Motion Picture Daily (Oct-Dec 1954)

6 Motion Picture Daily Thursday, November 4, 1954 Lichtman Reports One Point Left For Agreement On Arbitration CHICAGO, Nov. 3.— Agreement "on everything but one point" on an arb.tration draft has been reached between distributors and Theatre Owners of America, according to Al Lichtman, 20th Century-Fox distribution director. Addressing the TOA convention here, Lichtman expressed assurance that "as soon as we are able to meet again, which we plan to do in the very near future, we will be able to resolve that one point too." Lichtman, who is chairman of the distributors' arbitration committee, did not identify the "one point" which remains unresolved. Wants 'A Fair Trial' Urging cooperation among all segments of the business, he called for support of the projected arbitration system, adding "at least let us give it a fair trial." Allied States, refusing to join any arbitration talks which do not include film rentals as an arbitrable item, has not participated with TOA and other exhibitor organizations in the current negotiations. Lichtman, speaking as cochairman of the Council of Motion Picture Organizations, called for continued support of the organization, commenting on its successful tax fight. "I urge all exhibitors not to abandon it just because there is no great major issue at this moment affecting their pocketbooks. You don't know what may arise tomorrow," he warned. Lichtman forecast that at the Nov. 15 COMPO executive committee meeting a number of ideas of "tremendous benefit to the entire industry" will be outlined. Referring to the decrease in Hollywood production, Lichtman contended that "there are fewer pictures being made today because major producers cannot afford to make a picture just for the sake of making numbers." The 20th-Fox executive voiced his conviction that production, as well as exhibition today, cannot afford to compromise with quality. It is this type of conviction, he held, which has put the industry on the road to recovery, mentioning such factors as CinemaScope, stereophonic sound, Cinerama, new techniques, better pictures, factors, he declared, which have met the competition of television. Predicts Improvements He forecast that next year there will be "startling improvements" in the CinemaScope medium, with no change needed in exhibitor equipment. In conclusion, Lichtman, outlining the many points in his address, declared that there can be no healthy production business without a healthy exhibition and that "above all, we must create a code of ethics in dealing with one another that is of the highest standard." Lichtman also urged TOA to avoid "going to the government" with trade practice grievances, recommending that further efforts be made to arrive at understandings in conference with Combat Toll TV with Eidophor : Lichtman CHICAGO, Nov. 3. — Eidophor was held to be "the sure way" to combat toll TV as well as home television by Al Lichtman, 20th Century-Fox distribution director, in his address before the Theatre Owners of America's convention here. Eidophor, 20th-Fox's color theatre TV system, "will be a certainty within the near future, but it will not be launched until it is perfected and a proper programming of outstanding supplementary attractions to your feature films will be made a certainty," Lichtman promised. Offers Plan to End Seasonal *Gap' A plan aimed at avoiding the "horrible gap" of quality picture releases between the Thanksgiving and Christmas holiday season, was offered here this week by Edward L. Hyman, vicepresident of American BroadcastingParamount Theatres. Based on distribution-exhibition cooperation, the plan calls upon the exhibitor "to underwrite the film rental for the picture he wants, provided of course that it is a quality picture with legs' indicating a good box-office potential." Arguing for the ready adoption of the plan, Hyman said "the exhibitor should not ask the distributor to take all the gamble in releasing his picture during the period between Thanksgiving and Christmas. On the other nand," Hyman continued, "the distributor who goes along with such a proposal is bound to catch his competitors flatfooted. . . ." RKO Theatres Net Up to $755,033 Consolidated net income of RKO Theatres for the third quarter of 1954 was $755,033 as compared with $370,728 for the third quarter of 1953, the company announced. The financial statement said the net profit had been reduced to $720,984 after deduction of special items, including a loss from disposal of a theatre property amounting to $41,048, resulting in the reduction of federal income taxes of $7,000, which otherwise would have been payable on net income. There were no special items in the 1953 period by comparison, the report said. Net income before deduction for special items for the first nine months of 1954 was $1,710,150 as compared with $739,282 for the first nine months of 1953. After deduction of special items the net income was $1,625,009 for the 1954 period as compared with a net income of $788,331 in 1953. company executives. "Don't call a cop," he counselled. The TOA convention, however, as reported yesterday, approved a proposal to go to the Department of Justice to ask it to review all decrees in the Paramount case for the benefit of exhibitors and to obtain authorization for divorced circuits to engage in or finance production. TOA Rejects Bid on Federal Regulation By Staff Correspondent CHICAGO, Nov. 3.— Although it approved a proposal of its own to "go to the government" for consent decree review and authorization for divorced circuits to engage in film production, Theatre Owners of America emphatically declined the Allied States' invitation to join it in seeking Federal regulation of distribution in the event trade reforms are not in evidence by next February. TOA's response, made by Mitchell Wolfson, co-chairman of the organization's finance committee, said in part : "We are very much opposed to Alregulation of film rentals. "Their plan speaks of regulation but invites regimentation. I have read Abram Myers' bill and it gives me the shivers. "The making of more pictures must be encouraged by exhibitors. For this eason, there must remain hope of gain if we are to hope that there will re.nain those willing to risk making pictures of unusual box office value. "As exhibitors, we should continue a united fight for fair prices and policies, but we should not seek the help of professional politicians who owe no allegiance of heart and may well become guests who will eat more than we can place on the table." Clink Appointed to New Perspecta Post Jack Clink, associated with Prospecta Sound for the past two months supervising equipment installation and motion picture recording and disc recording, has been appointed chief engineer and recording supervisor of Perspecta and Fine Sound, Inc., by Elmer Wilschke, operation vice-president. Clink started as a sound man with M-G-M studios in 1934. He spent five years there until his entry into the Army in 1939 to organize one of the first motion picture units of the Army Signal Corps. In 1948 he joined the Jarville Studio in St. Louis, working on documentaries and initial magnetic tape recordings. Wenzel, Stevens To TESMA Board CHICAGO, Nov. 3. — Two new members, Fred Wenzel of Wenzel Projector Corp., and M. H. Stevens of Bausch and Lomb Optical Co., were elected to the board of directors of Theatre Equipment and Supply Manufacturers Association at the convention here. TESMA also reelected the following to the board : V. J. Nolan, National Carbon Co. ; J. F. O'Brien, Radio Corporation of America ; and Erwin Wagner of Wagner Sign Service. Only five TESMA board positions were involved in elections this year. Correction Newpaths, Inc., a subsidiary of Altec Service Corp., is manufacturing Perspecta Sound integrators under license from Perspecta Sound, Inc. The licensee was incorrectly referred to as New Parts, Inc. (Altec Lansing) in the Oct. 27 issue of Motion Picture Daily. New Congress {Continued from page 1) Administration asks Congress again to prevent that rate from dropping to 47 per cent as it's scheduled to do next April 1. The Democrats on the Ways and Means committee are also likely to give a friendly reception to the President's recommendations for reduction of international trade barriers, a move backed by most industry leaders. Republican committee chairman Reed (R., N.Y.) has been a staunch opponent of the free trade program. Celler Heads Committee Rep. Celler of New York and Rep. Priest of Tennessee will head the House Judiciary and Commerce committees, respectively. One or the other of these two committees would handle Allied States' bill for Federal regulation of the film industry should it ever be introduced. In private life Celler is a member of the New York law firm which represents Independent Theatre Owners Association of N. Y. Celler told Motion Picture Daily he would press for action on bills to boost the fine for violating the anti-trust laws and to set up a uniform Federal statute of limitations for private anti-trust suits. The latter has been a major battle ground between exhibitors and distributors for some years. Rep. Patman (D., Tex.) will head the fiouse Small Business committee, and can be counted on to provide a vigorous program of investigation for that group. Ranking member of the House Commerce committee will be Rep. Harris (D., Ark.) and chances now seem good for a renewal of the investigation he led some years ago into television program contents. Walter in New Post Rep. Walter of Pennsylvania, on frequent occasions very friendly to the film industry and laudatory of its antiCommunist efforts, will head the House Un-American Activities committee. Control of the Senate now seems likely to remain Republican, though that definitely may not be known for many weeks. Should the Senate remain in GOP hands. Sen. Millikin of Colorado would be head of the Senate Finance committee, which handles taxes and foreign trade ; Sen. Langer of North Dakota would remain head of the Judiciary committee and SenBricker of Ohio would stay head of the Commerce committee. Sen. Schoeppel of Kansas, reelected Tuesday, would probably stay as head of the Small Business sub-committee checking on industry trade practices. Bricker's continuation in the Commerce committee post would mean steady emphasis on that committee's attempt to prove the need for Federal regulation of television networks. Four Democrats in Running If the Senate should pass into Democratic hands. Sen. Byrd of Virginia would probably head the Finance committee, Sen. Kilgore of West Virginia the Judiciary committee, Sen. Magnuson of Washington the Commerce committee, and Sen. Sparkman of Alabama the Small Business committee. It is believed that few policy changes would result from these switches except that Sen. Byrd would probably be more pro-free-trade than Sen. Millikin.