Motion Picture Herald (Mar-Apr 1947)

CHICAGO HOT SPOT ON BIDS; FOUR MAJORS OFFER FILM Observers See Competitive Selling Aid in Ending Exhibitor Disputes by HAL TATE in Chicago Chicago has assumed one of the top positions in the country with regards to auction bidding with four distributors, MGM, RKO, Twentieth Century-Fox and Paramount, already offering pictures on this basis to some 20 houses in this area, even though the actual starting date of auction bidding need not become effective till July 1st. A survey made by the Motion Picture Herald indicates that wherever any theatre requests pictures or a run that the owner has not enjoyed heretofore, machinery is immediately put into action offering product to the parties involved. Distributors are bending backwards already in an effort to adhere to the letter in the New York decree in the anti-trust suit. Distributors Not Working Together on Bidding One thing is certain. The distributors are not working together on auction bidding, each company offering the feature according to the way their lawyers interpret the decree. According to J. Harold Stevens, Chicago branch manager for Paramount, pictures are offered competing exhibitors desiring to bid on films with a minimum price tag attached to each picture. On the other hand, Sam Gorelick, Chicago branch manager for RKO-Radio Pictures, said that no minimum price tag is put on films when offered to the competing exhibitors. One film row distributor executive said that, according to his interpretation, once a minimum price has been placed on a picture, and any bid over that minimum figure is received, the distributor must accept the bid. He added that where no price tag is placed on the film, the distributor can reject both bids if he feels that they are not satisfactory. To date, two circuits have been most affected by the new auction method of buying film. One is the Great States Circuit, a down-state Paramount affiliate, the other is the Manta-Rose Circuit, operating some 29 houses in Illinois and Indiana. Independents Are Bidding Against Great States Independent houses in at least three downstate cities are bidding against Great States on product. The Wanee theatre in Kewanee, 111., operated by Norton & Bramlett, is bidding against the Great States' Peerless theatre. Gus Constan, operator of the Avon in Decatur is bidding against the Great States' Lincoln and Empress theatre in that city while the Kerasotes Brothers, operators of the Senate theatre, in Springfield, are bidding against the Great States' Orpheum. In most instances, no awards have been made to date. However, in Decatur, RKO offered four pictures to the competing parties with Great States getting two and the Avon theatre getting two. The Manta-Rose Circuit has been hit by auction bidding in two situations. In Michigan City, Ind., Lewis Philon, who reopened the remodeled Liberty theatre on February 4, has obtained films by the auction method while in Maywood, 111., the Van Nomikos Circuit is asking to bid for its Yale theatre against the Manta & Rose Circuit's Lido theatre. Cause of Settlement of An Anti-Trust Action In Michigan City, the introduction of auction bidding has definitely been the cause of a settlement of an anti-trust suit filed by Mr. Philon against Manta & Rose and various distributors. Prior to opening his house, Mr. Philon had filed suit claiming that he was unable to obtain product. Through auction bidding, Mr. Philon has obtained product on a second run basis in Michigan City and is now being given the opportunity of bidding on first run by Paramount, M-G-M and Fox. As a result, an agreement settling the case out of court is now being negotiated by all parties concerned. In another instance, in suburban Cicero, auction bidding has been the cause of settlement of a "feud" between two rival theatre operators and at the present time they are splitting the product available. The Cicero squabble involved Jim Booth's Palace theatre and the Bartelstein Circuit's Annetta theatre. Following auction bidding by MGM and RKO, the two parties have come to more or less amicable terms with Jim Booth's Annetta joining the Allied Booking and Buying Circuit. RKO, however, is still selling these two houses on the auction method. Expect Sharp Increase In Bidding Requests All distributors are unanimous in their conviction that the near future will see a great upsurge of bidding requests. However, one distributor said, he felt it would eventually "level off," especially after some over-zealous exhibitors found they were bidding more than what they could actually afford. On the other hand, this same spokesman said that auction bidding in certain instances could well prove a boon to an exhibitor who might obtain some IS or 16 pictures a year in this manner at profit both to the distributor and exhibitor. To date the small independent exhibitors have been the loudest boosters of the auction method of bidding. Right now, they feel they at least can bid for the films — which is more than they could do before the new practice started. To date, RKO has been most active in the Chicago area in bidding. Here is their auction bidding schedule to date: Ten films offered the Bartelstein Circuit's Annetta and Jim Booth's Palace in Cicero. The Palace got nine, the Annetta, one. Six films have been offered both these theatres in a second group — bidding on which is going on at the present time. Great States Gets Two And Independent Two In Decatur, RKO offered four pictures. Great States' Lincoln and Empress got two — Gus Constan's Avon theatre obtained two pictures. In Springfield, bidding will start with the next group of RKO pictures. Competing are Great Statess' Orpheum and the Kerasotes Brothers' Senata. Lewis Philon has obtained six RKO pictures for second run for his Liberty theatre in Michigan City, while the Manta & Rose Circuit's Tivoli, Lido and Uptown in the same town have obtained none. RKO at the present has nothing available for bidding for first run in Michigan City. In Toluca, Illinois, John Tozzie, operator of the Roxy, has obtained four RKO pictures, while Russell Hurt, operator of the Isis has obtained one. Bidding is currently going on for RKO product between the Anderson Circuit's Wilton theatre and the Butcher Brothers' Mar theatre. Both houses are in Wilmington, Illinois. Pictures will shortly be offered to the Revue theatre and the Meltzer Brothers' Rivoli. Both are in Chicago. Offering Groups of Films In Competitive Situations Seven films have been offered for auction bidding to the Morris Alshuler's Vision theatre, booked by Si Greiver, and Ben Banowitz' Harmony theatre, booked by Allied. In Gary, Indiana, RKO is offering a group of films to the Fifth Avenue theatre, operated by Harry Abbott, and Tivoli theatre, operated by V. U. Young, head of Theatrical Enterprises. Twentieth Century-Fox is offering groups of pictures in several competing situations. In Kewanee, Illinois, five pictures have been offered to both the Wanee theatre and the Great States' Peerless: "Razor's Edge," "13 Rue de Madeleine," "The Shocking Miss Pilgrim," 'Wanted for Murder,'' and "Dangerous Millions." Cancel "Cynthia" Date MGM has cancelled the national tradeshow of "Cynthia's Secret," scheduled March 11. A new title and tradeshow date will be announced shortly. 24 MOTION PICTURE HERALD, MARCH 15. 1947