The Exhibitor (Nov 1938-May 1939)

EDITORIAL I II E COLONEL COLE HAS AN IDEA We must, of course, believe that Colonel H. A. Cole was serious — there could be no other interpretation of his declaration: "Abolish the clearance system” as reported in the trade press. On that basis, therefore, we think that Colonel Cole’s suggestion is out of order. A Jay Emanuel Publication. Covering the film territories in the Metropolitan East. Published weekly by Jay Emanuel Publications, Incorporated. Publishing office: 1225 Vine Street, Philadelphia, Pennsylvania. New York City office, 1600 Broadway. West Coast office, 1119 Poinsettia Drive, Hollywood, California Representatives in Washington, D. C.; Albany, Buffalo, Boston, New Haven. Jay Emanuel, publisher; Paul J. Greenhalgh, business manager; Herbert M Miller, managing editor. Subscription rates: $2 for one year; $5 for three years. Address all communications to 1225 Vine Street, Philadelphia, Pennsylvania. JUST IN PASSING WARNER BROTHERS MAKE GOOD It is encouraging to note that Warner Brothers is committed to the same type of production policy for 1939-1940 that made the company so potent in 19381939. In the season now nearing its close, action was the predominating principle and the record proves that is one of the reasons why the company had such a successful year. Examining the 1939-1940 lineup, it is quite evident that the Warner Brothers believe not only in action but in selling principles and merchandising angles, a choice that has the hearty endorsement of every Warner account. It is not our purpose to determine whether the company was the No.l or the No. 2 company in 1938-1939, but we do know that when promises made at the last selling convention are examined in the light of results, Warners are in the front rank. TO UNITED ARTISTS Only Mary Pickford, Charles Chaplin and Douglas Fairbanks remain of the original group which founded United Artists, April 17, 1919, in the office of William G. McAdoo, but the spirit which caused the formation is still present. Congratulations are naturally in order for Maurice Silverstone, who has already made an enviable reputation for himself, and present executives who make up the company. And it might be noted also that sales executive Harry Gold is also celebrating 19 years of service with the company. For the record, let us say that this department has always given full credit to Allied and that we believe that Allied is in a large way responsible for the current goings-on in our business — but we can’t subscribe to the Cole sentiments at all. Although we are against excessive clearance — we are for fair clearance, for we believe it is the life of the business. Bring the problem home. I am also an exhibitor, operating first runs in two large Pennsylvania cities as well as subsequents in a few towns. Let us see how Colonel Cole’s suggestion of allowing the subsequents to pick up a picture immediately after the first run is through with it would affect me. Operating first runs, I have paid as high as $10,000, in one case, to the distributor, at a 40 cent admission top. Under the Cole plan, the run following me would pick up the show the day after I am through with it, for from $200 to $300 rental, and charge 20 cents admission. Is this fair to the public who paid 40 cents, the distributors’ or the exhibitor’s investment? Operating subsequent runs, I have paid rentals up from $150, charging 2 5 cents admission. The run ahead of me pays from $1000 to $3000 or more, at 40 cents admission. Under the Cole plan, I would pick up the picture immediately after the run ahead of me. Would this be fair? I say, "No, not at all.” What chance would the producer have of getting his costs back? How long could a house protect admission prices? How long could it keep the good will of its patrons? Colonel Cole says, "Abolish clearance.” He would not take into consideration value of investment, good will, years of operation, local conditions. He would allow every Tom, Dick and Harry to be placed on the same level regardless of the return. Colonel Cole’s idea may be a natural for the trade headlines, but it would be unfair to the industry. And we haven’t begun to discuss the bootleg exhibitors, who, sensing the fact that only a theatre is needed to get a good run, would flood all areas with theatres, thus wrecking the entire business! First runs give the producers the major portion of their returns. They deserve reasonable clearance. First runs bore the brunt of industry expansion, and development. First runs helped build the business. They deserve clearance. The producer is entitled to it for his own protection on his investment. Count us in, Colonel Cole, when you fight excessive clearance but do not look for support on your "new” clearance idea. You are too fair to be unjust or unreasonable.