Motion Picture Herald (Jan-Feb 1945)

Four Percentage Actions Started In New York Four suits, asking $180,000 damages, were instituted last Friday in the New York Supreme Court by Paramount, Warner Bros., Loew's and Twentieth Century-Fox against Irving Renner, Louis Nelson, various corporations operating the Endicott Circuit and William Namenson, accountant for the circuit, for allegedly making fraudulent box office reports on grosses received on percentage pictures exhibited by the defendants from 1940 to 1944. This is the third of what is believed to be a series of such actions contemplated by the distributors. Similar suits are now pending in Pittsburgh and Boston. The plaintiffs charged the defendants "bribed plaintiffs' checkers" to make allegedly fraudulent reports. Specific charges were made by Twentieth Century-Fox with respect to "Hello, Frisco Hello," "Coney Island," "Sweet Rosie O'Grady" and Shores of Tripoli." Paramount's films included "Dixie," "Reap the Wild Wind," "Road to Morocco," "Holiday Inn" and "Star Spangled Rhythm." Loew's listed "Gone With the Wind," "Mrs. Miniver," "Human Comedy" and "Random Harvest." Warner Bros, listed "Yankee Doodle Dandy," "Casablanca," "Air Force" and "Mission to Moscow." These are the more important of the many films named by the plaintiffs. The plaintiffs charge that the defendants obtained benefits in the price on flat rentals due to alleged low grosses. Twentieth Century-Fox seeks $25,000: Paramount, $25,000, Loew's $100,000 and Warners $30,000 in damages. The next move will be an application by the plaintiffs to examine the defendants' books and records. Investigation of books and records of other theatre owners was being conducted, it was said later. Louis Nizer is attorney for the plaintiffs. DeMIlie Airs Explanation Of Dispute with AFRA Cecil B. DeMille appeared on the March of Time radio program Monday night over the Blue Network to explain to the public his side of the dispute with the American Federation of Radio Artists. "I am a union man," Mr. DeMille said, "but this is no question of unionism or non-unionism. It had to do with abuse of power." AFRA will offer its rebuttal to the screen and radio producer on The March of Time radio program next Thursday night. Eddie Cantor has been named as the probable speaker. Mr. DeMille was barred from the air by AFRA because he refused to pay a $1 assessment last autumn to be used to fight a proposed open shop law in California. Lionel Barrymore has replaced the producer on the Lux Radio Theatre, Monday nights over Columbia Broadcasting System. The Los Angeles Superior Court, to which Mr. De Mille took his case, ruled against him when it held that the proposition voted on in this case was not political. He will appeal the case to the Supreme Court. Depinet Drive Winners For Week Announced The first-week winners in RKO Radio's 1945 Ned Depinet Drive were announced last Wednesday by general sales manager Robert Mochrie. The campaign began January 19 and will run through May 10. The Minneapolis branch headed by C. J. Dressell finished first. Following closely were: M. E. Cohen, Detroit; E. A. Lamb, Seattle, and A. KoHtz, Cleveland. Next came M. E. Cory, Portland, and S. W. Fitch, Sioux Falls. In Canada, the first-week leaders were H. F. Taylor, Montreal, and H. H. McArthur, St. John's, a close second. Both they and the six U. S. winners finished in the over-quota group for billings. 3fc Philadelphia To Remove Ticket Tax Exemptions Two new amusement tax ordinances, one of which removes all exemptions from existing amusement tax legislation, were approved in Philadelphia by the City Council's Finance Committee, and final passage of the measures was expected at a meeting of the Council which was to be held late this week. The ordinance removing all amusement tax exemptions applies to religious, educational and charitable organizations and to symphony concerts, placing a tax of one cent on each 25-cent admission or fraction thereof. Another bill would impose a tax of $20 on each bowling alley. . A report from the City Treasurer indicated that the amusement taxes collected in 1944 amounted to $1,493,356. The budget estimate for the year in amusement taxes was $1,400,000. Philadelphia exacts an amusement tax of one cent on each 25cent admission. Williams to Take Albert Law Post Paul Williams, assistant to the U. S. Attornej General, and at one time concerned with earlier Justice Department film anti-trust proceedings, will succeed the late Albert Law as counsel of the Southern California Theatres Owners Association, it was indicated last weekend in Washington. Mr. Williams is understood to have submitted his resignation from Government service to Attorney General Francis Biddle. Mr. Law, who died suddenly in New York January 2, had just started negotiations with producer-distributor executives on a trade conciliation plan designed to simplify arbitration procedure without in any way superseding it. He had hoped to have his plan incorporated in the industry Consent Decree ; Mr. Williams is expected to continue with Mr. Law's plan. A native of Salt Lake City, where he maintained a law practice, Mr. Williams joined the Department in 1933. He was in charge of the investigatorial work and the drafting of the original bill of complaint in the Consent Decree suit, and was prepared to go to trial when the Decree, providing for a truce between the Government and the companies, was entered in the Federal District Court, New York, in November, 1940. Dawes Quits RCA Board; Trammell Is Successor The resignation of General Charles G. Dawes from the board of directors of Radio Corporation of America and the election of Niles Trammell, president of National Broadcasting Company, to fill the vacancy, were announced last weekend by Brigadier General David Sarnoff, president of RCA, following a meeting of the directors. General Dawes, former Vice-President of the United States and Ambassador to the Court of St. James's, had been a director of RCA since January 1938. Mr. Trammell joined RCA in 1923 as commercial representative of the traffic department, San Francisco, thereafter serving as district manager and assistant sales manager of the RCA Pacific division. He joined the NBC sales staff in 1928. In 1940, he was elected president of the Rational Broadcasting Company, a service of RCA. Frank M. Folsom, vice-president of RCA in charge of RCA Victor division, was elected a director of the National Broadcasting Company, replacing General Dawes on that board. E. L. Bragdon, formerly trade news editor of the National Broadcasting Company, has joined the staff of the department of information of Radio Corporation of America. Before becoming associated with NBC in 1942, Mr. Bragdon was radio editor of the New York Sun. The appointment of Raymond A. Hudson as sales representative for RCA 16mm equipment in the eastern region was announced last week by M. F, Blakeslee, New York regional manager for the Radio Corporation of America, RCA. Victor Division. Grants New Trial In Murray Suit; [ Drops 2 Majors Loew's and Twentieth Century-Fox were dismissed Monday as defendants in the Thomas A. Murray anti-trust suit in Chicago, and a new trial was granted the remaining defendants by Federal Judge William H. Holly in the U. S. District Court there. On January 24 a jury awarded Mr. Murray, former operator of the Thalia theatre, Chicago, $105,000 treble damages, plus costs and attorney's fees. The plaintiff originally sued for $1,000,000, alleging that the major distributors and competi-! tive theatres had forced him out of business. The dismissal < of Loew's and Twentieth Century-Fox brought the total of original defendants! dropped from the trial to 10. Paramount, Universal, Columbia, Monogram of Illinois, Balaban and Katz, Warners, Louis Reinheimer and Morris G. Leonard were dismissed by Judge Holly January 17. Lester Munay, attorney and son of the plaintiff, said that he would appeal Judge Holly's dismissal of Loew's and Twentieth Century-Fox to the United States Circuit Court of Appeals, Chicago. Judge Holly ruled there was no evidence to prove that they were parties to the alleged conspiracy. Mr. Murray has not decided what course of action he will take on the granting of a new trial to the remaining defendants, made on the motion of defense counsel. The remaining defendants include the Milo' Theatre Corporation, Capitol Pictures, John L. Manta, Van Nomikos and Henri Elman. Sees Broad Band Television on Top Experiments with full-color television in the: high-frequency channels will result in the replace-, ment of broadcasts in the lower frequencies where it is situated at present on a commercial basis, James M. Fly, former chairman of the Federal ' Communications Commission, predicted Tuesday! in New York at a luncheon of the Television \ Press Club at the Hotel Sheraton. He declared that regular usage of the higher frequencies would be achieved within five years following the end of the war. Mr. Fly and Ralph B. Austrian, executive vice-president of RKO Television Corporation, were guest speakers. ^ Improvements in television transmission on the[ present frequencies, Mr. Fly said, make possible a I good system of telecasting on the six-megacycle j, bands with the use of larger screens such as RCA has developed. He said he saw no reason television | should not go forward, except inability to secure i equipment in the war emergency. Mr. Austrian outlined a plan for building television circulation. Hfe urged the manufacturers! of equipment to undertake the sponsorship of tele-^ vision on film to assure the public a steady flow of program material for the receivers that are sold.;, The cost of the programs, which RKO Tele-vision Corporation is prepared to make through the facilities of RKO Radio and Pathe Nevvs,;^ would be paid by the manufacturers and their dis-l' tributors. . . I The new board of governors for Television} Broadcasters Association, announced at the luncheon are: Stanley Kempner, Louis Winner, Eliza-, beth Forsling, Cliff Denton, Tom Kennedy, Ben'' Kaufman, Patricia Murray, Wanda Marvin, H. M.i Shapiro and Bruce Robertson. . RCA Declares Dividend The board of directors of Radio Corporation of: America last week declared a dividend of 87j4 , cents per share on the outstanding shares of $3.50: cumulative first preferred stock, for the period j from January 1 to March 31, 1945. The dividend [i is payable April 2 to holders of record March 5. MOTION PICTURE HERALD, FEBRUARY 10, 1945: