Boxoffice (Jul-Sep 1948)

240 NEW THEATRES OPEN IN '48; BOOM DESPITE HIGHER COSTS Paid Vacations, Pensions, Placed AfoplATSE Goals 229.447 Seats Are Added To U.S. Capacity at a Cost of $19,417,000 By NATHAN COHEN Exhibitors in the United States ctpeiied 240 theatres, with an estimated total of 129.447 seats from January 1 to July 31, 1948, according to a report made to BOXOFFICE by its correspondents in the 31 exchange areas. This is an increase over openings in the corresponding period a year ago, indicating that despite the -tremendous surge in the cost of building materials theatremen who drafted postwar plans for new theatres are going ahead with them. In the first seven months of 1947, U.S. openings totaled 216 theatres, with a capacity of 122,788 seats. THEATRES ARE SMALLER There is one big difference between new 1947 and 1948 theatres, and that is in size. Many exhibitors with plans for substantial seating in their theatres are settling for smaller houses. This year nine theatres have been opened with a capacity of more than 1,000 seats. A year ago at this time, exhibitors had already opened 30 theatres with 1,000 seats or more. A variety of reasons are given for the trend. One is that most of the theatres are going into smaller communities where substantial seating is not required and larger communities already are supplied with the larger type theatre. But the big reason is that construction costs are simply too high for small town financing. In March of this year theatre designers prepared their estimates on the basis of $150 average cost per seat. The estimates now run at about a $200 per seat cost. This does not take in equipment, and to complete the project, an exhibitor must figure on about $25 additional per seat to take care of seating, jjrojection, carpeting, and other requirements. Nor is there any indication that construction prices will remain at this level. One midwest architect this week was quoted as declaring that some building material “may soon be priced clear out of financial reach” of many exhibitors. COST OF $200 PER SEAT However, there is no sign that exhibitors are letting up. There are more theatres under construction at the moment, and more projects in the works, than at any time since the building boom of the 1920s. On the basis of the $200 avers^e cost per seat, new theatres opened this year cost approximately $19,417,000, with an additional $3,500,000 to $5,000,000 spent on equipment. The building boom is present in every section of the coimtry with the exception of the east, where the limited number of new theatre openings is due to the fact that eastern cities have been well supplied with motion picture houses. However, eastern exhibitors are currently spending more money remodeling their theatres — which in many instances is involving complete rebuilding out CLEVELAND — The lATSE will make a move to introduce paid vacations up to our weeks, retirement with pay at 60 and, in contracts with distributors, payment of severance pay in case of layoffs running as high as 120 weeks wages. These recommendations were included in approximately 60 resolutions presented to delegates attending the organization’s 39th biennial convention. The vacation plan which the lATSE will seek to have accepted on a universal basis provides for one week vacation after six months employment; two weeks after one year; three weeks after 60 months; and four weeks after 120 months of service. On retirement, the convention adopted a resolution which, recognizing the trend in business to introduce retirement benefit plans, authorized a study to investigate ways and means by which the plan could be inaugurated. The delegates also asked that the retirement age be cut from 65 to 60 when members become exempt from payment of dues. The resolution on severance pay was referred to President Richard Walsh. It affects members of special department locals and film distributors, and is designed to safeguard against unnecessary layoffs in the production and distribution fields. The resolution calls for severance pay of 26 weeks pay after an employe has been with the company for 60 months and 52 weeks pay if he has been with the company 120 months. In other words, if a studio laid off an lATSE member who had been with the company for 10 years or more, it would be required to pay the employe a full year’s pay. The delegates also adopted several other resolutions aimed specifically at distributors and special department locals. One of these concerned the work-week in exchanges. The resolution, which also was referred to Walsh, calls for a 35-hour five-day week, Mondays to Fridays, with overtime pay for Saturday work and double time for Sundays and holi side and in — than those of any other section of the country. In New England particularly are circuit operators undertaking face-lifting of theatres on a wholesale basis. The big boom has been in the southeast where there have been 59 openings since the first of the year. There have been 48 openings in the midwest while on the west coast in California alone exhibitors have put 28 new theatres into operation. All regions have been given deluxe theatres. In Batavia, N. Y., for example, a commruiity of approximateely 18,000 population, the Mancuso interests opened a 1,700-seat house costing $1,000,000 — a theatre which, in addition to providing facilities for motion pictures, was designed to accommodate the largest traveling stage productions. days. In addition, a resolution referred to Walsh provides that in exchanges where 10 or more persons are employed the office manager may not fulfill duties of union classifications such as booking and cashiering. On the work week principle, the lATSE voted to go on an all out campaign to require exhibitors to accept the six-day week. The resolution mentioned “obstinate employers” who are holding out for the sevenday week for projectionists, specifically pointing to many circuits which still require projectionists and stagehands to work the full week. An unusual resolution on job swapping was okayed. Under the procedure, any lA member who is forced to make a move because a change of climate is recommended for a short period may make a voluntary exchange of jobs with another lA member. Each will maintain membership status in his original local. This voluntary exchange may also be made in the event a change of climate is recommended for a member of the family. Although delegates did not pick a site for their next convention, Hollywood local entered a bid for the meeting. Variety Clubs May Seek Film Aid for Hospital NEW YORK — A request that motion picture companies and circuits, as well as individual Variety tents, underwrite a percentage of the operating costs of the Will Rogers hospital at Saranac Lake, N. Y., may be made as a result of the annual midyear conference of the Variety Clubs International, to be held from September 16 to 19 at Washington, D. C. Making of the request will depend first upon approval of a recommendation that Variety take over the entire operation of the hospital. United Detroit 'Theatres spent $650,000 on the construction of the luxurious Woods Theatre in Grosse Point, outside of Detroit, and added another $75,000 for equipment. The Griffith circuit put $500,000 into a 990-seat house in Los Alamos, N. M., and the Schine circuit gave residents of Milford, Del., a deluxe showcase seating 1,700. Cost estimates, however, were not made available. Other large theatres opened were the $500,000 1,000-seat Fairbourn in Springfield, Ohio, and the $200,000 868-seat Shelby in Shelbyville, Ky., built by the Chakeres circuit; the 1,300-seat Vogue Theatre in Pittsburgh, Calif., built at a cost of $500,000 by the Blumenfeld circuit; and the $250,000 Lake Theatre in Warsaw, Ind., erected by the Mailers Bros. BOXOFFICE : : August 28, 1948 15