Motion Picture Daily (Jan-Mar 1954)

6 Motion Picture Daily Friday, February 5, 1954 Myers Urges Stock-Buy Unity, Promotion Sees Product Situation as 'Desperate' (Continued from page 1) about this condition in order to raise the price of film," Myers said. "Without pausing to inquire into the question of a specific intent to rig the market, let us consider the vicious circle of circumstances leading to the tragedy. A film representing a considerable investment needs successful first run exhibitions in order to make money. The extended run epidemic superinduced by CinemaScope causes product to pile up awaiting first run outlets. And as those outlets become clogged, the studios curtail production to prevent inventory losses. This condition, unless promptly relieved, spells disaster for the subsequent-run small town exhibitors." Myers contended that when the public curiosity has been satisfied with respect to CinemaScope, the duration of runs will again be in proportion to the essential merits of the pictures. The solution of the problems, Myers said, involves drastic measures in which all classes of exhibitors must join. These measures are of two kinds, he explained: CI To bring about the production of more pictures either by engaging directly in production activities or stimulating production by others. d To carry on an intensive nationwide campaign to promote theatre attendance so that increased production will be economically feasible. Myers recalled that Allied, taking its cue from former president True Allied Won't Bar Distributors' Ads From '54 Program Chairman Lists Omens That Justify An Optimistic Outlook For This Year CINCINNATI, Feb. 4. — Despite possible conclusions that independent exhibitors are entering the new year with a carry-over of most of their old grievances, plus those arising from the past year's innovations, Abram F. Alyers, Allied States chairman, believes there are other considerations which justify a more optimistic outlook. In his annual report to the Allied States board of directors in session here Myers makes the following observations : CINCINNATI, Feb. 4. — Despite reductions in distributors' financial assistance to national exhibitor organizations and their annual conventions in recent years, Allied States will continue to look to the companies as sources of special-occasion revenue, it was confirmed here today. Last fall, the Allied board, meeting at Boston, was so annoyed at distribution for eliminating the convention contribution and holding back, temporarily, on advertising in the convention program, that it considered ignoring the distributors in the future and turning to equipment manufacturers and dealers exclusively for annual convention program advertising. This year, however, happens to be Allied's 25th anniversary and plans are in the making for some special observances, come convention time next fall. It is definite that distributors will again be able to buy their way into the convention program. Cj "Pre-releases, old style, have dwindled to a trickle due to the intensity of the assault made on them last year. Cj "Exhibitor organizations are holding together in solid opposition to 20th Century-Fox's efforts to cut off from film supplies all who cannot afford stereophonic equipment. Cj "Warner Brothers has recently broken ranks by announcing that its first CinemaScope picture, 'The Com mand,' will be available with both onetrack and four-track sound. Cj "A 10 per cent reduction in income taxes became effective on Jan. 1 and prospects for some measure of relief from the admission tax are bright. Cj "It seems likely that there will be some reduction in corporate income taxes and that Congress will enact a provision for accelerating the depreciation on new equipment. C[ "Despite all the trials and tribulations following in their wake. Cinerama, CinemaScope, wide screens and even 3-D have reawakened public interest in motion pictures and have given the business a boost that should keep it moving forward throughout 1954," Myers concluded. man Rembusch's keynote convention address in Boston last October, authorized the making of a survey to ascertain how much influence could be exercised by exhibitors in film companies to pursuade them to increase their output by exercising the voting rights on any shares of stock in such companies that the exhibitors may own or be willing to acquire, and amassing and guaranteeing playdates for the additional pictures that such companies might produce. No Prediction Yet Myers explained that the survey did not get under way until midJanuary and that, to date, the returns are too meager to support a prediction as to whether the final result will justify the necessary formal steps for putting the plan into operation. "However encouraging these early returns may be," Myers stated, "the board should realize that so ambitious a plan calls for widespread support. If the anguished cries from other quarters are to be credited, it would seem that even the largest circuits are beginning to sense, even if they have not yet felt, the product pinch. "I recommend, therefore, that the board authorizes the necessary steps to bring the plan to the attention of other exhibitor organizations and exhibitors in unorganized territories and to invite them to participate in it. This would entail affording such non-members representation on the management committees and the board should act on this recommendation with that thought in mind." In meeting the competition of television, Myers said, the motion picture industry has used only "defense and diversionary tactics," adding that "it seems to lack the vision or courage to carry the fight to the enemy." If the industry is ever going to make an all-out effort to win back the so-called lost audience, this is the time for it, Myers said, claiming that "all the publicity concerning Cinerama, CinemaScope, 3-D and wide screens has served to re-awaken interest in the movies." Unfortunate!}', however, he added, the news about fine pictures seeps slowly and the impression still lingers that there aren't any good pictures any more. 'No Particular Medium' "What is needed," Myers said, "is a great united push, not for any particular medium or picture, but for motion picture entertainment, distinct from and superior to all other forms of entertainment. The public must be made, and it must remain, motion picture conscious — not CinemaScope conscious, not 'Robe' conscious, but movie conscious." Claiming that the public loves a contest, Myers said he had submitted to Allied's representatives in the Council of Motion Picture Organizations an idea in hopes that it will stimulate others to try to devise a better one. "A great promotional campaign, to be managed by a national committee similar to the tax committee," Myers said, "should now be launched and all of COMPO's resources not absolutely essential to the tax campaign should be devoted to it, and additional funds should be raised if needed. When the gross receipts of the industry have been raised to something approaching the 1946 level, other problems can be more easily solved. Let the industry adopt as its slogan for 1954, with a nod to Charles Pinckney: 'Thousands for promotion but not one penny for defense.' " Myers then turned to recent attacks on the Sherman anti-trust law, a review of the Senate Small Business Committee hearings and stereophonic sound. Supports Sherman Act The Allied general counsel asserted that any threat to the Sherman Act, "even if only a distant rumble," is a matter of deep concern to independent exhibitors. He was critical of the Attorney General for appointing Asks Compo's Cooperation in 'United Push' a committee of lawyers "heavily weighted in favor of big business" to recommend amendments to the antitrust laws. Myers reviewed briefly the provisions of the Keating Bill, which would provide a uniform limitation of the time in which to bring private antitrust actions for damages, and the Reed Bill, which would confer on Federal district judges discretionary power as to the amount of damages to be awarded in such cases, in place of mandatory treble damages now provided. In asking the board what it wanted him to do in regard to both bills, the general counsel said he would expect the directors to favor the Keating Bill and oppose the Reed Bill. Recalls 'Trust' Decisions Myers also reviewed recent U. S. Supreme Court decisions in the Crest and Adelman cases. The Small Business Committee hearings were described as a "fiasco" by Myers who claimed that the committee took no notice of the conclusive proof of pricefixing introduced into the record. Conceding that 20th CenturyFox advanced panoramic projection to a high state of excellence and that its development of the anamorphic lens was a notable contribution to the motion picture art, Myers said that Fox's attempt to dominate the business by its insistence on combining lenses, screens and screens and stereophonic sound "has caused the trouble." Myers summed up the controversy as follows : "There can be no legitimate criticism of any exhibitor for installing stereophonic sound if he can afford it and feels that it will enhance the entertainment offered his patrons. Our efforts have been directed against the policy of one company, which may develop into a conspiracy with others, to force exhibitors to install equipment and otherwise operate their theatres as directed by the film companies." Look What Happened In Just 12 Months CINCINNATI, Feb. 4.— The speed with which industry innovations developed in the last 12 months is recalled by Abram F. Myers, Allied general counsel, in his annual report to the board of directors in session here. He reminded the directors that in his report last year there was no mention of Cinerama, CinemaScope, 3-D, wide screens or stereophonic sound. Those developments occupy a large part of this year's report.