Motion Picture News (Oct-Dec 1930)

November 2 2, 1930 Motion Picture News 29 Consolidation of Exchanges to Follow RKO Buy of Pathe; Lee Marcus at Head Talkers at Dime Kansas City — What's all this noise about high cost of theatre operation? The Lyric, a grind house near the downtown district here, advertises sound pictures and vaudeville for ten cents. And, according to reports, the place is making money. Advertising and Hard Work Zukor Prosperity Plan Hollywood — Work and work harder and advertise is Adolph Zukor's prescription for prosperity, he said in arriving here to consider the Paramount production budget. There will be no let-up in any line of his company's activities, Zukor said. "Work and work harder, and advertise your work," he declared. "That is what we are going to do. Last year we spent $25,000,000. I have not the exact figures for 1931, but there will be a substantial increase in our budget for the coming year. At the same time, we expect to get more for our money." M. P. Club Finances Need Aid; Membership Drive On The finances of the Motion Picture Club, where New York's film moguls meet for luncheon, dinner and bridge, need overhauling if the club is to meet running expenses. In the current issue of the "Motion Picture Club Bulletin" open declaration is made that more money is required to keep the wheels revolving. Present resident membership totals 384, which is 66 shy of the number required to make both ends meet. A drive is about to be instituted to shoot that total up to 450. Erpi Admits "Changes" But Denies Office Slash "The educational department of Electrical Research Products has made some revisions in its plan for promotion of non-theatrical talking pictures for industrial and educational uses. This has necessitated several small changes in operation of its sales force and in its district offices," stated W. E. Harkness, educational sales chief, in denying reports that his Erpi department would close branch offices throughout the country. Budd Rogers Back From Exchange Trip Budd Rogers, sales chief for Sono ArtWorld Wide, has returned from a seven weeks' trip to company exchanges, which took him as far south as Dallas. $5,000,000 Involved in Deal; RKO Covets du Pont Contract and Pathe News Consolidation of the RKO and Pathe exchanges, in a manner similar to the WarnerFirst National combination of sales forces, is one of the steps planned for Pathe, following acquisition of control by RKO. Studios will be operated separately. Under the plan, Lee Marcus, vice-president in charge of distribution for RKO, would head the combined exchange system. RKO is -aid to have paid $5,000,000 in the Pathe buy. Three big factors entered into the deal, RKO's desire to get the Pathe-du Pont contract and Pathe News and the other a desire to be relieved of its ten-year booking arrangement on Pathe product. With the duPonts and John J. Raskob interested in RKO, through their RCA holdings, it was felt that the Pathe-duPont raw stock partnership was too valuable to be lost. Particularly is the raw stock important at the present time, with the duPont-Raskob combination heavily interested in Warners, which holdings they are increasing presumably with the idea of landing the raw stock business of these two firms for PatheduPont. Courtland Smith, president of Trans-Lux, has a tie-in with RKO on the newsreel he is preparing to launch, but a combination of it and Pathe News is expected. Lee Marcus Clarke and Rice Elected Directors of Loew's, Inc. Harley L. Clarke, president of Fox Film and Fox Theatres, and H. M. Rice of F. W. La Frentz & Co., were elected to the directorate of Loew's at the annual meeting of the board held Thursday. They replace Jacob L. Rubenstin and Albert M. Greenfield, the latter prominent Philadelphia realtor who handles the Warner interests in that city, both of whom had represented William Fox in the management affairs of the Loew organization. Rice is understood to be identified with Clarke's financial sponsors. It is generally understood that the ClarkeRice appointments carry no special significance. For the Record Hollywood — M-G-M has purchased "Horse Flesh" by Frederick Hazlett Brown for future microphoning. Local wit says the picture will have a Tiller girl routine built in. Tabloid Brains Chicago — Ashton Stevens tells one on the new movie critic on the tabloid who was offered a 12 x 14 photograph of a movie star by her enterprising press agent. "It's awful pretty," said the guesser sadly, "and I'm awful sorry, but we can't use it. It's too big for our paper." Kutinsky Plans 150 Theatres in N. E. Territory Development of a chain of 150 New England theatres is planned by a syndicate being formed by Morris Kutinsky, veteran head of the former New Jersey Theatrical Enterprises, and executive of Fox Metropolitan Theatres. Kutinsky on Monday will open an office at Boston to direct the assembling of the circuit. The theatres will be taken over on a lease basis, the organization planning to acquire all-size houses, depending on the individual proposition. Waxman Contact with All Chains on W.B. Long Runs A. P. Waxman, as one of an advertising counsel triumvirate of which Harry M. Warner and Sam E. Morris are the other members, will co-operate generally with all circuits in developing special campaigns on behalf of Warner-First National product. Waxman's post is a new one and has been specially created for him. The Warner organization states that grosses of the same pictures in different cities of approximately identical population have shown wide range, the difference leading to the conclusion that the exploitation and advertising influenced the returns. It will be Waxman's job to delve into this situation and develop campaigns to eliminate that difference. In addition, he will continue to supervise the five Warner houses on Broadway. Fox Off Screen Ads, Firm Managers Are Warned While Paramount and Warners are developing advertising reels for use in their theatres, Fox has come out with a declaration against use of screen advertising. Managers have been instructed to make arrangements to eliminate any advertising now being used on the screen. First Jones Film April 15 Bobby Jones will complete the first of his 12 Vitaphone subjects for release April 15. with the subjects to be released at two-week intervals thereafter. They will be made under the general title of "How I Play Golf."