Boxoffice (Oct-Dec 1939)

To Higher Court for A Lesson in Theatre Buying Bank Night Fee War Given by M&R Testimony Boston — The victory of Roy Heffner’s Bank Night suit in Middlesex superior court for collection of royalty fees from the Reading Theatre Corp. does not establish the right of collection definitely, Morris Pouzzner, who operates the defendant concern, contends. Pouzzner intends to carry the case to the state supreme court, he says, and points out that it is precedental in view of other similar suits instituted by Heffner and Heffner’s reported threat to file others of its kind. Myers to Attend Allied Meet at Philadelphia Boston — Abram P. Myers is scheduled to attend the Allied eastern regional meeting at Philadelphia on November 13, Prank Lydon, regional vice-president, told this publication. Lydon said the sectional directors would make reports on territorial progress along several lines of organizational activity. He expected the meeting to be largely routine. An Independent Exhibitors, Inc., report on the last regional held in New York on September 7, said that directors were advised that “Exhibitors were deeply indebted to the Parent-Teacher Ass’n and other effective civic organizations for some of the recent victories.’’ The report stated “it would be most gracious and judicious for members to continue their militant activities in conjunction with these organizations rather than to assume an attitude of smug conplacency, over-confidence, and wake up to find the ground taken from under them.’’ Independent Exhibitors Slate Meeting Nov, 14 Boston — The Independent Exhibitors, Inc., will hold its next regular meeting on Tuesday, November 14, according to Arthur K. Howard. The business manager said, however, that a special meeting may be called in the meantime. Boston — How to go about buying motion picture theatres was one of the lessons expounded by Charles Morse, partner of the plaintiff Morse & Rothenberg circuit which is suing major distributors and Maine & New Hampshire Theatres Co. for $2,100,000. Morse went into detail concerning the acquisition of the Cameo in Newburgh, N. Y. The Cameo was one of approximately 50 theatres the Morse & Rothenberg circuit has been interested in. Pormer Massachusetts houses, later sold by the chain, included: The Pastime in Marlboro, the Park in Plymouth, the Uptown in Lynn, the Pranklin in Springfield, the Lyric in Athol, the Orpheum in Somerville. Out of state, the circuit had the Garden in Waterbury, Conn.; the Biltmore in Mt. Vernon, N. Y., and the Pitt in Pittsburgh, Pa. Closed without sales were the Lincoln, Quincy, Mass.; Academy, Pall River, Mass.; Pranklin Park, Dorchester, Mass.; Shea’s, Pitchburg, Mass.; City 'Theatre, Newark, N. J.; Regent, Albany; Griswold, Troy, N. Y.; Windsor, Windsor, Conn.; Comique, Lynn; Gem, East Boston; Chelsea, Chelsea; Grand Opera House, Boston; Comique, Pitchburg; Washington, Boston, and the Crown, Lowell, Mass. George S. Ryan, plaintiff’s attorney, asked Morse when the Cameo was first called to his attention. The theatre man set the date as the early part of January, 1933. “And after it was called to your attention,” Ryan went on, “did you look at the theatre?” Morse said he did. “Before you looked at it,” Ryan said, “did you ascertain anything about its previous history and policies?” “Yes, sir.” “Had you made any investigation of the theatre situation in Newburgh before you looked at the Cameo?” “Yes, sir.” “Had you ascertained what theatres were operating there and their policies?” “Yes, sir.” “Now, when you went to see the Cameo 20th~FoK Leads in Contracts, Allied Film Survey Shows Boston — “The outstanding conclusion to be drawn” from the eastern 1939-40 product survey conducted by Allied “is that the vast majority of exhibitors have concluded contracts with only one company,” Arthur K. Howard, Independent Exhibitors’ business manager, states. Howard last week released results of the survey which, he said, is based upon the reports of 121 theatres. Percen Paid Paid Paid Company — Contracts Flat ta.ne I.ess Same More Columbia 31 ,5 2(> . . .31 Metro 24 •• 24 1 13 10 Paramount 33 !•'> 18 5 25 3 RKO 9 I ’5 2 0^ 20th-rox 37 12 24 G 19 7 United Artists 7 II 1 . . 6 1 Universal 15 « 7 2 12 1 Vitagrraph 25 1 24 2 20 3 Monogrram 8 8 . . 4 3 Republic 8 8 . . :J 5 Theatre, what did you do?” “I went to Newburgh, spent a day and an evening, and I noted the location of the Cameo Theatre, and particularly during the afternoon and evenings the passers-by and the number of people in the vicinity on the street, and I noted the policy changes and prices of the other theatres, and visited the locations of the other theatres. I also examined the Cameo Theatre, the interior, noted the condition of the seats, and what equipment was there and what would be needed, and made a thorough examination of the theatre.” “What did you observe as to the location of the theatre?” Location Was Good “The location of the theatre was in the heart of the downtown shopping district, an exceptionally good location, on the main street, Broadway.” “What did you observe as to the condition of the theatre inside?” “The condition of the theatre was quite satisfactory with the exception of the usual minor repairs, such as painting and repairing seats, and minor repairs to the heating and plumbing system, and there was certain equipment which had to be furnished, such as booth equipment.” “Was the theatre in operation at the time that you first saw it?” “No, sir.” “How long after you first saw it was it before you secured a lease of the theatre?” “I believe it was about eight or ten days later that a lease was negotiated, that we secured a lease.” “Before securing a lease did you do anything else to ascertain whether this was a desirable theatre for your purpose?” “Yes, sir. I made a careful check as to the nature, that is, the industrial setup of the town, the industries, and the type of people to which we would be liable to cater, that is, the middle class or poorer classes, and so forth, and as I said before, noted the policies, admissions, and changes of the other theatres, considered the location of all theatres, and so forth.” An Exceptional Opportunity “What did you ascertain as to the industries there?” “There were a great number of diversified industries, such as DuPont and American Pelt Company, Sweet Orr, overall manufacturers — I think the name of that is Sweet Orr Corp., or Co., that makes the well known overalls — and many other smaller industries.” “What did you ascertain in regard to the type of people that you might expect as patrons?” “I felt that a theatre such as we contemplated operating would have an exceptional opportunity in that particular location in that city.” “At the time that you first examined the theatre, was there anyone with you?” “No, sir.” “Before signing the lease how many visits (Continued on next page) BOXOFFICE ;; October 21, 1939 NE 61