Motion Picture Daily (Jul-Sep 1956)

Motion Picture Daily Monday, July 30, SSBC's Report Urges Admissions Tax Reli^ Recommends Financial Aid For Exhibitors ( Continued from page 1 ) TOA's conduct in backing out of the arbitration agreement. The committee flatly opposed-and called on the Justice Department to reject— the Allied-TOA proposal that divorced circuits be given the right to enter into production. It argued this would be unfair to the major film companies which cannot own theatres. The committee rejected Allied's demand for Federal regulation of film rentals, holding that the U. S. economic system requires the industry to work this problem out itself. Also turned down was the suggestion of the Southern California Theatre Owners Association that a Federal Fair Trade Practices Commission be set up to enforce rules of fair competition in the industry. The legality of special handling of pictures and extended runs was specifically asserted by the Senate report. The report also rejected Allied charges that the Justice Department had been derelict in enforcing the Paramount consent decrees. The Senators said the Department seemed to be trying its best to be fair to both sides. Throughout the report, the language was generally more critical of the exhibitors than of the distributors. The report certainly indicated that the hearings sought by tire exhibitors had boomeranged. There were, however, some nods by the committee in the direction of the theatre owners. The report urged the industry to study ways to limit the use of competitive bidding, which the Senators said frequently drove rentals up. While defending the legality of special handling of pictures, it suggested that any arbitration system include arbitration not only of clearance but of availability— the distributor's right to hold pictures off a market for a certain period of time. Standardization Suggested The film companies were urged to continue to make all pictures available in standard print sizes as well as in any new process sizes. The Justice Department was told to give ample public notice of any attempts by divorced circuits to acquire additional theatres. The Committee cited the need for MPAA Committee Hails SSBC Report for 'Agreement with Distribution Views' The distributors committee of the MPAA yesterday declared "it is a source of satisfaction to us that the Senate Small Business Committee has seen fit to agree with the views expressed by distribution at the hearings." The MPAA committee, which also took pleasure in noting that the Senate group recommended that the industry try to solve its problems internally through cooperation, regarded the rejection of film rental arbitration and the barring of Federal controls as a major victory. The MPAA group also expressed satisfaction with the Senate committee's refusal to establish a fair trade practice commission under the FTC and its unwillingness to permit a discriminatory system of production by theatre circuits. Meanwhile, distribution's sales managers, top circuit exhibitors and industry attorneys declined to comment on the 91-page report pending a detailed study of the Congressional findings. However, a few of the sales heads, when told of the main points of the Humphrey committee report, said "that is wonderful." William J. Heineman, United Artists vice-president in charge of distribution, said that, "the committee had intelligently and thoughtfully studied the industry problems and have presented a realistic analysis of them." Myron N. Blank, president of Theare Owners of America, declined to comment. He said that he will study the SSBC report before making an official answer. Abram F. Myers, board chairman and general counsel for Allied States Association, was "unavailable" for comment. His Washington office reported him as "out of town." admissions tax relief, and recommended that the Small Business Administration consider granting loans to theatre owners unable to borrow from private lending institutions. The industry was urged to consider the possibility that fast playoffs and saturation bookings might be hurting attendance. Decries Bickering Perhaps the committee's most pointed recommendation was this one, reflecting the distaste of some committee members for much of the testimony given the subcommittee this Spring: "The committee believes that many of the problems and disputes between distributors and exhibitors can be settled within the industry itself if the responsible leaders on both sides will put a stop to the constant fratricidal warfare which does nothing but worsen a difficult situation." An arbitration system dealing with clearance, runs, competitive bidding, forced sales and contract violations "would be a major step toward a more amicable atmosphere," the report continued. However, it said, "The committee does not believe arbitration of film rentals to be warranted." The arbitration draft prepared by in dustry members in 1955 would, in the committee's judgment, be of benefit to exhibitors and distributors alike. It regrets that after considerable time and effort in the preparation of this plan and arrival at a tentative agreement between distributors and the largest exhibitor organization (TOA), the negotiations failed at the last moment with the withdrawal of TOA. "Perhaps the arbitration draft did not contain all that exhibitors would have desired, but it was at least an effort in the right direction. If the situation is as serious as the committee was led to believe by exhibitors' complaints and testimony, then it is an absolute necessity that both sides be willing to compromise in order to settle their disputes." The committee report said the film industry, particularly small independent exhibitors, has been a conspicuous exception to the national prosperity in the last decade. It cited slumping attendance, falling box-office receipts, and fewer conventional theatres. "Admissions this year are running far below 1955," the report stated. "Unless business picks up soon, it will mean the poorest year since the depression days of the Thirties." The report said theatres on a consolidated basis have costs in excess of .their admissions income, and many exhibitors are surviving only because of refreshment profits. Circuits Seen Profitable The large circuits are making less than they used to, but are still profitable, the report said. It declared that the people the hardest hit are the small theatre operators. The report concluded that "the decrease in theatre attendance and the changing pattern in movie-going SUPERSCOPE STANDARDIZES THE WIDE SCREEN Pleads for Ed To 'Fratricide Industry Strii have been primarily caused by*y parallel growth of television and;? drive-in movies." The committee reviewed the ' tory of the Paramount case, and there was no doubt the Governm victory "resulted in opening up a ti j ly controlled industry which has J criminated against independent i atre owners." It cited advantages ; independent exhibitor today enjojj a result of the Paramount case, noted that some exhibitors feel product shortages and high rei today are also the result of this ceeding. The committee conclude was impossible to determine accvu ly the economic effects of the P mount judgment because televi came into prominence at the s>j time. Treats TOA Withdrawal "For this reason," the report su "the committee discounts the con] tions made that if it were not for "interference of the courts, the si independent theatre owners woulc much better off today." The oomj tee reviewed the history of the arbi tion negotiations in 1955, TOA's v» drawal following the agreement ^ Allied, and the distributor charges { TOA's action was a "deliberate shameless betrayal." "Without attempting to judge s motives of any of the parties, the a mittee must state it regrets the w drawal of TOA, as it feels very stro ly this plan would have been an portant step towards alleviating m» of the problems which are plagu,: j the industry and creating animo between distributors and exhibito ' , the report stated. "The committee does feel that !l distributors have legitimate groui for complaint so far as the action I TOA is concerned," the report si^ "In reviewing the many months f work and effort which went into c ation of the plan and the appar! success of such efforts in 1955, t j sudden turn of events is cause i i genuine disappointment." On the arbitration of film rent, the committee said: "The right of a seller to determ' the price at which he will sell i goods is basic to our economic sr tern, and it is only in the case of (Continued on page 5) i»99 9CREEN ASPECT RATIO WITH OPTICAL SOUND ONLY SUPERSCOPE PROVIDES ANAMORPHIC RELEASE PRINTS FROM STANDARD "FLAT" NEGATIVES PRINTS BY TECHNICOLOR OR IN BLACK AND WHIT1 2:59 SCREEN ASPECT RATIO WITH MAGNETIC SOUN m