Harrison's Reports (1955)

Entered as second-olass matter January 4, 1921, at the post ofnoe at New York, Now York, under the act of March 3, 18T0. Harrison's Reports Yearly Subscription Rates: 1270 SIXTH AVENUE Published Weekly by United States $15.00 ™ Y . on M v Harrison's Reports, Inc.. U. S. Insular Possessions. 16.50 wew 1 orK n' Im Publisher Canada 16.50 A Motlon plctUre Reviewing Service P. S. HARRISON, Editor Mexico. Cuba, Spaan 16.50 Devoted Chiefly to the Interests of the Exhibitors Great Britain 17.50 _, . , , -r , , •,„■.,> Australia, New Zealand, Established July 1. 1919 India, Europe, Asia 17.50 its Editorial Policy: No Problem Too Big for Its Editorial 35c a Copy Columns, if It is to Benefit the Exhibitor. Circle 7-46^2 A REVIEWING SERVICE FREE FROM THE INFLUENCE OF FILM ADVERTISING Vol. XXXVII SATURDAY, JUNE 4, 1955 No. 23 ALLIED-TOA TALKS WITH DISTRIBUTORS DELAYED The projected meetings between the joint commit' tee of National Allied and the Theatre Owners of America and the heads of Paramount and Warner Brothers, in an effort to seek a solution to the differ' ences between those companies and the exhibitors, did not take place this week due to the reported illness of E. D. Martin, president of TOA, who has been confined to his home in Georgia by his doctor. The proposed meetings probably will be delayed until Martin has recovered, but, since his illness is reported as not being serious, it is anticipated that an effort will be made to arrange the sessions for next week. Meanwhile, neither Paramount nor Warner Brothers has indicated whether it will meet with the joint exhibitor committee, nor is it known if either company has been formally requested to do so. A WISE DECISION Among the actions taken at the two-day board meeting of National Allied, held in New York last week, was the unanimous adoption by the directors of a resolution to the effect that no consideration will be given, "at this time," to a merger between National Allied and TOA. It was pointed out by both Abram F. Myers, Al' bed's board chairman and general counsel, and Rube Shor, president, that the board action opposing a merger was motivated by a desire to allay the "anxiety and confusion" stirred within the Allied ranks by trade paper stories dealing with the possibility of a merger. Several of the TOA officials have made statements indicating that they favored a merger, but Shor denied a published report that he, too, favored such a move and took specific pains to point out that he personally has always been opposed to the idea. In the opinion of this paper, the Allied board has acted wisely in making it clear to its members that no consideration will be given to a merger with TOA at this time. That the talk of merger was in the air is understandable in view of the fact that in recent months both organizations have been working closely together in the effort to combat distributor abuses, and that their viewpoints on a number of trade practice issues appear to be identical. The fact remains, however, that Allied represents mainly the small exhibitors, while TOA is dominated by the large circuits, and there has been no definite indication that the two organisations will follow a common approach if it comes to a showdown with distribution in the current hassle. Allied, for example, is committed to a policy of seeking Federal regulation of the industry in the event sufficient relief is not forthcoming from distribution. The TOA, during the past six months, has taken a forceful stand against harsh distribution policies, but to back up its stand it has resorted to no more than veiled, indecisive threats that, unless relief is obtained by peaceful means, it will seek such relief "through any other means necessary." It is known that several of the TOA leaders favor joining Allied in the move for Federal regulation if such a step becomes necessary, but other powerful TOA leaders, such as Leonard Goldenson, president of American BroadcastingParamount Theatres; Sam Rosen, executive vice-president of Stanley Warner Theatres; and Sam Pinanski, head of American Theatres Corporation, have made it clear in recent statements that they are strongly opposed to the idea of going to the Government for relief. This difference of opinion within the TOA leadership leaves open the question of whether the organization will give meaning to its threats of drastic action in the event of a showdown with distribution, or whether it will revert to its weak-kneed policy of former years — a policy that has gained it nothing if we are to judge from the wails now being heard from the big circuits. Until the TOA makes its position unmistakably clear, Allied, as said, is acting wisely in discouraging any idea of a merger. OTHER ACTIONS TAKEN BY ALLIED'S BOARD Two other important actions taken by Allied's board of directors last week included a protest against the stiff rentals demanded for feature films produced with Government cooperation, and a request that the Department of Justice set up machinery that will give affected exhibitors the right to be heard in all cases involving applications for theatre acquisitions by the divorced circuits. The resolution regarding feature films produced with Government cooperation protested the use of the armed forces and other Government personnel and equipment when such films are offered to the theatres by the distributors "at such excessive terms as to materially reduce the number of theatres that can show them." The resolution added that "the purpose of the armed forces in affording this cooperation is to secure favorable publicity, and in order to achieve that purpose the films must have the widest possible circulation." (Continued on bac\ page)