stamped on the front of it. (mace neufeld) you have to have the kind of resources that a paramount has, or a warners, or a universal to weather a period of what could be big losing films. and with a consolidation of power with the major studios i think it's inevitable that the studios will begin to put more people under contract so that they're in a better competitive position. that they don't have to bid on the open market. in looking back on it now, we had it good in those days, because now it really is a rat race. and i'm glad i'm not connected with it. the new system demands success. it rewards it, but it also punishes failure. that's the answer. that's the sound byte.

one pillar of the system. (douglas gomery) he had them set up an independent company and then pay the company, rather than the star. hence, it would be taxed at approximately half the rate. (narrator) with major company movies going to company cinemas first, independent theatres weren't able to compete. they could only show films after they were played out and forced by the studios to book their entire output, good or bad. although the majors controlled only 16% of the cinemas, they were winning 90 percent of the total cinema box office. (narrator) in the mid-30's, the national recovery act was declared unconstitutional but it took until 1948 for the supreme court to finally put its nail in the system's coffin. it ordered the majors to sell their cinemas and function as distribution and production companies only.