Photoplay Magazine, January 1921 (anuary 1921)

Photoplay Magazine — Advertising Section "5 'All Is Not Gold, etc. (Continued) Like Crusader's, the stock sales circulars of Democracy Photoplay Company quote lib- erally the big profits made by certain films, and like Crusader's, Mr. Lybarger's circu- lars are filled with endorsements from prom- inent men. In fact, Mr. Lybarger seems to have the heaviest batting record in securing testimonials from big men. But these men are not listed in the circulars as purchasers of stock. Governor James M. Cox of Ohio, late Democratic presidential candidate, wrote, "I am impressed with your photoplay, 'Democ- racy,' or 'The Fight for Right.' You have noted the high spots. It should prove both interesting and educational. Let me wish you success." Of course, at the time he wrote, Gover- nor Cox had not seen 'Democracy' because it had not been transferred from Mr. Ly- barger's brain onto the films. "No experimenting with your money," announced Mr. Lybarger, hinting at "Birth of a Nation" profits, .$3,000 returns for each $100 invested, when not the most experienced motion picture man knows whether his next picture is going to be a success or a failure. Every picture produced is an experiment. Look at the stock quotations. Goldwyn's which last winter went up to more than $30 a share, is now below $10; Triangle about 33 cents; World Film, 25 cents. And Gold- wyn's is producing many film pictures, ex- cellent pictures. All of which leads one to the firm conviction that the only decent way, the only honorable way in which to finance a motion picture company is to lay all the cards face up on the table, and say to your prospective financial supporters: "Here are the cards. Take a good look at them. This is a game of chance. We may win or we may lose. Do you want to come in?" There is no reason for believing that the business affairs of the Democracy Photoplay Company have not been properly handled. Mr. Lybarger is a man of good repute, honest and upright. The letters in his cir- culars from men distinguished in public life testify to his ability as a student of economic affairs, but none of them say anything about his achievements in the motion picture field, probably because he never produced any pictures till "Democracy." This initial ven- ture may yet prove a success. If it does, the way of other motion picture producers, not as able as Mr. Lybarger, and not so honest, will be made smoother. Moreover, if "Democracy" turns out a money maker, it is Mr. Lybarger's intention to continue producing. After all the preferred stock of the Democracy Photoplay Corporation has been retired at par with interest, 80 per cent of the net earnings of the company is to be divided among the stockholders and Mr. Lybarger and his associates, and 20 per cent is to form the capital of the Feature Pictures Corporation, a successor of the present com- pany. The bankruptcy court of Pittsburgh, Pa., is now winding up the affairs of the Ad- vanced Photoplay Corporation, another mo- tion picture concern, financed by the pub- lic. It was promoted by Edward McKim of New York, who conceived the bright idea of making picture production an endless circle of profit and entertainment. He pro- posed to film plays in a big amu>ement hall to which the public would be admitted at popular prices. Everything went well till the male star of the Advanced refused to act before the pub- lic. It seems odd that an actor—even a screen actor—should shrink from the pub- lic gaze, but it only goes to show that you never can tell what sort of obstacles mav bob up athwart the path of a film pro- ducer. Officers of the Advanced blamed the actor for the failure of McKim's clever program, but to a student of the film in- dustry it seems that a motion picture com- pany, which can be tripped into the bank- ruptcy courts by one blushing violet of a movie actor, is not very firmly built. How- ever, the Advanced took in about $70,000 of the public's money for stock, according to the estimate of J. D. Hern and Dennis AE. Behen, attorneys for the creditors whose claims total about $10,000. Neither Mr. Hern nor Mr. Behen, nor Mr. Bradford, representing the receiver, thought that the assets of the company would pay the cred- itors in full, so it is not likely that the stockholders will receive much. ***** It seems only right, inasmuch as most motion picture companies receive their cor- porate birth in Delaware where the charter laws are so liberal that you can launch any sort of corporation on a shoestring, that a few of them should remain in their na- tive state. One of them, called DuPont Pictures, Inc., did settle down there right under the wing of the DuPont family of multi-millionaires. The company was started shortly after the press of the country had proclaimed the fact that one of the Du- Ponts had entered the motion picture busi- ness through heavy investments in Gold- wyn's. As a whole we are deeply inter- ested in the doings of our famous mil- lionaires, so it seemed that most everybody in the country knew that the DuPonts and their millions were in the movies. This fact the promoters of DuPont Pic- tures, Inc., seemed to perceive. Accord- ingly they secured the services of one John T. DuPont of Montclair, N. J., to lend his good name to the company. John T. Du- Pont was no kin to the powder millionaires, nor was he a motion picture man. Repre- sentatives of the DuPont de Nemours Cor- poration seemed divided on the subject of John T. Some were of the opinion that he was a retired grocer; others said he was a locksmith; and one functionary of the company was certain that in private life he was a plumber. But all agreed that he was an honest man who had merely ac- cepted what appeared to him a lucrative position as officer of a new corporation, named in his honor. According to the spokesmen for the DuPont de Nemours Cor- poration, the men who really launched the company were W. T. Whitmore and Bernard Levy. The address of the new picture company was the DuPont Building, Wilmington, Del., headquarters of some of the most impor- tant business enterprises of the Delaware DuPonts. The company was first incor- porated for .$100,000. But, according to letters sent out by DuPont Pictures, Inc., "it is proposed to increase this immediately to $5,000,000, 8 per cent cumulative pre- ferred stock par .$100 and 50,000 shares of no par value common stock." DuPont Pictures, Inc., might have had an interesting and picturesque career had not the Delaware DuPonts butted in, com- mandeering the services of the Post Office authorities. The subsequent proceedings were brief. The officers of the new com- pany were hailed before Solicitor-General Lamar, and they readily agreed to dissolve business. No great damage had been done. Postmaster English of Wilmington said he had received a letter from only one man, a resident of Indiana, who acknowledged that he had bought stock. 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