The Film Renter and Moving Picture News (May-Jun 1923)

10 THE FILM RENTER &-MOVING PICTURE NEWS. May 26, 1923, FIRST NATIONAL AND FAMOUS -PLAYERS-LASKY. J. D. Williams Gives Evidence in Federal Commission Case. THE COMPETITION FOR STARS. N important witness in the person of J. D. Williams followed the other well-known figures whose evidence in the case brought by the American Federal Trade Commission against Famous Players-Lasky was reported in last week’s issue of THE Fum Renter. J. D. Williams is now president of Ritz-Carlton Pictures, Inc., and was formerly general manager of Associated First National. His evidence dealt with schemes for joining Adolph Zukor and the fears that he (Williams) had that First National would be broken up owing to the policy of Famous-Players. Some interesting comment on the position of ** stars ’’ was heard during the cross-examination of this witness. He told the story of the formation of First National and of attempts made by Adolph Zukor to get him to leave First National and enter Zukor’s employ at double the salary he was getting from First National. Another proposition made by Adolph Zukor was for a working agreement between the two organisations, and later the suggestion was put forward for the formation of a national booking combine. Under this arrangement the bulk of the pictures were to be supplied by FamousPlayers, and First National were to go out of business as distributors, their theatres taking the Paramount products. Move and Counter-move. The First National Board turned down this proposition and later, in an attempt to get him to leave First National, Zukor said he was prepared to buy up enough First National franchises to put that organisation out of business. It was difficult at that time, admitted Mr. Williams, to keep the exhibitor-iranchise holders together, and he seriously contemplated the acceptance ot Adolph Zukor’s proposals as he felt he could work satisfactorily in alliance with him, for he felt that Zukor was a most capable and far-sighted man who had done much good to the picture industry. He therefore accepted provisionally the offer to join him, but before negotiations were finally clinched, First National had become stronger, and he decided to remain with them. Remembering the ‘‘ threat ’’ to attack First National by purchasing franchises, J. D. Williams said he went out immediately to try to sign up new stars, and secured as the first star Norma Talmadge. He went on to detail how the attempted buying out of franchise holders was carried out, and how E. H. Hulsey sold out his interests to Stephen Lynch on the advice of the former’s bankers, who had become frightened at Lynch’s threats. Lynch was head of, Southern Enterprises, which was controlled by Famous Players. Big Contracts. The question of stars and their importance was brought out by Famous-Lasky's counsel, and witness admitted that in 1916 Mary Pickford, Marguerite Clark, Jesse Lasky and Cecil B. de Mille, who were at that time in the employ of Famous Players, were more important and their pictures more sought after than those of players and directors working for other com sin panies. In pursuance of First National’s policy of signing contracts with new stars, the following were some of the arrangements made : With Charles Chaplin, June, 1917, for eight pictures, Chaplin to be paid 1,075,000 dols. (This contract, the witness said, was the largest and cheapest in the history of the business.) With Mme. Petrova, August, 1918, for eight pictures, with an advance of 70,000 dols. and percentage on each. . With Anita Stewart for six pictures, with an option on:six more. On the first six the advance was 80,000 dols, plus percentage. The option on the additional six called for 100,000 dols. advance and percentage. With Mary Pickford, November, 1918, for six pictures, to be purchased outright at 250,000 dols. each. With Jack Pickford, November, 1918, for three pictures, to be purchased outright at 50,000 dols. each. With D. W. Griffith, January, 1919, for three pictures, with an advance on each of 285,000 dols. With Charles Ray, January, 1919, for twelve pictures, with an advance of 95,000 dols. and percentage. Two contracts with Norma Talmadge. The first April, 1910, for eight pictures, each to be purchased outright at 160,000 dols. The second November, 1920, called for twelve pictures, with an advance of 350,000 dols. on each, plus percentage. wo contracts with Constance Talmadge. The first June, 1919, for six pictures at 110,000 dols. each, outright purchase, and six more at 150,000 dols. apiece. The second November, 1920, for twelve, with an advance of 300,000 dols. on each, plus percentage. With Mildred Harris, September, 1919, six pictures, with ap advance of 50,000 dols. on each and percentage. With Whitman Bennett, March, 1920, for four pictures, with an advance of 175,000 dols. on each and percentage. No Poaching. Cross-examined on the point as to whether he endeavoured to negotiate with players or directors while they were with other companies, J. D. Williams said : ‘‘ I tried to negotiate with every leading star or director in the business, but I most certainly did not attempt to get any of them to jump their contracts. My idea of production is that each star or director should put his own money into the pictures and thus have definite responsibility. Under the factory system of production, where you have a large number of stars working on salary in one studio, there is soldiering by the players, and too much overhead.” He declared that the main purpose for the reorganisation of First National in 1920, when Associated First National Pictures, Inc., was formed, was to prevent Mr. Zukor from buying First National franchises and thus dominating and controlling the theatre situation. Why First National was Formed. Williams detailed his early exhibiting experience and his plans for big exhibiting in Los Angelos, which fell through owing to (Continued at foot of page 12).