Independent Exhibitors Film Bulletin (1948)

Xeu^s and Op (Continued from Page 8)^ District Court Judge Vincent Leibell signed the death warrant. This was in the form of a final decree embodying the provisions of the Federal Court's decision on Oct. 27 and denial of ASCAP's plea for a stay pending appeal to the Circuit Court. The Society planned to file appeal by the end of last week, at which time it will also petition the Circuit Court for a stay pending disposition of the case. If the latter is granted, Judge Leibell's decree will become inoperative and ASCAP's resurrection will last until final adjudication of the ITOA suit. Many observers believe that if the stay is won, ASCAP will be but a zombie whose existence will continue to frighten some exhibitors until the silver stake upholding the Leibell decree on appeal is thrust into its heart. ITOA To Seek Reimbursement Plaintiffs in the case, all ITOA members, will take an appeal also. In their case, it will be to recover fees paid to the Society. This provision, plus injunctions which would have specifically barred ASCAP from collecting on past and current films in which only synchronization rights were sold, were the sole exceptions to the decree prepared by plaintiff's attorneys. The injunctions, however, were considered unnecessary in view of the Court's ruling that neither ASCAP or individual members could derive subsequent benefits from illegal operation. According to the decree, ASCAP, as long as it remains in its present "illegal" setup, cannot: — Collect public performance fees from exhibitors. — Grant only synchronization rights to producers. — Make any deals with producers which would require exhibitors to obtain an ASCAP license. — Enforce the motion picture performance rights of any musical compositions of which only synchronization rights havo been granted. NYC THEATRES UP IN ARMS OVER SALES TAX ON LEASES New York City theatremen fought back savagely at an extension of the city's two per cent sales tax to apply to leased equipment, a move which would hit them for millions of dollars. After lying dormant for eight years, the application of the tax was revived by the municipal tax department, which suddenly decided that the city's sales tax should extend to equipment involved in theatre leasing deals — and be retroactive over the eight-year period. Metropolitan theatre owners met the disclosure of the city's move with a giant protest meeting at the Hotel Astor and appointed a committee of four to consult with tax experts and prepare legal action. Named to the committee were Harry Brandt, ITOA president; Leo Brecher, Metropolitan TOA of N. Y. chairman; Gael Sullivan, TOA executive director, and James F. Reilly, executive secretary of the League of New York Theatres. During heated discussion. City Controller Lazarus Josephs' oflSce was blasted for its demands to examine all leases on theatres to determine the yearly tax assessments on equipment, and its tactics of setting an arbitraiy proportion of the annual rental on a property — in one case, 15 per cent — on which to levy the two per cent sales tax when they were refused access to lease figures. 'nion LOCKWOOD URGES TOA UNITS CONCILIATE ALL BUT RENTALS Every complaint except the actual price of film will be embodied in the TOA conciliation plan if member units heed President Arthur H. Lockwood's advice. A broad scope of claims was urged by Lockwood in a letter sent last week to all state and regional units of TOA in which he outlined the system approved by the organization's executive committee. Among the grievances suggested by Lockwood for presentation to the local Conciliation Committees were "run, failure to supply prints on time, conditioning the licensing of one feature upon another, tying in more than one theatre on the licensing of pictures, forcing of features and shorts, the failures of salesmen adequately to solicit customers, etc." TOA'S LOCKWOOD Broad Beamed Conciliation Noting that it was up to each unit "to determine the mechanics of the system," Lockwood recommended the three-man Conciliation Committee system which can eventually reach top-level negotiation, as voted by the executive committee. . MPEA HAND STRENGTHENED AS REPUBLIC MAKES NO. TEN Republic's afliliation with the Motion Picture Export Ass'n, "strengthens the hand of the American industry" in foreign distribution. Thus did Eric Johnston, MPEA president, welcome the tenth company to join the Association's ranks. "No' only does the alliance provide a more solid industry front in bargaining and marketing negotiations with various European film monopolies, associations and cartels, but moreover extends MPEA coverage in the important matter of product selectivity," Johnston declared. In viev/ of the headaches which have plagued American films overseas, and the refusal of American independents to go along with many of the decisions worked out by MPEA, Republic's affiliation was seen as a bulwark to the Association's power to negotiate deals. SHORT SUBJECTS ^Continued from Pai/e S) heart of the matter, he said, because man is a gregarious animal and needs "to laugh or shed a tear together, in sympathy, unity, trust as one of man's most redeeming traits." This need, he contended, no living room or kitchen can satisfy. "Most of us can eat or drink at home," he points out, "yet the bars or restaurants are crowded, as they always have been, and it is not television that brings the people in. It is not for nothing that the cry of the Roman people was for 'Bread and Theatre'. So long as civilization survives, the Theatre will live." He contends that Theatre must have an audience, "and by audience I mean a large group of people gathered together in one auditorium, watching a play or a film." * * The new buying and booking service of Allied in eastern Pennsylvania, Allied Motion Picture Theatre Service, now totaling 17 theatres, has elected Sidney E. Samuelson, general manager of E. Pa. Allied Theatre Owners, as president; Elmer Hollander, vice-president; Cecil Felt, treasurer; Albert M. Cohen, secretary and E. B. Gregory, financial secretary . . . "Edward Lachman, president of Carbons, Inc., has been covering a lot of territory setting up distributors for his Lorraine Studio carbons. Having set up 10 outlets to take care of the East, South and p;' "t of the Midwest, Lachman traipsed off to Hollywood to demonstrate his discovery to the studios and to establish distributors for the rest of the U.S., including Al£iska and our Pacific possessions. Of Men and Things: A 31year association was terminated when Edwin A. Aaron, M-G-M assistant general sales manager, left the "friendly company" under "friendly" circumstances. Aaron intends to remain in the industry and is considering offers from other companies which he has received . . . Clarence Eiseman, has been moved up from New York branch manager to the post of Metropolitan district manager by Ben Kalmenson, Warners vice-president and general sales manager. Ben Abner moves over from Metro's New Jersey branch to replace Eiseman as WB's New York branch manager . . . Lou Allerhand steps into Abner's spot at M-G-M . . . Jack Goetz has been named special consultant on laboratory and studio activities by Republic president Herbert J. Yates . . . Two new Paramount branch managers were named by distribution chief Charles M. Reagan to replace resignees: Edward Maloney moves up to succeed Ed Ruff in the Albany branch and Maurice Simon fills the Buffalo branch managership vacated by Mannie A. Brown . . . U-I v.p. sales head William A. Scully has upped Henry H. Martin to Dallas branch manager; Charles W. Hudgens replaces Martin as head of the Oklahoma City branch. NOVEMBER 22, 1948 26