Boxoffice (Jul-Sep 1939)

No Exclusive First Runs— Columbia (Continued from page 17) percentage or otherwise, that he paid to Columbia, the answer declares. On optional contracts the distributor says “there is no discrimination between affiliated, independent or independent combinations of exhibitors.” Neither is there any discrimination on contract modifications. The same applies to overages and underages, cancellation of short subjects, moveovers. In each instance Columbia cites the threat of a boycott, particularly in “controlled” territories if independent groups were not granted the same privileges as affiliated groups. Several Lisied as Unaffiliated The company lists 156 theatres, affiliated and not, which play a split of Columbia product to develop its argument no theatre buys exclusively. Most of the classifications are known, but all of them are interesting and some may be new. For example, Robb and Rowley’s Mirror, Dallas, is down as not affiliated; Malco’s Paramount-Central and Central, Hot Springs, Ark., as not affiliated: Randforce’s Senate, Brooklyn, as affiliated; Skouras’ RivoliHempstead, Hempstead, L. I., and Lafayette, Suffern, N. Y., as affiliated: Walter Reade’s Strand, Freehold, N. J., affiliated and Wilmer and Vincent’s Embassy-State, Reading, Pa., not affiliated. Skipping around geographically, these, additionally, are named: UA Theatres Circuit of which Joseph M. Schenck, chairman of 20th-Fox, is president. owns a 50 per cent interest in the Robb & Rowley houses. While UA Theatres is non-affiliated, this same circuit owns 80 per cent of Metropolitan Playhouses which controls the operations of Skouras Theatres and Randforce. RKO owns the other 20 per cent in Metropolitan, but George Skouras has complete management in his group of some 60-odd houses, v/hile Louis Frisch and Sam Rinzler guide the activities of Randforce, which has 50-odd theatres in Brooklyn. Because of RKO’s 20 per cent interest, Columbia lists Skouras and Randforce as affiliated, but the trade generally regards these circuits as “Simon pure” independents. Malco Labeled Alfiliate Paramount owns 50 per cent of M. A. Lightman’s various theatre interests with the exception of Hot Springs. While the two theatres mentioned are listed as nonaffiliated, the trade generally accepts Malco as a Paramount affiliate. Lightman alone guides the operations of the circuit. Reade is pooled with RKO in New Brunswick, N. J., and the rest of the circuit is independently operated. Yet the Strand, Freehold, N. J., is down as an affiliated unit. Wilmer & Vincent have several Virginia units pooled with Loew’s, which would make the circuit an affiliate; yet the Embassy-State, Reading, Pa., is not classified as an affiliated project. Dubin Plans Newsreel House in New York New York — David Dubin, who operates the Grand Central Newsreel Theatres, will construct another newsreel house across the street from the terminal on the south side of 42nd St. near Vanderbilt Ave. Other developments in metropolitan theatre activity have Ruben Grisman, brother of Sam Grisman, Broadway producer, reopening after Labor Day the Warburton, Yonkers, with a policy of class pictures and stock shows; Dave Schneider taking over the Kameo, Bronx, and Arthur Eisler acquiring the Fisk, Winfield, L. I. Loew Cash Position Is Almost Doubled New York — Loew’s cash position has been increased from $8,000,000 to $15,000,000 as a result of refunding arrangements entered into with the First National Bank of Boston and the Equitable Life and Metropolitan Life Insurance Co., an executive of the company told Boxoffice. “Although there is no immediate need for the money, we are taking advantage of the low interest rates,” the Loew executive added, “and at the same time building up our cash position.” Another advantage cited is the extension of a loan to double the period without materially increasing the interest charge. The six per cent obligation of $7,000,000 in bonds due 1946, under the refunding plan, has been extended to 1954 at an average interest rate of 3 1/3 per cent. Retiring $7,000,000 in Loew’s Theatre Realty Bonds, the company will pay off the loan of $3,750,000 from the First National Bank of Boston in five years with semi-annual payments of $375,000. After this has been paid, the agreement with the insurance companies calls for $400,000 semi-annual payments over 10-year period. The $7,000,000 which will go into the Loew treasury as a result of the refunding are assertedly not needed for production. The Idea Would Be Different, Anyway New York — The unique circumstance of three men, allied with national Allied until the association disavowed the New York unit, as co-defendants in the government suit looms. This is how: In its extended answer, Columbia lists 19 local area theatre companies and individuals with whom it made contracts last season an asks that, since these contracts are to be affected, the exhibitors and their companies should be made co-defendants. They are the Bell Amusement Co. in which Max A. Cohen, president of New York Allied, recently purchased a substantial interest under an agreement with Ben Sherman; Mitchell Conery of Ravena, N. Y., a regional vice-president, and A. McNamara of Alexandria Bay. At the time Columbia made its request for inclusion in the co-defendant column, national Allied had not broken with its New York unit. The remaining 16 are the Music Hall, Marcus Loew Booking Agency, Catskill Theatres Corp., M. F. Tubbs, Philip Eisenberg, Robert C. Kay, Coney Island M. P. Corp., Chester Didsbury, Kimball Amusement Corp., Highland Theatrical Co., Manor Theatre Corp., Loren Theatre Corp., Bennie Berman and Joseph Rosen, partners; Arthur Enterprises, Gemma Amusement Corp., and Tryon Amusement Corp. Foreign Producers More "Competition" Now (Continued from page 17) Germany and Austria to France of capable talent due to recent political conditions in those countries. “Recently, leading figures in the motion picture field formed companies for the distribution of pictures produced abroad. The recent announcements of one of such companies indicates it will distribute no less than 25 feature foreign films to a very substantial num’aer of theatres. Takes a Sideswipe at Brandt; Defends the 'Decrepit” Star New York — Taking a whack at Harry Brandt, president of the ITOA, although his name is not mentioned, Columbia states in its answer to the government that “the exhibitor is not familiar v/ith the taste and fancy of the public, except in his small community." The following is given as an illustration: “Recently a leading exhibitor issued an advertisement in the trade press violently attacking a number of prominent motion picture stars and asserting that they have outlived their usefulness and were ’poison at the boxoffice.' “The fact is that, after this blast was issued, a number of these stars appeared in motion pictures which attained tremendous success and popularity. The best examples of such pictures and stars are the Columbia picture 'Holiday' with Katharine Hepburn, the Walter Wanger picture, ‘Algiers' with Charles Boyer. These pictures, incidentally, were produced by independent producers and their success was instantaneous. “The attack upon these stars was abortive and did not represent the taste of the ultimate consumer, who, in the last analysis, pays his admission money at the boxoffice and pays only when he likes a picture. This public includes 85,000,000 people who attend motion picture performances in the United States v/eekly. They are the ultimate market in the United States." 20 BOXOFFICE :: August 26, 1939