Motion Picture News (Mar-Apr 1916)

April 29, 1916. MOTIONPICTURENEWS 2505 V-L-S-E Books Show Practically No Bad Debt Loss Less Than One Fortieth of One Per Cent. Is Record for First Year — Figures Indicate Appreciation of Business Methods by Exhibitors — Open Booking PoHcy, Which Gives a Theatre Manager What He Wants When He Wants It and for as Long as He Wants It, Is Factor in Success of Producer and Picture Showman IF there ever existed, in any quarter, any doubt as to the reliability and responsibility of the exhibitors of this country and Canada, such doubt must be dispelled by the record of the V-L-S-E, which has just closed the first year of its business. This record shows that the bad debts of the Big Four amount to less than onefortieth of 1 per cent. This accomplishment assumes added force when viewed in the light that, contrary to the prevalent practice of insisting upon an iron-bound contract from the exhibitor, accompanied by a deposit covering service for a month or two in advance, the V-L-S-E requires no contracts nor any deposits. It is most significant, also, when it is considered that statisticians claim that there is at least a million dollars of exhibitors' accounts annually charged off in the film industry. Discussing this interesting record, as well as other phases of the organization's achievements, Walter W. Irwin, general manager of the V-L-S-E, on the company's first anniversary, this week, said : "The record of this organization in having on its books at the close of a large volume of business for the first year, less than one-fortieth of 1 per cent, in bad debts, is said to be unheard of in the film industry — in fact, it is believed to be unparalleled in any commercial enterprise. Compliment to Exhibitors "The compliment, however, is not so much due to this organization as it is to the exhibitors, for the figures prove that the exhibiting end of the film business is composed of men of as great a degree of substantiality and integrity as can be found in any other commercial line of equal numbers. "The experience of this company shows that the exhibitor thoroughly appreciates business methods and wants to abide by them — in fact, seeks straightfor\vard methods with which to conduct his business relations. We attribute one of the causes of the very substantial and constant growth of the business of the V-L-S-E to this appreciation and desire on the part of the exhibitor. "We, in turn, believe that we are doing our part by running our business on our own money, rather than on that of our exhibitors. "Upon the inception of this company it was recognized that it was not only commercially unsound, but absolutely unfair, to acquire several hundreds of thousands of exhibitors' money by forced deposits on contracts, and then to use the money in producing the film which is sold them. "Moreover, it was the judgment of this company that it was not necessary to acquire that money as a protection against exhibitors' accounts. On the contrary, it was felt that the exhibitor was daily becoming a more substantial and efficient man of business and that if he was treated accordingly he would not be found wanting. "It is, therefore, a pleasure to announce, not only that the judgment of the company was correct, but that the greatest majority of exhibitors are business men of dependability far above the average — a fact that is conclusively proven by the books of this organization. "Although the V-L-S-E does not ask the exhibitor to assist in financing its operations, it does give an exhibitor an all-potent voice in those operations. System Meets Exhibitor Needs "I refer to the open booking policy by which an exhibitor can have what he wants, when he wants it, and for as long as he wants it ; in other words, the system by which he is able to always choose a picture best suited to his neighborhood and his clientele, and to book it solely according to its merit, without being compelled to take several features of mediocre quality in order to secure one that he really wants and needs. "Full appreciation of this policy is being evidenced to a greater extent every day. Exhibitors constantly report that they want a variety of pictures — that is, a variety of themes and stars — that their respective neighborhoods and clienteles have their dislikes and peculiarities, with which they, as the neighborhood exhibitor, are best acquainted. Where they are able to see the pictures screened, and book those best suited for their purpose, without having any other pictures tied to them, they are in a position to please their patrons almost invariably. "Moreover, where manufacturers are producing a program which is sold by the contract system on the flat rate basis, the producer of an expensive picture or a picture of decided merit received no greater return than the maker of a picture costing only half as much or quite ordinary as to merit. Consequently, the incentive on the part of the producer to strain for greater merit, and to spend a small fortune, if necessary, to attain it. does not exist. "In this company, each manufacturer is in the keenest kind of competition, for he receives only the proceeds of his own product. Under no circumstances is the picture of one manufacturer tied to the picture of any other manufacturer. Therefore, the weekly financial statement which each manufacturer receives is so strong an argument for endeavoring to make better and better pictures that no oratory or written word is ever necessary. Box Office Value Rules Price "But to make this policy of the utmost benefit it is likewise necessary to see to it that every picture is sold according to its box-office value — that is, according to its drawing power for the particular theatre hooking it. "This we do, and this is but simple commercial justice, for obviously it is an injus tice to insist upon an exhibitor paying as much for a picture of ordinary quality as for one of extraordinary quality, and obviously all pictures cannot be of the same degree of merit. No product depending solely upon the human equation can be equal at all times. "This policy of measuring our product solely by its merit has been applied to every branch of the Big Four's affairs. It has been its inexorable ruling in regard to all of its dealings, not only with the manufacturers and exhibitors, but with its employes as well. "With between three and four hundred employes, the fact stands out that there have been only three resignations in a year's time, and very few dismissals, for the home office has preferred to err on the side of retaining an employe than in that of dismissing him. "Permanency of organization means advancement from the ranks, and this policy has been strictly adhered to and proven of great value. "Of the twenty-four offices conducted by this compan}-, sixteen are managed by men advanced from the ranks of salesmen; six bookkeepers who showed the desire to learn, and whose branch managers had the good_ judgment to take them abouf at night and instruct them, have likewise been advanced to the ranks of the sales force. Ten shipping clerks have similarly been promoted. The assistant general manager was first a branch manager, then a division manager, and then brought to the home office. "Salesmen work on a system that is an absolutely standardized gauge of each one's efficiencv. Parentheticallv. it might be said that this system also reacts to the advantage of the exhibitor in that it permits a salesman to give the exhibitor the type of individual, personal service that will" "help him help himself most efl^ectively. It Is Up to Salesman "Such co-operation is predicated on the principle that a salesman's duty is only half performed when he has sold our goods to the exhibitor. The other half, equally as important, is to see to it that the exhibitor resells to his substantial advantage. In other words, a salesman on our force is not only held responsible for the volume of business he does, but for the degree of success attained by each exhibitor in his territor}-. "Another policy which has had its influence in the growth of this company and in the calibre of its service to its exhibitors is the profit-sharing arrangement whereby everyone from the janitress up receives a substantial portion of the net profits of the company, as well as a salary, so that each is interested, not only in his own efficiency, but in the efficiency of everyone else. "In other words, an exhibitor never finds it a trouble for anyone connected with this organization to do anything to further his interests. In this way we endeavor to make