Motion Picture Daily (Apr-Jun 1948)

MOTTOM PlCtVRJE — ~~n _ murv« ft n n A./* />TT* V A** A MOTION PICTURE ASSOC. OF AMSHrCA., {HO. (CHAMBERS) 23 WEST 44TH ST., NSW ¥ORK 18, H. Y. Accurate Concise and Impartial rf[y.. 63. NO. 118 NEW YORK, U.S.A., FRIDAY, JUNE 18, 1948 TEN CENTS Partner Sues W B. to Force Theatre Sale First Divestiture Test Under High Court Ruling Washington, June 17. — Probably the first suit to employ the Supreme Court's Paramount decision as basis for forcing one of the big five to give up a theatre jointly owned with an independent was filed in District Court here today by the K-B Amusement Co. against Stanley Co., Warner Brothers theatre operating subsidiary. K-B and Stanley each own 50 per cent of the MacArthur Theatre here, and the complainant asks the court, among other things, to order Stanley to transfer its interest in the MacArthur on the ground that the Paramount decision said the big five must give up jointly-owned theatres where the join ownership is an alliance with one who would be an independent operator but for the joint ownership. The case has many complications and ramifications beyond this, however. The complaint charges Stanley (Continued on page 4) D of J Holds N. Y. Court Injunction Governs Para. Case Majors, SAG Pact Talks Set for Tues. Hollywood, June 17. — Screen Actors Guild and producers' representatives are preparing to resume contract negotiations here on Tuesday. Talks were broken off by the guild on April 2 due to the reported unwillingness of producers to make reissues and television clauses the first items for discussion. It is believed that agreement has been reached between the parties to assign these questions to special study committees while other issues are dis (Continued on page 2) Washington, June 17. — Rejection of the Government's proposed order and temporary injunction in the Paramount case by the New York Federal Court last Tuesday results in the reinstatement of the original injunction of the lower court, Robert L. Wright, assistant to the Attorney General, said today. With that injunction now in effect, all the guess work, and the responsibility for wrong guesses, is up to the defendant companies' lawyers, he pointed out. The Justice Department's idea in presenting the new order, he said, was to clarify and reinterpret everything in the light of the Supreme Court decision. The lower court's refusal to act, Wright contends, means that the legality of many courses of action is uncertain and will continue so. Con(Continued on page 4) ASCAP in New Bid For Consent Decree Washington, June 17. — ASCAP officials have submitted a new proposed consent decree to the Justice Department in the Government's antitrust suit against the Society's foreign affiliations, Justice officials revealed today. They declared they thought there was a "good possibility" of reaching (Continued on page 2) Raise $252,575 at UJA Drive Opening A total of $252,575 was raised here yesterday at the amusements division of the United Jewish Appeal luncheon at the Hotel Astor, marking the formal launching of the campaign for 1948. No fixed quota has been set for this year's drive. Principal speaker at the luncheon was Reuven Dafni, a major in Israel's security forces, who discussed the present crisis in Palestine. Moss Hart and George S. Kaufman, playwrights, were co-chairmen of the luncheon, and Harry Brandt, circuit executive, was fund raiser. Brandt reminded that the amusement division will hold a (Continued on page 2) Test Case Sought on Legality of Cryptix The Government has been asked to make a test case of the legality of Cryptix, a method of numbering tick ets that enables a theatreman to keep his grosses confidential, it was disclosed here yesterday by Willis Vance, Cincinnati exhibitor serving on the ticket committee of Allied States. Vance reported that the Federal Bureau of Internal Revenue had ruled against the continued use of Cryptix, which provides each exhibitor with his own individual ticket numbering system. The theatre man, who is responsible for the development of Cryptix, said that use of the system will (Continued on page 2) U.S. Council Member Unneeded: Wilson London, June 17. — British Board of Trade president Harold Wilson told a meeting of the Kinematograph Renters Society council in reply to remonstrances over the exclusion of American representation on the British industry Films Council that there is no reason for thinking American representation is necessary. Wilson's assertion, together with KRS comments, has been sent to the Motion Picture Association of America, it was said. Commons Told U. S. Out-Traded Britain London, June 17. — Britain's delay in publishing the Anglo-American tax agreement and "the manner in which terms dribbled out" gave the impression that the government was "thoroughly ashamed of the agreement," Parliament member Oliver Lyttleton stated in Commons today. Lyttleton acknowledged that Board of Trade president Harold Wilson's position in the negotiations was "difficult," but said he thought Wilson underestimated the negotiating position of the British industry. The agreement, he held, bears many signs of (Continued on page 4) MPEA to Ask State Dep't to Protest Quota Claims Britain Violates Anglo-U. S. Trade Pacts The board of directors of the Motion Picture Export Association yesterday asked Eric Johnston, president, to request the State Department to make a vigorous protest to the British government against the new British 45 per cent film quota. Johnston also will ask the State Department to request negotiations with the British government to reduce or eliminate the greatly increased quota, as provided in the general trade agreement and the Havana ITO Charter. At the same time, the State Department will be asked to protest the elimination of American representation from the Cinematograph Films Council, an advisory group to the Board of Trade. This Council, after elimi (Continued on page 4) Industry Publicity Fails : Youngstein The industry's public relations effort as fostered by the Motion Picture Association of America and exhibitor organizations is "the worst butchered job in the industry's history," Max E. Youngstein, Eagle-Lion's advertisingpublicity vice-president, charged yesterday as he began his administration as president of the Associated Motion Picture Advertisers. Addressing a gathering of some 300 AMPA members and industry guests (Continued on page 4) MPEA Relinquishes Selling in Holland Directors of the Motion Picture Association voted here yesterday to sell independently in the Netherlands following expiration on Aug. 31, of present licensing agreements. The action was taken because the market has made sufficient progress economically to warrant restoration of individual company operation, it was stated. Metro-Goldwyn-Mayer, Paramount, RKO, 20th Century-Fox and Warner Bros, will operate within the framework of a modified MPEA, which will function thereafter as a service organization. Allied Artists, Colum (Continued on page 4) Name Gadoni Loew's Manager for Omaha Chicago, June 17. — The appointment of William Gadoni as Loew's branch manager in Omaha was announced here by William F. Rodgers, Loew's general sales manager. Gadoni succeeds Jerry McGlynn who is being transferred to Des Moines as branch manager, replacing D. C. Kennedy, who is leaving the industry. Coyne Sees Video Competing for Films Asbury Park, N. J., June 17. — With a view to adjusting the motion picture industry to television, which he characterized as "the Number One scare of every theatreman," Robert W. Coyne, retiring executive director of Theatre Owners of America, today urged that the industry study the question of establishing "exclusives" in television for theatre use. He also recommended, in his talk at the first annual convention at the BerkeleyCartaret Hotel here of the New Jer (Continued on page 2)