Economists will say that it is an ideal condition for a producer to sell direct to the public, and it would be, if the public were to get the benefit of the saving made by the elimination of the middleman. But it has seldom worked out that way. By over-capitalization and other devices known to corporations, the producer has managed to pocket the savings himself, while assuring the public, and ostensibly providing it by means of his books, that he is making only a reasonable return. Were the public to put practical men in charge of its affairs instead of politicians, such a condition might be prevented, but that would be anticipating the millennium. But it is not here that the danger lies.
Motion pictures are amusement and are, therefore, luxuries.
The public can soon end overcharging by staying away from the theater when prices get beyond its purse, but it never can be assured of high-class entertainment at reasonable prices unless there is healthy competition. Let us then, begin with the producers. Although there are more than 100 producing companies in the field today, those of real force can be counted on the fingers of two hands. The others are either directly or indirectly connected with the big corporations that control the industry or are owned by men of only moderate means, with no extensive financial backing. The industry also is afflicted with the usual number of crooked promoters, who organize companies solely to reap a harvest from the sale of stock.