Variety (Sep 1935)

Wednesday, September 4, 1935 PICT E $ VARIETY N.Y. THEATRES IN MIDDLE Chi Exchange Sales Record To Date Shows Par Out Front With Fox-Metro Tied for 2nd Chicago, Sept. 3. "VVltli Metro-Goldwyn-Mayer back In the running for this territory, fol- lowing the demise of the exhibitor boycott against M-G product of per- centage demands, the battle royal among dlstrlbs for picture deals Is hotter than In years. Metro was far behind other leading exchanges In sales last year, but this firm Is now figured running In a tie for second place thus far In the selling season. Season on sales Is now wide open and Indications again point to Par- amount as the leading exchange on sales in this distribution center. Figuring on the basis of 475 possible deals In this territory, Paramount has thus far this campaign closed approximately 60% of total possi- bilities and will probably hit far above that before the close of the Belling battle. These 475 possibil- ities are figured out of some 800 the- atres In this territory, taking Into consideration that two competing houses on the same level cannot be sold by the same exchange. Fox Factors Information along film row places Metro on the same sales rung as Fox-20th Century with practically Uttle to choose between them In the matter of sales. Both have closed the Important circuits. Estimates place Metro sales thus far at 50% and 20th Century-Fox sales at about the same mark. Fox will undoubt- edly feel the loss of Will P.ogcrs. The four Rogers pictures, along •with the Shirley Temple product, served as a heavy wedge for Fox. Rogers' loss, must be taken up by the weight of the new 20th Century label and product In the Fox ex- change. Warners and Universal are esti- mated to have sold about 40% of their possible deals already. Uni- versal is actually In better shape in Chicago than WB, the Laemmle or- ganization having already completed deals with Balaban & Katz, Esse- ness and Great State. Retarding ViTB is its current failure to set sales wltti Essaness, Harry Balaban and the Alger circuit. "With sales to these circuits the Warner rating would figure to substantially boost. Behind Universal and WB come Radio and Columbia with about 25% of total possibilities. Radio Is yet to get together with Balaban & Katz, Essaness and Great States, having been concentrating thus far on the smaller towns and Indies.. United Artists has yet to settle deals with any of the local cir- cuits or Important Independent ex- hibitors. This is attributed to Its percentage policy and of selling as the pictures come along rather than In advanc ARTHUR-MEX SQUABBLE MAY COST HIM $12,000 Los Angeles, Sept. 3. MUton B. Arthur, operating head of Cabart Theatres here, stands to drop a $12,000 investment held indi- vidually with Gulllo Ascona in No- gales, Sonora, Mexico, as a result of a controversy that has arisen be- tween the two partners. Ascona charges Arthur with violating terms of their agreement, and In conse- quence is withholding film service for which he holds franchise rights. Failure to get proper film has house facing a closing, with Mexican government prepared to then step in and operate house Itself, in order that employment may be continued for Mexicans now on house payroll. F. D.'S HOLDING CO. Pathe's financial olomonts have formed a new holding firm for First Division, as anticipated. The new company will be l<nown as the First International Pictures, Inc. RKO-WB PRODUCT DEAL Set-for 11 Key* Except for Century, 8-C Houses Upshot of the Warner-RKO fra- cas over WB product terms for the new season has resulted In RKO taking over the Strand, a Par house, In Yonkers. and RKO'a losing War- ner ■ films for around four theatres in the New York City area, namely to three A. H. Schwartz-Century Circuit houses, in Long Island and Brooklyn; and one Springer & Co- calis theatre, on upper Broadway. Otherwise RKO takes the full War- ner program. Provlously, Loew's purchased half of the Warner Bros, output, but this year, except for the spots noted above, RKO takes all of the Warner films for the ensuing season. Loew's which formerly bought only half of Paramount; splitting this product with RKO, has taken the whole Par program, for the new season. The Strand, Yonkers, was a the- atre to which Warners had sold away from RKO, in the recent huff between the companies. Among the RKO towns getting Warner filnns are Columbus, New Orleans, Kansas City, Trenton, Min- neapolis, New Brunswick, St. Paul, Omaha; Des Moines, Sioux City, Davenport, Cedar Rapids. B'kip Albee, Met's Flexible Policies; 55c Ea. New policies for Loew's Met and RKO Albee, Brooklyn, will be fiexl- ble under the present plan of both circuits. Two weeks ago the Met went straight pictures, dropping vaudeville, while the Albee went into double features first run Satur- day (31). An understanding exists between the two theatres. Albee's first dual bill is 'Dante's Inferno' and 'Orchids to You,' two Fox pictures, at a 55c top, no change in price. When a big picture comes along RKO will not couple another with it. The weeks the house is to play two pictures will depend on what product is available. Met, on the other hand, will occasionally stick In a stage show, this depend- ing on what is available and how picture product shapes up. Met Is booking the bill headed by Lou Holtz, Belle Baker and the Block- Sully team which ladt week sent the State to a new attendance high, grossing $35,000, for week of Sept. 13. Although the Albee one week may play a single picture and the next two features, the Met one week Just a picture, the next a stage show as well, the price for each house will remain the same, 55c. Met gets first run of Its own (Metro) pictures and United Artists, while the Albee has Radio, Fox, Universal and some of the Columbia pictures. Sale, Benchley Set For Shorts at Metro Hrillywood, Sept. 3. Next Chic Sale two-reeler for Metro will be 'Important News,' Ed- win Marin directing. Ca.st will in- clude Charles Trowbridge, GranVille Bates and Billie Dooley. Robert Bcnchley's next one-reel Instructive comedy for the same company, 'How to Train a Dog,' will be directed by Robert Ripley. P.olh will t)e produced by Harry Pucquet under the production wing of Harry Rapf, 6[Iiil[[N ALLIED See Fight to Finish as Rival Operators' Groups Seem Further from a Truce Than Ever—Cross-Picket- ing's B.O. Effect TO FORCE ACTION It's a fight to a finish for con- trol of Greater New York picture theatre booths between New York Operators, Local 306 of the L A. T. S. E., and Allied Operators, the N. Y. State-chartered union which 306 has persistently branded as a com- pany union, organized by the In- dependent Theatre Owners Assn., of which Harry Brandt is pres- ident. Each side, according to union sources, is determined to wipe out the other with every In- dication pointing to a bitter war. As result of recent developments growing out of a threatened strike by 300, It is now apparent that Al- lied and 306 will never smoke the pipe of peace. Managers and operators yester- day afternoon (Tuesday) went into what promised to be a long huddle- on negotiations for a new operator scale, with possibility of reaching accord In face of no snags up to yesterday. As warfare between the two op- erator unions breaks out, 306 Is continuing negotiations with the Greater N. Y. theatres for a new two-year contract at a graduated scale and itself looks for an agree- ment beCore the end of the week. Meantime, 306 is picketing Harry Brandt theatres, while Allied op- erators are retaliating by picket- ing 306-manned houses. . The two unions were never friendly, but up to a few weeks ago, after cross-picketing had ceased, it was believed that there might be a merger between them. This hope was even held in 306, which a couple of years back settled oppo- sitional differences with the Empire State Operators, another N. Y.- chartered union which now confines its activities largely to Brooklyn. Frank Tichenor, publisher, ap- pointed mediator by Mayor La Guardla between 306 and Allied, following complaints by theatres, assertedly now sees little chance for a truce. During the past three weeks while picketing has been going on, (Continued on page 68) WM. FOX LOSES 3D TIME IN SUITS VS. 20TH-FOX Twentieth Century-Fox Is In the clear as William Fox failed for the third successive try to halt the al- ready consummated merger on Wed- nesday (28). On that date Justice Edward Lazansky In Brooklyn (N. Y.) supreme court refused to grant Fox a stay of the merger, which the former magnate was seeking through related plaintiffs, his wife, Eva Fox, and the All Continent Corp. one ol Bill Fox's personal holding com- panies. The stay was sought by Fox pend- ing an appeal from a previous de- cision by Justice Alonzo McLaughlin, in Brooklyn, denying an Injunction against the merger. •Alaska' Crew Digs In Hollywood, Sept. 3. Norman Dawn, who will produce and direct 'Alaska Bound' for Uni- versal, has moved Into the Interior out of Juneau with Del <:ambre, who plays the lead, to remain in the wilderness with camera crew until snow files. Tale deals with adventures of wrecked aviator fighting his way back to civilization. ik Stop-Mark for U. S/10^ Tax Seen As Reason for Keeping Down Genl Average of Pic House Admissions FULL CUFF Dozen Lensers on Howard Hurd's Sued for $1,791 Los Angeles, Sept. 3. Demanding payment on promis- sory notes, Howard Hurd, former business rep of International Photo- graphers of the Motion Picture In- dustries, local 659, International Al- liance Theatrical Stage Employes, has filed suits In municipal court hero against 12 cameramen. Suits ask total of $1,791, including attorney fees. All charge nonpay- ment of notes which were turned over to Hurd by union on Aug. 16, 1033, Earl Crowley. $135; Paul Eagler, $2Y0; Charles Bohny, $95; Lauron A. Draper, $85; George Bourne, $120; Milton Brldenbecker, $61; Alyln Wyckoff, $150; William W. Nobles, $18V.50; Judson ^ Curtlss, $222.50; Robert L. Surtees, $175; George Dlskant, $80: and Elwood 'Bredell, $210. Fox-WC Trustees Ready for Clean BiD by LA. Court Los Angeles, Sept. 3. Following filing last week with Referee In Bankruptcy S. W. Mc- Nabb of the second and final report of the Fox-West Coast theatres trustees, discharge of the three ad- ministrators of the bankrupt estate Is expected on Sept. 18, date set for a hearing on the report. Report was 'filed by William H. Moore, Jr., on behalf of himself and his former co-trustees, Charles P. Skouras and Charles C. Irwin, who resigned last March. It covers the history of the bankruptcy proceed- ings and circuit operations from July 29, 1933, date of first report, through Feb. 2, 1935, when all as- sets were taken over by National Theatres Corp. after bankruptcy sale. Trustees' account shows receipts and disbursements in operation of defunct circuit of $20,000,000, ex- clusive of Hubsldarles not wholly owned. It shows expenditures of more than $1,100,000 on long term commitments, and transfers of funds In bank at time of sale of $321,362. Claims filed against circuit ag- gregated $43,294,552, that were re- duced through compromise and court action to $15,090,852. Of thiH amount all except wholly secured claims of $109,000 were paid In full through cash disbursements or by crtdlt at 100% on amount bid for properties at the Kale. Properties wore sold to National Theatres Corp. on Feb. 2 for $15,- '443,388, plus cancellation of trustee certificates for $208,000, and as- sumption of all currpnt liabilities. Administration of bankruj)tcy, In- cludln:; iiU foes, commls.slonf; and charges, cost $038,757, or about 4.2% of total purch.Tse price. It was Inrllcaforl in report that only 19 theatres Ifiasns were lost through disafHrmancc, and that these houses were respon.slble for more than S2,'10,000 loss to circuit In 1932. At time of bmkruptcy circuit w.tk losing arounfl .$"5,000 wepkly, T.'ndrr opnr?jtlon of Charlos P. .SkourM.o, substantial Incr^asps wrrf rccordfd In both gross and operating rev- enue, report statos. Action of Congress In keeping the 10% tax on amusement tickets sell- ing at more than 40c is taken to mean in Industry circles that there is faint hope o£ raising the general level of admissions until July 1, 1936, the date set for expiration of the present tax fee. Exhibitor leaders and spokesman for trade organizations feel that the placing of this line of demarcation of 40c tends to keep-admissions around or below that figure, and in the last two years actually has lowered the whole price iatructure. Only hope of raising the whole price structure would have to come on a widespread wave of prosper- ity which would make the public oblivious to the admittance itee. Figures obtained by Haysian of- ficials and exhibitor organization chieftains show that establishing 40c as the point Mrhere admissions are to be taxed has kept vast ma- jority of picture house admittance coupons below that price. Not only has it done this but actually forced admissions down 6c to 10c all along the line. At the present time, exhibitors figure that when 46c Is charged and the total fee hiked to 60c, the pub- lic is Inclined to fight shy of this 10c tilt. Consequently, many ex- hlbs have stuck to 40c or less, fig- uring that the extra nickel picked up via the 46c charge did not re- compense for the loss in gross. biz at the ho o ce caused'by tacklns on the dime. Manner in which houses, that for- merly got 35c, easily dropped down to two bits and those getting 2Bc slumped to 20c or lower were among the amazing results" re- vealed by recent surveys. Exhibit* ors ai-e Inclined to blame this con- dition on the invoking of the Gov- ernment tax. Many exhibitors view the cam-', palgns of cheaper house operators for a bigger tax on higher-bracket admittance theatres as a peculiar one. Reason is that they believe such a tax would actually work to the detriment of those exhlbitora who charge less than a quarter. Theatres now charging over 40o and as high as 7Bc, a heavier levy on admissions might automatically force them to ,drop their scale of prices. This would bring the larger deluxers In many Instances Into ac- tual competlsh with numerous neighborhoo'd operatons, with dim-. Inlshlng biz for the latter. MPLS. GRADUAUY UPPING ITS SCALE Minneapolis, Sept. 3. First move of local showhousen to up admission scales in the past four years finds the public appar- ently receptive. For the first time In three years a vaudfilm show, the Olsen-Johnson unit at the Singer Orpheum, has a 55c top in place of the former 40c, That scale not only will prevail for all future shows at the Singer and Publlx houses, but also for outstanding pictures. A 55c top Is planned for 'Top Hat' at the Orpheum and 'China Seas' at the Publlx State sans stage shows. All Publlx theatres and the Sing- er house now change upward at 5 p.m. instead of 0 or 0:30 p.m., an- other way of tilting gradually. Harry HIrsch at his Gayety, stock tjurlesque, showed thu way to the others. He w.as the first to boost, jumping his top from 83c to $1 at the start of the present season. In- dependent exhibs have been Insist- ing that the big circuits and large downtown houses advance their I)rlf;e.s, Northwest Allied States even ;,'olng so far us to liistitute a boy- colt against Uadio pictures until Dif i)romlse of hl;<hcr admission r)rl<os at the Twin City Orpheuma wa.s fiD tlicomliig.