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CLAYTON THEATER 497
three important respects. The provision denning the equipment service and inspection charge included a clause to the effect that the stated charge should not be exceeded during the first 52 weeks of the period of the license and thereafter should not exceed a sum approximately 20% lower than the first charge. The insurance was borne by Electrical Research Products, Incorporated. The period of license, provided the exhibitor should not be in default in respect to any of the terms of the agreement, might be terminated at the option of the exhibitor at any time after the expiration of the first 52 weeks upon not less than six months' written notice.
Installation of the Vitaphone-Movietone system could be arranged for July 1, 1929, or thereafter if the order were placed prior to December 1, 1928. A similar order would insure the installation of Photophone on or after February 15, 1929. An early installation would have no effect upon the purchase of pictures to be shown prior to September 15,1929, inasmuch as the program of pictures to be shown up to that time had already been contracted for. A majority of these pictures were silent; a few had been produced with sound versions and showings of these pictures could be made with or without sound.
Prior to placing his order, the manager of the Clayton Theater took the opportunity of visiting theaters in which installations of the two systems had been made. A comparison of the two systems was found to be difficult because of the variation in the type of pictures filmed. It was his belief, however, that the Photophone system presented the more satisfactory reproduction.
An article in Harrisons Reports of August 18, 1928, gives the following discussion of the two systems:
The greatest enemy of good reproductions is imperfections in developing or dirty sound track. It causes a ground noise. Of the two film systems, the Movietone is subject to ground noise more than is the Photophone system, for the reason that the sound " shadings" of it can be affected by oil or by other dirt, whereas the Photophone system, not depending on " shadings" cannot be affected to an equal degree . . . In the Photophone, defect in the grain structure of the emulsion as well as imperfections in developing have less effect on the quality of the sound, for the reason that the defective part can be painted over with no detrimental effect on the sound.
The diaphragm used by the Movietone and Vitaphone has its limitations. It cannot stand overloading. In sounds of great volume,