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CLAYTON THEATER 499
ing device, the non-synchronous device, and a microphone for making announcements.
Commentary: This case introduces several interesting issues. The owner of this theater believed that sound equipment was necessary: first, because the novelty appeal of sound pictures could be capitalized; second, because sound pictures might prove to be permanent; and third, because motion picture producers would devote practically all their attention to the production of sound pictures and consequently the number of available silent pictures would be reduced materially and would be likely to prove of inferior quality. He reasoned, therefore, and probably rightly, that although unable to anticipate with any defmiteness how great the added gross box office receipts might be, he was compelled to install sound equipment. Furthermore, he felt compelled to do so immediately, although realizing that such equipment would probably cost substantially less at some future date. If increased box office receipts were to be obtained, it seems reasonably clear that the increase would be due either to a greater number of patrons or to the fact that longer runs were possible with an attendant lower proportional film rental, and not to the charging of higher admission prices.
A distinct issue was presented to the manager in the fact that the best equipment, from the point of view of quality, was sold under conditions which seemed to him to be disadvantageous. Assuming that a great majority of inferior sound equipment was so distinctly of a lower quality as to be not worthy of consideration, the question still arose as to a choice between Vitaphone-Movietone on the one hand, and Photophone on the other. In his judgment, the latter was of superior quality; yet he chose the former. There are three reasons why this decision was reached: mainly, the contract was more liberal; second, it was his belief that, although at present inferior, the VitaphoneMovietone equipment would eventually be of as high quality as Photophone. It was true also that his judgment was affected by the fact that a majority of the producer-distributors from whom he purchased pictures were using Vitaphone-Movietone recording equipment.
His decision not to use one of the other types of equipment which were substantially lower in price, was unquestionably sound. Particularly in the developmental stage of sound pictures, the theater's patronage undoubtedly would suffer if inferior equipment were adopted. Furthermore, it was undoubtedly true that much of this equipment would be alleged as infringing upon basic patents held by such companies as the Western Electric Company and the Radio Corporation of America. November, 1929 H. T. L.