Independent Exhibitors Film Bulletin (1957)

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ALLIED CRITICIZES PARAMOUNT (Continued from Page 11) organization which will have at its purpose and effect the complete divorcement of the ownership and control of all the theatre assets of Paramount Pictures, Inc. located in the United States from all other assets of the Paramount defendants . . . Coming to the general law, and bearing in mind Paramount's partiality for roadshows, merchandising engagements and the special handling of pictures, it is probable that Paramount will want to put its better than average pictures into the Esquire for an exclusive first-run to continue as long as the attendance holds up. That as a practical matter will give Paramount a monopoly of the exhibition of those pictures in vast Chicago area. This includes not only the city proper, but also the populous suburban districts. The drawing area includes Hammond and Gary, Indiana, and the effects of this regional monopoly will be felt across state lines. These circumstances lead us to think that Paramount's legal right to acquire theatres and do with them as it sees fit, is far from clear. Effect Upon the Conference Whether Paramount really wants the Esquire or any other theatres, or whether it merely meant to toss a bombshell into Thursday's conference, we may never learn. If the latter, the expectation probably is to force those who advocate allowing the circuits to produce pictures to a difficult choice. What Paramount apparently is saying, in effect, is this: "If the circuits want to make and distribute pictures, then in fairness we must have the right to own theatres." If Paramount goes into the theatre business, then Loew's, 20th Century and Warner Bros, will undoubtedly seek modifications to permit them to do likewise. That would pose a tough problem for the circuits; it might be an even tougher one for the independent exhibitors. The question is not a new one to Allied. Allied took a stand on the question more than a year ago when it was reported that Paramount was, in effect, leasing theatres for exhibitions of "The Ten Commandments." It has held to that position ever since and it is summed up in the following paragraph in a recent statement by the General Counsel: // is easy to say that if the divorced circuits are permitted to produce and distribute pictures, the film companies should be allowed to operate theatres. This does not follow, however, because the purpose in relaxing the decrees in favor of the circuits would be to enable them to relieve a starved market and, hence, to promote trade and competition, whereas to permit film companies to acquire theatres, in view of their past history and present policies, would be to confer on them the power and opportunity to strangle competition and resume their march toward a complete monopoly of exhibition . . . It is Allied's position, therefore, that to permit the film companies to re-engage in exhibition would be ruinous to the competition in exhibition that has been revived and nourished under the decrees, and, hence would be contrary to the purpose of the decrees and, hence, unlawful. It believes that to permit the circuits to engage in production and distribution, with proper safeguards, would promote competition and thus be consistent with the decrees and with the law. Allied does not believe that granting the divorced circuits the permission requested by them makes it incumbent upon the Department of Justice to cancel the divorcement provision of the decrees. It does not believe the independent exhibitors should be driven to an election in this matter. If at Wednesday's conference the Department of Justice should inform the exhibitors that they must make a choice, a serious issue would be raised which could not be finally determined in that forum. It would be an issue in which every exhibitor in the United States should have his say, especially those who might be exposed to the blight of the distributors' "showcase" theatres. Chicago Unit Protests RESOLVED by the Board of Directors of Allied Theatres of Illinois, Inc., in meeting assembled this 9th day of October, 1957, that it looks with great disfavor upon and condemns the recent move of Paramount Pictures in acquiring the ownership of the Esquire Theatre in Chicago, it being the feeling that this step by Paramount Pictures will have the effect of further restricting the showing of motion pictures in the Chicago area. It is a foregone conclusion that one of the principal reasons Paramount Pictures is acquiring the Esquire Theatre is to utilize that theatre for the extended and unlimited run of its pictures, thereby reducing the value of such pictures to subsequent run independent exhibitors. RESOLVED further that since this action by Paramount Pictures is morally at variance with the government's divorcement decree which intended to dispose of a monopoly in the production and exhibition of motion pictures, that we call upon the General Counsel of Allied States Association of Motion Picture Exhibitors to carefully examine and advise as to this legal aspects of this matter. ing from Washington, D.C. Sunday evening, Oct. 6 . . . DCA treasurer PETE SHAPIRO engaged to ROSE WEINBERG of the same organization . . . FRANCIS M. WINIKUS, in from Paris to confer with UA vice president MAX E. YOUNGSTEIN . . . ERIC JOHNSTON personed-to-personed by ED MURROW last week . . . BARON RANK denies reports of retirement on his 68th birthday . . . GEORGE JESSEL has formed Pickwick Pictures, to produce for TV and theatres . . . L. R. CONN of 20th CenturyFox's Chicago's exchange reported a survey which shows an increase in business for some 1000 ozoners between the Windy City and Denver . . . GEORGE WELTNER will preside at a 3-day Tokyo sales conference on the Far East release of "Ten Commandments" . . . GENE PLOTNICK named publicity manager of Screen Corns . . . SID SCHAEFER back at his desk in the Columbia home office ad department. HEADLINERS... A. W. SCHWALBERG announced NTA Pictures, Inc. is planning the release of 24 films a year . . . SOL KRIM leased the 1,000-seat Krim Theatre in Highland Park (Detroit suburb) to Trans-Lux for twenty years . . . EDWARD SHULMAN elected president of Studio Theatre Corp., Detroit . . . Producer BEN SCHWALB elected assistant secretary of Allied Artists . . . A. E. BOLLENGIER has been elected treasurer and a director of United Artists Theatre Circuit . . . American International president JAMES H. NICHOLSON to speak at North and South Carolina TOA convention and Allied of Indiana conclave this week . . . JOSEPH A. MACCHIA, of Loew's legal staff nominated as Republican candidate for Justice of the New York Supreme Court . . . FLOYD C. HENRY resigned as Far East division manager for Paramount International after 26 years with the company . . . SAMUEL ROSEN, executive vice president of Stanley Warner Theatres, awarded the B'nai B'rith Cinema Lodge's "Honor Scroll" for charity work . . . BOB MONTGOMERY elected president of the Associated Motion Picture Advertisers for 1957-1958 . . . HENRY S. GRIFFING's Video Independent Theatres mapping Oklahoma City and Tulsa to determine location of cables for telemovie operations . . . RALPH M. EVANS, Eastman Kodak, awarded the SMPTE Progress Medal for '57 at the Philadelphia convention . . . DAVID E. WESHNER retained as producer's representative on "Gunsight Ridge," Robert Bassler production for UA release . . . BOSLEY CROWTHER, N. Y. Times film critic, and DORE SCHARY discussed "What's with the Movies" on a network TV show, emanat Page 12 Film BULLETIN October 14. 1957