Boxoffice (Oct-Dec 1962)

ALLIED CONVENTION TRADE PRACTICES, CUTBACKS SCORED BY ALLIED STATES The men who will guide Allied States during the coming year. Seated, left to right: Ben Marcus, chairman of executive committee; Marshall Fine, chairman of the board; Jack Armstrong, president, and Milton London, executive secretary. Standing: Harry Hendel, treasurer; Edward Johnson, George Stem and Harrison Wolcott, regional vice-presidents, and Jack Whittle, secretary. Board Asked to Encourage Member Stock Purchases In Distributing Firms By AL STEEN CLEVELAND — Despite Allied States pre-convention declarations of a more conservative approach to industry problems, there was a tinge of the old-time Allied aura at its 33rd annual convention in the Sheraton-Cleveland Hotel here last week. While the national policy was determined to some extent behind the closed doors of the board of directors sessions, trade practices were given a thorough airing from the floor. And anybody who had a “gripe” was permitted to stand up and speak his mind. CRITICIZE ‘KINGS’ POLICY Coming in for particular critical comment was Metro-Goldwyn-Mayer’s failure to keep its alleged promises on making adjustments on unprofitable engagements of “Eling of Kings.” The delegates also bemoaned the reduction of distributors’ sales forces, thereby virtually eliminating the former direct contact between the exhibitor and the branch and resulting in what was termed “mail ordering” of product. On both of these issues, the convention voted to take action. In a forum on trade practices, moderated by Wilbur Snaper of the New Jersey unit, roadshow engagements in general and “King of Kings” in particular were placed under the microscope and examined. It was charged by several speakers that Robei't Mochrie, vice-president and general sales manager of MGM, had promised to make adjustments on “King of Kings” engagements, but that the promises were not kept, although there were some who said that they had received some relief. It was claimed by some speakers that the MGM branch managers had not been infonned by the homeoffice to make adjustments and that their only knowledge of the policy was obtained from the tradepapers. NOT OPPOSED TO ROADSHOWS Ben Marcus, chairman of Allied’s new executive committee, told the convention that Allied was not opposed to roadshows, per se, but said “King of Kings” was not a “Ben-Hur” and that if “Kings” had been placed into general release immediately after its hard ticket showings, the distributor would have gained a great deal more revenue. To meet the situation of “King of Kings,” a resolution was passed directing Jack Armstrong, the new Allied president, to obtain documented evidence of unprofitable engagements on which adjustments had not been made and to arrange to meet with Mochrie and demand immediate action on his unfulfilled commitments. As to the reduction of the sales forces, it was contended that exhibitors who operated a long distance from their exchange centers were being deprived of the opportunity to negotiate and bargain personally for film at fair and reasonable tenns. It was said that distribution, as a result, had reduced itself to the status of a mail order house with films sold as “so many mail order specials.” In order to offset the situation. Allied Modernization Key Growth Factor, Says Sec'y Hodges The following telegram was sent to Marshall Fine by Luther Hodges, Secretary of Commerce: “On behalf of the President, I send greetings to the motion picture theatre owners of the United States. It is encouraging to note that you are looking at new equipment and new techniques during your convention. Modernization is one of the key factors in economic growth and through tax policy and other means, this administration seeks to give business every encouragement for modernization. The U. S. Department of Commerce stands ready to assist you through all the facilities at its command. Best wishes for a successful convention. Luther Hodges Secretary of Commerce” will study the feasibility of sponsoring, through the individual units, the establishment of buying groups where they do not exist now and to encourage the membership to use such a service if established. A resolution was passed to that effect and a committee will be appointed to carry on the study. Acting on the premise that present methods of distribution were harmful and unprofitable to all segments of the industry, as well as being against public interest, it was voted to take an active interest in the film companies through stock holdings. The board was directed to encourage Allied members to become stockholders in the distributing companies. The board was empowered to represent such stockholders by duly authorized proxies at stockholders meetings. Such authority also could be passed on to an Ailed member or members. Ben Berger of Minneapolis, one of the “old guard” of Allied who goes back to the earliest days of the organization, addressed the convention on the opening day. Berger, whose fire made headlines at many Allied conventions, has been less active in recent years. He had been a leader in the NorthCentral unit for many years and cm’rently is a leader in that reactivated organization. It had been a long time since Berger last addressed an Allied convention and he had retained much of his enthusiasm. He reviewed the problems of exhibitors over the years and gave a nandown on the events leading up to the filing of the government antitrust suit and the resultant divestiture of theatres by the major companies and (Continued on next page) BOXOFFICE :: December 10, 1962 5