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Group Title: Annual report to the Motion Picture Producers and Distributors of America
Title: Annual report
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Permanent Link: http://ufdc.ufl.edu/UF00094189/00005
 Material Information
Title: Annual report
Physical Description: v. , : ; 22 cm.
Language: English
Creator: Motion Picture Producers and Distributors of America
Publisher: s.n.
Place of Publication: New York
Publication Date: 1941
Frequency: annual
regular
 Subjects
Subject: Motion pictures -- Periodicals   ( lcsh )
 Notes
Dates or Sequential Designation: Ceased with 1944/45.
General Note: Each report has a distinctive title preceding the words "Annual report..." on t.-p.
 Record Information
Bibliographic ID: UF00094189
Volume ID: VID00005
Source Institution: University of Florida
Holding Location: University of Florida
Rights Management: All rights reserved by the source institution and holding location.
Resource Identifier: oclc - 01645316
lccn - 37015315
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Preceded by: Presidents report
Succeeded by: Annual Report

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Table of Contents
    Front Cover
        Front Cover 1
        Front Cover 2
    Title Page
        Title Page 1
        Title Page 2
    Report of the president, Motion picture producers and distributors of America, Inc., March 31, 1941
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Full Text







MOTION PICi RIES i

AND TOTAL D EREE/











S11 n it l R p u r rt
Br WILL H. HA'i S PeIiden


TI MOI ION PICTURE PRi)DUCERS
ANDDIS RIBiUTORS OF AMERICA. INc


2q XVE-r 44Hn STREET. N. Y. C


70/lBB


-I rcH 31. 1941













MOTION PICk"U V-S'

AND TOTAL DEE'N.SE*










1 u 11 a I R c po r


l. \W ILL H. HAYS. /','l..Irl

TO MOTION PICTURE PRO)DU.iCERS
AN D. DISTI RIBLT RS OF AMERICA I,,
4T STRT. N.
B 2S \'riT 44"rai STRETrr. N. Y. C.


MARCi 31, 1941


79.


I




79 /'
A/Q/ /


UNIVERSITY
OF FLORIDA
LIBRARIES










REPORT OF THE PRESIDENT


NOTION PICTURE PRODUCERS
.\ND DISTlIRBUTORS OF AMERICA, INC.
March 31, 1941



T IME is sure to record the year 1940 as a period of supreme
crisis in the history of the world. During those twelve
months many great nations were over-run by war in Europe,
the life of many small countries was snuffed out by fear, and a
narrow strip of water the English Channel became the
bridgeless moat that halted the rush of conquest. Had it not
broken against the indomitable will of a great and fearless peo-
ple, Democracy in the Old World might have been blacked out
for a thousand years.
It was the year when France fell and surrendered, when
Scandinavia, Holland and Belgium were submerged, when
Greece was attacked and valiantly fought back the invader,
when the imperial dreams of the Roman dictator found a rude
awakening in Africa, and when our own great republic looking
upon the shambles of freedom across the seas adopted the un-
precedented step of peace-time conscription and undertook a
vast program of national defense and aid to the democracies.
It is against this background, painted with huge black
strokes, that the progress of our own, as of every industry, must
be reviewed for this period. During 1940 the American motion
picture industry met this irresistible impact of world events







which obliterated many of its foreign ii,. lket.. I )rii in..
period it had to effect and quickly sinuiv (e-rilinmieNs inli.'
necessary by the loss of foreign income. n\u during tins mrner-
gency it had to brace itself for a radical change in the distrilbu-
tion and sales methods prevailing in the inidIistr\ alnit since
its inception.

Gauged to a world market established bv ti..- u.ipi nritv
of American films, the industry saw count \ after count, x s.jg.
crumble and disappear in the maelstromn ol \ ai Ind tl.-ir
markets crushed beneath the hob-nailed boots of rutliles, in-
vaders. During the year 1939-40 the cui tain d.as drawn Iupon
and all income stopped from the following I count] it :


Belgium
Danzig
Denmark
Esthonia
Occupied France


Germany
Holland
Italy
Japan
Latvia


In addition, industry income from thel
tries has almost ceased:


1- it I : I

"',l ir. I



holl,:,;ji,114 13 <(:.,11-


Bulgaria
China
Egypt
Finland
Unoccupied France


and French
Colonial Empire
Greece
Hungary
Rumania


Simultaneously, exchange restrictions in. Lati \),ei ica. th c
British Dominions, and elsewhere have still Irtliher diininislied
dollar receipts available toward the expens.em (if maintaining
the production and distribution facilities of the \inerican in-
dustry, long recognized as the chief soure-. I motion pictII Ies
for the world market.


S [Xi I I
ii
Sy. lIrt- ri ii in
T j r 1< ~








Not\t ithstandiniirg tlie serious blows received by the indus-
try through the closure or reduction of many foreign markets,
as \well as by the freezing ol substantial credits in export fields,
certain distributor member companies of the Association have
consented to revolutionary changes which are being put into
effect this year, in their trade practices. Other distributor mem-
ber companies situated differently and for various structural,
economic, legal and other reasons were unwilling to accept the
Consent Decree. The result of the experiment, however, con-
cerns everyone.
As important and significant as the pattern of sales prac-
tices that has now been created, are the provisions that what-
ever is good under the consent decree can be maintained and
that whatever proves impracticable to the functioning of the
screen in entertaining the millions at a price within the reach
of the people may be corrected as the result of actual experi-
ence.
Only time can determine whether the experiment now
undertaken will work out in every provision. What has been
established, however, is a result which neither destructive
legislation nor expensive litigation could by themselves pro-
duce. Legislation and litigation may decide an issue, but only
self-regulation can solve a problem.
The consent decree was entered into on November 20,
1940. With the Government sitting in to determine how its
operation works out in practice, the experiment will reveal the
extent to which any provision may need future modification so
that the new trade practices may operate in the public interest
and in the interest of all elements in the motion picture indus-
try. The decree does much to eliminate the controversies that
have been so widely advertised as "blind selling" and "blind


Con-sent Decree







buying" and limits wholesale selling to blocks of five picti.ires
only.
An arbitration procedure based on consent lihas nw been
set up. No exhibitor is forced to arbitiate. Except irisi'.far as it
is obligatory on the companies which consented to tlie decree
arbitration is purely voluntary. Today our studios aie numking
their production schedules conform to the drastic clhangc.'
for the release and distribution of pictures required b tlihe
decree which is effective September 1. 1941.
The industry is not without experience in the s, ultion of its
trade practice problems by means of arbitration. Tie uindns-
try's form of arbitration in force for six \ears affect.cd appi,'ii-
mately 10,500,000 separate exhibitions of pictures which1 \\eie
contracted for annually by the nation's exhibitors. Whereas
more than 4,000 lawsuits were pending in the industry in 1922.
in the six years that the original arbitiationi procedure %\as
operated 51,255 claims that were filed were settled or \ itli-
drawn before the date of arbitration: 36.777 awards \were
rendered; only eight lawsuits occurred ard claims totalling
more than $27,000,000 were peaceably and effectively settled.
The new arbitration machinery, now decreed, will cost the
industry approximately $500,000 a year to nmainitain,. It is ani
earnest of the intention of all parties, I believe, to work out the
problems of trade relations so that there imay be ino jisliliahl
complaint from the industry or the public.

Entertainment Pro.rc res
That the screen during the past yeai was able to me._t tlit,
extraordinary problems presented on the doii e, tic as \ell is (1i,
the foreign front is a tribute to the vitality and organization of
the motion picture industry. The industi Y redoubled its efforts
to produce photoplays that the Americnai, people \aiit. aind

4
UNIVERSITY OF FLORIDA

3 1262 08648 292 3







notwithstanding the imperative necessity for economy, it has
been able to maintain employment and payrolls without sacri-
ficing the entertainment interest of the vast motion picture
public served by' more than 16,000 theatres in the United States
alone. The fact should be recorded, also, that every element in
the industry co-operated in the adjustments that had to be
made. How well producers, distributors and exhibitors met the
problem of better entertainment and lower costs, is for pic-
tures, not words, to tell.
Within the limits of entertainment alone and that is not
the only service rendered by the screen during the past twelve
months motion pictures during the year under review cov-
ered a wide range of appeal.
In the field of Americana, there was The Westerner, Edison
The Man, The Howards of Virginia, Boom Town, Brigham
Young, Virginia City, The Great McGinty, Arizona, Knute
Rockne-All American, Wyoming, Western Union, Kit Carson,
Chad Hanna to mention but a few of the typical films of this
character.
In the broad areas of drama, comedy and music, there were
such outstanding pictures as Rebecca, Pride and Prejudice,
Christmas In July, The Fighting 69th, Kitty Foyle, Angels Over
Broadway, It's A Date, Our Town, They Knew What They
Wanted, All This And Heaven Too, Philadelphia Story, North
West Mounted Police, No Time For Comedy, Ghost Breakers,
The Long Voyage Home, Irene, Spring Parade, Bitter Sweet,
and others of equal merit.
The somber and satirical aspects of the tragedy of Europe
were reflected on our screen in such pictures as The Mortal
Storm, The Great Dictator, Night Train, Foreign Correspond-
ent, The Man I Married, Comrade X, Escape, The Ramparts
We Watch, Pastor Hall and other films.






Finally, in a field that defies classification theie \\'s the
extraordinary Disney production of Fantasia, \\ Iick! m.I 1kei
another step in combining music with visual antii'\

Our industry has learned that whatever are the economic
problems that must be faced, it must build upon the tti ith at
our entertainment public is as big as good pictures c.anr, make it.

In the tension created by the emergency of iati,:!.ial J-
fense and the war in Europe, it was natural that the scre-ii i.t
as the press and the radio should be subjected to the st' :tlii, "I
differing opinion. Fortunately our record could speak !-,, i tse
on any issue that arose. It spoke most eniphaticall.v :.'!aist
any charge that the screen was a breeder of hate. \\'e Ve, e .i !e
to prove by statistical and other information thai the indtustr\
had not departed from the policy, announced ini the Fall ol
1939, of producing no cycle of "hate" pictures, and that otm
programs were so balanced as to cover completely the iin-
dustry's news as well as entertainment responsibilities.
In response to such charges, the record establislh-.d that
16% of the news reel clips dealt with a vai ietv of people- :iiiil
current events related to national defense; while onl\ 2.4-.1 of
the short subjects and 5% of the features approved dtlmi! 19-4(
had any relation, direct or indirect, to European polit ic or t Ihe
European War.

Essential Service of the Films

It is significant that even those who would substitute bIo'l. s
for butter dare not strike entertainment off the list of necessi-
ties, however distorted and adulterated is the product the\
provide. Even tyranny shrinks from this last olTense to the
peoples. Theatres remain open in occupied countries.






In England, where no bar exists to our news reels, shorts
anrd feature pictures, tile therapeutic value of entertainment is
so clearly recognized that motion picture theatres were re-
opened within a imontlh after the declaration of war had closed
them. Pictures are considered an essential entertainment ser-
. ice by a nation which Ihas stripped itself of every non-essential
for its life or death battle. Films %\ ere considered equally essen-
tial in our own country during the last war. In the emergency
that faces us today the universal entertainment of the screen
is a definite element in total national defense. If the movies sup-
plied nothing but relaxation, ours would still be an essential
industry vitally essential in maintaining public health under
the present nervous strains, vitally essential for the rest and
recreation that must keep our human machinery up to the
needs of speedy and increasing production, and essential also
for our mental health.
But the function of entertainment in a period such as this
is even greater than recreation. Our pictures news reels,
shorts and features aid invaluably in maintaining national
morale, both in the armed services and within the ranks of the
vast body of civilian workers. Much of our entertainment must
supply not only relaxation, rest and renewed vitality, but faith
and confidence in our future and inspiration for the difficult
days ahead. As for military morale, what applies to the Army
applies to the Navy. Naval leaders testifying before the House
Appropriations Committee on March 13, 1941 declared that
motion pictures have become "a most important element"
contributing to the maintenance of naval morale.
In both these fields the film finds its primary purpose. Such
a service is not merely our opportunity but it is our obligation
today.
In stressing the essential service of the screen it must not be
overlooked that it is entertainment appeal which must con-






tinue to provide the broad highway of communication \ ith
the people who purchase an average of 80, 00(.)l)() mi option pic-
ture admissions weekly. It is along that highway that the miian
services of the screen must roll. It would be a poor setr ice to
the country if the screen's entertainment appeal were to be
curtailed so that this highway of communication \were nar-
rowed by lack of audience interest. Not the least co-operation.
therefore, which the industry can render to national defense is
a continuation of the experienced showmanship needed to
maintain the interest and attention of the great notion picture
audience.

The Screen in National Defense
As a medium of information, education and entel tainment,
the screen has a special obligation to the institutions which h
have nurtured it. It is the beneficiary of freedom freedom of
expression, freedom of initiative and freedom to develop artis-
tically, culturally and economically in the public interest. It
was therefore right that the entire industry in ll its branches -
production, distribution and exhibition should ha e organ-
ized itself as it did early in the present crisis for such ser\ ice as
it may render to the task of national defense.
Representative exhibitors of the county v were among the
first to organize in the task of national defense. It is through
the exhibitors' screens that the continuing news of our national
preparedness is reported. And it is the exhibitors who are in
direct touch with the vast motion picture audience.
Indeed, it is a task which demands the full co-operation of
those who make, distribute and show pictures. The o er-all
effort organized by members of the industry is e% ident in the
composition of the committees now co-operating in this great
patriotic venture. As already announced, the full organization
is as follows:








MOTION PICTURE COMMITTEE
CO-(OPERATING; FOR NATIONAL DEFENSE
Erli' tu AiNuLD. rrt i,.l, t. S,.ren: i .,t,. Guild
B \%tN E- P, kL ui,.. PN ridlt ra. P.,raimouu t P:. tures, Inc.
N TE J. BLU. HI LICJ. Prc',.,:rnt, Uta .r-i.l Pj.:iures Co., Inc.
11ARRY BRANDI, President, Independeuit Theatre Owners Association, Inc.
FRANK CAPRA, President, Screen Directors' Guild, Inc.
I. E. CHADWICK, President, Independent Motion Picture Producers Assn.
JAMES P. CLARK, President, National Film Carriers, Inc.
HARRY COHN, President, Columbia Pictures Corp.
H. A. COLE, President, Allied States Assn. of Motion Picture Exhibitors
Y. FRANK FREEMAN, President, Association of Motion Picture Producers, Inc.
SHERIDAN GIBNEY, President, Screen Writers' Guild, Inc.
JAMES R. GRAINGER, President, Republic Pictures Corp.
JOHN H. HARRIS, President, National Variety Clubs
WILL H. HAYS, President, Motion Picture Producers & Distributors of America, Inc.
EMERY HUSE, President, Society of Motion Picture Engineers
W. RAY JOHNSTON, President, Monogram Pictures Corp.
SIDNEY R. KENT, President, Twentieth Century-Fox Film Corp.
EDWARD L. KUYKENDALL, President, Motion Picture Theatre Owners of America
FRANK W. LOVEJOY, President, Eastman Kodak Company
ROBERT H. POOLE, Executive Secretary, Pacific Coast Conference of Independent
Theatre Owners
HERMAN ROBBINS, President, National Screen Service Corp.
GEORGE J. SCHAEFER, President, RKO Radio Pictures, Inc.
NICHOLAS M. SCHENCK, President, Loew's Incorporated
MAURICE SILVERSTONE, President, United Artists Corp.
T. KENNEDY STEVENSON, President, Electrical Research Products, Inc.
G. K. THROCKmORTON, President, RCA Manufacturing Company
W. G. VAN SCHMUS, Managing Director, Radio City Music Hall
WALTER WANCER, President, Academy of Motion Picture Arts and Sciences
HARRY N. WARNER, President, Warner Bros. Pictures, Inc.
HERBERT J. YATES, President, Consolidated Film Industries

NATIONAL CO-ORDINATING COMMITTEE
GEORGE J. SCHAEFER, Chairman
FRANCIS S. HARMON, Co-ordinator
JOSEPH BERNHARD, Chairman, Theatres Division, ex officio
Y. FRANK FREEMAN, Chairman, Production Division, ex officio
E. B. HATRICK, Chairman, Newsreel Division, ex officio
MARTIN QUICLEY, Chairman, Trade Press Division, ex officio
WILLIAM A. SCULLY, Chairman, Distributors' Division, ex officio
BARNEY BALABAN WALTER VINCENT
JOSEPIH H. HAZEN R. B. WILBY
WILLIAM C. MICHEL NATHAN YAMINS
NICHOLAS SCHENCK









Production Division
Y. FRANK FREEMAN, Chairman
LT. COL. DARRYL F. ZANUCK, Vice Chairnian


EDWARD ARNOLD
JOHN ARNOLD
FRED W. BEETSON
CHARLES BOREN
SAMUEL J. BRISKIN
FRANK CAPRA
JACK CHERTOK
RICHARD DAY
SHERIDAN GIBNEY
EDWARD HANSON
CORDON HOLLINGSHEAD



NEIL F. ACNEW
GEORGE DEMBOW
NED E. DEPINET



WALTON C. AMENT
LOUIS DEROCHEMONT
THOMAS MEADE



JACK ALICOATE
JAY EMANUEL
JOHN C. FLINN
CHARLES E. LEWIS


JOCK LAWRENCE, Secretary
SOL LESSER
LT. COL. NATHAN. LE1LN%6ON
E. J. MANNLX
FRED MYEBS
ALFRED NEm'MAN
JOHN NICKEL .IT.
MENDEL SIDELERBEiC
HOWARD SrnuCKLtN
ROBERT S. T.ArLENGEiA
HAL WALL_
WALTER W.ANG ER
Distributors' Division
W. A. SCULLY, Chairman
WILLIAM F. RODCErli
GRADWELL L. SEAr-.
HERMAN WOBDEiE
Newsreels Division
E. B. HATRICX, Chairman
ALBERT J. RBici.%r1r
TRUMAN H T.;LLEY

Trade Press Division
MARTIN QUICLEY, Chairman
BEN SHLYE-J
ARTHUR UNCA R
WILLIAM R. \\ lLKERrNrr

Theatres Division


Executive Committee, Theatres Division
JOSEPH BERNHARD, Chairman
E. V. RICHARDS, JR., Co-Chairman
A. H. BLANK SAM E. Monpps
HARRY BRANDT JOHN J. O'CONNOR
S. H. FABIAN R. J. O'DONNEj.I
JOHN H. HARRIS SPYROS P. SKt-ar.-
E. L. KUYKENDALL R. B. WILBY
CHARLES C. MOSKOWITZ NATHAN YAII.N
Co-ordinating Committee, Theatres Divi.,.n
R. B. WILBY, Chairman
A. H. BLANK E. V. RICHArns, |i,
CHARLES C. MOSKOWrrITZ SPYROS P. SK.ItarILS








Orga zrtfioun Cuorinmte(. Theatres Division
H lpjiy bn.~\i, ChIairman
I,'t{" II. H.mAhL% JOHN J. O'CONNOR
E L KL'Y'KENDALL NATHAN YAMINS
Sub-Committee for Field Organization, Theatres Division
JOHN BALABAN JACK KIRSCH SAMUEL RINZLER
E. C. BEATTY E. L. KUYKENDALL JOHN RUGAR
CARL BUERMELE I. LIBSON J. MEYER ScmHINE
WM. F. CROCKETT M. A. LIGHTMAN FRED SCHWARTZ
JAY EMANUEL FRANK NEWMAN MORT H. SINGER
S. H. FABIAN R. J. O'DONNELL WM. SKIRBALL
HAROLD J. FITZGERALD SAMUEL PINANSKI CHARLES P. SKOURAS
JOHN J. FRIEDL ROBT. H. POOLE ROY L. WALKER
JULIUS GORDON ELMER C. RHODEN HARRY M. KALMINE
L. C. GRIFFITH FRANK H. RICKETSON

Publicity Committee Theatres Division
OSCAR DOOB, Chairman
HARRY BHANDT HARRY MANDEL
HARRY GOLDBERG AUBREY SCHENCK
CLAUDE F. LEE
Specially organized for this task, the screen has covered
the debate on measures and methods that affect the safety of
our country. It has reflected the news developed by our mili-
tary, naval and air establishments. It has presented the mount-
ing story of the selection and training of American manpower
for service on land, on sea and in the air, and it has pictured the
gigantic industrial mobilization undertaken by our country in
a race against time so that the nation may be prepared for any
further emergencies that may overtake it.

In the inspirational themes woven into many entertainment
pictures, the industry deserves the tribute paid by a distin-
guished critic of the screen. Referring to some of these films
now showing in our theatres, he declared that in treating of the
basic values of the democratic system, "it is a grand and glori-
ous thing to see the cinema restate, in simple and direct terms,
its faith in this ideal, even if its fulfillment isn't altogether per-
fect and admittedly must take stock of itself."







Significant of the services to national defense contributed
by Hollywood is the cooperation with the Government through
the Research Council of the Academy of Motion Picture Arts
and Sciences, in the training of Signal Corps officers in motion
picture methods. In addition, the Council with Lt. Col. Darryl
F. Zanuck as chairman is collaborating with thie U S. AritvY
Signal Corps in producing 50 non-theatrical films dcsig ned foi
use in army camps and considered an important element iln
the training program.
Secretary of War Stimson has expressed his ',_reat appieua-
tion of our studios' efforts. "The patriotic interest." lie wrote.
"which prompted the offer of the facilities of the- industry inr
this co-operative program is evidenced by the outer to operate
on a non-profit basis. This concrete offer is very iimuch appre-
ciated."
Inter-American Films
Through its news reel services, its short subjects and feature
pictures, the American motion picture industry definiiely con-
tributes to the maintenance of the closest possible solidarity
among the republics of the Western hemisphel e. Such solidar-
ity in the last analysis rests upon a knowledge of one another"s
cultures and the increased appreciation and respect \\ which such
knowledge brings. Our industry is aware as never before not
only of its responsibilities but of its opportunities in th is a; e.i.
The industry is co-operating with the organization headed
by Mr. Nelson Rockefeller in the work directed tocva ds close
commercial and cultural relations with Latin America as .ell
as with the world-wide cultural relations activities ol the
State Department. Under the leadership of Nir. Joliiin Ha\
Whitney and of industry committees recently\ organized. .
planned effort is under way to bring to the motion picture
patronage of North America more knowledge of the habits of
life, the economic problems and the social and governmental







institutions and culture of the Americas. For example, a mem-
ber company is now releasing. a series of shorts which will
bring to thi. people- of o.iiir On country a discerning interpre-
tation of Brazil, the Argentine and Chile, while another is
presenting pictorially the importance to the Western Hemi-
sphere of our newly acquired bases from Newfoundland to the
Caribbean entrance to the Panama Canal. Some of our studios
have under consideration feature pictures that will deal with
such important historical figures as Simon Bolivar and use the
beautiful cities and picturesque scenery of the great continent
to the south of us as the locales for film stories. In the coming
year the newsreels are planning greatly to expand their cover-
age of South American news. In the past year these services
carried about 300 subjects that related directly or indirectly to
Latin America.
The service which the American screen thus far has rend-
ered should be but a prologue to even greater effort. There is
not a single person in the industry who has not been gratified
and inspired by the eloquent words of the President of the
United States when he spoke on the occasion of the Awards
Dinner of the Academy of Motion Picture Arts and Sciences
held on the Coast on February 27th last. In his address the
President declared:
"We have been seeking to affirm our faith in the West-
ern world through a wider exchange of culture, of
education, of thought, and of free expression among
the various nations of this hemisphere. Your industry
has utilized its vast resources of talent and facilities in
a sincere effort to help the people of this hemisphere
to come to know each other.
"In carrying on this program of advancing the spirit of
inter-American solidarity and continental defense
our government has established machinery to co-or-







dinate our growing commercial and cultui al relation.,
with the American republics.
"Our Government has invited you to do your share of
the job of interpreting the people of the Western
hemisphere with one another. And all of us in all thc
twenty-one American republics are g atef ul that your
response is so immediate and so wholcheai ted.
Whatever service the film industry has rendered thus far.
this generous statement is a challenge to fui tier plain, g and,
achievement. Great opportunities are presented b1 the me-
dium at our command; we must serve as grcatlv. There is an in-
exhaustible fount of material in the life and history of the
Americas. There is a vast background of beaitN and interest in
the Continent to the south of us, against \ liicli background
entertainment features may be made. There are traditions com-
mon to the struggle for liberty and the mainiteiiniice of freedomll
in many of the twenty-one American republics. Such pictures
are bound to bring us closer together.
Similarly, an increased distribution of A\merican-made
films, produced with due regard to the sensibilities and tiadi-
tions of our Latin American friends, will gi\ e our sister repub-
lics a more complete picture of the North Aimeican scene than
can be given by any few films however successful they might
be in South American distribution. We are on the \vav in all
these directions. On the basis of plans already\ announced and
in work our reply to the President can well be: \\e shall not fail.
Canada
With the tempo and work of production in Canada greatly
speeded up by the war, motion picture attendance has become
a greater recreational factor than ever. During 1940 there were
imported 455 American pictures, 42 British features, and in the
early part of the year 56 French feature films. Notwithstanding







the .strict ceiisolship in a nation at war the trend has been to-
wards reduced cuts and rejections of American pictures. This
has been attributed to the success of self-regulation in the pro-
duction of film entertainment in the United States.
As in the republics to the south of us, so with the great nation
to the north, our industry can play its part in continental soli-
darity by reflecting the history and scenery of Canada.
Eternal Vigilance
The responsibilities undertaken by the industry on every
front of total defense demand greater vigilance than ever at the
dykes of self-regulation. Our pictures must serve the entertain-
ment needs of a nation in possibly its greatest historic mo-
ment. Hundreds of thousands of young men, withdrawn from
the normal activities of home, office or shop have been trans-
ferred to military training camps from coast to coast, to our
greatly expanded navy and our growing air force. An even
greater army of workers stands behind them. Entertainment
has a more responsible function than ever.
With the mental, physical and spiritual health of so many
at stake, the inevitable interference with normal life brings
new entertainment problems as well as other social problems.
For many years after the World War the backwash of such
problems covered the literature of the day, colored the demand
for amusement, and presented great obstacles to those who
sought to express a high sense of social responsibility in the
entertainment they offered.
In the present emergency we have the organization, the
machinery, the will and the means to maintain our public re-
sponsibility from the social as well as the artistic standpoint. It
is healthy entertainment which the nation demands. Pictures
do not exist in a vacuum. The screen must express our tradi-
tions, our ideals and our beliefs as to right living. This may not







be the only test of art, literature or drama, but it certainly
should be the final test of such a universal medium as the- scret-i.
With so many strains upon the fibres of society e arc
fortunate that we have built up a structure of self-regulation
that permits us to maintain a program of constantly\ better pic-
tures and gives us the means to resist the destruction e effects
which laxer forms of entertainment might exert on the screen.
This is a period which calls not only for the maintenance but
for the strengthening of our defenses. Motion pictures r-ec an
absolutely necessary factor in the nation's total defense.
It is not enough to follow the letter of our own codes x\ ith
regard to the production and advertising of our screen enter-
tainment. We must be everlastingly vigilant that both in thermi
and treatment we maintain the spirit of these codes-aid tlat's
a job for every individual studio as well as for the organized
industry. The American public, very rightfully, will not stand
for any violations.
An analysis of critical opinion about pictures published
during the year indicates that only 20 films out of a total of 523
feature pictures and 707 short subjects were the object of seri-
ous objection on the basis of good taste and in these few cases
equally sincere critics were not all agreed.
Production Code Administration
The motion picture has become a full-fledged member in
the family of the arts, with a kinship to music, literature, paint-
ing, drama and even sculpture. It is respected among its con-
temporaries because of its sense of social responsibility. But
the fact is only beginning to be appreciated that our Motion
Picture Production Code definitely has a positive as well as a
negative function.
Self-regulation has made the screen a great transformer.
Able critics have remarked upon picture after picture which,
from the artistic as well as the social standpoint, has shown re-







markable iinprovement over the oI iginating material of book
or stage. Last Year saw a ,great numnher o filmiis which not only
Iiad bcen social\ bettered in relations to the material from
which they were dex eloped. but had been greatly improved in
-i. tertainment value This is a most signifiean-it phase in self-
correction
It is interesting to note also that in the classification of pic-
tures coming under the operation of the Motion Picture Pro-
duction Code the percentage of films based upon crime or
horror have dropped under the previous year. Western and
action pictures, however, still hold their lead as the following
table, taken from our code operations, makes evident:
1939 1940
Classification Number % of Total Number % of Total
Social Category. . 54 9.25 35 6.69
Crime and Horror . 139 23.80 108 20.65
Musical . . 19 3.25 27 5.16
Western and Action 160 27.40 115 22.00
Miscellaneous . 212 36.30 238 45.50
TOTALS . . 584 100.00 523 100.00
The following is a detailed statement of the general activi-
ties of the Production Code Administration during the year
under review:
1940
Total Number of books, synopses, plays and stories read . 461t
Number of scripts read (including changes) . . . 2595
Number of pictures reviewed . . . . . . 1362*
Number of consultations . . . . . . . 1453
Number of opinions written, dealing with stories, scripts, pic-
tures, etc. . . . . . . . .. 4708
tIncludes short subjects.
*Includes a number of pictures reviewed more than once.
Of the total of 523 feature-length pictures approved dur-
ing 1940 by the Production Code Administration, 329 were for
member companies and 194 for non-members of the Associa-







tion. Four of the films approved for members anid 40 of thi-
films approved for non-members were foreign made.
On the basis of 523 feature-length pictures approved by
PCA during 1940, it is to be noted that films based on original
screen stories increased from 56.3% in 1939 to 61.8% in 1940;
of these films 323 were made from originals. Pictures pro-
duced from stage plays increased from 5.8% to 9.8% with a total
of 51 such pictures during 1940. There was a drop in biographi-
cal pictures, from a total of 17 produced in 1930 to 8 in 1940,
whereas new sources for picture material included 4 radio pro-
grams and 7 comic strips.
Advertising Advisory Council
The keen competition to build up domestic theatre attend-
ance in an effort to offset the loss in foreign markets brought
many new types of advertising ideas. Sensible of this fact, in-
creased watchfulness was exercised by the Advertising Advi-
sory Council during the past year in the administration of the
Advertising Code.
Rejected or revised advertisements numbered 324 out of a
total of 11,256 submitted or 2.8%. However, as by far the
greater part of this material was subsequently brought into
conformity with the tenets of the Advertising Code, actually
less than one per cent of the submitted material was considered
objectionable. Small as is this proportion, it is almost double
the percentage of rejected advertisements for the year 1939.
It is good to be able to report, however, that the two
branches of the Council, on the West Coast and the East Coast,
are functioning in the closest possible co-operation to keep the
problem of objectionable advertising strictly within the volun-
tary code of the industry. The offices are kept informed of acti-
vities by the interchange of daily and weekly reports covering
material handled.







The statistics of thin work aie given in the following table:


Sum inary of Adr crt rising Submissions
Nei', York and tHollywood


Material Considered on Submission
95,090 stills (Hollywood) . . .
3,243 stills (New York) . . . .
10,646 publicity stories . . ..
11,256 advertisements . . .
9,011 exploitation ideas . . . .
4,796 miscellaneous accessories . .
1,759 posters . . . .
1,027 trailers . . . .
490 completed press book campaigns (
87 non-members) . .


Discarded or Revised
. . 1,196
. . . 21
. . None
. 24
. . 11
. . 16
. . . 39


403 members,


9

None


Foreign


As already stated, the past year has been notable for the
resounding crashes of foreign markets for American motion
picture films. The continent of Europe is practically in a state
of siege. Difficulties already great have been multiplied by
stringent export regulations in many parts of the world.
Great Britain and the United States are not only the two
most important strongholds of democracy in the world today,
but are also the two most important outlets for the exhibition
of American motion pictures. With a constant supply of Amer-
ican films aggregating 76% of the total in current release, the
British in their great ordeal have been able to turn to this popu-
lar form of entertainment for information, for recreation and
for relaxation from the tremendous strains under which every
man, woman and child labors in England today.
Our own country has recognized the importance of remov-
ing any hindrance to the passage of our films to Great Britain
ind other free nations. When the Neutrality Act was passed in







1939 a provision required that title must be transferred to a
foreigner before shipment of goods from this country. \Ve
made clear the problem presented in the shipment of motion
picture films. Fortunately, an amendment to the Act exempted
copyright material and thus motion picture films could be
shipped without passage of title.
Upon the outbreak of the war, September 3, 1939. a black-
out of virtually all Europe closed motion picture theatres every-
where. But by November of that year it \\as found imperative
in England to encourage the reopening of theatres because of
the vital importance of this form of popular eritertairiment for
the maintenance of morale, both of the civilian population and
of the armed forces. The necessity for an uninterrupted, un-
diminished supply of American films was clearly recognized.
But due to the scarcity of foreign exchange, a large portion of
American receipts from English exh ilbition \ is req u i Ied to be
impounded. At the present rate a total net of approximately
$34,000,000 will thus have to be withdrawn from the budgets
of American film companies by the end of October 1941.
Our companies in the United States, therefore, have the
problem of supplying a constant-stream of entertainment to the
United Kingdom on one hand while they must face, on the
other hand, the freezing of a large portion of the receipts in
these markets, which removes an equivalent amount from the
monies available for the maintenance of the industry. It is a
problem which understanding and good will must solve, now
that the exchange problem has been ameliorated by our na-
tional policy of all out aid to Britain.

The hunger for film entertainment that has no propaganda
to serve is evident from the action taken by the Swedish Ship-
ping Board at the instigation of the Swedish government to
provide cargo space for films in spite of all other demands.







The Latin American field continues to he of great interest
and irnpol tance. Difficulties arise in connection with exchange,
taxes and certain outside political pressures, but the progress
in the amities and the mutual purposes for cooperation con-
tinues.
On February 17. 1911. the office of the Association in Lon-
don became a casualty of war. It w\as wrecked and all records
were destroyed by fire. But its work. under the direction of
Mr. Favette Allport, went on uninterruptedly.

Nciws Reels
Historians of the futiire may differ as to the causes and
significance of present events. bu)t tliev will come back to the
newsreels for the fateful pictuiies of a war that decided the
future of democracy in this world. The services rendered by
our n'CwI eel companies during the past year have been truly
historic. They gave action and validity to the momentous
events that occurred.
From across the seas came intimate pictorial reports of the
war in Nor\way, the tragedy of the Netherlands and Belgium in
the Battle of Flanders, the miracle of courage and endurance
in the evacuation at Dunkirk, the fall and prostration of the
'ireat democracy that was France, the tragic epilogue of the
destruction of the French fleet in the Mediterranean, the never
ending flow of sad and broken refugees that covered all of
Europe like black lines on a map. From England and the Far
East came the terrible pictures of air bombing with its orgy of
r nin. the huge preparations undertaken by the Island Empire
for the expected blitzkrieg; the story of blockades, of convoys,
of ships lost at sea.
In our o\'. n country the newsreels mirrored the story of our
preparedness in national defense, with the hero the man be-







hind the machine, the workcLi without iuniiform;S. men enlistedi
in the arsenals of democracy. lThy covered the ,sicution loi
training of American man power for service on land and on sea
and in the air. They projected many new phases of our national
program, including peacetime conscription, alien registration
and the actual operation of the Selective Service Act. They
gave voice in action to the divergent views expressed in the
legislative debate on measures and methods that affect the
safety of our country. Altogether during this period our news-
reel services devoted approximately 793 of their 4,680 indi-
vidual subjects to one or another of national defense activities.
Of outstanding interest, of course, was the Presidential
campaign. Our newsreel services succeeded admirably in bal-
ancing their coverage of both candidates of the leading parties
throughout their debate.
Here the newsreels have remained free to reflect events as
they develop, as has every other medium of information. But
the achievements of our newsreels abroad were made against
every obstacle that could be placed in their path. One country
after another closed its doors to pictorial reporting by free or
neutral nations. Germany, Finland, Italy, Denmark, the Neth-
erlands and Belgium, Norway, Japan, and finally the Balkans
became inaccessible to our newsreel coverage. In some cases
the opportunity for news as well as much valuable sound
equipment were lost together.
Short Subjects
Like the news reels with their forthright coverage of spot
news, the industry's short subjects have mirrored the nation's
topical interest in the eventful days in which we live.
Predominant as themes of such subjects during the past
twelve months have been our American way of life and the
preparations for its defense. One after another the Army Air







.\ri'. Y )',.,' An.iiti.a Flics. Conquest of the Air, United
.S/taic. Militaio Acadc my, the Nai\ Eyes of the Navy, Meet
the Flect. unitedd State, Nacl Academy, and other Govern-
ment services The Spit it of 1941., featuring the United States
C,% il Sti\ ice Commi.ssion, Thlit United States Mint and others
- haIve been welcomed bLv theatre audiences.
TIi.\elogrnes of the American nations have contributed to
our irmitu.-l interest in each other and a new sense of our geo-
graphical interdependence Our own states have been fre-
quentlk the subject iiiattei of travel shorts, and some of the
provinces of Canada, the West Indies and South American
countries have been treated likewise.
Devoted to the better understanding of our American tradi-
tions in the past are such shorts as Old Hickory, The Flag
Speaks, and Teddy The Rough Rider.
A number of new departures in short subject construction
were noted during the year. These include a more literal trans-
lation of the short story into the short subject as exemplified in
The Happiest Man On Earth; the adding of puppets to the
technique of pure animation; the combining of radio technique
with that of dramatic presentation in such films as Take It or
Leave It and So You Think You Know Music. All these indicate
the possibility of new and varied types of material for the thea-
tre program. Notable public interest was shown, also, in some
of the short subjects vividly portraying the effect of the war
upon civilian life abroad. Such films as London Can Take It
and Christmas Under Fire were of that character. They were
distributed with the profits going to British war relief.
All in all, many areas of interest were covered in shorts pro-
duction. Sports, fashion, travel, art, literature, religion, educa-
tion, industry and public works helped to round out the year's
program.







Conservation


Fire prevention, particularly in ou own industLy, must be
recognized as a problem demanding planned and constant edu-
cation and eternal vigilance. Uncontrolled fire is responsible
for the destruction of thousands of human lives and millions of
dollars in public welfare and resources each year. The motion
picture industry has maintained for many years a foremost
place in fire prevention and conservation matters.
During the year 1940, no fires occurred in film exchanges
in the United States operated by distributing companies which
are members of this Association. Furthermore, we have no
record of fires occurring in exchanges which are not affiliated
with this Association. Insofar as we can learn, the exchange
fire loss for 1940 was zero.
The exchanges in the United States examine, store and ship
more than 27,000 miles of nitro-cellulose motion picture film
daily, yet not one foot of fihn in the distributing offices was de-
stroyed by fire. This record demonstrates the excellent results
that have been brought about by the intelligent and conscien-
tious policy of conservation which was organized eighteen
years ago.
Technical Progress
An outstanding technical development in the motion pic-
ture industry during the past year has been the demonstration,
to the trade, of a stereophonic system of recording and repro-
ducing sound, and the introduction in the theatres of three
methods of using multiple loudspeakers. The former system
was demonstrated at Carnegie Hall in New York some months
ago and later in Hollywood. It involves the recording of several
separate sound tracks on the film, which are reproduced
through three separate sound channels, each channel having
its own loudspeaker behind the screen. The sound therefore







apparently follows mo\ ement on the stage, thus creating what
has been referred to as thlee dimensional sound.
A control track is also pi ovided by means of which there is a
definite volume range far in excess of that obtained in present
commercial practice, together with a method of automatically
controlling volume.
The other systems are more or less alike in their objectives
and may be giouped together under the general term of "multi-
speaker" systems. They do not necessarily involve the spatial
motion of the sound. The purpose to be accomplished by the
multispeaker systems is the introduction of sound into the thea-
tre auditorium from points other than behind the screen. In
other words, loud speakers are located in the auditorium as
well as behind the screen. Special sound tracks control the vari-
ous sets of speakers and very interesting acoustical results are
achieved. Among such systems may be named the Fantasound
and Vitasound.
What has been generally regarded as an important devel-
opinent in the field of motion picture equipment is a new studio
camera, which operates very silently without the need of a
blimp, and has certain accessories, such as the self-slating de-
vice, which have proved valuable to the cinematographer in
his work on the stage.
During the year, also, a noteworthy advance in the optics of
motion picture equipment has been recorded. This is a process
for coating the surfaces of lenses either for photographing pic-
tures or for projecting film, with surfaces that decrease the re-
flection of light to a negligible amount. so that practically all of
the light incident upon the lens passes through the lens. This
prevents the formation of halos and other defects in photog-
raphy that arise from the reflection of light on the lens surfaces.
Of special interest should be the fact that the supply of raw
materials for photographic manufacturing operations in the







United States was not cut off at the outbreak of hostilities in
Europe as it was in 1914. It is worthy of note that sources of
supply for gelatin, optical glass, sensitizing dyes and certain
developing agents have been built up in the United States.
Also continued progress was made during the past twelve
months in panchromatic negative film which gives a wider lati-
tude for the achievement of photographic effects and in the
development of fine grain positive film resulting in improved
picture quality on the screen.
Community Service
The industry must expect that what is contained in motion
pictures, what is said about pictures and what is believed to be
the effects of motion picture entertainment is everybody's busi-
ness. These are the social problems, among others, with which
many community groups throughout the country have been
organized to deal. Regardless of the economies, therefore,
which conditions have imposed on the Community Service
Department, there has been no lessening in the demands made
upon the industry through the Association for a wide variety of
co-operation from public groups in many cities. Such work still
requires a mass of correspondence, many thousands of letters
and more than 15,000 personal interviews with individuals
during the past year.
Statistics and other studies developed by the Association
have permitted us to reply to requests for information, to clear
up misunderstandings and present the facts. For example,
there are those who believe that in the incidental 'business'
necessary in the development of film stories too much drink-
ing is shown. We know the care now exercised by studios to
lessen such picturization so that no impression may prevail
that excessive drinking is usual or universal in the pattern of
American life. Yet such complaints which voice deep convic-
tions must be given careful consideration.







Statements as to the pred-ominance of representatives of
one or other of the \ arion s religious faiths in the dramatic out-
put of the sceciin lil.cA ise are readily answered by the facts.
Taking a typical vear the facts ,how that out of 596 feature-
length pictilces appio(ed by the Production Code Adminis-
tratini. clef\ men. Salvation -\i m\ workers and missionaries
appeared in 76 of them. NMost of tlie portrayals are accounted
for on the basis of history. geo\.raph\, or racial or national back-
eronnd. geogiapll\ b'ini: | particularly important in determin-
inii the ch.liicterization. Less than half of the clergymen thus
poi(riraved .ei e mcmiihers of an\' 'ie religious group.
\\'ith reference to chaiges of cruelty to animals, usually
stiimulated by reports of sensational "stunts," we are able to
point to the complete co-opci .tioni now given to the studios by
the American I Human e Associatior The studios regularly con-
suit with representative,' of that ,l ganization in problems re-
lating to the use of anillials i I motion picture scenes.
The Dcpai tnienlt i, (all instances seeks to act upon or answer
any complaint that is made from a responsible source, for it is
in the interest of good public relations for the industry not to
allow mistaken or false statements to multiply. But the func-
tion of community service is not merely to answer complaints
but to give authentic information. During the past year a repre-
sentative of that department travelled 14,800 miles, visited 69
cities, delivered 181 addresses to various groups, and inter-
viewed more than 900 important community leaders, in the
effort to answer frankly all questions as to motion pictures from
the social standpoint, to learn the viewpoint of the public and
to benefit therefrom whenever possible.

Teaching Film Custodians, Inc.
Through the Community Service Department the Associa-
tion has continued its co-operation with Teaching Filhn Custo-







dians, Inc., of which the Secretary of the Association is one of
the trustees. Other trustees are President Emeritus James R.
Angell of Yale University and Dr. Willard E. Givens, Executive
Secretary of the National Education Association. Recognizing
that education is a job for educators, the Association has con-
tinued the policy of co-operating in such work, by helping to
make available those elements from the stream of normal pic-
ture production which educators considered useful in the edu-
cational process.
From all indications the use of films by schools is increas-
ing. The number of schools using films more or less extensively
in 1940 exceeded 5,000. The experience of the educators dur-
ing the first eighteen months of this educational experiment
has amply confirmed the judgment of our Advisory Committee
that school administrators and teachers would welcome and
appreciate non-current short subjects originally produced for
theatrical exhibition, provided these subjects could be selected
by educators and could be made available on reasonable terms.
The contract by which the non-current short subjects were
made available by the producers limited the three-year experi-
ment to the end of the school year in June, 1942. Encouraged
by the success of the experiment and the confirmation of their
judgment that these films would serve a real educational need,
the directors of Teaching Film Custodians, Inc. have approved
negotiations for the extension of the contract for an additional
period of three years, in order to permit the inclusion of addi-
tional appropriate films in a new edition of the educational film
catalogue and the preparation of manuals or study guides for
the use of teachers.
The process of previewing 150 or more additional short
subjects began immediately after the close of the conference of
the National Association of School Administrators in Atlantic







City on February 27th. A re% ised catalogue will be prepared
for circulation to schools within die month of April.

Human Relations Films

It will be recalled that the inception of this project dates
back to the New York Motion Picture Confeience in Septem-
ber, 1929. The Human Relations short subjects were produced
b\' the Commission on Human Relations of the Progressive
Education Association under the direction of Dr. Alice V.
Keliher. The production cost \was financed by the General Edu-
cation Board of the Rockefeller Foundation. The project is
now self-sustaining by distribution to schools on a non-profit
rental basis and is supervised by Dr. Keliher who is now a pro-
lessor in the Department of Education of New York University.
Letters received by Dr. Keliher froin educators in all parts of
the country indicate their gratitude to motion picture pro-
ducers who have made this experiment possible by permitting
the Progressive Education Association to take excerpts from
non-current feature films.


Other Educational Projects

Our member companies continue their co-operative rela-
tionship with the Fihn Library of the I Museum of Modern Art.
That project has expanded greatly since its organization about
ten years ago. Last year the Film Library hald available 174
films for circulation among educational institutions and mu-
seums for the benefit of duly matriculated students of art.
Most of these are feature-length and many of them were fur-
iished by our memnbei companies. During the past twelve
months these films were sent to 290 inistittti,:,ins in the United
States. Hawaii and Canada.







Attendance Promotion
The ever-greater popularization of the screen lies in the
industry's opportunity to tap the audience of approximately
26,000,000 to 32,000,000 persons who do not go regularly to
motion picture entertainment. It is a task that cannot be
achieved merely by advertising to regular customers.
The past year has seen much progress in the work along
these lines continued by the Community Service Department
as well as by the Department of Information of this Associa-
tion. The programs undertaken through special publicity as
well as by detailed work with many thousands of groups has
been on the line of reaching new patrons for the theatre; of
building up understanding of the industry's significance and
usefulness and the consequent prestige and good will; and of
interesting public leadership in the educational, historical and
artistic progress of the screen. The work is being developed
through groups representing thousands of active workers for
motion pictures among educational, civic, patriotic and other
clubs all over the country and through educational methods
directed to millions of students of the subject and 10,000,000
library patrons.
Our efforts directed to neighboring export fields have like-
wise increased. For the last eighty-six weeks, American motion
picture programs have been broadcast to foreign lands over the
world-wide short wave facilities of the National Broadcasting
Company and the Columbia Broadcasting System, separate
scripts being prepared each week in the New York headquar-
ters of this Association.
The purpose is to create mutual good will in the Americas.
It should increase the appreciation of American pictures and
the attendance for American films in all parts of the world.
The programs include constructive comments on motion pic-







hires. Hollyxwood studios, directors, artists, technicians, music
and songs, and general industry activities. Special efforts are
made to attract the interest of listeners throughout Latin Amer-
ica. It is estimated that there are nearly 4,100,000 radio sets in
Latin America. of which approximately 2,500,000 are equipped
for short wave reception. These figures indicate that a substan-
tial radio audience is available.
Hollywood
During the past year, the publicity directors of the studios
in Hollywood organized themselves into a Publicity Directors
Committee. The Committee after considerable study and dis-
cussion developed a plan of co-operation with the general pub-
lic relations activities of the industry having particularly to do
with Holl\'wood problems. It "as accepted by the executives
of the industry and the Publicity Directors Committee now
functions as an integral part of the producers association in
Holl\ wood. Under this plan pu)jblic information with reference
to personnel, employment, pictures and production plans is
made more easily available on the ground to writers, corre-
spondents and broadcasters assigned to this film capital.
The greater co-operation that has been effected between
the publicity directors in New Yoi k and the publicity directors
in HIollywood. and the .authentic information made available to
newspaper representatives on the Coast are of service to the
entire industry. Careful surveys made in Hollywood have dissi-
pated many rumors or false statements.
Of other special coast activities it may be said that the Cen-
tral Casting Corporation Inhs become the largest free employ-
ment bureau in the state of California. The total number of
placenients during 1940 was 228.3-42, with an average daily
wage of $11.0S. considered the Ihighest wage scale paid to
c, su.1 I workers am \wlier






The Call Bureau continued in successful operation as in
previous years. During the past twelve months, 4,362 calls foi
various artists and 2,800 engagements were recorded by this
Bureau. In addition, 418 actors negotiated exclusive or condi-
tional term contracts. There was an increase in the number of
actors, writers and directors registering with the Bureau dur-
ing the year. Studios were regularly furnished with lists of
artists available and names of licensed agents whose activities
had been verified through the State Labor Commission.
As in previous years, and through the courtesy of the major
studios in Hollywood, pictures ready for release were pre-
viewed by representatives of national and regional organiza-
tions interested in the movement of better motion picture ap-
preciation. The personnel of the previewers is selected by the
organizations themselves. Each organization has its own
method of distributing its findings to its own members. With
such reviewing groups in Hollywood, on the one hand, and in
New York, on the other, a great family clientele for motion pic-
tures is reached by those who would see to it that the level of
public appreciation rises with the production of pictures that
reach higher entertainment appeal.
The Academy of Motion Picture Arts and Sciences con-
tinued during the year its distinguished service to the art and
the industry. Research work, the encouragement of cultural
recognition of the screen, and national defense effort were
among its outstanding activities.
The high civic consciousness displayed by members of the
industry never has been more clearly reflected than through
their relief, charity and community activities in Hollywood.
Members of the industry have been taking their place in the
civic life and social services of their communities and the na-
tion. The volunteer services of many have been made avail-
able to the government.







During the year Mr. Louis B. NMayer, Chairman of the Mo-
tion Picture Division of the li i\e for the Community Chest of
Greater Los Angeles reported record contributions amounting
to more than $465,000 fiorn 17.911 fellow workers in all
branches of the industry. The industry not only met but ex-
ceeded its quota in this campaign, contributing over 17% of
the total required amount and leading all other industries of
Greater Los Angeles.

During this period, also, the studios in Hollywood formed
a permanent charities committee \with Mr. Samuel Goldwyn as
Chairman. EverN group in the industry is represented. Among
the first task undertaken by this committee was a joint drive
tom the American Red Cross and for allied relief in which
8 -140.000 \as raised. A. comprehensive effort in behalf of Greek
relief ;i no\ under \way.

Int addition to the contr ibu.tionis listed, many very large gifts
not incident to any of the general di ives were made by industry
indiA iduals. Practically every employee in Hollywood has con-
tinued his pledge to donate one-half of one per cent of salary
annual to the Motion Picture Felief Fund, to care for the in-
dustr\'s own needy cases. The work of the Fund continues to
rmcrit the appreciation of the entire industry.

It should be added in this connection that the general in-
duistlv co-operation gi\ en to the Red Cross drive by exhibitors
and distributors as well as 1b producers, included time, ser-
xices anrd material. For instance special films were prepared
featuring various stars of the screen and trailers, decorated
theatre fionts and publicity \ee used. All these activities
helped enable the Red Cross to reach its quota of $20,000,000.
The trade papers of the industry contributed most generously
to this result.







Also, on an industry basis, it should be reported that during
1940, entertainment films were supplied free by producers to
shut-ins in more than 1,200 institutions throughout the United
States, including homes for crippled children, orphanages, re-
formatories, hospitals, homes for the aged, veterans' convales-
cent homes and institutions for underprivileged boys and girls.
The industry donated in that period 13,357 features and 14,404
shorts for that purpose. Many touching appreciations to the
industry have been received. How important it is to continue
this work is indicated by the following comment which comes
from an institution treating infantile paralysis: "Our patients
attend the institution for after-treatment work with infantile
paralysis. They are mostly young adults and motion pictures
provide one of their chief forms of entertainment and instruc-
tion."
Title Registration

The Title Registration Service developed by the Associa-
tion has become a great and growing library of information
which allows an orderly and fair procedure in the adoption
of titles for screen entertainment. It is an important asset in
this respect, from the public as'well as the industry viewpoint.
Without this facility the confusion of titles would lead to im-
measurable misunderstanding and misrepresentation of enter-
tainment labels. As a consequence, not only members but many
non-members of the Association avail themselves of this ser-
vice which is given without cost. They are thus enabled to
determine in advance of production whether a proposed title
is available for their use or has been registered previously by
some other producer.
This service requires a daily check of approximately 300,-
000 index cards and a daily report to each company regarding
the status of its application for each title registration, including







similarities with all emlLii ii titles. During the year 1940 more
than 1,001.1 titkls v.ere tian sferred to the release index and
3.214 titles were registered. In addition 326 titles were cleared
fOr ion iellnbiers.
Trade Press

Thie trade press is contiiuirin, to serve well the general in-
t :lcsts ot the motion picture as an institution. It is not only a
iiiediuin for the exchange of inrfornatiioni among all branches
of the irnd.istr\. but it is able to iir e\Y oiur problems as a whole
anId lender coinstructive service iii tile execution of our pro-
grais. It has a most ililpo taiit Ifunctiorn that entails definite
respolnsiil.iliti,' ; and obligations, of \ilich none is more aware
than the tiade press itself.

Latil of Liberty

ihe stcadil\ d(e\eloping mispiiatioii and educational con-
tent ol Ilie American sci een nhiver his bec-n made more evident
th.i1 br. the the-atle c.lxibition of Land of Liberty. This is the
Association-sponsoi ed fili first slio\ n at the World's Fairs in
New Yo: kl a nd San Francisc o.
Because of its timely appeal and the demand voiced by
'many c, ucational and other public groups throughout the
countryy. it \%.Is placed in general release on January 24, 1941.
Appiopriatelv enough,. Landil of Lib, rt had its premiere in the
nation's capital
Tliis panorama of the glicat and stirring periods of
American IjistoiY hias been w\ widely p)i raised as a most significant
s.er\ ice to the public icndered b\ the industry. Educators and
other public lea.! eis ha'e urged that the picture be seen by
e. ery scliool child. -\e\ college stt:dciit and every defense
0 worker.







Land of Liberty is a film for tomorrow as well as today.
It is entertainment inspired by our progress as a nation. From
the days of the colonists to Washington, Hamilton, Franklin,
Jefferson, Madison, Lincoln and up to the very present, the
picture has captured the struggle, sacrifice, courage and ac-
complishments that have built our system of life and made this
nation a great republic.

From the standpoint of screen progress, it is notable that
the industry's entertainment pictures made during the past
twenty years furnish the material for this story. Our studios
had drawn so frequently upon American history for back-
ground material that it was possible to make a history of the
United States for the past 150 years without shooting a single
scene.

The impact of the film upon our national morale is in the
manner in which it revives the spirit of sacrifice of our pioneer
ancestors, the courage of their achievements and the freedoms
which they built up. Critics, to quote a few, have referred to
it as "the greatest documentary film ever compiled"; "a thrill-
ing and entirely desirable summing up for contemporary
America"; "a contribution to the cause of national spiritual re-
armament"; "an instrument to inspire the rebirth of pure
Americanism in these troubled days."

Land of Liberty had its opening in state capitals, and nine
Governors in the early stages of its distribution called in
proclamation for the people of their states to attend the show-
ing of this film. It has been estimated that before its run is
completed more than 20,000,000 people will have seen this
picture. It is a real contribution in this time of crisis.
Receipts from the distribution of the film will go to war
emergency welfare work.







~1~vr" in an it


.\ltogetlhei tNhe \ear under r,\it w has been a period of
marked ac hiec-rniient. The ndlusti v has met by greater econ-
omny' and better pL ti es the bIlomws dealt to the screen in many
foreign fields. alroighl it is still faced with the problem posed
bY frozen leeipts in ari ious markets. It has embarked upon a
i:-.dical change in its S.lies mietlod:s without disturbing the
flow of continuous. prodnuItioti Id. above all, without sacri-
Riing the quality of its sen\ ice to tle public. By adopting once
more a plan of arl itlIation it li.is ioved in the direction of
peaceful setthlmient of trade disputes. It is earnestly recom-
im-nlded thaIt tile eliiit for better understanding he pursued
both by ehlilbitois anmd distrib.itor',.
Tlire is no cure-all that will take the place of planned and
har.I earned piicess, in the irnd lstlv. It is interesting to note
that a iceCnt lii-nom lap!, pul--lisled about trade practices in
ii motion, p[Ittirt_- and tihe scre:',J codes of self-regulation re-
\ieV.s lecgisl.tion. liti4ationl ariit.ti.ion- and finds them all
'.\inting. Thle statement is sc keern a:out the forest that it over-
looks the trees the essential factor s by which the industry
ge e ,p the ai t de elo.ped a.nd theatres were vastly multiplied
until tlhe film Iei.. .':. a il:ix ers.al timin of entertainment. We
_'.iIllot liLirel ho\ixve\''-r, \itli .I co-nclusion reached in the
iimogi :-.)pli tliat ir. lpa-tnt ,e,.iit ii,,' :emedies, no simple solu-
ti iii no inlallibl l,- orol il s '.i't foi any problems in this in-
,listrv. On the coiitr.i to qjiote li'in this monograph issued
inider the aui.ipices of TN\.C ,ritte: without any hearing or
submission on the pait of podie:, s rlistributors or exhibitors.
:ihat the indulstrx needs 1 inw H- ii lm anything else intelligent
and s'mpahiletic stud'.
The screen is to, prominent a medium for criticism, right
wr long. moit to he :coustlantiv lt'.' -i h:1 at it. Wholesonme criti-







cism allows for constant self-examination and stimulates our
progress; baseless criticism gives us the opportunity to estab-
lish the facts about the industry. There will never be a time
when we can sit back and say "Content."
The world today is passing through an ordeal of fire and
destruction. Vast revolutionary forces are rumbling through
the earth. I am confident that civilization will come out of it all
purified, not destroyed. The plain men and women of the fu-
ture, to a greater extent than ever, will determine their own
destinies. The motion picture is an instrument of universal en-
tertainment, widespread information and common inspiration;
therefore the leaders of the industry, in this crisis of events,
face an unparalleled opportunity for service, and a heavy and
continuing responsibility.
I am confident that the industry will rise to its full oppor-
tunity.
WILL H. HAYS
March 31, 1941


. 493









Date Due

Due -Returned Due Returned
388 DEC 2 O19O-


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