Motion Picture Herald (Sep-Oct 1941)

24 MOTION PICTURE HERALD September 27, 1941 AWARD STRESSES FREE COMPETITION (Continued from preceding page) pared with $607.44 per week for the Cort. The Raritan rental, parallel to seating capacity, is 34 per cent of the Cort's, or equal in per seat revenue to the larger theatre. Distributors, he said, had failed to prove that average rentals from both theatres is, or would be less than from the Cort alone. Gift night at the Cort, when women receive "free china or face paint," ice cream for children, bingo or similar games until banned by law, cut rate tickets at the time of the Raritan's opening and other devices offset the five to 11 cent price differential between the Cort and Raritan admissions Mr. Fitzpatrick found. Cites Total Rentals Confidential exhibits, the arbitratotr noted, showed that the Cort paid 82.6 per cent more rental to its highest priced distributor than to its lowest. The spread for the Raritan on a per firm basis was only 30 per cent. One distributor who disclosed income from the Cort during 1941, compared with the first part of 1940, showed an increase of 12.7 per cent from the Cort, plus 38.8 per cent of the increased Cort payments received additionally from the Raritan after it opened on April 24th. The arbitrator asserted it was clear that executives or salesmen negotiating contracts with exhibitors showed little or no success at arriving at "anything like a scientific appraisal of the weight to be given the various factors that go to make the selling price." Studying population in the United States the arbitrator noted that with approximately 17,000 theatres in operation there is a theatre for every 7,600 persons. Raritan he added is a separate municipality with a population of 4,800 surrounded by other populous communities, many w ithout theatres. The Playhouse may assume to have a natural patronage potential of at least the U. S. Average of 7,600, he declared. In conclusion Mr. Fitzpatrick observed that the Cort brought competition to older theatres when it was established. In turn, he said, it must expect to face competition from newer theatres, which have "a constitutional legal right and an ethical and economic right to open and essay to make a place for themselves." "If the ensuing competition is governed by principles of fair play and decent management, and the potential local patrons are given the choice of waiting to see a picture at their local theatre instead of seeing it earlier at another and more distant theatre, then, in the Arbitrator's opinion, this competition is constructive, not destructive," he observed. St. Louis, Ohio Cases End The some run complaint of Louis M. Sosna, operating the Sosna theatre in Mexico, Mo., was dismissed at St. Louis this week by Fred A. Armstrong, arbitrator, after one hearing on September 4th. Mr. Armstrong ruled that the defendant, Metro-Goldwyn Mayer had in fact offered the Sosna a reasonable run, which had been rejected. The complaint was the second filed by Mr. Sosna. A previous some run action filed in March naming the Big Five and Universal, Columbia and United Artists was withdrawn, after it had been classified as beyond the jurisdiction of Section VI of the consent decree. Mr. Armstrong levied costs against the complainant, but noted that the dismissal was without prejudice against a new complaint if circunislai'i'cs warrant a third action. \t Cincinnati Herbert V. Koch, arbitrator, dismissed the clearance complaint of V . \Y. Rowlands in behalf of his Main theatre, in Columbus, The complaint named the Rig Five and Neth's Eastern theatre and sought a reduction from 21 to seven days. Costs were as ARBITRATION CASES FILED TO DATE The following is a summary of the arbitration cases filed to date: Filed This Week: New York — One on Clearance St. Louis— Two on Some Run Previously Reported: Clearance 89 Some Run . . 28 Specific Run v . . . 1 Total to September 24th . . 121 Settled This Week: Washington — Case No. 3 (Appeal) New York — Cases No. 6 and 13 St. Louis — -Case No. 3 Cincinnati — Case No. 2 sessed against the complainant. A factor in the decision was the higher admission scale of the Eastern. It was Cincinnati's second complaint. New York New York's sixth case, the complaint of the Andora Amusement Corporation, operating the Liberty in Plainfield was also settled this week when James O' Gorman, arbitrator cut the clearance of the Strand theatre from 30 to 21 days. Paramount, Warners, RKO and 20th CenturyFox were ordered to change the availability of pictures for the Liberty. The complaint against Metro-Goldwyn-Mayer was settled and withdrawn by Joseph Siccardi, president of the Andora Corporation in June. Mr. O'Gorman noted that the consent decree recognizes that motion picture theatres perform a public service and that it is in the public interest to present pictures while they are still timely. In reducing the Strand's margin he ruled it was within the arbitrator's obligation to give the public pictures at the earliest possible date without injuring either of the theatres involved. Costs were assessed equally. The case had been on the New York docket since March. The 22nd New York case was filed on September 18th when the Arden Enterprises, Inc., operating the Arden theatre at Columbus Avenue and 103rd St., New York, sought reestablishment of a previous clearance and run arrangement in its competitive area. MGM and Paramount are named. The Arden asserts that formerly it played day and date with the Carlton theatre, and four days after the Stoddard, Olynipia, Riviera and 77th Street. Now, it asserts, the Olympia has 44 days precedence, the Carlton five days, and the Stoddard 34 days. William Raster operates the Arden. St. Louis Two new complaints, both seeking some run, were filed in St. Louis last week. The complainants are Floyd Lowe, owner of the Star Theater at Lebanon, Mo., and Mrs. Mildred Karsch, operator of the Kitz, at Rolla, Mo. The Bin Five are defendants. Ben Ti pper, attorney for both complainants, said the distributing companies had refused to sell his clients any films on a definite basis, and they had to be content with reissues four and five years old, while competitors were get ting latest releases. Mr. Tepper named the Gasconade Theater Corporation, a circuit operating the Lyric at Lebanon and the Rolla — Mo at Rolla, as interested parties. The third St. Louis complaint, clearance action by Victor Thein, operator of the Palm theatre in North St. Louis, will be heard on October 3rd before former circuit judge J. Wesley McAfee. The St. Louis Amusement Company has intervened for the Aubert and Union theatres. Chicago Hayes McKinney, an attorney, has been named as arbitrator of the Oriental Theatre's Chicago clearance case against the five consenting companies for better playing time in the downtown district. The hearing has been set for October 7th. Philadelphia Philadelphia's case No. 9, the first of three clearance complaints by Abe M. Ellis, originally scheduled to be heard on September 24th, was postponed until next Monday, the 29th. The postponement was asked by the Warner circuit attorneys. The complaint was entered for the Broad theatre. Kansas City Wendell H. Cloud will hear Kansas City's second case, clearance complaint of the Dickinson theatre, Mission, Kan., on October 6th. In Kansas City's third case, a clearance demand by D. R. Gifford, operating the Louis, a negro theatre at St. Joseph, Mo., 20th Century-Fox and MGM, defendants, have named the Durwood-Dubinsky Brothers circuit, operating the Missouri, Orpheum and Electric theatres as an interested party. Fox also cited the Crystal theatre as an intervenor. Portland O. J. Miller, executive secretary of the Independent theatre owners of Oregon at Portland this week charged that clearance conditions there result in disadvantages to all independent exhibitors. Citing the complaint of William Graeper's Egyptian theatre (reported in Motion Picture Herald last week) he asserted : "This arbitration is considered by all small theatre owners to be a test case and, at a trustee meeting of the Pacific Coast Conference of Independent Theatre Owners, the directors voted to support substantially the Portland findings. Robert H. Poole, executive secretary for the Pacific Coast, enroute to California stated, "The Pacific Coast Conference of Independent Theatre Owners is definitely protecting its four-unit member against the bigger companies and will exert every effort to see that unfair clearance in Oregon is corrected." In other territories he asserted clearance provides for the public benefit, instead of the larger and higher admission houses. Stessin Leaves A. A. A. Lawrence Stessin, public relations director of the American Arbitration Association at New York, resigned this week to join the staff of the Labor Relations Institute. Prior to joining the AAA he was a staff member of the New York Times. "Kampf" Adds Languages The motion picture, "After Mein Kampf," originally produced in France with French dialogue and later produced in London with English dialogue has recently been completed in two additional languages, Spanish and Dutch, according to an announcement from Crystal Pictures in New York.