International projectionist (Jan-Dec 1936)

News of the Month Brief mention of men and events associated with the motion picture industry of particular interest to projectionists is published here. ERPI practices in the sound equipment field were uncovered recently in the hearings conducted by the Federal Communications Commission in its investigation of A. T. & T., parent body of Erpi. Examination of J. E. Otterson, former Erpi president, developed the following: (1) Otterson's recommendation to his superiors that RCA be purchased, or arrangements made for its dissolution, because the price would be well worth while if Erpi could enjoy "exclusive" rights in the sound picture field, and (2) that Otterson was active in delaying comparative tests between Erpi and RCA equipments, so that the issue of interchangeability might remain unsettled, to Erpi's profit. F. C. C. counsel introduced wires from Otterson to the Erpi representative at the tests stating that the latter "doubtless will be able to find technical objections to anything they might do," and adding that it was essential to delay "until we have Pathe in the bag." All of which, the F. C. C. charged, was designed to raise in the minds of theatre owners considerable uncertainty as to the quality of RCA equipment, its ability to reproduce Erpi-recorded film, and the ability of the exhibitor to run RCA recordings and still have Erpi retain its responsibility for repair and replacement work on W. E. sets. The Commission charged that Erpi did nothing to dissipate this impression of RCA equipment inferiority. Otterson replied that Erpi was under no obligation to do so, despite the fact that the Erpi man at the test wired him that he had been "forced" to tell RCA that he had no criticism. The Erpi so-called equality clause was altered in Dec, 1928, until which time, the F. C. C. charges, exhibitors shied away from RCA because they feared being unable to purchase Erpi-recorded features. It was shown that Erpi's restrictive clauses in both the studio and theatre fields were modified in 1935 only after David Sarnoff, head of RCA, had filed with Erpi a draft of a proposed suit charging unfair tactics by the latter. (These charges were detailed exclusively in I. P. for October, 1935.) Erpi Servicing Policy Erpi equipment servicing policy, including repair and replacement charges, also were pried into by the Commission. The investigators sought to show that Erpi's compulsory service charges were unwarranted, with exhibitors forced to pay weekly for service the type and frequency of which was entirely at Erpi's discretion. In 1928 Erpi was servicing 450 theatres ; in 1932, it had 5,457, while in 1935 it had only 4,745 theatres on service. Annual gross income of Erpi from servicing from 1928 to 1936, including profit or loss designations, was admitted by Erpi to approximate the following figures: Year Gross Profit 1928 $950,000 $70,000 1929 3,375,000 125,000 1930 5,500,000 1,100,000 1931 5,000,000 965,000 1932 4,500,000 1,062,000 1935 3,000,000 270,000* 1936t 1,200,000 130,000* t Six months. * Loss. H. M. Wilcox, former operating manager of Erpi, testified that the drop in servicing revenue, as shown above, coincided with the elimination of the compulsory servicing charge. In October, 1934, Wilcox suggested the servicing of competing equipment by Erpi as a means of bolstering its servicing revenue. Numerous protests by leading exhibitors against the Erpi practice of compelling purchase of <Erpi replacement parts exclusively, which was modified in 1932, evoked from Wilcox the statement that "The repair business has always been a headache, and always will be. It is not profitable." The F. C. C. contends that the Erpi contract for parts purchased from W. E. and Bell Telephone Labs, necessitated a high price to theatres. Figures showing Erpi repair and replacement profits are as follows : profits of $60,000 in 1928; $77,000 in 1929, and $89,000 in 1930. Losses of $112,000 in 1931 and of $60,000 in 1932 were recorded. These figures supplement those given previously for servicing. The Commission released figures showing that at present there are pend DeMille Lauds H. Rubin's Projection Work Harry Rubin, director of projection for Paramount Pictures Corp., was tendered a testimonial dinner recently in N. Y. City on the occasion of his 25th anniversary on Broadway. Among the guests was Cecil B. DeMille, in N. Y. for the premiere of his new picture, "The Plainsman," who payed glowing tribute to Rubin for his projection accomplishments, discussed generally the great importance of projection to the industry, and wound up by saying that he had never failed to confer with Rubin regarding the quality of his big-picture prints before they were released. [28] ing 22 anti-trust suits against Erpi, totalling $175,281,675, figured on the usual triple-damage basis of such actions. Probably the most damaging bit of testimony unearthed by the Commission was a letter from Otterson which advised that a proposed agreement relative to sound licenses be submitted to Sidney Kent, Paramount head, as coming from one Louis A. Schwartz, a Paramount lawyer who at that time was one of two representatives of the producers in negotiating with Erpi. M-G-M's Four-Reel "Shorts" In an effort to curb the continually increasing use of double-feature bills, M-G-M plans to use some of its feature talent to produce a series of 4-reel "shorts," the contention being that the current dearth of quality shorts encourages the use of double bills. RCA Channels Installed Installation of RCA ultra-violet recording channels has been completed at the Warner, Columbia and 20th CenturyFox studios, reports RCA. Installations of High Fidelity theatre equipment have been double the rate of last year, it is asserted. First equipments from the new Indianapolis plant will be ready by Jan. 1, augmenting that produced by the main RCA plant in Camden. Dr. Lee de Forest Bankrupt Listing liabilities of $103,943 and exempt assets of $390, Dr. Lee de Forest, inventor, has filed a voluntary bankruptcy petition in Federal Court at Los Angeles, Calif. Stong Advanced at Erpi C. L. Stong has been named sales promotion manager of Erpi, heading a new department in that company. Move anticipates a more solid bonding between field sale force and home office personnel. Stong has been active with engineering division of W. E., notably with the Erpi field organization in Hollywood, Pittsburgh, and Detroit as division superintendent. Chicago Musicians Ban All Recordings by Members Chicago Federation of Musicians has banned all members under its jurisdiction from making discs of any kind, the theory being that this practice results in too much "canned" music being distributed, through ether or wires, with resultant loss of employment oppor