Evening star., 1928-12-18
BY KENNETH s. VAN sTRUM.

NEW YORK, December 18,-Two
weeks ago when the sharp reaction
brought the stock averages down Is per
cent in the course of three trading days,
the movie stocks as group held their
own very we'll. For in spite of the fact
that they had been in the forefront OF
the advance since June and therefore a
normal technical reaction would have
been quite in order, it was obvious that
they we're meeting some very good buy
ing power This viewpoint was vindi-
Gated after the first reaction by the fact
that at the first opportunity these stocks
showed good advance from their lows.
The action of these stocks in the mar
ket shows that radical change is TAX
ing place in the industry.
Early this year the first successful
talking movie was presented, and 1t
took" with such a vengeance that the
entire industry has become demoraliZed.
The SynchroniZation of sound with mo-
tion pictures opens up new era for
the movies The public's reception of
the first "talkies was overwhelming,
and producers now say that the in
creased public interest has greatly in
creased the possibilities of the industry,
and that over period of time it will
bring larger total revenues to the in
dustry.
Talking Movies.
Any producer can make sound pic
lures today--it is only necessary to take
out licenses with Western Electric. And
there are three important ways of re-
producing sound: Vitaphone, the movie
tone and the photophone. In the Vita
phone method the film is synchronized
electrically with recording apparatus
on the principle of the phonograph. In
movietone, the sound is obtained by a
ray of light passing through lines of
varying thickness on the film, and hit
ting photoelectric cell with varying in
tenSity. The photophone operates on
substantially the same principle except
that wavy line regulates the intensity
of the ray of light which passes through
the film and hits the reproducing ap-
paratus. So far as quality of reproduce
ton Is concerned, 1t is said that there
is little to choose between the different
devices, the principal advantage of one
device over another being in the longer
life of one film over another.
Profits i'm Exhibition.
There are two distinct ways by which
CUUlpdIIy Cdll NY LLllS Vi dAC AOl
"talkies by owning a large
string of theaters and thereby forcing
the producers of good talking pictures
to use the rheaterS on a percentage
basis or by producing good talking
pictures.
The trend of the industry in recent
years has been into the exhibiting end
Of the business for producers have come
to realize that control of chain of
theaters gives them a splendid oppor-
tunity to test out their own films, as
we'll as to make additional profits by
exhibiting. In addition, since no pro-
ducer can produce all the pictures
needed in chain, they can swap re-
leases with other producers who own
chains of theaters and thus obtain an
additional good outlet for their films.
In order to maintain their position in
the industry most producers have been
forced to combine with large theater
chains.
Each Picture a Gamble.
The advent of talking movies has
upset all the work of the old stars.
Today companies have to experiment
with new methods to develop new stars,
for, while many new stars will enter
the field, many old movie favorites will
not be able to get their personality over
in this new medium Of expression.
From the production standpoint 1t is a
great gamble The full returns from