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Chain Theater Control ^> ^> ^> ^> ^> 353
izations. With losses ranging upward to $500,000 per week in a single chain, it became imperative to take steps to effect savings wherever possible and to make every effort to increase theater attendance. Consideration was given to the reduction of operating charges, and as a result of experimentations in this respect substantial savings were effected. Programs were bolstered by various types of stage presentations where justified, and an effort was made to devise more effective exploitation. Of singular importance was the attempt made by two of the chains to classify pictures according to types of audience. Almost every chain made an attempt to acquire circuit rights for individual pictures and franchise agreements covering producers' entire outputs. Only the best pictures, however, were shown.
Despite these devices and an apparent realization on the part of circuit executives that the public could be induced to attend theaters only when the pictures were interesting and of high quality, chains operating on a national scale failed to earn adequate returns on their investments. A number of factors contributed to this lack of success. As has been said, in many cases it is likely that unreasonably high prices had been paid for acquired theaters, and the costs of constructing new theaters had been excessive. Many centers and districts were overseated. In a very large number of theaters in which high investments had been placed, it was thought necessary to present elaborate programs; these programs naturally increased operating costs. In the acquisition of theaters the national chains had been forced to purchase many small and undesirable theaters, which were, as a rule, units of circuits taken over as a whole. In many instances, the chains were unable to operate these theaters profitably. Another important reason for the failure of chains to operate at a profit was the increased cost of theater operation which came with the advent of sound. This increase resulted from amortization and service charges on sound equipment, and from increased rentals charged for sound films, both features and short subjects.