Harrison's Reports (1955)

Entered as second-class matter January i, 1921, at the post office at New York, New York, under the act of March 3, 1879. Harrison's Reports Yearly Subscription Rates: 1270 SIXTH AVENUE Published Weekly by United States $15.00 „„Y . ,n N Y Harrison's Reports, Inc.. U. S. Insular Possessions. 16.60 NeW T°Pk Z0' N' *' Publisher Canada 16.50 A Motlon picture Reviewing Service P S. HARRISON, Editor Mexico, Cuba, Spain 16.50 Devoted Chiefly to the Interests of the Exhibitors Great Britain ... 17.60 Established July 1, 1919 Australia, New Zealand, India. Europe, Asia 17.60 it8 Editorial Policy: No Problem Too Big for Its Editorial ~ . „ ..„„ 35c a Copy Columns, if It is to Benefit the Exhibitor. <~ircie t-^u A REVIEWING SERVICE FREE FROM THE INFLUENCE OF FILM ADVERTISING Vol. XXXVII SATURDAY, JULY 30, 1955 No. 31 ALLIED DECIDES TO PRESS FOR GOVERNMENT AID Meeting in Washington on Wednesday and Thursday of last week, National Allied's board of directors expressed its dissatisfaction with the results attained thus far in the effort to obtain relief from current distributor policies and decided to press for Government intervention in accordance with the organization's Emergency Defense Resolution. In a formal statement issued after the meeting, the board announced that the subcommittee of the Emergency Defense Committee, which, in collaboration with a like group from TOA, visited the various film company executives in an effort to secure lower film rentals and equitable terms and conditions of license for the members of both organi' zations, had completed its assignment and was discharged. After expressing appreciation for the work done by the subcommittee, the board had this to say: "While accomplishments of the subcommittee fell far short of the hopes and expectations of the board, consisting only of oral promises made by certain film executives in general terms and relating only to the very smallest exhibitors, and, in the case of some companies, being confined to distress situations, nevertheless, the board was of the opinion that the need of virtually all exhibitors for relief, and especially the very small ones, is so great that any step in that direction, however meager, should be welcomed. Consequently the board accepts at face value the assurances given by the various film executives that the promises made will soon be publicly proclaimed and put into effect." The board added that copies of the subcommittee's re* port, containing the substance of the discussions had and the commitments made, will not be made public "until the film companies have had a reasonable time in which to announce and put into effect the promised changes in their selling policies." Tieing in its action with the Emergency Defense Resolution, the board made these comments: "In the opinion of the board the commitments obtained by the subcommittee from the film companies do not approximate either in the nature of the reform or in coverage the concept of a fair and equitable division of the boxoffice dollar as between distributors and the exhibitors embodied in the Emergency Defense Resolution. That resolution was adopted and proclaimed by the board of directors at the While Sulphur Springs meeting August 14, 1954, and reaffirmed by the board of directors at the St. Louis meeting on February 7, 1955. "With attention fastened upon the efforts of the subcommittee in association with the TOA to secure the necessary relief by orderly process of negotiation and agreement, some observers appear to have overlooked the fact that the Emergency Defense Resolution, ever since it was adopted, has stood and still stands as the basic policy of Allied in regard to conditions in the film market and its attitude toward other elements in the motion picture industry which are responsible for those conditions. "The resolution provided, in substance, (a) for the dissemination by E.D.C. among the members of accurate in formation and bona fide opinions relating to market con-, ditions for their individual enlightenment and guidance; (b) for petitioning Congress for the enactment of a bill regulating film prices, if that course should be approved by the Milwaukee Convention (as it was); (c) for encouraging the independent production of motion pictures in order to relieve the starved market in every feasible way and as opportunity affords; and (d) for keeping the door open at all times for the reception and consideration of any proposals the film companies may offer, or any reforms they may voluntarily adopt, for relieving the intolerable conditions which have been foisted upon the exhibitors. "The board of directors wishes to make it clear to all concerned that while action under the resolution has been delayed in order to allow the subcommittee ample time in which to explore the possibilities of a peaceful settlement of the matters under discussion, and in order that Allied might perfect its case for presentation to Congress, it is now prepared and determined to go forward with the entire E.D.C. program and will do so as rapidly as circumstances will permit." That Allied will endeavor to show Congress that the film companies can and do prosper under Government regulation is contained in the following closing remarks of the board statement: "Information acquired by Mr. Julius M. Gordon, Secretary of Allied States Association, during his recent sojurn in Europe, and information acquired by the general counsel (Abram F. Myers) from various embassies and by correspondence with exhibitor leaders abroad, is expected to influence the thinking and attitudes not only of members of Congress toward regulation of film rentals but also to reassure the few exhibitors who have been made uneasy by the propaganda emanating from the film companies concerns ing the dire consequences to the exhibitors if such regulation comes to pass. "What the film companies have withheld from the American exhibitors is the fact that in virtually all European countries there is some form of government-imposed ceiling on film rentals and in some there is what amounts to compulsory arbitration of film rentals; and that, under these regulations, and apparently because of them, the foreign exhibitors are prosperous and happy. "Legislators and other government officials, it is believed, will be interested in and their thinking influenced by the apparent effect of European quota laws in starving the American film market. The relation between the number of pictures that may be exported by American film companies under the quota laws and the number being produced and made available in the American market appears too marked for mere happenstance. Allied is determined to find out whether the quota restrictions of foreign countries which grant subsidies to their own producers are having the extra-territorial effect to regulate production in this country and, if so, what our government proposes to do about it." Among the other actions taken by the board was the adoption of a resolution condemning "the growing practice of the film companies in demanding as film rental for virtu(Continued on bac\ page)