Motion Picture Herald (Mar-Apr 1945)

OPA WANTS FILM CEILING! BUT CONGRESS IS COOL Bowles Recommends Control of Prices and Rentals; Cites 38V2% Increase Chester Bowles, chief of the Office of Price Administration, who up to this point in the war has been concerned with the cost to the consumer of such necessities as steak and soap, this week turned his attention to the motion picture. Tuesday afternoon, in Washington, he announced that the OPA recommended : 1. A ceiling on prices of admission to theatres. * 2. Control of the distributors film rental prices. Mr. Bowles' proposed action requires Congressional action. The recommendation for an admission price ceiling was made in a letter to Senator Robert F. Wagner, chairman of the Senate Banking Committee, which is now considering legislation to extend the life of the Price Control Act beyond June 30, its expiration date. The present act specifically exempts motion pictures, along with newspapers, magazines, books and radio, on the ground that freedom of the press would be invaded by control through licensing of these media of communication. Senator Wagner Voices Congress' Opinion Senator Wagner said Wednesday that Senate Banking Committee members are "generally of the opinion that they know of no reason for bringing movies and other amusement tickets under price control." Mr. Wagner's statement was said to reflect a general coolness in Congress toward Mr. Bowles' proposal to place amusement prices under OPA control. In the letter, made public at a press conference by Mr. Bowles, the OPA executive said that film admission prices had increased 38l/2 per cent, including the Federal tax, from June, 1941, to December, 1944. The increase, he said, had caused a rise of six tenths of one per cent in the cost-of-living index for the same period. The letter did not mention film rentals but Mr. Bowles told reporters at the conference that control of these fees would be necessary if a ceiling was placed on admission prices. His estimate of rental increases in the two and a half year period was "25 to 30 per cent." Says "Roll Back" Not Initial OPA Objective He explained that "rolling back" admission prices to the 1941 level was not the "initial objective" of the OPA. "We have just got to be sure that these prices don't go any higher," he said. He estimated that during 1944 the American public spent $1,500,000,000 on admissions to motion picture theatres. The best estimate available this week from industry statisticians was that the gross for 1944 was $1,200,000,000 and that admission prices had advanced between 15 and 20 per cent since 1941. "Public amusements constitute an important item in the average family's budget," the OPA director wrote to Senator Wagner. "From the standpoint of the cost of living, the largest item in this group is motion picture admissions, which have a weight of 1.7 per cent in the BLS (Bureau of Labor Statistics) cost of living index." Mr. Bowles expressed the view that the procedure of putting amusement changes under a form of price control would be "comparatively simple." "In the event that Congress decides that prices charged for motion picture theatres and other public amusements should be controlled," he added, "the task will probably not involve a substantial increase in the work load of the Office of Price Administration." He also urged the committee to consider price controls for barber shop and beauty parlor services, which, he estimated, advanced in price 29 and 40 per cent, respectively, from May, 1942 to November, 1944. Circuit Official Challenges OPA Figures On Increase At mid-week, circuit executives in New York declined to comment on Mr. Bowles' statement. An RKO circuit official however, challenged the OPA director's figures concering the increase in film theatre admissions, saying the 38.5 per cent "was not accurate." He explained that New York theatres, for example, had not increased prices by a very large percentage, adding that taxes accounted for most of the rise. "Of course, if the OPA puts a ceiling on (Continued from preceding page) of 65 independent theatres, this organization plans to open offices in New York on April 1, 1945. Associated Theatres of New Jersey — Jack Meltzer. Each of the 22 theatres which are members are reported to pay four per cent of the weekly film cost, with a minimum of $8 weekly as fees. Brandt Theatres — Joseph Ingber, booker and buyer. The fee reportedly varies from $5 to $40 weekly, depending on the type of house and business that the 31 members possess. Island Theatres — Jules Liggett. Fees, which are said to be as low as $5 and as high as $25 weekly, apply in this membership of 22 theatres. NEW ORLEANS Theatre Service Corp. — E. V. Richards, head of the Paramount-Richards Theatres. The buying arrangement of the 117 theatres is said to be on the basis of 10 per cent of film rentals paid by the exhibitor. Film Service Corporation — L. C. Montgomery and J. N. Houck. With 49 members, it services theatres in Louisiana. NEW YORK Brandt Theatres — Joseph Ingber. With a membership of 77 theatres, approximately 55 independent theatres are booked by the Brandt circuit. Fees are said to be from $5 per week upward. Century Circuit, Inc.— Sam Goodman. Handling contracts for the five Charles Moses Theatres, of which four are operating. Stiefel Booking Office — Samuel Stiefel, admissions," he remarked, "we are ready abide by it." While the motion picture industry was ca tiously inarticulate, representatives of the spea ing stage in New York were voluble. Billy Rose, producer of lavish spectacles, sj the proposal "was aimed at producing the ill sion of activity. Mr. Bowles should conce himself with cause as well as effect. ... In t legitimate theatre cost of production has go up . . . 100 per cent." Michael Todd, busy producer of "Up in Ce' tral Park," suggested a ceiling on taxes f theatres and said "Mr. Bowles would have become a drama critic in order properly evaluate a show." Brock Pemberton viewed the proposal unreasonable. Ned Irish, acting president of Madisi Square Garden said admission prices at t Garden had increased less than ten per cer exclusive of taxes. Ritz Theatre in New York Bought by Simon Bros. The Ritz theatre, on West 48th Street nei Broadway, New York, which is occupied und lease by Station WJZ, has been sold by the heii of the late Hattie Hill to Simon Brothers. Tl 865-seat house, built in 1925 is assessed at $340,0( of which $210,000 is land value, and was acquire free and clear of mortgage. who books and buys for 10 theatres. Fees ai said to range from $12.50 to $30 per theatr Cinema Circuit Corporation — Lou Fischler. Of the 11 theatres, two are not own* by the Cinema Circuit. OMAHA Oscar Hanson — Owning an interest three of the 31 theatres for which he boo and buys, Mr. Hanson reportedly charges weekly fee ranging from $10 to $21.50. PHILADELPHIA Affiliated Theatres Circuit, Inc. — Dav M. Milgram, who owns 13 of the 23 theatres fc which he books and buys. Fee is figured ac cording to the film rental. PITTSBURGH Cooperative Theatre Service — Bei Stearn, booking and buying for 67 theatres. Pennsylvania Enterprises, Inc. — Brya D. Stoner, buyer ; George Purcell, booker, an James Alexander, business manager. Nun" ber of theatres not revealed. ST. LOUIS Jack Harris Booking Agency — Jack Hal ris, booking and buying for nine theatres. WASHINGTON Affiliated Theatres Circuit — Nat Mi] gram, who buys from his Philadelphia offic for only one house in the Washington area. Exhibitors Washington Representativ — Joseph B. Walsh, booking for 12 theatres i the District of Columbia area. 1,263 Houses Served by Combines 14 MOTION PICTURE HERALD, MARCH 17, 194