Motion Picture Daily (Jan-Mar 1934)

MOTION PICTURE DAILY Tuesday, January 23, 193'' Baby, actor and matinee idol — they're all W. Ray Johnston, believe it or not. From Iowa to Code Authority THE destinies of Jayhawkers appear to be written in the age at which they leave Iowa to enter the world. If they remain on the native heath too long to be of use to the world, chances are three, two and even that they will wind up their days in Southern California, putting in a punctual appearance at the annual Iowa Day picnic at Pasadena or "San Berdoo" and, betwixt picnics, clucking their tongues at tales >;6f Hollywood abandon! If, however, they clear out early, likely as not they become useful citizens in the eastern capitals of commerce and finance and have articles written about them in the Waterloo, (la.), Reporter, headed "Local Boy Makes Good In Big City." Such was the experience of W. Ray Johnston, president of Monogram, who left Waterloo, at 22 and is now observing his 20th eventful year in the industry. Business associates of his shudder even to this day when they contemplate what might have been his fate had Tohnston remained in Iowa even one year more than he did. Toward the close of 1891, the little town of Bristow looked over the record and, finding itself to be at something of a disadvantage in the matter of contributing prominent citizens to the world of affairs, resolved to remedy the matter during the New Year. Accordingly, on January 2, 1892, Johnston was ushered into the world and, three short years later, gave the first evidence of the gifts of wisdom and discernment which were to mark his advances later in life by quitting Bristow in favor of Janesville, la., where he remaine_d to graduate, cum laude, from the local high school at the age of sixteen. Another early manifestation of his wisdom was his choice, after graduating from high school, of the Waterloo College of Commerce at Waterloo, for further schooling. Why any native Iowan should choose a commercial college for purposes of education when everyone knew right well that such learning was about as essential to realizing Iowa's finest rewards to be gained from corn and hog raising as a set of pearl buttons would be to a fan dancer, was a matter for no little wonder to the folks back in Janesville. They wagged their heads skeptically, back in the home town, and probably thought the Johnston boy a little "peculiar" and likely to come to no Rood. But the Johnston boy didn't mind. He stuck to his minority guns — and By SHERWIN A. KANE his text books — like a good independent, and when the president of the Waterloo College of Commerce was called upon for a letter of recommendation some years later, he wrote that Ray Johnston was the most "conscientious" student ever enrolled at the school and predicted fine things for his future. His business career began concurrently with his Waterloo commerce schooling. Outside of class hours he worked in the mailing department of the Daily Reporter, and on the completion of his course became assistant to the circulation manager, a Paul Swift who is now in the employ of Warners. After a brief fling in the world of journalism, Johnston was offered, and accepted, the post of secretary to the manager of the Citizens' Gas & Electric Co. of Waterloo, and several years later became secretary to a prominent local banker whose interests served to bring Johnston to the secretaryship of the Vaughan Land Co., the Western Realty and Investment Co. and the Iowa Mausoleum Co., all of Waterloo. In the latter company, at 19, he was placed in charge of a small army of 35 mausoleum salesmen and a construction crew of several hundred men engaged in filling the orders turned in by their brothers for community mausoleums throughout Iowa, Nebraska, Kansas and Minnesota. Several lessons to prove of value to the enterprising Johnston evolved from this experience. The first, and perhaps most important, lesson was that mausoleum customers, regardless of how well satisfied they may be, never send in a repeat order. Hence, an obvious conclusion was that it was far better business to engage in production and sale of a commodity that is pleasing to the brethren of the mausoleum buyers who remain behind them and are apt to call for successive servings after the first. The second lesson gave him an impression of the ultimate fate which awaits Iowans who cling too long to the native heath and so, when a business acquaintance, one Wilbert Shallenberger, an executive of the Thanhouser, Mutual, Majestic, New York Motion and Keystone Film companies, remarked to Johnston one day that the position of confidential secreta^' to one of his business associates was open, Johnston bent the opportunity to his purpose and, early in 1914, departed for New York to embark on his film industry career as the aide of Charles J. Hite. It required only a few months for Johnston to master trade language and learn how much magic there was about the magic lantern. At the end of his first two months he was treasurer of Syndicate Film Co., which was organized to distribute "The Million Dollar Mystery," the first of the notable serial pictures and one of the most successful of them all. It represented a negative cost of $70,000 and grossed $1,600,000, according to the aging records. This baptism in film finance is held by his friends to account for Johnston's idea of introducing to picture customers the famous Oklahoma bandit, Al Jennings, a one-time candidate for governor of that state. Jennings was featured in the "thriller," "Beating Back," the success of which aided Johnston's uninterrupted march onward and upward in film circles. Hite's interests extended beyond production into exhibition, and Johnston's knowledge of the industry was rounded out as a result of this when he was assigned by Hite to supervise the operation of two New Rochelle, N. Y., houses which had been dipping into the red ink well too long and too frequently. He looked over the situation, discovered that overhead was too high for the calibre of features being served the houses, that the public was "shopping for its entertainment"— even in 1915 — and no longer going to the theatre just to see "a movie." He made the necessary adjustments and returned to headquarters with the two theatres showing a profit. Anxious to learn all ends of the business, Johnston, thereafter, went on the payroll of the Thanhouser company as an actor for six months. He succeeded, during this interlude, in getting the actor's "slant" on production. However, his advent on the stages did not disturb any of the reigning stars of the day, that is, not after they had seen the "rushes" on his first effort. A few months later he was made manager of the newly opened That houser studio at Jacksonville, Fl Unsullied by a Hollywood influeno Johnston returned to New York the summer of 1916, still equipped t be of even greater use to the indu; try. He became assistant treasurer c Thanhouser and, later, president Big Productions Film Corp. In 191! he joined W. E. Shallenberger, win in the meantime, had organized Ai row Film and remained with this con: pany for seven years, eventually b< coming its vice-president and gener; sales manager. In Januarv. 1924, Johnston orgat ized Rayart Pictures and. through i succeeded in turning a $10,000 stoc investment into a business gross c $1,250,000 by the time talking pit tures arrived in 1927. As major coit panies experimented or wondered, ; the case mav be. with the new pre duction and exhibition factor intrt, duced by sound, Johnston perceive' an opportunitv to be exercised du ing the period in which both studic and theatres equipped themselves fo sound. His idea was to produce an at. nual schedule of 24 silent "western'' to service the thousands of exhibitoi who would have a need for this tyf of product while major companiV were marking time, learning th technique of sound and acquirir equipment. To better serve his purpose, he a lied himself with Trem Carr, a CaE fornia producer, who was to hai( charge of production while Johnsto retained business administration furu tions in New York. Carr was active voung producer on the HolN wood scene since 1922. Like Johi ston. he hailed from a small mii3 western town — Trenton, 111., and w; educated at the state university. ¥ became vice president of Rayart. The venture was a success an when sound finally assumed its rig place in the industry, Johnston an Rayart were prepared for the ne order. In 1931. he called in the dir tributors of his product, who were i dependent exchangemen througho the country, and formed a cooperati' I organization known as Monogra Pictures, patterned after the stru ture of the old First National organ zation. His production and distrib tion organization were merged c operatively to make and sell a tal ing picture program of 28 featurt Franchise holders were named in tl new organization, each paying a p rata share of the cost of each pi (.Continued on page 22) ru.