Publix Opinion (Jul 11, 1930)

today before the convention of Publix theatres. Mr. Upton's speech follows: “My duty here is not to make a speech or to talk about the technicalities of accounting. I welcome, however, the opportunity to first of all acknowledge the wonderful co-operation my department has received from each and every one of you during the past year. “My discussion during this afternoon might well be divided into three parts: 1. History of the Aci counting Department; 2. The ; Present Organization; 3. Insurance. “Our dates back some little time before the opening of the Central Park ‘i theater in 1917. Im those days Messrs. Barney and A. J, Balaban operated what was known as a ‘nickel movie.’ It would be intera esting to see those first receipts, 7 which totalled between $25.00 and $50.00 per week. Of course, there o had to be an accountant to keep these records, even though they were small, and even up to the opening of the Central Park, when Sam Katz and Morris Katz joined it the organization, there was one i man who did all the accounting, as well as watched the finances, a and that was our Mr. Barney Balaban. ii “Shortly after the opening of the Central Park, Ashman Reedy company, a certified public accounting firm, helped in the bookkeeping work and prepared quarterly audits. In 1919, the building of the Tivoli and Chicago theaters required a great deal of Mr. Barney’s time so that he could not spend as much time as he had in the past on the accounts of the Central Park and Riviera theaters, which latter theater was opened October 2, 1918, so an accountant wag hired. In 1922, when I joined the ranks, there were three men in the department and a steH nographer-typist. The four of us ] took care of the records of the i} two above-mentioned theaters and the Tivoli, which was opened February, 1921, as well as the Chicago, which opened in October of 1921. In 1922 we made a lease | on the Roosevelt theater and start accounting department ed to operate that. Shortly after the Roosevelt opened, plans were drawn and the Uptown, Oriental and Norshore were constructed in the ensuing years. Purchases | The purchase of an interest in Lubitzer & Trinz circuit and Great States in 1925 was probably the most work that fell on the accounting department, and then in 1926 we entered into an agreement for a percentage of the Detroit operations under the Kunsky Theatres Corporation management. In 1926, Paramount-Famous Players-Lasky corporation purchased a substantial interest in the Balaban & Katz corporation. Of course, this did’ not affect the accounting department other than that it increased the number of reports that had to be sent to their New York office. “xpansion continued, and in 1929 the L. & T., Kunsky and Balaban & Katz accounting departments were brought into one office and records and accounts of fortyone theaters were handled by our accounting department in Chicago, Since October, 1929, there have been several theaters added until now we have forty-six (46) houses, for which we must prepare weekly _ gstatements and keep records and accounts. This gives you a brief _ history of the accounting department, The second topic which I want to discuss is the present account{ng organization. We are divided BIAS More PUBLIX OPINION, WEEK OF JULY 1lr, 1930 UPTON EXPLAINS FINANCIAL PHASE OF SHOWMANSHIP Chicago, July. 1—The growth of the accounting department of, Publix Balaban & Katz Corp., keeping step with the organization from its inception until its development as a unit of Paramount Publix was outlined by Mr. E. C. Upton, comptroller, in his speech the Chicago-Detroit division of into several units, which I will briefly name. “Wirst — Audit and Quarterly Statement Unit: “This department analyzes ledger accounts and prepares detailed reports each quarter for Messrs. Barney and John and for our New York office, which they consolidate with their reports and file with the New York Stock Pxchange. “Second—Ledger Unit. “Third — Film and Production Unit. “Wourth—Cash Receipts Unit. “Vifth—Disbursement Unit. “Sixth—Payroll Unit. “Seventh — Weekly Statement, Unit. “This unit prepares the weekly statement of operations for your theaters each week, having them completed not later than Tuesday noon. Here I would like to tell you that we are making plans to put into your theatres a card whereon you will record each week the detailed expenses of your theaters from the weekly: statement blueprint which will be loaned to you by your district manager. This is being done with the idea that you will be able to watch your expenses as well as find means to increase your box office receipts. No one realizes more than I do that it will’ be. necessary for the accounting department to work very much closer than they have in the past with the theatres so that these reports will contain the exact information each week. By that I mean that expenses of one week do not get into another week in which they do not belong. Accrual Unit “Wighth— Accrual Unit. This unit helps to prorate large items so that they do not affect one week if they do not belong there. “Ninth—Statistical Unit. “This unit prepares facts that are history. For instance, some data that they built up the other day shows that in 1922, 10,982,000 people attended the then Balaban & Katz houses and that in the year 1929 58,686,000 attended Publix theaters in both Chicago and Detroit. “Tenth — Travelling Auditor’s Unit. “This unit, I want to make very clear, is maintained for your benefit more than anything else. We want it understood that it is not our intention to spy or to do anything which may make it appear that we are trying to find something on you, because we are not. This department operates to enable you to know at periodical times that your accounts and your cash are in balance. I am sure that most of the men have appreciated this in the past and many of them have, even requested more frequent visits of the traveling auditor. “All of this work that is done by the accounting department of course takes personnel and we today have some sixty people in this department as against the four that were employed in 1922, ““3.—Insurance. “Insurance can be divided into a number of classes; but for the purpose of my discussion I will limit it to Fire, Liability, Fidelity, Burglary and Holdup. Fire Experience Satisfactory “We are very pleased with our fire experience and we want to assure, you that it must be maintained. In order to maintain such low rates as we have on our various properties for fire, it is imperative that we all take the necessary precautions against fire. Be careful about allowing waste paper and junk to accumulate in corners; also see that no old scen FROM MR. CHATKIN John Balaban, Chicago Theater Bldg., Chicago, Ill. Do not believe you could have picked better time to hold convention of Chicago-Detroit organization. It marks what . we believe the turning point in our business with the releasing of new and outstanding product by our own company as well as some of the others and the waning of the first call of the outdoors. From what we can gather, have every right to be optimistic regarding third quarter. However, believe it highly essential not to relax our pressure nor close scrutiny of every item of expense. Quota for third quarter being prepared now and will be based practically on third quarter figures last year which believe can be reached and in some cases exceeded. Want to take this opportunity of extending to you and your organization now in convention our fullest appreciation of splendid job done in second quarter in spite of every obstacle known to show business. Standing of Detroit-Chicago organization among very highest in relation to other divisions. We feel certain that when results are added up at end of September, same will show your division out in front by large majority. Kindest regards and best wishes to all for a most successful meeting front every standpoint. D. J. CHATKIN ery and properties are stored in some loft on the stage; rags and waste should very carefully be put into metal cans. ‘No smoking’ signs have been installed on the stages and in the booths of our various theaters, and we would appreciate your cautioning the men about smoking, as it is very dangerous for our patrons. “Viability insurance is one of the most troublesome that we have. Great care should be used not to encourage patrons to make a claim. By that I mean do not force your attention and put into the mind of the patron that just because they have fallen they are injured. It is, of course, of vital importance, whenever it is possible, to get the name and address of the patron who has been injured. I wonder if you know that every time a patron makes a claim or an employee is injured that our | insurance rates for liability insurance are materially affected and if we have enough of these claims they will increase the cost of our insurance, thereby increasing the expense to your theaters. We must also remember that it is to our advantage that as few accidents as possible occur, as it helps the institutional value of our organiza B-K WAREHOUSE IS VITAL FACTOR Chicago, July 1—One of the most amazing developments within the Publix Theatres organization in the Middle West, is that of the Warehouse, located at 408 N. Ashland Avenue. In a scant four years, this building which now houses the Purchasing, Maintenance, Construction, Interior Decorating, Electrical and many other equally vital departments has sprung up from a mere storehouse to an important place in the Publix Theaters Corp. In 1926, the Warehouse staff consisted of Mr. Nortman who was in charge and about six assistants. It was their duty to store and record every bit of furniture, stage sets, excessive statuary, objects of ject in the Chicago Theater and offices. As the Publix chain expanded, new departments were formed and many revolutionary ideas were put in execution. The result is, that the Warehouse is one of the most important links of the entire Publix Circuit. mon At present, this building is beE Z ing utilized to the last possible | Fidelity Insurance inch, and a force of about ten times the original crew is needed “Widelity insurance, as you) to fulfill all the duties that go to know, is the bonding of our em-| ployees for a certain: amount of money. ‘There is a great deal of value to this kind of insurance, in the way that each employee is investigated very thoroughly and we find out many things which in an ordinary application are not set forth. Along this line, I request of each of you that whenever an employee who should be bonded— and generally they are the managers, assistant managers, cashiers, ticket takers, treasurers and in some cases chief night janitors —our fidelity bond is a position schedule. By that we mean the position of manager is covered whether it is occupied by Mr. Jones or Mr. Smith; but applications for the bond must be forwarded to our accounting office not later than two weeks after the employee has been employed. It is not necessary that when a bonded employee is promoted, say from treasurer to manager, for him to sign a second bond. “Burglary and Holdup insurance experience has been very poor in Chicago and we have done everything that has been suggested to limit the risk and have partly succeeded in our endeavor. I say along this line that we are open for any and all suggestions which you may have wherein we may be able to safeguard our money and further still safeguard the lives of our employees. “We are ready to cooperate with you to the utmost and hope that you will avail yourselves of our department whenever it is possible for you to do so,” make a mighty corporation. ART DEPARTMENT PRIDE OF CHICAGO Chicago, atres, Four artists, under B. O. Bidwell, are kept at top speed producing not only newspaper layouts, but the art for all forms of exploitation used by the Publix-Balaban and Katz and the Greater Talkie Houses. Bidwell is a veteran Chicago newspaper artist and expert layout man. He organized and began developing the department several years ago under W. K. Hollander, He holds himself responsible for every layout turned out by the de ; partment, and personally approves all work before it leaves the department. His assistants in the busy art lor, Hal Zemboni, Ed. Stevenson. ‘JOURNEY’S END’ Front and lobby of the Circle, Indianapolis, received atmospheric treatment for “Journey’s Bnd.” B. V. Sturdivant, Indianapolis publicity director, induced the American Legion Drum Corps to parade to the theatre on openin night. : 3 eee ae ae ee oe eee te ve art, etc., and also keep a complete! tabulation of every movable ob-} July 1—One of the most complete art departments of any theatre circuit in the world is that in the advertising offices of the Publix-Balaban and Katz the studio are Ernest Tausk, Del Law Entertainment in Lobby Urged At Chicago Lobby éntertainment is based on the theory that a patron is in a mood to be entertained the moment he enters a theater. He has paid a certain amount of his money for entertainment and the franchise is in operation the second he passes within the front doors of your institution. No set law or rule exists that stipulates how or where the entertainment is to come. By custom and for divers reasons, the greater part of it comes from the stage and screen. But any departure from this which means more entertainment for the patron is usually welcomed for what it is—a pleasant surprise. Let us give our patrons pleasant surprises. Life holds many surprises for the average mortal, but not too many of them are exactly pleasing, Let us make up for this deficit. A typical example of a novelty in lobby entertainment was seen a few weeks ago at the Tivoli theater. To anyone who has never seen or heard of the Theremin, it becomes a mystifying spectacle when played, and it was so as far as the patrons of the Tivoli theater were concerned. As they entered the lobby they heard music—a sweet cello-like sound. No instruments or radios were visible excepting for a small red box mounted on a stand about waist high, before which a man in evening clothes stood moving his hands and arms much as does a conductor leading an orchestra. As they gather around the box, the patrons learn that this is what actually is occurring. The man in evening clothes is “leading” the Theremin. When the number is finished questions from the patrons come one after the other as he explains the “working” of the music box. This operative was paid a salary of $50 for the week, /which included the Theremins which he brought along. Theremins are available, it is believed, in most big music storés. The box is an invention of a Russian from whom it gets its name. Its playing is based on a principle involving the creating of a constant, pleasant sounding “static whoop”? which is affected as to pitch and volume by the presence of the human body, or any part of it, within an invisible magnetic field extending three and a half feet around the box. Two metal bars are especially sensitized to anything that comes inside the “field” and transmit the interference created in the field to a joud speaker connected with the ox. It is novelties like this that send patrons away with a feeling that they have been well entertained and ought to come back for more. Mickey Finn Chirps (From Publix-B. & K. Convention Manual) MICKEY’S SOUND TIPS For Houses That Are “Hay-Wired” I. Correction for raspy sound.— 1. Go back-stage and look for: (a) Stage Hand getting manicure. (Db) Stage Hand filing will. 2. Prevail on stage hand to hang overalls on hook rather than in No. 2 horn. 3. Call Rose Rat Exterminators and have them serve notice on tenants in No. 4 horn that their lease is expired. 4. Speak to sound monitor in regard to the monotony of his snoring. II. Correction for blank and silent screen.—1. Have stage close in. 2. Have organist play. 3. Go outside and look at your vertical. By this sign you should know that everything is on the “up and up.” Return to your office satisfied. P. S.—Having tried these simple tests—call Schaeffer,