Harrison's Reports (1945)

84 HARRISON'S REPORTS May 26, 1945 profitable sidelines by demanding fantastic rental terms, in some cases better than the terms demanded when the pictures were originally released. And when one takes into consideration the fact that these re' issues have already earned back their original investment plus profit, and that the only expense to the distributors now is the cost of prints and advertising, it becomes evident that the profits they are realizing probably exceed the profits made on many a new film. This paper has been in touch with a number of exhibitors to learn their reactions to reissues, and a consensus of their opinions is as follows: (a) Some will not book reissues under any circunv stances lest their theatres lose prestige. (b) In double feature situations, many find that the use of a reissue in support of a new feature causes a decline in attendance. If they cannot obtain a new "B" picture as the supporting picture, and they run only a single feature, a large percentage of their patrons stay away. (c) All agreed that rental terms for reissues are way out of line, but most of them admitted that spot bookings could be had at fairly reasonable terms. (d) All agreed that a large percentage of their patrons were tiring of "oldies." (e) Many felt that the distributors were juggling their raw stock allocations and releases in a manner aimed at perpetuating a "seller's market" through the maintainence of an artificial product shortage, thus leaving them in a position to dictate their own terms. The root of the abuses the exhibitors are undergoing today lies in the tailure of the War Production Board to regulate the producer-distributors' use of raw stock. Under proper control, Universal would not be permitted to cut down arbitrarily the delivery of new pictures, an act that serves to tighten further the product shortage, and to set the stage for the sale of the reissues, the prints of which will come from raw stock that could have been used for prints of new features. And Paramount and some of the other companies would not be permitted to produce a limitless number of pictures with rationed raw stock only to hoard them in their vaults, marking time while the reissues make the rounds. Moreover, none of the companies would be permitted to use its raw stock allocation to further its own interests in foreign markets while the American exhibitors go hungry for pictures. The motion picture industry is a competitive business, a sort of "survival of the fittest," but without raw film stock there would be no industry, for every phase of the business depends upon its availability. When the Government undertakes to control the amount of raw stock the industry should receive, it automatically places restrictions and limitations on free and open competition. It, therefore, assumes at once the responsibility to see that all parties concerned either benefit or suffer proportionately. Under the present set-up, the producer-distributors and the key-run theatres are having the time of their lives, while the subsequent-run exhibitor has to stand by d.nd lick his wounds. An immediate remedy is needed. The situation is too far gone for long drawn-out industryGovernment conferences to find a solution. The Government, through its Department of Justice, is well acquainted with industry practices and abuses, and it could easily determine how seriously the producer-distributors1 uncontrolled disposition of raw stock is affecting the smaller fellow in the business. This is war-time, and the Government, through its rationing of raw stock and its restrictions on other commodities and man power used in the functions of the business, is already in partial control of the industry. It is apparent that this control is either insufficient in extent or injudicious in its exercise. An overhauling is necessary so long as we continue to operate under war-time conditions. Mr. Stanley Adams, head of the WPB's Consumers Durable Goods Division, has been informed by numerous exhibitor organizations of the abuses suffered by the subsequent-run exhibitors under the present system of raw stock allocation, and he has stated that the distribution of prints must be on a fair and equal basis for all or the WPB will bring immediate action for relief. He made that statement months ago, but he has never gone beyond the talking stage. His laxity has thus far proved harmful, and, based on his performance to date, there is every reason to believe that under him conditions will grow worse. Take the matter up with your Congressional representatives. Perhaps they will help you find some way of getting Mr. Adams to match his words with actions. "CALL OF THE WILD" TO BE MADE AVAILABLE ON JUNE 15 In the issues of May 5 and May 12, this paper complained vehemently about the failure of Twentieth CenturyFox to deliver to numerous exhibitors the Clark Gable reissue, "Call of the Wild." And, as it is evident from a reading of those issues, this paper carried directly to both Twentieth CenturyFox and MGM, its campaign to have the picture made available to the Fox customers. The controversy came to a close last week when Tom Connors, the Twentieth Century-Fox Vice President in charge of world-wide distribution, issued the following statement : " 'Call of the Wild' will be made available for bookings beginnings June 1 5 th. The picture was withdrawn from release sometime ago because of legal complications. Clark Gable's services for the picture had been loaned by Metro and it was claimed that certain restrictive provisions in the agreement for the loan of that star's services had been violated. These difficulties have now been ironed out, thereby clearing the way for the picture's release." Although this explanation is somewhat ambiguous, it would serve no useful purpose to delve deeper into the causes that impelled Twentieth Century-Fox to withhold the picture. The important thing is that the picture will now be made available, and that the valuable and critical raw stock that had gone into the processing of new prints will be put to proper use. Mr. Connors' statement, however, made no mention of what procedure will be followed in making the picture available to those exhibitors who bought it as part of a group, only to find it omitted from the approved contracts. These exhibitors should be given the picture in accordance with the terms originally agreed upon between themselves and the company's sales representatives. Only then will Twentieth Century-Fox be able to write finis satisfactorily to an issue that should never have been permitted to arise. Harrison's Reports wishes to acknowledge that it first learned about the "Call of the Wild" situation from the communications sent out by Abram F. Myers, general counsel of National Allied and Pete Wood of the Independent Theatre Owners of Ohio. Exhibitors everywhere owe a vote of thanks to these men for starting the campaign that resulted in the picture's release.