DECEMBER

ARBITRATION NOW LOOKS LIKE
HOLDOVER FOR JANUARY DATE
Unlikely Industry Leaders
Will Be Able to Convene
Until after holidays
NEW YORK—Ai-bitration discussions
may go over to January after a period of
preliminary sounding-out on the part of
those concerned.
Eric Johnston, MPAA president,
now in
Argentine and expected back Monday (8),
may want to study all the developments
a confer-
before sending out invitations to
ence.
Since National Allied rejected the last
draft of the arbitration plan in Chicago, the
Western Theatre Owners have taken similar
action on the ground that the last draft
doesn't carry out the original outline and
is too wordy.
THREE FOR, TWO AGAINST
This leaves three exhibitor organizations
for arbitration, subject to further negotiations,
and two that have rejected it, as
the plan stands at present. Theatre Owners
of America, Independent Theatre Owners of
New York and the Metropolitan Motion Picture
Theatre Owners Ass'n, al.so of New York,
are the three that have openly stated that
they want further negotiations.
Wilbur Snaper, Allied president, has said
he is willing to go into a conference. Western
Theatre Owners Ass'n, it is believed, would
go along with whatever might emerge, if the
exhibitor groups succeed in getting some of
the legal verbiage eliminated so an exhibitor
can go into an arbitration proceeding
knowing what he is doing without the services
of a lawyer.
This is considered important by smaller
exhibitors, because the consent decree arbitration
supervised by the American Arbitration
Ass'n was so expensive that it fell
of its own weight, even though distributors
were paying the administrative expenses.
How the expense of the proposed system
will be met hasn't been decided yet. That
is one of the problems still to be discussed.
If a December meeting is called, it will have
to be during the December 14-20 week. Holidays
break up the two following weeks.
Allied's board of directors is scheduled to
meet in New Orleans January 10.
SEE SUBSTITUTE ON RENTALS
Since the Allied turn-down of arbitration
at Chicago some distribution attorneys have
repeated that they are still opposed to arbitration
of film rentals. Both distributors
and exhibitors have avoided any comment
on the possibility that arbitration of requests
for rebates where losses can be proved
might be offered as a substitute for the
film rental stalemate. This is one of the
problems that Johnston probably will want
to discuss with company presidents before
calling a meeting.
The other rock in the channel of arbitration
progress—pre-release films on which
advanced admissions are pressured one way
or another—could be settled In the opinion
of a number of exhibitor leaders.
One Vote 'Yes'
OKLAHOMA CITY—Morris Loewenstein,
president of the Theatre Owners
of Oklahoma, reported the board of directors
voted unanimously in favor of any
arbitration plan to be approved by the
national organization. This makes the
eighth TOA unit endorsing arbitration.
One Vote 'No'
COLUMBUS, OHIO—The board of
directors of the Independent Theatre
Owners of Ohio voted to approve action
of National Allied to reject the arbitration
plan in its present form and to
notify Abram F. Myers of the board's approval
of the rejection.
Who Will Control RKO
Still Moot Question
NEW YORK—Negotiations for a transfer of
control of RKO Pictures continued in a
suspenseful state during the week, with the
decision up to Howard Hughes, who usually
weighs the pros and cons of everything so
long the scales creak.
Twice early in the week it looked as though
an announcement would be made momentarily.
The official silence fell and rumors
resumed. Out of these there was gleaned the
following
1. Ralph Stolkin and his associates wanted
to get out and were willing to take a loss
on the initial payment if Hughes would agree.
How much this loss would be figured importantly
in the discussions.
2. It became known that Atlas Corp. was
definitely interested in an effort to put the
company back on the road to profits by
offering management advice and helping the
company to obtain bank credit.
3. Ned E. Depinet, president before the
Stolkin group bought the Hughes stock, was
asked to go to the coast for conferences.
He went Saturday and was still there late in
the week.
4. Atlas Corp., headed by Floyd Odium, the
investment concern which sold the 27 per
cent controlling interest to Hughes several
years ago, continued to figure in the discussions.
One report was that it might assume
management responsibilities if Hughes
reacquired the 1,013,420 shares he sold to
Stolkin and his associates. It was stated
that Odium was not interested in buying back
the Hughes holdings.
This report was generally credited. It was
understood banking interests favored it, and
banking support is important now if production
is to be resumed.
5. Time was pressing because a hearing on
the petition of a small group of stockholders
for the appointment of a receiver is scheduled
for December 10 in the U.S. district court.
The court made it clear that another postponement
might be granted, but a bank
executive pointed out that would solve nothing
until an executive control had been
established at the studio and in New York.
6. Milton Gettinger, New York attorney
who has represented banks interested in film
financing, as well as James A. Mulvey, president
of Samuel Goldwyn Productions, from
time to time, has worked out a plan for
tran.'sfer of control that would take in various
groups that have been mentioned as possible
purchasers or who have vital interests in the
distribution success of the company, as the
Goldwyn and Walt Disney companies have.
Gettinger stated Thursday from Florida,
where he is resting, that the plan had been
discussed by various groups, but that there
had been no joint meetings. It still was in
the discussion stage, he said.
Novel Problem Develops
In RKO Pictures Action
NEW YORK—Can a director of a motion
picture company resulting from divorcement
try to influence the affairs of the other company
resulting from divorcement without
being found in contempt of couit. even
though he is an accredited representative
of clients owning stock in the other company?
Does the fact he is a director in one
company rule him out from representing
the interests of clients in the other company
as an investment counselor?
Those are the novel questions which will
come up for the first time in court Tuesday
(9).
Louis Kipnis, attorney for a minority group
of stockholders seeking a temporary receivership
for RKO Pictures, raised the questions
Tuesday (2) when he obtained a show cause
order against David J. Greene, RKO Theatres
director and investment coimselor, from
Judge Sidney Sugarman in federal district
court. He charged contempt of court.
Kipnis argued that Greene had no right
to be represented by counsel at the November
21 receivership hearing, postponed to
Wednesday (10) for the filing of affidavits.
He held that a section of the consent decree
prohibits any director, officer or employe
of a company resulting from courtordered
divorcement to attempt to influence
the control of the other company resulting
from divorcement, and that Greene did so
when he sided with other RKO Pictures
investors in having counsel ai'gue against
a receiver.
8 BOXOFFICE December 6, 1962