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Rainier Theater1 motion picture theater
Purchasing — Five-Year Franchise Agreement to Assure Supply. An independently owned motion picture theater which showed first-run films had been securing pictures from the large producer-distributors. Because these large companies had acquired control of all other local first-run theaters, whose program requirements necessitated first-run exhibition of a large proportion of the output of their affiliated companies, the theater faced the problem of an uncertain supply of highquality first-run pictures in the future. In 1929, therefore, it considered acceptance of the recently announced Allied States Franchise Agreement, whereby it would agree to exhibit the pictures of a small, independent producer for five years.
(1929)
The owner-manager of the Rainier Theater, late in 1929, considered acceptance of the recently announced Allied States Franchise Agreement whereby he would contract to exhibit Tiffany pictures during 1930 and throughout the ensuing four years. In the past the films shown in the Rainier Theater had been leased from large producer-distributors. Four of these companies, by 1929, had acquired control of practically all the local first-run theaters. The program requirements of these theaters necessitated the first-run exhibition of a large proportion of the feature picture output of their affiliated producing companies, as well as of the best films released by competing producers who did not control local first-run houses. The Rainier Theater consequently faced the problem of an uncertain supply of high-quality first-run pictures; accepting an Allied States Franchise Agreement with Tiffany Productions, Incorporated, offered one solution of this problem.
The Allied States Franchise Agreement was conceived for the purpose of assuring an uninterrupted flow of first-quality motion pictures to independent exhibitors at prices which would enable them to make a profit. The agreement involved Tiffany Productions, Incorporated, and the RKO Distributing Corporation as
1 Fictitious name.
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