Showmen's Trade Review (Oct-Dec 1949)

SHOWMEN'S TRADE REVIEW, November 5, 1949 13 Warner Seeks Consent? Reports from usually reliable sources in Washington this week clearly indicated that Warner Bros, is seeking to escape the Government anti-trust suit by a consent decree which would provide for both divorce and divestiture. Neither the Justice Department, however, nor a Warner Bros, spokesman, would comment on any progress the negotiations might have made. Washington sources nonetheless treated lightly the report that the Warners sought to split the fraternal triumvirate so that two brothers would remain in production-distribution and the third go into exhibition. They inclined to the belief that the Department would reason that so close a family relationship could not be completely disassociated in business. If Warner closes a consent deal with the Justice Department, this will probably leave Loew's alone in the fight against divorce, since 20th-Fox also seeks a consent decree. Harvey Upholds Bid System,* Wants Distributor Uniformity Take Depositions In Empire Suit While depositions from witnesses have been taken in the $5,076,000 triple damage suit filed by Harry W. Doniger and the Empire Amusement Company in New York federal court against the eight major distributors, trial date for the suit had not been set late this week. Doniger, as trustee for Empire, and Empire, are suing Paramount, 20th Century-iFox, Warner Bros., RKO, Loew's (MGM), Columbia, United Artists and Universal on the ground that the house could not get product. The petition states that the corporation took over the Empire at Newark, N. J., as a grind house in 1935 under a lease to operate it for five years with an option to renew. After several weeks, the petition alleges, the house had to shut down due to alleged product difficulties. The sensation expected in the trial is that one or two former employes of one of the defendants are expected to testify in favor of the plaintiffs to back up letters which are to be filed in the case. The suit was filed in July, 1949. File 3 Fraud Suits Three separate suits alleging incorrect returns on percentage rentals in connection with the New Harlan Theatre at Harlan, Ky., were filed against Price Coomer in federal court at Lexington this week by Columbia, United Artists and Universal. Bidding Takes Fox Away From Paramount-Richards Twentieth Century-Fox this week sold "Oh, You Beautiful Doll" and "Everybody Does It" away from the Paramount-Richards circuit in New Orleans in an act which' marked the first use of bidding in that area by Fox. The action also indicates that both films will be sold away from the circuit throughout the Gulf States. The move marks the fifth major to sell away from Richards, who is scheduled to release the houses in the circuit during early 1950 to Paramount, but who retains important interests in other circuits and booking combines. Prior to the Fox action by years, MGM and Universal sold away in differences over terms, RKO and Paramount followed more recently. Fox and the circuit had reportedly disagreed once before over terms, but the situation was later straightened out in a meeting between 20th-Fox President Spyros Skouras and Circuit Chief E. V. Richards. Shea's Adds Vaude To Eight Houses i The Shea circuit Wednesday added one-day vaudeville bills to its Shea's in Ashtabula, Ohio, Jamestown, New York, and Bradford, Pa. ; the State in Cambridge, Ohio ; the Union in New Philadelphia, Ohio, the Colony in Marietta, Ohio, the Weller, in Zanesville, Ohio, and the Auditorium in Newark, Ohio, which will play two days — Friday and Saturday. Vaude policies had previously been established in Manchester, New Hampshire, and Greenfield, Mass. Joe Hiller of Pittsburgh, books. Philly Price Cut Philadelphia saw its first post-war admission cut when William Goldman slashed prices at the State Theatre from 70 cents to 50 cents. Competitive bidding strongly upholds the exhibitor's "right to buy," H. V. (Rotus) Harvey, board chairman of the Pacific Coast Conference of Independent Theatre Owners, declared in San Francisco this week as he revealed his organization would seek to have distributors adopt uniform bidding methods. Harvey, who is one of the few exhibitor organization heads who has a good word to say about bidding, however does not like the way it is administered in the San Francisco area. He claims that each distributor has a different method and that these differences often work to the disadvantage of the exhibitor. "We ask for a uniform method of selling which will be fair to all," he declared. "I don't believe in the 'auction block' practice of some distributors in calling up several parties and quoting prices to gain raises in offers." The move to reform the bidding system in his area will be followed through by Harvey himself and PCCITO members, he said. Asked for It The PCCITO recently surprised exhibitor circles when it passed a resolution which asked that all distributors establish competitive bidding when it was requested by exhibitors. The reason behind this action is understandable in view of Problem pictures and those which the literary group like to refer to as "adult" may be doing fine at the box-office right now but the prejudice the average exhibitor has against anything which is not pure entertainment, is far from extinct, a survey by Showmen's Trade Review indicated t-his week. While the majority of exhibitors agree, in view of the success of such pictures as "Gentleman's Agreement," "The iSnake Pit," "Unwanted,'' "Home of the Brave" and "Lost (Boundaries," that there is a place for the problem picture, their general fear is that a cycle of such problem pictures would surfeit the public and convert the theatre from a place of relaxation into a forum for social issues. No Like They don't like this possibility at all, despite the fact that a growing body of lay thought, backed by some industry opinion, is convinced that the public is ready for controversial subjects and will welcome the discussion of problems by way of the screen. Summing up a moderate and liberal view in connection with this type of production is the approach Harvey takes to the subject. While other exhibitor organizations denounce bidding as an evil, he views it as something which is here and which offers exhibitors "the right to buy." Here to Stay "Whether the exhibitor likes competitive bidding or not," he remarks, "it is here and likely to stay because distributors have the right to license their product in any method they choose." The PCCITO resolution on the subject, passed at its recent convention at Sun Valley, Idaho, calls not only upon distributors to establish competitive bidding in areas where exhibitors request it, but also to use a sealed bid system only, open the bids publicly before interested parties, make public the contents and then make the awards immediately. It also urges speedier action in the bidding system. Harvey also told Showmen's Trade Review that the PCCITO felt that its membership should get into the drive-in field. "We are urging," he said, "our regular show people to build drive-ins where they are needed rather than bringing in an entirely new group into the business." Wilbur iSnaper, New Jersey circuit head. "Fundamentally we can say that the pictures we have had so far had been successful for the public has bought them," he declared. "There's only one fear," says Snaper, who has bought "Unwanted" and "Lost Boundaries" for some of his outlets, "and that is a cycle — because you can't blame producers for jumping on the bandwagon. All of a sudden we have had nothing but westerns, musicals, and now we have problems." Snaper believed that problem pictures were welcomed and good ones would remain welcome. Asked if he thought the audience would weary of them he said : "That only can happen from excess. If we ( Con f ilmed on Page 18) Up Box-office receipts for August, as shown by the U. S. Treasury Department reports for September, were $35,287,970 compared to $34,326,269 for the report which reflected the July level, it was revealed in Washington this week. Showmen Wary on Problem Pictures; Fear Cycle May Surfeit Audience