Boxoffice-Febuary.07.1948

: February
i
COURT MAY TOSS OUT BIDDING.
CAROLINA EXHIBITORS TOLD
Herman Levy Predicates
This View on United
Opposition to Plan
By J,
CHARLOTTE, N. C.—Because all exhibitor
organizations, some defendants in the
antitrust suit and also the attorney general
are opposed to competitive bidding,
Herman Levy, general counsel of the TOA,
strongly expects the supreme court to
throw it out when it hands down a decision
on the appeals.
This was one of the highlights of his speech
before the Tlieatre Owners of North and
M. JERAULD
South Carolina at their 36th annual convention
here in the Hotel Charlotte.
HAZARDOUS TO PREDICT
He pointed out, however, that it was impossible
to predict how the minds of judges
not familiar with the business will react in
a situation of this kind. In the Jackson Park
case in Chicago, he said, the court had ruled
in favor of competitive bidding, and the supreme
court, which now has the appeals in
the antitrust case before it. refused to hear
an appeal. This was. In effect, approval of
the
plan.
It might be. Levy said, that the supreme
court judges had in mind that this problem
would be settled by the all-industry case.
Levy also suggested the possibility that the
court might send the case back to the thi-eejudge
court in New York for the purpose of
permitting the litigants to work out a new
consent decree.
The three-judge court decree restricted
competition rather than broadened it. he
declared.
"Whatever the decision, and of this you
may be certain," he declared, "it will be
more difficult for you to run your business
after the decision is rendered than it is right
now."
The Jackson Park case, he said, is now
the law of the land and its effects will spread.
It not only approved competitive bidding: it
also introduced limitation of runs and restricted
double features under certain circumstances.
WHO WILL FOOT THE BILL?
"Because cases like the Jackson Park case
appear, on paper, of benefit to exhibitors and
of detriment to distributors," he continued,
"they become a source of ecstatic pleasure,
at least in certain quarters. The philosophy
that what is good for exhibitors must be bad
for distributors and, vice versa, is unsound
and dangerous. Many times the Implications
and ramifications of what appears to be a
victory for exhibition in a particular case
develops into a detriment for exhibition in
general.
"Who do you think foots the bill for litigation,
running into millions annually? It is
passed on to exhibitors. I am not asking
exhibitors to forego litigation when it is
necessary. Sometimes there is no alternative.
There are. however, many wrongs, illnesses
and problems on the sides of both exhibition
and distribution, which cannot profitably be
Attending the 36th annual convention of North and South Carolina Theatre
Owners at Charlotte, February 1-3, are, left to right: Ted Gamble, president of Theatre
Owners of America; Ben Strozier, retiring president of North and South Carolina
Theatre Owners; Sam Shain, director of public relations, 20th-Fox, and Roy Smart,
Carolina exhibitor.
solved by litigation although litigation is resorted
to. Yet never in the history of the
industry have the representatives of both
sides taken time off to sit down with a conscientious
desire and effort, by conciliation
and round-table discussion, to eliminate those
obstacles, problems, wrongs and Illnesses which
are possible of amicable adjustment. It is our
hope that with the rendering of the decision
in the supreme court, whatever that may be,
exhibitor's effort to accomplish an open
forum for the industry will meet with greater
success than hitherto. Along that line lies a
possibility of a better, more harmonious industry.
Along the other line lies litigation,
more litigation and still more litigation. The
choice, it seems to me, is as simple as all
that."
Levy said the decision in the Washington
state court ruling that Ascap had not complied
with the requirements for registration
of its copyright holdings did not settle anything.
It is possible for Ascap to file a new list
to properly comply with the law, to reassign
to
the copyi-ight owners their individual
copyrights and to file individual suits for
non-payment of fees.
"Some good progress has been made in :v.;'
Advanced Admissions
Get Carolinas 'No'
CHARLOTTE, N. C.—Lively discussion
of advanced admission attractions featured
the afternoon session of the second
day of the 36th annual convention of the
Theatre Owners of North and South Carolina.
The opposition to the spread of this
policy was unanimous. A resolution on
the subject said "in thp opinion of this
association the expansion of such a policy
is not in keeping with the interest of
the public cr the industry." The hope was
expressed that "producers will refrain
hereafter from enforcing such a policy."
negotiations with Ascap," he said. "'Any
compromise ultimately to be accepted for
recommendation to our membership will have
to be fair and reasonable for all theatres
the kind of compromise that will make it
unprofitable to pursue any other remedy.
"While compromise, as already explained
to you, appears to be the most realistic and
practical approach, it will have to be a fair
and reasonable compromise or we shall fight
Ascap on all fronts with all weapons at our
command."
Robert W. Coyne, executive director of the
TOA, was the first speaker on the formal
program. He stirred applause by saying thar,
the south had been the inspiration for both
the ATA and TOA. He also stated that the
negotiations with Ascap had delayed the imposition
of new rates for five and one-halt
months and that he hoped for a settlement
that would please most exhibitors.
SEE 185,000 16mm PROJECTORS
In discussing the 16mnr problem, he said
that before the war there were 40,000 16mm
projectors. Last year, he said, there were
60,000 and now there are 100,000. Next year,
he predicted, 185,000 projectors will be manufactured.
"Are we justified In opposing this Industry?"
he asked. "If it should start producing
its own entertainment pictures, we would
be justified. It would be competition. Our
present problem is the spread of old pictu:-es
into this field. We have received promises
of cooperation from 20th-Fox and RKO. but
have had no success with United World, subsidiary
of Universal."
The opening session of the two-day con-
\'ention was attended by about 200 members.
Snow and sleet all over the region held down
attendance. George Carpenter was elected
president to .=ucceed Ben L. Strozier.
Walter Griffith reported the organization
now has 418 members. Regional distributor
and equipment representatives were present.
Sam Shain. director of exhibitor and public
relations for the 20th-Fox distribution department,
attended, and David Palfreyman of
Washington represented the MPAA.
BOXOFnCE :
7, 1948 11