Harrison's Reports (1950)

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 Iork zu> n *• 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 Rs Editorjal p0iicy; 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, MAY 27, 1950 No. 21 EFFECTIVE PUBLIC RELATIONS WORK On Friday evening, May 19, Allied Post No. 302, of the American Legion, gave at the Hotel Ambassador, in Los Angeles, its annual Americanism meeting, which was at' tended by about 600 Legionnaires and 200 Reserve Officers Training Corps cadets. As in the past, Mr. Charles P. Skouras was co-sponsor of the meeting. George Murphy, the well-known and popular actor, was master of ceremonies. High tribute was paid to Mr. Skouras by Mayor Fletcher Bowrun and high-ranking officers of the American Legion for the fine work he has done in taking part in movements to promote the interests of the American people, particu' larly the young folk, and to strengthen patriotism in general. There is no doubt that other exhibitors in different parts of the country either have sponsored similar meetings for a variety of worthy purposes, or have taken a leading part in them. And there is no doubt that the eulogies that were paid to Mr. Skouras were paid also to other exhibitors on similar occasions. These commendations cannot help benefitting the motion picture industry as a whole, for we thus make friends, and we need them. When men like Senator Edwin Johnson of Colorado introduce a bill in the Senate to control through a licensing procedure the moral conduct of film players and technicians, as well as the moral content of the films themselves, forgetting the fact that the motion picture industry has been one of the chief factors that helped the nation to reach its present greatness; when such men forget the fact that the American motion picture has shown people in every part of the world our democratic civilization, our progress in the arts and sciences; when men like him forget the services the motion picture industry has rendered to the nation in time of peace as well as in time of war — we need all the friends we can get. Mr. Skouras, because of the unstinting way he gives of himself to further patriotic and humanitarian causes, can be compared to a one-man public relations organization, and the more we have like him, the better for us all. And while we are handing out bouquets, let us not forget George Murphy. Mr. Murphy, like Mr. Skouras, is ever ready to take part in any movement the effect of which is to promote patriotism in any form. With his quiet dignity and his charming sense of humor, Mr. Murphy is a credit, not to his acting profession alone, but to the entire industry. He is the answer to the "slanderous" imaginings of men like Senator Johnson. LANE ENTERPRISES 170 Nassau Street New York 7, N. Y. May 18, 1950 Mr. Peter Harrison 1270 Avenue of the Americas New York 20, N. Y. Dear Pete: — Lately, whenever Harrison's Reports publishes an article of importance to the independent exhibitor, Mr. Spyros Skouras takes time out to reply in length. I have yet to see an independent exhibitor reply to Mr. Skouras' retorts. In your issue of February 11, 1950, Mr. Skouras, at great length, objected to "A Guide to Theatre Budget Control" published January 14, 1950. He objects most vehemently to the 25% allocation for film rental, including shorts, and states that he is greatly alarmed about it for fear that some "gullible exhibitors around the country will jump at conclusions and will accept this as a yardstick based upon thorough investigation." Mr. Skouras feels, and so writes, that the budget published in Harrison's Reports makes "a somewhat liberal allowance on other expenditures." He, of course, mentions the fact, "I have spent more years as an exhibitor than in my present field, which also includes the large responsibility in connection with the operation of quite a large circuit of theatres." I have thoroughly investigated the budget control and note no "liberal allowances on other expenditures." Certainly, 5% for advertising, in the metropolitan area especially, is not a "liberal allowance" when you consider the many forms of advertising which are employed; such as, newspapers, mailing lists, billposters, etc. Is 21% for payroll a "liberal allowance?" I think not. In fact, I know it is not. Is 15% for rent a "liberal allowance?" Definitely not. Let Mr. Skouras ask his brothers, George and Charles, and the various film buyers in his enterprises whether 25% for film rental is not a good, fair, and substantial allowance. In fact, Mr. Skouras should ask his brothers how long their film buyers would remain in their employ if they went much above that figure, not mentioning if they ever go that high. In your issue of May 4th, Mr. Skouras again took time out to reply to your editorial, "Let the Distributors Stop Penalizing the Exhibitor for His Showmanship Work," which appeared in Harrison's Reports of April 15, 1950. Of course, Mr. Skouras again mentions, "Therefore, as an old exhibitor I am dismayed by the philosophy put forth in your editorial by yourself and Colonel Cole asking for increased concessions in film rentals." What he particularly objects to, I believe, is the paragraph in your editorial which very plainly states that the present system of the sliding scale whereby the more the exhibitor takes in, the more he pays, is illogical. Does Mr. Skouras know (and I feel certain that he does) what the so-called sliding scale covers? If he doesn't, here's an example bearing out exactly the facts as Colonel Cole and you in your editorial so plainly stated: — Left to Cross Percentage Film Rental Exhibitor $4800 25% $1200 $3600 5000 28% 1400 3600 5275 30% 1582 3693 and so on. Note that with the additional $200 gross above the $4800 the exhibitor receives nothing. Out of the additional gross of $475 above the $4800, the exhibitor re ceived $93. Of course, Mr. Skouras is somewhat inconsistent in that same letter to you of May 4th. Here it is: — 20th CenturyFox's profits from film production were $3,667,000 in 1947; $3,768,000 in 1948 (an increase); and $3,899,000 in 1949 (an increase again). Aggregate theatre profits were $250,000,000 in 1947; $200,000,000 in 1948 (a decrease); and $175,000,000 in 1949 (another decrease and a tremendous one). Then Mr. Skouras states, "this is a lopsided situation." Ain't it the truth? This industry is all wrong from Producer, Distributor, right down to the smallest independent Exhibitor. I have the solution. All we need to do is to take a page out of Pal Joe Stalin's book. When he and his boys took over Russia, an absolute monarchy for over 300 years, they found that some of the people had for so many years been imbued with the old thoughts and ideals, Joe Stalin took a short cut and "liquidated" the leaders. Possibly this Industry could also use this method. I don't mean the extreme manner of "liquidation" that Joe used, but there ought to be some other method of liquidating the leaders of thought in the almost absolute monarchy our industry has become in the past thirty years. Put on the side-lines all the old-timers in the producing, distributing and exhibiting ends of our business (and I am including myself because I, too, am an old-timer) (Continued on bac\ page)