Motion Picture Daily (Jul-Sep 1948)

3 64. NO. 15 MOTION PICTl^k NEW YORK, U.S.A., THURSDAY, JULY 22, 1948 TEN CENTS Reissues Seen Hit by N. Y. Ascap Decision Society Lost Case by Exorbitant Fee Demand The New York Federal District Court decision holding that the blanket licensing of music performing rights to theatres by Ascap is illegal raises serious problems for Film Classics, Astor Pictures and other companies dealing in reissues acquired from other producers, industry attorneys said yesterday. They pointed out that, if the New York court decision is sustained, producers of new pictures may have little difficulty obtaining performing rights to the music in their pictures at the same time that synchronizaton rights are obtained and, thus, will be in a position to extend the performing rights licenses to exhibitors. However, they said, if distributors of reissues are unable to obtain performing rights licenses from Ascap, in the event the New York decision is upheld, such distributors would be (Continued on page 3) Performing Rights Payments Stay: TO A In a statement issued here yesterday Herman Levy, counsel for Theatre Owners of America, warned exhibitors that the Federal Court's decision finding Ascap guilty of violating the antitrust laws does not relieve them of ^their statutory obligation to pay performing rights. Levy pointed out that the opinion of Judge Vincent L. Leibell does not (Continued on page 3) Harry Katz Is Dead; Chicago Rites Today Chicago, July 21. — Services for Dr. Harry Katz, 54, former owner and president of Monarch Theatres, who died in Chicago yesterday, are to be held at 10 A.M. tomorrow at the Piser Funeral Home, this city. He had been ill for several months. Katz retired from the industry in March, 1947, when he sold his inter ests in Monarch to Ted R. Gamble, who now operates the circuit. His survivors include the widow, Mary Katz ; a brother, Sam Katz, studio vice-president of Metro-GoldwynMayer ; his mother, Conja, and two sisters, Mrs. Lillie Stern and Mrs. Esther Katzman. Discount Foreign Revenue, Heed US Market: Johnston Hollywood, July 21. — Hollywood must design its pictures in such fashion as to make them commercially safe on the basis of the domestic market return alone, Eric A. Johnston, president of the Motion Picture Association of America, told a group here planning a public relations council. He warned that the foreign situation as it concerns revenue to the United States is likely to get worse before it improves. Johnston urged all phases of production o buckle down to a firm realization of the outlook and govern their activities and inter-relationships accordingly. The public relations group, representing producers, guilds and unions, reportedly made little progress in finalizing industry council plans. Another meeting is tentatively scheduled for next month. Hit 'Popcorn Clause' In New Bldg. Code Sharp objection to a clause in the proposed revisions to the New York State building code which would prohibit the use in theatres of popcorn machines or other vending machines using combustible fluid, was voiced here yesterday. At the final public hearing at the State Board of Standards and Appeals in the Empire State Building, Leonard L. Rosenthal, representing Smalley Theatres, Inc., and Upstate Theatres, (Continued on page 3) Warren Will Decide British Money Split London, July 21. — Determination of an equitable system of allocating remittable American film money to the U. S. companies has been placed in the hands of John F. Warren, London accountant, who has acted as auditor for various American companies here for a number of years. Britain's Board of Trade, with the approval of the Anglo-U. S. control committee which governs the operation of the dollar exchange agreement which settled the 75 per cent import tax dispute, named Warren to the post. According to the Board's announcement, he is to "determine an equitable basis for the distribution among qualified American claimants for available dollars under the agreement and calculate the amounts to which each claimant is entitled." In the event a claimant considers Warren's decision inequitable it will have the right of appeal to the control committee. Otherwise his decision will be final and no dollar transfer will be authorized without his advice. Claims accordingly will be addressed to Warren. Warren's remuneration will be paid by the American companies on a proportionate basis. Time when the initial distribution of dollars will be made is still uncertain but is promised at the earliest date possible. Ascap Weighs Exit from Theatre Field Says Its Members Might Benefit from Decision Holloway Heads New Mid-Central Allied Edward T. Dickinson Named to EC A Post Washington, July 21. — Edward T. Dickinson, Jr., on leave of absence as vice-president of Universal Pictures Co. in charge of educational films, today was appointed director of the new program co-ordination division of the Economic Cooperation Administration, which will be responsible for evaluating and recommending ECA programs for the European countries participating. Dickinson, 37, was a marine in the war and was with Office of Strategic Services. He served as research assistant to the chairman of the United States Steel board before he went into service, later becoming executive director of the planning committee of the War Production Board. After the war he functioned as one of the U. S. representatives on the Emergency Economic Committee for Europe. St. Louis, July 21. — Organization of Mid-Central Allied Independent Theatre Owners, Inc., has been completed here with the election of Henry Holloway of St. Louis County as president and A. B. Jeffreris, Piedmont, Mo., as vice-president. Hugh Graham of St. Louis is secretary. Board members are Charles Beninati, Carlyle, 111. ; Earl Vandever, Kennett, Mo. ; W. T. Zimmerman, Warrenton, Mo. ; Caesar Berutt, Sullivan, Mo. ; Lee Norton, Sullivan, 111., and Andrew Dietz. Wilby Returns 2 in Tenn. to Crescent Atlanta, July 21. — Wilby Theatres has relinquished operation of the Rialto and Gem, Kingsport, Tenn., and has returned the theatres to Crescent Amusement Co. of Nashville, owner and former operator. Wilby, which had operated the houses for many years past, will continue to operate the State, its own house in Kingsport. Two independent houses, the Center and the recently opened Fox, also are operating in Kingsport. Ascap officials said yesterday that consideration is being given to a withdrawal from the theatre music licensing field without taking an appeal from the New York Federal court decision of Tuesday enjoining the Society from issuing blanket performing rights licenses to theatres and granting other basic injunctive relief to members of the Independent Theatre Owners Association of New York, plaintiffs in the action against Ascap. "The decision may be a blessing in disguise for Ascap," one official said. (Continued on page 3) Ascap Decision Seen Vindicating Allied Washington, July 21. — Abram F. Myers, Allied States general counsel, declared today that the New York decision ruling out the Ascap seat tax is complete vindication for Allied's position of last winter in supporting the Lewis bill and refusing to bargain with Ascap. The order, he said, "gives effect to the substance of the Lewis bill," and was no doubt influenced by it. "Quite naturally," said Myers in a statement telephoned to his office from St. Louis, "Allied is gratified that its position in reference to Ascap has received full judicial sanction. I am happy to congratulate Messrs. Brandt (Continued on page 3) Trinity Sues Selznick In Contract Dispute Hollywood, July 21. — William A. Bacher's Trinity Pictures Corporation has filed a Superior Court suit against David O. Selznick, Vanguard Films and numerous "John Does," asking $2,500,000 for charged violation of a contract covering the production "If This Be My Harvest," which was stopped on the scheduled starting date when Vanguard-loaned players, Valli, Louis Jourdan and Robert Mitchum failed to report for work. Selznick subsequently issued a statement saying the deal had not been completed and players were withheld because Bacher had failed to revise the script to conform with Selznick's requirements.