OTHER AMERICAN REPUBLICS REQUIREMENTS (a) Minimum effective length of exhibitions, 1 hour; one reel duration is 10 minutes; therefore, 6 reels required for 1 hour program. (b) Programs change weekly; therefore, 52 weeks X6 (reels) = 312 reels (estimated 188 subjects) for the other American republics. UNITED STATES NEEDS There is increasing demand for knowledge about the other American republics in the United States. The existing films have been shown with enthusiastic response. Not less than 20 reels should be produced for United States audiences (estimated 12 subjects). The financial increase over 1945 is required to complete the necessary number of reels for the maintenance of the program. Of the 269 reels of original production completed during 1945, 267 reels were financed from previous years' funds as indicated in the table on the preceding page. The funds committed in 1945 actually covered the cost of 177 reels, whereas 332 reels are considered to be the minimum required to carry on operations. Of the 441 reels released during 1945, 79 reels were professional, medical or dental subjects which could not be used for general release, their exhibition being limited to professional and educational groups. Prints, reels and containers Estimated obligations: 1945, $429,000; 1946, $445,000 In order that effective distribution of our nontheatrical pictures may be made, it is essential that a sufficient number of prints, reels, and containers be made available. The number of prints required for the 1946 fiscal year is based upon the amount of production and the number of projectors in operation for that year. Mr. ALSTOCH. We did that for two reasons: (1) Because funds for direct production were limited, and (2) because we wanted to complete the direct production contracted for in previous years. It requires from 6 months to a year to adapt and produce a first-rate picture. Now, because of this completion of the large number of reels which were in process at the close of last fiscal year, it will be necessary for us to enter into increased direct production for the next year in order to have sufficient number of reels for exhibition. We have found from our experience that a 1-hour program is necessary to hold the attention and interest of the audience, and we are trying to supply Latin-American countries with this length of program. Mr. CANNON. And your experience justifies it? Mr. ALSTOCK. Yes, sir. Mr. CANNON. The additional activities? Mr. ALSTOCK. These are not additional activities in the sense of increasing the motion-picture program, but additional production in 1946 will be necessary in order to maintain the present level of length and number of showings. As I indicated a minute ago, there will be a minimum of unfinished pictures at the close of the 1945 fiscal year, and the production planned for 1946 is to enable continuance of the program, not an increase in it. MOTION PICTURE SOCIETY FOR THE AMERICAS Mr. CANNON. What is the Motion Picture Society for the Americas, what is the connection there? Mr. ALSTOCK. I offer the following justification for the record: Estimated obligations: 1945. 1946. Motion Picture Society for the Americas $13, 500 25, 000 This program provides for an extension of the contract with the Motion Picture Society for the Americas for the last 6 months of the 1946 fiscal year. The annual expenditures total $50,000. This organization was created by the motionpicture industry in 1940 at the suggestion of this office to enlist the cooperation of producers and distributors in the inter-American motion-picture program. The society maintains liaison with the industry in Hollywood in order that an increasing number of films concerning the American republics, or of particular significance to the other Americas, will be produced. The organization provides information for producers, counseling and advising on inter-American problems. voluntary review service has been instituted by the society. Largely through the work of this organization an increasing number of commercial feature films with theme, background, sequence, dialog, music, and/or talent relating to the other American republics have been produced. Mr. ALSTOCK. In order to tie the United States motion-picture industry very closely into our operations we asked the industry to set up in Hollywood a society made up of the heads of the motion-picture companies and other interested individuals. Mr. CANNON. That is in the production end? Mr. ALSTOCK. Yes. The theatrical end. I think as a result of this work we have encouraged the industry to spend well over $100,000,000 on films suitable for Latin-American distribution, which in turn is increasing the attendance in the other Americas. It has increased already from 13,000,000 people monthly at the time our activities began, up to around 25,000,000 people. This increase has caused United States companies to become interested in Latin America, and as a result of this development we look forward to an expansion of the number of people working in the industry in South America. You might be interested to note there are some 25,000 people working in the theatrical industry in Hollywood and that something like 5,000 of them today are studying Spanish. Mr. CANNON. What is your connection with this society? Mr. CANNON. It is financially supported entirely through you? Mr. ALSTOCK. The financial support we give is chiefly for clerical expenses. We supply the funds necessary to provide office space and 72467-45- -33 expenses incident to the operation of the office. The industry cooperates in activities such as the entertainment of visitors from the other American Republics. DECREASE IN PRODUCTION OF REELS DURING 1946 (See p. 509) Mr. WIGGLESWORTH. Do you have under way plans for production during the fiscal year 1946 more than you have heretofore? Mr. ALSTOCK. In 1946 we will complete about 332 reels altogether. Mr. WIGGLESWORTH. How many are you producing now? Mr. ALSTOCK. In 1945 we will complete about 440 reels, although only about 150 of these were contracted for in 1945. The balance were in process and unfinished at the end of the 1944 fiscal year. Mr. HISLE. Next year we plan to complete 322 reels, including 52 news reels, 200 adaptations, and 45 original productions. We will have a carry-over into 1946 of 35 reels, making a total of 222. Mr. WIGGLESWORTH. The adaptations were prepared by somebody else? Mr. ALSTOCK. Yes. NEWS REELS Mr. WIGGLESWORTH. Why not have all the news reels prepared by someone outside? Mr. ALSTOCK. The news reels are produced by the five domestic producers and we aid in the preparation of the versions going to the other Americas. I offer for the record the following justification: Estimated obligations: 1945___ 1946. News reels $63, 000 60, 500 Due to the speed and flexibility of production, news reels are one of the most effective instruments for the quick dissemination of news in visible form. Inasmuch as we are planning a reduction in the 1946 program of documentary war pictures the news reel assumes a more outstanding role. This is particularly true now that United States soldiers are active on all war fronts. There are five United States news reels released weekly in the other American republics. They circulate to virtually all of the 6,450 sound motion-picture theaters in Latin America and are viewed by approximately 16,000,000 persons weekly. Inasmuch as the revenue involved as a result of newsreel distribution in the other Americas is relatively small and is not considered profitable by the newsreel companies, the Motion Picture Division helps make it financially possible for the newsreel companies to include many sequences of particular significance to the inter-American program which would otherwise not be included. A system of pooling newsreel materials is participated in by the five newsreel companies and the Office of Inter-American Affairs in order that cameramen in cities of the other republics may be maintained, thus assuring a continuous source of newsreel coverage on the other Americas. (1) Special stories by major newsreel companies to be inserted in the (3) Free-lance coverage, provides funds for the production of and/or pur- $23,000 15,000 10, 000 (4) 10 special reels for United States theater audiences. These subjects will bring to United States audiences a complete Latin American newsreel and will be shown in the newsreel theaters located in the large cities; 10 reels, at $750.. (5) Miscellaneous, for expenses contemplated in connection with the coverage of particular interest to Latin-American audiences with reference to their expeditionary forces, at the present time Brazil and Mexico____ $7,500 5, 000 60, 500 Mr. WIGGLESWORTH. Why are you in the production business at all; why not get them all from private producers? Mr. ALSTOCK. This type of picture, Mr. Wigglesworth, is pioneering. For example, the industry is not geared to make documentary pictures. Our policy will be for them to do so as soon as they are able. Mr. WIGGLESWORTH. I assume they would be glad to make the reels if you called upon them, would they not? Mr. ALSTOCK. They will not do it at the present time. I think later on they may be interested in doing so. Mr. WIGGLESWORTH. What are the Museum of Modern Art and Hemisphere Films? Mr. HARRISON. I think I can answer that question because I was concerned with the establishment of the Hemisphere Film Corporation. This corporation was an attempt to see if we could induce private enterprise to take over the nontheatrical film program. was a non-Governmental nonprofit educational corporation, founded under the laws of the State of New York. It Mr. CANNON. Are there any Federal funds going into either of those set-ups? COST CONTRACTS FOR FILM ADAPTATION Mr. HARRISON. The Museum of Modern Art, has done most of the work on adaptation in our program, that is, putting into Spanish or Portuguese the sound tracks on the films, all of which is done on a cost basis. In addition it has had one or two production con tracts Mr. WIGGLESWORTH. Have you put any Federal funds into it? Mr. WIGGLESWORTH. Yes. Mr. HISLE. Only in the sense of contracting for film adaptations and productions, as we would with any other contractor. Mr. WIGGLESWORTH. Will you put a brief statement in the record at this point showing the amount of funds, if any, that you have paid into either of these organizations? Mr. HARRISON. Yes. (The information requested follows:) No payments have been made or are contemplated to be made by the Office of Inter-American Affairs to the Hemisphere Films Corporation. Reimbursements made by the Office of Inter-American Affairs to the Museum of Modern Art, for work performed by that organization principally under the terms of cost contracts, which involve no profit to the Museum, are $1,126,640 for the period Dec. 1, 1940 to April 30, 1945. Some of the earlier contracts pertained to cultural activities. However, about 90 percent of the payments made to date pertain to motion-picture activities. Mr. WIGGLESWORTH. It has been represented, as you know, in some letters that we exchanged, that this was set up for the purpose of purchasing films with Federal funds which in many instances were simply junked after they had been obtained. Are there any funds in that project for that purpose? Mr. HARRISON. Not for that purpose, of course. I think you will find in any new program as big as this that there will be a certain amount of films that are unsatisfactory. But I have made it a point to look at each one of these films, so far as I could, and I know that although there are a few that are poor, the bulk of them are really remarkable. Mr. WIGGLESWORTH. Does it acquire title to the pictures? Mr. ALSTOCK. I think I can answer that. The Government owns or .controls complete right and title to all of the pictures. The Museum merely acts as a service organization. And in further answer to the question there has been less than a $10,000 a year loss in films, which is a rather remarkably low figure compared with the rates which are suffered by theaters in general. It is something like one-tenth of 1 percent. DISTRIBUTION OF FILMS IN UNITED STATES Mr. CASE. What proportion of this $1,706,120 for the motion picture division will be used for acquainting people of the United States with the economy and conditions in Latin American countries, and what proportion of it to acquaint them with conditions here? Mr. ALSTOCK. Out of the 332 reels, 20 reels-that is about 12 pictures--will be used to acquaint the people of the United States with conditions in Latin America. We will probably receive from the governments of Latin American countries a number of pictures that can be used here to acquaint our people with conditions in those countries. They will be distributed in this country with no charge to the Government. Mr. CASE. What about the projectors that are for use in the United States, and what proportion does that represent? Mr. ALSTOCK. Practically all of the projectors are in use in the other Americas. I believe about 14 will be loaned to the interAmerican centers, but they will be subject to call at any time they are needed in the other Americas. Mr. CASE. Do you distribute these films through schools, or how is it done? Mr. ALSTOCK. In this country they are distributed through the standard outlets. There are about 120 recognized centers through which the films have outlets, reaching schools, colleges, churches, professional societies, and grange organizations. We are now reaching a monthly audience of some 4,000,000 people in the United States. Mr. CANNON. Why do you use the 16-millimeter films? Sometime ago I was given a very wonderful film, 16-millimeter. I thought I had a fine film, but I discovered that everybody else had projectors for 8- and 35- millimeter films. Mr. ALSTOCK. That is right. Mr. CANNON. I have never yet been able to find in my section of the country a 16-millimeter projector. Mr. ALSTOCK. Sixteen-millimeter films were just beginning to come in before the war started. There is a great field for them in the future. They are noninflammable and can be sent through the mails. They |