Trouble in Paradise

Radio manufacturing has recently looked like the first U.S. consumer industry to take the guns-v.-butter dilemma in its stride. Although it faced a 75% cut in its normal business and already felt the metals shortage, Bond P. Geddes, executive vice president of the Radio Manufacturers Association, last fortnight said the industry had "no squawks." But last week he was squawking as hard as the rest.

As long ago as last April, OPM had told radio manufacturers, with no trimmings, to count on little or no magnesium, aluminum, other scarce materials. Their own leaders said the same, warned them to "get out and dig" for defense business to survive (TIME, June 23). The radiomakers paid good heed. Already they are about 25% engaged in defense work (ammunition and machine-gun parts, wartime radio devices, including the "walky-talky," a two-way battery set for field use).

By mid-1942 Mr. Geddes expects his industry to be 75% occupied with defense. In the meantime, its good-soldierliness had caused OPM and OPACS to give it enough materials to keep going while the changeover takes place. The manufacturers were reconciled to making only 2,500,000 sets for the civilian market next year (v. 11,600,000 in 1940). They began "upgrading" sets in quality and price, to cut down demand, increase longevity (and unit profits).

Last week a bomb dropped on this comparative industrial paradise. OPM still remained, precariously, in the "no squawks" category, but OPACS was now, according to one radio bigwig, "a bunch of goddam, nitwitted, half-baked college graduates." Reason: a new civilian allocation order for plastics raw materials (induced by an OPM priorities order on formaldehyde, other chemicals, and their synthetic resins). The order eliminated their use for radio cabinets, 40% of which are now made of plastics.

If the order sticks, radio manufacturers face a painful, costly switch to wood cabinets to house even 2,500,000 sets. It would also mean a 20% jump in radio prices, additional layoffs and losses, and a possibly ruinous scramble for lumber. It would mean still more trouble for radio dealers, already understocked, and for the small manufacturers (30-40% of the industry) who cannot switch over to defense business so readily.

This week radiomakers were still swearing gently, still pinning their hopes on a change of OPACS' heart.

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