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MOTION PICTURE EXHIBITORS' ASSOCIATION 639
might be secured if the negotiations were carried on in the terms of a blanket price.
When the committee first indicated that it was prepared to make purchases for the ensuing year on behalf of its members, salesmen of most of the leading distributors called. As negotiations proceeded certain distributors became less friendly. The MetroGoldwyn-Mayer Pictures Corporation, when it learned that the Independent Motion Picture Exhibitors' Association, Incorporated, wished to buy its product, offered the product at a price too high for the association to accept and when the offer was not accepted, sold to competing theaters. The Fox Film Corporation and the Paramount Famous Lasky Corporation did not send representatives and refused to sell to the association.
The committee then reported these facts to the members and informed them that it was prepared to negotiate with companies that had been the members' subsequent choices. Upon consulting the members, the association found that they could not agree upon the product to be purchased. After discussion with members and preliminary negotiations with distributors the committee was able to open negotiations on a firm basis with FBO Productions, Incorporated, and Pathe Exchange, Incorporated. These two companies were under the same management. The association selected them because their pictures were of satisfactory quality and because the officers believed they constituted a group with which it would be advantageous to transact business. If the association furnished these companies an assured outlet for their pictures in New York City, it could expect to be assured in return a constant supply of their pictures. Contrary to the actions of the first three distributors, these companies had expressed a desire to sell their pictures to the association.
It was learned that FBO Productions, Incorporated, had sold 18 of its 30 program pictures to the KeithAlbee Orpheum Circuit but that it had not sold any to the theaters of Loew's, Incorporated. The other 12 pictures had not been sold in New York City for any run outside of the theaters on Broadway. Negotiations were concluded whereby the association purchased 12 pictures from that company for first run and 18 for run immediately after the Keith-Albee Orpheum Circuit. Negotiations also were successfully completed for purchasing 25 feature pictures from Pathe Exchange, Incorporated. Although the