Harrison's Reports (1949)

68 HARRISON'S REPORTS April 23, 1949 Harrison did the job in the March 26 issue of his Reports. "Mr. Harrison uses the same figures but separates the film rentals paid by RKO theatres to the parent company with whom they were in no position to bargain. His analysis then shows that the RKO circuit paid 20% or less to distributors other than RKO for film rental. "Well go along with Harrison and his 'Reviewing Service Free From the Influence of Film Advertising' for our impartial observer. "Harrisons Reports, without the benefit of any film advertising subsidy, is necessarily expensive but we believe no exhibitor should be without it." Twentieth Century-Fox Film Corporation Beverley Hills, Calif. April 14, 1949 Dear Mr. Harrison : After reading your editorial of April 9th, I am somewhat dumbfounded and not a little shocked at both your personal vehemence and failure to understand the problem confronting the motion picture industry today. I am shocked because as recently as February 25 th you wrote me as follows: "You are doing a fine job. Your pictures are bringing joy and happiness to the hearts of millions of people all over the world, and they are doing the industry an immense amount of good. I only hope that you will continue the good work." I wonder how you expect us to continue the good work which you make such a big point of; how can we go on risking tremendous fortunes in capital — grossing internationally over $84,000,000 last year, and showing a profit of a mere $3,000,000 on this great investment? And, mind you, we are the only company which made a profit out of our pictures, and if one of them had turned out badly, we would have taken a loss like all the other outfits did. But the thing that bothers me most is your violent attack on Al Lichtman, who, in my opinion, is one of the great pioneers in this industry — a man who has contributed in every way to its success; a man who is not a tycoon, owning a large company, but rather one of the select few who has always had this industry so much at heart and has given so much of himself that his health is now impaired. I don't know how in good conscience you can think the way you did in your article. Al Lichtman doesn't need me to defend his record in this industry, and I certainly am not writing you to defend our employing him because we are very proud to have him in our organization. Every fairminded exhibitor has the same respect for Al Lichtman that we in the industry have, and I can't believe that you meant the intemperate things you allowed yourself to say. Twentieth CenturyFox shall continue to do our best to make the best pictures in the business. We will try to earn and deserve the praise that you and other independent editors have bestowed upon us. I don't think I am being unduly boastful when I state that our films for the past several years have been consistently the best. To continue to work hard and serve the public and thus serve the exhibitors and ourselves has been the aim of this studio. We cannot further lower the cost of production without endangering the quality of our merchandise. Yet the cold facts and figures on record show us that if we are to continue to make the type of pictures that you have applauded us for we will have to get a larger share of the returns. I believe that there are a great number of honest, conscientious and intelligent exhibitors who will quickly see the handwriting on the wall. They will realize that we have got to be encouraged with more than applause. We don't want it all but we do want enough to make it possible for us to continue making the same type of product we have been making. Cheaper pictures with less quality may in some respects help producing companies but they will certainly in the long run wreck exhibitors and destroy the interest of the public in motion pictures. Anyone with an ounce of sense can recognize this. Yet if we are forced to curtail more and more there is no alternative and when this happens the exhibitor will really have something genuine to howl about. There will be a great many theatres for rent in this country. You have been a leader in your field and this is why your attitude astonishes me. You would think that Al Lichtman was going out with a pitchfork in his hands to gouge defenseless exhibitors. I have always favored a neighborly policy of good relations. But recently 1 have noticed that such policies do not pay off either for the producers or the exhibitors. The only answer is good pictures, good entertainment and produced at a reasonable cost. The "reasonable cost" is quite different today than it was in 1943. Grosses have increased but the cost of production has multiplied to such an extent that it is frightening. You should be one of the first to climb on the bandwagon and help Al in what he is doing, for his plan, which after all is our plan, has been designed only so that the future of this industry may be reasonably assured. And when I speak of the future I am thinking not only of our company but of the motion picture exhibitors. I wish you would publish this letter. If you don't publish it put it in the file and remember it. One day you will want to publish it for I go on record as saymg that the present quality of production cannot be maintained by this studio or by any studio unless we receive a healthier percentage of the profits and the eventual outcome, if we do not receive our fair proportionate share, will be the destruction of the exhibitors. It gives me no pleasure to make the above prophesy. I do not like to indulge in painting portraits of gloom but neither do I like to kid myself. I know perfectly well that one day both production and exhibition will snap unless there is a realization on the part of the exhibitors that they must do their full share in encouraging in a practical way the continuation of the making of fine motion pictures. Sincerely yours, (signed) Darryl F. Zanuck.