Boxoffice (Jan-Mar 1940)

Government Would Insist Upon Overseer in Suit Settlement (Continued from page 4) the fourth requirement which provides “that approval must be in a form which will permit ready reference to Congress, in order that the policy of the department may be under constant scrutiny.” In an effort to bring the matter to a head quickly, government representatives are understood to have been studying various ways and means to set up a clearance system which would tend to restore the business to open competition. That is, the small operator would be on equal bidding terms with the large exhibitor in his locale. One of the plans being studied is the coast clearance schedule which has been in operation the past five years. It was adopted with the NRA and continued since the Blue Eagle’s demise. This schedule is called “price zoning.” Under it, subsequent runs in San Francisco had availabilities reduced from 56 days to 21 days. In Los Angeles proper, all second run theatres charging the same admission get identical availabilities after the first run. This scheme tends to keep admissions up. The schedule is involved and, during the past few years, has brought squawks from independents as well as FWC, the most important operator in northern and southern California. Another plan is “the right to buy.” The Sees FWC Victory Over Gov't New York — Confident of victory for Fox West Coast in the government contempt proceedings on the coast, Charles Skouras, operating head, on his arrival here for a 10-day visit, stated, “I don't know of any settlement under way." Reports of a pending settlement have caused quite a disturbance on the coast, Skouras added. He insisted there was no truth to the rumors. government would like to see theatres of the same capacity in the same zone play day and date, providing admissions are scaled alike. However, the majors’ answer to this is that, while it looks fine on paper, exhibitors can build new theatres with a larger number of seats than the first run and claim priority on all product. Distributors then pose the question: “What is to become of our customers? Shall we take the product away from a man we have been doing business with all these years because some newcomer builds a larger and more beautiful house?” The sales heads answer themselves with: “No. We have to take care of our customer in j Reveren Charles BICKFORD OWEN DAVIS, JR. • DORIS DAY • PAUL GUILFOYLE A Republic Picture such cases, otherwise he will be ruined in three years or less.” The government says, for instance, it is not proper for Loew’s Century, an 800-seat house in Brooklyn, to continue to play ahead of Century’s Patio, a more up-todate house with approximately 2,000 seats. Loew’s, it is claimed, plays all of its subsequent runs before the Patio can get a picture. It also charges a higher admission than the Century, it is held. Recalling the NRA code authority meetings when alternates and second alternates quickly replaced the key men of the various major companies on the board of appeals, the government would insist on the top men themselves sitting on all disputes involving independent operators. The sessions, also, must be free of legal entanglements. By that, it is meant the industry must not repeat what was done at Code Authority meetings when attorneys comprised the majority distributor representation. In informal talks, department of justice representatives make clear their insistence there must be a free market. In this connection, counsel for the majors ask: “If the government insists on ‘the right to buy’ what is to become of ‘the right to sell’? Every distributor has the right to choose his own customer, yet the government demands we deal first with the man who has the more expensive house, regardless of our past dealings with him and also the feeling we have for our established customer.” Negotiations for settling the proceedings against FWC include elements of a plan which the department of justice would welcome for disposal of the all-industry suit. It is believed Washington will not put its stamp of approval on a settlement until a special master is named as its representative on a board to arbitrate disputes. It is the intention of the department to make all members of the arbitration board life appointments so that politics could not influence changes. Weeks Into Production ; Golden Reassumes Sales New York — George W. Weeks has resigned as general sales manager of Monogram to enter independent production for Monogram release, and Edward A. Golden, vice-president in charge of distribution, reassumes his former post as sales chief. Thomas P. Loach of Pathe has been named treasurer, and John W. Mangham of Atlanta, southeastern franchise holder, has been elected to the board replacing Norton V. Ritchey. The contracts of W. Ray Johnston as president and Scott R. Dunlap as vice-president in charge of production have been extended three years. Cole Expected to Head National Allied Again Washington — All indications point to the re-election of Col. H. A. Cole as president of National Allied when the organization opens a two-day board meeting at the Carlton Hotel, January 17-18. Among a discussion of policies the group will consider a place to hold the annual convention. Atlantic City has been suggested. 22 BOXOFFICE :: January 13, 1940