Motion Picture Herald (May-Jun 1946)

See Australian Market Tighter For U. S. Films by CLIFF HOLT in Sydney Two important factors indicate that the American majors face a shrinking market in Australia. These are : 1. Expansion of the two largest circuits, Greater Union Theatres and Hoyts, and a corresponding reduction in the number of independently-operated houses. 2. Increased playing time for British product in key situations as a result of the Rank group's purchase of a partnership in Greater Union. Smaller circuits, once in opposition to Hoyts and Greater Union, formerly represented a lucrative outlet for American companies. But as control of these circuits passed to the larger circuits, returns from such sources were reduced. On a smaller scale, the same circumstance applied in the case of the independently-owned theatres. Spokesmen believe that the flattering prices paid by the two large companies for independent circuits and houses are made possible only by their ability to buy film on better terms. This adds up to this observation : The circuits are increasing their holdings partly at the expense of the distributors. Except in respect to film hire charges, there has never been any reason to believe that top-heavy circuits can operate theatres at lower expense than the independent owner. Their expectation of running new highpriced acquisitions profitably, then, can be based only on their film buying advantages. Independents argue that if distributors had sold them film on the same basis as it goes to the circuits, more of them still would be in business. Those remaining in the field contend that they eventually may be forced to sell also unless distributors content themselves with smaller returns, which are what they will get once the independent succumbs ' to the circuits' tempting ofiiers. Position Becomes Difficult The position for American companies thus becomes extremely difficult. Under normal conditions they might see a solution to the problem in building their own theatres. But the nation is so far behind in its home-building program that authority to build theatres and building materials is impossible to obtain. Furthermore, theatre licensing laws are now enforced in New South Wales and Queensland and not only American companies, but also Australian investors, would find it difficult to obtain a license to erect a theatre except in virgin territory. V From a wartime peak of 38,000,000, annual attendance at New Zealand theatres dropped to 35,500,000 during 1945. Film hire is down £28,000 from the precedmg year. MGM Latin American Area Managers to Meet June 3 Directors of all Latin American territories for Metro-Goldwyn-Mayer will meet in New York June 3 in the company's first post-war conference of foreign managers. After a week of conferences in New York they will go to the coast for an additional two weeks of discussion concerning Loew's expansion throughout South and Central America. Managers who will attend the meetings include: Elias Barberis, Chile; Stuart Dunlap, Argentina ; Dean Banker, Colombia ; Carlos E. Niebla, Mexico; W. L. Simpson, Panama, Luis A. Sarmiento, Peru; Adolph Wallfisch, Uruguay ; Eugene Coen, Puerto Rico ; Harry Bryman, home office; Carl Heumann, Venezuela, and Robert Schoham, Cuba. They will confer with Arthur M. Loew, president of Loew International ; Sam N. Burger, regional director for Latin America, and Richard Brenner, assistant regional director. Cuban Building In High Gear by CHARLES B. GARRETT in Havana The theatre building fever continues at high pitch throughout Cuba. In Havana, in addition to the first run houses to be built by MGM, Warners and Paramount, several new subsequent run theatres will be available to the film-minded public within a few weeks. The Metropolitan, owned by Federico Pinero, top comic of the Cuban radio and theatre, has been opened in a residential section near Havana. This week the cornerstone will be laid for the Alameda theatre, another pretentious second run near the city. Various other smaller houses will be ready early next year. Some 20 theatres are being built in key cities of the interior and in smaller situations as well. V Robert O. Schoham, newly-appointed manager for MGM in Cuba, has arrived in Havana from Puerto Rico, where he headed the MGM office for several years. He succeeds Harry Bryman, manager since 1942, who goes to New York as assistant coordinator for Great Britain. Associates Name Levy Welfare Chairman David Levy has been appointed chairman of the welfare committee of the Motion Picture Associates, Fred Schwartz, president, has announced. Others on the committee include: Maurey Miller, Charles Penzer, Harry Furst and Larry Morris. Mr. Schwartz has contacted all branch managers in the New York metropolitan area for the names of underprivileged children who will be sent to summer camp for a period of two weeks. A special sum of $10,000 has been set aside for this purpose. Mexican Labor Moves Against Subsequents by LUIS BECERRA CELIS in Mexico City The labor situation here is still unsettled. The National Cinematographic Industry Workers has launched what its enemies call an "offensive" against local subsequent and second run theatres by filing a demand with the Federal Board of Conciliation and Arbitration asking the local second run Cine Bravo pay its employees $1,275. The union claims this sum is due as back pay — as far back as 1940 — under the exhibitor's contract which, says the union, allows personnel a day off a week with pay or double time on the seventh day. The exhibitor denies this, but the union has threatened to strike. The union, in addition, has asked the Arbitration Board to order the Cine Bravo to pay its employees the same wage scale as that prevailing in the local first runs. Reports are that the union will make similar demands on other subsequent runs. V A strike is also threatening at the Estudios y Laboratorios Cinematograficos at San Angel unless the studio-laboratory grants its employees' demand for an 80 per cent wage increase and other concessions. V The industry has received much financial assistant from its own bank and others. The Banco Cinematografico during the first four, months of the year made loans, credits and discounts to the industry in the amount of $4,010,127. The Banco de la Industria Filmica has made loans totaling $79,563 in the same period. MGM Signs 1 6mm Contracts For Four More Countries The signing of first contracts in four coimtries for the exhibition of MGM 16mm films was announced Wednesday by Orton C. Hicks, head of the 16mm department of Loew's International, and Seymour Mayer, head of the 16mm sales promotion department. The countries are Philippines, Cuba, France and Panama. For some time now the company has been shipping 16mm programs to Argentina, Belgium, Brazil, Chile, Great Britain, Mexico, Portugal, Puerto Rico, South Africa and Venezuela. Canning Is Guest of Honor At Testimonial Dinner William S. Canning, of the Empire theatre in Fall River, Mass., was guest of honor at a testimonial dinner given last Thursday night in Fall River for his leadership during the various War and Victory Bond drives. More than 400 representatives of the film industry and social and civic organizations attended. MOTION PICTURE HERALD, JUNE I, 1946 29