The Film Daily (1931)

Announcement March 16, 1931 In order to clear up any misunderstanding or confusion that may exist among exhibitors with respect to the deal recently concluded between Radio-Keith-Orpheum Corporation and Pathe Exchange, Inc., we desire to bring to the attention of exhibitors the following facts: 1. REO purchased from Paths certain specific assets, including the Pathe News business, the Culver City studios, the Pathe branch exchanges In the United Stales and Great Britain and other properties but REO did not assume any contracts made by exhibitors with Pathe Exchange, Inc.. except those expressly mentioned below. 2. REO has organized new companies to operate certain of the properties so acquired from Pathe. The name of the new parent company is REO PATHE PICTURES, INC. and Us distributing subsidiary is REO PATHE DISTRIBUTING CORPORATION. Exhibitors must bear in mind that these new companies are entirely new entities, wholly distinct and separate from Pathe Exchange. Inc. 3. The new Company. REO Pathe Pictures, Inc., will inaugurate an entirely new feature production program, the sale and distribution of which 'will be handled through the branch exchanges and offices which were acquired from Palhe Exchange. Inc. This program of releases, with the one exception mentioned below, is distinct from the program of announced releases of Pathe Exchange. Inc. for the season 1930-1931, and is in no wise related to or affected by any contracts made by Pathe Exchange. Inc. with exhibitors covering such announced releases. The exception referred to above Is: Although REO as a pari of the deal with Palhe made an outright purchase of the pictures "Sin Takes a Holiday", "The Painted Desert" and "Beyond Victory", all valid contracts made by exhibitors with Pathe Exchange, Inc. for these pictures, prior to the sale thereof to RKO, will be carried out and serviced by REO Pathe Distributing Corporation. 4. REO has agreed to distribute through the new REO Pathe Distributing Corporation, but for the account of Pathe Exchange. Inc. all features and "short" productions which were completed and released by Palhe Exchange. Inc. prior to the making of the contract of purchase (December 4th. 1930). Exhibition contracts covering such pictures made by the Pathe Exchange. Inc. and which have not been performed, will be carried out and serviced by REO Pathe Distributing Corporation, as distributor for Palhe Exchange, Inc. REO Pathe Distributing Corporation will also continue, for the account of Pathe Exchange. Inc.. the sale and servicing of such of those pictures as have not to dale been shown by the various theatres in particular localities. 5. Under Ihe deal REO acquired from Pathe Exchange. Inc. only four stories for picture production, namely — "Rebound", "Chance -Mates" "Lonely Wives" and "Van Banque". of which only one story ("Rebound") was included among the features announced by Pathe Exchange. Inc. for release during the season of 1930-1931. "Rebound" is to be produced and sold by ihe new REO Pathe Pictures. Inc. as its own production, and exhibitors who may have contracted with Pathe Exchange. Inc. for a picture under such title will not be entitled, under any such contract, to the picture to be produced and released by REO Palhe Pictures, Inc. The new REO Pathe Pictures, Inc. has reorganized its studio personnel, is making physical improvements and additions to the studios acquired, and will push forward its new production program as rapidly as circumstances permit, so as to make pictures available as soon as possible to exhibitors who may desire to contract for them. It is expected that REO Pathe Pictures, Inc. will have at least four feature pictures of the new season's program available for release prior to September 7ih, 1931. Respectfully, HIRAM S. BROWN President, Radio-Eelth-Orpheum Corp. LEE MARCUS President, RKO Palhe Pictures. Inc.