Variety (Jun 1930)

Wednesday, June 4, 1930 PICTURES* VARIETY 33 More Overhead from Operation by Circuits of Bought hidie Houses -Overhead In the operation of ecores of former indie houses taken over by the- larger circuits within the past year or two has largely increased above the nut existing be- tore the houses. wer e^| j|Ciq^uired, ac- cording to Inside sources. This has resulted, mainly, it is declared by those in the know, through heavy saddling of operation costs on all theatres, irrespective of size. The circuit'? overhead repre- sents "nut" money that the houses did not have when operating inde- pendently, bringing about a peculiar position on percentage bookings. In going over audits of various large circuits this is being discov- ered, along with the tremendous jumps in overhead for even com- paratively small houses. From all indications the-situation Is giving some of the mindful dis- tributors considerable thought, with some feeling reported in distrib factions of producer-owned circuits over the grosses that have to be done to show profits for the pic- tures. : n one of the largest of the pro- ducer-circuit comp$i.nies, it is said considerable jealousy is beginning to manifest itself because of the tremendous theatre operating over- heiid, and how that is cutting in the net on picture sales and revenue. Publix in Muncie Muncie, Ind., June 3. Through a lease on the Wysor Grand, indie,/Publix assumes a good stronghold in this town of 44,000- population. Par-Publlx already operate ^the Rlvoli, Strand and the Star. NO DETROIT INDIE COMBINE, SAYS RICHEY Detroit, June 3. Rumors that there was under consideration an organization of lo- cal independents to combat the Publlx-Kunsky given little credence here today. Rumored plans for this organi- zation of independents outlined a complete combine for the independ- ent houses throughout the city, this organization to book pictures for the group, supplies, hire exploita- tion men, and, in a general way, avail the small houses of all advan- tages of big circuit management. General purposes were to combat Publix-ICunsky as the only circuit in the city. H. M. Richey, speaking for the Michigan Theatre Owners' Assn., denied this was ever even under consideration. He stated MTOA made it a rule to keep any booking and other combines free entirely from the ass'n. That the Co-operative Booking Co. is making an intensive drive for new accounts was admitted. This booking office recently in- stalled a cut price booking service for the benefit of the small exhibitor who couldn't afford the regular fee. A special charge under this service was to be $5 a month. The co- operative at this time is booking for 118 accounts, about twice as many as were being serviced at time co-operative was under con- trol by Kunsky. The only recent banding of the Independents here was to combat the. recent attempt by Publlx- Kunsky to install a pre-release 2d run for the Grand Riviera theatre, deluxe second run house. Fox Lets Oat LaRose; Goes to Publix-Koitsky Detroit, June 2. Vr'm. Raynor has been appointed managing director of the Fox deluxe house here, replacing Joe LaRose. LaRose has joined the Publix Kun- sky outfit in A. managerial capacity. Jack Shouer is also out with "VVm. Israel, formerly cashier, taking his place. Unusual feature of the association of LaRose with Publix is that he is the first man to be taken into its orgiinization as a full-fledged nanager. The usual Publix proce- dure is to promote men from the ranks. LaRose has been placed in cliarge of the Century theatre. Publix Transfers Walsh; O'Donnell Steps Up Latest among changes in the Paramount Publix operating sys- tem is the reported transfer of George "Walsh, divisional director of the New Orleans territory, to the same post over the Comerford string in Pennsylvania coming un- der the P-P banner July 1. Change, it is understood, will become efTec- tive on that date. Pennsylvania is a newly created P-P division. Bob O'DonncU, division manager in New Orleans, will be promoted to the director's post through the Walsh transfer. . AccordhiR- to information, Harry David, divi.sion nianager at Salt Lake City, i.>i either boing trans- ferred to another city or prontoted. No inkling of what is in mind for him can he obtained. MINN. INDIES WANT TO CLOSE OVER SUMMER J. L. WARNER ON CO-OPERATION FOR INDIES Elias in L. A. Harold Klias;, exploitation for Metro in X. ^^ ., is going to the Los Angeles olficc. More Theatres Named In Westchester Towns; By Warners and R-K-0 Mt, Vernon, N. T., Juno 3. Il-K-O reported seeking site for now house here, Present Proctor house, 2.200, would be retained for picture policy in event of erecting R-K-O house for vaudefilni. Report that "Warriors have pur- chased ."^lle at Prospect and Second avenues, l,"iO x 175 feet, has spurred action by R-K-O. Harry Warner, local resident, is reported anxious to establish here, following purchase of plot at White i'lains for a AVarner house. Loews, with 2,500; r.iinny, with 900. operating at iJresent with Proc- tors. Kmhassy, 1,500, dark, and Westcliester, 1,100, dark. Population, latest census. 63,000, with vicinity towns providing an- iithiM- 18.500. Minneapolis, June 2. With business the worst in many years and with no apparent pros- pect of any improvement, the sug- gestion again is being revived hereabouts to close all local thea- tres during July and August. > Such action, it is argued, would have the effect of making the apathetic Minneapolis public show hungry again and undoubtedly stimulate business tremendously in the fall. Present indications are nothing will come of the suggestion. It has not been even given any serious consideration by the large circuits, Publix and R-K-O., that control most of the large local houses. A number of the independent up- town and suburban theatres arc planning, howcver.~1:a-shut down during the height of the hot weather Pantages and the R-K-O 7th Street theatres also are to be closed, ac- cording to present plans. BEST WISHES TO RODNEY and LLOYD PANTAGES HELEN FETCH "GIRL CHAMPION TUMBLER'* in "Rose Garden" Idea, Which Open« NEW PANTAGES, HOLLYWOOD Miiny Tliankg (o FANCHON * M.ARCO Atlantic City, June 3. A three and a half million dollar advertising campaign during the forthcoming season; development of the "ghost speaker" in foreign countries — synchronistic arrange- ment whereby native actors speak the lines of characters in American pictures—and the elimination of the star as the result of the advent of the talkers; were the highlights of the Warner Bros.-Flrst National annual convention last week. In announcing the huge adver- tising budget, A. P. Waxman said that $2,000,000 would go for news- paper advertising, $500,000 for mag- azines, $250,000 for exploitation, $250,000 for trade magazines, and $500,000 for billboard advertising. Waxman explained that this does not cover the purely local adver- tising field which would be con- tinued by the theatre manager. Sam E, Morris told the Warner delegates that the company expect- ed to buy 1,000 theatres during the next year and added that $28,000,000 had been spent for the acquisition of houses during the past year. Jack L. Warner asked the small exhibitor be given all the aid and co-operation possible. He outlined a plan in which the star system would be eliminated, explaining that the producing organizations hence- forth would be large stock com- panies. Lewis Warner, son of. Harry M. Warner, has begn transferred to the theatre department. Young Warner until now has been con- nected with the production and mu- sical departments. GRAND RAPIDS JURY ACQUITS UNION HEADS Grand Rapids, June 3. Writing finis to six days of gruelling trial a superior court Jury yesterday took one ballot and cleared Adam Prus, president; Wal- lace G. Bouk, secretary-treasurer, and Donald Clark, business man- ager of the local projectionists union from any and all complicity in the bombings of community the- atres here In February. In reaching its decision within 15 minutes from the time It left the jury box, the jury refuted the storj* of Row Lawton, confessed bomber, former union man, and the state's star witness, that the defendants had given the money with which to play Lee Blue, convicted bomber, now serving 25 years at Marquette prison, - for placing the dynamite that damaged the Royal, Family and Liberty theatre, community houses, employing non-union operators. My sincere appreciation to Rodney and Lloyd Pantages, J. J, Franklin and Fanchon and Marco for selecting me to open the new Hollywood Pantages Theatre, SLIM MARTIN CONDUCTOR OF Hollywood Pantages Greater Orchestra ALSO Master of Ceremony Many Thanks to Fanchon and Marco for Selecting Us to Play in "Rose Garden" Idea, Which Opens NEW PANTAGES, HOLLYWOOD THIS WEEK, JUNE 4 LEE CHARLINE HALL and ESSLEY "DANCERS COMIQUE" Our Sincere Thanks to JACK LOEB, EARL SIMMONS