Boxoffice (Apr-Jun 1939)

A1 U LI El 0 I w ARl N! 1 0 F” ca: rci si JH1 U 1SEI S "] IN '] S ETUI ( 1 Cl 01 HI [ RAI CTS ;1 in « 5ES a im no N 01 S3 9 l-4I ) B1 0 YII SG Points Out Each Major Acts Independently On Industry Pact No General Clearance Shift in N. Y.; Exchanges Adamant Syracuse, N. Y. — Members of Allied of New York, in session here recently, were warned to “watch catch phrases in new contracts’’ and to delay new season buying until Abram F. Myers, general counsel for the national organization, has had an opportunity to study the final trade practice draft sent out by distributors and also new contract forms which are to include provisions of the draft. The probability is Allied men all over the country are being similarly advised by their leaders, either at special meetings or by bulletin. M-G-M, it was stated, will include the trade pact provisions although new contract forms have not yet been printed. Whether other companies will do likewise is not apparent at this time, but it is understood each distributor is acting independently on the issue. Warn of “Worksheet Terms" “Watch for catch phrases and don't let the distributors take your birthright away,” Allied members were told. The exhibitors were also told to be particularly careful while discussing terms on work sheets in view of so-called practices by some distributors to permit the playing of some pictures until a final agreement is signed. The view held here was that, when pictures are dated during negotiations, contracts become retroactive and hence exhibitors may be held to the terms of specific clauses not previously familiar, thereby perhaps jeopardizing their rights. “Everybody is now out selling,” the theatre owners were told, “and guard yourselves. Set up machinery now and do not get caught in the middle of a wave.” Myers, who a few weeks ago held a twoday conference in New York with a distributor’s legal committee comprising William J. Donovan, Austin C. Keough and Robert W. Perkins, is understood to have made a number of suggestions which were turned down by major companies. He will analyze the final trade draft for national Allied and “if he thinks it important” will call upon the board of directors to pass on it. If Myers feels the trade pact is meaningless and not worthwhile to discuss it with the board, “the matter will be disposed of via the bulletin route.” Promised Myers Report Allied of New York members were promised a full report on Myers’ reaction to the draft and what to look out for when signing contracts for the new season. Another factor leading to the warning “not to buy now” was the demand by Allied men here for established clearances so that they might know where they are N . Y. Independents Alter Cuts New York — With distributors declaring they are eliminating score charges in compliance with the provisions of the trade practice draft, exhibitors locally are reported prepared to ask for reductions, instead of granting increases, on new deals. Score charges, in many instances, have meant an additional levy of $5 a picture for independent exhibitors. These theatre operators hold that, when talks for new season buys begin, they will insist on lopping off $5 on each picture. at when the time comes to negotiate new deals. “Be careful in your relationship with exchange managers,” the men were cautioned. “We are definitely determined each man is entitled to a bill of rights and no one man will dominate the situation. Schine must go!” Exchanges are reported not averse to the fight brewing between Allied and the Schine circuit on clearances. Branch managers are not entering the fray, it is said, but some are reported standing on the sidelines ready to assist Allied. It is understood Allied is prepared to spend more than $5,000 in an anti-trust suit against Schine and the major companies, with M-G-M and several other distributors in the middle, in an effort to break down the entire upstate New York clearance situation. Basis for the suit will be the Michael Boumansour charge he is being driven out of the Plaza, Malone, because of allegedly unfair tactics by Schine (Continued on page 22) New York — Neither Allied of New York nor Allied of New Jersey has requested any information from local exchange heads regarding clearance setups in the Greater New York area. If such requests are made, it is stated by branch managers, they will be denied. However, one prominent major company sales executive says no changes in the existing protection setup are expected and the only time alterations of radical revisions are made is when a major company sells away from the major circuits, for one reason or another. This was borne out several years ago when the Loew circuit did not buy half of the Warner output as it had previously done. There was some question whether RKO would close for the other half, but before a deal was concluded, Warners had sold away to Century circuit for several Long Island situations. Century Moved Up It then developed that the few Century units which had been second run moved into the first class category, in opposition to Loew’s and RKO, and with it other neighborhood houses moved up from third to second run. With the expiration of the Warner deal, the Century houses are now back on their old clearance schedule. Sam Cocalis also got a break in one or two spots as a result of the Warner-RKO differences, but he likewise has resumed his former status. Philadelphia — Sidney Samuelson, business manager for Allied of Eastern Pennsylvania, is understood from reliable sources to have approached several major exchanges for records on local clearance schedules. Branch heads are reported to have turned Samuelson down, informing him at the same time they will discuss clearance when exhibitors are either contacted or come in on new film buys. Clearance Test Under Pact Looms New York — First local test of the trade pact provision on new theatres and prevailing clearances is expected when Randforce opens its new house in the fall at Clinton St., Brooklyn. Several exhibitors in the neighborhood are already worried about the situation because of the buying power of Randforce. According to the trade pact, new theatres, regardless of size, are supposed to follow existing theatres on protection. The new house is to seat 1,800 and will be designed along latest lines. The question is: With a brand new house in the neighborhood, should the theatre follow outdated and smaller units? Some theatremen see this situation as one of the first under arbitration and, at the same time, foresee it setting up a precedent. 6 BOXOFFICE :: April 8, 1939