U.S. RADIO BUSINESS

Auckland Star, Volume LXV, Issue 46, 23 February 1934, Page 3

U.S. RADIO BUSINESS

MANUFACTURERS' FAILURE. N.R.A. FORCING PRICES UP. The fact that the large radio manufacturing concerns in the United States had found it impossible to carry 011 their businesses, and that three of them at least were in the hands of receivers, was mentioned by Mr. E. R. Boucher, principal of Radio Ltd., Auckland, 011 his return this morning. Mr. Boucher said that these firms were burdened with colossal overhead charges, the result of investing in extensive plant and buildings. When established they budgetted to dispose of between 7000 and 10.000 machines daily. To-day that was quite impossible. The result was that they were forced to shut down and some plants were being sold piece-meal and others as going concerns. The outcome, said Mr. Boucher, was that small manufacturers had started. They purchased the material from concerns which specialised in parts and assembled the radio sets. The radio business was certainly 111 a sad state. Under the N.R.A. code, with higher wages and limitation of working hours, even of clerks, to 40 hours a week, prices had definitely been forced up. No manufacturing at a loss was permitted, and there was no price-cutting. It was obvious, he added, that American radio sets in the future were going to cost more in this country.