Evening star., 1938-04-05
R. c. A. OPERATIONS
STILL AT PROFIT
Quarters Net Is Expected
to More Than Cover.
Preferred Dividend.
By the Associated Press.

BY the Associated Press.
NEW YORK, April 5.-David Sar-
non, president of the Radio Corpora
ton Of America, told stockholders in
their annual meeting today the cor
poration was still operating at profit
in all its divisions.
During February, Sarnoff disclosed,
r. c. A. sold its holdings in the Cana
dian Marconi Co. for $1,725, 900 cash,
realizing a profit, including a reserve
item of $150,0O0, of $4,000, which
will be credited to 1888 earned sur
plus. The sale was in line with new
policy Of withdrawing from heavy for
eign commitments.
The recession has cut into radios
profits, he said.
Nevertheless" he added, 'it is
estimated that our net profits for this
quarter will be more than adequate to
cover preferred dividend requirements.
leaving a small balance applicable to
the common stock"
Sales Reviewed.
Reviewing the sale of radios inter-
ests in the Victor Talking Machine
Co. of Japan and the Canadian Mar
conf Co., Sarnoff said it was "in ac-
cordance with the company's policy of
concentrating investments within the
United States"
Approximately SO per cent of radios
assets, he said. now represent invest
ments in the United States, with in
vestments abroad restricted chiefly to
South and Central America.
This does not mean, however, that
we are withdrawing from the foreign
field" he continued. I'VE have patent
licenses and engineering service agree
ments with leading companies in the
principal foreign countries"
Speaking of the company's present
financial condition, he said that since
the first of the year the company had
saved at the rate of $4,000 a year
interest charges by paying off s24OO,-
900 of notes to banks, leaving a bal
ance of s8,0OO,OOO.
Huge Tax Bill Paid.
The total of all taxes paid for the
year 1887 equaled AZ cents share, he
said, almost exactly the figure earned
per share of common stock. The Gov
ernment received more than twice the
amount in taxes the stockholders re-
ceived in dividends for the year"
Broadcasting stations he went on,
plan to experiment shortly with ex-
perimental transmission by facsimile
OF news bulletins and pictorial mate
rial to a limited number of receivers
in local areas.
Progress toward the solution Of COM
plicated technical and economic prob
lens of television continues to be
made, he declared
Inquiry Welcomed.
Sarnoff said the corporation well
comes the investigation announced re-
Gently by the Federal Communication
Commission into activities of radio
broadcasting companies.
I'VE have nothing to conceal and
shall be glad to cooperate" the stocky
leader OF the Radio Corp. told share
holders at the annual meeting.
Sarnoff revealed the profitmaking
power of the National Broadcastine
Co., wholly owned subsidiary, for the
first time.
Last year, he said, N. B. C. earned
approximately s3,7Oo,0OO after all
charges and expenses and contributed
approximately s41,0OO,OOO in gross in
come.
Total gross income, including the
return from manufacturing in 1887.
was sl12,639,497 according to the COR
poratlon's annual report, while net in
come for the parent was sl5.42l,776
and net profit after charges, s9,o24s5s.