Motion Picture Daily (Jan-Mar 1951)

VOL. 69. NO. 49 MOTION PICTURE DAILY NEW YORK, U.S.A., TUESDAY, MARCH 13, 1951 TEN CENTS Higher Fees Seen for LA Distribution Tied to Increased Costs Current in Industry Increased distribution fees are indicated for United Artists on future contracts with independent producers. Current negotiations between the new UA management and producers who have sought UA as an outlet are understood to be focusing on a distribution fee range that starts with a minimum which is higher than the company's previous maximum. Heretofore, UA's distribution charge for individual pictures was variously 27% per cent and 30 per cent, depending on a number of factors, including a film's earning potential. The new charges are expected to start at around 32 per cent. Current higher costs, it is said, are (Continued on page 6) N. Y. Grosses Up; $145,000 at Hall, '14 Hours', $25,000 Grosses at New York's first-runs are on the upgrade this week and are expected to go higher as a number of theatres bring in strong product for the Easter season. Several runs, with holdover pictures, report better business for the past weekend than over the previous Saturday and Sunday. First of the Easter shows to open is "Royal Wedding" at Radio City Music Hall, which with $91,000 grossed by Sunday, looks to build to a tremendous $145,000. The annual Easter (Continued on page 3) Replies to US on Hughes Stock Sale Holding fast to the contention that a forced sale of Howard Hughes' RKO Theatres stock would be a modification of the RKO consent decree and thus would need the presentation of new evidence at new hearings, Hughes' attorney Thomas Slack yesterday filed a reply to the government brief requesting that the stock be sold (Continued on page 2) Phonevision Will Bid for Kentucky Derby 'Exclusive9 Chicago, March 12. — If Phonevision receives the approval of the Federal Communications Commission after April 1, when its present 90day test is over, one of its first steps will be to bid for an exclusive telecast of the running of the 1952 Kentucky Derby, according to E. F. McDonald, Jr., president of Zenith Radio Corp., parent company of Phonevision. Revenue to the Derby would run into the millions, McDonald predicted, saying that the Derby would have 20,000,000 spectators besides those at Churchill Downs. "I foresee Phonevision as a tremendous boon to charity," McDonald continued. "In the name of the Red Cross or some such organization, a championship fight could be viewed on TV sets all over the country at $2 per set. In addition to huge profits for the promoters and principals, the charity would undoubtedly realize up to $10,000,000 in a single night." McDonald believes Baseball Commissioner A. B. Chandler made a mistake when he sold World Series TV rights for six years for $6,000,000. "Phonevision, if approved," he said, "would net baseball $6,000,000 for just one game." McDonald is sure that Phonevision is the answer to the college football (Continued on page 6) Production Abroad Smoother: Saville Hollywood, March 12. — British production facilities as well as those on the Continent are tagging along pretty hard on Hollywood's heels and most of the production hassles that were popping up in foreign film-making two or three years ago have now been eliminated, Victor Saville disclosed on his return here from several months abroad. The producer director's return marked the end of a 25,000-mile trip, including travels in Africa, made in (Continued on page 4) ELC Books Films Into 17 NY Houses Seventeen New York Metropolitan area "art'' theatres will open day^anddate runs tomorrow with Eagle Lion Classics' "Paper Gallows" and "The Taming of Dorothy." The mass booking was arranged by Charles Amory in his new post as head of ELC's special sales unit for releases considered by the company to be designed for "art" theatres. MP A Seeking Coast Aid in 'Red' Fight Hollywood, March 12.— Edward Cheyfitz, Motion Picture Association of America executive, arrived here from Washington today to request the cooperation of Hollywood studios and gu'lds for the March 21 hearings of the House Un-American Activities Committee on alleged Communist activities here. Cheyfitz will ask that positive steps be taken by the industry here to aid in the nation's fight against Communism. U. S. Rejects Pleas Of Ad Film Firms Washington, March 12. — The Federal Trade Commission has turned down the request of several advertising film producers and distributors, including Alexander Films and General Business Films, to modify a Commission order against their exclusive screening contracts. The Commission ordered the companies to cease making any such contracts running for over a year, and to end any existing contracts that had more than a year to run from the date the Commission order was served. The companies asked the Commission to drop this last provision on existing contracts, but the Commission today refused. The companies have gone to court against the entire FTC order, and this _ court action has the effect of staying the effective date of the order. Services Today for Louis S. Lifton Hollywood, March 12. — Funeral services will be conducted here tomorrow morning at the Church of the Recessional. Forest Lawn, for Louis S. Lifton, national director of advertising and publicity for Monogram and Allied Artists, who died unexpectedly Saturday afternoon at Cedars of Lebanon Hospital, where he had undergone major brain surgery, on Friday. Lifton had become ill Wednesday morning as he prepared to leave home" for the studio, and physicians who were summoned diagnosed the illness as a brain tumor. He had rallied from the operation and appeared to be gaining strength when the end came. Lifton, 52, held the Monogram post (Continued on page 6) Rhoden Urges Spokesman for Film Industry Addresses Luncheon for Quigley Awards Judges (Picture on Page 4) The industry sorely needs an official spokesman to answer its critics and traducers across the land, Elmer C. Rhoden, president of Fox Midwest Amusement Corp., Kansas City, told directors and department heads of distribution and theatres' advertising-publicity departments at a luncheon at the Hotel Waldorf-Astoria here yesterday following the 17th annual judging of the Quigley Showmanship Awards, sponsored by the Managers Round Table of Motion Picture Herald. Rhoden expressed the hope that the Council of Motion Picture Organizations will be able to meet the need for an official industry spokesman. "As of now," he said, "no one (Continued on page 4) Theatre Telecast Of Senate Crime Probe A Hit at Fox The interest of the audience at Fabian's Fox Theatre in Brooklyn which, through theatre television, heard and saw Joe Adonis testifying before the Senate committee investigating crime impressed the management so much that the telecast, scheduled to run for about 20 minutes, was continued for 50 minutes yesterday afternoon. Fabian's Fox was one of three theatres in the Metropolitan area which picked up excerpts of the televised hearings, held at the Federal Build (Continued on page 3) N. Y. Exhibitors to Discuss Exposition A meeting of New York exhibitors for the discussion of plans for an industry exposition to be held next fall has been called for Thursday morning by Fred Schwartz, president of Century Theatres, who is chairman of an exhibitors' committee charged with making plans for improving theatre business in the New York area. It (Continued on page 3)