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May, 1926
AMERICAN CINBM ATO GR APHER
Nine
CJ Speaking editorially, MERRITT CRAWFORD, publisher of Motion Pictures Today, strikes the heart of the present frame of mind, as follows :
r "It is not in mere bigness, alone, however, nor in the possibility of superior efficiency in operation which such a merger of important printing and developing interests may have in competition with the smaller laboratory groups, that we see ultimate danger to the industry as a whole.
" "It is rather because of the fact that every producing or distributing company with but few exceptions, is inevitably (such is the curious system of financing in this business) not only in debt for film to the laboratory which manufactures its prints and holds its negatives, and beholden to it for credit at times, but is also largely dependent upon the laboratory for the large cash advances necessary to carry its production and distribution overhead.
" "Herein, as we see it, lies the real danger to the industry and it needs no great wisdom to foresee the possibilities for downright injury, burdensome dictation and preferential price-fixing which might result to the vast disadvantage of the majority, were a single laboratory group to become so powerful as to eliminate all genuine competition.
" "Right now, it seems to us, is the best time to consider this matter from all angles — six months from now it may he too late."
C| Competition is necessary to stimulate trade, the orthodox political economists tell us. Consolidation cuts down overhead and eliminates duplication, their more modern brethren reply. There can be little doubt as to the economic desirability of a combination which tends toward the elimination of needless competitive waste and substitutes therefor, under legitimate regulation and honest control, enlarged facilities for research and general progress. We hope that the latter is what today's laboratory situation presages. Certainly there is no reason why the expanded efforts should not bring such usefulness to the industry as a whole. Meanwhile, let us also hope that what Mr. Crawford terms as "genuine competition1' may not be stamped out.