Motion Picture Herald (Oct-Dec 1932)

October I , 1932 MOTION PICTURE HERALD FIND GIFTS RETURN AS BOOMERANGS (.Continued from preceding page) large items. This served in a large way to take the edge off the idea for theatres. Carl Appell, Chicago's assistant corporation counsel, issued a statement in which he said that "any scheme in which the amount a customer receives is decided by chance is a lottery." The practice of giving away a piece of merchandise to every patron on a certain night still continues in Chicago and is outside the classification of lottery. Such schemes are said to have proved business builders, since they have aided business over a period of weeks rather than in spurts. The most popular giveaways along this line have been dresserware sets, silver and linen. Charlotte theatres have not participated in the awarding of prizes in several months. Recently, the Carolina theatre cooperated with merchants and a local newspaper in giving votes in connection with a citywide trade event, but save for this one activity Charlotte theatres have not given any prizes. The Philadelphia territory goes in heavily for premiums and giveaways, particularly among independents. Though drawings are frowned upon in eastern Pennsylvania, southern Jersey and Delaware, about 300 theatres are at present using premiums, representing between 30 and 40 per cent of the territory. Of these, 250 are consistent users, some for the last four years. The premium use depends mainly on location and competition afforded by chain theatres. The most popular premium appears to be china, of the 60-piece variety. Most of the gifts are aimed directly for women appeal. Many of Philadelphia's larger houses have held drawings, an electric refrigerator being the most popular. Many local theatre men have found, however, that interest in such drawings is not a substantial means of increasing attendance. The fact that perhaps only one person in 30,000 can win seems to keep down the interest in such affairs. In addition, there is a state law, supplementing the federal law against lotteries. Also the trial of Senator Davis of that state in connection with fraternal lotteries has focused attention on such matters. Iowa Opinion Divided Twenty-five theatres in Iowa which are using prize nights and lotteries are divided upon their benefits. A number say that it is one of those things which is easier to start than to stop, and many of the older exhibitors say that giveaways attract an audience which is not permanent. However, owners at Estherville, Cedar Rapids and Spirit Lake feel that giveaways build business and that fans become interested permanently in the theatre. The U. S. law against advertising lotteries in the mails seems to be the only law which has affected the use of gifts and lottery nights at Iowa theatres. The practice of giving prizes at theatres in Alabama has been practiced in many cities even though state authorities point out that it is illegal. Birmingham has two or three houses which practice giveaways. Articles range from candy to autos. Most managers in that city feel that giveaways increase box-office receipts provided a major prize is given away and the campaign is not too long-drawn-out. Several Salt Lake theatres are giving away automobiles. There is no law in Utah against such prizes. Extra business has been drawn to the Capitol and Paramount. Giveaways have engulfed St. Louis. Exhibitors and other merchants who are using the "something-for-nothing" bait to tone up business are hopeful that it will mean added profits in their tills. For the time being everything is moving smoothly and fastly. Everyone in town is hopeful of winning a new automobile, refrigerator or whatnot. Fred Wehrenberg, president of the MPTO of St. Louis, is among the owners EXHIBITOR LEADERS TO DISCUSS PROBLEM In next week's issue of MOTION PICTURE HERALD, exhibitor leaders of the country and important independent and circuit operators will discuss the giveaway rage which has been sweeping the country in recent months. Reactions at the box office, experiences of the circuits with giveaways and what the practice means to the industry will be subjects of the discussion. who have joined the procession, but says he would prefer that theatres depend strictly on their shows to get customers. His views are shared by other local exhibitors and the question will come before the MPTO convention at the Coronado hotel on October 4. St. Louis Amusement Company with its 22 neighborhood houses is a party to a citywide "Get-a-NASHAutomobile-for-Nothing" arrangement that is running for eight weeks, an automobile being given each week. Merchants are also in on the arrangement. To meet this competition, Mr. Wehrenberg and other independent owners have started a similar project. Local laws governing such pools make them illegal if they are operated for gain. In view of this, merchants participating have been instructed to give chances to any one asking for them regardless of whether they make a purchase or not. Practice Dropping at Kansas City Out of 20 leading exhibitors in Kansas City territory, only three declared they benefit from giveaways. The others consider the practice an "evil." Giveaways reached a peak in Kansas City last winter and spring when exhibitors outdid each other to offer "more for the money," but the practice seems to have subsided, except for a few instances, exhibitors finding that the results are detrimental. While it lasted, the craze reached the ridiculous. Besides ordinary giveaways, such as groceries, linen and chinaware, theatres gave away refrigerators, men's suits, dogs, auto radios, automobiles, automobile service organization membership and money. Exhibitors who benefit from the practice say it proves advantageous in some spots and not in others. The method of putting on the giveaway has much to do with its success, they say. Lotteries and drawings that might be construed as such are forbidden in Kansas and Missouri. Newspaper tieups wherein contests are used to create interest in current features are used extensively at Baltimore by first-runs, prizes in most cases amounting to $25 and free admissions. Many Delaware theatres in small farmer communities have been making awards, and houses in Dover, Newark, Smyrna, Harrington, Milford and Georgetown have been offering Frigidaires, while several have been making awards in cash. The giveaways have been popular and the performances are well patronized. However, a number of theatres have . dropped the awards. StanleyWarner houses gave an auto, refrigerators, household articles and gold pieces which boosted attendance considerably. Authorities raised no objection. San Antonio theatres, de luxe and lower grades, have been awarding prizes without molestation from authorities. The only precaution taken by the theatres is the observance of postal regulations. Within six months, the Texas, Publix's ace house, has given away four Chevrolets. The RKO Majestic gave away a fur coat and at present a raffle is under way on a riding habit. A number of suburban theatres use the old "country store" one night weekly ; goods of trivial value are given. San Antonio managers agree that lotteries are more of an evil than an asset because theatres are crowded on lottery nights to the detriment of other nights. There is not much use of giveaway methods in Louisville's downtown houses, but many suburbans are handing out dollar bills, groceries, hams, radios, washing machines, and so on, on certain nights, some every night. The Rialto is the only downtown theatre that gives away anything. A Chevrolet car is presented on Monday nights. The Brown theatre gave away trips to Yellowstone, also radios and refrigerators. The Alamo also tried the plan, giving away radios, then dropped it. Many local exhibitors feel that it would be a good idea if every one stopped giving away prizes. There has been no local or state objection to such policies. Twenty "lucky" patrons of the Humboldt theatre in Boston's Roxbury district received awards of a share of stock apiece. The plan went over well and wide interest was taken. Five shares in each of the principal stock groups were given. Stocks in 20 corporations were represented. Used at Tampa Gift nights have been played up strong in Tampa, and they pulled considerably. One theatre has given away eight automobiles, several radios, electric refrigerators, airplane trips and jewelry, and plans an offer of five Austin cars. Business at these drawings has been immense and there seems to be little, if any, reaction on other days. As most Tampa theatres have presented gifts, and profited by it, there is no expressed sentiment against them, and there is no law prohibiting their use. Giveaways are beneficial only to smaller houses, inasmuch as they serve only to increase receipts temporarily, according to Oklahoma City exhibitors. Warner houses and Publix have awarded Fords. Drawings of this kind are not illegal in Oklahoma, the only drawback being the federal law, hence drawings are not advertised in newspaper mail copies. Everything from electric irons to $1,500 automobiles is being given away in Seattle. Fords, Chevrolets, Plymouths and Nash sedans have been awarded by John Danz's Sterling chain, Fox West Coast, JensenVon Herberg and Lukan's Farwest Theatres. Because of state laws, winners are required to pay $1.00 for the auto. The auto giveaways are said to have helped receipts whenever used, because several theatres are included every time there is a drawing, the circuit playing to more than capacity at each theatre. However, Seattle circuit executives declare that they are not especially favorable to this method of attracting business, but will continue to use the plan as long as competitors do likewise. In the suburban and neighborhood Seattle theatres, special gift nights are held regularly. Merchandise for the household, food products and the like are given away. These special nights do not attract especially large houses, but are used instead of admitting twofor-one, or running double-feature. It has been reported that city authorities are planning a measure that will prohibit giveaways, particularly automobiles. At Albany there are no theatres awarding prizes as a means of bolstering box office receipts. The theatres there have avoided such practices. In Denver, giveaways have been used to extremes. Local houses, and those in towns near by, have used the idea and it is now fast falling into disrepute. The popular "night," especially in Fox houses, is the "gold" night, when $50 is given. The merchants each donate $5. Pub (Continued on following page)