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a very real connection, through certain of its subsidiaries, with the production and distribution of sound-recording and reproducing equipment, although clearly its major interest as a public utility lies in the field of services related to communication.
Roughly speaking, the industry may be divided into the three major aspects of production, distribution, and exhibition.1 Production may be said to cover all the steps up to and including the completion of the requisite number of positive prints. Distribution activities relate to the rental of films to exhibitors, the "dating in" of the pictures, the physical distribution of the films, and the collection of the amounts due. Exhibition obviously relates to the problem of securing films and to the various other problems of theater management.
According to the United States Bureau of the Census (Census of Distribution) , there were in 1929 approximately 142 motion picture establishments in the United States as compared with 127 in 1921 and 132 in 1925. There were 40.84% of these establishments, producing 70.28% of the total output, located in California; 21.12% of all plants, producing 23.83% of the total production, were located in New York State. These 142 establishments produced films "valued, on a production cost basis, at $184,102,419. These producing establishments, commonly known as studios, carried on their pay rolls 19,639 people, of whom 37 were proprietors and firm members, 8,818 were salaried officers and employees (including actors) on the pay rolls on or about December 14, 1929, and 10,784 was the average number of wage earners for the year. Of the total pay roll for the year, the salaried officers and employees received $60,167,520, and the wage earners received $24,860,092. Thus, salaries constituted 32.68% of the total cost, the lar
1 It should be borne in mind that the present discussion is not designed to bring out the problems involved in these various aspects of the industry, but rather to provide a background for those not familiar with it; the particular problems will be discussed elsewhere in this volume.