Motion Picture Herald (Jul-Sep 1953)

STANLEY GETS AN EXTENSION Wins 6 More Months to Dispose of 24 Houses; Suit Asks Zone Change Trust news bubbled up on many fronts last week. In Washington the Justice Department granted Stanley Warner a six-month extension— until January 4, 1954— to dispose of 24 theatres which remain to be sold under the original Warner consent decree. Justice officials said the circuit has sold 30 of the 54 theatres required to be sold under the decree, half by January 4, 1952, half by January 4, 1953. Had Previous Extension Warners got a six-months’ extension on the deadline for disposing of the first half and met that deadline in July, 1952. The deadline for the remaining half was extended from January 4, 1953, to July 4, 1953, prior to the extra six-month extension granted last Friday. In Chicago the Melbro Amusement suit seeking consolidation of three bidding zones into one so that the Rockne theatre would not have to play day and date with two or three other theatres in its general area was dismissed without prejudice by Federal Judge John P. Barnes at the request of the plaintiffs who do not find it opportune to carry on litigation against the defendants at this time, the defendants being the eight major film companies. The deterent to continuation of the case is the present state of the plaintiff’s business, which, it was pointed out, makes it difficult for them to finance the preliminary action necessary to prepare a case for hearing. Dismissal of the suit without prejudice means that it can be reinstated at any time the plaintiffs wish to do so. Schine Asks Extension In Buffalo a bid to hear arguments in the Schine Theatres case on July 20 in Federal District Court was incorporated in a Schine motion to extend its deadline for selling 25 theatres as required by the Schine consent decree. The motion also stated that a request will be made to modify the terms of the decree because of the present state of the motion picture industry, as compared to the 1949 period at which time the decree was handed down. In the court’s anti-trust judgment, Schine Theatres was ordered to dispose of 39 theatres within three years after the decree, but obtained extensions after disposing of 14. In Washington a Senate Small Business sub-committee investigating industry trade practices decided that a Justice Department report is “vague” and “unsatisfactory,” and has asked the D. of J. anti-trust division officials to appear at public hearings to answer further sub-committee questions. Asks Personal Appearance The request was sent out by sub-committee chairman Schoeppel to Stanley N. Barnes, head of the anti-trust division of the Justice Department. Senator Schoeppel indicated he would like Mr. Barnes and his aides to appear before the sub-committee later in the week. Sub-committee hearings ended abruptly some weeks ago with Senator Schoeppel announcing that Justice Department officials, long awaited as the crucial witnesses, would file a statement rather than appear in person. The Justice Department sent the subcommittee recently a 20-page report commenting on the various problems raised at the hearings. The sub-committee never made the report public. But sub-committee officials said the report did not cover many of the points that the Senators wanted covered, and was vague on many others. For example it was reported/the Department never made clear its attitude on many of the complaints filed by exhibitors with the anti-trust division over recent years. Hence the sub-committee has asked the Department to take the stand at the public hearings and answer more fully. Harrison Plans 3-D Equipped Drive-In WAY CROSS, GA.: Plans for construction of a new 400-car, 3-D-equipped drive-in have been completed by John Harrison, Waycross City manager for Georgia Theatres, and former Quigley Award winner. The circuit recently purchased the Waycross drive-in which will be operated until the new drive-in is opened. The Waycross has been reopened after a shutdown of several weeks for repairs. Mr. Harrison also announced the promotion of Freddie Crosby to manager of the Ritz and Harold Linton to manager of the Waycross Drive-in. Louisville House Installs New Stereo Equipment LOUISVILLE, KY.: The Rialto theatre, owned by the Fourth Avenue Amusement Company, here, has installed one of the first wide-screen and stereophonic sound systems in this area of the country. Johnson J. Mussellman, executive director of the theatre, had the equipment flown in from all sections of the country in order to meet a July 2 deadline set by the company. The curved screen is 20 feet high and 50 feet wide and is equipped with draw curtains for masking purposes. The new sound system uses 24 auditorium speakers and three stage speakers. Strike Halts Production In Mexico MEXICO CITY: The Mexican Labor Ministry is considering the request of 19 producers against whom technical and manual workers sections of the Picture Production Union are striking to enforce demands for a 40-hour week, that the shutdown be declared illegal. The producers say the strike has suspended the making of 44 pictures which they value at $4,000,000. The National Cinematographic Industry Workers Union (STIC) is backing the strike, in accordance with the recent friendship and solidarity pact made by STIC and STPC. The strike is not in the least affecting exhibition. All exhibitors here obtained two years of labor peace by granting their unionized help — STIC members — a 12 per cent pay hike. The National Cinematographic Board, of which Jose Lelo de Larrea is chairman, placed at 310 yearly the top number of foreign pictures that can be imported, as asked by the STIC and STPC. STPC has asked President Cortines to prevent dumping in Mexico of U. S. pictures which TV has made below standard for American exhibition and which, according to STPC, exhibitors in Mexico would snap up because of the very low rental prices at which these films would be offered. Meanwhile, STIC is pressuring Mexican distributors with the threat of a strike August 1, to increase salaries 12 per cent. STIC has allowed the nine U. S. companies until July 31 to meet its demand for a 10 per cent wage increase and to withdraw the companies’ counter demand for time clocks for union employes. Weill Gets Italian Films for Television A two-year television distribution agreement involving advances of approximately $1,000,000 for 104 American-language Italian films has been concluded by Jules Weill, president of Specialty Television Films, Inc., and a group of Italian producers. The deal includes Italian product produced during 1949-1953. The dubbing program will begin immediately, and the first package of films will be ready for release some time in September. Mannix Gets New Term Contract at MGM Studio HOLLYWOOD : E. J. Mannix, a MetroGoldwyn-Mayer vice-president and general manager of the company’s studio at Culver City, has been signed to a new long-term contract. Mr. Mannix went to MGM in 1925, after having held numerous positions in exhibition and in theatre operation with Loew’s, in New York. 20 MOTION PICTURE HERALD, JULY II, 1953