Publix Opinion (May 16, 1930)

Pad PUBLIX OPINION, WEEK OF MAY 16ru, 1930 MR. DEMBOW OUTLINES PUBLIX EXPANSION IN NEW ENGLAND A comprehensive outline of the company’s entry into the theatre operating field, with particular emphasis on the growth of the New England acquisitions, was made by Mr. Sam Dembow, Jr., at the Boston meeting. Mr. Dembow, who. was ac tively in charge of negotiations for the new acquisitions, was in a position to give his audience first hand information. His address follows: I always find myself in a rather awkward position trying to follow Mr. Katz because he so thoroughly covers his subject matter, and if I happen to repeat on some of the things he said to you, you will know that our act is not rehearsed. During the past year and a half the greater portion of my time, as some of you know, has been devoted to the expansion end of our business, and while I have tried to keep abreast with the other departmental functions of our business, that particular phase has kept me pretty well occupied, as you can imagine, from the very ambitious expansion programs that our competitors have tried to follow through. In this past year or year and a half, as Mr. Katz related to you, we have made tre'“mendous strides in developing and acquiring theatres and theatre circuits, but nowhere have we quite made the progress that we have right here in New England, and that was only because we felt that Fitzgibbons and you boys would and could follow through on any expansion program that our company saw fit to lay out for you. Millions Spent Millions and millions of dollars have been spent in rehabilitating old theatres and acquiring new ones in New England, and I am indeed happy to say that up to a reasonable point you have justified the company’s investment in this territory, and I hope that your results from now on will warrant our continued faith and confidence so that we can carry on to an ultimate conclusion the program we still have in mind for New England. In speaking of our New England operations today, I think it might be well in passing to say a word about how our company came into ‘the theatre operating field, espe cially since it was in the New EngJand territory that it originally started. Some of you are very familiar with the facts, while others may not know the combination of circumstances’ which I might say actually forced Mr. Zukor’s decision to enter into the theatre operating field. Back in 1917 an organized group of the most prominent and powerful exhibitors throughout the United States formed the First National Exhibitors Circuit. I might say right here that Mr. Katz was one of the most promi SPEAKERS AT FITZGIBBONS DINNER |whereby Mr. nent factors in that organization. Their plan was to advance the cash to directors and stars for the making of pictures and in this way gain control of such pictures at cost plus certain overhead expenses. Mr. Zukor at that time implored both exhibitors and producers to stay in their respective fields but they would not listen, with the result that finally, to protect the company’s investment, he was forced into the theatre operating field. ‘The very first step was the acquisition of the Rialto Theatre Corporation of New York which, with certain subsidiary companies, controlled the Rialto and Rivoli theatres in New York. Through the acquisition of the Rialto Thea tre Corporation, we acquired the j Graphic Presentations Company, which was operating the Fenway Theatre in Boston, and this marked the very first entry of Famous Players into New England. In 1920 a 50 per cent interest was purchased by Famous Players in the Alfred S. Black Theatre Corporation which operated approximately 43 theatres throughout New England, a great many of which were of an inferior type, and whose annual gross was approximately $1,000,000. A 10-year management contract was made with Mr. Black and the name of the company changed to the New England Theatres, Incorporated. Not long afterwards we purchased 100 per cent in this corporation along with the management contract. In 1922 Mr. Harold Franklin joined the company as Director of Theatres, and one of his first steps in the New England territory was to make an arrangement with Bill Gray, who was managing the Maine & New Hampshire Theatres, Gray would have charge of the theatre expansion of New England Theatres, Incorporated, and certain of the theatres of that organization. Buy Olympia Theatres In July, 1925, a 100 per cent ownership of Olympia Theatres, Incorporated, was purchased from Messrs. Shulman & Gordon, and this undoubtedly was the outstanding New England circuit at the time. By this acquisition the company secured a half interest in Maine & New Hampshire Theatres, which was owned by the Olympia Theatres, Incorporated, and Mr. Bill Gray was then made manager of the entire circuit in addition to New England Theatres, Incorporated and Maine & New Hampshire. It was shortly after this, in September, 1925, that Mr. Katz join ed Paramount and Publix was born. Then our real expansion program started, not only in New England, but throughout °* the whole country. However, it was not until early in 1928, after the death of Bill Gray, that we sent Fitz up here to take charge of our entire New England division. Because of his able and aggressive management we were encouraged to combat our opposition, by acquiring theatres in Worcester, Springfield and Hartford. All the other moves we made are now history, and I will not waste any time repeating them. ~~ You heard Mr. Katz tell you this morning about the: deal we re cently consummated whereby we acquired an interest in and the operation of the Netoco, a circuit of 34 theatres in 16 additional towns, also the Goldstein Brothers Circuit of 16 theatres in 10 more towns, all of which means that we have assumed a tremend-~ ous responsibility, and I just want you to know that as the company’s responsibilities increase, just so much do your individual responsibilities increase. Thanks Schaefer Dating back from the time of Fitz’ entry into this territory, there has been one man in Paramount who has had much to do with our growth in New England, as much as any one individual, not excluding myself, and to whom I want to express publicly my sincere thanks and appreciation for his whole-hearted support and cooperation. I refer to my friend and our friend, George Schaefer. I am very frank to admit that without his guidance and knowledge of this territory our progress would not have been as rapid as it has. . I also want to take this occasion to thank Tom Bailey and all the boys in his exchange for their ever willingness and readiness to serve us whenever we called upon them. Now, Fitz, there are a few words I am going to say to you, and they can only be few, after what was said last night. With the same energy, loyalty and ability that you have shown up to this point, you cannot help being a big success in your new assignment, and at least I want you to know that that is not only my wish, but the wish of every man in the home office. And for you, Mullin, well, it was I who first suggested your name to head the division in the northwest. My judgment has been vindicated by your very remarkable showing, and therefore I feel confident that you will duplicate that same performance in New England. In Atlanta, Georgia, there is a well-known newspaper published called the Atlanta Constitution, with quite a very large circulation throughout the entire South. Its slogan is, ‘“We cover Dixie like the Dew.’’ Now, while I realize that there is some anti-chain agitation in some parts of the country, I.say with impunity that if you boys do your job well, that very same slogan will in time be applicable to the Publix theatres throughout New England. Gathered to honor an astute showman, a likeable executive, and a man who “represents the highest standards of Publix,” about 350 persons including home office executives, dignitaries of city and state, and the members of the New England Division paid tribute to former Division Di HUMANE SUPERVISION AND JOB ROTATION IS CRUX OF _ PUBLIX MANPOWER POLICY Humane supervision of one’s juniors and Job Rotation were stressed as the crux of Publix Chatkin at the Boston meeting. all statements about the development of manpower are just idle talk, he said. Mr. Chatkin’s talk follows: As we sit back here and look out in the room we are struck with the same thought that you must be as to the size of your organization in New England. That is one of the fine things about a meeting of this kind, that it gives the boys individually an idea as to the size and scope of the company with which they are associated. I do not know of any other way in which that can be accomplished, and E am sure if this meeting should accomplish nothing else— and I am sure it will accomplish something else—you will carry back with you a picture of the size of your manpower in your New England district. Highlights of Division When Fitz came up here in Jan luary, 1928, it was not until June that the New England division was broken up into five districts at that time, and those were assigned as follows: Mr. Sternburg, who was man ager at the time of the Scollay |. Square Theatre, Boston, took charge of six towns with a total of 13 theatres. | Mr. Moreau, who had been field representative of the Gray Circuit and who at that time was handling ‘“‘The Jazz Singer’’ and ‘‘Rodeo Show,” took over 14 towns with a total of 35 theatres. Mr. Zorn, previously city manager at Poughkeepsie, at that time a part of Mr. Fitzgibbons’ district, was brought up from there and given charge of the theatres located in Boston, Cambridge and Dorchester, which totalled seven in all, not including the Metropolitan. . Mr. Cuddy, who was manager of the Olympia Theatre in Lynn, was given charge of 14 theatres in eight towns. \ George Walsh, from Yonkers, took charge of five theatres in three towns. That was your picture. Today, as the result of the acquisition of new theatres, this division has grown in less than two years from 34 towns to 71 towns and from 64 theatres to 147 theatres. It now boasts of two division managers whereas less than two years ago it was. entirely handled by Mr. Fitzgibbons, and where five district managers were able to handle the divisions there are now twelve. From the above you can gather that the division has more than doubled itself in size. It has been broken into two sub-divisions, one ED rector John J. Fitzgibbons. The photograph below is a close-up of the speaker’s table at which are seated home office executives, and the civic representatives. Mr. Fitzgibbons is succeeded by Martin J. Mullin, former division manager of the Northwest Division. Manpower policy by David J. Unless this is put into effect, of the sub-divisions under the jurisdiction of Mr. Branton and the other under the jurisdiction of Mr. Cuddy. Mr. Branton as division manager has charge of eight districts comprising 107 theatres which are located in 47 towns. The district managers under Mr. Branton’s supervision are Mr. Zorn, Mr. Hookailo, Mr. Dempsey, Acting District Manager Mr. Mc| Namara, Acting District Manager Mr. Shellman, Mr. Spragg, Mr. Moreau and Mr. Sternburg. Under Mr. Cuddy’s supervision there are four districts and 40 theatres representing 24 towns, with the following district managers: Mr. Smith, Mr. Cruzen, Mr. Chatkin and Mr. Shellman. In addition, the New England division now boasts of two divis ion offices, one in Boston and the | other in Springfield. It also has three district offices, one in New Haven, one in Hartford, and one in Yonkers. The division also has an art shop located in Boston. “Now that, very briefly, is the picture of your division today from the standpoint of theatres and from the standpoint of men. Starting out with five district men there are now twelve. There are seven men that have come through the ranks, and it clearly again indicates what has been said here before—the splendid opportunities there are for everybody who is willing to work. ; I might repeat here what was said at the Chicago meeting because it is one of the subjects closest to me and about which I feel very strongly. You all must have read the article that appeared in Publix Opinion not so long ago. I have reference to patience and tolerance for the men directly under you. Unless you have this patience and this tolerance to develop these men, the development of man power is just an idle statement, it does not mean anything, and there is not any greater job that we have than the development of man power. Be human in your treatment of the men directly under you. Give them an opportunity to think. Do not try to do all the thinking for them. You cannot develop them unless you allow them occasionally to make a mistake. Treat them just exactly the same as you have been treated, those of you who have advanced through the ranks, and remember this: That you cannot hope to advance unless you have developed in your district and in your theatre one or two men who could satisfactorily fill your shoes any minute you were promoted. Now just think that over as you go back to your respective jobs. You cannot hope to elevate yourself out of a district as district manager unless there are one or two men equally as efficient as you are to take over your job if you step out, and if you do not develop those men in your district for that kind of advancement, you are not de ~veloping man power in the real sense of the word. That is the real crux of any mes- sage I could bring to you. It is the most important message. Give your boys in your theatres an opportunity to do some of the work occasionally that you are doing. Pick out one and rotate him in the theatre in the various departments, talk with him and let him think, and let him give you his (Continued on Page Nine) ag is