Every evening, Wilmington daily commercial., 1921-06-29
Hunting the Wildcat
Film
BY Frederic J. HAskin

work I'm a new form. The wildcat
mpvie company has appeared. and has
scampered away with number of
the public's millions and vengeance
breathing posse of honest moyie-
makers hot on its trail.
This latest child OF American fraud
--llneal descendant OF the gold brick,
the wooden nutmeg. and the cherry
colored cat, first cousin OF the Salted
mine; the oil gusher for which the
promoter does all the gushing. the
pecan groves and rubber plantations
which grow only in the tropical
annaginations Of agents-is credited
with having issued stock To the amount
Of not lees than n quarter of billion
collars, and Some fifty millions OF this
amount Is said to have left home com
plete1y and forever.
Lured on by the knowledge of the
{. rtunes made by many in the moving
picture industry. large portion OF the
public has fallen an easy victim to the
dishonest promoter OF the wildcat
filnh company. The National Associa
ton of the Motion Picture Industry
has been most active in trying to ex-
pose and discredit these men, and a
vigilence Committee has been in ex-
istence for some time which has
achieved notable results.
During the past year. this committee
beg investigated more than a hundred
suspected moving picture companies,
representing combined capitalization
Of a quarter of q billion dollars. A
great many attempts to gouge and
yctimize the public have been dis
covered in time to thwart worthless
movie sock fotations. It was found
that as a rule these fiy-by-night con-
q rms were oficered by men with no
experience in the moving picture busi-
ness.
1t was particularly the producing"
companies Of this character which
were found TO be shady and question
able Usually they were composed Of
promoters evidently attempting, and
often with success, 10 cash in on the
widespread reports OF fabulous for
tunes made in the motion picture in
custry.
During the last calendar year, the
American public put $50. 600. 900 into
tho pockets Of dishonest promoters
through the purchase of pretty stock
certificates in worthless producing
Companies. This does not, of course.
include any of the stock issued and
sold by well established and profitable
motion picture corporations which sold
securities 70 the public during 1920
fer the purpose OF legitimate business
expa nsion.
But the wildcat companies, as a
lure, repeatedly call attention TO the
tremendous earning power and as~
sets Of the honest and established
concerns, seeking by this indirection
to associate their names with these
honest and above-board representa-
tiyes Of the industry.
It was for the protection of the
public and the protection Of the honest
companies that the National Associa-
ton of the Motion Picture Industry
about year ago, when the stock
selling operations Of the fake COM
panies were at high tide.
BY putting up the bars against the
wildcatters, the respectable and honest
movie men hope to protect themselves,
as well as prevent further nTulcting of
the public. James r. Quirk, editor of
| A moving picture magazine, heads the
committee.
Publicity the Care.
/ Mr.. Quirk says that publicity is the
| strongest weapon the committee has
found with which TO fight the dis
honest promoter. As a rule, he says
these promoters are shrewd enough
to keep within the law. even in those
states where blue sky laws exist
designed to protect the pocketbooks
of their citizens.
| The committee found that the
methods of this Wailingford type OF
promoter were usually the same
Rarely was the cost of foisting stock
in the company on the public less
than 40 or so per cent of the capital
ization, booming the concern to fail
ure from the start. Even bankers
and conservative business men--noi
in the moving picture business. how
ever-have been drawn into invest
| ing in the fake concerns.
/ During the past year the attention
of the public has been called to the
danger of this sort Of investment
with such force that very few, If any,
new producing companies have at
tempted 10 sell stock within the past
six MONTHS says Mr.. Quirk in re-
port of his committees activities.
/ In not single instance has one
LOT the questionable concerns made
good financially, it was found. nor
has one of these wildcat companies
made a single real motion picture
production. The promoters. pointing
to the glittering past OF the big con-
Germs which have made fortunes foI
many. and the supposedly rosy fu-
ture of their own scheme, neverthe-
less have met notable success in coax.
ing not-too-reluctant currency out o.
the pockets of their victims and intC
their own.
Some Examples.
! Not very long ago a promoter o1
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