Motion Picture Herald (1954)

on details of 20th-Fox sales policy for CinemaScope films. A. Montague, Columbia vice-president, wired that he was unable to attend the convention. In his wire he said, “There always is and probably always shall be a difference of opinion between exhibitors and distributors. I do not believe that ganging up or boycotting are proper practices in our industry. The door of my office is always open to discuss matters with exhibitors.” Ohio’s Horace Adams Urges Backing for Rental Bill Horace Adams, vice-president of Allied and president of the Independent Theatre Owners of Ohio, made a strong plea for the convention to back the film rental control bill. He said, “Do not go out of here with any half-baked compromise. Don’t go home without giving some ammunition to your leaders.” Mr. Adams and Irving Dollinger, president of Allied of New Jersey, criticized Columbia’s sales policy. Mr. Marcus read a wire from Roy Disney stating that stereophonic sound prints were to be made available first and then later optical and standard prints on the CinemaScope production “20,000 Leagues Under the Sea.” The convention passed unanimously a resolution instructing Mr. Marcus to wire Mr. Disney asking that optical sound prints be made available simultaneously with the stereophonic sound prints on the production. The convention was called to order Tuesday afternoon by S. J. Goldberg and after a brief welcome by Ben Marcus, president, and by the Mayor of Milwaukee, Mr. Myers made his keynote speech outlining the need for Government regulation. Later that afternoon the program of film clinics began and continued Wednesday morning. These were divided into seven sections, covering towns of 3,500 or less, towns of up to 20,000, towns of 20,000 to 100,000, large cities, key neighborhood and sub-runs, outdoor theatres and circuit buyers and bidding. Chairmen for the clinics were: Leo Wolcott, Joe Finneran, Irving Dollinger, Wilbur Snaper, Leon Back, Julius Gordon, and Sidney E. Samuelson. Thursday Night Banquet Brings Convention End 1 hursday there were a Perspecta sound demonstration, talks on Perspecta and on VistaVision, reports on the film clinics, and action by the delegates on the committee reports and resolutions. The Silver Anniversary banquet Thursday evening concluded the convention. Copies of the proposed regulatory bill, prepared by Mr. Myers, himself a former member of the Federal Trade Commission, were distributed to the delegates at the opening of the convention. It provides that all persons engaged in licensing films shall file with the Federal Trade Commission fair and reasonable classifications of films and theatres, together with “fair and reasonable film rentals for each classification,” and before licensing any ALLIED BOARD MAY SET UP EQUIPMENT COOPERATIVE Allied may go into the business of selling equipment and otherjsupplies. The idea was mulled by the board preceding the convention. Ben Marcus, president, refused to disclose what manufacturers were being approached. He did say he would “drop off” on his way to the Coast from Milwaukee, to discuss the matter with a manufacturer. (The Ballantyne Co., makers of sound heads, lamps and other projection equipment, is in Omaha.) If the negotiations proceed to a conclusion, Allied’s name would be put on equipment, which would be priced lower than competing items, Mr. Marcus promised. He added this would be because Allied regional units in this selling arrangement would be operating virtually on a “cooperative basis.” All exhibitors would be able to buy the equipment at such lower prices, he also promised. Much of the time of the board sessions was given to discussions of product supply and prices. Mr. Marcus said regional vicepresidents told him all units endorse national Allied’s “declaration of emergency.” This is the statement which asks Federal intervention. The board also reaffirmed its support of the Makelim Plan and any others which assure exhibitors more product. The board renewed its membership in COMPO, and Wilbur Snaper again will be its representative on COMPO’s governing body. Its winter meeting will be in St. Louis in conjunction with the national drive-in convention, the board decided. This will be February 7-10, at the Chase Hotel. The board elects its officers annually, at the winter meetings. The national convention next year will be in Chicago, in early October, at the Sherman Hotel. Dicture to a theatre shall first allocate it to a proper classification. If 25 or more exhibitors challenge the reasonableness of the film rental designated for any classification of pictures for any type of theatres, or the allocation of any picture to a particular price category, the Commission may serve a formal complaint on the producer or distributor involved. If the Commission concludes that the challenged pricing or allocation is unlawful, it shall issue an order specifying the reasonable film rental or allocation to be followed. If during the pendency of any ;uch proceeding the respondent continues to charge the challenged film rental or persists in the challenged allocation, and lower film rentals or allocations are ultimately prescribed by the Commission, the bill provides that exhibitors may sue for the difference between the prices paid and those prescribed, unless the money is voluntarily refunded. In addition to the provisions for securing fair and reasonable film rentals, the draft provides for cease and desist orders against certain trade practices enjoined in the Paramount case. These provisions, Mr. Myers says, “were drawn with a view to eliminating the glaring loopholes in the consent decrees.” Enforcement, he adds, “is lodged with the Federal Trade Commission to relieve the elderly Federal judges assigned to the case of the burden and the Anti-Trust Division of its unwelcome duty of enforcing the decrees by means of contempt proceedings. Mr. Myers notes that this may be the first attempt made in this country to provide price regulation “for so diverse a product as motion pictures.” Some of the Scandinavian countries, he points out, prohibit the charging of film rentals over a certain amount, but such “flat prohibition is not possible under our constitutional system.” The draft provides that where bidding for pictures is requested by an exhibitor the distributor is relieved of the prohibition against charging more than the maximum. Defined as unlawful trade practices in the proposed bill are : dictation of admission prices by a producer or distributor under any circumstances or means ; granting of clearance between theatres not in substantial competition ; burden of showing any clearance to be reasonable is placed upon Distributor, and prohibition against conditioning licensing of one picture on the licensing of another ; permitting block booking where a second theatre or theatres is not in the market for the product involved, and granting a 20 per cent rejection privilege in instances of such block booking when the pictures involved have not been trade shown. Names Factors Determining “Reasonableness” of Prices In determining reasonableness of a distributor’s price policy on a picture, the bill provides that the Commission may take into account average rentals or customary terms of the distributor for its several grades of pictures over the past 10 years; gross income and net profits of the producer-distributor for the past 10 years or less; average or customary rentals paid by complaining exhibitors for films of the class in question, and gross receipts and net profits of the complaining exhibitors for such periods and in such form as the Commission may require, including the percentage of gross receipts paid for film rentals during the period designated by the agency. The proposed measure also provides that ( Continued on following page) MOTION PICTURE HERALD, OCTOBER 16, 1954 13