Exhibitor's Trade Review (May-Aug 1925)

Page 16 Exhibitors Trade Review ing effected in the same way. Theatre Owners desire the best service which they can receive, but we favor our Government's Postal Service in this relation. We have demonstrated tha_t in our cooperation in campaigns to facilitate Holiday mail service and now in the Nixie Campaign and in our joint plans with your Department to aid the rural delivery system through screen publicity. There appears, however, to be some misunderstandings which I am sure you will feel disposed to clear up in your natural desire to fully protect the interests of the Post Office Department. Sincerely yours, (signed) M. J. O'TOOLE, President. Postmaster General New's letter in response to the above is as follows : OFFICE OF POSTMASTER GENERAL WASHINGTON, D. C. May 1st, 1925. Mr. M. J. O'Toole, President Motion Picture Theatre Owners of America, 25 West 43rd Street, New York City. My dear Mr. O'Toole: I have your communication of April 27, inclosing a copy of a circular letter sent by Mr. W. W. Anderson, Branch Manager, .fatne Exchange, Inc., 102 Walton Street, Atlanta, Georgia, to the various moiion picture theatre owners of that section, in his letter Mr. Anderson advises tne various motion picture theatre owners that since the new law regarding postage rates went into effect on April 15, 1925, it is impossible for them to receive their films by mail with the same expeditious handling as they aid prior thereto unless they pay an additional twenty-five cent fee. As you know, there has been no change since the new law became effective on April 15, 1925, in the handling of motion picture films. Therefore, the letter or the Pathe Exchange does not correctly set the matter forth to the Motion Picture Theatre Owners. The question of giving to motion picture films a pick-up service at the mailing office and special delivery service at the office of address on the payment of the regular postage and two-cent service charge, together with the special handling charge of twenty-hve cents and special delivery fee, was, as you know, under consideration by the Department. The matter was taken up with the Motion Picture Producers and Distributors of America and some 32 film boards of trade throughout the country. On considering the responses it was concluded to let the matter rest. The motion picture producers and distributors and the various film boards of trade with whom the matter had been taken up were advised accordingly. Therefore, the same treatment ijid handling which was given motion picture films prior to April 15, when the new law became effective, is still given them. In other words, the same service that motion picture films received prior to April 15, they receive now. Of courr-i, there is a two-cent service charge applicable to parcels of motion picture films, as there is to other parcels of fourth-class matter, but there is no special handling charge except in cases where the sender desires to pay such special handling charge, it being optional with him. There is, therefore, no reason why those sending motion picture films by mafl on which no special handling postage is paid need feel that their films will not receive the same treatment which they did prior to April 15, 1925. The matter will be taken up with the Pathe Exchange, Inc., and other distributors who, apparently through a misunderstanding ,have given motion picture theatre owners incorrect information. Sincerely yours, (signed) HARRY S. NEW. Postmaster General. It will be seen that the Postmaster insists that the Government's service to the Theatre Owner will be just as expeditious as heretofore without the payment of the twenty-fn cents extra handling charge. Of course, if Theatre Owners desire to have the same expeditious handling given to film packages as is now accorded to first class mailing, they will be obliged to pay th? extra price as they would be obliged to pay special charges if they had the film sent bv air mail or any other unusual service, but they may be assured of receiving the same expeditious handling of the film packages without paying the additional twenty-hve cents for special handling. If theatre owners receive further letters from Exchange^ stating that it is compulsory for them to use the Special Handling Service and pay the additional twenty-five cents therefor, I would suggest that they write back to the exchanges txpiaining the s.tuation definitely. The following letter from Congressman Clyde Kelly of Pennsylvania, the author of the Postal Employees Salary Increase Bill, and also its rider, which advanced mailing costs will also shed considerable light on the s.tuation : CONGRESS OF THE UNITED STATES HOUSE OF REPRESENTATIVES WASHINGTON, D. C. Post Office and Post Roads Committee. April 6, 1925. My dear Mr. O'Toole: Just received your letter of the 2nd and read it with interest The original postal salaries bill, which provided readjustment in compensation in order to secure postal employees a living wage, was vetoed by i resident Cooiidge on the ground that it did not provide postage rate increases to meet the expenditure for wages. This veto was sustained by one vote in the Senate. It then became absolutely necessary to meet the President's demand, and this was done in the bill introduced by myself and which was passed by Congress and signed by the President. With all good wishes, I am Sincerely yours, (signed) CLYDE KELLY. The following letter from Congressman La Guardia from New York City bearing on the. same situation will also be found to be of interest : CUiNUj^SS OF THE UNITED STATES HOUSE OF REPRESENTATIVES WASHINGTON, D. C. Mr. M. J. O'Toole, President, Motion Picture Theatre Owners of America, New York City. My dear Mr. O'Toole: Replying to your letter of April 2. 1925, 1 would say that the purpose of increasing postal rates was to provide additional revenue to meet the increase in salaries. To say that it was to "provide a fund for the payment of increased wages'' is technically incorrect. Postal employees are paid from the general funds of the United States Treasury in accordance with annual appropriations. Porftal revenue, like other governmental revenues are converted into the general fund of the United States Treasury. The first session of the 68th Congress passed a postal salary increase bill which was vetoed by the President on the ground that no revenue was provided to meet the additional cost which the increases entailed and that to increase the appropriations without providing the revenue would disturb and disarrange the budgetary program. The Senate failed to pass the bill, the President's veto to the contrary notwithstanding, by one vote. Thereupon a new bill was passed carrying the same salary increases provided in the bill which was vetoed and making provision for increased postal rates. The bill passed both houses of Congress and was signed by the President and is now a law. The increases provided in the new schedules of salaries involved an additional appropriation of about $64,000,000. The new postal rates which go into effect on April 15, 1925. will bring in additional revenue estimated at about $55,000,000. The new rates are based on the cost ascertainment report of the Department and past experiences and met with the approval of the Post Office Department. Should you desire a schedule of the new rates you may obtain same from the Post Office or should you desire a copy of the bill containing the salary schedules as well as the rates, I will be glad to obtain same for you. Yours very truly, (signed) F. H. LAGUARDIA. In both instances, these Congressmen take the position that it was absolutely necessary to increase mailing costs in order to pay living wages to postal employees. Making this special handling cost unnecessary, will save the Theatre Owners over one million dollars annually. Effecting Closer Co-operation T> USINESS relations in this Industry should be on a more mutual and ethical basis. Some moves in that direction have been made, but these in the main were unsuccessful because of la"ck of confidence. 1 am firmly convinced now that Theatre Owners are absolutely agreed on the fact that definite conclusions can be reached along business lines which will entirely saefguard the interests of all concerned. Theatre Owners realize that distrust and suspicion prevent good business relations and cost this Industry fully one-third of its entire income. Every division of the business has been sorely tried by these expensive contentions. Would it not be to the general interest of all Theatre Owners if some central tribunal, with agreed upon jurisdiction to handle the bigger problems of the Industry, were created ? I feel sure that the more sensible elements in all divisions of the business will appreciate the need for this move. Simultaneous Picture Announce \ VERY necessary business reform in our Industry centers about the process of announcing production. The present system is confusing and to some extent demoralizing. With unseemly haste, Producing Companies and Distributors seek to outdistance each other in announcing new pictures and blocks of pictures. Before reasonable opportunity is given for the utilization of the better sections of the product already in hand, new pictures are given glowing announcements in different advertising mediums. This results in needless waste of effort as some of the product in hand has not gone the rounds of the theatres. All the expense incident to the present products handling has nearly been accounted for and the rest is net income. But the announcement of the new product interferes with the sale of the other and this disturbs the normal trend of trade and loads the Theatre Owner down with new pictures before he has had a reasonable opportunity to handle that already in hand and unfairly absorbs play dates. I suggest that the Producers and Distributors agree upon a deiinite time when new pictures will be announced so that the trade will experience no unseemly convulsion when normalcy means most for the the box office. This would seem to be an easy line of procedure. The automobile manufacturers follow this course and there are more of them than :here are Picture Producers. A motion picture exposition could be held annually where as many of the new pictures as possible would be on hand and where motion picture theatre owners could see the same before buying. This would stimulate buying, give all a square deal and save much of the cost of exploitation and sales forces which could be fairly apportioned in a reduction of picture cost to the exhibitor. Rules could be formulated so that no new pictures would be announced until the Exposition or until a set date when all wouM be given publicity and the normalcy of the business preserved. In conclusion, let me say it has been one of the proudest privileges of my life toserve you in this great organization. I earnestly urge you to give whole-hearted support to the work of this convention. The constructive programs to be presented for your consideration are worthy of your very best thought. You have just listened to a summarization of a year's work at your National Office. I know you will give the same undivided attention to the many important reports and announcemens to follow. Let us so conduct our affairs here that when we are ready to leave this wonderfid city of Milwaukee and bid its hospitable people good-bye we shall have accomplished for this Industry and the Theatre Owners a substantial measure of necessary refrom so that our business, our country and the public will be measurably benefitted by this great gathering.