Exhibitor's Trade Review (May-Aug 1925)

May 30, 1925 HARRY M. WARNER BRANDS 'BIG 3' AS TRUST GROUP (Continued from page 17) thev will not be played except on rare occasions, and no one can remain in business if they only show their product on rare occasions. In the Los Angeles situation, all of the theatres downtown are owned or controlled through arrangements and affiliations with the West Coast and Famous Players, where all their pictures are played and none other except on rare occasions. "If it were not for the purpose of controlling the theatre situation to the exclusion of all other companies, why would combines such as the West Coast spread out into smaller towns and purchase or make affiliations that enable them to control over one hundred theatres in Southern California? "In these cases where these affiliations exist it is the common practice of the big three to throw the fear of God into the individual independent exhibitor and to force him to buy their specific product in preference to any other. He has no alternative, for it is a relatively simple matter for the larger outfit to build in opposition to him and eventually put him out of business unless he books their pictures. "In the city of Chicago arrangements similar to those on the West Coast exist. There Balaban and Katz are the First National franchise holders. If there is any theatre in competition with them they make it their business to either affiliate with them or to annihilate them. It is common practice for these big outfits to make such affiliations with circuits or individuals as will give them the booking power and the right to show only their own pictures in these theatres which they line up under their banner. "The Famous Players company operate the McVickers theatre, which was the only competing house of any importance with the Balaban & Katz interests. Balaban and Katz are now operating this theatre under a ten-year agreement w7hich Adolph Zukor personally told me he had entered into. "Marcus Loew in the presence of Will Hays told me he had signed an agreement with Balaban & Katz for their pictures ( MetroGoldwyn) for ten years for the Loop district of Chicago. If it were not the purpose of the three companies to control and work together for the combined purposes of each other, why have the recent mergers in the middle west taken place, such as the Balaban & Katz, and Lubiner and Trinz and A. H. Blank circuits, and the acquiring by Balaban & Katz of the McVickers theatre? The possibilities are that before this article reaches print there will be additional announcements of affiliations in that and other districts. "In the city of New York, as great and as large as it is. what is the Loew company doing? If they would furnish a list of theatres that they have obtained by affiliations and arrangements it would fillnewspaper columns. Loew is obtaining all of the theatres possible in Greater New York and that immediate locality. "The Famous Players own theatres in many large cities and own and control a majority of the theatres in the Southern States. They are now getting into the smaller cities throughout the country. "All that any person who has knowledge of the business needs to do is to analyze the ownership and combination workings in the ■different large cities. They will see for themselves whether there is any attempt at com Assails Combine Harry M. Warner, President of Warner Brothers, Again Attacks "Big Three" as Members of Trust. bine. If there is no attempt to form combinations why is it that these three big companies do not build and operate theatres in direct competition with each other? "An example s the city of San Francisco where the West Coast theatres operate the Warfield theatre in co-partnership with Loew's, Inc., who own Metro-Goldwyn. Bear in mind, too, that West Coast are the owners of the First National franchise, and the only opposition is the Herbert L. Rothchild Entertainments and the West Coast theatres, through which the latter are limiting their activities to the Warfield, leaving the rest of the City of San Francisco to the Rothchild Entertainments. "In Cleveland, Ohio, all the downtown theatres are controlled by interlocking arrangements between Loew, Metro-Goldwyn, Famous and First National, whose output must be first taken care of before any other producer has a chance. This is very slim because they fill up about 98 per cent of the booking dates. "In our opinion there has been a division of , territory where each individual faction is supreme. If these things are not so then there is surely no reason why the executives of these companies should remain silent when matters of this kind are brought into the open. "It is easy to see that something is radically wrong. Otherwise, why the Exhibitors' Convention in Milwaukee where the Independents have called a nation-wide meeting to discuss these problems — the producers to seek an outlet for their product, the exhibitors to determine ways and means to stay in business and earn a livelihood without being swallowed up? Why, too, would the independents make overtures to the greatest brains in the country to guide them in their fight for their very existence if nothing was wrong? "All these things need an answer. That there is something wrong is unquestionable. "But why all this newspaper discussion? My statements have gone unanswered by the heads of the big three. We have laid our cards on the table. We claim there is a solid combine which prevents the outsider from doing business with his product. Our supposition must be correct. Independent pro Page 19 SEWER LEADS JERSEY DELEGATION New Jersey distinguished itself through the efforts of several of its delegates. Joe Seider, president of the state organization, presented one of the most important reports of the convention, a document that dealt forcefully and logically with the uniform contract and the question of arbitration as now in effect. In it he displayed the analytical ability that grows out of legal training, plus a thorough appreciation of the position of the average exhibitor under existing conditions. Sydney Samuelson, of Newtown, N. J., who has the distinction of operating a fine 900-seat theatre in a town of approximately 4,500 population, was another Jerseyite who distinguished hmself on the floor of the convention. Samuelson, who holds a degree from City College, New York, started in the picture business about eleven years ago, in New York, but settled in Newtown in 1919 and in the Newtown Theatre has developed an institution that has a rather unusual hold on the good will of the community. He is chairman of the board of directors of the M. P. T. O. of New Jersey, and has been one of the leading factors in bringing that organization to its present commanding position among the state groups. At the con\ ention he demonstrated marked ability in presenting facts in a way that clarified a number of complicated situations and a keen appreciation of the value of moderation and diplomacy in building harmony. It seems altogether likely that he will be a steadily growing factor in the councils of the national body. Edward T. Lowe, Jr., who wrote the script, of "Red Hot Tires," from Gregory Rogers' story, which is to be Monte Blue's next starring vehicle, has been signed to a six-months' contract, with an option of renewals for a year and a half, by Warner Brothers. Lewis Milestone has also been sddcd tc the Warner scenario writing department. ducers are not getting first runs and our claim that there is a trust is answered only by healf-hearted and vague replies from minor executives. Let the big men of the three companies meet us around a table and lay their cards open, as we have done, if they dare. "I have just received a telegram from headquarters in Milwaukee where the Independents held their convention, to the effect that propaganda is being spread that Warner Brothers are affiliated with Metro-Goldwyn; that it was the Metro company who furnished the finances for the purchase of the Vitagraph Co. This, of course, is being done to give the independent exhibitor the idea that Warners do not stand alone, and we brand them as malicious lies. "I hereby offer to charity $100,000 if anyone can show proof that we are affiliated in any way with Metro-Goldwyn or any other interests. Anyone spreading news of this kind should be ostracized from any community for it is deliberately and maliciously an attempt to inflict injury on our organization. "These attempts show the fear that has arisen in the heart of the trust and the unfair methods being used are further proof that a combine does exist. "We invite members of the big three to sit in open meeting with us and show their plans for exhibition of pictures in their theatres for the coming year. The public will ther. see the plans that have as their goal the elimination of the independent producer and exhibitor."