Photoplay (Jan 1921)

"All Is Not Gold, etc. •n Which gives you some down-to-earth facts about the millions!?) which await the investor in new motion picture companies. By JOHN G. HOLME HOW' do they get the money:-' When sound, well established business corporations with millions in assets and great earning power rind it difficult to market their securities at high interest, a hen foreign governments, offering what we would have considered a few years ago usurious rate of interest, fail to interest our investors, how do embryo motion picture companies with no assets and wholly speculative earning capacity manage to gather in millions of dollars in return for certificates which n 0 s a n e hanker in the world would recognize as collateral? How did Lee Francis Lybarger, Chautauqua lecturer, manage t o dispose of $500,000 stock to produce his picture play, called "Democracy?" We are all fond of democracy. Millions of us are willing to sacrifice our lives for democracy. But how many of us are ready to "hock-" our watches to see the idea of democracy, as conceived by Mr. Miller, converte d into a film drama? How did Dr. Francis Trevelyan Miller, writer on historical subjects, manage to sell more than $100,000 of Crusaders stock? How did "Frederick I'' Stoll, real estate agent miner and former post office employe, gather in more than $400,000 for the production of his "Determination?"' Most promoters in other lines have some small tangible capital to begin with before they start selling stock. They hold title to a supposedly valuable piece of ground, believed to contain gold or silver or oil or some precious or useful deposits, or they hold option on this piece of ground, or they have patented articles which they propose to manufacture and market. But most of the motion picture promoters who induce the public to finance their companies, have nothing to sell but an idea, and you cannot patent an idea. \nd their ideas may not be worth patenting. One marvels at the ability of these men 10 'sell" themselves to the public. But the fact of the matter is that they rarely attempt to "sell" themselves. They 'sell" "Birth of a Nation." The Million Dollar Mystery," "Civilization," "The Miracle Man," "Daddy Long-Leg" "Mickey," and "Tarzan of the Apes." By the time this article is published, promoters of wild cat motion picture companies will lie "selling" Griffith's "Way Down East." Continuing Photoplay Magazine's campaign to give its readers the absolute truth about motion picture promotion ventures. In other words they -ell their stock almost entirely, if nol entirely, on the strength of the achievements of other men in the motion picture field. Every motion picture man knows thiFromoters of motion picture companies would starve to death if they could not point to the achievements of David Wark Griffith. Thomas H. Ince, Mack Sennett, George Loane Tucker and others. They manage to convey the idea to their investorthat they can do what Griffith, Ince. Sennett and Tucker and the other successful motion picture men have done. Well, what have they done? These men. whom I have mentioned by name, and many others, have made magnificent pictures. They have achieved well-deserved fame. But how many of them are what we call today rich men? Not one of them. They are just mod erately well to do. The fact of the matter is that you could count on the fingers of one hand the men who have made a million dollars in the production of motion pictures. And even if you have lost one or two digits, you will not be disqualified from keeping the tally. David Wark Griffith, Inc. is offering $1,875,000 in stock through the big brokerage houses of the country, and Griffith pictures have grossed more money than the pictures of any film producer in the world. Would Griffith, who has never produced a big picture that failed financially, be issuing stock and pledging an annual dividend of $1.50 on a Sis share if he had cleared millions? Go to any successful motion picture producer anywhere and compliment him on hi financial success, and if he is frank and goorj-natured he'll laugh at you. If he is frank and ill-natured, he'll kick you out of his office. But the chances are that he will feel under no obligations to be frank, and that he will treat you to a lot of talk about millions. Motion picture men. honest and dishonest, wise and foolish, have developed financial conversation to a fine art. But the millions they talk about are mostly conversational millions. And if you pursue your inquiry further, you will learn, per haps to your astonishment, that the big money in motion pictures does not lie in the producing end of the industry, but in the distribution and exhibiting ends. The producer is the lad that puts up the big money to make the picture and assumeall the risks, and the number of risks in film production is (Continued on page 114)