Variety (November 1917)

MOVING PICTURE DEPARTMENT PAGES 42 TO 50 POSSIBLE SAVING $500,000 WEEKLY BY PICTURE MERGER Stanley Mastbaum of Philadelphia Informs Film Manufactur- by Wire How It May Be Accomplished. "Amalgama- tion" Started by Interview of Samuel Goldfish. It begins to look as if the motion- picture manufacturers and exhibitors are coming to a realization of the conditions that confront them, and that there is likely to be some sort of an amalgamation of interests that will prove beneficial to both. Heretofore the position has been taken by the manufacturer that he could operate independently of the others in the same field, but with the financial situation in such a state that he is unable to secure loans from banks a hue and cry has gone up that indicates the majority will now listen to business reasoning. In a lengthy interview in last Sun- day's New York Times Samuel Gold- fish, president of Goldwyn, seems to have started the ball rolling with some degree of authority, and a canvass of others in the same line reveals a will- ingness on their part to "talk turkey." Among other things, Mr. Goldfish said: "The motion-picture industry is in a dangerou s condition. Dis- aster is very close indeed. The war has not hit attendance at mo- tion-picture houses as hard as it has at the Broadway theatres, but that is only because the scale of prices is so much lower, and the great democratic audiences of the screen are drawn largely from those who are getting more em- ployment and more profitable em- ployment through the war. The success and the health of the mo- tion picture is based on the modest price of admission at which good films can be seen. The dangerous, even disastrous, conditions in the industry of which I have spoken are due to the fact that all manner of competitive extravagance is threatening to destroy that one safeguard, and with it the indus- try itself. "I am not a calamity howler by temperament, and I'm not dis- gruntled, for Goldwyn i-s getting its share, and more than its share, through the most careful attention to organization. But in the plain face of t^e criminal waste of the producer's money, the exhibitor's money, and. in the last analysis, the public's money, somebody should speak out plainly. "The big factor in keeping down moving-picture prices, I feel, is the producer. He must organize. The great steel industry was in just such a chaotic condition before the coming of the United States Steel Corporation. If the produc- ing factors in moving pictures do not shortly come to»their senses I predict failure — spectacular failure—for a great many of the leading plungers of filmdom to- day." Monday night Stanley Mastbaum, head of the Stanley Booking Co., of Philadelphia, sent the following tele- gram to practically all the film manu- facturers : "Five hundred thousand dollars is wasted weekly by overproduc- tion, overadvertising, too many ex- changes, which necessarily means that the exhibitor must pay. How long can he continue to pay? What will happen when he cannot con- tinue to pay? Do you know that the producers are conducting their business in open warfare on each other? The exhibitor must pay for all the tremendous salaries paid by the manufacturers in every branch of the business. What is the solution? Who will solve it? "The crisis will soon be at hand. There is but little time to save the picture industry from several severe setbacks. Should these be temporarily avoided others will come and will continue until the motion-picture industry is stand- ardized on a sound basis. In the meantime the exhibitor must pay. "The manufacturers cannot help the exhibitor because the manu- facturers have made no effort to help themselves. The trouble is at the manufacturers' end, not the exhibitors'. "There are three factors that make for success in any line: observation, deduction and con- centration. Why not apply them to this business? "Features released per month by various organizations, based on any eight-week period for two months. October, 1917, and Novem- !'(T, 1917- Artrraft two; Blue- hird. four; Butterfly, four; Fox. mx; Goldwyn, two; Metro, four; Mutual, eight; Paramount, eight; Pathe. four; Perfection. four; Select, four; Triangle, eight; Vita- graph, four; Wc.rld, four; Mis- cellaneous, State Rights, etc.. four- teen. Total, 80. "This makes a total of 80 pictures purchased during each four-week period at a negative cost running all the way from $12,000 to $160,- 000 per feature. It is true that there are very few made as cheaply as $12,000, and very few made as high in cost as $160,000. A fair average negative cost, however, would be about $40,000. So that taking this four-week period and dividing it into 80 we find we are manufacturing in America at the present time 20 feature negatives at an average cost of $40,000 each amounting to $800,000 per week in negative cost. "In addition to this negative cost there is a positive cost of prints to be added. Anywhere from 20 to 45 prints are used on each pro- duction. A fair average would be 30 positive prints. Positive prints on a five-reel subject cost at the present time $225 each; therefore the positive prints that are being used would cost $6,750, and 20 times $6,750 would amount to $135,- 000 for positive prints of features of these features is immense. In only. "The overhead for the handling each territory there are at least \2 offices, meaning salaries for 12 managers, 24 solicitors, 12 office rents and 12 separate and distinct inspecting forces, shipper, night- men, etc., and all this is in at least 25 points in the United States and Canada. "The American market cannot possibly absorb these expenses. The burden is placed on the Ameri- can public and the exhibitors. Not over nine features could be legiti- mately absorbed, and if the nega- tive cost were reduced and carried by nine features, there would be remarkable saving for the exhibit- or and the manufacturer. If dis- tribution, now handled by not less than 12 distributors, were concen- trated in not more than two or, better yet, in one center an im- mense overhead could be saved for the exchanges, and thus for the distributors. It would be a prac- tical saving in our business by co- operation and concentrated efforts of not less than $500,000 each week, as follows: "Saving of 10 negative costs at $40,000 each, which would amount to $400,000 each week. Saving of 10 times 35 positive prints, which changes by concentration, which, at a very modest estimate, would be $32,500 per week. "In total this is an estimated saving of $500,000 per week. "Why should we, as exhibitors, carry an unnecessarv burden of $500 000 pei week? No other line of business would. These condi- tions can be cured by amalgama- tion." KELLERMANN'S NEW TITLE. The big special feature film Annette Kellermann has been working on is completed and will be called "The Queen of the Sea." The picture will probably run in eight reels. It may be presented by William Fox around New Year's, per- haps following "Les Miserables" at the Lyric, New York, for the first showing. Miss Kellermann finished the film last week at Ft. Lee, thereby saving a trip to the West Indies. A large tank espe- cially built under the direction of James R. Sullivan, Miss Kellermann's personal representative, proved adequate for the famous diving girl to give swimming exhibitions for the camera. These will be one of the many novelties of the film. It is reported a tank built by the Fox people at a cost of $30,000 for Keller- mann's work was found to be worth- less when put to practical use. Chicago's $750,000 Picture Houss Chicago, Nov. 28. Balaban, Morris & Katz have filed plans for the construction of a thea tre and hotel to be located at Sheridan road and Lawrence avenue, and which will cost $750,000. The house will play a straight pic- ture policy. The location is one block from the new Jones, Linick & Schaef- fer house and two from the Wilson avenue theatre. MAJESTIC, PITTSFIELD, BURNS. Pittsfield. Mass., Nov. 28. The Majestic was damaged by fire Sunday to $20,000 The blaze was al- most entirely confined to back stage, although the auditorium suffered from smoke and water. The house was built in 1908. It has played vaudeville and is owned by W. D. Sullivan of North Adams, Mass. Waterbury's New Rialto Opened. Waterbury, Conn., Nov. 28. The Rialto, largest of the four the- atres in this city, opened Sunday. It seats 1.400, all on one floor, and cost $100,000. J. Harry Nichols is manager. The theatre is in the heart of the town. John Moriarty is the owner. Musical Tabs Replace Films. Macon. Ga.. Nov. 28. The Macon theatre substituted a musical tab policy for films Monday. The opening attraction is an 11-people company billed as "Uncle Sam and His Nephews and Nieces." They will play a full week. Twenty-four thou- sand soldiers encamped near here. Returning to the Screen. After a retirement from the stage and screen of practically a year, Flor- ence Atkins will make her first reap- pearance as the principal feminine support—the heavy—with Clara Kim- ball Young in "The Marionettes," un- der the direction of Emile Chautard.