Harrison's Reports (1950)

Entered as ■eoend-c'.ass matter January i, 1921, at the post office at New YofK, New York, under the act ot 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 N v u «>n w v Publisher Canada 16.50 New York <*°« 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 .... 17.60 Ug Editorial Policy: 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. XXXII SATURDAY, MARCH 4, 1950 No. 9 THE MIRACLE OF UNITY The appointment of Abram F. Myers, National Allied s general counsel, as chairman of the Council of Motion Picture Organization's Committee on Tax' ation and Legislation was a ten-strike for the industry, for Mr. Myers, having become convinced that all seg' ments of the industry were sincere in the movement to protect and safeguard our business and to develop a sound public relations program, rolled up his sleeves and proceeded to work for the common good. The manner in which he and his able committee members mobilized the industry for the all-out campaign against the federal admission tax serves as a clear demonstration that maximum coordination and cooperation of all branches of the industry can be attained when we are united in a common cause. The harmony with which this campaign has been and is being conducted was aptly put by Mr. Myers in the talk he made last January at the 20th CenturyFox showmanship meeting, at which time he had this to say, in part : "The several industry groups which for years have been making snoots at one another have found in the tax menace a common ground on which they can stand in defense of their common interests. Not only are all factions united in the common cause, but they are working together with right good will, and the pledges of support which I have received from rival organizations have been no less cordial than those received from the Allied stalwarts. . . . This united effort is as sincere as it is inspiring, and it should command the respect and support of everyone." Now that the tax campaign has proved that all factions in the industry can work together in harmony, why not start another campaign, this time to improve our internal relations? Ever since the moving picture became a stable business, buyer and seller have considered themselves like sworn enemies. To alter that feeling and bring about more harmonious relations between the two is not only highly desirable but also essential, if the industry is to devote its efforts to meeting the competition for a just share of the public's entertainment dollar. The producer-distributor must realize that, because the film he sells is of an unknown value, even when it it adorned with the most popular stars, the exhibitor strives to buy it at the most favorable terms possible in order to make sure that he will be left with a reasonable profit, and that he will cover also whatever losses he may have sustained on other pictures for various reasons, not the least of which is bad weather — there is nothing unnatural about that. By the same token, the exhibitor, too, must realize that the producer-distributor must recoup his costs, with a safe margin of profit, enough to cover also the losses he had sustained on other pictures of his that had fallen down — there is nothing unnatural in that either. The exhibitor who, because of circuit buying power, or a closed situation, or for any other reason, is not paying a fair film rental commensurate with his gross receipts, takes unfair advantage of the producerdistributor and is reaping unjust profits. Conversely, the distributor who makes special concessions in film rental to such an exhibitor, and then seeks to equalize what he should have received by penalizing another exhibitor with excessive film rental demands, is equally unfair. No matter what arguments each side can present, we cannot get away from the fact that neither one can exist without the other. Each side has an investment to protect, and the quicker both realize that they must deal with the other on a basis offering reasonable opportunity for profit, the sooner the business will be on a healthy basis. Each side should stop calling the other side names. Negotiations for the buying and selling of product can be carried on without resorting to words that bring about bitterness. As head of COMPO, Ned E. Depinet, president of RKO, can do a lot to start a movement to bring about a better understanding of the fundamental relationships between the producer-distributors and the exhibitors. The industry has become of age and it is time that its components stopped acting like suspicious children. THE FORGOTTEN TAXPAYERS Joe Kennedy, manager of the El Portal Theatre, a Fox-West Coast house, sent me a clipping of the following editorial, which appeared in the February 18 issue of the North Hollywood Valley Times, under the heading "Eliminate Admission Tax" : "Motion pictures have been and will continue to be one of the most refreshing forms of entertainment available to American families — if they are not taxed out of the theatres. "Relaxation is a necessity -not a luxury — and the Federal government must cease collecting a 20 per cent war time excise tax on admissions. "Actually, a situation has arisen where those who pay a major portion of this excise tax have no voice in government they are the youngsters of our Nation. (Continued on bacl{ page)