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BAILEY THEATER 613
group from each exchange, with no contracts made until all members were satisfied with their share of the purchase. If members were dissatisfied, or two theaters in a zone desired the same product, it was planned to have the buying committee confer with the different members and reach a decision of joint interest. In buying by the group, it was planned to allocate cost from a rate figured at the average of a member's last year's cost per feature. It was further planned for the next buying season to negotiate for all member theaters at one time and in advance.
There were 12 film exchanges in Toronto, all of which were American controlled. Some English films were sold through two of these exchanges. As the center of the film industry in Canada, Toronto was the location of the Dominion distribution managers. Some managers held sufficient power to accept film contracts, while others were required to send such contracts to New York for approval. The attitude of the exchanges, as a whole, was at first unfriendly to the Exhibitor's Co-Operative, Limited, and considerable opposition had been met. Later, a more friendly situation had developed through the knowledge that the Exhibitor's Co-Operative, Limited, was not a movement with the purpose of blocking certain exchanges. The president of the Exhibitor's Co-Operative, Limited, thought that the exchanges would offer little opposition in the future because of the buying power represented by the group of theaters.
In considering a membership in the Exhibitor's Co-Operative, Limited, Mr. Bailey believed that the buying advantages would perhaps be the greatest opportunity for benefit to his enterprise. The Bailey Theater had never been threatened by the large distributing organization and had succeeded in purchasing those pictures, for the most part, which it desired. The large chain theater was controlled by the distributing company and enjoyed first-run protection. The Bailey Theater was content with its second-run protection on the films distributed by this one company. It desired, however, earlier runs on films produced by other companies.
In questioning the president of the Exhibitor's Co-Operative, Limited, concerning the advantages that might be secured in this direction, Mr. Bailey confirmed his opinion that the association had not been enabled to secure satisfactory results on earlier