The Washington times., 1915-07-11
THEATERS FOR. SALE
IN SEVERAL CITIES
E. F. AIbee Discusses Reasons
for Distress Among Play.
house Owners.

NEW YORK, July n.-Five theaters
In Providence. r. l., are offered Tor
sale or lease following a season IN
which patronage has been small.
These theaters were erected at the
time a certain group Of managers went
theater-building mad throughout the
country. despite the warnings OF such
LANCER and Z. +. Aibee. Now that the
enthusiasm of the promoters Is damp
ened and there is not sufficient money
with which to meet obligations. land
lords are looking in vain tor RESPONSE
BILE tenants.
Providence Is not alone In Its distress
Big and little cities all over tho coun-
try report similar conditions.
Mr.. Albee. who is vice president OF
the B. F. Keith theatrical circuit, with
eral manager of the United Booking Of
flee. who has been gathering data on
the overproduction of theaters, flnds
that New York. Philadelphia, Boston,
hardest hit. and that thousands OF In
vestors are being wiped out financially
| from time to time.
Promised hundreds OF per cent profit
| a small per cent OF the par value of the
| stock for which they subscribed. they
later found themselves assessed for the
balance, and then compelled TO go deep
er into their means In order 70 protect
! the money already invested Eventual
ly they are wiped out, either by having
to sell their stock at an almost absolute
| loss or else receivership proceedings
Wind them up.
Too many theaters already erected.
| too few attractions to fill the existing
theaters. and too little money in the
public's purse to support 50 many play
houses are the main adverse factors.
The majority of such theaters SO
rnnNarna1 n
Of the control Of the original investors.
who are usually recruited from the
great class that always falls for any
get-rich-quick scheme.
| According to Mr.. Albee, the small
business man. and often the big bust
ness man. who goes to popular the
! ater. always filed. but perhaps the
only one In town to be SO favored.
seeing the crowds fghting 70 give
up their cold. hard cash ct the box
Office and reserving seats a whole
season ahead. can hardly be expect
ed to know the ins and outs OF cir
cult afiliation. city franchises for
booking purposes, and other advan-
may enjoy to the exclusion Of all
other houses in the same city
| In his ignorance Of the organized
, conditions among experienced man
enced hreakers-into the business. Ne
Investor already nibbIing at pro-
moter's bait is prone TO conclude that
there Is no business, except whisky
selling, which takes IN such an
amount OF hard cash. with such un-
broken how. and with such immense
profits. as the theatrical business
and he is likely to think that his
payment OF SO down on account of a
800 share OF stock will certainly
years to come.
Prospectuses without number have
been seen by Mr.. Albee which made
Investment conditions appear tina,
strong to the ignorant and ineKpcri.
enced investor with a little none!
saved up by the sacrifice Of the com
forts Of life.
The theater may be erected. but
there are mortgages on II. and ther
comes the question Of attractions.
Even II this Is all right. II may turr
out that the theater has not been 10
Gated right that It lacks transportation
facilities. and so on. Then there are
operating expenses. No one though
would be a loss. with expenses. interest
taxes. fixed charges, and other items
going on in an endless round. No none,
has been provided for a sinking fund
| Then comes an assessment. then mort
Of them-the investor has to respond o,
sell his stock usually at a loss; finally
comes failure and reorganization. Al
the original stockholders are wiped out
The final owner may have got 1t or
such terms that he can afford to run 4
for less money or he can lease II to
member of an existing circuit for {
reasonable rental. Originally 1t ma,
have cost a million to build and equip
but the final owner may have bought |
for fifth of that. Perhaps he cal
make money out OF It on that cos
; basis: more frequently he cannot, mt
then 1t Is turned into a storage hous
or a garage. Even the motion pictur
houses are subject to the same muta
! tlons. and investors In these suffer tn
same hazard but In a lesser degree thar
their fellow-capitalists Of the larges
! theaters.
Last season efforts were made to brin
the two big theater syndicates togethe
for the purpose OF reducing the numbe
. OF theaters under their control. so tha
/ there would not be more time to fll an
: more theaters to cater to than the
could provide attrac for The get
= together failed then, but 1t Is bound I
= come. When 1t does still more theater
! Will be idle. Such are Mr.. Albee'
will be idle. Such is Mr.. Albie's views.