Motion Picture Daily (Jul-Sep 1949)

Friday, July 22, 1949 Motion Picture Daily 3 Myers Hits (Continued from page 1) cently given "B" ratings by the Legion of Decency to see what _ could have been done to put them in the "A" bracket ; Declared that the new National Exhibitors Film Company is to be welcomed if it really carries out its announced purpose of producing more pictures for release through _ existing agencies and without discrimination in favor of any class of theatres, but indicated he had misgivings that it might be a new attempt by the heads of the large circuits to get better terms for their theatres ; Attacked producer Joseph Mankiewicz for his Life Round-Table statements that the motion picture industry is controlled by "a real estate operator whose chief concern should be taking gum off carpets and checking adolescent love-making in the balcony." Hits Justice Department Myers said that anti-trust defendants in other cases will now fight their cases through the Supreme Court "and if they lose, they will apply to the Department for softer terms than the Court ordered." Turning to the injunctive provisions, Myers said "one gets the impression the Department sought to compensate for the lack of adequate divestiture by injunctions directed against certain monopolistic practices." The product limitation restrictions, Myers said, have the difficulty that they do not apply where competitors have not made an offer or have made an unsubstantial offer. The difficulty is that the distributors are not parties to the decree, Myers said, and will decide for themselves whether a Schine competitor has made a substantial or unsubstantial offer for a picture. On the subject of cleaner films, Myers declared that "with theatre attendance on the decline, it is sheer folly recklessly to ignore the Legion's standards in motion picture production." Should Pledge Reform Myers admitted that many "B" or "C" pictures have been successful, but said that given an "A" rating they might have been even more successful, and "at a time like this, the industry cannot afford needlessly to flout public opinion or antagonize any organized group." The Allied official cautioned against thinking of better public relations solely in terms of advertising and exploitation, and said that "the public, and especially the organized groups such as the Legion of Decency, are not going to be impressed by institutional advertising, go-to-the-movies weeks or other forms of ballyhoo unless they are accompanied by serious pledges of reform. A publicly announced undertaking to weed out offensive material and to discipline the erring stars who reflect discredit on the industry through scandalous conduct are conditions precedent to any public preening." On the subject of the NEFC, Myers said that this was the "latest development" on the part of heads of divorced and about to be divorced circuits and large independent circuits "to hold together for mutual protection and for the perpetuation of their special privileges." Myers emphasized the serious film shortage, and said that any move to create films is to be welcomed. He declared that to "be legal and hence to succeed," NEFC must be conducted in accordance with the public declarations and not attempt to control distribution of the products it finances. . Myers said there was no reason to believe the NEFC organizers would not go through with their plan, but that "it is barely possible that the circuit heads are throwing a colossal bluff to impress or even intimidate the major companies." Quarter Film Sales (Continued from page 1) — actually show increases in the first quarter of this year over the comparable 1948 period. Here are the company -by-company figures for the first quarter of 1949, the first quarter of 1948, and the fourth quarter of 1948. Columbia: $8,924,000 (first quarter 1948, $8,529,000; fourth quarter, $8,525,000). Loew's: $49,388,000 for 1'6 weeks ending March 17 ($52,551,000 for 16 weeks ending March 11, 1948; $34,042,000 for 12 weeks ending November 25, 1948). Monogram: $2,077,000 (first quarter 1948, $2,097,000; fourth quarter, $3,157,000). RKO: $27,100,000 (first quarter 1948, $27,654,000; fourth quarter, $27,500,000). Republic: $6,363,000 (first quarter 1948, $6,838,000; fourth quarter, 14 weeks, $7,443,000). 20th-Fox: $46,508,000 (first ; quarter 1948, $44,408,000; fourth quarter, $45,823,000). Universal: $14,622,000 (first quarter 1948, $15,225,000, including gross income of certain subsidiaries included for a four months period; fourth quarter, $15,742,000 Warner: $36,000,000 estimated (first quarter 1948, $38,813,000; fourth quarter, $36,000,000 estimated). The gross income of Columbia's foreign subsidiaries was reported to be $4,128,000 in the fourth quarter of 1948 and $3,782,000 in the first quarter of 1948. No figure was given for the 1949 first quarter. The report said that the RKO1 figures included the "net amount of film earnings of subsidiaries not consolidated operating in foreign territories" amounting to $2,661,000 in the first quarter of 1949, a drop from the $2,S25,000 in the fourth quarter of 1948 and $4,772,000 in the first quarter. Other companies made the following reports: District Theatres Corp., $1,056,000 for the first quarter of 1949, the only figure reported. Loew's Boston Theatres Co., $537,000 for a 16 week period ending March 17, 1949; $595,000 for a 16 week period ending March 11, 1948, and $432,000 for a 12 week period ending November 25, 1948. P'ennFederal Corp., $358,000, $361,000 and $290,000 for the same periods as in Loew's Boston. Trans-Lux Corp., $486,000 for the first quarter of 1949, $208,000 for the first quarter of 1948, and $434,000 for the fourth quarter. Eastman Kodak Co. had sales of $95,500,000 for the 12 weeks of 1949, compared with $92,01X1,000 for the first 12 weeks of 1948 and $138,000,000 for a 16 week period at the end of 1948. General Precision Equipment Corp. had 1949 first quarter sales of $6,234,000, $5,538,000 in the first quarter of 1948 and $7,626,000 in the fourth quarter. 4B' Pool Questions (Continued from page 1) ment, it was reported by MPAA. Another meeting on the subject will be held, MPAA said. MPAA president Eric A. Johnston, who presided at the meeting, told the board that progress was being made in the current negotiations with the U. S. Government concerning the convertibility and use of MPEA's sizeable yen accumulations in Japan. The discussions concerning the "B" pool, the separate fund here for British film earnings in the American market, gave consideration to the position of Universal, virtually the only company with British picture earnings here which has not evaded the "B" pool arrangement, it was learned. However, proposals for abandonment or revision of the fund set-up were not acted on. Participating in yesterday's discussions were Allan W. Dulles of the law firm of Sullivan & Cromwell, and Theodore S. Hope, Jr., of the law firm of Donovan, Leisure, Newton, Lumbard & Irvine. New $4-Million Suit (Continued from page 1) Schine "have engaged in a combination and conspiracy to restrain and monopolize interstate -and foreign commerce in the distribution and exhibition of motion pictures" in violation of the Sherman anti-trust laws. The alleged combination and conspiracy, the complaint contends, have been carried out "by various means and methods as set forth in U. S. vs. Paramount and U. S. vs. Schine, The complaint cites long-term franchises, pooling arrangements, favorable terms, unreasonable clearances and runs as practices followed by the defendants, Martins, who is seeking damages totaling $2,355,000, charges also that he was forced to abandon the Empire Theatre in Syracuse, N. Y., in consequence of the alleged conspiracy. S. K. E,, it is alleged, reopened the competitive Empire after Syracuse Community announced it was going to operate the Strand. Syracuse Community asks $1,575,000 damages. Syracuse-Strand, which charges it was forced to lose money over a number of years on leasing arrangements, is seeking $709,000 damages. Senate Bill Eases (Continued from page 1) FCC could not bring a revocation proceeding or deny a license solely because the companies violated the antitrust law. It would be required to make an affirmative finding on a caseby-case basis that the anti-trust conviction affects the company's qualifications as a licensee. The bill may be acted on in the Senate this year, but has very slim chances of. passing the House. SIMPP (Continued from page 1) Hollywood Motion Picture Industry. Council, of which it is a member. The MPAA group has completed preliminary meetings with representatives of all organizations which it hopes will participate. No session has been held with SIMPP. As yet the time and place for the all-industry session has not been set. The MPAA committee met here yesterday for a review of proposals advanced at the conferences throughout the country but reportedly no conclusive action was taken. Ned E. Depinet, chairman of the committee, referred reporters' queries to Francis Harmon, MPAA vice-president, and the latter maintained his customary inaccessibility to reporters. Among the three-to-five outstanding suggestions for an all-industry public relations program one is said to be a revival of the "Motion Pictures Are Your Best Entertainment" campaign of 1939. The results of that project are up for a new inspection and a favorable finding probably could mean a new campaign of a similar nature. At the meeting yesterday with Depinet and Harmon were Eric A. Johnston, MPAA president, and committee members William F. Rodgers and Maurice Bergman. Absent was Austin Keough, also a committee member, who was out of town. Arnall, Rubin Confer with Justice Dept. Officials Washington, July _ 21.— SIMPP president Ellis Arnall discussed industry problems with Department of Justice officials today, but refused to disclose details. Arnall was accompanied I by general counsel Robert J. Rubin.