The Exhibitor (1950)

EXHIBITOR 9 This Was The Week When ... Warners announced a series of business meetings at the west coast studios, start¬ ing on July 13 for three days. ... It was learned that I. E. Chadwick, president, IMPPA, will conclude his nationwide tour on behalf of independent production and distribution at the Brown Palace, Denver, on July 17. . . . The board of Universal Pictures Company, Inc., approved a long¬ term contract for President N. J. Blumberg. ... A Chicago survey indicated that houses there are losing $41.20 per family per year because of television. . . . Hal Wallis announced that he would pro¬ duce four pictures in the fall and winter season. ... A new national arrangement of exchanges to release the Zane Grey films formerly handled by Paramount was mapped at a meeting of exchange oper¬ ators at the Stevens Hotel, presided over by Moe Kerman, president, Mutual Films Exchange. H. David Frackman, Pentagon Pictures Corporation head, announced the com¬ pletion of a distribution deal with J. Arthur Rank for the handling of 105 Rank English-made films of the past six years for release in the United States, Alaska, and Hawaii, in addition to the 27 other Rank films recently acquired by Pentagon, with the deal excluding tele¬ vision rights to the 132 British films. . . . When it was announced by 20th -Fox that an 88-minute feature production, “Fare¬ well To Yesterday,” is now being com¬ pleted by Movietonews under the super¬ vision of Edmund Reek, covering 30 years of world history, and being edited by Louis Tetunic, with script and treatment by Joseph Kenas. Paramount News revealed that it will release a 40-50 minute feature, “The For¬ gotten War,” covering fighting in Sicily and Italy, 1944-45, based on special Para¬ mount News footage and film shot by other cameramen. . . . W. A. Scully, vicepresident and general sales manager, U-I, said that “U-I now had ready for release some of the finest product with the biggest boxoffice potential in many years.” Monogram Reveals Plans New York — At the final session of Mon¬ ogram’s Hotel Warwick sales confab last fortnight, it was announced that the com¬ pany’s schedule for 1950-51 called for four films in Cinecolor. The “Little Rascals” reissues will be released at the rate of two a month. Steve Broidy, Mon¬ ogram-Allied Artists head, who presided, left for the coast, where the total number of pictures that the companies will release on their 1950-51 program will be decided. Reade Decision Reserved Trenton, N. J. — State Superior Court last fortnight reserved decision on a court order sought by RKO in its suit against Walter Reade asking dissolution of a part¬ nership in the operation of Trenton-New Brunswick Theatres. Examiner Upheld In NLRB-Proj. Case Washington — The National Labor Rela¬ tions Board last fortnight affirmed the March decision of hearing examiner Reeves Hilton refusing board jurisdiction in a case involving the Royal, Philadel¬ phia, and IATSE Local 307-A The board agreed that jurisdiction could have been asserted under the commerce clause of the Act, but that operations of the Morris Wax house “is essentially local in character.” The board last year did assert jurisdic¬ tion in a case involving the Palace, Toledo, O., Balaban and Katz. The important difference was that the Palace was a cir¬ cuit house, with the circuit engaged in interstate commerce. It was made plain that operation of a single independent theatre is not unimportant or insignificant, according to the ruling. Hilton’s ruling was challenged by NLRB general counsel Robert Denham, with three members voting to uphold the examiner. U Executives Win In Suit New York — Universal Pictures Com¬ pany, Inc., executives were victorious last fortnight in a stockholders suit brought against them under the Securities Ex¬ change Act for alleged improper sales of stock warrants of the corporation issued to them pursuant to contracts made when they joined the company. In a lawsuit brought originally against all top executives of Universal, vice-presi¬ dent and general sales manager William A. Scully and former vice-president and studio head Cliff Work, the only defend¬ ants still in the case after the others, in¬ cluding N. J. Blumberg, J. C. Cowdin, and C. D. Prutzman, previously won dismis¬ sals, obtained a unanimous decision in their favor in the U. S. Circuit Court of Appeals. United States Judge Harold S. Medina had previously granted summary judg¬ ment against Messrs. Scully and Work, holding them liable under the Securities Exchange Act, and ordered a trial to de¬ termine the amount of the damages they would have to pay. Judge Simon H. Rifkind held that there were no damages, and rendered a judgment in favor of the Uni¬ versal executives dismissing the lawsuit. The plaintiff then appealed. Louis Nizer was attorney for Scully in the case. "Bring Back Package," Rotus Harvey Asks SAN FRANCISCO— Protesting high film rentals, and calling for a plan of aid to the small exhibitor “who is be¬ ing pushed out of the motion picture business,” H. V. “Rotus” Harvey, head, PCCITO, last fortnight suggested that the “package program” of former years be returned. Harvey recalled the number of smaller show houses being forced to close their doors because of losses. He stated that most attempts to cut ex¬ penses are of no avail since wages, taxes, and rents are standardized. He added: “In most situations, film rentals are running above 40 per cent and many times over 50 per cent, and the dis¬ tributors will not cut. They do not care about these small theatres, they’re perfectly willing to let them close.” He indicated that he was aware of the high production cost for pictures but also pointed out the “astronomical” salaries and bonuses that are paid to the executives. He continued: “Uncle Carl Laemmle, when he was active, once had what was called ‘Universal Complete Serv¬ ice Contract’. He gave a feature, comedy and newsreel for $12.50 up, once a week, and he made millions on it until some wiseacre undersold him.” Harvey then suggested that a major distributor should revive the “pack¬ age” deal, and offer it to theatres that are struggling to keep open. He stated that it would not only cost them nothing, but would make money. He concluded: “Remember you cannot sell a closed theatre, that revenue is gone.” Poster Companies File Suit Philadelphia — Three poster companies last fortnight filed an antitrust action in U. S. District Court charging monopoly in the distribution of posters and adver¬ tising material against 17 distributors and National Screen Service. No amount of damages is specified. The actions were filed by Midwest Poster Exchange, Chicago; Theatre Ad¬ vertising Company, Washington, D. C., and Charlotte Poster Exchange, Charlotte. The defendants are Loews, 20th-Fox, RKO, Co¬ lumbia, UA, EL, Warners, Paramount, U-I, Monogram, Republic, a number of sub¬ sidiaries, and NSS. The recent opening of the new 20th-Fox exchange, Washington, D. C., was attended by exhibitors from Washington, Maryland, and Virginia, and among those present were, from left: G. Werner, G. Crouch, G. Norris, branch manager; L. Ribnitzki, A. Muto, W. Gehring, assistant sales manager, and J. Broumas. July 12, 1950