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Explanation of Film Service Charges
The principal item of expense to a Film Exchange is deterioration. The new reels that a Pathescope owner buys with his machine begin to depreciate in value with the first time they are run through the machine. This may not be apparent for a long time, but eventually those reels — new today — will be worn out and will have to be replaced by the Exchange with new ones. They also get brittle standing idle. Therefore, it is evident that when the new owner brings his orginally purchased reels back to the Exchange and requests others in place of them, he should pay a depreciation charge, depending on the elapsed time, to cover their estimated deterioration, inspection and repair.
The most expensive form of Film Service is transient rental. An Annual Rental Subscription costs only about half as much. The Exchanges can afford to offer a lower rate for a regular service that will keep the reels constantly in use.
The maximum possible economy in Film Service is obtained by purchasing with the machine a certain number of reels, the owner then paying ever afterward only one-half to three-fourths as much for exchange service of his owned reels as he would otherwise be charged for rental service as a non-owner of reels.
For Example:
Five Reels Rented by a non-owner for one week . . $7.20
Five Reels on Annual Rental Sub. for one week (About) . 3.60
Five Reels of Owner on Annual Rental Exchange
Sub. for one week (About) ..... 2.40
Taking the most common and almost universal periodical service of five reels per week to the Pathescope owner, it is evident that an initial investment of $175 for the purchase of five reels will affect a subsequent saving of $60 each year thereafter — 34 per cent, annual dividend or interest on the original investment in reels.
Note — Minor repairs, such as breaks, cleaning, etc., will be made by the Pathescope Exchanges without charge. Transportation by express or parcel post to be paid by the subscriber.
Loss of time in transit — going, borne by subscriber ; returning, borne by Exchange : — That is, charges for Film Service date from the time the films leave the Exchange until they are delivered by the Subscriber to the transportation company for return.
Subscribers wishing to discontinue service for a longer period than one month, can do so by returning all reels in their possession to their Pathescope Exchange. Service can be resumed at any time, and the subscription will be extended for the time it was suspended.
Subscribers owning reels and desiring to discontinue their exchange subscriptions, may select the full number of their owned reels from any in their Exchange, and retain them permanently.
Subscribers failing to return films on their regular exchange day (unless previously notifying the Exchange not to send others) may be subjected to a charge for extra service, as follows :
Owners of films, 10 cents per reel for each day overtime.
Renters of films, 15 cents per reel for each day overtime.