Independent Exhibitors Film Bulletin (1951)

ARTHUR B. KRIM "The uncertainty . . ." (RIM-BENJAMIN TAKE OVER JA HELM;; SEARS QUITS POST * / The new United Artists regime, under he leadership of Arthur B. Krim, Robert 5. Benjamin and Matthew Fox, lost no ime in taking over the reins. On Friday, ^eb. 16, the contract for the transfer of nanagement control of the company was lelivered out of escrow, simultaneously ■vith the resignations of Paul V. McNutt ind Frank L. McNamee as board chairnan and president, respectively. On the following Monday, Krim, Benjamin and Fox called the various department heads jtogether, revealed that Gradwell L. Sears pad been relieved of the general sales manager post — at his own request — and would remain with the company in an "executive capacity" until his contract expires at the end of the year. I The new distribution head, Krim said, Iwas expected to be named within two weeks. It was expected that William J. Heineman, distribution vice-president of Eagle Lion-Classics, whose pact with ELC ihas just expired, will be solicited for the UA post. j Krim, who is expected to take over as president, sent telegrams to all the field sales managers. "You have all been through a trying period of uncertainty," the wires read. "Happily for all of us this uncertainty is over. However, a very formidable task remains. We will start immediately to create a strong, steady flow of important new product which is the lifeblood of our company. It is our objective to merit, once again, by caieful planning and selectivity, the confidence of exhibitors that each of our pictures will represent the best that the finest creative talents in the world have to offer. This cannot be done overnight." The next six months, he told the sales personnel, are "crucial." During that period, "the company must be protected for the benefit of those in the industry to whom it is so essential . . . Now is the time for you and our exhibitor friends to rally to a common cause, no longer in an atmosphere of uncertainty, but with the sure knowledge that we are rebuilding for the future." The only hitch in the new deal appears to be the opposition of Max Kravetz, who BULLETIN Volume 19, Number 5 February 26, 1951 News and Opinion still holds an option on 8,000 shares of the Pickford-Chaplin stock. With Kravetz. who had engineered the previous deal which brought McNutt and McNamee into the company, indicating that he will not relinquish his option, it was still problematical just how his claim will be circumvented. A possible avenue would be through a settlement with Pickforri and Chaplin, with an alternative of facing litigation that might hamstring the new management. Insofar as product is concerned, Krim said, the company expects to announce a program of 10 or 12 features within the next week or so. About half are expected to come from current UA producers; the balance, from new production sources. Financing will be provided by Walter E. Heller & Co. of Chicago, with Milton Gordon, vice-president of the Heller Co., acting as financial adviser to the new management. It was expected that Max E. Youn?stein, who recently resigned his post as vice-president in charge of advertisingpublicity exploitation at Paramount, would join United Artists as a vice-president, supervising the a-p-e functions buc not actually handling the ad-publicity job. One of the most sought-after executives in the industry, Youngstein is understood to have left Paramount with an eye to accepting the UA vice-presidency, although terms of such a deal had not been set. Reports also were current, however, that Youngstein might decide to enter the independent production field. THEATRE BUSINESS RISING IN NEXT FEW YEARS-MYERS A. F. Myers' annual report to the midWinter board meeting of Allied States Association made the future appear much brighter for the nation's independent exhibitors. The National Allied board chairman and general counsel put his finger on many much-discussed sore spots. Some of them still hurt, but others were surprisingly painless when tested by "Mr. Allied's" logic and experienced analysis. Such factors as better pictures; a greater influx of entertainment spending, now that durable goods instalment buying has slacked off or been curbed; a waning interest in television by the public; the most marked revival of showmanship in 20 years — all of these point to the resurgence of theatre business, Myers said. The improvement in product, it was asserted, is due largely to divorcement the recession which have "put producers on their toes." The spectre of Television and some of ROBERT S. BENJAMIN its offshoots, Phonevision and Skiatron, was admittedly nothing to be dismissed as a "temporary minor disturbance," Myers said, but it has received "far too mucn credit for the movies' present distress and that false emphasis has tended to tear down the movies and build up television." The subscription TV systems, still faced many problems, including the FCC's stand that public facilities remain free of charge, as demonstrated in an earlier radio subscription plea turned down by the Commission. He also revealed that Allied would ask the government for comparable taxes on Phonevision and Skiatron if they are to command the vast audiences proclaimed by their sponsors. While defense controls will affect the movies, the same factor will also be felt by competing media, the Allied topper said. In addition, the National Production Authority's freeze on new theatre construction will remedy the over-expansion in exhibition in the past few years. Myers again took to task the "supercilious" newspaper critics whose "flagrantly unfair reviews and a condescending attitude toward motion pictures" ha.s hurt the industry. He stressed the need for effective organization work, pointing out that COMPO will function with respect to matters in which all industry elements have a common interest and will operate "in a sphere where the existing industry organizations in all branches, acting separately, have not done and could not do a job." He promised that Allied will battle any moves to allocate theatre television channels to a few big city theatres. If it should be necessary to rearrange the entire channel system in order to assure the opportunity of theatre TV to all theatres, Allied "is prepared to insist that that be done." A surprising board action — surprising in the light of the organization's past rejection of arbitration procedures — was the board's directive to Myers to explore the possibilities of an arbitration system in discussions with distributors. Myers made it clear that "Allied will not, as presently advised, enter into any general conference on that subject." (TOA executive director Gael Sullivan praised the Allied board action as "a healthy sign" and a "statesmanlike ges (Continued on Next Page) FEBRUARY 2 6, 1 9 5 1 19