Exhibitors Herald (Jun-Dec 1917)

X H I B T. O R H R D Giant Consolidation to Eliminate Waste Is Urged Old Question of Merging Various Producing and Distribution Units Is Again Called Up by Statements— Goldfish and Mastbaum Favor Plan Is amalgamation the way out of the difficulties now confronting the motion picture industry? When Samuel Goldfish, president of the Goldwyn Pictures Corporation in a recent interview declared the producers of motion" pictures could save $10 000 000 annually by the reduction in the existing number of distributing organizations ' he started a controversy which, before it is finished, bids fair to draw in every producer and exhibitor of note in the country. Already Stanley V. Mastbaum, Philadelphia's foremost exhibitor and Samuel L. Rothapfel, managing director of the Rialto Theatre of New York, in statements, have come out in favor of amalgamation. Brandt Supports Goldfish Another to congratulate Mr. Goldfish on his stand was William Brandt, president of the Associated Motion Picture Exhibitors of Brooklyn. "In these days with theatres closing up on every hand because of diminished patronage," wrote Mr. Brandt to the Goldwyn executive, "it is certainly refreshing to know that there is at least one man who is thoroughly conversant with the fundamental reasons. You certainly have struck the rotten spot in the motion picture apple. What a pathetic sight to see the distributors and exhibitors disrupting the entire industry over the 15 cent reel tax when within their combined reach is the tremendous saving of $10,000,000 a year just for the asking." Berst Opposes Move First to oppose the amalgamation theory as the panacea for all ills is J. A. Berst, vice-president and general manager of the Pathe Exchanges, Inc. In the view of Mr. Berst a combination of producers and distributors "would strangle the exhibitors of the country instead of aiding them." "Something must be done," said Mr. Rothapfel, who believes that amalgamation is inevitable, "otherwise there will be a big crash. Exhibitors throughout the country are crying in despair. Wastage in production is tremendous and amalgamation alone will do away with this evil. "My .view is not of recent origin. For months I have been expecting the condition that now confronts the industry. Today, however, the situation is more serious than ever. The war hastened the inevitable." Mastbaum Wires Opinion In a telegram totaling more than eight hundred words, Mr. Mastbaum conveyed his convictions on the subject to every big producer of features. He put the wastage in the producing end of the film industry at $500,000 a week. His despatch follows: "Five hundred thousand dollars is wasted weekly by overproduction, overadvertising. too many exchanges, which necessarily means that the exhibitor must nay. How long can he continue to pay? What will happen when' he cannot continue to pay?_ Do you know that the producers are con•ducting their business in open warfare on each other? The exhibitor must pay for all the tremendous salaries paid by the manufacturers in every branch of the business. What is the solution? Who will solve it? "The manufacturers cannot help the exhibitor because the manufacturers have made no effort to help themselves. The trouble is at the manufacturers' end. not the exhibitors'. There are three factors that make for success vJri?ny "ne — observation, deduction, concentration. Why not apply them to this business? Overproduction of Features "Features released per month by various organizations, based on any eight weeks' period for two months, October and November, 1917: Artcraft two; Bluebird, four; Butterfly, four; Fox, six; Goldwyn, two; Metro, four; Mutual, eight; Paramount, eight; Pathe, four; Perfection, four; SeIf". four; Triangle, eight; Vitagraph, four; World, four; Miscellaneous, State Rights, etc., fourteen; total, eighty. "This makes a total of eighty pictures purchased during each four week period at a negative cost running all the way from twelve thousand dollars to one hundred and sixty thousand dollars per feature. It is true that there are veryfew made as cheap as twelve thousand dollars, and very few made as high in cost as one hundred and sixty thousand dollars. A fair average negative cost, however, would be about forty thousand dollars; so that taking this four week period and dividing it into eighty, we find that we are manufacturing in America at the present time twenty feature negatives at an average cost of forty thousand dollars each amounting to eight hundred thousand dollars per week in negative cost. Adds Positive Cost "In addition to this negative cost, there is a positive cost of prints to be added. Anywhere from twenty to forty-five prints are used on each production, a fair average would be thirty positive prints. Positive prints on a five reel subject cost at the present time two hundred and twenty-five dollars each; therefore the positive prints that arc being used would cost six thousand seven hundred and fifty dollars and twenty times six thousand seven hundred and fifty dollars would amount to one hundred and thirty-five thousand dollars for positive prints of features only. "The overhead for the handling of these features is immense. In each territory there are at least twelve officers, meaning salaries for twelve managers, twenty-four solicitors, twelve office rents, and twelve separate and distinct inspecting forces, shippers, nightmen, etc.; and all this is in at least twenty-five points in the United States and Canada. "The American market cannot possibly absorb these expenses. The burden is placed on the American public and the exhibitors. Not over nine features could be legitimately absorbed, and if the negative cost were reduced and carried by nine features, there would be remarkable saving for the exhibitor and the manufacturer. If distribution, now handled by no less than twelve distributors, were concentrated in not more than two, or better yet in one center, an immense overhead could be saved for the exchanges, and thus for the exhibitors. It would be a practical saving in our business by co-operation and concentrated efforts of not less than five hundred thousand dollars each week, as follows: Half Million Saving "Saving of ten negative costs at forty thousand (Continued on page 16, col. 3) Exhibitors Aid to Four-Minute Men Commended by President Wilson William McCormick Blair, Director of Patriotic Speakers Attributes Success of His Organization to Motion Picture Men The President of the United States has expressed his appreciation for the work the owners of motion picture houses have done in throwing open their theatres to the Four-Minute men and the showing of slides bearing patriotic propaganda, in a letter sent to William McCormick Blair, director of the Four-Minute men. President Wilson in his epistle states that it is a matter worthy of sincere appreciation that a body of thoughtful citizens, with the hearty cooperation of the managers of motion picture theatres, are engaged in the presentation and discussion of the purposes and measures of these critical days. His letter in full addressed to "The fifteen thousand FourMinute Men of the United States" follows: "May I not express my very real interest in the vigorous and intelligent work your organization is doing in connection with the Committee on Public Information? It is surely a matter worthy of sincere appreciation that a body of thoughtful citizens, with the hearty co-operation of the managers of moving picture theatres, are engaged in the presentation and discussion of the purposes and measures of these critical days. "Men and nations are at their worst or at their best in any great struggle. The spoken word may light the fires of passion and unreason or it may inspire to highest action and noblest sacrifice a nation of freemen. Upon you FourMinute Men, who are charged with a special duty and enjoy a special privilege in the command of your audiences, will rest in considerable degree, the task of arousing and informing the great body of our people so that when the record of these days is complete we shall read page for page with the deeds of army and navy the story of the unity, the spirit of sacrifice, the unceasing labors, the high courage of the men and women at home who held unbroken the inner lines. My best wishes and continuing interest are with you in your work as part of the reserve officer corps in a nation thrice armed because through j-our efforts it knows better the justice of its cause and the value of what it defends. "Cordially and sincerely yours, "Woodrow Wilson." "We fully appreciate that the rapid growth of our organization and the influence which it wields is almost entirely due to the patriotic assistance of the motion picture theatres throughout the United States," was Mr. Blair's tribute to the exhibitors in making the president's letter public. 13