Harrison's Reports (1938)

176 HARRISON'S REPORTS October 29, 1938 establishing the right to cancel 20% of the pictures contracted for will be the worst blow the independent exhibitors could receive. Today, under the 10% cancellation provision, the affiliated theatre can contract for only four major products ; under the 20% cancellation provision, it will be able to contract for five major products and still be free of the accusation that it has bought more pictures than it could use. It is neither the right to cancel a certain number of pictures nor any other provisions that matter much, but the right to buy pictures in the open market, and a market free from wholesalers' competition. It is on these two points that the conferences must stand or fall. THOUGHTS AT RANDOM (Contributed by an Active Exhibitor) The Trade Practices Conferences At this writing self-regulation sessions have just begun. As an exhibitor, I can but hope that the sessions will be productive of a definite meeting of minds and an immediate correction of abuses of which exhibitors have justly complained for many years. We fully realize that the distributors did not extend the invitation to confer because of any altruistic motives but merely to stave off complete government supervision in a setup similar to the Federal Communications Commission. Their back is now to that same wall where the handwriting was becoming increasingly visible. Both national exhibitor bodies, Allied and MPTOA, have definite programs which, in many respects, are quite similar. The other conferring organizations also have programs which are somewhat localized. Put all the programs together, eliminate duplication, and there remains about fifteen reforms, which, if instituted immediately, would make the average exhibitor quite happy. We have previously expressed the thought that the various exhibitor bodies were not unreasonable in their demands ; the reforms they ask are necessary if the independent exhibitor is to nr*d it profitable to remain in business. A glance at the financial statements of several distributors shows that, despite a recession in this country and dwindling foreign grosses, the distributors' earnings have been maintained at last year's levels ! How many exhibitors can boast of anyway near the same record? The next few weeks will tell whether or not the lion and the lamb are to lie down together or whether they will need a chaperon in the person of Uncle Sam. Republic's Contemplated Radio Hour On several occasions the writer has gone on record as being strongly opposed to pictures' in any way helping to build up radio's listening audience and thereby further opposition. Such an opinion has only mirrored that of thousands of independent exhibitors. Within a short time a new and even greater cause for complaint, if present plans are consummated, will be given exhibitors. Republic Pictures is readying a radio show of its own! If no sponsor is found it is believed that the program will go on the Columbia Network as a sustaining feature. Republic, as a producing company, is comparatively young. In the few years of its existence it has made rapid strides. But those advances could not have been made without the active support of the independent exhibitors, to whom it first appealed for support. Though I cannot recall of any Republic salesman saying it, the implication was that "the best defense against the abuses of the major companies is strong independent producers. In helping us you help yourself." Now that Republic has attained a little stature, it is starting to emulate its bigger brothers and, in so doing, is repeating the practices which were so obnoxious, and upon which Republic got its start. Before plans for putting the show on the air are completed, the writer believes that it would be advisable to take a lesson from the present day method of influencing legislation and either write or wire Republic Pictures of your objections to their proposed plan of going on the radio. Inasmuch as the MGM "Good News of 1939" program comes up for renewal in December it might be wise to let them, too, know of your objections. Affiliated Circuits Continue Expanding Last week a Philadelphia exhibitor filed suit against Warner Bros, alleging that Warners, through continued building, have pushed him so far back that he no longer has hopes for any profits. It is situations like this that caused the government to step in to protect the little fellow. Professor Arnold, in charge of the government's suit, has been insisting that the affiliated circuits cease expansion operations until a court decision has been rendered. He has threatened to enforce his demands with an injunction. Continued expansion in the face of the government opposition is not only heaping coals on the fire but also is an invitation to disaster. Other trusts have sneered at the government much to their dismay. (Editor's Note: MGM, too, has been guilty of such a practice ; it has just acquired the Criterion, on Broadway, this city.) MR. JOSEPH SCHENCK IS RIGHT — BUT According to Film Daily, Mr. Joseph Schenck, upon reaching the United States from abroad, made the following statement to a reporter of that paper regarding the right to cancel 20% of the pictures contracted for: "Serious cancellation will cause a lowering of production budgets as it reduces the income. A 20% cancellation which is being asked for by some groups would be extremely serious, and if we cut budgets the quality of product won't be to the exhibitor's expectations. I personally am against cancellation and I don't believe that any company can stand more than 10 per cent." This paper upholds Mr. Schenck in his opposition to a twenty per cent cancellation. As a matter of fact, this paper believes that the exhibitor should play every picture he contracts for — provided he is given a chance to know what he buys, before signing the contract.