Motion Picture News (Oct-Dec 1918)

3200 Motion Picture News uiiiBMiniMwniwiimiuniiuwuiiiuiuuuiMiiniiiiiMiiinimmiuiiiiMiiiMiimiiiiuuiiininumiiiimiuiimuuwiiiuiiM^^ THE READER HAS HIS SA Y Texas Exhibitor Declares Motion Picture Business Is on Verge of War LYRIC THEATRE Gwynn & Byar, Props. Terrell, Texas. November 11, 1918. Mr. W. A. Johnston, Editor MOTION PICTURE NEWS, New York, N. Y. Dear Sir: In regard to your card of recent date beg to advise that I’ve been a reader of MOTION PICTURE NEWS ever since it’s been published under that title and even prior to the date of changing its name, for some five or six years. You will find our subscription listed under Firm name or Theatre on this letterhead. But this part of this communication is for your personal information. You, of course, know that the Paramount issues a periodical under title of “ Paramount Progress Advance,” which in itself is a very interesting publication, and is promoted and distributed for the mercenary purpose of self exploitation. The exhibitor who uses Paramount pictures finds considerable in its covers that he can use to good advantage. But this is not what I’m after telling about. The mention of this periodical is by the way of summary that will be found in the ensuing communication. In a copy — November 7, I believe, it was the last issue — was a lengthy article from one Mr. Adolph Zukor, taken from a theatrical paper that few, if any, moving picture exhibitors read, or subscribe for. Mr. Zukor was writing about the Evil of the Manufacturers, Producers and Exhibitors’ League, or amalgamation. From time immemorial we’ve been taught that “ In union there’s strength,” but of course if two unions are organized and they work in opposition the weaker of the two must ultimately fail. The world’s war has demonstrated this fact. The strikes of labor organizations have demonstrated it. so we conceded that the strongest party will be victorious. We are on the verge of war in the picture business. The causes of this war will be discussed in much the same terms — in every branch of the service — as is the world’s war that is being fought with powder and shells. WHO STARTED THIS FILM WAR? The principal defense of the old line companies will be that the Exhibitors started the war, by encroaching on the rights of the Producer. In one sense of the word they will be right. While the exhibitor will contend that the manufacturer or producer started the battle, and they too will be right; and at the same time both will be wrong, as neither have started the fight, that only time can tell of the end. This war is started by some men who, from various causes, have found themselves without jobs. Being familiar with the picture business and its details, they have created positions for themselves, which, according to my view as an exhibitor, will result favorably for the exhibitors, but according to Mr. Zukor, will be of distinct disadvantage to the exhibitor, and reading between the lines of his communication will eventually be put out of business (the firing of the first gun). With the organization of the First National Exhibitors' Circuit and the United Theatres of America, the first gun was fired. With Mr. Zukor’s letter comes the retaliatory barrage of defense. The War is on! Who will be Victorious? Mr. Zukor says the old line must go into the exhibiting business to protect its interest, since the exhibitor has become a producer. This carries us back to a period between 1910 and 1912, when a producers’ organization had become so strong financially, that it endeavored to dictate the policy of the exhibitor. You remember these days, Mr. Johnston, when your publication looked like it did during the influenza epidemic, then that organization was so strong that it told we exhibitors we must use their service and nothing else. It was their intention to operate all the exchanges; they pretty nearly got that branch of the service. Then they intended to do their exhibiting, thereby gaining control of the entire industry. It failed to materialize, which was broken up by independent producers and the organization of another company. That Big Company is today distributing films and that’s about all. THE’REAL CAUSE OF THE WAR Now comes another octopus that threatens the entire industry with dire vengeance. Not realizing that they themselves are wholly responsible for the existing conditions. They have relied wholly on their autocratic powers to subdue and humiliate the exhibitor who is wholly responsible for their success, and who will ultimately be responsible for their failure. But the exhibitor will have a harder struggle against this organization than against the old one. But the fight had to come. And the exhibitors must become firmly united to drive them to abdication. As this war will include a factor that they didn’t have to contend with before. That is the high salaried actor. He has contracts that must expire before he can join the opposing ranks, and when he leaves his autocratic employers he must come down to earth for a breathing spell before he can enter the ranks of the exhibitor-producer unions. But he will be better off in his new position than in his old one, as his picture must be produced at his own expense and must be up to, or supersede the standard set by the exhibitors. Then if they are worth the million dollar salaries they are demanding they can get them. The exhibitors, under present conditions, have had to bend every effort to make ends meet. Competition in the producers’ ranks has not been beneficial to the exhibitor. As one concern, who organized about five years ago, got a corner on the star market, they made these high salaries and then bragged about how much they paid a star, advertising them as a million-dollar beauty, or the man with a hundred-thousand-dollar face. Of course the exhibitor has to pay this, plus a fat excess to support the promoters and pay a long interest on money invested. THE REMEDY The remedy has been discovered, and if I’m any criterion, will be the salvation of the exhibitor. With two exhibitors’ organizations now operating and ready to operate, the exhibitor begins to see clear sailing ahead. The heads of these organizations know that the exhibitor is responsible for the success of any star. Take an unknown star, put her or him in a picture, their first pictures are the ones that count. If they work in a picture that fits the character, they are a success, if ill-fitted they fail. But if they are a success the news travels fast. They become immediate favorites. Consequently, their pictures immediately advance from 50 to 300 per cent in rentals. They are not sold at the same rate to help balance up a program that loses the exhibitor money daily, but are used as a club to force the exhibitor to take the inferior. In our organizations we see a chance to get away from this, and to obtain an evenly balanced program at a price that is consistent. And then too, when we promote a star we are boosting our own business. As in the case of Charlie Chaplin with First National. At prices we pay for his pictures on our First National contract, we pay less for Chaplin at $1,000,000 salary than we did on a $670,000 salary with the Mutual and his first two pictures are just three or four times as good as any of his previous productions. If Paramount was handling Mr. Chaplin’s productions at above mentioned salaries we would be paying in excess of 250 per cent of what we are now paying. It’s these positive proofs that have opened the exhibitors’ eyes, and started the unionizing of exhibitors. Mr. Zukor says Specialization is Insurance. In which instance we can agree with him wholly. And furthermore we can sight him to one of the richest organizations in the United States that was having the same trouble in its earlier days, that his is experiencing right now. The Standard Oil Company, for instance, at one time sold its products to agents to handle for them, but eventually they had to take over the distribution of its products, and it was the making of them. The same is true of the steel corporations — they produce and distribute, and very successfully, but in order to do this they have put in competent men who specialize heads of each department. It would be quite a disgrace to the exhibitors if they couldn’t take men who have made their living in this business and discount the methods employed by the old line companies now producing and distributing by at least 100 per cent, and save 1,000 per cent over their slack methods, thus the exhibitor in these two items make 100 per cent profit on rentals on each picture he runs. Thus his franchise is a profitable investment because his franchise costs him money, and this money is used to operate on. He gets the benefit of improved service, reduced rental rates, always knows what his service is going to cost him, as negative cost is figured by percentage allotted him. On the other hand he puts up an advance deposit that the old line operate on and he gets nothing; while in reality a stockholder, his investment is not accruing an earning, he gets no reduction in service but promotes the star through his efforts, and has his rentals increased. He’s the goat. Mr. Zukor says under the Exhibitors-Producers plan if $100,000 will make a picture that will get the money he won’t spend $125,000 making that picture, even if the type of picture requires that amount. But he has evidently not acquainted himself with the facts that the exhibitor has established a standard that the producing end must meet. And it’s a cinch that the Paramount has no adopted standard for even their highest class pictures, as some are so sorry (mediocre) that we exhibitors hide when our patrons come out. They can pick up most every trade journal and read the opinion of the reviewers, and will find the criticism of their pictures most unfavorable. They have three stars that are now working on their reputation, and unless they are worked in more popular subjects than the recent releases, their popularity is going to fail. We exhibitors see it and our patrons see it. We see the $100-a-week star forcing the higher priced star out of his popularity. Business judgment prompts me to withhold the names of some I have in mind. If I mentioned them it would only be the means of encouraging the exchanges to tack on an additional 50 per cent rental fee. We exhibitors will gladly take on any of the old lines as competitors and unless they improve their present service they will be easy competition, and some of us small town exhibitors will buy some expensive equipment cheap at a sheriff’s sale. Before they’ve been in the exhibiting business very long but as in all things we must give credit, where credit is due, Mr. Zukor certainly forced all competing producers to improve their service, and thereby did a great thing for the exhibitors in general. And if he had only had foresight enough to take the exhibitor in as a silent partner and furnished him $10 features at $10 instead of boosting them to $30 or $40 or even $50 he wouldn’t have had occasion to be making this Holler. Like other autocratic crowned heads he feels himself slipping. Respectfully, (Signed) E. L. BYAR. A Whale of a iVail from a Small Town Exhibitor with a Big Toivn Voice Leesburg, Ohio. November 16. 1918. MOTION PICTURE NEWS, New York, N. Y. Gentlemen : This is a wail of anguish from a real SMALL town exhibitor. The agony is caused by the notice from the First National, of which I am a franchise holder, regarding the signing of the Pickford contract. That was the final straw. The First National was grasped by many as a straw to save the little fellows from being exterminated. Now they go to work and buy pictures that will cost more than the F. P. Lasky Pickford’s cost. It means increased prices for Pickford productions, and as Mary is losing out in many places, it simply can’t be done. Further, it was sure an awful “ bull.’ Every star in the country will now hold out forever and figure themselves at about 200 per cent their actual worth. It looks to me like the beginning of the end. Frankly, I am worried and about ready to fly the coop.” Would like to see your comment on the action of the First National. They seem to feel that they can buy anything at any price and then turn to the franchise holders and say ” cough up ! ” Yours truly, (Signed) CARROLL E. KING. p. S. — It was a nice thing to " pull ” right at the hour when the industry is striving for a Airman Killed After Making Scenes for Rapf A few days after he had completed a series of daring stunts for the Harry Rapf photoplay production, “Wanted for Murder,” shortly to be released, Allen Adams, a United States Government air pilot, attached to the ordnance department, was killed at Central Park, L. I., Monday, November 18, when his plane, in which he had just started on a flight, became unmanageable and crashed to the ground. Elaine Hammerstein is featured in the Rapf production and Frank Crane directed it.