Motion Picture Daily (Apr-Jun 1948)

1 FIRST 1 MOTION PICttTR^f^ IN A TT T TT Concise [ FILM ■ ■ /m ■ ■ j and NEWS B m ■ ■ ^ 1 I ^Partial T ^63. NO. Ill NEW YORK, U.S.A., WEDNESDAY, JUNE 9, 1948 TEN CENTS U. K. Tax Pact Changes Cause Concern Here MP A A, MPEA Boards To Weigh Subject Friday Revisions in the British film tax agreement being requested by London government officials have attained such scope that industry leaders here feel that they would have the effect of altering the agreement itself. Concern over the proposed revisions is so great that it is likely that discussion of the subject will be the first order of business at the meetings of the boards of the Motion Picture Association and the M. P. Export Association here on Friday. The agreement, negotiated in London last March by Eric Johnston, (Continued on page 2) RKO, WB, 20th-Fox Pay for Arbitration Three of the five theatre-owning defendants in the industry anti-trust suit have formally indicated their intention of continuing to support the industry arbitration system with receipt by the American Arbitration Association here of monthly assessment checks from RKO Radio, Warners and 20th Century-Fox. Paramount and Loew's, the other two . theatre-owning defendants, are expected to mail assessment checks to the AAA this week. Two exhibitor complaints have been filed for arbitration since the U. S. Supreme Court ruled in the Paramount case on May 3. Senary 4in Accord' With Hughes' Policy Hollywood, June 8. — Dore Senary, RKO Radio production executive, today asserted that he and Howard Hughes, who recentlv acquired control of RKO from Floyd B. Odium, "are in complete accord on present policy" and "projected program" for the studio. He explained that his statement was made "with the desire to dispel all of the rumors" concerning a change in production management it RKO. 45-Day Deadline Is Asked by US for Filing Schine Data In its proposed order to be entered in District Court in Buffalo on June 14 in accordance with the U. S. Supreme Court's mandate in the Schine anti-trust suit, the Government asks a 45-day deadline after that date for the filing by the defendant of an accounting of all company theatre interests of any description. Copies of the order and of a memorandum supporting the order have been served on counsel for Schine. Willard S. McKay of counsel for Schine said yesterday no action would be taken on the proposed order pending a study of the document. In each instance the defendant is required to list the name of the theatre, its location, seating capacity, nature of Schine's interest and any periods during which the house may have been closed between Jan. 1, 1946, and June 1, 1948. Under the order, the defendant is also compelled to file with the Buffalo District Court a statement on any other theatre realty interests, giving the nature of the interest in each case, the type of property and the location. Within 60 days after presentation of the order to Federal Judge John Knight by the Government, both parties are directed to file with the District Court any new and amended (Continued on page 6) NY Warner Theatre Sold for $2 Million Warner Brothers has sold the Warner Theatre here, one of its two "showcases" on Broadway, to Albany industrialist Anthony Brady Farrell, principal backer of the Broadway stage musical, "Hold It !" He will convert the house into a legitimate theatre and reopen it on Sept. 9 with "Hold It !" now tenanted elsewhere. Farrell, who announced his purchase at a press interview yesterday, has given Warners a $200,000 down-payment and will pay the remainder of (Continued cm page 6) Selznick to Open Branch in Albany Albany, N. Y., June 8. — Selznick Releasing Organization will open an exchange here within two weeks, to be managed by Schuyler Beattie, now functioning as the company's sales representative here. All shipping now being done from New York and Buffalo, will go out from this city, with physical distribution handled by' ClarkFilm Distributors. Initiate Plan To Aid Rogers Hospital Fund National film company sales managers yesterday divulged plans for a series of contests to be conducted within the industry as a means of raising funds to continue the Will Rogers Memorial Hospital at Saranac Lake, N. Y. With $25,000 in cash on hand and pledges beyond, the tubercular sanitorium can operate until November 1, according to Edmund C. Grainger, assistant treasurer. Idea of the contests stems from the success attained by various Variety Club tents. Robert Mochrie; general sales manager of RKO Radio, pointed out the Boston tent had sold $60,000 worth of tickets and came off with net of $45,000, Philadelphia raised $45,000 and Washington $40,000. The New York exchange area will (Continued on page 2) Mid-Central Allied Formed in St. Louis St. Louis, June 8. — Allied States Association today launched its St. Louis area unit at an all-day meeting at the Sheraton Hotel here with some 40 exhibitors attending. The meetingadopted the name of Mid-Central Allied Independent Theatre Owners and elected an organization committee. Andy Dietz was chairman of the sessions, and H. A. Cole of Dallas, and Trueman T. Rembusch of Indianapolis were the principal speakers. Representation at today's meetingwas mainly from out-lying districts, and, as was expected, this first Allied move here drew few recruits from St. Louis itself, long a stronghold of Fred Wehrenberg's Motion Picture Thea (Continued on page 6) 5 More Percentage Suits Are Settled Providence, June 8. — Percentage suits involving the Palace, Gem and Thornton theatres in Arctic, R. I., and the Weymouth in Weymouth, Mass., have been marked ended in Federal Court here with the filing of a stipulation in each action to the effect that the defendant exhibitors have accounted to the plaintiff distributors and have paid to them the amounts agreed to be due. Actions were pending on behalf of Paramount, Loew's, 20th CenturyFox, RKO and Warner Brothers. Option to Buy Para. Holdings To Interstate Hoblitzelle Links Move To High Court Decision Dallas, June 8. — Interstate Circuit and Texas Consolidated Theatres have an option to buy the Class "B" stock owned by Paramount, it was disclosed by Karl Hoblitzelle, head of the circuits, who said that he will consolidate all of his holdings if they acquire the "B" stock held by Paramount. Arising from the Supreme Court ruling in the Paramount case which might force defendant distributorproducers to divest themselves of theatre holdings under certain conditions, this was the first indication by a theatre partner that he will seek to buy out the interests of the defendant. Hoblitzelle said that Interstate and Texas Consolidated, numbering 183 houses in Texas and New Mexico, which control the Class "B" and "A" stock, would also acquire all of the Paramount-owned "B" shares in those circuits. Propose Settlement Of N. T. Stock Suits Proposals for the settlement of 20th Century-Fox stockholders' suits which involved more than $6,850,000, representing sale of National Theatres' stock and salaries and bonuses of five N. T. officers, were received by the company yesterday. Details of the proposed settlement were not disclosed pending notice to 20th-Fox stockholders and approval by the court and board of directors, but a possible readjustment of $3,550,000 was indicated by the company. Officers of N. T. involved were (Continued on page 6) Senate Committee Approves Trade Pact Washington, June 8.— The Senate Finance Committee today approved a one-year extension of the Reciprocal Trade Agreements Act, with the President required to give Congress his reasons if he ignores Tariff Commission recommendations on how much of a cut should be made in any particular item in new trade agreements. The Senate group removed, however, a provision in the Houseapproved bill giving Congress the (Continued on page 2)