MEDFORD MAIL TRIBUNE, MEDFORD. ORE
Profit Pressure
In Electronics
Shakes Weaklings
New York - IUPD - The elec
tronics industry proved no ex
ception to the general course
of the economy in 1960. Re
ults of most companies in the
field fell short of the optimis
tic goals projected at the be
ginning of the year.
Although sales ran to a
record $11 billion in 1960, and
this figure i9 expected to be
topped by 5 or 6 per cent in
1961, there is indication of
another round of downward
pressure on prices and profits
resulting in a further shake
out of the weak sisters in the
field.
The usual etlects of rapid
growth are at the bottom of
the earnings collapse of many
companies whose sales either
climbed or remained at the
same general level, according
to industry spokesmen.
When a company expects a
sharp growth rate based on
past performances, it expands
its facilities and inventories
in line with the assumed high
er volume. When the big gain
in business fails to material
ize, profit margins fall be
cause of the higher break-even
point.
This, then, is the present
plight of the electronics in
dustry. In this sense, elec
tronics has been considered
by some observers to be as
cyclical as the more mature
industries, except for its rising
volume base. ,
Great Hops
The great hope of the indus
try, spokesmen say, lies in in
dustrial electronics, particu
larly data processing, which
is the most important and
fastest growing part of the
industrial market. Interna
tional Business Machines
Corp., which has a firm grip
on around 75 per cent of this
outlet, should give plenty of
trouble to those desiring ex
pansion in the field.
Process instrumentation and
numerical controls for ma
chine tools a.re another likely
avenue for profits, but here
again competition is stiffen
ing and to compete, many
companies will have to merge
in order to survive.
The military sector of the
industry - government con
tracts was somewhat in the
doldrums during 1960 despite
a high rate of government
spending. The fall-off in or
ders still is felt to be a mys
tery by industry officials, but
a partial explanation may
have been a squeeze on the
new programs by the exten
sive cost over-runs on some
of the older projects.
Exptct Boost
Orders are expected to pick
up, however, on a new boost
in government spending by
the Kennedy administration.
The replacement parts and
consumer, or entertainment
segments of the industry
should continue growing in
1961, but not sensationally.
Together, they are expected
to account for more than $3
billion in sales.
C o nsumer electronics is
dominated by television and
the industry is unlikely to
capture a much higher share
of the consumer dollar than
it already has, according to
official opinion. '
Replacement part sales de
pend directly on the amount
of electronic equipment al
ready in use. The latter is
steadily increasing, but the
industry doesn't feel that re
placement sales are ready to
soar just yet.
Generally, man ufacturers
will be concerned with find
ing the right product mix and
marketing formulas for their
particular companies. Few
manufacturers are willing to
take the chance on a narrow
specialization that might cut
them off from significant seg
ments of the industrial or
military markets.
Anti-Cancer Agent
Slows Penicillin
Galveston, Texas, (Science
Service)-Nitrogen mustard, an
anti-cancer agent, decreases
the antibiotic activity of pen
icillin. This finding may be a
clue to why cancer patients
receiving antibiotics may sud
denly become more suscept
ible to infection.
The test-tube experiments,
conducted here by Drs. Steph
en E. Ritzmann and William
C. Levin at the University of
Texas medical branch, also
showed that nitrogen mustard
did not alter the antibiotic
activity of erythromycin or
of chlortetracycline (auremoy
cin). The reason for the differ
ence is not known, but one
theory, suggested by the re
searchers in Texas Reports on
Biology and Medicine is that
nitrogen mustard may inter
fere with the carboxyl group
of penicillin, a group not
present in the other two anti
biotics. ISLAND DOMAIN
Hawaii has nine inhabited
and several uninhabited islands.
THURSDAY, DECEMBER 29, 1960 g J
. Thrifty Green Stamps t
1 . -yl '",''r"Teg-y W at Our Medford Store SJfr1 T:'TjaiIMMHiS
Tastewell ' j Eg33 FT1 I P7V BO
- 6LB,$1 fANG BISCUITS r-i 5C
MARGARINE
BISKIT MIX
PEPSI-COLA
RIPE OLiV
HILLTOP
PITTED
No. 1 Tall Tins
$1100
FOR U
22-lb. Pkg.
Orange Drink
Jumbo 21-oz. Jar
ACHES
ALL GOLD
SLICED
No.. 2'j Tins
$'
FOR
ICOTS
CORNED
BEEF
REGAL PAK
No. 1 Tins
MASH
$1100
FOR
STRAWBERRY
$1109
PRESERVES
"PRIDE"
3Vi-lb. Jar..
DEL MONTE
CLING
No. 2Va Tins
PEACHES
L-L? FOR U
$1100
72x90
RAYON-NYLON
BLANKETS
m
SLIPPER SOX
77
Men's - Women's
Children's
COFFEE MUGS
5 $1
New Style
Ceramic ..
WASH CLOTHS
4 I 1
Decorative
Style
CRYSTAL
DISHES
Prescut
98
ALUMINUM
PANS
With Plastic
Covers
Swift Premium
2-lb. Pkg
run
in
MORRELL PRIDE
Whole or Full
Shank Half
Full Butt Half 59c lb.
TURKEY
Toms, 18-24 lbs.
GRADE A
Hens, 8-14 lbs. ..
39
45'
MEDFORD'S BEST
GROUNI
BEEF
Pure
Ground Fresh
Daily
SAUSAGE
Country
Style
Seasoned
Just
Right
USDA
Good & Choice
HALF 49 lb.
FRONT
lb. 14
Si Eastern
Oregon
HIND AO
go
lb.
CUT, WRAPPED AND QUICK FROZEN - FREE OF COURSE
COFFEE
M.J.B., Drip or Regular Grind
C $117
TIN
Del Monte Dills
SHOO
22-OZ.
JAR
v- f
MEDFORD'S FINEST PRODUCE
CABBAGE
1X1
M Jl 111 II m.
& l.:i.xJlU HEADS lb.
POTATOES u s N 2 K"m,,h so-""- I69
ORANGES Sw'" Cli,,"i-Nvel 5-lb. hag
Large Texas Pinks f (fk. "JA,
GRAPEFRUIT 10 ill
For That New Year's Party
LIMES
310
(ilireflTTWil
MEDFORD
13th and Central
ASHLAND
1475 Siskiyou Blvd.
BLUE SKY
Whole
No. 2V4 Tins
$
FOR
1
Paper Napkins
ZEE PAPER "q
Wrapped-80 Count Pkg.
DOG FOOD
13fo$100
CHUBBY
Mb. Tins
PRESTO LOGS
12 - $1
00
Mix 'Em or Match 'Em:
Applesauce T'
Applesauce""'
Spruce
Mandarin Oranges u.
Poarhoc l)cl Monte
rcabiica ciinffNo. 303
Pearhpc Fl,irniay
i caouca nil..- N sn.
Keg.
.15
.29
.25
.25
.19
No. 303
Pineapple s,ildssNuTr
Pineapple No'.cc2d lyphone
Pineapple ed Sils
Asparagus ?G?;z
Pork & Beans Drew.,w.
Green Beans S'.vCut
Diced Beets lVZ
Gr. Lima Beans l"'
,300
Fruit Cocktail r ,n'onle .27
.23
.29
.29
.29
.23
.16
.15
.19
.18
.19
.13
.19
.17
.14
.13
.23
.19
.16
.25
.15
.25
.25
.22
.31
.29
Pack Collage Cream
UUIII No. 303
Pnrn Cottage Whole
UUIil Kernel No. 303
Unmmif Urews white or
numiny GuUIcn No. 300
Paae "u"' 5 Tender
rBaS Garden No. 300
PeaS Cottage No. 303
Blackeye Peas So
Mission
o. 303
New Potatoes x
Yame "un,c Whole
I dlUS aI1(i cut, No. 303
Sauerkraut ?,M
Spinach )e Monte, No. 303
TOmalOeS BlueSky.No.21i
Tomatoes ,)cluxe No. 30J
T,-I-Del Monle Solid
Tomatoes Pack,No.303
Stewed Tomatoes ?0-,M-
Del Monte
303
Salad Vegts, '
Oysters TcXlT,t
Tlin- Warranty Solid .
I Ulld p.-i.
Vienna Sausage r pak .13
.17
.27
Spaghetti n'-no6!
Zucchini
Del Mnntc
Mandarin Oranges
CatSUp Uc Monte, H ot.
CatSUp Del Monte 20-O7,.
Tomato Sauce 8E0tA
Fruit Cocktail
Tomato Juice 4Tre0rre
.29
.23
.33
.09
.25
.29
Multiple
81.00
4100
51.00
51.00
71.00
51.00
51.00
41.00
41.00
41.00
51.00
81.00
81.00
61.00
71.00
71.00
91.00
61.00
71.00
81.00
91.G0
51.00
61.00
71.00
51.00
81.00
4 .89
4 .89
51.00
41.00
41.00
101.00
71.00
41.00
41.00
51.00
3 .89
131.00
61.00
41.00
Save
.20
.16
.25
.25
.33
.35
.15
.16
.16
.16
.15
.28
.20
.14
.26
.33
.17
.14
.19
.12
.17
.15
.14
.12
.25
.20
.11
.11
.10
.24
.16
.30
.19
.08
.16
.15
.10
.17
.50
.16