Front Cover
 Title Page
 Table of Contents
 The order of the day
 Twenty years of progress
 Departmental activities
 Back Cover

Group Title: Annual report to the Motion Picture Producers and Distributors of America
Title: Annual report
Full Citation
Permanent Link: http://ufdc.ufl.edu/UF00094189/00006
 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: 1942
Frequency: annual
Subject: Motion pictures -- Periodicals   ( lcsh )
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: VID00006
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
        Page 1
        Page 2
    Title Page
        Page 3
        Page 4
    Table of Contents
        Page 5
        Page 6
    The order of the day
        Page 7
        Page 8
        Page 9
        Page 10
        Page 11
        Page 12
        Page 13
        Page 14
        Page 15
        Page 16
        Page 17
        Page 18
    Twenty years of progress
        Page 19
        Page 20
        Page 21
        Page 22
        Page 23
        Page 24
        Page 25
        Page 26
        Page 27
        Page 28
        Page 29
        Page 30
        Page 31
        Page 32
    Departmental activities
        Page 33
        Page 34
        Page 35
        Page 36
        Page 37
        Page 38
        Page 39
        Page 40
        Page 41
        Page 42
        Page 43
        Page 44
        Page 45
        Page 46
        Page 47
        Page 48
        Page 49
        Page 50
        Page 51
        Page 52
        Page 53
        Page 54
        Page 55
        Page 56
        Page 57
        Page 58
    Back Cover
        Page 59
        Page 60
Full Text
7.-"\~( C.




it :/. c .l:.n','. i Pi.tire /-'r.;. ter
an,! D .W;ni!,',' ,rs I. -.:er.t,' l ..
By WILL H. HAY?, Irds/ict

MARCH 3(7, 1942

20 f





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7R'7i '.,','.r. ; I ,' .. P. .' si, ',. r,


MARCH 30, 1942


I. THE ORDER OF THE DAY... . . . 7
"Win the War Now!".... . 7
The Need for Recreation . ... .. 9
The Need for Education .. . 10
The Need for Inspiration.. . 12
The Industry's War Activities . .. 13

Past, Present and Future.. . . 19
The Origins of Self-Regulation . . . .22
The Growth of Self-Regulation . . . .24
Self-Regulation in the Public Interest 27
The Condition of Public Service:
Freedom of the Films.. . . 28

Production Code Administration 33
Advertising Code Administration . 38
Title Registration Bureau ... . .39
Community Service ..... . .40
Public Information . 46
Theatre Service and Trade Relations 46
Conser action . 48
Technical Progress . 49
Hollywood . 50
Foreign Trade Relations 51



"WIN nLn WAR Nowl
"Business as usual" is a counsel of complacency which everyone
today rightly repudiates. The desire to have one's own affairs un-
trammeled by the common peril betokens either blind selfishness
or a failure to understand how radical is the demand which the
emergency makes on all of us. First things come first, and there is
nothing which takes precedence over the duties of war. At the very
outbreak of hostilities, the motion picture industry raised the cry
"Win the war now! Everything else is chores." And that will be its
slogan, its self-appointed command, until the victory is gained, at
whatever cost.
But though business cannot, and should not, go on as usual,
there are some phases of our national life so essential to our well-
being and for victory that they should be intensified rather than
diminished. Education must go on. The services of religion must be
uninterrupted. Public and private health must be safeguarded un-
ceasingly. Whatever upholds moral standards and contributes to
morale must be sustained-in fact, augmented. For these things to
go on as usual-or even more intensely than usual-is not a distrac-
tion from the war effort. These things strengthen the sinews of our
people and fortify them, as much as armaments and leadership, for
the grim and arduous enterprise in which they are now engaged.
Relaxation is one of the indispensable elements of public health
at a time when human energies are taxed to the utmost, and nerves
are strained to the breaking point. In a statement on March 10,
1942, made in response to numerous letters of inquiry concerning
the place of recreation during war time, the President said:
"It is, of course, obvious that the war effort is the primary
task of everybody in the nation. All other activities must be
considered secondary.

"Such recreation may come by participation in or attend-
ance at various sports, motion pictures, music, the drama,
picnics, etc. All of them have a necessary and beneficial part
in promoting an over-all efficiency by relieving the strains
of war and work....
"Within reasonable limits, I believe that the war effort
will not be hampered, but actually improved, by sensible
participation in healthy recreational pursuits. It must be
borne in mind, however, that 'recreation as usual' is just as
bad as 'business as usual.' Recreation under present condi-
tions can be undertaken solely with the purpose of building
up body and mind and with the chief thought that this will
help win the war."
Morale is invigorated by entertainment, both on the ligliter
side where laughter rings and in its more serious phases from which
inspiration and emotional elevation result. The dissemination ot
information about current events, and the vicarious experience of
war activities which all of us cannot know directly, are important
parts of public education at this time.
In all these respects, the motion picture screen is a major con-
tributor to the war effort. The motion picture business will not go
on as usual, but the performance of its essential services to the
American people will go on-not simply as usual, but in an ever
greater measure. Its recuperation of flagging energies through re-
laxation and recreation, its provision of entertainment and educa-
tion, its upbuilding of morale, are almost as indispensable as food
and drink, sleep and exercise, for the maintenance of life itself.
The essential nature of the service of motion pictures in war
time has been recognized by federal officials and would seem to
indicate a determination to assure a continuance of these services
through provision of sufficient negative and positive film and other
critical materials required to maintain a supply of films for civilian
and military uses at home and abroad.
A comprehensive study of the raw-material needs of the indus-
try has been filed with the War Production Board by the War
Activities Committee of the industry. Special committees on prior-

ity problems representing each branch of the industry have been
formed to follow through for their respective branches under the
general aegis of the War Activities Committee.
Recreation, education, and inspiration have been our watch-
words during an era of peaceful development. Let us now consider
each of these in terms of wartime needs.

Shortly after the war began, the English government thought it
advisable to close down the motion picture theatres, both as an
economy and as a measure of protection for civilian population
subject to air raids. But they soon discovered that neither economy
nor protection counterbalanced the deprivation of amusement. It
was easier to ration food and clothing as a war measure than to
withdraw from the people what some had thought to be only a
luxury, not a necessity. The theatres remained open even during the
period of the heaviest air raids. Furthermore, the wisdom of this
decision is attested by the fact that last year the motion picture
attendance in England was reported as 33% higher than the average
pre-war year.
The record of what happened in England is confirmed by ample
evidence of the same situation in our own country. The provision of
motion picture entertainment to our fighting men is one of the
fundamental services of supply. In the teeming industrial centers
where men are working three shifts a day, the theatres are hardly
adequate to the demands upon their space and time. In every part
of the nation, and in connection with every phase of war work, the
motion picture screen must meet an increasing demand. The steel
mills and the armament factories labor night and day to produce
the materials of war. The production stages of Hollywood and the
industry's agencies of distribution and exhibition cannot lag behind.
Manpower makes the materials of war. Manpower trains to use
them. The key to mastery is in manpower, but manpower must
itself be served, its fitness guarded and its energies restored.
Comedies are as important in the maintenance of our national
morale as serious melodrama and high tragedy. They do not merely

wash away fatigue and worry by the magic metabolism of laughter.
They also keep alive in us what is one of our most precious national
traits-our irrepressible sense of humor, enjoying the joke at our
own expense, finding nothing so grim and dour that it cannot be
relieved by lightness and farce. Laughter and liberty are recipro-
cally invigorating factors in the American way of life.
Therein lies our strength, our resiliency in even the darkest
hour, and our avoidance of the blind fanaticism which the totali-
tarian tyrant demands. The tyrant not only banishes freedom from
the world, but with it comedy. Laughter which is the restorative ot
sanity, and the comic sense which preserves man's humanity by
reminding him of its weakness, are alien to the world which breeds
typical Nazis of every creed and color.

In time of peace, the screen is a medium of education as well
as of entertainment for the general public. The obvious educational
functions of motion picture film in the school room must not lead
us to forget the sense in which the motion picture is a vehicle of
adult education. This is primarily accomplished through the news-
reels, the documentary films, the educational shorts, although it is
also frequently a by-product of serious and socially significant
entertainment films. Not only is the pictorial dissemination of cur-
rent information a highly effective means of keeping the public in
touch with events; but the way in which the screen affords a re-lived
experience of what cannot be directly witnessed enables widely
separated sections of the population to share in each other's lives
as if they were neighbors, their shoulders side by side at the same
The educational opportunities of the screen are even greater in
war time. There is a greater need for an informed and enlightened
public. With a vividness peculiar to itself, the newsreel and the
documentary film are able, along with radio and press, to satisfy the
public's thirst for news, for an account of what is happening and
how it is happening. But, above all, as the need for national unity
increases, so does the need for a common understanding of the war

effort xhic:l can be achieved o.nl, through coomrmonly shared ex-
perience. No one can be ever'ywlere. see everything with his own
eves. or participate actively in all the myriad undertakings which
must be geared together for maximrnlu elficiencY. But it is possible
'or all of us to gain some knowledge of what others are doing by
the sort of indirect experience which carefully prepared docu-
mentan' filnts and educational shorts can give.
The preparation and distribution of such films is the task of the
\\:ar Activities Committee of the motion picture bidustry, working
in close collaboration with the Coordinator of Government Films,
Mr. Lowell MellCtt. Some of these films are produced by the gov-
eniment itself \ ith the technical aid of the industry, and some are
produced by the finl companies as part of their regular annual
output. But however produced, the main problem is to assure such
films the: largest possible audiences. To this end the exhibitors are
doing all they can to fit them regularly into their programs.
The work of the War Activities Committee is reported in detail
elsewhere in this Report, but here let it be said that all branches of
the industry recognize the need for a balanced film diet. The thea-
tre is first of all a place of entertainment, not of education, however
important the dissemination of information and experience may
be during war time. If the amount of time devoted to such films
were unduly increased, the theatre would lose its patronage and
thus defeat its own usefulness to perform these other functions.
In the past five years, there have been a great number of fine
motion pictures, both long and short, which have made Americans
deeply aware of the great elements in their national history. A study
made of films released during the years 1939-1941 shows how many
feature films and short subjects have contributed to the knowledge
of American traditions and the institutions of democracy. But what
is needed now, and in the years to come, is an understanding of
America's place in world affairs, its role in the family of nations, its
social and economic ties with peoples on other continents.
The feature film may help us to appreciate our cultural ties with
other peoples, but the short is ideally suited to the task of teaching
us the facts about the world community. The war has made many

Americans realize that they must learn more geography il they are
to understand what is going on. Geography consists in more than
the bare facts about the location of places, the boundary\ lineI of
countries. This is a global war, and it is therefore necessary for us
to understand the globe in terms of its land and water routes., the
economic interdependence of its areas, comparative distances and
means of communication. The use of animation techniques may
serve to make the map of the world as familiar to us as our own

The morale of a nation at war is measured by the emotional
vigor with which its people give their full measure ot patriotic
devotion. Energy for the labors of war and information about its
prosecution are indispensable, but they are not enough. T hec rea-
tional and educational services of the-screen must be completed by
its capacity to focus emotional energies upon our common task.
The screen can and will use all its skill to build morale through the
inspiration of patriotic emotions.
In large part, this may be the work of specially prepared shorts
which dramatize and spotlight the forces and factors moving on a
world-wide stage. But though directing thought to the problems of
this war is primarily the work of such shorts, they are not the only
type of film to evoke the desired'emotional response to the war's
demands. That is also powerfully effected by feature pictures.
What the legendary epic and the popular ballad did of yore,
film narratives help to do today, for they are the most popular form
of fiction, reaching more men and women than the printed word.
Fiction waves a magic wand which lifts the eyes of men above the
present moment, inspirits them with a sense of the great tides in
human affairs to which their lives give motion, and charges their
sentiments with emotional impetus and elevation.
Through fictional portrayals, many films not only interpret the
spirit of America, but bring that spirit to life in each of us with
emotional vitality. Taking us from the humdrum routines of our
daily labors, dramatic fiction enables us to participate in the inten-

sit\ of those great moments when history is being made, or in the
heroic acts of men and women whom fortune has raised above their
The motion picture as entertainment can also be a vehicle of
emotional surcharge and inspiration. The greatest films of recent
years have been noteworthy for this quality. The morale of a
people at war requires this aspect of entertainment, as well as its
merely recreational value. Energy must be recuperated by relaxa-
tion, but so also must energy be charged by proper emotional
stimulation, and lifted to the highest plane by genuinely inspired
sentiments. Here is work which the motion pictures have shown
they can do. They will do it now, as they have done it before, by
taking their fictional materials from past or current history, by
making the heroism of their characters reflect the highest values
which Americans respect, by focusing the climaxes of their plots
upon actions or events which command our admiration.
This function of the screen is exemplified by the film LAND OF
LIBERTY which helped to condition the mind and heart of living
Americans to face the present emergency with the undying spirit
of the whole American tradition.
LAND OF LIBERTY appeared to be a timely presentation, but its
elements were drawn from the motion picture productions of the
last ten years. It was composed exclusively of excerpts from 123
previously released feature pictures and short subjects, together
with newsreel material and stock shots. The fact that such a caval-
cade of American history could be composed from pictures already
made, without the necessity for any additional shooting, shows how
freely and frequently our industry has drawn upon the history of
our country for backgrounds and for story plots in the course of
providing wholesome entertainment.

For more than a year and a half-from the fall of France to
Pearl Harbor-the American motion picture industry, unitedly and
wholeheartedly, supported this nation's defense program. Now we
are vigorously sponsoring an all-out victory effort.

Within a week after Japan's attack, industry leaders "strealui-
lined" the Motion Picture Committee Cooperating for National De-
fense, changed its name to War Activities Committee-Motion
Picture Industry, drafted a full time Execiutive Vice Chairman and
Industry Coordinator, requested President Roose\elt to designate
a Coordinator of Government Films through whom all of \Washing-
ton's requests of the industry would be channeled, and pledged
all-out cooperation to our Commander in Chief in the fight for
freedom. All branches of the industry are represented on this conm-
mittee and its seven divisions, as indicated in mn' last annual report
which carried the entire roster of members as of that time.
President Roosevelt appointed Mr. Lowell Nlellett as Coordi-
nator of Government Films. Mr. Mlellett both in his published
letter to Mr. George J. Schaefer, Chairman of the War Activities
Committee, and again in his conference with industry leaders
in Hollywood in mid-January, paid sincere tribute to the volume
and sincerity of the industry's patriotic sen ice and registered his
own strong conviction that voluntary cooperation was the founda-
tion upon which the wartime program should be built. It is against
this background of mutual understanding. joint planning, and
patriotic zeal that the war activities of the motion picture industry
are summarized.
1. Films for Fighting Men. The eleven national distributors
of theatrical motion pictures, upon learning that the War Depart-
ment this year would need four prints each of 300 current feature
pictures together with prints of more than 400 current short sub-
jects for gratis showing to our expeditionary forces in combat areas.
presented the entire 1200 programs to the War Department \with-
out cost. Companies which had never before agreed to reduce cur-
rent product to 16 mm. width reversed their policies in order that
soldiers overseas might see latest releases at the same time these
pictures were playing in their home theatres. Film manufacturers,
upon learning of the project, generously agreed to supply the mil-
lions of feet of raw stock needed for this service.
Distributors and exhibitors cooperated in working out pro-
cedures here at home under which the entire current product of

our studios is made available to the U. S. Army Motion Picture
Service. on mutually acceptable tens, for exhibition in post the-
atres whicl, exceeded 4501 in number when we entered the war and
will exceed 650 in number by nmid-\ear Ten thousand showings
per week at 277 army posts in the United States and on the Atlantic
bases from Trinidad to Newfo-undland are required to provide this
popular and inexpensive form of \ wholesome entertainment to our
greatly expanded army. Similar arrangements provide current films
for navv and coast guard on ship and shore. For men in uniform on
lean e. \lxhibitor committees in man. cities pio\ ide free admissions
for thousands each week. \ ihile reduced admissions for all men in
uniform are in effect in hind ed, i-f communities across the country.
2. Informatrnnl Filmn andl Trail,.i. N.Moe than 12,000 ex-
hibitorrs signed pledges on cor-ipeI.itio .Lrreirg to include in their
filni pograrm;s an.v pictures sent to them with the approval of the
program committee of the Tlheatres Di\ iion of the War Activities
Connmmittee. Distributors ha\ e handled these subjects in their 352
exchanges v. without cost to the gc\ rrnernert Trucking companies,
h icli transport more than S5 percent of all shipments between
exchanges arnd theatres. have hauled all of these subjects without
al \ charge. T\wentv-eight separate rele tses. involving more than a
quarter of a million bookings and over half a million shipments
were thus handled between February 1941 and February 1942.
Recent releases of special interest include WOMEN IN DEFENSE,
for which Mrs. Roosevelt wrote the commentary narrated by Miss
duced as a War Department Training Film under auspices of the
Research Council of the Academy of Motion Picture Arts and Sci-
ences, and exhibited in theatres at War Department request be-
cause of its special pertinence after Pearl Harbor; TANKS, a graphic
exposition of the importance of this weapon in the arsenal of democ-
racy; and-THE NEW SPIRIT, Walt Disney's Donald Duck cartoon
produced at less than cost for the U. S. Treasury to make clear to
millions of new income tax payers the importance of their role in
achieving victory. National Screen Service, which distributed 1100
prints of this subject for the War Activities Committee, booked it

into 11,800 theatres in the six weeks preceding March 15th. This
extraordinary record achieved through the joint efforts of produc-
ing talent, distributing efficiency, exhibitor zeal and governmental
foresight, vindicates Mr. Mellett's confidence in voluntary coopera-
tion as an answer to wartime needs.
3. Training Films For U. S. Army. Passage of the Selective
Service Act, early in the national emergency, expanded army per-
sonnel much more rapidly than the weapons for their training could
be manufactured. The War Department turned therefore to the
motion picture industry for aid in solving the problem. A most
important and unique project in the field of visual education was
projected under which the Research Council of the Academy of
Motion Picture Arts and Sciences, of which Council Lieutenant
Colonel Darryl F. Zanuck is chainnan, arranged with Hollywood
studios to produce a series of Training Films at cost for the War
Under this arrangement, 45 training films, totaling 110 reels,
have been completed, approved and accepted by the War Depart-
ment, with numerous others in work or projected, including a series
on training air raid wardens and other civilian defense volunteer
groups. The chief of the U. S. Army Signal Corps and other ranking
officers of the army have not only expressed sincere appreciation for
industry cooperation but declare that the value of the motion pic-
ture as a teaching aid in visual education has been convincingly
demonstrated in army camps throughout the nation.
4. Varied Wartime Services. The fiery ordeal of global war
offers an opportunity for the motion picture as a child of democracy
to serve the land which has cherishedd it. As already indicated, our
industry was among the first to respond. In addition to the war
activities discussed above, the following further illustrate the va-
riety and volume of this service:
(a) Manufacturers of films, lenses, cameras, projectors, electri-
cal and sound equipment are producing enormous quantities of
essential equipment for the American armament and lease-lend
programs. Bombers are useless without bomb sights, reconnaissance
planes without motion picture cameras, cannon without range
finders. In numerous phases of modern war, the inventions, devices

:md equipment developed by the motion picture industry have
been found to Ie indispensable. Plants manufacturing these articles
ale filling Inpoitant government contracts while maintaining the
H.1pplie-s requiied for the industry's own unique service-the provi-
sion ol wholesome entertainment, useful information, and patriotic
inspiration for the screens of the United Nations.
(b) The March of Time is conducting a technical training
school for enlisted men in the Navy, Marine Corps and Coast Guard
in which 40 men at a time are being taught how to handle a camera
in the field, various production problems, film cutting and editing.
Three successive classes have been graduated to date and a fourth
class is now in training. The need for technicians competent to take
their places in camera crews and production units continues to
grow as the armed services expand.
(c) Balaban & Katz Corporation through its television station
in Chicago has given the U. S. Navy an ultra high frequency train-
ing school, the first of its kind in the nation. Six days each week a
class of trainees, all enlisted Navy men, march from the naval
armory on Chicago's lake front to the Balaban & Katz classrooms
in the Loop where this theatre organization's television engineers
use half a million dollars worth of special laboratory equipment for
classroom demonstrations in training men for special service in
aircraft detection and other technical tasks important in a war of
(d) Facilities, equipment and personnel of Hollywood studios
have been mobilized for special wartime services in the Pacific
coastal defense zone. Day and night, tasks of importance are carried
out in the spirit of patriotic service.
5. Talent Participation. Hundreds of filmdom's outstanding
personalities have joined the Hollywood Victory Committee which
is serving as a general clearing agency for personal appearances
connected with any phase of the war effort. Scores of popular enter-
tainers are visiting army camps and naval stations each week under
the banner of USO-Camp Shows, Inc.
The name of Miss Carole Lombard leads the lengthening list
of stars who, in the same gallant spirit in which she gave her life,

are devoting themselves wholelraI -tedly to sales o delei-,se bonds
and savings stamps, participatilrg i hiriancial catlpaign for \\.-
time charities, and responding to a k ide \at It-t\ nt calls Ito national
and community service.
In some instances, well kno:\ iiidustI\ execu.lti\es h1.ad( thlI
U. S. Treasury's volunteer statfs foir ale of Defer nse Bonds. liile
the success which hundreds uf theatres Iia.., attaiirnrd it n sellinL
Defense Stamps at their box offifcs Ias ponmpted th:- Secretary of
the Treasury recently to request thL.- \Var Acti\ iti, s Comlnittree Lt
mobilize the nation's exhibitors 111 a national dri\ce fr the sale of
bonds and stamps at box offices. Siiiil .,h iinl, of i*pr,,ial talent inl
the fields of advertising and publicity l. ha\e ben i, a:i'ii tod tlhe
Treasury, the American Red Cro-. the USO.C). aid m.ltl-! ..i .iza-
tions from the ranks of our indus r\ .
6. War Service in the Studi, 's aml rithl the Colorsi Thousands
of the industry's older personliel nimiilst contet-t thlrsiri\r.es \vith
memories of active service in tlhe first \\'d \\ War. TliCrusan.ds more
aid the Victory Program throui.lh special plujects ,f imp.irltance
This war will be won by the lia.rd tl.at t'ld.l-s til. Itli. .l \\ill
by the hand that points the gLili. E-.L\ ii iai anid \ruiiiaiI iii the
motion picture industry has the satifctctiri i f kin-,i\i,-' tiat the
service which this industry is i-eiilcliiik. tlis tii.tin all it- aillies
has been found to be essential It, lie iii.iinte!t-ii.iie .iii1 sItretl-.tl-en-
ing of military and civilian mli ile a.nd. IIn c.-rtaoii pla'ises. tI,
We pay special tribute to the e eri leii'tlheniii,, lis it tl i-ii tinI
all branches of this truly America.n indull[i\ \ Iii .ae p)ri\ ilt-eed I(
wear the uniform of army, nav\. .r I!nii'are it- IIps .is iiirin-bei s t tlli
armed forces. To these-and to,, iiiin i\\s e! Calllk.iii.t-n .it t.i I ff
fighting fronts or with naval task torces upiu I I i t.. .,lii,. ,1.s oItca- I
-we voice the heartfelt apprecialtiiii of uis ll. Tlieils lthe hi.li pr\ I-
lege of risking most through sei\ ice %\ itl ll crlo, s oiirs thle riiore
prosaic task of backing them to, rlhe liiiit a. itli oII., s*; ice at lioitle.
But regardless of our individual plac-u in tlie lilt. .ll uf uis I1 Ins;
industry are enlisted for the durationi. drctc-ritilId ti 1.1 all iout to
victory, and firmly resolved as I-tienehcia is it tr-ed'.i tol aid tlie
fight for its preservation and e\lrt-i;icii. tli -.,ghll the \ii hl


The \.-ar 19-12 collnplites, a period of twenty years in the pro-
.4,;nl o"f I ..t-ie 4nl.itioi, and public service begun by the motion
picture ilndustl\ .vithl tlle creati, ,n ,f the Mlotion Picture Producers
and Distributois of America. Inc.
In this \ear of \%r v\lic n iir forces on land, on the sea, and in
tli- aii lia\e joined iln a life or death struiagglt. now proceeding on
~\ e Coitblinnts a.ain't iiionistiouli powiels that seek to destroy all
that free iien hold dcaln this fact is important only if what has been
acconiiplishel in the past has prepared us better to serve now. That
is tlie test of the screen and of ever otlhei American institution in
this ital hour. \e could d not lia\ e ol esecn the meaning the words
\ oiuld take onl in the present supreme ci isi, when it was declared
in tHie \-r\ ineorporation, of our project that
"b\ establishbng and mnainiitilnilng Ldie lii.liest possible moral
and artistic standards in motion picture production, by de-
veloping the educational as well as the entertainment value
and the general usefulness of the motion picture,"
we would foster our own and the common interests of the nation.
Today the American screen serves on every front and in many
ways to contribute its entertainment, information and inspiration
to final victory. Pictures might have been a degrading element in
the recreation of our vastly growing forces doing war work at the
front or doing war work in our factories; today this entertainment
is generally recognized both for its high moral as well as artistic
content. The screen might have been a medium gauged to the re-
quirements of the lowest common denominator of amusement; but

instead leading educators of the nation are finding, ever-greater
educational values in more and more pictures. Producers might
have devoted their skills and facilities to entertainment only; the
fact is that with the co-operation of the best skills and talents in the
industry, a vast animated blackboard for the instruction of our
armed forces is being created through training pictures developed
by our military establishments.
Nothing that the American screen under freedom has achieved
in the past, however, is a tithe of the service which this democratic
medium of expression should, must and, I am confident, will render
as an instrument of morale, a means of information, a medium of
training, and a source of inspiration for the struggle and sacrifices
we must make to win the war and build a better world for free men
to live in.
This war is a total war, demanding our total participation and
our total energy. That is how it is being fought against us and that
is how we must prepare ourselves to assure final victory. But war
and victory do not mean the same thing to the democratic peoples
and to their adversaries. Though we shall not be found wanting in
the trial of strength, though we shall not relent without triumph,
we cannot forget that peace and justice are the ultimate goods
which justify war and sweeten victory.
The militaristic spirit of our totalitarian enemies worships the
false god of war. Even in time of peace, their governments are
tyrannical expressions of might-rules of martial law. But we regard
martial law as the very antithesis of government. We think of gov-
ernment as the voice of reason, not the hand of force, as fostering
liberty for the pursuits of peace, and safeguarding them by justice.
For us, therefore, war is not itself an ideal, nor does victory mean
a barbaric triumph.
What a country stands for in peace is what it fights for in war,
and how it fights a war is the surest proof of the virtues emblazoned
on its armor. Our resolution not to forsake peace-time ideals does
not diminish one bit the energy or efficiency of war-time effort. On
the contrary, the fact that we maintain constitutional government
and protect civil rights elicits from the citizens of our democracy

the aidor of free men, which always surpasses the robot-like effi-
ciency of slaves. Men who have learned to govern themselves
know how to cooperate freely in the building of industrial and
military might. They can gain that might without loss of rights,
just as they can use it for the sake of the rights they cherish and
will defend to the death.

For many years now, we have been developing the conception
of motion pictures as the art of democracy, reflecting its spirit as
well as serving it. It is not only as a medium of popular entertain-
ment and of popular education that the screen is a vehicle of
democracy. The motion picture industry also practices democracy
in its own processes of self-government. This year celebrates the.
twentieth anniversary of the industry's fusion of freedom with
responsibility in the solution of its problems as a public servant.
Both in program and in execution, the effort of the producers, dis-
tributors, and exhibitors to work together and to work freely for
the public good has followed the pattern of democracy.
No greater recognition of this achievement could be received
by the industry than the statement by the President of the United
States less than two weeks after we entered war. Writing to Mr.
Lowell Mellett on December 18, 1941, he said:

"The American motion picture is one of our most effec-
tive media in informing and entertaining our citizens. The
motion picture must remain free insofar as national security
will permit. I want no censorship of the motion picture; I
want no restrictions placed thereon which will impair the
usefulness of the film other than those very necessary re-
strictions which the dictates of safety make imperative."

Just as it is our national resolution to maintain the ideals and the
blessings of democracy even through the dark days of war, so the
motion picture industry, as the child of democracy, reaffirms those
principles which have guided its public service during twenty years
of peace and which now during war, more than ever before, will
secure the best effort of which the industry is capable.

There is no room for complacency today in anii depairtlient oi
an industry whose supreme task is still ahead. Our determination
for the future should be strengthened by our exp rit lce o:n the rtoa
we have traversed. It may be well, therefore, to r \ iew bi uefl in
this report some of the landmarks of our progress.
The situation facing the industry in 1921 is uell t.iiunimarzed
in the trade publications of the day:
"Never probably in the entire history of the m otion pic-
ture industry was a period stressed with such dlificulties as
that which developed during the year ending A.\uiiit :0.
1921. .. "
"The business depression, the result of the reltin to no -
mal conditions following the war period, lrIll\ hit this
industry . ."
"Constant threats of investigation, legisl.itio-n .in liti-
gation afflicted the industry. .. ."
"There was prospect that some 22 censorshlpl i \hills nil
become law ... ."
None could deny that the lusty infant which \ a, the ni I( ies Il;la
by 1922 transgressed some of the religious, ethical inl i'ci,,I 11:1l e.
upon which our society was built.
So on June 22nd, 1922, some three months after the incorpora-
tion on March llth of the Motion Picture Producers and Distribu-
tors of America, Inc., a Committee on Public Relations was organ-
ized, in the realization that public co-operation was required to
support a program of higher moral and artistic standards in motion
picture production and to develop the educational and other values
of motion picture entertainment. The co-operation of many na-
tional, civic, religious, educational and welfare groups was secured.
Heretofore the press had been the vast outlet for complaint
directed against the motion picture screen. Criticism and invective-
filled letters addressed to the newspapers and condemnatory edi-
torials were constantly appearing in the press. In 1923, therefore,
the Association took steps to focus upon itself public opinion with
reference to pictures so that complaints, suggestions and reactions

cmiinug from, public Iodies alid ildiiduals might be properly
cl. llrin led. o:i tli,.t iino ciitici.in -,uiild. be ignored and so that the
impact o1:f conisti uC ti' e opili[ui, ini'Azlit be reflected from the screen.
The slicctdiiJllg '..iis. 1924, 1925. 1926 and 1927 saw the adop-
tion aiinl '.le\' lopii nnt of foiuT lu la e ;v it i reference to the avoidance
cot tllr picturLizattioi of certain themes, treatments, books and plays;
the est.bliSliIten-t t1 A' Title Heistration Bureau to create some
order oult .of chans alnd .i oid obiecetiouin.ble titles; the organization
o.f a. Studio jiel;ations Cr.liniinttet to interpret directly to producers,
director and l tist, tlte reaction of public opinion and public taste;
.aId. tli.e:,idopti':n of tlhe hi t peu ihcc Production Standards affecting
the piottction of s. ci :il s.ilue. in silent screenn entertainment.
B 1929 tihe- i.,' ;iil.iI etffot li.d '1o 1w i into the Public Relations
Depaltrnenit of tihe Nl M ornI Pititure Producers and Distributors of
A.nitl i.. Tille A.ss.ci.'tiu:ii \\.is 'o,-o.per.iting with 326 national or-
ganizations interested in one or another aspect of the motion pic-
ture screen. The theory of the public relations for the industry had
been proved. Public group leadership representing half the adult
population of the country showed that as between censorship and
self-regulation, it preferred to support the reforms that could be
brought about by co-operating with the industry.
In 1930, with the industry revolutionized from silence to sound
and with talking pictures bringing in a multitude of new problems
for self-regulation, the organized industry voluntarily adopted a
motion picture production code, which was implemented by an
advertising code, and by various procedures with regard to the
uniform interpretation of the detailed provisions. In the several
years of trial and error that followed, additional organization, un-
remitting vigilance and strengthened means of enforcement were
undertaken, and, finally, there emerged the present successful pat-
tern of self-regulation for the screen, referred to by Fortune Maga-
zine as "easily the most successful of the long-established group


The value of our experience must be measured by the lessons
we have learned from it. A record of progress is prophetic of further
achievements only if there is understanding of the causes of success.
From difficulties already surmounted, we have learned how to face
problems. The present crisis does not find us unprepared.
In the twenty years of this Association's existence, neither the
country nor the industry has been able to pursue the even tenor of
its ways. During the last twenty years, we have witnessed the hys-
teria of a financial boom period, the depression consequent upon
its collapse, the problems of labor and the ordeals of the unem-
ployed, the growing sense of national insecurity in a threatening
world, and political conflict over both domestic and international
policies. Nevertheless, we have never forsaken the democratic
processes by which free men try to meet their economic and polit-
ical problems. On the contrary, the nation has faced each emer-
gency with a deeper sense of the responsibilities which rest upon
those who decide their course of action by debate and deliberation.
The motion picture industry has, of course, been affected by
the state of the nation and of the world. But, in addition, it has had
problems peculiar to its own development and destiny. In this
period, it has gone through many difficult financial and corporate
reorganizations. It has dealt with a rapidly changing labor situa-
tion. It has had to adjust itself to the exigencies of world trade
under the violent impact and pressures of revolutions and wars in
Europe and Asia. It has faced organized movements critical of the
content of the films, demanding reforms, seeking to impose ex-
trinsic controls.
But, above all, it has undergone an artistic transformation in
the transition from silence to sound without ever failing for a
moment in the performance of its basic function to provide an
uninterrupted daily flow of entertainment for its American and
world-wide audience. Anyone who considers the magnitude and
complexity of this transformation will realize the miracle of its
accomplishment-almost like an ocean liner undergoing complete

refitting of its engines and alterations of its superstructure while
continuing on its voyage. The full significance in service of this
miracle is immeasurable. No story ever written for the screen is as
dramatic as the story of the screen itself-and no chapter in that
story can excel in consequence that which brought the synchro-
nization of the reproduction of sound and action. The beauty which
genius has created has always been imperishable, but the artist's
interpretation of that beauty was a fragile thing, caught only for a
moment and held only in memory. Now never again can time
wither or age destroy anything that is imposing or exquisite or
memorable. This is not possible in just the same way in any other
art form; and, indeed, by no other function is the significance of
this art form more effectively demonstrated. It is a great tribute to
those pioneers who visioned in sound the creation of a new art and
almost of a new industry, that their faith did not falter because of
the problems involved.
All of this has been accomplished by voluntary cooperation,
through the democratically conducted enterprise of self-govern-
ment. In both its commercial and artistic phases, the industry has
solved its problems by discussion, not by fiat; by self-regulation, not
by coercion from without. Of course, it is true that wherever men
proceed in the democratic manner, there will be divisions of opin-
ion, opposing parties, divisive as well as cooperative elements. But
it is also true, in the affairs of the industry not less than in the busi-
ness of the nation, that the ordeal of obstacles and threatening
calamities has called for and elicited renewed and augmented
efforts to surmount these differences for the sake of our common
At every critical juncture, the members of this Association and
all their far-flung affiliates have forged a stronger unity upon the
anvil of adversity. Not in a bed of roses, but on the hard iron of
necessity and under the hammer strokes of crises, the motion pic-
ture industry has moved toward greater unity, has maintained its
spirit of free cooperation, and vitalized its will to turn problems
into progress.
A survey of the last twenty years will show that the great ad-

vances in screen entertainment have occurred at the \ enr moments
when the industry has seemed most beset b\ difficulti-s. The
crises we have surmounted have proved to be Lurniii poloints. at
which the road to improvement has been found. \\'e- iae ie\ er
been satisfied merely to regain the status quo. No probli-a is e\ er
really solved by returning to the situation which pr:Joduced it
We have always regarded our major difficulties no,-t as inmpedi-
ments to the continuance of business as usual, but as occasions flo
developing new and greater realizations of the. sce -ens limitless
resources. Nor have resourcefulness, technical in,\ vitieniess aiid
artistic ingenuity, been the only factors respoiinible lor tlree Ad-
vances. In large part, they have been due to the industry s cour.l-
geous adherence to its vision of what can be acclomiplishedi tlroui.h
self-government and through the unified effort At all itV I.naiiclies.
In the dark days of our colonial history, our forefathers stood
together because they knew the wisdom of the maxim that in union
there is strength. Our national history has verified this truth again
and again, especially at critical moments. A nation which has
learned this lesson painfully will not forget it now when it faces
what is perhaps the gravest challenge to its endurance. Nor will we
in the motion picture industry forget what the past twenty years
have taught us about the strength of a united effort.
This war challenges us, as it challenges every other department
of American life. Compared to this emergency, all of our other
problems pale into insignificance. But though they seem minor now,
these other trials have helped us to forge an instrument that is
ready for its greatest test. We are resolved, not merely to do our
utmost for the national welfare, but to make this crisis a turning
point to a brighter future. If we use the instrumentality of the
organized industry now in the same spirit which led us to form it,
and which increased its usefulness at every critical juncture, we
can be confident that our pledge to each other and to our country
will bear its promised fruits.
One thing is certain: we cannot fail as long as initiative, artistry
and wholesome expression remain unfettered in picture making. In
fact, the greatest significance inherent in the freedom of the screen

I1n thl- pIlrrit r-l.lr.le.lii is that the industry can move, progress,
.1I1d srI \ -. itli .-'. l-)lrv plu)gi ssi. e demiand that the nation may make
u.pon)i it It \wo.ull hait- Ibrni tIragie, indeed, if through a failure in
s;lt-i..cgl.ll tl.11. tIhe s,.le l ii tlli' i-iiergency were frozen in a vise
o1 political i..tnuoliul ip. Its iiiliait. subject to the control of red
tap- iand its [timctili Jist,., ied li\ o'.tside controls.

It ti e pu[Ill iititn.-n-: is Irsi tol be served, the screen must pro-
, ide \W.11iil<.si i i tLi ai, l t. ',-ntI 1 t. TF do this it must remain free to
utilize the full resources of artistry and talent. Indeed, it is only
through the democratic process of self-regulation that this public
service can be accomplished effectively. Wholesome entertainment
must be built on the solid foundation of a will and a purpose to
that end.
The United States was a hundred years old before the motion
picture business was born. The screen had no traditions upon which
to build, no pattern to follow. It grew from the peep show to the
palace through experience gained day by day, through a course of
trial and error. It cut its own trail. Its trade practices were dictated
by the exigencies'which arose and the problems which had to be
solved. A workable system had to be evolved and changed to meet
the necessities of what has become one of the most complex indus-
tries in existence.
The fact that the motion picture has remained free during the
past twenty years is not something which just happened. It is some-
thing which very definitely has been brought about. The price of
freedom has been more than eternal vigilance. It has been due to
constant effort, vision, and wise, long-term planning. It has above
all depended on its honest purpose to deserve to remain free.
A great asset has been the ability of the executives of the indus-
try to see clearly that, if an organized and effective effort to retain
the freedom of the screen was to be made, the producers must them-
selves take the full responsibility for decency. If the springs from
which it rises are polluted, the river cannot be pure. The only

logical place to assure the purity of a stream of entertainment films
is the source. It is an axiom that you cannot legislate people into
practicing virtue. Morality is a matter for education and of the will.
There has been a studied and constant effort to make powerful
and understanding friends for pictures by an organized long-term
campaign of education and information. This is not only highly
legitimate, but it is common sense. This long-term policy has served
the industry well. The screen has retained its system of self-regu-
lation by building up a record of integrity of purpose and of accom-
plishment. It has retained it by such proofs of sincerity that many
in high places who once wished to hobble it have become defenders
of its freedom.
Because the motion picture theatre has in so many places be-
come a part of the community life, because it deals with the lives-
and joys and problems of people, is supported by the people,
and belongs to the people, the people may be trusted to see that it
is never unjustly put in jeopardy. So universal is the interest in the
motion picture that public opinion concerns itself not only with
the products of the industry shown at local theatres, but also with
the leaders in all branches of the business and with the manner in
which the business is run.
The industry's future development is dependent on the con-
tinuity of its freedom; its freedom in turn is a corollary of the con-
tinued success of its program of self-regulation; but that is not all. If
the motion picture is to continue to enjoy freedom of expression, it
must maintain the same vision and vigilance, the same integrity of
purpose and performance that it has exercised in the past.

Last year a subcommittee of the United States Senate under-
took an investigation of the charge that certain feature motion
pictures were propaganda-"designed to influence the public mind
in the direction of participation in the European war."
The representatives of the motion picture industry who testified
at the hearing were able to prove conclusively the utter falsity of

tlie c 11:le Ilth with respect to the element of design which had
Ilu-e alleqcgd and also with respect to the claim that motion pic-
.liie-'s Iid bent extensively devoted to materials drawn from the
then cuilncit world situation. The very able, exhaustive and effec-
tive testimony at the Senate hearings given in turn by Mr. Nicholas
M. Schenck, President, Loew's, Inc., Mr. Harry M. Warner, Presi-
dent, Warner Bros. Pictures, Inc., Mr. Darryl F. Zanuck, Vice-
President of the Twentieth Century-Fox Film Corporation, and Mr.
Barney Balaban, President, Paramount Pictures Inc., is contained
in the public record of the Committee's proceedings. Messrs.
Keough, Hazen and Rubin, of the Legal Committee in the East,
and Messrs. Freston, Benjamin and Silberberg, of the same Com-
mittee in the West, and Mr. Wendell L. Willkie, Special Counsel,
also deserve the thanks of the industry for their services in helping
to meet the false charges directed against the screen.
As President of this Association, I had been invited by Senator
D. Worth Clark, Chairman of the Sub-committee set up by Senate
Resolution 152, to appear as a witness. Knowing that I would follow
other industry representatives, I prepared a statement which would
constitute a summary presentation of the evidence and arguments,
fully supported by statistical surveys and authentic documentation.
Before this statement could be presented, the hearings (which had
been actively prosecuted between September 9th and 26th, 1941)
were temporarily discontinued early in October. On December 8,
1941, Senator Clark publicly announced their abandonment; and
on January 12, 1942, the Senate itself officially suspended the work
of the Sub-committee.
The statement which I had prepared, along with all the evi-
dence and documents collected in the appendixes thereto, and
along with a letter from Mr. Wendell L. Willkie to Senator Clark,
will be published under the title Freedom of the Films. From that
statement I quote the following:
"This hearing and the public concern that has been
aroused by its challenge to free speech may prove to be as
epochal in the definition of our democratic liberties, as was
the case of Peter Zenger in New York, in the year 1735,

which established in this country the uiiid.aiilntal right of
freedom of the press.
"That basic liberty, enshrined :n iur Federal Constitu-
tion by the First Amendment, has nc e-r been sei iou.sl chal-
lenged since the enactment of the Bill o( R.ights. Ho\\e\er.
it has been suggested that freedom ol the screen was not
included in the original constitutional pro\isio:n Ifr a free
press. To say this is to ignore the e\ ident determination of
our forefathers to guarantee freedotim o cxpicssion. No
thoughtful person can doubt that if the motion picture and
the radio had then existed, these formn of expression also
would have been specifically mentioned as entitled to this
fundamental liberty. If we regard the spirit, not the letter.
of the Bill of Rights, 'freedom of speech must be construed
as including every avenue of public t:pression.
"I will go further. The screen not only shares this generic
freedom, together with the press, pulpit, and platform, but
in addition it can claim the liberty \lhiicll belongs to it in a
specific sense-as a recognized art ot story-telling and of
pictorial narrative. Freedom to report and discuss the acts
is indeed important. Equally important is freedon- ill fiction
to illuminate the facts we know. If this hIearing results in a
recognition of the rights of art in a deniocracy. it \ ill have a
great achievement to its credit."

Let us mark well the fateful coincidence of events in the \ear
1941. In the same year in which the people of the United States
planned to celebrate the 150th anniversary of tIhil Bill of Rights.
they were called by war to rededicate their li\cs. their fortunes.
and their sacred honor to the cause of human rights and liberties
throughout the world. December 15, 1941. the day set aside bs
presidential proclamation to commemorate the Bill of Righits. fol-
lowed close upon December 7, 1941, which made ever\ American
conscious of his nation's destiny in the continuing struggle between
free men and despotism. But, ironically. 1941 also sa\\ the Bill of
Rights momentarily obscured by the challenge to the screen's free-

doin that aricse with the Senate inquiry. How fortunate it seems in
letrovspect c t i nt c\,i Iefor tlhe fateful Decembler, the challenge
\'as Iorcefull, nret. and the threat dissip.ited
In retrospect the Senate inquiry is overlhadlowed by the events
ot December 19-11, but its portent is far from being unconnected
v. ith their significance. On the contrary, the position taken by the
industry and successfully maintained during the course of that
inquiry was directly relevant to the very Freedoms for which we
began to ighlt in Decernbei. as well as to the Bill of Rights, which
permits .us to live and act. e\ en during \,r. as free men rather than
.(S puppets.
The frst rnglt, the first trcdoni. definecl in that constitutional
charter was tr'cedorhii ol 'r peech or ot the press and "the right of
the people peaceably to assemble toi a:ll tlhe purposes of human
communication. The lull signifiicance of that right and freedom
gained widespreadd public attention in 1941 as the result of the
inquiry coincerrnrg alleged piopa.gadda im motion pictures, which
tlhicatenied to abiidge the freedom ot tile ilmns, challenging their
right to the ain e privileges wlhichl the press has now enjoyed in this
country for o\er 150 ears.
One result uf the inquiry, ot inestimable importance, is a
broader understanding ot the first article in the Bill of Rights,
\vhereb\ it is recognized that freedom of the radio and of the films
is intended, as \ ell as free speech and a free press. That the motion
picture screen and the radio are co-equal w ith the press under the
guarantees of freedom -of excommunication, was subsequently con-
firmed by the provisions of tie price control bill, enacted by the
77th Co.ngress on Ianuary :30). 1942. Herein exemption from licens-
ing. as a condition ut selling or distributing their commodities, is
granted to newspapersr, periodicals, books or other printed or
written matter, or motion pictures, or as a condition of selling radio
rime" i H.R. 5990. Section 205, 1.1 .
The long history of a free press hs" proved the importance of
its constitutional rights and pri% ileges. Though the motion picture
is still comparatively younLg as a omediumri ot entertainment, expres-

sion, and communication, we know how much the performance of
its public service depends now and in the future upon such rights
and privileges. We know, moreover, how much the vitality of all
our democratic processes depends upon freedom of communication
among free men. The motion picture industry has always regarded
and will always hold its grant of freedom as an opportunity for
doing its best work, and as an obligation to serve the best interests
of America and Americans.



The important work of the Production Code Administration
increased considerably in 1941 over the previous year. Its activities
are summarized in the following tables:

1941 Summary
Number of feature scripts read .1,086
Number of additions and changes in feature scripts
read 1,729
Number of short subject scripts read, including serials. 456
Number of books, stage plays and synopses read ... 132
Number of consultations 1,650
Number of opinions written dealing with stories,
scripts, pictures, etc. ............ ... .... 4,708
Number of feature pictures approved ....... 572*
Number of short subjects approved ..721f
* Includes 4 reissues and 22 foreign-made productions.
t Includes 10 foreign-made productions.

It is interesting to note that 45 more feature pictures and 14
more short subjects were approved in 1941 than in 1940.

Produced by: 1935 1936 1937 1938 1939 1940 1941
Domestic Member
Companies 334 337 339 322 366 325 406
Companies 169 229 228 169 161 154 140
Companies 61 55 41 54 57 44 22
Total .564 621 608 545 584 523 568
Approved 338 142 55 49 12 7 4

* Refers to features originally released without code seal prior to July 15, 1934, and
not included in the totals in the line above.


Social Problem


Social Problem



39 65
12 9
43 59
13 16
10 6
40 45
0 1
48 16
7 6

212 212 223

99 110
1 4
5 5

105 105 119

Social Problem

Human Interest


TOTALS ......







T i,.i f [. a tu.lr : plctm'lc'. -,i: hrfir llv ]ieli-ted by the Production
C(i. .hldiinlitiitt ll iillj llil 1941 T \ :int\ -two completed feature
.lI dtI ..i. l. ni III .l I.i i t.:i l v.C t-C il sit -i. :u'i illy revised and eventu-
.all\y .itde' t cin inli in Im t )pr\ iii",s nit tlit Production Code.
FoirtY'-tliicte crpl ii ] ti,... its-. In, tkiature pictures rejected
IIi thlt. mii ii ll21 11 11 l tl l .' ic. -\ I il-[t l. t-- I)bmitted, and approved.
Sc'. et nl\-tl- uc< .ldditi,)i.l cl' ipt'- .Viisd -s,. or story treatments re-
lectted thilnirr tl. \:cail '...*- in pi ) t-. s iOf correction at the end
,.F h941.
RH:'c.tit mii d .il i'limaiiili: s Indiiri ii portant provisions of the
CG')d I,:.latt1i .l to. :-.essi'. kill ngi illic it sex without adequate
cIl)iip: -iisatl ii n iItl '. Ili s (ill ,ci ie ,,,: suggestiveness, nudity,
iiipiiriln Ih-il,. i ini.inomal n ", iliic.tiniM of gangsterism, grue-
-Im. iit'IiS .111d illpitallt\ i pl-iop ir l.. li -nt of the institution of
mI1.I- i,'.ie, mel, i:d\ ti :.atui:'-it .1f nmim st.--i (i religion, sex perversion,
biganin), white e sl'. iy, and glorification of suicide.
When an artistic enterprise has experience in self-discipline, the
merits and qualities of its workmanship are in no way diminished.
We feel it is appropriate, therefore, in the very context of consider-
ing the disciplinary aspects of our work, to review the achievement
of artistic worth and the production of quality entertainment during
the last year.
Among the feature pictures generally hailed for outstanding
quality during the year may be mentioned: How GREEN WAS MY

Short Subjects

A much greater interest in short subjects as a means to enrich,
balance and make more colorful the theatre program was notice-
able during the year. There was general recognition of an upturn
in quality. The improvement has not been in technique alone; a
fine maturity of thought and intelligence has reflected itself in the
short subjects of serious intent with consequent broader audience

Cooperating first in the program of national defense and lat-
terly in the war program, the short subject departments of member
companies have brought to the public-and this is not to be con-
fused with the program of short subjects produced for military
training-fifty or more one and two-reel pictures dealing with the
war and its related problems. A few titles indicate their content:
no finer example of cooperation between private industry and

ILL'S ISLAND and MENACE OF THE RISING SUN, have left nothing for
the lover of the factual to desire-but, from the point of view of
"theatre" entertainment, it is important to note that the producers
have dramatized their subject-matter.

Almost every field of human endeavor is explored: music-
serious and frivolous; the laboratories of science; the world of
sports; the wider world of travel; what people do and, in March of
Time, what they think; the world of adventure; and, last but not
least, the world of imagination which is the world of the animators.
The year has brought us, too, exploration in the use of the short

story form as photoplaylets. Such pictures as DOG IN THE ORCHARD,

With history in thunderous explosion, the past year was a vital
and difficult one for the newsreels. No previous year offered more
news or more heart-breaking obstacles to newsreel editors getting
it. Nevertheless, there were many great moments which the news-
reels caught and recorded-the inauguration of our first third-term
President; the Churchill-Roosevelt meeting on the high seas; the
fiercest of the blitz bombing attacks on London; battles at sea
where convoys rode the life-line to Britain; the ever growing song
of the machines stamping out the tools of war; the President's war
address and Congress declaring war on Japan; Germany and Italy
declare war on the United States; Churchill's historic address to
Congress uniting the United States and Britain for war; the raid of
the British Commandos on Norway; and the bombardment of the
Gilbert Islands by the American fleet.
The attack on Pearl Harbor took place December 7, 1941; the
motion pictures of this great disaster did not become available for
newsreel release until February 27, 1942, though they were made
by a staff cameraman on the spot. The exigencies of military secrecy
made this long delay necessary; but the Axis powers used the delay
to advantage-claiming that "half the United States fleet had been
The inevitable friction of adjustment to war continues to be a
problem but the formulae for newsreel cooperation with Army and
Navy and State Department are being perfected. This is particu-
larly important in a war where the Army behind the lines is more
than ever before essential to victory; it is important to the welding
together and preservation of the singleness of purpose of the United
While the portrayal of war in the newsreels makes other sub-
ject matter pale by contrast, their editors recognize the necessity

for maintaining a balance which \hill pres -i\e the 'opi.It\r ot
the American newsreel.

The high standards of motion lpictuli .uldrtisinrg. as whole
during the year are evidenced by thie f a t; tla tlice \\ s nt .l ,ngle
serious violation of the Advertisirg (,Code Durlig the y)atr 39 con--
pleted press book campaigns were submitted and approved. These
include advertisements, publicity stories, newspaper art, lobby dis-
plays, outdoor posters and exploitation ideas. While some individ-
ual pieces of copy or art were either rejected or revised while in
proof form, no completed books had to be rejected.
This total, which is indicative of the number of full-length fea-
tures, compares with 490 in 1940 and 509 in 1939. The increase in
the number of press books is attributed to the fact that more non-
member-producers are now submitting material to the Advertising
Advisory Council than formerly.
Rejected or revised advertisements numbered 472 out of a total
of 11,143 submitted-or 4.24 percent. Rejections of exploitation
ideas and miscellaneous accessories also increased somewhat, but
there was a distinct falling off in the number of trailers which had
to be revised.
Since our entry into the war, particular attention has been given
to the portrayal, both in art and text, of our uniformed service men
in screen advertising.
Likewise, Latin American good-will relations have been care-
fully watched in all advertising submitted to the Advertising Ad-
visory Council.

'i:'i,,i,':,s -i.~ .\./i. iii:s ,V:. Y.' ,i. a.ni tl,, l'icood
.\ib,. it l Cosidered Discarded
.".I sulnbmission or Revised
1941 1940 1941 1940
Stills-H vollood 117 1(F5 95,090 2,320 1,196
-N-' York -I7 3,243 30 21
PihlictA Storis 9'N144 10,646 3 None
.\di:-Itis:nI: nts 11 14'- 11,256 472 324
ELploitation Ideas 4 I 9,021 21 11
Mi ;selIane:ous .:ess. iI,.is 4 'i15 4,796 18 16
Fosters I h1 1,759 37 39
Tral,-rs I 12'N 1,027 3 9
C(-ni)lpIL td PrIss Bi::k
(aimpa i,_s *Ap1 -e-il N 490
Ii tie i:.arl\ parl .of 1942 thIe func- ions of the International Pub-
licity Commnittee, consisting of the directors of foreign advertising
and publicity of member companies and of representatives of the
Association, were expanded to make even more effective the indus-
try's cooperation with the Coordinator of Inter-American affairs and
the Coordinator of Information.
The Title Registration Bureau, it will be recalled, was estab-
lished in 1925 to assist our member companies in avoiding the
simultaneous release of motion pictures bearing identical or harm-
fully similar titles. With the development of self-regulation of the
moral content of pictures it became necessary also to give attention
to titles from the standpoint of moral acceptability and good taste.
The present regulations in governing memoranda with regard
to the activities of the Title Registration Bureau resulted from ex-
perience gained over a period of years.
The scope of the present service is indicated by the fact that
25 producing and distributing companies, including 19 members of
the Association and 6 non-members, now take advantage of the
Title Registration service. The number of titles in the file of released
pictures is over 40,000. The number of titles registered in the un-
released file is about 11,000, and approximately 3,500 new titles are
registered annually.

The statistical record for the year 1941 shows: Titles registered,
3,587; releases, 1,076; titles cleared for non-members, 312; titles
rejected, 40; arbitrations, 3.
There was a slight decrease in the number of foreign titles regis-
tered during the year, the total being 2,100 compared with 2,150 the
previous year. Our files now contain a total of approximately 31,850
foreign title cards, mostly in the Spanish, Portuguese and Dutch
Year by year since its inception, the Department of Community
Service has extended its activities to render new types of service
required by the awakening interest of additional groups and organi-
zations and by the broadening of motion pictures to cover new
subject-matter fields.
The scope of community service operation is determined by the
number of actively interested groups and organizations represented
in the American motion picture audience. Its components have
come from the four corners of the world; it includes illiterates and
intellectuals, children and grandfathers, individuals and groups.
These groups are often directly and vitally interested in subject-
matter presented on the screen. Furnishing information to them
with regard to the aims and progress of the screen, assisting them
to take advantage for their own purposes of presentations featuring
their own objectives and eliminating the frictions inevitable from
the impact of the screen upon such a variety of opinion oftentimes
holding completely diverse conceptions concerning the acceptabil-
ity of entertainment, reflect the functions of community service.
The necessity for the reconciliation of these varied points of
view inheres in the fact that not only the cornerstone but the foun-
dation of the success of the American motion picture enterprise may
be summed up in the phrase, "one program for one audience." Here
pictures are not rated for showing to children or adults, theatres
are not graded and films are not made for different classifications
of audiences. The interest of national organizations in motion pic-
tures is invariably constructive when opportunity is furnished for
them to participate in promotional activities furthering their own

ideals. They include facilities to see pictures in advance of release,
the development of channels for publicizing group appraisals of
photoplays and short subjects, and such promotional materials as
bookmarks distributed by the circulation departments of libraries,
research exhibits displayed by school and public libraries, film-
strip exhibits presenting backgrounds of photoplays used in class-
room teaching, study guides designed as supplementary school
texts and lecture material prepared for the use of club programs or
presentation in other public assemblies.
The extent of the activities of the Department of Community
Service is indicated by the fact that during the year the Depart-
ment prepared more than 50,000 letters individually dictated,
more than 100,000 form letters individually addressed, held inter-
views with more than 15,000 individuals, and made or received
approximately 30,000 telephone calls. Further to illustrate this,
our field representative in the middle west visited 76 different com-
munities in 11 states, making 131 public addresses, attending 31
group conferences and interviewing 740 community leaders dur-
ing 1941. All members of the staff also engaged in this field work
so far as other duties permitted.
During the past year the principal accretion to this activity has
come from the more extensive publication of these opinions. Maga-
zines which either preview themselves or accept committee pre-
views and carry extensive lists of endorsed pictures now number
more than one hundred, including the D.A.R. Magazine, Parents'
Magazine, Boy's Life, Good Housekeeping, Christian Herald,
Christian Science Monitor, Library Journal, Scholastic Magazine
and others.
No amount of ordinary publicity or institutional advertising
could substitute for this cooperative enterprise. Frequently the
groups participating are the mentors of public opinion in the cul-
tural, social or entertainment areas where the motion picture must
function. To the support of these groups much of the industry's
prestige is directly attributable; without it much hostile legislation
founded on misunderstanding might have resulted. Community
service is a channel through which the stream of entertainment is
kept reasonably consonant with public taste. If in the process of


rendering service to these public groups the motion picture iii.ur,.
its own future, the industry is well served.
The Studio and Public Service Department located o, the e st
coast renders specific services widely appreciated I\ the r~atinii.tl
groups interested in social and cultural progress. Extensive pr,--
viewing facilities organized in Hollywood col respond d rX.ictl\ \\ithi
similar facilities provided in New York. Pre\ ic\ appraisal. from
both sources find their way into many local newspapers, are broad-
cast by local radio stations, are multiplied by the word-of-mouth
transmission of telephone committees and are reproduced in com-
mnunity bulletins. As its title implies, however, the Studio and Pub-
lic Service Department is able to render some unique services
greatly appreciated by all. While each of the national organizations
previewing has its own way of distributing its review to its own
membership, this department distributes in behalf of the chairmen
of all the previewing groups a "Joint Estimate of Pictures" which,
originally designed for the use of organizations not previewing, is
of value to all as a cross-section of the American point of view on
pictures. Similarly, its publication, "Leading Motion Pictures,"
points up those photoplays which have great interest to and value
for programs of the cooperating groups. The weekly radio script,
"What's Happening in Hollywood," contains current information
of timely interest for use by speakers and special news items. A
monthly booklet contains three or four pages called "Looking
Ahead in Hollywood" which aids motion picture chairmen of the
groups to keep track of the quality and flavor of pictures in produc-
tion, presents picturesque phases of studio life and reports in-
novations and inventions; from the group point of view this has
the great virtue of making possible advance planning of programs.
Other important functions of the department are liaison be-
tween the groups and the studios assisting in the organizing of
Hollywood previews with subsequent promotional values and co-
operation with writers interested in presenting more fulsome pres-
entations of the industry than those that find their way into the
daily press.
Universities and Colleges continue their active interest. Accel-
erating over these twenty years, higher education has taken cog-

Iiz.ll.i e 0o ti? Il-jotion pit e institution! So lle 200 college and
uIlliersitv\' (ouiS. b.irecd o0n dtie rc1dnrI l no\w exist. In 1941 three
de\eloprnents in this hield came to truitic.n. Har ard has incorpo-
lated a motion pict!(il- coturs'e iII It nUmmiier schl:,ol in the Depart-
li.llt (of Dramatic Aits. Cit% Cullege. in Ne% Y'ork. has added a
series of COULiseS Li rin.tl..ul picture tel illique to its clirriculum. And
Ne\v YoIk UFnli\i sit\ established the first full flui years' liberal
:,r s CcoL s inl i( 1ot1( pi.tt i es. gi anti ntg a.t coi01plLetion the scholastic
decree. Bacliclor of Liberal Ai ts
liheI HImiiin IRclutioiris Films ale gro\in-g ni popularity. During
194-1 rIhere were -4 46- sli)wilns oft 371 print ,.of the 71 subjects.
Initiated Js te Secrets of Success" Series b\ tlie Association, they
c"ie sulIeqtueiit .le\ deeloped bI the Progressl\e Education Asso-
*l'.ition tlnouLil a grant fiomn the G.rneidal Educatiron Board of the
Ih.ckrfeller Foilndation. They are Ion'ie ai d to-i-reel excerpts from
i-l io opla s i e< iced to 16 millimeter film each ,one presenting a
pit.-'len of(. tlie individual adji.istmenit ot \out-i to~ complex adult
nI\ ii'-,irtreiit. These r aroused exclusi\el\ in classrooms by
persoiallLt -giuidaince expel ts.
Ft rcImF2_ Film Cistodimo. Inc... thro. igl supply ing film-teach-
ing-,'iateii.ls ( to he schools, lias sIrengtlirened anid Ibroadened the
CI \ iL. O)t nl to111 pictltres to educatlI.n.
Thi Adi iolrv Colriinittte on0 thle Ulle of lMotinn Pictures in
Ld1 iicaLion consists ot

Alhk .\. MAY. Chaiiirmani
Director Institi.it. ot Hi.tiin.l
YJ-- U in tc rsit
ircsident Emiiii i
Yahl ULl\ ersltv
Fl.ErEKDlIC H. B\il
S ip -rii tenrd cit
Biu ,\ li ll, I N. Y. I O.loh.
I% \IAU Bo %r. .N
Ihiins HFopl.is ,l nn il rm_.,its ,
K.\In T Co'.arPiN
MI:,issachiisetts institute of
Tl' echlIIuluEg

Eixl L'. E. DV
PII t' del t
C-oirnell Urn ersity
li;Oi Y. I-'. F.U E\W-cLti\ti \ice President
Hiode Island Shiiool of Design
\'ILL.'i, E. Ci;\ NS
E'tC-cutl\: Secretary
National Education Association
I \i B. N.xsi
Piof essor of Education
N-t\ Yourk Un I\ rsity
Fi \i;ls I'. SI'c.UL[ iNG
D a.i. Cra.litrit School of
Ed tiicatlioIi
Ha r\ rd iini\ :.rsity

The research which the Advisory Committee on the Use of
Motion Pictures in Education is conducting in the use of films as the
basic materials for tie study of the social sciences, history, geog-
raphy, and presently of drama and literature, is attracting the favor-
able attention of progressive educators everywhere.
During 1941, 141 new non-current theatrical short subjects were
selected by this Committee and made available by our member
companies for classroom use in schools.
The Museum of Modern Art Film Library originated in a re-
quest for screen classics for use by students of art in museums and
educational institutions. The Museum's library of film today is un-
paralleled. During 1941 there were 1,175 showings of its prepared
courses of study. The library includes masterpieces, some of them
irreplaceable; all of them representing the step by step develop-
ment in the mastery of a new medium.
In 1941 the Metropolitan Museum of Art began using 16 milli-
meter films on Saturday mornings to supplement lectures on its
Egyptian, Greek and Roman collections.
A number of museums are now willing to display research
exhibits of current photoplays. The Director of the Baltimore
Museum of Art, having seen the exhibit on How GREEN WAS MY
VALLEY in the New York Public Library, asked the Director of
Public Relations of the Library to borrow it for display. Permission
was granted.
The wide theatrical distribution of the motion picture LAND OF
LIBERTY, originally designed as the motion picture industry's ex-
hibit for the two recent World's Fairs, has developed into an out-
standing example of what cooperation between a medium of ex-
pression and national organizations interested in patriotism can
contribute to a better understanding of democracy. To date there
have been 8,503 theatrical bookings of this picture. This phenom-
enal success of a composite film, which in the beginning was
thought incapable of commercial exploitation, was made possible
in part by the rapport existent between this department and
national groups concerned and in part by an intensive use of cor-
respondence. More than fifty thousand personal letters were written

explaining just how this picture might be of greatest local service.
The purpose to make a film that would show a cross-section of
America-democracy in action and in perspective-had been con-
sidered for ten years before the World's Fairs presented the oppor-
tunity and occasion for its production.
While LAND OF LIBERTY was welcomed by the public organiza-
tions which cooperated in centering public attention on the film for
its own sake, they did not miss the point that the many photoplays,
presenting the patriotic ideals which they exist to conserve and
promote, that went into its composition, justified not only their past
cooperation but its continuance into the future. To illustrate, each
month during 1941 the American Legion in New York has shown
LAND OF LIBERTY to several hundred prospective citizens, attend-
ance being required by the judges of the Federal Court of the
Eastern District before the Oath of Allegiance would be admin-
istered. The noted educators affiliated with Teaching Film Cus-
todians, Inc., have earmarked it as the backbone of a pedagogical
film series on American history; it may well be that the greatest
service of this picture still lies ahead.
The patriotic service typified by LAND OF LIBERTY will continue.
All the national groups, concerned more than ever with historical
implications of democracy as motivating factors in the successful
prosecution of the war, are alert to the use of current film attractions
in furthering their purposes. From April, 1941, through March,
1942, these groups have actively supported 24 outstanding photo-
plays and 38 short subjects which, in their judgment, have contrib-
uted the type of patriotic motivation essential to the unifying of
public opinion behind the all-out endeavor to achieve victory.
These pictures are all prime entertainment; because they were de-
signed for nothing else, they are the more effective. It is inevitable
that the pattern will change as the war progresses but working
together we shall not miss any opportunity for the motion picture's
patriotic service.
Meantime, we have not neglected those forcibly non-combatant
parts of the population who are shut-ins in hospitals or necessarily
"holed up" in other institutions. For them gratis film service con-

tinues to provide, sometimes, their onl\ ia.v of iIliiniiI :And bririiug
a welcome contact with the world outside. Iin manl of tihee insti-
tutions physicians report this service their hbet ps.chlio-thtrap\.

The statistical service of this Dep.i trinent \% hlch iali i ze' ex-
pressions of public opinion, reports that the imotion-, picture induistrn
as a whole enjoyed good press relations in 1911, the o ernwhelning
sentiment expressed in newspaper and other comment being fa-
vorable to industry activities and policies.
There was a significant drop in demands for censorship of the
screen or any form of regulation of the industry, only 1 per cent of
the total volume of press comment being in this category. This low
volume reflects a general acceptance of the industry's machinery of
self regulation.
Such events as the publication of the Annual Report last year,
the documented denial by the President of the Association of
charges of war-mongering in the industry which preceded the hear-
ings in Washington, the public relations campaign accompanying
the showing of LAND OF LIBERTY, the publication of FILM FACTS by
the Association and finally the surge of press and public opinion
which supported the industry during the Senate sub-committee
hearings last fall, were among the favorable factors.
The Department continued to prepare the regular weekly short-
wave broadcasts to Latin America.
During the last months of 1941 and the early part of 1942, the
directors of advertising and publicity in the New York offices of our
member companies organized themselves into a committee cor-
responding to the committee which was formed in Hollywood dur-
ing 1941.

The emphasis on unity, better understanding and better rela-
tionship among all factors in the industry, noted during the year,
points to the direction from which must come the eventual solu-

tioln of still existing tlCade pioble,s in the industry. It was not to
be expected d that the disruptioni of trade practices, some almost as
old as the umdust-ry made nricessaiv by the provisions under the
Consent Deciee negotiated by fi\,- companies in the industry,
Aould n(ot b- follo-wed by difficult uncertainty and disagreement
I heIn _i-c w1 operations were put into elect. Such difficulties neces-
saril\' arose diiurliig tlhe \ .a r.
In the first t Conrient Decree. 165 coilplaints were filed with 31 arbitration offi-
cels. \lost of these complaints. 1.34 cases, involved alleged unrea-
sornale clearance. the jeiiinarler \\ere mostly complaints of in-
ability toI licciire aIst ilun or :- partic-lar run desired; 78 of the 168
cominplaints \were heard before arbitrators and awards entered; 42
wei-e v.'ithdrawin before Ile.aring. Of the 78 awards, 23 were ap-
pealed to New York and final diciions have been rendered in
IT appCeals. :37 aai\rds fa\iored tib elhibitor and 41 favored the
distui butor against w'homn die complaint was made.
The prospect ol e entual solution of all the trade problems in
the rindltiry li-s inl tie rijtual desire of all factors to remove all
obstacles to disunit'y jad thu- s.nii-patletic attitude expressed by
oeriiimeiit to listen to suI elLecti e proposals as may be made
that %will assure tle Iighlest possible standard of trade practices in
the industry.
As the war situation was intensified progressively throughout
1941 the theatres became increasingly active in defense and war
activity. The use of the screen in the theatres for the showing of
government films and national defense subjects was organized
capably by the committee set up for the purpose.
In addition to the Red Cross, infantile paralysis, poppy day,
community fund, and numerous other established charities that
expect theatre co-operation regularly, in 1941 the theatres were
called upon to help with Greek War Relief, the aluminum collection
drive, the Defense Bonds and Savings Stamps campaign, the U.S.O.
campaign in June, and again in September, the Red Cross War
Fund in December; and a considerable number of local and minor
requests and demands for theatre co-operation were made.
Practically every motion picture theatre in the country makes

cash contributions and donates screen time to the local American
Red Cross and other charities. In addition voluntary contributions
are solicited among the 145,600 theatre employees and their fami-
lies with roots in 8,488 communities. In 1941 motion picture the-
atres collected $988,000 for the United Service Organizations. Va-
riety clubs gave approximately $900,000 to help underprivileged
Our Association, acting as trustee for the entire industry,
distributed the net receipts from LAND OF LIBERTY, totaling
$148,923.88, to the following organizations representing various
types of war emergency welfare work:
Aid for Air Raid Sufferers in England
American Red Cross
Jewish Welfare Board (Jewish Chaplains)
Military Ordinariate (Catholic Chaplains)
Protestant Commission on Army & Navy Chaplains
R.A.F. Benevolent Fund of the U. S. A., Inc.
United China Relief
United Service Organizations
During 1941, the importance of the safety activities inaugurated
by the Conservation Department of the Association was immedi-
ately increased by possibilities of sabotage, fire and explosive haz-
ards as a consequence of bombing or other acts of war. The Depart-
ment is active in anticipating hazards and coordinating preventive
measures with personnel related to the handling of film.
Because of the national emergency, the Department recently has
appointed air-raid wardens in all coastal and important industrial
centers where it is feared air-raids might occur. The duties of these
air-raid wardens have been clearly outlined so that they may co-
operate to the fullest extent with the local authorities of the Civilian
Defense Program and the employees of each exchange in their
respective cities were instructed as to just what they should do if an
emergency arises. The supervisors of exchange operations of mem-
ber companies cooperated 100 per cent in this regard.
In 1941, only one fire was reported from a distributing office in

the United States with a monetary loss of about $200. In the period
from January 1, 1926 to December 31, 1941 there have been a total
of 14 fires in member distributing company exchanges. The total
monetary loss from such fires was only $4,594.50.
The Department cooperates in its conservation and protective
work with all fire protection and fire prevention bodies and con-
servation groups, among which are the National Fire Protection
Association, National Board of Fire Underwriters, National Fire
Waste Council, the Bureau of Explosives and the United States
Fire Marshals Association.
The Department has cooperated in preparing for the use of the
War Activities Committee of the Motion Picture Industry volumi-
nous and technical questionnaires for motion picture laboratories,
film reclamation plants, exchanges, home offices and newsreel
companies, which ultimately will provide the necessary factual
information as to the priority needs of these important divisions of
our industry for the year 1942.
Because of the shortage of tin, an application was submitted to
the Bureau of Explosives for permission to use a cardboard con-
tainer for the shipment of motion picture film in lieu of the tin cans
which have been used since the beginning of the film business. The
application was granted and very soon the film manufacturing com-
panies will begin using cardboard containers for the shipment of
positive raw stock film from their plants to the laboratories.
In the field of motion picture technology much progress was
made last year in various details of technique. This and the preced-
ing year have been periods which saw the intensified application
of new developments in the art. There has been considerable study)
and experimentation with noise-reduction systems, and the prin-
ciple of frequency modulation control has received wide attention.
The fine grain film, developed by manufacturers some years ago,
came into general use for production and release printing during
the year. Much work on the techniques of using the fine grain film
has been done in both the studios and the laboratories. There is
considerable activity in trying to find substitute materials in photo-

graphic processing. Although not dehnitely c'uernatograplhi.N the
new Kodacolor film developed by E.stnan durLig tde past .\ear. it
is believed, may prove of considerable interest to the motion pi turc:
industry, in view of its possibilities in exploitation .and aid er tsin .
There is a growing appreciation in Holl-lood ,t the tact tiat
either good or bad public opinion is inlieient in n.-cailv e'.er ac-
tivity of the industry.
Publicists Committee. This is bearing fruit in the \~o Ik of the
Committee composed of the leading publicists ot our studios .\ I'ic i
is working with a similar group in the East. The increased acti\ itieb
of this Committee are aiding materially in developing a significant
industry spirit. It has applied itself successfully to the solution of
many vexing problems.
Call Bureau. During 1941 our studios placed 4,265 calls to this
Bureau. From this amount, 3,070 engagements were recorded for a
total of 1,557 players. These engagements were signed on the
Screen Actors Guild contract and were separate to and apart from
the picture deals.
Public Charities. Show business has always been known for the
generosity of its heart. Carrying forward this tradition, the motion
picture industry willingly gave of its time, services and money to
numerous charitable enterprises.
Stars donate their services to benefit performances, to radio
broadcasts and to the production of Community Chest films. In
addition, the Hollywood film colony made the following contribu-
tions in 1941:
Los Angeles Community Chest ...... $ 475,826
American Red Cross ... 440,000
Infantile Paralysis Fund ...... 75,000
Motion Picture Relief Fund .... ......... 295,714
British War Relief 250,000
Greek War Relief.. ........................... 104,833
United Jewish W welfare ................... ..... 325,000
United China Relief ... ....... 70,000
U. S. O. .... 215,000


Our American nmoioi, pictures are still the most popular form
of amusement throughout the ,world wherever audiences are free
to select their entertainment. This popularity has been increased
rather than diminished b\ the world war. Total warfare under mod-
emn conditions ivroloves c iv ihan as \ ell as military personnel.
The relaxation offered h\ notion picture entertainment is in-
valuable for the maintenance of morale, both civil and military.
For this reason motion picture euterta inment ranks along with food
and military supplies as an essential factor in the prosecution of the
war. Also it is vitally important that the American motion picture
continue to senve as an exemplar of the American way of life.
Axis W\'ar on Amcrican Films Because our motion pictures
vitally -express die life alnd customs of a free people under a demo-
cratic form of government, the Axis nations virtually declared war
upon our industry long before the treacherous attack on Pearl
This attack began in Germany soon after the Nazis came into
power in 1933. The Nuremberg laws imposed Nazi supervision of
the branches of our member companies. In 1935 the Nazis insti-
tuted drastic "Kontingent" restrictions which reduced the already
limited imports of American films into Germany by 50 per cent,
and assessed high "Kontingent" fees on the importation and re-
lease of American films in addition to the import duties. The
same decree introduced other restrictions as well as censorship by
the Nazi Propaganda Bureau. These were the elaborate devices
used to prevent the showing of outstanding American pictures.
The Nazis not only feared the influence of American films on
their own population, but they also feared their effect on world
opinion. They took every measure to combat the release of our
pictures in-Latin America and the Far East as well as in Europe.
Their activities in the International Film Chamber, which they
formed with representatives of a dozen other countries in Europe,
were aimed primarily at reducing the markets for American pic-
tures on the Continent of Europe.

In 1938, Italy, after several years of restrictions on remittances,
excessive taxes and other discriminatory measures against our films,
created a State film monopoly, aimed at confiscating the business of
our companies in that country. These had the effect of forcing our
companies out of business and resulted in important revenue and
capital losses, for our distributors refused to deal with a monopoly.
Beginning with the Anschluss in 1938, and thereafter, each time
a European country was invaded by the Nazis, an overseer-gen-
erally a Gestapo agent-took over the control of the branch offices
of the American companies. He fixed his own salary, payable by
the office. A few months later the offices were closed and the dis-
tribution of American films was stopped.
In 1937 Japan conferred a monopoly upon a State company for
the importation, production and release of films in Manchukuo,
aimed to force our companies to turn over their business to the
monopoly of this vassal state. Our companies refused to deal with
the monopoly.
For three years before the attack on Pearl Harbor, Japan adopt-
ed measures aimed towards total elimination of the release of
American films in Japan. Drastic reductions on imports of Ameri-
can pictures were instituted, providing for only 40 features by
1941, and restrictions were enforced limiting the release of Ameri-
can films already in the country. During these three years, remit-
tances to our member companies were strictly forbidden, except
for part payments of print costs. The Japanese Government never
complied with its own agreement with the branches of our mem-
ber companies in Japan covering film import permits and foreign
exchange remittances. A short time before Japan attacked the
United States, our representatives in Tokyo were forced by police
pressure to sign employee indemnity agreements providing for
large payments to employees should the offices be closed. This
was after an unsuccessful attempt by the employees to take over
partial control of our member companies. It may be that even then
Japanese authorities foresaw the coming war against the United

Foreign Revenue Reduced by War Conditions. Because the
motion picture is one of the essential resources in the war against
the Axis powers, the American industry has recognized its obliga-
tion to maintain the constant supply of wholesome entertainment
in every possible foreign country. This service has become increas-
ingly difficult during the past year because of the drastic reduction
in revenue occasioned by war.conditions.
Thirty-one foreign countries are completely closed to us be-
cause of occupation or domination by the Axis powers. In normal
times these countries produced about 10 per cent of the total world
revenue received by our producing companies.
In normal times 35 to 40 per cent of the world revenue was
received by American distributors from countries outside the
United States. In the countries which still remain open to us there
is a considerable reduction in revenue due to the depreciation of
foreign exchange against the United States dollar. This reduction
amounts to about 20 per cent, and accounts for a further loss
amounting to approximately 6 per cent of the normal pre-war
world revenue.
Freezing. An additional element of loss in world revenue is the
freezing of foreign exchange in numerous countries because of the
dislocation of world business. This condition deprives many coun-
tries of their normal revenue from exports and therefore compels
them to limit the amount of dollar exchange which may be paid
out for imported American motion pictures.
Because of the obligation imposed by the war emergency, the
American motion picture industry has continued to furnish the
normal supply of films, even to those countries which could not
remit the rental receipts in full. With such countries various ex-
change agreements have been negotiated by which the American
industry receives an agreed percentage of the remittable funds
normally due for motion picture rentals. In these countries, notably
the United Kingdom and the British dominions, a very large
amount of sterling belonging to the American motion picture com-
panies is still impounded. The annual amount of remittable funds
withheld from the American companies in accordance with these

exchange agreements totals approximately 11 per cent of the no1--
mal pre-war world revenue.
Increased Taxation. The tremcendoln I:iburdeln of c\ periditrire for
war purposes, together with the generally demoialized condition
of business, haVe occasioned in all colintiic-s a frantic search for
new sources of revenue. This has resulted iri an increased burden
of taxation upon the American motion picture iindu-trN Ui man\
of the countries where it is still possible to operatee For e\aimple.
in one of these countries the sum of \ a ious taxes paid b\ A.merican
distributors equals about 27 per cent of their gross ievenuc.
The English Agreement. From the business standpoint, the im-
portant development in the foreign field in 1941 was the conclu-
sion by the industry of the Third English Exchange Agreement for
a year beginning November 1st. The Agreement provided for the
transfer of $20,000,000 of the sterling revenues, in the United
Kingdom, of the eight American agreement companies, plus 50
per cent of the companies' blocked funds as of October 30th. The
new Agreement renewed the general clauses of the previous agree-
ment and the "Measures for Regulating the Disposal of Film Com-
panies' Revenues."
In pre-war years revenue to the industry from the United King-
dom accounted for about 20 per cent of the total production costs.
During the negotiations for the 1941-42 Agreement it became
apparent to the British Government that it was vitally necessary to
permit the transfer of a larger share of the industry's revenue in the
United Kingdom to enable American producers to continue their
essential service of supplying motion pictures to the democracies.
Hemispheric Solidarity. The unity of the Americas in our com-
mon defense demands the co-operation of every medium of mutual
understanding. Axis propaganda is working ceaselessly to disrupt
that unity. The American motion picture industry has enlisted for
the duration in the task of helping to maintain a firm solidarity
among the republics of the Western Hemisphere.
The industry continues its three-point program. First, care is
taken to see that American pictures accurately portray the history,
culture and traditions of the nations to the south of us. An impor-

t.IIit ,14, 1 it) f i, l10I, tl i- ,, ) t P ,-,i %I% .Ih t li i ,, I_ I1 I Ipc "illIt ufh
.I. ii A r viiit i., .\I f,,,-. t l, : [t',.,ulr :'l ut lie PtrU(_.ie,.it lo l C uOf,
\i luiil'tr.illt ,i SC.L.I'd \ii e icaii rei rveeil c.Uniiuljtin. ar utinter-
t:ikiiiu' inu .- ,_\telli .. _i\t e ri;t iO tlif th I c, Noa Ili .am l Latin A. It.-I i-
.C ,ii G n,-_ 1;, tl ..,: v,' ll Iti gl\, '.,id, rf lh:i, e. %% l T hii .\1:.11
effort is heliig li.-le ti the prlndlctiltn of ejitertl ini eini t hlns ,i 'l i
,l tnesti.. Ih(c:u le% it,,,,t of \ lili ;ile rele.,s d 1 Ii Latii \ Ali-ric:.,. t',
I.ton\ e, a tr ttl lii .iI iiii Ti, ',in>\ iit, 'tln Re -pitn t -
lii.t '.,i reHle',tt-r ii the la t that itttit Hlistait.ldri ,-riou's tlIre.il
ili selvfril Latin A.merican o 1untries to relti-.it iinlpoitatiol a,11
Il,-- v e- tI Airteiicdai irlotion pictures. inhe nf dien mll ati ia liz3id :l.
The Ai ', powtel i .ert: active in Latin Ar eri,'c a t( iritii the \ -t I
in oppo-intr g l b. ..\ ) \ p.i ihi , iie ii: 1 include rii, pit ulli ist Rt i mrl -ces.
the relea,: oft a riia le! t i- r filri.. hT e, (lid i c(.(,-red in pi es cint-
ing the l,'il il ot ,oronie tiit.tandinic .-\i ericari filn1,c in ilpoi ta ti
Latin Aine, i'can iii,.rkets lhut it I,' e ie(.ct-ed that \Ithi t he dl i -
cl-opmen its in iteiti-Aiim i ci',lo i..ld tii'ris I1n 1942 mn t if tlitee 11).-
tuic:-s w ill inus% be p,1.is, d. paL rticIl.i l t ll ,,oe ,..tiit ii'<:s \\ li.cl
l'reak off dipl-in.itic ie!.ition with tlthe: A 1Ai _.i e i.


The role of the screen in the struggle in which our country is
now engaged is, indeed, a major one. Its recreative, educational
and inspirational functions cannot be exaggerated. The spirit of
the men who will use the vast armaments we are producing and
the spirit of the nation behind the millions we are marshalling for
combat, light the road to victory. The moving image of that spirit
will be reflected on the screen, and the reverberations of its message
will reach everywhere in this land and even to the distant home
and fighting fronts of our gallant allies.
No other medium can give its audience a greater sense of par-
ticipation-and it is only through a universal sense of participation
in the great task before us that our democracy will prove itself.
There has never been a greater opportunity for the film art to exer-
cise its powers as an instrument of freedom. The industry as a whole
cannot fail to encourage the production of films which inspire the
imagination, rekindle patriotism, and fortify the will.
War, as Americans wage it, is for the sake of peace. That is why
even now we are concerned with the sort of world in which Amer-
ican democracy will live and play its part after the war is over. A
moment's thought will show what an immeasurable service a free
motion picture screen will perform in the advancement of world
understanding after the war.
Within the boundaries of our own country, films have done
much to break down the barriers of sectionalism. They have helped
to bring our people together in a genuine community of national
life as no treaty or body of laws alone could have done. The motion
picture is an international popular art. It is almost an international
language through which men can share common experiences and
common emotions. It has, therefore, a tremendous international

,Ipprtunitv and a tremendous international responsibility. Holly-
\'-,o.d, as the film capital of the world, will have a mission in the
llf .iult post-war years-aiding the development of amity, mutual
.illpathy, and broadened understanding among the peoples of
(t1- earth. So long as this end is kept in view, the means will be
pii,'gressively realized.
In this report we have considered the motion picture in a world
at war. We havc defined its functions and measured its powers. We
have seen how tle past achievements of the motion picture indus-
try, in artistic product and in democratic process, have prepared it
for its present task and for great ones in the future. Nothing short
of what it has already done would warrant us in saving that it is
equal to the call for victory.


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