Variety (Sep 1946)

Wednesday, September 18, 1946 PICTURES 7 ALLIED SOUNDS OFF PLENTY D. of J. May Ask Cross-Iioense Ban As GovL, Indies Protest Decree Delay Washington, Sept. 17. + Nationwide group of indie exhibi- tors, paced by the American Theatre -Assn. and the Southern California Motion Picture Theatre Owners, is expected to file their motion for in- tervention in the New York motion picture case within the next week. Brief will merely urge tlie elim- ination of the single picture auction selling provision of the proposed de- other developments of the week were: 1. Strong indication here that the Justice Department brief to be flled shortly Mwill ask a ban on cross- licensing among theatre owning ma- jors. Brief may also support the single picture selling provision" of the New York court. 2. A sharp policy dash between various indie theatre groups is in- dicated by different positions taken on what to do in the current phase of the New York case. 3. Objection to any further delay ■for the majors ; from . the Justice Dept. and also'from the independ- ents who want to get the case settled promptly. - The petition to intervene, in preparation by Thurman Arnold, counsel for A.T.A., and Paul Wil- liams of the Southern California MPTO, will object to competitive bidding as murderous for the small independents. It will point out that all independents are vitally affected- by the decree and would have no other way to buy pictures, if the New York court Iceeps it ruling. It will be charged that auction selling will not leave the indies adequately protected against the stiff competi- tion of the major-affiliated houses. Arnold and Williams see no neces- sity for taking further evidence in the case and want no. delay in set- 'tling the matter either in the trial court or on appeal. Independents will meet here tomorrow (Wednes- day) with Arnold and Williams to settle the strategy to be finally fol^ lowed, it is understood. Williams . and Arnold, who are working together here on the ATA brief to be filed shortly in New York, came out with a statement Saturday pooh-poohing the whole thought that independents can get into trouble by intervening and indicating that they were proceeding vigorously. "Both Mr. Williams and Mr. Ar- nold," the statement said in part, "denied that any such legal conse^ quence was possible. They pointed out first that the interveners would appear, not as defendant, but rather in the position of plaintiffs seeking i to protect their own interests. I "Their sole and limited purpose Is to object to the distribution of pic- tures by competitive bidding. The decree is directed against the de- fendants. It speciflies the terms : upon which the majors will sell their pictures. "It would be impossible, even if the Government desired to pursue such a course, for it to reopen the decree, and reintroduce proof against the independent interveners, as de- fendants. Finally, there is no con- ceivable relief Which the Govern' menl desires against independents. They are the victims of the- con- spiracy, not wrongdoers." WB Asks Tax Refund Los Angeles, Sept. 17. Petition was filed in ; Federal Court here by Warner Bros., asking a refund of $7,550, collected by the Office of Internal Revenue as a manufacturers excis.. tax. This sum, plaintiff charges, was collected by the Government il- legally in taxes and - penalties for "manufacture of photographic ap- paratus." UAandUHold Out on D of J BEEFS CALORE Allied Not Set to Make Own Fix for 6 Mos.; Charges Deliberate' Shortage United Artists and Universal up until late yesterday (Tuesday) after noon remained the only two of the eight defendants in the Govern ment's anti-trust ease not to have served the Department of Justice with their proposals for a decree. The two holdouts, who were unable to get their statements of proposed findings in acceptable form for sub- mission in time for the Sunday (15) deadline, are slated to submit them no later than today (Wed). While the Big tive sent what they termed "incomplete tentative drafts" to Robert L. Wright, D. of J. prose- cutor, Columbia, the third member of the Little Three, sent him a sizzling 18-page combo brief and statement of proposed findings in which it challenged the authority of the Federal court and the Big Five on the proposals they have made concerning single^selling and com- petitive bidding. - J "The proposed provisions that have been coming down this sum- mer, both from the five producer-: defendants and from the Govern- ment with respect to the method of sale of pictures, have been clearly beyond the court's jurisdiction," Columbia's statement declared. Opposed by Wright on . their request for an extension of time, Paramount. RKO, Metro. Warner Bros, and 20th-Fox submitted their drafts over the weekend. Spokes- man for one of the companies said Monday (16) that the proposals were (Continued on page 22) . By IRA WIT Boston, Sept. 17, In a speech today (Tuesday) before the entire membership. Al- lied prexy Jack Kirsch scored present "exorbitant" rentals asked by distributors for their films. Kirsch termed rentals "high" and "unfair." Allied prexy added, "We hope to see the day when 12,000 theatres will close their doors for a week to show the public and government the unfair practises, of distributors. We- are appeasers now because we haven't your entire support. If we stick together we can lick this thing." In a later talk Sidney Samuelson,. head of Eastern Pennsylvania Al- liedi said that theatres should close several days a week rather than meet distributors' high demands, which have resulted from the cur- rent production shortage. Kirsch weighed in with the hope that all independent exhibs would unite in a national buying combine. Nathan Yamins, convention chair- man, proposed a resolution that the board of directors see to it that an expanded contract be drafted, secur- ing equitable rights for exhibitors, "if necessary through legislation or by litigation." In blasting distribu- tors, Yamins referred to the stand- ard contract by saying, "We haven't the right to negotiate even one dotting of an 'i' on the contract. The whole thing smacks of Hitler." When general discussion was in- vited, Harry Perlman, Philadelphia exhibitor, blasted plans to bring (Continued on page 20) CoL Pays 250G for 'Two' Hollywood, Sept. 17. Columbia bought screen rights to "Big Two," a legit by Ladislas Bus- Fekete and Mary Helen Fay, which Robert Montgomery and Elliott Nu- gent will stage in New York : this fall. Deal calls for a minimum price of $100,000 with a $250,000 ceiling, depending on the length of the stage run. ■ Nugent will direct and Montgom- ery will star in Columbia's screen version. ■ ■ r Setting Indie Unit On His Own Lot • Hollywood, Sept. 17. Albert Nassour, owner of the studio currently under construction on Sunset blvd., is organizing an indie unit to go into production next S|)ring, when the lot is completed. Two sound stages, will be ready for occupancy next month and the re- maming.ihree in March. In addition to producing on his own, Nassour will rent studio facili- ties to indie companies. Eric Johnston to Stress Exhib - Distrib Accord In His Speech to Allied Plea, to call off the feuding be- tween exhibs and distribs and to realize that they are partners in the | said but will not follow the Ameri Divorcement No CureAll-MPTOA Boston, Sept. 17. Despite the general exhibitor poll conducted by the Motion Picture The- atre Owners of America, which voted lopsidedly in favor of theatre di- vorcementj the MFTOA opposes di- vestiture as a cure-all for industry evils. So says Herman Levy, MPTOA general counsel. That vote was taken from exhibitors generally not MPTOA members, he explained. Theatre group board directors and regional officers will meet either in New York or Washington within 10 days to determine the final course concerning the anti-trust suit. Levy disclosed the MPTOA would have met before but want to hold off until he can see both the government's and majors' decree proposals. It will then map plans to petition the Court for intervention as amicus curiae. MPTOA is against both di- vorcement and auction selling levy Allied Decries Local Checkers Boston, Sept. 17. First Allied national convention opened Monday (16) with disclosure by Nathan Yamins, convention chairman, and H. A. Cole, Texa.s Allied Exhibitor leader, that Metro has inaugurated a new national re- leasing schedule which widens clear- ance between key city first-runs and houses in smaller cities. Under the new system', started since tho anti- trust decision, it was claimed, cities are scaled according to population with smaller ones—even when not competing with larger towns — pushed down to "inferior position." Formerly, many of small town houses had national release date. Metro action, it was. said, followed a survey by Audience Research In- stitute which determined that the company could make more money on pictures, with wider clearance spread between cities: of different popula- tions. Yamins declared, "on . hear- say," that RKO and one other major were likely to follow Metro's lead. Col. Cole, who owns houses outside Dallas, said Metro notified him that he was dropped from an average of one week behind Dallas' first runs to five weeks. He said he threatened Federal suit to restrain Metro and then held a conference with M-G sales v.p. William Rodgers, who thereupon agreed to drop the idea in Texas, according to Cole. Dele- gates were told that if Metro's in- (Coiitinued on page 21) lA DIETRICH TO PARIS Hollywood, Sept. 17, Marlene Dietrich, who i-ecently returned from Paris, is going back there for a- co-starring role with waimu in the French capital. Actress is currently Working at paramount in "Golden Earring," her "wst Holljiwood picture I Jin years. same enterprise will be made to- night (Wednesday) by Eric Johnston in a speech at the National Allied convention in Boston. Proxy of the Motion Picture Association will duck all discussion of trade practices in view of the presently pending Fed- eral court case. He'll also make reference indi- rectly, it is understood, to the MPA's recent battle with Howard Hughes over letter's use of unapproved and disappro-ved advertising on "The Outlaw." Implication in Johnston's words reportedly will be that exhibs should uphold the moral level of the industry on the local level by re- fusing to use pix or advertising that do not carry the MPA's okay. TECHNICOLOR'S 25C DIVVY Technicolor Motion Picture Corp. directors declared a 25o per share dividend last week, payable. Oct. 15 to stockholders on record at close of business Sept. 30. . : Kay Harrison, director of Techni- color, Ltd., of Great Britain, and Lcslier Oliver, plant manager, are due in N. Y. this week from London. They Will go to the Coast for a month of confabs on latest develop- ments, returning to England late in October. can Theatres Association lead and ask to be made a party to the suit because, legally MPTOA believed it could^ only act individually, not as organization in such drastic step, moreover individuals would be sub- ject, to all court restrictions if be- coming parties in behalf of MPTOA levy claimed: B way Glorified Midway, Says British Film Man Broadway looks like a glorified midway, according to Tony. Reddin^ Paramount's ad-publicity chief and theatre operator in Great Britain, who was lunoheoned by Par at the Y„ Monday (16) Astor hotel, N. prior to leaving next Thursday (19) for London. He made this observa- pictures _ rated percentage and pre Rodgers and Connors Overlook NWAllied's Beefs on % Demands Minneapolis, Sept. 17. It didn't help North Central Allied here to go over local heads in pro- test against 20th-Fox and Metro's percentage policy. The home offices advised Bennie Bierger, the body's president, that any policy alteration would have to be made by the dis- trict and branch managers in Minne- apolis and that the latter would-con- tinue in charge of all negotiations. Specifically, North Central Allied protested directly to Tom Connors, 20th vice-president in charge of dis- tribution, over the classification of "four pictures in a row without pro- vocation," :"Smokey," "Do You Love Mo?", :';Contennial Summer" and "Anna and the King of Siam" as percentage releases. In its commu- nication, to Connors, Allied claimed that not more than one of the four Boston, Sept. 17. While Allied will not be set to produce its own films for another six months according to general counsel Abram Myers, production plans have as their long-range pur- pose the alleviation of the current ■product shortage which has .made possible, the high prices asked by distributors. Myers told Variety after the two days' board meeting which preceded the convention^ and at which the question was discussed at length, that the move to promote Independ- ent Production Films, with assured playing time by Allied members, is dictated -"by; the deliberate creation of a product shortage by Major pro- ducers." He added that the pinch is bad now and would continue to worsen during the coming season. Allied prexy Jack Kirsch address- ed the meeting today (Tuesday) on the subject ot production, saying, "You don't have to have any nloney to go into production. I know what I'm talking about. Before very long we will have four stories, stars, and contracts tied up." He assured mem- bers that production plans are well- worked out without any members having to put up money. Previously Myers had revealed that no cash would be asked of Allied members,' with most of the coin coming from outside undivulged sources. He add- ed, however, that certain influential members might provide at least part of the capital, with rest of the mem- bership supporting through guaran- tees of playing time. In his address to the convention- eers, Kirsch continued the survey . which has been going on for some time by taking a hand vote" on their willingness to support the produc- : tion plan. He asked, "If we give you stories, stars and contracts, how many of you would sign to play pictures." Reply was practically unanimous. While no concrete plans have as yet been disclosed, Kirsch told members that complete production layout would be given each local by its president^ and they'd be asked to guarantee playing time by con- tract. A number . of suggestions came from exhibs, among them ore that a fund be collected from each to help cover production costs. Survey of membership has been , going on for some time, but even more queries are necessary accord- ing to Myers. Survey committee is headed by -Irving Dollinger, New Jersey exhibitor, to determine the amount of time that should be guar- anteed for films with Allied sup- port. Stanley Neal, head o£ Colonial Films, attended the board meet to. discuss production plans. Neal, who; previously said he,: was to close a deal with Allied to make 12 pictures flew back to New York immediateliy following meeting. tion in explaining that he had found Broadway's outer appearance to have slipped since he was in :N. Y. in 1938. Reddin said London's film theatres wei'e much'" more dignifled in outer appearancei Reddin confirmed that ipicture theatre grosses are about the same in Great Britain as during the war, only difference being that there is not the concentration of w'ar work- ers and troops in certain communi- tteir. ferred playing time and that not all of the Other three belonged in the top , bracket of straight rental pic- ture.';. Allied appealed to W. F. Rodgers, M-G sales manager, to reduce the number of percentage pictures which, it was -charged, are much too numerous. The protest and pica are in vain because there has been no change by either'20th-Fox or M-G in their classification 'of pictures involved^ Carnegie Hall Elevator • Strike Doesn't Halt Pic Strike ot elevator operators and janitors in CArnegie Hall building, N. Y., last week failed to interfere with production of "Carnegie Hall," film v;hich Boris Morros and William LeBaron have been shooting in the, famed structure since early last month. Picture continued the big- gest boon the city has ever seen for ' actors and would-be actors, with more than 1,500 extras having been employed to date. , ' Screen Actors Guild, with about 1,000 members on its roster in New York, and only about half that num- ber in the market for extra jobs, has waived its membership requirements for the mob-scenes. As a result, the producers have been privileged to use anyone they choose and the Max Richard caijting office has been sup- plying tlie "talent" from diverse sources. Filming in Carnegie Hall Winds up today (Wednesday) and moves to Fox-Movietone studios, N, Y. Mean- time, the elevator operators and jan- itors Went back tO'work Monday (16) under an a,£!reoment to arbitrate the question of whether the Hall an apartment or office building.: If it is adjudged the latter, higher pay rates are called.for. . .