Exhibitors Herald World (Oct-Dec 1930)

November 8, 1930 EXHIBITORS HERALD-WORLD 15 Sales Forces Centralized for Warners, FN and Vitaphone Ezell Heads Eastern Section; Depinet in Charge of Western $9,000,000 Spent by Fox on Improvement Of Houses Since May "°'m£rfe^^^ Balance of $20,000,000 Budget to (Special to the Herald-World) NEW YORK, Nov. 6. — That the federal government has become reconciled to big mergers, especially in the motion picture industry, is indicated in a'n announcement made today by Sam E. Morris, vice president of Warner Brothers, who stated that, beginning November 10, the sales forces of Warner, First National and Vitaphone Varieties will be centralized in the United Be Used by Spring of Next Year (Special to the Herald-World) NEW YORK, Nov. 6.— Fox Theatres Corporation already has expended $9,000,000 of the $20,000,000 appropriation voted last May by the board of directors for the purpose of reconstruction and alteration in theatres of both the West Coast and Eastern divisions. The remaining $11,000,000 is now being used in a similar program scheduled for completion in May, 1931. Twenty Theatres Reopened Harley L. Clarke urged the appropriation following assumption of executive control of the Fox corporation in May as an expression of confidence in business conditions. Despite the fact that West Coast comprises 1,000 theatres and the eastern group only 300, half of the $9,000,000 has been spent in the East. This is due to the large number of houses acquired in this division, many of which required almost complete reconstruction. Approximately twenty theatres have been reopened in the area within recent weeks, following installation of new sound equipment where necessary, acoustical devices, cooling systems, and the like. Plans Drawn for Three Houses Within the past week Clarke has been conferring with Oldknow and Arthur in Chicago relative to further plans for expenditure of the balance of the appropriation. Fox officials report that in every case where a theatre was closed for a period, due either to lack of business or necessity for repairs, the box office since reopening has gained considerably in comparison with the previous figures. Plans already have been drawn for three new Fox houses, located at Hackensack, N. J., Ossining, N. Y., and Salamanca, N. Y., with construction well on the way in Hackensack. 2,500 Houses Have Chance To Reopen with Improving Conditions, Declares Bunn (Special to the Herald-World) NEW YORK, Nov. 6.— Two thousand five hundred theatres now closed have "a possibility of reopening," according to C. W. Bunn, general sales manager of Electrical Research Products, who has just completed a national survey, which, a report states, shows conditions in the amusement field adjusting themselves in an orderly manner. That economical conditions are improving is indicated, according to the survey, by the fact that payments on credit accounts are being maintained surprisingly well in view of financial conditions. Theatres equipped to give quality reproduction, the report says, are in most cases doing even bigger business than a year ago. Bunn's survey, the report states, showed less than sixteen thousand theatres in operation. States and Canada. In making the announcement Morris emphasized that the move is inaugurated solely in the interests of the exhibitor. It is an idea aimed at furtherance of greater efficiency in giving first rate service to exhibitors who will have a central office through which they may contact. Ezell and Depinet Head Sections "The change has not been hastily made," says Morris. "It is not an overnight decision but has been adopted only after careful and thorough survey of the film business." The United States has been divided into two sections. Claude C. Ezell becomes Eastern general sales manager and Ned E. Depinet Western general sales manager. Ezell will be responsible for the territory embraced by exchanges in Albany, Boston, Buffalo, Cincinnati, Cleveland, Detroit, Indianapolis, New Haven, Metropolitan New York, Philadelphia, Pittsburgh and Washington. He will also assume charge of sales in Canada, which will have B. F. Lyons as sales manager and whose territory will be handled by exchanges in Calgary, Montreal, St. John, Toronto, Vancouver and Winnipeg. Depinet assumes sales command of the Western territory with exchanges in Atlanta, Charlotte, Chicago, Dallas, Denver, Kansas City, Los Angeles, Milwaukee, Minneapolis, New Orleans, Oklahoma City, Omaha, Portland, Salt Lake City, San Francisco, Seattle, St. Louis, Memphis and Des Moines. Max Milder, will act as sales manager assisting Ezell. Andy Smith and Gradwell Sears will function as sales managers under Depinet. More Metropolitan Areas Morris further announced establishment of two new metropolitan areas in Philadelphia and Chicago in addition to already existing ones in New York City. This is due it is said to heavy volume of sales in these three sections. Under the alignment in New York, George Balsdon remains in charge of the metropolitan area; Nat Beier, sales manager of New Jersey; Harry Decker, sales manager of Brooklyn ; and Eddie Goldstein, sales manager of New York City. In Chicago, Carl Lesserman will act as branch manager, and H. F. Neil and Earl Silverman as sales managers. The Philadelphia area will have W. J. Heenan for branch manager, and R. E. Binns for sales manager. Moray Heads Varieties Sales Norman Moray, formerly branch manager of Chicago, will move into the home office to assume the position of sales manager of Vitaphone Varieties for the entire country. Because of the radical change in the technique of sales effected through this policy of centralization, Morris had called the following twelve managers to the home office for special work: H. E. Elder, F. J. McCarthy, M. W. Davis, W. J. Brandt, Truly Wildman, Joseph E. Luckett, J. V. Allan, Floyd Brown, William Warner ,C. K. Olson, J. S. Hebrew and H. S. Dunn. Following is the list of centralized exchanges and those who will be in charge : Albany, Ben Kalmenson ; Atlanta, J. T. Ezell; Boston, Thomas B. Spry; Buffalo, H. A. Seed; Charlotte, F. P. Bryan; Cincinnati, R. F. Cloud; Cleveland, J. C. Fishman ; Dallas, Fred M. Jack; Denver, Charles Gilmour; DesMoines, E. J. Tilton; Detroit, F. E. North; Indianapolis, Paul E. Kreifer ; Kansas City, M. C. Sinift; Los Angeles, Harry Lustig; Memphis, H. D. Hearn ; Milwaukee, R. T. Smith; Minneapolis, L. E. Goldhammer; New Haven, J. A. Davis ; New Orleans, F. Goodrow; Oklahoma City, T. O. Rhode; Omaha, George W. Taif; Pittsburgh, R. H. Haines; Portland, W. C. Brimmer; Salt Lake City, William F. Gordon ; San Francisco, Charles Muehlman; Seattle, M. H. Brower; St. Louis, A. M. Weinberger; Washington, Robert Smeltzer. DeForest Sues WE, Erpi and Otterson For $2,520,000; Foiled Fox Deal, Charge (Special to the Herald-World) NEW YORK, Nov. 6. — Western Electric, Electrical Research Products and John E. Otterson, president of the latter organization, have been named defendants in a suit for $2,520,000, brought in the New York supreme court by Lee DeForest, who charges that "the defendants wrongfully, knowingly, intentionally and maliciously dissuaded" William Fox from going through with his agreements to pay DeForest the sum .mentioned in the suit for stock in the DeForest Phonofilm corporation. The complaint states that previous to September 23, 1926, DeForest and Fox had entered into an agreement whereby Fox was to purchase certain stocks .in the DeForest company and was to employ the inventor for five years at $50,000 yearly. The complaint is based on the charge that the deal was not consummated because the defendants represented to Fox that DeForest did not control or own the patents which he purported to transfer with his stock sale, but that such property was in ownership and control of Western Electric.