Independent Exhibitors Film Bulletin (Sep 1935 - Aug 1936)

%depetidcnt EXHIBITORS FltM BULLETIN THE INDUSTRY'S NEWS 3>Jw/rL Che fcdihfiial, l/isuvpoint KENNEDY SLAMS PAR. SPENDING Asks 'Unhampered' Production . . . Joseph P. Kennedy finally had his way about making public the contents of his report on Paramount Pictures. Last Thursday, quite unexpectedly, The Wall Street Journal, published the report. "The showing makes inevitable the conclusion that Paramount's management which took over the affairs of the reorganized company less than a year ago has never succeeded in getting started during the period when other companies have made ample profits," the former SEC chief stated in the blast. "The fact is that Paramount's problem must be solved outside of New York. It must be solved in 'production' unhampered by New York. That is where the overcosts arise — that is whence 'big money' pictures must come. Other companies derive profits consistently from production and therefore the task is not insuperable, even if the trick is not easy." Hits Executive Salaries . . . From many different angles the scholarly-looking financial wizard fires away at alleged malpractices in the Hollywood studios. ". . . Salaries of actors, directors and cameramen constitute 40% of production cost. Studio overhead is the next largest item, averaging 20% to 35% of production expense. Cost of distribution is relatively small and offers little chance of savings. . . ." ". . . When every allowance for agents is made, it still remains true that 19c out of every $1.00 of expense now goes to executives for salaries — to people not directly engaged in the actual work of production and distribution, a factor which brings studio overhead to an actual 35% -45% instead of the theoretical 3 5% claimed . . ." ". . . It is doubtful if executives can justify their salaries, but it is certain that the salaries paid to actors are paid to compensate for peculiar talents which cannot be recruited at will or pleasure n ". . . As long as there is intense and uncontrollable competition among the executives of various companies for the services of the 'artists' of the industry, so long will all talk of lower salary scales remain mere pious gestures . . ." Recommends 'Picture Man' for President . . . Evidently having Adolph Zukor in mind, Kennedy stated "I recommend that you elect for President, succeeding its present incumbent, a man of outstanding reputation from the industry — 'a picture man'." Zukor refused the post, content to assume dictatorial control of production, placing his friend, Barney Balaban, theatreman, in the president's chair. With that set-up, Paramount now looks forward to eradicating the faults of the Otterson regime, which brought the company to the brink of disaster. TERMS HIGH — SELLING SLOW Percentage Increases . . . From many sections of the country pour in reports that exhibitors are playing a wait-and-see game of film buying this season. The reason: Increased rental terms by the producers. RKO, winner of last season's booby prize for product which was sold at terms on which few, if any, theatres showed a profit, is at it again this year. No cuts are being offered; rather, increases are being asked and the outfit is getting the merry ha-ha from most exhibitors. Paramount, admittedly a flop last season, offers fresh promises this year and asks theatre owners to gamble on it at higher prices than they paid for its miserable '3 5-'36 stuff. Metro, leader of the field today, has upped its percentage demands, asking 40% for a group of specials that formerly went for 3 5%. The 5% difference is giving them no end of trouble, raising a storm of protest from theatremen that may result in costing the company more than it could possibly make on the increased demands. N. E. Allied Protests . . . A recently issued bulletin from the Independent Exhibitors of New England, Allied unit, has this to say about Leo's terms: "The consensus of opinion of the owners of over one hundred theatres represented at a meeting of the organization was that the Metro sales policy is an unreasonable demand on the exhibitor's ability to pay for product and that those forced to purchase it at the terms offered will commit business suicide." Querying its members on when they arc going to "stop being suckers," the bulletin continues with this: "Let's look ahead! If Metro gets away with it, what will Fox, Warners and the rest of the majors do? Already they are pointing to Metro and saying, 'Our pictures are just as good as theirs, so why shouldn't we get 4 at 40' % and so forth and so on'." Issued weekly at 13 23 Vine Street, Philadelphia, Pa. Phone: Rittcnhousc 7424. Mo Wax, Publisher and Editor; Roland Barton, George Frees Nonamaker, Associate Editors. New York Office: 16S8 Broadway; phone: Circle 7-3094.