Exhibitors Herald (Jan-Mar 1920)

March 13, 1920 EXHIBITORS HERALD 31 Eighteen Independent Buyers Will Launch Co-Operative Organization State Rights Buyers Combine to Purchase Features and Short Subjects From Independent Producers as Unit — Will be in Operation Within Thirty Days Chatkin Chairman of Executive Committee Owners of eighteen independent exchanges which now distribute films in ninety per cent of the territory in the United States have successfully launched a co-operative national organization through which they will deal with independent producers. The organization is the outgrowth of a series of conferences held in Chicago February 24, 25, 26 and 27, at which ways of keeping the worth-while products of the independent producers for the state right market were to be discussed. DECISION COMES AS SURPRISE TO DELEGATES Even the delegates to the conference were surprised at the size of the project they have derermined to undertake. After three days little had been accomplished and the convention was extend d. On the following day, difficulties were speedily ironed out and before night the agree t had been made; more than $100,000 subscribed, and an executive committee with full power to i corporate and complete organization had been appointed. D. J. Chatkin of San Francisco was named chairman of the executive committee, with S. RpnH of Pittsburgh, Sam Werner of St. Louis, R. C. Cropper of Chicago and E. J. Farrell of Boston members. "We will be ready for business within thirty days," declared Chatkin. No name has been chosen for the organization, this being one of the many minor details left entirely in the hands of the executive committee. Territorial boundaries have been tentatively decided upon. It is very probable that the territory not now touched by the eighteen will be absorbed by two or more of the exchanges, so that the association can buy the entire United States rights to any feature or short subject it wants. Will Not Buy Negative For the present at least the association will not buy negatives, as it has no wish to handle foreign rights. "We 'may make our own prints," declared Mr. Chatkin. "It is certain that all advertising matters, including posters, will be made especially for us, and will bear our trade mark. We will not purchase the productions outright, however." One of the important points already decided upon is that all exchange owners will ballot by wire on productions before they are purchased. The voice of the majority will be decisive, however. New York offices, it is expected, will be opened within thirty or sixty days. Members to Judge Pictures Although the details have not been decided upon, it is practically certain that the exchange men will act as judges of the pictures, a committee of three or five franchise holders being delegated to review and conduct negotiations. It has been suggested that membership of the reviewing committee rotate, various groups serving from time to time. This will be decided after the prelim inaries of organization are completed. While it is proposed now that the corporation be capitalized at $100,000, there is a movement to materially increase this sum before incorporation papers are taken out. The increase is for the purpose of being able to give financial encouragement to producers where it is necessary. Chatkin Sees Big Future "Our organization is financially sound and has the enthusiastic support of every member," declared Mr. Chatkin. "It is a proposition which will gain in size and importance. "There will be no delays now that the ball has started rolling. Within thirty days we will incorporate — I do not knowyet in which state. By-laws will be drafted at once. We will start doing business almost immediately. "There are many minor details which have not been worked out as yet, but the 1 Brandt Predicts More Buyers Will Combine | I Joe Brandt, special representa | j tive of the National Film Corpora j j tion, who attended the convention [ 1 of independent exchange owners in | I Chicago, predicted that other buy j 1 ers would soon organize. | "I am inclined to refer to this § | organization as unit number 1," he j | declared. "There undoubtedly will j | be a unit number 2 soon. 1 "All over the country owners of I 1 independent exchanges are realiz | 1 ing they must organize to offer the j 1 independent producers a market. I | | believe it is the salvation of the § I state right field." big points have been disposed of. The hard work is done. I can see nothing which can block our future. "We have no affiliation at this time with any of the independent producers. It is not a one-company proposition. It is of the exchange men, by them and for them." Will Not Limit Members Members of the association will not be limited to productions selected b\ the association. They will not be permitted to buy state right films, however, before the association has passed on them. If the association decides not to purchase the picture the individual members wil be free to buy the rights for their territory if they care to. Members will have to accept for their territory rights to all pictures which the association votes to purchase, however. All Territories Represented The eighteen exchange owners who have obtained franchises in the organization are the following: NEW ORLEANS — GENE PEARCE. Pearce Film Co. WASHINGTON— H. E. COFFET, Empire Film Dist. Co. PHILADELPHIA— A. A. MILLMAN. Capital Film Exchange. KANSAS CITY — AL KAHN, Crescent Film Co. DENVER — H. A. KYLER. Supreme Photoplays Corp. DETROIT— DAVE MUNDSTUK. Strand Features. SAN FRANCISCO — DAVE CHATKIN, Consolidated Film Corp. MILWAUKEE — W. A. BAIER, W. A. Baier Film Co. OKLAHOMA CITY— R. D. LEWIS, R. D. Lewis Film Co. SYRACUSE— T. W. DOOLEY. Dooley Film Exchange. NEW YORK — E. W. HAMMONS. Educational Film Corp. ST. LOUIS — SAM WERNER, United Film Service. OMAHA— MAX WAINTROUB. Fontenelle Film Co. BOSTON — E. F. FARRELL, Major Film Co.