Boxoffice-May.15.1949

Exhibitors Get Fint-Hand ^^^^
Interpretation of Policy
NEW YORK—In their first meeting with
an exhibitor group since the 20th-Fox sales
policy was announced earlier in the week,
company executives told the New York ITOA
Thursday that the plan is in effect as of
this week and that the company will sell
on terms the exhibitor prefers in any type
of theatre.
Approximately 150 persons attended the
luncheon. There was considerable interest
in the meeting as it was the ITOA which
issued a blast against 20th-Fox some weeks
ago when the company first began its series
of exhibitor meetings across the country.
THINKS TLAN WILL WORK'
Harry Brandt, the association president,
began Thursday's discussions by saying that
this was a "rambunctious" business but that
he clings to the theory that its disputes can
be settled within the industry.
"My own feeling is one of elation," he
said. "I think this 20th-Fox plan will work,
provided it is carried out in the spirit of
fair dealing as they have promised to do
here today."
Al Lichtman, 20th-Fox vice-president, was
the principal speaker. He said he would explain
"what all the shooting is about."
Then he drew an audible chuckle by saying,
"I have been called a hatchet man by
a lifelong friend. It is all a misunderstanding."
He was referring to a cartoon which appeared
recently in The Independent.
Lichtman 's talk was conciliatory throughout.
He predicted a sliding scale of percentages
would work out to the advantage
of exhibitors as well as the company, because
it will encourage exhibitors as well as encourage
longer runs and more exploitation
effort and because exhibitors will lose less
on losing pictures.
Lichtman said that studies made since the
executives went on tour show that in some
instances exhibitors have been paying too
much.
"Present conditions call for improvement
in methods," he continued. "In too many
places there is lack of confidence between
salesmen and exhibitors. We will try to establish
relationships so there can be no question
of integrity on either side. We want
to establish the same high plane of ethics
in this business that exists in other businesses.
We have to meet conditions together.
QUESTIONS ARE ASKED
"If you do not think our new plan is fair,
please let us know about it."
Max A. Cohen, chairman of the ITOA
film committee, explained that the steering
committee had decided in the morning to
ask a series of questions.
His first was: "When does the plan go into
effect?" Andy Smith jr. general sales manager,
replied that it was already in effect.
Then Cohen asked whether the sliding scale
would be insisted upon for all theatres, if
some of them could prove they could not
afford it. Smith replied that 20th-Fox would
sell on terms the exhibitor prefers in any
type of theatre.
Then Cohen inquired about the formula
for percentages. Smith said the first scale
would run from 25 per cent to 50 per cent
and then go in one per cent steps. Later
he added that if a theatre could not afford
25 per cent it would be reduced, possibly to
20 per cent. He said the company would
consider theatre cost data whenever an exhibitor
was willing to make it available.
In reply to a question as to whether a
formula had been set on flat rentals. Smith
said none had been set and that 20th-Fox
intended to give theatres the same benefits as
on the sliding scales.
Cohen then asked if the company was
eliminating home office approval of contracts
and Smith replied that contracts would be
sent to the home office merely for the purpose
of recording.
SOME COMPETITIVE BIDDING
Cohen asked if the company would accept
competitive negotiations. Smith answered
that there would be competitive negotiation
in certain areas.
Lichtman interrupted to say that new
clearances would be set up to fit local conditions.
He said the company advocated
moving up subsequent clearances in Philadelphia,
but that it would be necessary to
make a detailed study of the complex New
York situation before any policy vould be
decided upon. He emphasized that 20th-Fox
had no desire to take unfair advantages.
Brandt inquired further whether there was
anything in the 20th-Fox plan that "displeased"
any member present. One exhibitor
wanted to know how deals would be made
on pictures that had been milked by first
run extensions. Lichtman told him he thought
it would be possible to make fair deals in
every instance.
NEW YORK—British and American film
leaders have slowly unwrapped and exposed
to the light of public scrutiny the record of
their deliberations in the recent Anglo-
American film conference at Washington.
It developed this week that the recent
Anglo-American Council meeting agreed on
several gestures. The British, on their part,
will try to secure a reduction of the quota
as soon as possible, and a revision of the
remittance agreement when it expires June
14, 1950.
The British also will drop some of the
exhibition practices which have stirred disputes
during the past year. J. Arthur Rank
will play 100 American A films per year in
his Gaumont-British, Odeon and Associated
British Pictures Corp. theatres and will stop
his efforts to put American films on the
lower half of dual biUs with British films.
The allocations will be made on the basis
of not more than 15 films annually from
any single American company.
In return for these concessions the Americans
will eliminate their present requirement
that programs using American films shall be
all American.
They will establish a subsidy for British
producers out of imremittable funds accumulated
in Great Britain, and this subsidy will
rise as the returns from exhibition of British
pictures in the U.S. rises.
British circuits will not discriminate against
U.S. films on weekend and holiday playing
time.
It is also understood there is a provision
in the Anglo-American proposed plan whereby
American producers will guarantee a certain
sum annually to British producers, the
guarantee to be paid out of unremittable
sterling.
Later in the week it was announced that
the 2nd meeting of the Anglo-American Film
Council will be held in New York June 2-3.
Arnall Hits at British Agreement;
Calls It a 'Cartel' Substitute
NEW YORK—The Anglo-American
Film Council is attempting "to substitute
cartelization for what should be
government action," declared Ellis Arnall,
president of the Society of Independent
Motion Picture Producers,
Wednesday (11) in a second formal comment
on the results of the council meetings
as they had become known to him
through "leaks."
The agreement purportedly reached,
Arnall said, would let "a small group of
selfish men" completely usurp "the
rights of the majority." He said that
the 1948 council discussions decided
against any discriminatory taxation of
American pictures as an aid to the British
industry.
"Now," he continued, "a few representatives
of the major companies have arrogated
to themselves the authority to
deal in secret for the entire industry,
they have bartered away this fundamental
principle for immediate dollars
for their companies with no consideration
of the effect upon American motion
pictures as a whole. In addition to providing,
in effect, an American subsidy
for British production by calling for a
guarantee by American companies of
British film earnings here, the proposed
agreement, on further examination, appears
clearly to mean a sacrificing of
opportunity for independent American
producers to show their pictures.
"The place of the American motion picture
industry in the world is much too
important to be handled as though it
were the private himting ground of a
handful of monopolists. Any action which
affects it outside our borders is a matter
of grave concern to our government
and should be handled through proper
government channels and not by a
group of self-appointed would-be dic-
10 BOXOFTICE May 14, 1949
tators."