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adapted for film production, would be discontinued immediately.
The legitimate theaters controlled by the Brewster Pictures Corporation were operated by a separate corporation. They were operated for a direct profit and not according to a principle of joint cost. The management of these theaters, although divorced from the parent company, was subjected to the latter's supervision. This policy was deemed necessary to insure maximum cooperation between the theater-operating company and the production department.
Not all the plays staged in the legitimate theaters of the Brewster Pictures Corporation would be sponsored by the studio. On the contrary, a majority of such plays would be produced under the direction of the theater management. In the event that the plays presented on the legitimate stage developed motion picture possibilities, they would be made available to the production department before being offered to other studios. The production department of the Brewster Pictures Corporation would also be granted the right to experiment, within reason, with changes that might improve the film version but in no wise harm the stage play.
No definite plan had been evolved for the allocation of costs. However, since the company expected to derive a profit from its stage venture, a definite system of allocating costs would be necessary. Among the many items and variables to be considered were : theater carrying and operating charges; studio costs, including salaries of contributing artists and executives whose services were more valuable to picture production than to stage production; losses or profits on plays staged by the studio; costs resulting from the presentation of plays that suffered because of the use of picture actors and actresses instead of stage players; and promotional costsTTn the allocation of promotional costs an apportionment had to be made as between the immediate cost of promoting a stage play and the value carried, over from that expenditure to the future promotion of the play as a motion picture.