Motion Picture Daily (Oct-Dec 1954)

4 Motion Picture Daily Friday, October 15, 1954 DISTRIBUTION ATTACKS ALLIED'S PROPOSAL FOR GOV'T CONTROL Distribution executives here yesterday expressed resentment at Allied States Association's proposed "government intervention" bill, with one film company official labelling the move as a "reckless crusade." The film company executives, declining the use of their names for fear of "adding fuel to the fire," challenged the concept that a third party could determine how much a film is worth. The third party referred to would be the Federal Trade Commission, which, under the proposed bill now being considered at Allied's Milwaukee convention, would be made the arbiter of "fair and reasonable" film prices for theatres. A number of top distribution personnel could not be reached for comment, some attending the Allied convention and others out of town on other business. But those who could be reached reacted unanimously in condemnation, with one quoting what he called a slogan of an exhibitor : "One more victory on the part of Allied States and we will be out of business." Another distribution official asked, pointedly, whether it would be fair for the government to control the price of films to the retailing theatre and not, in turn, control the theatre's price to the public. He maintained that it would be easier for a governmental body to put a price tag on famous paintings of the past than to set a pricing policy for each individ ual picture in each situation. Getting angrier as he warmed up to the argument, he said that his production-distribution company would be happy to earn a six per cent profit, if that was the ceiling, on many of its releases. Further, he continued, if "we were insured a six per cent profit in the 'bad years' for our pictures, it would be more than we earned then." He also expressed disbelief that Congress would ever support such a measure as proposed by Allied general counsel Abram F. Myers. Hitting the whole concept of governmental control, another top distribution executive maintained that if the price is wrong for any commodity, including films, the manufacturer sufifers a loss in business. What about the contention that there are only a comparatively few film "manufacturers" in comparison to other industries and therefore the pricing situation is unique, he was asked. To this he replied that anyone who has the money and enterprise can enter the market and compete on film prices to theatres. In fact, he added, there are a number of new companies cropping up, referring to Distribution Corp. of America and Makelim Productions. Controls (Continued from page 1) stage Allied is prepared to use the resolution with its provision for seeking Federal regulation of the industry as a bargaining weapon with distributors. The principal issues brought out at this convention which Allied would like to see discussed and acted upon are : dFilm terms which it regards as unreasonable. HA shortage of product. d Shortage of prints, with its resultant eft'ect upon availabilities and clearance. CfWhat Allied has termed "the right to make a profit." The resolution in favor of the move toward Federal regulation was carried by an overwhelming standing vote following exhortations by Allied leaders. Prior to that it had been carried by a voice vote without any discussion whatever. Obviously surprised and admittedly disappointed by this seeming lack of convention interest in the measure, several Allied leaders contended that the chair had not observed several persons who wanted to be heard on the resolution. Motion Made by Cole H. A. Cole, who had introduced the resolution, then moved for its reconsideration and discussion was begun by Irving Dollinger of New Jersey Allied. Subsequent speeches on behalf of the resolution were made by Trueman Rembusch, Allied of Indiana ; Beverly Miller, Kansas Missouri Allied ; Horace Adams, Ohio Allied ; Al Myrick, Iowa-Nebraska Allied, and Benjamin Berger, North Central Allied. The burden of all speeches was "We're thinking of the little fellow who is being forced out of business, not of ourselves, most of whom are doing all right. We have tried and have failed to get relief for those little fellows from the sales managers and their companies. Now we have no alternative but to go to the Government for relief. None of those in need can possibly be any worse off under Government control than they are now." There was almost no advocacy of the move for Government regulation by the rank and file, from the convention floor. Neither was there any vocal opposition to it by a rank and file member or anyone else, despite the fact that small exhibitors in private conversations with reporters had said they were opposed to Government regulation of any kind for any purpose. None of this feeling was translated into convention oratory. Cites Robinson-Patman Act One theatre attorney from Minneapolis urged that Allied seek Federal control of the industry regardless of whether or not complaints are corrected by distributors during the next three months "because of the experience you have had with distributors in the past." His suggestion was that films might be included in the Robinson-Patman Act. The Allied draft of Federal regulation provides for filing of theatre More Film Tax Relief Possible: Sen. Wiley MILWAUKEE, Oct. 14. — _ "A chance for improvement in the direction of further Federal tax relief for theatres"^ is seen by Sen. Alexander Wiley (R. Wis.), he told the AUied States convention here today. Wiley, an unscheduled speaker who accepted an invitation to address the convention following his arrival in this city today, described himself as a friend of the industry," not because I'm a politician looking for support, but because I believe the health of the nation depends upon the economic health of industries such as yours. Tells of Visit Abroad As chairman of the Senate Foreign Relations Committee, Wiley visited European leaders last month and related some of his reactions to those contacts. He believes, he said, that films promote an understanding of the American way of life abroad. Ben Marcus, Allied president, who had introduced Wiley to the convention, recommended at the conclusion of his talk that exhibitors everywhere should go to candidates who befriended the industry in the tax reduction and repeal campaigns and ask if there is anything the exhibitors can do in return for those who now are up for reelection. and film price classifications with the Federal Trade Commission. Complaints of mis-allocations by 25 or more exhibitors could bring about a hearing and a re-allocation by F.T.C. Details of the bill, which_ was prepared by Abram F. Myers, Allied chairman and general counsel, at the direction of the board, were published in Motion Picture Daily last Monday. Wilschke Expounds Perspecta Sound MILWAUKEE, Oct. 14. — Elmer Wilschke, executive vice-president of Perspecta-Sound, addressed the Allied States convention here today following a demonstration of the system earlier at the Riverside Theatre. The demonstration was attended by about SO exhibitors. Wilschke presided at a questionand-answer session at the convention for the benefit of those exhibitors who were unable to attend the demonstration. Breen Resigns {Continued from page 1) enced executive. His experience and thorough knowledge of the industry should serve him well in continuing the outstanding job done through the years by Joe Breen." The board's approval of Breen's request to relinquish active direction of the PCA was expected in trade circles, familiar with Breen's desire to slow down his activities. Breen, a native of Philadelphia and a newspaperman there, became active in Hollywood and, in 1941, was appointed general manager in charge of RKO studios. In 1942 he was chosen as director of PCA and the following year elected president of the Motion Picture Society for the Americas. He also held the post of vice-president of the Motion Picture Producers and Distributors of America, the predecessor to MPAA. Shurlock, who joined the Code staff in 1932 after serving in several posts with a major studio, has lived in this country since he was a child. A native of Liverpool, England, he was educated in California. In addition to the Breen resigna Clinics {Continued from page 1) plaints against each raised in all seven clinics. Highlights of the report follow : Twentieth Century-Fox complaints that communications between home office and branches on adoption of new policies sometimes are unduly delayed, with the result that the branch has no instructions to put into eflect such items as Al Lichtman's recent declaration that theatres grossing less than $1,000 weekly could buy CinemaScope Pictures on flat rental. (W. C. Gehring, 20th-Fox general sales manager, told the Allied convention here yesterday that steps to remedy that situation were being taken.) Credits Fox For Efforts Complaints that few small theatres have been able to install CinemaScope equipment because the high terms for the pictures does not leave them sufficient margin to liquidate the equipment and meet other costs. Fox, exhibitors reported in the clinics, appears to be working out availabilities better than other companies. M-G-M : Regarded in the clinics as "about the fairest company, except in towns of 2Q,000 and under, where complaints against allocations of pictures and difficulties in getting adjustments were registered. Also complaints of clearance and availability dislocations resulting from print shortages. Universal : Less adherence to national policies by this company than any other. Most complaints limited to Memphis, Des Moines and Omaha territories. Paramount : Numerous and widespread complaints against pricing policies with reports that on next three releases beginning with "Sabrina" a 25 per cent increase in flat rental scales and a 40 per cent floor on percentage deals will go into effect. Sees Drive-ins Hurt Warners : Complaints of difficulties in making deals and in getting adjustments, especially in the case of driveins. Buyers resistance to deals for Warner CinemaScope productions and for "Dragnet." Columbia : Numerous and widespread complaints of high prices. Many reported inability to make deals with Columbia at exhibitors level in some time. H. A. Cole, Allied director, recommended that copies of the clinic reports be sent to the sales managers of each of the companies covered. The clinics occupied a half of each of the three convention days and all were well attended. 'Widow' Here Oct. 27 "Black Widow," directed, produced and scenarized by Nunnally Johnson from a novel by Patrick Quentin, will make its New York debut at the Roxy Theatre on Oct. 27. tion, the board also considered the proposed hike in PCA fees to producers, it was learned, with Johnston reporting on studio reaction to the proposal. It was further learned that no decision by the board was taken on the proposal at this stage. Johnston, who recently returned from the Coast, left here for Washington last night.