The Moving picture world (November 1922-December 1922)

December 23, 1922 MOVING PICTURE WORLD 709 Exhibitors Form $5,000,000 Distributing System True Explains Functions of New Co-operative Bookers CONCLUSIVE official confirmation of the exclusive announcement published in Moving Picture World following the national exhibitor convention in Washington that a movement had been inaugurated secretly during the session having for its purpose the organization of co-operative exhibitor booking units in various territories was given this week in a report from Chicago that the exhibitors there had formed the Theatre Owners Distributing Corporation with a capital of $5,000,000. The formation of the A. B. C. in New York followed the Washington convention, but this movement was sponsored by exhibitors, who, while at that time hostile to the national body, were on the "inside" of the campaign and in the vernacular of show business started the ball rolling by establishing their own system, which is already functioning and bidding for productions against syndicate bookers in the metropolitan district. Will Widen Scope However, the first official independent co-operative booking unit sponsored by the Motion Picture Theatre Owners of America was formally organized on Tuesday of this week in Chicago. Announcement of the organization of such a unit in Chicago also was exclusively published in Moving Picture World three weeks ago. The Chicago organization of a direct distributing system is the forerunner of others that are now under way in various other sections, namely in Philadelphia, the South, Massachusetts and Michigan If the Motion Picture Theatre Owners of Michigan carry out plans they formulated last week it is only a question of about two weeks when they will have formed a direct regional distributing organization similar to that incorporated in Chicago this Tuesday, following one of the most enthusiastic meetings of exhibitors ever held in that city. That the Motion Picture Theatre Owners of America are now determined to carry out the distribution of pictures is a fact that is generally accepted in well-informed circles. In fact, this direct exhibitor distribution plan has been carefully prepared and represents several months of conferences among members of the national council of the M. P. T. O. A. and various executives of the local exhibitor By ROGER FERRI organizations. These meetings have been held secretly in New York City. At these meetings the conferers had befor.e them a mass of papers containing data concerning rental prices on various pictures, together with comparative statistics covering a period of about four years, as well as figures touching in every detail on the distribution problem. The contention of some exchangemen that the local co-operative booking units could in no way dictate has been also considered by the national organization, which, when the local units have been organized, will purchase, lease or book pictures direct from producers or distributors and in turn deliver them to the exhibitor distributing units for direct local distribution. In that way, argue exhibitor leaders, the units while local in their functioning, will be able to guarantee producers a specific number of play dates throughout the country. A system to gauge run engagements also is being considered with each territory systematically divided into sections and first, second, third, etc., runs will be fixed accordingly. Ample Finance That the exhibitors are seemingly prepared to finance this undertaking is also accepted as a fact among those who happen to know what is going on in the inner circles. If necessary, one official pointed out to a representative of Moving Picture World, the exhibitor can get unlimited funds from banking institutions which, they say, have refused to invest in film distribution until "some sort of real system had been devised within the industry itself." They point out, too, that exhibitors can finance their local co-operative booking units with the financial support of these banking institutions, which, in a number of instances, have approached exhibitor organizations in several territories to promote a directto-the-exhibitor distribution policy. With the direct-to-the-exhibitor policy in vogue, say leaders of the exhibitor movement, producers will be in a position to ascertain immediately after their productions have been accepted by the theatres the exact amount of money their pictures will gross in rentals. The official statement substantiating the exclusive announcement published in Moving Picture World several weeks ago follows : "Somewhat of a sensation was occasioned in motion picture circles Tuesday when it was announced that the Theatre Owners Distributing Corporation, a company owned and controlled by independent exhibitors, was formally launched at a meeting held in Hotel Sherman. Many independent exhibitors, in no way connected with the exhibitors' organization, in the main took the initiative in this proposition and invited the officers and members of the exhibitor organization, notably the Motion Picture Theatre Owners of America, to meet with them in formulating a new line of action. "While the move tending toward this end was known in 'inside' exhibitor circles for several days, yet no inkling of the real situation reached the industry generally until Tuesday's session was held. The meeting was attended by about 100 leading independent theatre owners from different parts of the United States. By request, William A. Trut, of Hartford, Conn., presided after the meeting had been called to order by W. D. Burford of Aurora, 111., who welcomed the exhibitors to Chicago. "Mr. True stated that letters and telegrams were on his desk from various independent exhibitors who were most enthusiastically in favor of the new movement, but were prevented from being present because of the great distance to be travelled or for different business reasons. The Theatre Owners Distributing Corporation is chartered under the laws of the State of Delaware because of the many business advantages associated with this line of incorporation. It has an authorized capital of $5,000,000. It will be entirely co-operative in character. Exhibitor Stockholders "A demand for a company of this kind on the part of independent theatre owners has been repeatedly made for several years because of the tendency within the industry to effect lines of centralized control The independent exhibitor saw his position