The motion picture industry (1933)

420 ^> ^> ^ The Motion Picture Industry A study of recent developments in the European industry indicated that an amalgamation of interests would be more likely to take the form of an increased number of corporate combinations embracing activities in two or more countries. German producers, aware of the necessity for a wider market for their relatively large output of feature films, had endeavored by means of interstate agreements to create export markets in Austria, Hungary, Czechoslovakia, and Italy. At least 10 such agreements were made in 1928. French producers, in a less degree, had also turned to such agreements as an outlet for their product. Two agreements of this sort were reported in 1928: Cineromans (French) with British International, and with Terra (German) ; and Franco-Film (French) with Gainsborough (British) and Deutsches Lichtspiel Syndicat (German).20 Such interstate agreements were considered by the association to be only temporary in character, because in most cases they tended to favor the company in the stronger position at the time. Generally lacking in any tie-up of exhibition outlets, at the most they provided merely assurance of distribution and control of credit. Because of failure on the part of the stronger interests to live up to the general terms of the arrangement, however, many agreements had not been extended beyond the initial agreement. Uncertainty concerning the future legislative restrictions in France would hinder, as it had done in the past, the activities of American motion picture companies. Under existing conditions there was little incentive to promote subsidiary producing facilities, distributing contracts, or exhibition houses with American capital. Losses through the suspension of business during negotiations on quota restrictions were unfortunate, not only for the welfare of American companies, but also from the standpoint of the French exhibitor. Of interest in this connection were the proceedings at 20 Ibid.