Motion Picture Daily (Oct-Dec 1948)

i ^curate Concise and Impartial ST., 21 ST fL, ▲ V H4TH ST. t ^ fU> V DAIX if FIRST IN FILM NEWS vcT7y4, Na 85 NEW YORK, U.S.A., MONDAY, NOVEMBER 1, 1948 TEN CENTS TOA to Test Conciliation For 60 Days Non-Members Invited to Join Three-Step Program Theatre Owners of America will try exhibitor-distributor conciliation on a 60-day experimental basis, it was announced here jointly on Friday by TOA president Arthur H. Lockwood and executive committee chairman S. H. Fabian, following a closed meeting of the TOA executive committee. The TOA heads explained that all state and regional units will receive at once from the national organization a recommendation that conciliation committees be formed in their respective areas, "in the hope of making a sincere, firm effort to check the ever-mounting number of suits that are strangling the industry." The plan is for a local committee to have as members a TOA member, a member of any other local exhibitor association and, if possible, an unat (Continued on page 6) S chine Will Attack US Proposals Today Buffalo, Oct. 31. — First formal objections to the Government's proposed order stripping the Schine circuit of all but two of its theatres are expected to be presented in U. S. District Court here tomorrow by Schine counsel at a court hearing on a Government motion for more information from Schine. Willard S. McKay, special attorney for the circuit, is understood to be ready to deliver a strong oral attack upon the Government's sweeping pmposals in the course of argument against the motion. Schine has yet to file a brief answering the Government's recommendations. 2 Australia Quotas Loom, 1 to Aid UK Two film quota statutes are due to be adopted by the Australian government before next spring, according to reports reaching here at the weekend from Sydney. One will require that Australian theatres devote three per cent of their playing time to Australian-made product, and the other will guarantee IS per cent of the playing time for British product. Tkackrey-WB Deal Is Upheld by FCC Washington, Oct. 31.— Federal Communications Commission ruled on Friday that New York publisher Dorothy Thackrey may sell her Los Angeles television station, KLAC-TV, and radio stations KLAC, Los Angeles, and KYA, San Francisco, to Warners in a single package. Ed Pauley, seeking to compete for the video station, had challenged her right to sell the three for $1,045,000 without stating individual prices for the three properties. 3 Warner Brothers In WB Stock Deals Washington, Oct. 31. — Changes in the holding of Warner Brothers common stock by Albert, Jack and Harry Warner headed the list of stock trading by company officers and directors in motion picture stocks, a Securities and Exchange Commission report reveals. The report covers the period from Sept. 11 to Oct. 10. Albert Warner bought 1,000 shares of his firm's common, bringing his holdings to 436,200, in addition to trust holdings of 21,000 shares. Harry M. Warner gave away 1,200 shares, dropping his personal holdings to 283,150 shares. There are 16,000 shares in his trust account. Jack Warner bought 10,000 shares, but gave 1,500 shares to the United Jewish Welfare Fund, making a net increase of 8,500 in his personal holdings, which now total 426,500 shares. His trust owns 21,500 shares. At RKO, N. Peter Rathvon continued to dispose of his stock, selling another 400 shares and dropping his (.Continued on page 6) FP-C in Move for Theatre Television Ottawa, Oct. 31. — Applying to Canadian Broadcasting for permission to establish a television station, which would be the first in Canada, J. J. Fitzgibbons, president of Famous Players-Canadian Corp., said his company would hook up its television outlet with the Imperial Theatre in Toronto, and show telecast shows on its screen with the Victoria Theatre being used to stage "live" talent shows for television. He estimated the company will spend about $2,000,000 before its tele (Continued on page 6) R-K-0 APPROVES DIVESTING PLAN Odium Off, Hughes On RKO Board Hollywood, Oct. 31. — The RadioKeith-Orpheum board of directors at its meeting here yesterday accepted the resignation of chairman Floyd B. Odium, Harry M. Durning and L. Boyd Hatch, each of whom is a director of Atlas Corp. To fill two of the vacancies made by the resignations, Howard Hughes and Noah Dietrich were elected to the board. The chairmanship of the board, made vacant by Odium's resignation, was not filled at the weekend meeting. The resigning directors stated the reason for their resignations was to avoid any possible conflict between their duties to Atlas and their desire (Continued on page 3) Nine More Hearings In FTC Ad-film Case Washington, Oct. 31.. — The Federal Trade Commission has scheduled hearings in nine more cities on its complaints against four advertising film companies alleging "unfair methods of competition tending to restrain trade and create monopoly in the sale of commercial advertising films." The FTC has been taking testimony in the case intermittently for more than a year. Defendants are : RayBell Films, St. Paul; Alexander Film Co., Colorado Springs ; United Film Ad Service, Kansas City ; Motion Picture Advertising Service, New Orleans. The newly-scheduled hearings are : Nov. 8, Minneapolis ; Nov. 10, Des Moines ; Nov. 12, Omaha ; Nov. 15, Kansas City; Nov. 16, Chicago; Nov. 22, Dallas; Nov. 24, Houston; Nov. 29, New Orleans; Dec. 2, Atlanta. Kans.-Missouri Allied Sets Dec. 7 Meeting Kansas City, Oct. 31. — Discussion of industry problems will be on the agenda of a general membership meeting of Allied Independent Theatre Owners of Kansas and Missouri on Dec. 7 here, it was decided at a board meeting late last week. A delegation of 15, headed by O. F. Sullivan, president of the Kansas-Missouri unit, was named to attend the Allied States national convention in New Orleans. Court, Stockholders and U. S. Still Must Act on Theatre Divorce Program Hollywood, Oct. 31. — RadioKeith-Orpheum Corp., through Ned Depinet, its president, announced yesterday that the corporation's board of directors has authorized its executives to enter a voluntary agreement with the Department of Justice, subject to approval of the United States Court, whereby its production and distribution properties eventually will be separated from its theatre properties. The court will be asked to enter a decree which has been tentatively approved by the Department of Justice in the industry anti-trust suit. It would incorporate provisions agree (Continued on page 3) Ascap Calls Bid for Payments An Error A report by Allied Theatre Owners of Indiana in its organization bulletin that Ascap is pressing for music fees from exhibitors by way of suggesting possible infringement action is substantially denied by the society. "Ascap is now sending out 'pink slips' notifying exhibitors who have not paid their license fees in accordance with their contracts that they may be sued for infringement," the theatre organization reported. An Ascap spokesman declared here on Friday that the society is not forcing the issue of collection with exhibitors who withhold payments although it conceded that a local Ascap branch might have done so by "error." Beatty To Manage for E-L; Lee Is Shifted William J. Heineman, Eagle-Lion distribution vice-president, has appointed J. M. Beatty manager of Des Moines branch, to succeed F. J. Lee. Lee will manage the Eagle-Lion exchange in St. Louis. No Paper Tomorrow Motion Picture Daily will not be published tomorrow, Election Day, a legal holiday.