The Exhibitor (1965)

UA Acts Against Blind Bidding Allied’s Armstrong Protests Accessories Rate Boost DETROIT — Jack Armstrong, president of Allied Theatre Owners, sent the following letter to Burton E. Robbins, president of Na¬ tional Screen Service Corporation: “The Allied regional associations and the national office are receiving a rising tide of resentment and protest from exhibitors to the substantial price increase on standard accessories which you announced would be effective on May 2. “I have been directed to bring this protest to your personal attention and to inform you that any payments made by our exhiibtor members at the increased rates are made under protest. Because of the monopoly which your company holds in the field of motion picture advertising accessories, the¬ atre owners in the United States are being forced to submit to increases under the threat of being deprived of advertising materials essential to their business. Payments received by your company under this proposed new rate schedule are therefore not to be con¬ strued in any manner as being an acceptance of these rates by those being forced to pay. “A committeee of exhibitors representing the Allied membership wishes to meet with you.” Armstrong also requested a personal meet¬ ing with Robbins during his visit to New York last week. Cheltenham, Pa., Okays CATV PHILADELPHIA — Cheltenham Township Commissioners have passed an ordinance granting permission to the International Equity Corporation, Bala Cynwyd, to con¬ struct a community antenna system. The ordinance, to run for a period of 25 years, specifies that no additional poles for reception purposes will be erected in the township, and that the company must guar¬ antee color reception and be available where there are 50 or more houses per square mile. Th antenna system can not be used to bring pay tv into the area. The company must also guarantee that installation costs will not exceed $8.50 per home, and monthly charges must be between $4 and $4.95 for one tele¬ vision set, and no higher than $1.50 for each additional set. Cable outlets must be provided' in the township building, police stations, fire houses, and schools. Programs may be interrupted for broadcasts of police or civil defense alerts, snow alerts, and fire calls. Youngerman Joins 7-Arts PHILADELPHIA — Harry Goldstone, gen¬ eral sales manager for Seven Arts Pictures, announced the appointment of Emanuel Youngerman as district sales manager for the Philadelphia-PittsburghWashington ex¬ change area. Youngerman will make his headquarters in Philadelphia, where Seven Arts has just opened their sixth exchange office. Prior to joining Seven Arts, Youngerman operated his own distribution organization in the Phila¬ delphia area. He is an industry veteran of 18 years, having served with United Artists, RKO, and Lopert during that time. UA Theatres Keeps Rowley As Tex. Circuit Head NEW YORK — It was announced follow¬ ing a meeting of the board of United Artists Theatre Circuit, Inc., by Marshall Naify, president of the circuit, that ar¬ rangements had been concluded whereby John Rowley would continue as president of Rowley United Theatres, Inc. At the same board meeting, the man¬ agement by Rowley United of the Big Tex Theatres, which recently acquired the Phil Isley theatres, was approved. United Artists Theatre Circuit, Inc., has acquired 50 per cent of the stock of Big Tex. Glen Alden Reports Earnings NEW YORK — Albert A. List, chairman of the board of Glen Alden Corporation, report¬ ed first quarter 1965 income from operations of $1,753,000. After a nonoperating charge of $285,000, the net income for the quarter totaled $1,468,000. This represents 31 cents per share on 4,803,613 shares outstanding, with sales and revenues of $20,500,000. For the first quarter of 1964, excluding operations of a division disposed of at the end of 1964, the corporation reported operat¬ ing income of $1,504,000 and nonoperating income of $6,210,000 (primarily profit on sale of stock of American Hardware Corporation) for a total of $7,714,000 or $1.61 per share on 4,796,834 outstanding shares. Sales and rev¬ enues were $24,340,000. I TO A Hails UA Action; Urges Others To Follow NEW YORK — United Artists’ experimental policy announcement, that it will refrain from instituting blind bidding on any of its films to be released from September to Christmas, was warmly praised in a resolution passed unanimously at a membership meeting of the Independent Theatre Owners Association. The exhibitor organization urged other film companies to follow the lead of United Artists in order to bring about a termination of blind bidding. Distributors were cautioned in the resolution not to preempt playing time dur¬ ing this period and thereby destroy an effort on the part of one courageous company to act on its own initiative and show the way in eliminating this vicious and unfair practice. Harry Brandt, president of ITOA, said, “This action permits the other film companies to do what they say they would like to do were it not for fear of antitrust violations by reason of an industry-wide agreement. This is a statesmanlike action on the part of United Artists, and that company is to be applauded for its initiative. It has gone out on a limb and nobody should cut it off without think¬ ing of the future consequences to industry relations. “The most important part of the United Artists’ announcement,” Brandt added, “is its bid to exhibitors to discuss ways and means of eliminating the evils of the entire bidding procedure by intra-industry discussion. If that doesn’t happen in the near future, exhibition will have to look to the government for re¬ lief from the presently employed bidding machinery that is discriminatory, inequitable and illegal.” Velde Sets New Policy For Sept. To Christmas; Ask Exhib C ooperation For Experimental Period NEW YORK — James Velde, vice-president and general sales manager of United Artists Corporation, announced that “For pictures to be released from Sept. 1 through Christmas, United Artists would not request competitive bids before the film is available for screening in the exchange centers.” Velde stated “that many good business reasons from the standpoint of both the exhibitor and United Artists have made it advisable, on occasion, for the company to re¬ quest bids for pictures prior to a print being available for screening by exhibitors.” This, he has been counselled, was perfectly proper. “However,” the United Artists general sales manager continued, “because of the recent requests by certain exhibitors that distributors should cease requesting bids for pictures where no opportunity for screening has been given and, in spite of the many potential hardships that may inure to both United Artists and to the exhibitors, United Artists will experiment by refraining from offering for bid before screening the pictures to be released from September through Christmas. In the event in any area all exhibitors nor¬ mally afforded an opportunity of submitting bids advise the company that they wish an opportunity to bid on pictures even though they will not have had an opportunity to view the film, United Artists will accede to such a request. This policy does not cover pictures which are distributed on a roadshow basis. “Last summer the company requested bids for Christmas playing time for the phenom¬ enally successful picture, “Goldfinger,” the James Bond film, prior to receiving screen¬ ing prints. Normally, United Artists would request bids at this time for its 1965 Christ¬ mas release, “Thunderball,” the next James Bond picture, now being filmed in Nassau. However, in accordance with our experimen¬ tal policy, no bids will be requested on this film until we can invite exhibitors to see the film. “Whether this experiment will prove suc¬ cessful, so that it may be continued with¬ out harm to the company, will depend to a large extent upon the cooperation of the exhibitors and whether the exhibitors engage in full and open competition for our pic¬ tures. It may also depend upon whether other distributors take advantage of United Ar¬ tists’ postponement of bidding by pre-empting playing time with pictures which are offered for bidding prior to screening.” Velde concluded by adding: “If in any com¬ petitive bidding situations all of the exhibi¬ tors desire the elimination of bidding, the United Artists sales executives would be most receptive to discuss this matter to determine if another method of distribution, fair to all exhibitors and United Artists, could be es¬ tablished.” VELDE May 5, 1965 MOTION PICTURE EXHIBITOR 5