Motion Picture Herald (Jan-Mar 1956)

TOLL TV AGAKV IS IJlVDER FIRE . . . Committee Against Toll TV attacks Zenith proposal that medium get FCC approval to raise funds for UHF aid Toll television returned to the spotlight last week when the Joint Committee Against Toll TV blasted Zenith Radio Corp. for suggesting that subscription television be approved by the Federal Communications Commission as a way of raising revenue for UHF television stations in financial distress. Zenith had advanced this suggestion in comments filed with the FCC in December in connection with the commission’s study of the de-intermixture problem and ways of helping UHF stations. The Joint Committee said Zenith’s suggestion has no place in the de-intermixture proceedings and should be fought out and decided in the separate proceedings the Commission had under way earlier on subscription television. “\o/ « Soapbox’^ In announcing its plans to issue rules on de-intermixture, the Commission made it clear, the committee said, that “this proceeding was initiated to consider allocation and kindred technical matters and was not intended to be utilized as a soapbox for the presentation of economic panaceas. “The need for a solution of the allocation problems, the fact that economic factors are involved in the current UHF problems and the difficulties inherent in making significant allocation changes all combine to give the Zenith proposal an insidious appeal,” the FCC was told. Suggestion Inconsistent^^ The Joint Committee also argued that Zenith’s suggestion of toll TV for the UHF stations was “wholly inconsistent” with its previous long-standing position that toll TV not be confined to UHF stations. It quoted statements from earlier Zenith pleadings to back up this assertion, and then declared that “in order to take advantage of the Commission’s present concern with the problems of UHF (and to avoid any close public scrutiny of its own proposal), the Zenith chameleon has now changed its colors and presents itself as the saviour of UHF.” The committee added that if the commission should consider toll TV as part of the deintermixture proceedings, it should carefully consider all the material filed in the separate toll T\' proceedings and “at the very least the two dockets should be consolidated.” It was learned this week, however, that at least two of the three major proponents of toll TV — Zenith and Skiatron — have ap proached the Senate Commerce Committee with an eye to testifying at television hearings late this month. Spokesmen for the Joint Committee said they would probably appear if Zenith or Skiatron does. Last week Warren Magnuson (D., Wash), Commerce Committee chairman, said the committee would hear industry and public witnesses during the week of February 27 and he listed subscription television as one of several problems about which the committee is interested. Another committee official said he didn’t see how the committee now could avoid taking some testimony on subscription television. He said the committee had originally been concerned mainly with the problem of UHF stations, but pointed out that Commissioner Robert E. Lee has urged the committee to consider toll TV as one solution to UHF in financial difficulties. This brought the whole matter before the committee and it will have to follow through, the official believed. The Joint Committee pointed out, however, that Mr. Lee admitted the FCC, under any toll TV authorization, would have to regulate toll TV rates. And there is considerable doubt whether the FCC now has the power to do this, it said. Attack Zenith Vietv Both the American Broadcasting Company and the Columbia Broadcasting System, in separate statements, also attacked Zenith’s position. CBS said the introduction of the subscription television issue is completely “inappropriate” and the “interjection of unrelated and extraneous matters at the present time” could only cloud the real problem and delav the solution of the VHF-UHF difficulty. ' Meanwhile the New York City Council’s Rules Committee conducted a public hearing on subscription television last w'eek and on PYbruary 14 the full council voted 19 to nothing, with three members abstaining, to condemn pay TV. The hearing was not attended by the three major toll TV companies. Opposition Cites Reasons Councilman John J. Merli, committee chairman, had announced the committee would study the resolution by Abe Stark, president of the Council, condemning toll TV. The committee voted on the measure before announcing its recommendations at the full City Council meeting. Mr. Stark, in addressing the public hearing, said the adoption of pay-as-you-see TV would reduce retail trade, create unemployment and deprive New York of essential tax revenue. Morris lushewitz, secretary-treasurer of the New York City CIO Council and James Quinn, secretary-treasurer of the Central Trades Labor Council, advised the rules committee that organized labor throughout the U. S. is opposed to subscription TV. Marcus Cohn, counsel for the Committee Against Toll TV, said the absence of representatives of Zenith, Skiatron and International Telemeter Corp., on the grounds they had “insufficient time” to prepare their arguments, “is an insult to the Council.” James M. Landis, special counsel for Skiatron, had advised Mayor Robert F. Wagner in a letter that the open hearing “was frittering away time and wasting ta.xpayers’ money.” Kaimus Reveals Latest Plans for Technicolor HOLLYJl’OOD : Further progress toward Technicolor’s entry into the mass consumer color field was indicated recently when Dr. Herbert T. Kaimus, president and general manager of Technicolor Motion Picture Corporation and of Technicolor, Inc., announced that 35mm Kodachrome processing by Technicolor is expected to be available to the amateur photographer in May. A $650,000 investment is being made for this processing, he added, in announcing the appointment of Dr. Leroy M. Dearing to the post of technical director for the newlycreated Amateur Color Processing Division. Dr. Kaimus also revealed that additional funds amounting to $1,200,000 have been appropriated by Technicolor for the increasing amount of research which the company will conduct during 1956 to improve the quality and service of its products for the industry. James R. Velde Is U,A. General Sales Manager James R. Velde has been appointed general sales manager of United Artists, it is announced by William J. Heineman, vicepresident in charge of distribution. Mr. Velde has been western division manager for UA since 1952. He replaces B. G. Kranze, who has resigned to become vicepresident of Stanley Warner Cinerama Corp. Mr. Velde assumes his new post February 27. He entered the industry in 1934 with the Paramount exchange in Detroit. After World War II army service, he held sales posts with Paramount in Detroit and Washington, and later did sales work for Selznick and Eagle-Lion. Goldwyn, Jr., to Commence "Sharkfighters" March I HOLLYWOOD : Samuel Goldwyn, Jr., has set a March 1 starting date for his second film, “The Sharkfighters,” which he will produce for United Artists release. Victor Mature will be starred, and Jerry Hopper will direct. The film, in CinemaScope and color, will be made in Cuba. His first film was “Man with the Gun.” 28 MOTION PICTURE HERALD. FEBRUARY 18. 1956