Boxoffice (Apr-Jun 1940)

Adheres io Schedule Despite the War New York — A reaffirmation of 20th Century-Fox’s production plans for the new season is made by Herman Wobber, general sales manager, who states the company will adhere to the schedule announced at the convention in spite of the growing paralysis of the foreign market. In a statement made to members of the company, Wobber said the executives are convinced more than ever that the future safety of the company lies in making itself domestically self-sufficient. Calling for greater sales effort, Wobber said these are “trying times” and emphasized the executives “are betting millions on the manpower of the company.” He cited three reasons why the company was going ahead on a production investment that will reach a record high. First, the company knows it has great story properties, most of them turned into scripts, and the ability of the studio to turn out the greatest array of showmanship pictures to come from any company in any season, he states. Second, the confidence it has in the distribution department to obtain the necessary financial return justifying this unprecedented studio effort and investment. Third, the belief exhibitors in the Americas are fully appreciative of their responsibility and will go along in a sincere determination to increase boxoffice receipts, and to give 20th-Fox its just share of receipts earned. Public Land Administration Probe Ordered by Senate Washington — Immediate investigation of the administration of the public lands by Secretary of the Interior Harold L. Ickes and his recently announced charges, running up to $500 a day, for the use of the public lands and national parks by motion picture producers, has been ordered by the senate. The fees for motion pictures, announced by the department last month, were the subject of severe criticism in the senate, and Senator Henry F. Ashurst of Arizona introduced a resolution for an investigation, not only of the fees, but of the department’s own motion picture production activities. In the consideration of the resolution it was found that Senator Pat McCarran of Nevada had previously introduced a measure calling for a probe of the administration of the public lands, to which the senate committee on public lands and surveys appended the Ashurst resolution as an amendment. The measure as passed by the senate provides no time within which the committee must complete its investigation and authorizes it to sit during recesses of Congress, giving it a fund of $10,000 for expenses. Kent Holds 10,000-Share Yearly Purchase Option at $18.24 New York — Sidney R. Kent, president of 20th Century-Fox, holds an option to purchase annually — and has held it since August 22, 1935 — 10,000 shares of the company’s common stock at $18.24 per share, but not less than $10 per share, it is revealed in his company’s report to the SEC covering the year ending December 31, 1939. The option is cumulative, so that stock not acquired within any one year subsequently may be taken up. There also are 40,000 shares of common reserved for issuance to officers of the company in part payment for services rendered as the board shall determine, at not less than $10 a share. William Goetz, with 178,342 shares of common, is the only executive listed as owning more than 10 per cent of any class of equity securities. Chase National Bank is down for 487,215 shares, or 52.67 per cent, of the preferred and 221,157 shares, or 12.70 per cent, of common; General Theatres Equipment, 185,600, or 10.65 per cent, common, and White, Weld & Co., 185.384, or 20.04 per cent, preferred. The report lists 26 subsidiaries, but notes there are two domestic wholly-owned that have been omitted “for which confidential treatment has been requested,” and that 23 foreign subsidiaries have been omitted, the disclosure of which “would be detrimental to the interests of the security holders.” During 1939, the company wrote off $400,000 of a $850,000 reserve fund set up for fluctuation in dollar value of assets in foreign countries. Among assets, the report lists investments totaling $1,640,342 and advances aggregating $2,097,415 to United American Investing Corp., 50 per cent owned, and Metropolis and Bradford Trust Co., Ltd., holding companies for Gaumont British Pictures Corp., Ltd., of Great Britain. Investments in property, such as land, buildings, leases, equipment, furniture and projects under construction totaled $22,280, 919 as of December 31, 1939. Depreciation of fixed assets is written off on a straight line method as follows: Furniture and fixtures in the home office, five to 20 per cent per annum; furniture and fixtures in exchanges, seven to 20 per cent; laboratory equipment, five to 10 per cent; home of ice and exchange buildings, 2.22 to five per cent, while studio properties range from five to 20 per cent, depending upon type of property, the report adds. The basis of amortization of inventories, the report discloses, is written off at the end of quarterly periods as follows: No. of Wlcs. All Domestic Since Date Negative Positive of Release Costs Costs 13 53 % 75% 26 75.5% 95% 39 88 % 100% 52 94.5% 65 100 % Salaries to all employes who received in excess of $20,000 shows that 130 were paid an aggregate of $6,635,802, while foreign salaries and expenses are reported at $3,388,803. The cost of traveling and convention expenses was $445,541, and legal, auditing and financial fees, $582,595. In the latter connection, the law firm of Dwight, Harris, Koegel and Caskey, general counsel, received $290,600. Remuneration for 1939 to the three highest officers, directors or employes shows that Darryl F. Zanuck received $255,000; Sonja Henie, $249,166, and John Ford, $235,000. The aggregate remuneration to 12 directors, who are unnamed, is $457,453. Salaries to six officers, also unnamed, who are not directors, totaled $396,490. Remuneration to others in excess of $20,000, other than officers, directors or employes lists the MPPDA as receiving $146,019 for “dues;” Ross Federal for checking percentage engagements, $305,685; Julian T. Abeles for legal fees, $36,455, and Karr & Springer for legal fees, $20,250. Exchange Employes Sign First Pact With Clark Philadelphia — William Z. Porter, president of Local B-7, Film Exchange Employes Union, announces signing of the first written contract with Clark Film Distributors, Inc. There previously was an oral agreement. Representing the corporation in negotiations were James P. Clark, president, and Oscar Neufeld, supervisor. Representing the union were Mollie Cohen, Jim Flynn, Ben Harris and Bill Porter. Classic Pictures Incorporates Albany — Classic Pictures, Inc., has been formed to conduct a motion picture films business in New York. Incorporators; Robert D. Bloom, 1950 Andrews Ave., Bronx; S. Harry Eilenberg, 24 18th Ave., Paterson, N. J.; Rhoda Egerman, 40 Monroe St. Attorneys: Delson, Levin & Gordon, 270 Broadway. Bert Lytell Elected to Helm of Actors Equity New York — Bert Lytell, who for many years was among the top notch stars on the old Metro’s roster and who for the past few years has devoted all his time to the stage, has been elected president of Actors Equity for three years. He succeeds Arthur Byron. Other officers include Walter Huston, vice-president; Florence Reed, second vicepresident; Augustin Duncan, third vicepresident; Peggy Wood, fourth vice-president; John Beal, recording secretary, and Paul Dullzell, treasurer. Death Takes J . McManus At 39 in Film Capital Hollywood — John L. McManus, at one time editor of Fox Movietonenews and later writing scripts for Floyd Gibbons, W. C. Fields and Bob Burns, is dead at the age of 39. 20-D BOXOFFICE :: June 1, 1940