Variety (Sep 1946)

Wednesdajr, September 25, .1946 PICTURES 11 EXHIBS BLAME FILM SALESMEN Der Tag for the Decree-Oct. 21 With United Artists and Universal filing their decree proposals this week, iK'xt inipartant ,date in the antirtrust suit is Oct. 21 when final proposals of both the GovernThent and the Big Five will be handed up to tlie court. Meanwhile; possibility exists that intervention plea of the American Theatres Assn. will be heard before Oct. -21 since the notice of application is set for Oct. 1 or as soon thereafter as the court sees fit to listen. Government spokesman said this week that its proposals in final form lia.s aUead.v been received by the court but these may yet be altered alter consideration of the Big Five's rough draft which was served on Si"pt. 16. Understanding between the Dept. of Justice and the Big Five precludes any substantial changes in the final decree propo.saIs of those majors, a D of J official said. Memorandum in opposition to the majors sUijgested decree provisos may also be prepped by the Government for Oct. 21 submission, it was disclosed. Nomikos 10 Houses Sued for Phoney % Returns; 140 Such Suits to Date Bringing the total of percentage t chiseling suits throughout the coun-' try to some 140 separate actions, six majors Monday (23) filed damage actions in the Chicago federal court aiiaiiist Van ;A. Nomikos, and sev- eral corporations owning 10 thea- tres managed by him. Total of 140 actions filed in major company drives in 11 states bunched in the northeast, middle west, Florida and GaliCornia is exclusive of the cur- rent hot court battle in Pittsburgh in which 27 plaintiffs, operating 41 theatres, have jointly sued the eight majors in an action to restrain de- mand.s for audits. The majors have interposed 140 odd separate coun- terclaims charging fraudulent re- tiu-ni!. Inspection of theatre records \ .■wa-i granted majors and upheld on i appeal. Latest action, brought by RKO, : 20th-Fox, Paramount, "United Art- ists, Metro and Warner Bros., (Continued on page 18> But No Side Games HoUywoodv Sept« 24. . Faro and roulette sequences in "Desert Town" will have a touch of professional finesse. Hal Wallis hired four" slick dealers and croupiers from Las Vegas to show the actors how. Indie's Settlement With U on Clearance A Pattern for Others Philadelphia, Sept. 24. An out-of-court settlement be- tween an upstate exhibitor and Uni- versal Pictures on the question of preferred playing time set a pat- tern for other exhibs faced w-ith similar headaches. .1. S. Miller, operator of the Emaus, Pmaus. Pa., had filed suit in Com- mon Pleas Court asking that Uni- versal be forted to deliver "Canyon Passage" which he had bought at 40. He claimed that at the time of the purchase there was no men- tion of preferred playing time, but when he had asked delivery he was told by the exchange that he would have to play the picture on a week- end. His suit asked that the exchange deliver the film for a midweek play- date. Miller also a.sked for "puni- tive damages." Miller's petition also asked the Court to forbid Universal from selling ,"Ganyon Passage" to subsequent: run houses in Allentown until he played the picture. The suit was duft to come to trial on Thursday (19). Shortly before opening of court Universal attor- neys telephoned Michael Egftal, Miller's counsel, and asked for a conference. After the confab Egnal told the court that the controversy ^ had been settled. Under the agreement, it is under- stood, Miller waived the damages. He will; get the picture for a mid- week showing and the subsequent runs won't get the picture until the : regular clearance time elapses. UA Denies Any Trade Monopoly Claiming a., lack of evidence of United Artists' participation in monopoly conspiracy, UA yesterday (24) filed a proposed decree with the N. Y. Federal court which would exonerate it from all charges of re- straining trade. In 44 findings of fact which UA submitted for court signature, the company set forth sales methods peculiar to it as basis for its contention that UA's policy, subject to producer approval, could not be the means of furthering monopoly. Universal, last of the Little Three, will file its proposals today (25) or tomorrow. Strategy of UA's decree is in a step-by-step picture of its sales operations to prove that it is on the side of the angels. UA did not...sell. in._blocks nor did it fix ad- mission prices, proposals state. Con- tracts, merely included a. warranty of the exhib's scale without require ing it to be any arbitrary figure, decree submitted states. At no time did UA distribute more than 5% of the features in the U. S., proposals say. Nor is there any evidence to support a claim that it arrived at clearances through any other method than independent ne- gotiation with the exhib, UA main- tains. Moreover, since under its contractual committments, UA eould enter no licensing agreements with- out written approval of each sepa- rate producer "it could not bring about a monopoly in the distribu- tion or exhibition business." mm ON m Targets in a host of suits which charge them with chiseling on per- centage deals, exhibitors in many instances are currently rai.sing the cry that: the distr'ibs themselves have brought about the situation via overzealous sales employees. Gripe which is being aired widely, includ- ing at the recent Allied meet in Bo.s- ton, attacks distribs on the ground that their employees encouraged' phoney reports on picture grosses, in an effort to garner as much playing-time as possible during re- current sales drives which put the preissure on exchange employees. Story of many exhibs which ex- hibitor group officials back up is that, frequently, exhibs are won over to signing licensing deals on the promise that no checkers will be posted when the films in question are played. Claim is made that these promises were often given by ex- change managers and salesmen to win over exhibs to inking the pacts after the deals were nixed by the theatre men, because the rentals were deemed exorbitant. "They put the bee on us for a film and when we howl bloody murder because the rental is way out of line, we've been told more than once not to worry because the gross will never be checked anyway,'' one ex- hib expressed the general idea. "Then they tell us just to the sign the contract and pay whatever the picture is worth." Top executive in one theatre or- ganization, asserting that his mem- bers have frequently complained of such practices, said that he had ad- vised his members to make no such deals on oral promises. "We know," (Continued on page 20) White, Brown to Divvy Rogers' Rep. Slate - Hollywood, Sept. 20. Republic is dividing production responsibilities for the remaindet of the 1946-47 Roy Rogers pictures be- t«'i^eti Kdward J. White and Donald ■. H. Brown. While draws "Bells o£ San An- gelo," "The Gay Ranchero," "Spring- time in the Sierras" and "San An- Jonio Sunset." Brown will produce Song of the Golden West" and "eart of Mexico." Mono Huddles La. Gov. On Jimmie Davis' Biog New Orleans, Sept. 24. Producer Lindsley Parsons and scripter Steve Healey of Monogram conferred here with Governor Jimmie Davis on plans for the film in which Louisiana's chief executive will he starred in a leading role. The film has been titled "Louisiana," and throughout the script will be the, thread of the story of a share- cropper's son who went on to the governorship. The tropical beauty of the bayou state, the expanding industries and the bountiful resources of the land will also form the background; Par- sons said there'll be romance thrown in to give the pix wide appeal. And, of course, there'll be music aplenty of the Davis type with lots of foot- age reserved for "You Are My Sun- .shine," the governor's top-hit tune. His band vvilt also appeal'.: ; f Parsons, Healey and Mitchel Hamil- burg, governor's agent, will leave on tour of state middle of the week to scout" locations. Actual work is ex- pected to start about first of the year. • ■ ■ Dipson Anti-Trust Suit On Top of Bordonaros And Schin^s in Buffalo Buffalo, Sept. 24. This town, which holds the dubi- ous distinction of being the runner- up for the largest number of cases in the arbitration tribunals under the Consent Decree, now appears to. be fast becoming a hotbed for anti- trust litigation. The Government's case against Schine theatres was re- cently terminated here by an ap- peal by the latter to the U. S. Su- preme Court from the adverse rul- ings of the local Federal district court. Last week Bordonaro Bros., of Olean, filed suit in the same court astainst Warner Bros, and the Big 5, Universal and United Artists for $500,000 damages alleged to have been sustained since 1930 when WB deprived the Bordonaros'. Palace. Olean, of first-run product. Tuesday (17) Dipson Theatres, Inc. filed an anti-trust suit against the Big 5 and Little 3 distributors in the same court .for damages of $2,- ,500.000 for alleged conspiracy and restraint of trade. Vincent R. Mc» Faul, operating head of the Buffalo Shea-PaT;J^oew circuit, is named as. co-defendant. Brought under the Sherman and Clayton Acts, the com- plaint alleges conspiracy to monopo- lize pictures in Buffalo. Par, Loew's and McFaul are claimed to own one- I third of Buffalo Theatres, Inc. which in turn owns all of the stock of Bison Theatres. McFaul, is listed as presi- dent of both companies which own or operate the downtown Buffalo, Great Lakes, Hippodrome and Teck on first runs, and the neighborhood Kensington) Elmwood, Seneca, North Park, Kenmore. Niagara, Roosevelt and Lackawanna tljeatres., ■ ijipspn further .alleges that' he leased the Franklin, Ridge, Holly- wood and Park in Lackawanna in September of 1939 after an offer by the' prior owners tO; sell them to the Shea-Par-Loew circuit which offer ■was refused because it was claimed that their receipts were in.sufficicnt, Dipsoti.claims that irhme.diatel>* after he acquired the four,, the Shea inter- ests Constructed the Lackawanna in competition to his Ridge, with a re- sultant loss to him of $36,000 in oper- ating loss and a red $3,i,000 in net income. Metro s Rodgers Denies Top Bidding Will Kayo All Past Clearances How a P.A. View* Things Fred Lynch, press chief , for the Music Hall, N. Y., is be- moaning the fact that continuing strength of "Notorious" at the . house has robbed him of the big- gest publicity: tieup of the year.. He was plugging for opening of the Hall's next picture, "The JoLson Story,'' tomorrow (Thurs- day)—Rosh Hashona. "Jolson," with its biog of a kid who was son of a cantor in a synogogue and which has been labeled a "Jewish 'C3oing My Way'," was figured by Lynch a natural to preera on the Jewish New Year. . Charges, by Philly .exhibs that. Metro was planning to scrap all past clearance provisions in favoir of selling product first to , \yhafever exhib is, willing to pay most for it were denied this week by William F. Rodgers, Metro voepee over sales. Claiming the : report was "entirely ■ untrue," Rodgers pointed out that all distribs sold their product /first to first-run situations who: eat-ned the highest grosses but declared this had 'nothing to do with any change in existing clearance pro* visions. Charges were voiced by Sidney E. i Samuelson, general manager of AU I lied of eastern Pennsylvania* I Samuelson claimed that Meti'o h o. bookersv arc currently checlciiig every exchange to determine th^ number of prints required to service ' the territory, adequately. ■ After the results are in, he said. Metro pic- tures would be made available in Order 6£ the amount of the film ren- I tal, with those theatres paying more receiving priority and those paying i less being forced to wait. . I Rodgers conceded the -check was films, bping made but said this had "-^ Metro's 3 for Oct Not Via Auction Metro has scheduled three films for general October release, none | bearing on the releasing scheauie. of which will be put on the auction I it's necessary to test films to see block for test purposes under M-G's I how they do and then to base their experimental tryouts of the com- | availability on these tests, he de- petitive bidding system called for | dared. He stressed that M-G would in the anti-trust decision. New re leasesj in ^addition to "Cockeyed Miracle" and "No Leave^ No Love," (Van. Johnson starrer),-also include "Rage in Heaven," first of Metro's classic oldies slated for distribution by, the new reprints and importa- tions division, which is headed up by William B, Zoellner. With exhibs squawking about a I product shortage, Metro is reluctant ; to hold up general release of its pix. i according to company sales toppons. I Sales chief William F. Rodgers. con- sequently, has decided to limit the auction bid tests to "Holiday in Mexico," which teed off the experi- ment;?, and the four pix in the Com- pany's Group 17, announced earlier for August and September release. Latter includes "Boys' Ranch," "Courage of Lassie," "Faithful in My Fashion" and "Three Wise Fools." Auction tests have been conducted to date in strictly competitive areas | booking out of ex"changes" ill Pitts (Continued on page 29) continue- to release product when it can become available. Samuelson also took a crack at the general plan announced by Rodgers for selling .films in non- competitive areas under the anti« trust decision. In such situations, Rodgers had declared several weeki <Continued on page 20) GreenthaFs New Ad Agency Tees Off With U-I and Rank Accounts Monroe W. Greenthal, whose post as veepee and director of advertis- ing and publicity for United World Pictures became expendable when Universal merged with International and absorbed UWP, has set up the Monroe Advertising Co. with U-I and the J. Arthur Rank Enterprises as-leadoff-clients:—A-geney^whieh-- will also handle U's tlieatres, when acquired, and its 16m program,will swing into action with a newspaper campaign for "The Killers." Though officially planned to start going on Oct. 15, offices will probably open by Oct. 1, Greenthal said. In opening his agency, Greenthal captured the Universal account from ,J. Walter Thompson agency and both the Rank and International accounts from Buchanan & Co. Plans call for opening of a Hollywood office with- in a month and establishment Of permanent New York offices in the now erecting Tishman bidg., on Park ave., where U-I will also make its h.q., about May 1, '47. British pic, "Temptation," is the last handled by Buchanan. Company will not confine itself to film field, Greenthal .said. Its first theatre client is the Winter Garden, U's Broadway showcase, while in the non^theatrical field, company has taken on Friedlander Produc- tions, a fashion account. Top exec for the Coast office will be an- nounced shortly, Greenthal stated. Greenthal, prior to his UWP stint, was a major serving as chief of the Motion Picture Branch, Information Service Division. Ho had also been ad-pub director of United Artists for a number of years. Distribs Sue Mpls. And Pa. Exhibs on % Deals Minneapolis, Sept' 24. Distributors here are proceeding against exhibitors who allegedly have made fraudulent returns on percentage pictures. The first of what will be a number of suits ask- ing exemplary damages has been filed against the nine-theatre cTrcuit operated by George Miner; -the Miner circuit and Isles Theatre Co. I and serviced out of Minneapolis. | The plaintiffs are Paramount.; RKO, Loew's, 20th-Fox, United I Artists, Universal and Warners and | their action has been filed in the ; U.S. district court; Superior; Wis. i Theatres involved are the Ashland. ! Ashland; Grand, Chetek; Falls and ; Rivoli, Chippewa Falls; Isle, Cum-! berland; Unique, Ladysmith;' Nor- wood, Philips; El Lago and Majestic, I Rice Lake, and Falls, River FallSi all j in Wisconsin, . I It's also alleged that request.'; made ! by each plaintiff in February for an audit of receipt records of the in- volved theatres were ignored. Sev- eral Miner circuit houses had re- : oently banned Confidential Reports i .J- . checlcers because they were-localites [ Universal and Int'l and^ one distributor here' cut off their [ ■ FlackericS Merge ; ———^' ' ■ ■ ■ : ■ [ ' ' . ■ ' . Holi.vwood. Sept. 24. ■ Victor, Marousis'Sued -| Merging of the plibjicity departT, Pittsburgh, Sept. 24. ments , of Universal and Inter- David /Vic-tor, veteran New Ca.stlc. ; national has been completed, witii ' Pa., exhib, was sued in federal court . John Joseph ^s; national director o£- here last week by Warners, United.! advertising and publicity and .J. L.- Arli.-,ts and 20th-Fox on charges of l Kaufman as associate director, .«;crV- falsifying reports on perccn.la.qc ; ing as contact man with the studio's pix. At the saiiie time, Columbia independent producers, and Univer.sal filed similar action.s i David Lipton Will function as ex- against Speer Ma.rpusis,. . Ipnglimc 1 ccutive coordinator of advertising operator of the . Regent .theatre in and promotion, and Pete Dailey will New Castle. . ■ ; : - \ |^ as.studio publicity director.