Motion Picture Herald (Mar-Apr 1945)

AN OPEN LETTER to the Producers and Distributors In the interests of mutual prosperity — which you have been enjoying with increasing abundance, and which we are able to share in less and less — we, the members of the North Central Allied Independent Theatre Owners of Minnesota, feel impelled to put before you several urgent questions. 1. Do you, or do you not, believe in free enterprise? 2. Are you, or are you not, in favor of the system of business competition which has made this nation great? We believe you do not and are not. For if you did, the independent theatre owners would not have their backs to the wall as they now have. This is the direct result of your policies which appear deliberately designed to force us out of business so that the field may be yours completely. First run theatres in major cities are lavishing in unprecedented prosperity, while neighborhood houses have suffered a loss in attendance of at least 25 per cent. This is a paradox but nevertheless the hard truth. Pictures are kept in downtown houses for unprecedented runs and are completely "milked" by the time they are permitted to reach the suburban theatres. In spite of this loss of business by the independent exhibitor, you have enacted a confiscatory policy of high percentage and high flat film rentals. It should hardly be necessary to call to your attention the fact that the operating costs of theatres have sky-rocketed. Despite all the obstacles imposed on the exhibitors, the producers have seen fit to increase the cost of films to independent exhibitors to such a point that it is impossible for the exhibitors to make a profit. The independents have been put in a spot where the only profits in their theatres come now from the sale of peanuts and popcorn. We refuse to be reduced to the status of candy hawkers. Our business is the showing of motion pictures. The pictures we show should hardly be a "sideline" to the candy stand. Many small towns have lost a large segment of their population, because of the shift to war jobs in larger communities and because of the draft. What justice is there, what equity is there, in the demand of producers that the small independent pay such high flat film rentals and percentages that you producers are now exacting? The policy you are following represents CONFISCATION. And THAT, an impartial public will agree, is not America's way! The unusually large grosses gathered at the first run theatres in major cities apparently have intoxicated the distributors to the point where you have lost all sense of proportion arid value. Certain pictures formerly rating only bottom bracket rental now are placed in the top bracket when offered to the independent exhibitor. There is no price control code in our industry as yet — but, in the name of all that's decent, isn't there a code of morals for big guys to follow in their dealings with little guys? Gentlemen, the situation is serious. This is not crying "wolf". The facts are apparent to everyone in the industry. The independent exhibitors, as a matter of self-preservation, demand an immediate readjustment of the distributor's sales policy toward independent exhibitors. This is something of a family matter, and naturally we would prefer to settle it within the privacy of our own industry. But unless we are able to get satisfaction quickly and fully through the medium of open discussion, we intend to carry our fight to the theatre-going public and enlist the support of the nation behind our cause. We are prepared to press the issue. If necessary, we will go to the daily press and the radio. We will enlist the aid of our various representatives in Congress and of the appropriate government agencies. We will, if need be, place trailers on our screens to go directly to the theatre patron for his understanding and support. We have given our lifetime toward building up our business and we are not going to stand idly by watching distributors take our business away from us — which you are trying to do. We mean to stay in business and we mean to have you see the light. We believe in free enterprise. We believe in competition. We believe in the American way. We do NOT believe in the octopus-like operations you' are using to choke us. We pledge ourselvers to use every means at our command to eradicate this evil. Now — let's be reasonable. When do you want to start talking shop? North Central Allied Independent Theatre Owners, Inc., of Minnesota 607 Pence Building, Minneapolis 3, Minnesota