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624 HARVARD BUSINESS REPORTS
Paramount Famous Lasky Corporation 12^ %
Metro-Gold wyn-Mayer Pictures Corporation 13
First National Pictures, Incorporated 13
Fox Film Corporation 9^
Universal Pictures Corporation 8%
Pathe Exchange, Incorporated 8
United Artists Corporation 3
FBO Productions, Incorporated 6
Warner Bros. Pictures, Inc 7
Hollywood Pictures Corporation* 6
First Division Distributors 5
Commonwealth Pictures Corporation 3
Capital Film Exchange 2
Tiffany-Stahl Productions, Incorporated 3
Seven small distributors }4
100%
* Hollywood Pictures Corporation was a local distributor holding the local franchise for the sale of the pictures of the Columbia Pictures Corporation.
The committee then asked all members to send in requisitions for the pictures which they needed and would like to purchase for the theatrical season of 1928-1929. A compilation of these requisitions showed that almost every exhibitor wanted to show the pictures produced by the Paramount Famous Lasky Corporation, the MetroGold wyn-Mayer Pictures Corporation and the Fox Film Corporation. Preferences or second choices expressed for other products were about evenly divided among all brands.
With this information at hand the committee began to negotiate with distributors to purchase the necessary pictures. Early in the season the MetroGold wyn-Mayer Pictures Corporation, a subsidiary of Loew's, Incorporated, submitted to the committee an offer to sell its pictures to the members of the association at a price about 30% higher than had been paid by the members the previous year. The company informed the committee that it could not delay the sale of its pictures in New York City and that the association must accept or reject the offer within a limited time. The association was unable to come to an agreement on price within the time limit set. The Paramount Famous Lasky Corporation and the Fox Film Corporation refused to sell to the association on any terms.
Other distributors, such as the Universal Pictures Corporation and FBO Productions, Incorporated, however, were willing to sell to the association. The committee learned that, despite the fact that the president of the association had notified all distributors of the contract by which members had agreed not to