Exhibitors Herald and Moving Picture World (Oct-Dec 1928)

20 EXHIBITORS HERALD and MOVING PICTURE WORLD October 20, 1928 EXHIBITORS HERALD 9b4 MOVING PICTURE WORLD Martin J. Quigley, Publisher Editor Incorporating Exhibitors Herald, founded in 1915; Moving Picture World, founded in 1907; Motography, founded in 1909; and The Film Index, founded in 1909 Published Every Wednesday by Quigley Publishing Company Publication Office: 407 So. Dearborn St., CHICAGO, U. S. A. Martin J. Quigley, President Edwih S. Clifford, Secretory George Clifford, Asst. Treasurer Member Audit Bureau of Circulations Copyright, 1928, by Quigley Publishing Company All editorial and business correspondence should be addressed to the Chicago office Other Publications: The Chicagoan and Polo, class journals; and the following motion picture trade publications published a* supplements to Exhibitors Herald and Moving Picture World: Better Theatre*, every fourth week, and The Buyers Index, published semi-annually. Whole Vol. 93, No. 3 (Vol. 35, No. 6) October 20, 1928 Finance and Management ALONGSIDE of the recent merger and consolidation ±\. trend in the industry there has been developing a problem of management which will make itself heard from and felt within the coming year. With the putting together of these vast units, reaching across the entire scope of the industry, there is created the necessity of executive personnel of corresponding calibre. And such personnel only exists in the business in small numbers. The record thus far of financial interests participating actively in the management of motion picture enterprises is not promising. It is true that the development of the motion picture business, together with all other great commercial undertakings, requires public financing, and public financing means the participation to some extent of financial interests. Financial interests, however, are never anxious to go actively into a business and rarely do so unless conditions in the business have reached an extremity. There is every indication that executive personnel of demonstrated ability will be in great demand in the picture business during the coming year, because of the requirements of these large new units and because the newly interested financial groups doubtlessly will be most anxious to see all of the necessary safeguards of good management placed about their underwritings. Virtually all of tin; recent mergers and consolidations will lead sooner or later to large public offerings of securities. Because of the money-making reputation of the picture business, and because of its conspicuous position in the public eye. then is little doubt that these offerings will be weU received by the investing public. A huge \olumc of film securities will be sold to the public and, then, in the natural course the public will expect profits and substantial profits. If the concern enjoying public finance fail to make the expected profit*, or if one or more of them should go into failure, the indu-try will have suffered a blow from which it will lake a long time to recover. It therefore seems very apparent that the industry at large is very directly interested in the outcome of these new mergers and consolidations, concerned as they are with large public financings. A\ ith respect to the future of these several combinations, it is important, of course, that their capital structures be adequate but it is well to remember that all of the conspicuous successes in the motion picture business up to date have been made rather because of peculiar ability^ for the picture business than because of financial strength. Money without adequate management is always in a dangerous position, but in the picture business it is in a certainly disastrous position. It is to be hoped that these financial groups which are either new to the picture business or who through recent activities are preparing to take a greater part in the picture business will at the outset be well-impressed with the fact that despite superficial reactions the picture business is a highly complex and intricate industry and that its management must be left in the hands of experience and demonstrated ability in the work. » » * International Pictures MR. HERBERT WILCOX, a distinctly leading figure in the creative end of the British motion picture industry, at the conclusion of his recent visit of inquiry to Hollywood expressed himself very forcibly on future plans. Mr. Wilcox, speaking for himself and his associates in production, says that the policy will be to produce really international pictures. "We are not going to undertake," said Mr. Wilcox, "the production of pictures only for England or only for the United States. We intend to make really international pictures, particularly directed to the markets of the English speaking peoples." The decision to make pictures for the international market on the part of the British industry, which we feel sure in this case at least means business, is a decision which we believe will mark the dawn of a decidedly better day. Consciously or unconsciously pictures have been made in England with the idea only of satisfying the British market. The foreign market would come in for little or no consideration until the picture was completed. The natural result of this has been a long series of disappointments which might have been expected had the original attitude of the producer been taken fully into account. * * * IN the light of all the arrangements being made for the carrying on of the film business, in the way of mergers, consolidations, new companies, new instruments and new methods, there is a great danger of placing too much reliance upon these forms, alignments and devices. The public is interested only in comfortable, attractive and wellmanaged theatres and good entertainment. These new developments in the picture business will only be found to be important in the long run provided that they lead to better theatres and better pictures. These arrangements in so far as they are essential toward maintaining and advancing the creative branch of the industry are vital: but they cannot substitute for the creative branch of the business, or lessen the complete dependence of the industry upon its screen personalities and creative workers. » # » WHETHER it is the Motion Picture Theatre Owners ol America or some other organization — or whether it is the Motion Picture Theatre Owners of America and some other organization every type and kind of exhibitor in the country should have the benefit of organization BUpporl and, certainly, every independent exhibitor should rive active and enthusiastic support to some trade organic al ton.