Variety (August 1915)

MOVING PICTURES 15 3SC LOW SERVICE PRICES WILL HELP FILM TRADE, SAYS SELZNICK General Manager of World Film Corporation Believes Smaller Profits and Larger Volume of Business Coming. World Issues Balance Sheet for First Year of Operations. "If prices for feature film are cut through the supply, that will help the iilm trade," said Lewis J. Selznick, gen- eral manager of the World Film Cor- poration, when asked if the prospect for a reduction in prices of film to the exhibitor were likely after the coming theatrical season opens. "But I do want to say this to the ex- hibitor who is not properly protecting his business," added Mr. Selznick. "Whether prices remain as they are, go up or go down, the exhibitor should protect his business by establishing a clientele that believes in the service or services he is using. "This wobbling practice by the ex- hibitor, after having the service he uses well advertised in the neighbor- hood, of switching in an 'outside feat- ure' merely because he can secure it perhaps $5 or $10 a day cheaper, is bound to hurt the prestige of a picture theatre. "We (World Film) hope to see prices of service come down, if it will mean a larger volume of business. And I will say this,' that the profits on film exhibitor and the exhibitor needs the service." Mr. Selznick was asked if a large number of feature exhibitors combined in sufficient strength, as they thought, to ask concessions or dictate to the Services, what would be the result. "It can't happen," he answered. "They may combine, but they will never be able to dictate for the Service can take any house outside the combine in any town and make the combine member feel the effects in no time. That has been thoroughly tested in the past," he added. The World Film has issued its bal- ance sheet for the first year of its operations. The sheet is reproduced on this page. It is certified to by Christian Djorup, a public accountant of 25 Broad street, New York City. The World Film has paid a dividend o' 3 per cent since it organized, and the balance sheet shows a surplus of a little over $400,000. Depreciation is allowed for in the statement to the ex- tent of $515,000. A preamble to the balance sheet, ad- is vice president and advisory director of the Equitable, which, continues the preamble, "assures complete harmony between the two corporations." The concluding paragraph says: "With the assured continuance of the service of Mr. Lewis J. Selznick as its vice president and general manager, the possibilities of the World Film Corpora- tion are now most potential." The preamble is signed by the mem- bers of the executive committee. They are George B. Cox, George A. Huhn, Jules E. Brulatour, Joseph L. Rhinock, Lewis J. Selznick, Briton N. Busch and Milton C. Work, chairman. On or about Sept. 20 a new pro- gram policy will go into effect at the World offices. As the plans are now constituted there will be a gathering in New York shortly of all the division managers of the World whereby the new year's prospectus will be mapped out. The World from that date on will issue two features and four comedies weekly. Quite a list of subjects for both are now on the shelf and in the making. MAUDE ADAMS CONSIDERING. Though nothing certain has been re- ported either way Maude Adami is understood to be considering a plunge into pictures. Several concerns are very desirous of getting the Charles Froh- man star for a big feature. If certain manufacturers could fix it they would like to have Miss Adams do "Peter Pan." Miss Adams, upon being plied with a WORLD FILM CORPORATION AND PEERLESS FEATURES PRODUCING COMPANY Consolidated Income Statement for Year Ending June 27th, 1915 World Film Corporation! Net profits after all costs, charges for depreciation, reserves, etc, six months ending December 27. 1914 $14,532.04 Net profits after all costs, charges for depreciation, reserves, etc, six months ending June 27, 191$ 17,760.40 Total Poorloss Foaturoo Producing Company t Net profits after all costs, charges for depreciation, reserves, etc., for year ending June 27, 1915 .$185,292.44 143,732.64 Total net profits $329,025.08 WORLD FILM CORPORATION, SHUBERT FILM CORPORATION, AND PEERLESS FEATURES PRODUCING CO. Consolidated Balance Sheet as at June 27th, 1915 Assets Current Assets: Cash Resources $220,456.17 Accounts Receivable 253,316.30 Sundry Current Assets 207,100.21 LUbUiU«s Current Liabilities: Accounts Payable Notes Payable Sundry Current Liabilities Total Current Assets $680,872.68 Working Assets: Including Negatives and Prints of owned Features at cost, advertising supplies, rights to plays not produced and miscellaneous productive assets 1,465,641.66 Fixed Assets: Real Estate. Building Equipment, etc 148,439.26 Securities Owned, Copyrights and Feature Rights, etc 463,672.60 Prepaid Insurance, Taxes, etc 3,951.64 Interest on Securities Owned and Bank Deposits 2,041.40 Suspense Accounts 126,397.43 $2,891,016.67 Total Current Liabilities Accrued Liabilities Liabilities in Suspense Reserves for Depreciation, etc Guarantee Bond on Colonial Film Co., Ltd., Contract — Funded Debt Capital Stock: World Film Corporation—Issued and Outstanding: 500,000 shares of a par value of $5.00 each, issued in accordance with the laws of the State of Vir- ginia for assets valued at Peerless Features Producing Co., Stock Issued and Outstanding Surplus $233,322.50 56,690.00 40.578.31 $330,590.81 48,761.59 85,372.60 515,266.59 2,500.00 98,000.00 1,406,000.00 500.00 . 404,025.08 $2,891,016.67 sirvice in individual instances will be- come smaller while the volume of busi- ness will get larger. That is what we want." Mr. Selznick replied to a query whether service prices should be based upon the capacity of the house using it, that neither the capacity nor the popu- lation made any difference. "A great deal depends, of course," said he, "upon the management of the theatre, hut the best guide to a price is the business of the theatre. The service can not afford to drive the exhibitor out of business. The service needs the dressed to the stockholders, says the figures show a total profit of 1329,- 025.08, practically all' earned during the second half of the year. It mentions a weekly news service and weekly re- lease of comedies arc soon to be intro- duced by the World. It also mentions the formation of the Equitable Motion Pictures Corporation with a capital stock of $3,000,000, recently formed with the backing of Ladenburg, Thal- nxin & Co. The Equitable, relates the preamble, is to release one feature and one comedy weekly through the World, for the next ten years. Mr. Selznick flattering offer the past week, is re- ported as saying she would be at least one legitimate star who would not be seen in pictures. ASKING PUBLICS AID. Cincinnati, Aug. 4. A movement is on for a referendum at the November election to knock out picture censorship in Ohio. Petitions are being rapidly circulated with the object of putting the question before the people. KEYSTONE OUT OF MUTUAL The New York Motion Picture Com- pany is to be on the outside as far as the Mutual Service is concerned after Sept. 15. The president of the Mutual Film Corporation asked the N. Y. Mo- tion Picture Corporation to withdraw its productions from the Mutual Program after that date. This was done more or less because the presi- dent of the Mutual believed the New York corporation was to withdraw any- way, and in the parlance was simply "beating them to it" The N. Y. Motion Picture Corporation is to ally itself with the Triangle, and in the future devote itself to supplying its product exclusively through the Tri- angle and the feature program which that company is to issue. During the past week the Triangle have engaged Alfred Weiss, general manager of the N. Y. exchange of the Mutual. W. F. Rogers, general man- ager of the Mutual, is one of the other engagements of the Triangle. It was announced at the office of the Mutual this week that the revised and increased schedule for the Mutual will be in every branch office within the next ten days. It was definitely an- nounced that the following plans had been completed: Two three-reel fea- tures with Broadway stars in the lead- ing roles will be released each week; the Knickerbocker stars, now releas- ing through the General, will be added to the Mutual program. There will be five new comedy re- leases each week. The first will be the new Cub comedies with George Ovey featured and David Horsley as producer. Others are Beauty Come- dies and a new Falstaff comedy. The Falstaff will have a specially engaged company of English players imported for this particular brand of subjects. The two-reel pictures will hereafter be known as the Mutual Banner fea- tures, among which there will be re- leased each week hereafter a brand known as the Mustang Dramas. Con- tracts were signed last week with the Gaumont Company for a new split reel each week to be half scenic and half cartoon. PARAMOUNT'S AD SPREAD. The Paramount is out with an author- ized statement it plans the "largest ad- vertising campaign ever instituted by any motion picture company." Starting the first Thursday in Sep- tember, the Paramount ads will appear in all the big weeklies and practically ail the leading newspapers (daily and weekly) of the country during the 15- 16 season. In addition to this the Para- mount has engaged Howard E. Spauld- intf, ad writing expert, to superintend the compilation of a 25-pagc booklet, giving samples of ads "different from any yet put out by film manufacturers." EDESON AT VITA. Robert Edeson goes back to the Vita- ^raph for another big feature, signing a new contract to that effect tin's week. It's likely his feature will be "Green Stockings."