The Moving picture world (January 1922)

January 14, 1922 MOVING PICTURE WORLD 161 Salesmen Hail Realart Absorption as Example of Economy in Whole Industry AN example in economy for the whole industry." That's the way the trade is now interpreting the absorption of Realart by the Famous Players-Lasky Corporation. This is the idea even of those most directly affected by the Realart officers and managers. Several of the latter have been in New York during the past few days and are unanimous in classifying the merger as one of the most spectacular and daring strokes in the new campaign for greater economy. "As outstanding as a lighthouse in a fog," said one of the former managers. "Honestly, now, why should Famous maintain two separate organizations to sell the output of one production depart- ment? The marvel to me, since the thing's been done, is that it wasn't done sooner. "Times are tight and the past ex- travagances of the industry—exhibitor as well as producer—are being felt. They've wasted money everywhere—in produc- tion, in distribution and in exhibition. They're getting back to sanity. Isn't it natural, therefore, that such a marked tax on distribution as Realart represent- ed should be eliminated ? "I don't know how much money this merger is going to save, but you can bet it will be a barrel. Distribution alone probably cost $1,000,000 and that item is now entirely eliminated. But selling hasn't stopped. That's the beauty of it. Famous can go right ahead with this work because it has an organization that's ample and there will be fewer pictures to market, even counting in the Realarts, than the same organization sold last sea- son." Zukor's Letter The manager quoted was in possession of a farewell letter from President Mor- ris Kohn of Realart to which was at- tached a copy of a letter from Adolph Zukor, explaining the cause of Realart's absorption. Mr. Zukor wrote: "Because of the general unsatisfac- tory conditions existing in the motion picture industry at the present time, and in the interest of every possible economy, we have decided to combine the distri- bution of Realart and Paramount Pic- tures for the future, effective at once. "In closing the Realart organization, I want to express to yourself, Mr. Woody, your loyal aides, and the entire personnel of the Realart institution, rny deep personal gratitude for the splendid work you have done and for the loyalty and effort you have put behind the suc- cessful building up of the Realart or- ganization. "It is a matter of keen regrret to my- self and my associates that this step was necessary, and the abandonment of the Realart organization is in no sense a re- flection on those who have loyally striven to make of it the splendid institution it developed into, from a managerial as well as a financial standpoint. Would you be kind enough to transmit my per- sonal thanks to each member of your organization for his loyal support in the past ?" Quitting Big Business According to J. S. Woody, general manager, Realart closed shop with as- surances from its managers that Jan- uary rentals would exceed expectations. February business, on a basis of reports, he says, promises well. "And for all of this we are indebted wholly to the hearty co-operation given by Realart exhibi- tors." Mr. Woody sees much to the advan- tage of Realart customers in the con- solidation with Famous. "We are quit- ting a healthy, profitable business," he says, "but it is quite clear to us that the large value represented by this business can be increased by the economies which eliminate a whole distributing organiza- tion. The saving will be large and can- not fail to result to the general benefit of exhibitors. The distributor's alterna- tive in times like the present Parallels that of the exhibitor. He either must re- duce expenses or increase prices. A Question of Economy "It was not a question at all of Real- art's profits. It was a rhatter solely of how much could be saved by consolida- tion. The revenues we have insured will continue to come in, but the expense we have been incurring will cease. In other words, our rentals will be turned from gross income into net profit. Realart Pictures will be merged with those of Famous and service will continue under even better conditions than have pre- vailed in the past, because the other or- ganization is larger than ours, has more branch offices, more employes and bet- ter distribution facilities than we had been able to provide. "The finale was one of the quickest in motion picture history. But in spite of this fact I understand that most of the boys have made new connections. And that this is particularly true of the man- agers and salesmen speaks very eloquent- ly for the ability and reputation of the men in Realart's employ. The co-opera- tion which home office and branch office employes have given Famous Players- Lasky has been a very large and im- portant factor in effecting speedy and orderly transfer. This in itself is an unusual condition, quite different from the customary scurrying from a sinking ship. Praise for Sales Force "I know that the elimination of Real- art is not going to delay long the resump- tion of personal friendships which uni- versally existed between exhibitors and our boys in the field. Most of the lat- ter will again come in touch with their old customers as the representatives of other concerns. For all of them, how- ever lined up, I bespeak continued con- fidence. They are men of high ideals. "I owe personal acknowledgement to exhibitors as a result, of the many favors and courtesies which they have extended to me and to the Realart staff during the existence of this organization. And I speak on behalf of all of us, from presi- dent down, when I say that no men ever have had more encouragement and real co-operation from their customers than has been given to us by the buyers of the industry." Executives' Plans Plans for the future, it is understood, have not been completed by any of the Realart executives. Mr. Kohn is quoted as saying he probably will continue his identification with motion pictures, but has not yet given serious thought to the future. Rumor has connected Mr. Woody's name with several prospective deals, but the report most commonly credited is that he has formed a motion picture brokerage partnership with Fred Quim- by and will open offices in the film dis- trict within the near future. The for- mal announcement that was expected to have been made this week has been de- layed by illness which confined Mr. Woody to his home for several days last week. Visitors Here Dario L. Faralla, assistant treasurer of Realart, probably will be busy for sev- eral weeks closing the books of the cor- poration. He states that his plans are undecided. Jay A. Gove, assistant gen- eral manager, is making arrangements this week which will continue his identifi- cation with sales supervision work in the industry. W. R. Scates, Boston; Harry E. Lotz, Buffalo; Harry W. Willard, Chicago; James B. Reilly, Cleveland; James S. Hommel, Pittsburgh; Floyd Lewis, St. Louis, and Louis Reichert, Washington, are among the Realart managers who have visited New York within the last few days. All of them are reported to have made satisfactory arrangements for the future.