The Independent Film Journal (1954)

Allied Postpones Regulation Move TO A Demands Round Table Discuss Rental Relief Need Although National Allied again reiterated its determination to seek federal regulation of film rentals, at its recently concluded board meeting in St. Louis, the possibility arises that such action may be forestalled, at least temporarily, because of the forth¬ coming round table conference of industry leaders. After Allied’s board had “reluctantly” re¬ solved to press for legislation because the rental situation had steadily deteriorated since the interim report of its Emergency Defense Committee a month and a half ago, retiring president Ben Marcus reported re¬ ceiving a telephone call from A1 Liehtman, 20th-Fox distribution director, who prom¬ ised to renew his efforts for a round table discussion. Marcus stated that if differences could be ironed out at such a meeting, Allied would, in all probability, abandon its efforts to seek passage of its bill. William C. Gehring, 20th-Fox assistant general sales manager, addressing the Allied meeting thereafter, promised that such a conference would take place “within three wTeeks.” Gehring said, “Go from this meeting to the courts if you want to. Maybe the judge can make better pictures and knows how to sell them for less money than they cost. If you find that judge, Fox will hire him. But until that judge is discovered let’s not stop trying to do a real job together and for the benefit of us all.” The 20th-Fox executive urged exhibitors not to be “impatient,” and advised his listeners to “try for conciliation.” Encouragement Seen Further encouragement that a round table meeting might prove rewarding was seen in the news that changes in EDC membership, because of the recent Allied elections, would cause a delay before further moves could be taken in connection with legislation. Explaining its action toward legislation, Allied’s board said that their decision wras taken due to distribution’s demands for at least 50 percent of the gross for all desirable pictures released since the interim report was completed; because some companies have failed to follow through on promises to sell flat to their smaller accounts; and because of failure to live up to assurances of fair and equitable terms to all. Such develop¬ ments have made the interim report obsolete, the board reported. The statement further added that the board’s decision to press for legislation stemmed mainly from the fact that distribu¬ tion policies had nullified the intent of the tax bill passed last year to aid exhibition and have virtually confiscated the benefits of that measure. Abram F. Myers, Allied general counsel, also voiced the hope that “final action” on the bill for federal regulation of rentals may be spared. Myers said that “it is not going to be a very pleasant fight. It would be terrible,” he said, “if the exhibitors have to go before a Congressional committee and present evi¬ dence that the tax benefit has been confiscated by the film companies through higher rentals.” The belief was voiced that the interest and ( Continued on page 8) Washington.— The TOA board and ex¬ ecutive committee meeting here this week accepted the invitation of the producerdistributors to attend a proposed all-industry “trade practices” conference. However, it emphasized in its resolution that the agenda must be headed by an all-out discussion of the need for exhibitor “relief from prohibi¬ tive film rentals and other inequitable condi¬ tions of licensing films.” A conference that does not go into these problems would not be a “full and whole¬ some conference,” TOA spokesmen told newsmen. They stressed that in accepting the invitation, TOA acknowledges there are a number of other issues which should be con¬ sidered, but wants to make it clear that it is interested only in a meaty conference and not a repetitious “bull session.” A good part of the proceedings were con¬ cerned with the fight against toll television. Alfred Starr, national co-chairman of the Joint Committee on Toll TV, read a report on the subject. It was decided that TOA should back up the Joint Committee to the hilt. Also, it was predicted that industries allied with film theatres would join the fight, as well as advertising agencies, TV stations now in operation, and organizations seeking to save city downtown areas by attracting “a free flow of jieople” to the trading areas for recreation and shopping. The meeting approved alerting “grass roots” exhibitors to follow the “incredible propaganda” in favor of pay-as-you-see in their own newspapers and to use their news¬ papers to counteract the arguments. It wras recommended that kits be prepared for this purpose. Also recommended was a nation¬ wide clinic to prepare anti-toll-TV speakers. Arbitration consumed a major portion of the meeting. Exhibitor executives mulled over the latest draft of an arbitration plan, and concluded that, with the exception of a few points which ought to be clarified, the pro¬ gram is within reach of culmination. Expressing hope that enactment of an Opposition continues to mount in exhibi¬ tor circles against further acquisition of drive-ins by major circuits. Following close on the heels of SCTOA’s resolutions calling upon the Justice Depart¬ ment to restrain the “divorced” circuits from the acquisition of drive-in theatres, National Allied’s board passed a resolution approving the action of SCTOA. Allied’s general counsel, Abram F. Myers, urged exhibitor leaders to further resist such acquisitions by developing political power through contacts with Senators and Con¬ gressmen. “You are no longer hat-in-hand boys,” said Myers, referring to the important con¬ tributions of drive-ins to industry welfare as a whole. Myers pointed out that July and August have replaced the fall months as box office leaders, because of the tremendous grosses of the drive-ins during the height of their season. Federal District Court last week approved the acquisition of the Twdn-Oak Drive-In arbitration system is “imminent,” Starr said the board had accepted “in principle” the latest plan, which the five-man exhibitor com¬ mittee, including TOA members Herman Levy, Si Fabian and Mitchell Wolfson, along with representatives of MMPTA and ITOA, would present to a meeting with their five distributor counterparts. They would not disclose details of their recommendations in advance of this confer¬ ence, but agreed that “there are no points of difference which appear to be beyond solution.” They ducked all questions regard¬ ing inclusion of film rentals under arbitra¬ tion. They voiced enthusiasm, however, over the progress of achieving a workable system made in joint exhibitor-distributor discus¬ sions — a system that would prove “effective, inexpensive and available to all exhibitors.” The proposed system, they pointed out, “covers much more ground than the 1952 plan.” A committee made up of Starr, president E. D. Martin, Wolfson and Walter Reade met wffth officials of the antitrust division of the Justice Department and asked them to permit divorced exhibitor circuits to invest money in the newly formed Exhibitor Film Financing Group, organized to promote in¬ dependent production of more film product. The committee receded from its original intention of asking Justice to go along with its previous resolution that such “consent decree” companies be permitted to engage directly in production, but wTith continued protection against monopoly, on the grounds that it was not qualified to speak for such firms. The Justice officials were requested to specify conditions under which such permis¬ sion would be granted, and asked to reply before May 15, when the first stockholders’ meeting of EFFG is scheduled. TOA spokes¬ men were promised the matter would be given careful consideration. In other actions, the Board set an annual ( Continued on page 19) Theatre, Oak Lawn, 111., by Loew’s Theatres. Loew”s is a divorced circuit. Also, RKO Theatres’ president, Sol Schwartz, said that while RKO owned no drive-ins at present, the company would be interested in acquir¬ ing some. He made it clear that he did not regard such “interest” as a program of ex¬ pansion, but that if an attractive offer were made RKO would seek court approval. “We might even build a drive-in,” he added. A similar position was taken this week by Elmer Rhoden, National Theatres president, who told the press that while his circuit does not own any drive-ins, it might consider purchase of airers if good deals present themselves. The Department of Justice recently re¬ jected SCTOA’s charges of monopolistic trends in the drive-in business, stating that there has been no attempt to violate the court order. “Decree compliance (is) under constant surveillance,” Justice stated. The consent decrees allow the divorced circuits to acquire new theatres if such acquisitions will not unduly restrain competition. Opposition Rises To Drive-In Buys By Divorced Circuits THE INDEPENDENT FILM JOURNAL— February 19. 1955 7