Motion Picture News (Jul-Aug 1916)

398 MOTION PICTURE NEWS Vol. 14. No. 3 a managing director, executive secretary and credit secretary, elected at National Convention. Each shall serve for three years and shall be elected each year. ■■ The control of the organization shall be in the hands of twelve directors, six exhibitors and six manufacturers, which board shall meet monthly. There shall be twelve alternates elected who will take the place of directors when anyone is forced to be absent, in order that a full meeting be always assured. They shall also be elected in such a way that they retire at different times from office. " The executive committee will decide all questions if possible within one week after presented. Anyone dissatisfied with the decision of the executive committee may appeal to the Board of Directors, whose decision shall be final. " In order to create a commercial value for film service the following terms, prices and agreements shall be made a matter of contract between the exhibitors and manufacturers. " Prices of Film Service. — The current week in which a film is exhibited shall be known as service week and shall be from Sunday midnight to Sunday midnight. The physical condition of the film and other considerations make the film more valuable when first released, therefore film service shall be regulated in price on the basis of certain definite periods which shall be called first run, second run, third run, etc. The first run of a film shall be two full weeks of service weeks plus the part of the week prior to the two full service weeks, for example — if the film is released on Wednesday the balance of the week and two more full service weeks constitute the first run. "The second run shall be the third and fourth service weeks; the third run the fifth and sixth service weeks ; the fourth run the seventh and eighth service weeks, etc., so that each run except the first shall have a period of two full service weeks. " The film manufacturer shall make a definite price on the first run, another price on the second run, etc., and exhibitors then will be able to buy the film accordingly. Manufacturers are to hold strictly to the price they make on the film when they release it. " Great productions such as " The Battle Cry of Peace,' and ■ The Birth of a Nation,' not released in regular order are generally played on a percentage basis, therefore unless otherwise stipulated the percentage of box office receipts shall be divided as follows : 40 per cent, to the exhibitor and 60 per cent, to the manufacturer. On this class of productions, if priced to an exhibitor on a run basis, each run shall be by the month and not by the two-week period. " Terms. — -All film bills are due and payable one week in advance of the service week. Money or check must be in the film exchange before closing time on Saturday preceding. All film service not paid in advance shall be shipped C. O. D. until advance payments are made up. Film service bills shall be dated on Monday, a week in advance of service week. " Exhibitors who pay their film service one full week in advance of the service week shall receive a discount of 2 per cent, for cash, but this money must be in the office of the film company before the closing hour on Saturday preceding Monday, the date of billing. " When an exhibitor fails to pay bills or uses dishonest methods the exchange shall file a complaint to the executive committee and if they find the exhibitor guilty he shall be listed as poor pay and no exchanges shall furnish service except at an advance of 10 per cent, over regular prices and all film shall be shipped C. O. D. " There shall be no advance deposits except where an exhibitor contracts for a serial picture, he shall pay one-half the first day's service in advance, payable at the signing of the contract. This money shall be applied to the first episode. If the exhibitor cancels service before the serial starts he shall forfeit this advanced deposit as liquidated damages or penalty. " The Association shall compile a regular credit book of all exhibitors and manufacturers which shall be sold to exchanges and dealers. This book shall contain the rating of credit and paying habits of the exhibitor and a weekly report shall be made by all exchanges of any change in the credit of their customer or habits in paying. Exhibitor and Manufacturer Shall Protect Each Other " Protection. — The exhibitor and manufacturer shall in every way protect each other against senseless competition and over production having at all time in view the best service for the people. It shall be decided that the basis of the earnings of the m.otion picture theatre is fifty dollars per one thousand inhabitants per week, or $2,500 per one thousand inhabitants per year, this being the basis of the possible gross box office receipts. Every effort shall be made to regulate the business so that where the business is well taken care of no further motion picture theatre shall be erected, if possible to discourage same, and every effort be made to reserve the business for those who are in it, that they may allow it to progress in a constructive manner on sound, commercial principles instead of the wild theories practiced in the past. " Upon the above basis it will be possible to figure what the investment and running expenses should be for both the exhibitor and manufacturer. It shall be agreed that 25 per cent, of the gross box office receipts is a fair amount for the exhibitor to pay for film service per week and that 40 per cent, is too much. " Manufacturer and exhibitor shall not be allowed to cancel film service except one month's notice is given in advance and this shall apply to present contracts whether in the Association or not. When agreements are broken suitable penalties shall be enforced by the Association. All film service, express charges, paper, etc., shall, as much as possible, be agreed to in writing in order to prevent errors and disputes. How It Would All 'Work Out "How Would it All Work Out? — The manufacturer would know beforehand what his possible market is. It would be much simpler to fill our program and eliminate much dickering and bickering that we have at the present time. We could select programs more suitable and balance them easier, and that would make more business for the exhibitor and manufacturer. It would create a basis of credit and encourage the paying of bills and eliminate the dead beat. It would put the business of buying film on a competitive market and act as a sliding scale whereby a good film would command a good price and a bad film would naturally go to its proper level in price. '■ It would prevent over-buying by the exhibitor as he could determine exactly what he can afford to pay and buy for his wants, for it is as bad merchandising to over-buy as to underbuy and not give people what they deserve. " It would enable the film manufacturer to keep his bookings filled and without so many open dates as at present. A code or system could be instituted by which an exhibitor could tell at a glance what was open and available. The conference work between the exhibitor and manufacturer would soon place the business on a staple basis and it would immediately result in the motion picture business taking a new lease of life ; values would be increased a hundredfold ; time, labor and money saved. We would be respectable and commercialized." REEL FELLOWS CLUB OF CHICAGO NOW AN INFLUENTIAL ORGANIZATION By M. G. Watkins, Secretary, Reel Fellows IN the two and a half years of its meteoric existence the Reel Fellows Club of Chicago has won for itself an enviable position in the film world. Once a small group of picture men meeting semi-annually for a good time, it is now an influential club of recognized distinction. The two hundred members now conduct their famous banquets, receptions, and balls in their own sumptuous club rooms. The Reel Fellows will take a prominent part in the convention festivities. Their club rooms on the " B " floor of the Morrison Hotel will be open day and night for the convenience of visitors. Club tallyhos will pi}' between the Morrison and the Coliseum continuously. The Reel Fellows booth at the big show will be at the disposal of out-of-town guests. A formal ball will be held by the Reel Fellows in honor of Alice Brady, World Film star. In these and other ways the Reel Fellows will do their share toward making the convention a success. The Reel Fellows Club has been more than a social organization. It. has rendered a most valuable service to the industry by bringing together, under pleasant auspices, men engaged in different branches of the business. The manufacturer-member has acquired a keener appreciation of the problems confronting the