Boxoffice (Jul-Sep 1938)

JUSTICE DEPARTMENT EYE ON INDEPENDENT POOLING ARRANGEMENTS IN NEW YORK AREA To Kansas City RKO Opening New York — John J. O'Connor, RKO head of theatre operations; Fred Myers, film buyer, and Bill Howard, vaudeville booker, will journey to Kansas City for the September 2 opening of the Orpheum, remodeled 1,500-seat house. The party leaves Tuesday, stopping off in Chicago for conferences. The following day the men will be in Des Moines for a routine meeiing with A. H. Blank, whose theatres are pooled with RKO. The Orpheum, dark except for periodic road shows the past year, has been an Orpheum circuit property for almost 30 years. It has been entirely reseated and redecorated and replaces the circuit's Mainstreet, closed early this summer and which remains dark indefinitely. The Orpheum's opening attraction will be “Carefree." Agents in Quiet Scrutiny As Reports of a New Movement Rise New York — Pooling arrangements between independent circuits in the Greater New York area are understood to be the subject of scrutiny by agents of the department of justice, informed sources reveal. Within the past few weeks, FBI representatives are said to have quietly visited a number of independent operators with a view of checking into the situation. Strict secrecy has been maintained by those visited. Lately, reports are going the rounds that some circuits are again discussing pooling of about 100 theatres in the territory to offset buying competition of the more powerful chains. Last year when the new season’s selling was about to get under way, efforts were made to form a circuit for buying and booking purposes. The plan fizzled when numerous independent interests refused to give up control of their houses for stock in the new company. The only understanding that seemed satisfactory at the time was that the men in key spots would continue to operate, but film buying and booking would rest with a committee. While it could not be learned to what extent the investigation has proceeded at this time, it is said department of justice agents are particularly interested in the operations of at least two unaffiliated circuits. From Washington came reports that industry representatives next month are expected to confer with government officials on a consent decree with respect to the anti-trust suit. Attorneys for major companies scotch the report, replying they are anxious to have the action tried and “know where we stand.” Further poolings between major circuits in key situations have been abandoned until the equity suit is out of the courts. There are not expected to be any pools among local independents during the next Chicago Clearance Headed lor Court New York — Virtually admitting that discussions with Chicago independents have failed, the threatened suit against Balaban & Katz and major distributors is destined for the courts, John Balaban, head of B&K, told Boxoffice. For the past few weeks, and despite an assertion they would file an anti-trust action, Chicago independent leaders and attorneys have met with Paramount counsel in an attempt to reach an amicable settlement. “If you have to give up your business in order to clear up the points in question, it’s no good,” Balaban told Boxoffice. “Up to now it does not look promising. We will probably have to go to the courts to decide the issue.” Chicago independents are demanding B&K eliminate double bills or change the clearance setup to five weeks between Loop openings and first week of release. few months, but what is said to interest the department of justice at the moment is the existing pools and how they affect competitive operators. Foreign Films Make September Boom Bid New York — Foreign film exhibition makes its strongest bid for public recognition with six first runs breaking out with the first batch of new season product between September 7 and the end of the month. Three of the houses will reopen for premieres of new films. Considerable interest centers about next season’s crop of overseas product. For the first time, affiliated and independent circuits are watching boxoffice returns with a view to booking them on double bills with Hollywood product, a combination getting scant consideration until early this season. Outstanding among foreign pictures that received a big play at circuit houses were “Mayerling,” “Pearls of the Crown,” and “Monastery.” First of the new crop of films to get under way is “Counsel for Romance,” starring Danielle Darrieux, which opens at the Belmont, September 7. It is the last film to be made by the French star before her American debut. The opening may be a sponsored affair, with a $5 per seat scale. On September 12 two films will have premieres. “Grand Illusion” opens at the Filmarte, which has been closed all summer, under the auspices of the Hamilton House. Tickets for opening night have been scaled at $3.30, $2.20 and $1.10. On the same evening the British-made “Edge of the World” goes into 55th St. Playhouse. About September 20, the Fifth Ave. Playhouse will bring in “The Story of a Cheat,” written, produced and directed by, as well as featuring, Sacha Guitry. About the same time, the Squire will resume with a French film, a deal for which presently is being negotiated. The World is set with “Rancho Grande,” all-Spanish musical featuring Tito Guizar. Union Asks ff Substantial 77 Increase New York — A “substantial" increase in wages and a reduction in hours for its members will be asked by Local 306 when negotiations open immediately after Labor Day with the ITOA. Joseph D. Basson, president of the union, will head a committee to meet with the ITOA group, led by Harry Brandt, president. Under a 10-year agreement it is mandatory that both parties meet at the end of every five years to set terms for the ensuing period. When the original deal was consummated last fall Local 306 “was glad to get anything," a spokesman asserted, toward ending the bitter dual-union situation here that resulted in a series of stench bombings at theatres. Although the deal brought “peace," union leaders have been criticized from within for agreeing to a “below standard" wage scale. 16 BOXOFFICE :: August 27, 1938