Squaring the Circle

As U.S. television-makers showed off their new 1950 models last week, Chicago's Hallicrafters Co., which is small in size but big in know-how, stole a march on the industry. It showed the first set with a rectangular picture tube. Since the TV broadcast image is also rectangular, the new tube has two advantages over the old round tube. It permits the whole tube-face to be utilized, and it saves about one-half in cabinet space. Boasted Hallicrafters' President William J. Halligan: "This will be the only revolutionary thing in television this year."

Halligan had no monopoly on the revolution. The tube, developed by American Structural Products Co. (a subsidiary of Owens-Illinois Glass Co.), and now being manufactured by several other companies, was on sale to all comers. Other makers would soon be using it, and Motorola was ready to show its first rectangular tube set this week. Hallicrafters had simply moved faster than anybody else in getting the new picture tube development across to the public. Grinned President Bill Halligan: "That's because we're smaller than the big boys. We're faster on our feet."

Ham-Handed. Boston-born Bill Halligan, now 50, was so fast on his feet that when depression ruined his business as a radio-parts salesman in Chicago, he tried his hand at manufacturing high-quality, precision-tuned radio receivers--with no capital except credit from a few business friends. A radio "ham" himself, Halligan rightly reasoned that other hams would buy such sets.

By World War II, his small, thriving Hallicrafters (named half for himself and half for craftsmanship) was grossing nearly $2,000,000 a year, and was primed to turn out fine high-frequency equipment for the Government. In all, Hallicrafters did $150 million of war contract work. After the war, Halligan began making commercial sets. By 1947 he had both the training and the cash to switch to television.

Cut-Rate Battle. Last year, when production rose to 87,000 sets, Hallicrafters grossed $15.5 million. To meet the expected demand for his new rectangular-tube set, Halligan last week leased extra factory space, planned to boost his 1950 production 95% to 170,000 sets, and to cut prices. His rectangular 16-in.-screen mahogany table model was tagged at $279.95, or $40 cheaper than last year's round-tube model.

The whole television industry, getting the savings from ever-increasing mass production, was right with him. RCA last week priced its 1950 10-in. table model at $169.95, the cheapest price for any brand-name set of that size. Philco, Admiral, Westinghouse, Tele-tone and others had trimmed prices as much as $70 on small sets, up to $175 on big console combinations. In the high-pitched television battle for 1950's market, the consumer was bound to win.

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