Harrison's Reports (1954)

Bnter«d as second-class matter January 4, 1921, at the post office at New York, New York, under the act of March S, 1879. Harrisoiv’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 S. HARRISON, Editor Devoted Chiefly to the Interests of the Exhibitors 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. XXXVI SATURDAY, FEBRUARY 27, 1954 No. 9 ALLIED BOARD ADOPTS STOCK-BUYING PLAN In a continuation of the sessions held at its mid' winter meeting in Cincinnati earlier this month, Na' tional Allied’s board of directors met again in New York City on Thursday and Friday of this week to discuss unfinished business and to consider further a stock acquisition plan designed to gain for the exhi' bitors an important and possibly controlling voice in the management and production policies of one of the film companies. The idea behind the plan, which was first proposed by Trueman Rembusch last OctO' ber at Allied’s national convention in Boston, is to have exhibitor stockholders in one of the film com' panics pool their stock so that the shares may be voted by a proxy committee in furtherance of a com' pany program that would be beneficial to exhibition. At the end of the meeting held on Thursday, the Allied board issued the following authorized state' ment: “The board is more than ever convinced that the film companies’ policy of curtailing the production and restricting the licensing of motion pictures con' stitutes an immediate threat to the independent subsc' quent'run and small town theatres and, unless it is soon abandoned, will destroy the entire industry by constricting the market to a point where is can no longer support even the limited production necessary to supply the surviving theatres. “Therefore, the board firmly resolved to pursue with vigor and determination the program initiated at the Boston Convention and rc'affirmed at the Cincinnati board meeting, of promoting the produc' tion of motion pictures by every available means including stock acquisitions in and appeals to the stockholders of one of the existing film companies in an effort, by proxy fight if necessary, to supplant the present disastrous policies of such company with more liberal policies consistent with the preservation and prosperity of the whole industry and compatible with the laws of the United States. “The Committee on Stock Acquisition and Amass' ing Playdates was directed to continue its explora' tions and to take the necessary steps to effectuate the program. At the proper time that committee will retire in favor of a stockholders’ committee that will bring the selected company’s policies and the attitude of its management to the attention of its stockholders, in accordance with the rules of the Securities 6s? Exchange Commission. There is reason to believe that persons with large investments in certain of the companies, as well as persons formerly connected therewith, who are concerned about the present management and policies are ready to sup' port the constructive measures proposed by Allied. “While independent subsequent'run and small town exhibitors are now most critically affected by the product shortage, the board believes that other classes of exhibitors realize that before long they too will feel the blight and that they will welcome an opportunity to join in a movement designed to prevent such calamity. The board, therefore, authorized its committee to supply information to all interested exhibitors and to invite them to participate in the program which, in the concluding stages, will be con' ducted by a committee representing stockholders and not any particular exhibitor organization. “The board recognizes that considerable time may elapse before this plan reaches fulfillment and that in the meantime the condition of the independent exhibi' tors daily becomes more desperate. Consequently, it was decided to investigate and encourage movements among independent producers to resume production or to increase their output, as the case may be. Con' versations to that end have already been held with one group and others will follow shortly.” Of all the problems faced by the exhibitors today, none is more important or in greater need of solution than that of the product shortage. As pointed out in the Allied board’s statement, the curtailment of pro' duction not only constitutes an immediate threat to the independent subsequent'run and smalhtown theatres but also is causing considerable concern to the larger operators who, too, are beginning to feel the product pinch. It wdl be recalled that the dearth of product was the main subject of the keynote address delivered by Leonard Goldenson, head of the giant Paramount Theatres circuit, at the Chicago convention of the Theatre Owners of America, which, as most of you know is dominated by the large circuits. Si Fabian, head of the Stanley' Warner circuit, is another who in recent weeks has mentioned his concern over the product shortage. Allied s efforts to find a solution to the problem by way of its stock'buying plan are to be commended, and since the solution is the common concern of all classes of exhibitors Allied has acted wisely in inviting all interested exhibitors to participate in the plan and in making it clear that it seeks to have the plan “conducted by a committee representing stockholders and not any particular exhibitor organization.” No one knows better than the exhibitors of the danger that lies ahead as a result of the curtailment of production — a danger that threatens to rob them of businesses that took every ounce of their energy for years to establish. The situation cries aloud for organized effort in self'defense, and through wide' spread support of Allied’s cooperative stock'buying plan the solution may very well be realized.