Motion Picture Daily (Apr-Jun 1952)

4 Motion Picture Daily Tuesday, April 1, 1952 UPT-ABC Hearing Adjourns {Continued from page 1) that, witnesses for Allen B. DuMont Laboratories will testify on the effects the merger would have on TV network competition. The case for renewal of the license of WSMB, ParamountRichards AM station in New Orleans, will then be presented. Blank, Wilby Coming Up After this is concluded several UPT directors, including A. H. Blank and Robert Wilby, will be questioned on specific trade practices and their effect on specific theatres. Following this, Paramount Pictures president Barney Balaban and vice-president Paul Raibourn will be recalled to the stand. And then, says FCC counsel Frederick Ford, he may call other witnesses, "depending on how the question of the UPT directors goes." Today's witness, UPT president Leonard Goldenson, was questioned at length by DuMont attorney Morton Galane on whether the buying power of the proposed merged company would cut out competitors in the purchase of films for television. Goldenson replied that independent television networks would be protected by FCC regulation. In addition, he declared, UPT-ABC would use "good business practices" in its dealings for film and would be always advised by "competent counsel" on the legality of its actions. He repeated the point that under the U. S. Supreme Court decision UPT bids for its pictures for theatre exhibition picture-by-picture and theatre-by-theatre. Galane asked that the financial reports of Paramount Pictures from 1940 to 1949 be put into the record to determine if the company's "earnings were far out of proportion to its gross assets" during the period. They would give evidence, he declared, from which it could be determined whether "the personal participation on the part of Goldenson and his associates in the home office" was in the direction of "the unlawful buying out of competing theatres." Galane Cites As the basis for this request, Galane cited the District and Supreme Court decisions in the Crescent case. Both courts, he said, made a finding of monopolistic control based on Crescent's financial reports. The Supreme Court, Galane said, found that when Crescent acquired theatres its income increased "out of all proportion to the theatres added" to the company. "Thus," he said, "Crescent had acquired theatres under circumstances which would give them a monopoly." FCC hearing examiner Leo Resnick said he would rule on Galane's request at a later date. Arbitration {Continued from page 1) touches on its draft. However, Rodgers yesterday did not set a date for another meeting of his committee. H. V. (Rotus) Harvey of San Francisco and William J. Connors of Seattle will be the WTO delegates, and L. S. Hamm of San Francisco will accompany them as counsel. Now only the New York Metropolitan Motion Picture Theatres Association has yet to name its meeting delegates. Allied, Theatre Owners of America and the Independent Theatre Owners Association of New York announced their delegates about a week ago. MMPTA indicated yesterday that its delegates would be selected at a membership meeting here the latter part of this week. Eric A. Johnston, Motion Picture Association of America president, acting in behalf of 10 distributors, on March 21 invited the exhibitor groups to name representatives to> discuss with the distributors' sub-committee the possibility of establishing an industry system of arbitration. Earlier, both Allied and TOA submitted their respective proposals for setting up such a system. A. T. & T. Fails {Continued from page 1) hoped to carry the Garden tilt between Kansas University and LaSalle. However, Theatre Network Television, which holds exclusive theatre TV rights to major Garden games notified Commonwealth that A. T. & T. facilities were unavailable for the project. Cantor in UJA Film Eddie Cantor will make his first screen appearance in four years as star of "Front Line '52, a 10-minute campaign film produced by Paramount for the United Jewish Appeal. \ TWA=TWA=7WA=TWA Now TWA offers -weeper sem'ce ||| |j| The only all -sleeper flights || overnight to ;| LONDON and PARIS | non-stop from New York For information, see your travel agent or call TWA MITCHELL MAY, Jr. CO., INC. INSURANCE • Specializing in requirements of the Motion Picture Industry 75 Maiden Lane, New York 3720 W. 6th St., Los Angeles