Variety (February 1952)

9 Fabnurf 20, 1952 NCT1JRBS < UP TO DISTRIBS 9 Arthur L.. Mayer, exec v.p. of the Council of Motion Picture Or- ganizations, will go into the matter of financing the all-industry pub- lic relations group in his opening address at the ahnual membership meeting today (Wed.) in New York. It is understood Mayer will suggest alternatives, but plump for none specifically. That will leave to the. conclave the problem of devising a method of supporting COMPO if it is to. go on. The one thing that Mayer will* make crystalrdear is that the present system of exhibs volun- tarily mailing in their contribu- tions if and when the, spirit moves them is not working. One of the alternatives that a committee financing will wrestle with is a Variation on the original dues-collection method. Under that scheme, the distribs hilled exhibs monthly 1 for one- tenth of 1% of their film rentals. Distribs agreed to match this. If all the payments Were received, COMPO would have had an in- come of about $600,000 a year. That scheme quickly died when it was discovered that the bills amounted in some cases to as little as a few pennies and it cost more to collect them than they were worth. One of the .alternatives that Mayer has in mind Would be for distribs to go, back to making (Continued on page 12) McDonnell to Japan ' In Try to Thaw Out $10,000,000 Film Coin Col. Richard T. McDonnell, of - the Washington staff of the Motion Picture Assn. , of America, leaves for Japan this week in an effort to thaw some $10,000,000 in U. S. film coin there. There's a good possibility McDonnell will become the MPAA’s permanent rep in the Far East. Frozen yen accumulated in Ja- pan since the war is in addition to about $5,000,000 worth already freed by the Supreme Command Allied Powers there. Until the end of last year, Japan was serviced jointly by the U. S; ; companies through the Motion Picture Export Assn. There has been no overall industry rep there since the MPEA’s Charles Mayer returned home. Thus the spot is open and McDonnell is being seriously con- sidered for it. He was formerly aide to Gen.. Omar Bradley and has lived in the Orient, much of his life. • Meantime, another MPAA exec, Ted Smith, is in Indonesia for his fourth month on what was origin- ally expected to be a three-week assignment. Smith is assistant to international division chief John G. McCarthy and has been slated (Continued on page 12) COMPO Press Stymie First item to be taken up by the Council of Motion Picture Organizations at its »annual membership meeting in New York today (Wed.) is whether 7 to throw* the sessions open to coverage by the tradepress. At some COMPO conclaves in the past, reporters have been admitted, while at . others they’ve been held outside and briefed by an official follow- ing the day’s discussions. COMPO execs have been re-y luctant to make a decision on; the point, since some delegates apparently feel stymied in the presence’of newspapermen. Chicago Theatre Sues >|VVV^ Chicago, Feb. 19. Setback suffered by the distribs in the Brookside Theatre, Kansas City, antitrust suit was followed this week by another action filed by 1670 Belmont Corp. which leases the local Belmont Theatre to Kalahari Sc Katz, B & K has been, operating the house since 1935. Plaintiff, seek- ing damages of $1,500,000, alleges that its rental for the house, based on gross percentage, was sliced by the film companies’ refusal to pro- vide better product aiid clearance. Circuit Court of Appeals, St. Louis, last week upheld damages of $1,150,000 arid attorneys fees of $100,000 iii the Brookside action. Stockholders of the theatre claimed that the house was unable to obtain product and for this rea- son it had to be relinquished to the Fox-Midwest chain. Distrib defendants are planning to take an appeal to the U. S. Supreme Court. Minneapolis, Feb. 19. Current developments are em- phasizing anew the extent to which downtown theatres have de- clined in the Twin Cities, during the past two years, coincidental with the continuing boxoffice drop, which started with the expansion of TV. Latest evidence of the present low evaluation put. on even the downtown^A” first-run houses is the notice served by Dale, Mont- gomery & Rydeen on the Minne- sota Amus. Co. of recission of . its $150,000 deal for the purchase of twb such St. Paul theatres, the Strand * arid Tower. Dale, Mont- gomery & Rydeen wants back from Minnesota Amus. the $*75,000 it’s already paid for the two thea- tres, but indications are it’s not going to get it: without a court fight. The notice served by its attor- ney, Benedict' Deinard, on MAC states that the recession is effec- tive as of Feb. 23, that it’s just keeping the theatres open until that time to preserve their, good (Continued on page 12) Towne Theatre Asks $1,500,000 More After Nipping Majors for 941G Chicago, Feb. 19. Attorney Tom McCorinell, right after collecting $941,000 last week for the Towne Theatre, Milwaukee, slapped the defendant major com- panies in the Towne case with another action in Chi Federal Court. He asked for $1,137,000 in triple damages for period of July 20, 1948, to May 15, 1950. .In addition, he’s asking single dam- ages from May 15, 1950, to Jan, 25, 1952, of $400,000. Besides accusing the defendants of antitrust booking practices, he’s also naming Fox-Wisconsin Thea- tres arid the Warner Bros, chain. . Attorney is also petitioning for additional fees of $50,000 cover- ing time from April 14, 1950, to April 28, 1952. April. 28 is when case is expected to go to initial hearing. ‘Bing’* Thing*’ Hollywood, Feb. 19. "Bing’s Things," company formed by Bing Crosby for merchandising Unusual items ranging froni toys to apparel, will have a trade display of its products in New York March 3-5. Other exhibitions will be held later in Chicago arid Los Angeles Firm is headed by Bing. Brothers Everett and Larry Crosby are vee pees; Basil Grillo, secretary-treas urer, and Larry Shea, general man ager. . Effectiveness of distributor strat- egy in dealing , with tlieatremen may well determine whether or not a system of industry; arbitration can be achieved. Both Theatre Owners of America and... Allied States Assn, clearly are placing the entire issue into the laps of the major companies; The two theatre orgs will offer their arbitration proposals to the film outfits shortly with the de- mand that the companies set the stage for actual negotiation, via issuing a call for an all-industry meeting. Industry-ites incline to the belief that the next couple of months will tell once and for all whether an accord can be reached oh setting he terms for arbitration. It’s point- ed up that if the fullscale effort exerted on numerous fronts for set- ting up a system proves a failure, there would be little chance for revival of a pitch for arbitration at a later date. It’s a case of do or die, say observers. While all film companies favor the principle of arbitration, the ma- jority would rebel at including rentals on the list of subjects to be submitted to the conciliation panels. This has been, recommend- ed by Allied. Likelihood is that the fContinued on page 17) Hedy Another Indie Set at UA as Krim Negotiates -Story Buy Further evidence that United Artists is reaching out to draw top names into independent production was provided this week with the disclosure that Hedy Lamarr was the actual purchaser of a story property Originally . reported to have been acquired by UA prexy Arthur Krim. , Krim negotiated the deal for purchase of ‘Xhe . Story of Esther,” by Frank "and* Doris Hursley, in behalf of Miss Lamarr. Purchase price was $25,000. The star will 1 produce "Esther” as. an indie venture, possibly in Italy, and doubtless for release by UA. Meanwhile, Krim is continuing his stay on the Coast in pursuit of new deals. Still in the discussion stage is an arrangement with Mu- sic Corp. of America by which some of the agency’s top-name cli- ents each would appear in an indie pic annually. Talks have been un- derway for such deals with Gregory Peck, Marlon Brando, James Stew- art, Alan Ladd and Cary Grant. Rodger* Nixe* Post Among the men whom the Council of Motion Picture Or- ganizations has unsuccessfully* sought as successor to exec v.p, Arthur L. Mayer is .Wil- liam F. Rodgers. Rodgers bow- ed out as Metro’s v.p; in charge of distribytion at the end of last year and is now serving as V.p. and sales counsellor lor the company. Jack Alicoate; chairman of the COMPO election coirimit- tee, called on.. Rodgers in Florida, Where lie's Vacati ing, in an attempt to sell him on the post. Metro exec Was firm, however, in stating that he would not . get himself in- volved/ Spigelgass Reps MPIC At COMPO as Late Sub Hollywood, Feb. 19. Leonard Spigelgass will rep the Motion Picture Industry Council at the Council Of Motion Picture Organization’s annual membership meeting in New York tomorrow (Wed.). Spigelgass is a last-minute Substitution for Allen Riykin, MPIC rep on the COMPO board. MPIC's continued affiliation With COMPO and its work in pub- lic relations on the > Coast will not be affected in any way, the Coyn- cil’s execs say, by the, resignation of the Screen Directors Guild. $es-: sion with SDG officers, as a .mat- ter of fact,; Was planned by MPIC execs tonight. (Tues.) in an effort to (compose differences. No other MPIC units, Which in- clude all the talent and craft unions, as well as reps of the stu- dios, will follow SDG in its Walk- out after disagreement on policy, the Council’s toppers declared. Although the SDG action caused some concern at COMPO bead- quarters because the MPIC's posi- tion on the Coast makes it an im- portant component of the public relations organization, MPIC. mi i- mized the effect of the SDG resig- nation. „ One-nigh t-a-week art film ex- periment that Walter Reade. Thea- tres is conducting in New Jersey at its Paramount, Plainfield, and Carlton, Red Bank, has met with a "very encouraging” initial reac- tion, according to a»Rcadc spokes- man. Test began Wednesday eve- ning (13) and will continue for three more Wednesdays, Series of screenings is tagged "Curtain at 8:40” and is patterned after a successful tryout of a for- eign film policy in a number of Canadian smalltown theatres. While the b.o, take was described as only "fair” for the Paramount and Carl- ton preems, the' management ex- pects business to build on the basis of the plan’s acceptance, At Reade’s Red Bank house, it was disclosed, "some 75% of the people attending were not recog- nized by the staff as ever, being in the theatre before.'’ Likewise, in Plainfield about 60% of the preem audience were estimated to be new- (Continued on page 20) Election of a prexy and exec v.p. is the major problem facing the Council of Motion Picture Or- ganization’s membership at the an- nual meeting which begins in New York today (Wed.). About 20 other items are also on the agenda for the two-day Hotel Astor conclave. A committee headed by Jack Ali- coate, rep of the tradepaper pub- lishers segment: of COMPO, has wrestled for months with the task of finding successors to president Ned E. Depinet and exec v.p. Ar- thur L. Mayer, Both men have strongly stated they will not*serv again. Alicoate committee met as late aS yesterday (Tues.) afternoon in an effort to come up with a slate which it could recommend to. the membership when the election Comes lip on the agenda, tomorrow. It is understood that the group found.itself in a tougher hole than anticipated on the presidency sit- uation, since it had been under the belief that Depinet, in a pinch, could be convinced to continue holding the reins. The RKO prez, who hasn’t been Well recently, re- portedly has made clear in the past few weeks that he does not want to accept office again, The executive vlce^presidcncyr^ a fulltime, paid job—is even hard- er to fill. With Mayer adamant acaihst continuing, the member- ship must meet the problem, of finding a Successor wlio will have the confidence on a political level, of all 10 of the COMPO component (Continued on page 15) Marshall to Paris Extended Philly Runs Philadelphia, Feb. 19; Judge Allan K. Grim, in U. S. District Court turned down, the ac- tion for a preliminary injunction sought by Uie Sablosky family, op- erators of four indie houses in Nor- ristown, Pa., and one in Bristol, Pa. The Sabloskys’ complaint de- clared that the extended first-runs of top product in downtown Philly houses would cause a serious log- jam of product, and that their the- atres, the Norris and Grant, would be without filths by early March. Seven major distributors were defendants in the injunction ac- tion, whirikjs corollary to but docs not affect* the Sabloskys’: suit against the same defendants asking $5,775,000 in treble damages, for alleged violations of the antitrust laws. , . Judge Grim balked at a decision oil the clearance situation in an in- junction hearing, saying he did not "want to act as arbitrator for the motion picture industry, on deter- mining the length of rims.” He also saw no Conspiracy by the ma- jors in. extended runs: "The fact that three different concerns are running strong pictures ' the Philadelphia theatres is evidence that a healthy competition exists.” The jurist in refusing th<* inju *- tion stated that the plaintiff had shown no. danger of ’’immediate ir- reparable damage,” adding that he doubted the film companies "would be so foolish as to leave Norris- town without pictures.” Hemingway Pic Prod. Producer William Marshall left New York . for Paris yesterday (Tues.) in continued efforts to set up a deal for filming Ernest Hem- ingway’s novel, "Across the River and Into the Trees.” Marshall and Sam Marx for the past several months have had in escrow $25,000 in "good faith rnohey” to obtain rights to the book. Marshall; and Marx have a tleup | with Benagoss Productions ( Henry Rogers Benjamin and Germaine Gosseler) to make the pic.. Bena- goss Would put up U. S, coin re- quired and Marshall is trying to line up a French producer to put up francs for lensing to take place in France.. While Marshall and Marx have been working on a script and financing, David O. Selznick has also shown interest in the prop- erty. His attorney, Frank Davis, has' been huddling with Alfred Rice, Hemingway's lawyer, who handles his deals. Marshall also met with Rice yesterday before taking off for Paris. The $25,000 escrow does not re- strict Rice from making another deal. It merely gives Marshall and Marx the right to state that they have an agreerrient regarding the book. If a deal is finalized, the $25,000 will be released to Rice as .first payment against a guar- antee or an alternate percentage arrangement. Couple ‘Streetcar’ B’way Repeat to Acad Awards In anticipation of copping one or more: Academy Awards for “A Streetcar Named Desire,” War Bros, has skedded the pic for week’s re-engagement at the War- ner Theatre, N. Y., starting March 17. The Tennessee Williams film adaptation of his own Pulitzer Prize-winning play chalked up lj nominations for the Oscar Derby, greatest number this year for S ^Produced by Charles K Feld- • man and released by Warners, “Streetcar” . completed a 1 ” e " »week run at the Warner Theatre I on. Nov. 21, 1951, a record for the |WB showcase.