Motion Picture News (Nov-Dec 1925)

November 2 8, 1925 2533 United Artists, M-G-M. Merger of Distribution Likely T.O.C.C. and M.P.T.O.A. Committee Wire Protests Ok New York, N. Y., November 19board of directors of United Artists, 1 following statement to William A. Jo News : "We hope to bring our negotiation middle of next week. We propose to both organizations (United Artists and fecting a healthy economy. "All of our pictures will in the fu merits and not in block form. Cannot are not yet worked out. (Signed) Jos Joseph M. Schenck, chairman of the n response to a query telegraphed the hnston, editor of The Motion Picture s to a successful conclusion by the combine the distributing offices of Metro-Goldwyn-Mayer) into one, ef ture as in the past be sold on their give you details of affiliation as same eph M. Schenck." Douglas Fairbanks, Mary Pickford and Charles Chaplin, (United Artists stars); Marcus Loew, (President of Metro-Goldwyn) ; Joseph M. Schenck, (Chairman, Board of Directors, United Artists); Hiram Abrams, (President of United Artists) and Nicholas M. Schenck, (Vice-president of Metro-Goldwyn. companies. It was the unanimous opinion that we bring to your attention the fact that this merger is another step in a well laid out scheme to bring about a trustification of our industry and Ave feel that you owe it to the public and the Independent Theatre Owners who have supported your artistic efforts and who have helped develop the prestige and influence that you now possess to prevent your being used for destructive and monopolistic purposes. Your previous experience with Famous Players-Lasky Company which compelled you to start an independent company will be repeated only with more disastrous effects to the public and to the theatre owners because the pictures in which you appear will be used to compel or force theatre owners to buy and use pictures of an inferior grade and quality issued by Metro-Goldwyn-Mayer Company in conjunction therewith. We do not feel that an artist of your standing and independence will subordinate your great initiative, creative ability and artistic effort hitherto displayed by you, for any monetary consideration, and in behalf of our public and ourselves plead with you to continue your independence for the furtherance and continuance of our industry along the lines of the greatest usefulness to our public and the country at large." A similar telegram was sent to Chaplin by O'Reilly and Cohen. Commenting on rumors to the effect that Chaplin was endeavoring to block the merger, Arthur Kelly, representing Mr. Chaplin in the East, and treasurer of United Artists, said : "Mr. Chaplin has been in San Francisco for some time, working on the scenario of his next picture. "He returned to Los Angeles on Wednesday of this week and is doubtless now taking part in the conferences. He has issued no statement, but I can say that if Mr. Chaplin agrees to the move it will be on the definite assurance that the aims for which United Artists was formed are not sacrificed. IT was generally conceded in New York this week that the physical distribution of United Artists would shortly be merged with MetroGoldwyn-Mayer as the result of negotiations now pending on the Coast, and likely to be completed at any moment. Among those concerned in the conferences on the Coast are Joseph M. Schenck, Hiram Abrams, Dennis F. 0 'Brien, Mary Pickford, Douglas Fairbanks, Charles Chaplin, for United Artists, and Nicholas M. Schenck, J. Kobert Rubin and Louis B. Mayer for Metro-Goldwyn-Mayer. Marcus Loew will leave Saturday, November 21, for Los Angeles, which gave further credence to the report that papers would be signed shortly. It is important to note, however, that any agreement arrived at now must necessarily be ratified by the boards of directors of both companies, and that therefore any final decision in the matter may not come for some time. An important development was the filing of telegrams by the directors and officers of the Theatre Owners Chamber of Commerce, New York City, to Charles Chaplin, Douglas Fairbanks and Mary Pickford, urging them to remain out of the merger. Similar action by the Administrative committee of the M. P. T. 0. A. followed on Wednesday, when a wire of the same general nature was dispatched to Miss Pickford and Mr. Fairbanks. The merger would save United Artists from ten to fifteen per cent in distribution cost, Joseph M. Schenck is quoted as having stated in Hollywood. On Saturday, November 14, Mr. Schenck issued the following statement: "This is in no sense an amalgamation as far as production is concerned. It is simply an economy measure to avoid duplication in distributing our pictures. United Artists and Metro-Goldwyn-Mayer will continue to produce independently, but we will each distribute our pictures through the new company which will make contracts with both organizations. It will be called 'United Artists-Metro-Goldwyn-Mayer Distribution Company.' "Some' few details remain to be worked out and the final papers will be signed in New York, because a vote of the board of directors of each company will be necessary to ratify the matter. But we are in accord on the main points and we are agreed that it will be an advantageous move for all concerned." One of the angles in the deal, according to discussion in New York, has to do with the foreign market. The merger, from this viewpoint, would give Metro-Goldwyn-Mayer a better distribution system abroad, as the United Artists foreign system is known to be one of the best. Following is the text of the telegram sent to Douglas Fairbanks and Mary Pickford by the Theatre Owners Chamber of Commerce of New York City, signed Charles L. O'Reilly, President and Sydney S. Cohen, Chairman of the Board of Directors : "The Board of Directors and officers of the Theatre Owners Chamber of Commerce met today to take up the reported merger of United Artists and Metro-Goldwyn-Mayer " In other words, he will want to be very sure that United Artists' pictures are sold separately and on their own merits; that they are not used to force the selling of other product; that the production policies and plans of its members remain free and independent of outside control ; and that the door is left open to leading artists who desire an independent release for their pictures on an unhampered basis."