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While the picture houses were struggling to maintain their audiences, things were not going terribly well on the production side of the business either. The previous November unions representing the craft trades—painters, carpenters, electricians, and the like—had secured something called the Studio Basic Agreement, which granted them important and costly concessions. The studios were now terrified of being squeezed similarly by actors and writers. With this in mind, thirty-six people from the creative side of the industry met for dinner at the Ambassador Hotel in Los Angeles in January 1927 and formed a kind of executive club to promote—but even more to protect—the studios. It was a reflection of their own sense of self-importance that they called it the International Academy of Motion Picture Arts and Sciences, elevating the movies from popular entertainment to something more grandly artistic, scientific, and literally academic. In the second week of May, while the world fretted over the missing airmen Nungesser and Coli, the academy was formally inaugurated at a banquet at the Biltmore Hotel in Los Angeles. (The idea of having an awards ceremony was something of an afterthought, and wasn’t introduced until the academy’s second anniversary dinner in 1929.)
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