Motion Picture Daily (Jan-Mar 1952)

Tuesday, March 18, 1952 Motion Picture Daily 11 RKO Files {Contintied from page 1) Activities Committee, aiid who "on constitutional grounds" refused to answer the question of whether they were Communists. RKO named screen writer Paul Jarrico as defendant. Hughes, managing director of production of RKO, declared : "As long as I am an officer or director of RKO Pictures Corp., this company will never temporize, conciliate with, or yield to Paul Jarrico or anyone guilty of sim; ilar conduct." Discarded All Manuscripts RKO charged in Los Angeles Superior Court that Jarrico refused to tell whether he was a member of the Communist Party because to do so "might tend to incriminate" him. RKO's complaint for declaratory judgment stated that RKO discharged Jarrico and discarded all manuscripts written by him for the motion picture "The Las Vegas Story." RKO asked the court to determine that RKO is not required to pay Jarrico's demands for money for alleged damages, and that RKO is not obligated to Jarrico in a.ny way, either for screen credit or otherwise. Howard Huges stated: "A great deal of pressure has been brought to bear upon me to pay of¥ and settle Jarrico's demands out of court. "It would be much simpler, easier, and probably cheaper to pay what Jarrico demands than to resist. And at first, it seemed the sensible decision to pay off and forget this matter. Just get it over with and proceed to more productive duties. 'Sensible Thing' "And maybe it is the sensible thing to do. The RKO executives, attorneys and I have our hands full to try and run a successful company operation in these times, and we do not have the man hours for the endless depositions, harassment, legal study, conferences and preparation which are necessary to fight a lawsuit. However, for several days now, I have been giving this matter my most careful and conscientious thought. I have reached a decision and it is final and irrevocable, regardless of what it leads me to. "As long as I am an officer or director of RKO Pictures Corp., this company will never temporize, conciliate with, or yield to Paul Jarrico or anyone guilty of similar conduct." In the complaint field today, RKO stated that, after discharging Jarrico, RKO then hired a new writer to write an entirely new script, and that the picture was made from this new script, which contained nothing whatever created by Jarrico. The complaint charged that, because of these facts, the RKO studio suffered a delay in starting production. Stars to Aid Crippled Several personalities in the entertainment field have accepted invitations to serve as sponsors of the 1952 Easter Seal campaign of the National Society for Crippled Children and Adults. Jack Benny is chairman for radio and television. Others include Sid Caesar, Mr. and Mrs. Ronald Colman, Joan Crawford, Bing Crosby, Jimmy Durante, Bob Hope, Mr. and Mrs. Jim (Fibber McGee and Molly) Jordan, Art Linkletter, Don McNeill, Don Quinn and Doris Day. Hit Monopoly Charge {Continued from page 1) where UPT has the only theatre would ABC be affiliated with the only radio or television station. In most cities, he indicated there would be both theatre and broadcasting competition. Coyle said that ABC's net after taxes in 1951 was $369,000, but that there was a decline in television sales in December, and in January the network actually had a loss. After divestiture, UPT would have 644 theatres in 297 cities, hearing examiner Leo Resnick was told. In those cities, there are 544 competing first-run theatres and 3,249 competing subsequent run theatres, Coyle said. He added that in none of the 297 cities would UPT have the only theatre, and in only 20 small cities would it have the only first-run theatre. And ABC does not operate in any of those 20 cities, he stated. There would be 479 cities in which either ABC would have a broadcasting outlet or UPT a theatre outlet, Coyle said. He declared ABC would have a radio or TV outlet in 181 cities in which UPT would have no theatres, that UPT would have theatres in 176 cities in which ABC has no broadcasting outlet, and there would be only 122 cities in which both companies vi'Ould have outlets. Coyle said UPT would have the atres in only 14 of the 51 cities where ABC is affiliated with the only AM station in town, and in each of these 14 cities there would be at least one competing theatre. As for television, the Commission was told, ABC owns five stations and is affiliated exclusively with two and non-exclusively with 57. In the five cities where ABC owns TV outlets, there are at least two other competing TV stations and more theatres owned by non-U PT companies than owned by UPT, Coyle stated, and added that ABC is not affiliated with the only TV station in any city where UPT has the only theatre. The ABC official pointed out that the combined ABC-UPT gross in 1950 would have been less than 25 per cent of the RCA gross. He also inserted official FCC figures to show that broadcasters, newspaper publishers and manufacturers own far more TV stations and have far more applications pending than do film companies. Other ABC witnesses on the stand today were secretary and general counsel Geraldine Zorbaugh ; vice president and director C. Nicholas Priaulx ; assistant research manager Frank James ; and Dr. Frank Kear, consulting engineer. They discussed the structure of the network, programming, finances and other questions. Boxing Trust Suit {Continued from page 1) of professional championship boxing matches. Prepared by Department of Justice attorney's Harold Lasser and Harold J. McAuley, under the supervision of Melville C. Williams, chief of the New York anti-trust office, the complaint contends that "the public as well as the contestants, promoters, radio and television broadcasters and others engaged in this business is entitled to a free competitive market in a business which commands such wide public interest." Named as defendants in addition to the two clubs were the Madison Square Garden Corp. of New York, James D. Norris of New York, and Arthur M. Wirtz of Chicago. Norris and Wirtz together with the Aladison Square Garden Corp. are the principal stockholders of the IBC of New York and Illinois. U-I Welcomes {Continued from page 1) gene Walsh, Charles Simonelli, Harold Rubin, Harry Fellerman, Philip Gerard, Jeff Livingston, Henry A. Linet, Fortunat Baronat, Felix Sommer, Irving Weiss, Joseph Mazer, Robert Ungerfeld, Morris Alin, Milton Livingston, Jack Huber and Maurice Myron. Raise Prices for 'Show' Boston, March 17. — The Metropolitan Theatre here has hiked admission prices for Cecil B. DeMille's "The Greatest Show on Earth." The new prices are as follows : Thursday, Friday, Monday, Tuesday and Wednesday, 90 cents from opening until 5 :0G P.M. and from 5:00 P.M. until closing, $1.25; on Saturday until 1:00 P.M., 90 cents, and from 5:00 P.M. until closing, $1.25. The Sunday price, is $1.25 all day. Children's price, under 12 years, is 50 cents at all times. Pathe Color {Continued from page 1) cess are now underway on the Coast, Wolcott added; three studios are interested in making features using Eastman color. The color expansion in the East, he explained, is being duplicated in Pathe's present Hollywood laboratory, where new equipment is being bought and black-and-white equipment is being converted to handle color. Wolcott said most revenue of Pathe Laboratories still comes from the processing of theatrical motion pictures and while he sees some adjustment in the industry as a result of home TV, the Pathe executive said there will always be a thriving theatrical film industry. It is on the basis of this belief, Wolcott explained, that Pathe has begun its $1,000,000 expansion program. At present, Pathe handles tlie output of Universal Pictures, in addition to newsreels of Warner, Universal and NBC-TV, and also processes United Artists and RKO Pictures, the latter films on the Coast. 'The River' Is Cited A proposal that the board of governors of the Academy of Motion Picture Arts and Sciences consider a special award for "the most significant cooperative international achievement" has been made by the General Federation of Women's Clubs. Besides the proposal, the Federation forwarded its nomination of "The River" for the projected award. WTO Meeting Sept. 1-5 S.\s Francisco, March 17. — Western Theatre Owners, Inc., will hold its 1952 annual convention in the Feather River Inn, Blairsden, Cal., Sept. 1-5, it is disclosed by president Rotus Harvey. Compo Fight {Continued from page 1) members of the new committee, which is under the co-chairmanship of Robert J. (Bob) O'Donnell and Col. H. A. Cole, is due to be held following the former's return around April 5 from a vacation abroad. Arthur L. Mayer, COMPO executive vice-president, and Robert W. Coyne, special counsel, are the officials who have been preparing the data which is expected to be the basis for discussion at the first tax committee meeting. The campaign of the previous COMPO tax committee, which was under the chairmanship of Abram F. Myers of national Allied, was at the point of winning at least a reduction of the Federal tax when the Korean War broke out and spoiled hope of a reduction of the Federal military budget. Inequitable for 2 Reasons "We who are close to the business," said Mayer, "are convinced that this type of taxation is inequitable for two reasons : It bears most heavily on that part of the public least able to pay, and it threatens the well-being of our industry. Not only do we hope to convince Congress of this fact but we hope to make representations to the U. S. Treasury as well. We have found Treasury officials open-minded and we know them to be constantly evaluating taxes in the light of their eft'ect on the economy — not only the national economy but the economy of the industries involved and the population sectors immediately affected. Congress naturally is the agency that can grant relief. No effort will be spared, however, to make an ally of the Treasury Department, whose recommendations properly have great weight with Congress." Mayer stated that he was forwarding to the COMPO tax committee copies of the Treasury's study and recommendations. Bldg. Code Hearing Set in Puerto Rico By E. SANCHEZ ORTIZ San Juan, P. R., March 16 (By Airmail). — The Puerto Rico planning board has prepared a building code that will be submitted to public hearings Alarch 30, before it is finally approved. This regulation is being prepared in accordance with the provisions of Ac/ No. 168 of the Insular Legislature, authorizing the planning board to adopt and enforce a building code that will cover security, stability and health conditions of all buildings constructed in Puerto Rico, including motion picture houses. Galindo to Handle Selznick Product Mexico City, March 17. — Pedro Galindo, producer-distributor, will distribute Selznick pictures in Mexico during the next four years under a contract he made with Fred S. Gulbranson, Selznick manager here. Of late, various Mexican distributors have handled Selznick productions in this country. Coincident with the making of this deal, Galindo announced that he will produce six pictures this year.