RADIO IN AMERICA

Evening Post, Volume CIX, Issue 73, 27 March 1930, Page 21

RADIO IN AMERICA

EFFECT OF THE SLUMP

It may be interesting to British readers to learn how the recent financial crash iv Wall Street circles has affected the American radio industry (writes an American correspondent of the "Wireless World" (London). One thing is clearly evident, namely, that, although radio has been thought to havo passed from the luxury to the necessity class, it was, with automobiles, almost the first trade to be affected by the- financial troubles.

Just before the trouble came the bulk of the radio business was in the hands of the following makers: Radio Corporation of America, Zenith Radio of Chicago, Sparton, Atwater-Kent, Grigsby-Grunow, makers of the Majestic set, and with the reputed biggest output in the States, amounting to over 6QOO sets per day, Stromberg-Oarlson, and1 Crosley. The effect of the crash was. electrical. Several companies immediately reduced their prices, notably Grigsby-Grunow, Atwater-Kent, and R.CiA. Whether this panic legislation was^ due to the crash is known to themselves only, but rumour has it that thei!price reduction did none of them any; good, but on the contrary hardly enhanced their reputation. Others, notably Stromberg Carlson, actually increased prices, while Zenith immediately announced by nation-wide advertising fiat they were not going to reduce prices as their goods were worth evory cent that was asked for them. The fact remains that several of the abovementioned manufacturers with an output running'into literally thousands of seta, per day had to close down entirely, and that in the very busiest part of the radio season. Others, however, have carried; on at a reduced scale.

One well-known company, Earl Kadio, which, incorporates Fried-Eise-mann and Freshman, is now in the hands of a receiver, but it is said that it Will probably be reconstructed on a fresh basis.

A'signifieant fact is the entry of that gigantic automobile trust, General Motors, into radio by the launching of a radio subsidiary company in conjunction- with E.C.A. Dayfan Radio has also,,been bought up, • aiid others are said;.'to be include tin the merger. The result will be the provision' of radio sets. in. automobiles in the General Motors range at an early date. . ;

Everything here points to the fact that the radio industry will'be. in the hands of a smaller.number of firms before long, just as the motor industry is mainly in- the hands ;df General Motors, Ford, Chrysler,. Packard, and one- or two more.

Another interesting rumour is to the •effect that a set has been evolved without :;the us© of valves, and that it has been, thought to be so dangerous to the valve groups here that the inventor has been persuaded to take a large sum of money and his invention put on the shelf. This rumour is, however, not taken very seriously here.

Considerable interest is still being shown in television in theory, but no manufacturer yet has dared to put out a televisor set. Inquiries among many of them elicit the fact that they still consider television to be an interesting scientific toy, but not having yet reached the practical stage. At the same time, a noted maker of radio parts and accessories—Carter Badio Co.—is said to propose marketing television, parts this season and to have predicted that television will be commercially practicable; withina year. It is not believed that this statement is based on the use of any of the present television systems.-.. The same company is preparing to market a home talkie.

Bumours. of mergers are in the air continually^ it being recognised' that in the States the day of the small manufacturer has gone, and only combination can meet the pressure of the competition of the big groups. Home construction, having almost ceased for some years, appears to have suddenly revived, but it may only be a spasmodic attempt and not a serious revival.