The Film Daily (1923)

Wednesday, November 14, 192 Pertinent (Continued from Page 1) / Another fundamental factor entering into high cost is the unnecessary extra turn taken by directors in the production of their pictures. This is and lias been difficult to control because of the arbitrary attitude assumed by the present day director of importance. There are also the large carrying and overhead charges which can only l>e fairly absorbed by greater instead of lesser production. In my opinion, high cost of production is not an issue for the industry collectively but for each producer to individually solve and it can only be accomplished by the individual developing unknown artists and by the employment of uncelebrated directors on reasonable terms who will agree to and will "shoot" their pictures within a limited number of days. Today, in the motion picture industry, the real vital issue is whether or not the producer is to receive fair and reasonable prices for his pictures. If rental prices come down with a reduction in costs, the producer will be no better off than now. Exhibitors have merged their interests in a great many cities with the result that all the theaters are in the control of one man or one group of men. In many other centers they have formed booking combina tions. All to force the producer to accept rental prices arbitrarily fixed by the exhibitor. Why do not the producers take action — not talk — to destroy this danger, the greatest menace to the picture industry! At present there are a few so called competitive points where the exhibitor is required to pay more than the true value for pictures to partly make up for the producers forced underselling in other towns. This is unfair to that exhibitor and is unsound business. Pictures should be sold everywhere for what they are worth — no more and no less — and to enable the exhibitor and the producer each to make a fair profit on their respective investments. At present there are exhibitors in dozens of large controlled cities getting pictures at a mere fraction of their value. This serious situation is well known to all producers and in my opinion, it is only the vanity of the heads of the larger producing companies which permits this condition to exist and will permit it to continue until it strangles them. It seems to me these executives are sitting back, each thinking they will weather the storm, and that all their competitors will go bankrupt, when they will then single handed stamp out this evil. Another important element is the cost of distribution. Why should there be ten ofTices in each of thirty cities with thousands of employees selling the same kind of merchandise to the same customers? Others have already made suggestions to remedy this. The cost of distribution can be reduced one half and the saving applied in reduction of film rentals. All of these unsound conditions can be remedied if three or four distributing companies, or more if others choose to join, distribute as one. Joint distribution would put an end to the dictation of prices by exhibitors. If a sufficient number of pictures were in the hands of one distributing agency, exhibitors who persisted in their present strangling methods would soon find themselves facing a shortage of good pictures and they would then be willing to deal on a fair basis. A joint distributing organization should agree to supply pictures to all exhibitors throughout the United States on a percentage of the theater's gross takings, the percentage to be fairly arrived at by an arbitration committee composed of exhibitors and producers. Such percentages must allow each exhibitor a fair profit and also permit each producer a fair, even though proportionately smaller, return. What I have here expressed will probably bring an avalanche of pro tests and reproaches from produci exhibitors, artists, directors. J everyone connected with the indust but I am stating my honest belief Mine is not a cry of personal t tress. In fact, I feel that with I warm personal friendships of ms leading exhibitors and with powerful cooperation of Mr. W. Hearst. Goldwyn Cosmopolitan better able to cope with the situat than some of the other companies The Goldwyn Pictures Corp. stronger today than ever in its 1 tory. Its pictures are good and exhibitor's demand for them greater than in former years, sales have never been so large, financial condition is sound. I have been asked why, if these the facts, Goldwyn stock is quo so low. My reply is that I am bu ing up the) Goldwyn business and the stock market. Our accounta (Price Waterhouse & Co.) last au; shows that the book value of G( wyn stock is forty dollars per sh; excluding good will. Neverthel' the fact remains, we are not gett! adequate rentals for our pictures a great number of territories. Cosmos Art Pictures Associatio The Exhibitors Associate JOIN NOW STANDARD FILM LABORATORIES Announce The opening of their New York Office ROOM 2111 FISK BUILDING Broadway and 57th Street under the personal management of F. G. CONKLIN wholis known'throughout the trade of the entire country and who will serve the growing clientele of STANDARD FILM LABORATORIES WITH A TRUE STANDARD SERVICE THAT THE NAME IMPLIES Standard li/it? ZraAorafaries £ * JofinMJVickofaus L SMJbmpkias *S^ Phone Hollywood ■4366 SMJbmpkias Seward and /torn a inc. Streets /follt/wood, California fffaifdard 'Priqlp