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516 HARVARD BUSINESS REPORTS
The company established its executive offices in New York City. At these offices were the president and vice president and, immediately responsible to them, the general director of theater management. The director worked in close harmony with the executives of the parent company. Also in New York City were the advertising department, the film buyers, the department which had charge of preparing and routing the stage shows for the company's de luxe theaters, the repair and supply departments, and the accounting and finance departments.
Under the general director of theater management the control of theaters was divided among four executives. One of them was in charge of the operation of the company's de luxe or class A theaters (Division A). These were the large new theaters which offered a combined stage and motion picture show. Another executive was in control of the Class B theaters (Division B), in which group was included the smaller theaters. In a city in which the company had both class A and class B theaters the management of all the theaters in the city ordinarily was under the supervision of the director of class A theaters. There were a few exceptions to these rules. Most of the theaters in New England and on the West Coast were not under the control of these two executives but were in charge of two other executives respectively.
Under these four executives there functioned 24 division managers, each of whom was in charge of the operation of the company's theaters in a certain territory. Under some of the division managers there were two or three district managers who had charge of still smaller territories. Directly under the district managers were the managers of the individual theaters. In some of the larger cities the company had established city managers to supervise the operations of all the company's theaters in those cities.
The problems of control which interested the executives of the company were many. The most important were: purchase of pictures and booking of theater programs, selection and training of employees, advertising and publicity, control of supplies, equipment and repairs, public contacts, and control of the expenses of operation.
The selection of programs of entertainment began in the New York office with the activities of the buyer. At the beginning of the theatrical year, when making his largest purchases of pictures, the buyer was supplied with complete reports on the results of the