Boxoffice (Jan-Mar 1963)

ROBERT LIPPERT OBSERVES: Union and Government Cooperation Needed for Production Increase HOLLYWOOD — Robert L. Lippert, president of Robert L. Lippert Productions, on retm-n from a European trip, this week reported on his observations of so-called “rmiaway production,” and asked that union and government spokesmen “start dealing with causes” instead of “attacking the effects” of overseas film production. Lippert, who visited London, Rome, Paris and Madrid, pointed out that more than half of the current Hollywood productions are being filmed abroad, adding that on many pictures, “it is true that costs are drastically reduced in another country. On two proposed low-budget pictures of my own,” he said, “the Mexican unions offered to revise their own rules and allow sevenday back-to-back shooting which would greatly undercut American technical union costs.” Calling for a realistic revision of scales and restrictions according to budgets, with union-and-producer cooperation, Lippert charged that “unrealistic rules and featherbedding can strangle the movie business just as it has nearly done to the New York theatre or drive it to foreign flag production as happened in the shipping industry.” Skyrocketing star salaries, he asserted, have resulted in some stars being priced out of the market except for one picture a year, thus endangering their fan following. Other stars, he said, confront producers with demands for the lion’s share of the gross or co-ownership deals aimed at capital gains. The U.S. government, he continued, also has much responsibility for the industry’s problems. “The tax structure is unfair, destructive and almost immoral in its effects,” he said. “Stars are forced toward career suicide by surtaxes, with no opportunity to ‘carry over’ peak earnings into lean years. Studios often can make bigger profits by going out of business than by producing. Producers are led into planning for tax reasons, rather than audience benefits. “Twenty foreign governments offer rebates or subsidies for joint or foreign-flag production,” he said, “while our government still imposes a ten per cent ‘emergency’ tax on the boxoffice, along with other heavy taxes.” Lippert, who also heads Lippert Theatres, pointed out that most theatres and drive-ins need double features to survive and that American production of “B” pictures is becoming unprofitable. “Exhibitors already are buying half their second features from British and continental producers,” he charged. “Before it’s too late,” Lippert continued, “we need a realistic cooperative effort among producers, unions and government to save American production. Maybe our congressional representatives could stimulate a new approach, instead' of talk of quotas and restrictions. Hollywood will be unusually fortunate if this is done.” Ad Film Firms Combine Sales Organizations NEW ORLEANS — Motion Picture Advertising Service, Inc., of New Orleans and the Alexander Film Co. of Colorado Springs, Colo., effective March 2, combined their sales organizations into one company under the corporate name of Motion PictureAlexander Corp., it was announced this week. The combined history of the companies represents over 75 years of service. The sales and administration of Motion Picture-Alexander Corp. will be headquartered here, with C. J. Mabry as president and W. Hardy Hendren jr., chairman of the board. The special production, commercial servicing and laboratory servicing will be handled by the Alexander Film Co., Colorado Springs, Colo., which will continue operations there under its existing name. Tlie terms of the combine leave the sole responsibility for sales and service of theatre screen advertising at the national level, now handled by both companies, in the hands of Alexander Film Co. Currently, the companies service such corporations as Pepsi-Cola; General Motors and its motor car divisions: Ford Motor Co. and its Lincoln-Mercury division; Chrysler and its automotive division, the Texaco Co. and Seven-Up Co., among others. John H. Hertner Is Dead; Electric Co. Founder POMPANO BEACH, FLA. — John H. Hertner, founder of the Hertner Electric Co. of Cleveland, Ohio, and designer of the Transverter motor generator for motion picture projection, died here on the occasion of his 86th birthday, Boxoffice learned this week. His death occurred on January 14. Hertner had lived in Pompano Beach since his retirement in 1945. Born on a small farm in Williams County, Ohio, Hertner later lived in Dayton. In 1899, he graduated from Ohio State University and began his career as an electrical engineer with Western Electric Co. in Chicago, later joining Lincoln Electric Co., Cleveland. Survivors include his son George D. Hertner. Elvis Presley Film for Easter NEW YORK — Metro-Goldwyn-Mayer has set its new Elvis Presley picture, “It Happened at the World’s Fair” for a nationwide Easter release. John H. Hertner Ballanlyne Entering Equipment Leasing OMAHA — A complete theatre equipment leasing plan has been announced by Ballantyne Instruments and Electronics, Inc., which, according to J. Robert Hoff, executive vice-president, will make it possible for “theatres still operating on equipment 20 to 25 years old to afford to throw it out and compete with modern, present-day concepts in theatre sound and projection.” The leasing plan, of course, applies to financing new theatres. (See Modern Theatre section, pages 18, 19.) Ballantyne, a division of ABC Vending Corp., is ready to “lease everything from carpet to sound and projection equipment, including seating, draperies, screens and all drive-in equipment” on its “pay as you profit plan.” In announcing the new plan, Hoff said: “Leasing is a way of life in many other industries, including data processing, office furniture and industrial equipment. The theatre industry will be attracted to leasing for the same reasons as others who have gone to it. Leasing will encourage up-to-date equipment. It will preserve the cash position of the individual theatres and circuits and improve their financial statements. “As an example, we can lease $10,000 worth of equipment for less than $50 per week over five years with a lease renewal at less than $5 per week for a maximum of two years. “A 1,000-seat theatre requires roughly $72,000 worth of sound and projection, screen, carpet, draperies, boxoffice, seating and miscellaneous equipment. We will lease all this equipment for less than $350 per week, provide installation supervision, give complete maintenance through Altec Service Corp. and hand the owner the keys. “We’ll do about the same thing on driveins except that we have a 32-week paying program with 20 weeks off in the winter season. This makes the weekly payments somewhat higher, but easier to make during the active drive-in season. “Our interest rates on leasing are very low — approximately 8Y4 per cent interest figured on an annual basis. We will also give 1 per cent discount for prompt payment. Our connection as principal distributor of Norelco 35mm projectors adds to our ability to give the finest equipment under these lease programs. We expect to do as much in Norelco 70/35mm as in Norelco 35mm alone. “In addition to products manufactured by our own company such as transistorized sound for single or multi-channel installations, and silicon rectifiers, products would be used from leading companies including Strong Electric, Ideal Seating, Mohawk Mills, Neumade Products, Williams Screen and Metropolitan Stage Equipment, Inc. Altura Films Release NEW YORK — Altura Films International has acquired the U.S. distribution rights to “Fury Is a Woman,” filmed in Yugoslavia by the Polish director, Andrzej Wajda, according to Clem Perry, president of Altura. The picture was produced by Avala Film in Belgrade and Altui’a will release it in midMarch. 14 BOXOFFICE :: March 4, 1963