Variety (October 1954)

4 PlCTtBES wmm Wednesday) October 13, 1^54 ! • . - ■■■■' • ; • >. • v 1 ~ ~ . , ■ -> ' • r* r 1 * / . . __ i Government Regulation Choice of Evils’ Addressing Allied States Convention, Abram Myers Makes His Expected Plea for More Washington Controls —- At Same Time Chides Dept . of Justice for Weak Enforcement of Present Late -— Says Dlstribs Give tip Service to i Free Enterprise 9 While Squeezing Exhibitors* Profit Possibilities at higher ad runs Shown in fewer theatres on longer By IIY HQLLINGER , Milwaukee, Oct. 12. Coupling (1) an attack on tlie Dept, of Justice for laxity In enforcing the consent, decrees with (2) a defense of further Government regulation of. the film industry, Abram F. Myers, board chairman and general counsel of Allied States Assn,, made his expected all-out pitch for a pro* posed bill for the control of film rentals under the jurisdiction of the Federal Trade Commission. He was the .keynote speaker at the opening of Allied’s 25th anni convention- at the. Scliroeder Hotel here today (Tues.). The major distribution companies also received blistering going-over by the outspoken Allied leader who is regarded as the individual most responsible for bring- ing about the Government consent decrees. . 1 Choice of’ Evils In essence;;;; Myers'* plea for further Government inter- vention in the affairs of the industry is defended the ground that it “woiild be far superior to the regulation that vve are now suffering from the film companies.” The quotation is from a letter; from"IJarry-Arthur, prexy of the Southern California. Theatre. Owners Assn, who has supported Allied’s stand on Federal aid. Arguing that additional regulation will,not destroy free enterprise, Myers rioted the Government’s control of in- dustries, other than public utilities, cited.the legal, grounds for it,, and stated that “the real danger to free enterprise in the motion picture business is the growing strength and arrogance of the film companies with their control pver the supply of films.” '■ . Blockhooking Mfrage He chided, those, exhibitors who feel that a return to ‘The good old blockholding days” uld solve some of the current problems. Citing the “rising tide of complaints against picture forcing,” Myers asked; “How would you like to revert to compulsory block booking and let the film companies decide which pictures you shall play?” Pointing to Allied’s accomplishment in bringing To end the producer-distributor companies with their affiliated theatres, Myers said that “we in. Allied are painfully aware that some of the reforms for which we fought afe not working as well as they should;’’ He said it-was not because they were unsound in theory “but because coun- sel for the film companies pulled the wool over the eyes of the Government lawyers, in drafting the consent de< crees and the Dept, of Justice has not the will to enforce the decrees to the. extent that they can be enforced.” The Justice Dept', “snatched defeat from The jaws of victory by negotiating a,^series of so-called ‘consent de- crees,’ by which the fruits of victory Were frittered away;” He said the negotiations of the decrees were a one-sided affair “becajise the film company lawyers wfei-e schooled, in the. intricacies of. this strange and complicated busi- ness and the Government’s attorneys were not.” As a result, he maintained; ineffective provisions were drafted and “the film companies have resorted to every loophole in these crudely drawn injunctions . . .” j Tightening of Loopholes .... | Myers said that his proposed bill would have the effect of tightening these loopholes as well as providing for the control of film rental charges. The Allied leader stated that it had been hoped that separation of, the theatres ; and production of the majors would encourage indie producers who would spring up “to compete for th plajlfng time on the screens of. the formerly affiliated theatres, which. would then be open to. them, and to supply the needs of the revitalized and expanding independent theatres.” He said the principles of elementary economics and logic supported this theory, but that the sudden emergence of television as. a serious competitor altered the situ- ation. He said that the; film companies, instead of meet- ing this competition headon by making more arid better pictures, “were cruelly , mistaken when they decided That it paid, only : to make, a few good pictures.” f Shortage-Starved Market : . “The drastic, reduction in The nurnber of pictures re- leased,” h said, “has created a starved market which has enabled the film companies to exact film rentals and impose terms and conditions which, only a feW years ago, Would have surpassed their own dreams of avarice. A starved market with resulting price inflation is the signpost of monopoly and nothing could demonstrate more clearly the stranglehold which the film companies have on this business, in all' its branches, than the prices and Terms demanded by' them for the few pictures that trickle through the exchanges.” Myers declared that the film companies are operating under the erroneous notion that people will seek put pictures in key theatres no matter how inconvenient and expensive it may be. “Bigger profits from fewer, pictures mission prices that’s the film companies’; ticket,” he said. ‘Tt f s good for one delirious joy ride, if they have no fixed destination in mind, If they don’t care a hoot for the disasters that lie ahead and are heedless of the con- sequence to theriiselves and to the entire industry.” He said that when a siriall theatre hajr to close down because It cannot afford the •’exorbitant film rentals.de- manded,” the old, the very young,; and those of moderate means are lost since “they cannot flock to distant theatres for their entertainment.” Myers said' Allied Was driven to seek further Goverii- ment control by the high-handed methods of the distribs. He declared the board is not committed to Government control, but that it directed that a bill be presented at the convention, “because it wanted to know how this representative gathering of exhibitors viewed the matter.” He said the board would be influenced by tl\e con- vention’s decision, - and the various members were faced with “a grave responsibility,”, whiph he hoped they would discharge Wisely. , Profits Vb. Free? Enterprise ; { Answering those who claim That the bill might destroy free enterprise, Myers saidi that free enterprise is based on the profit system. "Whoever heard of a system of free enterprise where the- profit motive has been snuffed out?” he asked, “Yet the evidence is overwhelming that the film ■companies are rapidly eliminating all profits from theatre operations o£ reducing them to a bare sub- sistence level.” Citing his reasons for the selection of the Federal Trade Commission as the enforcing agency, Myers saic^ “it is harder for the film Companies to reach into and, control a Commission With five members than an. executive de- partment presided ovex* by a single cabinet officer.” He said that ever since Harlan F. Stone, “the last of the great Attorney Generals", presided over the Dept of Jus- tice, it has been the style to appoint Attorneys General more for their political prominence than for their legal attainments.” He noted that while an ' occasional FTC member may be susceptible to political influence, “it is reasonable to expect that a majority will take their duties seriously and discharge them according to law." Myers told the Allied members not to vote in favor of the bill “unless you intend to do everything in .you power to secure its enactment.” He said a handful of men cannot make Congress understand, why the legislation should pass. “William Tell,” Italian-Amerir can coproduction starring Errol Flynn, Which had been on and off am era for months in Italy, has been dropped after art expenditure of $710,000 on its lensing. Seems that the Italo and Yank partners couldn’t co-exist to the extent of Shaping the project into a full fledged picture. A total of 30 min- utes of footage had been shot; and 1 this -is to be scrapped. Barry Mahon, cbprpducer With Anthony Fossittaro, claimed ih N. Y.. this week that he had put up the equivalent of $460,000_for the picture in terms of cash and deferments,. Fossittaro, reppirig Italo interests, contributed the equivalent of $250,000. Latter, states. Mahon, wanted out at. this point but insisted On taking 509b of: the ownership as and when -Mahon completed .the. job. Mahon claims that both United Artists arid Columbia would guarantee the, completion money but Fossittaro’s demand was impossible. He said Fossittaro refused an offer of a full return on his investment plus $100,000 arid so the decision was made to . abandon the project. • Mahon, who revealed lie now lias a deal.to make : five filriis un- der the Herbert Wilcox’banner, lates he’ll do “Tell” all over again, ..starting from scratch, as one of the five. Mahon says he and Flynh may recoup their, investment from the Italo venture—-Flynn was on deferment—from the “Toll” deal ; iih Wilcox, this being a provision of the contract. To roll before “Tell” will be “King’s Rhapsody,” base 1 on an Ivor Novello- stage play- Both pix, will be lensed ..•round the Buvarian Alps area and likely in Cinemascope. Flynn and Anna Neagle are co- slarrcd ih Wilcox' production of “Lilacs in The Spring.” STOP QUARRELING EDICT TO SPEED STUDIO SALE Los Angeles, Oct. 12. Samuel Goldwyn and Mary Pick- ford, co-owners of the Goldwyn studios, were ordered by Superior Judge Paul Nourse to. reach an agreement on the sale of the prop- erty within a short time or the court will place it on the auction block. Sale of the lot has been in litigation for more than five years. Miss Pickford owns 41/80ths of the studio and Goldwyn owns 39/80ths. Both have expressed will- ingness to dispose, of the. property but have been deadlocked over who owns what equipment on the lot Judge Nourse ordered Goldwyn’s attorney, Herman Selvin, to file an affidavit on his claims within 10 days.. Then lawyers for both sides will attempt to reach an early agreement.. If not; the studio, will be put up for sale, probably in De- cember. Jacques Leslie, representing Miss Pickford, informed the court that a prospective, buyer had offered $1,500,000 for the property. Warners’ 30c Divvy Divvy slice of 30c per share on common. stock Was declared by the board of Warner Bros., at a special homeriffice meeting Friday (8>. Melon is payable Nov, 5 To stockholders of record Oct. 19. FEWER PIX COST MORE Darryl Zanuck on Today’s Race For ‘Quality* Hollywood, Oct. 12. Future of the motion picture in- dustry depends on quality rather .than quantity, Darryl F. Zanuck, 20th-Fox production chief, told a meeting of the company’s Western 'Division salesmen, Limited pro- duction; he added, ’does not mean less expense. ; “Actually,” he said, “our costs have gone up because There can be no stinting on casts; stories .and production values when all studios are trying to outdo each other in top quality entertainment as they are today,” Pastor’s Popcorn Gag Charlotte, N,. C. Oct. 12. Plaza Presbyterian Church of Charlotte is conducting services in the Plaza Theatre. Last Sunday, Rev. David Wilkinson told this A youngster tapped his father on the shoulder during, the previous Sunday’s services and said, “Dad- dy, can I have some popcorn?” BECAUSE KIDS LIKE’EM 3-D LINGERS IN STICKS The 3-D films requiring Polaroid specs, while dead as far as produc- tion is concerned, are still getting a play in some isolated regions of the country; Edjvard • Lachman, an official of the Nord Co., an outfit that pro- posed a single strip 3-D system, said, he had been receiving, reports of .the depth showings. Most re- cent, he said, were from some small communities in Louisiana. Some exhibs, according to Lach- man, are grouping all 3-D pro- grams arranged especially for the kiddie trade, The films being shown are the many deepies made about a year ago during the in- dustry’s 3-D phase. Europe to N. Y. Americp Aboaf Barry Jpnesf Greta Keller Juliana Larson J. Barrett Mahon Paul Par ay Tom Pedi Howard Phillips. Gregory Ratoff Louis de Rochemont Elizabeth Schwarzkopf Hazel Scott Irmgard Seefried Fritz §tiedry William Taub Vf JUDY’S TWIN PREMIERE KNOTS UP TIMES SQ. In contrast with the relative quiet of a usual Monday night, Monday (11) brought a double mob scene to Broadway. Reason was the dual opening of “A Star Is Born” at the Victoria and Paramount Theatres. Crowds out- side each house forced re-routing of vehicular traffic and made pedestrian travel impossible. Judy Garland, star of the Warner film, appeared at the lobby of both theatres for the benefit of WABC- TV cameras and NBC and Armed Forces radio mikes. Martin Block emceed at the Vic, George Jessel at the Par, Vic appeared the key Centre of attraction, probably be- cause of its- mid-Times Square location and its Kleig light .spot- lighting. In an "unexpected move, Harry Brandt’s Mayfair arid Victoria Theatres Called attention to “Star” at the two rival houses with a “welcome” to the “event” spelled out on the marquees of the two Brandt houses. N. Y. to Europe John By rani Constance Carpenter •- Reg Connelly Arthur Davis Morris Heiprin Gail HiliSon Bob Hope. Michael Todd Milly Vitale Max E. Youngstein N. Y. to L. A. Moi:t Blumenstock Ava Gardner Mary Jane Higby George Jessel Milton R, Rackipll Sam Shayon James Starbuck Sylvester L. Weaver While Paramount likely 'will make 20 features next year, thus maintaining the pace of the past few years, there’s no actual, nu- merical limit bn its output, states Don Hartman, exec producer. “We’re instructed by Mr. Balaban (Barney Balaban, Par president) te make as many good filriis as can,” he added. ' Hartman’s main point, which is echoed by ejceca on other major lots, i the company faces a re- striction imposed by the absence of more properties which can be ‘turned out as money-makers. He emphasized there’s little chancls that the -production sited will fall below the level of 20 because that number is needed to absorb studie (Continued on page 62) L. A. to N. Y. Ed Alperson Hall Bartlett Fred; Brisson Corinne Galvet Linda Christian Herriian Cohen "Gary Cooper Pat Crowley Jerry, Devine Margaret Ettinger' Eddie Fisher Nina Foch Walt Framer Oscar Hammerstein 2d $kippy Homeier Bob Hope Warren.Hull Jennifer Jones Eva LeGalliene Alicia Markova Tyrone Power Thelma Ritter Dore Schary Harry Selpel George Skouras Alfred H. T^mari Evelyn Varden Bill Walters Bob Waterfield John Williams Cecil Wilson* Douglas T. Yates