Motion Picture Herald (Mar-Apr 1940)

38 MOTION PICTURE HERALD April 6 , 1940 NEW EXHIBITORS COUNCIL OPENS FIRE ON BRITISH FILM RENTALS Circuits Join Independents in Preparing National Campaign; Call Percentages High; Imports from U. S. Drop by AUBREY FLANAGAN in London Reflecting the warlike spirit of the times, the new General Council of the Cinematograph Exhibitors Association have lost no time in going to war themselves. With the first meeting of their new official year they have set forth to battle in the cause of film hire. Demand Lower Rentals They held their initial meeting the morning after they were voted into office, and made it their first and determined purpose to set about a new campaign for the reduction of film rentals. Decision was taken there and then to organize a national campaign, and a committee instructed to devise ways and means of going about it, to guide local branches of the Association in the appropriate course of action, and to have a cut and dried plan ready this month. The determined urgency of the matter was reflected, too, in the new president's declared readiness, if necessary, to call a special meeting of the General Council. The new campaign, which has the complete support of both circuits and independents in the -exhibitor group, is a symptom of a condition and a potential means to cure it. Discontent, notably among the independents, with the conditions of film hire, particularly its level, was rife before the present war broke out. In the main the privileged booking position of the ■circuits was an aggrevation to the independent's trading with the distributor. Now, with the economic problem of survival made more acute by wartime conditions, with the product shortage consistently becoming more intense, the exhibitor state of mind, and finance, has sharply impelled a joint and comprehensive instinct to action. Campaign Proposals Vary Just what form the campaign will take remains to be decided. There exists a wide feeling in favor of the abolition of sharing terms and the reinstitution exclusively of flat rentals, though such a development is considered unlikely. Boycott of offending distributors has been suggested. Another champion of exhibitor freedom has put forward the idea that with Government aid the film as a commodity should be brought within the scope of the Anti-Profiteering Act. Whatever be the lines of the campaign, whatever its details, there would seem to be every indication even at this early stage that it may take on the embittered flavor of the anti-grading campaign, a campaign which revealed considerable tenacity on the part of exhibitors, which was spiced with acerbity and acrimony, and ended with the exhibitors victorious. High Percentages Protested Present moods, too, would suggest that efforts may well be made, if considered necessary, to call in Government aid. A certain cockiness marks the current political operations of -the British picture house operator. His relations with the Government, not impossibly because conciliation frequently goes hand in hand vvith his demands, are not uncordial. It is contended that film prices are not only QUOTA CONTINUES ANOTHER YEAR With the adjournment of Parliament last week for a long holiday, until late this month, the British film quota is continuing into the next quota year which began last Monday, April 1st. At the start of the war last September, it was decided to continue the present quota for six months from October 1, and then to take action if such were needed. Financial circles have indicated that the Government is closely studying the plan for a Films Credit Bank, and that a similar study is underway by the Bank of England, but no Government announcement is expected before the fall. Practically all American companies are ahead of their quota requirements for the current quota year. too high but far too high for the quality of the films offered on the market at present. Abe Freedman, chairman of the London Branch, to whom went the privilege of moving the initial resolution calling for the new campaign, said that in the next few weeks only 22 films would be released, nearly all of them at 50-50 sharing terms rental. Mr. Freedman foresees terms going up to 60 and 70 per cent if action is not taken here and now. Such terms, called high enough for first-run product, operate most unjustly with later run films, exhibitors hold. The view obtains that a second or third-run film virtually has become second-hand, and should be offered at a secondhand price, certainly not at that demanded for first release. Imports from U. S. Decline How acutely the film hire situation is enwrapped with the product shortage has been forcibly pleaded already by more than one champion of the new crusade. It is believed and suggested by the CEA that there is a disparity between the totals of films released in the United States and those registered here. Indeed, a documented appeal has been made to the Board of Trade for an investigation into the falling off in foreign film registrations. It is, for instance, pointed out that in the United States there were 567 films released in 1937, a total of 550 in 1938, and 535 in 1939. Against this, CEA protestations point out, with oblique indications of its significance, that registrations on this side of the Atlantic have retrogressively decreased. In a year's trading, that of 193839, a grand total of 498 was registered. For the ten months from April, 1938, to February, 1939, the total was 364. The same ten months of the 1939-40 trade year found a total of only 279. The inferences of this statistical analysis are obvious. Though these figures are tied up with the CEA's Quota case, crusaders in the cause of lower film rentals say they color the latter too. At present the demand is uppermost that the large American companies be called upon to honor their promise not to restrict film imports to Britain. At a later stage it is likely to be tied up with the general question of film hire. On both aspects the foreign distributors here will have a ready and reasonable reply. Meanwhile they resent suggestions of unfairness or dishonesty, are in fact becoming a little tired of a succession of flank attacks on varying grounds. Sudden intensification of hostilities on the wider field, mass bombings or other phenomena of modern civilized warfare on the European model, may, of course, put a halt to any lesser battle. But there is a glint on the axes in the exhibitor armory just now. Associated Nets $17,800 A net profit for the last financial year of about $17,800 is reported by Associated Talking Pictures, parent company for the Ealing studios and producers of the George Formby films. Pasternak of "U" Meets Exhibitors Universal will not make the "super," the "multi-million dollar pictures" ; it will be content to "make the 25, 40 and 50 cent kind for the millions who want them," Joseph Pasternak, Universal producer, told 100 New York theatre operators, Universal home office officials and representatives of the motion picture trade press, at a luncheon in his honor last Thursday at the Hotel Astor. Mr. Pasternak, praised for his record of seven consecutive "hit" pictures with the same star, Deanna Durbin, responded with an appreciation of exhibitor support, and said Universal would better its record if it continued to receive that support. William A. Scully, sales manager and vice-president of the company, introduced Mr. Pasternak. Among those attending were John J. O'Connor, Fred Meyers, Max Fellerman and Harry Mandel, of RKO theatres; Terry Ramsaye, editor of the Motion Picture Herald; Oscar Doob and Eugene Picker, of the Loew circuit; George Skouras, John Benas, William White, William Powers, Milton Hossfeld, and Edward Zabel, of the Skouras theatres ; Clayton Bond, Ed Hinchy, Leonard Schlesinger, Don Jacocks, Harry Goldberg and I. J. Hoffman, of the Warner circuit; Fred Schwartz, Sam Goodman, and Albert Hovell, of the Century circuit. Leo Justin and Morris Jacks represented Walter Reade Theatres ; William P. Phillips, United Artists Theatres; Joseph M. Seider, Prudential Circuit; Arthur Mayer, Rialto; Leo Brecher, Plaza ; Joe Philipson, Paramount Theatres ; Sam Rinzler, Irving Kaplan and Manny Frisch, Randforce, and J. J. Thompson, Cocalis Theatres. Present also were Si Fabian, Harry Brandt, Jack Hattem, Harry Katz and Harold Eskin. Universal executives, besides William A. Scully, included Nate J. Blumberg, president ; J. Cheever Cowdin, board chairman ; Charles D. Prutzman, Joseph Seidelman, William J. Heineman, Peyton Gibson, F. T. Murray, J. J. Jordan, Leo Abrams, Louis Pollock, Hank Linet, Morris Alin, Artdy Sharick and Fortunat Baronat.