The Exhibitor (1950)

14 EXHIBITOR Jersey Allied Hears Leading Trad esters Atlantic City, N. J. — Theatre tele¬ vision, COMPO support, and the federal admissions tax were given prominent places on the agenda of the 31st annual convention of the Allied Theatre Owners of New Jersey last fortnight. Other major topics discussed were competitive bid¬ ding, selling policies for top bracket and “special” features, and the advance sale of tickets for important features. Discussing television, National Allied President Trueman Rembusch predicted failure of all but 1,500 to 2,000 theatres ever to get large-screen video if the FCC allocates only the micro-wave frequencies for theatre use. He warned that theatres must make a strong effort to forestall the gobbling up by other interests of the VHF, or lower frequencies band, when it is eventually vacated to move TV up to the UHF radio spectrum. Micro-wave TV, he said, could be used only by large theatres in metropolitan areas. Richard Hodgson, director of technical operations, Paramount TV division, de¬ clared that there has been too much drum-beating about large-screen TV as a cure-all, without enough thought to planning, organization, and costs. Discus¬ sing equipment costs, Hodgson said that Paramount and others today have equip¬ ment at a cost of $25,000 per unit for large theatres, but it is conceivable, he said, that they will cost less than half that price within a few years. He pointed out that the investment in home television receivers is greater than the total national investment in theatre properties, with the total potential audi¬ ence that can be served by both almost the same. After summarizing the technical and financial aspects of large -screen video, Hodgson said that programming will be the most important factor, with theatres to compete with home TV programs pri¬ marily on the basis of the programs’ con¬ tent, and theatre atmosphere. Abram F. Myers, National Allied gen¬ eral counsel and board chairman, an¬ nounced that a sufficient number of Sena¬ tors and Congressmen are now commit¬ ted to override a Presidential veto on the 10 per cent cut-back in the Federal ad¬ missions tax. Rembusch told the exhibi¬ tors that a new campaign, aimed at full repeal, was being organized to be directed at the Senate. MGM’s Mike Simons urged the advance sale of tickets for important features. Under his plan, the tickets would be marked with the date and performance, and the management would be pledged to rope off sufficient seats in a choice loca¬ tion to meet advance sales requirements. Leon Bamberger, RKO sales promotion head, and aide to COMPO head Ned E. Depinet, set $600,000 as the maximum figure which can be raised to finance COMPO under the voluntary contribution plan agreed upon by exhibitors and dis¬ tributors. Rembusch declared that “there is an avaricious force at work within our in¬ dustry. If that grasping, confiscatory force is not stemmed, every exhibitor will face bankruptcy.” He rapped the distributors for the terms they were asking from drive-ins. Some now are insisting on 50 Howard Minsky Given Paramount Sales Post NEW YORK— A. W. Schwalberg, president, Paramount Film Distribut¬ ing Corporation last week announced the appointment, effective immediately, of Howard Minsky as a home office sales executive. Minsky has had more than 20 years of experience in various phases of the industry. He started in 1929 with Warner Theatres in Philadelphia, subsequently becoming an assistant manager and manager. He entered distribution in 1936 as a Warner salesman in the Washington territory, and subsequently held sell¬ ing posts in Cincinnati, Pittsburgh, and Buffalo. Minsky served in the navy from 1943 to 1945, and on his discharge became sales manager in the Pittsburgh War¬ ner branch. In 1945, he joined 20thFox. For a time, he was branch man¬ ager in Buffalo, then left to become a film buyer for Skouras Theatres, and returned to the film company as mid-eastern division manager. per cent, he declared. He also stated that there is a movement afoot to abandon sliding scale deals now that grosses are down. MGM, Columbia, and Paramount came in for special criticism from Rembusch be¬ cause of their sales policies. Allen outlined the use of television trailers by Baltimore, Md., theatremen, and Bach, Rome Enterprises, Inc., Balti¬ more, gave details of a tieup with the school board whereby appreciation courses on various trade phases have been set up as good will builders. In a special wire sent to Paramount’s A. W. Schwalberg, the convention dele¬ gates requested immediate relief from the “short-sighted” selling policy for top bracket and “special features.” It was pointed out, also, that “special terms” sell¬ ing plans by other major distributors had worked hardships on the small exhibitor, whereas straightforward terms on such “specials” could have better boxoffice re¬ turns, and, consequently, better gains for the distributor. George Gold moderated the meetings. Other speakers included Harold Lasser, Sam Shain, and Jonas Rosenfield, 20thFox; Arthur Greenblatt, Lippert, and Bal¬ timore, Md., exhibitors Will Allen and Leon Black. A cocktail party and banquet, attended by actress Gloria Swanson, climaxed the conclave. Eugene Zukor Elected Los Angeles — Eugene Zukor, the new president of the Paramount studio club, * chosen by the newly-elected board of governors last week, will take office on July 1. Other officers named at the special governors’ meeting are A. B. Hilton and William Cowitt, honorary presidents; Wil¬ liam Abbott, vice-president; Mariane Martin, secretary, and H. E. McCroskey, treasurer. Cowitt is the outgoing president. Five new governors, elected for periods of three years by ballot by the entire club membership, are Kennith Cook, Fred Geiger, Gladys Percey, Lillian Bock, and Harold Sturrock. Distribs Win Point In Minneapolis Action Minneapolis — U. S. Judge Nordbye, sit¬ ting in federal court, last week held that the decrees for the government which have now become final in U. S. vs. Para¬ mount et al., can not be used by exhibi¬ tors in percentage fraud actions as prima facie evidence of claimed anti-trust vio¬ lations on the part of the distributors. Judge Nordbye’s decision was embodied in a nine-page opinion handed down in the declaratory judgment suit brought here in federal court by William and Sidney Volk against the eight distributors, in which suit each of the eight distributor defendants had filed counterclaims for damages claimed to have been sustained by fraudulent percentage picture returns. The Volks had asked that they be given leave to amend and supplement their complaint so as to set forth the final de¬ crees handed down in favor of the gov¬ ernment by the expediting court in U. S. vs. Paramount so that the same might be used as prima facie evidence in support of the plaintiff exhibitors’ suit for a declaratory judgment that the distributor percentage fraud claims were unenforce¬ able by reason of anti-trust illegality on the part of the distributors, and for an injunction against the distributors pro¬ ceeding with or commencing any percent¬ age fraud suits against the Volks. Tax Loophole Being Closed Washington — After the Treasury De¬ partment attacked a practice of some motion picture producers, talent, and other film workers of using a so-called “collapsible corporation” to cut their taxes, the House Ways and Means Committee last fortnight voted that the practice can not be continued. The device was said by the Treasury Department to be one of the possible loopholes in the present tax laws. By organizing a single corporation for each picture, and liquidating the picture when the film is completed, but before it is sold, the producers have attempted to pay only long-term capital gains taxes, at a maxi¬ mum of 25 per cent, on the difference between the film’s cost and its fair mar¬ ket value. The corporation pays no taxes, and the stockholder pays no personal in¬ come taxes unless the film’s income later exceeds the estimated fair market value. The Bureau of Internal Revenue is now attempting to collect regular income taxes from several individuals who used this device. The Committee said the new pro¬ vision would apply to all taxable years beginning after Dec. 31, 1949. SIMPP Renames Arnall Hollywood — At the annual meeting of the SIMPP last fortnight Ellis G. Arnall was reelected president, and was author¬ ized to accept or reject the Anglo-Ameri¬ can remittance pact proposals with the advice of James Mulvey and Gunther R. Lessing. Named to the executive committee were Lessing, Marvin Ezzell, Richard Hungate, Thomas Walker, and George Bagnall. Others renamed to office were Lessing, chairman of the board; Bagnall, treas¬ urer, and Marvin Farris, executive secretary. June 28, 1950