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control of sales expense remained largely with the branch managers, who were considered to be in a better position to supervise the visits of the salesmen. The executives desired up-to-date information, however, on contracts, bookings, and play dates which would enable them to instruct and direct the activities of the branches.
The sales in key cities were particularly important in the early season and were watched carefully because of their effect upon subsequent runs. There were estimated to be between 700 and 800 accounts in key cities, cities of more than 25,000 population, in which the initial exhibition of a feature motion picture was given and in which a showing had an additional value to the company from the advertising of the picture. The comparative value of different theaters in a key city varied according to such factors as the location, the size, the entertainment policy, and the management. Generally speaking, the longer the period of exhibition in an important first-run theater in a key city, the greater was the value of such exhibition to the Pathe Exchange, Incorporated.
Under the system of control, a special book register was prepared for recording the contracts, bookings, rentals, and play dates in the key cities. The cities were listed by branch territories, and first-run contracts were recorded as obtained. The record for each city showed the theaters operating, the classification as to run, the seating capacity, past rentals, and other data on the competitive situation. With this record the sales executives were enabled to direct the efforts of the division managers, branch managers, and salesmen towards the strengthening of the company's position in this important part of the market.
Potential accounts in each territory were maintained in card form. Similar records were maintained at each branch. Contracts, as approved, with data relative to rentals, runs, and playing arrangements, were posted to the card accounts as received. This record disclosed sales possibilities, thereby furnishing a basis for instructing the branch manager as to