Motion Picture Daily (Oct-Dec 1954)

4 Motion Picture Daily Monday, December 20, 1954 See Sponsors For TV Bows The telecasting of all 20th CenturyFox premieres will be made available for sponsorship, it was stated on Friday by Charles Einfeld, 20th-Fox vice-president in charge of advertising, publicity and exploitation. Einfeld's decision was made following what was claimed to be the first premiere sponsored telecast last Thursday evening for "There's No Business Like Show Business." The hour-long telecast over New York's independent station WPIX, sponsored by Nash, was seen in 600,000 homes, according to WPIX. Heretofore, Einfeld explained, the film companies had to purchase time from the station for the telecast, but with a sponsored program the time is purchased by the sponsor, with the film company supplying, in effect, the programming. Networks, Einfeld continued, are now showing a keen interest in the possibility of telecasting premieres. The Nash people, he went on, are very well satisfied with last Thursday's telecast outside the Roxy. "We, in turn, feel it helps to sell theatre tickets," Einfeld said. May Add Allied to 16 mm Suit (Continued from page 1) Superscope (Continued from page 1) lenses, so that they will be within the reach of every exhibitor, big or little, in the world." Two lens-grinding companies and one casting foundry now are engaged in turning out Superscope lenses and housings. The announcement coincides with screenings of the first two completed features processed by the Superscope System. They are the Hecht-Lancaster "Vera Cruz" and RKO Radio's "Underwater." McConville (Continued from page 1) the European Continent, succeeding McConville as president. McConville continues as a vicepresident of Columbia Pictures Corp., the parent firm. Kastner, who was named executive vice-president of Columbia international last June, was also elected to the board of directors of the international company. Gov't and Defense Counsel Meet Today HOLLYWOOD. Dec. 19.— Officials of the Federal Attorney's office, questioned here Friday regarding the report that the Justice Department is considering naming Allied States Association as co-conspirator in the 16mm. antitrust case, stated that no decision has as yet been reached in the matter. They also declined to speculate on when the decision will be made. Meanwhile, both Government and defense counsel are to appear Monday before Federal Judge Harry C. Westover, as previously reported, to continue discussions looking toward defining areas to be covered in trial of case. Los Angeles. In 1952, when suit was filed, Theatre Owners of America was the only exhibitor group cited as a co-conspirator. Named as defendants were si.x major producing companies, their 16mm. distributing subsidiaries and two independent 16mm. distributors. These included 20th Century-Fox, Warner Brothers, RKO Pictures, Republic Productions, Screen Gems, a Columbia subsidiary, and United World, a Universal subsidiary. Loew's and Paramount, not distributing 16min. films, were not included in the action. Say TOA Aided Defendants The original complaint cited TOA for aiding the defendants in policing and enforcing their alleged restrictions on the sale of 16mm. film to television and various other outlets in competition with established theatres. At the time, it was said that national Allied was not cited as a co-conspirator because the Department had no evidence concerning it and others, referring to Allied and Paramount. Took No Action Now, two-and-one-half years later, apparently the Justice Department, or a segment of it, believes otherwise, or at least is considering the possibility of altering its decision. Apparently being weighed in the consideration of the Justice Department are the public statements of exhibitor organization leaders other than TOA warning against the sale of theatrical films to TV. TOA, soon after it was named as a co-conspirator, considered the advisability of actively intervening in the suit, but no action was taken by the organization. AB-PT Decree (Continued from page 1) stock of the new theatre company was to be put into a voting trust, from which it could be taken out only on an affidavit that the owner held no stock in Paramount Pictures. A modification e-xcluded holders of 500 or fewer shares, and a still later change raised excluded holders of 2,000 shares or less and permitted holders of more than 2,000 shares to get stock out on a showing that it was held for investment only and that the owner took no part in management of the company. The original decree also provided that by Jan. 1, 1955, the trustee must notify all stockholders with shares still in trust that their shares would be sold in 90 days. It stipulated, however, that these shares could not be sold by the trustee to any person who owned Paramount Pictures stock. 48,500 Still in Trust This last provision created a problem : It meant that the stock could not be sold through the New York Stock Exchange, since the exchange can not put such qualifications on its transactions. Justice officials found that at present there are only about 48,500 shares of American BroadcastingParamount Theatres stock still in trust, less than 1^ per cent of the company's outstanding stock. In view of the small amount of stock involved and in order to make possible public sale through the Stock Exchange, the Justice Department has agreed to modify the original judgment so as to remove the restriction that the stock cannot be sold to anyone also owning Paramount Pictures stock. However, the Department did specify that no more than 500 shares of the remaining stock can be sold in any one day. Justice oflScials said that in the first 11 months of the year, approximately 34,000 shares of AB-PT stock were traded weekly on the New York Exchange. Johnston to Spokane Eric A. Johnston, president of the Motion Picture Association of America, left here at the weekend for his home in Spokane, Wash., for the holidays. On Friday, he briefed a foreign managers meeting on his recent Far East trip and the status of negotiations there, as previously reported in the trade press following his return to the U. S. *Continentar Plan (Continued from page 1) tribution percentage possibility in his area. For example, if the Chicago territory represented 10 per cent of the picture's potential return, an exhibitor would invest an amount equal to 10 per cent of the picture's capitalization. The exhibitor would be given the first run rights to the film, but he, in turn, would then make it available to the subsequent runs in his area and share 10 per cent in the Western Hemisphere gross. As explained at a trade press conference at Reade's new Oakhurst, N. J. home offices, the participating exhibitor would not be investing in a "pig in a poke," but would be able to see each picture before investing in it. The first picture under the setup is "To Paris with Love," a J. Arthur Rank production, to which Continental has obtained the Western Hemisphere rights. The picture stars Alec Guiness in his first Technicolor comedy. Continental plans to make three to four pictures available a year in the so-called Continental plan, Kassler said. Currently in release under the Continental banner are two Rank productions: "Tonight at 8:30" and "The Final Test." In preparation are two French films : "The Snow was Black" and "Domenica." Continental also is distributing the Canadian Film^ Board's featurette, "Stratford Adventure," with Alec Guiness. Also being prepared for release early in 1955, Kassler said, is the first modern story to come from Japan, titled "Hiroshima." S' W Houses FCC Petition (Continued from page 1) petitions filed by Zenith and Teco, Inc. Referring to Zenith's request for the authorization of subscriber television either without proceedings or with limited proceedings, Cohn said, "The relief requested by Zenith and Teco, Inc., would drastically revise the present pattern of broadcasting and would result in fundamental changes in the philosophy of the Communications Act." The letter requested the FCC to defer any action on Zenith's request until the toll-TV committee could file its reply, "so that full consideration may be given to all viewpoints on this very vital request for a change in the rules." (Continued from page 1) Theatre in Titusville, Pa. Originally required to be sold, it can under the new extension be either sold or leased, providing the circuit agrees for a fiveyear period not to take more than 60 of the first-run films of major distributors in its other Titusville theatre. While the chain has until July 4, 1955, to get rid of this property, it would be to its interest to dispose of it earlier, since it can apply for new theatres anywhere in the United States as soon as the Orpheum is sold or leased. Of course, it must still receive Justice and court approval before it actually acquires any new theatres. Some Properties Unprofitable In the other three situations, Stanley Warner has long-term leases on unprofitable theatre properties and no one seems willing to take over the leases. Leases on the Washington Theatre in Chester, Pa., and the Modern Theatre in Lawrence, Mass., run through May, 1965, while a lease on the Capitol Theatre in Danbury, Conn., runs through July, 1957. In all three cases, Stanley Warner is agreeing not to extend or renew the existing lease, to dispose of any of the three leases if anyone wants to take it over, and make an irrevocable offer to each landlord allowing the landlord to cancel the lease on 30 days notice to Stanley Warner. In addition, there are special conditions in each case : the Washington, which is now closed, can't be reopened without government approval and Stanley Warner agrees not to operate more than two first-run theatres in Chester ; the Modern will not be operated as a first-run house and Stanley Warner agrees for five years not to have more than two of its theatres in Lawrence operating as first-runs and to limit itself to twothirds of the first run films of major distributors ; and the Capitol will not be operated as a first-run house, and for three years the circuit will not take for its other first-run theatres in Danbury more than two-thirds of the first-run films of major distributors. A similar wind-up order is expected for National Theatres early in January, and Loew's and RKO are also nearing the end of their divestiture programs. Circuits Move Offices RKO Theatres and the Stanley Warner Corp. moved to new office quarters over the weekend. RKO Theatres has shifted its home office to 1740 Broadway while Stanley Warner moved to 1585 Broadway here. Reade, Sr., Home Now Circuit Office The 20-room home of the late Walter Reade, Sr., at Oakhurst, N. J., has been converted into home offices and headquarters of Walter Reade Theatres, and at that spot the trade press on Friday was given a weekend "Cook's Tour." The great mansion has been broken up into departmental segments. What used to be huge bedrooms are now the offices of the accounting, booking and clerical departments of the circuit.