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318 ^> ^> ^> The Motion Picture Industry
fought a long battle, particularly in Chicago, against the demands of the labor forces who were insisting upon a general use of two union operators for each booth and resisting reduction in the wages of operators. The association, at least in Chicago, won a distinct victory, a victory which it is claimed by W. A. Steffes should save the theater owners in Chicago $1,500,000. Just how much this victory cost Allied States in terms of money is not clear, but it must have been a very substantial amount.
Another heavy expense to which Allied States was put was the loss alleged to have been incurred in connection with Allied's newsreel. Actually this newsreel consisted of nine issues. The idea was that a very large number of Allied members would agree to take the newsreel under conditions which practically gave them the service gratis, the cost of the reel being covered by the contributions made by various advertisers who supported it. This sponsored newsreel, however, did not gain popularity. Various possible explanations suggest themselves. The general reaction against any form of sponsored advertising doubtless was a considerable factor. The large number of commercial newsreels in the field gave to the exhibitor substantial choice and under competitive conditions which insured him a very reasonable expenditure for this item. Whatever the reasons, the net result appears to be definite. Allied's newsreel was not a success, and it has been estimated that it entailed a loss of over $100,000 to the treasury of the association.8
Both the Motion Picture Theater Owners Association and Allied States have also been subjected to considerable criticism on the ground that the state associations have suffered at the hands of legislatures defeat after defeat which the
8 According to Abram F. Myers {The Film Daily Year Book 1932, p. 532), the project "was abandoned, (a) because certain producers who had first brought advertising to the screen, abandoned the practice and made it unnecessary for the independent theater owners to engage in the practice as a measure of self-defense; and (b) because insufficient advertising of a kind which the leaders of Allied deemed appropriate for the screen was available to support the enterprise."