Harrison's Reports (1950)

entered as second -cia.ss matter January 4, 1U21, 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 L »n W V Publisher Canada 16.50 Wew TorK 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 Ug Editoria) 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, JULY 22, 1950 No. 29 ALLIED TO GATHER IN CHICAGO FOR ACTION AGAINST EXCESSIVE FILM TERMS Colonel H. A. Cole, chairman of National Allied's committee for the elimination of forced percentage selling, has sent the following telegram to all Allied regional units and Caravan groups : "With complaints pouring in from all over the country covering extortionate film rental demands, both flat and percentage, and with steadily declining box-office, the time has come when some considerate thought and drastic action is necessary. From one territory we hear of demands for 37J/2 per cent film rental for subsequent-run neighborhood houses where top demands heretofore on A product, not super productions, has not been in excess of 3 5 per cent, which in itself is much too high. In other territories we hear of Branch Managers (not salesmen) refusing to consider the impossibility of percentage terms demanded, even though exhibitors offer to open their books, the Branch Manager stating that he is not interested in whether exhibitor makes money or not. Some progress was made by Allied Percentage Committee covering very small situations, but no relief apparent for the great mass of theatres not in such group. A national mass meeting of exhibitors on this subject could get nowhere unless intelligent planning and an intelligent campaign is formulated by some central group. Allied Caravan and its National Committee is the only organized group formed for this immediate purpose. I have myself no definite plan in mind, but believe that a gathering of representatives of all regional Caravan units could arrive at some plan for action. Film companies are taking advantage of competitive situations and the bidding system to still further hike film prices and terms. This is accentuated by large number of drive-in theatres, many of whom are new in the business and unfamiliar with usual film prices and terms. Therefore, a meeting of representatives from local Caravan organizations is called at the Congress Hotel, Chicago, July 26-27. If you have not already made hotel reservations through us for such meeting, please wire me at once." The present outcry against excessive film rentals and terms, as evidenced by Colonel Cole's statements in his telegram, and by the statement issued last week by H. V. (Rotus) Harvey, chairman of the board of trustees of the Pacific Coast Conference of Independent Theatre Owners, reflects an unyielding attitude on the part of the producer-distributors, and unless there is an abrupt change in their selling policies the result may be disastrous to all concerned. In spite of the fact that complaints against high film rentals are numerous and insistent, and are com ing from all parts of the country, some distributor representatives are inclined to look upon this outcry as the usual squawk from exhibitors who are chronic complainers but who manage to remain in business year after year. Such an attitude is indeed shocking and discouraging, particularly since the film companies themselves, through their branch offices, reported to COMPO'S tax committee that 5 80 theatres had closed their doors permanently in the six-month period from December, 1949 to May, 1950. Just how many more theatres have closed down since May has not been ascertained, but the number must be considerable in view of the fact that there has been no halt in the steady box-office decline. There is a limit to what the exhibitors can pay for film. Asking them to pay rentals that cannot, even if the pictures were to be exploited intensively, leave them with a profit, is a poor business practice on the part of the producer-distributors, for, as Mr. Harvey pointed out in his statement, "\ . . you cannot sell a closed theatre; that revenue is gone!" The two-day Chicago meeting called by Allied, coupled with the strong protest of the West Coast exhibitors against high film rentals, should indicate to the distributors that storm clouds are gathering. THINGS TO COME! Now that President Truman has asked Congress for ten billion dollars and for broad authority to win the war in Korea and to protect the world against the threat of Communist aggression, it can be expected that Congress will speedily enact legislation that will once again put the nation on a war footing. To carry out the vast program of rearmament, the President requested, and will no doubt be granted, authority to establish priorities and allocate essential defense materials, and to requisition supplies needed for national defense. This means that in due time you may find it difficult to obtain replacement parts, and for this reason you should take steps immediately to conserve on every item and carefully supervise its use. Such items, for example, as tubes and electric bulbs, theatre chairs, carpets, carbon tetrachloride, frcon gas, projector carbons, cleaning solvents, soaps and many other materials that are vital in theatre operation may be as hard to get as during the last war. Motors and machinery should be repaired now and kept in first-class condition, and projectors and sound equipment in particular should be given constant vigilance. Proper care now will save you headaches later, and prevent the possibility of a dark house.