Showmen's Trade Review (Oct-Dec 1949)

12 SHOWMEN'S TRADE REVIEW, December 3, 1949 WBAT$ mWB In the FUm Iticli&sliiy thU W«ek GENERAL Not so long ago, Rep. J. Parnell Thomas had some very important people in the motion picture industry worried as the House Un-American Activities Committee, of which he was chairman, launched an investigation into alleged Communism in Hollywood, an inquiry which ramped all over the lot but neglected to take the challenge which Hollywood gave: Look at our pictures and see if there is any Communist propaganda in them. This week the same Rep. Thomas threw himelf on the mercy of the court, uncontesting the charge that he had defrauded the federal government by padding payrolls for employe services which were said to be nonexistent. He can get as much as 32 years in jail and fines of $40,000. In Kansas City the Colosseum of Motion Picture Salesmen elected Charles Dortic president and ratified a new contract which gives them a minimum salary of $75 weekly — a $5 raise, as well as other benefits. In New York United Artists Executive Vice-President Arthur Kelly saw an increase of joint production in England to use up impounded American money, while Harold Wilson, president of the British Board of Trade, announced in Washington that MPAA President Eric Johnston would go to England in January or early February to discuss a new Anglo-American deal. In London J. Arthur Rank renewed his attack on box-oflfice taxes. LITIGATION Divorce continued to be a worrisome word for the theatre-holding defendants in the Government anti-trust suit — Warner Bros., 20th Century-Fox and Loew's (MGM). This week the Big 3, who don't fancy the idea of giving up their theatre properties, came up with their version of what the decree in the anti-trust suit should be. with a document which would enable them to retain some of their theatres at any rate. It calls for divorce, but provides that divorce can be suspended if by giving up some theatres, adequate competition is provided. It also would allow the Big 3 to play their pictures on their own terms in any theatres in which they had a proprietary interest. Meanwhile the "lawyers' paradise," as dapper Eric Johnston, president of the Motion Picture Association of America calls it, was pretty active. Harry and Herman Stahl of the Nuluna at Sharon, Pa., filed a $1,500,000 anti-trust suit against Warner Bros., Loew's (MGM), Paramount, 20th Century-Fox, United Artists, Film Classics and Warner theatre operating companies, charging that they could not get first-run film due to an alleged conspiracy. National Allied reportedly furnished the Justice Department with exhibitor statements that Columbia or its employes had demanded increased admissions for "Jolson Sings Agani" — a statement which Columbia has denied repeatedly. Theatre Owners of America called on the Justice Department in Washington over the same question. And down in New Orleans the Gulf States Allied was denouncing distributors for going to court with "fanfare" over alleged fraud suits, without first try ing quiet, out-of-court settlements and calling upon them ot get rid of Attorneys Sargoy and Stein. In Pennsylvania the censor board appealed a feaeral court decision which denied them the right to censor films appearing over television because this reportedly was an encroachment on the rights of the Federal Communications Commission. In New York trade circles were pretty certain that the Motion Picture Association of America, which is supporting an attack on censorship in Memphis, would carry its case to the U. S. Supreme Court. In Albany, N. Y., Paramount incorporated a new $4,000,000 distributing company and a new $4,000,000 theatre company to take over if and wnen divorce comes about. EXHIBITION Federal admission taxes for the month of September totalled $35,072,207, or well above the $32,136,111 collected for September, 1948, the Treasury Department revealed this week as both the Theatre Owners of America and national Allied were marshaling their forces for an allouc attacK on ine Dox-omce levy when Congress reconvenes. This question of admission taxes' meanwhile was causing more and more worry in various sections, ifonkers, a short trail) ride Irom New York, was organizing to tight a proposed five percent municipal tax, the Ohio Drive-in Association was warning its members to watch the municipalities m their areas for any move by which they might seek to take over any amount oi box-otfice tax that the federal government might give up. The real fear m the exhibitor mind, however, is that he will have additional taxes slapped on his box-oitice without getting federal relief. Meanwhile in California United Artists Theatre Circuit was preparing to take over 17 houses which will fall into its lap as a result of the aivestiture provisions of the Government anti-trust suit, and in Baltimore the same company reelected all its directors, which include such notables as Joe Schenck and George Skouras. Out in Winfield, Kansas, the Sullivan Independent Theatres have leased the Regent formerly held by Fox Miawest, and in Madison, S. D., Paramount s Minnesota Amusement Company, taking another step in divestiture, has sold the Lyric property to a non-exhibitor— J. F. Stahl. In Boston, RKO will drop vaudeville at its Boston Dec. 7 and will return to duals. Reason: $20,000 weekly grosses could not cover the nut of a house which has to gross $27,000. DISTRIBUTION MGM is withdrawing "Gone With the Wind" Dec. 31. Jerry Jernigan taking over Realart for Memphis. Louis R. Brager stepping into Film Classics' exchange operations captaincy, succeeding Albert Mannheimer, RKO appointed Herbert Horn to handle its German distribution, and John M. Whitaker resigned as an RKO vice-president. Salesmen Win \ Wage Boost, Elect Dortic The Colosseum of Motion Picture Salesman closed its two-day convention in Kansas City last Saturday and Sunday by electing Charles Dortic of Albany, its first vice-president, to the presidency and by ratifying a contract for improved wages and working conditions reached with nine distributors. The new contract, reached prior to the convention but subject to the approval of that body, calls for a minimum of $75 weekly, the same welfare benefits which the companies offer other employes, and a notice varying from four to eight months when the company planned to substitute its own automobiles tor those of the salesman for transportation. The contract, retroactive to Oct. 18, runs till April, 1951 and covers Paramount, Loew's (MGM), Monogram, Republic, Columbia, Twentieth Century-Fox, Universal, Warner Bros., and RKO. Still to be negotiated are contracts with United Art-ists, Film Classics, and Eagle Lion, Colosseum Counsel David Beznor declared. Organization business, which was conductea during the two-day session, included the budget with Dortic declaring the organization was sound and had a membership of 1,030. Cincinnati Selected Cincinnati was selected for the 1950 convention. Other officers elected are Vice-'Presidents Harry Wynn, Atlanta, and William Warner, Los Angeles ; Treasurer Thomas McKean, Oklahoma City ; Reelected was Executive Secretary N, Prcvencher. Ed Golden, president of the Kansas City Loge and Morton Truog, its secretary, hosted the convention. Watch City Tax, Drive-Ins Warned Members of the Ohio Drive-in Association were warned this week to watch any attempt by city governments to step into the amusement tax field as the result of any possible reduction in the tax rate by the federal government. The warning was issued in view of the advice in that direction by the American Municipal Association of Mayors. President Frank Nolan has also appointed the following committees : Daylight savings — Chairman, J. D. Dempsey. Jack Armstrong, Horace Shock; Activities— Chairman, i homas Wasson, Ken Veach, Barton Cook; Insurance — Chairman, Paul Swinger, J. B. Steadman, J. D. Dempsey ; Taxation — Chairman, Ethel Miles, Frank YassenofY, C. I. Snook; Technical — Chairman, Carlos Crum, Al Boudouris, Charles Mosser; Traffic and highways — Chairman, Milton Yassenoff, George Kaler, F. E. Price. INDEX TO DEPAR™ENTS Advance Data 35 Audience Classifications 26 Box-Office Slants 26 Feature Booking Guide 30 Feature Guide Title Index 30 Hollywood 28 Newsreel Synopses 29 Pictures Started Last Week 35 Selling the Picture 17 Shorts Booking Guide 37 Theatre Management 23 Views on New Shorts 29