Gold in the Air

If John Augustus Sutter were alive today, he would fold his mill and buy into the Columbia Broadcasting System. CBS announced last week a proposed 2-for-l split of its common stock. It also raised its quarterly cash dividend from 35-c- to 45-c- a share.

The reason for all this preholiday cheer was a set of figures that could conservatively be described as phenomenal. The company's net income for July, August and September was 97% higher --let's have that one again--97% higher--than it was for the same period last year. It took in about $4,500,000 in the summer of 1962 and more than $9,000,000 this year. And for 1963 as a whole, CBS has already earned more than $28 million on sales of $395 million. At this time last year, it was just riching alone with $19 million.

People who bought CBS stock as recently as last January already have doubled their money. Board Chairman William S. Paley lightened his CBS holdings by 75,000 shares last February realizing $3,675,000 cash. If he were to have sold the same shares last week, he would have collected well over $6,000,000. But he isn't suffering. He still hold's 855,000 shares (soon to be 1,710,000) worth almost $70 million.

Columbia Broadcasting System is not just a television company. Columbia Records adds a lot of mince to the pie, and CBS Radio is no dust bowl CBS executives say that fresh interest in radio is a factor in the new radiant finanical picture. Also they have sharply trimmed their operating costs, jacking up profits all around.

But CBS Television and those Petticoated Hillbillies, Lucys and Andy Griffiths are the fundamental money spin ners. The second national Nielsen report came out last week, demonstrating that CBS was still the national champ--for the 56th week in a row

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