The New York herald., 1922-03-26
New Consultations
to Come Is Report
From EImland
Numerous Rumors Follow the
Goldwyn-First National
Merger.
ny FRANK vnEELAND.

ever now. 1t has been brought
" glow this time by the reported
consolidation OF Goldwyn Pictures Cor
poration and Associated First National
FIXTURES. and numerous rumors are
expected 70 ny like sparks from this
glow Such an amalgamation is ap-
parently part Of the shaking down
process Tor which VIII III. Hays was
brought into the movies. and the query
now rampant Is. What companies viii
~ fused next b. the lightning OF com
blnations
For the present the answer is a
zero. on the surface Of things no lion
of producers. Ike the Goldwyn lion,
IS going 20 lie down with lamb Of
cxhihltors-ytt. I3ut such move
might occur almost over night, wher-
ever two or three movie magnates of
different companies are met together
Informally 10 belabor the censors. One
POSSIBLE coalition that has been sug-
gested would be the union OF United
Artists which needs more pictures as
means OF carrying it's exchanges.
with some organization which could
provide enough productions to keep
tho costly booking Offices from gnaw-
ing at the vitlls of the pictures by
Douglas Fairbanks. Mary Pickford.
Charles Ray George Arliss and David
w. Griffith Marcus Loew Indignantly
repudiates the effort OF film wiseacres
to have Metro. his company. allied to
Famous I'layeVs-I.asky Corporation.
A theatrical parsonage well versed IN
photoplay sGairs explained the other
day the factors which turned Go.dwyn
and First National into celluloid Siamese
twins. Lake many other film officials,
,icldwyn executives have frequently had
to bite their knuckles over exchange
overhead and murfnur But what can
we do?" The cost or routing picture
through branch Offices is So per cent.
Of the returns even when reduced to
minimum BY lynx-eyed auditing Free
uuently the expense Of headquarters and
projection room runs above 40 per cent,
which makes film executives look sadder
than when viewing a rival company's
good picture At this rate it has be-
come almost impossible to make enough
profits to interest the Office boy.
When these membranes began 70
mount up as competition grew keener
cinema experts figured out II means OF
leveliug the overhead, and once more
the country's artistic future seemed
safe. This salvation. they held lay in
quantity production, turning out large
number OF pictures whereby the main
tcnance OF a branch exchange would be
distributed over several photoplays in
stead OF one. just as many taxpayers
bear the burden OF city government
more easily than a single Croesus could.
However. factory production led 70 the
machine made picture or inferior
quality, and as exhibitors began 70
insist that they should have two poor
photodramas at the price Of one good
film the producers found themselves
about in the position they were in
before, which was surprising as well as
uncomfortable for experts.
Along came First National with its
arrangement OF granting franchises TO
big theaters, such as the Strand IN
New York, which control the rights 10
feature films over a large amount OF
adjoining territory. and act as show
roosns through which the smaller ex-
hibitors can have First National pic
lures delivered T. o. b. the screen. This
enables First National 10 have only one
large office in New York city. and re-
duce the overhead 10 the status OF the
underdog.
such an arrangement for distribution
would be IN the nature Of a GIT Tor
Goldwyn. on the other hand. First Ma
tional stars At present need studios.
since most Of them, such as Norma
and Constance Talmadge. have 10 rent
stages, which cuts a big hole In funds
that might otherwise be devoted 10 buy
ing radophones. Under tho reported
agreement First National stars viii use
the vacant lots Of the Goldwyn plant
IN Culver city. CNL. at reduced rentals.
hut otherwise. aside from the booking.
the two organizations viii be no more
closely related than Ulster and the
irish Free state.
n snag that was encountered ~ first
was the question whether First Ma
tional would boom Goldwyn produc-
lions as heartily as those OF its af-
fliated stars. but this was finally set
tied bv a guarantee Of something like
N.-ao 70 Goldwyn on each picture. after
which everyone began calling everyone
clso brother"
Meanwhile Samuel Goldwyn. retired
president of Godwyn. seems to be ac-
coptlng matters phiiosophically. and
friends even say he thinks a. well of
iifa as ever. No doubt his Withdrawal
from the presidency makes him frcer 20
attend more first night shows u u
said that the swift elevation or FRANK
= Godsol left Goidwyn rocking on his
toes with astonlshmcnt A. much as any
body
Incidentally thcrc has been brisk
trndlng in Goldwyu shares during the
lsRf week. drawing forth much stock
market wisdom Something like l7so9
passed over the conuter m contrast 80
the mere trickic ~ shares monthly
which had showed previously that Gold
WINS pulse was stili beating The stock.
rcra several points which even tho
mind or a mere movie reviewer II able
70 interpret as buying movement.
The explanation advanced w that some
80 tho First National crowd are buying
M on what They consider = very Wood
thing. while holders - Goidwyn con
vcrtihis notes arc promptly cashlng ~
on them and thereby proving that Il L.
#ood thiug-f0r them.
The Famous piayers-taNiy Company
g. in \ position 10 dominate the market
not merely because 81 has NH exchange
gyatcm 80 we'll worked 0ut bat also be-
calse Il has i library" - old films
several hundred VI number, forming
cushion 10 break the inr of the over
head These rictugrs have lcnr aro
earned back their cost. ~ whatever thay
s#fs