Boxoffice (Jul-Sep 1947)

U.S.-BRITISH LOAN TALKS EYED FOR SIGNS OF FILM TAX REPEAL MPA Anticipates Meeting With Loan Delegation From Great Britain BULLETIN Washington — Sir Wilfred Eady, head of the British delegation here for the loan talks, has agreed to confer with Eric Johnston on the film tax sometime Saturday. The MPA president flew in Friday from Spokane. Eady said he had no authority to negotiate alternative arrangements but did have the authority to report back to his government any proposals the U.S. film industry cares to make. NEW YORK — The film industry turned to Washington loan talks between Brit/sh and U.S. officials during the week for some indication of whether Secretary of the Treasury Snyder would exert pressure to have England call off the 75 per cent film import tax. An attitude of watchful waiting prevailed at the MPA. The British loan delegation, headed by Sir Wilfred Eady, assistant chancellor of the exchequer, promised to meet Joyce O’Hara, special assistant to Eric Johnston, at MPA Washington headquarters to discuss the import levy. Eady announced he would contact the MPA when he arrived from London. WANT GOVERNMENT ACTION Up to midweek O’Hara had not heard from the English officials. Johnston remained in Spokane pending word that the British were ready to “talk business.” O’Hara said the MPA had only one plan in mind — to ask the British to repeal the tax. Meantime the proposed meeting of the Anglo-American joint advisory committee to outline an alternative to the drastic 75 per cent tax was still hanging fire. General industry opinion here was that the State department should act on the British tax. The State department considers the tax a technical violation of the BritishAmerican reciprocal trade agreement. Secretary of State Marshall has been told that the American film industry considers the tax a violation of two trade agreements and the loan agreement. The Screen Writers Guild endorsed the SIMPP move to get State department aid, as did the Plasterers Local 755, AFL. LOAN PRETTY WELL THROUGH During the week the British loan delegation outlined the reasons for Britain’s dollar shortage and conferred ^ith London by telephone on the progress of the loan talks. Secretary Snyder wanted an accounting of how England intends to help herself before the terms of the loan are revised to permit Britain to increase imports from her dominions. Snyder has gone on record as saying that the loan can’t be modified without congressional approval. England has run through all but $850,000,000 of the original $3,750,000,000 fiveyear credit extended by the U.S. in 1946. Rank Has Film Fare To Last 18 Months London — J. Arthur Rank will be able to supply sufficient film fare for his Odeon and Gaumont British circuits and overseas theatres by February 1949. The British producer set this 18-month schedule on the strength of his new program for speeding up production at the studios and cutting out lavish-budget productions wherever possible. Rank did not say when British production will be able to meet the needs of all home theatres — circuit and independent. He will soon start producing a series of 20 low-budget films. If Rank meets this 18-month production schedule, there stUl will be a 12month period in which all British theatres will feel the effect of the American ban on film shipments. U.S. product normally takes up 80 per cent of British playing time. Even this balance is reported to be committed for essential purchases. The possibOity of a new loan was outlawed by both sides at the start of the talks. This would have to be approved by Congress. Talk of economy measures in Hollywood proved contagious. From Great Britain early in the week came the report that J. Arthur Rank has notified his producers that the purse strings will be tightened on future big-budget productions. The report further stated that he has set a $1,000,000 budget limit for future films — for the time being. Rank wants to speed up shooting schedules and insure a substantial backlog. His theatre holdings will be affected if the U.S. ban on film shipments to England continues into 1948. This economy program was outlined some time ago. It will become effective September 1, when Rank studio personnel returns from a mass two-week vacation. AN ATA ENDORSEMENT Robert W. Coyne, ATA executive director, added another hopeful note to the situation. He said officers of the organization feel the heavy duty may be called off soon. He said the ATA endorses the ban on film shipments. Coyne warned the British tax will cause hardships throughout the U.S. film industry. He predicted the quality of British films might deteriorate if the British industry is forced to carry the burden of supplying home screens with sufficient product. One sidelight on the tax issue is the reported halt of MGM production in England until next spring. The tax was not given as the official reason. Ben Goetz, MGM production head in Great Britain, said several stars have other commitments and will be unable to leave for England until then. Monogram already has called off production of “The Maze” there because of the “confiscatory British tax.” Another film leader stepped into the tax fray while the loan talks got under way in Washington. Sidney Bernstein, who has been on the coast for the past few months setting up Transatlantic Pictures Corp., has been “recalled” to England for talks on the tax situation. He flew to London Tuesday. U.S. Film Industry Seeks State Department Help In Tax Situation Bernstein helped formulate the unfreezing plan for blocked U.S. film revenue in England in 1942. He is head of the Granada circuit. He expects to return here in a few weeks. J. Cheever Cowdin, chairman of the board of U-I, continued his talks with J. Arthur Rank in London. The Screen Office & Professional Employes Guild, Local No. 109, New York, saw a silver lining. The xmion pointed out the full effect of the British tax and the export ban will not be felt for six months. SOPEG also argued that despite the tax, industry profits are high, and the companies can afford to grant a weekly wage increase of $10 or 30 per cent to 2,500 New York office workers. SIMPP Lodges Protest On English Action WASHINGTON — Militant opposition to the British 75 per cent film import tax has been voiced here this week to high government officials by a delegation from the SIMPP. Gunther R. Lessing, chairman of the British tax committee of SIMPP along with Milton Kramer, James A. Mulvey and Marvin L. Farris, visited Secretary of Treasury Snyder, William Martin, president of the Import-Export Bank, Undersecretary of State Lovett, and David Bruce, acting secretary of commerce, all of whom are members of the national advisory council on international monetary and financial problems. The delegation from SIMPP told the government officials that the tax is highly discriminatory, singling out only an American industry, that it would drive independents to bankruptcy soon if kept up, that it will cause cutbacks in production, and create unemployment. In their talks with Snyder they asked for a Treasury department ruling that the tax violates existing trade and financial agreements. Snyder was also asked to appoint a subcommittee of the NACIMFP to handle the industry problem of the British tax and that Donald Nelson and Eric Johnston should be appointed as joint advisers. The SIMPP delegation contended that they as independents are small business men and are the least able to stand the blow. They said that the tax has already had a serious effect on their bank credits. They added that they did not have vast resources to tide them over. TELEGRAMS TO MARSHALL Diverging from parallel opposition with that the MPA, the SIMPP registered its opposition also to the proposed freeze, as a solution. Bruce and Martin seemed very much interested in the stand and reasons for it, taken by the SIMPP, and Bruce asserted that he would bring up the subject at a meeting Thursday of the advisory council. Meanwhile, Secretary of State Marshall received telegrams from labor union officials joining in the fight and expressing opposition to the tax. Herbert Aller of the International Photographers Local 619, wired Marshall that the British levy amounted to a general tax on American technicians. He demanded 8 BOXOFFICE :: August 23, 1947