The Film Daily (1930)

Friday, June 6, 1930 German Producer-Exhibitor Organization Planned Indep't Unit to Become Nucleus of European Syndicate Washington Bureau of THE FILM DA11 Washington — An organization of ink-pendent German exhibitors, under :he name of Reichsfilm A. G., which s later to become the nucleus of the nuch discussed European Exhibitors Syndicate, is being planned by the ierman Reichsverband (Exhibitors' Union), according to reports received iv the Department of Commerce from George R. Canty, American rade commissioner in Paris. The project was submitted to sev ral recent meetings of exhibitors in Germany and met with enthusiastic approval. The chief objects of the new organization will be to obtain reduction of sound film rentals and tn supply quality sound product to the German market. The Reichsfilm \. G. will, it is stated, institute rates or film rentals of 27 y2 per cent for ir-t runs; for second and third runs the rates are to be proportionately ower. The organization will recruit it^ nembers among the independent exhibitors throughout Germany. In )rder to prevent too much competiion, however, only two theaters (one if them a first run) in each of the arger cities, and one theater in every mall locality, will be affiliated with he new organization. The amount )f the participation is to be 10,000 nd 5,000 marks, respectively. Special provisions will be made as to the Berlin members. In each city the nembership of a leading cinema with gh average receipts is to be secured, ;ince an effective reduction of rentils can only be obtained for all cinmas by profitable first-hand releases, t is claimed. "It is further planned to create hree companies in Germany, France. nd Great Britain, to be financed and ontrolled by the exhibitors' associaions, for the purpose of joint mulilingual production in German, rrench, and English with a different ast in each case. Each company vill have the distribution rights in :s respective country, the negatives d remain common property and all he proceeds of sales in other counto be divided among the three artners. In spite of their joint work, ne companies in question will be bsolutely independent financially, one of them to be responsible for ventual losses of the two others. The whole German trade pre- ilarmed over the cinema situation in ie country which, according to reorts. is nearing a crisis. The closeown of smaller motion-picture theters has become a daily event, both l Berlin and in the provinces. The lange-over to sound film, which has roved most difficult for the large Wises, is causing the ruin of a numsr of smaller ones. Silent film supplies are insufficient I meet the demand. On the other hand, the small exhibitors can not afford the purchase of sound film equipments and, moreover, they are suffering under the high taxation. A meeting of the medium and small exhibitors of Berlin (with up to 600 seats) took place recently. Repeated protests were issued by various members against the Reichsverband (German Exhibitors Union) whose policy, it was declared, is distinctly favoring large houses and neglecting the interests of the smaller members. It was decided, therefore, to create, under the name of "No-Be-Li" (Notgemeinschaft Berliner Lichtspeiltheaterbesitzer), a new association composed exclusively of small exhibitors, whose activity will be entirely independent from that of the Reichsverband and whose object will be the protection of the interests of its members. The first task of the new a>M>ciation will be an appeal to the Berlin municipal authorities for the abolition of the entertainment tax during the summer months insofar as the smaller cinemas are concerned. The association is to furnish statistical data showing that if the present tax rates are maintained during the summer, it will mean that complete annihilation of the smaller houses of Berlin. To the Holders of the 8% Preferred Stock of Pathe Exchange, Inc. On May 29th, 1930 the undersigned preferred stockholders Protective Committee of Pathe Exchange, Inc., addressed a letter calling upon the present management to inform the stockholders of the Company regarding the amount of moneys paid, number of shares of stock issued, and amount of obligations assumed by the Company to certain parties, the names of these parties, regarding the particulars of the property and other considerations received by the Company for such moneys paid, obligations assumed and shares of stock issued by the Company; and regarding the extent of stockholdings of the Company held by its present management. No reply to this letter has been received by the stockholders from the present management. The failure of the present management to furnish this information, and its opposition to the exercise of the right of the preferred stockholders to obtain representation on the board of directors, in accordance with the provisions of the amended certificate of incorporation of the Company, make it necessary for stockholders to consider: What is the motive of the present management in failing to give this information to the stockholders, and in seeking to continue its control of the Company? The motives and plan of the undersigned Protective Committee have been clearly and openly announced. The program of the Protective Committee is to elect the following as directors of the Company, on behalf of the preferred stockholders: RICHARD A. ROWLAND Former general manager of First National Pictures, Inc. MARK HYMAN President, Standard Cinema Corporation, producer of pictures distributed through R. K. O. Productions, Inc. W. WALTER W. VINCENT Vice President, Wilmer & Vincent Corporation. CHARLES R. ROGERS Producer of pictures distributed through Universal Pictures Corporation, First National Pictures, Inc. and others. V. A. WATERMAN Partner, Waterman, Bonn & Co., FREDERICK R. RYAN Members of New York Stock Ex McCombs & Ryan, Attorneys. change. ROBERT W. DANIEL President of Liberty National Bank & Trust Co. SAMUEL UNGERLEIDER Partner, Samuel Ungerleider & Co., Members of New York Stock Exchange. These gentlemen, if elected to the hoard of directors of the Company, are capable of procuring: 1. EFFICIENT, ECONOMICAL AND PROGRESSIVE MANAGEMENT. 2. FINANCING REQUIRED FOR PRODUCTION OF SUCCESSFUL MOTION PICTURES. 3. ADEQUATE AND PROFITABLE DISTRIBUTION OF THE PICTURES PRODUCED BY Till COMPANY. If you are interested in joining with the other preferred stockholders of the Company, represented by the undersigned Protective Committee, in obtaining representation for preferred stockholders on the board of directors of the Company, please send the Committee your proxy, if you have not already done so. // you have already given a proxy to the present management of the Company, you now have the right to give the Protective Committee your proxy, and thereby revoke the proxy which you may have previously given to the present management; or, you have the right to attend personally, the adjourned annual meeting of stockholders to be held at the offices of the Company, No. 35 West 45«/i Street, New York City, on Monday, June 9th, 1930, of 2:30 /'. M.. at which time you may vote for the election of directors, regardless of any proxy you may hare given. The undersigned Protective Committee will be glad to have all stockholders and bondholders of the company present in person at this meeting. The form of proxy to the undersigned committee, and full particulars, will l>< furnished upon request, by the secretary of the Committee, Mr. Frederick H. Ryan, No. 25 Broadway, New York City, whose telephone number is Digby 8466. PREFERRED STOCKHOLDERS PROTECTIVE COMMITTEE RICHARD A. ROWLAND, Chairman KOItERT W. DANIEL \\. V. A. W Ml ''.KM \N FREDERICK R. IO W. Secretarj