Showmen's Trade Review (Oct-Dec 1949)

4 WHAT'S NEWS In the Film Industry This Week EXHIBITION Ever since the U. S. Supreme Court, in ordering the Government anti-trust suit back to the three-judge statutory court for further study, made final the fact that certain industry trade practices were illegal and definitively outlawed the fixing by distributors of what admission prices a theatre should charge, a large body of exhibitor opinion has remained suspicious of distributor compliance. This week this suspicion flared into open attack on two fronts — at the distributorexhibitor committee meeting of the Theatre Owners of America, and at the national Allied convention in Minneapolis. Both attacks were leveled at Columbia. Both were directed at alleged sales policies in connection with "Jolson Sings Again." TOA denounced sales policies whose terms would have the effect of forcing an exhibitor into admission price rises. National Allied, in stormy sessions, wired protests to Columbia Sales Chief A. Montague, protests which must have intimated that Columbia was asking for raised admissions, for this brought back flat denial from Montague who demanded to know "the basis of your information." The TOA will seek to work its complaint out with Montague and has appointed a committee for this purpose. Allied probably will seek a similar method, though its convention, which was as fiery and aggressive as ever, resolved to seek out evidence on violations of the U. S. Supreme Court rulings and to offer this evidence to the Justice Department. The convention, one of Allied's largest, decided to accept the industry public relations plans "with . . . reservations" for one year's trial. (P. 5) Meanwhile the Variety Clubs International, whose mid-year conference closed in New York Wednesday night, was turning back the pages of history. The conference approved audience collections and theatre premieres as a method to raise funds for the operation of the Variety Clubs — Will Rogers Hospital at Saranac Lake and to hold the collections or premieres nationally either on Washington's or Will Rogers' birthday. (P. 6) Audience collections had been used for this purpose when the hospital was managed by the National Variety Artists. In San Francisco Fox West Coast was reported to be considering vaudeville for its 4,651-seat Fox and Loew's was taken the 2,600-seat Warfield from Fox to operate as its own house (Government anti trust suit, you know — partnerships). In New York Paramount home office attorney Richard Morgan (what he doesn't know about the Jackson Park case and others isn't worth knowing) quit to become an exhibitor. He takes over the 600 seat Palace at Watertown, N. Y., which Schine had to give up because of its consent decree. In Charlotte, the Theatre Owners of North and South Carolina closed theu* twoday convention with the reelection of Mrs. Walter Griffith as secretary-treasurer and heard TOA President Sam Pinanski say exhibitors must recognize the problems that producers face and help in their solution. Pinanski declared that exhibitors had a stake in keeping independent production alive — a statement similar to that made by Allied's Jack Kirsch in Minneapolis. In Florida exhibitors were faced with a three per cent amusement tax on seats at 40 cents and over. In Greenville, Ala., theatres had a two per cent box-office tax clamped on. In Chicago subsequent-run exhibitors were kicking over the alleged lack of first-run product. DISTRIBUTION Thirteen exhibitors will offer 35 new features for distribution in November, the Booking Guide of Showmen's Trade Review revealed this week. The same week saw Realart hold a sales convention and announce a minimum of 15 reissues of 1950 with a maximum based on what the market can take; Universal announcing that it will put 18 new ones on the market during the next six months; Sam Denbow joming the Allen Tone outfit to handle "The Man on Eiffel Tower" and the trade generally wondering whether, now that Howard Hughes has a Production Seal on "The Outlaw," he would drop his $7,000,000 anti-trust suit against the Motion Picture Association of America. Hughes filed the suit when the MPAA took the seal away over his advertising. He has since submitted revised advertising. United Artists closed a deal with the Navy for §160,000 to cover 37 features to be exhibited at bases and aboard ships. GENERAL The legal front this week was comparatively quiet with Universal stiing the William L. Paternostros of Lake Charles, La., for alleged under-reporting of film rentals on percentage pictures for their Delta and Palace in Lake Charles. In Batavia, N. Y., Exhibitor Charles V. Martina dropped the Dipson chain from the defendants in his damage suit based on alleged actions which caused him to lose the lease on a theatre. Hollywood Federal Judge Harrison handed down an oral decision favoring the distributor defendants in an anti-trust suit brought against Paramount, 20th Century-Fox, Loew's (MGM), RKO, Monogi'am, Columbia, Republic, United Artists, Universal, Exhibitors James Edwards, Jr., and Arthur Sanborn of El Monte, by Steve Chorak, an exhibitor of Puente, Calif. Chorak sought the usual triple damages and an injunction on the basis of a two weeks' clearance in favor of the El Monte situation five miles or so away. In Detroit Producer Sam Goldwyn was reiterating his opinions on monopoly which he termed "un-American." In Washington the Rev. Gerald L. K. Smith, leader of the Christian Nationalist Crusade, said Un American Activities Committee had a petition with the names of 50,000 southern Californians, requesting continuance of the motion picture red probe. The committee could not be reached for comment. ' Financial: Technicolor — net profit for nine months ending Sept.30, 1949,estimated at $1,768,550, or $1.92 a share, comaared to $1,276,900, equivalent to $L30 a share, for the corresponding 1948 period. Net profit for quarter ending Sept. 30, 1949, $620,830 or 67 cents a share. Universal-Directors declared a dividend of $1.06 a share on 4¥4 cumulative preferred payable Dec. 1, 1949. Dead: J. Applestone, 30, MGM Singapore manager, of polio in that city. SHOWMEN'S TRADE REVIEW, October 29, 1949 ^Outlaw^ Gets Seal Back» Question: Will Hughes Sue? Whether Howard Hughes' anti trust suit against the Motion Picture Association of America would be fought to a finish now that the MPAA's Production Code Administration had restored its seal of approval to "The Outlaw" remained unanswered this week as no one from the Hughes office was available for comment, and RKO, distributors for the picture, apparently aid not knuw. liughes had sued the MPAA originally for damages which when tripled and added to attorney's fees would have amount-ed to over $7,000,000. The suit, which also sought injunctive relief, was instituted after the MPAA had withdrawn its approval seal because of advertising Hughes insisted upon using. Hughes alleged the MPAA action barred him from theatres and constituted an act of conspiracy under the Sherman and Clayton acts. About this time it was discovered that the MPAA had eliminated a clause which fined member theatres playing unapproved films. Preliminary efforts by Hughes in federal court at New York to force the MPAA to restore the seal failed and the suit remained on the docket without any date set for regular hearings. The MPAA restored the seal reportedly when Hughes submitted revised advertising for the picture. However, a stipulation entered into by both parties prior to re-opening the advertising question made it plain that the results of such negotiation would not affect the suit. 50,000 Want Inquiry Resumed, Says Rev. Smith Rev. Gerald L. K. Smith, head of the socalled Christian Nationalist Crusade, declared at a press conference in Washington, D. C, that "a petition, signed by some 50,000 names from southern California had been filed with the Un-American Activities Committee asking that the Hollywood film investigation be completed." No confirmation was available from the committee since its investigating staff was out of town. Smith, who first rose to prominence as a lieutenant of the late Huey P. Long, has been heading various movements since the senator's assassination when the Long machine denied him to its councils. More Taxes Florida has added a three per cent amusement tax which will affect almost all the theatres in the state since it applies to admissions of 40 cents or more. Greenville, Ala., has also joined the cities taxing amusements with a two per cent box-office tax. INDEX TO DEPARTMENTS Advance Data 34 Audience Classifications 14 Box-Office Slants 14 Feature Booking Guide 26 Feature Guide Title Index 26 Hollywood 24 Newsreel Synopses 31 Pictures Started Last Week 31 Regional Newsreel 18 Selling the Picture 9 Shorts Booking Guide 33 Theatre Management 16 Views on New Shorts 35