Harrison's Reports (1949)

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A REVIEWING SERVICE FREE FROM THE INFLUENCE OF FILM ADVERTISING Vol. XXXI SATURDAY, OCTOBER 29, 1949 No. 44 SALES POLICY ON "JOLSON SINGS AGAIN" DRAWING BITTER OPPOSITION Abe Montague, Columbia's general sales manager, had better get set for the fight of his life, for the organised exhibitors throughout the country are up in arms over his sales policy on "Jolson Sings Again." They charge that the terms are so high that, if an ex' hibitor wants to book the picture, he is virtually com' pelled to increase his admission prices. The sales methods employed by Columbia in offer' ing this picture to the exhibitors were blasted in no uncertain terms this week by both National Allied and Theatre Owners of America. Allied's action was taken at its national conven' tion, held this week in Minneapolis, following an announcement that Montague failed to respond to a telegram in which he was given an opportunity to defend his sales policy before adoption of a resolu' tion. In the telegram, Montague was told that a number of exhibitors had reported that "Jolson Sings Again" was being offered at a rental of 60%, which automatically required increased admission prices, or that Columbia required a guaranteed increased fixed admission price as a condition of bidding for the picture. Montague's failure to respond to the telegram unloosed a vociferous blast against Columbia from the convention floor, after which the convention adopted unanimously the following resolution : "It has come to the attention of this body that Columbia in the sale of 'Jolson Sings Again' is using in the various film exchange areas direct and indirect measures calculated to compel increased admission prices against the will of the exhibitors. "Our first reaction was amazed incredulity that a film company which had fought this issue in the courts for ten years should now defy the decision of the Supreme Court that this very practice is illegal. "Now, at the very time when the industry is rallying all its branches in the campaign to improve public relations, Columbia advertises its indifference to such efforts by attempting to force its customers to obtain from the public a greater price for its pictures than the exhibitors feel necessary or desirable. The first gun in the public relations program appears to be aimed in the wrong direction. "This convention hereby goes on record as entirely opposed to any dictation whatsoever by any film company in the matter of admission prices and specifically requests the directors and officers to collect, if possible, legal evidence concerning this movement, to file such evidence with the Attorney General of the United States, and request prompt action." The TOA action was taken this week at a meeting of the organization's Distributor-Exhibitor Relations Committee. In a prepared statement given to the trade press, the committee stated that it "viewed with alarm and condemned the sales policies adopted by Columbia in the licensing of the picture 'Jolson Sings Again' because these sales policies, namely, demanding of a stipulated sum for each admission ticket sold, or demanding an excessive percentage of the gross receipts, or other inequitable terms and conditions, compel the exhibitor to raise his admission prices in order to show the picture. These sales policies, in the opinion of TOA's general counsel, Herman M. Levy, are violations of the law. . . ." The statement added that the committee members firmly believed "that the theatre owner must be the sole judge of when he should advance his admission prices, and that the distributor may not legally, directly or indirectly, dictate the policy." A sub-committee was appointed to seek an immediate conference with Columbia "for the purpose of bringing these matters personally and emphatically to its attention so that these practices may be discontinued." The action, said TOA, was in line with the organization's expressed policy of seeking amicable adjustment of its problems before considering relief through litigation. With both National Allied and TOA on the warpath, Abe Montague would do well to reconsider the sales policies he has set up on "Jolson Sings Again," for, though he may succeed in getting profitable bookings at advanced admissions in a number of situations, such profits will not be enough to offset the profits that will be lost as a result of the formidable opposition that can be put up by these two powerful exhibitor organizations. There is more to this exhibitor protest than the mere buyer-and-seller wrangling in which each tries to get the best terms; it is an effort to nip in the bud an attempt by a distributor to circumvent the Supreme Court's ban on price-fixing. Additionally, the exhibitors know that today, when every effort is being made to combat the decline in theatre attendance, it will be suicide for them to hit the movie-goers with an increase in admission prices for a betterthan average picture, particularly since they pay regular prices for pictures that arc frequently sub-standard, and for which no cut in the admission price is offered. Columbia, as much as any other company, and perhaps more, has produced its share of poor pictures and has, therefore, contributed to the box-office de(Continued on bac\ page)