Exhibitors Herald World (Oct-Dec 1929)

22 EXHIBITORS HERALD-WORLD November 2, 1929 Cites Producer Problem What Happened At Memphis! (Continued from preceding page) the sense of comfort, the sense of color and of style. It is no different with your theatre patrons today. They are not satis£ed with many of the old shooting-galleries, improperly kept and improperly run, that answered the purpose a few years ago. Today, not only must you give the public entertainment; you must give it to them in comfortable seats, among clean and beneficial surroundings and in an up-todate manner. This doesn't mean that the small town operator must build a theatre entirely out of proportion to the possibilities of his town, but it does mean that no matter how small his theatre may be, he must operate it in such a manner and so conduct it that it pleases as many of the senses of enjoyment of his public as they demand. With good roads and the automobile, with a natural tendency away from the small town to the big centers of population, it becomes all the more vital and necessary that the small town exhibitor be alert and be a modern merchandiser in an intimately operated theatre, in order to offset the natural disadvantages inherent in small town operation today. These are not impossible situations to meet, as attested to by the fact that many independent exhibitors are doing better today than ever before, especially where sound has been installed. If the large operators, who today control big circuits, did not build them, someone else would have built them. The general tendency in business has been in this direction since the war, and no matter what the ambitions of anyone in the industry might have been, this business could not have remained in a status that is considered almost old-fashioned today, in operating a nation-wide industry. There are conditions that you may not like, but that neither you nor I can stop. How far they will go depends upon the brains and wisdom with which they are handled. If the chain operation of small theatres is not conducted on a very careful and wise basis, these theatres will pass back into the hands of independents without any question of doubt. Great Misunderstanding There has been a great misunderstanding among all of us with regard to sound. What the industry went through in all its branches needs some analysis. First, a change was necessary and the old silent film was dying — and no one now can refuse to admit this fact — so that it was vital to the producer and the exhibitors, as well, that this new form of entertainment be generally admitted. Exhibitors rushed in, in the beginning, and signed contracts 'way beyond their ability to pay. These were not contracts fraudulently forced on the exhibitors by the distributor. Many of the impossible prices that were taken came out of this new situation through the inexperience of both sides, not knowing what its real possibilities were. These are becoming more and more adjusted down to a common sense level. While the exhibitor has committed himself to a block or year's supply of pictures, in many cases at impossible prices, the producers in this industry jointly made an investment running into hundreds of millions of dollars. They have commitments that run for 15 years, not just for one year, and the producers must pay for at least five years of that term whether profitable or not. You must realize the gamble was not taken by just one side. It has been a gamble and a big investment spread over all branches of the industry. I have heard practically every difficulty in our business laid at the door of almost everyone of our trade practices. These practices, however, do not control the above fundamentals affecting the economics of our industry. There is no use to deny the fact that the larger towns and the larger theatres are, to some extent, sucking the business away from the smaller towns and the smaller theatres. It is my opinion that this will continue in spite of all that can be done. Obligation to Small Exhibitor However, there is a definite obligation that this industry owes to the small, independent exhibitor. We may not, beyond a point, be able to help the plight of those who find themselves in difficulties after having done everything within their power, and if a percentage of these small operators are to go out of the business, I say that they should go out under the most humane condition possible. As I said before, there are many who, in my opinion, cannot succeed if they get their product for nothing, but, on the other hand, you and I have seen many on both sides of the industry sit back in their seats and collect easy and fat orofits. Those days are gone forever. The obligation this industry owes you is to get film rental on the basis of a fair proportion of what you take in at your box office; and this type of consideration which is owing to the small, independent exhibitor, can best be secured, in my opinion, by a frank and open discussion of the problem in all of its phases and by common sense cooperation. It will never be brought about by the old-fashioned, oldtime methods of shot-gun attack. I believe that the test of the good faith of the entire industry will be its treatment of the small-town exhibitor in the years to come; and I also believe that the treatment accorded this type of exhibitor will be the measure of greatness and wisdom accorded the leaders of the big companies of our industry in the future. Proposes New Agency I have heard it said that there are certain greedy and grasping individuals on our side of the picture. Our recent meetings in New York showed a very fair disposition to realize the problems of the small man; but if, in your mind, there is any doubt as to the attitude of anv one among the producers and distributors, certainly the quickest way to find that out is in a round table discussion where the facts are laid before everyone. A man may sit in his office and plan most anything he likes; but get him in the open, in the presence of several fair-minded men, and it is pretty hard for him to take an unfair position, and if any one does, at least you will know who he is. I hope the work of cooperation that has been started will carry on. I still hope to see some agency set up where the smalltown man can come with any type of complaint that imposes an unfair burden upon his business, for a hearing where justice will be rendered him. There has been too much inclination, however, to lay the ills of the exhibiting end of the industry on the chain operating methods, film boards of trade, arbitration, etc., without analyzing the economic conditions in this industry that affect all types of operation today and which are not conditions imposed by one side upon the other. Friendly Cooperation Needed Every man in this industry started at least with an equal opportunity. Every (Continued from page 17) Coast states are about 20 hours away. From Chicago there is one excellent train a day. When you reach Memphis, however, you feel repaid for the trip. It is a delightful city, and the Peabody hotel would do credit to any place in the country. Anna Eugene Aiken Patterson, regional editor and now a theatre owner herself, explained that when you reach Memphis you are just entering the South. The city, she says, is not typical of the South, yet it has sufficient Southern characteristics which give you an idea what you will find farther down. City "Convention Minded" The city is "convention minded" : that is, it seems fully aware that most conventioneers want to find out just what corn is and that most of them go to bed a little later, and perhaps a little noisier than commercial travelers. So aside from indulgent "tut tut" to the tooenthusiastic, it merely smiles. Southerners are proud of this city, and in fact of the entire South. And they have a great many reasons for it, not apparent unless they are pointed out to you. Walter Griffith of Charlotte makes the flat statement that there are greater theatrical opportunities today in the South than any_ other part of the country. He states that in the Charlotte territory there have been more sound installations, proportionately, than in any other division of the entire United States. Oklahoma Not with Allied P. R. Isley, owner of the Palace theatre at Tulsa, and other houses, attended the convention as an unofficial representative of the Oklahoma Associated Theatres. He asked that public denial be made of the report that Oklahoma had signed up with the Allied States organization. Isley explained that his organization stands independent of either national organization. Exhibitors HeraldWorld has the distinction of being the only national motion picture trade paper represented by staff editors. A number of regionals sent on their editors, but, aside from the Herald-World, all the nationals are dependent upon their local correspondents for news of the convention. man or corporation that ever owned a chain of theatres started with the first one. Many men, by choice, have not expanded, and in not expanding have lost their opportunity. All have had the opportunity of adding to their holdings in years gone by who worked towards that end and were deserving of it. Marcus Loew started as humbly as anybody in the business. There is no way today in any business that I know of to bring the advantages of the big operator down to the basis of the small operators. The difference in buying power existing today between the small theatre owner and the chain operator, presents the same disadvantage that the retail grocer faces when he buys against the chain grocer. But I repeat, the industry does owe this type of operator the most humane and just consideration that can be given him. Our business can be played two ways. One is by getting the best out of the industry— by working out in a friendly manner the problems that are constantly concerning us, and the other way is to make it a political game. One is sure to have some benefits to both sides (as nearly as anything can be sure), and the other is proven by happenings in the past to be without constructive possibilities and to bring greater trouble for all.