Motion Picture Daily (Oct-Dec 1958)

Motion Picture Daily Thursday, October 23, 195 Gov't Decrees (Continued from page 1) partment of Justice and the courts, but you must show how conditions have changed with the passage of time. You must find a way to get across to the Department of Justice during the coming year diat it would be a disaster if exhibition is to be put out of business because of a scarcity of product." Kennedy pointed out how before the consent decrees the existence of long-term contracts were beneficial to exhibitors as well as die producers, and added. "Along came Mae West and some said block booking made it necessary for exhibitors to play pictures to which die public objectedthat was not exactly right but government got interested." The small exhibitor, Kennedy said, especially needs to be able to buy pictures in large groups. Cooper Asks 'Clarification' Cooper explained that he also was talking for exhibitors in smaller situations, as his theatres are in communities of from 1,800 to 25,000. He held that many of the problems of exhibitors such as shortage of pictures, shortage of prints, long runs and high rentals are due to consent decree conditions. He called for a clarification of some of the decree provisions. In conclusion he said diat there was a need for former affiliates to make pictures. Field called for what he termed "a Congress of exhibitor meetings in every exchange area to be attended by all exhibitors." The purpose of these meetings would be "to broaden the basis of direct participation by exhibitors and to create a climate of opinion in each exchange for forwarding to the proper authorities in Washington." Points to 'Career Men' Before introducing the last member of the panel Redstone again referred to his experiences, saying, "you can't sell short the views of the career men in the Department of Justice, many of the men in the anti-trust division have spent their entire lives fighting monopoly and discrimination. They have become crusaders. They believe it. These men look with some suspicion on what a former circuit affiliate says. We must know the will and need of the representatives views of every independent exhibitor in the United States. The independents need decree revisions even more than the circuits." Lightman concentrated on the problem of getting more pictures produced, saying, "If some circuits make pictures, others will, too. The more for QUALITY and SPEED T TRAIL"*5 Special TR*,W, [liiiii [M. P. DAILY pietm AS THE SHOW STARTED: Robert J. "Bob" O'Donnell asks exhibitors to venture, gamble, explore, embrace the new With him on the dais at the opening session: Ernest J. Carpenter, Nathan D. Golden, Samuel Pinanski, Ernest G. Stellings, TOA president George Kerasotes, Mitchell Wolfson, Albert Pickus. Skouras Has 14-Point Plan for Exhibitors 13,27 S. Wabash CHICAGO 5. lit. ( Continued from page 1 ) knew and realized the ultimate results of losing the great value of blockbooking. Yet you stood by and did not fight." "Most of you people," Skouras continued, "for reasons of your own, actually wanted divestiture and while you could not come out openly for it, you were willing to stand by while the little independent theatre owners —sincere but misguided— pressed for relief from the Department of Justice." Skouras predicted, "if the small exhibitor-in this ill-advised effort to improve his situation— succeeds in having additional regulations imposed upon the film companies, this may result in such onerous restrictions that our studios will be forced to close and the producing companies will face liquidation." To show the extent of highly paid personnel Skouras gave figures for 20th-Fox: 200 persons paid over $50,000 annually; 75 over $75,000; 100 pictures we can get the more chance we will have to survive." In the period from 1930, to 1935, Lightman said, Paramount would have gone under without the earnings from the theatres; likewise RKO Theatres earnings at one point kept that company going. "We should do everything possible to see that these circuits make pictures and get the producers the right to own showcase houses around the country. Let them have 10, 15, 30 or 40 theatres— we in this room have plenty of theatres we would like to sell— we'll be glad to see diem in exhibition," he declared. On the subject of block booking Lightman said, "It was the saddest day in the history of motion picture exhibition when they took away block booking. The old 5/5/5 contract carried a liberal cancellation clause. We did not have to book all the pictures." over $150,000; 25 over $250,000 and at least 10 who get $500,000 or more. These include those on contract or fee basis for one or more assignments as well as regular employees. Skouras concluded his talk with this suggested program: Government loans to theatres Revision of clearances Lower admission prices Decentralization of 1st runs Elimination of competitive bidding Elimination of single picture selling Development of new faces Production by exhibitors Exhibitors buy stock in film companies Theatre showcases for producers Establishment of a fan: arbitration system Full use of technical advances Roadshows at advanced prices for costly productions Keeping features off toll-TV for years. Some sections of his talk were identical with those given at the Allied Chicago convention, as Skouras reminded his listeners. These sections included Skouras' catalogue of the problems of exhibitor, distributor and producer and of the advertising department; also his glowing words on the importance of die motion picture in a community and before the world at large for the benefit of the United States Government. Skouras furnished some details on costs that were not in his Chicago talk. He cited one recent film deal in which each of two stars is to receive $800,000, plus a percentage participation; the director $250,000 plus a percentage and the producer his expenses plus 8V2 per cent plus $125,000 salary. He referred also to others in which a star has been guaranteed $500,000 EC 13 Mitchell Wolfso against 10 per cent of the gros Deploring what he called "a vo in leadership talent" Skouras sa tiiat about 4,000 persons within tl industry are paid in excess of $50,0( a year. This makes executives ai creative workers in all branches the industry the highest paid people in any industry anywhere. "Nevertheless," Skouras charged, "these highly paid executive and creative talents are frequently guilty of making very little effort to work toward the salvation of our industry. As a result there is litt initiative and virtually no leadersh exercised." On the question of exhibitor ow: ership of film company stock Skour said: "You should be on the boards directors of some of the companie You would have stopped the sellir of the backlogs to television. Cor panies were principally forced to ma> the sales by their stockholders ai directors." Introduced by Wolfson Skouras ended with an appeal encourage a new and a fighting ii dustry. We are on the threshold of golden age of entertainment— a n naissance of the motion picture. Oi problems can be solved with dete mination and organization." Mitchell Wolfson introduced Skoi ras, bailing "his leadership, indu triousness, integrity, manifold abilii and rigid adherence to fair play." After the talk Wolfson said th; Skouras would answer any questioi from the floor. There were none ■ j