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JUL -5 19^*9

le Service Paper of The Motion Picture Industry

CHARLES E. 'CHICK' LEWIS. Editor and

PICTURES REVIEWED:

Slic Fury I Boundaries Private Rngelo Red, ffof and Blue

r

ol Sand e Great Sinner

fre My Everything

jULY 2. 1949 Vol. 51 No. 1

$10,000,000 OF EXHIBITOR MONEY TO BACK PRODUCTION

100 THEATRES RETAINED BY SCHINE IN CONSENT DECREE

JACKSON URGES THEATREMEN TO WIN PATRONS' LOYALTY

REGULAR FEATURES:

Advance Data Selling the Picture

Nationol Newsreel Theatre Management

Regional Newsreel Shorts Booking Guide

Hollywood Newsreel Teotixre Booking Suid'a

Entered as second class matter February 20, 1940, at the Pof Office at New Vork, N. Y., un Published weekly by Showmen's Trade Review. Inc., ISOl Broadway, New York 18, N. Y., U. -

M

M IS

ANSWER!

"EXHIBITOR MAGAZINE" ASKED

AMERICA'S SHOWMEN TWO QUESTIONS POINT-BLANK!

QUESTION NO. 1

I

"Which company's product has meant the most to you at the box-office?"

THE ANSWER:

M-G-M 46.1^c

NEXT COMPANY

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Next . « . Next . . .

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The Friendly Company is deeply grateful to the theatres of Ameri- ca for their overwhelming vote of confidence. M-G-M strives to merit your continued faith by offering when you need them most, the BIGGEST attractions on the market, such as "Neptune's Daughter," "Edward, My Son," "Take Me Out To The Ball Game," "Stratton Story," "Any Number Can Play," "The Great Sinner," "In The Good Old Summertime/ "Madame Bovary" and many others.

Which company's terms do you beHeve to be the fairest?"

THE ANSWER

M-G-M 42.2%

NEXT COMPANY . . 12.1%

Next 10.4%

Next , . 9.3%

Next 8.9%

etc

MiTCHUM FOR mm..,/^oP^/

Adventure with steel-grip suspense in its nerve-[olting drama of two desperate men and a woman who knows every way to a man's heart even to pulling a trigger

R K O RADIO

V

with WTRIC KNOWIES RAMON NOVA8R0 - OOH ALVAfiAQO JOHN QUALEN

Executive Producer SID ROGai Produced by JACK J. GROSS Directed by DON SIEGEl Stfeen Play by GEOffREY HOM£S ond 6ERAID DRAYSON ADAMS Bosecf on the famous Soturtiay Evening Post Story "The Rood to Carmictiael's" fay RICHARD WORMSER

SHOWMEN'S TRADE REVIEW, July 2, 1949

5

CURRENT OBSERVATIONS

The announcement of the formation of National Exhibitors Film Company, hit the Times Square area with quite an impact.

For almost a year Dame Rumor was insisting that a group of top circuit executives were toying with the idea of developing a production and distribution set-up, but from all indications many of the projected ideas ran afoul of the Justice Department on some phases of original plans and the new arrangement seems to be an alternative.

•It is much too early to predict how this new idea will work insofar as relieving the product situation is con- cerned. The mere financing of product does not, in itself, mean that the finished pictures belong to the financing underwriters of the company. Thus, they are financing production of pictures that they must go out and bid for on the open market.

Maybe we're a little dull this hot morning, but it seems very hard to reconcile the operation as outlined with the background of intense realism of motion picture business as we know it hard, that is, without succumb- ing to the temptation of feeling that there's something there which doesn't appear on the surface. Obviously, if a group of exhibitors is going to put up a lot of folding money, they would be expected to see and provide for some benefits or advantages to their immediate situation as buyers of film attractions. Or could it be that we are getting too critical in our old age?

The original and basic plan of some months ago sounded a whole lot more practical. Under that plan the group would form a production and distribution set-up through which the subscribing exhibitors would underwrite the costs for a program of between ten and fifteen pictures which would be played by the sub- scribing exhibitors in their own territory after which the product would become available to subsequent runs elsewhere in that territory.

Not being lawyers or experts on Justice Department thinking, we can only express our own personal views, and they are: that we can see nothing wrong in such a set-up any more than the merchant running a hardware store down the street financing a new household gadget which he would handle exclusively in the town. If that's illegal then we can only plead ignorance of the law.

However, the new picture financing exhibitors are real smart and successful businessmen and they may have a great idea. STR will welcome the opportunity of watch- ing it develop.

Support for the new public relations plan seems to be

piling up in a most encouraging manner. The wider the support and interest, the better will be the chances for its success, especially in the preliminary steps.

But achieving success in these preliminary moves can add up to only so much good as evolves from what will follow. And that must be a carefully prepared and well organized system through which the material for dis- semination to the public can be properly channeled and handled by local theatremen around the country who have close contact and access to the local newspapers and radio stations.

Coordination is the pivot point around which the whole plan must revolve to meet with any measure of success. And after that the plan must be geared so as to maintain the interest and cooperation of those local theatremen or, as has been the case so many times in the past, the enthusiasm and the net results will start to taper off and finally slow down to a walk or a complete stop. Then we are all back where we started.

We can see no single, solitary reason why any exhibitor or exhibitor group would refuse to get behind this move- ment. They have everything to gain and nothing to lose. It's their own business they are protecting and since their effort will be confined to the areas where members ope- rate theatres, much can be gained in the way of public good will and attracting favorable attention and com- ment in those communities.

It will be interesting to check off the names of all those who refuse to cooperate or support this movement. Look carefully behind the reasons for refusals to do so.

"Look for the Silver Lining." A WB picture that is good enough to grace the screen of any theatre in the land. Ideal entertainment for the warm days or the cold days. And well worthy of your best show-selling efforts because your patrons will go out completely satisfied with the show they have seen.

"Come to the Stable," 20th-Fox. Keep your show- manship eye carefully focused on this one. Grapevine reports give every indication that this can turn out to be one of those pictures that will pile up terrific grosses. From where we are sitting, Andy Smith won't have to call any exhibitor meetings to create interest or sales- manship to close deals on this one.

—CHICK LEWIS

SHOWMEN'S TRADE REVIEW, July 2, 1949

WHATS NEWS

In the Film Industry This Week

General

The Department of Justice serves notice

that a circuit can operate as many as 100 theatres without finding itself beyond the border of non-monopolistic practices provi- ded other safeguards to "open towns" and competition in bidding, buying, clearance de- mands, etc., are observed. This was the gen- eral trade reaction to the final judgment, consented to by both parties, in the govern- ment's anti-trust suit against Schine Circuit. The chain is left with about 100 theatres, agrees to various and several conditions as to buying films, operating competitively. Schine Attorney Irving Kaufman said: "By our agreement we are not admitting the allega- tions in the Government's complaint and, in fact, deny that we did in the past, or are now violating any laws, particularly with respect to any of the theatres mentioned in the con- sent decree." ,

Some of the biggest names in exhibition are associated with the big announcement of the week to the effect that the theatremen are stepping in with money to say they'll have something to say about product qualitative- ly as well as quantitatively. At the press in- terview announcing formation of National Exhibitors Film Co., it was made plain by President Si Fabian and Executive Commit- teeman Sam Pinanski that the exhibitor in- vestors who will make funds available to producers not only expect to make a profit but will definitely exercise an influence on the kind of pictures turned out for the theatres. One observer's reaction: the keynote of the prepared announcement and amplifying re- marks of Fabian and Pinanski was maturity of viewpoint definitely manifesting a com- plete confidence in motion picture theatre business and a sense of self-reliance on the part of the well-established theatre owner- operator. This especially was inherent in the replies to questions as to whether the pictures financed by the company would come into the market with any strings attached. The substance was: "we want more pictures of the kind and quality we find successful at our theatres, and we'll stand on our own without fear or favor when it comes to buy- ing and paying for them in open competi- tion." As one observer put it: "the move must be entered as an added symptom that exhibition is fast becoming the dynamic branch of the industry, with production's recession into the background increasing the back-stepping pace that set in with the end of the war boom."

. There's good news this week, provided you don't ask for anything sensational but will be content with a few indications that the box- office downtrend may liave reached its bot- tom. Theatre returns rebounded in April, after dipping to the year's low point in March, Treasury admissions tax collections for May disclosed. May's collections: $30,-

440,912 more than $4,000,000 above the previous month, and well above the May, 1948 total of $28,309,291. And Paramount's Al Schwalberg, during a . press interview Tuesday, said the past ten days have shown the first notable uptrend his company's pic- tures have registered since the slump hit theatre business following the Easter holi- days. One example cited: "Sorrowful Jones" which has been playing the New York Paramount through the hot spell, has regis- tered the largest grosses the theatre has hit this year. Beginning its fifth week Sunday, it appears headed for the longest run at the Paramount in 10 months the last picture to run five weeks being "Sorry, Wrong Number which played the theatre in September, 1948.

TOA's Gael Sullivan has added a third recruit in his persuasion campaign to boost the use of television trailers as a means of winning more customters for the movie theatres. In a letter to Sullivan which the i. OA executive director made public Wed- nesday, Monogram's Steve Broidy endorses the proposal to send samples of films into the homes via video.

Ed Small, independent producer of long standing and consistent success, may change liis status to become the liead man of a Hollywood studio, according to reports of negotiations looking toward the entry ot Small into Eagle Lion as partner and pro- duction head man. Should the deal, which was said to have reached the signing point that many anticipate will occur this week- end in New York, be so consummated it will bring to a conclusion negotiations which have been in process for some time on the Coast.

The Life, and remuneration, of a C'narm Prince of stage and movies begins after 40

for operatic baritone Ezio Pinza, current stage "crush" of gals from 'teen age up, who co-stars with Mary Martin in "South Pacific." Pinza checked out of the Metropolitan after a long career in grand opera to find that a speaking role with a few songs tossed in could be very sweet if one was lucky enough to land in a Rodgers and Hammerstein stage hit. Though following a very busy schedule during a^ brief visit to New York, MGM's Dore Senary found time to negotiate movie deal under whicli Pinza will draw down a reported $75,000 per picture.

Following a joint meeting between Donald Hyndman and Mitchell Wolfson, respectively

chairmen of the SMPE and TOA Television Committees, it was announced Wednesday in New Yorl< that the time for decision on radio vs. cable distribution of theatre television is at hand and that plans will go ahead for a study and prompt action on channel needs with the assembly of such data as necessary to obtain FOC approval of required channel allocation.

INDEX TO DEPARTMENTS

Advance Data 36

Audience Classifications 12

Box-Office Slants 12

Feature Booking Guide , 31

Feature Guide Title Index j 31

Hollywood 1 29

Newsreel Synopses 36

Regional Newsreel 22

Selling the Picture 18

Shorts Booking Guide 38

Theatre Management 16

Views on New Shorts 28

SHOWMEN'S TRADE REVIEW, Title and Trade Mark Registered U. S. Patent Office. Published every Friday by Showmen's Trade Review, Inc., 1501 Broadway, New York 18, N. Y. Telephone, LOngacre 3-0121. Charles E. 'Chick' Lewis. Editor and Publisher; Tom Kennedy, Executive Editor; Rclph Cokain, Managing- Editor; Merlin C. Lewis, Film Advertising Manager; Harold Rendall, Equipment Advertising Manager. West Coast Office, 6777 Hollywood Botflevard, Hollywood 28, California; Telephone, HOIlywood 2055; Ann Lewis, Manager. Londorf Representative, Jock MacGregor, 16 Leinster Mews, London W.2; Telephone, AMBassador 3601. / Member Audit Btu-eau 'of Circulations. All contents copyright 1949 by Showmen's Trade Review, Inc.' Address all correspond- ence to the New York office. Subscription rates; $2.00 per year in the United States and Canada; Foreign, $5.00. Single copies, ten cents.

The News Spotlight

HENRY A. LINET, long as- sociated with Universal-Inter- national, continues in the post he has held for several years as Eastern Advertising Manager under a realignment of the pro- motion department by U-I's National ad and publicity direc- tor, David A. Lipton.

ROBERT W. SELIG, execu- tive assistant to President Rick Ricketson of Fox Inter-Moun- tain Theatres, who has been named for the third consecu- tive year as president of the Board of Trustees of Denver LTniversity, his alma mater.

BOB SAVINI, whose 45 years' active association with film business will be commemorated with a sales drive by Astor Pictures, of which he is presi- dent.

SHOWMEN'S TRADE REVIEW, July 2, 1949

7

Exhibitor Group to Finance Film Making

39 Pledged Investors in Theatremen's Co., With Capital of $10,000,000

A group of 39 exhibitors, associated with more than 20 of the most important theatre- owner companies in the country, has decided to back their confidence in motion pictures with •their own hard cash for financing top-grade product, it was revealed in New York Monday (27th) by S. H. Fabian, president of Fabian Theatres, who announced the formation of Na- tional Exhibitors Film Co., with a capitalization of $10,000,000.

The company will finance film production "to help assure a volume of supply to all exhibitors whether stockholders of this company or not," and to "give exhibitors a voice in motion pic- ture production."

The company is a private venture to be wholly-owned and operated by theatremen ("no public offering of stock is contemplated") and stock acquisitions will he limited to $100,000 per investor. "The corporate structure will be so constituted as to spread control widely," Fabian said. Provision to restrict investors to those actively engaged in independent motion picture exhibition will be made through limita- tions requiring investors to offer their stock to members before sale of any and all holdings in the company.

To Utilize Existing Channels

NEFC does not contemplate engaging di- rectly in production or distribution, but "proposes maintaining sufficient fluidity to make deals with existing producers' who now proceed under ex- isting distribution contracts, but it will also keep the door open to the formation of new production units," Fabian said. Pictures fi- nanced by the company will move into the open market without any booking priorities by NEFC stockholders.

The move achieves a purpose envisioned for many years by theatre owners, said Fabian, who was named president of National Exhibitors Film Co. He will undertake the task of or- ganization of the corporation which it is ex- pected will be in operation within 30 days with the aid of the following executive com- mittee :

Sam Pinanski, president of American The- atres Co., Boston, Mass., as chairman; Ted R. Gamble, president of Gamble Enterprises, Portland, Ore.; Edwin Silverman, president of Essaness Theatres Corp., Chicago, 111.; Myer Schine, president, Schine Circuit, Inc., Gloversville, N. Y.; Frank C. Walker, Comer- ford-Publix Theatres, Scranton, Pa.; M. A. Lightman, president, Malco Theatres, Mem- phis, Penn. ; Harry C. Arthur, president, Fanchon and Marco, Inc. and the St. Louis Amusement Co., St. Louis, Mo.; Fred Schwartz, vice-president and general man- ager, Century Theatres, New York, N. Y.; Sherrill Corwin, Metropolitan Theatres, Inc., Los Angeles, Calif.; and Mr. Fabian.

The entire plan, in concept and proposed op- eration, is a long-range, over-all project aimed to guarantee quality product for the theatres and reflect the box-office in pictures to be made for the market, Fabian said, and this point was further emphasized by Sam Pinanski, who was present at the press interview at which the an- nouncement was made.

Pinanski stressed his point that the company was not formed "to pass money around to pro- ducers" but for the purpose of having theatre interests assume a share in the job of supplying oroduct exhibitors need to protect their "one- billion, nine hundred million dollars" invest-

MGM to Step-Up Releases

The possibility of a step-up in MGM's release schedule to at least three features per month was under discussion in Hol- lywood by Vice-President and General Sales Manager William F. Rodgers with Louis B. Mayer, production head, and Dore Schary, vice-president in charge of production. Such increase would in- dicate a total of from 36 to 40 pictures from MGM during the 1949-1950 season.

Rodgers arrived at the company's studio Tuesday for a three- or four- weeks' stay during which he will discuss forthcoming product with the studio heads and view recently completed films.

meht in theatre properties. The New England theatreman and financier made no effort to dis- guise his apparent impatience with the attitude of those producers who regard the exhibitor as a real estater owning a pile of brick and mortar and devoid of the know-how to guide film making along lines that will make it suc- cessful in' appeal to the public. "There is a crying need," he said, "for the findings and ex- perience at our own box-offices to be reflected in the kind of pictures made for our patrons. And," he added, "we will back up what we say with money."

In further amplification of the company's goals, Fabian said ;

"We move into this project with the greatest goodwill toward all. We realize and sympa- thize with the problems confronting the presently established Hollywood producers.

"There are, however, millions of theatre seats to be served and we propose to see that they are served with the help of established producers and with the help of every ally we can find.

Product Curtailment Factor

"We have seen the drying up of independent production. We have seen the curtailment of schedules of the production companies. We propose to stimulate independent production and this we hope to do in harmony with the estab- lished production institutions and we hope they will wish us well."

Robert Wright, former Assistant Attorney General of the United States who presented the Government's anti-trust suit against Paramount and the major producing and distributing com- panies, is serving as consultant in the formative stages on procedures under the Government decree.

Attending the organizing meetings and pledged

"Guts" are the only thing that keep the in- dependent producer making pictures in view of the stringent conditions banks now place on independent production, W. R. Frank, producer of "The Great Dan Patch" declared in New Orleans last week.

Frank, who is also an exhibitor partner in the Frank & Woempner circuit in Minnesota, arrived in the city to confer with exhibitors on bookings for his new picture. He brought with him a trailer made up of clips taken during the life of the great trotting horse which was run off at a luncheon.

In an interview with STR, Frank deplored the tight money market for production, stating that "most independent producers today are forced to finance their picture in their entirety. You have to have all the cash available, or col- lateral to protect the banks, even to the first

to the objectives and financial support of Na- tional Exhibitors Film Company were these exhibitors :

Robert J. O'Donnell, Edward H. Rowley, John H. Rowley, Harold Robb, Jr., Dallas, Texas ; Willard McKay, George Lynch, Schine Circuit, Gloversville, N. Y. ; Ted R. Gamble, Robert W. Coyne, Lou Gamble, Gamble Enter- prises, Portland, Ore. ; Fred Schwartz, Century Circuit, New York; Edwin Silverman, Essaness Theatres Corp., Chicago ; Samuel Pinanski, Ed- ward Canter, American Theatres Corp., Boston ; Arthur Lockwood, Lockwood and Gordon En- terprises, Boston; Pat McGee, Cooper Founda- tion, Denver; Harry C. Arthur, Jr., Milton B. Arthur, James H. Arthur, Edward B. Arthur, Harry C. Arthur, 3d, Fanchon & Marco, St. Louis Amusement, St. Louis ; S. H. Fabian, Samuel Rosen, Edward L. Fabian, Philip F. Harling, Fabian Theatres Corp., New York; James Sharkey, Cooperative Theatres of Michi- gan, Inc. ; M. A. Lightman, Malco Theatres, Memphis ; Samuel Rinzler, Emanuel Frisch, Harold Rinzler, Randforce Amusement Co., Brooklyn, N. Y. ; Frank C. Walker, Comerford Circuit, Scranton ; Max A. Cohen, Cinema Cir- cuit, New York; Ed. D. Martin, Martin The- atres of Florida, Inc., Columbus, Ga. ; Sherrill Corwin, Metropolitan Theatres, Los Angeles, California ; George Skouras, William White, Skouras Theatres Corp., New York ; Kermit C. Stengel, Crescent Amusement Co., Nashville, Tenn. ; Daniel J. Lewis, Wisper-Wetsman The- atres, Detroit ; E. C. Grainger and Ray Smith, Jamestown Amusement Co., Ohio ; Walter Reade, Jr., Walter Reade Theatres, New Jersey.

Better Films Will Cure Present Slump Nomikos

Van Nomikos, vice-president of Allied The- atres of Illinois and head of the Van Nomikos Theatre Circuit, says that the present business slump in the theatre can be cured by showing better films. Why, he asks, hold back the big ones until late, summer and fall, when they are needed now ? Better public relations from Holly- wood will not help the situation, he holds, but what is needed is better films.

Films now being shown by television stations and the recent acquisition of 12 films by WGN- TV, Chicago, were made for theatres and not for television use and producers, he stated, should bear in mind that box-office receipts will be hurt by this type of competition.

Drive-in theatres may bring temporary in- creased rentals to the film producers, he stated, but in turn will bring reduced rentals from the regular film theatres whose patrons have already seen the films at the drive-ins.

mortgage on a picture. There are no sources of second money available in Hollywood now, and the banks demand an unlimited guarantee of completion, which means that a producer, to make a million dollar picture must have avail- able cash, or collateral to equal $1,500,000,000."

The producer also remarked that the tendency in Hollywood toward economy was resulting in cutting down studio employment.

"There are only 10 to 12 thousand people working in studios today," he declared. "There used to be 50,000. With the cost of production as they are today, I wonder if anyone can make pictures."

As far as exhibition is concerned, he finds neighborhood business in St. Paul and Minne- apolis, where he operates theatres, about 12 per cent off with the downtown houses taking it harder on the chin. Their business, he said in as much as 25 per cent down.

Tight Money Throttles Indie Producer

8

SHOWMEN'S TRADE REVIEW, July 2, 1949

Schine to Sell 40 Theatres; Limits Buying Under Decree

The Schine theatre circuit made its peace with the government via a consent decree entered in Federal District Court at Buffalo, N. Y., on Friday, June 24, with terms disclosing agree- ment to divest about 40 theatre properties (in 39 towns located in New York, Ohio, Ken- tucky and Maryland) and submission to limita- tions on film buys of first-run and upper-bracket product from the major companies.

The settlement would seem to leave the Circuit with about 100 going theatre properties in the four states where holdings are affected plus two theatres in Delaware.

'Strengthens Competition'

While trade circles and the dispatches to the lay press from their Washington bureaus uni- formly indicated that the settlement seemed far less severe than expected insofar as the extent of divestment is concerned, Department of Justice spokesmen hailed the decree as providing for the strengthening of competition in "Schine towns where non-Schine exhibitors bid for first- run pictures," through the combination of the divestment, limitation of Schine's right to bid for top-bracket product, and theatre-by-theatre film buys.

Entry of the final judgment consented to by the parties by Judge John Knight, wrote finis to a case whose history dates back ten years. For it was in 1939 that the government filed suit in Buffalo. Last year the case was carried to the Supreme Court by Schine after the Circuit lost its case in the Buffalo court with a ruling that would have cut its theatre holdings to about SO houses.

The 40 theatres and properties to be divested include four theatres in disuse for some time and two theatre sites. The "divest list" also in- cludes three theatres now closed which may be retained provided Schine puts them in regu- lar operation during the major part of each year.

Restrictions on Film Buys

Of perhaps equal interest to the industry is the further provision which strengthens com- petition in the Schine towns where other ex- hibitors bid for first-run "A" pictures. Except for the towns of Amsterdam, Glens Falls, Buf- falo, Syracuse (N. Y.), and Salisbury, Md., Schine for a period of three years, may not bid for more than 60 per cent, and in some cases not more than two-thirds of the feature pictures released by the majors for first-run in any fiscal year.

The defendants are additionally limited to 48 (but in some cases to S3) of the 80 feature pic- tures which the eight major distributors allo- cate to their highest selling brackets.

In all cases, Schine theatres must bid for films on a theatre-by-theatre basis. Provisions are contained in the judgment designed to prevent the Schine chain from using the combined buy- ing power of its theatres to obtain licenses on terms and conditions which are not also avail- able to independents. Another provision is one requiring the defendants upon request of an independent exhibitor to procure the review of the reasonableness of their existing clearances from the distributors.

The defendant circuit and its subsidiaries are enjoined from acquiring any financial or operat- ing interest in additional theatres without first convincing the court that any such acquisition

would not restrain competition unreasonably.

The Schine Chain agrees to dispose of the following theatres and properties :

NEW YORK

Auburn, Jefferson ; Canandaigua, Lake ; Carthage, bank property and former State Theatre property ; Corning, State; Cortland, Temple; Geneva, Regent Temple, (if not in regukr operation during the major part of each year); Herkimer, Richmond; Little FlUs, Hippodrome; Lockport, Palace or Rialta; Malone, Plaza; Newark. Crescent; Ogdensburg, Pontiac ; Oneonta, Palace or Oneonta; Oswego, Strand, Capitol, (if not in regular operation during major part of each year); Perry, vacant lot; Rochester, Madison or Mon- roe and Riviera or Liberty ; Sakmanca, Andrews ; Sene- ca Falls, Seneca ; Watertown, Palace.

OHIO

Ashland. Palace; Bellefontaine, Strand; Bucyrus, Southern; Delaware, Star; Kent, Oper:.i House, 1; Ravenna, Ohio, 1 ; Piqua, Miami or Piqua, Bijou, (if not re-opened by Schine defendants witliin three months from entry of judgment and kept in operation during the major part of each year) ; Van Wert, Strand ; Wooster, Oper^' House or Wayne or Wooster, at buyers' option; Tiffin, Ritz or Tiffin (unless the Schine defendants no longer have any interest in, or control over, any theatres in Fostoria) ; Mt. Vernon, Vine. 2 ; Norwalk, Moose.

KENTUCKY

Corbin, Kentucky ; Lexington, Kentucky or Strand and one other, not the Ada Meade ; Maysville, Holly- wood, Paris, Bourbon.

MARYLAND

Cambridge, Arcade or iState, 3 ; Easton, AvE-lon or New Easton, 3 ; Cumberland, Liberty ; Salisbury. Arcade Theatre site, if Schine desires to replace with new theatre on new site in accordance with order of Judge Knight dated Oct. 15, 1948.

1. /)'• lieu of selling oyie theatre in each town, de- fendants may dispose of both theatres in either town.

2. If the ownership and operation of either the Vernon Theatrt or the Memorial Theatres shall be per- manently disposed of to a person, who (1) will use it as a motion picture theatre, (2) is not a defendant or owned or controlled by or affiliated with or related to a defendant, and (3) is not an exhibitor now operating in Mt. Vernon, the Vine Theatre need not be disposed of.

3. In lieu of disposing of any theatre in Cambridge defendants may dispose of both theatres in Easton.

In addition to the conditions limiting buying in competitive first-runs, percentage of- buys of top-bracketed product from the majors, and divestment the decree enjoins Schine from:

Attempting to control admission prices by others by agreement with distributors ; demand- ing or receiving clearance over theatres not in substantial competition, Schine agreeing to ar- bitration complaints of unreasonable clearance by competitors ; from asking or receiving dis- criminatory terms or conditions not available to competitors ; from making franchise agree- ments, formula deals, master agreements or blanket deals covering licensing in more than one theatre ; from making or continuing to per- form pooling agreements ; from enforcing any existing agreements not to compete or restrict use of any real estate to non-theatrical pur- poses ; from -using any threats or deception as a means whereby a competitor is induced to sell or is prevented from acquiring or operating a theatre ; from booking for any theatre other than those in which the defendants won a fi- nancial interest ; from cutting admission prices for the purpose of eliminating or preventing competition. Also, Schine agrees to dissolve the existing pooling arrangements at Fostoria and Medina, Ohio.

57 Shorts From 20th-Fox

Twentieth Century-Fox will release 57 short subjects and 104 issues of Movie- tone News during the coming year, Short Subjects Sales Manager Peter Levathes announced at the company's annual Ca- nadian Sales Meeting in Toronto.

The program includes 12 sports reels, three Name Band Musicals, two Lew Lehr comedy reels, two Movietone Ad- ventures and one specialty reel, all to be produced by Movietone; 13 March of Time issues; and 24 Terrytoons in Tech- . nicolor, of which four will be reissues. New formats will be introduced into the newsreel.

Schwalberg Outlines 'Security^ Contract

Announcing a release schedule of eleven fea- tures, including national re-issue of "Holiday Inn," for the remainder of 1949, Al W. Schwal- berg, Paramount's vice-president in charge of distribution, outlined in New York Tuesday the recently-developed "Exhibitor Security Service Contract," designed to "provide a backlog of product" for smaller theatres under an inclusive deal covering a quantity of features. The idea be- hind the "Service Contract," Schwalberg said, was to enable exhibitors in locations remote from exchange centers and not receiving fre- quent calls from salesmen to make provisions for forthcoming availabilities. The contract has been written with a limited number of accounts in some Paramount exchanges and will extend to others as rapidly as facilities in the individual branches permit. He estimated as "about 3,S00" the number of theatre accounts that may be in- terested in and eligible for such contracts.

'Heiress' Pre-Release

In addition to the eleven productions set for definite release between July and December 1949, there probably will be some pre-release showings of Paramount's big picture of the season, "The Heiress," in late December, Sch- walberg said. While "The Heiress" is to receive special handling, there will be no advanced ad- mission or two-a-day showings.

The pictures set for release are : "Sorrowful Jones," July 4 ; "Special Agent," July 22 ; "Great Gatsby," Aug. 5; "Red, Hot and Blue," Sept. S ; "Rope of Sand," Sept. 23 ; "My Friend Irma," Oct. 7; "Song of Surrender," Oct. 21; "Top O' the Morning," Nov. 11; "Chicago Deadline," Nov. 2S ; "Holiday Inn," Dec. 2 ; "The Great Lover," Dec. 25.

Paramount's biggest male stars, Bing Crosby, .\lan Ladd and Bob Hope, each are represented in two pictures on the schedule for the last half of the year. Crosby with "Top O' the Morning,"' and the re-issue of "Holiday Inn" ; Ladd with "Great Gatsby," and "Chicago Deadline," and Hope with "Sorrowful Jones" and "The Great Lover."

Rules KB'Warner Pact Illegal

Federal Judge Matthew McGuire this week dismissed the K-B circuit's motion for a court judgment ordering Warner Bros, to dispose of its share of their partnership in the MacArthur Theatre by transfer to K-B.

McGuire held that the original contract under which the joint ownership of the MacArthur was set up, and which called for sale of stock to the other partner in the event of dissolution, is illegal in the light of the Supreme Court decree in the Paramount case, which banned such joint ventures.

On the same grounds he threw out a motion by Kass Realty Co. for a judgment on the contract under which Kass was to build a second house for one or both of the partners, or receive $100,000.

SHOWMEN'S TRADE REVIEW, July 2, 1949

9

Monogram Acquires Three More Key-City Exchanges

Monogram President Steve Broidy announced early this week that the company had acquired from Mrs. Lon Fidler, widow of the late owner of the exchanges, fran- chises for Denver, Salt ' Lake City and Kansas City, effective July 1. This brings to 12 the number of exchanges now owned by Monogram, exclusive of Monogram's half interest in the Portland and Seat- tle branches.

Harold Wirthwein, newly-named western di- vision sales manager for the company, went to Steve Broidy

Kansas City to install

T. R. ('Tommy') Thompson, Jr., as new man- ager of the Kansas City branch. Thompson was formerly district sales supervisor for Walt Disney Productions, and previously was district manager for United Artists for Kansas City. St. Louis, Omaha and Des Moines.

Report RKO Rentol Terms Rejected by Richards

RKO is the latest major distributor to join the list of "outs" in the Paramount-Richards circuit. The company's product was reported yanked when President E. V. Richards, who sold his stock recently to Paramount but who continues to direct the company until early in 1950, refused to agree to RKO's new rental terms and film classifications.

MGM and Universal-International sold away from Paramount-Richards and its affiliates sev- eral years ago, and more recently Paramount sold away from its own partner after Richards had refused it higher rentals. Paramount Gener- al Sales Manager Al W. Schwalberg visited New Orleans two weeks ago in an effort to remedy the situation but insofar as the film row in New Orleans knows, did not succeed in get- ting his product back into the circuit.

Ky. Requires Permit On Theatre Ad Material

The Kentucky Department of Revenue has issued an order, effective at once, that all amuse- ment advertisements including handbills, posters, tickets and other printed advertisements pertain- ing to the sale of admissions must show the per- mit or code number assigned by the revenue department.

The regulation applies to all persons vending taxable admissions to places of entertainment, who must procure the permit before engaging in such business.

'Go Ahead, Sue/ Jones Percentage Suit Retort

"Go ahead and sue," Exhibitor Jesse Jones, operating two houses in Portland and two in Dallas, Ore., says was his reply to the threat- ened percentage fraud suits against him on the part of Paramount, RKO and MGM. Jones states that for the past three years the com- panies had been threatening to sue him on al- leged percentage frauds, and finally he told them to go ahead with their suits.

Conn. Drive-In Bill

There is talk in the Hartford, Conn., film trade that House Bill 1163, which would prohibit con- struction of drive-in theatres along state aid or trunk line highways within Connecticut, will not pass the Legislature during the 1949 session.

1949 Production Close To '48 Hali'Way Mark

At the year's halfway mark, 136 American features have gone before the cameras, accord- ing to STR's product data. Only 53 pictures were started during the first quarter of the year, with the second quarter showing 83. Production got off to a much slower start in 1949 than last year, but this year's rate has been steadily catching up and is now only 12% behind that of a year ago, when the count was 155 pictures. A month ago the lag was 16% two months ago 24%, three months ago 28%^.

The latest monthly check of the STR booking guide shows as happy a production picture as it has any time this year. As of July 1 there were 244 features in release from the 12 distributors checked, 3% more than on the same day a year ago, and 222 pictures (completed or in produc- tion) scheduled for later release, 13% fewer than on the same day a year ago. All figures are exclusive of series, westerns and re-issues.

The breakdown by companies :

Allied Artists 1949: Released 5, Unre- leased 1, Started 0; 1948: Released 5, Unre- leased 4, Started 1. Columbia 1949: Released 37, Unreleased 34, Started 20; 1948: Released 33, Unreleased 32, Started 21. Eagle Lion 1949: Released 26, Unreleased 18, Started 2; 1948: Released 27, Unreleased 20, Started 11. MGM— 1949: Released 21, Unreleased 27, Started 18; 1948: Released 22, Unreleased 20, Started 8. Monogram— 1949: Released 16, Unreleased 6, Started 8; 1948: Released 19, Unreleased 10, Started 13. Paramount 1949: Released 17, Unreleased 21, Started 12; 1948: Released 19, Unreleased 25, Started 12. RKO —1949: Released 19, Unreleased 23, Started 9; 1948: Released 17, Unreleased 26, Started in. Republic— 1949: Released 18, Unreleased

11, Started 12; 1948: Released 18, Unreleased

12, Started 14. 20th-Fox— 1949 : Released 28, Unreleased 22, Started 14; 1948: Released 25, Unreleased 31, Started 20. United Artists 1949: Released 19, Unreleased 12, Started 8; 1948: Released 17, Unreleased 15, Started 6. Universal-International 1949: Released 20, Unreleased 21, Started 15; 1948: Released 20, Unreleased 36, Started 17. Warner 1949: Released 18, Unreleased 26, Started 8; 1948: Released 15, LTnreleased 25, Started 17.

Schaef er Forms New Sound, Projection Service Firm

A third nation-wide servicing organization. Image and Sound Service Corporation, has been formed to service theatres in all matters relating to projection, sound and television. Organizers include Georgj J. Schaefer, formerly president of RKO, who has been elected chairman of the board of the new company; and Lawrence J. Hacking, who for the past 20 years has repre- sented Erpi and Altec in New England, and who assumes the presidency of ISSC. Headquarters of the new company are in the Paramount Bldg., New York.

ITO of Arkansas Sets Up Public Relations Plan

A public relations program aimed at getting more people in the theatres of Arkansas was unanimously adopted by the new board of di- rectors of the Independent Theatre Owners of Arkansas at its first meeting June 22 at the Hotel Marion, Little Rock. A brochure, which will contain the full plan for public relation ac- tivities, will be mailed to every theatre in the state whether or not they are members of the ITO. with emphasis on the exhibitor's responsi- bility to his own community and to the industry.

Essaness Buys Woods