Exhibitors Herald World (Oct-Dec 1929)

November 2, 1929 EXHIBITORS HERALD -WORLD 21 Kent Proposes Independent Agency [The following is the address of Sidney R. Kent, general manager of Paramount, read before the MP TO A convention in Memphis on Wednesday by President M. A. Lightman.] I am indeed sorry and disappointed that I am unable to be with you as I planned, but Mr. Zukor is now in Europe and has left some very important matters in connection with our company in my hands, the developments in which make it absolutely impossible for me to leave my desk. I do want to wish your convention every success, and pledge you my personal assistance in any program that you may plan for the future. I believe that this is the time to talk frankly. My experience, much of it outside of the motion picture industry, taught me that the problems within this business, the same as in any other, cannot be solved without common sense cooperation on the part of all branches of the industry. The fact that distributors are on one side and exhibitors on the other means just this: That although we are on different sides of the fence when it comes to our commercial negotiations for film, we still have this much in common — that it means a livelihood for both of us, and for us to stand like opposing armies, sniping at each other, resorting to poison gas and every other method of attack, is as silly as one army divided against itself, one side fighting the other. I have yet to see any reform in this business secured by coercion or legal procedure, while on the other hand, those steps that have been taken in common sense cooperation have come through a group of men sitting openly around a table and discussing their mutual problems. We are all in the motion picture business. It is a business in which we are making our living. We have a joint obligation of maintaining its supremacy as a moderate-priced amusement, and we should take joy from that thought by standing together, shoulder to shoulder, in keeping it supreme throughout the world. Too many discussions in the past have been marked by unnecessary bitterness. If any fair-minded man is not willing to admit today that the time has gone for these old-fashioned, old-time methods, then I think all of the constructive work that has been done is indeed futile. But I cannot believe this to be the case. Each side must realize the problems of the other or there can never be any fair basis on which minds can meet. With all of the sabotage and tearing down that has existed within Tragic Ticker Depletes Convention Attendance (Special to the Herald-World) CONVENTION HEADQUARTERS, MEMPHIS, Oct. 30.— The collapse of quotations on the stock market, reduced the attendance at the M P T O A convention Wednesday. When the news came over the ticker Tuesday afternoon, a number of prominent individuals found it necessary to cut short their stay in Memphis and catch night trains for home. One very prominent theatre owner admitted a loss of $40,000, and there were reports that two or three other theatre owners had lost in excess of $100,000. the industry, without any constructive remedy being offered, what has it all brought? Show me one single gain that has come through anything other than common sense cooperation. If a man or an industry feel that they are to be damned in any event, and if, in spite of the constructive things that they want to do, they are to be pounded anyway, then we get the feeling of "what's the use?" No matter what is done, the answer is the same. I am happy to see a man of your type [M. A. Lightman] leading the exhibitors of the country. With us you have put your cards on the table. You have dealt with an open mind, and this type of dealing will, in my opinion, bring out the maximum amount of good and harmony that can be gotten out of our respective situations. Adjustments Over 3,800 I was chairman of the distributors' committee with you and your committee in New York. This practical cooperation brought realization to hundreds of small exhibitors. While the figures are from four to six weeks in arrears, we have records of approximately 3,800 adjustments having been made, with figures of two of the companies still missing these adjustments run up to about $1,300,000. While we do not state that every exhibitor who deserved it received an adjustment, we do believe in this way many have been able to tide themselves over and stay in business through our joint cooperation, a result that never could have been accomplished by threatening, coercion or sabotaging methods. We want to see this cooperation continue, and I want you to know that my contact with the other producers and distributors has shown me that they are fully aware and ready to realize the position of the small, independent exhibitor in this country. However, it is well to discuss where we are going with the changing conditions we now face. What is the future of the small, independent exhibitor? When I say independent, I mean that type of exhibitor standing alone, making his living out of the operation of his theatre, with no open or undercover affiliations upon whom he can draw for support. Today, one must be a student of economics in order to realize what is going on in the world of business. Infiuences outside of our own industry help to shape the course of our own business. This is a day of widespread chain operation in every branch of organized industry. Even the banks have finally gone in for chain banking throughout the states. However, this doesn't necessarily mean that all the important banks in the country are going out of business. The live, up-to-date, alert banker will maintain his place in the community and, in my opinion, will have an advantage over the chain bank. Just the same, as I believe, the alive, independent exhibitor who operates his theatre properly, who sells his personality to his own community will always have a large following in his theatre. If you will examine closely into the status of the independent exhibitor today, you will find the course he is taking is not much different from any other widespread operating industry. Thousands of small, independent exhibitors and small chain operators, have sold their business at tremendous prices. Others who have stayed still are bound to lose their place in the sun unless they keep pace with the amusement demands of the public. There is a certain psychology back of all this. We have heard many of the ills of the independent exhibitor laid at the door of the chain theatre, but what of the thousands of small exhibitors who have no chain theatre competition and whose business has still suffered to some extent? There is a percentage of independents in this business, who, in my opinion, are going to fail, even if they get their film rental for nothing. If you still refer to the recent report of Mr. Klein of the United States Department of Commerce, you will find that in a survey made of the independent operators in many lines of business throughout the country, that are actively in competition with chain stores, he made the statement that 60 per cent of the failures were due to the fact that the men, themselves, were not fitted for the business in which they were engaged and would have failed in any event in time. Silent House at Disadvantage As a matter of fact, the fierceness of chain operation and competition doesn't exist in our industry to anywhere near the degree that it does in other kinds of merchandising. Many of the small-town exhibitors are at a tremendous disadvantage in operating their theatres, due to the fact that they haven't been able to purchase sound equipment, either at a price satisfactory to them, or to get the quality machines they desire at a price they can pay. This condition, in my opinion, is only temporary and will be remedied within the next few months. However, even with the installation of sound equipment, the exhibitors must realize that there is basic public demand for entertainment presented in a different way, and I will illustrate what I mean: You all remember the story of the Ford car. The best car for the money was put out by Ford and yet he was forced to change his model to please more than the sense of value. He had to please the sense of vanity, {Continued on next page) Boat Trip and "Rio Rita" Supply Fun — and Casualties (Special to the Herald-World) CONVENTION HEADQUARTERS, MEMPHIS, Oct. 30.— The good ship Idlewild and the RK O musical extravaganza, "Rio Rita," shared honors in affording the delegates a lively evening's entertainment Tuesday night. Although the trip up the Mississippi, when the exhibitors were the guests of the exchanges, would — and should — have been a big evening in itself, the RK O showing at the Orpheum at midnight drew capacity — and applause. The trip on the Idlewild wasn't, but it could have been, an exploitation stunt for UniversaTs "Show Boat." However, everybody was good natured and gave the credit to the exchanges. The only casualties of the Mississippi trip were J. F. Norman, who wore out the ends of his fingers on a banjo; A. S. Smale, who got three blood blisters pounding a piano, and a drum head broken by David R. Hochreich.