Motion Picture Daily (Jan-Mar 1952)

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Thursday, January 24, 1952 Motion Picture Daily 7 Raibourn Again Says DuMont Was Not 'Serious' in Offer Washington, Jan. 23.— Under cross-examination by Federal Communications Commission attorneys, Paul Raibourn today repeated his contention that Allen B. DuMont Laboratories had never made a "serious" offer of $12,000,000 for DuMont stock held by Paramount Pictures, Inc. Raibourn, vice-president of Paramount, treasurer of DuMont and a member of the board of both corporations, concluded, at the end of two days' appearance, his testimony on the question of Paramount's control of DuMont. His testimony conflicted with that given previouslv by DuMont president Allen B. DuMont, who declared that his company had made such an offer. Expect Recess Until Feb. 4 The hearing is expected to recess tomorrow until Feb. 4, when it will resume to go into the proposed merger between United Paramount Theatres, Inc., and the American Broadcasting Co., as well as into the question of whether either Paramount company or any of their subsidiaries can own television stations in the light of their anti-trust history. Tomorrow's witnesses will be Edwin Falk, DuMont's New York attorney, and J. P. Murtagh, partner in the law firm of Simpson, Thacher and Bartlett. They are expected to clear up conflicting testimony given by Dr. DuMont and Raibourn on a selling agreement which was reached but not signed by the two men in April, 1950. Raibourn told FCC hearing examiner Leo Resnick that the $12,000,000 offer "was not mentioned seriously by any DuMont representative." H« also declared^ that Paramount had never said it was not interested in a cash sale of its holdings, but that "there were ways we would rather sell than cash." Asked by FCC attorney Frederick Ford to estimate the current market value of Paramount's DuMont holdings, Raibourn put it at "in excess of $10,000,000," but declined to be more specific. He said the Paramount directors never discussed the amount of cash for which they would sell the DuMont stock and that he didn't "think they will until they get an offer which will make it necessary for them to do so." At Yesterday's Hearing .At yesterday's hearing Raibourn described negotiations which DuMont initiated in latel949 for the purcliase of the Paramount stock by DuMont for $10,000,000. The negotiations were dropped, Raibourn declared, because "Dr. DuMont contemplated considerable expansion of his television set business and was unwilling to commit his company to that amount of money to purchase the stock. He felt that it wauld hamper the growth of the company." Raibourn maintained that Paramount could have assumed control of the DuMont company at any time since its original $164,000 investment in 1938 by buying more stock. Paramount refrained from doing so, however, he said, because its original policy in regard to the DuMont company was to leave Dr. DuMont in control of the firm. Questioned about Du Set NPA Meet On Color TV Washington, Jan. 23. — Separate conferences on the National Production Authority's ban on the manufacture of color television sets are slated in the near future between NPA officials and theatre representatives and manufacturers of home TV sets. An NPA spokesman while rejecting the industry's bid that large-screen television should not be under the ban said that he was sure the agency would take some action on the letters of the Motion Picture Association of America, the Theatre Owners of America and the National Exhibitors Theatre Television Committee. The letters sought to lift the ban on color theatre TV. The industry meeting probably will come after Feb. 8, when an NPA meet with manufacturers is slated. Indications were that Paramount's subsidiary Chromatic Television, Inc., would bring up at the Feb. 8 meeting the question of whether its tri-color tube is banned under the M-90 order. NPA says the tube is not banned in black and white sets but is ruled out for use in color sets. Describe Tri-Art at SMPTE Meet Here A description of Tri-Art's highspeed combination 35mm. -16mm. processing machine for color negative and color negative and color positive films was highlighted last night in an address by John G. Stott, vice-president of the Tri-Art Color Corp., before a meeting here of the Atlantic Coast Section of the Society of Motion Picture and Television Engineers. Klein Joins New Circuit as Booker The appointment of Harold J. Klein as film buyer and booker for the George Schwartz-Jean Goldwurn circuit, which includes three theatres here and one each in Chicago and Philadelphia, was announced yesterday. Klein resigned as film buyer and general manager for J. J. Theatres to take up his new affiliation. Mont's proposal to reduce the number of Paramount directors on the DuMont board from three to one, Raibourn replied that three can't do any more than one in the way of controlling an eight-man board, but that three are "smarter" than one. It was his impression, Raibourn said, that Dr. DuMont had always controlled the board of directors, and has "always operated the company during the entire time I've been with him." He explained that it was at Paramounts' instigation that the number of Paramount directors on the DuMont board had been reduced from four to three, to make the representation on the board more proportionate, after the company's outstanding A stock had been increased. He declared, however, that in 1950, after the parent Paramount company split into two new companies and the value of Paramount Pictures' investment in DuMont became proportionally greater, Paramount put its top officers on the DuMont board because they wanted "stronger representation" because of the "value of their investment." SIMPP Settles For Five Permits Under Spanish Pact The Society of Independent Motion Picture Producers has settled for a guarantee of five import licenses under the U. S. industry's agreement with the Spanish government which was signed in Madrid yesterday by Stanton Griffis, retiring U. S. Ambassador to Spain, and Spanish government officials. The one-year agreement, which will go into effect on March 1, allocates 60 permits to the Motion Picture Association of America member companies, and 15 others which will be divided among United Artists, Republic and Monogram. The permits for the MPAA will be acquired directly from the Spanish government, while all others will be issued by Spanish film importing firms, according to export officials here. In addition to the five licenses which will go to SIMPP producers, and the 15 which will be allocated to UA, Republic and Monogram, there are 20 more licenses which also will be channelled through Spanish importers. These may be "dipped into" by any and all U. S. prdoucers, including MPAA member companies. Hence, a total of 100 import permits are guaranteed to American distributors. Another 35, acquired and paid for prior to the signing of the pact, may be used also during the year. The negotiations leading up to the pact were started some five months ago by John G. McCarthy, MPAA international department chief. The new pact replaces "the cumbersome and costly system heretofore in effect" and under which only 78 licenses were issued to U. S. films last year. Herzog Is Named Cinecolor Head Karl Herzog was elected president of Cinecolor Corp. at a meeting of the board of directors here, replacing John D. Kerr who resigned recently from the board and the presidency. Herzog, who has returned to the Coast, continues as treasurer of the company and a member of the board of the parent company and of its subsidiary, Cinecolor Realty Corp., as well as representative of Cinecolor, Ltd., of Great Britain. Edwin Van Pelt of the Chemical Bank and Trust Co. and Murray McConnel, both of New York, were elected to fill two of the board vacancies created by the resignations of Kerr, Francis Hann and Maxwell C. King. The third vacancy will be filled on the Coast. William Goetz Hits Hollywood Critics Portland, Ore., Jan. 23. — Reckless criticism of Hollywood was blasted here tonight by Universal production head William Goetz at a banquet held at the Masonic Temple in connection with a celebration on the occasion of the world premiere of U-I's "Bend of the River" at the Broadway Theatre. Goetz declared, "The motion picture industry is the only industry which consistently contributes its talent, money and facilities to every worth Col. Meet Into 2nd Day Columbia yesterday began the last of a series of four sales meetings at the Warwick Hotel here with home office executives, division and branch managers in attendance. The meetings will run for three days. Representing the home office at the gatherings are general sales manager A. Montague ; assistant sales manager Rube Jackter ; Louis Astor, Louis Weinberg and Irving Wormser, circuit sales executives ; George Josephs, assistant to Montague ; and Maurice Grad, short subject sales manager. Delegates from the field are I. H. Rogovin, New England division manager ; Harry Weiner, division manager for Southern New Jersey and Eastern Pennsylvania ; Lester Wurtele, Philadelphia branch manager ; Jim Eater, Buffalo; Tom O'Brien, Boston; Walter Silverman, New Haven; Charles Dortic, Albany, and Ben Lourie, Chicago. SEP Cites Drop in Theatre Attendance As in the first installment a week ago, of the Saturday Ei'cning Post's current three-part series on "Hollyvvood vs. Television," the most objectionable fodder for the second installment is provided by a part of the film industry. Milton MacKaye, author of the series, concludes the installment which went on sale yesterday with figures credited to the Southern California Theatre Owners Association, an affiliate of Theatre Owners of America, which purport to show that the attendance habits of theatre-goers in that section dropped from 3.2 times a month, two years ago, to 1.3 times a month last spring. "It seems quite possible," MacKaye writes, "that the very excellence of Paramount's KTLA (Los Angeles television station ) may have something to do with the emptiness of the theatres that Paramount Pictures seeks to serve." What many in the industry regarded as the most injurious part of the initial installment last week was the forecast by Charles Skouras, TOA board chairman, that television ultimately will close 50 per cent of the nation's theatres. S. K. while cause without any profit whatsoever to itself. "In fact, Hollywood has become so generous in its contributions to all deserving causes, that these contributions have come to be taken for granted and are completely overlooked by those who seek to condemn Hollywood and its workers on the slightest provocation," said Goetz. Thousands of visitors from the Northwest and press and magazine correspondents from every section of the country took part in a two-day "Covered Wagon Centennial" which was climaxed with the premiere. Senator Cites 'Bend' Washington, Jan. 23. — Senator Morse (R., Ore.) took the Senate floor to praise Universal-International's new film, "Bend of the River." "The film tells about the movement of pioneers into Oregon.