Harrison's Reports (1948)

20 HARRISON'S REPORTS January 31, 1948 AN INADVERTENT OMISSION In reporting last week that ASCAP has extended to March 15 its current music licensing rates, this paper, while giving the Theatre Owners of America its due for its efforts in securing this extension, said that "... there can be no doubt that the militant efforts of National Allied and of the Pacific Coast Conference, both in challenging the legality of ASCAP's tax impositions and in advocating legislation to curb the Society's monopolistic hold on the exhibitors, played a major part in the decision reached by the ASCAP board." In ascribing this extension solely to the efforts of the aforementioned exhibitor organizations, Harrison's Reports inadvertently erred, for there can be no doubt that the militant position taken by the Independent Theatre Owners' Association of New York certainly was one of the prime factors that brought about this extension of time. The major role played by the ITOA is evidenced by the following facts: In October, 1947, the ITOA incorporated in its long-standing anti-trust suit against ASCAP an application to enjoin ASCAP from putting its announced new tax rates into effect. The motion for a restraining order was stayed pending the trial, which had been set for January 5 of this year. The trial subsequently was postponed to February 2, and the injunction by stipulation was adjourned on ASCAP's counsel's agreement that, insofar as the ITOA members involved in the suit were concerned, the new tax rates would not become effective for at least thirty days after the trial. Considering the number of days that might be consumed by the trial, the date of the extension would be brought to approximately March 15. In view of the fact that ASCAP's own counsel had agreed to an extension to approximately March 1 5 for the 165 exhibitors represented in the ITOA suit, it is reasonable to assume that the Society deemed it wise to grant such an extension to all other exhibitors lest it find itself in an anomalous position. And, if there should be another postponement of the trial together with the stipulation that the new tax rates would not become effective until after thirty days, any further extension granted to the ITOA members may be granted also to all other exhibitors, thus extending the deadline beyond March 15. Harrison's Reports is happy to correct this inadvertent omission of the credit due the ITOA for its efforts in securing an extension of time from ASCAP. PARAMOUNT'S FOREIGN LOSSES LIGHT In a letter sent to the Paramount stockholders tO' wards the close of 1947, Barney Balaban, president of the company, revealed that Paramount has been affected less than any other film company by the loss of the foreign market, for only ten per cent of its worldwide revenue is derived from foreign distribution of its pictures. The earnings from Paramount theatres, said Mr. Balaban, minimized the company's foreignmarket losses. Mr. Balaban stated that, hereafter, pictures that will go into the inventory will represent a lower production cost and they will, therefore, call for lower amortization charges when their distribution begins in the fall. The exhibitors no doubt are pleased to hear at least one major company state that its losses from the foreign market are small as compared to its profits from the domestic market, both from the theatres and from distribution. Even the ten per cent loss from the foreign market could be offset by the economies effected at the Paramount studio. It seems as if Paramount will not ask the exhibitors to foot any losses in the coming months, for, according to what Mr. Balaban told the stockholders, there should be no losses. "Fighting Mad" with Leon Errol, Joe Kirkwood and Elyse Knox (Monogram, January 31; time, 74 mm.) Like its predecessors, this latest of the "Joe Palooka" pictures neatly balances tense fight sequences with a human interest story; it should make a good supporting feature generally, and is strong enough to top a double-bill in lesser action and neighborhood houses. The story is simple, but it is well written and dramatically effective, holding one's interest throughout. Its appeal lies in the staunch loyalty that exists between "Palooka" and "Knobby Walsh," his manager, with both these roles once again played by Joe Kirkwood and Leon Errol in a human, likeable way. The romantic interest is pleasant, and the comedy touches amusing. The fight sequences are very good: — Having injured his optic nerve while defending his world's championship title, Kirkwood almost goes blind and is ordered by his doctor to retire from the ring lest he lose his sight permanently. Errol, searching for a new pugilist, buys an interest in Jack Shea, a heavyweight, unaware that Shea was under the control of Charles Kane, a crooked gambler, who had been "fixing" his fights to make him look good. Kane planned to use Errol's reputation as a manager to his advantage. Errol, eventually discovering that Shea's fights had been fixed by Kane, decides to give up his interest in him, but Kane, by threatening to reveal that Errol had been involved in crooked bouts, compels him to continue as Shea's manager. Learning of Errol's predicament, Kirkwood, though faced with the danger of blindness if hit about the head, decides to come out of retirement to fight Shea. Errol, unable to induce Kirkwood to change his mind, makes a deal with Kane to keep Shea from hitting Kirkwood about the head. The double-crossing Kane, however, bets heavily on Shea and orders him to concentrate his punches on Kirkwood's head. Since the general public was unaware of Kirkwood's condition, Kane has little difficulty in obtaining bets at good odds. On the night of the fight, Shea's tactics soon have Kirkwood on the verge of defeat, but the undefeated champ recuperates in time to knock out his foe. Kane, having suffered a heavy loss, orders his henchmen to threaten Errol after the fight, but timely police action saves Errol from harm and lands the gamblers in jail. John Bright wrote the screen play from a story by Ralph Lewis and B. B. Shamburg. Hal E. Chester produced it, and Reginald LeBorg directed it. The cast includes John Hubbard, Patricia Dane, Wally Vernon and others. Unobjectionable morally.