Motion Picture Herald (Apr-Jun 1931)

April 11, 19 3 1 MOTION PICTURE HERALD 11 SCREEN ADVERTISING GOES TO TRIAL ON 3000 SCREENS IN ALLIED DEAL General Looks for Credit Data on Conn, and Conn Starts After Ditto on General; Result: Amazing There's an amusing yarn going the rounds involving Jacob Conn, the militant exhibitor from Providence, who, after contracting with General Talking Pictures for DeForest sound equipment, was deluged by a flood of credit investigators, all prying into his financial affairs and credit status before okehing installation of the equipment. All of which made "Jake" plenty "hot" under the collar. "Why," he reasoned, "should they snoop around my business and delve into my credit affairs? I know little or nothing about the credit of General, but there's nothing to stop me now from getting the low-down on that organization," or words to that effect. Conn, as a result, started an Investigation of his own. But, nowhere In banking circles could he find a line on General. Conn did not know that the Schlesingers, who control General-DeForest, avoid the listing of credit data in the U. S. Conn, however, enlisted the services of seven prominent banks, and after a long and exhaustive search found credit of the Schlesingers to be satisfactory. Very much so, as a matter of fact, inasmuch as the investigating banks found the combined wealth of the Schlesinger interests to be somewhere between $200,000,000 and $250,000,000, principally in South Africa. Clarke Going to London This Month To Talk Expansion London — The proposed London visit ot Harley L. Clarke late this month will involve new Fox expansion plans in Europe, it is believed here by insiders, who also expect Clarke to discuss the present indebtedness of the company to British banking interests in connection with Fox's theatre holdings in England. Hammons to Confer With Film Leaders On Product Hollywood — -When E. W. Hammons, Educational president, arrives from New York after completing arrangements to take over Tiffany, he will confer with Phil Goldstone, Tiffany's studio chief, and production executives of both companies regarding product and policy for 1931-32. At the same time, Hammons is expected to iron out reported differences between Goldstone and Tiffany. Goldstone is said to have made several attempts to quit since Emil Jensen, his candidate for buyer of Tiffany, failed to negotiate purchase of the company. Details of the Educational-Tiffany deal were definitely worked out Thursday. Only a few minor hitches remain to be settled. E. W. Hammons, Educational president, and Grant L. Cook, executive chief of Tiffany, under President L. A. Young, leave for Hollywood in a few days. Beacom Slated For Saul Rogers' Fox Law Post Saul Rogers will be succeeded by Harold Beacom as general counsel of Fox Film on May 1, it is understood. Beacom, a member of Winston, Strawn & -Shaw, Chicago law firm, returns to New York from a honeymoon in Bermuda on Sunday. Beacom's law organization, probably the most outstanding in Chicago, serves as one of Harley L. Clarke's legal advisors on his public utility interests. It is understood Beacom joins Fox under a five year contract and that Rogers, under terms of his agreement, still has four years to go. Technical Chiefs to Discuss Radio City Hollywood (QP) — Carl Dreher, supervising sound engineer at Radio Studio, leaves for New York April 15 to represent the studio in a technical conference on plans for the Radio City building being planned in conjunction with Rockefeller interests. Tom San+schi Dead Hollywood — Tom Santschi, noted screen actor, died suddenly Thursday morning. Open $1,000,000 House Erie, Pa. — Warner opened its new $1,000,000 theatre on April 10. One-half of Association's Theatres Booking First Large Scale Direct Test of Merchandising Invasion Now to Go Before Box Office Public Not less than three thousand of the six thousand screens of the members of the Allied States Association are to be. involved in what is to be the most extensive and intensive endeavor to make the motion picture theatre an instrument of paid advertising in the general merchandising field, in competition with radio and the press. The machinery of production and distribution is now being set up in the project by which Kinograms, a silent newsreel of varying fortunes operating from 1919 until last January, becomes the vehicle of advertising, delivered to the public through Allied Theatres. Is First Real Trial This will constitute the first reel trial on a large scale of the advertising on the theatre screen idea in terms which will permit a positive choice and decision by the theatre managements. The considerable distribution of advertising pictures which has thus far occupied the speculative attention of the industry has been through circuits where the will of a New York home office was superimposed on the local management. In the opinion of some of the more important executives of the industry, all of whom, however, are reluctant about public expression, the advertising picture and the endeavor of merchandisers to get before amusement seeking audiences presents an issue of the utmost seriousness. One of the keenest sales executives in the business holds that the advertising picture is fraught with tremendously destructive probabilities. Others, including notably persons of more recent acquisition of power, point to the radio as a promising precedent of public acceptance. Developing Sales Machinery Now it appears the Allied theatres are to supply the crucible of experience, with Kinograms, a resuscitated silent reel with sound strip accompaniment, as the channel of delivery. Kinograms will confine itself exclusively to the production of the reel and space selling to national advertising accounts, while Allied's various state units will set up a sales organization, with 100 to 120 salesmen, to sell the reel, a twice weekly issue to theatres. In some states. Allied leaders will handle sales. A large number of the contracts, it is expected, will be negotiated at Allied meetings or directly through association headquarters. Allied, it is understood, already has received between 1,600 to 1,800 signed con(Contmued on page 40)