Variety (March 1909)

VARIETY 13 CUT RATE WAR MAY FOLLOW INDEPEN DENTS' AQ ORESSIONS Film Battle Expected to Resolve Itself Into Price Competition Between BIograph-Edlson Combine and Opposition. Up to last Saturday night, it is report- ed, the Biograph-Edison combination had received 4,800 signed applications from exhibitors, each application calling for a payment of $2 weekly for the use of the projecting machine. Percy G. Williams was one of tne latest to sign la*t week, executing his agreement through the Vitagraph Co. after the courts decided against him on the injunction applied tor to restrain the Vitagraph from discon- tinuing the supply of reels to his New York vaudeville houses. On the basis of the applications on band, the Biograph- Edison amalgamated concern will derive an income of $600,000 yearly to support the offices maintained by the new corporation, which require one 'manager" and a force of stenographers mostly, practically a nominal expense in comparison with the income. There are estimated to be 10,000 pic- ture exhibitors in North America. The combination expects to secure the signa- tures of a very large proportion of these, and with the proceeds through the $2 weekly payment, have a surplus sufficient to effectively oattle against the Inde- pendents in any business way, without re- course to other means. It is rumored that if the Independents show a certain degree or an unusual amount of strength, the Biograph-Edison combination will order a reduction in the price of films and service. The objective point of this move will be to financially embarrass the independent side if possible, the combination calculat- ing that with the summer season ap- proaching when the dull part of the pic- ture business sets in, and with the neces- sary capital required to float any large venture, along with the credit which must be given by the Independents to renters and exhibitors in order to establish oppo- sition firmly, there will have to be vast resources for money getting by the inde- pendent sid 2 to tide over. This fighting along businesa lines is believed to explain why the Biograph- Edison combination has taken no legal steps to test the validity of any projecting machine proclaimed by the Independents as free from infringement. Upon the con- solidation of the two big rivals in the pic- ture business, it was announced that the juncture brought together all patents covering a projecting machine and mov- ing picture camera, the Biograph con- tributing its "Latham Loop" which had been the block in the path of the attempts by the Edison Co. to legally restrain tne Biograph from exhibiting its output. Another possible cause why the Bio- graph-Edison combination is taking no steps to throw the picture situation into law is that by so doing it might be con- strued by the trade as an acknowledgment of a foundation upon which the oppo- sition (Independents) rests, and might also result in an endless litigation. A man on the B-E side this week said: "Here's the argument in a nut-snell. Our manufacturers have theirs, haven't they? They have made it, and are keeping it. Now they could go on forever if they wanted to and sell film at actual cost, without decreasing their wealth one dollar. The only difference would be they would not be making any money. "On the, other hand, when our manu- facturers cut prices to cost, what will become of the other side? They have no established fortunes made from the busi- ness. If we reduce to cost, and they meet us, won't they lose money besides, as we claim they can not manufacture or procure film at our factory price. "Of course, it is acknowledged that a 'cut rate war' may be ruinous to the picture industry or cause a condition re- quiring years to overcome, but if it comes to a show down, I think you will see that the cut price scale will take the lead in this fight in preference to all others, if we can not drive the Independents from the field in any other way." "TRUST" INVESTIGATION. Washington, March 11. The following resolution has been sub- mitted to the House of Representatives by Congressman McDermott: Retolved, That the Secretary of Commerce and Labor is requested to institute a thorough investigation im- mediately of the so-called "combina- tion" on the part of the manufactur- ers of moving-picture machines and films therefor in the United States to control prices, with a view to discover- ing how far an agreement between the various manufacturers of such prod- ucts operates to fix the price of mov- ing, picture machines and films pro- duced in the United States, the causes of the ability of the manufacturers to combine, and the cost to the consum- ers and users resulting from said so- culled "moving-picture combination," and with suggestions as to remedies; also with a view to criminally prose- cuting parties combined to control and manipulate the market and the prices of moving-picture machines and films. FACTORIES IN A MONTH. Chicago, March 11. It is stated that two factories for the manufacture of films will be established by the International Projecting & Produc- ing Co.'s interest in about four weeks. RELEASE ao REELS MARCH as. Chicago, March 11. The International Projecting & Produc- ing Co. announces it will release 20 reels of films on March 22. The announcement says these reels could have been released by the company three weeks ago, but have been withheld pending the covering of all points. The International Co. has organized a complete legal department. FOREIGN FILM MAKERS SIGN. (Special Cable to Vabdett.) Paris, March 10. Up to date thirty-two European manu- facturers have attached their signatures to the set of regulations adopted at the re- cent meeting of film manufacturers here. The signers are in business in France, Belgium, Switzerland and Holland. The Austrian makers have signified their in- tention of signing by March 15. Pathe Brothers are among the signers. That firm has suggested that the time for action on the part of the Italian, German and English firms be postponed until August. Paris, March 3. There is every indication that the recent conference of international film manufac- turers will not bear ripe fruit. The in- decision of some makers to sign the final "protocol" has been reported each week since the closing of the congress, and there is now a rumor that some who have al- ready signed are desirous of withdrawing altogether and acting on quite independent lines. It is reported moreover that six inde- pendent firms, representing a large part of the French, Italian and English trade, are on the point of forming a group, which will rival the Pathe-Gaumont-Bclipse com- bine. The chiefs of this new consortium have decided to take independent action in the event that the terms of the recent Paris convention are not loyally carried out. BRITT FIGHT PICTURES. John "Doc" Krone was due in New York yesterday (Friday); having come across the big river with the pictures of the Jimmy Britt-Johnny Summers fight held before the National Sporting Club, London, February 22 last. The decision was given to Summers. Americans in England claim it should have been a draw at least. Mr. Krone will go on to Chicago and will commence booking the fight pictures from his offices to be located there. Mr. Krone secured the pictures of the Gans-Nelson fight last September for the Chicago Film Exchange. It is said those pictures cleared over $100,000 in rentals. INDEPENDENTS HAVE "INAUGURA- TION." Chicago, March 11. Inauguration Day pictures taken in Washington by the joint combination rep- resenting the Chicago Film Exchange, Globe and Royal, have been placed on the market. There are about 2,000 feet of film. The photographers are said to have se- cured permission from the government to take the pictures, and duplicates will be sent to Washington for official use. A consignment of new Italian films has arrived in Chicago for the Chicago Film Exchange and their independent branches. GANE'S NEW LAMP. William J. Gane, of the Manhattan and other moving picture theatres, is perfect- ing a new lamp device. He claims as one of its principal advantages that the car- bons are more easily "trimmed" by an au- tomatic device and that the mechaniHm causes a saving of 40 per cent, in the carbons. The entire lamp is fire proof, and has been approved by the under- writers. LEWIS A MANUFACTURER. Chicago, March 11. Max Lewis, of the Chicago. Film Ex- change, in a statement this week, said the Motion Picture Service Co. he is or- ganizing is being perfected, and in addi- tion to renting films will manufacture. Lewis claims to have secured a non- infringing camera that can be operated with non-perforated films. The headquarters of the Service Co. will be in the present establishment of the Chicago Film Ex- change, and instead of renting from the various branches, all business will be transacted from the main office. Each office consolidating will be given a certain amount of stock, depending on the capital invested. The Globe Film Ex- change and the Royal Film Service have already joined, and it is expected others will co-operate within the next few weeks. MURDOCK COMING EAST. Chicago, March 11. John J. Murdock, general manager of the Western Vaudeville Association, and president of the International Projecting and Producing Co., the new independent combination, will leave for New York the early part of next week, and it is prom- ised there will be some lively doings in the moving picture industry when he ar- rives in the metropolis. EUGENE CLINE ALSO OUT. The second of the large Chicago renters to "receive notice" from the Biograph- Edison combination that his time for leaving is almost here, is Eugene Cline. The other was William H. Swanson, whose connection with the consolidated concern ceased about Wednesday. Mr. Cline will be an "Independent" in a few days. No reason has been officially given out for the decapitation of either of the Chi- cago men. It is rumored about that with Mr. Swanson, the dismissal occurred mainly through the objections raised by him when in New York City, just before the convention at the Imperial Hotel. At that time, Swanson called at the office of the president of the Edison Co., and protested against conditions on the print- ed contract. The action finally taken against him was probably not unsuspected by Swan- son, nor was it unlooked for from his own statements when in New York. He again came to the city after receiving his dismissal notice, but with no result came from the visit. Just what the reason for Cline's leaving is not being talked about. Informed pic- ture men say it may have been one or all of many. There is another Chicago renter reported on the BE "shall we keep 'em" pan. The New York picture people say this renter is also acting like a person who knows he is being watched. PITTSBURG EXHIBITORS SHOWN. Chicago, March 11. A meeting of exhibitors was held at Wabash Building Hall, Pittsburg, on Mon- day, nector Streyckmans, secretary of the International Projecting and Produc- ing Co., and several operators came on from Chicago to show the films which the company received from Europe, and which they will supply the independents.