Variety (December 1954)

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16 PICTURES Wednesday, December 22, 1954 SECRET RENTAL FIGURES DISCLOSED IN TRIAL OF MPLS. TRUST SUIT VS. MAJORS Minneapolis, Dec. 21. Actual grosses of loop firstrun and neighborhood theatres, the percentages or flat rentals charged them, and the amounts houses have paid to distributors in rentals are being made public in Federal dis- trict court here and the figures are showing that the percentage deals varied considerably on the same films. Such usually secret information Is coming to light during the trial of the independent circuit owners Volk Bros, against major distribu- tors, the Minnesota Amusement Co. (United Paramount Theatres) and RKO Theatres for approxi- mately $1,000,000 damages and for injunctive relief so that their $500,000 suburban Terrace will re- ceive an earlier run. One of the reasons why the Volks are contending the Terrace is entitled to an earlier and ex- clusive neighborhood run is be- cause it outgrosses the 10 other outlying houses in the same 28-day clearance slot and it has been pay- ing higher film rentals. In many instances, according to the tes- timony, its engagements have yielded higher film rentals than downtown moveover theatres play- ing the same films earlier. The Terrace now is one of about 10 neighborhood houses here hav- ing the same earliest uptown avail- ability, 23 days. Alleging a con- spiracy in restraint of trade, the Volks claim they’ve been damaged to the extent of $1,500,000 because of clearance discrimination against their Terrace for which they ask a playing position the same as the town’s only two moveover houses, both located downtown, or one day after the conclusion of the films’ loop firstruns. Witnesses for the plaintiff so far, called for adverse cross-examina tion, have included John Branton Minnesota Amusement Co. buyer booker manager; M. A. Levy, 20th Fox division manager; Harry H Weiss, RKO Theatres district man ager; Art Anderson, Warner Bros district manager, and branch man agers Abbott Swartz 1 United Art ists); "Hy" Chapman (Columbia) Fay Dressell (RKO); W. H. Work man (M-G-M); Fay Dresser (RKO); Jesse McBride <Pa»a mount), and LeRoy J. Miller (Uni versal). Downtown Comparison Testimony has brought out that the suburban Terrace playing pic- tures from one to 28 days after the two loop moveover theatres and day and date with as many as nine other uptown houses in the same 28-day slot frequently paid more in film rentals than the two down- town firstrun moveover theatres for the same releases. It developed that the suburban Terrace paid a $5,349 11-day rental for "The Robe," playing it 60 days after it had finished its downtown firstrun and day and date with two other uptown houses. The $4,503 for the first seven days was a larger rental than the downtown Radio City paid in rental for the seventh and final week of the first- run, Levy testified. Testimony in this respect also has been revealing that the Ter- race, playing "Stalag 17” after the downtown Century (before Ciner- ama took it over), running it on the extended firstrun engagement), paid 31% compared to the Cen- tury’s 20%, and that for the last three weeks the latter house film rental was $1,100, $1,000 and $800, while the distributor received $1,200 for the single Terrace week. ’Glenn Miller* Take Also, Miller testified, the Ter- race playing "The Glenn Miller Story” day and date with five other 28-day availability houses, paid $2,468 in rental for six days, as compared to $1,400 for United Par- amount’s Uptown, from which the next highest rental was obtained. In the case of "Hell Below Zero," according to Chapman’s testimony, Columbia received $1,780 for its share of the RKO Orpheum’s downtown firstrun engagement and then it went to the Terrace at 35% on 28-day availability. On the moveover of "On the Waterfront” from the Orpheum to the RKO Pan the Columbia percentage was 20%, but the Terrace and other outlying houses playing it 28 days after the firstrun started at the initial loop theatre was 35%. Testimony was that the Terrace paid $480 rental for "Stranger on a Train" playing it for three days day and date with other neighbor- hood houses in the 28-day slot after the RKO-Pan’s extended one- week firstrun loop engagement for which the distributor received only $141 film rental. "Springfield Rifle" went to the RKO-Pan down- town on a firstrun moveover for a week and the flat film rental was $375, whereas a later three-day Terrace engagement was at 30% and yielded $500 film rental. It was testified that "Moulin Rouge" was sold to the downtown Century for $15,000 guarantee against percentage and that the theatre didn’t earn the guarantee and paid 30% for the last three of seven weeks, yielding $3,000 for the three-week rental. The same picture playing the Terrace 21 days later for seven days (the firstrun house agreed to shorten the protection a week) yielded $1,408-rental, with the Volk house being charged 35%, although it was running the picture day and date with six other uptown the- atres. Levy admitted that in Kansas City a downtown and neighbor- hood house play firstrun simul- taneously, but he said both houses are under the same ownership and that the owner in this instance re- quested the day and date bookings, whereas in Minneapolis all the firstrun theatres, including two in- dependent houses as well as those of the MAC and RKO, demand the 28-day protection. - He and other witnesses testified that, in their opinion, the 28-day protection is proper and reason- able and that it’s necessary to safeguard the much larger down- town grosses and substantially higher distributor film rentals re- ceived by distributors from these loop firstruns. Both Dallas Dailies In on Big ‘Salute’ To Motion Picture Trade The two Dallas newspapers — the Morning News and the Times- Herald — will salute the film in- dustry during January with special tabloid supplements devoted to motion pictures. These salutes were arranged by Texas COMPO. Ten film companies will be represented with editorial matter and advertising. In addi- tion, COMPO will run institutional public relations ads in the section. The Texas unit is also contemplat- ing a series of institutional pitches which will run all during the year. They’ll be similar to the COMPO ads in Editor Sc Publisher. John Rosenfield, amusement editor of the Morning News, was recently in New York to confer with the film companies and with national COMPO officials. Popcorn in Autos Richmond, Dec. 21. Richmond Times - Dispatch editorialized for seven para- graphs on the upbeat in the film business, crediting "a combination of factors” that included technological advan- ces. All concluding with the crack, "Now if only something could be done about those popcorn crunchers and paper rattlers in the next seat." Sam Pulliam, manager of the Glen Drive-In Theatre, provided a footnote. In a let- ter to the paper, he insisted that such annoyances have been much exaggerated and could be avoided entirely "in the privacy of your, own auto- mobile." Meaning, of course, at Pulliam’s theatre. Politics Flares in Booth Test Ordinance Drive-In Attacked—Fire Marshal on Examining Board Also a Projectionist-—Issue Sidetracked By ART HILTON El Paso, Dec. 21. Friction between union projec- tionists and motion picture house operators flared as attorneys and representatives of the two groups clashed over a 1924 City ordinance last week (18). Exhibitors want the ordinance, which requires city li- censes of all projectionists, re- pealed. The union wants the ordi- nance kept as is. An attorney for nine theatres said the union is using the ordi- nance as a club to place only union men in jobs. He said only unions men are allowed to pass examina- tions which are prepared by a three-man board composed of the city fire marshal, the city electrical inspector and a professional pro- jectionist. "I see there are a lot of labor men here,” the attorney told the City Council. "They are trying to make this into a union-non-union fight. This ordinance may have had some use once but with modern equipment if has become obsolete." Exhibs Fred Lindau and Jim Ward argued the ordinance no longer serves to protect movie pa- trons against fire. Attorney Leo Jaffe, representing the projectionists, said the attack on the ordinance is spearheaded by the Fiesta Drive-In Theatre, which has been trying to break a strike of union projectionists. The strike has been in. progress for many months. "What they call safety film is not fireproof," JafTe said. "It burns more slowly but many pictures made on nitrate film are still be- ing shown.” JafTe burned a piece ol film to show how fast it burns. He pointed out the dangers in- volved in projecting film on a screen and said drive-in theatres constitute a dangerous situation because snack bars are usually lo- cated right next to projection rooms. Jaffe Introduced a letter from John Paxton, manager of El Paso’s Interstate Theatres, who said he favors retention of the ordinance. The attorney for the other exhibs then asserted Paxton received or- ders from Dallas officials of Inter- state chain to write the letter. After the council voted to study the matter further a letter was read from Fire Marshal Howard O’Hare who asked to be allowed to resign from the Board of Examiners. The council voted to hold up the resig- nation since the projectionist ordi- nance requires the fire marshal to sit on the board. O’Hara was forced to resign under pressure from city hall after it was revealed that he is employed at a local the- atre as a parttime projectionist. Sterling Silliphant has a kidding-oit-rhe-iquare pitch for motor* femme start titled Age Before Beauty or amusing byline piece in the opcoming 49th Anniversary Number of PwRiEfr Ol)T SOON Inside Stuff—Pictures Meeting the demands or local conditions of a foreign country where a branch office Is maintained often tests the ingenuity of U.S. film companies. It may take the form of organizing a local corporation for tax purposes or for the distribution of foreign films. Or, as hap- pened recently, it may mean the changing of the branch topper’s title from manager of operations to managing director. This occurred in Australia where a film company "promoted" its local man because a union was organizing all managers. Syndicated columnist Victor Riesel wants it known he is "not en- gaged in any propaganda effort in behalf of anyone." Last week, his column on Soviet production of anti-U.S. films brought from Eugene Castle the charge that Riesel was looking to promote more funds for the U.S. Information Agency. Not so, says Riesel, adding he merely treated the subject of propaganda pix as an issue in the current news and is not crusading for USIA. Shah of Iran and his wife, in the U.S. on an official visit, attended the Palace Theatre in Washington, D.C. to see "Desiree." Although the plush carpet treatment was in order, a member of their party, repping the State Dept., voluntarily paid the admission price. It’s probably the first time that the head of a foreign government and his entourage deviated from a cuffo theatre admission. Albert Margolies followed up on Variety’s item of last week with the information that he worked on the publicity campaign for "Bread, Love and Dreams" as the Paris Theatre, N.Y. IFE had been given full credit for the job. Snaper Sees ‘More Lawsuits in 55 If Distribs Operate as Have in Past CHARGES CONSPIRACY TO CLOSE THEATRE Wheeling, Dec. 21. Charging violation of the Fed- eral antitrust laws, the Rex Thea- tre, operated by the Publix Wheel- ing Theatre Corp., has filed suit here in U. S. District Court against the operators of the Capitol, Court, and Victoria Theatres. The com- plaint, signed by George Zeppos, manager of the Rex. accuses the defendants of conspiring to force the Rex out of business. Defendants in the action are Wheeling Theatres, Inc., West Vir- ginia Theatrical Enterprises, Inc., the Victoria Amusement Co., all of Wheeling; Genesee Theatrical En- terprises, Inc. and Dipson Theatres Inc., both with offices at Batavia, N. Y., Nikitas Dipson, of New York, and Thomas Callas, of Wheeling, manager of the Victoria. According to the suit, the de- fendants operate 42 theatres in New York, Pennsylvania, Ohio and West Virginia. Dipson serves as general manager of the circuit. The complaint charges "the de- fendants, together with other firms and corporation in which Dipson has a proprietary interest, have combined and conspired to monop- olize the exhibition of first run pictures in Wheeling, and the op- eration of fivt run theatres in that city and to eliminate the competi- tion of the plaintiff . . . and to restrain interstate trade and com- merce in the licensing of motion pictures for first run exhibition in Wheeling.” The suit further declares that the Dipson outfit is engaged in a scheme to deprive the Rex of first run pix by offering "unreasonably high prices” to distributors. It’s cited, for example, that the Vic- toria offered Metro a guaranteed rental of $6,000 against a percen- tage of the gross for “Brigadoon." Take at the Victoria during the showing of the picture, it’s noted, was $4,000. Complaint avers "that the Court, Capitol and Victoria are being op- erated at a loss until such time as the defendants have achieved a monopoly of first run pictures and theatres in Wheeling.” Thedford Named Prexy Of Evergreen Circuit Seattle, Dec. 21. Appointment of William A. Thed- ford by National Theatres Corp. to presidency of Evergreen State Amusement Corp. was made on Monday (20) at local manager’s meeting. He succeeds Frank New- man Sr. who recently sold his in- terests in Evergreen and resigned as president. Evergreen operates 26 theatres in key cities in Washington and Oregon, all first runs except two each in Seattle and Portland. Since 1932, with the exception of three war years, Thedford was with National Theatres as manager or district manager and, since 1947, as vice president of Ever- green and general manager. Reviewing exhibitor - distributor relations during 1954, Wilbur Snaper, president of New Jersey Allied and former topper of Na- tional Allied, expressed the fear that there may be more lawsuits in the industry in 1955 "if dis- tributors continue to do business as they have." Snaper, .an outspoken Allied leader, declared that it’s about time that both buyer and seller be treated with an equal degree of dignity. "It’s incumbent on the distributors to maintain friendly relations with their cus- tomers," he said. Snaper suggested that the film companies maintain on their staffs special customer relations men, a policy, he said, that is followed by most of the nation’s industrial cor- porations. In the film biz, only Metro has a customer relations man. He’s Mike Simon whose job is not only to serve as a good will ambassador at exhibitor conven- tions but also includes the han- dling of complaints relative to sales policies. M-G’s method apparent- ly is paying off, since it’s the least criticized of all the film companies. Snaper charges that the greatest weakness in the film business is the remoteness in the understanding of the problems of the different seg- ments of the industry. "I don’t say we should have a right to tell production what pictures to make or how to make them, but exhibi- tion should at least be heard." he said. "We don’t have the right to tell them how to cast pictures. They shouldn’t have the right to tell us what equipment to put in our theatres." Noting that there has been a general increase in admission prices, the exhibitor leader said he had no objection to an advanced admission charge for an occasional worthwhile picture. "But whero do you draw the line?" he asked. "Who’s to be the judge if a picture is worth more—exhibition or dis- tribution?” Re: Shortage Snaper doubted that the film companies were deliverately cutting down on their film output for the purpose of eliminating the small- town and nabe theatres which are uneconomic to service. "There’s a deliberate effort to cut down pro- duction—period,” he declared. "It’s hurting the large theatres as well as the small ones. Where are they going to get films from. It’s resulting in over-extended playing and other evils." He believes that the nabe and smalltown theatres can survive, but he added that they’ll need fair treatment from the sellers. "The distributors better be certain that the smalltown and neighborhood theatres stay in business. If they don’t, the economic problems of the film companies will just start." Snaper feels there’s still a market for the so-called small pictures "if the producers don’t load the costs as they do for the major produc- tions."