Harrison's Reports (1949)

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: 1270 AVENUE OF THE AMERICAS Published Weekly by United States $15.00 (Formerly Sixth Avenue) Harrison's Reports, Inc., U. S. Insular Possessions. 16.50 M v . „_ M v Publisher Canada 16.50 Wew York w *■ P. S. HARRISON, Editor Mexico, Cuba, Spain 16.50 A Motion Picture Reviewing Service Great Britain 17.50 Devoted Chiefly to the Interests of the Exhibitors Established July 1, 1919 Australia, New Zealand, India, Europe, Asia .... 17.50 Itg Editoria] Poi;cy: No Problem Too Big for Its Editorial Circle 7-4622 35c a Copy Columns, if It is to Benefit the Exhibitor. A REVIEWING SERVICE FREE FROM THE INFLUENCE OF FILM ADVERTISING Vol. XXXI SATURDAY, APRIL 9, 1949 No. 15 A TIRED OLD MAN It seems as if Al Lichtman, newly-elected vice-president of 20th Century-Fox, has decided to establish a policy of live and don't let the other fellow live. Under his suggestion, no doubt, Andy Smith, Charles Einfeld and he are touring the country to convince the exhibitors that they must pay more for the company's films than they have been paying heretofore. Mr. Lichtman claims that the exhibitors are making two hundred million dollars a year in profits and that they must give up to the film companies, particularly Twentieth Century-Fox, a greater share of those profits. Just how much of these profits is earned by the large affiliated and independent circuits Mr. Lichtman does not say. When Andy Smith took up his duties as general sales manager for Twentieth Century-Fox in 1947, he found exhibitor resentment against his company very strong because of its tough sales policy. He thereupon established a policy of cooperation with the exhibitors, as suggested by Bennie Berger, of Minneapolis, to the end that all complaints against his company be adjusted amicably through conciliation. And this paper encouraged this spirit by urging editorially that every exhibitor organization adopt the SmithBerger plan. And Andy was making good progress — that is, until Al Lichtman came upon the scene. To the old-timers in this business, Al Lichtman's efforts to get higher rentals from the exhibitors is an old story. His present campaign is merely a repeat performance; throughout his long career in the motion picture business, Lichtman has invariably sponsored a new sales formula every time he joined a different company, and each of these new sales policies had but one objective — to get from the exhibitors more money. His tough sales methods throughout the years so irked the exhibitors that in 1936, when he joined Metro, the then MPTO of Philadelphia dubbed him "The Exhibitors' Enemy No. 1," because of a new sales policy that he had induced the MGM sales department to adopt. At that time the Philadelphia organization issued a bulletin in which the following, in part, was printed: "Al Lichtman's new sales scheme is a fitting climax to a career devoted to soaking the exhibitor. As sales head for many years of United Artists his unconscionable film rentals and refusal to adjust oversold situations brought down on his company the wrath of a nation of theatre owners. . . . "When the news was flashed some months ago that Lichtman had been appointed assistant to the president, a groan went up from ten thousand exhibitor throats. These men knew what that appointment meant. They knew the Lichtman record. Their worst fears now have been realized. . . ." The exhibitors were so incensed by Lichtman's new sales scheme that plans were formulated for a play-date strike against MGM films, but thanks to Bill Rodgers, whom the exhibitors respected, a compromise was reached and the strike averted. I can say much more about Al Lichtman's relations with the exhibitors in the past, but we must not be too hard on him. After all, he is an older man than he was when he was head of the Paramount sales organization, and later of Universal, and still later of United Artists. He lacks the vigor of former years. Not long ago I saw him in Hollywood and urged him to keep his head erect and not stoop down so as to look like an eighty-year-old man. By his present policy, he is trying to use toughness to take the place of vigor and ingenuity. At one time the exhibitors used to say: "Spyros Skouras is the most popular head of the most unpopular company." As a matter of fact, what good will has been gained by Twentieth Century-Fox is owed more to Mr. Skouras than to any other individual in the organization. But if he allows Al Lichtman to carry on as he is doing now, I fear that Mr. Skouras not only will lose in a very short time the good will he has worked years to gain for his company, but will also bring himself down to the point of becoming very unpopular with the exhibitors. Even as a matter of common sense, Lichtman's policy of telling the exhibitors that they must pay more for films than they are paying now is erroneous. Andy Smith, quietly, could have sent a letter to his branch managers instructing them to ask more money for certain high-quality films, and the exhibitor would have to either meet the terms or do without those films. If the films are really worthwhile and would make a profit on the terms demanded, the exhibitor would eventually buy them. But such a policy does not fit Al Lichtman's scheme of things; like the late Theodore Roosevelt, he believes in using a Big Stick. Al Lichtman may have gotten away with such a method in the blockbooking days, but today, with the many discriminatory trade practices outlawed and with pictures being sold individually on merit, an exhibitor is not backed up to the wall so easily. Consequently, according to the many exhibitor organization blasts that have been loosed on this drive for rental boosts, the exhibitors are very angry and are getting together to leave Twentieth Century-Fox films alone. Al Lichtman should take a leaf out of Bill Rodgers' book. Bill has found out that permanent friendly relations with exhibitors are established, not by the Big Stick, but by kindness and understanding. The result is that the exhibitors will book MGM films, even if they should happen not to be as good as the films of other companies — and this has happened in years past — just because Bill was kind to them all along. Facts and figures will show that Al Lichtman does not have to establish a tough sales policy to increase his company's profits, but I will not go into them since the matter is adequately handled by Mr. Abram F. Myers, general counsel and chairman of the board of Allied States Association, whose devastating statement on the Lichtman policy has been reproduced in part elsewhere in this issue. It is apparent that the prevailing recession has hurt Twentieth Century-Fox's intake, but Al Lichtman does not seem to realize that it has hurt also the exhibitor's; and by his reasoning, every exhibitor, too, has the right to yell loud and long for reduced rentals. According to a report published in the April 6 issue of weekly Variety, Al Lichtman's contract with Twentieth Century-Fox covers a five-year term tor a total of $200,000 in salary, payable at the rate of $60,000 for the first year and $35,000 annually thereafter, plus traveling expenses. Quoting from the contract. Variety reports that it specifically states that Lichtman is to "concentrate his efforts upon improving our distribution methods to the end that we shall obtain a wider distribution of our product and enhance our film rentals therefrom." The contract states also that, for the first year only, "You (Lichtman) will recommend such changes in policy and methods as you deem an improvement over the present policy and methods. You will use your best (Continued on last page)