Moving Picture World (Jan-Mar 1918)

486 THE MOVING PICTURE WORLD January 26, 1918 Allied Exhibitors Plan Formed h b Committee* Appointed at Washington Convention to Consider Proposition of Manufacturing Group for Direct Distribution Submits Report WHEN the convention of League and Association exhibitors met in Washington on December 11 and 12 representatives of a group of five independent firms appeared at one of the meetings and outlined a proposition for a direct service from the manufacturer to the exhibitor. The companies and their representatives were: Frohman Amusement Corporation, W. L. Sherrill and Joseph W. Farnham; Ivan Film Corporation, J. E. Chadwick; High Class Film Corporation, Harry Rapf; Triumph Film Corporation, J. A. Golden; Crest Pictures Corporation, Lester Park. The plan as outlined by Mr. Farnham as spokesman for the producers made so favorable an impression upon the meeting that a special committee was appointed, to consider the proposition and to make a report at an early date. Accordingly C. C. Pettijohn and L. L. Levine, members of that special committee, got together in New York and after a week or more of hard work framed a tentative plan upon which the proposed service was to be based, and have issued a report covering the essential features thereof to be sent to the officers of the various exhibitor organizations. The report reads as follows : A great convention of the Allied Exhibitors' Organization of practically every state and large city in the union was held in Washington, D. C, December 11 and 12, 1917. That convention considered and passed many constructive measures which will permanently benefit the entire industry. That convention heard a new plan from five Independent producers for marketing films direct from producer to exhibitor. That convention unanimously agreed that the principle of direct dealing between producer and exhibitor is correct, and a committee was selected then and there to consider details and work out a plan with these five producers. The undersigned was requested to send telegrams (82 in number) into the various states where the addresses of prominent exhibitors and various officers of the exhibitors' organizations were known by the undersigned. Over 70 favorable answers were received, and many suggestions and ideas, which nave been invaluable in working out the details, were offered. These five producers will pay the expenses of two or more prominent exhibitors to attend meetings called by exhibitors for the purpose of taking up this plan, and to then and there explain details and to represent both the exhibitors and producers in the closing of contracts to put this plan into effect at the earliest possible moment. These same five independent producers whose proposition was approved realize and fully understand, from communications thus far received from prominent exhibitors, that they must make special feature attractions based upon stories with box office values. As a matter of fact these same men have made and are making some of the greatest special features ever distributed, and exhibitors have been buying them at very high prices through present distributing methods. Under this plan these five companies will compete with each other. Their profits are not to be divided, and the company making a highly successful feature will enjoy alone the producer's profits therefrom. These men can and they have pledged themselves to make pictures with box office values and drawing powers under this "direct sales" plan. Here the committee gives some space in its report to the past productions of the different members of the producing group showing a very creditable record, and then continues : I desire to here outline in greater detail exactly what these producers have in mind and thoc-e elements which, in my opinion, should appeal to the bodies of exhibitors throughout the country. These manufacturers propose to manufacture and release 52 picture a year, one each week. These manufacturers are ready and willing to enter into direct business relations with the exhibitor to the end that the larre cist and profit incident to the present methods of distribution of special feature films may he eliminated, and tney offer to the exhibitor their combined product upon terms which are as follows : The pictures shall cost, together with prints, not less than $25:000 and not more than $50,000, the cost to be certified to by the manufacturer by his sworn statement. To the gross cost the manufacturer shall add a sum equal to 25 per cent., which shall be his guaranteed minimum profit. This will make the gross cost of the pictures range from $31,250 to $02,500. This gross cost shall be taken up by all the 48 states in proportion to a just division based upon its number of theaters, number of cities, population, and all other data that goes to make up a fair quota for each state. Each state will have its allotment based upon this fair division, and the exhibitors of each state shall absorb the quota assigned to them. All revenue derived from distribution in excess of the minimum quota in each suite shall be divided between the manufacturer making the particular picture and the exhibitors in each individual state using that picture: that is, 50 per cent, to the manufacturer and 50 per cent, to the exhibitors in rebates. In order to make up the gross allotment there must' be secured in theUnited States 2,700 days of bookings per picture. Ton will note from the following schedule the number of days' booking which we have figured for your state quota : Days Maine 25 N. Hampshire .... 10 Vermont 9 Massachusetts .... 87 Rhode Island 11 Connecticut 38 New York ...375 New Jersey 87 Pennsylvania 20*5 West Virginia 33 Maryland 35 Dist. of Col 12 Delaware ........ 5 Virginia 24 North Carolina ... 24 So. Carolina 15 Georgia 23 DayB Florida 23 Alabama 16 Mississippi 15 Louisiana 27 Arkansas 24 Michigan 100 Ohio 156 Indiana 101 Kentucky 38 Tennessee 26 Illinois 188 Wisconsin 88 Iowa 125 North Dakota 26 South Dakota 26 Minnesota 101 Missouri 87 Days Kansas 86 Nebraska 56 Texas 75 Oklahoma 46 Utah 13 Colorado 25 Wyoming 6 Montana 24 California 80 New Mexico 8 Arizona 10 Nevada 4 Oregon 29 Washington 38 Idaho 18 Total 2,703 All amounts received in excess of these quotas would be divided as heretofore outlined, namely, 50-50. You can readily see that all the receipts above the minimum quota above outlined would tend to reduce still further the cost to each exhibitor for the service by reason of the rebates and the profits contemplated. I suggest to you that this matter is of sufficient importance to e*hibitors to warrant their earliest attention, and that the proper wa~f to bring it before them would be at an exhibitors' meeting, either through the state organization or through any organization you migCt suggest. In submitting this report the committee asks criticism and suggestions from the exhibitors. It is also requested that the various exhibitors' organizations call meetings at the earliest moment possible at which meetings some one who is competent to discuss the subject will be present and who will also have authority to arrange details and submit contracts. Mr. Pettijohn characterizes the proposition as "a sincere plan to bridge the gap between the two permanent branches of the industry." MUTUAL MEN IN TOWN. John R. Freuler, president of the Mutual Film Corporation; S. S. Hutchinson, president of the American Film Company, and Terry Ramsaye, director of publicity for the Mutual, were in New York during the week of January 6. The Mutual officials made some plans while here looking forward to big production plans. Mr. Freuler and Mr. Ramsaye returned during the week to Chicago, stopping in Philadelphia to attend to some legal matters. NEW YORK'S NEW LICENSE COMMISSIONER. John F. Gilchrist, the newly appointed Commissioner of Licenses of New York City, promises to be a very capable and affable official, with a broad grasp of his duties. He has occupied many positions of trust, including two terms as Under Sheriff of New York County, coming in close touch with economic public needs. While he is an unknown quantity to the moving picture interests, we are assured he will give a very satisfactory account of himself on all questions that may arise in that branch of his duties. Scene from "Under Suspicion" (Metro).