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V***r* mat Opinion
Continued from Punt 12)
ouses by a single buyer must pass under ixlgment of the Court.
In addition to the 24 minimum, some 48 hcatres may have to be put on the block if ompetition in the 30 cities in which they re located is not re-established. Of the .tal 120 theatres currently owned by Loevv's nlv 44 are wholly unaffected. The rest rcuire either unequivocal divestiture, or must ;cept product limitations and other condions to alleviate the monopolistic violations mud by the Court. Three to live years
alowed for the latter conditional houses.
Stockholders' approval, according to de
ee terms must be approved by June 6th.
idustry UHF Channels Bid ue For Plenty Opposition
he industry's attempts to gain a series of elevision "highways in the sky", or exusive ultra-high frequency channels, wasn't >ing to be an easy matter, hearings before e Federal Communications Commissions dicated.
One of the principal sources of opposition is expected from the American Telephone Telegraph Co., according to S. H. ibian, prominent theatre circuit head and pioneer in the development of theatre teleion. Fabian, at the TOA board meeting Hollywood, specifically named the A. T. F. as an opponent of industry channels, ting that the company has "one of the Dst powerful lobbies in Washington and DSt certainly will oppose us at the FCC arings because they want to keep this very rative business for themselves." Additionbarriers were expected from the broadting companies and ad agencies handling msored TV shows.
The FCC, however, made it clear that they re going to give film interests every oprtunity to present their case as they enged the issues and granted petitions for irings to seven more parties. It also >ved back the date for the hearings from bruary 25 to March 10, in order to fore11 any pleas by attorneys that they may
be prepared to handle the issues. The Commission, which last week had a g series of sessions with Paramount sident Barney Balaban on his company's ht to hold broadcast licenses (ABC netrk), served notice that it would dig deeply o the background of all applicants in line h its previous policy of withholding ■nses from those with monopoly histories. 1 Questioned by the FCC about Paramount's 'r" Jlingness to offer pictures t oTV interests, fa"'jlaban declared that his company's films )C rtU be released to TV if and when it is "in amount's interest" to do so. Presently, rta'Tvever, he felt that the cost of the films butio |-e prohibitive to the free video broad!• -'Iters.
Salaban also expressed the belief that U°! atre television was still "a long way in future", but that in any case, it did not iflict with free TV.
-BRUARY H. 1952
Loe*
WARNERS' BLUMENSTOCK
From East to II r.sf
WB's Blumenstock Sets Up Ad-Publicity Hub At Studio
W arner Bros, became the first of the "Big Five" to transfer its promotion headquarters to Hollywood when Mort Blumenstock, vicepresident in charge of advertising-publicity, announced his emigration to the studio to set up his office on the Burbank lot on February IS. Each of the department heads, however — ad manager Gil Golden and Eastern publicity director Larry Golob — will remain at the New York home office. They will continue under Blumenstock's supervision and future contact between New York and Hollywood will be maintained by Blumenstock's "frequent trips from Burbank," it was stated.
The move, according to the company, was designed to "speed up promotional service distribution and exhibition" and reflects the requirements that demand "more and more concentration on early individual film campaigning.
The rest of the ad-publicity department will not be affected, at least at this time, with Alex Evelove continuing in his position as studio publicity director.
Hughes May Hold Theatres Stock— Until "Proper Hearing"
Unless and until the New York District Court can hold an "adequate hearing" and hand down a decision which would require Howard Hughes to sell his RKO Theatres stock, the RKO Pictures chieftain may retain his holdings in trust for as long as he desires. This ruling was decreed by the highest tribunal in the land, the U. S. Supreme Court, as .it handed down a unanimous decision reversing the District Court's decree under which Hughes was ordered to
durst himself Of his RKO theatre holdings by Feb. 20, 1953.
The high Court held that the District Court had no right to alter the original Consent Decree, under which Hughes was given no deadline lor disposal of his stock in « . 1 1<or the other of the divorced companies. It also ruled that Hughes was deprived oi "his express!) granted alternatives" by the lower court's order, "Hughes would have no choice if the first 'alternative' was to sell the stock and the second 'alternative' was to sell the stock." Justice Hugo Black wrote.
The door, however, was left open for further proceedings by the Justice Department. "We entertain no doubt concerning the Dis trict Court's power" to force Hughes to step out of one of the two companies "after a proper hearing," the Supreme Court declared, and pointed to its divorcement opinion in the Paramount case. Justice Black also indicated with the government's argument that continuance of the trust would defeat the purpose of the decree, but it did not empower the court to change the decree without Hughes' consent or proper evidence at a new hearing.
Fox Merchandising Meets Asked In More Territories
The popularity of the 20th Century-Fox merchandising meetings, corroborated in Philadelphia where close to a thousand theatremen gave the showmanship sessions the same rousing reception accorded the initial meeting in New York, seemed destined to spread over the country. Several regional exhibitor organization leaders have requested 20th-Fox president Spyros P. Skouras and vice-president Charles Einfeld to hold the meetings in their territories and have promised to have a sizeable turnout from the entire area on hand for the occasion.
Already scheduled, although no dates have been set, are Atlanta, Dallas, Chicago, Denver, and Los Angeles. Requests have been received from Independent Theatre Owners of Ohio, asking for a meeting in Columbus where the Cleveland and Cincinnati areas could be combined; also from Boston, San Francisco and Indiana. Dates for these will probably be set upon the return of distribution chief Al Lichtman to the home office next week.
The Philadelphia meeting was highlighted by a dramatic contrast between television shows and the theatre presentations. With Einfeld directing the proceedings (he cancelled a projected trip to Hollywood in order to be on hand) kinescope examples of current television programs were demonstrated to illustrate some of the long-range merchandising plans now in work for pictures to be released during the first six months of 1952. Then the last reel of 20th'> Eas»er special, "With A Song in My Heart", was shown and the TV programs looked like a shanty stacked up against the Empire State building.
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