The Exhibitor (Nov 1948-Feb 1949)

THE EXHIBITOR ifi Consent Decree In Scophony Case New York — Federal Judge Edward A. Conger last week signed a consent decree in the three-year-old government anti¬ trust action against Scophony Corporation of America, General Precision Equipment Corporation, Paramount Television Pro¬ ductions, and Scophony, Ltd. of Great Britain, which set free a wealth of patents in the television field which have re¬ mained undeveloped since 1945. Under the decree, the defendants are enjoined from monopolizing the manu¬ facture and sale of television equipment embodying patents and processes devel¬ oped by Scophony, Ltd. The “super¬ sonic” and “skiatron” systems for video transmission and reception are covered by these patents and processes. The final judgment in the case outlaws alleged illegal cartel agreements dividing up world markets, and divests General ‘Precision and Paramount Television of exclusive rights in the Western Hemis¬ phere to manufacture and sell products embodying the Scophony patents and processes. It make possible the exploita¬ tion of all patents and processes covered by the suit, and compels GPE and Para¬ mount to divest themselves of all stock interests in and control of Scophony of America. It also rules out the exclusive licenses which GPE and Paramount hold under the Scophony patents and processes. At the same time. Judge Conger ap¬ proved a voluntary stipulation dismissing the action as far as Scophony of America, General Precision, and Paramount Tele¬ vision were concerned. Scophony, Ltd. was considered in default for its failure to file an answer in the action, and, fol¬ lowing the signing of the consent decree, a Department of Justice spokesman indi¬ cated that the government will move to obtain a default judgment against the British company in an attempt to force divestiture of its holdings, and to bring it under the power of the decree. At a conference held after the decree signing, the defendants reached a settle¬ ment in a suit brought by Scophony Corporation of America against General Precision and Paramount Television. Un¬ der the terms of this agreement, the 340 shares of Scophony of America “B” stock held by Paramount Television and General Precision’s 660 shares must be endorsed over to Arthur Levey, president, SCA. The “B” shares of the company total 1,000. GPE and Paramount will be credited by SCA with $130,000 against earned roy¬ alties. Non-exclusive license has been given to GPE and Paramount to make and use sets for theatres under patents de¬ veloped by Scophony. Levey agreed to cancellation of a cross-claim of $4,500,000 in triple damages sought in behalf of his company and $270,000 damages in a per¬ sonal suit. Cancellation of the cross-claim does not apply to Scophony, Ltd., and this cross-claim will remain active, it is under¬ stood, until the Britsh firm becomes a party to the consent decree. After the meeting, Levey revealed that he had a deal on for the purchase of the 625 shares of Scophony of America held by the British company and Czech syndi¬ cate operating in England. Levey is said .o hold 125 shares of the total of 1,000. Paramount Confers On Possible Settlement WASHINGTON— Leonard Goldenson, Paramount vice-president, met here last week with Herbert A. Berg¬ son and Robert Wright, Department of Justice, in what was presumed to be another attempt to work out a consent decree in the government anti-trust suit. The plan was reported submitted to the Paramount board in New York last weekend. Levey disclosed that negotiations for a pilot plant are now under way, and that SCA will issue manufacturing licenses on the broadcast royalty basis so that mass production of supersonic television projectors may be accomplished without delay. He said, “It is safe to predict that the supersonic cell, which permits projection of television images on the largest screens as easily as if they were motion pictures, will overshadow in significance present methods of television reception, when it is marketed. This device, on which SCA owns the basic patents, will make avail¬ able, both in homes and in theatres, largescreen video reception in varying sizes vastly superior in quality and substan¬ tially lower in cost than that now offered by the cathode-ray tube method. Sco¬ phony and its licensees will shortly swing into volume production of supersonic tele¬ vision projectors, and these will give viewers for the first time large pictures of unlimited brilliance and uniform allumination.” “SCA also owns the basic patents on the skiatron tube,” Levey continued, “and experts agree that full development of the skiatron, which employs the same prin¬ ciples of optical storage as the supersonic system, should enable the projection of a picture of unlimited brilliance and defi¬ nition on a theatre-size screen with a standard motion picture lamp. It should also be possible to obtain a natural color television picture with the skiatron by a method similar to the successful subtrac¬ tive process for Technicolor and Kodachrome.” In conclusion, Levey said; “It has been authoritatively stated that there has been no marked improvement in cathode-ray tubes during the past decade, and that the tube has inherent limitations. On the other hand, the supersonic cell and the skiatron tube are only on the threshold of their potentialities.” Walt Disney Honored Lafayette, Ind. — Walt Disney last week received a distinguished service citation from Purdue University, the first of its kind ever bestowed on an American. He was accompanied by Ellis Arnall, SIMPP head. Ned E. Depinet, Robert Mochrie, and Nat Levy, representing RKO, and William Banks Levy, Walt Disney organization, came on from New York for the cere¬ monies. In addition to the citation, Disney was made an honorary member of Purdue Alumni. There also was created by vol¬ untary contribution the Walt Disney Scholarship Fund, which each year will help some deserving student. I THl SCORl BOARD i {In this department will he found a rating of pictures screened by Warners, MGM, Paramount, RKO, and 20th CenturyFox under the decree. Complete reviews appear in The Pink Section. — Ed.) PARAMOUNT “Alias Nick Beal” — Program. Columbia Files SEC Form Washington — Columbia last week filed a new stock registration form with the Securities and Exchange Commission. Gross income for the year was set at $46,899,000, compared with $48,832,000 a year earlier, and domestic revenue was $28,718,000, as compared with $28,457,000 for 1947. Increased costs were cited in the report, issued in compliance with Com¬ mission regulations, while a decrease in anticipated foreign revenue was cited. The following sums paid to its officers for services were divulged; President Harry Cohn, $197,600; executive vice-president Jack Cohn, $145,600; vice-president Abra¬ ham Schneider, $93,600; Nathan B. Spingold, $83,200; Louis Barbano, $46,540; A. Montague, $130,000; B. B. Kahane, $104,000; Joseph A. McConville, $73,200, and Lester Roth, $78,000; assistant treasurer Mortimer Wormser, $30,100, and assistant treasurer Leo Jaffe, $33,700. In addition, secretary Charles Schwartz and assistant secretary David Fogelson are members of Schwartz and Frohlich, Col¬ umbia counsel, who were paid $80,600 dur¬ ing the year. Other counsel, Mitchell, Silberberg, and Knupp, were paid $78,000. More Salaries Revealed New York — In Securities and Exchange records made public last week, it was divulged that for the 1948 fiscal year $325,833 had been paid by MGM to Frank Sinatra and $300,342 to Judy Garland. Louis B. Mayer received $417,263 for the fiscal year ended on Aug. 31, compared with $949,765 paid to him in 1947. Warners reported payment of $364,000 to Bette Davis, $315,476 to Dennis Morgan, and $244,666 to producer Henry Blanke. Harry M. Warner, president, received $182,300, and Jack L. Warner, vice-presi¬ dent, $182,100. Academy Ballots Mailed Hollywood — Eligible voters were mailed nomination ballots for the 21st annual Academy Awards this week. They are due back on Jan. 29, and the nominations in respective classifications will be announced on Feb. 14. Final voting ballots will be mailed to voters on March 1, with polls to close on March 15. Awards presentations will be made on the night of March 24 on Warners’ sound stage. Hughes Cuts Down NY Staff New York — The local offices of Howard Hughes Productions will close at the end of the month, it was learned last week. Among those affected are Alec Moss, Hughes advertising, publicity, and exploi¬ tation head, and Phil Dow, office treasurer. It is reported that a settlement would be made with Harry Gold, distribution head, whose contract still has another year to run. January 19, 1949