The Independent Film Journal (1954)

TO A Attacks High Film Rentals Listing Specific Complaints Allied Threatening Government Action If Distribs Talks Fail A wave of resolutions by local units in support of charges made by Abram F. Myers, National Allied general counsel, against cer¬ tain practices of the film companies that the exhibitor group finds objectionable has arisen in the industry during the past week. State¬ ments of support have been issued by Allied units in Wisconsin, Western Pennsylvania and the Independent Exhibitors, Inc. of New England. Most vitriolic statement of all came from Rube Shor, board chairman of West Vir¬ ginia Allied, in a bulletin from the group. Shor, issuing a resolution supporting Myers, blasted film rental policies of the companies. He stated that “for the most part, the men who set up these exorbitant price policies have not a cent of investment in the indus¬ try.” He added that “this lack of investment brings about a lack of moral sensibility and it is plain to see that stealing means nothing to them.” The exhibitor leader stated that “they are ruining our business.” He called for the filing of “suit upon suit’ to find out “how much pressure they can stand.” Calls For Suits Shor declared that it is time “to join in a united buying combine that will determine the terms we can afford to pay and kep out¬ doors open.” He suggested as another pos¬ sibility the forming of' a “national boycott.” The exhibitor picked out for special attack the terms asked for “The Caine Mutiny” and “Magnificent Obsession.” Included in the West Virginia resolution is a provision stating that if the upcoming talks between Allied leaders and the com¬ pany distribution heads should fail, the group wants National Allied to seek govern¬ ment intervention. Another statement of a possible decision to seek government intervention was inserted in the resolution passed by the New Eng¬ land unit. The board of directors urged that National Allied “take immediate action to seek government intervention as the last resort to guarantee the survival of the small independent theatre.” The New England board issued a declara¬ tion signed by Ray Feeley, executive director, asserting that it “endorses the stand and statements” of Myers “regarding the dis¬ tributors’ current film rental policies.” Similar Resolutions Similarly worded was the statement issued by Harry Hendel, executive secretary of Allied Theatre owners of Western Pennsyl¬ vania, on behalf of that group’s board. Each of the units directed their representatives to present the request for government inter¬ vention at the upcoming board meeting. Concerning the upcoming meeting between Allied leaders and distribution heads, tenta¬ tively scheduled to begin about Aug. 17, the Wisconsin Allied board passed a resolution stating that if the meeting is a failure the group urges “that National Allied take im¬ mediate steps to seek government interven¬ tion.” The Wisconsin board directed its national director, Sig Goldberg, “to formally present such request for government intervention at the next National Allied board meeting.” Rockford, III. — “All exhibitors should support TO A president Walter Reade, Jr., in his efforts to encourage independent film production and should endorse his criticism of the exorbitant film rentals and the unfair sales methods now being practiced upon theatre owners,” declared George Kerasotes of Springfield, Ill., vice president of the United Theatre Owners of Illinois, at a re¬ gional meeting of the group held at the Faust Hotel hex-e this week. In an open forum the theatre owners dis¬ cussed the many problems confronting ex¬ hibition and voiced deep concern for the f'uture if distribution does not try to under¬ stand the problems of exhibitors and to as¬ sist them. The theatre men were vociferous in their complaints about the 40 percent and 50 per¬ cent rentals and stated that such high rentals are thi-eatening their vei-y existence. Among the specific complaints registered were : 1. The shortage of prints: One theatre owner reported that he had pui-chased six features for a Sunday playdate, but when attempting to book them, was told in each instance that “no prints are available.” The reduction of prints allocated to the film exchanges “will definitely hasten the closing” of subsequent-run and small town theatres, stated Ben Marcus, National Allied president, in a press release devoted to this problem. He noted that he undex-stood that even M-G-M, “who has always had enough prints for good distribution,” has cut the number of prints by as much as 40 percent in some exchanges. The possibility of taking legal action to foi-ce the film companies to deliver prints as agreed upon when setting cleax-ance dates is being considered by North Central Allied. Stanley Kane, executive counsel of NCA, has been instructed to ascertain what legal steps could be taken. NCA members agreed at a meeting that the print shoi-tage is bringing about a new system of clearances and runs, in violation of the established one. Kane noted that his office has been swamped with calls from irate exhibitoi*s who ai’O not getting their product on schedule because of the print shortage. Allied representatives have expressed their opinion that the print shortage is being fostered by the film companies to increase competition in the market. The exhibitor gToup claims that this is a violation of the consent decx-ee. Mai-cus called it a “very shoi-t-sighted and foolish economy” that will “fui-ther tend to destroy all oi-dei-ly clearance for subsequent runs and will prohibit small towns from showung the much-needed box office pictures within a reasonable time after first-run in the cities.” He added that effective advei-tising campaigns vcould thus be wasted. The exhibitor leader stated it was “hard to conceive that the heads of the major pro 2. Forced sale of blocks of pictures: Exhibitox-s x-eported that gi-oup sales “of an entix-e group, or none” was being pi*acticed by some disti-ibutoi-s. 3. Forcing of shorts with features: A number of theati’e owners reported a doubling of the cost of shoi'ts and the forced inclusion of them in feature deals. 4. High terms retard new improvements: The theatre men concure-ed that the ex¬ cessive rentals now being chai-ged for current product dejirives theatx-e own¬ ers of the i-evenue necessary to modei’nize their theatres for the presentation of motion pictux-es in the new mediums. They were unanimous in their suppox-t of the development of any practical plan the TOA leadei-ship could promulgate to in¬ crease the product supply. The Illinois association, a TOA affiliate, under Kerasotes, assisted by George Gaughan of Memphis, Tenn., TOA Field Representa¬ tive, is conducting a series of meetings throughout the state. The next regional meetings will be held in Champaign, 111., August 16; Springfield, Ill., September 13; Vernon, Ill., October 4. ducing companies would embark on such a senseless economy move.” He added the hope that they would “re-examine the print short¬ age and reduction situation and increase in¬ stead of induce the number of prints to the exchanges.” “It is a fallacy, proven time and again, to think of eliminating the subsequent-run and small town theatre,” Mai*cus declared. These theatres are necessary for the dis¬ tributors to retain “the profitable position” they “have enjoyed this last year,” he assei-ted. In other local North Centi’al mattei-s, the group discussed a demand by the projection¬ ists union for extra pay when they show both CinemaScope and conventional films on the same program. Kane was insti-ueted to tell them to abide by the terms of their eontract. which expii’es Nov. 30. The group announced also its disapproval of the practice of Minnesota Amusement Corp. to run advertised sneak previews at the Radio City in Minneapolis. Kane was told to write to Hairy B. French, president of the company, requesting that the practice be discontinued. Kane has announced that he will be a candidate for the Minnesota legislatui'e. Another Allied unit, Iowa-Nebraska, charg¬ ing that exhibitoi-s have to do considerable driving to the town in order to pick up prints, has suggested that exhibitors might deduct a mileage allowance from future film rental invoices to compensate them for the cost of the trip. The suggestion was made by the exhibitor group because it claims this practice is increasing in recent months. De¬ ductions for driving expenses, it is hoped, will serve as a deteirent to continuation of this practice. Charge Prints Shortage Hurts Theatres THE INDEPENDENT FILM JOURNAL— August 7, 1954 5