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20
The Kinematograph Year Book.
THE YEAR IN AMERICA.
By J. M. Jerauld.
FOR the American industry the year 1938 was divided into two periods of depression and retrenchment in the first half and an aggressive determination to do something about it in the second half. By early summer it was apparent that a lack of good pictures and a plethora of re-issues were accentuating the general economic recession. Production was accelerated and plans were laid for a §1,000,000 advertising campaign in all daily newspapers in the United States and Canada, accompanied by a " Movie Quiz " contest carrying §250,000 in prizes.
A combination of luck with foresight brought almost immediate results General conditions began to improve as a result of the Federal Government's renewed spending programme, and during the early part of August some of the most successful films of recent years were released instead of being held for the usual start of a new exhibition season the first week in September. Theatre grosses began to climb back within measurable distance of the best weeks of the year — Christmas, Xew Year and Easter.
One of the incidental results of the advertising campaign, industry leaders hope, will be an improved editorial attitude towards the industry — a realisation that the prosperitv of the countrv is intimately associated with the prosperity of one of its largest industries. This is going to be important for some time to come as a result of persistent attacks both in State legislatures and in Congress.
The legislative situation has become such that the industry faces the possibility of a drastic reorganisation which might make it necessary for producers and distributors to get rid of all theatre holdings, to stop selling an entire season's output in blocks, to remodel the clearance system whereby large theatres have protection over subsequent runs, to inaugurate Trade showings with pictures offered to the highest bidder after completion.
None of the major company heads likes to contemplate the prospect. They admit the need of reforms, but contend the present system is an outgrowth of competitive conditions that seems to fit the needs of a country 3,000 miles across in which thousands of exhibitors cannot buy pictures on an individual basis without spending much of their time travelling to exchange centres.
The present situation is a culmination of a long legislative campaign sponsored bv Allied States Exhibitors Association with the support of other organisations during which producers have failed to make any important concessions on contract cancellations and other controversial sales practices.
Chain tax laws are aimed at circuits in a number of States ; in North Dakota a " circuit divorcement law " has been upheld by a Federal threejudge court and will be appealed to the U.S. Supreme Court; in another, prohibitions against double bills in sales contracts have been outlawed by court decisions ; a subsequent run price-fixing clause in sales contract has been ruled illegal in another State and an appeal has been filed ; last spring