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CONCENTRATION OF EfCONOMIC POWER 13 More important than the percontago of theaters owned is the seat- ing capaeity represented therein, estimated at about 25 percent of the total seating capacity in the United States. This situation is illus- trated by a tabulation of theaters and seating capacity in three large cities—Philadelphia, Chicago, and Milwaukee—and the State of Florida. Moreover, these seats in larger and better houses represent an even larger proportion of potential box-office returns, since admis- sion prices in these more important theaters are usually considerably higher than in other theaters, and they operate a greater number of hours per week than the smaller houses. Table 5.- -Control of exhibition facilities by a single major company in each of 4 ' localities, 1939 Philadelphia, Pa Warner Bros. Circuit Management Corporation Chicago, 111 Balaban & Katz Corporation ' Milwaukee, Wis , . _ _ Fox Wisconsin circuit .-_ State of Florida Paramount Pictures, Inc.' Theaters > Num- ber 203 58 309 38 66 15 214 ■ 68 Percent of total 100.0 28.6 100.0 12.3 100.0 22.7 100.0 31.8 Seats Num- ber 203, 616 85,019 328, 379 84,919 72,186 18, 550 122, 172 54, 534 Percent of total 100.0 41.8 100.0 25.9 100.0 25.7 100.0 44.6 Average number of seats per theater 1,003 1,466 1,063 2,235 1,094 1,237 571 802 ' Those theaters are excluded which were closed or for which seating capacity was not given. 2 Balaban & Katz Corporation is 97 percent controlled by Paramount Pictures, Inc. 3 Includes only theaters operated by E. J. Sparks and S. A. Lynch. Paramount operates approximately 40 additional theaters in Florida. Source: Compiled from data in the 1940 Film Daily Yearbook. Thus integration in the motion picture industry is complete, from the inception of an idea for a picture through to the actual exliibition of the film. The importance of the integration of production, dis- tribution, and exhibition lies in the accomplishment, not of more closely knit operation but of virtual elimination of competition. In the production field, competition between the major companies has been minimized since 1930 by the device of loaning talent. The major producers have preferred to loan and exchange the highest priced technical and artistic talent which they may have under exciu.sive contract to and with each other on standardized terms rather than drive the price of such talent higher by competing for the privilege of placing it under contract in the first instance.2' These same privileges have not been accorded independent pro- ducers. Even where such talent has been made available to independent producers, the terms have frequently been discriminatory as compared to the terms upon which it has been made available to major producers.22 21 Ibid. « Ibid.