Harrison's Reports (1951)

Entered as second-class matter January 4, 1921, at the post office at New York, New York, under the act of March 3, 1879. Harrison’s Reports Yearly Subscription Rates: United States $15.00 U. S. Insular Possessions. 16.50 Canada 16.50 Mexico, Cuba, Spain 16.50 Great Britain 17.50 Australia, New Zealand, India, Europe, Asia .... 17.50 35c a Copy 1270 SIXTH AVENUE New York 20, N. Y. Published Weekly by Harrison’s Reports, Inc., Publisher A Motion Picture Reviewing Service Devoted Chiefly to the Interests of the Exhibitors P. S. HARRISON, Editor Established July 1, 1919 Its Editorial Policy: No Problem Too Big for Its Editorial Columns, if It is to Benefit the Exhibitor. Circle 7-4622 A REVIEWING SERVICE FREE FROM THE INFLUENCE OF FILM ADVERTISING Vol. XXXIII SATURDAY, AUGUST 4, 1951 No. 31 HERE AND THERE WHAT MIGHT BE TERMED a case of “man bites dog” took place in New York last Monday, when William F. Rodgers, MGM vice-president and distribution chief, who for many years has played host to the trade press at different luncheons, found himself on the receiving end as guest of honor at the first luncheon given by the Film Press Writers of America, a newly-organized group of motion picture trade paper reporters, reviewers and editorial writers. That the FPWA saw fit to honor Bill Rodgers as their first guest is understandable, for throughout the years the members of the trade press have always held him in high regard because, unlike some other top industry executives, he is approachable. He has always made himself available to the trade paper man seeking information and, invariably, his answers to all questions have been forthright and intelligent; in making a statement he never minces words nor resorts to ambiguities. Moreover, the trade paper men have long admired him for his sincere efforts to achieve harmony and unity within the industry, and for his willingness to assume leadership of any program that would serve to best protect and promote the interests of the motion picture industry. There are many other top industry executives, all men of integrity, for whom the trade paper boys have feelings of admiration and respect, but in the case of Bill Rodgers they have also a feeling of genuine affection because of his simplicity, kindliness and sincerity of purpose. * * * WHILE ON THE SUBJECT of Bill Rodgers and his sincerity of purpose, this paper might just as well bring to your attention, not another, but a continuing, example of his willingness to lend a helping hand to exhibitors in distress. Without fanfare of any kind, Rodgers’ sales force is taking every step possible to aid exhibitors whose theatres have been damaged in the flood-stricken Kansas-Missouri territory. This aid comes in the form of reduced film rentals to help them get back on their feet and, in cases of extreme hardship, films are being furnished at no charge to give the hard-hit exhibitors a chance to remain in business and recoup some of their losses. Giving aid and relief to distressed exhibitors is a longstanding policy with MGM. As recently as last May, when a wave of theatre closings occurred throughout the country because of the decline in attendance, Bill Rodgers reaffirmed this policy and urged his sales force to do everything possible to forestall more closings. “Where MGM branch, district and sales managers know relief is necessary to keep theatres open,” he said, “every effort should be made to do so and never let it be said that MGM contributed to the closing of a theatre." With a humane policy such as this, it is no wonder that the exhibitors voted MGM the fairest company for three years in a row — 1949, 1950 and 1951 — in a pool conducted by The Exhibitor, in connection with that reputable trade paper’s annual Laurel Awards. AT THE RECENT FOUR, DAY convention of the Pacific Coast Conference of Independent Theatre Owners, it was recommended that, in the event pay-as-you-see or coin-in-the-slot television systems are established, the Federal government should take steps to collect an amusement tax from such systems. Other exhibitor organizations have made similar recommendations. The big question is whether the Government will be content to charge an amusement tax only on the price charged to the set owner who tunes in on a TV subscription show. Asuming that Phonevision, or any one of the other pay-as-youisee TV systems were to be successful to the detriment of the picture theatres, the Government, by charging an amusement tax only on the price charged instead of on the number of persons watching the TV performance, would be deprived of millions of dollars it now receives from the theatres. In view of the fact that the Government is seeking taxes from any and all sources to help pay for the vast defense program, it no doubt will be receptive to exhibitor recommendations that some method be devised to collect an amusement tax on the “home box office,” but these recommendations should insist that the tax formula be based on the estimated number of persons watching the show. And that is how it should be, for subscription TV, if successful, will be competitive to the theatres, and to place an admission tax on one and not on the other would be discriminatory. * * * ABRAM F. MYERS, general counsel of National Allied, has dispatched to each Allied regional association a copy of a ruling by the Internal Revenue Bureau in Washington to the effect that a theatre need not collect an admission tax on free admissions to children under twelve when accompanied by parents, even though the theatre has an established admision price for such children when not accompanied by parents and charges an admission tax thereon. Mr. Myers pointed out that this ruling was obtained as a result of the persistence of W. A. Carroll, of Allied Theatres of Indiana, who pursued the claim and secured a refund for one of his members who had been assessed upwards of $3,000.00 for failing to collect a tax on such free admissions. “Admitting children free when accompanied by parents is thought by some exhibitors to be a business-builder,” stated Mr. Myers, “and under this ruling it is expected that the practice will flourish, at least until business gets better." * * * CONFIDENTIAL REPORTS, INC., which has operated as a checking agency for most of the major distributors since 1945, will terminate operations as of today, August 4, according to an announcement by John J. O’Connor, chairman of the CRI board of directors. The announcement added that, beginning Sundry, August 5, checking operations will be conducted by. Willmark Service System, Inc., which has contracted separately for this service with the present member companies of CRI.