Boxoffice (Jul-Sep 1939)

CLEARANCE SQUAWKS MOUNT AT RATE OF ONE EACH DAY; DISTRIRUTORS BLAME GOVT SUIT Call Session to Air ''Pathetic” Protection Situation Upstate New York — A meeting has been tentatively set for July 11 in the office of H. M. Richey, RKO’s “trouble shooter,” to discuss possible alleviation of what is described as a “pathetic” clearance situation in Albany, Schenectady and Troy. Scheduled to attend are Si Fabian, Moe Silver, Warner Albany zone manager; E. Thornton Kelly, Allied of New York’s executive secretary, and Richey. The session, which has been once adjourned, is the outcome of complaints sent to Allied by Abe Stone, Eagle, Albany; Charles F. Wilson, Bijou, Troy; John Gardner, American, Schenectady, and A. Dwore, Cameo and Palace, Schenectady. The grievances all center about excessive clearance, coupled with allegations that product is costing more as the complainants’ runs are set back. Specifically, for instance. Stone avers he followed first runs by 30 days in 1930. In 1932, when Fabian took over operation of RKO houses in that territory, these units were given second run standing, and Stone was relegated to a subsequent run, he claims. With this, he continues, his availability was set back from 30 days to more than 60 days. It is his contention that all independent neighborhood houses be restored to a 30-day clearance. In other instances, it is claimed complainants are forced to follow affiliated houses although they are four miles away, charge lower admissions, conduct more frequent giveaways, enjoy selective buying power and operate, in some instances, less attractive theatres. Expect Decisions on UA And Columbia Petitions New York — Decisions are expected the latter part of this week from Federal Judges John W. Clancy and Edward A. Conger on the applications by Columbia and United Artists for additional bills of particulars from the federal government. It is rumored in court circles that few, if any, additional particulars will be allowed. Dismisses Patent Suit New York — Federal Judge Mortimer Byers on Friday tossed out the suit of Virgil C. Crites against Albert Radke, Warner Bros, and the United Research Corp. charging plagiarism of patents dealing with methods and means for optically reproducing sound. A. 3 ITOA Men Head For Washington New York — Although he has not decided who he will take with him, Harry Brandt, president of the ITOA, may invite Sol Strassberg and another large independent circuit operator and two exhibitors, each operating one house, to accompany him to Washington for the informal talk with Harry Hopkins, secretary of the department of commerce, on July 18. The idea, according to Brandt, would give the government a picture of the large and small independent operator in New York. An Anti-Trusl Trial Dale Unavailable New York — Paul Williams, special assistant to the attorney general prosecuting the government anti-trust action against the major companies, is back in Washington without being able to secure a trial date for the action. Williams discovered after his arrival that procedure requires he wait until 20 days after the filing of an answer, which will automatically place the case on the bottom of the trial calendar. Since the answers were filed June 29, Williams plans a return in two weeks at which time he will see Judge John C. Knox. It is understood there may be difficulty in securing start of the action in October. It also is rumored Judge Knox has informed the government he cannot grant a preference before 1940. This would necessitate a wait until then, which the government is unwilling to do, or an application for a statutory court. The statutory court consists of three judges, who would refer the entire proceeding to a special master. They, in turn, would rule on the master’s findings. However, Williams is not willing to have the matter referred to a master, as it would close proceedings to the public. Since it is claimed this is a public matter, all the light that can be thrown on the case is desired by the government. New Para. Suit Delay New York — Hearing on the application to dismiss the Paramount minority stockholders’ suit has been put over to July 18. Competitive Situations Get Serious Study by Major Exchanges New York — Clearance protests by independent exhibitors are pouring in at the rate of at least one a day, according to local exchange managers, who state this is unusual and “is a result of the government’s suit.” Exhibitors who have had grievances on protection, according to branch managers, are establishing their rights before the new selling season gets into full swing, seeking elimination of certain clearances and modifications where it is felt an injustice is being practiced against numerous houses. While some of the exhibitors involved may or may not have complained to the department of justice, there is a feeling on Filmrow that, unless branch managers lend an ear to the balks, the men protesting will eventually file their objections in Washington. Where exchange heads feel there is a basis for a change, efforts are being made to call in competitive situations for a thorough airing of the grievance. It is pointed out no alterations in established clearances can be made by distributors without the consent of the competitive situations. Study Fields' Complaint “After all,” one exchange executive stated, “the clearances have been established over a period of years and, although there may be sufficient reason for us to believe they should be changed, we can do nothing unless the second or third parties agree to suggested revisions.” The complaint of Jack Fields of the Cameo, Jersey City, is being studied by distributor attorneys and H. M. Richey, RKO field contact. Fields’ attorney has met with counsel for a number of major distributors and it is planned to confer with George Skouras of the Skouras circuit for action. None of the written complaints coming into local exchanges is being ignored. Distributors hold they want to help whenever they can as the new season gets under way. There is no desire to invite further suits on clearance, local sales executives explain, but it is not entirely up to the distributor. Cooperation must be had from competitive houses. But now, more than ever, distributors are inviting the competing operators to sit down and talk matters over. Plan Building Start Suffolk, Va. — Harry Roth and Roy Richardson of the Pitts-Roth Theatres Corp. plan to start work in two weeks on a new 1,000-seat house on North Main St. Opening is slated for Labor Day. BOXOFFICE :: July 8, 1939 E 19