Motion Picture Daily (Apr-Jun 1954)

MOTION PICTURE DAILY VOL. 75. NO. 69 NEW YORK, U.S.A.. MONDAY, APRIL 12, 1954 TEN CENTS Attorneys See No Legal Bar to Allied Film Project Blind Buys, Franchises, No Cancellation Are O.K. Distribution attorneys commenting on the Allied States agreement to provide 2,500 playdates for 12 features to be released at monthly intervals by Hal R. Makelim Productions, pointed out that if the same arrangement were made with a major distributor the independent exhibitor customers would have the privilege of a 20 per cent cancellation. If the Makelim contracts are consummated with individual exhibitors at the series of regional meetings to be held in exchange cities starting early next month, the Allied members will be engaging in blind buying and block booking, two trade practices they fought to outlaw over an extended period of years. In the government anti-trust suit against the industry, the court ruled that companies subject to the final decree— all of the major companies — (Continued on page 5) Power and Richmond In Multiple-Picture Deal with Columbia HOLLYWOOD, April 11.— COPA Productions, independent c o m p a n y formed by Tyrone Power and Ted Richmond, on Friday signed a multiple-picture producing and releasing deal with Columbia Pictures, the studio has disclosed. "Lorenzo the Magnificent" will be the first feature. It will be filmed in Italy with color in Technicolor and with Power starred. Johnston Set for 'Easier Tax' Bid WASHINGTON, April ll.—Motion Picture Association president Eric A. Johnston will ask the Senate Finance Committee today to give film export companies the easier tax treatment accorded by the House-passed technical tax bill to many other firms doing business overseas. William H. Roberts, secretary of MPAA's foreign tax committee had originally been listed as the MPAA witness, but it now has been decided to have Johnston himself make the pitch. RKO FINANCIAL, OTHER REPORTS TO END AS HUGHES TAKES OVER Among the corporate obligations of which RKO Radio Pictures will be relieved when sole ownership passes to Howard Hughes are the following: The preparation of annual and interim financial reports: ^ Submission of annual reports to stockholders; <J The filing of corporate documents with the Securities & Exchange Commission, including employment contracts with executives, salary reports, stock ownership reports of officers and directors and securities reports of all kinds; •J The holding of public annual or special meetings, and ^ The answering of stockholders' questions and complaints. The company's last public report presumably will be that of RKO Pictures Corp. for the year 1953. Its last annual meeting of stockholders in public has been held. Tenders of the outstanding stock in accordance with Hughes' offer of $6 per share are scheduled to be completed by May 17. However, new evidence of possible complications was provided again on Friday on the New York Stock Exchange where, in trading of large blocks, aggregating 10,860 shares for the day, the issue closed at the premium price of $6. l2'/2. It was the third time in recent trading that buyers have paid the premium price for the stock indicating, financial sources agreed, that the unknown buyers must have a definite objective in view. ANSWERS TO TAX QUESTIONS Allied Independent Theatre Owners of Indiana has prepared a series of answers to questions that may be asked of exhibitors who have not lowered their admission prices as a result of the adjusted ticket tax. The information below may be helpful to those exhibitors who are faced with questions by their patrons. Q. The Federal admission tax has been reduced so why does my ticket to the theatre still cost the same? A. Because of the greatly increased operating expenses and because of the very big equipment investments now required by the new projection methods, most theatres must have this added income to stay in business. Because of the 20 per cent sales tax on movie tickets 6,000 theatres in the United States have been forced to close and another 6,000 have just been hanging on waiting for the tax to be reduced. (The theatre is now installing VistaVision, CinemaScope, Perspectasound, new seats, new projection equipment, or what ever you may have to talk about) . Q. Why is it that electrical appliances (or jewelry, or cosmetics, etc.) have been cut since the tax re(Continued on page 5) Wis. Allied in Blast Against Film Terms MILWAUKEE, April 11.— Allied Theatre Owners of Wisconsin closed its annual convention here with a blast at distributors for current film terms. In a resolution, the unit condemned the companies "for the exorbitant percentage film terms being asked of (Continued on page 5) 'Draft Brewer' Move Extended to TV Field HOLLYWOOD, April 11. — The Southern California committee to draft Roy M. Brewer for the. presidency of the IATSE on Friday disclosed that the campaign has extended into the television field, with Television Broadcasting Studio Employees (Continued on page 5) Yates Reports Republic Set For Expansion In TV Field Spends $1.5-Million on Equipment; Plans Color Republic's expansion in the television field was highlighted by Herbert J. Yates, Republic president, at the annual meeting of the company's stockholders, held here on Friday. He reported that Republic has spent $1,500,000 for television equipment, planning to furnish shows to home television as well as to theatres. Republic, he continued, is the "only" film company "to go into television" and is preparing its Tru-Color process for . (Continued on page 4) Herbert Yates Compo Ad Stresses Theatres' Role in Local Economy Council of Motion Picture Organizations' seventh ad in the "Editor . & Publisher" series, published Saturday, emphasizes the local importance of the motion picture industry. Headed "Here's the Local Angle," the advertisement emphasizes that most of the money spent by theatres is expended locally and that through employment of local residents and in other ways the theatre is an important factor in the economy of every community. "In 1953," the advertisement says, (Continued on page 4) Columbia to Release Howard Welsch Film Columbia Pictures has acquired Howard Welsch' s "A Bullet Is Waiting" for distribution. Camera work on the production was completed recently and the picture is slated for late summer or early fall release. The Welsch deal is said to be the forerunner of a series of pictures to be made by the independent producer for Columbia release.