Harrison's Reports (1928-1928)

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136 HARRISON’S REPORTS August 25, 1928 I understand that they will synchronize pictures made also by independent producers if such pictures can come up to a certain standard of quality. So an exhibitor is sate, no matter whether he installs the one type of instrument or the other. Prices Let us now give the prices of each of the instruments offered by the two major companies: Western Electric Western Electric manufactures both kinds of instruments, the disc (Vitaphone) and the film (Movietone) types. These instruments are sold by Electrical Research Products, Inc., a subsidiary of Western Electric, and its address is 250 West 57th Street, New York City-. The following are the prices this company charges for its basic instruments: $8,500 for the 2S type, for theatres that have fewer than 1,000 seats; $12,500 for its 2SX type for theatres that have anywhere from 1,000 to 1,750 seats; and $17,000 for its IS type for theatres of more than 1,750 seats. These prices are for either the disc or the film type. If an exhibitor should desire to have an attachment to show also pictures in which the sound is recorded on the film, $2,000 are added to the price of each class. When an exhibitor wants a megaphone attachment, so that he may be able to announce his coming attractions or other events from his office, he is charged $300 additional. There is also a $500 charge if he should want to have a non-synchronous device, which is sold also separately, so that an exhibitor can accompany his pictures by phonograph record music. The total charge for these extra attachments is $2,800. This makes the price for the complete instrument for the three classes of houses as follows: 2S (for fewer than 1,000 seats) $11,300 2SX (for 1,000 to 1,750 seats) 15,300 IS (for more than 1,750 seats) 19,800 For the non-synchronous device, Electrical Research Products charges as follows: $3,500 for theatres that have less than 1,000 seais; $7,500 for theatres that have anywhere from 1,000 to 1,750 seats; and $12,000 for theatres of over 1,750 seating capacity. When an exhibitor eventually decides to install a synchronizing device, $3,000 credit is given on the $3,500 instrument, $7,000 on the $7,500, and $11,500 on the $12,000 instrument, for the reason that, outside of the box containing the turntables for the disc records, everything is the same in the talking instruments, and therefore no other installation is required. (The sound projectors are the same.) In such an event the exhibitor is required to pay the difference between the price of his non-synchronous instrument and the price for the talking instrument, for the same class houses, plus $500. This brings the total price (if also the film attachment is ordered), as already given in the table. For the convenience of those of exhibitors that have bought or contemplate buying a non-synchronous instrument, the Victor Phonograph Company is cueing the pictures of the different producer-distributors, indicating the records by numbers. With a supply of about three hundred records, an exhibitor is able to cover any feature. The records have the same music on both sides, so that if one side should get scratched the other side may be used without any delay or inconvenience. There are two turntables to each nonsynchronous instrument so that it is possible for the person that attends it to change records without interrupting the music. (I understand that these records are only leased.) These are good not only for the Western Electric type of non-synchronous instruments, but also for all other types. Terms The terms for the installation of a Western Electric talking picture instrument are as follows: io% upon the signing of the contract ($1,000 is the smallest sum accepted as a down payment), 15% upon completing the installation (by demand note), and the balance in 104 weekly payments, in addition to a weekly charge for engineering services, as well as a charge for interest and for insurance fee. In the case of the 2S type, complete with Movietone attachment, with the non-synchronous device, and with the megaphone, the total price of which is $11,300, the payments are as follows: $1,130 down, $1,695 (by demand note) upon completing the installation, and $122.80 weekly for 104 weeks. This $122.80 includes $29.35 for maintenance (engineering services) and interest on the money, as well as insurance fee. On the 2SX type, the price of which is $12,500, and complete with Movietone attachment, with a non-synchronous cabinet and a megaphone attachment, $1 5,300, the down payment is $1,530; upon completing the installation, $2,295 (by demand note), and $11,475 in 104 weekly payments of $169.80 each. In the weekly payments are included, as in the other class instruments, the interest on the money due, insurance fee, and $43.75 for maintenance. On the IS type, the basic price of which is $17,000, and with the attachments $19,800, the down payment is $1,980; the payment after the installation has been completed is $2,970 (by demand note), and $221.80 a week for 104 weeks for the balance, which is $14,810. This weekly sum includes amortization, as in the two other classes of instruments, interest on the money due, insurance fee, and $59.50 for engineering services. On the non-synchronous device, the payments are similar in all three classifications — 10% down, 15% (by demand note) upon completing the installation, and the balance in 104 weekly payments, which are: $38.50 for the $3,500 instrument; $82.50 for the $7,500 instrument, and $136.00 for the $12,000 instrument. These payments include, as in the case of the synchronous instrument, amortization, interest on the money due, insurance fee, and engineering services. (Note: Originally the charges for engineering services were, $40, $60, and $80 respectively for the three classes of theatres. But they were reduced last May 10%, and recently they were reduced again.) None of the Western Electric instruments, synchronous or non-synchronous, disc or film type, are sold; they are leased for a term of ten years. At the end of the ten-year term they still remain the property of Western Electric Company. Its executives have not yet decided what shall be done with these instruments at the end of the ten y-ears. Photophone RCA Photophone, Inc., whose address is 411 Fifth Avenue, New York City, has four different prices for four different classes of theatres, the class a theatre belonging to depending on seating capacity. Class D theatres have fewer than 750 seats; class C, fewer than 1,500 and more than 750; class B, fewer than 3,000 and more than 1,500; class A, more than 3,000. The following are the prices: Class D $ 8,500 Class C 11,000 Class B 13,500 Class A 17,000 The terms for payment are for one, two or three years. Twenty-five per cent is received as down payment, and the balance in equal monthly payments. In the one-year term contract, no charge is made for interest. In the two year term contract, $750 is charged for the class D; $1,000 for the class C; $1,000 for the class B; and $1,500 for the class A. In the three-year term, $1,250 is charged for the class D; $2,000 for class C; $2,000 for class B; and $3,000 for class A. On the two-year term, the prices become as follows: class D, $9,250; class C, $12,000; class B, $14,500; class A, $18,500. On the three-year term, the prices become as follows: class D; $9,750; class C, $13,000; class B, $15,500; class A, $20,000. The monthly payments start one month after the installation. The exhibitor is required to sign notes. The prices are subject to change without notice. This price does not include service charge; this charge will be separate, but it will not in any event be as big as that of Western Electric. RCA Photophone, Inc., will have several theatres in one locality grouped together and taken care of by one man. In the case of the small instruments, it is hardly possible that a company man will be required to attend to them; any one with a radio experience will be able to adjust anything that may go wrong with it. The insurance fee is not included in the purchase price, either; this has to be paid for by the exhibitor himself. ( Continued on back of this page )