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Abilene Reporter-News, The (Newspaper) - July 14, 1962, Abilene, Texas "WITHOUT OR WITH OFFENSE TO FRIENDS OR 82ND YEAR, NO. 28 ABILENE, TEXAS, SATURDAY MORNING Suit Against MCA Is Filed By BOB THOMAS AP Movie-Television Writer LOS ANGELES fed eral government filed its long rumored Friday against the entertainment indus- try giant, MCA Inc. The firm is the largest producer of filmed television shows, oper- ates the largest talent agency and has big plans for movie produc- tion. The civil action asked U.S. Dis- trict Court to: 1. Strip MCA of its talent arm, which It already had promised to do effective July 13. 2. Compel MCA to divest itself of Decca Records and its sub- sidiary, Universal Pictures, both acquired recently. It claimed the deal violates the Celler-Kefauver Antlmerger Act. _ MCA declined comment pending study of the complaint. MCA President Lew Wasserman has notified the Screen Actors Guild that it will surrender its agency franchise on or before July 18. The guild had previously noti- fied MCA that it was withdraw- ing a waiver permitting participa- tion of talent agencies in film pro- duction. recent merger with Dec- ca Records, parent of Universal Pictures, was expected to result in a new giant among film studios. MCA's Revue Productions has long dominated the television pro' ducting field, with such series as "Wagon "Al- fred etc. The agency end of MCA has handled such performers as Kirk Douglas, Burt Lancaster, Gregory peck, Marlon Brando, Grace Kel- ly, Tony Curtis, Shirley MacLaine, Paul Newman, Jack Paar, Jack Benny, Ingrid Bergman, James Stewart, Fred Astaire, Marlene Dietrich, Henry Fonda, Montgom- ery Gift, .Laurence Olivier and Charlton 'Heston. Possibility of an antitrust suit against MCA'tftflS'.bccn rumored in Hollywood sfhde justice Depart- ment agants months ago began a quiet investigation among agency clients and competitors. NEWS INDEX SECTION A Amusements........., Obituaries 6 Sports Oil news 11 SECTION B Church 2 TV Scout 2 Radio-TV Io9s 2 Women's news 3 Comics Editorials 6 Farm news, markets 10 MCA was started in Chicago in the early 1920s by an eye doctor named Jules Stein. He had put himself through medical school by playing in jazz combos and he saw the need for a booking agency for bands. The business grew un- til he gave up his practice and built a near-monopoly of top bands in the swing era. In the 1930s, Stein switched his interest to Hollywood, buying the agency contracts of many big time stars. After the war, Stein and his young protege Lew Was- serman moved MCA into the vac- uum created because the major studios wouldn't produce for tele- The result was Revue, which bought the sprawling Universal lot and became the leading mak- er of television films. Stein is now chairman of the board. MCA was accused of. operating its television and .talent business- es with a tie-in basis, making pro- ducers buy items they didn't want in order to get stars and pro- or SVX3A 3AV 3-103 9908 Xs 03 UR WORLD EXACTLY AS IT Y-TWO PAGES IN TWO SECTIONS ITIIJOH3IW H Estes Is Declared Bankrupt by R. EWING exceptioi ss for comprehensive coverage. 2. A general decrease in rates jn collision coverage. However, [rivers with no penalty points under the safe driving plan will jenerally pay more after Aug. 1. 3. Generally lower commercial The eight areas where preiri' urns will increase are Houston, Dallas, Fort Worth, San Antonio, Galveston, El Paso, Corpus Christi jaredo and the Beaumont-Port Arthur area. The 56-county area slated for a drop in rates includes Sagle Pass, Crystal City, Cuero, (unction, Karnes City and San Saba. The Texas financial responsi lility law requires drivers to show ability to pay for any damages caused if they are involved in ac- days concerning their plans to seek a permit. McCown and attorney Davis Scarborough were the first to ob tain local clearance papers from District ICB Loyd Owens. Dailey was accompanied to Owens' office later by attorney Dan Sorrells. Owens said the usual procedure is for him to mail the appllca tions to the stato LCB office. "Bu mandamus proceedings against they wanted the clearance for themselves, so I gave it to Owens said. The LCB supervisor said Dailey operates six or seven liquor stores A order demanding that in San Antonio and one in Austin the LCB administrator sip the McCown has package store in probably would be (crests at Odessa. Dallcy will op- and Lubbock were dotted with a on (rounds that the area erate the converted barn liquor store at Impact as Dailey Liquors Owens said. McCown has con 47-acre city. were dropping their 'rice said. "I think the (safe driving) plan had an effect on driving some: motorists out of the insured class, )ut the companies are not re-: quired to tell us if'they are losingl customers and there is no accu- rate way to check. "I think the [rivers dropping cidents. lability Many persons carry insurance to prepare cause of additional cost) will get he said. Price said the new schedule will eventually be replaced with an- other plan. He said he personally favors one basing rates on what the in- surance companies actually pay out to customers involved in ac- cidents. Such a plan, Price said, is used n Canada and was studied by the board before it adopted the safe- driving, or merit rating system. The merit rating system re- varded drivers who had no pen- alty points with a 20 per cent premium decrease. It penalized drivers with six penalty points by doubling policy costs. Points were assessed for traffic tickets and accidents. Proponents, including stock in- surance companies, claimed the Sec RATING, Pg. 2-A, Col. 3 hemselves for meeting this re- sponsibility. "I have been getting a number of letters from drivers saying they More 100-Degree Heat Due; Ballinger Records 103 High Abilene baked in 100-degree tern' perature the third con- secutive day the mercury reach- ed 100 or moro degrees. Ballin- ger sweltered with 103 degrees while Sweetwater and Snyder hac highs of 101. More of the same is due Satur- day and Sunday, with the high loo in Abilene both days, the weather bureau forecast. At least two other cities report cd WO-degree temperatures. Wichi ta Falls had 100 and Dallas hac Us first 100-degrec day since las Aug. 3. Most skies were clear with no clouds to stop the scorching sui rays, Extreme West Texas am the upper coast had a lew clouds and the plains between Amarlllo situation insurance Related Story, Pg. 4-A new and additional capital to be invested in the Estes enterprises. He added that the proposal was turned down by the creditors' com- mittee. Attorney Thornton Bardie, chief counsel for the credit committee, told the court, "We carefuDy con. sidered and then rejected this proposal." Judge Thomason said, "Mr. Gofer's request for more time is denied. If there is nothing further, we will proceed to adjudicate Mr. Estes bankrupt. "The motion to declare Bttlie Sol Estes bankrupt is granted. No plan, or satisfactory plan, has been submitted. Billie Sol Estes is not engaged principally in Cofer said that exceptions were taken immediately to the judge's ruling and he added that he would appeal, saying that the formal appeal would. be made "as soon as possible." Thomason then appointed Harry Moore, a former El Paso banker, trustee of the bankruptcy and gave him 30 days to file a trustees report. Moore has been receiver of the Estes estate. The judge said that the trustee would be required to post a new bond. the, bond will be in the same amount as the 000 surety under which he had been operating as receiver. Cofer then took exception to the power of the court to appoint a trustee at this time and also requested that the schedule of assets and liabilities which were filed in June be withdrawn. The Estes attorney said a new schedule could be filed as soon as the accounting firm of Ernst and Ernst could complete the audit of the Estes financial empire. Cofer said the schedule filed in June was provided by employes of receiver Moore. Creditors' at torney Hardie, chairman of the University of Texas board ol regents, objected to a change of the schedule of assets and liabili- ties. He said the creditors wanted to claim Estes' homestead. But, Cofer told the court that.il was the privilege of a bankrupt to claim his homestead as an exemption to the bankruptcy. The judge then reappointed the same creditors' committee with attorney J. F. Hulse as the chair- Brazil Minister's Approved; Crisis Ended man. dent. Hulse is an El Paso resj- Cofer also took exception to the reappouitment of the com- mittee. He said, "If we didn't have so many lawyers, but had some business men, as a friend of the See ESTES, Pg. 2-A, Col. 6 How New Insurance Rates Affect Area Reporter-News Austin Bureau State Board of insurance's schedule automo- bile insurance rates for policies written or renewed on or after Aug. 1 generally means rate in- creases for the safe drivers who tmve been getting 20 per cent dis- counts because they have had no collisions or traffic law convic tions. For comprehensive coverage the same type of 'passenger ca: used for going to and from work will have an Insurance rate of :or comprehensive coverage in Taylor County and in the Wes Texas counties. The same driver Will pay 'or a deductable collision po! icy in Taylor County, in mos other West Texas counties and in the four West Texas oil coun They mean substantial rate re- ties. ductions for the driver? who have had traffic law violations or con- who owns his own car will paj victions or accidents. The insurance board is aband- oning the merit rating plan. The schedule released Friday means this to West Texnns: For th6 owner of 1961 ford, Chevrolet or Plymouth in Taylor County, the charge for the basic liability policy other West Texas counties with no major city the charge for male driver under a. few thundershowers. Forecast! for the state call lor generally fair and hot weather MructM a MO.OOB building in the with (ew scattered thunder- la Uw extreme wert, The unmarried 'man under for the liability Insuranc which costs his father a yeai in Taylor County. The family protection coverag set. Miss Taylor had finished her major work in the picture May 28: It was her death scene as the vamp of the Nile when the asp bit her on the breast. Then she and Burton went to the romantic Mediterranean isle of Ischla for some other shots. There were reports in New York that 20th Century Fox, anxious about the million poured into the film, had cracked down and ordered no more Taylor scenes to be taken. But this was denied here. A spokesman attached to the pro- duction units said a review o film taken to far had indicated cost in Taylor and all other there was no necessity to any more shots of her, The close of her work on the picture marked the end of tu- multuous odywey for Uw cctrca of any film the hat