WELLINGTON NEWS

Hokitika Guardian, 25 July 1930, Page 7

WELLINGTON NEWS

TALKIES, PROFIT, CAPITAL. (Special Correspondent.! WELLINGTON, July 24. The film industry is an outstanding exception, ifor it appears to be the only industry that has not been affected by the prevailing depression, in (fact notwithstanding the strained economic conditions of the world, the industry rs making progress. The United States is the home of the film industry, and the ig slump in share values on tlie New York Stock Exchange has not affected amusement shares. The industry in its present form is comparatively new and expansion is still under way. Unlike other industries it has not as yet reached the point of saturation. Figures recently compiled show that their are at present 22,000 motion picture theatres in America, with an average daily attendance for all of 17,000,030 people. Weekly attendances is now averaging over 115,000,000, of equal nearly to the entire population of the United States. Wall Street bankers acting for the film industry point out that to-day a .single film may cost as much as a million dollars (£200,000) and the average full length picture any where from 100,000 dollars (£2o t “ 030) to 600,000 dollars (£120,000). The film exchanges are HOW handling 28,000 miles of entertainment film daily, and the capital invested in the industry the staggering total of 2,600,000,000 dollars (£520,000,000). Regular employment is being given to 235,-. 000 people, 110,000 in the theatres, 75,000 in production, 23,000 in distriution and 30,000 in other capacities. The annual pay roll is n0w.£470,000,000 dollars. For years films were run by so-called independents. Only a few. years ago groups began to buy up control of theatres and built new ones. To-day several of these large groups jeover every phase of the industry from beginning to end. The Paramount-Fam-ous-Lasky Corporation is producer and exhibitor of . movies and now operates li w theatres in the United States and other countries. Warner Bros and Allied corporations 350 theatres, Fox 600, Universal Picture Company 250, and several other large operators. Before the end of 1929, 4000 important movie theatres in the United' States had te'n wired for sound pictures. This was only 20 per cent of the total, but took in 80 per cent of the total box office receipts of the industry, amounting to 803,030,000 dollars (£160,003,000). Predictions are being made to-day that before the end of 1931 all but the smallest movie houses in America will be equipped for the talkies. So 'far the industry has been largely American, 85 per cent of all pictures being produced in that country. Last year exports of films amounted to 282,109,480 lineal foot. This was art increase of 27 per cent over 1928. Income from abroad, including that from foreign theatres, owned or controlled, amounted last year to 30 per cent''fit total gross revenue of the large groups. Recently a movement has been started by the large groups to produce pictures? abroad. As New Zealand wants more revenue it seems quite reasonable to impose additional taxation on foreign films; .such an impost would hit the American producer severely, but the Americans are not entitled to any sympathy, for they have shown none for us in their latest protection tariff. SHIPPING DEPRESSION. , At the opening of the Baltic and International Maritime Conference it was stated by the President, Mr W. A. Souter, that it was probably not a coincidence that conditions after the Frnnco-Prussian War and the Great War had developed in .much the same way, and that 12 yeans after these wars the shipping industry should be fighting for its life. The present depression, lie thought, was certainly not due to the Great War. The post-war feeling of Nationalism had pronounced economic effect, as each country desired to be as independent as possible, with the result that there was to-day oyer production on the one hand and unemployment on the other. Trade could only be carried on by the exchange of goods, and it would seem that the process of exchange had, to some extent, broken down. He pointed out that no laying-up scheme could attain the magnitude of tonnage laid up now voluntarily and by force of circumstances. There were now laid up more than 800 vessels, representing 4,500,000 tons dead weight. As soon as there was the slightest rise in the freight market the tonnage was there waiting to come out and depress the market again.