Motion Picture Daily (Oct-Dec 1948)

Accurate Concise and Impartial FILE GCFY DO NOT REMOTE MOTION PICTURE F DAI LY 64. NO. 81 NEW YORK, U.S.A., TUESDAY, OCTOBER 26, 1948 TEN CENTS Supr eme Court Will Not Rule On Clearances Frees Distributors of Liability of Damages Washington, Oct. 25. — The U. S. Supreme Court today refused to review a decision of the eighth Circuit Court of Appeals upholding the legality of film clearances set by the American Arbitration Association under the 1940 consent decree and freeing distributors of any liability for damages resulting from their observance of these clearances. The high court said it would not hear an appeal by a group of independent St. Louis exhibitors, headed by Harry C. Arthur. The Arthur group, in a case started in Oct., 1944, held that the New York District Court had exceeded its authority in setting up the AAA, and asked injunctive relief and $285,000 damages for alleged injuries resulting from clearances set by the association and observed by the distributors. The Supreme Court never gives reasons for taking or refusing cases, (Continued on page 7) N. Y. Grosses Satisfactory Business in New York's first-runs is generally satisfactory this week. However, at one location, Loew's State, grossing records were smashed in the opening of "The Three Musketeers," with $97,000 taken in. Two other films also opened big here, "A Song Is Born" at the Astor expecting to produce a bright $41,000, and "The Red Shoes" heading for $17,500, capacity business, in its first week at the Bijou. Also continuing to gross capacity is "Hamlet," with (Continued on page 7) Move for Dismissal Of Dipson's Action . Buffalo, Oct. 25. — In order to consider separate motions for dismissal made by the defendants, Buffalo Federal Judge Knight has adjourned to Nov. 4 the. trial in the $5,000,000 trust action brought by Dipson Theatres against eight distributors, Buffalo Theatres and individuals. The defendants in their bid for dis (Continued on page 7) Paramount Clearance Cut in Indianapolis Continuing its program of clearance adjustments around the country in accordance with new marketing conditions and other factors, Paramount has reduced from 42 to 30 days Indianapolis first-run availability over subsequentrun houses. That city's firstruns include four Monarch theatres and two operated by Loew's. Paramount recently effected changes in Minneapolis but these involved subsequentruns only. UAWill Insist Upon Television Rights All new United Artists film distribution contracts coming up for approval by its board of directors will include a television clause guaranteeing the company video distribution rights, upon completion of theatrical distribution. The first company to take such action in the new field with the creation of a television sales department, United Artists will henceforth provide full releasing and sales service for its independent producers. The company's film sales set-up, covering 33 exchange centers in the United States and Canada has been geared into the first nationwide video sales staff as well. John H. Mitchell, heading the new U. A. television sales department, has (Continued on page 8) More Duties For O 'Shea In a realignment of domestic distribution shifts to cope with steppedup activities, Charles M. Reagan, distribution vice-president of Paramount Pictures has assigned additional duties to E. K. (Ted) O'Shea, his executive assistant. O'Shea, who joined Paramount in 1947 when that company acquired Liberty Productions, will, in addition to his present assignment, take over supervision of Paramount's mid-Eastern division, effective immediately. This division, for the past three years, has had Earle W. Sweigert as division sales manager. The division comprises Philadelphia, Washington, Pittsburgh, Cleveland, Detroit and Cincinnati. Sweigert will resume his post as district manager, covering Philadelphia, Pittsburgh and Washington. The (Continued on page 7) Paramount Theatre To Telecast Election The Paramount Theatre aims for another television first on Election Night when it will employ largescreen television to present election returns at intervals. It will be the theatre's first televised feature to be given advance public announcement. The. coverage will be made possible by collaboration between Paramount and television station WPIX. Television staffs, telecameras and relay facilities have been pooled so that (Continued on page 8) Johnston Raises 'Iron Curtain' at SMPE Meet Washington, Oct. 25. — So -important does the Soviet government now consider motion pictures that it has named to Cabinet rank a Minister of Cinematography, Eric A. Johnston, president of the Motion Picture Association of America, reported at the luncheon-meeting here today launching the 64th semi-annual convention of the Society of Motion Picture Engineers. Other "Iron Curtain" countries are following the Soviet lead and creating similar posts, he added. Johnston told reporters following the session that the first list of American films to be offered the Russians under his recently-announced deal with that country will be ready in "three or four days" and from that list the new (Continued on page 8) Will Rule Nov. 30 in Oklahoma Case Bid Oklahoma City, Oct. 25. — Judge Edgar S. Vaught of U. S. District Court will rule on Nov. 30 on the Government's request that Theatre Enterprises, Inc., be made a defendant in the Griffith anti-trust case in place of Westex and R. E. Griffith Theatres. The Government's motion was argued today with Justice Department attorney George W. Wise contending that Theatre Enterprises is substantially the same ownership which existed when the suit was filed nine years ago. Vaught will also begin hearings on Nov. 30 on the Supreme Court's re (Continued on page 7) RKO Board to Meet on New Theatre Firm Texans Bid for Houses Under Divorcement Plan Howard Hughes and the board of directors are scheduled to meet on the Coast this week to finalize a proposed settlement with the Department of Justice in the Paramount, et al., case under which RKO would separate production and exhibition with a new company to be formed to operate the theatres, it is reported in top industry circles here. That an early accord with the Department is in view was reported yesterday by Motion Picture Daily. RKO is said to have a long-range divestiture program in mind, the first step being sale of its fractional holdings in 300 theatres, such as its 10 per cent interest in the Butterfield Circuit. The approximately 100 theatres which the company controls subsequently would become the property of the new exhibition company with stock splits effected so that current public holders would surrender shares in RKO in return for securities of (Continued on page 7) 'IA' Invades Sopeg at RKO Attorneys for IATSE Motion Picture Home Office Employes Local No. H-63 will file with the National Labor Relations Board here today a petition for recognition as the collective bargaining representative of RKO Radio's home office "white collarites," the union disclosed yesterday. RKO Radio is the third Screen Office and Professional Employes Guild stronghold to be invaded by H-63 since the companies announced their (Continued on page 2) Ruffin, Jr., Elected Head of Tri-States Memphis, Oct. 25.— W. F. Ruffin, Jr., of Covington, was elected president of Tri-States Theatre Owners as the exhibitor organization, at its convention here today, adopted changes in its by-laws to rotate the presidency among Arkansas, Mississippi and Tennessee and to invite exhibitors (Continued on page 8)