Variety (Jul 1946)

Wednesday, July 31, 1946 PICTITRBS MULL DITCHING OF AUCTION PLAN Mpls. Distribs Greatly Conceraed Over Big Buying-Booking Move Minneapolis/July 30. Distributors here are greatly con- cerned over a move afoot to bring together two of the territory's big- gest buying and booking combines. Theatre Associates and Independent Theatres Assn., to do their buying jointly in order to wield more, power. The distributors fear that- it's the forerunner of a combination that may include the three other buying and booking combines that also have sprung up within the past year. Members of Theatre Associates and Independent Theatres held an unpubllcizcd meeting recently to discuss the partial merger. Heads of the combines declined to mike any statements to the press. The present trend throughout the territory, toward buying and booking combinations has been viewed with much concern, as well as disap- proval, by local exchange managers. The fear, has been expressed that the groups might try to gang up on the distributors and attempt to dic- tate sales policies and deals. Afraid of running afoul of the anti-trust laws, the film companies have refrained' from presenting a united front to the combines. None has refused to sell any of the com- bines, as far as can be learned. Branch managers claim that the combos are not buying any more advantageously for their, members than the latter were able to do when doing their own buying, but the in- dependent exhibitors assert other- wise. Theatre Associates comprises the territory's Ave largest Independent circuits, and last week employed Tom Burke as Its buyer, the latter having resigned from his post as Monogram branch here to tak.e the assignment. Independent Theatres Includes practically all of the Twin City independent exhibitors who are not members of Theatre Associates. Tax Pic a Big Aid Albany, July 30. A' film made by the State De- partment of Commerce's Motion Picture Bureau, which formed the basis of animated explana- tion by. major newsreel com- . panics in theatres throughout the State as to the method of deducting the 50% personal State income tax this spring, Is credited by Department of Tax- ation and Finance with cutting the number of tax refunds to 25,000. Last year the total num- ber of refunds was 60,000. Not only did taxpayers gen- erally take advantage of the re- duction, as per suggestions in the newsreels, but fewer of them made, errors in calculating the deduction. The Aim, which cost $3,800, "paid for itself sev- eral times over," Department of- Aicals claim. MONO TILTS ITS CREDITS BY $1,000,000 Balaban Would Move Par's Star Roster To Chi for'Skies'Preem Chicago, July 30. "Super - spectacle," including one of those gaudy, star-spangled Stat* Street parades and the world pre- miere of Paramount's "Blue Skies," is being planned by the Balaban & Katz circuit to celebrate the Chi- cago Theatre's 25th anni in Septem- ber. Nothing definite, outside of the parade and preem, has as yet been laid out for the week-long celebra- tion, with John Balaban, in charge, of the affair, holding off any an- nouncement of the Par stars and studio execs , who'll be present till studio schedules are dovetailed with his plans. Circuit chief, Incidentally, is "ask- ing for the moon' as far as talent is concerned—and that means. Bing Crosby, Bob Hope, Betty Hutton, Dorothy Lamour, Alan Ladd, Ray Milland, Olivia DeHavllland, Sonny Tufts, Veronica Lake, Joan Caul- Acid, Joan Fontaine, Diana Lynn, Gail Russell, Robert Cummlngs; Brian Donlevy, William Bendix, etc., idea being to make It the top "hegira from Hollywood" of the year. Efforts are being made by Mono- gram to increase by about $1,000,000 the revolving credit ■ it established with four banks, two in New York and two on the Coast, six months ago. Company aims to push up coin available to it for production from the $2,000,000 figure set last winter to $3,000,000. George Burrows, Mono veepee and treasurer, who was east last week arranging the New York end of the deal, said the increase was desired because of a combination of gener- ally increased costs in' Hollywood and Mono's desire to up the quality of casts and production. Burrows returned to the Coast over the week- end. Tilt in Mono's credit is looked on favorably by the bankers and is ex- pected to go through with little dif- ficulty, since Mono is in best finan- cial shape in its history. Statement to . be issued shortly for fiscal year ending last June 30 will reveal a net of better than $400,000, which is more than double the previous 12 months' earnings. Financial status has been still further hypoed re- cently by a rearrangement of com- pany's structure 'for tax purposes. This' was acknowledged poor be- fore and the improvement will be reflected in net earnings. Banks which are being asked to increase credit available are Guar- anty and Bank of Manhattan, in New York, and California and Security, on the Coast. Burrows, until he joined Mono in 1942, was v.p. of Guaranty in charge of motion pic- ture loans. EVEN 0. OF J. IT With auction-selling of pictures apparently a proposition that nobody loves—not even the Department *of Justice—speculation was growing last week on the likelihood of the scheme's being dropped by common consent from the Federal court anti- trust; decree as finally written. Two significant developments gave strength to the speculation: 1. From all over the country pro- tests rose in growing number against auction selling from the very men whom it was designed to aid—the in- die exhibs. 2. Robert L. Wright, special assist- ant U. S. attorney-general, who ar- gued the anti-trust case, took pains: to stress that the auction-seHing scheme had not been suggested by the Government, but had been de- vised and written In by the court. Thus, with apparently no support for the principle from any quarter, attorneys for the film companies -were mulling the possibility of hud- dling with judges of the special sta- tutory court which handed down the outlines of the degree and asking whether, if Wright agrees, the auc- tion selling point could be forgotten. Difficulties of administration of the system of accepting bids and deter- mining the best without being sub- ject to continuous legal action from unsuccessful -bidders is one of their strong arguments. -Headaches Galore Exhibs see in the bidding plan nothing but a myriad of detail and trouble for themselves without im- provement of their economic posi- (Continued on page IS) Par Division Sales Heads Move in Field; Kirby to Selznick? Under a policy which has Para- mount's four division sales managers constantly on the go in the field, re- ported that there may not be a suc- cessor to John Kirby as southeastern district manager, but whether or not other districts may be eliminated is not indicated. Kirby, whose district included At- lanta, New"-Orleans and Charlotte, resigned several weeks. ago, but be- fore deciding on two offers reported made him will first take a prolonged vacation, Understood one offer is to join Vanguard (Selznick) where ex- Parite Neil Agnew Is sales boss. Par's four div heads, Hugh Owen, Earle Sweigart, George Smith and Jim Donohue, are reversing former custom by spending a large propor- tion of (heir time in the field. Proser Setting Up Film Version of 'Copatabana' Monte Proser trained to the Coast yesterday (Tuesday) tip .consummate pre-production work ' on "Copaca- bana," fllmization of his N. Y. nitery, which Sam Coslowi. in conjunction with the Hersh Bros, and agent George Frank, is producing. Film, skedded to roll Oct. 1, will be re- And 16m Under OPA Rule leased thr ° u eh united' Artists. -co P a „, , . . „„ ; Girl' will be a sequel. Wastnngton. July 30, I • A i ready set f0r , he cast ara . ear- In the motion picture field only men Miranda and Gloria Jean, and theatre carpeting and some 16m Proser. while on the Coast, will equipment continue under price ^dicker with Metro for the loan of control of the revised OPA which , Xavier Cugat and Jimmy Durante, got a new lease on life last Friday. | Coslow, basically a songwriter, will Only Theatre Carpeting Metro-Skouras Accord Flows Pix Again in N.Y. Metro product, which was held up in the Greater New York territory and surrounding areas in which Skouras operates, has been freed as result of a deal reached during the past week, with immediate playing time assigned to "Green Years," among Metro pictures that were beached due to haggling over terms. In some cases Skouras houses re- sorted to reissues or repeats' while having trouble getting together with Metro. Circuit, operating in Greater N. Y.. on Long Island, in northern New Jersey and lower N. Y. state, also picked up some rather old Par pictures which hadn't been played during the lengthy tussle which Skouras had with this company. MPA Expresses Vote of Confidence In Johnston, Extending Pact to 1952 The Right Answer When Boris Morros was sign- ing up various longhair artists .for his forthcoming pic, "Car- negie Hall," Columbia Concerts' Dorle Jarmel suggested Gregor Piatigorsky, the cellist. "Ask him who was his first, teacher," Morros told Miss Jar- mel. "If he gives you the right answer, I'll sign him." "Who," asked Miss Jarmel of Piatigorsky, "was your first cel- lo teacher?" "Boris Morros," replied the cellist promptly, "In Ekaterino- slav, Russia, When I was seven." AUCTION BIDS DUE TO STICK SEZ MYERS Washington, July 30. Abram F. Myers today slammed at a number of exhib groups as "silly" for their attempts to win a dropping of auction selling from the proposed anti-trust decree and urged exhibs to- give up the notion that the Federal court would sanc- tion such a move. Exhibs should settle among themselves the question whether they want auction sales or total divestiture "as the Supreme Court doubtless will order once the case comes before it," Myers said. In a_ 12,000 word analysis of the decision which accompanied Myers' statement, competitive bidding sys- tem was likened to "treating a canter with headache pills." "Put- ting Alms on the auction block will not induce the defendants to in- crease the number of their releases or to open their retained first-run theatres to the product of new producers and new distributors who might wish to enter into competi- tion with them," Myers declared. In a further attack on the court decision, the analysis said that "the court showed tolerance bordering oh partisanship concerning the defend- ants' present theatre holdings." Nevertheless, Myers concluded, "the major companies have suffered a humiliating defeat, by far the worst in . their numerous tilts with the law." Statement and analysis is gen- erally viewed as an Allied attempt to take the lead behind a drive on the Supreme Court without. any attempt to have ihe statutory court change its mind. Allied leaders are confident that the high court will order divorcement, the main goal of Allied officials. The 16m equipment was permitted some higher ceilings. Knocked out by OPA were arc lamps, floodlighting equipment, ra- dio headphones, theatre ■ control boards, special cleaning equipment for theatres, fans and airconditlon- writtf the score to go with Gertrude Purcell's screenplay. Proser will set the director after huddles with Coslow. Accompanied by his wife. Jane Ball, and their son. Chit, Proser ex- pects to stay on the Coast about 10 | ing. Thus, except for carpeting. | days. Miss Ball, under contract to; Molly wood and the 35m theatres are 20lli-Fox, will stay on after his re- , completely out from under OPA. »turtt. Lightman Very Much OK Memphis, July 30. M. A. Lightman, president of the Malco Circuit, is asserting that his death, like Mark Twam's,' was greatly exaggerated. Lightman cancelled a two-Week vacation trip to Maine last week On orders of his doctor to take a rest at home instead. Trade immedi- ately buzzed with unexplainable re- ports that he had died. One trade paper (not Variety) even telegraphed the Memphis newspapers, requesting check on the report. L'ville House in 700G Triple Suit vs. Majors Louisville, July 30. Local film product situation, which has been of long standing, has been brought into the open by anti-trust suit filed in N. Y. federal court (11) by Albert Hoffman, op- erator, and Fifth 4 Walnut, Inc., owners of the National, local va.ud- film house. Suit names Metro, Paramount, RKO, United Artists, Universal, Warners, Republic, Co- lumbia, Loew's Booking Agency and the UA-Theatre Circuit charging il- legal conspiracy to build up a first- run monopoly. PlaintifTs seek ! $700,000 triple damages. Owners of the National are asking for a permanent injunction restrain- ing defendants from licensing any theatre on terms more favorable than those granted the plaintiff's house. Action claims that defendants es- tablished illegally uniform clearance of GO days over second-run houses and 30 days over houses catering to exclusively colored patronage. Product situation has handicapped the National, which has during the summer been playing stage shows three days and films four days. Recent newspaper reports that Mayor William O'Dwyer of New York would replace Eric A, John- ston as prexy of the Motion Pic- ture Assn., led the MPA board last week to indicate its confidence in its chief by extending his contract for two years. Five-year pact, which would have expired in 1950, was pushed up to 1952. No change was made during the extension period, it is understood, in the $100,- 000 a year, plus expenses, called for In Johnston's current contract Publicity on the O'Dwyer's angle, following reports a few months ago of dissatisfaction by some picture company heads with Johnston's ad- ministration, gave impetus to the desire of MPA board to indicate that Johnston was in good standing. MPA prez himself admitted to Variety several months ago that he knew some dissatisfaction was be- ing expressed on the Coast. His success in getting . preferential treatment for films abroad, plus a visit to the Coast since that time, have smoothed out all the ruffled feelings. ' Johnston, after attending the board meeting in New York last Thursday, spent Friday (26) in Wash- ington, leaving from there for "his home in Spokane for three weeks of vacation and looking after his personal business interests. Last week's board meeting also elected Herman Robbins, prez of National Screen Service, to mem- bership in the MPA. It likewise heard a progress report on various ' industry research projects instituted by Johnston. Questionnaire on a foreign theatre survey has been okayed by reps of each international company ■ and . is expected to be mailed throughout the world within another two weeks, reported W. B. England, acting chairman of the Advisory committee on research, and Robert W. Cham- bers, director of research for the association. Survey is designed to secure' vital statistics on all houses outside the . U. S., with each company respon- sible for collecting the data from an assigned segment of the globe. Metro's Sales Policy Under the Decree Due By End of This Week Metro h.o. sales and legal depart- ment execs, after six weeks of con- centrated study of the anti-trust de- cision, hope to announce their new sales policy by the end of this week, according lo William F. Rodgers, Metro vecpee over sales. Although no announcement has been made of the instructions sent out to the field force regarding the selling of pictures singly, Metro has been following that procedure, along' with the other majors,, since last Thursday (25), Rodgers said. Hud- dles have been devoted to a study of the projected auction-bidding system for -films and, although no dale has been set by the Dept. of Justice for that to take effect, it's believed that the new sales policy will include Metro's decisions on how the company will handle the problem. Milt Pickman Shifts West as H. Cohn's Aide Successor to Milton Pickman as eastern production representative of Harry Cohri, Columbia prexy, is ex- pected to be named shortly. Pick- man planed out of New York Satur- day (27) for the Coast to become Cohn's assistant and a production exec at the studio. Understood he'll huddle with the Col topper this week on choice of his successor in the east. Pickman repped Cohi. in New York for tht past year, prior lo that serving at Ihe studio for a shnrl time, alter discharge from the Army. V.p. Jack Cohn and other h.o. execs tossed a cocktail parly for Pickman Friday (26) as a send- off .