The Film Daily (1948)

cWFEl? Tuesday, January 20, 19483 Third Quarter Company Net Sales Stay High $120,248,000 Reported by Six Companies Is Drop of Only $1,394,000 from '46 Washington Bureau of THE FILM DAILY Washington — Net sales of six motion picture companies for the third quarter of 1947 amounted to $120,248,000, the SEC reported over the weekend. This was only a slight drop from the $121,642,000 registered in the same period in 1946. Although 1947 totals were close to the record-breaking sales in 1946, Government fiscal experts cautiously raised a danger signal. Experts point out that up to the latter part of last year, sales generally have risen for several years. Costs, however, are still increasing. Thus, even if sales continue at their present pace, profits will continue to plunge. If sales drop off and prices continue high tough times are definitely ahead. Net sales, which include operating revenues, were listed by the SEC for six pix companies — Columbia, Loew's, Monogram, Republic, 20thFox and Universal. Net Sales by Companies The lineup is as follows: Columbia — $6,475,000 for the third quarter of 1947. compared with $5,574,000 for the same period in 1946 and $9,080,000 for the second calendar quarter of 1947. Loew's. Inc. — $42,750,000 for the third quarter of 1947, compared with $45,600,000 for the same period in 1946 and $43,371,000 for the second quarter of 1947. Monogram — $2,176,000 for the third quarter of 1947, compared with $1,770,000 for the same period in 1946 and $2,241,000 for the second quarter of 1947. Republic — $7,524,000 for the third quarter of 1947, compared with $6,370,000 for the same period in 1946 and $7,569,000 for the second quarter of 1947. 20th-Fox — $44,689,000 for the third quarter of 1947, compared with $50,245,000 for the same period in 1946 and $46,587,000 for the second quarter of 1947. Universal — $16,634,000 for the third quarter of 1947, compared with $12,083,000 for the same period in 1946 and $16,608,000 for the second quarter of 1947. Col. Foreign Coin Omitted. The SE<^ pointed out that the gross income of Columbia's foreign subsidiaries (reported each time in the subsequent quarter, but omitted from the totals) amounted to $4,275,000 for the quarter ended June 30, 1947, and $4,069,000 for the same period in 1946. It was also noted that fiscal quarters ended at different times for the companies listed. In addition to the producing companies noted, the SEC also listed the sales, including operating revenues of Loew's Boston Theaters Co. as follows: $432,000 for the third quarter of 1947, compared with $460,000 in the same period in 1946 and $527,000 for the second quarter of 1947. County Tax Upheld in Tenn. Supreme Court Knoxville, Tenn. — Knox County amusement tax of one cent on each 20 cents of admission was upheld by the State Supreme Court, which ruled the power of the Legislature to declare and tax privileges is unlimited and cannot be controlled by the courts. Motion picture interests sought to have the tax declared unconstitutional on the ground that it applied to only one county in Tennessee. D of J Firm on Divorcement Proposes 10-Year Cross-Licensing Ban (Continued from Page 1) should have compelled the defendants to sell their stock interests in theaters held jointly with independents in order to prohibit the former from gaining any further power. The brief attacks the auction selling provisions of the N. Y. Statutory Court's decree as completely "ineffective" and submits that divorcement is the "necessary measure to eliminate conspiracy and restore competition to the industry." "Competitive bidding is, in reality, no affirmative relief at all, for the reason that the independents are in no position to compete with the majors for pictures. It does nothing to pry open to independent competition the market that has been so long closed by the defendants' unlawful conduct." The Government's position is that the theater-owning corporations can continue to prevent competition from entering the field under competitive bidding by outbidding the independents on pictures. This could be done without injury to the majors since they would at the same time receive correspondingly more revenue as distributors. Contending also that, competitive bidding is "unworkable," the brief declares that all disputes would have to be settled by contempt proceeding instituted by the Depart Video Discrimination Said Hearing Reason (Continued from Page 1) Rep. John Lesinski, D., Mich., that the hearings were inspired by the big radio networks "to intimidate the AFM." Representatives of the networks refused to answer questions by Rep. Carroll D. Kearns, R., Pa., concerning the negotiations which are to be held here today with the AFM. Kearns demanded to know if they would agree to a contract which does not provide for live music for television, but the network executives refused to say what they will insist upon in the negotiating meeting. Vice-president Frank Mullen of NBC would go no farther than to say that he and his colleagues would sign no contract "not in the public interest." Cleve. Exhibs. Elect Tomorrow Cleveland — Officers of the Cleveland Motion Picture Exhibitors Association will be elected at tomorrow's annual luncheon meeting. Ernest Schwartz, who has served as president for 14 years, is expected to be re-elected. ment of Justice which is in no position to handle the flood of suits that would arise. The Government sees no chance for a voluntary system of arbitrations. Under heavy fire is the lower court's position that divestiture would injure the defendants and be harmful to the public as well. The Government admits that the majors will be hurt by such action but denies that such injury is a basis for allowing the conspiracy to continue. "The basic requisite for successful theater operation is access to good pictures," the brief declares, pointing out that independent exhibitors have proven their ability to serve the public well. In support of its request for a ban on cross-licensing, the Government states that the effect of such practice is substantially the same as the theater pooling arrangements which the Court held unlawful. The Government also expresses concern for the quality and content of motion pictures controlled by monopoly since films are such an important means of communication of ideas. In this connection, the brief declares that the action of the defendants in the past "gives little hope that they will in the future encourage production of the wide variety of films needed to satisfy the wide variety of tastes possessed by the potential American film audience, rather than a standardized mass product adapted to profitable exhibit in a controlled market. . . . The content now is controlled by the prejudices and the moral attitudes of those who control the channels of distribution." Cinecolor Reports Record Sales, Profit (Continued from Page 1) ed September, 1946 was $43,087, while a loss of $25,607 was sustained in the 1945 year. Sales in 1946 were $850,949 and in 1945, $248,244. Report pointed out that Cinecolor during the year was able to trim the price on release prints by a half cent per foot, and that the company also absorbed an 11.17 per cent cost of living increase. William T. Crespinel, Cinecolor president, reported that the company's color process is now well established in the industry and said the demand for it should expand rapidly with the increased popularity of film in color. Company's research department, he added, is constantly studying means to improve the present process. Tack Votion Leaves RKO Post in Great Britain Jack Votion, RKO Radio European rep. since 1945, with headquarters in London, has resigned, it was learned yesterday. Votion returned to New York last week. Whether the post will be filled was not ascertainable yesterday. Hartford Circuit in Brownout Hartford, Conn.— Hartford Theaters Circuit has browned out all theater fronts and marquees as a fuel conservation effort, Al Schuman, general manager, announced. Eyeing Both RKO and UA, Young Confirms (Continued from Page 1)' ' cussions, sources close to the indus-^ trialist cautiously pointed out thati he "never backs a loser." In a statement released in Newl York by Eagle Lion and simultane-^ ously in Washington by Joseph Borkin, his Washington attorney, Young said: "A group of private investors as-J sociated with me have been looking both at RKO and United Artists with a view towards possible investment! but to date nothing has come out of it. Whether an agreement can be] reached in price and other factors isM a question for the future to decide.1 "Quite apart from this, we propose to go forward with Eagle Lion to do all we can to make it the most progressive and economical and efficient unit in the industry." Young did not identify his associates in the proposed deals, nor wa? there mention of the extent of the^ offers. Fairbanks, Grounded, Due Here Thursday by Train (Continued from Page 1) marily to confer with Frank E. Mul-Uj len, executive vice-president ofH|| NBC, and video officials of the net. Plans for mass production of films for television, called for under the ' new NBC-Fairbanks pact, will be ■'discussed as well as story ideas fornew program series. Fairbanks also will supervise the expansion of his New York offices and the acquiring of studio space. Reavis Winckler, publicity director of the Fairbanks organization, is accompanying the producer. Consolidation of all film produc-m tion activities of Fairbanks under1 B the title of Jerry Fanrbanks, Inc., is announced, the producer dropping ; the title of Jerry Fairbanks, Inc.,li: organization under which he has produced short subjects for Para x mount. Under the new organizational setup, Fairbanks will have four divisions to handle the production of his™, television, theatrical and commercial films and the distribtution of the 35 mm and video Zoomar lenses. Two Scripts for Tele Pix West Coast Bureau of THE FILM DAILY Hollywood — Jerry Fairbanks Prods, yesterday purchased and scheduled for early filming two original television film scripts. "The Family Affair," by Arthur Hoerl, former King Features writer and artist, was set for production start in early March. "Double Clue," a mystery drama by Will Gould, scripter on the "Michael Shayne" radio show, will face the cameras next month. •a* set tHmonpQ*a *£ •»