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Wednesdaf. August 8, 1M7 PICTURES VARIETY THE BANKERS AND MONEY S1EFFES AFTER INDE EXCHANGES WITH CHANCE OF ORGANIZING Against Hays' Proposed Ban on Buying Pools— Argument for Inde Exchanges as Favored by Inde Eithibilon for Selling Idea to Producers M Steffea, Minnesota exhibit- or, la tryins to promou tliree or four Independent booklns exchanges tor territory near Cleveland, De- troit and poMibljr Ifilwaukee. While Ip New Tork laat week It to understood Steffes argued against the ban recently proposed by mem- bers of the Haya organization on percentage bookers. SteKes may succeed In selling the producers the Idea that where In- dependent exhibitors will refuse to accept certain films from thfm, they would be more reasoii ibly in- clined If served by an Independent •schange. The exhibitors seem to have an Idea that a central exchange should be able to get pictures at the low- est possible price, In addition to weeding out impossibles where there la an opportunity. It is believed that Steffea has a •trone chance of organizing the ex- otaanges with a probability of 100 •r more theatres In each buying •asoclatlon. WHICH TOM MOORE MADE THE GIRL WALK? Washington, Aug. ?. Suing at the rate of J.T. noo per mile Pearl Perlsteln of New York city Is asking damages in the 'Dis- trict Supreme Court, totniing $7D.- 000, to cover a three-mile wallc home from an automobile ride. Named in the suit Is Tom Moore. The address given Is the Roose- velt Hotel. Tom Moore, one of the pioneer ex- hibitors of Washington, since re- tired with the leasing of his RlaltO to rni\'Msal, rosKk's tliere. Inquiry at the hiitel brought forth the state ment that no other Tom Moore has ever lived there. Attornoy acting for Mies Perl- steln sa\s it is not Tom Moore the picture man, while this Is back- ed up by a like statement from "Bill" Moore, the exhibitor's brother. Moore, himself, is out of town. Papers in the suit state that hav- ing attended a party down the Po- tomac river, Moore offered to drive Miss Perlsteln home. During the rl<*e, and while going at a high r.ate of speed, Aliss Perlstein, who wa.9 here visiting relatives, charges that Moore made Improper advances, and when repulsed, she ftirthcr rharges, he as.iaultcd her with his fist-i. She .alsii .'^tatoH that realizing she was waging a tosins light sh-- Jumped from the machine, receiving severe Injuries. The T'lm Moore accused Is stated to have continued on toward Wash- ington. LLOYD'S 1ST OUTSIDE CAL. I.os Ant^elop. Aug. 2. Ilarol.i I.luyd will leave with hi;* entire comiinny tor. New Vnrli .Tbfult Aug. I',, on Ills first production ex- pedition nutNlde of California, LIny<i t< new picture Is laid In New York. Mi-a. I.li.yd and their tin ec. ye.ir- old d.iughter will accnmpan.v the comedian. UNFAIR FOR 15c HOUSES TO BE TROTECTED' Franklin, of W. C, Says 1st Run Exhibs Need It the Most MILLIONS PUT IN' PICTURE HOUSES! Surrey of Baakinc Invest- ments in Film Trade Brings Out Mas* of Fig- ures—Annual Gross of Pictures in America $360,000,000 — Over $500,000,000 of Invested Theatre Capital Money from Bankfaig Interests BABY STAR GROWING UP Loa Anpcleg Ally Dorothy Revler. 1»2S Wampas bahy star, will be married in No- vember to Charles .•^choen .T-.hn*Jc.n. scion f»f a i)ronUnent e.'ist. in fam- ily. Both aro awaiting divorce ac- tions. Miss Revier from Harry J. Revier. plrture ("Irector, and John- from Katherine Macdonald, fn actress. Los AnsalM, AOS. 2. First run eshtbltors who pay a high rental for Dims are fully en- titled to protection against subse- quent runs at reduced rentals, In the opinion of Harold B. Frank- lin, president of West Coast. The- atres, Inc. He states that unless the former does get protection, eventually he cannot continue to pay big film rentals because his ad- mission prices cannot continue In the face of what he termai, iuMMr competition.' Franklin holds that every fair minded exhibitor must admit that the theatres that charge high prices of admission are entitled to proper clearance over those theatres tfiat charge less. "Is It fiiir,'' asks Franklin, "to expect a lli-cent house to run pic- ture at the same time or close on the heels of the house that has a 25-cent admission?" The same ap- plies all al«>ng the line, he eontend.s. Franklin's stand on this Issue was prompted by the controversy in the Los Angeles territory re- parding the proper protection for theatres cliMrgintr higher admi.s- siuns. There can be no question, he contends, that It Is mtstr to support the 13c and 25c store show at the expense of the exhibitor who is trying to buiid a constructive bu.sincss by showing pictures In an environment and thereby making possible a higher admission scale. Progress in the picture exhibition busincHs, he claims, was maile \>y tho.se exhibitors who built better theatres and not by pulling the level of the business down to the store show. Industry Suffer* "When exhibitors cannot contin- ue to pay big Aim rcnt.il^i." .sal.i Franklin, "producers cannot spend the money to make big pictures. When that time comes the public will begin to lose Interest In the screen, and the Industry will suf- fer." The head of West Coast ha.s taken a decided stand against the lnru^«h of numerous 15c the.-itres in tlie I.o.s .Ant^eles territory in tiie i.'\st ye.ir. He says that the rea- I son for tills influx of cheap ad- nii.^sion iiouses is due to the fact that hou.^cH charging ndvaiie..tl prices receive no, or irisiiinilent clearance f>r protection wlii'-h re- sulted in l.))'inginff many houses down to ir. cents to meet what he nails unf.air c-mpetitlfin. Niiniei"Ous l.os AnteN-s exhiijitfrs have voiced their protest to any change in protection of tlie present t'lan, ex'-epling as it affeet.s houses charging a o P 4 -i i t a o r leaa. __ Fr.mklin takes the starel tl.at It Is unfair to discrimin/ile ttiusiy ^itrainst the houses that chaige a l ibber admission price. The latter class of liou'^e.s. It was polrilefl out. arc paying more than 75 per cent, of tlie film bill, and they cannot rontlnue to dn so unless fair ad- mission prices are maintained. WHAT INFLUENCE? The limitless discussion of csrtsin fluctuations in motion picture stocks, inexplicable on any basis of prosperity, assets or even sure earning power and dividend pay- ment, concentrates on the conclu- sion by "the man on the street," shared by many insiders, that the banks srs cracking the whip. Theie reports, together with many associated facts and guesses as to what proportion of power tha finan- cial institutions really wield in the film institutions, as sppraited ac- ! coi'ding to their share of ownership and bond holding, led to an ex-1 haustive investigation, with the fol- lowing results in round figures,, found authentic: ] An Investment of more than $500,000,000 has been mado in the nioti.m pictiM-e Industry by banking Interests, the bulk of this sum hav- ing been advanced within the last two years. This has given them a controUIng Interest in some l.GOO of the finest theatres owned by tllm production companle* or other ex- hibitors. The value of theae prop- erties, some not yet constructed. Is estimated at approximately $1,- 500,000,000. raramount, operating about 500 houses. Is estimated at (440,000,000. Stanley, combined with First Na- tional, with about S60 houses, is valued at $350,000,000. Metro-C.old- wyn-Maycr, connected through I.oew's, Inc., with a chain of KO tlie.atres. Is figured at $300,000,000. Fox, Universal, Pathe-K-A and United Artists account for another 400 theatres, the value of these ho1ding.s being in the neighborhood of $450,000,000. EfRciency Men Paramount, Stanley, Fox, Unl- vers.al and Tatlie are under con- siderable bookkeeping obligations to their bankers. Years ago ^hen a banker advanced money on rea- sonable security he collected his In- terest In duo course and wa-s satis- fied. Today he advances the money with the "sup,;estlon" that an ex- pert be carried along with it to watf" the expenditure and. to a certain degree, regiilate It, Althoui;h btJt one-third the value of the properties Investe/1 In, bank- ing money Is practif ally all of the "liquid" a.ssets of many of the nu- ', tionul producers-exhibitors and is. ncrordlngly the powerful factor In i decisions rifrectliig the tr.ad". If banUng liit- rests ra.n run the picture business as they have ruti the raliroads and other hlg business I I then they can be depended on to [ , n^ak<. fhan^f-s for the betfep. In-, ' stead of op' iating six traf:k.s in a I c-naiii town. ba.nking interests j close three and give more complete I service on the others. A saving in { j money and tini» as well as better; I service. ] ! That banlLing Interests may af- ( t -ct the pa rure busines- lik.-v^ise j is shown In a reient deal wliereby a I lesser airplane film was not re- i j leased on account of the possibl.. i interfere, ee with the value r.f .-i JL; I si)< < ..li .air picttire doe to '.p.-n i"r a run In August. Keveral years Paramount Shows Profits at Rate Of $2.19 a Share for Second Quarter Paramount piibli.shed its profit and lo.ss account for the second UUlirter. to .iniie :M. l.ate I.ast week, shewing profits at the ntte of $1^.19 per sliai e oi common for tlie period. The st.itenient points otit that this U an iiicre;ise of 62percent over total for same quarter of 1926. The net after preferred dividends (or the 1)27 half year Is It.tt a share. The comparisons with second quarter (or 1>2S and 1(2( are set fortli a-s follows, together with the total of stock outstanding at each report: 1*27 IMS IMS Net profit %\/aBjm <S37«19 9M3,OM Shsres outstandinfl «77.7W 37S,M7 243,491 Availabis per share t2.1» VUST M.17 The statement goes on: "Ttu- net profit available ft>r common stoek for the second quarter of 19:;; is 62',i percent greater than for the second quarter of 1926, with an increase of stock outstanding of 56 percent over 1926. "The company commences the •27-'28 theatrical season further ahead In Its production than at an.v other time, and at present It has completeii ,all of its piefures for the remainder of 1927." (The increase In capital stock represents sales of additional common to furnish funds (or expansion In theatre ownership, and a minor amount In pa.vment of the stock extra of 2 percent. It Is estimated that $;1I>.000.000 of additional slock has been put out In the las' tlir*-e .\..aist. I'aramount's balance sheet for April 2, 1927, showed bank loans at $12,717,811, representing an Increase at alwut $7,600,000 from the figure of $5,079,594, reported for Jan. 1, 1927. This Increase had been aceumiilaled in the Intervening three month*. Binoo heaviest iTudueiiou costs fall in the summer time. It Is presumed that the item has advanced considerably since April. ; • Much ot the :urrent market gossip has coatif«Mi*''tt«M||':«iMl tM company's situation with the banks and to thta' liidlMi^: !■ M* tributed much r,f the stock's weakness In trading. The "Wall 8tieet .lournal" points out that fiom now oili^^ iBMIM from "Wings." "The Rough Riders," "Old ironsides," "Beau Ocate'' and others which go Into general release, will be available (or the liquidation of part of the bank loan account. Profits for i^ijn were equal to $10 52, On tile June SD.statement it apiiears ti :it h^f tiiat rate h.is .already been earned, with the more profitable h.ilf year still to come. Whiteman's Return Paul Whlteraan and bis orches- tra return to the paramount. New Vork, Sept. 10 for four weeks, with a likelihood ot staying six. This Is their first lap of a 40- week I'ubtlx Jaunt at $12,000 a week. Prior to the I'aramount run Whlteman will play some one-night dance engagements .tiirous^ New Kngland and Pennsylvania. Grsst Lskes' Playing Peliey liuffalo, Aug. Z. The Great Lakes this week In- augurated a new ruimlng schedule. The house will open at 12:30 in- stead of 11 and will show three shows excepting Saturdays and Sundays, when four performances will be given. Tlie theatre lias been glvitlg five shows dally. The new policy will effect malo- rlai changes In atagehands' and musicians' scales.' ' PAN MGR. SAYS HLM BEnER THAN VAUDE sum the balance of 14,000 theatres may be figured for a value of $1,000,000,000, It Is estimated that more than $1,250,000,000 w,L.s tak<'ii in through these 16,000 box odiees In paid ad- mlrasions last ye;tr. prior to the mid- summ*T slump. Sixteen picture houses t,n IJro.advvay alone average $:;.".(i,ilOO weekly. And since there are over 250 idctuie theatres In New Vork It may be safely said that Ciolhamltea spend $1,000,000 a iie. k, t:.2,000 1100 a yi ;ir. for picture - ri'. i r;iliitn< (it. These 250 li.»uses are only *>ne-Mixty-f'iurth of the total number In the United States, and one-third the number In Great- er New York. Kxhibitors srien.l about tJ7o.000,- 000 nniuially for tllm for these 10,- 000, representing approximately 75 per cent, of the total sales since thfi f'lrelgn mark't i»ayH almost $90,000,000 a yeai r..r Aiiierie.in pic- tures. The annual gross for the total Alfierhan f'lm output is amund $360,000,000. Up to the pre.sent, figuring on an- no.il receipts of $1,250,000,000 and lilio rentals at J.'70.oiio.ooo. the ct- hit'ilor pays sliirhtly ov r 20 P't '■••til. of the gross for his plcturew. Minneapolis, Aug. t. Manager Busttck of Pantages baa tamled the entire Fos output (or next season, Inrluding the super- specials like "What Price Glot^" and "Seventh Heaven." which It was expected that Finkelsteln ft Tiuben would get as usiul. As a result of this acquisition; llustlck puts the Pontages In a po- sition to compi'te with the new 4,200-seat Pul.ilx house to be opened tlurinfT the winter and to keep In the theatrical running gen- erally. With the Fox releases sewed up, Pantages will have a lilg edge over the Orplieiim circuit's i junior hoii.se, the Kevenlh Street, 'and even will make thicms lively for the leading Orpheum house, Hcnnepin-Orpheum, which will have to de|)end on Its vaudeville principally, as hitherto, in making lis bid for local patronage, Bostick says he has found hia present policy of playing up the pictures over the vaudeville pmv- Ing pri>fitable and ni-xt season, o( course, the pictures will be stress'-d and the vaude minimized more than ever. 1'hls season the Fox product has . l.ien <livi(l'-d betwren i'antagea and 11''. «• It. with tlie latter getting the , cream. The Warner pictures also I win spilt betwe' n pantages and IF, & It., with the latter concern taking the biggest and best of the product In this Instance also. I'an- tages also took the Universal pic- tures turned down by F. A R, which, however, used the Denny re- leases an,J olli'-r betl-'r cl.iss "L"* off' l ings. The Ilennepln-Orpheiim hnn h'^n using P. D. C. and Columbia tures for the most part and it will no doubt have to deiwnd upon this product and pathe the coming been reieased day and dale with the Speeial. Big Figures The motion picture Industry r*^p- resents a total estimated value of $2,500,000,000, With the chain thea- tres and natloital producer* ar- countlng (or «l.Ma.OM^« oC this A. »nt fl.» K.nl>»r« have made no attempt to nmalgamnte the Inde- P-nlent field with n view to lloat- ing stock Issues, h'rom reports *<f the high Interest rates asked from exhibitors for propose.1 theatre eon- struction there seems to be no llke- Hliood tiuit the bankers are Inter- ested Ip Independent prospects. L. A. TO N. Mi s. n,.rt Levey, N. Y. to L. A. HoinK-s Herbert. Lubittch on Coait Los Angeles, Aug. >. Ernst Lubltsch, director, noir ' under contract to Paramount. ar« rived Monday (rom New Tork. N* j nssignment haa yet 4Mea auUlo- -.