Exhibitors Herald (1927)

22 EXHIBITORS HERALD April 2, 1927 EXHIBITORS HERALD Qjke independent ^ilm ^ade ^aper Martin J. Quigley, Publisher Editor Published Every Wednesday by Exhibitors Herald Company Publication Office: 407 So. Dearborn St., CHICAGO, U. S. A. Martin J. Quigley, President Edwin S. Clifford, Secretary George Clifford, Asst. Treasurer Member Audit Bureau of Circulations Copyright, 1927, by Exhibitors Herald Company All editorial and business correspondence should be addressed to the Chicago office Others Publications: The Chicagoan, class journal; and the following motion picture trade publications published as supplements to Exhibitors Herald: Better Theatres, every fourth week. The Studio, every fourth week, and The Box Office Record & Equipment Index, semi-annual. VoL. XXIX April 2, 1927 No. 3 High Pressure Deals A PARTICULARLY vicious system of coercion is being practiced upon exhibitors by real estate operators in various parts of the country. The system is leading to an intensification of one of the worst evils of the business. We refer to the promotional efforts of a certain type of real estate operator who deliberately selects a location and sets out to compel the exhibitor in the territory to buy it from him. In some cases the real estate operator does not attempt to negotiate on the mere piece of property but even proceeds to have a theatre building constructed. While the building is under construction the theatreman is given an opportunity to come in on the proposition — usually at terms which can hardly be said to be favorable — or to face the prospect of the theatre, at its completion, being turned over to someone else to operate. Where the evil appears in its worst form is where the neighborhood is adequately seated or over-seated. With the addition of another theatre the exhibitor finds himself sternly up against a losing proposition; not only the new theatre cannot be made to pay but the fact of its being operated takes the profit out of other houses — or increases the losses, as the case may be. The entire situation is an intensification of the surplus seat evil. And this is the evil to which we refer as one of the worst in the industry at this time. The mad scramble for more theatres already has taken the profit out of many districts and if the condition continues other districts will be added to this list. It is bad enough when a theatreman simply makes a mistake and over-builds. But it is distinctly worse when tricky real estate operators seize upon the exhibitor’s fear of competition and resort to the above-named means of compelling him to take over properties he does not want. The obvious remedy is for exhibitors to stiffen up against this type of manipulation. If buildings that are not required and not wanted are put up, let someone else come in and operate them at a loss. With too many theatres in a district all will suffer but it is much better for an exhibitor to remain master of his destinies and refuse to be railroaded into deals he does not want, than to meekly submit to such trickery. Competition is hardly ever welcomed and certainly is resented in a locality which already has ample theatre facilities. But if competition insists upon coming in, then the exhibitor can only seek to institutionalize his theatre, build its popularity, and fight the opposition on a clean cut competitive basis. There is no royal road leading to the avoidance of competition. It may not be pleasant to contemplate but it is very often much better to have competition than to be loaded down with properties which have only been built with the idea of clubbing the exhibitor into buying them. Realizing Forecasts The possibilities of motion pictures and motion picture theatres which have existed conversationally for a long time now exist in reality in the records of the Roxy theatre for the first week of its existence. For the first week the revenue amounted to $127,611 which represents a record for every kind of theatrical entertainment and every kind of theatre. Those of us who have spent a long period of time in the motion picture business have grown accustomed to what were once staggering forecasts of the possibilities of the business. But now it is possible to look back over the period of the past few years and note that a goodly number of what once seemed almost absurd forecasts have actually been realized. And, certainly, it may now be said that the motion picture still has a great way to go, and great new accomplishments to achieve. The motion picture, of course, will one day be found to be reaching the limits of its developments ; but no one now living will see that day because the distance it has already gone — vast though it may be — amounts only to a step in the distance that it is yet to go. There will be other Roxys and other weekly receipts of $127,000 hut in the meantime let us not lose sight of the fact that this record in itself is something well worth boasting about. Roxy, the visionary, finds another vision realized. A Severe Remedy An extremely interesting situation has been created in. England by the Government’s Film Quota Bill. After much agitation and much consideration the measure was decided upon. The primary objective of the hill is the rehabilitation of the British producing industry. The problem to be solved has been a severe one and the measure, as proposed, likewise appears as a severe remedy. The proposed law would amount to an unusual governmental and legislative support; one so sweeping that a parallel to it would be difficult to find in the laws of any nation and one that is hardly conceivable in the light of the United States government’s attitude toward business. It certainly is a sweeping and deep-piercing move to establish the British producer in a firm and profitable position. What it is calculated to do for the producer is one thing, but under it the exhibitor’s position is quite another thing. Unless the British producer can immediately become almost a miracle worker the operation of the measure will leave the exhibitor in an extremely difficult position. And it is this phase of the question which may cause delay or even radical revision. The radio problem is dividing itself into two distinct classifications; one for the large houses and circuits which can use it and one for the smaller houses which caimot use it and for which it only proves a type of formidable opposition. The radio, therefore, may he said to be a benefit in one way for the industry and an injury to it in another. Houses that are enabled to avail themselves of radio publicity naturally are entitled to use it and for the houses which cannot there seems to be no recourse. But for the industry as a whole there seems no doubt that there should he a policy against broadcasting theatrical entertainment during theatre hours.