Motion Picture Daily (Oct-Dec 1948)

4 Motion Picture Daily Wednesday, October 6, 1948 UA Video Films (Continued from page 1) geared into the first nationwide video sales staff to begin operating in the new entertainment field," the company states. UA Television has begun building a film library of features and short subjects, which will be made available to program directors, advertising agencies, sponsors, network and independent telecasters and related interests. Lazarus said that the product to be made available will include pictures made by some independent producers releasing through U. A. and in all cases will have played all regular theatre outlets. He said that a catalogue is not yet ready and although he indicated that the pictures for video will not be new he added that he could not be specific at this time regarding their actual age. The sales service will be on a distribution fee basis, as is United Artists' operations in theatrical distribution. Sears has appointed John H. Mitchell, radio sales executive and business consultant, to head the new department. Mitchell entered radio with the Erwin, Wasey advertising agency as a program developer. For five years he was with Mutual Broadcasting System. After 20 months in service in the Pacific he joined Honel International, an investment syndicate. Composers, Ascap (Continued from page 1) Vincent Leibell on proposed decrees in the suit against Ascap by members of the Independent Theatre Owners Association of New York. The move to intervene suggests a conflict between the writers and music publishers, according to observers. Under the present arrangement all copyright material is in the name of the publishers. Today's hearing is expected to have as another highlight strong objections by the plaintiff exhibitors to Ascap's bid for a modification of Judge Leibell's findings and conclusions. Goldsmith Interim Aide to Sam Eckman London, Oct. 5. — Charles Goldsmith, assistant to Morton Spring, first vice-president of Loew's International, has arrived in London to act in the same capacity to Sam Eckman, M-G-M's London managing director, for a six months' period. Eckman, in charge of Loew's interests here for 21 years, said : "On account of pressure of work, I have prevailed upon my associate director to relinquish the services of his assistant." CEA Fights (Continued from page 1) and proposes to place it before the Board in the near future. Dennis Walls, CEA president, advised exhibitors to "do your best to fulfill the quota. The CEA will give 100 per cent guidance and support where hardship results," he told them. Out of the cpuntry's 4,706 theatres, 2,471 applied for quota relief. Of that number, 283 theatres were awarded complete exemption from the quota ; 1,353 were given relief ranging from quotas of 10 to 40 per cent, but their precise allotments have yet to be made known to them by the Board of Trade. The remaining 835 were held not to have qualified for relief and it is those cases which the CEA now proposes to contest. US Rejects (Continued from page 1) tainly looks like negotiations are all off unless they're willing to ante up a lot more." No one could be found willing to discuss any of the details of the defense proposals and the Government counter-proposals. Justice spokesmen indicated the Department— after yesterday's fruitless conversations — is going to concentrate more on getting its case ready for the reopening of the proceedings in New York, and spend less time worrying about a consent decree. Rank Facing Test {Continued from page 1) counts reveal, apart from mortgages, debentures, etc., of $76,000,000, short term bank loans and overdrafts of nearly $56,000,000, against which the principal asset consists of over $48,000,000 of what is described as "film productions and rights." Rank declares that he is satisfied that such a valuation f is justified but admits also the possibility of "human error." He announced a new valuation system will be set up. Stress Long Term Credit Commentators were unanimous in remarking upon the ephemeral quality of box-office prophecies. They declare that the key to the organization's survival is whether* or not those productions prove profitable. They also emphasize that it is essential that Rank implement as soon as practicable his promise to put a substantial portion of his short term bank credit on a longer term basis but they point out also that new capital depends in turn on the box-office success of Rank's current product. On the other hand, it is important to appreciate that Rank is no whiteshirted penitent. He frankly acknowledges that his group's liquid position leaves considerable room for improvement. He pledges not to embark on new ventures. He is cutting production costs and organization expenses to the bone, and in this connection he has liquidated 23 subsidiaries, their activities having been absorbed by the parent body. He declares he looks forward with "full confidence," claiming his group's theatre earnings for the first 10 weeks since June 26, date of the balance sheet, show material improvement over the corresponding 1947 period. Also, a remarkable year's record in view of extremely complicated operations was made through mergers and acnuisitions which simplified the group's workings. This has influenced investors' opinions. Press Generally Is Optimistic Lord Beaverbrook's Express naturally runs a scare story with the heading "Rank's Colossus Hard Up." But responsible newspaper opinion, though it points out the need for Rank to correct the perilous liquid position with the dubious value attached to film rights and the vast amount of short term ^prdrafts, is best expressed in this quote from one of them : "The group is emerging from a turgid inflationary state into a more solid business existence." Film trade accountants are apt to shake their heads over the manner of the accounts presentation. Also, Odeon shareholders, accustomed to boom-time profits, dislike accepting liability for film production risks, many having had previous unfortunate experiences in that field. Although market prophets anticipated bigger drops, Rank shares sold only one shilling sixpence to 13 shillings lower in today's market. Rank, CEA Deal (Continued from page 1-*) been termed "an intricate pact." Both sides have agreed to withhold any further information regarding the agreement, but an announcement is expected to be made before the week ends. Rank and the CEA previously had been at odds over the implications of the new British film quota law. Rank Says Quota Offers Safeguards London, Oct. 5. — J. Arthur Rank told stockholders of his Odeon Theatres, Ltd., yesterday that Britain's new 45 per cent film quota is insurance against possible future boycotts of the British market by American distributors. He replied vigorously to criticisms of the new quota act, asserting thr it is justified if only from the vievS^X point that there was always the danger before of American distributors cutting off film supplies if they became dissatisfied with any future action by the British government He claimed that Odeon figures show an average weekly take from British films of $2,348, against $2,264 for all foreign films. He still holds to the belief that it is to the best interests of both countries that Hollywood and British films be shown together the world over. Rank still wishes to reach an understanding with the American industry but doubts that to be possible until Hollywood leaders are prepared to accept the British industry as being established now and one that they must treat on that footing. He is equally satisfied that no peace is possible until Rank's films receive reasonable playing time in the United States. Since the tax settlement, he said, there have been no active measures taken to play British pictures in America. In fact, the experience has been the reverse, he said. Report Johnston Film Deal with Yugoslavia Eric Johnston, Motion Picture Association of America president, has closed a deal with the Yugoslav government whereby the latter will purchase 20 to 25 American pictures during the next year for dollars to be paid in a New York bank, according to press dispatches reaching here from Belgrade where Johnston was reported to have engaged in a two-hour talk with Marshal Tito. Johnston was scheduled to leave Belgrade yesterday by plane for Geneva. The MPAA here had received no direct word from him. N it t i Tax Evasion Hearings Are Ended Chicago, Oct. 5. — Internal Revenue lawyers mediating in the $404,001) income tax evasion case against the late Frank Nitti, hearings on which ended today in U. S. Customs Court, said the case may be appealed by either side to the U. S. Supreme Court on the technicality of whether cash "extortion funds" are taxable. They conceded that evidence submitted in the case tied Nitti only to $12,000 in direct payments. Judge John Kern gave Government lawyers and counsel for Mrs. Annette Nitti, the gangster's widow, 140 days in which to prepare motions, briefs and replies. Following this a ruling will be issued. Ex-convict Willie Bioff, who was used as a go-between to extort $1,800,000 from Hollywood producers and Chicago theatre heads still has to answer for deficiencies in his 1938 returns, it was disclosed by U. S. attorney William Schwerdtgeger. ROBERT GOLDEN EDWARD GOLDEN ^Announce FOR EARLY PRODUCTION "GUILTY of TREASON"