Motion Picture Daily (Oct-Dec 1949)

Monday, October 3, 1949 Motion Picture Daily 3 K-B Claims (Continued from page 1) illegal by the Supreme Court, and therefore could not be enforced in Federal courts. K-B sued to force Stanley out of the jointly-operated Mac Arthur Theatre on terms provided in a January, 1946, contract, under which K-B would acquire the MacArthur on comparatively good terms. Stanley countered with a suit to dissolve the company and have its assets sold publicly. A third party, Kass Realty Co., entered the case asking the court to enforce another section of the contract under which the partners agreed to designate a site on which Kass was to build a new theatre for the partnership or to pay Kass $100,000. Said Contract Illegal McGuire dismissed all three suits on the ground that the basic contract was illegal. All three parties are appealing. "The contracts between K-B and Stanley for the joint operation of the MacArthur Theatre were not illegal per se," K-B said in its brief. "Nothing in the Sherman Anti-Trust Act nor in US, v. Paramount makes joint undertakings such as the MacArthur illegal per se. The reason divorcement was ordered by the Supreme Court was that joint ownership would afford opportunity to Warner Bros, and the other distributors 'to perpetuate the restraints of trade which the exhibitor defendants have inflicted on the industry.' There was no claim or finding that the independents, and in particular K-B, were parties to the nationwide restraints inflicted on the industry by Warner Bros. Furthermore, the doctrine of illegality will not be invoked where enforcement of a contract provision will aid in making effective the very public policy which the statute was designed to achieve." Claim Step Sanctioned K-B said that the only illegality in joint ownerships now was the continued participation by a major or their termination by a major acquiring the independent's interest. "A transfer of interest such as is sought in this action is not only legal but is one of the only two alternative means of dissolution which will be sanctioned under the opinion of the Supreme Court," it declared. Kass also filed its brief Friday, declaring that if neither Stanley nor Warner is allowed to designate a site for a new theatre, the courts should order them to pay $100,000. Stanley is expected to file its appeal late in the month. Argument and decision are expected early next year. Production Drops To New Low of 23 Hollywood, Oct. 2. — The number of productions in work again dropped to a new low of 23 this week. Six new ones went before the cameras and eight were completed. Started were : "Trail of the Rustlers," Columbia ; "Never Fear," Independent ; "The Reformer and the Redhead," M-G-M ; "Bomba on Panther Island," Monogram ; "Twilight in the Sierras," Republic; "Carriage Entrance," RKO Radio. Completed were : "Rogues of Sherwood Forest," Columbia ; "Guilty of Treason," Independent; "United States Mail," Paramount; "Pioneer Marshal," Republic ; "Dynamite Trail," RKO Radio; "Cariboo Trail,'' 20thFox; "Champagne for Caesar," U.A. ; "After Nightfall," Warners. Asks FCC to Provide For Color Video Now Washington, Oct. 2. — Development by the Radio Corp. of America of an all-electronic color television system enables the Federal Communications Commission to lift the television "freeze" immediately and allocate ultra-high frequency channels, with provision for color service on these same channels used in blackand-white television transmission, Dr. E. W. Engstrom, vice-president in charge of research, RCA Laboratories, declared at a hearing before the FCC here. "We believe," said Dr. Engstrom, "that it is now clear that color television may be scheduled for sixmegacycle channels, VHF as well as UHF, and that compatibility is assured. The Commission may lift the freeze with confidence and proceed with UHF allocations knowing that color will find its place as a broadcast service in an orderly fashion." Para. TV System in B&K House Idle Chicago, Oct. 2. — The Paramount intermediate television system installed at the Balaban and Katz flagship house, the Chicago, has been in idleness since its one experimental show last summer, and there are no concrete plans for a future scheduled show. B. and K. executives have sought rights to several large scale sporting events, including the forthcoming World Series games, but costs in the latter instance were prohibitive. In another case, B. and K. was unable to obtain channel rights to last summer's Wolcott-Charles fight. It is understood that heads of B. and K. and WBKB, the circuit's privatelyowned TV station, have different viewpoints on the type of format to be adopted for future tele-transcription shows at the Chicago. For the present, at least, a solution has not been reached. Head-Hunting Film Due What is said will be the first documentary feature on head-hunting will be produced by Lewis Cotlow and Julian Lesser. Picture, slated for release early in 1950, will be titled "Head-Hunters of the Amazon," Cotlow said, reporting that he shot recently over 50,000 feet of color film in Brazil's Amazon River territory. First TV Cuts Grosses ' Kansas City, Oct. 2.— Theatre grosses dipped as much as 35 per cent last Thursday evening when Kansas City's new television station owned by the Star telecast the dinner for William Boyle, with President Truman as the main speaker. Regular TV programming does not get underway until Oct. 16. Ad Accessories Up 15% Toronto, Oct. 2. — Because of devaluation and increased cost of production prices to exhibitors of advertising accessories will be raised 15 per cent by the major film distributing companies of the Dominion effective Oct. 8. To Vote on Sunday Shows Covington, Tenn., Oct. 2. — November 8 is the date set by the local City Council for a vote on Sunday films in answer to a request by theatre operators for a referendum. RKO-Reade Split (Continued from page 1) cent of the circuit. However, he controls the 25 per cent held by the Frank Storrs estate. RKO has the remaining 50 per cent. About two years ago RKO offered to buy or sell at $1,600,000. The company since has lopped off $100,000 of what it considers market value of its interests. Deadline for the dissolution at present is Nov. 8. In the event an accord is not reached with Reade by that date, RKO probably would place the issue before the New York Federal court. Meanwhile, still pending is RKO's request for more time to effect divorcement of its production-distribution branches from its exhibition branch and while the company feels a substantial extension of the present Nov. 8 deadline will be allowed, it had no official word from the Department of Justice at the weekend. New MGM Air Shows (Continued from page 1) dent in charge of advertising-publicity, will serve as "host" on each program of the transcribed series which will be produced by Raymond Katz. Marx Loeb will direct, assisted by Edgar Small. _ Numerous other independent stations in the U. S. and Canada will carry the programs. Initial dramatization will be "Vacation From Marriage," starring Deborah Kerr. Subsequent programs scheduled include "Johnny Eager" starring Van Heflin ; "The Canterville Ghost," Charles Laughton ; "Shopworn Angel," Margaret Sullavan ; "Married Bachelor," Burgess Meredith ; "The Citadel," Fredric March and Florence Eldridge; "A Stranger in Town," Edward Arnold ; "The Prizefighter and the Lady," John Garfield ; "Anna Karenina," Marlene Dietrich ; "The Youngest Profession," Margaret O'Brien, and "H. M. Pulham, Esq." with Brian Aherne. MGM Slates (Continued from page 1) ver City studios have not yet been scheduled for release. Six others are in various stages of work. Of the 16 scheduled for production, nine will go before the cameras this month and the balance next month. Realart Sales Staff Additions Make 85 Realart Pictures has increased its national sales staff from 70 to 85 in the past year, the company reported with the announcement that C. S. (Chan) Carpenter has been appointed branch manager-salesman in San Francisco. Carpenter has been variously a booker, salesman and office manager for Universal, Lippert and Film Classics. Meanwhile, in Dallas, the exchange there owned and operated by John Franconi and Clair Hilgers has joined Realart as Realart Pictures of Texas. Dawson B. Smith has been appointed office manager. Aims to Kill War Tax Washington, Oct. 2. — Sen. Wayne B. Morse, Oregon Republican, included the repeal of the wartime increase in the admissions tax as one element of a general tax revision bill he introduced in the Senate on Friday. TOA Moves (Continued from page 1) following to the committee which is expected to move immediately for eon-' ferences with distributor groups : Walter Reade, Jr., New York, chairman ; Max Connett, Newton, Miss. ; Harry Vinnicof, Los Angeles ; E. Russell Hardwick, New Mexico ; B. D. Cockrill, Denver ; Sam Kirby, Little Rock; Arthur H. Lockwood, Boston ; Leonard Goldenson, New York; Robert Wilby, Atlanta; S. H. Fabian, New York; Ted R. Gamble, New York; Lewen Pizor, Philadelphia; Sidney Lust, Washington; Albert Pickus, Stratford, Conn. ; Tom Edwards, Farmington, Mo., and TOA executive director Gael Sullivan. In announcing the appointments, Pinanski said he hoped an early meeting could be arranged between the committee and distributor groups to work out the exhibition problems cited by the TOA convention. The convention approved a report recommending that competitive bidding be done through the form of sealed bids, with the definite provision that all terms and conditions of each bid be disclosed to ■ bidders immediately after the award. Some distributor executives have indicated privately that they oppose such a provision. The TOA distributor-exhibitor relations committee was authorized to devise and attempt to work out with the distributors a method to establish an arbitration tribunal for the airing of exhibitor-distributor complaints and grievances operating under a fair trade code covering industry disputes without the necessity of going to law. The committee was instructed also to seek a "more practical pattern of availabilities" in its conference with distributor representatives. It was allowed that any new "pattern" could be subject to the approval of either the court or Department of Justice, and that the latter could be consulted on the development of a trade practice code. May Liberalize Tax (Continued from page 1) Congress this week, the idea being to stimulate private investment abroad as part of the four-point program for developing "backward" areas. Among "liberalizations" being considered are easing of the limitations now imposed on the credit allowed for taxes paid to foreign countries and permission for domestic corporations to treat income from their branches and agencies abroad in the same manner that income from foreign subsidiaries is now treated. Income from foreign subsidiaries is not taxed until it is actually remitted, but income of branches and agencies is taxed when earned, even if frozen abroad. Bolstad Heads Drive Against Ontario Tax Toronto, Oct. 2. — The first move in a campaign for a reduction of Ontario's 20 per cent amusement tax by the motion picture branch of the Toronto Board of Trade has been the election of R. W. Bolstad, vice-president of Famous Players-Canadian Corp., as chairman of the organization's tax committee. He replaces J. Earl Lawson, who is ill. George H. Peters was named to the committee to represent Canadian Odeon, of which Lawson is president. The committee will draw up plans for consideration at a meeting on Nov. 8.