Motion Picture Herald (Nov-Dec 1948)

•/oc* Schenck* Veteran Exhibitor-Producer* Discusses Status Qua by RED KANN in Hollywood "Exhibitors — I'm one myself — show no vision when they refuse to give the producer a greater proportion of the box office dollar. "They are failing to support producJHHHB tion on a basis which gives reasonable assurance of an uninterrupted flow of quality pictures. "The theatre man ought to be concerning himself less with terms and considerably more with the source of his s u p pi y. He has something to worry about as well as Joseph M. Schenck the operation in Hollywood. "It is not impossible that Hollywood will not have enough money returned here to continue making worthwhile box office product." This is Joseph M. Schenck talking on a two-way approach — as a production executive of 20th Century-Fox and one of Hollywood's "elder statesmen" whose views have been known to parallel those of his brother, Nicholas M. Schenck, president of Loew's. Inc., and as president and board chairman of United Artists Theatre Circuit, Inc., which is interested in far more theatres throughout the United States than is commonly realized. Must Be Found Elsewhere Mr. Schenck reflects much of the upper level thinking prevailing in Hollywood these days. Like others, he has no serious complaint about foreign business which, in the instance of his company, he declares to be 60 per cent of 20th Century-Fox's total income. Applied to operations, however, this income is largely unproductive because restrictions in blocked money make it impossible to convert it into dollars in New York. But in order to keep the production wheels whirling, dollars deposited to Hollywood's credit for this purpose have to be found elsewhere, he points out. This is why he is so emphatic in his statement the remaining 40 per cent returned from the domestic market is out of balance and why the American exhibitor must understand it is proper for him to share more of the burden. Mr. Schenck does not whitewash Hollywood, on the other hand. He is frank in acknowledging the studios were careless dur ing the period when the excess profits tax was on the books. "Expenditures became loose and out-of-hand. The condition, moreover, was not easy to correct. It took time, lots of persuasion and considerable education here in Hollywood. But I think that is behind us now. Insofar as this company is concerned, I know it is," he states. He is also frank in his approach to the widely-discussed problem of cutting production costs but finds it so complex and so difficult that it may prove impossible without invading quality standards. This is his analysis : "First, it has to be realized that a picture which cost $1,000,000 to make in 194243-44 costs $2,000,000 today. That's right. Just double. Departmental economies have been effected and some cuts have been introduced. But there always seems to be present uncontrollable factors which make this process difficult and sometimes impossible. Trying to Trim Scripts "Today we are analyzing scripts more carefully than ever before. We are trying to trim them because, when we do, shooting time which means money can be reduced. This method, however, is not always successful and, in many ways, is dangerous because of the toll on the end result — quality — which it may exact. "With an over-generous script, at least, we get the photographed film from which we. can eliminate. But where the script may be too thin before the film enters production, the results also may be so thin that the completed film becomes less well-rounded and, consequently, skimpy in values. It isn't easy, but we are trying." Without designating Allied by name, Mr. Schenck is caustic about that organization's New Orleans resolution attacking compulsory percentage selling. "The independent exhibitor's source of supply is threatened seriously as matters stand today," he observes. "Yet in the face of this, he concerns himself with efforts at reducing the return to the producer. The independent ought to be concerning himself with increasing that return as insurance to keep himself in business." Asks More Promotion Broadening his base to embrace all of exhibition, the 20th Century-Fox executive holds positive views on cooperative advertising, stressing his conviction that the theatre man is the one who should be advertising the merchandise he offers for sale. "The situation is badly out of hand," he feels. "Cooperative advertising skyrocketed during the war years until the point was reached DARRYL ZANUCK NO PROPHET OF DOOM Darryl F. Zanuck — though unhappily not without problems — is, however, not enrolled in any "prophet of doom" column. "We have eight pictures in work here and two abroad. This is the greatest volume of simultaneous production in all my experience and I do not exclude the years I was with Warner," declares 20th Century-Fox's vice-president in charge of production. The problems confronting him actually combine into just one — production costs. Mr. Zanuck places them at approximately 35 per cent greater than 1942 and, as a mitigating factor, finds current theatre business running at that year's level. "The problem, of course, is to reduce costs. Some reductions have been made, but not in proportion to the increases," he finds and agrees with Joseph M. Schenck that a solution may not be possible. However, Mr. Zanuck is very firm in the conviction that curtailing output is no answer. "We have to keep on making pictures or go out of business. We are going to keep on making them," he states. A flat, unequivocal statement: "When the year is ended, it will be this company alone which will show a profit from production and distribution operations. The others will not. I ascribe this to the fortunate fact 20th Century-Fox has enjoyed a large proportion of hits this ii year. when the distributor was carrying the burden. We are as culpable as the next one. Even today, 58 per cent of our first run rentals in Los Angeles (in wholly controlled Fox West Coast Theatres) is spent on advertising those runs. In Boston, it is 24 per cent." And on television : "I am not seriously worried over television. It may hurt us while in the novelty stage. What I am principally concerned over is the industry's ability to maintain the flow of important attractions under severely restricted foreign markets and in light of the American exhibitors' persistent resistance to a more equitable division of the domestic box office dollar." Edward Cullins Head Of New Allied Unit Edward Cullins of Memphis has been named president of the newly-formed Allied Independent Theatre Owners of the MidSouth. The group comprises some 75 exhibitors in the area. Elected to other executive posts were : John C. Mohrstadt of Hayti, Mo., vice-president, and Mrs. Clara M. Collier of Drew, Miss., as sceretarytreasurer. The following are on the board of directors : J. A. West, T. A. Ballas, David Flexer, Lyle Richmond, W. L. Landers and W. Emalin. Speaker at the organizational meeting was W. A. Prewitt, Jr., president of Gulf States Allied. 22 MOTION PICTURE HERALD, DECEMBER 25, 1948