Motography (Jan-Jun 1918)

June 8, 1918 MOTOGRAPHY 1083 $750,000 Involved in Paralta Deal ORGANIZERS GET THIS SUM FOR NINE MONTHS* WORK THREE-QUARTERS of a million dollars to three men for nine months' work — that is the sum said to have been received for their interest in Paralta Plays, Inc., by Carl Anderson, Nat. I. Brown and Robert T. Kane from John E. DeWolf and Herman Katz. Mr. De Wolf is president and Mr. Katz treasurer of the company now. When the idea of Paralta Plays, Inc., was conceived by Messrs. Anderson, Brown and Kane, their project was financed by Mr. De Wolf and Mr. Katz. The evolution of the concern is at once both interesting and constructive as an exemplification of good business organization. The idea of a corporation controlling a large studio, wherein pictures would be made for other concerns as well as for itself, was the thought of Mr. Kane, and was the basis of the original Anderson, Brown and Kane plan. Growth Is Rapid From this developed the Paralta Studios, Inc., one of the best producing organizations in California, and when this grew to proportions that warranted success, the releasing factor, Paralta Plays, Inc., was formed in New York with contracts for placing the pictures into the hands of the exhibitors through the W. W. Hodkinson Corporation. With the company so far established, Mr. Anderson conceived one of the biggest ideas which was ever introduced into the business, and which has since been adopted by a great many of the most prominent producers. This was the plan to form separate organizations for each of the important stars and to give the stars themselves an actual financial interest in the company without any monetary investment on the player's part. Eight Companies in Project From this plan birth was given to the Louise Glaum, Henry B. Walthall, J. Warren Kerrigan and Bessie Barriscale companies, and finally by the formation of the Paralta Productions, Inc., and the Selexart Pictures Corporation, the latter of which made state rights features, eight companies were welded into one project. The success of the scheme has reached such proportions that W. W. Hodkinson, who has released Paralta plays and will continue to do so, is now in possession of contracts with the foremost exhibitors throughout the country that aggregate a sum of $1,500,000. Messrs. Anderson, Brown and Kane have probably set a record for accomplishment by building up such a concern within the space of a few months. Certainly a profit of $750,000 from an investment that represents no financial outlay even at the inception of the company, is proof of a remarkable knowledge of the film industry and executive powers to use that knowledge to the best possible advantage. The transfer of stock, which has just been consummated in Los Angeles, provides for the release of the Anderson, Brown and Kane interests in all of the eight corporations of which they have been officers and directors. Mr. Anderson was, prior to his sale of stock, president of these eight companies, and Mr. Brown was general manager. The principal reason which prompted the transfer of stock was the practical disorganization of the Anderson, Brown and Kane faction, due to both Mr. Kane and Mr. Brown being called to the colors. Mr. Kane has just been commissioned an officer at American Lake, Washington, while Mr. Brown will report at camp this month. This left only Mr. Anderson to Tom Mix in a scene from the Fox production, "Ace High." represent the original group of organizers, and, consequently, when the others found it necessary to dispose of their interests, Mr. Anderson decided to release his own holdings as well. Anderson Remains for While In the terms of the agreement of purchase, however, Mr. Anderson has consented to remain with the company temporarily in order to allow Mr. Katz and Mr. De Wolf ample time to effect a reorganization competent of carrying on the business successfully. In an interview this week it was pointed out to Mr. Anderson that his success with Paralta should be of benefit to the entire world of pictures, inasmuch as it will inject assurance and confidence into many men who have been fearful regarding the reported financial depression in the business. In reply Mr. Anderson stated: "Motion pictures are now an industry — they are no longer an enterprise. That means that every man connected with films today must be a business man; he cannot be a money-mad prospector. The only reason that there has been a lot of calamity-howling is that the incompetents are being forced out by the men who belong in the amusement field by right of knowledge, and it is these, the incompetents, who are doing the shouting, and it is really a good sign and not a bad one. It is a sign that the industry is finding itself and is becoming established upon solid foundation. Money in Business Still "It is said that the poor will always be with us. It is a fact that as long as we have the poor we shall have motion pictures, and there is just as much money in them now as there ever was, and the secret of success is really not a secret at all. It is merely business acumen. "Our success with the Paralta Company is gratifying, but it is not astonishing. It simply verifies what I have said — ■ that there is money in. the industry for those who understand the business. It makes me feel that I know my business. "I do not say it with conceit, for any man who does not know his business has no right to be in it. The longer he stays in it, the more money he will lose, and, if he stays long enough he is 'going to get out of it. A lot of men have stayed too long already and they are just getting out. That's why we hear of so much failure now, and that's why, very soon, the industry will be a great deal better off than it ever has been."