Motion Picture News (Nov-Dec 1917)

December IS, 1917 MOTION PICTURE NEWS 4143 "Half Million Waste a Week," Declares Mastbaum In Open Telegram to Leading Producers Philadelphian Alleges Exhibitor Is Carrying Tremendous Burden of Waste — Amalgamation Is Offered as the Cure A HAND grenade that exploded with terrific force was turned into film ranks last week by Stanley V. Mastbaum, the prominent Philadelphia exhibitor. It came in the form of an open telegram to fifteen of the leading producers and distributors and the trade press. Charging a waste of a half million dollars in overproduction, overdistributing and overadvertising, Mr. Mastbaum declares that the exhibitor is carrying this burden and asks, " How much longer can he do so ? " Bringing figures to the support of his charge, the Philadelphian then declares amalgamation of effort to reduce duplication of effort to be the only cure for present conditions. Many Opinions A few of the expressions of opinion brought forth from film men by Mr. Mastbaum's telegram, will be found on the opposite page. The telegram follows, in full: Five hundred thousand dollars is wasted weekly by overproduction, overadvertising, too many exchanges, which necessarily means that the exhibitor must pay. How long can he continue to pay? What will happen when he cannot continue to pay? Do you know that the producers are conducting their business in open warfare on each other? The exhibitor must pay for all the tremendous salaries paid by the manufacturers in every branch of the business. What is the solution ? Who will solve it? The crisis will soon be at hand. There is but little time to save the motion picture industry from several severe setbacks. Should these be temporarily avoided, others will come and will continue until the motion picture industry is standardized on a sound basis. In the meantime the exhibitor must pay. The manufacturers cannot help the exhibitor because the manufacturers have made no effort to help themselves. The trouble is at the manufacturer's end, not the exhibitors. There are three factors that make for success in any line — observation, deduction, concentration. Why not apply them to this business? Features released per month by various organizations, based on any eight weeks' period for two months, October, 1917, and November, 1917: Artcraft, 2; Bluebird, 4 ; Butterfly, 4 ; Fox, 6 ; Goldwyn, 2 ; Metro, 4 ; Mutual, 8 ; Paramount, 8 ; Pathe, 4 ; Perfection, 4; Select, 4; Triangle, 8; Vitagraph, 4; World, 4; miscellaneous, state rights, etc., 14. Total, 80. This makes a total of 80 pictures purchased during each four-week period at a negative cost running all the way from $12,000 to $160,000 per feature. It is true that there are very few made as cheap as $12,000 and very few made as high in cost as $160,000. A fair average negative cost, however, would be about $40,000; so that, taking this four-week period and dividing it into 80, we find that we are manufacturing in America at the present time 20 feature negatives at an average cost of $40,000 each, amounting to $800,000 per week in negative cost. In addition to this negative cost, there is a positive cost of prints to be added. Anywhere from 20 to 45 prints are used on each production ; a fair average would be 30 positive prints. Positive prints on a five-reel subject cost at the present time $225 each ; therefore the positive prints that are being used would cost $6,750, and 20 times $6,750 would amount to $135,000 for positive prints of features only. The overhead for the handling of these features is immense. In each territory there are at least 12 offices, meaning salaries for 12 managers, 24 solicitors, 12 office rents, and 12 separate and distinct inspecting forces, shippers, nightmen, etc. ; and all this in at least 25 points in the United States and Canada. The American market cannot possibly absorb these expenses. The burden is placed on the American public and the ex HC. VARNER, of North Carolina, • legislative representative for the A. E. A., declares the planned Ochs gathering for Washington on December 11, 12, 13, to be a move that "will only gum up the machinery so badly that it will be impossible for the rest of us to accomplish anything for the relief of the exhibitors." Further, in recalling the history of the last tax fight in Washington, Mr. Varner declares that he doubts Lee Ochs sincerity as, "it is not my opinion that Ochs wants to do anything except stall the exhibitors and make a big noise." The letter, which was written to Samuel Bullock, chairman of the Cleveland Exhibitors' Committee, follows : November 30, 1917. Mr. Sam Bullock, Motion Picture Theatre, Cleveland, Ohio. Dear Mr. Bullock: I am in receipt of the statement that you have issued and sent to the trade papers, and I have read your note with interest. It seems to me that we are in a very bad condition. I believe that there ought to be a getting together of the exhibitors; but I seriously doubt the advisability of the Washington meeting, especially under the auspices of Lee A. Ochs and the Motion Picture Exhibitors' League. I doubt their sincerity, as it was only last May this same aggregation assembled in Washington, and in a solemn meeting behind closed doors prepared a brief advocating that a tax of 10 per cent, be placed on exhibitors, or rather they called it the Canadian system. And I was the only man present that objected to this scheme, and I continued to object and continued to fight, and this same crowd in New York declared me an outlaw and attempted to destroy me — that is, destroy my influence with Senator Simmons and the Senate Finance Committee. Therefore, I cannot believe in their sincerity. They must be born again, that is born of the new spirit before they will represent the honest hibitors. Not over nine features could be legitimately absorbed, and if the negative cost were reduced and carried by nine features, there would be remarkable saving for the exhibitor and the manufacturer. If distribution, now handled by not less than twelve distributors, were concentrated in not more than two, or better yet, in one center, an immense overhead could be saved for the exchanges, and thus for the exhibitors. It would be a practical saving in our business by co-operation and concentrated efforts of not less than $500,000 each week, as follows : Saving of 10 negative costs at $40,000 each, which would amount to $400,000 each week. Saving 10 times 35 positive prints, which would amount to $67,500. Saving of overhead and operation of exchanges by concentration, which at a very modest estimate would be $32,500 per week. In total this is an estimated saving of $500,000 per week. Why should we, as exhibitors, carry an unnecessary burden of $500,000 per week? No other line of business would. These conditions can be cured by amalgamation. Stanley V. Mastbaum. Philadelphia. exhibitors of the nation successfully. About the only thing that I expect from the Washington meeting is that they will gum up the machinery so bad that it will be impossible for the rest of us to accomplish anything for the relief of the exhibitors of the nation. It is impossible to tell Lee Ochs anything, especially is this true when he is compelled to defend upon the manufacturers of films for advertising to support the Exhibitors' Trade Review, and when it comes to this point naturally his human nature exerts itself, and he is not likely to cut his own throat — that, knowingly do it. I don't know what I shall do, but I hardly think that I shall attend, this meeting, as it is not my opinion that Ochs wants to do anything except stall the exhibitors and make a big noise, and try to impress the exhibitors of the country that he is their friend. Ochs knows who feeds him, and he is going to listen to his master's voice and not commit suicide if he knows it. The only hope of the exhibitors of this country is through the new organization, the American Exhibitors' Association. If the bona fide exhibitors of the nation rally around that association they can make their influence felt, not only in Washington, but in the offices of the big film manufacturers of the country. Personally, I have nothing against the film manufacturers and would not hurt a hair on their heads, but I do not believe in surrendering the rights of the exhibitors to the manufacturer or to anybody else. I think we should all work for the common good of the industry. With best wishes and highest personal regards, I am Very truly yours, H. C VARNER. Florence Atkinson Painfully Burned in Accident Florence Atkinson, who has the role of the vampire in " The Marionettes," which Clara Kimball Young's company is finishing, was painfully burned about the head, arms and shoulders on Friday of last week at the Thanhouser Studio in New Rochelle, where the company is working. Capital Meeting a Blunder, Says Varner "Will Only Gum Up the Machinery," Says North Carolinian, Who Doubts Ochs's Sincerity and Recalls Some History