Variety (December 1954)

Wednesday, December I y 1954 PICTURES 11 Hollywood, Nov/ 30'. . Screen Directors^ Guild apd the Assn, of Motion Picture ^Pro- ducers signed a hew*'working agreement calling for a pension'plan in addition to substantial salary increases. Contract goes into ef- fect Jan. 2 and extends through March 12^ 1958. Minimum pay for ’ directors under the new pact will be increased from $550 to $600 a week; for freelance first assistant directors, $300 to $335] for second assistant directors, $170 to $190. Flight pay. for assistants while photographing is upped to $36.59 per flight, with a maximum of $73.15 per day. Underwater pay is $22 per dive, with maximum of $44 per day for assistants wear- ing diving gear/ Negotiations for the directors were carried out by George Sidney, Fred Zinneman, George Stevens, Rouben Mamoulian, H. C. Potter, Willis Goldbeck, John Ford, George Marshall, King Vidor, Emmett Emerson, Delmar Daves, Dick Moder, Frank Bauer; Mark Sandrich Jr., Mabel Walker Willebrandt, Morrie Abrams and Joe Youngerman. Representing the producers were Charles Boren, Y. Frank Free- man. E. L. DePattie, Ben Kahane, E. J. Maiinix, Howard McDonell, Fred S/ Meyer^ C. J, Tevlin, Morris Weiner, At Chamle, Maurice Benjamin, L. K, Sidney and Mendel Silberberg. Arthur Loew Guesses Raps Come From People At Cocktail Parties—Mari in Street Loves IJ.S. Films By HY HOLI4NGER Complaints on the content of American Films, particularly oyer- stressing of violence, are not com- ing from the man in the street in foreign countries, according to Arthur M. Loew, president of Loew’s International; Just : back from .five weeks in Europe, Loew. charged the beefs stem '‘from" people Who never see a film.” “They originate at cocktail par- ties, he declared. “IPs the work, of people commonly known as snobs. It's a popular pastime to rap something and American films seem to be a target. The man in the street finds nothing wrong with our pictures.” The iron curtain countries, Loew reported, are still trying to move in with their pictures. “They’re getting their pictures shown,” he said, “but* they’re not popular. They contain tOo much obvious propaganda.” . As a. contrast, he noted that although U. S. produc- ers do not make films for propa- ganda purposes, there’s plenty in them for America.” Overseas biz for Loew’s this year according to the international chief, will run about 15% ahead of 1953. Unlike U. S. exhibs, for- eign theatremeri are not experi- encing a product shortage, Loew noted. “They have their own na- tional output to draw on as well as the product of other foi'eign. countries. American pictures are still the most popular except per-- haps ‘ one or two extremely chauvinistic countries. And then there’s always the desire of some governments to sponsor their own product in order to maintain a favorable dollar exchange.”* No Chill Problems Commenting on the problem of getting coin out of /foreign coun- tries, Loew said he was “never pessimistic about the unfreezing of money. Eventually we’ll get it out. As the economy and dollar position gets better in various countries, there’li be less restric- tions.” Loew’s International, which runs 42 theatres in different foreign countries, faces the same problems as. distributors in getting coin oiit from theater operations.. The accumulation of frozen money 1 In Argentina .prompted Loew’s to build a. new theatre in Buenos Aires. “After all,’’ the interna- tional topper asked, “what can we do with the pesos now?” Although there’s to chance of obtaining any of the profits from the operation at this time,: Loew is hopeful the ituation will change ih the future. Loew’s International, which has been the prime mover behind the introduction of the Perspecta stereophonic sound, system, < a pnrtly-pwned.project, has succeed- ed in Obtaining about i;206 instal- ls’ lions abroad, according to Loew. This"* is in contrast to only 300 Perspecta situations in the U. S. “Since this was a Loew’s Interna- tional project,” Loew said, “we grabbed all the integrators and sent them overseas.” In addition, he pointed out that many domestic situations had already installed magnetic stereophonic sound and weren't anxious to make additions at this time, He said he was hold- ing talks with production compa- nies to. convince them to use Perspecta optical soundtracks on their films; At the moment, it’s being used by Paramount, Metro; and Warner Bros, Mutual’s Feature Continued from page 7 tional support the producers will give the "picture. It’ll be backed by a saturation radio-tv campaign under the direction of Terry Tur- ner, GT’s specialist in the promo- tion of pictures via- radio^tv satu- rations. Turner developed this method while 'RKO’s exploitation chief, clicking most, successfully With the reissue of “King Kong.” In. addition to O’Neil and Tur- ner, the Boston trek was made by John Begley and Bob Mannby, both of the film division; Herb Rice, programming v.p., and Fred Zuzu- lo, publicity chief. The picture was screened at the luncheon meet- ing. Warner Bros/ recent Success with “Dragnet” prompted GT to undertake the “Gangbusters“ proj- ect. Its future release plans for the picture depend on the outcome of the New England bookings. If the picture* clicks, the company may follow with a series of “Gang- buster”' features. It is also plan- ning a vidpix series, but Won’t re- lease the films until the initial the- atrical booking “is completed; All-Industry S5555 - Continued, from page 7 a and.Cutting down the ^amount of litigation. However, Allied States Assn, has beien the bottleneck, re-, fusing to participate in an arbitra- tion system : that did not include film rentals. Meanwhile, it became increas- ingly evident that, the industry round-table- parley will not in- clude the company presidents, al- though one or two of them who headquarter .in . New York may be present, as window dressing. The sales managers will carry the load for the distribution side. Indica- tions are^4rhat the discussions will be general. When it comes to the question of terms for pictures, a big exhib beef, it v appears theatre- men will have to meet withr'Each individual sales manager sepa- rately. It’s, almost certain that the subject of film rentals will only be discussed , broadly, if at all, Dis- tribs have long maintained*-' that the price for pictures is solely a matter between the film company end each individual customer. / Film employees, not covered by pension arid welfare plans, are be- ginning a drive to -obtain these benefits. The pension or retirement fund, an Important development in American industry in recent years, I has made slow headway-in the film industry. Only tfiree companies— Loew’s, 20th-Fox, and RKO-^main- tain retirement plans for. their em- ployees. However, many film unions; have pushed the idea of a retire- ment fund and have succeeded ih_ getting them on the books. The current Campaign is being waged by unions whose members are not entitled to pension benefits. In upcoming negotiations between certain film unions and the film companies, the pension, plan will be high on the list of union de- mands and, in some cases, will, overshadow demands for increased wages. Spark for pension rights by employees not covered was touched off by the Coast, agreement which went into effect Oct. 24 and involves more than 40 unions and guilds and 200 employers. This pension scheme covers some 1,800 employees in the Hollywood motion picture industry. Agreement specifi- cally includes, member companies of the Assn, of Motion Picture Pro- ducers, the Society of Independent Motion Picture Producers, the In- dependent Motion Picture 'Produ- cers Assn., and the Alliance*of Tel- evision Film Producers; 1st Payment In 1960 Under the deal, both 'manage- ment and labor Will contribute alike to the pension fund, each paying in two cents ; for every “straight time” hour worked. The employers’ contributions are retro- active to Oct. 26, 1953, date the. negotiations began. - First pqssible payment under the plan would be Jan, 1, I960, to allow sufficient time for an adequate, fund to be established. The. payment would be. $20 per month. Before being eligible for collection, an employee must be 65 years old and have worked '20 “qualified” years in the industry. A “qualified” year is one in which the employee has worked, at least 400 straight time hours. Employees eligible for individu- al company retirement plans of Loew’s, 20th, and RKO may choose between the company and industry, pensions but. cannot benefit from both. Extent to which the pension idea, is gaining in various segments . of the industry was sharply pointed up last week when the Screen Di- rectors Guild reached an agree- ment with the major and indie film, companies, for a health and welfare fund and for a pension fund. Latter, similar to the general industry pian, is optional for di- rectors whose studios have their own pension fdhds. With, more and more Coast em- ployees receiving pension benefits, homeoffice and exchange staffers are spearheading moves for en- largement of the coverage. The subject has already come up in the current negotiations for. a new paet for exchange employees. The pension plans of Loew’s, *20th, and RKO are All non-con- tributory, with the film companies paying the entire.cost of, the plans through periodic payments to the (Continued on page 24) 20ih-Fox't. Ad-Pub Charles Einfeld details some of the now historic background of his CinemaScopo Selling (ob in a piece titled Miin Among the Anamorphs one of the rngny editorial features in Hie 49th Anniversary Number of P'SsaETY DUE SOON to PIMSTEIN-RKO SETTLE •! Fiduciary Charge Dismissed by - Judge Under Stipulation * ‘ • * v RKO Pictures’ suit against Harry Pimstein, former executive of ..the company, charging breach of fiduciary trust has been dls- ; missed in Federal District Court. The complaint was dismissed by I stipulation following an agreement, “on an amicable. basis” between Pimstein and RKO. The original, complaint charged that-Pimstein, while an employee of RKO, had given Albert A. List, now RKO Theatres board chair- man, confidential, information con- cerning the 1 theatre stock of Howard Hughes. List acquired the Hughes holdings, then being held in trust, and subsequently gained control of RKO Theatres. RKO Pictures filed suit against Pimstei after the latter, had started an action against List for reneging’ on payment for services rendered in connection with the stock purchase. This suit is still on the Federal Court calendar; Italo-Yank Pact asai Continued from page 3 from remittances due the MPEA member companies, for the five months ended Aug.. 31,1954. The new Italian film pact went into effect in August and the re- mittance “ceiling” doesn’t apply other than Under the basic formula whiclf allows transfer of 40% of the American earnings, the rest going into a special cinemato- graphic account where it’s avail: able for compensation deals. Under the original 1951 agree- ment, which last year was extended to Aug. 1954, only 37%% of the N. Y. share was available for re- mittance ’At . the official rate. After that deal had been signed, a “secret” letter, written by Giulio. Andreofti,. then Under Secretary of State of the Presidency of the Council of Ministers, came to light. It limited transfers under the 37%% to a maximum sum paid into the cinematographic accounts of the American companies for a three-year period preceding 1951. This, in effect, established a, ceil- ing on the basis of 1950 earnings. However, the Italians never did rpove to implement the ARdreotti letter until the last quarter*in the 1952- 53 agreement when they with- held $392,548, this representing the “excess” American earnings under the 37%% formula. Later on, the Italians agreed to free that coin, but warned it would be de- ducted before the close of the 1953- 54 extension of the pact. Negotiations were then initiated to seek a way of transferring the overage and-the Italians first as- sented to. 50% and then agreed to waiVe 60% of their claim. ' “For the first nine months of the 1953- 54 extension of the agree- ment; the .Americans applied for — and remitted —7 approximately $4,000,000. They have now applied for full transfer of their 37%% for the remaining five months of the period. However, the Italians will deduct at least $400,000 from that total, this representing 40% of their claim for* the entire agree- ment period back to 1951. American companies feel they aren’t really losing by this ar- rangement in that the $400,000 will be. available for compensation deals and thus are not lost to Hol- lywood. Adjustment will also finalize pay- ments to the Italians under the pact provision which, in 1953-54, gave the Italo industry 10% of the Americans N. Y. share as a subsidy- Latter has been discon- tinued under the new agreement which went into effect Sept/ 1, 1954- Buffalo, Nov. 301 Schine Theatres has requested' permission of U. S, District Court to dispose of 11 theatres; But this motion is vigorously opposed by the Dept, of Justice. .Houses are among those covered by the 1949 antitrust decree direct- ing Schine to dispose of 42 thea- tres. Criminal and civil contempt charges are now; pending here be- cause of Schine’s failure to comply with the provisions of the deci'ee. Trial' of the charges has been post- poned from day to day because of counsel’s engagements ini another court. Attorneys for Schine told Federal Judge John Knight that the 11. theatres had been closed for two years and were to be sold for non-theatrical use and never again could be operated for theatre pur- poses. He accused the government of knowledge of these facts and said that squads of FBI meii had been combing the country looking them over. Counsel for the government re- torted that he would show in the , contempt case; that a sale of the properties for theatrical purposes had been prevented as a result of the Schine group’s “own wrongful conduct” and declared, that they had frustrated past efforts of per- sons who wanted to buy the the- atres for theatrical . purposes. Asked by the judge Why the thea- tres had not been Sold before the contempt proceedings were started and how it was that the present of- fers developed: so suddenly, Schine counsel stated that the lack of of- fers and protracted negotiations with the Dept, of Justice had - slowed up the disposition and that Sbhine was now prepared to get rid of the houses “at a Very; sub- stantial loss—either by private sale or by public auction.” Later—Judge Knight has re- fused. Schine Theatres permission to sell two. theatres ' for nontheat- rical purposes but. has approved sale of a third house in Van Wert, .Ohio. Pinanski Gets a Watch Boston, Nov. 30- More than 100 New England pic industry execs attended a testi- , nrionial luncheon to Samuel Pinan- ski at the Hotel Statler last week. A “Surprise” affair, the luncheon was "in grateful appreciation of his unselfish and untiring efforts on behalf of the. industry, particular- ly for devoting his time and energy in the successful fight to repeal the admission tax.” Pinanski was presented with a wrist, watch. Lichtman . Continued from page 5 around your" members or exhibitors generally who try to buy pictures fiat rental for less than we can afford ta sell them. “It is quite possible some of our men have refused the sums offered as flat rentals in some situations. ‘■I would like you to let me know specifically which of your members have been refused by any of our men a deal where the flat rental terms were fair or reasonably fair. “I was under the impression you liad some respect for; our integrity and efficiency, and would know that if I made a statement publicly to the entire trade, that we would be willing to sell small towns flat rental, that we would certainly no- tify the men who are delegated to make such deals. “I am sure that you appreciate, E. D,, that talking in terms of gen- eralities gets no results for anyone and if you have any specific, com- plaints from* any of your members [ I will guarantee to give you prompt i action on such complaints.”