FilmIndia (May-Dec 1938)

* A Crore of Rupees Dissipate Foreign Pictures Mu 7C LAKHS SENT OUT EVE, ne good thing about rumour is that it gives new impetus to life and sets people thinking. One such rumour which persists in repeating itself is that the Government of India recently thought of increasing the assessment value and the import duty on the foreign films coming into India. Following the time honoured routine the Central Government is reported to have sent the case for this proposed taxation to the Collector of Customs, Bombay, who in turn called upon the local distributors of foreign films to submit their objections to the increase of the assessment value and the import duty. And again rumour goes on to confirm that some of these distributors managed to convince the local Collector, of course by manipulation and strange arithmetic of figures, that the distributors of foreign pictures do not actually make any profits on their business in India. The Collector of Customs, who is ■not expected to be conversant with the technical aspect of this business of film distribution, does not seem to have needed much persuasion to report to the Central Government that for a year at least, things should be as they are at present This is rumour, but it assumes a semblance of being a fact, when one reads the painful attempt which is being made by the Editor of the "Motion Picture Magazine" to confuse the issue by presenting fictitious figures in support of the argument that the foreign distributors are hardly making any profits on their activities in India "The Motion Picture Magazine." on its own confession is a subsidized instrument of propaganda, maintained by the leading foreign producers. And when a subsidizel paper makes a laboured attempt to distort facts, affairs look suspicious. Neither the people nor the Government are expected to be con vinced by the propaganda, prima rily based on a fictitious data and necessarily broadcast with a design, because it comes from a oaper the existence of which is dependent on the goodwill of the interests it represents. While these people seem to have temporarily succeeded in choking oil the proposed taxation by marshalling misleading figures, we hardly think that matters should rest there. If at all there is a strong case from all view points, economic, commercial and national — to justify an increase in the assessment of value and in the import duty, this one certainly is. The Government of India should not be satisfied with the one-sided eyewash v/hich the foreign distributors have for the present served. 27 LAKHS A YEAR IN ORGANIZING The other side of the picture is the real and truthful one. Let us get to the facts: Nine major companies operate In India, namely, Metro GoldwynMayer, Paramount Pictures, Universal Pictures, United Artists, Warner Brothers, 20th Century Fox, Columbia Pictures. R.K.O. Radio Pictures and Humayun Pictures. All of them have their own offices at the following 8 centres In India: Bombay, Calcutta, Madras, Lahore, Delhi, Karachi, Rangoon and Colombo. Every one of them spends between Rs. 25,000 to Rs. 30,000 per By: BABURAO PA month on the maintenance of these offices. Which means that a single company spends over 3 lakhs of rupees per year on office maintenance. Therefore amongst nine companies, they must spend over Rs. 27 lakhs per year in managing their establishments. Out of these 27 lakhs: -Nearly 30 foreigners, (Americans, Englishmen and others') take approximately 12 lakhs of rupees per year, an average of Rs. 40.000 a year per head — nearly 45 per cent of the total expenditure. Nearly 12 lakhs are paid in rent, taxes, conveyance and other expenses while an approximate halance of 3 lakhs of rupees is distributed amongst 500 Indian employees — which works out at Rs. 600 a head per year i.e. Rs. 50 a month per man. It is hardly necessary to mention that the efficiency of these foreign organizations is entirely due to the Indian staff. Not only that, but their huge returns are all secured by the Indian employees on the staff. SINECURE JOBS Some of these foreigners who grace the gilded chairs which return between Rs. 40,000 to Rs. 60,000 a year, with free transportation both ways to America or England with a six months' leave after a tiresome spell of three years with the "damned natives" and in that "bloody hole", and a substantial floating insurance against death, injury or mosquito bite, to say nothing of the free residential quarters in the most fashionable quarters of the city, occupy sinecure posts. If you meet some of these men with their stupid glassy stare rolling about in expensive motor cars and drinking like seasoned topers 0