Independent Exhibitors Film Bulletin (1959)

ACE Draws Pledges of Support in Area Meetings The program of regional meetings to discuss the American Congress of Exhibitors shifted into high gear, as theatremen from New York, Philadelphia, Michigan and Texas pledged their full support, and Theatre Owners of America president George G. Kerasotes heaped praise upon ACE in a speech to the Northern California Theatres Association. ACE was accorded "complete endorsement" at a meeting of 100 theatremen representing 800 houses in the New York exchange area. The exhibitors acted following a discussion of the aims of the new organization by Si Fabian, chairman of the administrative committee, and four of the five exhibitor groups which are connected with the congress — TOA, Allied, Independent Theatre Owners Association and Metropolitan Motion Picture Theatres Association. Max A. Cohen, a member of ACE's executive committee, who conducted the program, said the exhibitors "were enthusiastic about the program." Local committee chairmen named included Leslie Schwartz, toll-TV; Wilbur Snaper, producer-exhibitor-distributor relations; Charles B. Moss, ways and means to increase motion picture production; Harry Goldberg, industry research, and Solomon Strausberg, industry-government relations. The area chairmen, it was reported, will consider the matter of financing ACE in the New York territory. Some 265 exhibitors, representing over 900 houses in Texas, promised their unstinted support to ACE after listening to a laudatory presentation of the congress' plan by area chairman R. J. O'Donnell. O'Donnell stressed the fact that ACE "neither supplants nor surrenders, even remotely, any of the established industry organizations—TOA, Allied, COMPO . . ." He referred to the new organization as "the showman's satellite — not waiting on the launching platform but already in orbit," and told the exhibitors that their desire and enthusiasm would keep it that way. As in Michigan, exhibitors were informed that offices and a staff already established — in this case, those of Texas COMPO — will be utilized by ACE. O'Donnell announced that an executive board and a group of executive committeemen had been set up and will meet monthly on matters of importance. Speaking in San Francisco, Kerasotes likened ACE to the Congress of the U. S., and the various exhibitor organizations to the Democratic and Republican parties. The "parties," said Kerasotes, introduce bills to "congress," which are, in turn, referred to legislative committees. After much discussion, the bills are presented to the whole "congress" for approval or disapproval. "It is very obvious," Kerasotes said, "that no one of our present exhibitor organizations can speak for exhibition as a whole. With ACE we will have . . . one organization with single, clear aims. Everything else is academic." The Philadelphia exhibitors, who passed a resolution which "enthusiastically endorses the purposes and objectives of ACE . . . ," unanimously pledged themselves to an organized program of purchasing stock in all film Page 12 Film BULLETIN January 19, 1959 THEY MADE THE NEWS companies. The idea was suggested by William Goldman, who said that it was only through this type of concentrated action that the theatremen could display their confidence in the film business and unite against outside interests seeking to liquidate individual companies. Circuit operator Al Boyd pledged that he would buy $6,000 in film company stocks, $1,000 for each of his theatres. Some 50 Michigan Allied theatremen, representing over 350 houses, unanimously agreed to support ACE at a grass roots meeting in Detroit. "Allied is not to be disbanded. ACE is not to usurp or take its place," Michigan Allied president Milton London told the exhibitors. It was understood at the meeting that ACE should use existing offices and facilities, such as Allied, in Michigan, rather than establish new ones. UDT president and ACE co-chairman Harold Brown voiced the hope that ACE would become the voice of exhibition in meeting government and distribution. Hal Roach Acquires DCA; Plan Program of 20-25 Films Hal Roach Studios acquired the distribution facilities of Distributors Corp. of America and organized a new subsidiary, the Hal Roach Distribution Corp., it was announced by Hal Roach, Jr., president of Hal Roach Studios, and Fred J. Schwartz and Arthur Sachson, DCA president and vice president, respectively. No terms were disclosed. It is expected that 20 to 25 films will be the annual output of the new company, some to come from DCA. The latter will withdraw from the distribution field, functioning instead as a production unit, financing pictures and acquiring product from independent producers. Roach said he will produce from 12 to 15 pictures each year, with the rest to be made abroad. DCA, according to Schwartz, is currently negotiating for two films which would be distributed through the new company. DCA has $1,125,000 locked in distribution advances, and as the funds are realized, they will be reinvested in new productions. Management of the new company will consist of Roach as chairman of the board; Schwartz, president; Sachson, vice president and general sales manager; Mitchell Klupt, vice president and treasurer; Herbert R. Gelbspan, vice president, and Herbert Schrank, secretary. Sachson said that as soon as the new flow of product from the Hal Roach Studios and other independent producers becomes available the company will increase its national sales force, setting up additional branches at strategic points and employing more field men. Roach declared that the industry "is ripe right now for the type of operation we have in mind ... a hard-hitting, hard-selling operation." | More NEWS on Page 29] HEADL1NER KERASOTES If you want a voice in the directorates of film companies, Theatre Owners of America president George G. Kerasotes told exhibition, go out and buy it — $18 million worth. Speaking at a luncheon meeting of the Northern California Theatre Association, Kerasotes, expanding on S. H. Fabian's original suggestion to ACE, proposed that "every exhibitor purchase stock in the motion picture companies of at least $1,000 for every theatre he owns." The directorates of film companies are at present stocked with "lawyers, bankers and individuals who have no experience or knowledge of our business," said Kerasotes. But, with 18,000 theatres and with $18 million in film company stock in the hands of exhibition, we will have representation. "And to clinch his contention, he pointed out that "vertical integration" was one of the few solutions which did not require government approval. The TOA leader listed grievances against the production companies: sale of the pre and some post'48 films to TV; reduction in number of releases; budgeting of millions for TV film; promotion of toll-TV, and exorbitant film rental resulting from excessive competitive bidding for talent. It was apparent that Kerasotes was putting forth the stock-purchase program as one of cooperation with the film companies. "Exhibition, with its two and one half billions of dollars invested in theatres, represents 93 per cent of the total industry's assets," he pointed out. "This 93 per cent is dependent entirely on the continuance and solvency of production and distribution, which represents the remaining 7 per cent (or $180 million) ... We do not want to control the film companies. We want to help them and want them to help us in return," he added. Only then, he concluded, "We will have a renaissance in motion picture business."