The evening world., 1917-01-24
MOVIE CITY BUILT
ABOUT TWO HORSES
AND SOME BIG HATS
Universal'S Treasurer Tells
Legislative Investigators of
Company's Evolution.

r. A. Powers, Treasurer OF the Uni
versal Film Manufacturing Company
resumed tho stand when Chairman
Hcber II. Whccler's legislative Com
mittce met at IL o'clock this morning
3 in the Murray Hill Hotel
The committee was appointed "a
delvo into the moving picture bust
ness with the idea of defining its real
status in the Industrial world and
It's relations to and with the public
Its present purpose Is to inquire into
the enormous salaries paid to the
movie stars. which will largely de-
termine where the big money goes.
II is probable that before the ses-
slons are concluded Mary Pickford
Charlie Chaplin, Douglas Fairbanks,
Beverly Bayne, Theda Bara and other
spotlight favorites may appear In
stellar roles before tho committee.
1T is not our purpose TO go after
the movie people with a broad axe"
said Chairman Wheeler. I'VE simply
want to know all about thom and
want TO do everything that Is fair.
We want to first find out how much
money they are making and where
the money is going. There appears
TO be no doubt that more than a score
OF the stars are getting 100000 or
more n year. II the published figures
be cut In half. the silent actors are
getting pretty well paid.
We feel that the business should
be regulated. Just how Is wha: we
are trying to determine. l admit now
that the bill for n censor which in
troduced In the last Legislature would
not fit conditions of to-day. II would
he unfair to the producers. But there
must be some way OF regulating the
business, and this we hope TO do"
The Chairman went over tho prev
ious testimony OF Mr.. Powers regard
ing the corporations taken over by
the Universal at the time of its or
ganization. Only one of the eight
companies taken over Is now In ex-
istence.
Mr.. Powers said that he and Carl
Laemmle, President. owned the bulk
of the Universal stock. In response
10 n question by Former Senator Har-
vey ID. Hinman, he said that the eight
companies absorbed by his corpora
tion had only laboratories, studios and
& ,od will, principally good will. They
were paid in stock, 2,000,0 900 shares OF
common stock being issued for the
purpose.
The witness gave the history OF Uni
versal City an California. He said
pta 80 oil -
horses and some big hats, for that was
all that was necessary for Wild
West picture in 1912.
Then we got lot" the witness
said.
How big a lot?" inquired Senator
Hinman.
About 400 acres"
you call that a lot out In Cali
fornia?" queriod the Senator. That's
"a farm In this country"
From the horses and hats, Mr.. Pow
ers SAID. they had 10 build shacks,
each costing about $4,000 or SO. until
they had an investment OF $3.50. 900.
and the town OF Hollywood was now
insisting that the Universal connect
up with n big sewer.
Mr.. Powers went into tho organiza-
ton OF exchange houses all over the
country and in Canada. When the
Universal discovered that exchanges
in any city or locality did not or
would not handle Its pictures IL
bought into or bought outright old
exchanges or started new ones. The
pictures. he said, were made TO be
sold, and way TO distribute them
had to be found. lie said that the
Universal had also about thirty or
thirty-two producing companies.
What is meant by presenting? Is
that any different from production >"
was asked.
mo. Presents just lends cinss."
Mr.. Powers said that his company
sent out twenty-one pictures a week.
IIo owns tho greatest amount OF
stock in the majority OF the film OK
changes and President Laemmle
tho balance. Mr. Laemmlo came
here from Oshkosh. Wis. and was
formerly in tho clothing business.
A. the afternoon session Mr.. row-
crs told of having branch offices In
South America. Cuba and tho Far
East. Agencies, he said. have been
established IN Bombay, Singapore.
Toxic and Shanghai.
"You never can tell how much n
picture Is going TO cost" said Mr.,
Powers, "until II is finished You
nCure on SlO'UuU ana your product
will run up TO $4,000"
He said there are three classifica-
tions of pictures tacular, comedy
and tho short story film. Tho cheapest
product IL sold, or let out, at 10 cents
a foot Some OF the big specta clos
arc cheaply made, but tho recent
undorsea production, which was to
cost $4,000, ran up TO 100000.
This was In real cash" added Mr.
Powers.
William A. Brady. II Is expected,
viii bo n witness tomorrow, as will
rhnmna Inca