Variety (October 1954)

Wednesday* October 2(1, 1954 Swayed With The' Speeches The allegiance of. the members at Allied States Assn.’s 25th anni convention in Milwaukee last week appeared to shift with each new speaker, particularly on the subject of Government regulation of the industry. Strong appeals by William C. Gehring, 20th-Fox assistant general sales manager, and William F. Rodgers, Allied Artists sales consultant, against seeking Government regulation were applauded as loudly as the exhortations for it by the militant Allied leaders. Gehring, who substituted, for ailing 20th sales chief A1 Lichtman, made an impassioriated plea “to try, try, and try again” before ap- pealing to outside sources. ■ ‘‘No pne in the Government or elsewhere can handle our-, problems as well as we he said. Rodgers echoed this theme, warning'that.‘‘once the Government gets in, it will never get out.” Both Gehring and Rodgers urged the Alliedites to reconsider arbitration. Won't Have Any Business To Discuss Allied leaders, in answering the appeals for new talks with the dis- tribs, took a “what’s the use” attitudes Horace Adams of Ohio said the time for-discussion was “getting shorter and shorter. If we con- tinue to discuss, we won’t have a business to discuss.” Asked Wilbur Shaper, prexy of New Jersey Allied: “What dp we do after we’ve been rebuffed by some sales managers as we Were in their offices in August? Do you talk some more after you’ve been kicked in the teeth?” Hear Other Fellows Not all exhibitor woes stem from the sales policies of the distribs. That’s the view obtained in private conversations with many smalltown operators. And business.for many of them has shown a pickup in recent months. Attitude of many was: “I know it’s tough for some guys, but it hasn’t been so bad for me. I haven’t been having any troubles with the film companies, I haven’t bought a percentage picture in years.” TV (When New) Still Crimps Biz Some theatremen were stilt encountering competition from tele- vision, particularly in areas where stations had recently opened. How- ever, in territories where tv had been around for a number of years, the patrons Were beginning to return to the theatres. In some sections of the midwest, sports loomed as hefty opposition, especially baseball- crazy Milwaukee and footbali-happy Green Bay, Wis. Had Makelim Raises Eyebrows Speech to Allied convention by Hal R. Makelim had theatremen wondering whether t^e producer was giving a product story or making a stereotyped Fourth 6f July oration. Except for thanking, exhibs for their support and noting that his 12 pix would all be made in U. S., Makelim said nothing about his production plans. He read a letter he wrote Allied leaders. Commented one tlteatreman: “What was all the flag waving about?” Charles Boasberg’s Plea Charles Boasberg, sales topper of Distributors Corp. of America, in outlining his company’s production plans, urged Alliedites to purchase stock, in the company. He pointed out that exhibs such as Mitchell Wolf son, Joseph Seider, Samuel Rinzler, Morton Thalheimer, Julius Gordon and many others were already stockholders. He said DC A Was capitalized at $1,000,000. consisting of both common and 6% cumulative preferred shares. Seider, he noted, would be a director of the Fred Schwartz firm. Popular Bill JEtodgers Reception given William F. Rodgers, former Metro sales chief, was an eyeopener. After a business meeting, many smalltown theatremen surged to the platform to introduce themselves to Rodgers and to thank him for his fair treatment of their problems during his. tenure as the M-G distribution chief. -Allied Stays Wth COMPO Allied has renewed its membership in .the Council of Motion Picture Organizations for another year. Wilbui* Snaper, who was named Al- lied's rep on the COMPO triumvirate, will continue in the post. Columbia Still Advertises Columbia, apparently turned the; other cheek to Allied’s attack-on the company and its sales manager, Abe Montague. The sharp blast did not prevent Col from taking a two-page spread in the official convention journal. The ad copy read; “With a deep sense of respon- sibility to our customers, our stockholders and our industry—and with gratitude to those members of Allied whose friendship and constancy has been unflaggering, we face the challenge of 1955 with the con- tinuing desire to deal in equity and fairness with every exhibitor large or small;” Comes. 1955, It’ll Be Chicago Allied's 1955 convention is scheduled for the Morrison Hotel, Chicago, Nov.. 5-9. There will be a drive-in convention and board meeting at the Chase Hotel, St. Louis, early in February. Total registration at the convention was about 600, said to be the, biggest, in Allied’s history, according to, prexy Ben Marcus. ‘Miller’ After Lame Start Becomes U’s Top Coin in .Frankfurt, Oct. 19. “The Glenn Miller Story,” which got off to a, slow start in Germany With: a fouled-up premiere in Wiesbaden (With thfr Air Force not providing the promised coopera- tion) and with only seven initial bookings, now has 20 prints out in Germany' and Universal here is. crying for more. Film is now the company’s biggest grosser in Ger- fi}&ny since the war at the key cities of Stuttgart, Hanover, Ham- burg and Berlin. 'Still to play is the Gloria (first- run) in Berlin in January, followed with playdates in ^100 of Berlin’s second-runners out of the town's total of 230 theatres* • ’ • ‘ Chicago, Oct, 19. ; A; sign of vastly improved times in, picture business is the reopen- ing of four theatres here, most of Which had been knocked out a number of years ago in the early rounds of television, Essex, closed only two years, opened last Friday (8) with VSeveri. Deadly Sins,” while Calo gets set to relight on Oct. 22 with “Dragnet.” The 400, a 732-seater which has been out of action since V 1950, is being refurbished for re- opening this fall. All three houses are on Chicago's northside. Oh the westside; the 950-seat Armitage is propping to join the pix sweepstake again this fall after having been inactive since May 1951. Although Allied States Assn;, at its annual convention in Milwaukee last Week,, overwhelmingly adopted a resolution approving general counsel Abram F. Myers’ draft of, a bill providing for Government regulation of the industry, there was strong evidence that the meas- ure was intended as; a “weapon” and efforts to introduce it in Con- gress will be taken only as a “last resort.” Both leaders of Allied and rank- and-file: members expressed little enthusiasm for “Government mess- ing in my business” and there were indications that renewed efforts would be . made to reach an agree- ment with distribs on the subject of rental terms and trade practices. Even - Bennie Berger, prexy. of North Central Allied and Origina- tor of the government regulation idea, said “we don’t really want the. Government in.” ^ Berger, in a hotel lobby talk With reporters,. said a new effort will be be made to meet with film company presidents. He said Allied had requested William F. Rodgers, [.former Metro distrib chief and now Allied Artists sales consultant, to drop the idea with the film com- pany toppers. Asked why the exhib org not. make a direct approach to men such as Nicholas Sclienck, Barney Balaban, and Spyros Skouras, Berger said it was tried a year ago but without success. Rodgers, who is respected by Allied, is felt to be the man who can open the door. His long; asso- ciation with ' Metro placed him in a position of close relationship with the film company toppers. In addition, he has the esteem and respect of both exhibition and distribution. \ Still a Loophole Resolution, passed by Allied in Milwaukee, provides for an out, via a proviso that if conditions improve within three months, the board can withdraw the legislation proposal. If the board decides at its annual meeting in February that the legislation is necessary, it’ll push for introduction of the irieas- use in Congress. Allied members, by approving the resolution, are pledged tp “do all in bur power to secure the bill’s enactment” when the board gives the greenlight. Despite the overwhelming okay, it took two votes to pump up the sort of enthusia'sm the Allied lead- ers felt' was necessary. At first introduction of the resolution by Col. H. A. C61C, of'Texas, the mem- bers chorused tired “ayes” with a sprinkling of “nays.” At this point, several leaders contended that prexy Ben Marcus had not fol- lowed the proper paiiiamentary procedure in neglecting to ask for floor discussion, The resolution was then recon- sidered. Impassioned speeches coupled with denunciations of the film companies were made by Horace Adams, Ohio Allied; True- man Rembusch, Indiana; Beverly Miller, Kansas-Missouri Allied; A1 Myrick, Iowa-Nebraska Allied; Jack Farr, Texas Allied, Irving Dollin- ger, New Jersey Allied; and Berger. It was stressed many times that “we all dislike Government regula- tion, but it’s necessary to preserve the smalltown theatres.” With emotions thus, churned up, second count by a standup vote was almost unanimous. No one spoke against the bill on the convention floor, although in private conversations many small exhibitors said they were opposed to Government regulation of any kind for any purpose. Asked why they didn’t get up on the floor to say, so, one smalltown theatremen said: “What chance have you got if you haven’t a title in the organi- zation?” It was reiterated many times privately that the bill \vas merely a “big stick” and there were few who felt it had a chance of. enactment Many doubted that it would ever be introduced in ; Congress. Runt From ‘Wont* (Three) Homeoffices Remote to Field ANTITRUST SUIT STARTS Hawaii Theatre, L.A. Seeking; $5,223,126 Los Angeles, Oct. 19. . Trial of the Hawaii.Theatre's 223,126 anti-trust suit against ten defendants opened before Judge Harry iC. Wqstover in Federal Court. Complaint the theatre was barred from first-run product, Case is expected to last about eight weeks; Defendants are 20th-Fox, Na- tional Theatres, Fox W^sl Coast, Loew’s, Warners, RKO, Paramount, Columbia, Uniyersal-Ihternational and United Artists. There’seems to be a strong dif- ference of opinion whether or not I- Columbia sales chief Abe Mon- tagUe officially accepted Allied States Assn.’ bid to speak at its .Milwaukee ' convention last week. According: to a Col spokesman in New York, Montague never accept- ed Allied’s invitation. However, he was listed- as a speaker in the of- ficial convention ‘program arid Al- lied prexy Ben Marcus assured the tradepress several times that he had spoken to Montague by tele- phone and the Col distrib chief had assured him he Would make an appearance. : When Montague failed to show to discuss Col’s sales policies, he was accused of “hiding behind a telegram.” He was denounced as “arrogant” and Alliedites expressed “amazement and anger at the tone of the telegram,” termed the most “insulting” ever to come before an Allied convention. & Two Allied directors — Horace Adams of Ohio and Irving Dollirig- er of New Jersey-^announCed on the floor that they would not buy Columbia product as long as the. company refused to deal with ex- hibs in a friendly mariner, Hint was also dropped that other exhibs at the meeting “know what to do,” Montague, in his wire, sent re- grets that he couldn't attend be- cause Col’s legal department had set up a date With attorneys from out of town. He said he Would like to have been at the meeting to give “my side” which has been "so un- fairly presented to the industry” arid that because there were , basic differences on sales policy he didn’t believe “ganging- up, boy- cotting, or picketing is the proper .business method for any group in our industry.” He reminded exhibs “that every customer - has. found and Will find the door open” at Columbia. Columbia, Warner Bros, arid Paramount-were cited at the Allied convention in Milwaukee' last week as “the worst companies to deal with.” Appraisal was made, in a report of the various film clinics. Submitted verbally at an open meeting by S. J. Goldberg*, prexy of Wisconsin, Allied, the report ga.ve a blow-by-blow description of the “problems encountered” in dealing with Col, WB, Par, Metro, 20th-Fox and Universal. Metro was named the “fairest” and Col the “most unpopular,” with the other companies falling in in-be- tween categories. A In a company by company break- down, the highlights of the com- plaints were: 20th: Policies set by sales chief Al Lichtman are delayed in get- ting down to branch managers in the field. (William C. Gehring, 20th. assistant general sales man- ager, told the convention steps were being taken to remedy this situation), Very few smalltow had installed Cinemascope because the high terms for the pictures did not give them enough, margin to liquidate the costs and meet other operating costs. Because of break- down in communications,' many theatres grossing under $1,000 still couldn't buy C’Scope pix flat as announced by Licthman. Beef about 20th’s policy on selling two or three C’ScOpers On percentage to determine “fair” flat rentals on future product. Company has mor “terms later” deals than any of the other pix suppliers. 20th, however, is working out its availabilities bet- ter than the other companies and is clearing up the differences stem- ming from stereo and optical sound. Metro: Termed , “fairest com- pany” in the business, although communications have broken down in some areas, with beefs mainly from theatres in cities of 20,000 or under. Squawk is. that M-*! is plac- ing inferior pix in top brackets and adjustments are getting harder to make. Universal: Showing less adher- ence to national policy, than any other company by making different deals in different territories. Most complaints from Memphis, Des Moines, arid Qmaha zones. Paramount: Branded as showing “utter disregard for the smalltown exhibitor” by demanding; a 25% im crease in flat rentals beginning with “Sabrina” and a 40% floor on percentage deals. WB: Next to Columbia, the “most unpopular company.” Tough to make deals with arid in getting adjustments, especially for drive- ins. Buyers resisting deals on WB C’Scopers . and “Dragnet.” Columbia: Deals so oppressive “that many theatres have not bought Columbia product for some time.” . Col, H, A', Cole, Allied director from Texas, suggested that copies of the reports be sent to the sales toppers of each company discussed. Via Payroll Deduction Hollywood, Oct. 19V Allied Artists has become the first film company to facilitate em- j ployees’ purchase of stock on the N, Y. Stock, Exchange via pay- U’s Weitman to Albany ; Up Ehrlichmaix In D.C. ,, J v Norman Weitman, Universal ntrf °h S * : V a*a- sales manager ; in the : Washington •! exchange, has been named the com- Mei * pariy’s branch manager in Albany, : Fe " n f- r ^ Beane, feeding Leo Or^id who * ‘ v for investment in any stock issue At the same time, Charles .Jv- listed, the investment amount to Feldman, U v.p. and general sales . range from $40 to $999 either manager, named, Isidore Ehrlich- ‘ monthly or quarterly. Some months... man, a salesman in Washington to j ago the Exchange launched a pro- the post of sales manager to re- j gram of inviting, stock buys on an place Weitman. f an installment basis as a means of Latter joined U in 1947, starting [ widening public interest in capital in the ad-pub department in ,N.Y. {'investment. The investor can deal A year later, he went to the Phila* ; directly with a brokerage house, delphia branch as a student book- {.such as Merrill Lyneh, or through er. He became Washington sales employers operating payroll de- J manager in mid-1953. I duction. plans. j ■> •« i