Motion Picture Herald (Jan-Mar 1954)

Senate Unit To Decide on Film Study WASHINGTON : The Senate Small Business Committee probably will decide in the next week or 10 days whether it should continue to keep an eye on film industry trade practices. Committee officials said last week they thought most members would feel the Committee already had devoted enough time to the industry and that Committee energies should now be turned to other fields. A sub-committee headed by Sen. Schoeppel (R., Kans.) held hearings last year on trade practices and submitted a report in August. Last fall it asked the Justice Department for a progress report on sub-committee recommendations, and last week Sen. Schoeppel released the Department’s answer. Asked whether this wound up the subcommittee’s work in the film field, Sen. Schoeppel said the committee's agenda for the coming year would be mapped out at a meeting in the near future and that he would not predict in advance what decision would be made. Justice Department officials expressed pleasure that Sen. Schoeppel had finally released the Department’s stand. They said they felt the letter set forth in detail for the first time the Department’s views on prerelease practices, and that the distributors should be in a position of knowing these views. One department official summarized the the department’s stand as follows: The Department feels that obviously all pre-releases are not illegal, as argued by some exhibitors ; but on the other hand, it wants to serve notice that the distributors might be opening themselves to new anti-trust action if they extend the pre-release practice too widely. Nevertheless, Abram F. Myers, Allied States general counsel, declared that the letter “does nothing to dissipate the fog that is slowly enveloping Washington.” Mr. Myers said that from the letter, “I do not know whether the Department of Justice thinks pre-releases are unlawful or not. I cannot get disturbed about the letter because it apparently doesn’t say anything or mean anything.” Chicago Tax Collections Show December Increase CHICAGO : Chicago’s amusement tax figures, released this week, show $1,118,039 taken during 1953, as against $1,044,414 during 1952. December theatre collections show $108,789, against $95,987 in the same month of 1952. Fewer theatres operated in 1953; so the conclusion of city reporters is that the increase is the result of higher prices for CinemaScope, 3-D, Cinerama, and greater attendance and/or higher prices because of a great number of popular pictures. Goldwyn's "Best Years" in Big Washington Premiere An invitational black-tie opening of Samuel Goldwyn’s reissued RKO Radio release, “The Best Years of Our Lives” will bring out the highest level government and diplomatic personalities at its Washington opening, February 3, in the Keith’s Theatre. The White Ffouse Correspondents’ Association is sponsoring. At least two of the film’s stars, Teresa Wright and Flarold Russel, are expected to attend. Some of those who have accepted invitations are Secretary of the Treasury George C. Flumphrey, Defense Secretary Charles E. Wilson, Governor Sherman Adams, Associate Supreme Court Justices Sherman Minton, Stanley Reed, William Douglas ; Speaker of the Ffouse Joseph W. Martin, Jr., Minority Leader Sam Rayburn, and many others. Tax Revenue Reported Off WASHINGTON : Federal general admission tax collections from July through November, 1953, ran about 7.4 per cent behind the like 1952 period, The Internal Revenue Service has reported. The figures are not strictly comparable, however, due to a switch in July, 1953, from a monthly to a quarterly reporting require The Service said that in the fiscal year which started July 1, general admission tax collections through November amounted to $135,887,000, compared to $146,669,000 in the earlier year. November, 1953, collections amounted to $55,073,000, compared to $25,007,000 in November 1952, the Service said. However, this comnarisnn is cnmoletelv meaningless, since very large amounts were reported in November this year which actually were collected in August, September and October. In 1952, reporting was on a monthly basis. Columbia Executives Use Stock Options WASHINGTON : Columbia Pictures executives have exercised common stock options under which a total of 34,735 shares were issued by the company, the Securities and Exchange Commission has been informed. Columbia reported that during the month of December, common stock under option agreements went to A. Schneider, vicepresident and treasurer ; A. Montague, vice-president; Joseph A. McConville, vicepresident ; and Irving Briskin, production executive. The company reported that as of December 31, 1953, before giving effect to the 2 y2 per cent common stock dividend payable January 19, there were 740,948 shares outstanding. The payment of the stock dividend, it was added, will bring the number of outstanding shares to 759,472, which compares with 688,988 shares outstanding as of June 27, 1953. See Merger Of Universal And Decca Reports were circulated in New York this week that a merger of Universal Pictures with Decca Records will be proposed and adopted at the annual meeting of Universal stockholders in March as Decca last Friday offered 145,842 shares of its stock in exchange for Universal stock in ratio of two shares of Decca for one of Universal. If the full tenders of Universal stock are received, the additional 72,921 shares which Decca would then hold would give it 66.88 per cent of the 1,006,260 shares of Universal common outstanding. Inasmuch as a merger of Universal with Decca must be approved by 66j^ per cent of the outstanding stock Decca would be in a position to approve the merger without support from any other stockholders. As of December 31 Decca owned 600,075 shares of Universal common, or 59.6 per cent. The offer to exchange the 145,842 shares of Decca’s authorized but unissued capital stock for Universal's common at a two-for-one ratio will expire February 8. Tenders received until January 27, Decca said, if calling for more Decca stock than is available, will be pro-rated and no tenders will be accepted thereafter. If tenders received to January 27 do not call for more Decca stock than is available, all will be accepted and tenders received thereafter will be accepted on a first-come, first-served basis, Decca said. Guaranty Trust Company is the exchange agent. Universal common, which has been in good demand on the New York Stock Exchange for many weeks, is selling at 19 and a fraction per share. Decca is selling at 10 and a fraction. Will Defy Ad Code on U.A. "Act of Love" The text of a letter written to Eric Johnston, president of the Motion Picture Association of America, has been made public by Max Youngstein, United Artists vice-president, in which he charged that the industry Advertising Code Administration has unfairly discriminated against the company in disapproving advertising material for Benagoss Productions’ “Act of Love.” The picture has been granted a Production Code seal but some of its advertising material prepared for the film has been rejected. Myer Beck, representative of Benagoss, said the company is “taking an official position of defying the Advertising Code Administration’s position on several of its ads.” Mr. Youngstein’s letter to Mr. Johnston expressed the opinion that “a different yardstick is being used with respect to our (U.A.’s) advertising than is being applied to other companies.” The letter proceeds to cite examples of approved advertising alleged to be in the same vein as that disapproved for "Act of Love.” MOTION PICTURE HERALD, JANUARY 23, 1954 25