Harrison's Reports (1962)

Entered as second-class matter January ■!. 1321, at the post office at New York, New York, under the act of March 3, 1*79. Harrison's Reports Yearly Subscription Rates: Published Weekly by United States $17.00 Harmon's Repom, Inc. U. S. Insular Possessions . . . 19.00 Canada and Mexico 19.00 A Motlon picture Reviewing Service VT 160° B,roafW"y„ Other Countries 19.50 New York 19, N. Y. 4SeaCopy Devoted Chiefly to the Interests of the Exhibitors COlumbus 6-4484 Established July I, 1919 Martin Starr, Editor A REVIEWING SERVICE FREE FROM THE INFLUENCE OF FILM ADVERTISING Vol. XLIV SATURDAY, MAY 19, 1962 No. 19 Majors Face $ $ Trouble Financial trouble was one of the cohesives that was mixed with the brick and mortar that built this powerful motion picture industry of ours into a multi-billion dollar enterprise. From its swaddling days of the jumping tintype to today's ingenious development, financial trouble hounded much of the business like colic an ever growing child. But, out of this economic anemia has come an industry the en' during strength of which has been put to the test times without number down through the years. Today, as the majors are ready to give their accounting to their stockholders, we find two companies beset with financial difficulties. While no one, who is part of the industry via his occupation and sympathy, takes these money plights lightly, there is no necessity to plunge oneself into the sackcloth and ashes of resignation. The wise men of Wall Street will have us believe that no great financial empire was ever built without its periods of heavy debt. The greatness of our industry came out of mammoth financial gambles which pushed the companies into the debtors corner and kept them there for a long time. Eventually, the majors emerged triumphantly only, on the morrow, to find themselves occupying the dreaded corner again. Debts Hold So Fear tor Majors The instances of the film's debt-ridden method of operation are too innumerable to mention. But, the biggest and most challenging of them all will always constitute part of our glorious history. - and, that is, of course, Spyros Plato Skouras' one-hundredmillion-dollar investment-gamble in his faith in CinemaScope. That it became the savior of a gradually declining industry, no one will doubt. That this kind of money had to be mostly borrowed money, no one will deny. Thus, the debt and the debtor are united far too many times in the daily occupation of the men in whose hands lie the destinies of our majors to become too alarmed about it, now. These men won their success stripes by skyrocketing their companies from the murky shadows of the red-inked depths to the starry pinnacles of black-figured fame. But, no matter how secure their financial positions today, none is Nostradamus enough to know what the unknown tomorrow holds. - and so, whatever the financial instability of two of the majors, today, they will meet the unborn tomorrow with the courage, ingenious planning and faith in the future that have characterized the film industry since its birth. If the present may be a little discouraging, the future looms highly inspiring. (Continued on Bac\ Page) ITOA Unleashes Protests The alleged irregularities of practice on the part of the major film companies "--are subject to legal question," was one of the contentions of the Independent Theatre Owners Association of New York, the other day, as the organization met to go on record (unanimously) with a series of resolutions that are aimed at the dangers that are besetting the business life of member theatres of the ITOA. The highlights of the protest meeting, were the prevalent distribution practices which encourage competitive bidding and the employment of special releasing patterns creating extra runs. By this means member theatres are deprived of their normal and regular availabilities, contended the ITOA. Supporting the stand of the theatre men were strongly-worded resolutions that were drawn up and despatched to both the presidents and the sales managers of the major film companies. It is reported, that none of the distributing companies has as yet made any reply or given any official reaction to the resolutions. That this is not a new battle between the buyer (exhibitor) of product and the seller (distributor) is attested by the vigorous stands taken by the Allied States Association of Motion Picture Exhibitors on a national basis and the battle being waged, on its own, by the Allied Theatres of New Jersey. The latter unit is in hopes that, if the legalities are there, the alleged ill-practices concerning availabilities will be brought to the attention of the Department of Justice. To be sure, there are other exhibitor units, throughout the country, that are seeking relief from the costly situation that is created, especially, in the manner in which the majors are treating the exhibitors re the practices that have aroused the ITOA to its latest plan of attack, resolve and probable legal redress. (Continued on Bac\ Page) Exhibitor Units Being Organized This may well be the year when unallied exhibitor bodies will be joining or organizing state units in greater number than ever before. The Allied States Association of Motion Picture Exhibitors sees great progress ahead of bringing into the fold new units. To be sure, the unorganized theatre operator has begun to realize that running a complex business like his, needs every bit of experience, trouble-shooting help he can get from a national association like Allied States whose only interest is the exhibitor's.