Canadian Film Weekly (Jan 12, 1944)

—— Page 6 OF CANADA LTD. 2%77 Victoria Street, Toronto. * SHH-HH? DON’T TELL ANYONE THAT— Women In Bondage Starring GAIL PATRICK NANCY KELLY * SHOWS THE TRUTH ABOUT— The destruction of morality and womanhood under the Nazi New Order. Secret Service regulations dictate to German soldiers whom to love. Nazi baptism of babies under military sword and Hitler’s Mein Kampf. German women directing British Bombers with light signals to pummel Nazi factories. Wins Critics’ Praise in Daily Variety Motion Picture Herald Showmen’s Trade Review True -- Because it is produced from Eye-Witmess Accounts. * The new “big name” company in the industry. MONOGRAM PICTURES Toronto, Montreal, St. John, Winnipeg, Calgary, Vancouver. N THE last forty years the the motion picture industry has travelled far, from the Nickelodeons of its early days to the elaborate Movie Palaces of the present day. What was then looked upon merely as a novelty, chiefly ‘for the kids”, has now become the most important medium of amusement and entertainment for the _ entire population, young and old alike, not only in this country but throughout the world. It is estimated that 85,000,000 cash customers patronize the movies weekly in the United States and 150,000,000 in the rest of the world. For most families, a visit to the movies once, twice or even three times a week, if income permits, has become a “must”, if domestic peace is to be maintained. The scope of the industry can best be realized by the fact that its total capital investment is now estimated at $2,050,000,000, with almost 200,000 employees and an annual payroll. of about $322,000,000. Chief factor responsible for the industry’s current prosperity is the high level of industrial activity throughout the country with full employment and relatively high war-time wages. Generally good pictures, enjoying long runs in the large theatres, have also been an important factor in the better results. Seven Stages of Development From the historical standpoint, it seems correct to mention seven important milestones in the remarkable growth of this unique and always surprising industry: 1—Experimentation and crude production (Nickelodeon Era). 2—Successful silent productions (“Birth of a Nation”, ‘“‘Covered Wagon", etc. Era of Mary Pickford and comedies of Charlie Chaplin and Harold Lloyd). 3—Development and perfection of talkies. First successful showing of “The Jazz Singer” with Al Jolson, by Warner Bros. 4—-Competitive race for the acquisition of theatres and smaller chains by the big companies, resulting ultimately in the “Fox Fiasco” and other troubles of overexpansion. 5—Full growth, with many artistic and dramatic productions, together with the double features and many poor quality productions. 6—Technicolor, which has come to stay. 7—Competition for good Canadian FILM WEEKLY The Motion Picture Industry Now in Golden Age of Commercial Prosperity From FITCH MARKET and BUSINESS FORECAST Published by the Fitch Investors Service stories, either original scenarios written for the movies or adaptations of plays from the legimate stage or adaptation of novels and other stories. (‘‘Gone With the Wind” is a good example of this trend.) Competitive bidding has brought prices for good stories to fantastic levels, with $300,000 no exceptional figure. That brings us right to the present time, which may well be called “The Golden Age” of the motion picture industry, as far as its material prosperity is concerned. ; Post-War Outlook Confused From here on, however, we shall have to face the question as to what effect the end of the war will have on the fortunes of the industry. Even the most optimistic economist will probably admit that employment will be greatly reduced and that general wage levels will probably recede substantially from the wartime levels. Population shifts from the new war production centres will also be an upsetting factor. Other influences which may adversely affect the industry are the revival of automobile travel, with week-ends in the country, the growing popularity of bowling as an indoor pastime, competition from television in the homes and last, but not least, foreign competition and the probability that many foreign countries will establish a quota system for American pictures in order to foster and protect their own motion picture industry. Such quota systems were in effect in some countries before the war and it is likely that tendencies in that direction will be more severe after the war, since most wer-impoverished countries ° will desire to keep money at home, as far as possible, rather than let it go into the treasuries of foreign companies. Such restrictive measures were not very important, since public preference for American pictures was strong enough to exert a moderating influence on Government policies. If, however, foreign producers can improve the quality of their pictures to bring them up to our standards, such quota systems could become a serious factor. English and French companies have made substantial progress in recent years and after the war Russian, Swedish and German productions must be reckoned with. Junuary 12, 1944 Financial Policies Need Improvement Above all, the financial management of most of the companies has impaired the attraction of motion picture stocks for the conservative investor. Cost of production for most pictures of the “Super-Super” type has been entirely too high, including excessive prices for the stories, fantastic salaries, bonuses and stock options for the producers, writers, directors and stars, with scant consideration for the stockholders, the real owners of the business. It may be summed up by calling it the “Hollywood State of Mind” or “Swimming Pool Management”. Recent revelations showing the willingness of highly paid executives to pay large sums in tribute to gangsters, rather than fight these blackmailers, is symptomatic of this condition. Some reforms have been carried through in recent years, but much more remains to be done to establish investor confidence. Higher Federal income and excess profits taxes run into very large amounts, but the much greater patronage has more than offset this factor in 1942 and from present indications, the same will be true this year. LEATHERETTE FOR SEAT REPAIRS New Shipment Just Received ORDER NOW Red, Navy, Brown, Green, Tan, Tangerine and Air-Blue CANADIAN THEATRE CHAIR CO, 277 Victoria St., Toronto, Ont. e