Showmen's Trade Review (Oct-Dec 1941)

Page 6 SHOWMEN'S TRADE REVIEW October 11, 1941 WB Won't Sell In Minnesota Sears Says Exhib Group Is Responsible For State Law Following a ruling by Judge Hugo Hanft in Minneapolis Saturday that Minnesota's law outlawing sales of film in blocks of five was constitutional, Warner Bros, announced that while it would appeal the decision, meantime it would continue to sell pictures under the consent decree. This statement was interpreted to mean that the company would not sell in Minnesota. An appeal was made to Gradwell L. Sears, Warner general sales manager, by T. E. Mortensen on behalf of Minnesota theatremen who face immediate closing through lack of product. None of the five consenting distributors have agreed to sell in Minnesota because of the restriction of the new law which prohibits any distributor from selling less than his entire year's output at one time. United Artists has refrained from selling for the same reason, as the company's policy is to sell in groups by distributors. Thus there is a distinct shortage of first run product throughout the state. The Friedl group of theatres, Paramount affiliate, has been enabled to play Paramount pictures, because the consent decree specifically nrovides that a distributor may sell to its own theatres. Warner Bros.' statement is in part an explanation of the dilemma in which the companies find themselves. If they were to sell in Minnesota under the block-of-five plan, they would be violating the state law ; if they sold their entire year's product, they would be violating the consent decree. Sears' statement acknowledged that the company deplores its loss of revenue in the state and more particularly its loss of public response to its attractions but, it concludes, "the responsibility is not Vitagraph s, but lies at the door of that exhibitor group who sponsored this legislation." HONORED GUEST Nate Blumberg, Universal president, greets Director Henry Koster at a cocktail party given for the latter marking the opening of "It Started With Eve," Universal film which he directed, at the Radio City Music Hall. SELZNICK JOINS UNITED ARTISTS David 0. Selznick, Mary Pickford, Charles Chaplin and Alexander Korda, who signed the contract by which Selznick became a United Artists partner, affixing their signatures to the $1,000,000 deal at Pickfair last Sunday. (See Page 25) Kuykendall Warns on Taxes Urges Exhibitors to Be on Guard Against New Levies; Says That They Cannot Entirely Be Passed on to Public Warning of new taxes to come, Ed Kuykendall, president of the MPTOA, in a bulletin to members this week urged exhibitors to be on their guard against State Legislatures which may seek of revenue by taxing new sources admissions still further. He pointed out that the industry was only saved from a IS per cent admission tax through last minute united effort by all of the organizations which fought the increase successfully. Kuykendall also pointed out that no admission tax is passed entirely on to the public. "The plain fact is that any increase in admission prices decreases attendance," he said. He added the thought that because film rentals are based on box office receipts, that ultimately part of any tax on admissions will be deducted from the returns to the producers and distributors. Although he did not mention it by name, Kuykendall referred to the resolution for a cooperating committee which was introduced at the recent Allied States Convention. "Before any new elaborate organizations are set up to issue decrees and run the business, some consideration should be given to working out a program of what ought to be done and what it is possible to do. A constructive, practical plan or program to improve our business and to solve any of our vital problems and difficulties will get a lot more sincere support among responsible theatre owners throughout the country than any scheme for a new 'high command' that is likely to create issues rather than solve them." Listing the problems facing the industry, Kuykendall named the probable end of the consent decree selling system, the important trade problems left unsolved by the consent " decree but which still plague the business, the war emergency and the huge tax burdens which are certain to drastically affect our business in the immediate future, the urgent need for cooperation on national defense activities, the constant threat of government regulation by legislation and litigation. The MPTOA chief also rapped the practice of certain distributors of "withholding pictures from release, that were promised to exhibitors and completed by the studios, in order to sell them at higher rentals, just because a technicality in the distributor's exhibition contract permits this manipulation." Kuykendall also called attention to the increased costs under the consent decree method of selling and asks whether the distributors expect exhibitors to pay these increased costs without any noticeable improvement in quality of the product or the business it does at the box office. He characterized the question of prices as "one of the most important unsolved problems of the business and after thirty years or more is just as troublesome as ever." 'Dumbo' Premiere Set for Oct. 23 at Bdwy. Theatre World premiere of Walt Disney's "Dumbo" will be held on Thursday evening, Oct. 23, at the Broadwav Theatre, where Disney's "Fantasia" is now nearing the end of a recordbreaking run. Following the premiere, which it is understood will be a society benefit affair, "Dumbo" will be presented on a continuous run policy. Only the demand for a general release of "Fantasia" is responsible for its forthcoming withdrawal. Senate Probe To Continue Hearings May Be Resumed Next Week, Clark Says Washington — Before the Interstate Commerce's sub-committee tackles the radio angle of the war propaganda inquiry, it is likely that the question as to whether there is to be a full-dress Senatorial investigation of the film industry will be put up to the Senate, it was indicated here this week by Senator D. Worth Clark, D., Idaho, chairman of the sub-committee. Senator Clark revealed last Thursday that hearings would not be held this week, and gave no indication as to when they would be resumed. However, he was emphatic in denying that they would be discontinued entirely. Although declaring plans were still indefinite, he said hearings might resume next Monday or Tuesday, depending on whether or not Senators C. Wayland Brooks, R., 111., and Charles W. Tobey, R., N. H., would be back in Washington by that time. Clark indicated he wanted to take no action without first consulting Brooks and Tobey. Reports from other reliable sources were to the effect that the isolationists on the committee were trying to round up isolationist exhibitors who have objected to the pictures in question who will get up nerve enough to send representatives to Washington to testify that the industry has tried to cram these pictures down the throat of the public through forcing exhibitors to show them. Members of the sub-committee were expected to get around to seeing some of the pictures this week. Both Loew's and Warner Bros, tried to lure Senator Clark to see his second talking picture, but the Senator was "too busy" to attend either the Washington opening of "Sun Valley Serenade" or the world premiere of "One Foot in Heaven." SHOWMEN'S Trade /fgrk\ Review Vol. 35, No. 12 Oct. 11, 1941 Title and Trade Mark Reg. U. S. Pat. Off. Published every Friday by Showmen's Trade Review, Inc., 1501 Broadway, New York City. Telephone BRyant 9-5606. Charles E. "Chick" Lewis, Editor and Publisher; Tom Kennedy, Associate Editor ; Robert Wile, Managing Editor ; Joseph H. Gallagher, Film Advertising Manager; Harold Rendall, Equipment Advertising Manager; West Coast Office, Guaranty Bldg., 6331 Hollywood Blvd., Hollywood, Calif., Telephone HOllywood 1390, Ann Lewis, manager; Chicago Representative, Marshall Reinig, 612 _ North Michigan Ave., Telephone Superior 7646 ; London Representative, Milton Deane, 185 Fleet St., London E.C. 4; Australian Representative, Gordon V. Curie, 1 Elliott St., Homebush, Sydney, Australia. Subscription rates per year: $2.00 in the United States and Canada; Foreign, $5.00. Single copies, ten cents. Subscribers should remit with order. Contents copyrighted 1941 by Showmen's Trade Review, Inc. Printed in U.S.A. Address all Communications to : SHOWMEN'S TRADE REVIEW 1501 Broadway New York Citv