Moving Picture World (March 1908)

182 THE MOVING PICTURE WORLD Position of the Klein* Optical Co. Mr. George Kleine, of the Kleine. Optical Company, publishes this week in the Show World a long statement on the present crisis in the film market The major portion of the interview is a repetition of the claims of the rival factors, Edison and Biograph, which were published in detail in our recent issues and with which our readers are familiar. The concluding part of the interview, however, in which Mr. Kleine sets forth the position of his own firm and the outlook for the exhibitor, is of vital interest, and we are indebted to the Show World for the following: STATEMENT BY GEORGE KLEINE. Contract with Biograph Company. "In order to guarantee protection to buyers and users of the films marketed by the Kleine Optical Company, we have made a contract with the Biograph Company covering all of these fiims, and in accordance with its- terms any suit that may be brought against purchasers or exhibitors for alleged infringement of the Edison film patent because of the use of our films will be de- fended by the Biograph Company, free of charge; and, further- more, immunity is given against prosecution for infringement of the loop patent of the Biograph Company, to those using films licensed by the Biograph Company. "As to the general policy of my company, it will place upon the market all desirable novelties made by the nine European manufacturers whose product we control in this country, and also films made by the Biograph Company. In addition, we shall handle films imported by Italian Cines, Williamson & Co., and Messrs. Williams, Brown & Earle. "It shall be our purpose to exploit these films throughout the United States, making them easily available to all exhibitors, either through our various rental bureaus, or renting companies with which I am personally affiliated, as well as through any inde- pendent rental exchange that wishes to purchase these films. Establishing New Connections. "New connections are being established as rapidly as possible. Missouri points will be supplied with independent films from a new office in St. Louis established by the Kleine Optical Com- pany of Missouri. "A new rental bureau will be in operation at Birmingham, Ala.. Monday, March 2. Our other rental bureaus at Seattle, Denver, pes Moines, Indianapolis. Montreal and New York are fully equipped to give the most efficient service. "We have been in constant communication by cable, since the convention at Buffalo, with the European manufacturers whom we represent, and they have entered into the spirit of the situa- tion in a most enthusiastic manner, promising a series of film novelties that will excel from every standpoint. "All films that we control, and those of affiliated concerns, acting under the Biograph license, will be sold outright, without restrictions as to their use. "The question that has become of vital importance to rental exchanges is the purchase of films. After mature consideration the Kleine Optical Company will hereafter abolish the system of standing orders for new subjects. I have long recognized that to insist upon the purchase of all new subjects, long before they are seen, or even manufactured, is an injustice to the rental exchanges, and an imposition upon the exhibitors who are com- pelled to use undesirable films, forming a material percentage of the total output, frequently against their will. In the early days of the exhibiting business as it now exists this could not be considered unreasonable, as the supply of subjects was lim- ited, and every film was usable that was not obscene, extremely vulgar, or highly sensational. Censorship Policy Folio-wed. "We have always followed the policy of censorship at the root, and have never imported _ films that could be considered objectionable from any view-point This is due to our system of inspecting samples of every subject before our stock was shipped from Europe. "The standing order system is oppressive also because it com- pels the rental exchange to accept an indefinite quantity of films, subject to great variations from week to week. No exchange, under this rule, can state in advance the total sum of its fum bills—a condition which would not be tolerated in any other line of trade. "In harmony with this position, we have decided upon a uni- form price for films to all rental exchanges in good standing, irrespective of size or'quantity purchased. A large exchange will have no advantage,. because of heavier purchases, over the small concern. - "In view of the fact that we charge a selling price for films, we think it but just that the buyer own the goods that he has paid for, without restriction, and do not attach any conditions calling for the return of our films at the expiration of a stated period. . .. Purchasers May Rent Films. "Purchasers of our films are at liberty-to rent them to others, without restrictions as to rental prices, or manner of use. "A movement has originated in Chicago among owners of nickelodeons which bids fair to spread to all large cities of the United •• States. These exhibitors have formed an association called the Moving Picture Theater Protective Association of Chicago, with varied objects, among them heing resistance to oppressive city ordinances, and in general to further the inter- ests of the members. "A forward step has been taken by this association in the matter of film rentals. A new "renting exchange has been formed, called the Independent Film Exchange, incorporated under the laws of Illinois, of which 1 have the honor to be president. "Reciprocal arrangements have been made by which this ex- change will rent'films in Chicago only to members of the Mov- ing Picture Theater Protective Association, which will confine its rentals to the Independent Film Exchange. This system will strengthen both the exchange and the association. I am pre- pared to assist in the furthering of this movement throughout the United States in any city capable of supporting such an exchange. "The activities of these exchanges are not to be confined to their home cities, the exclusive feature being applied only in the city of origin. I will be pleased to hear from owners of picture theaters in other cities, and will give information as to details' of organization. The efforts of these local associations need not be confined to the rental, of films, but can include united action upon any question of interest. "Attention need hardly be drawn to the strength of such an association against all opposing interests that may be inimical. Future of Industry Promising. "I would say to those pessimists who are doubtful as to the future of the moving picture industry, that, in spite of the pres- ent unsettled—not to say critical—condition of affairs, the future appears to me to be more promising than ever. Case after case can be cited demonstrating the increasing interest in motography upon the part of the general public. If there were any evidence of a lessening of this public interest, I would consider the situa- tion of serious concern.^ , "It should be gratifying, however, to everyone interested that public interest is growing, and the general average tone of mov- ing picture shows is improving. So far as my observation ex- tends, it is demonstrated that for every small store show that closes, a large moving picture theater is opened. "I need only mention the use of Keith's theaters, in New York City, exclusively for moving picture shows, replacing vaude- ville; also, the Garrick at St. Louis, the Lyric at Cleveland, the Orpheum at Chicago and the Hookins at Louisville—all of them pretentious houses, many involving the payment of enormous rentals. Will Improve Exhibitions. 'The introduction of moving pictures Into theaters of this character must undoubtedly tend to improve the character of the exhibition, as well as enlist the patronage of a class of people who have heretofore known nothing of that branch of enter- tainment having been inclined to consider this class of amuse- ment beneath them. "In Paris, France, the Hippodrome is to be devoted exclu- sively to moving pictures. This seats some 7,000 people, and will have an orchestra of 6b pieces. The films for this resort will be supplied in the main by_ the European manufacturers whose product will be marketed in this country under the Bio- graph license, and the same subjects will be available for the most humble nickelodeon in the smallest country town. "It appears to be inevitable, much as I regret it that there will be two factions in the motion picture field for some time to come; and that circumstances force me and the Kleine Optical Com- pany, with which I have been identified since its inception, uk° a position of business opposition to many personal friends en- gaged in this business, for whom I have the highest regard. 1 can only say in conclusion that if competition becomes bitter, the conflict will be conducted, as far as we are concerned. alon3 clean and wholesome lines, without personalities, and wn!le .°": campaign may be aggressive it is unavoidable, and has been forced upon us by conditions." GEORGB KLEINE-