Variety (December 1954)

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PICTURES 17 Wednesday, Decwnber 29, 1954 ‘You’ve Learned to Be Honest’ Crack Peppers Mpls. Exhib-ENstrib Trial Minneapolis, Dec. 28. Sharp and vitriolic interchanges Hurinn the cross-examination of- Sidney Volk, one of the plaintiffs, and further disclosures regarding Minneapolis theatres' grosses and film rentals have been enlivening the progress of Volk Bros.’ anti- trust conspiracy suit against major distributors, the Minnesota Amuse- ment Co. (United Paramount Thea- tres) and RKO Theatres. Sidney and William Volk are seeking approximately $1,500,000 damages because of alleged clear- ance discrimination against their comparatively new and beautiful $500,000 suburban Terrace. They’re also asking the court to order dis- tributors to release pictures to the theatre one day after the downtown firstrrn’s end at the initial house played or to give it a moveover position. This would be instead of the present 28 days, the earliest subsequent run availability which now is shared with 10 other local theatres. Tempers flared when Mandt Tor- rison and David Shearer of defense counsel interjected into the pro- ceedings during Sidney Volk’s cross-examination the fact that the Volk Bros, had settled out of court by a cash payment and with notes, the last of which was recently re- deemed. a major distributors’ suit charging underreporting percent- age pictures’ grosses by three other of their local theatres. Lee Loevenger, the plaintiffs’ at- torney. objected strenuously to ref- erence to this past conflict on the grounds that it hadn’t been ex- humed in the defendants’ answer to the complaint or in the pre-trial examinations of the plaintiffs and that it was immaterial to the pres- ent action. / However, Shearer and Torrison argued that the alleged fraud and deceit involved in the percentage suits concerned the witness’s credi- bility and the question whether Volk Bros, are “good” customers of the distributors. Defense lawyers also pointed out that the major film companies' per- centage suits against the Volk Bros, had caused the latter to institute a counter action accusing the dis- tributors of virtually the same anti- trust law violations cited in the present litigation. Inasmuch as the other suits were settled with preju- dice by the Volks it is not valid for them to revive the accusations now, the attorneys argued. ‘Good’ Customer Lnder the vigorous cross-exam- ination, Sidney Volk’s recollections about the percentage suits proved extremely vague as he replied “they happened a long time ago” and long 'before the Terrace opened. He didn’t feel that the distributors would be influenced in negotiating runs with an exhibitor “ he was or wasn’t considered a good ’ customer and he wasn’t cer- tain what the term “good” meant in this connection. * He further testified that, any- "ays, “chiseling” no longer occurs and is now impossible in view of the manner in wnich distributors are checking the theatres’ box- offices. W hen Torrison then cut in with Dh. you’ve learned tb be honest all right,” Loevenger leapt to his leet angrily and objected heatedly and strenuous* to the statement. rhe defense counsel might have told the court that the film com- panies have learned to be honest, a tiling they were taught by the courts consent decree and court decisions outlawing their trade piactices,” barked Loevenger sar- castically. * Judge G. H. Nord-bye ruled that the percentage suits’ bearing on the present action was to be limited in scope. A* tbe Terr ace “the nation’s Sidney Volk testu Y!? l u at prior t0 and after its open- uin ^ ad t r i ed repeatedly and !,a°u U L success t0 obtain an earlier ;? dbett er run for it. He said that pp.«°lI S ^ dlstr * ct and br anch mana- fu « ad * vi,lted U and agreed that of ppen ® r appointments and type nLT ra ,0n entitled it to better npialli? u lme tban °tber inferior neighborhood houses *i ,,om « Office Negative ays ’ bowever . Volk testified, espouses from the home office 0n ne Kative, although at least Dp o°?u Pa ny intimated it would UvoK U * the J errace to bid competi- y for first runs. He was in- Sxhibitor loodar Trueman T. Rembusch hopes that Maybe ’55 Will Bail Vs Out an Interesting editorial featnre In the 49th Anniversary Number of OUT NEXT W EEK formed generally, he said, that downtown firstrun theatres, pos- sessing larger grossing potentials and chalking up bigger grosses and paying the bulk of film rentals, were entitled to at least 28 days protection. Also, he was told by its distributors they’d invite law suits if they gave the Terrace pref- erential playing time over the other 28-day houses in different sections of the city. Volk testified that, playing 28 days after dowmtown and day and date with up to 10 other outlying houses, the Terrace could not op- erate on a solid and sufficient profit basis. He told how he tried to buy “Genevieve” when the Terrace needed a picture badly and "Uni- versal couldn’t find a home for it, but the company’s branch manager told him he was “sorry,” but he couldn’t sell it at that time. He also failed in attempts to negoti- ate for moveovers to the Terrace of “The Magnificent Obsession” and “The Glenn Miller Story” af- ter long downtown firstruns and was turned down. He^aid he even failed to get “Julius Caesar” and some other pictures like “The Robe” for the Terrace on its regu- lar 28-day availability and he still hasn’t been able to book “Julius Caesar” although it played down- town more than a year ago and he has offered the same 50% that the loop house paid. According to Volk, whereas the downtown firstrun RKO Pan bought “Springfield Rifle” flat for $375 flat rental, playing it a week, the Terrace, playing it three days day and date with a number of other neighborhood theatres, was charged 30% and the distributor received $480 rental. Numerous other occasions when the Terrace* outgrossed and paid larger rentals than the city’s only two moveover firstrun theatres, both located downtown and labeled inferior physically to the 1,300-seat Ter- race, were cited. It was claimed by Volk that these loop moveover houses’ per- centage terms run from 15% to 24% generally, compared to the 30% to 50% paid by the Terrace playing the pictures later and day and date with other neighborhood houses. Volk said an offer of a $1,500 guarantee against 50% for a week’s run at the Terrace was turned down in the case of “Stalag 17” and the picture, instead, went to a moeover loop house at 20%. Realtor Testifies A. D. Strong, a realtor, testified that the Volks had listed the Ter- race with him for sale, but he had pointed out to them that the pur- chase price would be influenced mainly by the theatre’s earning ability and because this was small he doubted if he could get a buyer for $250,000, although the invest- ment was in excess of $500,000. Strong said that the earnings’ report furnished to him by the Volks showed that in its first year (eight months) the Terrace suffer- •ed a small deficit and that that its net earnings were only $7,000 and $10,000 for its second and third years, respectively, with no sala- ries charged against it by either of the Volk Bros, who are devot- ing all of their time to operating it and three other local neighbor- hood houses. It’s now in its fourth year. The court sustained an ob- jection to a question asked Strong as to whether the Terrace could not earn substantially more if it had a better run. It’s expected the trial may con- sume another week or longer. Bull Market Unabated at Year End; Film and Radio Shares Booming Schine Wives Paid By Hildamart; One Acted As Film Previewer Buffalo, Dec. 28. Wives of J. Myer Schine and. Louis W. Schine were revealed as salaried employees of both Schine Chain Theatres and Hildamart Cor- poration in the Federal contempt of court proceeding against Schine and other defendants here this week. Hildegarde F. Schine, wife of J. Myer Schine, received pay as an interior decorator consultant for Hildamart operate^ hotels while Martha R. Schine, wife of Louis W. Schine, was paid to review screenings of pictures to be used in Schine theatres. Both women, with all of the Schine children, own the stock of Hildamart Corp.^ It is the Government contention that Hildamart was an instrumen- tality of the Schine Chain Thea- tres involved in a conspiracy to de- feat the 1949 court decree order- ing disposition of Schine theatres and cessation of monopolistic prac- tices. Testimony aiso revealed that Schine Chain Theatres and Hilda- mart had accounts on the books of each showing transfers from one to the other. Allied Warning Continued from page 4 gates, he pointed out, did not give the board an unqualified mandate to have the bill introduced and press for its passage. According to Myers, the conven- tion did two things. It commended the board for its activities in fight- ing high film rentals and approved the draft of the bill and requested the board “in its discretion” to seek enactment of the bill “unless, during the three months that will elapse before the next Congress, the board (again) in its discretion, shall conclude that conditions in the industry have so changed as to make resort to legislation unnec- essary.” Myersr also stressed that the con- vention approved “keeping the door open” for the reception and consideration of any proposals the film companies may make to im- prove conditions. The Allied general counsel depre- cated the many polls and inter- views condemning the idea of Gov- ernment regulation, noting that “the important counting of noses will come when, if ever, the Allied board decides that Government regulation is essential to the pres- ervation of theatres.” James R. Grainger INI No Breach Between ‘ Sane 9 Exhibs and Distribs * * * a bright editorial feature in tha 49th Anniversary Number of U&KIEfY OUT NEXT WEEK Lansing Foundation s \% Of Cinerama Boxoffice Again Unchallenged Stockholders of Cinerama Pro- ductions Corp. for two years in a row failed to question the man- agement on the deal w'hich gives the Lansing Foundation 1% of the boxoffice receipts, excluding ad- mission taxes, of all theatres for the life of the contract with Stan- ley Warner. Payment to the Foundation Is currently being made by SW for the account of Cinerama Produc- tions, and the amount so advanced is to be recovered by SW from Cinerama Productions' share of future theatres income. The 1% of the receipts deal stems from an arrangement made July 3, 1953 when the Lansing Foundation guaranteed repayment of a $1,000,000 loan made by SW to Cinerama Productions. The loan had been repaid by Dec., 1953, but Lansing’s 1% out of Cinerama Productions’ cut con- tinues unchanged. David G. Baird, a director and chairman of the finance committee of Stanley Warner Corp., is presi- dent of the Lansing Foundation, a tax-exempt philanthropic organiza- tion. A SW proxy statement noted that “Mr. Baird has stated that he has no financial interest in the Lansing Foundation Inc. The Lansing Foundation, Inc. owns of record and beneficially 61,448 shares of capital stock of the (Stanley Warner) Corporation.” | By MIKE WEAR Although holding near the best prices of the year recently, the Amusement Group began reflecting anticipated yearend upbeat in busi- ness at a hot clip early In last week’s abbreviated stock market session. Where normally there often is tax selling in Wall Street in December, this year shaAs roared ahead after brief profit- taking early in the four-day week (market was closed Dec. 24). Result is that two radio shares and four film theatre stocks regis- tered new 1954 highs. And many others came close to old peak quo- tations. There was hardly a stock in the amusement division which did not sport a gain, numerous be- ing up a point or better. Traders got busy with Paramount Pictures early, and shoved it to a ’54 high of 39. The shares closed at 38%, virtually on top, for a net gain of 2% on the session. Loew’s also was active on great volume around midweek, with the shares Reaching new high ground this year at 19 3 4. The issue advanced 1 % points net, greatest gain in many weeks. Both RKO Pictures and RKO Theatres also soared, both reaching new peaks for 1954. Each issue ad- vanced 50c net. RKO Pix hit a new high at 8% while RKO Theatres went to a fresh peak of 10%. ABC-Paramount Theatres trav- eled around the highest level of the year, to wind up at 25% as against the ’54 high of 24%. It was up fractionally. Columbia Pictures was in like category, hovering around the top quotation of the year to finish at 33% as compared to the high of 33%. National Theatres fol- lowed a similar pattern, winding at 9%, up nearly a point, and only 37% away from the best price of the year. Universal common also was ac- tively higher, boasting a gain of 1%, to finish at 31%, near the best 1954 price. Decca also held even to better, with an advance of 50c to 16%; 20th-Fox was up 75c to 28%. Year’s high is 29%. CBS Class A shares and the “B” stock both wound up at 86. Each registered new peaks for the year, the “A” stock going to 88% and the latter to 88. General Precision Equipment held around recent lev- els at 49. RCA was in like category, to gain nearly a point at 37%. Skiatron held its recent gains to finish with an “ask” price of 3%c. i Amusement Stock Quotations (1V.Y. Stock Exchange) For W'eek Ending Tuesday (28) ^ ^ 1954 Weekly Vol. Weekly Weekly Tues. Change American Slock Exchange Over-the-Counter Securities (Quotations furnished by Dreyfus A Co. I * Actual volume. Jones on Shorls SSS Continued .from page 7 attention to a forthcoming C’Scope film is running into physical prob- lems according to Jones, since the projectionist has to change the lens, etc. Coupling the trailer with a short simplifies the switch. Control of 20th’s shorts produc- tion, at one time split between N. Y. and the Coast, has now been returned to N. Y. mostly due to cost reasons. When the shorts were lensed under the aegis of the studio, they ran budgets up to $70,000. Subjects now cost any- where up to $20,000. 20th has skedded nine Cinema- Scope shorts for release between Jan. and April, 1955, Jones said. All are tinters. In all, 20th will have 20 C-6cope reelers in 1955, in ad- dition to 26 Terrytoons. Release rate of the C-Scopers will be two a month. New York Theatres RADIO CITY MUSIC DILI Rock.frll.r Center “DEEP IN MY HEART" y In OMen COLOR atarH** mi mate mum FERRER • 0BER0R • TRAUBEL kTHK Silver Of alk PARAMOUNT