Motography (Jan-Jun 1918)

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INCORPORATED WITH WHICH IS THE NICKELODEON Vol. XIX CHICAGO, FEBRUARY 23, 1918 No. 8 Universal Negotiates Big Deal PROJECT AIMS AT THE ELIMINATION OF MANY EXCHANGES JOE BRANDT, general sales manager of the Universal Film Manufacturing Company, sprung a sensation in Chicago last week with the announcement that the Universal is about ready to complete a deal involving $1,000,000 or more that will narrow competition in the state rights field by the elimination of many exchanges. "This proposition is one of the biggest in film history," said Mr. Brandt, "but I cannot disclose any more facts until the deal is completed." Has Bearing on Stars From other sources, however, it was learned that the project has a bearing on the fight of Universal's president, Carl Laemmle, on high-salaried stars. In this connection a recent interview with Mr. Laemmle is recalled in which he said that "paying outrageous salaries to stars is the evil that first pushed film rentals sky-ward — and the short-sighted men who are responsible for this great folly are now beginning to realize that their get-rich-quick plan is a deadly boomerang." "It has knocked many an exhibitor out of his profits," Mr. Laemmle went on. "And now on top of this expense, all other costs are leaping upward every day. So you will either have to cut out the overpaid star or get more money. Better still, do both." Await Details with Interest Now that this statement takes on new significance, the industry and particularly the exhibitors will await full details of Universal's new project with great interest. While many producers and exhibitors do not agree with Mr. Laemmle on the question of high-salaried stars, believing the stars to be entitled to all they can get when their pictures earn money proportionately, exhibitors if not the producers and distributors, will be pleased to see any deal negotiated which has for its purpose the reduction of rentals, unless merit has to suffer, in which case the attitude of the exhibitors is left to conjecture. Brandt Talks of Business Mr. Brandt, the author of the startling announcement, while reticent on the deal, has quite a good deal to say about the condition of the industry. He was on his way back to New York after a trip covering all the Universal exchanges in the middle west when he visited Chicago and said he felt that he was in close touch with the trade and qualified to speak. "I met quite a few exhibitors," said Mr. Brandt, "and all were optimistic, expecting business to return to normal with the advent of warmer weather. Many of the exhibitors claimed they had not suffered from Tuesday closing, declaring they had done more business since the fuel administrator's order was issued than they did before." Other Statements Optimistic Other statements also reflect optimism, although their authors say there is no denying the fact that the business is in a bad way at the present time. After two months on the Pacific Coast and in various distributing centers west of the Mississippi, Sidney R. Kent, sales manager of General Film Company, declared all that was needed now is good weather. He said the situation is largely psychological. "After attending conventions of General Film Company branch managers in New York, Chicago and San Francisco," said Mr. Kent, "I spent some time investigating conditions on the Pacific Coast. In the Northwest activity is increasing. In San Francisco conditions are good. In Los Angeles they are extremely good. In Denver they are satisfactory. In Kansas City they are unsettled, but with a strengthening tone. In St. Louis they are improving. Revulsion Against High Prices "One outstanding symptom among exhibitors is a revulsion against outrageously priced, over-rated films. There is no controverting the fact that many of them have been badly stung, and while they are kicking hard against the offending companies, they are adjusting themselves gradually to take real high-grade product from concerns that give honest value. It presages an important readjustment in program all over the country. "Altogether General Film has little complaint to make, and that only applies to spots. Conditions at large are not as bad as painted. The slump comes from a condition of mind mostly. Clever business men among exhibitors have continued making money as formerly, and this refers to those who have continued showing good stuff and selecting it with discrimination. All we need is decent weather to break the spirit of depression. War taxes and other complications can't stop the revival when it starts. "The winter has been so severe from the Sierras to the Atlantic seaboard that it has retarded attendance, making the timidity of exhibitors all the more acute. From now on the weather and the show business both must improve." Frank G. Hill, president and general manager of the