Motion Picture Daily (Jan-Mar 1951)

Motion Picture Daily Friday, March 2, 1951 Expect 'Freeze' Thaw Despite 'Walkout' Washington, March 1 — Spokesmen for Hollywood producers and talent guilds said here today that they did not think labor's walkout on Wednesday from the government's mobilization agencies would delay action on their request for relief from the wage freeze. They said they still felt that an answer would come from the Wage Stabilization Board within the week. Heineman-UA (Continued from page 1) Skouras on Income Pool (Continued from page 1) tion in future profits. A similar arrangement reportedly was included in the deal by which Max E. Youngstem joined U. A. the first of this week as vice-president in charge of advertisingpublicity. Heineman replaces Gradwell L. Sears, who continues with the company for the term of his existing contract on a special assignment and advisory basis. An announcement is expected today from ELC of the appointment of Bernard Kranze as vicepresident in charge of distribution, succeeding Heineman, and of Milton Cohen, ELC Eastern division manager, as sales manager succeeding Kranze. Both Heineman and Youngstein previously were associated with Krim in the formation and development of Eagle Lion Films, of which Krim was president. Heineman entered the industry in 1918 as a booker for Pathe in Seattle. He held executive distribution posts in the West, rising to Western sales manager for Universal in 1938. In 1941 he was named Universale assistant general sales manager; he became sales manager of Samuel Goldwyn Productions in 1943, and was appointed vice-president and general sales manager of United World Films in 1946, and subsequently was named sales manager and a director of the J. Arthur Rank Organization here. Heineman joined Eagle Lion in 1948. not accepting pay as vice-president was because his actual services had been given at irregular intervals. His deposition indicated that he did not take compensation after becoming president last Oct. 1 because he did not feel that anything from that position should be paid into the income pool which he and his brothers, Spyros and Charles, maintained for their earnings within the industry. End of Pool He testified that the termination of the income pool last Jan. 1 was due to his own decision on becoming president of UATC Skouras denied having heard anything at all from the Department of Justice prior to his decision to terminate the pool. He agreed yesterday to produce his contract as UATC president for Joseph Alioto, Goldwyn attorney. The contract is expected to show that Skouras was employed by UATC as president for a five-year period at $130,000 annually under an arrangement by which Metropolitan Playhouses pays $30,000, Skouras Theatres $25,000 and UATC $75,000. Also, the contract is believed to carry a provision which reduces the payment from UATC by 50 per cent in the event of losses by that circuit. Skouras's deposition showed that it was in 1931, not 1937 as reported by Motion Picture Daily yesterday, that Atlantic circuit, of which he was a minority owner, abandoned plans to enter the neighborhood-run situation in Philadelphia. He said the instructions not to go into the territory came from within Paramount, which owned 75 per cent of Atlantic, and Skouras believed they had been issued because of the death of Sam Warner, out of concern for the surviving Warner brothers. Alioto had been endeavoring to show that agreements existed among major theatre operating companies to divide the nation into exhibition territories. Carbon Output (Continued from page 1) That allegation was made by the government in the Paramount case but was never proved in the 12 years of proceedings in that action. Skouras denied he knew of any agreements between companies not to compete with each other in specific areas. However, he denounced a 1935 pooling of theatres in Hackensack, Jersey City and Elizabeth, with Warner's subsidiary, the Stanley Co. of America, as forced upon him when Metropolitan Playhouses was in 77-B reorganization proceedings. He said the whole "Broadway bunch" had ganged up against him at the time, naming Goldwyn as well as all of the major companies. Weisman Objects Milton Weisman, Skouras's attorney, objected .to details of the Jersey pooling being given, asserting that it may be the subject of a suit, and their case should not be disclosed. Skouras testified that Joseph Bernhard, then head of Warner Theatres, and Don J Cox acted for Stanley Co. in the pool He said his theatres got the slough-off pictures and Warner the good ones, but the pool was renewed in 1943 and was not terminated until 1947, he added. Skouras also said that a pool involving five of his theatres in Astoria, L. I., had been dictated by Loew's in 1936. The deposition was given in Weisman's office and reporters were barred for the second day. Alioto, who will leave here for the Coast today, said he hopes the $6,750,000 treble damage action against National Theatres, Fox West Coast and others, alleging discrimination in the booking of Goldwyn pictures, can go to trial this summer. He is scheduled to take the deposition of Spyros P. Skouras on March 20, either here or on the Coast, and that of Joseph M. Schenck in April. He said additional depositions will be taken of Charles P. Skouras and John Bertero next month. Okays UPT (Continued from page 1) of theatres UPT may own under the terms of the original consent decree. UPT was represented by George Gallantz of the New York law firm of Simpson, Thacher and Bartlett. Gallantz indicated UPT's acceptance of the amendment, and found himself joined with Marcus in defending the document against the attacks of Washington attorney Russell Hardy, former Department of Justice attorney, who spoke on behalf of St. Louis Amusement Co., Fanchon and Marco and a number of other Midwest and Far West circuits. Hardy argued that "powerful" competition in film-buying would be created for his clients with UPT's takeover of the Interstate Circuit. Some of his clients had previously appeared in opposition to other phases of the Paramount case. Yesterday, Judges Hand, Goddard and Coxe signed the amendment after approximately one hour's argument. 20th-Fox Case Marcus said following the hearing that he had not met here with 20th Century-Fox attorneys regarding a possible postponement of the March 5 deadline for the company to file its divorcement plan. He indicated, however, that he would remain in New York for a few days before returning to Washington. It was held likely, therefore, that he would confer today with Otto E. Koegel, 20th-Fox counsel. Asked if he would agree to a postponement of 30 days — understood to be the extra time being sought by 20th-Fox, Marcus said, "No comment." Chicago Suits (Continued from page 1) UA Releases (Continued from page 1) said to be due to an embargo on ship ments to the U. S. from the two main foreign sources, India and Brazil. In dia's embargo has been in effect since 1946, but the Brazil embargo is very recent. With an increasing demand for some of the elements used in atomic energy and other defense pro grams, processors of the sand are now compelled to fall back on domestic production. This, they estimate, will supply less than one-third of U. S needs during the coming year. One industry official said that unless some relief is forthcoming, there may have to be serious cutbacks — possibly 50 per cent or more — in the production of industry equipment using carbons. Some attempt is under way to get Congress and the government's defense agencies alerted to the problem. One possible solution would be to require India to ship some monazite sand to the U. S. before it gets any of the emergency aid now being voted by Congress. Boyer, April 27; "The Prowler," S. P. Eagle, producer, May 4, and "He Ran All the Way," starring John Garfield and Shelley Winters and produced by Bob Roberts, May 11. Additional completed or near-completed product is being lined up by the company rapidly to fill out the release schedule until the delivery of product under new deals now being negotiated begins. Warns Tax Would Destroy Theatres Buffalo, March 1. — The proposed local five per cent tax on admissions would be absolutely destructive of the theatre business, said Sidney B. Pfeiffer, attorney represeting the Theatre Owners Association of Buffalo at a hearing before the city council. Pfeiffer said Buffalo theatres' most active competition comes from outdoor theatres outside the city and that if the additional tax is imposed in Buffalo it will "simply mean that patronage will be driven over the city-line to outdoor theatres." 12th T he at re for Capital Circuit Washington, March 1. — District Theatres Corp. will take over operation of the "Senator Theatre in Northeast Washington on March 13, District Theatres president Harry Freedman discloses. The 950-seat Senator, operated by the Kogod-Burka group since its opening in 1941, is owned personally by Fred S. Kogod. District, which operates 11 other houses in Washington, all catering to Negro patrons, will run the Senator on the same basis. Sopeg-Para. Issue (Continued from page 1) its Family Outdoor Theatre in the Waukegan area. Essaness Theatres was given until April 20 to answer charges brought against it in a $500,000 suit filed Dec. 19, 1950 by Emil Stern, ex-Essaness general manager. Stern claims he was "wrongly induced into selling 250 shares of Essaness capital stock for less than its true value." The majors, B. and K. and Great States were given until March 30 to file briefs in the $150,000 anti -trust suit filed against them by the Starview Drive-in Theatre. Plaintiff says the defendants consipred to keep the drivein from bidding for first-run product in the Elgin, 111., area. Towne Theatre Suit An appeal in the $1,250,000 Towne Theatre of Milwaukee anti-trust case will be heard in the Circuit Court of Appeals on April 10. Towne won the case over a year ago after a lengthy court battle. Early this week Balaban and Katz filed a notice of appeal from Judge Igoe's decision in the Jackson Park case, in which the court refused to modify the Jackson Park decree. Yesterday, However, H-63's counsel filed with the board an objection to having to turn affidavits over to the "IA" local's jurisdictional rivals and contended at the same time that H-63 was informed originally by the NLRB that such a procedure was not to be followed pending the holding of an election among Paramount's employes. H-63 now is awaiting further instruction from the Board. Mars Suit Is Dismissed Chicago, March 1.— The $1,000,000 civil suit brought against M-G^M and Louis B. Mayer, by the Mars Music Co. of Chicago, was dismissed today in Federal Court, for want of prosecution. The plaintiffs, who failed to follow up their charges, had claimed the defendants infringed on song copyrights.