Boxoffice (Oct-Dec 1948)

Loew's Vogel Asserts That Dipson Once Proposed Deal With Shea's Negotiations Collapse On UA-SRO Merger HOLLYWOOD — Inability to reach agreement on basic terms led to a collapse of negotiations relating to a possible merger of the Selznick Releasing Organization’s distribution facilities with United Artists. The parleys, initiated several weeks ago in New York by Gradwell Sears, UA president, and David O. Selznick, came to a permanent halt here only two days after Sears had arrived from the east to resume negotiations with Selznick, who had preceded him to the west coast. A joint statement by Selznick and Sears declared the huddles were terminated because of disagreement on “certain basic phases of the proposed arrangement.” Sears amplified this with the comment that, “Although at the outset the merger . . . interested me greatly . . . United Artists is and has been purely a distributing organization for nearly 30 years ... It is only reasonable for the stockholders ... to expect the maintenance of its name and facilities intact.” Observers interpreted this as evidence that one of the “basic phases” on which agreement could not be reached would have called for the maintenance of SRO’s separate entity. This was borne out by a statement issued by Selznick expressing regret the merger could not be worked out and declaring that he “could not contemplate any deal that does not permit of the separate identity and organization of SRO throughout the world.” Selznick added that the negotiations had been aimed toward “effectuating reasonable economies for both companies” and contended that “current conditions” do not permit “the present wasteful duplication in distribution” by any unit, “large or small.” UA Drops 13 Publicists, Shifts 5 Secretaries NEW YORK — United Artists has dismissed 13 publicists and has transferred five secretarial members of its publicity-advertisingart department. They were told the layoffs were due to “economy.” The dismissed employes received severance pay ranging from two to 24 weeks under the terms of the SPG contract that expired September 27. The shakeup came last weekend while UA and Selznick Releasing Organization were negotiating an agreement to merge part of their sales activities and personnel. Ruff Resignation Causes Change in Variety Crew ALBANY — Resignation of Eddie Ruff, for two years Paramount branch manager here and recently elected to the local Variety tent crew, resulted in a recasting of the group at a meeting last Monday (15). He was chosen five days before he left Paramount. The crew now includes Jack Bullwinkle, Ray Smith, Saul J. Ullman, Jerry Atkin, Fred Sliter, Ed Wall, Leo Rosen, Sylvan Leff, Joe Saperstein, Nate Winig and Nate Dickman, with lour ex-officio members. It will choose officers for 1949 at a meeting November 22, BUFFALO — The president of Dipson Theatres, Inc., which is suing local Shea interests and major film distributors on charges of conspiracy to eliminate competition, himself proposed a combination of Shea and Dipson interests for the same purpose in 1941, Joseph R. Vogel testified this week in U.S. district court. Vice-president and general manager of Loew's, Inc., one of the defendants, Vogel testified for the defense as trial of Dipson’s $1,626,536 antitrust suit, resumed after a week’s recess. Attorneys expect that the case will end late this week. It began two months ago. Judge John Knight is presiding. Loew’s, Inc., Paramount Pictures, and Vincent R. McFaul own Buffalo Theatres, which operates the Shea Theatres. The Dipson company alleges that a conspiracy on the part of the Shea group and other distributors prevented it from successfully operating five theatres, two in Lackawanna, one in Tonawanda and the Century and Bailey in Buffalo. CLAIMS DIPSON ASKED DEAL “In 1941, two years after Nikitas Dipson opened his first theatre in the Buffalo area, he and his son William met with me and Mr. McFaul to discuss what he termed his ‘unsuccessful business venture,’ ” Vogel testified. “He asked that the Shea Theatres give up their Lackawanna theatre, which was in competition with his Ridge and Franklin theatres, arguing that the competitive situation forced us both to pay more for films and played into the hands of the distributors. “He also suggested that Shea’s Kensington Theatre and Dipson’s Bailey form a partnership and split the boxoffice proceeds on the ground that with the two theatres in competition the 'film companies get the best of it’ because they sell their pictures to the highest bidder. He suggested a similar deal for the Century Theatre and Shea’s Hippodrome. “I told him that Loew’s was not interested in any pooling arrangement and that it was against our policy to eliminate competition.” DENIES OVERBUYING John F. Murphy, general manager of out-of-town theatres for the Marcus Loew Booking agency, testified that his company never bought more pictures than needed for the Shea houses simply to deprive Dipson theatres of the pictui-es. Adjournment of the trial two weeks ago took the expensive litigation into its eighth week. At sessions immediately before adjournment, attorneys for the defense sought to show that the 20th Century Theatre Corp., which took over operation of the 20th Century Theatre in 1941, has made substantial profits since then using the products of RKO and WB, the same product that was available to it when it was operated by Dipson interests. Records introduced by the defendants tended to show that the existing company made the following approximate profits: Year ending June 30, 1943, $61,000; 1933-44, $75,800: 1944-45, $54,000; 1945-46, $83,000; 194647, $84,000. Psychoanalysis Film Set NEW YORK— “What’s On Your Mind?” the first psychoanalytical film program, will be released by Oxford Films and will open at the Elysee Theatre early in December. The film represents the combined efforts of the National Film Board of Canada, the Realist Film Unit of London, the McGrawHill Co. and the Allan Memorial Institute of Psychiatry. RED CROSS PREVIEW — Loew’s Metropolitan entertains two of the “stars” of the 1948 trailer made by the Red Cross for its blood donation drive. Seen here with Edward C. Dowden, left, of the Loew’s publicity staff are the “stars,” Concetta Macaluso, and Stephan Diaz. Looking on are: J. Paul Thorn, Red Cross director for Brooklyn, and Lloyd Herzka, assistant to Borough President John Cashmore of Brooklyn. BOXOFFICE : : November 20, 1948 N 43