Motion Picture Daily (Jul-Sep 1960)

Motion Picture Daily Monday, August 8, | BOOK MM ANTI-TRUST IN THE MOTION PICTURE INDUSTRY. Ry Michael Conant. University of California Press. 220 pages. $5.50. A fly leaf note informs readers of Michael Conant's "economic and legal analysis" of anti-trust litigation and practices in the motion picture industry that "The opinions expressed in this study are those of the author. The functions of the. Bureau of Business and Economic Research (of the University of California at Berkeley, under whose auspices this book was published) are confined to facilitating the prosecution of independent research by members of the faculty." Presumably, then, it is that area to which this book is addressed, and we venture to predict that any seriousminded faculty member intent upon pursuing independent research within the industry will not fail to remark some glaring differences between "die opinions expressed in this study" and the results of his independent research. For not only is this book remarkable for the number of its unsubstantiated and unwarranted statements and conclusions, but it reveals no evidence of direct contact on the author's part with the industry about which he is writing. Apparently, his nearest approach to it was a brief association with a Chicago law firm which had handled several exhibitor anti-trust cases following entry of the decrees in U. S. vs. Paramount et al. There is an abundance of quotation from opinionated and non-authoritative sources which is employed by the author in such a manner as to encourage die uninformed reader to accept it as fact, which in all too manv instances could prove most unprofitable. The merger of 20th Century Pictures widi Fox Film Corp. is made to occur prior to William Fox's sale of control to Harley L. Clarke, whereas, of course, Fox had departed from the company and the industry some four years before the 20th Century-Fox The author attributes the industry's Production Code to Father Daniel A. Lord, whereas the latter was a consultant to the Code's author, Martin Quigley. The Code is repeatedly referred to as an instrument of censorship, rather than of self-regulation, and Conant gives no evidence of being aware of the circumstances that brought it into being nor understanding of its purposes. To him, the Code is "one means bv which the larger firms controlled the content of films in an effort to control output," and its most "important effect. ... in limiting the supply of films was to restrict the production of pictures treating controversial issues." Conant not only has nothing to Voice Warning on Wage Bill ( Continued outlining the industry's stand, into the record. He pleaded for recognition of the film industry as unique. "The industry has not shared in the general prosperity of the country during the past few years. While the nation's gross national income has risen to the highest level in history, the gross income of the nation's theatres remains at the lowest level of the past 15 years. "Unlike most other industries, motion picture theatres cannot currently offset increased labor costs by raising prices, because, in so doing, they would suffer a further loss in attendance," Phillips said. Supported by Frisch Phillips was joined by Emanuel Frisch, treasurer of the Randforce Amusement Corp. In answer to questions from the committee, Frisch projected a possible immediate result of the new hourly minimum as it affects theatres. He said if wages of ushers, matrons and other unskilled workers were raised by as much as 35 per cent, skilled theatre employees, such as projectionists, would rightfully demand a commensurate increase. In this event, theatres would definitely shutter, Frisch said. Armed with facts and figures, Phillips insisted that theatre closings would have a serious economic effect on all neighborhood merchants. "Municipalities would lose taxes, real estate values would decline and business in general would suffer. That has been the experience of every com from page 1 ) munity which has experienced a theatre closing," he said. He said a recent survey— he did not name the organization which made the study— of 1,041 theatres, about the same number now operating in the state, showed that they employed 2,562 ushers, of which 1,673 were students, 62 were housewives, 321 had other employment, 22 were receiving social security and five were pensioners. Nearly one-half of that number had been employed less than six months. Onlv 154 women and 410 men in this category were over 21 years of age. Among the 2,562 ushers, 877 were employed less than 20 hours a week and 368 others less than 10 hours. 'Inconceivable," He Says Phillips also termed "inconceivable" the industrial commissioner's intention to require theatres to pay a minimum weekly wage of $90 to workers other than those covered by the hourly wage rate. Such employees, assistant managers mostly, should receive a minimum of $60, he said. The controversial Assembly Rules Committee bill, recommended by Gov. Rockefeller, passed by both legislative houses and signed by the Governor in April, extends the $1 hourly minimum wage to 700,000 additional workers. Among theatre workers covered are ushers, ramp attendants, children's matrons, messengers and other unclassified employees. The industry is free to request an amendment, through Compo, at the 1961 session of the legislature. substantiate such statements but also ignores, or did not take the trouble to uncover, the abundant evidence available to refute them. Distributors, we are sure, will be either startled or amused to learn why they granted adjustments to independent theatres. It was done, according to Conant, because "distributors, having arbitrarily assigned independent theatres to later runs, were desirous of keeping them from showing losses that might lead them to file anti-trust actions to challenge the distributors' system of control." And many will be nonplused to read the author's repeated assertions that the old Film Boards of Trade fixed clearances and runs. In his comments and conclusions on die Paramount case, the author makes an impressive argument that the government erred in including the "Little Three" as defendants. He appears to find divorcement and divestiture inadequate remedies. He suggests that "In the more distant future, when the watchdog jurisdiction of the district court ends, the continued formidable power of the circuits may again be felt in film markets." But he neglects to explain how or whv that might come about, or whether he means the present circuits or new ones which may arise "in the more distant future." New Camera Process } For 'Jack, Giant Killj' \ From THE DAILY Bureau 1 \ HOLLYWOOD, Aug. 7. scope, a new process of special t<%l photography, will be used for fh. jjj I time on Edward Small's $2,50 \ I Technicolor production for Ij m \ Artists release, "Jack the Giant K1 If i. it has been announced by the lo. ducer. Developed secretly over the 1(1 two years by Small in conjur tjg ! with the Howard A. Anderson ) which is handling special-effects Iq. ' tography on the picture, the B k scope process contains innov;L in color photography that it ;ut depth dimensions to model ai jj. j tion. The system also features a iE' process that integrates the uilof stop-action puppets with live aim eliminating the necessity of ft miniatures, and thereby lending $[ realism to action scenes. Small and U.A. executives pis an extensive advertising and exploit a campaign based on Fantascope \ % will be aimed at both exhibitor: nd the public when the picture is ft ror release early next year "The only sure, long-run remedy for monopoly power," he writes, "is dispersal of that power. The circuits should have been destroyed." Then Conant adds, presumably as an afterthought: "Even the dispersal of consolidated monopoly power in motion picture exhibition is insufficient. . . . The only way to prevent this was to have ordered, as a remedy in the Paramount case, all film to be offered in each run in each city at public auction bidding open to every theatre." Independent exhibitors, small and large, vociferously complaining for years about the incidence of competitive bidding, will no doubt find the author's suggestion that it be made compulsory somewhat naive. Yet another apparent weakness of the volume is that it fails to give an adequate appraisal of the new economic conditions affecting the industry and technological developments which may control its future. The author appears content to explain everything with court records and undocumented published reports. This volume would seem to demonstrate tiiat for an author, there is no substitute for personal knowledge of one's subject. Sherwin Kane Early Action Likely ( Continued from page 1 ) I will allow opponents of wage:!} liberalization to express thermS fully before a bill is passed. An extension of minimum m legislation that is broader thai lit hourly $1.15 pay floor, widi cov B of interstate retail chains, that! House intended to pass— but diiiol because of a technical error— is 9 to be enacted. Barring an unfor w change, the motion picture inc« will not be directly affected h]% measure; exhibition's exemption J continue. The only fair assumption bfl made is that Senator KennedviM press for enactment of the relaiB liberal bill pending before the I ate. As the Democratic nominedii desires will carry far greater wffl than they did prior to the CorS sional recess. Expect Pressure from Nixo Vice-president Nixon, the Rub lican nominee, is expected to 38 behind-the-scenes pressure on il bers of his party to go along wa bill that is more liberal tharilf House-passed measure. He ma g beyond the official Administijoi position on this issue. In any casjb is expected to urge the Preside; t sign whatever wage measure enuM The bill that passes the & 2t will undoubtedly be attenuated ;.th House. The vote that permitted]) House to adopt the bill it passed stead of the committee-app/« measure sponsored by Rep. FUS velt (D., Calif.)— was very close.fl thin margin by which it carri attributed to Roosevelt's statemei! o the House floor diat he woul? along with suggestions that addw al exemptions be written into th(j>il He will, in all likelihood, be hdj this statement.