The exchange is of course dependent on the manufacturer of the films. It always runs the risk that the manufacturer may not turn out the kind of films that will please the theatre's patrons. Most exchange companies have been in the past so organized that they have only a moderate control of the output of the individual producer. Exchanges, like producing plants, are bad fire risks. A few weeks ago one exchange concern suffered a fifty thousand dollar fire loss in a southern city.
Circulars concerning motion picture companies often fail to refer to the above hazards.
The exhibitor has his share of troubles. The first, of course, is the choice of location. If he builds a theatre he wagers a considerable amount of money that he is choosing the right comer. If he leases a building he assumes a heavy obligation that may break him if his judgment is not good. He must gauge accurately the public's taste.