yet reported: KGO-TV, San Francisco; KSL-TV, Salt Lake City; WDAF-TV, Kansas City; WJIM-TV, Lansing; WFBM-TV, Indianapolis; WAFM-TV, Birmingham. Kine-recordings of top network show’s are already go- ing out to U. S. armed forces, edited to eliminate commer- cials. All networks are supplying the 16mm film prints, first of which was American Tobacco Co.’s Assignment Manhunt — NBC-TV’s Frank Lepore, mgr. of TV film & kinescope operations, on Sept. 14 presenting 50 prints of 3 programs. Other shows to be provided: Milton Berle’s Stur Theatre, Your Hit Parade, Faye Emerson’s Wonder- ful Town, Paul Whiteman Revue, Amateur Hour, Amos ’n’ Andy, Roberta Quinlan Show, Hollyivood Screen Test, Suspense, Man Against Crime, Date tvith Judy, Blind Date. Rates are still going up in publication field, too. Time, which on Sept. 10 raised black-&-white page rate from $6200 to $6750, has ordered another hike — to $7350 as of Feb. 2, 1952, which Tide says “may well herald a second round of magazine rate increases.” Life raises rates ap- proximately 6% with issue of March 3, 1952, this coming in wake of 8% boost effective this Sept. 10. Newsweek has stated it will increase rates 5-6% from July 7, 1952. And September Fortune, reporting declining newspaper profits, higher costs of newsprint, says survival of large daily newspapers depends on “sharply higher” ad rates. - 7 - Telecasting Notes: Kate Smith now ties Arthur God- frey as top “commercial personality” on TV-radio net- works, says Variety; she I'epresents $12,000,000 in time- talent billings on NBC, her Wed. night TV show alone (opposite Godfrey’s on CBS-TV) accounting for $4,000,- 000. Variety doesn’t take into account her local partici- pating show on WNBC (radio), Mon.-thru-Fri. 12:05- 12:45, which would put her ahead of Godfrey, who’s sched- uled to add to his revenue when part of his morning radio show is simulcast starting in mid-October . . . Rumors that Walter Winchell was leaving ABC were countered by week- end announcement he has signed lifetime contract with that network covering TV-radio, continuing with Warner-Hud- nut Inc. as sponsor; he’s now said to be highest-paid figure in the field, getting reported $500,000 from sponsor plus 7500 shares of stock vs. $650,000 last year . . . Louis G. Cowan has signed Quiz Kids with CBS for 10 years for reported total $2,500,000 if sponsored, half if sustaining . . . CBS has leased Monroe Theatre, 76th & First Ave., for 5 years; it will be known as TV Studio 61, its stage area of 8100 sq. ft. making it network’s largest New York studio . . . New York’s WJZ-TV (ABC) begins Mon.-thru- Fri. program day at 9:30 a.m. as of Oct. 1 with Ladies Daily, Walter Hexdihy’s “magazine of the air,” followed 9:45-10:45 with Breakfast Theatre, full-length Hollywood movies; rest of early schedule is Kitchen Kapers, 10:45- 11:30; Dennis James Show, ll:30-noon; Frances Lang- ford-Don Ameche Show, 12-1 . . . Louisville Courier-Jour- nal’s WHAS-TV bills itself as “nation’s most powerful TV station” since recent boost to 50 kw (Vol. 7:34), is placing newspaper ads in fringe areas to promote sale of re- ceivers; ad in Lexington Herald-Leader (68 mi.) urges U of Kentucky students there to tune in films of its Sat. grid games at 4 p.m. . . . Los Angeles TV stations scored heavily with audience last week in carrying “little Ke- fauver hearings” as House Un-Ameincan Activities Com- mittee probed communism in Hollywood; though turned down at first by committee, TV enterprisers finally got permission to have cameras in hearing room on pool basis, piped pickups to 5 of city’s stations (all save KNBH & KLAC-TV) . . . Big opening night for Family Theatre, nightly at 11:10 on hookup of WLWT-WLWD-WLWC, to be celebrated in Cincinnati Oct. 1 with Burgess Meredith present for first of first-run pictures to be offered. Story of G.I. Joe, in which he played role of Ernie Pyle . . . Under- written as educational TV project by Alfred P. Sloan Foun- dation, NBC-TV’s American Inventory series starts sec- ond 13-week cycle Sept. 30 (Sun. 1:30 p.m.) with GE|s Dr. Vincent Schaefer on “The Control of Climate” . . . Gillette has agreed with Advertising Council to include one national welfare message in each of its sponsored World Series telecasts (NBC-TV) and broadcasts (MBS), copy by Maxon Inc. . . . WTVJ, Miami, plans an Electronics Museum at base of projected new 500-ft. TV tower to be built on grounds of owner Wometco Theatres’ Boulevard Drive-In Theater; trailers in 31 Wometco theatres will in- vite public to visit facilities . . . King Brothers, big pro- ducer of westerns on Monogram lot, reported by Billboard to be preparing to make 30-min. TV films with shift of activities shortly to Goldwyn studios . . . Charlotte’s WBTV begins local originations as of Sept. 30, including news, weather, sports, homemaking, man-in-the-street shows. WBT theater studio on ground floor of Wilder Bldg, has been rebuilt for TV . . . WPTZ, Philadelphia, Oct. 1 raises base hour rate from $1000 to $1500, one-min. from $200 to $300, changes Class A time to 7:30-10:30 p.m. daily ex- cept Sun. (7-10:30). BRITISH ARE GETTING “TV fever,” what with TV receivers dominating Aug. 29-Sept. 8 National Radio Show and advent of new stations soon doubling number of people within range of TV. According to various reports, including one we’ve received from Marvin Hobbs, electronics advisor to Muni- tions Board chairman John Small, demand for sets has already caused rationing by manufacturers. During recent flying trip, Mr. Hobbs talked to number of top manufac- turers, found their biggest complaint to be that 66%% . tax on wholesale price keeps them from vastly broadening mass market. Since many set makers build single-channel receivers, they can make 9-in. to sell as low as $100 with- ; out tax. Last govt, report showed 897,000 sets as of June 30, with 71,400 of them sold during previous 2 months. Manchester outlet, with 40-kw transmitter (51.75 me I video carrier), has been testing during summer, getting greater-than-expected coverage from 750-ft. tower on ground 1750 ft. above sea level; official opening is Oct. 12. ! Next station due is Scottish outlet at Kirk o’Shotts in I Lanarkshire (56.75 me), scheduled for end-of-year open- ing. Wenvoe transmitter in Glamorgan (66.75 me), to serve West England and Wales, is expected to start mid- 1952. All 3 use 40-50 kw transmitters, but ERPs aren’t indicated. Five smaller stations wei’e planned, but defense demands have delayed construction indefinitely — in Aber- deen, Belfast, Newcastle-on-Tyne, Plymouth, Southampton. Currently, some 18,000,000 people are in range of operating London (45 me) and Birmingham (61.75 me) stations. Three new transmitters should increase number to 30-35,000,000. All stations are being linked with London via coaxial and microwave. Most common set displayed at Show was 12-in., with price-range $130-$200, excluding tax. Trend is toward more 5-channel sets, rather than single-channel, 15 & 16-in. tubes, aluminized. Most are TV-only, with console com- binations still extremely rare. Projections got fair play, with dozen manufacturers showing them. One 17-in. and one 21-in. were displayed. Particularly interesting to Americans was “spot- wobble” included in 15-in. set by E. K. Cole Ltd. Oscilla- tor moves spot up and down slightly as it crosses tube face. This removes prominence of lines. BBC developed it orig- inally to simplify kine-recording. So many U. S. engi- neers are intrigued by it that they wouldn’t be surprised if some American manufacturer is readying it for market. British manufacturers, says Mr. Hobbs, claim they’ve never miscalculated TV supply-demand as we have. They’re also making tremendous effort to cover foreign markets, including Latin America, even though such coun- tries are employing 525 and 625-line standards, as opposed to Britain’s 405-line. Foreign orders for radio-TV re- ceived during show totaled $59,000,000. Biggest TV order was $700,000 worth from Bogota, Colombia. Other TV orders came from Argentina, Brazil, Holland, Germany, Canada. Color impact was negligible, none being demonstrated at show. BBC says it wants much more study and testing first. Number of manufacturers frown on CBS system because of low resolution (British use 5-mc channels) and other performance factors as well, as incompatibility. Transatlantic TV? In 1928? London Daily Mail TV handbook quotes New York Times' report of event Feb. 9, 1928 : “Baird was the first to achieve television at all over any distance, now ... the first to . . . flash it across the ocean ... for American eyes.” Of course, system was mechanical, 30-line, sent on low frequencies. Handbook also reports that on July 3, 1928, Baird “demonstrated a colour picture of a kind, and was also experimenting with stereoscopic television, although without any very great success.” 8 COLOR REPORT: CBS Sets and Grid Schedule— RCA Washington Showings— Paramount's Lawrence Tube IF CBS BECOMES a major set maker, as result of whole color business, it will have achieved more than it possibly could have hoped for in merely getting its color system adopted. This week, in its distributor showings and ads, it’s more apparent than ever that CBS is out to sell sets — black-&-white sets. If a color market grows, it will be gravy. CBS’s main merchandising pitch, it turns out, is ex- actly same as that of Admiral, Motorola, et al., advertising “add color at any time” — no more “wait for color,” a la Arthur Godfrey. Full-page ad in Sept. 28 New York Times headlines “CBS-Columbia Color Convertibles.” These “con- vertibles” are blaek-&-white receivers. “Traffic builder” is what CBS-Columbia’s single color set yet offered is being called by dealers, number of whom are ordering the 10-in. (magnified) color-monochrome sets for display, inviting orders. It lists at $499.95, plus tax, warranty and installation. New York’s big Davega chain (40-odd stores) has 6 sets, heralds them with full-page ad playing up CBS’s color football schedule beginning Sept. 29. Davega man- ager Jules Smith, who castigated CBS and FCC after he’d seen RCA’s pictures (Vol. 7:37), puts situation thus: “It may hurt our other business, but you can’t stop progress. We’ll run more ads, not full-page. I doubt whether we’ll sell very many — at that price, $500. If someone bought one now, we probably wouldn’t be able to deliver for a couple weeks.” CBS is reported paying for all or part of the ads. It’s also understood to have dropped plans for “slick” magazine ads, concentrating on newspapers in colorcasting areas. CBS-Columbia sales manager Richard Payne, during Washington distributor’s showing this week, carefully em- phasized that “black-&- white is not passe, not dead in any respect.” All CBS-Columbia sets, beginning Oct. 1, he said, will have built-in adapters, though no such models were among those displayed this week. Payne is banking on CBS brand name and prestige, plus “pioneer in color,” to move whole line. This promo- tion is apparently producing some returns. Davega’s Smith says he has ordered CBS-Columbia black-&-white sets though he didn’t carry them (Air King) before. As for color, Payne feels that CBS-Columbia has head start; that tri-color tube is 3 years away, costing $280 to make as of now; that “we’re as far along with a tube [at Hytron] as anyone in the business.” He re- ports color orders way ahead of production. Color’s value as traffic builder was also cited by George Wasserman, owner of George’s, Washington chain, who is ordering one set per store. He expects few sales, be- cause of price and because “people will want big tubes.” ❖ * sjs Quality of color we saw at distributor Kaufmann- Washington’s showings was considerably below CBS’s best. Contrast control wasn’t working at one demonstration and picture appeared washed out. Resolution seemed much lower than earlier CBS pictures. Novel method of getting black-&-white on the color set involves 2 discs. Each disc is half transparent, other half comprising 3 color segments. When color is shown, discs revolve while locked in position with color segments of one disc overlapping transparent portion of other. When black-&-white is on, discs stop with both transparent halves in front of tube. Work on 14-in disc set, larger drum sets, color slave and $400 color-monochrome set was described by CBS- Columbia engineer. Latter 2 are promised in month or so. President David Cogan says no more production figures will be released. Recently, he reported 30-a-day color production, with expectation of reaching 300 daily. A lot of old Air King sets are yet to be moved, appar- ently. Most of CBS-Columbia line has Air King escutch- eon, with “CBS-Columbia” decals underneath. * * * * We checked with each of the 11 stations CBS reports will carry its 9-game color football schedule starting Sept. 29. Their responses: WCBS-TV, New York — Carrying all games and daily color programs. WTOP-TV, Washington, and WMAR-TV, Baltimore — Feeding games closed-circuit to large rooms for public viewing, none on air; continuing 10:30-11 a.m. daily color shows. WNAC-TV, Boston — Undecided about football, continuing 10:30-11 daily. WCAU-TV, Phila- delphia— Carrying all games, plans no other color. WEWS, Cleveland — Telecasting “several” games, possibly all, no other shows in works. WHIO-TV, Dayton — No football, no other color. WKRC-TY, Cincinnati — Carrying Sept. 29 game only, nothing else. WBNS-TV, Columbus — Sched- uling all games, no other color. WBKB, Chicago — Picking up all games after Sept. 29, nothing else. WJBK-TV, De- troit— Carrying “some” games, number undecided, hoping to start Oct. 13, no other color on tap. Few station managers showed any enthusiasm for football schedule, particularly since color sets are almost non-existent and competitox-s will have strong NCAA foot- ball schedule fi’om NBC-TV (Vol. 7:36). CBS has prom- ised stations 5-10 color sets. Stations are nervous and dubious about whole thing, obviously looking over their shoulders at FCC. WJBK-TV and WEW’S report they had to cancel $1000 in weekly billings to make room for colox’, pxoducing disgx-untled sponsors. WEWS is planning announcements and ads informing public that continuance of color beyond football schedule isn’t guaranteed. CBS hasn’t yet corraled sponsor for games, is re- pox'ted seeking to sell games individually, stressing pro- motional value. « * * * RCA’s Washington showings, transmitted from New Yox'k via coaxial and micx'owave, will x'un Oct. 9-13 and Oct. 15-19. FCC is invited to attend at its convenience, no specific date. Invitation lists include Congress, cabinet, FTC, NPA, xxxilitary, engineers, attorneys, distributors, dealers, civic leaders, etc. Shows will run 10 a.nx. from WNBW, 2 & 4 p.m. closed-cix'cuit. RCA’s promised theatre-TV color showing, on 9-by-12 ft. scx’een, will come in an undisclosed New York theatre within 2-3 weeks. RCA stx’esses theatx'e-TV color gear’s compatibility with existing black-&-white equpiment, say- ing latter may be convex'ted. To date, CBS has shown no big-screen colox*, though it x'eports work now going on in Zurich with Swiss-developed Eidophor system in conjunc- tion with 20th Century-Fox, which has rights to Eidophox’. ❖ * ♦ 5is Excitement over Lawrence tri-color tube (Vol. 7:38), shown in New Yox'k by Paramount Pictures last week, simmex’ed down somewhat. Few industry experts have seen it yet, but most expect to soon. Those who have seen it genex’ally have an attitude of “it’s too early to tell.” FCC’s top engineex’ing quadrumvix-ate — Plummex-, Allen, Boese, Chapin — saw it Sept. 28. Mox’e conclusive evalua- tion probably awaits development of finished product, which Paramount says it will nxake in Stamford, Conn. Same FCC engineers inspected RCA tx-i-color tube pro- ductioix processes in Lancaster Sept. 26, weren’t given any - 9 figures on output rate. One engineer said difference be- tween black-&-white and color tube production struck him about same as “difference between making an Ingersoll watch and a fine Swiss job.” “RCA’s tube gives just as good results as ours,” Para- mount’s v.p. Paul Raibourn is quoted in Variety. “No one can expect to get belter color than RCA’s. However, there’s a big economic difference between them. Ours is easy to make and theirs is extremely difficult.” Carried away with its story, Oct. 1 Time went off half-cocked: “If the new [Lav/rence] tube lives up to its sv\?eeping advance notices, the whole color fight may soon be over.” Time forgets that the NTSC & RCA compatible system is yet to be resubmitted to FCC, that there’s no knowing whether Commission will allow “dual standards” — commercialization of both CBS and compatible systems. Better evalution was that of Oct. 1 Newsweek, which related how news of tube leaked from Inventor Lawrence to friend Wm. Laurence of Ne^o York Times. It reported that tube works but can stand improvement, and that others have tri-color tubes. It concludes: “The outlook for color was brighter last week, but the only fact that was definitely proved was the impact of a page 1 story in the Times.” H: ❖ NTSC’s field testing of compatible system is under way on several fronts, to apparent satisfaction of most manufacturers. No one knows how much time is needed, nor hew and when FCC will be approached, but hopes are still expressed for windup about year’s end. Zenith, which is testing everyone’s color, showed 2 color sets in New York this week — 14-in. drum model and 10-in. disc unit. But Zenith’s attitude is same as vir- tually everyone else’s: “If the public wants them, we have them. But there doesn’t seem to be any market.” In fact. Zenith ran full-page ad in Sept. 23 Philadelphia hiquirer saying: “Color broadcasting, comparable with present black-&-white, is a number of years off [because] (1) the present methods are not perfected; (2) until there are millions of color TV receivers Avith screens as large as those in present demand, there is not sufficient audience to attract advertising; therefore, (3) programs will be re- stricted both as to number and quality . . .” Epitomizing current attitude of manufacturers is opinion of H. L. Hoffman, the Los Angeles set maker, who has been more detached and less involved in color fight than most. After attending recent RTMA board meeting (Vol. 7:38) and seeing RCA’s latest pictures, he writes: “I was very much impressed with the technical prog- ress that RCA has made. I was also apprised of the progress the NTSC has made. It appears quite clearly to me that we now have the technical answers that we did not have at the time of the FCC hearings, that we have a system in the NTSC that will best seiwe the ultimate con- sumer and give the industry latitude in which to grow.” Even Tele-tone president S. W. Gross, who has shown seme enthusiasm for CBS system, says he has doubts about marketability of color units. He reports “dozen or so” Tele-tone 10-in. (magnified) “slave units” out in the field, with dealers inviting orders. Unit is unpriced, but Gross says $199 is a “vei’y rough guess.” V M V h' Conflicting color claims were rehashed in this week’s fair trade practice conference conducted by Federal Trade Commission (see p. 13). CBS attorney Richard Salant in- sisted most manufacturers can’t claim that their sets are “adaptable” to CBS color. Sylvania counsel John Harvey was equally insistent that they can. CBS’s competitors asked that ads claiming “convertibility” describe size of screens on converters. Salant called that unfair, saying- no one knows what sizes future converters -will be. MANAGEMENT of this paper believes that TV X and the newspapers ai’e in no sense competitors in the news field. They are 2 media of information, just as bourbon and water are 2 liquids; and, as many editors know, neither will replace other, but they’re fine together.” — Phil North, Fort Worth Star-Telegram (WBAP-TV). Foregoing pretty well expresses attitude of most of the 40-odd publishers already in TV (see TV Faetbook No. 13), but it was only one of various expressions of opin- ion on impact of TV on newspapers made public at Sept 27 AP Managing Editors’ Assn, meeting in San Francisco. Consensus was that “TV had sharpened the interest of readers in outstanding new’s events that had been tele- vised,” said AP report, several citing Japanese treaty con- ference as proof. And Des Moines Register & Tribune’s Frank Eyerly held there was “no truth whatever” to pre- dictions that widespread o-wnership of TV sets would spell doom of daily newspaper. However, New York News’ (WPIX) Richard Clark said: “If, in the next few years, TV improves in quality as rapidly as in the last 2, I believe it will be increasingly difficult to sell newspapers in New York [where] practi- cally all sales are made at news-stands . . . TV tends to keep people at home.” B Ever cynical about TV programs. Sept. 29 New York Herald Tribune observes editorially on RCA chairman David Sarnoff’s challenge to his scientists to produce 3 major new inventions (see p. 3) : “Considering the gen- erally inferior quality of present-day TV programs, many people will feel indifferent to an invention that would make TV pictures any bigger, and will see no use what- ever for any gadget that would record them for future use. But by 1956, when Mr. Sarnoff will celebrate his fiftieth anniversary in radio, the industry perhaps will have met this other and bigger challenge — to give the pub- lic better programs. Since that night of April 14, 1912, when as a young Marconi wireless operator Mr. Sarnoff picked up atop the John Wanamaker store the first mes- sage of disaster from the Titanic, he has seen come to pass far greater miracles than these he now asks for. In fact, Mr. Sarnoff helped gTeatly to bring them about. We congratulate him on his anniversary.” “Are the British taking over American television?” asks New York Times’ Jack Gould in Sept. 26 column. They aren’t doing badly, he concludes, reporting “conserva- tive estimates” that British movies comprise 20% of fea- ture film TV fare in larger cities, 10% for TV stations nation-wide, while theatres carry “barely measurable” percentage of British imports. Good English product de- rives about $20,000 yearly from American TV, enjoying “consistently good” ratings except in South and Southwest. “By happy coincidence,” Gould says, “what American TV especially wants, the British are most adept at making: films stressing adventure, intrigue and mystery.” What complaints there are seem directed at “incomprehensible dialogue and the English propensity for staging climatic scenes in virtual darkness.” Hollywood may not yet be worried over “millions of Americans being conditioned to foreign films,” he says, “but already there are whispers of producers in France, Spain and South America hoping to get on the video bandwagon.” Some 200 Avomen executives and broadcasters have sub- mitted entries for McCall’s Awards to Women in Radio & TV contest which closed Sept. 10 — one to be for service to communitj', 3 each for service to women and children, judges to be Sen. Margaret Chase Smith (R-Me.); Dr. Earl J. McGrath, U. S. commissioner of education; Mrs. Dorothy Dcemer Doughton, president. General Federation of Wom- en’s Clubs; Mrs. Harriet Sabine, board, American Women in Radio & TV; Otis Lee Wiese, publisher of McCall’s. 10 - Financial & Trade Notes: Magnavox sales were $41,- 177,645 and net earnings $2,233,237 ($3.01 a share on 723,437 shares outstanding) for year ended June 30, both the largest in its history. They compared with $31,716,630 sales, $2,007,982 net profit ($2.81 on 703,764 shares) for preceding fiscal year. Provision for Federal income tax was $2,590,000, plus $735,000 excess profits tax, as against preceding year’s total $1,200,000. Backlog of military orders totals $35,000,000 reports president Frank Freimann, shipments of war products now running $1,000,000 a month and due to reach $2,000,000 by December. By year’s end, $1,000,000 expansion program will be completed, including 40,000 sq. ft. added space in Ft. Wayne and 65,000 sq. ft. in Greeneville, Tenn. * Hazeltine, Motorola & Zenith are listed with 36 others as “candidates for stock splits”— or else for large stock dividends — by Sept. 24 United Business Service. It adds, however: “There can, of course, be no assurance that such action will follow in the near future, but the logic of the situation suggests it in each case. The stocks have all enjoyed substantial advances in market pi'ice, earnings are large, and growth in recent years have been noteworthy.” Allied Electric Products Inc. reports net of $354,733 on sales of $9,585,301 for fiscal year ended June 30, compared to $160,814 net on $4,950,284 gross in preceding fiscal year. President Nathan Chirelstein’s report notes that $1,052,956 was spent on new equipment and improvements during year, that company’s electi’on tube output is now 5000 daily, will go to 25,000 a day by November. Oak rdfg. Co. reports profit for first 3 months of new fiscal year ended Aug. 31 was 46^ a share based on current tax rates, compared with 614 same quarter last year. (For last full fiscal year report, see Vol. 7:35.) Billings first quarter were olf 10%, partly due to longer vacation shut- downs and preparation for defense orders. Trend is up- ward, so that “total shipments for the first half of fiscal year will be well ahead of last year.” Sparks-Withington ended fiscal year June 30 with net earnings of $879,320 (95^ a share) compared with $458,083 (47<‘) for preceding year. Sales were $23,978,292 com- pared with $17,020,259 preceding year. Dividends: Emerson, 254 payable Oct. 15 to stockhold- ers of record Oct. 5; American Phenolic, 204 payable Oct. 26 to holders Oct. 12; Electric & Musical Industries Ltd. (Lon- don), 8% stock as of June 30; Technicolor, 50 Theati-e-TV equipment is priced from about $35,000 for General Precision Laboratory’s 16mm inter-film sys- tem to $2000 for a portable direct projection system re- portedly in works by Katz & Snaider Co., Brooklyn. If all manufacturers’ claims are taken at face value, there should be some 250 equipped theatres by year-end. RCA has installed more than any other company — some 16-18 out of the 28. RCA’s direct projection set sells for $16,500 plus about $2000 for installation. RCA has at least 100 firm orders, hopes to fill them all by end of year. Paramount’s 35mm inter-film system accounts for 6 installations. It costs $25,000 plus $1500-$2000 installa- tion. Film company says 10 are in production, will be de- livered in few months. General Precision Laboratory reportedly has some 30 firm orders for its new Simplex direct projection system, which costs approximately same as RCA’s, and 14 orders for its inter-film system. Production of the Simplex be- gins next month. Trad TV Corp., manufacturer of projection sets for bars and clubs as well as standard-type pi’ivate label re- | ceivers, says it has materials and capacity to turn out • 100 of its new Tradiovision theatre units before Jan. 1. i Trad promises 90-day delivery on 2 direct projection models — one with spare receiver for switchover in event of trouble at $7650, single-receiver model at $5850. Installation cost is listed as “under $1000.” First Trad unit is in use at Walter Reade’s Asbury Park theati-e, and Trad says Reade ' chain has ordered 9 more. " GE plans to manufacture Eidophor projection TV sys- tem— using CBS color — for 20th Century-Fox, but no production schedules or costs have been announced. ' i Other manufacturers reported preparing to make ' i theatre-TV units are Air-Marshal Corp., New York TV set maker, said to have unit for 8xl2-ft. sci-een, to cost less than $5000, and Katz & Snaider Co., Brooklyn, developing $2000 portable. Philadelphia’s Royal Theatre has tempor- ary installation of pilot model of new unit of unknown make, which reportedly cost $3500, throws image on 9x12- ft. screen and is said to be one of 4 such units already manufactured, but only one in use. Skiatron Electronics & TV Corp., promoter of Subscriber-Vision, has promised inexpensive set for rental to small theatres. Theatre TV will be hot subject at Society of Motion Picture & TV Engineers convention in Hollywood Oct. 15-19. On agenda are reports on development of high- definition theatre-TV system, by RCA tube dept.’s Otto H. Schade; new direct-projection system, by General Pre- cision Laboratory’s F. N. Gillett; TV camera for theatre network use, by GPL’s Blair Foulds and E. A. Hungerford Jr.; high-speed theatre-TV optical system, by RCA engi- neering products dept.’s Lawi’ence Sachtlaben. Papers will also be presented on TV studio lighting, kine recording, TV film scanning equipment. Theatre TV as mass training device, tested Sept. 15 by Federal Civil Defense Administration (Vol. 7:36), was such “huge success,” says Jesse Butcher, director of FCDA audio-visual division, that plans are being made to use it on regular basis. Extent of use depends on appropriations to be voted by Congress, “but we’ll do as much as possible with available funds,” agency spokesman said. Sept. 15 program originated in studios of WMAL-TV, Washington, was sent to theatres in Baltimore, Philadelphia, New York, Washington. SETS MOVING, SHORTAGES AGAIN FORESEEN: TV business is so much improved that they're talking set shortages again — estimates of when varying from the end of November to sometime during first half of 1952. Undoubted fact of materials restrictions as defense production accelerates (Vol. 7:36 et seq) , considered along with greater public demand for receivers and steadily reducing inventories, cause very few to scoff now at "cry shortage". Second Dun & Bradstreet report on dealer inventories shows 800 , 000-900 , 000 sets in dealer stocks as of Sept. 1, regarded as "healthy reduction" from 900,000-. 1,150,000 estimated as of Aug. 1 (Vol. 7:35) and bearing out general trade feeling that things are picking up nicely. And RTMA disclosed this week that end-of-August distributor inventory (Aug. 24) stood at 680,862. up from end-of-July ' s 640,393 and highest of year. But distributor inventory isn't regarded as having same index importance as monthly dealer figure and weekly factory output figure. Factory inventories took another dive week ending Sept. 21, RTMA reporting 510,100 as against 560,044 preceding week (Vol. 7:38) and 622,436 week before that (Vol. 7:37). This means more than 250,000 inventory has been moved by manufacturers since Aug. 3 peak of 768,766 (Vol. 7:32) — aside from their current production. Output went up to 78,548 (1030 private label) for week ending Sept. 21, highest of any week since end of May, up from 62,548 the week before. Thus, 12 of third quarter's 13 weeks have resulted in output of approximately 570,000 sets, as against first quarter's 2,200,000 and second's 1,145,000. Radios totaled 240,494 (104,726 private), up from 222,406 as of Sept. 14 and highest since the 375,066 reported for week ending July 20 (Vol. 7:30). Factory inventory of radios was 388,919, up from 381,139 on Sept. 14. The radios were: 136,281 home receivers, 81,915 auto, 22,298 portable. Total radios thus far this quarter are approximately 2,500,000 vs. 4,343,600 first quarter, 3,813,046 second. So many predictions have proved wrong — who, for example, foresaw bottom dropping out of TV market so precipitately last March? — that most industry leaders have been conspicuously cautious in recent months. A few are speaking out again: RCA's J.B. Elliott, consumer products v.p., has been making flat statement in speeches and interviews that there will be shortages of "quality receivers" by mid-December. He estimated another 1,500,000 output before end of this year, but only 1,800,000 first half of next year, 3,000,000 second half if materials problems are partly solved. These won't be enough to meet demand, he said. Philco's Fred Ogllby, TV-radio sales v.p., foresees rationing of at least his company's receivers by end of November. Company reports production and sales now "on consistently good basis." Admiral president Ross Siragusa said: "Admiral dealers are selling more TV sets than the 5 Admiral electronic plants are producing. Govt, orders, together with ' reduced allocation to civilian use of strategic materials, have combined to make it I necessary for us to keep our 5 plants going night and day, Saturday included, to I meet demand occasioned by new models introduced in mid-August. i "Sales are so strongly up in TV & refrigerators that we have no inventories I beyond a half-day to a day's need at the factory level. Our field Inventories show Ij that we are less than 3 weeks ahead in TV sets and less than 4 weeks ahead in re- frigerators. It's keeping us humping to keep ahead of demand. The first of the 'year will see a shortage of TV sets of the better known brands." : Magnavox's president Frank Freimann. in annual report released this week . (see Financial Notes), asserts retail sales "have been on the ascendancy since mid- 11 - 12 - August and are accelerating at a rate that points to a probable shortage of merchan- j dise by the end of the year." i Wholesalers and retailers, after taking bad beatings for nearly 6 months, are inclined to be somewhat more cautious than manufacturers — but they generally tell of better sales, unloaded inventories, bright outlook for rest of year. As to shortages, they're not as well versed as the manufacturers, but William Warsaw, who heads Washington’s Lacy's chain, calls trade "steady and healthy". And George Wasserman, who heads George’s big Washington chain, and who does not often lean to the optimistic side, now feels so buoyant that he says; "I believe the last quarter of 1951 will surpass last quarter 1950 by 20% at the retail level." Washington is regarded in trade as far from "typical" — but echoes of this attitude are manifest in conversations with dealers in other cities and in what they are quoted as saying in the merchandising trade press. There was only one saying he thought October — despite World Series, football, better programs generally — might not be so hot. Reason; Three business days lost because of the Jewish high holidays. STILL MORE COPPER-ALUMINU94 CUTS LOON: HPA is preparing to wield the axe again — to take another chop at the supply of materials for TV-radio and other consumer durable goods in the fourth quarter. Allotments of copper and aluminum — already cut below third quarter’s figure (Vol. 7:38) — are due to be sliced by as much as 10%. This was publicly confirmed by an NPA official for first time Sept. 27 when Controlled Materials Plan boss Walter C. Skuce said in New York speech that rations of the 2 metals to civilian producers may have to be cut by 10% "unless inventories [at the mills] are adequate to make up the deficit." Plain fact is that Govt, has issued allotment paper for about 10% more cop- per and aluminum than it expects to be available in fourth quarter. And when a high NPA official, in a prepared speech, mentions a "possible" cut — you can interpret that as "probable" or even "virtually certain" . TV-radio production for rest of year now appears to hinge almost solely on availability of materials, trade slump having ended and set output figures showing week-by-week rise (see p. 11). It’s difficult and risky to venture a guess on fourth quarter TV-radio out- put — even on basis of exact materials allocations figures. Big unknown quantity is the "carry-over" of processed materials and subassemblies from third quarter. TV-radio industry didn’t use up its whole ration of third quarter materials — simply because there wasn’t any market for TV sets. While govt, inventory con- trols limit carry-over of third quarter materials, as such, to fourth quarter, there is no ceiling on carry-over of "subassemblies" or "processed materials". When sheet steel is pressed into chassis blanks, it’s no longer a "material" — it’s been "processed" . Same is true of hookup wire when it’s cut into convenient lengths. Fourth quarter TV-radio production depends, to large extent, on size of industry’s stock of such processed materials and subassemblies. Conservation, too, will play important part in stretching production. But most spectacular materials-saving measures are still in future. RTMA engineering study just presented to NPA gives results of conservation to date, and notes; "A great deal of [conservation] work... by the parts, material and end-prod- uct manufacturers. . .requires the use of new materials, new circuit designs and new mechanical arrangements. , Much of it will not be reflected into apparatus until 1952, because of design work, the time required to prove out new materials, compo- nents and products and the time for tooling and manufacture of the new items." Some substantial savings in critical materials have already been effected, RTMA report shows. Based on production rate this year of 5,920,000 TVs, 11,600,000 radios — 20% less than last year’s 7,400,000 and 14,500,000 — RTMA estimates these savings in tons this year over last; Aluminum, 1324 or 21%; cadmimn, 66 or 23%; 13 ■ cobalt , 229 or 36%; copper, 9687 or 24%; lead. 239 or 21%; nickel . 367 or 28%; iron & steel, 54,058 or 24%; tin, 266 or 25%; zinc , 4117 or 26%. While Govt, regards industry’s voluntary conservation program as laudable, I there are easily discernible indications that control agencies haven't dropped the ' idea of compulsory conservation, simplification and standardization. There are reports Govt, is looking askance at the ever-mushrooming variety of receiving and TV picture tube types. RTMA's tube div. reportedly is investigat- ing possibility of voluntary tube standardization program. Steel cabinets used on TV sets, radios and juke boxes, too, are being viewed ' by some high materials control officials with jaundiced eye, best sources indicate. Wood is plentiful, steel is woefully short, these officials say — wondering why ^ some "new 1952 models" are encased in the precious metal. Everybody got chance to Wow oif steam, but nothing substantive was decided, at second TV indus- try conference on proposed trade practice rules held by Federal Trade Commission Sept. 26-28. Discussions were J often heated, covered whole gamut of alleged “deceptions,” . led only to decision to call third conference (probably early in 1952) after which public hearings will be held before FTC issues rules binding on the industry. Third conference was requested by RTMA president Glen McDaniel and NARDA president Mort Farr. Louis B. Calamaras, v.p.. National Electronic Distributors Assn., was named to head interim committee for further work on the 34 rules prepared by FTC staif (Vol. 7:34). : Though some of the 33 industry and Better Business [ Bureau executives and counsel attending plumped for rules as proposed by FTC, even asking “greater protection” than they afforded consumers and dealers, manufacturers gen- erally opposed them as going beyond govt, jurisdiction. Mr. McDaniel, for example, opposed suggestion by U. A. Sanabria, American Television Inc., that minimum TV re- Iceiver performance specifications be written into the defini- itions — demurring on the grounds that minimum stand- iards should not be set by the Govt, and that “good sense I of the public” would drive inferior sets off the market, i Questions of tube-size designations, rebuilt tubes sold !as new, “adaptibility” and “convertibility” of sets to color, price and wari’anty deceptions, tie-in sales, trade-in allow- ances, private-label representations, price-fixing to sup- press competition, etc., were among those which often oc- casioned acrimonious discussion. TV color issue was re- hashed, got so confusing to FTC folk that long and in- volved explanations ensued. Sanabria even protested use of “CBS-Columbia” brand name as “unfair competition” since it uses govt.-granted facility to plug own product. Besides spokesmen for trade associations and Better- Business Bureaus, those attending included counsel for CBS, Richard Salant; Philco, Henry Weaver; Admiral, I Richard Oberly; DuMont, Robert McLaughlin; along with John Harvey, Sylvania; J. M. Wiseman, Belmont; H. F. Guenin Jr., H. Osterling, D. Create, J. Williams, RCA Vic- tor; Matthew Roth, Davega; Samuel Sosenko, Bronx Radio. TV will overshadow telephone as tool for business executive of future, DuMont’s receiver sales manager Wal- ter L. Stickel told Rochester Sales Executives Club Sept. 11. “In the not-too-distant future,” he said, “2-way TV communication between various phases of business opera- tions, which will enable executives to see as well as hear their associates, will be a commonplace thing in the busi- ness world . . . TV will be the greatest sales tool ever devised for American business.” “We owe TV a vote of thanks for showing, Holly- wood to the contrary, that homely people also have some talent” — Burton Hillis, in Sept. Better Homes & Gardens. Tl'3d8 PofSOnsls; George W. Henyan, going on leave as asst, to GE’s Dr. W. R. G. Baker, Oct. 1 becomes chief of components branch, NPA Electronics Div., succeeding Louis H. Niemann, who returns in mid-October to Sylvania as mgr. of field engineers . . . Edmund T. Morris Jr., chief of DPA Electronics Production Board and NPA Electronics Div., on leave from Westinghouse, will wed Miss Ruth H. Tadde of Washington at Roanoke, Va., Oct. 3. Couple will leave next day for Europe, where Mr. Morris is being sent on govt, mission . . . Ernest W. Heilmann, official of A. G. Spalding Bros., named acting director of OPS consumer- durable goods div. “until a director is appointed” . . . Joseph H. Gillies, Philco operations v.p. for TV-radio div., appointed v.p. & gen. mgr., govt. & industrial div., with Wm. J. Peltz named v.p. for TV-radio div. Robert F. Herr, v.p., continues to head sales activities of Gillies’ division . . . Palmer M. Craig promoted to v.p.-engineering, Philco TV-radio div., reporting to president Larry Hardy . . . Ray- mond S. Perry promoted from gen. commercial sales mgr. to v.p. & director. Federal . . . Frank Hogan named v.p.- sales mgr. of newly created Emerson Radio of Michigan Inc., 1301 W. Lafayette, Detroit (Vol. 7:34), wholly owned subsidiary, under Harold E. Karlsruher, president . . . I. E. Christman, ex-Goodyear TV-radio buyer, joins CBS-Colum- bia Inc. as district mgr. for Ohio, Ky., W. Va., western Pa. . . . Leo J. Galanek, ex-Regal chief engineer, now president of Gem Radio & Television Corp. . . . Louis Grodsky has re- signed as controller and asst, treasurer. Tele-tone ... Ed Altshuler named director of adv.-public relations, Kaye- Halbert . . . W. L. Parkinson, GE, appointed chairman RTMA service committee, succeeding E. W. Merriam, Du- Mont. . . . Don Haines, ex-Sentinel chief engineer, joins Belmont as asst, to Wm. Garstang, engineering director . . . Wm. W. Cone resigns as sales v.p., Krich-New Jersey. “Don’t overlook the possibilities of industrial elec- tronics,” said GE’s Dr. W. R. G. Baker at NEDA Cleveland convention Sept. 10, echoing report in Sept. Fortune (Vol. 7:36). “I know it is hard to look at the electronics picture without being blinded by the reflected glare of TV . . . TV may be many things to many people in addition to being the most dazzling development of present day electronic science. But when some historian of science, a few centuries from now, weighs the various developments in the light of their contributions to the advancement of human society . . . industrial electronics may far out- shadow TV in its effect upon standard of living and way of life.” Note: Good example of “industrial” use of TV was cited in AP dispatch from London Sept. 13, relating how underwater TV apparatus located sunken submarine Affray after 2 months at bottom of English channel. Equipment used by Admiralty was much same as that used for ordinary outdoor telecasting, with camera in water- tight container operated by remote control. 14 - Topics & Trends of TV Trade: New York city’s drastic measure for licensing TV servicemen, agreed upon in committee of City Council Sept. 27 and due to go be- fore full Council in November, may be bellwether for other communities — outgrowth of this attitude, as expressed in bill itself: “The business of selling service contracts and servicing- television receiving apparatus has become the subject of great abuse, with the result that the public has been and is being victimized by irresponsible sales methods, unethical and financially unstable service organizations and inferior installation, maintenance and repair.” Unsalai'ied supervisory board of 7 named by Mayor, including experts from industry, will be set up to encour- age “self-regulation.” Bill provides for annual license fees of $15 for technicians, $5 for apprentices, $25 for sei-vice contractors, $25 for service dealers. Violators w-ould be guilty of misdemeanor and punishable by fine not to exceed $500 or 6 months imprisonment, or both. Companion measure, somewhat along lines of bill de- feated in State Legislature recently, proposes to protect TV purchasers from losses through bankruptcies of serv- ice contractors by requiring latter to place full service fees in escrow in a bank, drawing out only specified amounts each month, deposits to assure carrying out of contracts in event of failure. « * * * DuMont’s anticipated TV receiver production is set at 409c of last year’s total, “because of needs of raw ma- terials for defense.” Accordingly, areas on 2 of E. Pater- son plant’s 4 conveyor production lines (over 2 miles long) have been reserved for military electronics components manufacture, reports president Allen B. DuMont. Newly named manufacturing operations chief is Paul Eshlem.an, who was production control manager during World War II and who supervised conversion of the former Wright aero plant for TV. Its 480,000 sq. ft. capacity, DuMont claims, makes it “world’s largest TV receiver plant.” False advertising of coin-operated TV sets is charge against Covideo Inc., New York, and its president Sidney I. Horwatt and v.p. Louis Brown, in Sept. 28 Federal Trade Commission complaint. FTC alleges that, contrary to Covideo’s advertisements, “the respondents do not own or operate a place where they make TV-radio sets or parts; they do not maintain a staff of competent engineers and technicians with adequate facilities for research in TV . . .” Horwatt and Brown must answer complaint in 20 days and appear at hearing in New York Nov. 5. Reflecting summer production cutbacks. Treasury Dept, excise tax collection from TV-radio industry dipped to $5,165,031 in August from July’s $5,859,679. Uncle Sam took $4,760,964 from industry in August 1950, but that figure doesn’t include TV sets, which were untaxed at time. During August, refrigerators, freezers, air conditioners paid $5,664,944 vs. $8,626,740 for August 1950; phonograph records $518,711 vs. $293,880. * * * * Merchandising Notes: No TV as yet in Rockford, 111., 80 miles from Chicago, but 21 of city’s retailers and serv- icemen have banded as Certified TV Installation & Sei-vice Assn. Inc., took full-page ads to tell public how it backs up sei-vice; Hartford pattern is followed . . . Hallicrafters names Edgar Morris, ex-Zenith, as distributor for Wash- ington area . . . “Unusual is usual” in Los Angeles, says IV'ill Street Journal, noting that gas stations are selling TV sets thei-e . . . Hallicrafters distributor McCollum-Law Co., Denver, announces 50 sets, all 20-in., will be placed in 5 locations to pick up World Series, piped via Denver’s AM outlet KFEL by special arrangement whereby it’s tapping transcontinental microwave. Trade Miscellany: Sarkes Tarzian shows new uhf tuner in Bridgeport Oct. 3, stressing that it tunes full 470-890 me, costs no more than vhf — “less than the cost of adding 2 or 3 channel strips piecemeal” . . . DuMont reports 30-in. tube production now at full capacity of pres- ent facilities, selling some to 4 undisclosed “large” manu- facturers; company is also experimenting with 27-in. metal-cone rectangular, hasn’t decided on its future . . . Esquire Radio Corp., specializing in clock radios, now op- erating in new plant at 62-01 Fifteenth Ave., Brooklyn; president is A. R. Lieberman, ex-gen. mgr. & chief engi- neer, Jewel Radio, and a major stockholder is his brother J. P. Lieberman, onetime owner of Air King (now CBS- Columbia) which he sold to Hytron . . . Thomas Electronics Inc., Passaic, N. J., CR tube maker, says it’s planning to go into receiving tube manufacture . . . General Fuse Co., South River, N. J., making glass tube fuses for automotive and TV industries, opening new 10,500 sq. ft. plant in Villalba, Puerto Rico . . . Antenna Research Laboratory, Columbus, 0., sold to Thompson Products Inc. this week, price undisclosed, plans large-scale antenna production at new plant. * * * * Philadelphia TV-radio servicemen have drafted, through joint committee under secretary Paul V. Forte, 50- point operating program aimed at improving service meth- ods. Program includes suggestion that manufacturers standardize tube sizes, mark all parts in legible, perma- net manner and offer better distribution of technical infor- mation to servicemen. Dealers are urged to eliminate mis- leading advertising about service possibilities or receiver performance and to establish uniform warranty ticket. Parts distributors are advised to end wholesaling to retail buyers, and all groups encouraged to expand cooperative advertising. Electronics exports continue way ahead of last year’s — 7 months’ total running $77,930,118 vs. $35,624,177 same 1950 period, according to Census Bureau and RTMA. July figures accentuate increase — $17,857,932 vs. $6,689,189 year ago. Of larger identified categories in July, radio sets were $1,808,833, receiving tubes $1,397,562, parts for transmitting-receiving sets $1,778,501. “Special cate- gory,” presumably including I'adar, etc., amounted to $8,- 614,955. TV sets won’t be reported separately until first of 1952. Simon Benin, president of Industria Meublera S.A., Mexico City (Industrial Furniture), reports TV is reviving that industry in his country; his company alone will turn out 45,000 TV and radio cabinets valued at $2,500,000, mainly to house chassis imported by GE, RCA, Philco, Zenith. Last year it turned out 47,000 cabinets valued at $500,000, but these were mainly for radio. ' TV receiver advertising in newspaper, due largely to eager effort to hypo waning market, went to 37,177,098 | lines for Jan. thru June period, up 24.99o over same 1950 • period; radio figure was 3,650,116, down 4.5% same period. Media Records report covers 38 TV markets. Of TV total, manufacturers placed 9,353,551 lines, up from 4,711,022. September Electrical Merchandimng is devoted mainly to TV, calls industry’s present position good, future pros- pects tremendous. Included are articles on retail sales problems & practices, fringe area selling, community an- : tenna systems, color TV — each article offering examples ■ of successful merchandising techniques. August receiving tube sales reached 23,761,252, after July's low of 13,185,567. Though year’s total to date is ' well above same period last year — 252,849,145 vs. 227,773,- 373 — RTMA report shows July-August rate of sales under last year’s, when July figure was 21,128,017, August 36,- 269,435. 15 Nobilizalion Notes: Approximately $4,500,000 in elec- 1 tronic plant expansion has been approved by DPA in addi- j tion to previously-listed certificates for rapid tax amorti- zation totaling some $135,000,000 (Vol. 7:36). Certificates granted since “moratorium” began Aug. 18 (Vol. 7:33) — emergency cases or cases which required approval before Sept. 23 under federal law: Standard Tool & Mfg. Co., Arlington, N. J., electronic equipment, $666,429, of which 80% is to be amortized over 5-year period; RCA, Camden, military items, $465,000 at 75%; Globe-Union, Milwaukee, electronic parts, $398,700 & $190,789, both at 75%; P. R. Mallory, Indianapolis, military items, $384,561 at 75%; Magnavox, Ft. Wayne, military items, $350,000 at 75%; Federal Telecommunication Labs, Belleville, N. J., military items, $323,000 at 90%; Raytheon, engineering services at Newton, Mass., $87,208 at 75%, electronics equipment at Bedford, Mass., $8000 at 75%; G. H. Leland Inc., Dayton, electronic parts, $70,876 at 85%. These certificates have been issued over period of time, but haven’t been listed in DPA releases (percentage of amortization undisclosed) : Sylvania, tube components at Warren, Pa., $361,000, tubes at Salem, Mass., $346,893; Westinghouse, Pittsburgh, radar, $285,000; RCA, Camden, military equipment, $223,912; Oak Mfg. Co., Chicago, com- ponents, $155,443; Barry Corp., Watertown, N. Y., vibra- tors, etc., $76,703; D. S. Kennedy & Co., Cohasset, Mass., radar components, $53,399; Plastic Mfrs. Inc., Stamford, Conn., components, $24,398; Stable Engineering Inc., Plain- field, N. J., reseax’ch & development, $14,365; Globe-Union, Milwaukee, printed circuits, $1250. Thirty-five applications for aid in building electronic plants valued at $7,000,000 were rejected this week. Among them: Cornell-Dubilier, 4 applications totaling $1,013,332; Pacent Engineering Co., New York, $1,000,000; Interna- tional Resistance, $987,278; Remington-Rand, $900,000; Jefferson Electric Corp., Bellewood, 111., $818,000; Aerovox, $751,969; Wilcox-Gay, $506,000; Raytheon, 5 applications totaling $351,973. * « * * TV-radio-phonos aren’t covered by NPA’s new con- sumer durable goods order M-47B, which permits manufac- turers of 4 selected groups of civilian products to shift production from one item to another in the same group. Under Controlled Materials Plan, any manufacturer may shift production among any items in same official product class code — hence TV-radio makers may shift between TVs, home, portable & auto radios, combinations, phonos, color slave units, juke boxes, etc. But they can’t shift be- tween TV-radio and other appliances such as refrigerators and washing machines, as they could in third quarter under now-revoked M-47A. Govt limitation on use of selenium may result from I recent copper strike, NPA officials say. A by-product of copper smelting and refining, 1951 output of the chemical will be less than the 1,000,000 lbs. originally anticipated — because of strike and because one prime producer has stopped making selenium. Unavailability of selenium rec- tifiers is just one more headache for conservation-minded i TV-radio manufacturers — since the rectifiers are heart of I voltage-doubler circuit which can be used in place of power j transformer to save copper and steel. Threat of severe tungsten shortage seems to have I eased. Govt, officials told tungsten and molybdenum wire I and rod producers imports and domestic production should : about balance consumption during first half 1952, but the I amount going into govt, stockpile will create proportionate I deficit in industrial supplies. Inventories of tungsten and molybdenum — both used in electronic tubes — are sufficient I to meet “current needs,” producers say. Maj. Gen. Harold M. McClelland, ex-director of com- munications-electronics for Joint Chiefs of Staff who re- tired from Air Force Sept. 1, named asst, director of Cen- tral Intelligence Agency, under Gen. Walter B. Smith. Col. C. J. King promoted from asst, chief to chief, engi- neering & technical div.. Office of Chief Signal Officer, succeeding Col. E. R. Petzing, now commanding Signal Corps Engineering Labs, Ft. Monmouth, N. J. Melpar Inc., Alexandria, Va., prime military contrac- tor for electronics gear, sold to Westinghouse Air Brake Co.; Thomas Meloy continues as president, heading staff of 150 engineers in Alexandria and Cambridge, Mass. DuMont will use World Series as peg for big nation- wide receiver promotion, built around formation of dealer- level “World Series Clubs” whose members can watch complete Series on 19-in. sets installed free at place of their choice. “Club” members can get the sets by regis- tering in groups of 5 or more with DuMont dealers. DuMont also plans to install sets in barbershops, stores, hotels, train, bus and plane terminals, restaurants “and any reasonable place for viewing the series within the area where the dealer does business.” National Assn, for Better Radio & Television is new name of Southern California Assn, for Better Radio & Television, headed by Clara S. Logan, 882 Victoria Ave., Los Angeles. This is group that found “horror stuff” dominant on TV, got publicity play on protests last year. Its aim is to raise social and educational standards “without recourse to legal censorship.” A new director is Dr. Dallas Smythe, ex-FCC, now U of Illinois communications re- search professor. Dr. Richard Atkinson is first v.p.. Dr. Lee deForest second v.p. College students aren’t yet affected much by TV, re- ports National Advertising Service, representing college newspapers, after sampling 2201 students at 25 colleges in 21 TV areas. Only 13% owned TV sets at college, only 26% said they look at one or more TV programs regularly while at college. More than half (52.6%) said they spent no time at all on TV, 36.3% spend up to 5 hours weekly, 6% five to 10 hours weekly, 4% more than 10 hours weekly. Normal room lighting, with no reflections on screen, is again emphasized as most comfortable for good view- ing. Advice came recently from Dr. Carl F. Shepard, Northern Illinois College of Optometry, in talk to meeting of New Jersey Optometric Assn, in Atlantic City. Dr. Shepard, TV consultant to American Optometric Assn., reiterated that there’s nothing fundamentally harmful in watching TV. Offer to install community antenna system for unnamed upstate New York entrepreneur was made recently by New York Telephone Co. It’s first such offer by a telephone company, would cost local operator $5500 per mile for installation, $80 per-mile-per-month for maintenance. No agreement has been reached. Alternatively, poles are of- fered on rental basis under stringent conditions, similar to arrangements in other towns (Vol. 7:2 et seq). FCC denied WABD’s request to use 16.7-kw ERP on Empire State Bldg, pending decision on protest by WNHC- TV, New Haven, that 16.7 kw on adjacent channel would reduce latter’s coverage. WABD’s CP specifies 2.5 kw, but it wants higher power under FCC’s temporary power in- crease ruling (Vol. 7:30 et seq). Installation of WCBS-TV antenna, on Empire State began this week. Another attack on “immoral” TV shows by Boston’s Archbishop Cushing (Vol. 7:9), inserted in Sept. 25 Con- gressional Recai-d by Rep. Lane (D-Mass.), advises parents to censor children’s viewing, protest to sponsors. His first blast was accompanied by Rep. Lane’s request that FCC be given power of censorship. 16 - Rough going for Comr. Frieda Hennock, seeking con- firmation of appointment to New York Federal judgeship, was indicated after parade of opposition witnesses testi- fied Sept. 27-28 at closed sessions of Senate Judiciary Committee. Hearing resumes Oct. 2 when her supporters appear. Unusually long proceedings for a confirmation were carefully guarded fx-om press — but New York Times dispatch Sept. 28 repoi'ted: “The belief in some respon- sible quartei*s was that if Miss Hennock did not request President Truman to withdraw her name the nomination would be pigeon-holed by [the Committee] or killed by a strong vote on the floor of the Senate.” Her qualifications as an attoi-ney, judicial tempex’ament, charactei- — all were attacked by representatives of American Bar Assn., New York State Bar Assn., City Bar Assn, (latter’s judiciary committee chairman Louis Loeb being counsel for New York Times). RCA counsel John Cahill was only Hennock supporter to testify so far. Witnesses to appear for her next week are expected to include FCC Chairman Coy, an FCC Bar Assn, representative, and numerous women’s bar groups, judges, educators, etc. Deal whereby WOW & WOW-TV, Omaha, were sold for $2,525,000 to Meredith Engineering Co., subsidiary of Meredith Publishing Co., Des Moines (Better Hornes & Gardens, Successful Farming), was approved Sept. 27 by FCC. Mei-edith interests thus acquire second station, hav- ing built WHEN, Syracuse. Sale appi-oval came just be- fore one-foui-th owner Francis P. Matthews, ex-Secretary of Nax^"^, departed for Ireland as Ambassador. Estate of founder, late John J. Gillin, also held about one-foui’th in- terest. Deal is complex one (Vol. 7:32), in which buyers assume 25-year rental lease from Woodmen of the World at $160,000 a year, 19 years yet to go, and also acquii-e $20,000 surplus account. Another case of TV “have” tying up with “have not”: WKRC & WKRC-TV, Cincinnati (Taft) buys 20% of Gil- more & Lindsay Nunn’s WBIR, Knoxville, TV applicant; WTCN & WTCN-TV, Minneapolis, I’ecently bought “piece” of WEMP, Milwaukee (Vol. 7:38). And WDSU-TV, New Orleans, whose AM affiliates with NBC Oct. 4, has joined with Mobile Register and Press (WABB) to form Mobile Television Corp., soon to apply for TV there in lieu of newspaper’s present Channel 8 application. Chairman is Edgar Stern Jr. (WDSU), president is R. B. Chandler, publisher of newspapers. WDSU’s Robert Swezey & Louis Read and newspapers’ Wm. J. Heai’in and Walter Bellin- grath are vice pi'esidents. Two more radio stations I'eceived NPA go-ahead and materials allocations for alterations during foui*th quai-ter under Controlled Materials Plan (Vol. 7:37-38). They are: WQAM, Miami, alterations to tower, to cost $42,050; WFRC, Athens, Ga., antenna tower, $15,500. Bulk of fourth quarter list hasn’t been released yet; more TV-radio construction approvals are expected. NPA has prepared list of 71 interpretations of its construction regulations. For copy, write for NPA release No. 1266. Help Wanted— Newsmen RADIO NEWS BUREAU, publisher of Television Digest, has sevei’al openings for additional newsmen — reliable reporters, facile winters, who are intelli- gent, willing woi’kers. Prefer age 30-35, with Signal Corps, Navy or industry experience who ali'eady know TV-radio-electronics rudiments and terminol- ogy. This fast-moving, expanding organization moves shortly to new quarters in Washington’s new Wyatt Bldg. Reply should give all details, including refer- ences and starting salary expected. New WLTV, Atlanta (see p. 1) goes on air Sept. 30 with nice backlog of commercials, primarily as an affiliate of ABC-TV, plus film schedule at outset. Live local produc- tions ai-e planned by end of year. Station is being hailed with special sections of local newspapers, dealers expecting upsurge of set sales with advent of area’s third outlet | (others: WSB-TV & WAGA-TV). WLTV operates on | Channel 8. Corporate name is Broadcasting Inc., address 15 Forsyth St. S.W. Executive staff comprises William T. Lane, mgr.; Arch Ragan, sales mgi-.; Harvey J. Ader- hold, technical director; Roger 0. Van Duzer, progiam di- rector; Ann Hucheson, traffic mgr.; Winifred C. Browm, accounting mgr.; Madelin Chace Maddox, public relations. Petition to commercialize Phonevision still hasn’t ar- rived at FCC from Zenith (Vol. 7:38). Timing may have been affected by fact FCC postponed theatre-TV hearing from Nov. 26 to Feb. 25 (see p. 2), a definite indication Commission can’t possibly get into subscription TV ques- tion for many months. In meantime. Zenith president E. F. McDonald continues making most of public dissatisfac- tion over fact Robinson-Turpin bout was carried exclu- sively on theatre TV (Vol. 7:37-38). In new series of 3 telegx-ams — to TV-radio stations and manufacturers, sports promoters, sports editors — he insists: “We must have subscription TV if great events are to be kept on the air.” He’s using almost same words FCC Chairman Coy did iix speech befoi'e Assn, of National Advertisers last year (Vol. 6:39), when Coy said he favored any experi- ment “which looks toward the development of a method of keeping everything that is good in America on TV.” At that time, Coy went on to say that he would “give just as much encoux'agement to a union of advertisers . . . paying cost of these events through entrepreneural airangement.” President’s new telecommunications adviser, Haraden Pratt, ex-v.p. of American Cable & Radio Corp., says he expects to have offices in National Security Resources Board headquartei’s set up within 3 weeks. With no date set yet for officially taking over job, Mr. Pratt says he’ll be in and out of Washington, finishing up former job and “getting acquainted” in Washington, after sximmer busi- ness-vacation trip to Eui’ope. As Presidential adviser, he’ll act as sort of “one-man FCC” for govt, radio users, largely military (Vol. 7:31). Telford Taylor, onetime FCC general counsel, who held I’ank of brigadier general in the Ai-my while prosecuting Nuremburg war trials, was nominated Sept. 28 to be Ad- ministrator of the Small Defense Plants Administi'ation, set up to channel more govt, orders to smaller manufac- turers and to encourage subcontracting of prime contracts. He’s presently a New York lawyer, presumably will relin- i quish his practice, including representation of the organ- ized educators in quest for TV channels. McFarland Bill to “streamline” FCC (Vol. 7:4 et seq) this week undeiwent second week’s consideration by House Intei'state & Foreign Commei’ce Committee; meetings re- sume Oct. 2. Bill’s chances of being reported this session are slim, but it’s first time House committee has worked towards reporting bill, though Senate has passed it in several sessions. Excess profits tax relief for telecasters (Vol. 7:37-38) appeared even moi’e probable this week, after Senate ap- proved it on Sept. 28. Little opposition is now antici- pated in forthcoming Senate-House conference. Senate ' rejected all Administi’ation efforts to stiffen tax in any i respect. j TV signals came rolling in recently when cold front j had troposphere kicking up all along Eastern seaboard. One FCC engineer in Washington picked up pictures on all 12 channels, from Boston on down coast. i BUSHED WEEKLY BY RADIO NEWS BUREAU. 1519 CONNECTICUT AVE. N.W.. WASHINGTON 6. D.C. TELEPHONE MICHIGAN 2020 • VOl. 7, MO. 40 October 6, 1951 In this Issue: Broadcasters Have New Cause Celebre, page 2. Imperative Need of Self -Policing Code, page 3. Fever Mounts in ‘Paper’ Freeze Hearing, page 3. More UHF Answers — By Sarkes Tarzian, page Few TV-Radio Construction Turndowns, page 5. Status of Hearing on Comr. Hennock, page 5. For 1952 — NPA Conservation Orders, page 8.- Statistics Point Up Favorable Trends, page 8. Cutbacks Biting Now — Trouble Ahead, page 9. Another Turning Point in Color, page 12. URGENCY OF TV DEMAND-CASE HISTORIES: ^ tremendous is the pent-up demand for TV in non-TV areas that when a small leak occurs in FCC's 3-year-old "dam" — as it did in Denver this week — the impact and reaction are truly staggering. Same pressure of demand, eagerness to get local TV service, is germinating some ingenious techniques — via the "community antenna" method — as exemplified in unique application filed with FCC this week. Police estimated 50,000 Denverites saw World Series during first day alone, on 92 receivers fed closed-circuit signals tapped from transcontinental microwave by promotion-wise Eugene O' Fallon, operator of TV applicant KFEL (MBS). Project got FCC blessing in advance, approval also of network, sponsor and baseball folk. "TV Comes To Denver," shouted 8-column front-page headline in Denver Post, which ran 4-column pictures and column after column of description. Receivers were in Brown Palace and Cosmopolitan Hotels — lobbies, dining rooms, balconies, suites. Police blocked off Broadway, were hard put to control crowds which included about 6000 people at a time. Hallicraf ters sets dominated show, with 75 of them supplied by its distribu- tor McCollum-Law Corp. , all 17 & 20-in. Four other makes were represented with a few — Emerson 5, DuMont 3 (two 30-in.), Stromberg-Carlson 5, Motorola 4, no others. Cost to KFEL v/as $1350 to NBC, $3000 for phone company contract charge plus $100-per-game hookup charge, and 180 a foot for about 7000 ft. of cable. In return, station got $500 from each hotel, plus $30 for each set, and 250 per foot of cable. Signals were received atop Brown Palace, piped to all locations. "We* re not making any money on this." said Mr. 0* Fallon. "We're promoting the station and TV while getting some TV experience." Station has own camera chain which fed programs before and after games. No commercials were sold. So elated is Mr. O'Fallon that he plans other closed-circuit features in future. Wolfberg theatre failed to get approval from baseball commissioner Frick, on 'grounds exception couldn't be made to general ban on theatre TV for Series. ♦ * Community antennas are another symptom of the long-frustrated TV demand (Vol. 7:2 et seq), and this week's mail brought FCC the most ambitious such project yet proposed. J.E. Belknap & Associates, 317 S. Main St., Poplar Bluff, Mo., part- .nership of 5 businessmen, asked permission to install common carrier microwave net- ,work to feed signals of St. Louis and Memphis stations to 15-20 towns. Local com- 'panies would distribute signals to individual homes by wire. Proposal is first of its kind, definitely requires FCC approval, inasmuch as I' radio transmissions are involved. Other existing community antenna installations simply pick TV station signals out of air, send them to homes by wire. Company would set up receiving-transmitting stations 30-40 miles northeast of Memphis and 30-40 miles west of St. Louis. First would kick signals along to Copyright 1951 by Radio News Bureau Kennett, Mo., where they'd be relayed to Poplar Bluff, thence eventually to many other towns. Second would send signals to Mt. Vernon. Ill, for further relay. Initial service would be provided Poplar Bluff and Kennett. Company would operate its own local distribution system in former. 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Y jk ■ 7 -Jic* i.v .{ . ?C^'lip?t - ' - -'■• ^ iiti ,,X»0iiv^2 v^C '' •.: •>t /. ••. ■ o cvi,' ..■aty- r:yf5i-o&.t«7"‘* ' V'\--^Tv f T. ni=^;*/vK‘-'- ’ •.y>r,uu - r-'?* ' 0>f •‘i’’<'ff - ^• : J:'.-;. ••■ •:•/ ’ , V ‘ ' TOCtr:f5^!^*-Vor - ‘.V* - 7' ;’• :;v !c t rC^r :’ V-*' V FOR 1952-NPA CONSERVATION ORDERS: Conservation. . . simplification. . . standardization — these words are heard more and more around govt, production control agencies. Constantly discussed are regulations that would tell practically all indus- tries what they can and cannot do with materials doled out to them. For maximum production from minimum materials by civilian and defense-sup- porting industries, best information is that NPA is planning series of orders and programs to enforce conservation. Most of these orders won't come until next year — probably until second quarter. And industry committees will be asked for advice before they are prepared. Here are examples of restrictions which may be imposed on TV-radio industry — some are already being considered; others merely have been suggested within NPA: (1) Ban on metal cabinets and brass, aluminum and stainless steel trim on TV-radio sets and other electronic equipment. (2) Standardization and elimination of many receiving & picture tube types. (3) Limitation of number of models each manufacturer may produce. For in- stance, NPA could standardize on 14, 17 & 20-in. TV sets and limit manufacturers' lines to one console and one table model of each. (4) Limitation of amount of aluminum in TV and auto radio antennas. STATISTICS POINT UP FAVORARLE TRENDS: "Still going good," is word from all levels of the TV trade — well supported by industry statistics. Final September week, ending Sept. 28, saw production continue to inch up, while factory inventories took another dive of nearly 50,000. It was ninth straight week of declining inventories. Week's production was 81,946 TV sets (1681 private label), up from 78,548 the week before (Vol. 7:39), bringing September's 5 statistical weeks' total to 331,379 (subject to later revision by RTMA statisticians). September output figure compares with August's 146,705, July's 152,306. Thus, third quarter total is 630,390, as against second quarter's 1,134,836, first quarter's 2,199,669 — for 9-month total of just under 4,000,000. Will year's output go much beyond 5,000,000 with 3 months to go? Prospects are good — but it all depends on continued demand for sets and availability of ma- terials to set makers. Right now, inventories are being consumed, and nearly every- body feels confident these will be in reasonable balance to output by end of year. Factory inventory of 462,896 as of Sept. 28 compares with peak of 768,766 last Aug. 3 (Vol. 7:32), and is down from 510,100 end of preceding week (Vol. 7:39). It puts factories at about position they were at beginning of last May, when figure was 474,541. But picture isn't nearly so bleak as then, for distributor inventories then were about 650,000 and dealer inventories were unknown quantity but piling up. Distributor inventory count by RTMA is always month behind factory figures. It stood at about 680,000 at end of August. New Dun & Bradstreet dealer count, also month behind, was estimated at 800-900,000 as of Sept. 1 compared with the 900,000- 1,150,000 estimate of month earlier (Vol. 7:35). Radio production v/as 222,257 units (98,045 private) for Sept. 28 week, with inventories 381,556. Week before, the figures were 240,494 & 388,919, respectively. Month's radio production thus was 1,091,042, which, added to August's 563,407 and July's 548,495, brings third quarter total to just under 2,203,000. First quarter radios were 4,135,111, second 3,730,219 — so 9-month total is just over 10,000,000. Sept. 28 week's radios were 125,373 home, 20,901 portables, 75,983 auto. - 8 - 9 It*s apparent TV-radio trade is cn.ioying same upswing as most other appli- ances still in supply, judging from optimistic reports in business press. "The lift is off the bottom," said report of business survey committee of National Assn, of Purchasing Agents, but it cautions that's "not indicative of a boom in general busi- ness the balance of the year. " Near-term outlook is for higher prices for TV sets, once old stock is gone. New lines are generally priced higher, production is subject to ever-tightening ma- terials controls, probable lower output rate, increasing labor costs. If demand continues high, prices have "nowhere to go but up." Long-term, there's scant doubt about enormous future prospects for TV — once freeze is lifted, new stations built, new markets opened up. That's assuming that, by then, civilian and defense economies are brought into promised equilibrivun. ^ In that connection, it's worth contemplating what GE's Dr. W.R.G. Baker recently listed as 4 principal factors affecting growth of TV after freeze thaws; (1) Economic : "We will still be in the middle of an expanding economy, with our national gross product reaching a new high of some $310 billion or more a year, due in part to the heavy Federal military expenditures, to the Govt.'s deficit spending and to a dropping, but still fairly adequate, supply of consumer products, and a high level of disposable income." (2) Political ; "We are, and barring an all-out v;ar, will be in 1952 living in a garrison state, a controlled economy, with definite limitations on the amount of civilian production and with controls on profits, wages and prices." (3) Production ; "If the present pattern of mobilization is followed, there will not be available for manufacture of TV sufficient critical materials for indus- try to produce more than 5,000,000 sets in 1952. It may even be 4,000,000 or less, if proposed restrictions on critical materials are adhered to rigidly. It might even be fewer sets if nickel is unavailable for receiving tubes. "It takes a long time for many of the military contracts to build up to any volume, and that is particularly true for complicated military electronic equipment requiring a large amount of engineering. The major drain on the supply of critical basic materials will fall most heavily in 1952 and early 1953." I (4) Scientific ; "Improved black-and-white receivers for uhf as well as vhf will be available. Picture tube sizes are still Increasing, No compatible color receiver of an all-electronic type will have been developed to the point that it will be in quantity production by the time the freeze is unfrozen." CUTBACKS BITING KOW-TBOUBLi; AHEAB: Let's not kid ourselves — there'll be tough times ahead. TV-radio-appliance production is bound to dip further as inventories of materials are used up, metal rations get tighter and component shortages develop. Some of the optimistic statements by high govt, officials recently do not appear to be borne out by the facts. It's known that these same men — in off-the- record remarks — see plenty trouble ahead in production situation. While NPA was telling industry groups this week that consumer durable goods may get 10% less copper and alum.inum during first-quarter 1952, for example. Defense Mobilizer Charles E. Wilson reported to the President and the public that civilian manufacturers may get enough materials during first quarter to allow them to operate "substantially at fourth-quarter levels" (see Mobilization Notes, p. 11). This is a view we haven't heard from any other production control official. To satisfy total military and civilian demand for metal in first quarter would require: 205% of total available supply of structural steel; 160% of alloy steel ; 170% of stainless steel ; 166% of copper wire ; 177% of aluminum. 1 Already these shortages have bitten heavily into appliance output. GE and Westinghouse are eliminating from their lines some small appliances such as waffle irons and sandwich grills, and GE is cutting refrigerator output to 50% of first- quarter level. Shortages of nickel, steel, copper and zinc v/ere blamed for shutdown this week of GE's Hotpoint plant in Milwaukee, which idled 600 workers. That material shortages are going to hurt this quarter, is indicated already 10 - by widespread claims of brand-name TV manufacturers that distributors are demanding all the sets they can now supply. Bendix, for instance, says some of its models art on allocation to distributors "despite the fact that production lines... are moving on regular schedules based on copper allotments." "Our own CMP allocations would restrict our fourth-quarter production to a fraction of the 1950 period," declared Magnavox president Frank Freimann this week. " Inventories generally are not large enough to compensate for production curtail- ments in the offing," he said. "The apparent uncertainty that still prevails in relation to the industry is inconsistent with the govt. -enforced production cutbacks that will prevail in the coming months." Another cut in fourth-quarter steel-copper-alumin\im was announced Oct. 1 by NPA — in form of ruling that any unfilled order calling for third-quarter delivery which is not shipped by Oct. 7 must be charged against fourth-quarter CMP allotment. Move was necessary to break log-jam of undelivered orders backed up on mill order boards — but no matter how you slice it, it's a cut in metals for this quarter. Fourth-quarter copper crisis has been relieved somewhat by withdrawal of 30,000 tons from govt, stockpile, but there's still strong possibility some users won't get their full fourth-quarter allotments. And stockpile withdrawals must be paid back within year. Aluminum is now most serious item in fourth-quarter picture — due to the drought- induced power shortage in Pacific Northwest. Although dry spell apparently is over, much production was lost, and aluminiim stockpile is too low to draw on. Acute alvuainum-copper shortage in first and second quarters of 1952 was pre- dicted this week by DPA-NPA chief Manly Fleischmann — because of rising military "take" of these metals. While govt. -sponsored expansion program should blot out the alnmimam shortage by end of next year, he said, "the shortage of copper, like death and taxes, will always be with us." There's less copper available this year than last, in face of far greater demand, says Frank Hayes, NPA's top copper expert; "and in 1952, and riinning into 1953, we will be very fortunate if we can maintain our present [copper] production." Trade Personals: Michael D. Kelly, promoted from asst, to TV sales mgr., Hallicrafters, succeeding Paul H. Eckstein, resigned to form own electronics sales rep firm with offices in Pure Oil Bldg., Chicago . . . John Mahoney, Hallicrafters sales promotion mgr., succeeds Charles J. Nesbitt as adv.-public relations mgr., Mr. Nesbitt joining Critchfield & Co., Chicago ad agency headed by his father . . . Other Hallicrafters executive appointments, mainly promotions, announced this week by Wm. J. Halligan, president; Wm. J. Halligan Jr., communications radio sales mgr., named radio sales mgr.; Wm. S. Wright, works mgr., to operations mgr.; Fred T. Page, ex-Ford, con- troller; J. C. Matthews, asst., to purchasing director; Ru- dolph W. Westerfield, director of procurement, to execu- tive staff . . . James C. P. Long, head chief of Navy Dept, material coordination section, joins Washington engineer- ing staff of Sprague Electric Co. as asst, to John P. Sheri- dan . . . James R. Hill, ex-Herbert H. Horn Co., joins Hoff- man Radio in charge of TV parts warranty program, suc- ceeded as gen. service mgr. at Horn by Clarke Latimer . . . Marshall C. Wells named sales promotion mgr., Hoffman Sales Corp., Los Angeles . . . James B. Ferguson named chief engineer, Link Radio, with F. A. Schaner in charge of govt, accounts; Harold Heimark, commercial; J. W. Campbell, engineering coordination . . . Ignatius Volpe, ex- Air King and Jewel Radio, named chief engineer. Steelman Phonograph & Radio . . . George M. Johnson, South-South- east regional sales mgr., named mgr. of Chicago sales branch, Stewart-Warner TV-radio div. . . . Paul P. Pierson named mgr. of new Crosley Distributing Corp. branch in Omaha; Crosley now operates own branches in New York, St. Louis, Atlanta, Albany, Portland, Ore. SELF-FOCUSING PICTURE TUBES now comprise Du- MonUs entire output, and similar tubes are in produc- tion or planned by other major manufacturers. DuMont, having discontinued manufacture of conventional magnetic focusing types, is producing new zero-voltage “automatic” electrostatic focus tube (Vol. 7:20-21,33-34) in 17, 20 & 21-in. sizes, and will put it into new receiver line. GE is manufacturing its own version of the zero-vol- tage tube, also in 17, 20 & 21-in., but is still turning out magnetic focusing tubes, too. RCA this week announced new low-voltage electrostatic focus 17-in. similar to Du- iMont’s, but with provision for adjusting focus voltage, al- though “focus is automatically maintained.” Sylvania is knoAvn to have similar tube in the works, and Rauland has been making low-voltage tubes for some time (Vol. 7:12). Although new tube is more difficult to manufacture than old types, it makes possible savings in cost of set manufacture, and — more important — in such strategic ma- terials as cobalt, copper and steel. Tube manufacturers variously estimate use of new tubes will save set makei'S from 75?^ to $4 per set by eliminating or simplifying focus circuits. ■ “Ham” radio operators were granted priorities to buy parts and equipment Oct. 4 in NPA Order M-85. Order pro- vides that members of 9 major military and emergency networks can each purchase $200 worth of priority orders on self -certifying basis. Other amateurs will be limited to $100 in rated orders. Regulation permits amateurs to pool their quotas “to meet unusual needs.” The “ham” priority action was requested by defense agencies. Amateur Radio Relay League and electronic parts, components distributors. t Urgent Need for TV Code Commissioner Walker Sounds a Warning On Pregram Excesses by Telecaslers and Broadcasters Excerpts from Address before Board of National Council of Churches of Christ in U. S.; New York, Oct. 2, 1951 Editor’s Note: At the very moment an NARTB committee was completing draft of a TV code (see Television Digest, Vol. 7 :k0), FCC Comr. Paul A. Walker was addressing these severe — and in some instances quite deserved — strictures upon certain telecasting-broadcasting practices. These excerpts are published because we sense a growing undercurrent of reaction against dubious programming, often off-color, more often badly timed; because they reflect the sort of complaints being received by the FCC; and because the venerable Mr. Walker, oldest member of the Commission on which he has sat for 18 years, an elder in the Presbyterian Church, and an ardent TV fan, doesn’t often speak out so sharply — but this time felt he had to do so. His remarks emphasize the pressing necessity for stand- ards of self-regulation and for the entire mdustry’s wholehearted cooperation in the NARTB code effort. shall know the truth, and the truth shall make you free.” These words of St. John might very well serve as a guide to broadcasters and all those who are interested in the im- provement of radio and television service. Unfortunately, there are those who seem to disregard this principle and are more concerned with the financial aspect of broadcast- ing than they are its cultural and spiritual value. A recent issue of the Chicago Daily News carried an article about a television program over a station in Chicago which featured a game of Russian Roulette. As you know, in this game one bullet is put in a revolver, the chamber is spun, the gun is put to the head and the trigger is pulled. The chances are one to six that the one pulling the trigger will be killed. This particular program was broadcast about 9 o’clock in the evening and among its many viewers were five teen age boys who had a spirit of adventure. One of them shot himself after the third toy and died. A writer for the Chicago Daily News commented regarding this tragedy : This is not an isolated incident. It was merely more dramatic and more immediate in its results. It would be good if American youngsters could take care of themselves. Unfortunately, they can’t. They need leading. Leading them to Russian Roulette, to crime, to passion, to horror, as shown on so many television shows is the height of irresponsibility. This unfortunate incident and the comments of the news- paper man about it deserve our most serious thought. It illustrates most dramatically the impact that this new electronic marvel of television can have upon the thinking and behavior of our people, especially our children. Its use for good or evil will to a large extent, I believe, depend upon the character and sense of public responsibility of those who are licensed to operate stations and the construc- tive efforts and helpful assistance of individuals and groups such as your own. Radio and TV Do a Good Job By and large, I think it may be said that radio and television stations do a good job in this country. We have developed a system of broadcasting in the United States which on the whole far surpasses any other in the world. P’or example, we were recently thrilled by the first nation- wide network telecasts which brought the sessions of the Japanese Peace Treaty Conference into the homes of mil- lions of people throughout the land. The construction and splendid performance of this network are a tribute to the genius of American enterprise. The video transmission of the sessions and the commentaries of experts coming from the meeting rooms constitute a superb achievement in mass communication and education. Many radio stations have demonstrated a high sense of public responsibility and have contributed richly to the well-being of the communi- ties in which they operate. A splendid example of this is the First Radio Parish Church of America, which has been carried by Station WCSH in Portland, Maine, for more than 25 years. Commissioner Sterling recently attended its 25th anniversary and paid high tribute to the station and to Pastor Howard 0. Hough who started the church and has faithfully carried it on through the years. Despite such excellent performances, however, we must honestly recognize that much of what we see and hear on American radio and television has little cultural, educa- tional or spiritual value and some of it is positively harmful. The correspondence which regularly comes to the Federal Communications Commission is striking evidence of the public reaction against some of this degrading program- ming. Almost daily we receive substantial quantities of mail from irate citizens who protest the advertising of alcoholic beverages, indecent or profane programs, false or misleading advertising, crime and horror stories, and other types of inferior programs. The other day I received a letter from a distressed woman in Wisconsin pleading for some restraint on TV programs which border on the vulgar and do violence to generally accepted moral standards. What They Complain About As I pointed out recently in a speech to the National Education Association, we have many fine radio and tele- vision programs but we are still plagued with some that border on cheap burlesque; that dramatize tales of horror that make children scream in their sleep ; that contain pro- longed disc-jockey shows with repetitious chatter; that dramatize anti-social behavior and make it appear harm- less and even respectable. I think you may be interested in excerpts from some of the letters which have recently been received by the FCC in which complaints have been made regarding radio and television programs. A gentleman from Milwaukee writes : “As a frequent radio listener, it is my conviction that it has become incumbent on your Department to revise that book of 20 years ago ‘Twenty Million Guinea Pigs’ upward to ‘50 million’. “It seems to me there should be a time limit on commer- cials. Yet, here today we have reducing compounds, hair oils and . . . baby diapers being sold on 15-minute com- mercials. “You don’t know who makes the stuff, you have nothing but the come on of a ‘money back guarantee’ wholly with- out reputation or integrity to go on.” A lady in New York complains of a “phony selling scheme” which has been carried by a station for weeks in which “high pressure sales talks” are used. A protest comes from a lady in Arkansas. She raises the question, “Has radio reached the point where filth and foul smelling programs can be presented under the name of entertainment?” If so, she says, “then kill the whole radio system. . . .” Crime Programs and Juvenile Delinquency An irate gentleman from Louisiana writes: “Why isn’t something done to control the number of crime and horror programs broadcast over all but one of the major networks. Some nights on one network we get as much as three and a half hours straight of crime and horror. “Everyone talks their heads off telling about the constant increase in juvenile delinquency while some networks are permitted to broadcast three to four straight hours of crime and horror at one time. “Why doesn’t someone in authority do something? Or do the ones who could do something care what happens?” Another distressed woman writes that “My little 5-year- old granddaughter sits in utter absorption oblivious to everything else around her,” listening to all the “gruesome murder stories, people shooting and being shot, beating each other up, screaming and dying, etc., etc. These things cannot help but have a bad effect upon the kids.” A woman in Los Angeles writes: “May I as a conscien- tious citizen appeal to you in regard to the appalling amount of crime-detective programs presented on the radio. Fortunately, I can control the listening habits of my own impressionable-aged children but I shudder to think of the many, many younger boys and girls, teen-agers and even adults who listen and are unfavorably influenced by these dreadful, immoral, overdone, over-emphasized crime stories. If just half such programs were removed and replaced by a higher type of presentation, one to cultivate and strengthen rather than break down the public thinking, there would still be an abundance for the ardent detective story lis- tener.” She concludes her letter by saying: “Please give the children something to build on instead of a picture of crime and insanity after which to pattern their lives.” Not long ago a doctor in a large city wrote regarding the program service of two of the three television stations in that city saying they spent the whole afternoon from 3 to 6 o’clock advertising beer and giving race results. ‘Vulgarity and Obscenity’ Recently the Commission received a copy of a resolution adopted by a ministers’ association in a large city deploring the vulgarity and obscenity w'hich characterize many of the programs broadcast by radio and television stations. This resolution reads in part: Through the medium of radio and television, a deluge of bur- lesque show humor, liquor advertising and barroom vulgarity is forced upon us. Our boys and girls are urged to drink. This is repeated again and again and programs glorify drinking liquor. To us it seems that radio and television are more concerned with revenue and with catering to a minority of people with a love for smut than they are the principle of service. We believe that the service motive is a sound business principle and that all forms of recreation, including radio and television, should re-create; that is, should be constructive and promote development and growth. . . We urge an emphasis upon programs which promote a re- spect and love for truth, beauty, goodness and the God given sense of humor. The attitude of some leading citizens with respect to the general quality of radio and television programs is well expressed, I think, by a prominent vu-iter* in these words : • H. A. Overstreet, in The Mature Mind. Radio remains, and increasingly becomes, a technical triumph. But it would not be an exaggeration to say that nine out of ten of the voices that the listener summons when he turns the dial are the voices of mediocrity — ^anct of immaturity; mediocre actors speaking mediocre lines — or actors who deserve better lines trying to inject meaning into the meaningless: mediocre singers singing mediocre songs; mediocre comedians laboring to make old jokes sound new; mediocre commentators sharing the air with their more penetrating and responsible fellows; mediocre quiz masters asking questions and handing out prizes; mediocre advice-givers responding to deep human perplexities with pat mediocre advice. If, from the point of view of man’s maturing, the test we must put to radio is that of its average influence or its most frequently exerted influence, the answer is not reassuring. Opposes Government Censorship Now there are some who have become sufficiently aroused to urge governmental intervention. They honestly believe that the only way to secure the highest quality program service is through government censorship. I, for one, how- ever, do not subscribe to this school of thought. I do not believe that a few officials in Washington should have the power to tell 150,000,000 people what they may hear and see on radio and television. Congress wisely prohibited censorship and limited the authority of the FCC with re- spect to program service when it passed the Communica- tions Act of 1934 and established the agency. While the Commission does exercise authority insofar as the law permits, the improvement of broadcast program service must come primarily as a result of effective leader- ship by responsible citizens and organizations in the com- munity and nation and broadcast licensees who are re- sponsive to that leadership and influence. Churches and their leaders have contributed immeas- urably to the well-being of this country. The words, “In God We Trust,” have a real and profound meaning for most Americans. According to a recent survey more than 80,000,000 of our people are affiliated with one church or another and of this number more than 50,000,000 belong to Christian churches, a substantial portion of which are represented by your organization. I understand that the total membership of your group is about 32,000,000. Religion, therefore, is a vitally important aspect of the American way of life. For this reason, the FCC has con- sistently looked with favor upon the broadcasting of re- ligious programs and has always considered them as an important element of the public interest. In fact, when stations apply for renewal of their licenses, they are re- quired to state what time they have devoted to religious and cultural programs and how much they propose to devote in the future. Most Stations Generous with Time By and large, stations have been generous in providing time for such broadcasts and the files of the Commission show that there has been an over-all increase in the grant- ing of time to churches and other religious groups in the past few years. However, there have been some disturbing examples of stations that have discontinued all religious programs to make way for those which are commercially profitable. Your organization and others similar to it can help to improve this situation. Through surveys and studies of your national and local groups you can continue to keep the general public, the government and broadcast licensees informed of the religious and moral needs of the nation and the radio work that is being done to meet these needs . . . A Nobel prize winner has recently said that science and religion are the answer to the world’s problems. The ad- vances in science are giving us new devices and techniques but we know full well that science alone cannot give us a healthy and happy world. The philosophy and faith Avhich motivate the use of these new scientific tools are crucially important. As Jeremiah has said: “Thus saith the Lord: Let not the wise man glory in his wisdom, neither let the mighty man glory in his might, let not the rich man glory in his riches: but let him that glorieth glory in this, that he understandeth and knoweth me, that I am the Lord which exercises loving kindness, judgment and righteous- ness, in the earth: for in these things I delight, saith the Lord.” 11 - I Topics & Trends ol TV Trade: a $2,000,000 promo- tion— including what is probably biggest giveaway con- , test in history — is planned by Crosley to push its new line of TVs, radios and appliances. “American Way of Life” essay contest, announced Oct. 3, will feature 5000-6000 merchandise and cash prizes, including national first prize of $10,000. In addition, Crosley will present $500,000 to churches and charities selected by contest winners. Pri- mary purpose of huge promotion, said v.p. William A. Blees, is to counteract the “demoralizing” effect of TV- appliance price cutting. Further production cutbacks were predicted by v.p. -gen. mgr. John W. Craig, but he said this will be offset partially by technological advances. DuMont’s industrial color equipment (Vol. 6:9-10) — field sequential, 18 me, 180 fields, 12%-in. monitors — ^will be used to view ramjet engine tests Oct. 9-12 for National Advisory Committee for Aeronautics, Lewis Laboratory, Cleveland. Some 1200 military and aircraft industry vis- itors are expected to observe demonstrations, to be con- ducted by DuMont engineer Patrick Gallagher. RCA Victor’s entry into air-conditioner field, selling units under own brand and made to its specifications by Fedders-Quigan Corp., Buffalo (Vol. 7:39), will come under jurisdiction of distribution v.p. Robert Seidel; RCA dis- tributors will handle, for most part. RCA arrangement with Fedders-Quigan, it’s said, is much same as that of Philco with York Corp. RTMA reports only fraction of govt, orders, unknown percentage of total, but that fraction is illustrative of over- all increase. Second quarter orders totaled $324,493,087, compared with first quarter’s $184,216,795. Radar is big- gest single group, amounting to $187,598,079, “communi- cations apparatus” second with $115,500,969. Picture tube sales by RTMA members in August totaled 210,043, worth $4,327,234, up nicely from July’s 89,144, valued at $1,858,930. Figure for first 8 months is 2,851,222, worth $72,714,437. Of August sales, 98% were 16- in. and up, 93% rectangular. Hoffman Radio ups prices of 7 new models, including $10 more on 17-in. consoles (now $350 & $360), $30 on 17- in. tables (now $260 & $270), $40 on 24-in. consoles (now $635 & $650). 4“ H* ^ 4* Trade Miscellany: New York dept, store sales in Sept., running 8.5% lower than same month of 1950, showed consistent TV-radio declines, according to monthly Herald Tribune survey revealing 11 stores with percentage de- clines ranging from 13 to 83 . . . Kansas City Electric Assn, sponsoring $12,000 campaign of 608 spots on 5 local radio stations to promote TV set sales, theme being “The Richest Man Cannot Buy All the Entertainment Your Family Can Have Free — on TV”; dozen distributors and Kansas City Power & Light Co. have pooled to underwrite campaign . . . August TV set sales in Washington area, according to Electric Institute, totaled 3550 vs. 10,216 in August 1950; cumulative for Jan.-thru- Aug. was 28,829 vs. 47,848 . . . Gimbels N. Y. advertising own-brand TVs (reported made by Regal) at $128 for 17-in. table, $158 console; $148 for 20-in. table, $188 console . . . Zenith shipments during Sept, totaled some $12,000,000, double I: August’s, according to trade reports . . . Crosley reported I planning to add room air conditioner and a dishwasher to li appliance line . . . Magnavox price guarantee, made June i 15 to last to Nov. 1, extended to Dec. 15. GE reached agreement with lUE-CIO Oct. 4 on pact , providing 2V2% pay boost for 70,000 workers in 55 plants, ' with minimum increase of BV2(, an hour, as well as escala- tor cost-of-living wage adjustment providing 1% wage in- . crease for each 1% rise in living cost index, adjustments I to be made March 15 and Sept. 15. Mobilization Notes: Good level of civilian production can be maintained in first-quarter 1952, said Defense Mo- bilizer Charles E. Wilson this week in report to the Presi- dent. He predicted no cutbacks heavy enough to “force many plants to close completely at a time when the mili- tary program does not require the plants nor the man- power.” He pledged effort to keep civilian plants operat- ing above “break-even point,” and said “actual production levels [in fourth quarter] will probably be higher than the allotment percentages indicate, and close to levels that pre- vailed prior to 1950 [because of] inventories of materials on hand, substitution of less critical materials, and many ingenious conservation techniques.” As for shortages of consumer goods, Wilson said they may be avoided in 1952 if demand stays low. “In the radio and TV market, for example, consumer demand has not been high enough to eliminate some unemployment in the industry. An inventory of 2,000,000 TV sets and 3,000,000 radios is available to help offset the temporary produc- tion decreases that will be necessary as military demands upon the electronics industry increase.” TV-radio production chart, illustrating report, shows estimated future output, using 1949 as base. Production in 1950 (7,400,000 TVs, 14,500,000 radios) was 222% higher than 1949, and 1951 production is shown as about 180% of 1949 (or 6,000,000 TVs, 12,200,000 radios). Chart also forecast 1952 production at 5,000,000 TVs, 9,700,000 radios. Mobilization program is passing out of “tooling-up” stage into actual production, said report. Third quarter military deliveries were more than $5 billion, and “by a year from now, the rate should have doubled, reaching $10-$11 billion in deliveries per quarter ...” The defense mobilize!’ went on: “In the field of electronics a relatively small number of high-cost complex radar systems account for 60% of the production dollar. Deliveries to date have been rela- tively low, while the industry expanded its plant and com- pleted its tooling. The delivery rate will triple by next summer. Some of the newly-developed items are already in use. Long-range radar equipment is included in the ‘radar fence’ now protecting our borders; new electronic- controlled weapons are in use by ground, sea and air forces; lighter and more reliable field radio and telephone sets have proved their value in Korea.” * ♦ ♦ ♦ Personnel changes this week in mobilization and re- lated establishments: W. W. Watts, deputy DPA adminis- trator, has relinquished part-time duties in Washington to return to his job as engineering products v.p., RCA Victor; he will continue as a consultant to DPA . . . J. A. Milling, chief, end equipment branch, NPA Electronics Div., to head DPA Electronics Production Board while chairman Edmund T. Morris Jr. is in Europe . . . Robert E. Williams, on leave from Automatic Electric Co., named director, NPA Com- munications Equipment Div., succeeding Luther W. Hill who resumes duties as president of Carolina Telephone & Telegraph Co., Tarboro, N. C. . . . Walter C. Skuce, NPA asst, administrator for production controls, who directed CMP program in World War II and developed present CMP machinery, returns to post with Owens-Corning-Fiberglas, his deputy William C. Truppner taking the NPA job on acting basis . . . Gabriel J. Ticoulat, Crown Zellerbach Paper Co. v.p., named DPA deputy administrator for inter- national problems . . . Ex-newsman Jack O. Gorrie, acting NSRB chairman since April, nominated by President Tru- man for permanent appointment . . . Dr. Robert M. Page, superintendent of radio division III at Naval Research Lab- oratory, Washington, has returned from 3-month survey of electronics developments in Germany for State Dept. 12 - ANOTHER TURNING POINT IN COLOR struggle may well come next 2 weeks — Oct. 9-13 and Oct. 15-19 — when Washington officialdom, including FCC and Con- gress, inspects RCA color piped from New York. All com- missioners were invited to attend any time they choose, and FCC staff is expected second week. Sen. Johnson, prime color goad on Capitol Hill, is due at 2:15 p.m. showings Oct. 11. Other Senators and Con- gressmen are scheduled Oct. 11-12. In New York, thrice daily shows will be thrown open to public for first time. They were heralded by full-page ads in New York Times and Herald-Tribune, headlined “Now You Can See RCA Color Television.” Demonstra- tions will be in Center Theater only. Request to transmit color over RCA-NBC Bridgeport uhf station was filed this week, reason being that WNBT plans shortly to begin commercial programming 7 a.m., leaving no time for on-the-air field tests during working day. Pickups in Bridgeport area are also planned. * * ilf From Zurich, Switzerland, came excited report from newsmen, as well as from 20th Century-Fox’s president Spyros Skouras. They’d just seen CBS system projected on 9xl2-ft. screen with Eidophor system (Vol. 7:29,38). Cabled New York Times’ correspondent: “Under labora- tory conditions . . . pictures were very vivid, all color per- fectly natural, all shadings delicate and of exquisite reality.” UP reported: “Newsmen and spectators . . . termed the quality of the pictures excellent and many be- lieved they outdid the best color films so far shown in movie theaters.” “A new era of prosperity” for film industry was pre- dicted by Mr. Skouras, who said 150 U. S. theatres should be color-equipped by April 1952. Thereafter, he said, ex- pansion will be at clip of 150 at a time, mounting to total of 2000 or so. Transmission was by cable from adjoining room, fea- tured an actress, fruit, flowers. Though picture was 9x12 ft., Eidophor engineers say light output of system allows pictures with area 8 times as great. * 4c CBS’s first football colorcast of California-Pennsyl- vania game Sept. 29 (Vol. 7:39) apparently didn’t create much stir. Stations complained about paucity of color sets, hope to gain public interest as CBS-Columbia pro- vides more receivers later in season. Complaints from , viewers, who couldn’t figure out incompatible jumble on their screens, was kept at minimum by slides — transmitted at approximately 5-minute intervals via standard black-&- white — informing public what was going on. Reactions to colorcast football varied enormously. | Wrote New York Times’ Jack Gould: “Colors were very erratic in quality and far from true . . . Different camera angles or different conditions of lighting saw the same color vary badly . . . Toward the end of the game there was an element of fatigue in continued v/atching, a situa- tion that was not relieved by the patches of red, blue and green that a viewer could still see, every time he looked away from the screen . . . There may be a big difference in watching color TV for 20 minutes and watching it for 160 minutes.” Elmore Bacon, Cleveland News: “While color TV is a reality it is still in the novelty class. So don’t start throwing away your black-&-white TV sets . . . The green grass background was somewhat too vividly green. The red in the uniforms a violent red. And the green back- ground occasionally took on a red haze. However, in the distant shots the colors identified the two teams more distinctly than black-&-white . . . When bigger and better color broadcasting comes about, it will be fine for many programs. For others the black-&-white will be just as interesting.” Others disagreed. Wrote Variety’s Joe Cohen : “Color is far superior to black-&- white for football.” Harold I Brown, New York Herald Tribune: “More of the atmos- phere . . . made me feel I was right at the game.” Mickey Greenman, Quick: “The best thing I’ve seen yet on color TV. The colors were so life-like, I felt I was part of the crowd at the game.” • • * * Repercussions of Lawrence tube demonstrations (Vol. 7:38-39) continue, stirring up lots of queries. Consensus ' of those who’ve seen it, including engineers, continues to be: “Not too good yet, but give them some time. They may have something.” Paramount Pictures v.p. Paul < Raibourn, speaking this week to New York Society of < Security Analysts, said company doesn’t intend to go into mass production of tube, will leave that up to tube manu- facturers it hopes to license. Present intention is to make enough tubes for public demonstration. TclGCSSliny NoIgs: First on TV, then movies — that’s plan of actress Rosalind Russell for story she owns. Never Wave at a Wac, in which she’ll appear on CBS-TV Schlitz Playhouse Oct. 18 as sort of test. If it clicks, it will be shot by her pi'oducer-husband Frederick Brisson as fea- ture film on location at Fort Lee, Va., budgeted at $750,000, to be released by United Artists . . . Song plugs via TV are very effective, says Charles Sanford, director of Show of Shows. Despite music publishers’ squawks that TV doesn’t allow for a concentrated song drive, he told Va- riety, “a good visual presentation of a new tune can spark enough interest to hypo sheet music and disk sales [and] doesn’t require the saturation previously needed in radio” . . . AFM’s Jimmy Pelrillo, after conferring with Holly- wood Local 47 last week, predicted 70% of TV shows will originate in Hollywood within 2-3 years . . . KNXT will be call letters of CBS-Hollywood’s KTSL when new Channel 2 transmitter starts operating atop Mt. Wilson about end of this month . . . Henry Christal, ex-Petry partner, form- ing own i-ep firm, radio only, is reported to have commit- ments from WDAF, WTMJ, WBEN, WKAS, KFH . . . New WLTV, Atlanta (Vol. 7:39), names Harrington, Righter & Parsons as national rep . . . Top educational and civic leaders comprise TV Community Council formed by KING-TV, Seattle, headed by Mrs. Raymond B. Allen, wife of U of Washington president, to advise on daily 11:30- noon weekday educational-informational programs aimed primarily at housewives . . . Fort Worth’s WBAP-TV cele- brated 3 years on air Sept. 28 by holding staff party for 153 employes on 1 p.m. What’s Cooking? show . . . Miami News (WIOD) editors meet before cameras of WTVJ weekdays 6-6:10 p.m. to discuss day’s news in program titled Meet the News . . . Successful “how” feature on KTTV, Los Angeles, sponsored by 4 local plant and fertilizer firms, is Garden Chats with Joe Littlefield . . . WAGA-TV, Atlanta, raised base hour rate as of Oct. 1 from $500 to $650, one- min. from $80 to $104 . . . WXEL, Cleveland, raised hour rate Oct. 1 from $725 to $800, one-min. from $125 to $160. Thirteenth application for uhf to be filed with FCC was that of WGBI, Scranton, Pa., CBS outlet owned by Megargee family, seeking Channel 22. Two more vhf ap- plications filed this week brought grand total pending to 445 — cowboy actor Gene Autry’s KOOL, Phoenix, asking for Channel 10, and KIFI, Idaho Falls, Ida., asking for Channel 3. [For further details about these applications, see TV Addenda 13-M herewith; for list of all applications pending, see TV Factbook No. 13 and Addenda to date.] BUSHED WEEKLY BY RADIO NEWS BUREAU, 1519 CONNEQICUT AYE. N.W., WASHINGTON 6, D.C. TELEPHONE MICHIGAN 2020 • VOL. 7, NO. 41 October 13, 1951 ' New TV Stations Won’t Lack Financing, page 1. FCC Fears ‘Censorship’ in Benton Bills, page U. In this Macy-O’Neil TV-Radio Merger, page 2. First Quarter Metal Cuts — Forewarning, page 8. Issue • * Against TV Sports Blackouts, page 3. Trade Brisk — Sales Outrunning Output, page 9. rrsT ni? T?T?Dr>r»T'c . Scores in New York-Washington Tests — Shows Next on Theatre-TV Screen — ^ CUL.uk KLiKUKlS: -pj-ade Reactions to CBS Receivers — Eidophor Theatre-TV & Paramount Plans, pp. 6-7. NEW TV STATIONS WON'T LACK FINANCING: Plentiful flow of capital into new TV station construction and operation is assured, once FCC lifts freeze and starts granting CPs i — possibly sometime next spring (Vol. 7:36-37). Eager entrepreneurs, now balked by the freeze and frustrated by unavailing 'efforts to buy existing stations, are literally straining at the leash to get into .the field. Here are some of the current trends : (1) Just about every existing station has had offers to buy — even those owned by some of the longest-established and best-heeled interests in radio, like the Chicago Tribune (WGN-TV), Kansas City Star (WDAF-TV) , Detroit News (WWJ-TV) and Milwaukee Journal (WTMJ-TV). I Purchase offers for all or part interest have sometimes mounted to fabulous figures, but it's apparent few if any of the 108 stations can now be had that way. \ (2) Theatre owners, spurred by recent TOA convention report (Vol. 7:39), will be among the most ardent seekers after channels, once these are available, com- peting against or joining with other local interests in corporate applications. You can expect scores of such applications from now on, possibly as many from theatre people as from the radio and newspaper interests who comprise the bulk of the 446 applications already on file with FCC. Only 4 stations, as of now, are owned outright by theatrical interests, as listed on page 31 of our TV Factbook No. 13. Same volume, incidentally, plus weekly Addenda to date, provides complete listing of all applications filed thus far. (3) Even the slick magazine people are showing intense interest in station lownership — in possibility of getting hands on a medium that not only threatens advertising competition but is also a "natural" for self-promotion and at same time llooks like a profitable business per se. 1 Time-Life-Fortune , Saturday Evening Post, Collier's , et al, have done con- jsiderable research into TV's "impact" — Time-Life also buying network time now and Ithen, besides producing films for TV, while Post is regular network program sponsor. But though Henry Luce offices admit "multiple applications for franchise may be in the cards," only one such publisher has as yet actually moved into station field; Meredith Publishing Co. (Better Homes & Gardens, Successful Farming), which founded WHEN in Syracuse 3 years ago and recently purchased WOW- TV, Omaha (Vol. 7:32,39). I (4) Several Washington radio attorneys have been instructed by clients to "get stations where you can, vhf or uhf, either through application or purchase." Most such instructions are from radio station owners who missed the boat jonly a few years ago, when FCC was literally begging for TV franchisers. Eagerness to get into swim now is epitomized by CBS's proposed purchase of WBKB, Chicago, for j$6,000,000 and its v.p. Joseph Ream's recent candid statement to FCC on reasons why ^networks must own and operate key TV outlets (Vol. 7:36). (5) Present TV station owners and others hope to expand holdings, evident by their multiple applications and by astute George B. Storer's $1,050,000 purchase of Copyright 1951 by Radio News Bureau San Antonio's KEYL (Vol. 7:30) — approved this week by FCC, making 4 he now owns. In , last few weeks, we've also reported how Taft interests (WKRC, WKRC-TV & Cincinnati " Star-Times) bought into WBIR, Knoxville, and how owners of WTCN & WTCN-TV. Minneapo- | lis (Ridder newspapers) bought into WEMP, Milwaukee — both minority stock purchase i deals with frankly avowed idea of bolstering future quests for TV (Vol. 7:38-39). i There will be many more such "junctions of interest", possibly conducing j to fewer competitive applications and speedier local grants. | (6) Financing won't be hard to swing for well-positioned local interests who win grants. Aside from its intriguing nature, the earnings potential of TV makes it an attractive investment through usual channels (local bankers). When Variety reports, as it did recently, that New York's big Chemical Bank & Trust Co. is making production loans for TV films, although that syndication field is mere 108 stations, the much-more-profitable prospect of station operation would seem to be bankable indeed. At this moment, a New York financial group is known to be perfecting plans to finance new stations by way of equipment loans — a project which, if approved by FCC, may help many small operators pay their way in. ; Foregoing picture could change — but as of now it's safe to say that many millions in new capital would flow into telecasting readily if FCC would but open the floodgates. And just as certain is fact that "bargain buys" in existing stations aren't available any more. There have been only a dozen TV station sales to date — listed on p. 12. BACK OF MACY-O'NEIL TV-RADIO MERGER: There's much more than meets the eye in vague statement released Oct. 10 that R.H. Macy & Co. (WOR & WOR-TV) and General Tire & Rubber Co. (Thomas S. Lee Enterprises) will merge their radio and TV interests in one operating company in which General Tire will hold "substantial majority." Details weren't divulged, and it may take 60 days to file requisite applica- tions with FCC. But these are some of the discernible factors; (1) Merger will give virtual control of Mutual Broadcasting System to new firm, to be headed by Thomas F. O'Neil, who is also chairman of MBS. Only 35, that astute president of big General Tire's TV-radio subsidiary has long envisioned MBS changed from a mutual operation to a corporate entity operating for a corporate profit, like its competitors. At present, his Thomas S. Lee Enterprises Inc, owns j 38% of MBS stock, with Macy's owning 19%, Chicago Tribune (WGN & WGN-TV) 19%, and ' some 7)4% each owned by Gimbels of Philadelphia (WIP) , Cleveland Plain Dealer (WHK & WHKC) & CKLW of Windsor-Detroit. Though MBS bylaws preclude one company from voting more than 49%, there's scant doubt about who's in the driver's seat. O'Neil's group owns WNAC-TV, Boston. I and KHJ-TV, Los Angeles ; and in radio the Yankee Network of New England (owning WNAC, Boston; WEAN, Providence; WONS, Hartford) ; and Don Lee Network (owning KHJ, | Los Angeles; KFRC, San Francisco; KGB, San Diego). (2) With 3 TV outlets thus so strategically placed, plus Chicago's WGN-TV, young Mr. O'Neil may have ideas of another TV network after freeze lifts and new | outlets come into being. But as one company, merged firms (name not yet indicated) can apply for or buy only 2 more stations of own in view of FCC's 5 limit, whereas separately they could seek 5 each. Macy's once owned what's now WTOP-TV, Washing- ton, sold it at nice profit. O'Neil sold KTSL, Los Angeles, to CBS for $3,600,000 when he bought Don Lee group, then bought KFI-TV there (now KHJ-TV) for $2,500,000. | (3) Merger is designed to bolster MBS against inroads of TV and of rival I networks, particularly in light of NBC's revolutionary new plan for revising station! affiliation and network advertiser relationships (Vol. 7:40) — albeit merger was cooking for quite awhile before NBC revealed plan last week. One facet of NBC plan , is to add some 100 more radio station affiliates on "no pay" basis for sponsored programs that's not unlike present arrangement MBS has with most of its affiliates. This may presage intensified network rivalry in wooing affiliates. (4) New company may even venture into TV-radio manufacturing, a la CBS, for it's known that O'Neil has been exploring possibilities — probably encouraged by 1 3 big parent manufacturing company, which is headed by his father. It's reasonable guess Macy's and associated stores might like own manufacturing source for private- 1 label TV sets. And that General Tire dealers could become retail outlets for TVs. I (5) Stockholdings of Macy's in new corporation aren't known yet, but they : are likely to be much less than half General Tire's by reason of fact latter puts more into pot and WOR-TV has been running deficits since it was founded 2 years ago. While WOR has always been one of radio's most profitable stations, late- starter WOR-TV (est. Oct. 5, 1949 as last of New York's 7) has only lately been pulling out of the red. Latest Macy's annual report, for fiscal year ending July 28, shows TV-radio and other "non-store" profit of $585,994. But whereas Moody's Manual 'Shows 1950 fiscal year's deficit in this category was $285,509, Macy's report says deficit actually was only $120,989. TV obviously accounts for slide, for profits for pre-TV's fiscal 1949 were $728,905; 1948, $968,526; 1947, $1,045,605; 1946. $1,132,691; 1945 , $1,323,449 — nearly all attributable to WOR. GOVT. ACTS AGAINST TV SPORTS BLACKOUTS: Restrictive agreements limiting telecasting and broadcasting of sports events will be cracked wide open if Justice Dept, wins its "test case" against National Football League. Legality of National Collegiate Athletic Assn.'s college football TV "exper- iment" and International Boxing Club's theatre-TV hookup will be in serious doubt if courts uphold govt.'s "monopoly" contention against NFL. Baseball's major leagues, apparently seeing handwriting on the wall, this week purged themselves by repealing all restrictions on telecasting and broadcasting of member clubs' games. Prodded by complaints of TV set owners. Govt.'s anti-trust division Oct. 9 filed suit in Philadelphia against NFL and its 12 member clubs, seeking injunction against league rules restricting telecasts and broadcasts. This means the long talking and investigating phase of Justice Dept.'s probe of sports-TV is over — a clear-cut decision is now up to the courts. Said govt.'s ace trust-buster asst, attorney general H. Graham Morison: "We are filing now what we consider our best case. If this is successful, lit is likely that action will be taken in the cases of all other sporting events. including college football, professional baseball and boxing, in which telecasts and broadcasts are restricted." Obviously anticipating Justice Dept, action, baseball's major leagues met in New York day before Govt, filed football suit, wiped from their books rule governing telecasting and broadcasting. With repeal of rule 1-D, major leagues relinquished all authority over telecasts and broadcasts of member clubs' games — so that such larrangements now are entirely up to the clubs themselves. Repealed rule provided that no club could permit telecasts or broadcasts of iits home games from any station located within the home territory of another major or minor league club while that club is playing a home game — almost exactly the same as the NFL rule which prompted govt. suit. Anti-trust probers have also been looking into NCAA's "controlled TV experi- ment" — under which assn, has doled out certain of its member colleges' football games to home TV, kept others off TV screens and encouraged exclusive theatre TV and iCBS color telecasts. Federal grand jury probe of alleged monopoly in professional boxing began :this week in New York. Probers will probably delve into International Boxing Club's |theatre-TV exclusives and home TV-radio blackouts before they're dismissed. I I Ticket to sports event is a commodity, said Justice Dept, in action against |NFL. This is basic premise of monopoly suit; "If any sport sells a ticket, it is 'offering a commodity on the market. The public should be able to buy what it wants ;free of any monopoly and free of any restraint. This is not so now." Said Morison: "We feel that the American people are entitled to have, free of monopoly, the right to see or hear what they want." 1 Govt, isn't fighting to guarantee telecasters rights to all sports — it's - 4 - hitting only at what it calls "monopolistic restraint." Justice Dept, feels that authority to sell TV-radio rights should belong to each individual team — not the leagues and associations. Morison's statement shows govt.'s attitude; "It is hoped that this action will make broadcasts and telecasts of profes- sional football games more readily available to the public by removing restrictions on the right of each football club to determine for itself whether and on what terms it will sell its broadcast and telecast rights. We consider all restrictions of this type, wherever imposed, to be in violation of the anti-trust laws." NFL has 20 days to file answer in Philadelphia U.S. District Court. Purpose of suit, said Attorney General J. Howard McGrath, is "to clarify the position of broadcasting and telecasting in relation to the sports world; it involves some of the most often complained of and aggravated restrictions on the dissemination of athletic events to the public." FCC FEARS 'CENSORSHIP' IN RENTON RILLS: Sen. Benton's bills on TV are neither neces- sary nor desirable, FCC majority told Senate Interstate & Foreign Commerce Committee in letter released by Committee this week. Commission turned thvunbs down on all facets of bills (S.J. Res. 76 and S. 1579) which would; (a) set up 11-member program advisory board to report to Con- gress and Commission; (b) require FCC to grant 1-year TV licenses ; (c) force FCC to "encourage" subscription TV. With Comrs. Coy and Walker dissenting on advisory- board facet of bills. Commission said; (1) TV licenses are now for one year only and FCC's discretion in setting license period shouldn't be taken away. (2) Tests of subscription TV have been authorized. It's unnecessary to tell Commission to encourage it, since Communications Act requires FCC to "encourage the larger and more effective use of radio in the public interest." (3) Advisory board, as contemplated in the Connecticut Senator's bills, involves "dangers of censorship". Amplifying, Commission warned that while FCC is "expressly precluded from exercising any powers of censorship," new board wouldn't be. FCC was also worried lest board encroach upon Commission's functions, despite fact bill calls it "advisory". Comrs. Coy and Walker were minority on board idea, believing "worthwhile results may flow from the type of study proposed in the bill." But they didn't go all the way with Sen. Benton, since they said; "Such a group, if completely separated from the Commission. . .and having no authority with respect to licenses, could conduct such studies more effectively without arousing fears among broadcast licensees that any recommendations they might make constituted compulsion of any kind... It is not believed that the [board's pro- posed functions] in any way involve censorship." They suggested that board report only to Congress, and that it should have power to hold hearings. Exemption of many TV-radio station construction projects from NPA building curbs (Vol. 7:31-33,35- 40) may result from current discussions at high govt, levels. NARTB is pushing hard to have broadcast sta- tions reclassified as “industrial facilities” — which would permit broadcasters to write their own priority orders for controlled materials up to 25 tons of steel, 2000 lb. copper and 1000 lb. aluminum quarterly without applying to NPA for construction go-ahead. Broadcast building presently is classified as “commercial” construction, requiring appli- cation to NPA for all materials in excess of 2 tons of steel, 200 lb. copper, any aluminum at all, on quarterly basis. NPA this week reclassified newspaper and other pub- lishing establishments from “commercial” to “industrial” categories — and NARTB now sees good possibility of simi- lar reclassification of TV-radio stations, since top govt, officials gave assurances months ago that broadcasting stations and newspapers would receive equal treatment under NPA construction regulations. NARTB says it’s satisfied that NPA officials have “leaned over backwards” to give broadcasters a fair break in allocation of building materials for fourth quarter. Score so far is 16 TV-radio projects approved, 6 denied, more approvals to come (Vol. 7:37-40). NARTB says it hasn’t received single complaint from broadcasters of un- fair treatment by NPA. ■ Denver’s accolades, well-merited, are heaping on KFEL owner Gene O’Fallon, veteran broadcaster who once was strongly anti-TV but who brought World Series to that city via special hookups of receivers into transconti- nental relay (Vol. 7:40). “We would like to pin some Colorado columbines [on] O’Fallon and general manager Frank Bishop for the very swell ‘production’ job they gave Denver in our town’s first viewing of TV,” wrote Denver Post’s Jack Carberry Oct. 8. “It was a swell show and it will be nice indeed when Denver and the Rocky Mountain area get TV in the home in 1953 [which] is as soon as anyone can expect it.” Newspapers devoted dozens of columns of news and pictures to TV over period of week. 5 Sialion Accounts: First early-moming sponsorship of TV news program is claimed by WPTZ, Philadelphia, with sale of 8 a.m. live news-sports strip to Tom Thumb Donut Corp., thru Abner J. Gelula & Associates, Philadelphia; WPTZ says Sept. Telepulse survey gave 8 a.m. news a i rating of 2.-5 or average of some 22,000 homes ... New >' Kathi Norris Show on WABD, New York, 11-noon Mon.- ‘ thru-Fri., now has these participations : Philadelphia Dairy ■ Products Co. (Dolly Madison ice cream), thru Sheck Adv.; Eastern Div., A & P Tea Co. (Jane Parker bakery prod- ucts), thru Paris & Peart; Seabrook Farms (frozen foods) & John G. Paton Co. (Golden Blossom Honey), thru Hilton i & Riggio; Personal Products Corp. (Co-Ets), thru Young & Rubicam; Louis L. Libby (pre-cooked chicken & onion rings), thru Hicks & Greist; Ulman & Co. (Princess Place Mats), thru Posner-Zabin . . . CBS-TV Spot Sales reports placing these syndicated film features: Hollywood on the Line, on WDAF-TV, Kansas City, for Katz Drug Co.; Strange Adventure, on KING-TV, Seattle, for Standard Service Tire Co., and on WOW-TV, Omaha, for Max I. ! Walker Cleaners; Cases of Eddie Drake, on KTSL-TV, Los Angeles, for Thrifty Drug Co. (27th station) . . . Pacific Olive Co., Visalia, Cal., plans TV-radio spots Oct.-thru- i Feb. to promote California olives, thru Abbott-Kimball Co., \ Los Angeles . . . Vitamin Corp. of America (Rybutol) now placing its Lorraine Cugat Show, kinescoped from live performance on KECA-TV, Los Angeles, on ABC-TV’s I other 4 stations, thru Milton Weinberg Adv., Los Angeles, and Harry B. Cohen Adv., N. Y. . . . Borden Dairy spon- : soring Ransom Sherman in weekly Mon. afternoon show I on WBKB, Chicago, thru Young & Rubicam . . . Zenith , Radio, now buying spot TV-radio, sponsoring Latin Car-ni- val on WJZ-TV, New York, Sun. 11-11:30 p.m., coopera- ' tively with Winston Stores, thru Albert Blake Associates ... Florida Citrus Commission has upped TV-radio ad budget to $407,000 for TV, $253,000 for radio, placed i through J. Walter Thompson, N. Y. . . . Among other ad- vertisers reported using or preparing to use TV : American Buslines Inc., thru Hanson & Hanson Inc., Chicago; Old Dutch Coffee Co., thru Elliott Nonas Adv., N. Y.; Denni- son’s Foods (food products), thru Biow, San Francisco; Jenny Inc. (women’s apparel), thru Associated Adv. Agency, Cincinnati; Seal Rite Caulking Co. (caulking compounds), thru Davis-Daniels, Detroit; Industrial Tape Corp. (Texcel cellophane tape), thru Kenyon & Eckhardt, N. Y.; Shell Oil Co., thru J. Walter Thompson, San Fran- cisco (KTLA & KRON-TV) ; Denver & Rio Grande West- ern Railroad Co., thru Axelsen Adv., Denver (KSL-TV) . : Network Accounts: Chevrolet sponsors Dinah Shore j from Hollywood starting Nov. 27 on NBC-TV, Tue. & Thu. 7:30-7:45, thru Campbell-Ewald Co., Detroit; time is be- ing vacated by Van Camp’s Little Show . . . Emerson Drug I Co. (Bromo-Seltzer) will present special football roundup show between transcontinentals for Gillette-sponsored Army-Navy and Westinghouse-sponsored Notre Dame- USC games on NBC-TV, Sat., Dec. 1 (Vol. 7:40) . . . Na- tional Carbon Co. (Prestone anti-freeze) Oct. 14 starts sponsorship of 12:30-1 portion of Take Another Look, I filmed football show, on CBS-TV, Sun. 12:30-1:30, thru William Esty . . . Longines-Wittnauer Watch Co. Nov. 22 sponsors Thanksgiving Day Festival on CBS-TV, Thu. 5-6, thru Victor A. Bennet . . . Waring Products Corp., subsid- j iary of Claude Neon Inc. (Waring blendors & steam irons) starting Oct. 19 buys participation in Fri. segment of Homemakers Exchange on CBS-TV, Mon.-Fri. 4-4:30, j thru Hicks & Greist Inc., N. Y. . . . Hollywood Candy Co. I begins weekly sponsorship Oct. 27 of Hollywood Junior I Circus on ABC-TV, Sat. 10:30-11, thru Ruthrauff & Ryan, Chicago . . . Chesterfield reported readying sponsorship of I Dragnet on NBC-TV, time & date unknown. I 1 Personal Holes: WilUam R. McAndrew, gen. mgr. of NBC’s WRC & WNBW, Washington, promoted to director of NBC-TV news & special events, moving to New York Nov. 1; his successor is Gene Juster, program director, with Charles deLozier moving up to asst. gen. mgr. . . . Mark Woods, ex-president of ABC, joins with J. R. War- wick, ex-v.p., Warwick & Legler, to found new ad agency. Woods & Warwick, Chrysler Bldg., N. Y. . . . Noran E. Kersta, ex-NBC-TV operations chief, recently with Wm. H. Weintraub Adv., has established Noran E. Kersta Co., TV consulting-advisory service at 143 Meadow St., Garden City, N. Y., telephone 3-1075 . . . Peter Storer named public service director of WJBK & WJBK-TV, Detroit, controlled by his father George B. Storer . . . Norman H. Sloan, ex- KECA-TV, named coordinator of TV production, ABC Hollywood . . . Don Foley, ex-NBC, joins WCBS as director of advertising-sales promotion, succeeding Robert Patt, now holding similar job with CBS-TV . . . J. A. Hicks, ex- KEOP, El Paso, named film director, KEYL, San Antonio, replacing Robert Dalchau, joining Army . . . Frank Mayer, from RKO-Pathe, named production mgr., Princeton Film Center . . . Albert A. Chesnes named mgr. of Paramount’s theatre-TV dept.. Jack Hammer named supervisor of thea- tre-TV film processing . . . Dick Pitts, ex-Council of Mo- tion Picture Organizations, joins Theatre Owners of Amer- ica as public relations chief . . . Hal Hackett, chief of MCA’s TV dept, shifted to TV dept., which has also added Alex March, ex-Wm. Morris. Telecasting Notes: Big turnout of both members and non-members of NARTB-TV is assured at final code- formulating meeting in Chicago’s Hotel Stevens, Fri., Oct. 19. Intensity of interest in problem of self-control, be- fore either officialdom or the bluenoses step in (Vol. 7:40), is indicated by huge demand for extra reprints of FCC Comr. Walker’s recent speech before Federal Council of Churches of Christ in U. S. — a temperate, though critical, appraisal of current faults of telecasters-broadcasters (see Special Report, Oct. 6). Both Comr. Walker and Tele- vision Digest have had requests for extra copies running into the hundreds . . . Ironically enough, NARTB-TV has thus far been able to persuade only 68 of the 108 stations, only 2 of the 4 networks, to join association — this despite admirable work it has done both on program standards and on excess profits tax relief . . . Another AM join- ing NBC as result of relationship knitted by TV: WNHC, New Haven, operated by same interests as WNHC-TV; on Oct. 8 New Orleans’ WDSU (WDSU-TV) shifted from ABC to NBC . . . WOOD-TV are new call letters of former WLAV-TV, Grand Rapids, effective Oct. 19, in conformity with recently approved purchase of station by Bitner inter- ests (Vol. 7:37); new rep is Katz . . . Dixie Drive-In The- atres president, Harrison Robinson, one of stockholders in new WLTV, Atlanta; holds 12%% . . . Balaban & Katz’s WBKB, Chicago, will shortly take over Garrick Theatre, owned by B&K . . . WKY-TV, Oklahoma City, now begins telecast day, weekdays, at 9:30 a.m., moving forward from 1 p.m. as of Oct. 1; Saturday opening is 8:45 a.m. . . . WOR-TV, New York, now signing on at 10 a.m. weekdays with test pattern, followed by Telefax News, “newspaper of TV,” 10:30 a.m.-12:30 p.m. . . . Educational world watching closely results of televised credit courses for shut-in students of high school age titled The Living Blackboard and starting Oct. 15 under auspices of N. Y. Board of Education on WPIX, Mon.-Wed.-Fri. 10:45-11 a.m. . . . Successful contribution to education via TV on Newark’s WATV is Junior Town Meeting, debates between New Jersey High School students, Wed. 8-9 p.m. . . . WTVN, Columbus, has acquired 3 acres at Harmon & Griggs Sts., will ask NPA for authority to construct TV Center, including one 3000-ft. studio. AFTER GLEANING KUDOS on all quarters this week, RCA color was set for another week of thrice-daily New York- Washington showings — including Oct. 16-19 demonstrations of theatre TV in color (on 9xl2-ft. screen) in New York’s Colonial Theatre. Those who have seen test projections of RCA’s the- atre TV in color, picking up same shows being demon- strated via radio and via coaxial, claim it’s just as ex- citing an advance as the home variety. It’s called “com- patible with existing equipment,” uses 3 kinescopes. RCA’s next move toward getting its color system adopted isn’t being revealed. But it’s apparent the com- pany is so confident now that it’s willing to re-approach FCC alone without necessarily waiting for rest of industry (through National Television System Committee). When RCA and/or NTSC will again petition FCC is unknown, as is time FCC will wait, after petition, before holding new hearing. Only thing certain is that Com- mission has cleai’ed deck for freeze— and freeze only — for next few months, and has theatre-TV hearing scheduled to start Feb. 25. :jc ^ SENATOR JOHNSON and FCC Comrs. Coy and Walker were among capital VIPs who watched showings this week. Coy couldn’t be reached for comment. Walker sim- ply said he saw “an improvement.” Sen. Johnson was a little more expansive, saying: “I’ve seen many of these demonstrations, and there’s been a gi'adual improvement — all headed toward perfec- tion. It was very good — beyond my expectations.” He congratulated and shook hands with RCA chairman Sarnoff, asking several questions about transmissions via closed circuits, microwave and coaxial. Though 10 a.m. showings were switched from time to time between micro- wave-coaxial, being broadcast, afternoon shows must be closed-circuit under FCC rulings. Most significant was fact that Sen. Johnson showed up at all, for Congress was in thick of critical legislation and he was leaving next day for South America. No other members of Senate or House Interstate & Foreign Commerce committees could get to demonstra- tions this week, though many are expected next week. All other FCC commissioners are also expected next week. FCC staff was urged to attend in memo circulated by chairman Coy early in week, with result they came by dozens. Several contacted indicated they were most fa- vorably impressed. Even solicitor general Philip Perlman, who lambasted RCA mercilessly during Supreme Court argument (Vol. 7:13), expressed astonishment at quality of pictures. ^ Reaction of press and laymen was almost uni- versally enthusiastic. Even those reporters who’ve championed CBS conceded RCA has good pictures, though they still talk of tri-color tube sets being too costly and mass production too far off. Several newsmen who have covered various phases of the Washington controversy, and have seen comparative demonstrations, were outspoken in their convictions that the system cannot be held back. “They’ve got it now — no doubt about it,” one of these was heard to remark. First purpose of demonstration was to show network transmissions, over both wide-band microwave and narrow- band coaxial. Both worked perfectly, one just about as good as other. For microwave, signal is simply fed from New York to Wasliington just as if it were ordinary black-&-whitc. For coaxial, signal is heterodyned down to 2.4 me, to fit into 2.7-mc cable, then heterodyned back up in Washington. RCA showed equipment needed for processes; it occupies one rack. Average man finds it difficult to distinguish between results of the two transmissions, in closeups at least. Slight difference in resolution was sometimes noticed, no change in colors. Though RCA went to great pains to show coaxial transmission, spokesmen pointed out that much of AT&T’s facilities is wide-band, most will be. * * * « Liveliest showing was that for press, 10 a.m., Oct. j 9. Dr. Elmer Engstrom, RCA Princeton Labs chief, was kept on his toes answering questions. His responses: (1) More field-testing will go on before FCC is peti- tioned to reopen color issue. RCA is continuing work with NTSC. System meets all technical criteria laid down by FCC, but there’s “subjective” factor — what one likes an- other may not. Colors can be reduced or intensified by turn of knob on receiver, according to viewer’s taste. (2) It would take 1-2 years to get into mass produc- tion of tri-color tubes. “We don’t expect to have it in com- mercial production until we know what is going to happen to color,” said Dr. Engstrom — inference being clear that FCC edict is fii'st awaited. (3) Principal improvements since showings in Wash- ington last December were: better tube, more stable cir- cuits, moi’e flexible equipment (cameras with turrets, etc.), and equipment now in “pre-production stage” at RCA Victor plant instead of in lab. (4) “Universal set” to get both compatible and CBS color is possible. “It costs more, but it can be done.” He reiterated RCA’s pitch for dual standards. (5) “The tri-color tube will perform well with the CBS system.” This i-efutes interview to contrary quoting CBS’s Dr. Goldmark, published recently in Broadcasting Magazine. But Dr. Engstrom left no doubt about his opinion of CBS system. (6) Sampling frequency is still 3.58 me, but will be 3.89 me (per NTSC recommendations) shortly. a » SHOW ITSELF is very much same as I’ecent New York series (Vol. 7:37), most acts repeated, including Nanette Fabray and troupe in vari-colored costumes; also famed “Operation Lovebird,” the trained bird act that provides unusually critical test of fringing, blurring, etc. Added was light opera costume scene that gave further opportunity to show off colors. Engineers’ worst moment came, ironically, at 2:15 p.m. Oct. 11 demonstration for Sen. Johnson. One camera went bad, holding up start 20 minutes. It still didn’t work too well during show, causing yellowish cast in some scenes. And, capping this, rain washed out plaid-clad bag- pipers marching for remote pickup at Palisades, N. J., carried in other demonstrations. But camera quite effec- tively showed park, wet greensward, color-clad announcer. Next week’s Washington guests include NPA, FTC, engineers, attorneys, RCA dealers and distributors, adver- tisers, military — along with other govt, folk, plus FCC and members of Congress. - 6 - 7 New YORK SHOWINGS in Center Theatre were open to public, invited via full-page coupon ads, and they also elicited excited responses. Herald Tribune’s Joseph Kaselow interviewed number of spectators, found those who had seen CBS color considered RCA’s as g’ood if not slightly better. He also wrote: “There was virtually unanimous agreement that the direct-view RCA system had one advantage over the CBS revolving-disk color method . . . With the direct-view method a viewer could be far to the side and see the picture without distortion, in contrast to receivers using a magnifier.” Kaselow spotted 2 CBS engineers in crowd, saw ques- tionnaires they filled out. He reported they had nothing- good to say about RCA color. They refused to sign ques- tionnaires, walked out. RCA had asked that only lay public attend showings, retaining Opinion Research Corp. to survey reactions. New York Times reporter also gathered enthusiastic quotes. Housewife: “Wonderful, at least 500% better than I had expected.” California visitor: “Give me this. I’d like to have one.” Diamond merchant, who said he’d seen all color systems: “Give me this kind, it’s great.” Long an advocate of compatibility, Washington Star (WMAL-TV) joined those who think time is ripe for com- paring systems. Said Oct. 10 editorial : “There has been no side-by-side test of the two sys- tems as yet — but there should be. The FCC has said that lit has not closed the door on color TV development. The door should definitely be kept open, for progress plainly is being made in the general field of electronic, compatible [color broadcasting.” ^ * CBS-COLUMBIA COLOR SALES are off to slow start, according to some key dealers, though distributors report more orders than they can fill. In Washington, Philip Keller, manager of George’s chain, said: “They came. They looked. They went away. No sales. But I Imust say we did sell a few CBS black-&-white. Everyone says ‘screen’s too small.’ With that price [$500] and so few programs, you can’t expect much.” “They want a big screen,” said Charles Hoge, manager of Campbell Music Co., Washington, “We’d be very much surprised if we sell one. You’ve got to have programs. People just don’t come down to the store and buy sets at 10 in the morning, the only time color is on. Now, a foot- ball game might sell one.” Jules Smith, bluntly outspoken manager of big Davega chain in New York, made no bones about his feelings. A few weeks ago (Vol. 7:37), he said: “CBS is out of step.” Last week, he heralded CBS-Columbia color sets with full- page ads and said: “You can’t stop progress.” This week, after displaying sets in 6 of firm’s 40-odd stores, he said: “They’re stajfing away by the thousands. Haven’t sold any'. Oh, we sold a couple, but that’s nothing. With tax, warranty', financing, y'ou’re over $600. The ads didn’t pull. People are used to big screens. The price is too high. The color isn’t very- good. They don’t work half the time. The whole thing is premature. RCA has the right idea about color.” But color gave CBS-Columbia an entree to many stores, such as the above, could help it become major black-fc-white producer and seller — if it can get enough materials. NPA has refused its request for more metals for color, but company' has appealed, will be heard Oct. 23. CBS-Columbia contended color TV is new industry, thus rates more materials. NPA thought otherwise, sug- gested company sub-contract color sets among other com- panies with more materials, if necessary. CBS COLOR FOOTBALL schedule, on the handful of stations carrying it (Vol. 7:39-40), still hasn’t cut much ice. Headline in Variety pretty well sums up reac- tion: “CBS Tint Grid Comes to Chi; But Strictly a Ru- mor to Public.” Chicago situation was typical. WBKB reports 861 calls during game, mostly asking where color may be seen, where sets may be bought, how home sets can get color in black-&- white. Station carried 5 aural announcements during game, informing public why home screens merely had lines on them. Color sets were displayed by Sears Roebuck, Lyon & Healy, Muntz and servicing firm called Chicago Engineers for TV. CBS’s expanded color schedule will feature color film for first time, 5-5:30 Mon.-Fri. beginning Oct. 15. CBS also announced first commercial — one-shot General Foods promotion of new pie filling, on WCBS-TV only, 4-4:15, Oct. 16. That station’s switchboard was said to be swamped with calls during first gridcast, people wanting to know why their sets went into blur during incompatible colorcasts. Color schedule is up to 12)4 hours weekly. 5{S 5}S EIDOPHOR-CBS color theatre-TV equipment will be set up in New York about Dec. 1, say's 20th Century- Fox TV chief Earl Sponable. Just back from Zurich (Vol. 7:40), he reports: “The results were very good, in fact I might say exceeded my expectations.” His company ex- pects 150 color installations by April. Unusual experiment in color seems to be going on in Phoenix. Retailing Daily’s Lester Gilbert reports Oct. 11 that KPHO-TV has been conducting closed-circuit tests with system developed by Color TV Associates Inc., New- port Beach, Cal. He reports it has 1800-rpm disc at cam- era, 900-rpm disc at receiver, uses 30 frames instead of 48, and pictures can be received on unadapted black-&- white sets. He writes: “Except for the inherent flicker, [it] looked good.” Engineers here say outfit “appears to be 15-20 years behind the times,” using field-sequential system at low field rate, producing “intolerable” flicker or very' dim pictures, or both. PARAMOUNT PICTURES issued question-answer re- lease this week on its Lawrence tri-color tube (Vol. 7:38-40), making following claims: (1) Tube is good for any color system, as well as for black-&-white. (2) It may be inserted in any existing set, receive CBS color with minor circuit changes and adapter. (3) New color sets with tube should cost about 15% more than monochrome. (4) Quantity production of tube can be expected by first of year, same for color-monochrome sets with tube. (5) Present performance of tube is substantially su- perior to other color tubes in a similar stage of laboratory development. • XELD-T\ 's request for 140-mc transmitter, to sy'n- chronize Matamoros, Mexico, transmitter with Browns- ville, Tex., power system (Vol. 7:38), was turned down by FCC on grounds Commission hasn’t authority to make grant to alien-owned station. But Commission pointed out that common carrier may be able to provide needed service. FCC this week denied Crosley’s request to transmit NTSC color signals over WLWT, Cincinnati, during regu- lar programming hours, same as it did RCA-NBC and Philco requests (Vol. 7:38). Telecasters’ excess profits lax relief (Vol. 7:37-.38) was written into Senate-House compromise tax bill, is sched- uled to pass both houses and go to White House by Oct. 17. * ' ■■■ , Trade Beperi October 13, 1951 FIRST QUARTER METAL CUTS-FOREWARNING: Bi^ge St cutback yet in metals for TV-radio and other household consumer durables is virtually certain for first-quarter 1952. These figures are tentative — and they're rounded-out averages for all types of household "hard goods" — but, on basis of DPA's announced first-quarter program determinations, it appears now that manufacturers of TV-radio and other home appli- ances will receive; Copper — 29% less than they receive in fourth-quarter 1951. 1 Steel — 11.6% less than they receive in fourth-quarter 1951. 1 Aluminum — 16% less than they receive in fourth-quarter 1951. It's practically impossible to predict first-quarter TV-radio production on basis of these average figures, because of these imponderables: Conservation ; how much scarce materials will it save? Components ; how readily will they be available? Inventories ; how much materials and subassemblies i will manufacturers carry over from the fourth quarter? Supplemental allotments and other changes could alter this picture considerably, move percentages up or down. Copper will be controlling factor in TV-radio production — as you can see from foregoing figures. Already in fourth quarter, it's most critical material. All electronics manufacturers will have rough time getting enough metals for first and second-quarter production — even producers of the components that go into military and "defense-supporting" equipment. i Aluminum is big bottleneck, too — and in electronics line this will hit hard at manufacturers of capacitors and TV antennas, as well as assemblers of TV and radio sets. Conservation and substitution is now vital necessity in all lines. For j example — it won't be long before virtually all TV antenna makers switch from alu- minum to steel or wood for masts. Said DPA-NPA administrator Manly Fleischmann; ' t "To the extent possible, steel has been provided for the manufacture of con- . sumer durable goods in first-quarter 1952 to compensate, in part, for the reduced amounts of copper and aluminum that are available to these manufacturers." { To meet fourth-quarter aluminum allotments. Govt, is now diverting aluminum 1 that would normally go to stockpile to help make up deficit resulting from power shortage in Pacific Northwest. And NPA Oct. 12 reduced by 15 days — from 60 to 45 - — permitted inventories on that metal (CMP Reg. 2, as amended). ^ TV-radio set shortages in first quarter? Despite cuts. Govt, doesn't think so. Fleischmann told Congressional committee Oct. 12: "The outlook is that produc- tion of such civilian items as refrigerators , radios , TV sets and home appliances of all kinds will be reduced, but because generally ample supplies are now on dealers' | shelves, the supply should be sufficient to meet normal consumer needs." ' NPA Electronics Div. was allotted 75,385 tons of steel, 33,760,000 lbs. of copper, 18,000,000 lbs. of aluminum to dole out for all "Class B" (standard) elec- tronic products and components in first quarter. In addition to civilian items, this allotment must cover the tremendously accelerated production of components and end products for military use. , The so-called "non-controlled" materials — meaning everything except steel, ' copper, aluminum — will also cause plenty of headaches to electronics manufacturers in coming months. Nickel situation (Vol. 7:36-37), for example, is still critical, but DPA authorities are cognizant of problem, and presumably will order spot aid to manufacturers in extreme emergencies. In making over-all industry allotments, Fleischmann gave this warning: "I want to emphasize that in the case of all 3 materials with which we are dealing — ‘ steel, copper products and aluminujn — there are some uncertainties that will affect ' 1519 CONNEaiCUT AVE. N.W, If WASHINGTON 6, D. C. • TELEPHONE MICHIGAN 2020 8 9 first-quarter supply, and that estimates generally are on the optimistic side. We will have to have a lot of good fortune to realize the estimated supply on the basis of the allotments that have been made.” TRADE BRISK-SALES OUTRUNNING OUTPUT: Sets selling nicely at all levels. . .another 48,000 TV units knocked off factory inventories during first week of year's final quarter. . .production continuing to crawl upward — there you have essence of TV business picture as it's now unfolding. RTMA statistical week ended Oct. 5 was week of pre-series and first World Series baseball games, also first week of regular transcontinental network service. That conduced to good demand, particularly in new network cities — Salt Lake City, San Francisco, Los Angeles, San Diego, where sales are reported very brisk. Generally satisfactory business, is report from just about all other TV areas, too. It could be that the trade has leveled off to "normalcy,” though the industry isn't old enough yet really to fix on norms. Oct. 5 week's production report showed 87,919 TVs made (2918 private label) as against 81,946 preceding week, highest 5-day output since mid-May. And factory inventory dropped to 414,625 from preceding week's 462,896, lowest since April. Radio output for week was 250,385 (102,226 private), not much change from week before. Radio inventory figure of 588,465 compared with 581,566 week preceding. Week's radios were 152,900 home receivers, 21,426 portables, 76,059 auto. * * *: * Having produced some 4,000,000 TVs first 5 quarters (Vol. 7:40), industry won't make more than 1,000,000-1,250,000 this fourth quarter in view of materials shortages and govt, controls. That was opinion of RTMA president Glen McDaniel, who spoke Oct. 12 before New Orleans meeting of Assn, of Electrical Leagues. "Material shortages,” said he, "are becoming more acute as deliveries of defense orders increase. Govt, allocations of several critical metals have been sharply reduced for the fourth quarter and may be cut again for the first quarter of 1952. Thus, it would appear that the radio-TV manufacturers will be unable to in- crease their civilian production greatly during the next few months regardless of the extent of consumer demands.” With industry now back at 80, OOO-a-week rate of production, against low of 8200 this summer, and with retail sales reported running 2)4-3 times factory output. Mr. McDaniel said "a rather sudden change from an oversupply to a shortage of the more popular models of both TV & radio sets could occur in the near future, possibly even before the end of the year.” He went on: "From the long-range point of view, there is every reason for the industry to be optimistic. We are on the threshold of a tremendous expansion of TV broadcast- ing which obviously will be accompanied by a proportionate increase in set sales... "No one in the industry should have any apprehensions about the adverse effects of uhf and color on present sales of monochrome sets. Technical progress always has been a characteristic of our industry, and the ability of radio-TV manu- facturers to adapt themselves quickly to changing circumstances has been responsible not only for their survival but for their success. "Neither uhf nor color telecasting will be so widespread in the immediate future as to threaten obsolescence of any black-&-white receivers. The integration of these new services into the present system no doubt will be gradual and orderly, with little or no dislocation to the present audience of nearly 14,000,000 sets." Note : We queried heads of top 20-odd TV manufacturing concerns, asking their opinions about shortages and market prospects generally for rest of this year and early next. Most have answered, and with only one exception thus far all seem to agree that demand will continue high and shortages will hit by mid-winter at least. We'll recapitulate their replies later, meanwhile culling from one this confident statement that pretty well epitomizes what several others wrote, too: "We have no fears at all about next year's demand... If it were not for ma- terial shortages, I would expect that next year would be one of the largest..." - 10 - Topics & Trends of TV Trade: Biggest picture tube maker RCA admitted this week it was accelerating produc- tion of all-glass TV kinescopes, but denied unequivocally trade rumor that it was abandoning the metal-coned va- viety. Rumor apparently grew out of growing shortages of the particular type of stainless steel RCA uses. Tube dept. v.p. Richard T. Ox'th said company “will continue in the foreseeable future its policy of producing both metal and glass types.” He added: In view of the uncertainty surrounding the availability of steel, we are contemplating an appreciable acceleration in the produc- tion of all-glass kinescopes to insure sufficient supply of tubes for TV receiver manufacturers. We will continue to produce metal tubes in ample quantities to meet the requirements of the replacement market.” RCA recently turned to production, for own sets, of 17 & 21-in. I’ectangulars exclusively, but still makes the 10, 12, 16 & 19-in. required for replacements. * * * * Trade Miscellany: Wage increase of 7^ an hour, i-etroactive to June 18, granted to UEW-CIO workers in Philco’s Philadelphia and Sandusky TV-radio plants — this in addition to previously granted 2^ an hour . . . GE now shipping radio apparatus from new plant in Utica, N. Y. . . . Hallicrafters, major “ham” equipment producer, offering equipment and cash awards to novice-class radio amateurs making contact with all States and earning regular licenses between Sept. 8, 1961 & Sept. 7, 1952 . . . Motorola to dis- tribute henceforth through own wholly-owned subsidiary in New York area . . . Primer on trademark “do’s and dont’s”, by RCA attorney Abraham S. Greenberg, is car- ried in October Electronics . . . Admirable TV Supply Corp., New York, ordered in consent judgment to change name as of Nov. 1, Supreme Court Judge Koch upholding com- plaint of Admiral Corp. . . . Sylvania leases 23,000-sq. ft. plant in Waldoboro, Mass., will employ 200. RTMA’s new full-time service manager is E. W. Mer- riam, ex-DuMont service chief and ex-chairman of RTMA service committee. He reports Oct. 15, having agreed to take position on temporary basis. Among his projects will be promotion of training courses for service technicians in trade and vocational schools, coordination of industry activities to improve servicing and eliminate servicing abuses. He faces touchy task of spreading oil on troubled waters — following vitriolic attacks on RTMA policy this week by several servicemen’s organizations for alleged failui’e to answer their complaints on such subjects as chassis design, corrective servicing notes, service data, warranties, shortage of servicing personnel. FCC action against CBS — for labeling its TV sets CBS- Columbia — is unwarranted. Commission advised American TV Inc. (U. A. Sanabria) in letter this week. Sanabria had complained to FCC, as he had to Federal Trade Com- mission (Vol. 7:39), that CBS gives itself free advertising with evei’y network identification. Commission said such allegations of unfair competition should be thrashed out in private litigation or before FTC. Canadian RTMA reports 964 TVs sold for $503,098 during August, up from July low of 323 (Vol. 7:37), bring- ing 8-month cumulative sales to 21,357 valued at $11,678,- 062 and over-all cumulative (from start of count) as of Aug. 31 to 59,180 valued at $27,954,645. Factory inven- tories at month’s end totaled 16,205. Degree of B.S. in Television will be offered by U of Southern California, courses to start with spring semester Feb. 7. New Dept, of Telecommunications is being set up, TV studio built with $100,000 gift from oilman Allan Hancock, chairman of university’s trustees. Trade Personals: Frank M. Folsom, RCA president, returned Oct. 10 from flying trip to Italy, where he had an audience with the Pope; Spain, where he conferred with Generalissimo Franco; and Israel, where he surveyed pros- pects for recording plant . . . Paul H. Leslie, Detroit mgr., named TV sales mgr., GE receiver dept., Syracuse, suc- ceeding David Davis, promoted to New York district mgr., with Joseph A. Kerr named New Jersey district mgr. head- quartering in Newark . . . R. S. Holmes now director of RCA Laboratories Div. contract research lab, with George M. K. Baker transferred to his office as asst. . . . Morton M. Schwartz, ex-Tele-tone, joins Olympic Radio as asst, to A1 Friedman, gen. sales mgr. . . . Myron Blackman, ex- Kaye-Halbert, appointed gen. sales mgr.. National Elec- tronics Mfg. Co., Los Angeles, maker of Natalie Kalmus and Cinema TV sets, succeeding Jack Richmond, who con- tinues with National and other firms as consultant de- signer . . . Richard Bambery transferred from advertising to asst, to Paul Dye, in charge of Admiral distribution . . . S. S. Schneider promoted to mgr., engineering dept., Cana- dian Westinghouse electronics div. . . . James Valladares resigns as plant mgr.. Philharmonic Radio, New Bruns- wick, N. J. . . . Philip S. Beach, ex-Pacific Outdoor Adv., named to newly created post of adv. director, Hoffman Radio . . . Samuel Gross, president, and Sol Gross, secy- treas., have resigned from Emerson-New Jersey Inc., New- ark; Irving Sarlin, sales mgr., becomes gen. mgr. . . . Trevor H. Clark, ex-Federal and RCA Labs, named direc- tor of military research & development div.. Southwest Research Institute, San Antonio . . . Frank B. Rogers Jr., ex-Ampro, named sales v.p.. Reeves Soundcraft Corp. . . . Maj. Gen. Douglas A. L. Wade, Royal Corps of Signals, has arrived in Washington to be telecommunications attache at British Embassy . . . Louis Selsor, ex-DuMont, named jobber sales mgr.. National Video Corp. . . . L. E, Septer named sales mgr. for tuner and tube divisions, Sarkes Tarzian Inc. . . . Otto H. Schade, RCA tube dept., gets SMPTE David Sarnoff Gold Medal Awai’d for developing method of rating film and TV systems in objective mathe- matical terms . . . Henry F. Argento, Raytheon sales mgr., named asst. v.p. and appointed asst, mgr., power tube div. ^ * m With William Boss shifted from Rochester to Cam- den to be assistant to RCA consumer products v.p. Joseph B. Elliott in handling of field contacts, RCA Victor home instrument dept, sales v.p. A. B. Mills announced these new field salesmen and territories: Donald E. Roark, Albany & Hartford; Jack K. Sauter, Buffalo, Rochester, Syracuse & Binghamton; Philip E. Cunningham, Nashville, Chat- tanooga, Knoxville & Birmingham; Robert F. Cage, De- troit, Saginaw, Lansing & Grand Rapids; Daniel Gentile Jr., Kansas City, Des Moines, Sioux Falls & Denver; Bruce S. Durant, Indianapolis, Milwaukee & Peoria. Dr. Allen V. Astin, govt, career scientist associated with development of proximity fuses in World War II, has been appointed acting director. Bureau of Standards, succeeding Dr. Edward Condon, resigned to becoming re- search director. Corning Glass. Dr. Astin as associate director of Bureau was responsible for electronics along with other developments. A. D. Plamondon Jr., president of Indiana Steel Prod- ucts Co., and chairman of RTMA small business survey committee, was elected chairman of Air Force Small Busi- ness Survey Committee, RTMA president Glen McDaniel named secretary, at Oct. 9 meeting at Wright-Patterson Air Base, Dayton. Dr. Anton Frederik Philips, 77, founder of Europe’s big Philips radio and lamp concern at Eindhoven, Holland, died there Oct. 7. 11 - Financial & Trade Notes: Third quarter reports will soon start issuing, are expected to show considerable de- clines in TV-radio companies’ sales and earnings because of (1) sharply reduced TV output and sales during that period, (2) defense orders not yet rolling. But contrary to expectations, major set manufacturers will report they were in the black that quarter, thus should show respect- able profits for year as whole. “I think,” said one very competent Wall Street ob- server, “they will have at least as good, if not better, year in 1952 when govt, work will start contributing to ship- ments. The big boom, however, is still 2 to 3 years off.” He was thinking, primarily, of anticipated opening of new markets when freeze ends and more stations get on the air (Vol. 7:36-37). Even now, though, as United Business Service reported Oct. 8, “the appeal of TV shares lies chiefly in the prospect of expanding present ownership of sets more than twofold.” »:< :J; ^ i]i Among officers’ and directors’ stock transactions re- ported by SEC for August: Dee S. Lenfesty sold 1200 Arvin, holds 1500; Victor Mucher bought 500 Clarostat (July), holds 13,100, wife holds 2200; Frank L. Driver bought 400 Driver Harris, holds 38,080; Richard E. Laux sold 1500 General Instrument, holds 100; Philip F. La- Follette bought 50 Hazeltine, holds 800; Adolphe A. Juviler sold 2800 Olympic, holds 85,640; Percy L. Schoenen sold 700 Olympic, holds 23,306; Barney Balaban sold op- tions for 10,000 shares of Paramount, holds 30,000; R. L. Heberling gave 155 Philco as gift, holds 23,832 common, 300 pfd.; John S. Timmons sold 3000 Philco, holds 10,000; William Gammell Jr. sold 1100 Raytheon, holds 14,470; Robert H. Bishop sold 209 Sylvania, holds 450; Don G. Mitchell sold 100 Sylvania, holds 3074. These sales of stock by Philco officials were reported to N. Y. Stock Exchange this week: Fred W. Rombach, v.p., and James T. Buckley, chairman, sold 2162 & 2000 shares, respectively. % ❖ ♦ Dr. Allen B. DuMont predicted his firm’s sales for 1952, including defense ox'ders as well as TV receiver, tube and transmitter equipment, will run at least 25% ahead of best previous year in firm’s history (1950 gx’oss sales wex’e $76,362,665, up from $45,362,089 in 1949). He spoke Oct. 9 before Robex’t Morris Associates, an association of bank credit men meeting in New York. He also said in- dustry’s biggest problem is still the FCC freeze on new station construction, x’eiterated his oft-expressed convic- tion that all-electronic and not “mechaxxical” color will pre- vail, forecast TV output this year will be about 5,000,000. Sylvania stockholders vote Nov. 19 on issuance of 200,000 shares of new convertible prefen-ed stock and an increase in the authorized common stock to satisfy con- version rights. Also planned, when market conditions are favorable, is sale of about $25,000,000 of 20-year sinking fund debentures. Company will use $17,200,000 of pro- ceeds from px’efex’x’ed stock sale to retire all outstanding 3%% debentures, its entire funded debt now outstanding, and other new money will be used for expansion progx’am, including $18,000,000 in plant. General Instrument Corp. reports net loss of $625,603 for 6 months ended Aug. 31, compared with net income of $487,167 for corx*esponding 1950 period — attributed to lack of demand for eixd product, govt, materials controls, transition to defense production, vacation shutdowns. Trav-Ler reports net profit of $318,486 on sales of $11,389,744 for year ended Jxme 30. Company x-eported net of $2,309,275 on sales of $13,892,485 for calendar 1950, first full year its stock was publicly held (Vol. 7:12). Mobilization Notes: More than 300 out of about 1000 manufacturers of electronic “Class B” (standard) products and components have failed to file CMP applications for fix'st quarter 1952 allotments of steel, copper and alumi- num. Deadline date for filing was Oct. 1, and NPA Elec- tronics Div. this week sent telegrams to all who haven’t filed. It’s probable that applications axTi’iving after Oct. 17 will be held up until all earlier applications have been proc- essed and allotments issued, some NPA staffers say. DPA-NPA chief Manly Fleischmann warned this week that manufacturers will face serious difficulties in obtain- ing steel, copper and aluminum if they fail to file applica- tions immediately. “Mills are not requix’ed to accept au- thorized controlled materials orders unless they are placed within the prescribed lead times,” he said. “In the case of steel, these vax-y from 45-120 days, accox'ding to type of project. A would-be purchaser, who files his application for an allotment too late to receive his authoxization in time to meet these deadlines, is just out of luck.” Electronics Div. officials say CMP-4B applications for first quarter are worst yet with regard to errors and omis- sions. Average application, they say, takes from one to 2% hours to interpret and tabulate, because of lack of sufficient information. Nippon Television National Network Corp. has been formed in Japan, capitalized at 2 billion yen and backed by leading banking, newspaper, movie and industrial inter- ests, to set up system of stations that Japanese Radio Regulatory Commission this week agreed should operate on American 525-line standards. Tokyo transixxitter, first of px’oposed chain of 22, is expected to be ready by spring of 1952, initial TV receivers of U. S. standard make to be imported tariff-free as “educational media.” Project is culmination of survey just completed in Japan by Maj. Henry F. Holthusen, New York attorney; William S. Halstead, Crosby Laboratories engineer; and Dr. Walter Duschinsky, studio planner — operating as Communications Consultants, 25 Vanderbilt Ave., New York. U. S. equip- ment for the TV and a system of telecommunications sta- tions will be ordered. Project will be first private broad- casting for Japan, permitted under law passed during Mac- Arthur regime in 1950; formerly, govt, operated broad- casting as private monopoly. Denver got World Series on theatre TV after all. Baseball commissioner Ford Frick Oct. 6 reversed earlier decision (Vol. 7:40), wired John Wolfbex’g permission to pick up series on his Broadway Theatre big-screen equip- ment from same closed circuit serving some 90 receivers at Brown Palace and Cosmopolitan Hotels. Hookup was made in time to catch third inning of third game Oct. 6, and theatre filled up rapidly as news spread. No admis- sion was charged for Oct. 6 game or remaining 3 games, also carried by Wolf berg on same super-exclusive theatre basis. World Series ate heavily into audiences of TV- equipped theatres in 5 cities presenting big-screen show- ings of Navy-Princeton football game Oct. 6 under ar- rangement with National Collegiate Athletic Assn. None of theatres x-eported better than fair business, managers blaming poor attendance on availability of series free on home TV sets. Didn’t the Russians invent TV, as blandly claimed by a Soviet diplomat as he depax-ted these shores several years ago carrying “sample” of an .4merican-made receiver? Now comes claim they’ve “discovered” art of mass pro- duction of TV sets, repox-ted in AP dispatch from Budapest. It quotes newspaper Szabad Nep as stating Russian-made sets are far superior to those of the West, giving “clear, sharp and perfect picture.” But Hungarians, AP adds, have to be content with “promise” that TV will reach their Sovietized paradise “in the near futux-e.” 12 - Fee APPROVAL of $1,050,000 sale of KEYL, San An- tonio, to Geo. B. Storer’s Fort Industry eo. (Vol. 7:30) was last of an even dozen sale deals effected since early 1949 — all authorized by FCe — and leaves ’only ehicago’s WBKB still now pending. Storer interests now have 4 TV outlets, having founded WJBK-TV, Detroit; WSPD-TV, Toledo; WAGA-TV, Atlanta. Limit is 5, so it’s presumed Storer will drop all but one of his still pending applications for new TV outlets — in Cincinnati, Wheeling, Miami, where he has radio stations. Other TV station deals to now, exclusive of projected ABC mei'ger with United Paramount Theatres Inc., as part of which deal CBS proposes to acquire latter’s WBKB, Chicago, for $6,000,000 (Vol. 7:21): WLTV, Atlanta (formerly WSB-TV), sold to Broad- casting Inc., local group, for $525,000 in swap of channels with CP holder WCON-TV (Vol. 7:32-34,38-39). WOW-TV, Omaha, sold with WOW to Meredith Pub- lishing Co. interests for $2,525,000, puixhaser acquiring surplus account of $720,000 (Vol. 7:32,39). KHJ-TV, Los Angeles (foi'merly KFI-TV), sold to General Tire (O’Neil) for $2,500,000 (Vol. 7:23, 32, 36). WOOD-TV, Grand Rapids (changing from WLAV-TV as of Oct. 19), sold for $1,382,086 to Harry Bitner inter- ests (Vol. 7:19,38). KTSL, Los Angeles (to be changed to KNXT), sold to CBS for considerations totaling $3,600,000 (Vol. 6:52). KFMB-TV, San Diego, sold with KFMB to John A. Kennedy interests for $925,000 plus other considerations (Vol. 6:46 & 7:17). WTOP-TV, Washington (formerly WOIC), sold 55% to Washington Post, 45% CBS for $1,400,000 (Vol. 6:25). KPRC-TV, Houston (formerly KLEE-TV), sold to Houston Post for $740,000 (Vol. 6:13,21). WFAA-TV, Dallas (formerly KBTV), sold to Dallas News for $575,000 (Vol. 6:4, 11). KING-TV, Seattle (formerly KRSC-TV), sold to Mrs. A. Scott Bullitt for $375,000 (Vol. 5:20); 25% interest sold to Hearst Radio for $375,000 (Vol. 7:26). KPHO-TV, Phoenix, went into hands of present owners in several stock transfer deals after three 25%. stock- holders in grantee corporation (Texas oilmen W. L. Pickens, R. L. Wheelock & H. H. Coffield) decided not to purchase stock (Vol. 5:26 & 6:6,20). New stockholders provided funds for construction. Power increase from .5 kw to 5 kw was granted New Haven’s WNHC-TV this week when FCC waived its “Fifth Report” (Vol. 7:30-33). Commission had previously said it wouldn’t permit community stations, such as WNHC-TV, to go to 5 kw — considering such move a violation of freeze policy. Station convinced Commission that no one would lose by grant, since it already had 5-kw transmitter in- stalled and no other station would suffer interference. Grant leaves only 2 community stations: WDEL-TV, Wilmington, and WGAL-TV, Lancaster. If they say “me too,” presumably they’ll have to show similar set of cir- cumstances. On other hand, they may prefer to retain present powers, go all the way — 100-200 kw ERP — after end of freeze. Commission also finally granted DuMont’s WABD, New York, permission to use 5-kw transmitter on Empire State Bldg., radiate 16.7-kw ERP. Among least expensive TV station proposals to date is that of KIFI, Idaho Falls, Ida. In application filed last week (Vol. 7:40), station said total construction cost would be $83,061, with much equipment to be built under direc- tion of engineering consultant Grant Wrathall, part-owner. Breakdown: transmitter (1-kw output, 3-kw ERP) $11,500, antenna system $10,000, studio equipment $55,761, modula- tion monitors $2300, legal and engineering fees, $3500. Everyone is “experting” Comr. Frieda Hennock’s chances of getting Senate confirmation to New York Fed- eral bench (Vol. 7:40), but little of the speculation appears authoritative. Four witnesses testified for her Oct. 11, more on Oct. 13. After Oct. 13 closed session of Judiciary Committee, hearings hadn’t officially concluded, presum- ably could resume later. However, there were some doubts about any action at all before Congress session ends, judg- ing from attitude of some members. Recess appointment is possible but not certain. Drew Pearson Oct. 4 column reported some charges he said were leveled at Miss Hen- nock during hearings. Column w'as published in New York, not by Washington Post which did, however, carry his Oct. 9 column reporting that former Secretary of War Robert Patterson had withdrawn his support after hearing nature of testimony. Witnesses for her during Oct. 11 session in- cluded Justice Agnes Craig, Bronx Municipal Court; Jacob L. Holtzmann, attorney and member of New York Board of Regents; Justice Doris I. Byrne, New York Court of Special Sessions; David Schenker, New York attorney. Date for hearing on Paramount Pictures (anti-tnist violations, etc.) and ABC-United Paramount merger (Vol. 7:32,35) has finally been set for Jan. 15, to be held be- fore FCC examiner yet unnamed. Comment around Com- mission is that FCC could spend “years” on case if it chose. Says one attorney: “It would take 12 lawyers and 20 ac- countants a year to study Justice Dept.’s files alone.” ABC is particularly anxious to get final decision quickly, need- ing added expansion capital and fearing it will soon have to go “house-hunting” without infusion of UPT capital. Its leases with NBC — in New York, San Francisco, Los Angeles — expire March 31, 1952. Permission to intervene in case, filed by Fanchon & Marco theatre chain (Los An- geles, St. Louis), was denied by motions commissioner Geoi'ge Sterling — but chain isn’t foreclosed from testifying. This week, F&M petitioned FCC to override Sterling. FCC granted 90-day test of Telemeter, coin-operated subscription TV system proposed by Paramount Pictures (Vol. 7:34,37), gave company strict orders not to create impression Commission has approved system — same as it did for tests of Zenith’s Phonevision, Skiatron’s Sub- scriber-Vision (Vol. 6:6,47). Tests will be as Paramount proposed: over Los Angeles’ KTLA, midnight-9 a.m., using 6 receivers, no public participation. Skiatron is stepping up activity lately, sending director Rear Adm. Timothy O’Brien to Hollywood, presumably to seek films for home tests. He says that Subscriber-Vision, currently punch- card operated, can also use coinbox. TV station owner Edward Lamb (WTVN, Columbus, and WICU, Erie) this week bought WHOO and WHOO- FM, Orlando, Fla., from Martin Anderson, publisher of Orlando Sentinel-Star, Price was $200,000. It’s Mr. Lamb’s second AM outlet, other being WTOD, Toledo. ABC outlet operates with 5-kw night and 10-kw day on 990 kc. Lamb takes over WHOO’s TV application. This week, also. Grant Ashbacker sold his WKBZ, Muskegon, Mich., for $179,000 to Arch Shawd, ex-WJR, Detroit, and WTOL, Toledo. It’s also an ABC outlet, operates with 1-kw on 850 kc. Both deals were handled by Blackburn & Hamilton. Total TV applications rose to 446, of which 14 are uhf, with filing this week by Tel-A-Ray Enterprises Inc., Henderson, Ky., for uhf Channel No. 50. Firm is made up of group of local business men. [For further details, see TV Addenda 13-N herewith; for listing of all applicants to date, see TV Faetbook No. 13 and Addenda to date.] Electromagnetic radiation bill (S. 537) was finally passed by Congress this week. Senate concurring in House amendments (Vol. 7:38). Bill gives President control over all radiating devices which enemy could use for navigation. IMAKTIN CODECS lAUTHORITATIVE NEWS SERVICE OP THE IVtSUAl BROADCASTING ARTS AND INDUSTRY l*UBLiSHEO WEEKLY BY RADIO NEWS BUREAU, 1519 CONNEQICUT AVE. N.W., WASHINOTON 6, D.C TELEPHONE MICHIGAN 2020 • V§L. 7, NO. 42 CBS Color Shelved ‘for the Duration’, pa^re 1. I Mn this Theatre TV Climaxes RCA Color Series, page 3. 1 Ms sue: 1 Telecasters Adopt Self-Control Code, page 6. Movies Hitching Wagons to New Star, page 6. October 20, 1951 Azcarraga Plans Dozen Mexican TV Stations, page 7. Crystal-Gazing the Near Future of TV, page 10. TV Market Up, Inventory Cut in Half, page 10. What They Say About Demand, Supply & Shortages, p. 11. CBS COLOR SHELVED TOR THE DURATION': Looks like you can forget about color TV — for an unpredictable period. CBS system goes into mothballs, that's definite. Compatible system develop- ments may also have to be shelved — next week will tell. Shocker came at 5 p.m. Friday, Oct. 19, when CBS president Frank Stanton released statement that, at request of mobilization director Charles E. Wilson, CBS would immediately stop all color set production and programming "in the national interest .. .for the duration of the emergency." At about same time, Mr. Wilson's office released letter to Stanton, which I asked such suspension "in order to conserve critical materials." Press release from I his Washington office also stated he would call all TV manufacturers to meeting sometime next week "for the purpose of discussing the desirability of suspending all further development of color TV in order to free highly skilled electronic engineers for important military projects." [For texts of Wilson letter and Stanton statement, see p. 5.] Story broke after N.Y. Stock Exchange had closed, so there was little activ- ity in CBS Friday when "A" closed at 28Y2, "B" at 2834, off % & 3^ respectively in a generally weak market. They opened at 27% & 27% Saturday, closed at 2734 & 2734. ^ Questions, speculation, cross-allegations — erupted all over the country, I among manufacturers and telecasters especially, when the news broke. "Who done it?" I was the common refrain — and efforts to plumb the facts met some blank walls. CBS spokesmen were absolutely mum, and FCC officially said "no comment" i until it has "more information". One staunch CBS adherent at FCC said: "I see the ■ fine hand of General Sarnoff in this one." But Sarnoff, fresh from the triumphs of I RCA's New York-Washington demonstrations (Vol. 7:41), and its remarkable showings of , large-screen theatre TV in color this week, said he was nonplussed — probably would I have nothing to say until manufacturers' meeting with Wilson. Some industry topkicks, while inclined to gloat over what they said was end I of CBS's color campaign, were mad as hornets over idea that all color development, even the compatible kind of NTSC & RCA, might have to be frozen. Several boiled, off the record, and only the ever-blunt Dr. Allen B. DuMont asserted, "Damn right you can quote me." Said he ; "It's a hell of a note. I think they should make CBS make those sets. They would lose their shirts, as I always said they would." Other industry men spoke in same vein, indicating intensity of feeling that prevails. Said one of foremost: "How much critical materials could this save? CBS wouldn't make enough color sets to put in your eye. Why? Nobody is buying them or would buy them. Who will buy one of those things for 6 or 7 hundred bucks?" (He was referring to fact that CBS's 10-in. magnified receiver, listed at $499.95, actually " comes to very nearly $700 with taxes, v/arranty, installation, service contract.) "As for saving engineers for military projects," said this spokesman, who is Oopyrlgbt 1951 by Radio News Biireau in no way connected with RCA, but is an enthusiast for NTSC's current color work, "you aren't going to save much by calling them off color. I imagine there are alto- gether, throughout the industry, 2-500 engineers working on color. If you want to save engineers, take them off new picture tube development, uhf and such stuff. "But what would you do with them? I don't think there's enough military work to keep them going. But I don't know whether you can tell Wilson that. He says there's a shortage of engineers. The whole thing depends on whether it's materials or engineers that he's worried about. We'll know next week." ^ ^ ^ ^ There you have the thinking of industry leadership — for from start just about whole electronics and industrial fraternity has been lined up against CBS and FCC in their effort to put over non-compatible color. Everyone in trade reached, within short time available before going to press, seemed convinced Wilson's request was CBS-inspired — "a way off the hook" and "a chance to wave the flag" in the process, as one put it. It's really curious hovj each camp uses same argument to detect "machina- tions" of the other. CBS proponents have said CBS sets don't use much materials that couldn't be diverted from black-&-white. Opposition says lack of demand for the CBS sets means they wouldn't use much material anyhow. Fact is that CBS's request to NPA for extra materials to manufacture color receivers had been rejected — and CBS had appealed rejection to NPA appeals board and was scheduled for hearing Oct. 23 (Vol. 7:41). * ♦ * ♦ Move was really at high level. NPA Electronics Div. v/as caught flatfooted. DPA administrator Manly Fleischmann had been out of town for last week, got back and lunched with Wilson day of announcement. It's knov/n, definitely, that Fleischmann had a "request" before him for several weeks. No one at DPA will say w'here request originated, but they'll say they think they know. Speculation is that pitch may have been from Paley to Symington to Wilson, inasmuch as former 2 are social cronies and Paley spends several days each week in Washington on his job as chairman of President's Materials Policy Commission (Vol. 7:2,4), a post obtained for him by NSRB (now RFC) Chairman Symington. ^ ^ T? Here are some of the many questions being raised; (1) Stanton says color is off for "duration of the emergency." And Wilson asked for suspension "until such time as critical materials are in sufficient supply to warrant production." VIhxch comes first? Will CBS resume color if materials noose loosens, though emergency persists? (2) What will FCC do about it, if anything? Would it consider a petition for compatible standards while DPA-induced color "freeze" is on? (3) Will CBS be permitted to continue laboratory development, as Stanton says it intends to, if rest of industry's color engineers are "frozen" off color? (4) Would Wilson extend engineering freeze to uhf. picture tubes, black-&- white redesign and refinement — or even to station construction, theatre TV, etc.? DPA officials say color action isn't unique, pointing out, for example, that Govt, has limited number of cars with automatic transmissions. (5) Is Vtfilson merely "suggesting" or is he "ordering"? If latter, why was same letter not sent to NTSC members, to RCA, to those other firms which, like CBS, have also been advertising availability of color units? * ^ Reasons Wilson gave for action — materials and engineering shortages — were ignored by FCC when it rendered color decision about year ago in time much more uncertain militarily than the present (Vol. 6:35). Then, the defense agencies were predicting even more dire impact of Korean War demands on electronics industry. Materials situation was cited by Supreme Court Justice Frankfurter, too (Special Color Report, May 28, 1951), and rejected by CBS when it asked for and got DPA's assurance Govt, didn't intend to interfere with color production (Vol. 7:1). 3 Whether all color TV development will stop, is probably biggest question pending. Manufacturers who were accused of ganging up against color per se for fear it might hurt their black-&-white business, now are straining to go ahead with RCA and/or NTSC compatible system, and everybody thought it was only a matter of several months before the compatibility proponents would ask FCC to reopen "door ajar". Some manufacturers also say much color work is "straight down the line" on military projects, closely allied with certain defense plans. President Richard Hodgson, of Chromatic TV Labs (Paramount Pictures), after hearing news, announced that Lawrence tri-color tube uses no more critical materials than black-&-white tubes, could be put into sets requiring no additional materials. But he admits that it may make little sense to put tube into sets now, inasmuch as there's no more colorcasting and a compatible system may eventually be adopted. ♦ * * * Distributors and dealers seem relieved to have color "incubus" off their necks. Now they can tell customers color is out the window for duration — though lately they've indicated, as one told us, that "color is the least of our troubles so far as sales resistance is concerned." The few color sets out — CBS declines to divulge number — may have served as store traffic builders, but they certainly didn't sell color sets. One big Wash- ington dealer, who displayed color set, was so miffed by Friday's happenings that he asserted; "I'm telling them to take their whole line back. The only reason I took it was because I expected the color set to bring people into the store." He has not sold one color set, he said, nor taken one order. CBS-Columbia Inc, has been doing good job of building up distribution organ- ization on strength of new name and color promotion. It may wind up with net gain yet — in developing market for its black-&-white sets. Sales manager Richard Payne said dealer interest in line has increased "hiandred-f old" since old Air King days. Company has straightforward selling job to do now, competing against some 100 other brands. Price-wise , it faces usual handicaps of any small producer facing big and long-entrenched mass producers. It has advantage of CBS name and TV-radio network facilities, can probably still hold onto substantial private-label market in which its precursor Air King once mainly operated (Sears Roebuck, et al). * * * * Few think incompatible color will ever be resurrected, not least of these being CBS's own affiliates who have shown conspicuous lack of enthusiasm for system — and only handful of whom have carried its network colorcasts, now halted. Whether work on compatible color is stopped or not, every black-&-white set sold becomes so much added weight that an incompatible system would have to lift. And FCC's greatest hope, new stations in new markets, which some thought might be pressured into color, directly or indirectly, can scarcely be expected now to hop into color when the station freeze is lifted. THEATRE TV CLIMAXES RCA COLOR SERIES: Before Friday's big color explosion (see p. 1), RCA engineers were elatedly winding up 2 weeks of highly successful color show- ings, including impressive theatre-TV demonstrations in New York. Next move was to be field-testing of those NTSC-recommended specifications not already in their sys- tem— including 3.89-mc color carrier (in lieu of 3.58), asymmetrical sampling, etc. Rest of industry has been gearing for Nov. 2 full NTSC meeting in New York to agree on the few remaining system factors to be field tested. This week's RCA showings were much like last week's, with virtually every- one conceding compatible system is "almost here," if not already "ripe" for stand- ardization. FCC commissioners who attended this week — Jones, Hyde, Sterling, Web- ster — are naturally shy of commitments. But their off-the-record comments make it quite clear they're impressed with what they've seen but are by no means prepared to "buy" the system on basis of one demonstration they've witnessed. Said one; "They've made progress — extremely interesting progress. But there are a lot of questions to be answered. One showing like this isn't like a hearing with 10,000 pages of testimony and 200-odd exhibits. This isn't the kind of situation 1 - 4 - you can make a judgment on. If they have satisfactory answers to the criteria in our color decision — that's the thing." Another remarked ; "I was particularly interested in the questions asked when I was there — cost of sets, convertibility of black-&-white sets, etc. RCA seemed to have a little trouble with them." Others reserved comment, as did chair- man Coy last week, or couldn't be reached. All but Hennock have now seen system. "If you had seen pictures like these during the hearing," we asked one com- missioner, "do you think your decision v/ould have been different?" He laughed, said; "Well, the decision would have been less obvious." Many Washington consulting engineers and radio attorneys attended, left more satisfied than ever that compatibility is basic, and that FCC must eventually accept compatible system. Perhaps best-informed comments v/ere those of engineer Stuart Bailey, who served on famed Condon color committee (Vol. 6:28,30): "It's a definite improvement. The apparent contrast isn't quite as good as CBS's. But that's probably an interim thing. Registration is better than ever before. It's perfectly satisfactory color. "Charges of complexity against the RCA system never worried me. Black-&- white is too complex — but it works. Those things shake down; they alv/ays do." We asked whether Condon Report might have been different had committee seen current RCA pictures. "I don't think so," he said. "If you read it again, and look at the table we prepared, I think you'll find this is the sort of thing we antici- pated. But I think CBS has made an important contribution to color. If they hadn't forced the issue, we probably wouldn't be as far along as we are." •S' ^ RCA's theatre-TV showings all week in New York's Colonial Theatre were also tremendous hit with theatre men, press and public. Many said the pictures were even better than those on receivers. Theatre men appeared truly excited. Typical quotes: Nathan Halpern, president of Theatre Network TV Inc. : "Very important prog- ress. I think it's acceptable right now. Of course, there's no equipment for sale yet, presumably because there are some problems to work out yet." Dana Atchley, technical TV chief. United Paramount Theatres: "All of us are extremely enthusiastic. That goes for Mr. Goldenson [president] and Mr. O'Brien [executive v.p.]. We're particularly impressed with compatibility for theatre TV as well as home TV. It's important to be able to install black-&-white now, knowing that you can continue using it when color comes. Certainly, we shouldn't wait until color is available. We'll shortly have 24 [UPT] theatres equipped." Richard Hodgson, president. Chromatic TV Labs (Paramount Pictures) ; "Very good. Maybe we should have more bandwidth, but this is acceptable right now." Bernard Lust, Lust chain (Washington, D.C.): "If they could build one now, I'd take it. Of course, there are a few imperfections, but the average moviegoer wouldn't even see them. It's very much like Technicolor, much better than other color film processes." :{: * =!= Most of press reacted much as did theatre men. Variety reported: "Colors... were solid and true, indicating the new tint system can well be that extra fillip needed to get big-screen video over the hump." New York Times; "Theatre men, accus- tomed to Technicolor and other motion picture color systems, felt that RCA color still had a long way to go before its quality would equal that of existing color systems. All things considered, however, this initial demonstration was judged a marked success." Herald Tribune; "The large-screen color was of high fidelity, but not so sharp as standard motion picture reproduction. However, the colors were softer and easier to look at than movie color." Our own feeling was that more resolution and brightness would be welcome. Most engineers had same reaction, and RCA v.p. W.W. Watts did remark that "perhaps more bandwidth may prove desirable." Bell Labs' veteran Pierre Mertz suggested that more resolution may make up for less light to some extent — although RCA's Dr. David Epstein said achievement of greater light output isn't much of a problem. - 5 - Equipment uses 5 kinescopes, 7-in., with 60 kv (compared with 80 kv for I monochrome) . Projector is on floor of theatre, about 30 ft. from screen, giving ; 9xl2-ft. picture. i Basic equipment is very similar to gear RCA used for color theatre TV with simultaneous system in 1947, employs 3 Schmidt optical systems. Projector was de- I veloped for RCA labs' auditorium, thus accounting for picture size and length of throw. RCA said equipment would be developed for 18x24-ft. picture, 40-80 ft. throw. Program v/as same show, thrice-daily , going to audiences in New York and Washington viewing home-type sets (Vol. 7:41). Dr. Epstein, who directed the development, was mildly riled because some people considered pictures somewhat under Technicolor quality. "I'll take on Technicolor any day of the week," said he. "Our system just i' has more inherent fidelity than Technicolor. And I can prove it." He also pointed out that same studio show was being picked up direct in New York and going over , coaxial and microwave to Washington, thus making it difficult to control studio t lights, etc. to best advantage for each type of showing. 'p ^ V ^ Biggest question in most people's minds is much-publicized Eidophor-CBS {theatre TV (Vol. 7:41), due to be demonstrated in New York in month or 2. Most I engineers say they're reserving judgment until showings, are particularly concerned about servicing and maintenance of Eidophor. Pictures should be good, they say, since system employs field-sequential standards superior to those of CBS: 525 lines vs. 405, 180 fields vs. 144, 12 me vs. 6 me. These are basically the standards used by DuMont in its industrial color I (Vol. 6:10). Trouble, engineers say, is how to get system between cities, since there are no 12-mc networking facilities. Since no FCC approval is required for closed-circuit theatre TV, way is i clear for use of any color system — assuming Govt, doesn't ask industry to call off projects. But chances are color theatre TV will still be purely experimental when FCC's theatre-TV hearing begins Feb. 25, and there's no knowing whether Commission will permit industry to choose own standards — as industry would like to do. STANTON’S PRESS STATEMENT IN THE national interest, CBS and its manufacturing units will comply immediately with ODM’s request to suspend manufacture of color television equipment for the duration of the emergency. CBS television will also sus- pend its regular schedule of color broadcasts in view of the fact that there will not be a sufficient number of color re- ceivers in the hands of the public to warrant such a broad- cast service. We look forward to the day when we may resume our color production and make this electronic achievement available to the American people. Within the limitations which may be imposed by the Defense Mobilization effort, we intend to continue experimental and developmental work during the period of manufacturing suspension, with particular attention to the development of a tri-color tube in connection with the CBS color television system, which received full commercial authorization by the Federal Com- munication Commission. Development of a tri-color tube of CBS design is pro- ceeding rapidly and we expect that such a tube can be demonstrated shortly and will allow simplicity and econ- omy in manufacture. The CBS laboratories will also concentrate on the development of a simple adapter which may be attached to ordinary black-& white television sets and which will enable those sets to receive color television signals in black and white. Such an adapter made generally available to the public at a reasonable price should remove any signifi- cant objection to the CBS color television system on the grounds of incompatibility with present black and white standards. CBS-Columbia Inc., our manufacturing subsidiary, will continue to manufacture black-&-white television sets and electronic equipment for the defense program. WILSON’S LETTER TO STANTON AS YOU know the defense mobilization progx’am in which jTx, we are now engaged requires the use of vast quanti- ties of scarce materials in the production of military items and essential industrial expansion. In order to meet the production schedules which have been established it is necessary for us to overcome many bottlenecks and to con- serve critical materials for those emergency programs. We are making strenuous efforts to expand our sources of raw materials. Eventually we should be able to carry forward the military program and at the same time maintain our normal civilian production. In the in- terim, we are calling upon American industry to minimize the use of scarce materials and to stretch supplies through the use of substitutes. Through this program we believe that the civilian economy will be kept reasonably well sup- plied with essential goods. We must, however, request in- dustry to suspend plans for mass production of new prod- ucts which are not absolutely essential and which would require the use of critical materials. After careful study, I have reluctantly concluded that the mass production of color television sets presents such a case. I am, therefore, requesting the Columbia Broadcasting Sy.stem to suspend its plans for the manufacture of color television receivers in order to conserve critical materials until such time as these materials ai‘e in sufficient supply to warrant production. Your cooperation in this matter would be of great benefit to the defense effort. TELECASTERS ADOPT SELF-CONTROL CODE: Determined to head off govt, action. America's' telecasters this week voted themselves a strict self-censorship code. Representatives of 65 TV stations & 2 networks, meeting in Chicago Oct. 19, approved Program Standards Code substantially as prepared by committee under Robert Swezey, WDSU-TV (Vol. 7:25,31,36). There were no dissenting votes, 3 abstentions. Code must still be ratified by NARTB-TV board at next meeting, scheduled Dec. 3. Many telecasters found code tougher than they'd anticipated — only 2 said it wasn't tough enough. Much of it is borrowed from motion picture code and old radio code, runs gamut of most-complained-about programming excesses and shortcom- ings — all the way from "indecent exposure" to length of commercials. Copies are available from NARTB, 1771 N St. N.W. , Washington 6, "This code obviously was written for the American people and not who own and operate TV stations," said NARTB president Harold Fellows at meeting. Copies will be circulated this week to FCC and to Sen. Johnson Interstate & Foreign Commerce Committee, now considering the Benton Bill 11-man TV-radio "program advisory board" (Vol. 7:22,33,36,41). D.C. for people the Chicago s powerful set to up Code contains many flat prohibitions — against profanity, obscenity, the glorification of criminals, religious and racial bias, etc. But when it comes to advertising practices, tone becomes decidedly more placatory. Commercial time standards are merely "suggested [as] a guide to determina- tion of good telecast advertising practice," with notation that they may be revised "from time to time." Sample suggested lengths of advertising messages: 15-minute news programs, 2)4 minutes; other programs (Class A time), 2)4 minutes in 15-minute programs, 3 in 30, 6 in 60 ; all other hours, 3 minutes in 15, 4)4 in 30, 7 in 60. There's no reference to such practices as double-spotting at station breaks, etc. "NARTB TV Seal of Approval" goes to stations subscribing to code. It will be j on slide or film, for display by stations in same way movie producers use MPAA's "Johnston Office" self-censorship seal. It's suggested seal might be used in back- [ ground of station identification slide. TV's "Johnston Office" will be 6-man TV Code Review Board, to be named by NARTB-TV board, with NARTB chairman Justin Miller ex-officio member. First board will serve until 1952 convention; thereafter members will serve for year. Board's duties, as outlined in the code: (1) Review all TV programming. (2) "Receive, screen and clear" complaints about programming. (3) Define & interpret code. (4) Keep FCC, Congress and other govt, agencies informed of code's operation. (5) Inform code subscribers of complaints & commendations. (6) Make recommendations or prefer charges to TV board concerning violations. (7) Recommend amendments. HITCHING THEIR WAGONS TO NEW STAR': Whither Hollywood? Will film industry "meet and conquer the threat of TV" — or is it to be a knock-down-and-drag-out between home and theatre entertainment — or are the two media destined to merge? "Movietime U.S.A. ," glittering current bootstrap promotion campaign of film industry, is producing results — no doubt about that. While they aren't exactly tearing down the doors (except on occasional theatre-TV nights), customers are re- turning to the movie palaces. And film folk like to stress this point : Despite return of big TV shows, both film rentals and theatre business have continued summer's upswing through September. They give these reasons: (1) "Movies are better than ever." (2) TV's novelty is wearing off. But can Hollywood continue to battle TV as a competitor — or will film and telecasting industries eventually discover they're interdependent? Theatre owners already are laying plans to blend with TV through station ownership, theatre TV, etc. (Vol. 7:39). Movie producers, too, know they have important decisions to make. Old films in studio vaults — once written off as virtually worthless — have taken on new luster. Libraries of 5 leading film producers alone are said to be worth some S280,000,000 for TV use (Vol. 7:18). But the major studios are still withholding them to protect theatre owners. Public's appetite for the Hollywood product — on home TV sets — is unques- - 7 - tioned. With hundreds of new stations after freeze, it will increase many fold, j A.C. Nielson survey showed every night 1,000,000 TV sets in New York area are tuned : to at least one feature film — with figure rising to 1,500,000 on Friday nights and 1.600.000 Tuesdays. Only films included were those made for theatre release. Possible forerunner of trend is testimony by Republic Pictures president Herbert J. Yates that his studio has been considering giving up production of films for theatres, devoting entire output to TV features. Statement came out in course of hearing on cowboy star Roy Rogers' precedent-setting suit which succeeded in pre- venting Republic from selling or leasing his old films to TV (Vol. 7:26-27,30). Setback to movie companies seeking revenue through release of old films to TV was administered Oct. 18 by Los Angeles Federal court with Judge Hall's grant to Roy Rogers of permanent injunction to keep Republic from offering his films to TV. Rogers' contract didn't mention TV specifically, but reserved actor's right to control association of his name with sale or advertising of any commercial prod- uct. Court ruled this applied to TV programs — both sponsored and sustaining — since sustaining programs in effect advertise network or station presenting them. I Decision opens way for other stars with contracts similar to Rogers' to pre- i vent studios from releasing their pictures to TV. I 1 Hollywood is at the crossroads, and we think Variety's Oct. 10 sizeup of I situation particularly worth reading; I "The next 6 months are expected to be the period of decision for the motion 1 picture industry. Level of the box-office between now and next April is seen as the tell-tale on whether the film biz, as now constituted, can live side-by-side with TV or whether the senior entertainment medium is slated for wholesale merger with its junior competitor. "In any case, of course, the gap between films and TV is recognized as bound to close somewhat. With video already manufacturing and chewing up miles of film footage every week, with theatres installing large-screen tele as fast as they can get sets, with Paramount and 20th-Fox in heavy TV investments, and United Paramount hankering to merge with American Broadcasting Co., there can be little doubt that the contact between the 2 media is already getting fairly close-knit. "If the b.o., however, should fail during the coming winter to sustain the gains it has made in recent months, a wholesale realignment of film thinking vis-a- vis tele can be expected. In efforts to bolster profits and/or hedge themselves against further income losses, the majors can be expected to start looking for ways to jump into video with both feet. "Instead of the tentative eyeing of tele that's now going on, the big pro- ducing, distributing and exhibiting firms will undoubtedly be actively on the prowl for quick ways of hitching their wagons to the new star. For the producers that means selling of old — and not-so-old — product to TV..." AZCARRAGA PLANS DOZEN TV STATIONS: Uninhibited by any freeze, content to let U.S. worry about uhf and color and all that, Mexico is proceeding with plans for new TV stations — and we're now advised that no less an enterpriser than Emilio Azcarraga. , country's top TV-radio and movie tycoon has projects for 4 new border stations and 6 others. These would be in addition to the one he already operates in Mexico City (XEW-TV, Channel 2) and second he plans there (XEQ-TV, Channel 9) — both to function from giant new 25,000,000-peso, 26-studio TV-Radio Center due to be ready Dec. 1. XEQ-TV still awaits govt, go-ahead for installation at Cortez Pass, some 15.000 ft. above Mexico City. Altitude is so great that DuMont was required to guar- 1 antee satisfactory operation of transmitter in such rarified atmosphere. Idea is to throw signal not only over Mexico City but also over vastly wider radius (100 mi. or I more) than can normally be attained by TV. (Salt Lake City's KDYL-TV. incidentally, is planning station on Mt. Nelson, 9300 ft. above sea level, 3660 above average ter- rain, claimed as highest in U.S., expected to give 90-mi. radius with 50-kw ERP. ) Now experimenting on Channel 9 is home-built s4^ation operated by Guillermo Gonzales Camarena at XEGC , Saguayo : he was chief engineer for Azcarraga 's radio net- - 8 - work, and Azcarraga reports: "There is absolutely no difference, so far as quality of image and soiind is concerned, between the transmissions of his station and ours." Azcarraga has applied for border stations at Tijuana, close to San Diego ; Jaurez , opposite El Paso; Nuevo Laredo, opposite Laredo, Tex. ; Reynosa, about 50 mi. west of Matamoros (opposite Brownsville, Tex.) where Mexico City publisher Romulo O'Farrill's XELD-TV recently went into operation on Channel 7 (Vol. 7:31,36). Senor O'Farrill also owns Mexico City's other existing TV — XHTV on Channel 4. Six more outlets are planned at Monterrey, Guadalajara, Tampico, Guanajuato, Veracruz, Torreon. Most of the stations, reports Azcarraga, will be managed by an organization formed by his companies v/ith owners of leading local radio stations. Network plans await Cortez Pass station and, presumably, microwave relays therefrom. * Note : Foregoing stations would comprise majority of the ”20 or 22" which Mexico's director-general of telecommunications, Miguel Pereyra, while in Washington in early August, told us were in the works, would be built within year. New table of vhf channel allocations to Mexico, considerably revised from one previously set up in FCC table, will be released shortly by State Dept. It gives Mexico more chan- nels, is understood to affect proposed U.S. allocations only in that (a) San Diego loses educational Channel No. 3, which goes to Mexicali, and (b) several changes in channel numbers, though not niimber or distribution of channels, will be required in proposed U.S. table of allocations (see TV Factbook No. 13). For news about other Latin American TV station plans, see below. More tv activity in Latin America, spurred no doubt by availability of U. S. equipment while freeze persists here: Dr. Assis Chateaubriand, Brazil’s big chain newspaper publisher and radio operator, who already has established TV outlets in Rio de Janiero and Sao Paulo (see TV Factbook No. 13), has ordered RCA equipment for another station in Belo Horizonte, to operate on Channel 4 and be ready in early 1952. Plans are also afoot for Porto Alegre. Sao Paulo’s second station, licensed to Radio Televisao Paulista, is nearing completion and due on air on Channel 5 by Jan. 1. It’s also reported that Jao Baptista do Arm.aral, radio station owner and publisher of Sao Paulo Recorde, is planning to build both in that city and in Rio. This week was inaugural time for Argentine’s first, LR3-TV, Buenos Aires, operating on Channel 7, said to be forerunner of 2 more in Buenos Aires, 2 in Rosario, one each in Cordoba and Mendoza (Vol. 7:36, 40). Uruguay’s Servicio Oficial de Difusion Radio Elec- trica (SODRE), official regulatory agency, has asked “im- mediate” bids for construction of nation’s first TV station in Montevideo, reports Dept, of Commerce’s Foreign Com- merce Weekly. No standards were specified, but govt.- appointed committee has recommended U. S. standard 6-mc channels, using No. 2 to 6, with line and field stand- ards to be adopted after tests. FCC can’t censor, chairman Wayne Coy told Knights of Columbus in Oct. 17 letter to its Supreme Council sec- retary. Latter had forwarded resolution, passed at an- nual meeting Aug. 21-23, demanding that “proper authori- ties . . . take the necessary action to see that all TV shows are presented in such a way that they will not offend any person.” Said Coy: “The law places the responsibility upon the station licensees . . . They are limited in the exercise of their judgment by requirements of law which prohibit the broadcast of obscene, indecent or profane language and information relating to lotteries.” He sug- gested oi’ganization “consult with the station operators.” FCC Commissioner George Sterling speaks Oct. 31 to New York Section of Armed Forces Communications Assn., plans to discuss TV in general — ^freeze, uhf, color, etc. Personal Notes: Telford Taylor, onetime FCC gen. counsel, recently in private practice, who as an Army brigadier general prosecuted Nuremberg trials, confirmed by Senate this week as administrator. Small Defense Plants Administration . . . James Miles, ex-director of Purdue U’s WBAA, named executive director. National Assn, of Educational Broadcasters, newly-established full- time job, with headquarters at U of Illinois . . . Edward Cheyfitz, aide to Eric Johnston, has resigned from Motion Picture Assn. Washington staff, his TV duties to be han- dled by Taylor Mills of N. Y. office; he plans to open law office in Washington . , . Clarence L. Doty, ex-mgr., WJZ & WJZ-TV, named gen. mgr., Bories Organization Inc., TV- radio packaging-merchandising firm for grocery-drug trades . . . Robert Dressier transfers from TV research for Paramount Pictures to director of research-development of its 50% subsidiary Chromatic Television Laboratories Inc. . . . George Shupert resigns as v.p.. Paramount TV Productions, off to Los Angeles Oct. 20 to make plans . . . George W. Harvey, sales mgr., WGN-TV, Chicago, Nov. 5 becomes mgi\ of WFLA, Tampa . . . Charles C. Duncan promoted to operating staff mgr., AT&T Long Lines Dept. . . . David J. Jacobson, ex-Young & Rubicam, named CBS-TV director of public relations . . . George B. Storer Jr. transfers from WAGA-TV, Atlanta, to Fort Industry Co.’s newly acquired KEYL, San Antonio (Vol. 7:41) in early November, manager W. D. (Dub) Rogers Jr. going on semi-active status . . . Roger LaReau named commercial mgr., WTVN, Columbus . . . Maury Baker, ex- ABC, named TV-radio chief of BBDO, San Fran- cisco . . . Sidney Nadler, ex-film director, WOR-TV, joins WXEL, Cleveland, as asst, film director . . . Wm. E. Lane, ex-WWJ-TV, joins Video Films, Detroit, in charge of sales . . . Ed Gruskin, recently in Europe for EGA, joins Official Films Inc., N. Y. TV service in congested area is analyzed by FCC chief engineer Edward Allen in A Service Study in the Lake Erie Region, (TRR Report 5.3.2), available from Techni- cal Research Div., Room 1629, Temporary T Bldg., 14th St. & Constitution Ave., Washington. Walter W. Carruthers, 38, Don Lee engineering v.p., died Oct. 15 after brief illness; sm-viving are widow and son. 9 Notwork AcCOUnls: Gillette shares Oct. 26 sponsorship of Joe Louis-Rocky Marciano fight on its Cavalcade of Sports with Admiral, Crosley, GE, Motorola, Philco, RCA & Sylvania on coast-to-coast NBC-TV, Fri. 10-conclusion ' . . . Lucky Strike starting Nov. 4 presents Jack Benny 6 I times from Hollywood on CBS-TV, Sun. 7 :30-8 during ) time regularly occupied by This Is Show Business; other r dates are Dec. 16, Jan. 27, Mar. 9, Apr. 20, June 1 . . . G. F. Heublein & Bros. Inc. (A-1 Sauce & Mustard) Oct. 3 started sponsoring 12:15-12:30 segment alt. Wed. of I Ruth Lyons’ 50 Club on NBC-TV, Mon.-thru-Fri. noon- 12: 30, thru Scheidler, Beck & Werner, N. Y. . . . General Foods (Swans Down Instant Cake Mix, Minute Rice) start- ing Jan. 6 will sponsor Claudia on NBC-TV, Sun. 6:30-7, thru Young & Rubicam . . . Carter Products Inc. (Nair, Arrid, Rise) starting Nov. 3 sponsors City Hospital on I ABC-TV, alt. Sat. 12:30-1, thru Ted Bates & Co. and Sullivan, Stauffer, Colwell & Bayles, N. Y. . . . Waring Products Corp. (Waring blendor) starts Fri. participation in Homemakers’ Exchange Oct. 19 on CBS-TV, Mon.-thru- Fri., 4-4:30, thru Hicks & Greist, N. Y. Station Accounts: Local political time being sold by TV outlets on ever-increasing scale, auguring huge demand about this time 1952 — with national headquarters of major parties planning various aids to State and local candi- dates; in hot Philadelphia mayoralty race, candidates and spokesmen are buying Class A time . . . WNAC-TV, Bos- ton, reports these among accounts participating in daily 1-1:30 p.m. Shopping Vues: Abon Mfg. Co. (glove clips, handbag holders), thru J. J. Coppo Co., N. Y.; Grocery Store Products Co. (Cream of Rice cereal), thru Ted Bates & Co., N. Y.; Metropolitan Ice Co. (frozen food de- livery), thru Harry M. Frost Co., Boston; New York & New England Apple Institute Inc., thru Charles W. Hoyt Co., N. Y.; Von Schrader Mfg. Co. (Powderene rug cleaner), thru Reincke, Meyer & Finn, Chicago . . . Food firms using Donald Duck brand name, under Walt Disney licenses, are now engaged in TV-radio-newspaper promo- tions, thru Russell M. Seeds Co.; among licensees are At- lantic Syrup Refining Co., Philadelphia (chocolate syrup), and Cinderella Foods, Dawson, Ga. (peanut butter) . . . A. C. Gilbert Co. (toy trains) buys 8 Boys Railroad Club films on W.4BD, New York, Fri. 6:45-7, thru Charles W. Hoyt Co., N. Y. . . . Delta Tool Div., Rockwell Mfg. Co. (power tools) buys Sat. 1:15-1:30 Delta Tool Show, film, on WTMJ-TV, Milwaukee, thru Marsteller, Gebhardt & Reed, Chicago; other new WTMJ-TV national accounts: Hills Bros, (coffee), thru N. W. Ayer, N. Y.; Blum’s of San Francisco (candy), thru BBDO, Minneapolis; Fearn Labs. Inc. (soup mixes), thru Howard H. Monk, Rockford, 111.; R. Gerber & Co. (corn popping oil), thru Newby & Peron, Chicago . . . Hotpoint Inc. sponsoring Today’s Teens on WENR-TV, Chicago, panel of 4 teenagers discussing modern problems, thru Maxon Inc. . . . I Crosley planning another TV spot drive Nov. 12-Dec. 7, thru Benton & Bowles, N. Y. . . . GE sponsoring films of » U of Georgia Sat. grid games Sun. afternoons on WLTV, < Georgia Tech games same afternoon on WSB-TV . . . ! Among other advertisers reported using or preparing to ) use TV: Sau-Sea Foods (Sau-Sea shrimp cocktail), thru ' William von Zehle & Co., N. Y.; Top Secret Hosiery Sales Co., thru Pearl Randolph Stanton, San Francisco; Ar- restine Sales Agency Inc. (tablets to stop smoking), thru Sparrow Adv., Birmingham, Ala.; Southwestern Bell Tele- phone Co., thru Gardner Adv., St. Louis (KSD-TV); Caruso Brands Inc. (Caruso foods & macaroni products), thru Bermingham, Castleman & Pierce Inc., N. Y.; Fenton Art Glass Co. (Fenton glassware), thru John Falkner Arndt & Co., Philadelphia; Monogram of California (Add-A-Mite home calculator), thru Sidney Garfield & Associates. SEVEN TV MANUFACTURERS are joining with Gil- lette to sponsor Joe Louis-Rocky Marciano heavyweight bout coast-to-coast on NBC-TV, Oct. 26 — and together they’re paying what may be a record for rights to any prizefight. Gillette, regular TV-radio sponsor of Friday night fights, is paying $230,000, of which $50,000 will be for time charges, $180,000 to International Boxing Club for TV-radio rights. On top of this, set manufacturers will pay $70,000 — or $10,000 each — making grand total of $250,000 to IBC and $300,000 for entire telecast, including time charges. Set makers sponsoring bout are Admiral, Crosley, GE, Motorola, Philco, RCA, Sylvania — all except GE among the 8 which joined to snag July 18 Joe Walcott- Ezzard Charles title bout away from theatre TV, paying $100,000 for TV-radio rights (Vol. 7:28-29). Plugs for TV manufacturers Oct. 26 will be institutional in char- acter, as they were on July 18 telecast. Deal is one-shot action, no permanent organization of TV manufacturers having been set up to sponsor sports events. Same day sponsorship was announced, Oct. 17, RCA consumer products v.p. J. B. Elliott told Philadelphia bankers convention that theatre TV and home TV “can and should” function as complementary media. Added Elliott: “I should like to end, once and for all, the rumor that home TV interests are currently building up a war chest to do battle with theatre TV.” Amplification Dept.: “Your Newsletter of Oct. 6 [Vol. 7:40] gave a good picture of the Denver excitement over the World Series presentation on TV,” writes John R. Howland, director of products research, Stewart-Warner Corp., “and yet, according to a New York banker with whom I had supper last night and who was in Denver at the time, your story was an understatement. Not only was the World Series on TV the only topic of conversation in Denver, on the street or anywhere during those days, but the theatre showing was accomplished under the auspices of Max Brooks, executive v.p. of the Central Bank & Trust Co. of Denver, who gave away admission tickets to appli- cants in the order of their requests so as to avoid Com- missioner Frick’s ban on the sale of tickets for theatre exhibition. Mr. Bromfield, of the Corn Exchange Bank of New York, quotes Mr. Brooks as saying that after the play on Sunday had been rained out and those who had tickets had the privilege of exchanging them for the fol- lowing day, the lines formed at 2 a.m. and hundreds of people were sleeping in line when the distribution of tick- ets was begun Monday morning.” Editor’s Note: Bank reportedly picked up $5000 check for cable charges in re- turn for exclusive distribution of tickets. Cost figures filed by WKY-TV, Oklahoma City, in brief protesting FCC’s proposal to shift it from Channel 4 to 7, show: (1) Investment in facilities is $506,242. (2) Loss in 1949-50 was $269,647. (3) Total cost of shift would be $167,480; depreciated book value of present transmitter is $56,500, presumably partially salvageable; cost of an- tenna, which has “doubtful” salvage value, was $28,500. Brief includes statements from 41 dealers and servicemen who say it would cost public hundi-eds of thousands of dollars to adapt or replace receiving antennas. Station proposes alternative allocation to FCC plan, leaving WKY- TV on Channel 4. RCA has stepped up power of its 20-kw transmitter and amplifier (TT-20BL & TT-20AL) to 25 kw, redesignat- ing them TT-25BL & TT-25AL — ^for Channels 2-6. Power remains 20 kw for Channels 7-13. Army is cancelling all advertising contracts, including TV-radio (thru Grant Adv., Chicago), following Congi’ess’ removal of entire $3,100,000 recruiting ad appropriation. Trad* Beparl October 20, 1951 I CRYSTAL-GAZING THE NEAR FUTURE OF TV: RCA consumer products v.p. Joseph B. Elliott sparked the most lively conversation piece in the industry several weeks ago when he flatly predicted shortages of "quality receivers" by mid-December (Vol. 7:39). So we addressed identical letters to a cross section of TV set manufacturers, asking them; "What's your thinking on this score, and on TV market prospects generally for the rest of this year and early next?" WITH AM^PM REPORTS 1519 CONNECTICUT AVE. N.W. If WASHINGTON 6. 0. C. • TELEPHONE MICHIGAN 2020 Thoughts of most seemed to run in same direction; demand will soon outrun foreseeable supply, material shortages inevitably in offing. Of the 14 responding, all but 3 gave us permission to quote them by name, and we've digested their responses herewith. But the 3 anonymous respondents are particularly worth noting, because each in own way dissents from majority. One is a priyate label manufacturer, who opined that the materials situation will ease up during first 1952 quarter "and therefore production may be greater than is anticipated at this time." Another, a highly reputed medium-sized manufacturer who said his firm's inventories were all absorbed by Sept. 15, saw no shortage until fall of 1952 ; thinks the industry "ought to get sensible" and plan in terms of 4-5,000,000 sets next year "so they will make as much on this volume of business as they would with 50% more and dumping the extra 50% at a loss." The third, also medium-sized, pooh-poohed shortage problems, asserted he's "a bit allergic on the subject of material shortages." His reply ran so far counter to others that his quotes are worth special note. All replies were written before DPA administrator Manly Fleischmann' s lugubrious report last week on metal supplies (Vol. 7:41). For essential quotes from most of the replies, see opposite page. TV MARKET UP, INVENTORY CUT IN HALF: "Biz better. Table models short. Conservation measures evident in shipments received this a.m. per long-standing plans." Foregoing verbatim message from major distributor for one of top receiver manufacturers, in good market, just about epitomizes trend of TV trade as a whole. And the trend of business generally would seem to apply to TV-radio particularly, as nicely summed in Oct. 19 United States News: "Sales volume, in fact, has never been so high except during scare-buying waves... hard goods are selling better than in any year except 1950 and early 1951." And National Industrial Conference report this week says liquidation of in- ventory could be basic fact of fourth quarter — third quarter having been marked by leyeling off. Its sizeup of commodity market in general certainly applies to TV. This week's RTMA figures on production and inventory are all to good, too: TV output for week ending Oct. 12 was 99,877 (1990 private label), up some 12,000 from preceding week (Vol. 7:41) — and best week since 122,489 of last April 20. i Factory inventory same date fell to 389,894, down about 25,000 from week | before — down, too, to just about half peak inventory figure of 768,766 recorded as j of last Aug. 3 (Vol. 7:32). In other words, factory inventory has been reduced some ( 380,000 in 11 weeks to approximately the figure of mid-April (Vol. 7:16). * Oct. 1 distributor and dealer inventory estimates (always month late) won't be known until early November — former from RTMA, latter from Dun & Bradstreet — so it's somewhat too early to gauge flow in those pipelines. However, the recently reported figures for end of August were quite gratifying (Vol. 7:40), and reports from wholesalers and retailers have been consistently good the last 6 weeks. Radio output fell to 205,014 units (73,929 private label) from 230,385 the preceding v;eek, factory inventory also going down slightly to 362,688 from 388,463. Radios were: 147,574 home receivers, 27,238 portables, 30,202 auto. - 10 - - 11 - What They Say About Demand, Supply and Shortages (See story on opposite page) ADMIRAL CORP. (Ross D. Siragusa, president)— “The first of the year will see a shortage of TV sets of the better known brands. As far as prospects for next year are concerned, all I can say is that it pretty much depends on what happens in Korea and in Europe. If the Govt, continues to restrict the use of materials, obviously we are going to feel the effects of it in proportion to the amount of restrictions ...” BENDIX RADIO, div. of Bendix Aviation Corp. (R. W. Fordyce, gen. sales mgr.) — “My estimate is that there will be a shortage of good quality low-end merchandise before the end of this year. I do not believe there will be an over-all shortage of medium and higher priced merchan- dise this year, but I feel that inventories will be brought well in balance at year end. The pinch from a material standpoint will very probably be felt the first quarter of 1952, and will no doubt accelerate from that point on. I have the feeling that during the coming year the market will be able to absorb the merchandise which the industry will be able to produce, and that we will not see a repeti- tion of the price-cutting and dumping which occurred this summer.” CROSLEY DIV., Avco Mfg. Corp. (John W. Craig, v.p. & gen. mgr.) — “There is no question but what the wolf is finally at the door on the materials problem . . . Every indication is that the first [1952] quarter cuts, particu- larly in copper, aluminum and nickel, will be more severe than for the fourth quarter. I feel that steel will also be cut to some degree in the first quarter as compared to the fourth quarter, although not so drastically as has been the case in the reductions in copper and aluminum. All of this spells less materials and less unit production of TV receivers; however, the industry has done a good job to date in the conservation of materials, and I think much more can be accomplished, particularly in the conservation of copper and aluminum. “I think we must be realistic about the 1952 market for, as you know, for all practical purposes there will be few if any new stations on the air for the calendar year 1952 due to the freeze situation. [Yet] there is still more than ample inventory in the pipe-lines [and] it is our considered opinion that manufacturers will be able sub- stantially to supply the demand for the remainder of this year and into 1952 insofar as we can predict today from the over-all materials available for the succeeding quar- ters in 1952. It is my further opinion that prices will in- crease as we progress in the next few months for, as you know, wage rates are ‘tied to the moon’, and also unit vol- ume has been reduced due to material shortages, which means higher burden costs.” EMERSON RADIO & PHONOGRAPH CORP. (Benjamin Abrams, president) — “It is my opinion that the demand for TV receivers will exceed the supply no later than Decem- ber ... It appears that right now, sales at the consumer level are considerably in excess of production. Likewise, I find that in the case of Emerson, it is also true that sales by distributors to dealers are approximately 100% in excess of our factory’s current production. [But] the real shortage can only take place after . . . inventories are disposed of. “Based upon allocations of material, the manufacturer is not likely to materially increase his production for the rest of this year over the current production rates. It is also well to note that indicated allocations for the first quarter of 1952 will be smaller than the fourth quarter [and] the real shortage panic [should] be felt and fully appreciated x’ight after the first of the year.” GENERAL ELECTRIC CO. (A. A. Brandt, gen. sales mgr., receiver dept.. Electronics Div.) — “Long anticipated short- ages for manufacturers are now a reality at a time when the industry traditionally moves into peak production. [And] there appears to be no reason to expect an early change in the materials and controls situation, certainly not before the second or third quarter of 1952. It is ex- pected, therefore, that curtailed production coupled with increasing demand will result in an actual shortage of TV at the consumer level either late in 1951 or early in 1952.” MAGNAVOX CO. (Frank Freimann, president) — Though absent when our letter was received, Mr. Freimann was quoted in reports from Dallas to effect that production first quarter 1952 will be “considerably less than half” first quarter 1951 and that there will definitely he shortage of sets by Christmas. He described certain markets as “run- away,” notably San Francisco, and stated: “There’s no question but what prices will have to rise, not only because of supply and demand but because of the continued upward pressure of material and labor costs.” MOTOROLA INC. (Robert W. Galvin, executive v.p.) — “There is a shortage of Motorola TV receivers now. Al- though we are manufacturing at the maximum rate per- mitted by govt, regulations, we are still required to allo- cate each set. It is anticipated that this condition will continue through the first quarter of 1952. Depending on future govt, regrdations and the expanding market for TV, a more serious shortage could develop in the last half of 1952.” PACKARD-BELL CO. (Robert S. Bell, executive v.p.) — “The NPA [has] allotted materials which, in their estima- tion, will allow the industry to produce 1,000,000 TV and 2,000,000 radio sets during the fourth quarter, which is, of course, the peak sales period. This should result in the clearing of alm.ost all inventory on the market, plus the sale of current production. The result should be a shortage of at least some lines, if not all, by Dec. 1. “We are sold out through Dec. 31, which is as far ahead as we take orders. The first quarter of 1952 should see substantial sales [and] I find it hard to believe that the production of less than 1,000,000 TV sets [in first quarter] will satisfy the demand, although it should not create any actual acute shortage. [It appears] that there will be a rather good balance between supply and demand so far as keeping the business profitable for dealers, dis- tributors and manufacturers during the first quarter of 1952 [and] thei'e will be a continuing large demand for TV even without new stations. We just don’t believe in the bogey of saturation any more than the automotive industry has during these past 30 years.” SENTINEL RADIO CORP. (Ernest Alschuler, president) — “Unless there is a complete change in the present quite apparent pattern of increasing volume of sales and a de- creasing ability to manufacture, our thinking here is that the filled pipe-lines will be emptied somewhat after the first of the year. We continue to be confident that the 12 - demand for TV will be more than healthy, but it is unfor- tunate that a w'ay cannot be found to more moderately gear production with demand.” STROMBERG-CARLSON (S. R. Curtis, v.p. & gen. mgr.) — “It is my thinking [that] by the end of 1951 the over- stock of TV sets hanging over the market will have been pretty w'ell disposed of at all levels, the manufacturer, dis- tributor and dealer. [And] I believe that the present CMP regulations [will] continue to hold a ceiling on the amount of production possible, and that by the first of the year, most manufacturers will be pressing production to the ceiling. “Furthermore, I gather [that] the amount of raw ma- terials to be allocated for the first quarter will be even less [than during fourth quarter]. If these assumptions prove to be correct, then the market after the first of the year should be reasonably firm, and I believe the produc- tion will tend again to the use of larger and larger tubes, since the unit output will be restricted, and since the differ- ential in tube prices has become less and less.” SYLVANIA ELECTRIC PRODUCTS INC. (A. L. Chap- man, v.p.. Radio & TV Div.) — “I believe there will be a shortage of TV receivers in the first quarter of 1952 due to the shortages of materials, and also due to demands for plant capacities for military equipment ... We have no fears at all about next year’s demand, because it is evident that at long last the FCC should be very close to the time when the freeze should be lifted and UHF sta- tions are going to take TV into the byways of the nation. If it were not for material shortages, I would expect that next year would be one of the largest in TV volume.” TELE KING CORP. (Louis I. Pokrass, chairman) — “There definitely will be shortages of materials which will curtail Topics & Trends of TV Trade: Not much doubt about parts shortages — in minds of GE electronics executives, at least. Sjrracuse plant laid off 2000 employes Oct. 18, shut dowm TV plant for week, blaming shortages of “certain components.” Released workers were told to report back Oct. 24, and it was indicated that during shutdown com- pany will begin converting some of its TV plant space to military production. During early phases of recent trade slump, GE workers generally fared better than most other TV-radio plant personnel because company continued rela- tively high production while others trimmed output. ♦ * * * New, lower price ceilings for TV-radio are being ex- plored, OPS officials told representatives of set manufac- turing industry at Washington meeting Oct. 18. A spe- cial price control order for TV-radio industry was sug- gested by OPS to put ceilings “at a more realistic price level,” since sets cui’rently are selling well below levels established by OPS’ general ceiling price regulation (GCPR). Industi-y spokesmen said set manufacturer’s cur- rently are operating on small profit margins as result of trade slump. Possible price ceilings on warranties also were discussed. Subcommittee of 5 will be named to look into possibilities of tailored pricing order for TV-radio. Members of OPS TV-radio manufacturers industry committee: C. P. Baxter, asst. gen. mgr., RCA-Victor home instrument dept.; A. B. Chambers, DuMont; Arthur L. Chapman, TV-radio v.p., Sylvania; Richard A. Graver, v.p.. Admiral; W. J. Halligan, president, Hallicrafters ; Larry F. Hardy, president, Philco TV-radio div.; Gerald Light, adv. mgr., Emerson ; Glenn W. Thompson, president, Ai-vin; I. W. Wyckoff, secy.-treas.. Pilot. production of TV receivers during 1952, which shortages | will really stai’t the latter part of this year and will \ steadily increase — becoming worse by the end of 1951.” \ NAME WITHHELD ON REQUEST— “Like most manu- facturers in our industry, we opened the production valves wide during the first quarter of 1951 and built to the ^ limit of our capacity in the belief that we could not re- ceive materials later this year. Of course, we know that there’s no evidence of real shortages in our industry at this moment. Our production is now being stepped up ’ again, and we have no difficulty procuring all items needed. “We are being advised again that there will be severe shortages of materials and some components early in 1952. Just last week two receiving tube manufacturers told me that the real bottleneck would be the shortage of ^ nickel which would definitely limit the quantity of circuit tubes that can be covered in the first quarter. In my files there are letters and memoranda dated just about a year | ' ago which cover the subject of a nickel shortage that was ; developing in the tube industry and which was going to not only slow us down but probably stop us in 1951 ... “Personally, I do not believe that the shortage of ma- ; terials will be a handicap to manufacturers next year. I 1 think the industry will be able to manufacture as many j sets as it can sell. Material shortages will probably de- ' velop, but I think that our industry is extremely resource- ful and that it will be successful in developing the substi- j tutes and designing changes necessary to get around any ' ‘real’ material shortages that develop. “We are not stocking up any materials in anticipation ; ' of shortages ... We are gambling on the side of enough materials to support our sales program. If we lose this , ' gamble, there will be a severe shortage of our merchan- dise, which to me is a much ‘higher class problem’ than i having a surplus of merchandise ...” ! Trade Miscellany: Crosley starts construction of new $5,500,000 plant for defense production on 73-acre tract on Glendale-Milford Road, Cincinnati, to provide 360,000 sq. ft., employ 1500-2000, be partially ready by June 1952 . . . Because DuMont’s W2XCD, in Passaic, N. J. (now WABD), began regulaily scheduled telecasts in 1930, and firm’s first receiver was turned out there in 1938, that city has adopted slogan “Passaic, Birthplace of Television” — and Chamber of Commerce plans dinner Nov. ' 14 honoring Dr. Allen B. DuMont . . . Olympic Radio’s 3- week jurisdictional strike ended with return of about 450 IBEW (AFL) workers Oct. 15, issue with lUE to be re- solved under NLRB election to be set . . . Argentina’s new TV station in Buenos Aires (see p. 8), supported if ' not controlled by Peron regime, signaled order by Ministry of Economy issuing certificates of necessity for 30,000 TV sets, expected mainly from U. S. Merchandising Notes: Trade-in sales account for 40- 60% of current Los Angeles retail TV business, Oct. 19 Retailing Daily reports — unnamed executive of “largest volume chain” quoted as saying private and ofF-brand pro- motional sets still represent 75% of his total sales . . . RTMA has published county-by-county figiu’es on estimated ' 2,744,831 TVs shipped to dealers during first 8 months of 1951, available on I’equest . . . Report on Muntz TV Inc. 2 by O. B. Motter & Associates, N. Y., notes these TV unit j sales: April 11,589, May 7491, June 6890, July 6574, Au- ■‘f gust 11,046, Sept, (estimated) 10,000 — total of 53,590 4, valued at $14,926,300, as against 41,434 valued at $10,786,- • 600 for same 6 months of 1950 . . . Muntz reported now turning out 24-in. console to list at $360 plus tax .... Arvin SVz-in. table model offered by Chicago Sun-Times free to anyone procuring twelve 6-month subscriptions. ■ 13 - Mobilization Notes: Tougher policy on tax amortization benefits for plant expansion was announced by DP A chief Manly Fleischrnann Oct. 18 as 60-day “moratorium” ended (Vol. 7:33). Principal changes, designed to cut down number of govt.-aided expansion projects: (1) After Nov. 1, no company can begin expansion [without DPA approval. Formerly, firms could postpone [ application until 6 months after they had started building. (2) Ten-band priority system will be set up to govern processing of applications, with machine tools getting top place on list. Most electronic plants would fall under priority No. 5, “military end items and supporting projects urgently needed by the armed services.” During “moratorium,” DPA actually handed out more authorizations for fast tax write-off than any comparable period — including certificates of necessity for some $20,- 000,000 in expansion of electronic and related companies. In addition to those listed in Vol. 7:33, DPA okayed these pi’ojects since moratorium began Aug. 18 (amortization at 75% of project cost except where otherwise noted): Crosley, Evendale, Ohio, fire control units, $4,697,500; Corning Glass Works, Danville, Ky., glass bulbs for elec- tronic tubes & lamps, $3,605,750 (50%), and lead glass tubing & rod for tubes & lamps, $2,228,450 (50%); Emer- son, Jersey City, fuzes, $1,960,160; Allen-Bradley Co., Mil- waukee, resistors, $1,316,088; Sonotone Corp., Elmsford, N. Y., military items, $347,553. ; Certificates granted in cases where expansion had al- ready begun before Sept. 23, were listed by DPA without dollar value, which will be established later. The follow- ing cases came under that heading, and are listed with dollar value applied for, rather than amount granted — which is often considerably less: Brown & Sharpe Mfg. Co., Greystone, R. I., military items, $1,442,258; Sylvania, electrical products at Warren, Pa., $822,610, and tubes at Emporium, Pa., $314,000; Motorola, Phoenix, research, $528,840; Raytheon, elec- tronic tubes at Newton, Mass., $427,428, and magnetron tubes at Waltham, Mass., $353,581; Jeffers Electronics Inc., DuBois, Pa., capacitors & choke coils, $371,154; Hycon Mfg. Co., Pasadena, Cal., electronic equipment, $306,152; RCA, Lancaster, tubes, $127,000; Raymond Rosen Engr. Products Inc., Philadelphia, electronic equipment, $76,417; Resistoflex Corp., Belleville, N. J., aircraft electronic equipment, $69,617 (80%); Federal Enterprises Inc., Chi- cago, transmitter & receiver assembly cases, $25,725; Lear |lnc., Los Angeles, control systems, $10,616. :[c sjs ❖ Two new defense electronics groups were set up this week by Defense Dept. Research & Development Board Lnder chairman Donald A. Quarles of RDB’s electronics Committee. Most important move is establishment of clearing house to collect and disseminate information on c-eliability of electronic equipment, headed by M. Barry Carlton of RDB secretariat and Dr. Albert F. Murray, RDB TV-radio consultant. Represented will be Munitions Board, Joint Chiefs of Staff, the 3 armed services. ^ Also formed was group on transitors (Vol. 7:39), bomposed of top men in the field, to assist electronics com- iiiittee “to establish sound policies for the development and 'functional application of transistors by the armed serv- ices.” Transistor group’s membership: Dr. J. W. McRae, jBell Labs, chairman; E. Finley Carter, Sylvania; Dr. iiE. W. Engstrom, RCA; Dr. I. A. Getting, Raytheon; Dr. I A. G. Hill, MIT; G. F. Metcalf, GE; Col. Cary J. King, bffice of Chief Signal Officer; Col. George F. Moynahan, jffice of Army asst, chief of staff; James M. Bridges, Ord- lance; Charles L. Stec, Navy Buieaii of Ships; H. V. 'loble, Wright Air Development Center, Dayton; Dr. E. W. t'samson. Air Force Cambridge Research Center. II Financial & Trade Holes: Despite lower income from theatres, Monogram Pictures reports over-all revenue from film rentals went up because of income from TV — and president Steve Broidy said company is oi’ganizing unit to produce films expressly for TV. Monogram showed consolidated net profit of $1,061,648 ($1.40 a share) on gross of $9,311,900 for fiscal year ended June 30, com- pared with loss of $668,342 on $9,225,800 in fiscal 1950. No evidence of “recession” in United Paramount The- atres Inc. report for 9 months ended Sept. 30, showing consolidated net earnings of $9,537,000 (including $3,483,- 000 of capital gains) or equivalent of $2.93 a share. This compares with $7,963,000 (including $1,456,000 capital gains) or $2.44 a share for same 1950 pei-iod. For third quarter, earnings were $4,688,000 ($1.44 a share), in- cluding $2,297,000 capital gains, vs. $2,528,000 (78^ a share), of which $414,000 were capital gains, same quar- ter last year. “Fix'ming of theatre attendance” due to improved product and more spending on reci-eation and entertainment, was reported by president Leonard Golden- son. He also informed stockholders that FCC has set Jan. 15 date for hearing before examiner on UPT pro- posal to merge ABC (Vol. 7:32,35,41). Indicative of tax-hit balance sheets of most firms in electronics fields, GE third quarter report shows net earnings of $15,610,819 compared with $35,474,467 in third quarter 1950. Provision for Federal taxes, including $13,- 000,000 for excess profits tax, was $59,000,000 compared with $38,500,000 same 1950 quarter. For 9 months of this year, net earnings were $85,936,435, compared with $112,- 919,454 preceding year — after provision of $201,000,000 for Federal taxes vs. $98,000,000. Sales for 9 months were up to $1,694,084,373 from $1,354,483,215. Short interest in TV-radio and related stocks on New York Stock Exchange showed these changes between Sept. 14 & Oct. 15, NYSE reported this week: Admiral, 33,492 shares on Sept. 14 to 26,035 Oct. 15; Avco, 23,280 to 20,480; GE, 11,995 to 9526; Magnavox, 13,190 to 13,213; Motorola, 15,603 to 15,565; Philco, 15,547 to 10,236; RCA, 34,860 to 37,204; United Paramount Theatres, 8815 to 8080; West- inghouse, 4497 to 6417; Zenith, 21,336 to 23,990. ■ Trade Personals: Leonard F. Cramer, for 16 years with DuMont, until recently executive v.p. of manufacturing operations, Nov. 15 joins Crosley div., Avco, as asst. gen. mgr. under John W. Craig . . . Rear Adm. Stanley F. Patten, USN ret., elected v.p. of Allen B. DuMont Labora- tories Inc.; since 1947 he has been asst, to Dr. DuMont, lately was director of mobilization planning . . . Martin L. Scher, ex-Motorola-New York, named national sales mgr., Emerson . . . Arthur Richenthal, N. Y. attorney, named sec- retary, Standard Coil Products Co. . . . Jonathan A. Brown, ex-Sprague Electric, named director of research & statistics dept., N. Y. Stock Exchange . . . D. S. Beldon, radio sales mgr., named national account sales mgr., GE receiver dept., with D. E. Weston Jr. upped to radio sales mgr. and R. V. Buivid named asst. . . . E. G. Shower, ex-Bell Labs, named chief engineer of new germanium div.. Radio Re- ceptor Co., Brooklyn, in charge of development and pro- duction of germanium devices . . . Stanley C. Skoog named mgr. of GE’s Illinois Cabinet Works, Rockford, 111., mak- ing company’s TV-radio cabinets . . . Edwin L. Liberg named supervisor of custom engineering. Audio & Video Products Corp. . . . M. A. Polak, ex-Andrea, Fada & Air King, named sales chief of Tele King Distributors Inc. of New York, succeeding Duke Wellington, now with Tele King . . . RCA tube dept, promotes 4 field salesmen to new posts as tlistricL managers: W. H. (iarietl, t^entral district; Victor Williams, Southeastern; C. A. Brokaw, Western; W. H. Allen, Eastern. 14 - Telecasting Notes: Screen Actors Guild warns 69 pro- ducers of TV films that it won’t permit their products to be shoAvn in theatres, unless the actors receive additional pay: it served notice it will cancel its contract with any producer releasing TV films for theatre exhibition . . . NBC-TV’s new 7-9 a.m. show starting sometime this winter will have Dave Garroway as m.c., probably use same format as old Garroivay at Large show . . . Trans- mitter of CBS’s KTSL, Hollywood, starts from new Mt. Wilson site Oct. 28, with 25-kw ERP on Channel 2 radiated from 2837 ft. above average terrain; call letters change same day to KNXT . . . Mexico City’s XEW-TV (Azcar- raga) has increased operating schedule from 25 to 35 hours per week, expects as of Dec. 1 to go to 60 hours . . . Major TV advertisers in Cuba, reports Tide, are Frigidaire, Can- ada Dry, Colgate, Phillips Milk of Magnesia and 9 top TV set manufacturers . . . BMI, now licensor of 2800 radio and TV stations, reports net profit of $135,257 after taxes on gross revenue of $4,700,000 for fiscal year ended Sept. 30; Carl Haverlin reelected president . . . New York State WCTU resolves this week against beer sponsorship rights to next year’s telecasts of major political conventions . . . DuMont’s WABD, New' York, moves to Empire State Bldg. Oct. 26, having received FCC permission to employ full 5-kw transmitter (16.7-kw ERP) . . . NARTB-TV mem- bership went up to 69 stations this week, Baltimore’s WBAL-TV joining up in time to vote on program code (see p. 6) ; DuMont and NBC are only network members. GE Advanced Electronics Center at Cornell U, an- nounced this week as joint GE-Cornell project, will be established on Ithaca campus “to carry out advanced study and development in the field of electronics and at the same time provide scientists and engineers with teaching and educational opportunities of a type never previously achieved.” During present emergency, projects may in- clude development of control systems for guided missiles, electronics counter-measurers, infra-red systems. Four- man management team will be headed by Brig. Gen. Tom C. Rives (ret.) of GE’s engineering dept. H. R. Oldfield Jr., GE electronics dept. govt, sales mgr., will be resident manager. Dr. Charles R. Burrows, Cornell electrical engi- neering school director, will be associate principal scien- tist, and name of principal scientist will be announced later. Center w’ill employ 80 first year, half of them scien- tists. Modernized lab is due for completion in February. RTMA Transmitter Division, at one-day general mem- bership meeting in Washington’s Wardman Park Hotel Nov. 1, will hold panel discussion on “What I See for the Electronics Industry in the Year 1952” with these partici- pants: Fred R. Lack, Western Electric, for industry; E. T. Morris Jr., director, NPA Electronics Div.; Col. C. A. Poutre, director. Munitions Board Office of Electronic Programs; Curtis B. Plummer, chief, FCC Broadcast Bu- reau. Dinner wdll be addressed by Adm. John R. Redman, director, communications-electronics. Joint Chiefs of Staff. McFarland Bill to change some FCC procedures (Vol. 7:39) again proved too much for House Interstate & For- eign Commerce Committee to wade through. This week, it gave up its consideration of Senate-passed bill — after whole month’s discussion — said it would make bill first order of business when Congress reconvenes. More Oct. 1 sets-in-use reported since NBC Research’s “census” of Sept. 1 (Vol. 7:39): Cleveland 510,922, up 16,922; St. Louis 317,000, up 11,000; Kansas City 143,558, up 10,558; Norfolk 81,556, up 6256; Boston 786,790, up 20,790; Tulsa 89,263, up 11,763; Baltimore 324,993, up 10,993; Johnstown 112,300, up 5300; New Orleans 63,548, up 2348; Milwaukee 266,965, up 8965; Providence 165,000, up 3000. Whether Comr. Hennock will remain on FCC, now that Senate Judiciary Committee has failed to act on her appointment to New York Federal judgeship, was subject of much conjecture in Washington circles this week. She remained away from office, would make no comment. | Though she informed committee Chairman McCarran she has no desire for recess appointment, and President Tru- man told press conference Oct. 18 that he doesn’t intend to withdraw appointment, chances of getting judgeship now look very slim. Reason for Miss Hennock’s rejection of recess appointment, presumably, is that she would run risk of winding up with neither position. She would have to resign commissionership, which runs until 1955, then face probability Senate would fail to confirm her when it returns next session. Hence most guessing now is that she will stay at FCC. Ambitious community antenna proposal of J. E. Belk- nap & Associates — microwave facilities to feed numerous Illinois and Missouri towns (Vol. 7:40) — brought quick ad- verse reaction from KSD-TV, St. Louis. Station, one of those whose signals would be used, protested to FCC that Belknap: (1) Could select programs “without regard to the efforts of [KSD-TV] to maintain a balanced program structure.” (2) Might “appropriate literary and artistic property without authorization and for profit.” (3) Raises questions of “an unauthorized rebroadcast contrary to law.” Station wants a hearing “or similar administrative procedure” on subject. It’s first station to object to FCC about community antenna idea. Some have even encour- aged the service with free plugs. Actors in motion pictures made by TV networks must be in separate collective bargaining units from live TV actors, NLRB ruled Oct. 16 in dispute between Screen Actors Guild and TV Authority over rights to representa- tion of actors in CBS’s filmed Amos ’n Andy show. TVA had argued that actors in filmed show should be included in same bargaining unit as actors in live CBS shows, SAG insisting on separate units for films made by networks. NLRB on Oct. 16 also called for representation election within 30 days for all entertainers in live TV programs originating in New York, Chicago and Los Angeles, as well as election among Amos ’n Andy cast. Supreme Court will hear transit FM argument, hav- ing decided this week to accept appeal from U. S. Court of Appeals (District of Columbia) ruling that transit FM deprives people of liberty, is therefore unconstitutional (Vol. 7:22). Court of Appeals ruled only on commercials; opponents of transit FM want whole service banned, includ- ing music. Proponents say that lower court decision jeop- ardizes broadcasting commercials in general. Argument should come this fall or winter, decision next spring. Telecasters won excess profits tax relief Oct. 19 when House reversed its surprising rejection of compromise tax bill, passed slightly revised measure, sent it to White House. Section applying to telecasters is substantially same as original Senate measure (Vol. 7:37-38), permits firms with combined TV-radio station operations to drop TV losses and TV assets in figuring EPT credits. Two uhf applications filed with FCC this week were from WOKY, Milwaukee, asking for Channel No. 19, and WWW, Fairmount, W. Va., seeking No. 35. Total on file is now 448, of which 16 are uhf. [For further details, see TV Addenda 13-0 herewith; for listing of all applicants to date, see TV Faetbook No. 13 and Addenda to date.] Despite reducing radio time sales (Vol. 7:39), NBC’s over-all sales for 1951 are expected to be considerably higher than 1949’s $72,867,000 and 1950’s $92,373,000, which represented 18.3% & 15.8%, respectively, of RCA’s con- solidated income — the increase due entirely to TV. In this lamuez Network TV Billings Surge Past Radio, page 1. Toward Freeze-End; Border Reallocation, page 1. Curbs on Station Alterations Eased, page 2. Grand Climax of The Color Fiasco, page 8. October 27, 1951 The Color Denouement — An Editorial, page 6. Million TVs in First-Quarter 1952? page 9. Trade Going Good, Happy About Color, page 9. Count of TV Sets-in-Use by Cities, page 13. NETWORK TV BILLINGS SURGE PAST RADIO: Gross time billings of the 4 TV networks went ahead of those of the 4 radio networks for first time in September — hitting record total of 111,920,131 as against radio's |11,860,646. There you have another eloquent facet of "fabulous upswing in TV billings" reported statistically in these columns each month, last analyzed in our Vol. 7:36. If you will study the breakdowns supplied by Publishers Information Bureau (see p. 14), particularly in relation to previous months' figures, you'll observe . complete substantiation of our predictions that network TV billings would soon over- take network radio. If this is true of network TV, it's reasonable to assume it will eventually be true of TV spot and local — what with their ready saleability and TV's vastly higher station time rates — albeit fact remains there are merely 108 TV stations in operation as against very nearly 2400 authorized AM and 680 FM stations. Significant in PIB figures, too, is fact NBC's forecast that its September TV revenues would nearly double its radio (Vol. 7:36) very likely came to fruition. Though figures for NBC's 5 prosperous owned-&-managed stations aren't available, its network figures are $5,380,538 for TV vs. $3,713,235 for radio — TV ahead by 45%. September total network TV ran well over threefold that for September 1950, or $11,920,131 vs. $3,502,682. September radio was $11,860,646 vs. $13,930,996. All save DuMont TV billings were up from preceding month, all save Mutual AM billings were down from preceding month. For first 9 months of this year, network TV totaled $85,379,619, compared with $30,930,165 for same period last year. Network radio was $130,904,666, nearly $5,000,000 under same 9 months of 1950. Final tote on all TV — time billings of the 4 networks and 108 stations — will stand at $250,000,000 or more for year when over-all figures are made known by FCC in early 1952. That's still our prediction (Vol. 7:32,36). TOWARD FREEZE-END; BORDER REALLOCATION: FCC is gradually clearing underbrush with idea of getting directly at heart of end-of-f reeze problems the minute the last comment is filed in "paper" hearing on Nov. 26 — now that it has assurance that defense effort doesn't affect freeze in any way (see p. 3). Actual final decision before first quarter of next year is still unlikely, ,and sizeable number of stations actually on air before well into 1953 is still seen i:as virtual impossibility. Nevertheless, Commission is trying to do everything it lean to anticipate Nov. 26 without prejudging filings yet to come. To date, there *iare 1220 papers in the docket. \ Several exploratory FCC sessions have already been held — no decisions imade — with commissioners beginning to line up their philosophies for "Der Tag". "Flexibility" is word often heard at Commission, lending support to belief rock-bottom co-channel separation may be reduced from 180 miles to 165 or so — in Copyright 1951 by Radio News Bureau 2 - "exceptional" cases. At same time, there's every reason to believe that FCC intends to maintain high average separation. A common misconception about separations, it's pointed out at FCC, is that proposed 180-mi. minimum is the "norm". If you take FCC's proposal and draw circles based on it you'll find average separation is nearer 220 miles. Commission may try to maintain this average, or close to it, even if minimum is lowered. That oral presentations will be mighty rare — as everyone expected and most hoped — was made clear by FCC this week when it issued first order on first such request. It told Cornell U (Vol. 7:38) that it had no problems that Commission couldn't decide on basis of written comments. Presumption is that most, if not all, such requests will get same treatment. * * ♦ * Nettlesome Mexican border allocation has finally been nailed down, to the intense relief of Commission, with State Dept.'s announcement this week that execu- tive agreement has been reached. After literally years of dickering, FCC feels U.S. wound up with best deal it could hope to make. Allocations to cities affected should now read as follows (vhf only being involved): U.S. : Flagstaff, 9,13; Phoenix, 3, 5, 8*, 10; Tucson, 4, 6*, 9, 13; San Diego, 8,10; El Paso, 4, 7*, 9, 13; Laredo, 8,13. Mexico : Mexicali, 3; Nogales, 2,7,11; Hermosillo, 6,8,10,12; Ciudad Juarez, 2,5,11; Monterrey, 2,6,10; Nuevo Laredo, 3,11; , Reynosa, 9,12. [Note : pp. 54-60 of TV Factbook 13 should be corrected accordingly.] j In U.S., San Diego loses one channel. Tucson gains one. In Mexico, Mexicali and Monterrey lose one each, while Hermosillo and Reynosa gain one each. (For plans for additional Mexican border station construction, see Vol. 7:42.) i Agreement on powers stipulates that Mexico will not exceed U.S. proposed maximum: 100 kw for Channels 2-6, 200 kw for Channels 7-13. Also agreed upon was plan to assign stations so as to permit use of offset carrier. CURBS ON STATION ALTERATIONS EASED: Many more TV-radio station alteration projects I and considerable new radio station building will be exempt from govt, construction controls as result of this week's NPA action reclassifying TV-radio broadcasting facilities into the "industrial" category. Broadcasters may now "self-authorize" orders — write their own priority tickets — for controlled materials up to 25 tons of steel. 2000 lbs, of copper and 1000 lbs, of aluminum per quarter, without application to NPA. Broadcasting facili- ties formerly were classed as "commercial", and as such were entitled only to self- authorization up to 2 tons of steel, 200 lbs. copper per quarter, and no aluminum. i Change will probably be most helpful to broadcasters planning relatively small remodeling and alteration jobs, as well as some builders of modest new radio stations. Some broadcasters whose fourth-quarter applications were turned down by NPA (Vol. 7:31-41) may now go ahead and build — if their requirements don't exceed the new self-authorization limits. Even new TV stations can be built under self-authorization procedure, if the construction can be stretched over 12-month period (builder self-authorizing up to his full quota for 4 quarters), using existing structures to provide studio space. This week's action was victory for NARTB, which for many months had pushed for the move. Similar reclassification of newspaper and publishing industry 2 weeks ago (Vol. 7:41) set precedent for change in status of broadcasting. ‘ Final batch of fourth-quarter construction approvals and denials, released by NPA at week's end, listed no TV-radio station approvals, one denial — to KVNC, Winslow, Ariz., CP-holder which had applied to build AM station costing ^37,700. (Despite rejection, station can be built during fourth quarter, since it is known to require less material than it is now permitted to self-authorize.) Also denied was application by Tele Service Co., Wilkes-Barre, Pa., to build community antenna system — second such project rejected by NPA (Vol. 7:40). ^ TV-radio broadcasters fared well under construction controls during fourth J quarter. Final score: 16 projects approved, 7 denied. First-quarter applications are now being processed. I 3 GRAND GLINAX OF THE COLOR FIASCO: No "freeze of the freeze" on station construction ...No change in black-&-white receiver production. . .No stoppage of either iihf , color or theatre-TV developmental work. But no "mass production” of color sets . That’s the upshot of ri-hour meeting of defense mobilizer Charles E. Wilson, DPA-NPA administrator Manly Fleischmann, and a representative group of TV manufac- turers in Washington Oct. 25. To put whole striking development in simplest terms: CBS had asked for materials to build 250,000 color sets in 1952. Wilson said; "Can't spare the copper." So CBS decided it couldn't get anywhere using its small quota of black-&-white materials for color. And since no one else was making color sets, there was no sense in trying to make them or to continue colorcasting. Mr. Wilson freely admitted he was misinformed in his idea that color was tying up too many engineers, interfering with military projects — and so he readily dropped hasty proposal to curtail all color developmental work (Vol. 7:42). Industry was delighted, of course, and manufacturers emerged from meeting singing Wilson's praises, lauding his "statesmanship". Wilson himself was pleased as punch as he left session early — "to put out another fire somewhere," as he told group. And CBS president Frank Stanton told us; "I'll take Charley Wilson at his word anytime. I'm satisfied that the final decision was fairly arrived at." Most of CBS's competitors still think whole thing was maneuvered by CBS to get it off the hook — if not through direct approach, then by putting Wilson in position where he could do little else. "CBS asked for the moon," as one put it, "knowing it would never get materi- als for 250,000 sets, and used the denial as an excuse to quit." On the other hand, Stanton said: "People in the industry will tell you we couldn't sell 250,000 sets but, by God, I intended to try. I wanted the chance." Sen. Johnson is plenty suspicious, but won't say whom he suspects. "I don't think the action was warranted at all," he said. "It looks like a phoney to me. I don't know what's back of it, bUt it looks phoney." We asked if he plans to take any action. "No", he replied, "you can't do anything when they spring the national defense angle on you. You just have to click your heels and salute — so I'll just click my heels and salute like the rest." Role FCC Chairman Coy played in move is unknown. Wilson conferred with him, but Coy will say nothing about it. Rest of commissioners didn't have slightest inkling of what was in the wind. !f: ^ Amplifying reasons for color ban, Fleischmann stated at press conference; (1) Policy is to discourage production of radically new products which tend to con- sume more materials. (2) Mass production of a new product consumes engineers at far greater rate than does pre-production development of new products. Competition has manufacturers constantly improving and refining, Fleischmann said, giving obvious accolade to electronics folk. Net effect is that CBS color in the home is done for, for the duration at I the very least — probably permanently, in opinion of most of the industry. ^ ^ 5}: • Meeting was cordiality itself. Reporters should have been permitted, since I no one was under wraps and everyone spoke freely afterwards. Wilson started out by outlining defense aims, said electronics procurement ■was coming along nicely except for some reports of delays in aircraft gear. Then Wilson said action was his alone. "If there are any hidden motives in- 'volved in this, I want to hear about them." What startled him, he said, was request for "additional" materials for 250,000 sets -- "and motors" — with all that meant in critical materials, particularly copper. He just couldn't see this additional idrain of materials, hence his action of preceding Friday (Vol. 7:42). But Wilson's thought of stopping color development, to save engineering man- 4 power, was changed, he said, because "within the last 48 hours I've had entirely new information. " What he had learned, and what was reiterated by manufacturers during meeting, was that color was taking very small fraction of engineering talent and that military was benefitting directly and indirectly from color work. Industry men spoke up, one by one, told Wilson major engineering effort was on defense work — up to 80-90% in some cases — that color was taking only 5-7%. All pledged dropping plans, if any, for mass production of color sets ; all stood ready to provide more engineers for defense output as needed — and if the defense contracts warranted, not now apparent since many plants still have men and capacity to spare. All urged continuance of color development. Same general tone characterized statements of Philco's William Balderston. Dr. Allen B. DuMont, GE's Dr. W.R.G. Baker, Motorola's Paul Galvin. Emerson's Ben Abrams , RCA's David Sarnoff, Admiral's Richard Graver, Westinghouse ' s Tod Sloan. Crosley's Louis Clement. Hallicraf ters ' R.J. Sherwood. [For complete list of those from industry attending, see p. 7.] Some expected Dr. DuMont to tee off, since he had sent Wilson hot wire of protest last week. But Dr. DuMont simply made these points; (1) Oppo sed restrictions on experimentation on general principle. (2) Saw no mass production of color in prospect anyhow; CBS-Columbia plant (Air King) had never made more than 50,000 sets annually, so how could it possibly "leap into" production of 250,000? (3) Color experimentation is related to military work. Gen. Sarnoff wanted assurances field tests could continue, said RCA would not go into production of color sets "until standards are approved." He added, amid laughter, that RCA wouldn't use "phonograph motors" in its color sets. Mr. Abrams said he was 100% behind restriction, but suggested "limited pro- duction" of color sets "if CBS will promise to continue some color broadcasting." CBS president Frank Stanton said; "We entered this in greatest good faith, expecting to mass produce — but from what's been said here by all other members this morning I can see that I may have been going up a blind alley anyway. " Webster-Chicago ' s purchasing chief H.A. Gumz said action was severe blow to his company, which had spent heavily tooling up for color (making disc assemblies). Paramount president Barney Balaban was quite satisfied that his company can still make modest number of Lawrence tubes. He said it uses no "quartz and no plas- tics like other tubes," would give good black-&-white picture. After meeting, both he and subsidiary Chromatic TV Labs president Richard Hodgson declared they expect no interruption at all in their plans to make tubes at plant in Stamford, Conn., since they did not expect to make any "great numbers". They may even put color on Paramount Pictures' KTLA, Los Angeles, Balaban said, and place a few sets around town — "all in the spirit of Mr. Wilson's state- ment"— and have offered to buy CBS's color cameras, etc. but haven't yet had reply. The outfit that got lost in color shuffle. Color TV Inc., San Francisco, was represented by president Arthur Matthews, who told Wilson that CTI has no men on color now, and expressed hope small fellows like himself will be helped with govt, orders. People at meeting assumed CTI was counting itself completely out of color. s): ^ ;i: 4: Obviously, CBS's request for materials precipitated action. Many people wonder whether Wilson would have moved if other manufacturers, with sizeable black- &-white allotments, had decided to divert portion to color. Here's how Wilson put it, as we caught him leaving meeting; "Nobody's hurt. I couldn't give these materials to color when many small manufacturers are really desperate for materials. This action doesn't affect any- thing else — like uhf, theatre TV, etc. It's the first such thing I've vmcovered. "They told me color development doesn't affect their defense work — and that's all I want to know." Stanton explained development of color ban as follows, when reached after meeting: He had met with DPA-NPA administrator Manly Fleischmann Oct. 2 to discuss 5 CBS's request for more materials, then with Wilson Oct. 9, again Oct. 12. "Wilson told me I didn't have a Chinaman's chance of getting the copper." At 12:40 Oct. 19, after a cabinet meeting, Wilson told him final decision. "I then decided what to do, and issued the statement which was released at 3:00 p.m. "We asked for enough materials to make 250,000 sets in 1952," he continued. "We were going to come out with a S149 'slave'. I felt there just wasn't any sense to try to continue if we couldn't make a dent in the market. If there were new mar- kets, or no television at all, it would be all right to start gradually. But new markets are still a long way off. "What happens now? Who knows? Wilson indicated the situation will stand one or 2 years. A compatible system may come before the FCC again before then. I've always preferred a compatible system, if it worked, said so during the hearing. But I wanted to get going before incompatibility beat us to death. I'm completely in the dark about the compatible system's status. There are so many factors that it's impossible to guess what will happen. "We'll make color tubes, continue development. I've seen color pictures on our tube just as good as those on anybody's tube. We'll show it. We'll continue industrial work, theatre TV, etc." Though CBS's appeal for color materials is out, CBS-Columbia's president David Cogan is still looking for more black-&-white materials from appeal, hearing date of which was postponed from Oct. 23 to Oct. 30. Says Mr. Cogan: "Vi/e didn't even have enough m.aterials for black-&-white. They gave us an allocation good for only 1/3 of what we made last year. The reason our base period was low was because we were changing models at the time and our production was low. "A color set takes over twice the materials of a black-&-white set. We couldn't produce much of either. We had made about 500 color sets and were just finishing our pilot run, ready for regular production. "We want to continue experimentation. What would Wilson have us do with our engineers? Fire them? I wish Mr. Wilson would tell us where to get some military contracts. We're trying to get them. "We got pretty badly shellacked in this. We had many very costly commit- ments. We had lumber cut to size. We had components on the way. We have lucite discs — what can you do with lucite discs?" * 4: * So now industry goes back to the laboratories to perfect compatible system for submission to FCC. The more cautious members still don't count CBS completely out of picture. They conjecture, for example, that CBS might get back in the run- ning with a good tri-color tube. Others consider possibility far-fetched, believing incompatibility has long had the Goldmark system licked. Attitude at FCC is one of bewilderment. According to New York Times, Com- mission officials "conceded the possibility that Mr. Wilson's action. . .might nullify the long, bitter controversy." There's heightened FCC interest in compatible system, at any rate. People there are trying to learn more about it. They say no one points out that system RCA now uses is different from one it asked Commission to adopt last year. FCC folk say: "Notice how they don't call it 'dot-sequential' any more; it's 'color-subcarrier'." ] RCA insists it's same system, with minor changes which have been described. ^'Research v.p. Dr. Elmer Engstrom says it's still dot-sequential, still uses mixed- tlhighs ; he asserts first color sets demonstrated would operate on today's signals Iwith slight circuit changes to "recognize" the oscillating color sequence. Other NSTC members also say system is basically same. One estimates it's 185% RCA, 15% others — principally Hazeltine. And reason for different terminology, they say, is better understanding of system. Behind skepticism at the Commission is probably one or both of two reasons: Ul) Attempt to. show that RCA advocated adoption of a system which is already passe : i; 6 1 (2) Preparation to look at system with new eyes "because it's different". This could be with view to "face saving". j There'll be plenty of color activity in any event. Besides work on compat- ible system aimed at eventual request for adoption by FCC, there will be activity in industrial . theatre-TV, military color fields. And competition in tri-color tubes will get fiercer. Even this week, RCA showed off 5 types while CBS and Paramount reported progress. And you can be sure that such companies as Philco , DuMont , Sylvan i a and Rauland aren't asleep. Look for the inevitable patent litigation, too. From appearance of monumen- tal October issue of Proceedings of IRE, RCA claims patents on all sorts of tri- color tube approaches — including what looks like Lawrence tube. That issue of the Proceedings may prove landmark in color TV. It contains papers by best-informed color TV scientists in the country, prefaced by a truly dis- j tinguished piece of work by Electronics editor Donald Fink — a crystal clear compar- ! ison of field-sequential and compatible systems in language laymen can understand. i THE COLOR DENOUENENT-AN EDITORIAL: We've never made any bones, probably have been more outspoken than most, about our complete lack of faith — economic and technical i — in the color TV system adopted by the FCC. We felt it was doomed from the start, i if only because it was incompatible with millions of sets already in use. It carried within it the seeds of failure, regardless of Mr. Wilson's action. We were willing to accept, moreover, the judgment — now confirmed — of the industry's top scientists and electronic industrialists whose knowledge, experience and vision told them that a superior system was being developed — one that would get twice as much out of the limited radio spectrum, with none of the defects of ] the field-sequential system. Our readers know we've depended not merely on our own predilections but on the best intelligence in the industry — factory heads, engineers and laboratory ' scientists , distributors , retailers , telecasters — for the facts and synthesis of opinions presented in these columns during the long years of the color imbroglio. Many of CBS's own affiliates were among our best sources of news and opinion. f Aside from a few (very few) CBS and FCC sources, our outspoken reports have | met with singularly little adverse criticism. We have repeatedly offered our columns to CBS for statements, have bent over backwards to give its color publicity a fair break. And as for FCC, as our subscribers know, we have assiduously reported its proceedings, reasoning, etc., and of course issued any number of Special Reports & Supplements with full texts of orders, court judgments, speeches, etc. ' :}! 5}: :{: ‘ Now the denouement of a grand fiasco. The public's mind, and the trade's, may have been set at rest by Mr. Wilson's edict, so far as the confusion over color for the home is concerned. But stripped of all claims & counter-claims, the simple fact is that the public, like the industry, just wouldn't "buy" incompatible color merely because CBS had it "now" and FCC ordered it "in a hurry". "Excessive conservatism" is the charitable expression editor Donald Fink uses to characterize FCC's action, in his paper in current Proceedings of the IRE. Whether FCC can live down its incredible decision, or becomes just another liability of the harrassed Truman Administration, time will tell. But it's a fact that, from the start, its majority fiat offended the scientific and common sense of the whole electronics fraternity; and the recriminations at both top and staff levels made clear that it evokes fear rather than admiration with its enormous powers. If any proof were needed, the incredible and abortive "brackets standards" ' proposal is on the record — the precious scheme, you'll remember, virtually giving manufacturers (whom it does not regulate) an ultimatum to "make one overcoat that i, could fit my little daughter as well as myself" in a matter of weeks, in words of * Judge Rifkind's Court of Appeals argument. FCC demanded a physical impossibility — » or else ; or else it would adopt the CBS system forthwith, which it did. That was sheer ignorance of the scientific and industrial process. But beyond that, beyond even the compatibility issue, the decision came while Korea was j I 7 ablaze , and admittedly without any consultation with the defense authorities. It came in the face of much-publicized warnings from the military of just such demands on industry as Mr. Wilson finally pointed up. + * * ♦ The hell-in-a-hack quest for color, in our opinion, was the gravest mistake in the history of the broadcasting business, of electronics and of Federal radio regulation. When color does come, which is inevitable, it must come scientifically. economically and gradually. As for the prospect, we think Mr. Fink's appraisal of the long-and-short of the CBS and the RCA-NTSC systems makes sense: Mr. Fink sees CBS*s principal advantage in its present simpler receivers. For the compatible system, he cites one principal technical question remaining to be answered by field tests, which happily will go on — the effects of "severe condi- tions of multipath transmission." He concludes; "Whatever the future trends in cost, at present the color-subcarrier system is demonstrably more complicated than the field-sequential system. In return for this additional complication, higher quality of transmission is achieved. To this long-term advantage must be added the overwhelming short-term advantage of compati- bility. The eventual decision between the color systems, if made on rational grounds, will depend on the relative importance attached to the quality and cost factors. In a few months, sufficient data should be at hand to permit rational con- clusions to be reached by engineers, by FCC, and by the master of both, the public." PRESS PUZZLED over color ban, agreed at least on one fact: CBS color is down, if not out, and field is wide open for compatible system. Beyond that, specula- tion took all kinds of turns. Most serious question was raised by New York Times' Jack Gould and Wall Street Journal editorial. Said Gould: “But where Mr. Wilson’s ‘request’ to CBS transcends purely TV matters is in its apparent assumption that the Govt, shall determine the end product which private indus- try [can produce] for civilian use.” Said Wall Street Journal: “To decree what a manufacturer may or may not make with the materials allocated to him seems to us to be carrying govt, control of business pretty far.” Gould saw action as “a decided break” for compatible system. “If the suspension of color TV lasts a year or two, common sense will require an examination of all the latest improvements.” And he gives CBS this due: “With- out their energy, color TV undoubtedly would have been delayed many more years. Whatever the final outcome . . . they have made a genuine contribution.” Seeking reason for action. Wall Street Journal re- porter said some officials reasoned this way: Industry hasn’t squawked much about cutbacks, because sales were slack. But they thought consumers might grab at color sets. “The manufacturers’ business would perk up. The cutbacks would become more onerous.” Other comments: Time Magazine: “Since color sets use the same ma- terials as black-&-white sets, which are not affected by the order, Washington observers found it hard to follow Mobilize!’ Wilson’s reasoning. A later announcement seemed to make it clear that the order was aimed at men rather than metals . . . CBS President Frank Stanton, al- ready plagued by costs, technical problems and the public’s i. standoffish attitude toward color, seemed relieved to get ll off the hook.” |, Newsweek: “CBS was able to climb off the expen- I sive limb it had been sitting on while transmitting color- i casts that few people could see and making sets that few 1' people wanted.” Billboard: “Wilson’s deep-freeze call for Columbia I color sets production is figured to have shaken CBS’s last 1 chance to gain a foothold before RCA gets a chance to seek a favorable nod from the FCC ...” Variety: “CBS, whether intentionally or not, might have sounded the death knell for its own color TV system, via its decision last week to abandon all further color activity for the duration of the national emergency. That’s the consensus of trade reaction . . . Industryites point out that [CBS] is also shelving the chief advantage it held [over RCA and others] — that of gaining a toehold on the public . . . before other systems are ready.” Color Miscellany: CBS’s total investment in its color system said to run well over $5,000,000 . . . CBS may “convert” to black-&-white the major hour-long shows previously scheduled to start in color Nov. 11, 1:30-2:30. Top showmen on tap included Max Gordon, Leland Hay- ward, S. Hurok, Richard Kraukeur, Arthur Lesser, Her- man Levin, Otto Preminger, John Shubert — even Metro- politan Opera presentations . . , FCC granted RCA-NBC authority this week to experiment with color over Brdige- port uhf station, extended Philco’s authorization for color- casts over WPTZ . . . “The Bright Side of Color’s Ban“ headlines Billboard story telling how Hollywood is re- lieved to know its vaults of black-&-white film won’t de- teriorate in value quickly . . . Paramount joins color theatre-TV act by announcing that its delayed system, em- ploying either a special “lenticular” film or an old type of film employing subtractive dye process, will be demon- strated in a few months . . . Mexican broadcaster Guillermo Gonzales Camarena, ex-chief engineer for Emilio Azcar- raga, last week demonstrated color at U of Mexico. Attending color session Oct. 25 with defense mobilize!’ Charles E. Wilson and DPA-NPA administrator Manly Fleischmann were: Curtis B. Plummer & Edward Allen, FCC; Richard A. Graver, Admiral; Barney Balaban, Rich- ard Hodgson, Louis A. Movins & Paul Porter, Paramount Pictures; Arthur Matthews & C. J. Burnside, Color Tele- vision Inc.; Frank Stanton, CBS; Louis Clement, Crosley; Dr. Allen B. DuMont & W. A. Roberts, DuMont; Benjamin Abrams, Emerson; Fred Gluck, Fada; Dr. W. R. G. Baker & Robert M. Estes, GE; W. A. MacDonald, Hazel- tine; -John A. Rankin, Magnavox; W. L. Viergever, John Meek Industries; Paul Galvin, Motorola; William Balder- ston, Philco; David Sarnoff & Frank M. Folsom, RCA; J. Friedman, Trav-Ler; H. A. Gumz, Webster-Chicago; Rob- ert S. Alexander, Wells-Gardner; R. J. Sherwood & Ernest Kohler, Hallicrafters; F. M. Sloan, Westinghouse. i; 8 Telscasting NoIgs: Paramount Pictures, whose KTLA, Los Angeles, is leader in use of feature films on TV (but not Paramount’s) expanding its subsidiary Paramount Television Productions’ activities from merely syndicating kine-recordings to production, distribution & merchan- dising of films for TV ; Burt Balaban, son of president Barney Balaban, named program-production mgr., John Howell sales mgr., under Paul Raiboui’n . . . United World Films, wholly owned subsidiary of Universal Pictures, also going into TV picture production, will use Universal lot, but not contract players, for low'-cost films designed (a) to win its foothold in TV, (b) to help defray overhead, (c) to build new talent . . . United Press-Movietone News is name of new collaborative service started by those 2 or- ganizations, providing TV stations daily news films along with news bulletins on events covered; UP managing editor Phil Newsom is in charge . . . Milton Blink, of United Television Programs Inc., formed last year to syndicate TV films, tells Billboard firm grossed $750,000 first 9 months, will do 81,000,000 this year, sees film rental prices cojiiing down after freeze is lifted; firm was formed by Mr. Blink & Gerald King (Standard Radio), Edward Petry and Richard Dorso (see TV Factbook No. 13) .. . Congress’ own recording studio (Robert Coar) gets $100,- 000 appropriation to buy cameras and equipment, so members can film strips to send to home stations just as they now make recordings . . . Lutheran Church, Missouri Synod, which sponsors Lutheran Hour on MBS, under- writing 26 film dramas being shot by Family Films, Holly- wood, at reported $20,000 each, planning to place them on TV . . . G. Ralph Branton, who recently bought into Monogram Pictures, assumes charge of its TV film unit (Vol. 7 :42) . . . Reeves Soundcraft reports quick, inex- pensive method of putting magnetic sound tracks on 16mm or 35mm films; method also enables old sound tracks to be erased and new ones substituted . . . NLRB this week held against “arbitrary segment” of production employes of Baltimore’s WBAL-TV seeking to organize as IBEW- AFL union, calling unit “inappropriate” . . . Iowa dairy industry reported up in arms over 20-second spots for Jelke’s Good Luck Margarine carried on Iowa State Col- lege’s WOI-TV . . . Toscanini and NBC Symvhony Orches- tra will be simulcast, first concert of season, on NBC-TV, Sat., Nov. 3, 6:30 . . . WOI-TV, Ames (Des Moines), raised base hour rate Oct. 1 from $300 to $400, one-min. from $50 to $80 . . . Milwaukee Journal (WTMJ & WTMJ-TV) has sold its AM local WSAU, Wausau, Wis., for $160,000 to John R. Tomak & Charles Lemke, of Wausau. Personal Notes: s. Whitney Landon, since 1937 gen. atty., AT&T Long Lines Dept., promoted to asst. v.p. & asst, secy., AT&T, succeeded by Ernest D. North . . . Frank Stanton, CBS president, to be guest of honor Nov. 1, along with Sen. Ives (R-N. Y.), at dinner by joint defense appeal of American Jewish Committee and B’nai B’l'ith Anti- Defamation League for CBS’s “distinguished public service effort” . . . Wm. McCluskey, sales mgr. of WLWT, Cincin- nati, promoted to administrative asst, to John T. Murphy, v.p. in charge of Crosley TV operations; George P. Moore Jr., ex-Ziv, succeeds him . . . Joe Herold, ex-chief engi- neer, WOW & WOW-TV, Omaha, who installed Union Radio’s TV station in Havana, now installing station for Televisao Paulista, Sao Paulo, Brazil . . . Kevin B. Sweeney, ex-Don Lee sales mgr., joins BAB as national promotion director . . . George T. Laboda, adv. research chief, pro- moted to asst, to Leslie Harris, recently named TV-radio director, Colgate-Palmolive-Peet . . . Ted Weber named sales mgr., WGN-TV, Chicago, succeeding George Harvey, resigned to become mgr. of WFLA, Tampa . . . Robert Simpson, ex-Geyer, Newell & Ganger, joins Erwin, Wasey & Co. as director of TV production . . . Tom Maguire, ex- CBS, joins Maxon Inc. Nov. 15 as business mgr., TV-radio dept. . . . Gerald W. Tasker, handling Cunningham & Walsh’s Videotown studies (Vol. 7:35), named v.p. of that agency . . . Joe Donohue new head of Famous Artists, TV- radio packaging firm, succeeding Tom Greenhow, now with Ziv . . . Bob Evans promoted from sports editor and production mgr. to program director of WSPD & WSPD- TV, Toledo, under new mgr. Allen Haid . . . Don Buck named mgr. of ABC-TV station clearance, Stewart Bar- thelmess named for radio, in separation of TV-radio depts. under Alfred R. Beckman, sales-traffic operations director . . . Robert M. Purcell, program director, promoted to oper- ations dii-ector, KTTV, Los Angeles, with Dude Martin heading program dept., Robert W. Breckner asst., Alberta Hackett mgr. of program operations . . . Robert S. Salk, ex-CBS, and Bernard H. Pelzer Jr., ex-NBC, join Katz Agency, station reps. . . . Fred M. Thrower, ABC-TV sales v.p., resigned Oct. 26. Station Accoimts: Real estate sponsors are “naturals” for TV — evidenced by growing use. New York agencies named this week for such TV campaigns: C. J. Herrick Co., for Wave Crest Gardens, apartment development in Far Rockaway; Marfree Adv. Corp., for Plantation Estates, Florida development . . . Hutzler Brothers, big Baltimore dept, store, limits itself to sponsor identification only in buying Paul’s Puppets, Tue. & Thu. 6-6:15 p.m., now in third year on WBAL-TV . . . Montgomery Coffee Co. (Montco Coffee) sponsoring news strip 7:30-7:35 a.m. each weekday on WPTZ, Philadelphia, thru Aitkin-Kynett Co., Philadelphia; it’s second such early-morning sponsorship, Tom Thumb Donut Co. buying 8-8:05 a.m. news (Vol. 7:41) .. . “Do you remember” motif runs through Live It Again, including film clips of bygone days, sponsored by Red Top Brewing Co. for half hour weekly on hookup of Crosley’s WLWT, WLWD, WLWC, thru Cecil & Presbrey . . . Best Foods (H.O. Quick Oats & Farina, Presto self- rising cake flour) sponsoring Sun. 4-6 p.m. feature films on WABD, New York, thru Benton & Bowles . . . DuPont using 624 TV spots on 35 stations in big drive behind Zerone & Zerex anti-freezes, thru BBDO . . . Zippo Mfg. Co. (lighters) includes TV in new pre-Xmas campaign, thru Geyer, Newell & Ganger, N. Y. . . . Among other ad- vertisers reported using or preparing to use TV: Narra- gansett Brewing Co., thru Cunningham & Walsh, N. Y. (formerly handled by Standish Inc.); Remington Rand (“60” electric shaver), thru Leeford Agency, N. Y. (WOR- TV); Coro Inc. (costume jewelry), thru Charles Jay & Co., N. Y. (WABD) ; Consolidated Cosmetics Inc. (Lanolin Plus cleansing lotion), thru Van Hecker, Chicago (WTMJ- TV); Viz-Zan-De Cosmetics (lipstick), thru Mervin & Jesse Levine, N. Y. (WOR-TV). Network Accounts: Pearson Chemical Co.’s purchase of 204-station CBS radio network for My Friend Irma to advertise Ennds tablets means that firm’s $2,000,000 for TV-radio is heaviest of all drug budgets, says Sponsor; Ennds has dropped all other media, sponsors Hollywood Opening Night on CBS-TV, Gabriel Heatter on 321 MBS stations, plus TV-radio spots, thru Harry B. Cohen Adv. . . . RCA Victor (TV, radio, records) has bought Fri. 8-8:30 p.m. on NBC-TV for unannounced show to begin next month, temporarily is filling in with public service fea- tures, first having been Lifeline, documentary film on need for blood donors . . . Johns-Manville Corp. (building mate- rials) starts sponsorship Nov. 4 of Fair Meadows, U.S.A., family drama serial, on NBC-TV, Sun. 3-3:30, thru J. Walter Thompson . . . Aluminum Co. of America (Alcoa products) sponsorship of See It Notv (Vol. 7:38) starts Nov. 18 on CBS-TV, Sun. 5:30-6 . . . Procter & Gamble (Tide, Camay, Drene) starting Nov. 26 will sponsor Those Two on NBC-TV, Mon.-Wed.-Fri. 7:30-7:45. MILLION TVs IN FIRST-QUARTER 1952? Production of TV receivers in first-quarter 1952 will depend on these 4 basic factors; (1) Allocations of controlled materials to TV-radio manufacturers. (2) Conservation. (3) Manufacturers' "mix" of TV, radio and combinations. (4) Availability of tubes and other components. On basis of material allocation plans for first quarter — and given optimum conditions with respect to other 3 factors — production experts see a strong possi- bility industry can turn out 1,000,000 TVs in first 3 months of 1952, or just about what many hope they'll make during current quarter. There's confidence in industry and govt, production agencies that if demand continues brisk, nation's TV manufacturers may actually be able to produce more sets next quarter than this — with considerably less materials. TV-radio-appliance producers will have to work with about half the steel they chewed up during average quarter of first-half 1950 base period — and somewhat more than one-third the aluminum and copper. TV-radio 's base period for metal allo- cations saw production at quarterly rate of 1,560,000 TVs, 2,120,000 radios. If manufacturers maintained same mix as during base period, and continued to turn out "1950 model" TV-radios — without material conservation — they'd get about enough steel during first-quarter 1952 to put into 780,000 TVs, 1,000,000 radios, enough copper and aluminum for 545,000 TVs, 740,000 radios. Conservation will be No. 1 production-booster in first quarter. Materials- saving measures, developed and engineered by industry over past year, are now begin- ning to find their way into production runs. Conservation is still a luxury, but by January it will be a necessity — when all-out incorporation of new methods and sub- stitutes becomes matter of industrial life or death. Million-set production depends on another factor — consumer demand and its implications in manufacturers' assortment of sets and models. If TV market is good, it's likely radio production will dip and TV will be emphasized. There may also be continuance of present lower output of TV combinations in favor of TV-only models — which sell faster and use less critical materials. Tubes and other components, such as transformers and coils, may be bottle- neck in -first quarter — but there's no sure way of telling now. Tube makers say output of civilian tubes is still high, but lower than last summer. And there's some evidence of more demand now than plants can supply — but much of this may be due to scare buying by set manufacturers. Tube manufacturers still face an uncertain future. They say there's enough nickel in pipelines to last 6 weeks to 3-4 months. What happens after that depends on Govt. At govt, levels we learn nickel situation is just as scary as it ever was. TRADE GOING GOOD, HAPPY ABOUT COLOR: ^ retailer will tell you he's as delighted as the manufacturers and distributors that the "color chimera" no longer hovers over his business — and at the instance of the defense authorities, at that. Comeback market of recent weeks hasn't been disturbed much by color, for public seems to have wised up to basic factor of compatibility. Moreover, customers weren't beating down doors to buy S700 installations of 10-in. magnified receivers incapable of getting black-&-white and capable of picking up only occasional color shows from the handful of stations carrying them (Vol. 7:41). Fact is, the few dealers carrying "traffic-builder" models are now shipping them back — assured by CBS-Columbia Inc., anxious to maintain retail outlets for 10 - \ I its black-&-white receivers, that they will be rebated. CBS-Columbia says it made only 500 color sts. Ji' Dealers-distributors feel that out of Washington this week came good, in that they now have clear-cut story to tell their customers: That mass production of color apparatus for public is out for duration, that experiments can go on, that compatible color is well on way out of laboratory but several years away from home — so look what you're missing meanwhile if you don't buy black-&-white now. Even CBS is now expected to join that refrain. That color some day will offer great new merchandising appeal, goes without saying. But with audience now of 14,000,000 sets (see p. 13), with market still far from saturation, it's also manifest ultimate color will have to be compatible. * ^ Another "nice" output week was reported by RTMA for 5 days ending Oct. 19. TVs totaled 98,620 (2426 private brand), little change from preceding week's 99,877 (Vol. 7:42). Factory inventory went down some 26,000 to 565,551, continuing steady reduction of last 12 weeks. Week's radios totaled 228,160 (99,908 private), up from 205,014 week before and inventory was 366,866. Radios were 124,972 home, 28,097 portable, 75,091 auto. RTMA's revised figures for first 9 months are 5,970,857 TVs and 10,077,478 radios. Three weeks thus far reported this first month of new quarter show 87,919 TVs first week, 99,877 second, 98,620 third — but tightening materials still cast doubt whether final 10 weeks can bring total for year to predicted 5,000,000. Topics & Trends of TV Trade: Tailored ceiling price regulation for TV-radio industry — setting ceilings for manufacturers, wholesalers and retailers in one package — appeared virtually certain this week as 6-man industry subcommittee (Vol. 7:42) met with OPS officials. Proba- bility is that new order — not expected before January — will fix ceilings at highest prices at which each manufac- turer’s sets were sold during a “recent base period,” with “automatic adjustment factor” to remedy inequities in hardship cases. Industry group members generally approved this pro- posal, but some felt dollars-&-cents ceilings wouldn’t fit TV-radio industry, and suggested formula method be used by wholesalers and retailers to compute ceilings. OPS officials made it clear they feel TV warranties should be included in regulation, but assured industry they don’t want to impose uniform warranty policies. OPS position is that wherever warranty is sold separately — not included in price of set — it must be treated as separate commodity with its own price ceiling. Meeting was conducted by Lee McCanne, chief of OPS home furnishings branch, and Earl R. Smith, chief of electronics & musical instruments section of that branch. Subcommittee members: Arnold Nelson, Admiral; A. Vogel, Emerson; John R. Grayson, Magnavox; Ernst E. Bareuther, Philco; George Bryant, RCA; Arthur L. Chap- man, Sylvania. * 4: * 4c Price increases may not be very far off, judging from action of Sylvania this week in raising prices $10 to $20 on recently announced new line (Vol. 7:29) — only few months after it had cut prices on same sets (Vol. 7:35). Rising costs of labor and materials were given as reason. Straws in wind also are zeal with which everybody’s showing off uhf tuners, some anticipating FCC will “un- freeze” these channels ahead of others, opening brand new territory. Motorola uhf converter was shown to eastern distributors at New Haven’s Taft Hotel Oct. 20-21, with Hartford distributor Post & Lester acting as host. Bridge- port uhf signals were compared, quite favorably, with vhf from New Haven and New York. Trade Miscellany: RTMA hiring Wm. F. E. Long, ex- director of statistics. National Paint, Varnish & Lacquer Assn., to be new director of statistics with offices at Wash- ington headquarters starting Nov. 5 — taking over all sta- tistical work now handled by Haskins & Sells, Philadel- phia, as of next Jan. 1 . . . No summer slump in exports of radio apparatus: August shipments were valued at $22,- 036,653 as against $8,113,015 in August 1950; practically all categories were up, notably condensers, resistors, re- ceiving tubes . . . Crosley Radio & Television Ltd. formed in Canada for TV-radio manufacture, with Avco’s ac- quisition this week of Brand & Millen Ltd., including plant and personnel at Long Beach, Ont. . . . Tele-tone’s new contract with UEW calls for 10(S general wage increase for about 500 workers, plus other benefits. 4: « % « All sorts of rumor and conjecture grew out of sudden shelving of CBS color, not least interesting of which re- sulted from apparently well-grounded reports CBS was casting about to buy additional plant to get more materials quotas for its CBS-Columbia Inc. Story was that CBS v/as contemplating sale of its profitable subsidiary Colum- bia Records to finance purchase of Hazeltine. CBS presi- dent Frank Stanton and Hazeltine president Jack Binns promptly denied report, latter stating only way CBS could get control would be to buy up company’s widely held stock. Latest Hazeltine report shows only one class of stock, of which 600,000 shares are authorized, 350,000 is- sued and outstanding, all directors owning total of about 15,000. Stock is traded on N. Y. Curb Exchange, has enjoyed exceptional rises during last year. Capehart’s new line, featuring unique 20-in. corner cabinet called Cortland, at $650, includes 7 new, 19 hold- overs. Other new sets: Clermont, 17-in. table, $250; Jamestown, 17-in. mahogany console, $280; Amherst, 20-in. table, $300; Shenandoah, 20-in. console, $390; Cordovan, 20-in. fruitwood console, doors, $470; Bennington, same in maple, $470. Most of holdovers are 17-in. ranging from mahogany table at $300 to AM-FM-3-speed combination at $750; also included in holdovers are 16-in. blonde table at $320, 20-in. mahogany table at $360, 19-in. combination console at $1000. 11 Merchandising Notes: Stroniberg-Carlson out with 3 new 20-in. consoles: Cavalier, open face, mahogany, $420; Futura, with doors, mahogany $460, oak $480; French Provincial, with doors, cherry wood, $495 . . . Big Philco promotion for TV-radio during “Philco TV Week” start- ing Nov. 4 will include mailing of 8,000,000 circulars by Reuben H. Donnelly Corp., backed by newspaper and net- work TV advertising . . . Philco also pushing “check-up” promotion campaign for servicemen, offering cards, let- ters, mailing pieces, ad mats; plan follows pattern of “motor tune up” idea offered by gas stations — like check- ing, adjusting and lubricating jobs at single price . . . DuMont offers trade-in allowance on old TV tuner, towards new Inputuner, promoting addition of FM to TV sets. “Several thousand” are being offered for “limited period only” . . . Brightman Distributing Co. (Harry P. Bright- man, ex-Mid-Atlantic, Washington, D. C., pres.) replaces Stanley Distributing Co. as Admiral distributors in St. Louis area. ^ National Electronics Mfg. Co., 314 W. 58th St., Los Angeles, established about 3 months ago to take over plant and assets of firm formerly making Natalie Kalmus TV receivers, is now offering 2 lines of TVs — one under “Natalie Kalmus” brand name with modern designing for sale in higher price brackets, other under “Cinema” brand being table models and open consoles at $200 to $300. Firm is headed by Herman Krissman, with Myron Blackman as sales mgr. More than 30 research reports presenting possibilities for new products, processes and manufacturing techniques for electronic and electrical industries are listed in Oc- tober Bibliography of Technical Reports, available for 50