Motion Picture Daily (Jul-Sep 1950)

PICTURE VOL. <^=^VO. 25 DAILY NEW YORK, U S. A., MONDAY, AUGUST 7, 1950 TEN CENTS Talk Deal for Hughes' Stock In Picture Co. Lawrence Green Bids for RKO Production Control While negotiations are continuing at top-speed on Howard Hughes' sale of his eventual controlling stock interest in the divorced RKO Theatres to Harry Brandt's Trans-Lux Theatres Corp., Hughes also has been approached for possible purchase of his holdings in RKO production-distribution. When RKO's reorganization plan is completed on Jan. 1, 24 per cent of the i stock of the two new companies to be formed will pass to Hughes. He is legally required to relinquish control of one of the two. Bidding for the production-distribution shares is L. Lawrence Green, former RKO board member, who, when asked about a deal said, "talks are going on but it is still in the embryonic stage." He would neither confirm nor deny that he has offered approximately $3,000,000 for the stock. (Continued on page 4) USSR Registers MPEA Trade Mark Motion Picture Export Association's trademark has been registered in the Soviet Union some two years after the original application was filed, it was reported on Friday by Irving Maas, MPEA vice-president and general manager. Documents issued by the Soviet Ministry of Trade verifying the registration were received in New York this week. "Registration of the trademark does not necessarily indicate that the Russians are ready to buy American films," said Maas. "On the other hand," he added, "that country's refusal to register the trademark could have been interpreted (Continued on page 4) UA Non-Committal On US-UK Pact United Artists was the only Motion Picture Export Association member company which did not approve the new Anglo-American film agreement at the MPEA board meeting here last week, it was learned on Friday. All the other companies approved in principle the results of the recent London negotiations as reported by Motion Picture Association of America president Eric A. Johnston. Paul V. McNutt, UA board chairman, who represented the company at the meeting, indicated at that time that he was not authorized to commit UA, it was said. CALL COMPO MEET TO FACE CRISIS NLRB Hears SAG Bid for Elections Hollywood, Aug. 6. — Informal hearings on petitions by the Screen Actors Guild for three elections, to cover studios belonging to the Association of Motion Picture Produc| ers, the Society of Independent Motion Picture Producers and the Independent Motion Picture Producers Association respectively, were held (Continued on page 2) Lazarus, Jr., Leaving U.A. Paul N. Lazarus, Jr., on Friday announced his resignation as acting general sales manager of United Artists. The last ranking executive of the former Gradwell Sears regime, Lazarus had been assured of continuity with the company, but it is understood the offers made to him by the new management lacked terms definitive enough to satisfy him. Consequently he decided to resign (Continued on page 4) Paul N. Lazarus, Jr. RKO May Buy Out Reade RKO Theatres and Walter Reade are underway with negotiations on splitting their partnership in the ownership of Trenton-New Brunswick Theatres with the talks centered on RKO's purchase of the Reade interests. Under order of the New Jersey Superior Court, Trenton, the two must agree to some form of settlement on the split or a decree directing dissolution of the joint operation will be entered on Thursday. At one time, RKO, which owns 50 per cent of the 12-theatre circuit, offered to buy out the interests of Reade and the estate of Frank Storrs, which Reade represents, at a cost of $1,600,000. The proposal was cut to $1,500,000 subsequently but Reade refused, countering with a proposal to buy out RKO at the book value of the stock, which was considerably less than the RKO bid. The dispute led to the court action instituted by RKO seeking dissolution of the divided ownership. Ia.-Neb. Allied Asks ELC Omaha Office Eldora, Ia., Aug. 6 — Allied Independent Theatre Owners of Iowa and Nebraska has adopted a resolution strongly protesting the closing of the Eagle Lion Classics offices in Omaha and "urgently demanding" that ELC reopen and maintain an office in that city "for the convenience and service of Omaha exchange territory. (Continued on page 2) $13'A-Million Films Budget Asked for 'Truth Campaign ' Washington, Aug. 6. — A budget for motion picture spending of nearly $13,500,000 is included in the State Department's "truth campaign" plans, hearings before the House Appropriations Committee released Friday revealed. Authority to spend $11,017,833 in the current fiscal year in addition to the $2,450,000 provided for in the general appropriation bill now approaching a Senate vote was asked. The additional sum includes an item of $3,845,237 earmarked for additional film production. It is to include, Herbert Edwards, head of the film operation, told the Congressmen, 221 reels — 53 of documentaries, 40 of animated cartoons, 70 of news magazines and local coverage, 58 reels for a feature cartoon and weekly newsreels. In addition, 196 reels are to be acquired from the motion picture industry and private producers for $276,000 — about $1,408 per reel. Edwards asked for funds to the equiv(Continued on page 4) Executive Committee Is Summoned Here Wed. to Decide Future Course A crisis in the continuity of the Council of Motion Picture Organizations will be faced at a meeting of the executive committee called for the Hotel Astor here on Wednesday, it was learned at the weekend. The crisis arises from objections which have been raised by member COMPO units, notably Theatre Owners of America, to the recently adopted COMPO resoluton providing for industry cooperation with the government during the war emergency through COMPO. TOA, primarily, has taken exception to the resolution, insisting upon retention of its individual, organizational freedom of action in whatever its members may be called upon by government agencies to do in furtherance of the Korean war effort. COMPO's executive committee is (Continued on page 4) Rembusch Assails COMPO Dissidents Franklin, Ind., Aug. 6. — Allied States president Trueman T. Rembusch hit at opposition groups within the Council of Motion Picture Organizations in a statement released here on Friday, which said "we are amazed and disappointed that in the emergency growing out of the Korean situation any faction in the motion picture industry should withhold complete cooperation." Stressing that Allied States led the way in asking for industry cooperation with the government through COMPO, Rembusch said that "if the tremendous opportunity for united industry action is destroyed by (Continued on page 4) Senate Group Also Bans Ticket Ceiling Washington, Aug. 6. — The Senate Banking and Currency Committee voted Friday to exempt motion picture tickets and advertising rates charged by the press, radio and other media from any possible future price control. It adopted the same amendment the House had voted a day earlier to its Economic Controls Bill.