United Artists Revised

United Artists was formed in 1919 by David Wark Griffith, Charles Chaplin, Douglas Fairbanks and Mary Pickford because they were tired of making money for other producers. One by one, United Artists' founders grew tired of making money for themselves. Director Griffith retired from the company in 1933. U. A.'s other original producers have almost ceased producing pictures in the last five years. Since United Artists stopped making their own pictures, other producers have made pictures for the company to release to exhibitors. Of the producers who release through United Artists, two have bought partnerships in the firm: Sam Goldwyn (1926) and Alexander Korda (1935). Last week, after nine days of conferences coinciding with United Artists' annual board meeting, the company's President Attilio Henry Giannini announced that United Artists' two newest partners had arranged to buy out its three remaining old ones.

Price which Producers Goldwyn & Korda will pay onetime Actors Chaplin, Fairbanks and Pickford was supposed to be $6,000,000. Terms were roughly $1,000,000 in cash, $5,000,000 within 90 days. Producers Goldwyn & Korda will put up $3,000,000 each. Under the old terms, 60% of United Artists' revenue went to Chaplin, Fairbanks and Pickford even when they made no pictures. Under the new terms, all will go to Producers Goldwyn & Korda but if any of the original members feels like making a picture, United Artists will distribute it. The deal does not affect producers like David Selznick and Walter Wanger who distribute through United Artists but are not partners. It gives Producer Goldwyn in Hollywood and Producer Korda in London a better chance to profit from their own enterprises. It also gives Producer Korda, who has been dissatisfied with U. S. exhibitors' handling of his pictures, a better chance to compete with Hollywood on equal terms.