Motion Picture Daily (Oct-Dec 1948)

Motion Picture Daily Thursday, November 4, 19*! Personal Mention ROBERT MOCHRIE, RKO Radio domestic distribution vice-president, is in Los Angeles from New York. • Mrs. Joan Golding Machson has returned to her publicity post at Margaret Ettinger Co., industry public relations firm here, following a month's absence, during which she was married. • William B. Jaffe, industry attorney, has returned here from Schenectady where he participated in ground-breaking ceremonies for a new fraternity house at Union College. • Ned E. Depinet, RKO president, will be a dais guest at the Ampa luncheon here tomorrow at the Hotel Piccadilly. • Arthur W. Kelly, United Artists executive vice-president, will return to New York from Hollywood next week. e William J. Clark, executive vicepresident of National Film Service, has left Philadelphia for a Midwestern tour. • Anthony Havelock-Allan, British producer, will arrive here tomorrow on the SS Queen Elisabeth. • Ed Hinchy, head of Warner Brothers' playdate department, is in Cleveland today. • Bernie Kreisler has returned to New York following a 13 months' study of film operations in Europe. • Dr. Renato Gualino, vice-president of Lux Film S.A., Rome, is due here Saturday on a business visit. • Max Weinberg, M-G-M's Eastern short subjects representative, returns here from the Coast Monday. • Sam Bischoff, producer, is here from Hollywood. Joseph Bernhard, Film Classics president, is in Hollywood from here. Insider's Outlook -By RED KANN Special MOT on Pope Release of its new special two-reel 16mm. film, "The Vatican of Pius XII," filmed in the Eternal City by special permission of the Pope, has been announced by March of Time. Library Films of New York will distribute the film, which will be available with English, Spanish and French narrations. The picture shows exclusive scenes of the Pope, and varied activities of Vatican City. Promote Johnston Book Eric Johnston, president of the Motion Picture Association of America, will be honor guest at a luncheon to be given today at the St. Moritz Hotel, New York, for book reviewers by E. P. Dutton Co., publishers of Johnston's new book, "We're All in It." THE larger significance of the proposed separation of RKO theatres from RKO production and distribution appears to be overlooked in the maelstrom of rumors and. speculations about who is going to get what. That significance, it seems to us clearly enough, is in the alteration of industry pattern which such an arrangement suggests. In voluntarily proposing an agreement with the Department of Justice, RKO is technically and actually proposing a reshuffle which it is under no compulsion to make although it might be argued the Government finally will win its longstanding fight for theatre divorcement. No such state of affairs exists up to now, however. ■ Consequently, by its own decision and regardless of how reached, RKO becomes the first of the five producer-distributorexhibitor companies to step away from exhibition. It dents the five-company front, establishes a precedent and undoubtedly places in the hands of the Department of Justice a factor of considerable weight in its future dealings with the four that remain. Little wonder Bob Wright has been chewing his fingernails in figurative excitement as he awaited technical and legal consummation of the proposal. It is not difficult to imagine him in a future courtroom rebutting argument that divorcement is not possible when RKO already has done it. It, therefore, appears reasonable to conclude the strategic position of Paramount, Loew's, 20th-Fox and Warner will undergo an important change. As for the RKO move itself, there is much to be clarified. There seems no reason to question Floyd Odium's right of first rejection on whatever bids may be entered for the controlling stock which Howard Hughes will hold in the theatre company. Whether the current RKO stock structure splits up on a basis of one share in RKO, the producerdistributor, and one share in RKO, the exhibitor, or otherwise actually makes little difference. The ratio of the stock spread in the theatre company in relation to the holdings in the existing company will be unaffected. Moreover, the arrangement with the Justice Department is clear on one other very vital point. Hughes may elect to remain in production and distribution or he may cast his ballot for exhibition, but he cannot remain in both. His decision seems hardly in doubt. ■ It is accepted widely that he will decide on production, thus opening the field on bids for the theatre stock. Much speculation is afoot about Odium's actual objectives in the situation. If he meets whatever competitive offers show up — Bob O'Donnell has been mentioned [without any validity whatsoever, he wired from Dallas yesterday], Wall Street groups are reported interested, Malcolm Kingsberg is not disinterested — his very close relationship with N. Peter Rathvon could bring the latter into the picture. Or perhaps Odium ownership would continue under the current theatre management headed by Kingsberg and Sol A. Schwartz. Undisclosed in the company's careful press release issued over the weekend was the matter of warrants. There are several millions outstanding. They give their holders the right to buy the present RKO stock at $15 a share and expire at the close of 1950. It seems logical some provision was made for them in the contemplated corporate separation, but on what basis no one was in a position to say late yesterday. Or would. ■ And, finally, since RKO intends abandoning the old-line front by voluntary action, concessions appear in order. One of them, on the Government's side, is said to be an assurance the new theatre company may proceed on an even keel without worrying about a Government suit demanding that it, in turn, submit to divorcement as long as corporate behavior is what Justice deems to be correct and proper. Another, on RKO's side, insisted that it dispose of its minority interest in the Butterfield circuits and several partnerships in the metropolitan New York area. ■ ■ Post-Election Note : From Martin Agronsky, well-known radio commentator : "It has been suggested that the poll takers [George Gallup, Elmo Roper, et al] take over as editors of the Literary Digest." Foundation Dinner To Simon Fabian The 12th annual dinner of the.M' Cosker-Hershfield Cardiac Foundatk:] will be given in honor of Simon £| Fabian, head of Fabian Theatres, the Waldorf-Astoria on Saturdaj night, Dec. 4. The tribute will be f| Fabian's many philanthropic serviced Among the SO who are sponsorint the dinner are : Attorney General Ton C. Clark, Emil Friedlander, Postmas ter Albert Goldman, Walter Vincen. Vincent Impelliteri, James rJiatiLyon Justice Ferdinand Pecora, Jgo I Rogers, Franklin D. Roosevelt, Jr John Cashmore, Everett R. Clincrn Rt. Rev. Msgr. Fulton J. Sheen, Edd'i Cantor. 1,500 Disabled 'Vets To 'Night of Stars' Funds are now being raised to en able more than 1,500 disabled veteran to attend the forthcoming 15th annus "Nights of Stars," all-star show whic will be held at Madison Square Gar den here on Monday evening, No\ 15, it was announced by Mrs. Tei Lewis, chairman of the women' division. Heading the show's production com mittee is Robert M. Weitman, manag ing director of the New York an< Brooklyn Paramount theatres. General Precisiot Net Is Almost Doubh General Precision Equipment Corp and subsidiaries report that consoli dated net operating profit for the three months ended Sept. 30 was $323,174 after provision for Federal income taxes, subject to year-end adjustments This compares with a net of $174,30 for the same quarter in 1947. Directors of General Precision yes terday declared a dividend of 25 cents per share on capital stock outstanding payable Dec. 10, to stockholders o record on Nov. 19. Film Stocks Tumble {Continued from page 1) Columbia, off five-eights ; Eastman Kodak, off two points ; Loew's, down seven-eighths ; Monogram, one-quarter ; Paramount, one point ; RKO, five-eighths ; Republic, common and preferred, each down one-eighth ; 20thFox, down one and one-eighth; Technicolor, one-half; Universal common, three-quarters ; Warner, down onehalf. Among the heavy film share disposals were the 16,400 shares of Loew common ; 20,800 of Paramount ; RKO, 5,500; 20th Century-Fox, 6,000; Universal common, 2,700; Universal preferred, 5,000; Warner, 11,100. Election Newsreel A Pre Release Issue The five newsreels were working at top speed here last night to bring the footage of the Truman victory to theatres this afternoon. The reels were preparing to issue the election newsreels as a pre-release. Decision on whether the election story would constitute the entire reel had not been determined. MOTION PICTURE DAILY, Martin Quigley, Editor-in-Chief and Publisher; Sherwin Kane, Editor; Martin Quigley, Jr., Associate Editor. Published daily, except Saturdays, Sundays and holidays, by Quigley Publishing Company, Inc., 1270 Sixth Avenue, Rockefeller Center, New York 20, N. Y. Telephone Circle 7-3100. Cable address: "Quigpubco, New York." Martin Quigley, President; Red Kann, Vice-President; Martin Quigley, Jr.. Vice-President; Theo. J. Sullivan, Vice-President and Treasurer; Leo J. Brady, Secretary; James P. Cunningham, News Editor; Herbert V. Fecke, Advertising Manager; Gus H. Fausel, Production Manager; David Harris, Circulation Director; Hollywood Bureau, YuccaVine Building, William R. Weaver, Editor; Chicago Bureau, 120 South La Salle Street, Editorial and Advertising. TJrben Farley, Advertising Representative; Jimmy Ascher, Editorial Representative. Washington, J. A. Otten, National Press Club, Washington, D. C. London Bureau, 4 Golden Sq., London Wl. Hope Burnup, Manager, Peter Burnup, Editor; cable address, "Quigpubco, London." Other Quigley Publications: Motion Picture Herald; Better Theatres and Theatre Sales, each published every fourth week as a section of Motion Picture Herald; International Motion Picture Almanac, Fame. Entered as second class matter, Sept. 23, 1938, at the post office at New York, N. Y., under the act of March 3, 1879. 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