Motion Picture Herald (1954)

EXHIBITORS TO r«. FIGHT FEE T Allied , 7YM /om in a J^asA: Force Aiming to Spike Subscription TV Guns It was apparent this week that exhibition was prepared to beat subscription television even before the new medium has a chance to get underway. Following an unpublicized meeting in Chicago Friday, Trueman T. Rembusch and Alfred Starr released a joint statement Monday announcing the formation of a joint exhibitors toll TV committee of which they are the newly elected co-chaimen. The war is on and led by a committee which the Rembusch-Starr statement declared represents "95 per cent of organized exhibition in the United States.” The announcement said the organization will not be limited to members of the motion picture industry, but that “all groups interested in preserving free home television for the American people would be invited to become members of the committee.” Industry observers in New York interpreted this as a call to such interested parties as existing theatre television interests, the free television networks, advertising agencies and all those community businesses which would stand to lose by the passing of motion picture theatres from the daily scene. In addition to Mr. Rembusch of Allied States Association and Mr. Starr of Theatre Owners of America, the Friday meeting in Chicago elected the following officers : Phillip Harling of the Metropolitan Motion Picture Theatres Association of New York, and James Arthur of Southern California Theatre Owners Association, to serve as treasurer and secretary, respectively. Abram F Myers, Allied general counsel ; Herman Levy, TO A general counsel; and Mr. Arthur and Mr. Harling were elected to serve the group as a legal advisory committee. Earlier Meeting in Chicago Others who attended the Friday meeting included : George Kerasotes, of TOA ; David and James Arthur, of SCTOA; Julius Gordon, president of East Texas Theatres, Inc., representing Texas TOA and the Texas Drive-in Theatres Association ; Sol Strausberg, of the MMPTA of New York; William Namenson, representing the Independent Theatre Owners Association of New York; George Gaughan, of Memphis, TOA field representative, and Ralph McClanahan, president of the Kentucky Association of Theatre Owners. This meeting followed by four weeks a “hush-hush” meeting in the same place, Chicago’s Blackstone Hotel, called by Allied and where, according to Monday’s statement, it was agreed to to form a joint TV toll committee. Action had to be deferred then, however, pending authorization by the respective organizations. It was added that such authorization was received prior to the latest Blackstone meeting. Industry observers in New York regarded as certain an anti-toll TV campaign among Congressmen which would rival in scope and thoroughness the Council of Motion Picture Organizations’ battle for relief from the Federal admissions tax. The campaign also would concentrate on the Federal Communications Commission and the Interstate Commerce Committee, whose members will have to authorize pay-as-you-see TV. It is expected that newspaper support will be rallied because of revenue the newspapers are in the way of losing if and when subscription television puts the majority of the motion picture theatres throughout the country out of business. Called “ Deluging Tactic ” The position of the Motion Picture Association of America in the coming battle probably will be that of interested but neutral observer. One MPAA member company, Paramount, is the majority stockholders in the International Telemeter Corporation, which developed one of three toll TV systems. The other two are Skiatron TV's Subscriber Vision and Zenith’s Phonevision. Commenting on exhibition's formal declaration of intent, Arthur Levey, president of the company which developed Subscriber Vision, the world rights for commercial development of which are held by Matthew Fox, said that the action was simply a “delaying tactic” and that pay TV with the FCC’s blessing was inevitable regardless of the opposition. Mr. Fox, who already has filed with the FCC for public hearings and the fixing of toll TV rules and regulations, found “very interesting” exhibition’s new role as the “champions of free television.” Acquires 3 Italian Films Carroll L. Puciato, president of Carroll Pictures, New York, has announced his firm’s acquisition of three Italian films for release in the United States. The titles, and the dates set for release, are: “Four Ways Out,” starring Gina Lollobrigida, November 1 : “Princess Cinderella,” a fairy tale, Christmas release, and “Children of the Madonna,” January. The first two have English dialogue dubbed in and the last one has English subtitles. Leonard H. Goldenson, president of American Broadcasting Paramount Theatres, Inc., reported Tuesday that the company’s estimated net operating profit after taxes for the third quarter of 1954 was 45 per cent ahead of the same period of 1953, or $1,373,000, as compared with $946,000. Earnings per share of common stock for the quarter were 31 cents as against 20 cents last year. The increase in earnings in the third quarter greatly offset the decrease in the first six months so that for the nine months, net operating profit after taxes was $3,127,000 or 68 cents per share of common stock as compared with $3,182,000 or 71 cents per share in 1953. Capital gains (net) for the third quarter and for the nine months were ($10,000) and $86,000 respectively, as against $63,000 and $4,377,000 in 1953. The latter figure was due principally to the sale of television station WBKB in Chicago following the merger with ABC. The improvement in earnings was despite increased depreciation charges due to the installation of new theatre wide screen and sound equipment and a loss sustained by the ABC Division, which loss included certain additional non-recurring costs. The estimated cash throw-off for the third quarter and the first nine months increased by $649,000 and $838,000 respectively over the corresponding periods of 1953. Mr. Goldenson said in his letter theatre business in the third quarter was better than in any similar period since the Company’s inception on January 1, 1950. The improvement was due primarily to the greater number of fine pictures released. He said that while the present trend is encouraging, the problem of sufficient supply of product still exists and the Company was continuing to encourage additional production from all possible sources. Columbia Sets 56-Minute Trailer on New Films Columbia Pictures announced last week that it has produced a special 56-minute film to highlight the top 16 pictures on its future release schedule. The film consists of actual scenes from 1 1 productions and mentions five more. It will have its first screening at the Theatre Owners of America convention in Chicago November 1 and thereafter will be available through the company’s exchanges for all exhibitor association meetings and possibly for showings in theatres. Pictures from which scenes are shown include “Phffft,” “Three for the Show,” “The Long Gray Line,” “The Violent Men,” “The End of the Affair,” “The Black Knight,” “My Sister Eileen,” “Joseph and His Brethren,” “Prize of Gold,” “The Man from Laramie” and “Tight Spot.” 16 MOTION PICTURE HERALD, OCTOBER 23, 1954