Sodom and Gomorrah : the story of Hollywood (1935)

212 SODOM AND GOMORRAH lumbia have passed into an insolvent state if not actual bankruptcy as have Paramount, Fox, and R. K. O. The large film companies, unlike the railroads, cannot blame the deplorable condition of their finances onto unfair competition, as in the amusement world they constitute almost a monopoly. It is a well-known fact that the cinema has driven into financial inconsequence the legitimate stage and stock companies. Moreover, the eight large film companies, of which all but about three (counting United Artists as a major producer) arc bankrupt, are practically a world monopoly in their own line. The independent producers, as well as foreign producers, offer very little competition. Yet despite all these auspicious circumstances, the stockholders in film companies have just so much worthless paper on their hands — even Loew's Incorporated is paying only $1.00 a share. True, the executives of the various producing outfits have nothing to complain of. Even with their companies in receivership because they are unable to fulfill their obligations, and although their companies7 shares may have fallen to nothing or next to it, they continue to draw salaries and bonuses which in size put to shame those enjoyed by the nations largest bankers, who, due to the colossal — a favorite movie adjective — blunder of the "brains" of filmdom, have come