Motion Picture Herald (Nov-Dec 1948)

Karl Hoblitzelle important, too Hoblitzelle Asks Long Range View By All Industry By RED KANN in Dallas Karl Hoblitzelle, president of Interstate Circuit, Inc., is highly critical of those theatremen who reject a long view of this industry in favor of a quick haul. "You know," he said, "the dinner to Bob O'Donnell exemplifies what I mean. It was fine for important men from all parts of the country to travel here for that function [given by Variety Club of Texas at the Baker Hotel, December 4] but why they did it is L think that, among the reasons, was the recognition of Bob's longestablished practice of encouraging producers and distributors who are worthy. That, of course, is a fundamental of Interstate's policy over a period of 40 years. "Meritorious product has to be supported. This is why we are perfectly willing to give top playing time in our top theatres to attractions that rate, regardless of source, on the kind of terms we pay Paramount." As he was saying this, Interstate's flagship, the Majestic theatre, was running "Strike It Rich," a story about oil wells, produced by Jack Wrather and released by Allied Artists. "If we and other exhibitors neglect to give good product the break it deserves, progress in production inevitably will be retarded. It follows, of course, that our theatres won't do so well, either," he went on. Mr. Hoblitzelle was sharply critical, too, of exhibitors who follow a "clean up-now" policy of playing "sex" pictures. There's not much trick to that sort of thing. We can do it like anyone else. But there's no present or future in it. When you operate theatres dedicated to the community as we do there is a clear obligation which must be met constantly," Mr. Hoblitzelle observed further. "You don't come within sight of such an obligation with sensationalism. What you do is to postpone the reckoning day. And that's a deferment at best. "I wish more in the industry would realize this." U. S. Not to Interfere In French Film Quota Washington Bureau The State Department is very unlikely to do anything more about the Eagle Lion protest over the French film agreement than transmit the protest to the French Government, a State Department official said Tuesday. "The new pact leaves up to the French Government the distribution of the quota among individual companies," he declared. "The State Department is always reluctant to interfere with another country's administering of import rationing." RKO Nine-Month Loss $356,024 Radio-Keith-Orpheum Corp. and subsidiary companies this week reported a net loss of $356,024 after taxes and charges for the first nine months of 1948. The net figure makes provision for an estimated loss of $3,560,129 on outside productions, stories and continuities, and a profit of $13,919 on sale of capital assets. The net loss compares with a net profit of $6,896,631, after taxes and charges, for the first nine months of 1947. The total then included provision for an estimated loss of $1,130,225 on outside productions, and a profit of $4,764,766 on the sale of capital assets. RKO reported a consolidated net loss of $2,257,887 for the third quarter of 1948, this figure again including provision for estimated losses of $3,405,194 on outside productions, stories, and continuities, and a profit of $9,281 on the sale of capital assets. The third quarter loss compares to a net profit of $1,789,284 for the same period last vear. Schedule "B" Revised; Affecting Exports Washington Bureau Exporters of films and equipment have been warned by the Department of Commerce to check the revised schedule "B," the list from which shippers must take commodity numbers to put on their shippers' export declarations. These declarations must accompany each shipment and U. S. Customs officers will not pass shipments without the correct commodity number. Commerce officials said they did not believe there are many changes in the numbers for film classifications, but that most equipment numbers have been changed. The revised schedule goes into effect January 1. It is the first revision since 1945. W. E. Votes $ I Dividend The Western Electric Company board of directors in New York Tuesday declared a dividend of $1 per share on outstanding capital stock, payable December 31 to stockholders of record December 23. M-G-M Auditors To Meet M-G-M's field auditors will meet at the Astor Hotel, New York, for four days starting January 4. The sessions will be jointly conducted by Alan F. Cummings, in charge of exchange operations, and his assistant, Harold Postman. Record Making Resumes; Clark Approves Plan Attorney General Tom C. Clark this week declared legal the $2,000,000-a-year musicians' union welfare fund, tentatively agreed on by James C. Petrillo and the record companies pending just such a decision. The new deal was signed in New York Tuesday. Record cutting began almost immediately. The Government's approval of the agreement on the fund, one of the musicians' major conditions before entering a new fiveyear contract with the companies, officially ended the ban on recording making in effect since December 31, 1947. The union and the companies agreed on the trust fund October 27. A day later the proposed contract was submitted to the Department of Justice for its opinion as to the pact's legality under the Taft-Hartley Law. It provides for a $2,000,000 fund, to be financed by a royalty ranging from one cent to two-and-a-half cents per record and to be administered by an impartial trustee. Samuel R. Rosenbaum, a Philadelphia lawyer and director of the Philadelphia Orchestra Association, has been named to the post at a salary of $25,000 a year. The fund will be used for free concerts, to be given by unemployed musicians who will be paid for their services. The request for a legality ruling actually was made to Secretary of Labor Maurice J. Tobin. He in turn asked the Department's solicitor, William S. Tyson, to prepare an opinion. Mr. Tyson answered in the negative the question of whether the agreement, in naming a trustee, violated the section of the Taft-Hartley law which makes it a criminal offense for employers to make any payments to "representatives of his employees" and for the employees to accept such payment. It was this opinion which then was approved by Mr. Clark. As Mr. Petrillo and Frank White, president of Columbia Records and industry spokesman, signed the new agreement, the union head disclosed that the transcription companies would subscribe to a similar contract soon. No change is planned for the ban on film music for television. Grosses Unhurt as Video Unit Opens in Memphis Theatre business remained unaffected in Memphis last week as television station WMCT, this city's first video transmitter, went on the air with a six-hour program. No decline in attendance was reported again by the first runs and the neighborhoods as the station followed its first day of broadcasting with a five-hour program on Sunday. Three of the four downtown first runs had better business that day than the previous week. 24 MOTION PICTURE HERALD, DECEMBER 18, 1948