Boxoffice (Apr-Jun 1939)

SCANT HOPE GOV'T OR ALLIED WILL APPROVE PACT; MAJORS PROCEED ANYWAY, SAYS KENT First Job Is to Finish the Draft; Then to Seek Its Acceptance Salesmen's Bonus Plan Hits; Grainger for It Nationally By BILL ORNSTEIN New York— Sidney R. Kent, president of 20th Century-Fox and chairman of the distributors’ negotiating committee, does not expect the government or Allied to approve the industry trade pact when it is completed. This will not retard distributors from going ahead, he adds. Looking wan as a result of a recent illness, but declaring he felt very well, Kent was interviewed in his stateroom an hour before sailing on the Brazil for Rio de Janeiro on his first South American visit. “I am very optimistic about the draft, but nobody knows about the government's attitude. I certainly don’t expect them to approve it and it would be very much of a surprise if the department of justice did.” As for Allied’s position, Kent said, “I don’t expect Allied to approve, but we are going ahead anyhow. There have been no indications from Col. Harry A. Cole, president, or Abram F. Myers, general counsel, on whether or not they approve, but that is their responsibility.” Without mentioning names, the draft committee chairman hit at the pact’s critics, stating “If everyone puts in half as much time in making the trade draft work as in raising hell, the industry will have a great document. If it doesn’t work, it is because more people would rather raise hell than see it work.” Another 30 Days Asked how long he thought it would take before the draft was completed, he said “It will probably take another 30 days to finish. It has been an extremely tough job and, while we’ve been at it long enough, we knew that when we went into it.” “The first thing,” he said, “is to get the plan finished and then get it accepted. As soon as this is done, the organizations which participated in the negotiations will sign, both for the associations and individually. This is the understanding reached when the independent exhibitor bodies were called in to sit down with distributors. Otherwise, we would not have gone into it.” The flood of anti-trust suits and the start of the new selling season are keeping the lawyers and sales managers quite busy and making it impossible for them to devote as much time as they would like to devote to the finalization of the pact, Kent pointed out. Asked about arbitration, the 20th-Fox head stated Richard Dwight of Dwight, Harris, Koegel & Caskey, attorneys for 20th-Fox and National Theatres, is concentrating on this phase of the draft. “That’s his job and his contribution. He is sponsoring it and he is responsible for Atlanta, Ga. — An employes bonus system that virtually makes a salesman an equal partner in an exchange, and by which his salary is commensurate with the number of satisfied customers he sells, has been so successful at the Republic branch here that James R. Grainger, Republic president, is urging other franchise holders to institute the plan. The original system was conceived by Arthur C. Bromberg, Republic franchise holder. He first tried it in Charlotte, later in Atlanta and then in New Orleans. It has as its incentive not only the number of contracts a salesman obtains from exhibitors, but makes it a condition that the salesman “helps to sell the boxoffice value” of the contracted pictures without overloading the account, while being responsible for the playing of each picture. As an illustration of how it works, the following figures indicate a typical approach to Bromberg’s system. A salesman in a given zone is assigned from 90 to 110 theatres as possibilities with it.” Kent added Dwight drew up the first distributor plan on arbitration with the assistance of Felix Jenkins, general counsel for 20th-Fox; Tyree Dillard of M-G-M and I. Howard Levinson of Warners. “It is working out very well. We are making good progress on arbitration pro — Photo by Cosmo-Sileo So u thAmerica-Bound — Sidney R. Kent, president of 20th Century-Fox, accompanied by Mrs. Kent, sails for Rio de Janeiro on his first visit to South America. a definite minimum quota of film rentals of $1,000 per week. The salesman is given an advance salary of $100 per week, which includes expenses. If he is traveling at his own expense this is estimated to cost him from $35 to $45 a week. On all revenue collected from the zone in excess of $1,000 each week, the salesman receives 10 per cent. This is said to have made it possible for some of Bromberg’s men to draw from $185 to $210 a week. Bromberg declares salesmen have adopted an entirely new viewpoint working under his plan. Tire men realize that instead of merely obtaining contracts, they must refrain from overselling; the pictures must be sold for what they are worth in order that the exhibitor liquidates his contract. Otherwise the bonus is void. Additionally, Bromberg maintains a bonus system for branch managers, bookers and cashiers, by which they receive five per cent of all film rental collections in excess of a reasonable weekly collection. visions and I am very optimistic about it,” Kent asserted. As for circuit representatives and how they will fit into the personnel of local boards, nothing has been formally decided. “I think this will be worked out with everybody in accord. The solution is under way.” However, the chairman of the distributors’ negotiating committee does not regard this as an important point. “We are trying to set up fair boards. The main thing is to have good men on it who will do their duty.” When questioned as to the process in naming the men on the local boards and whether NRA procedure of an executive body made up of independent and circuit men and distributors in New York would make the selections for all key cities, Kent said nothing had been discussed in this connection. “We haven’t finally decided on who the personnel will be and how the boards will be set up.” Various clauses of the draft will be put into effect by 20th-Fox as soon as they are adopted. As for this company making the clauses part of its contract, Kent said, “Every company will try to simplify its contract. We will try to standardize as fast as the terms are concerned, but there will be no standard or uniform contract. That is illegal. Each company will work independently on inserting the clauses. But this will come later. Our main job now is to complete the pact. Then it will be up to the exhibitors. It will go into effect as soon as they sign up. My guess is as good as anyone’s on how soon that will be.” 4 BOXOFFICE May 27, 1939