Independent Exhibitors Film Bulletin (1948)

HfUJS DIGfSI Bi'Weekly Reoievo of the Traders Eoents Max K. ViMiiiffstt^iii, Kaf;le-IJ(iii ii<l-|iiil)lii'it.v dirpctor, uliose lei'Ciit iiiiiioiiiiicinciit tliiit thf <'4>iiip:iii.v would "cuiitiiiiic iiiid f\|>aiid ' its «'0-<>j> ad-promo) ion |>(di<) w'.lU llir:itre'. rvceiveil u idcspie.id <'xhiI>itor acriairn. Grad Sears, I'liited Artists prex.v, reports that Knterprise's "Arch of Tiiumph" and tw^ others will l>e released by I'A, after siitielchln:; rumors that another outlet would h:indle the HergmanBojer starrer. Jark I<. Earner, studio (liief. announrps a. "eapuelt.v" Nrhe<lule for Warner Hros. for If)l8, hKIi 12 set to be lilmed during the lirst ijuarter. 14 TAX MAY SHUT BRITISH THEATRES Britain's film industry faced a bleak prospect as negotiations between the British Government and American film companies came to an impasse last fortniKht. Followmg the breakdown of discussions in London, Eric Johnston, president of the Motion Picture Association of America, announced that the British Government "has given us no choice except to continue our policy of withholding shipment of pictures to Great Britain until an alternative to the confiscatory tax is worked out." Johnston cited figures to show that shipment of American films to Britain undcthe 75% tax would r-esult in a deficit to the American film industry, as v/ell as "other onerous burdens." He further charged that "the present British position affords no ba;,is for detailed negotiations to work out a satisfactory arrangement to replace this prohibitive tax. However, we are prepared as we always have been, to negotiate at any time with the British Government on tax alternatives." He recalled American companies' willingness to agree to a freeze of "a substantial part of our revenues" and reaffirmed that position. 4500 Face Shutdown As a result of the American ban. England's 4500 theatres faced a shutdown for lack of product. With British studios ordinarily providing about 10 per cent of the needed product to maintain normal operation of Britain's film houses, and British production curtailed, particularly independents, W. R. Fuller, general secretary of the Cinematograph Exhibitors Assn., gave warning that there is danger of "the whole trade going bust, including the production side." He discounted the possibility that British production might fill the gap. Sir Henry French, director general of the British Film Producers Assn.. called Johnston's statement that the British Government has "summarily rejected in principle any alternative to the tax," misleading, and said that it was his understanding that the Government was willing "to discuss adjustment of the tax which would allow the American industry to retain revenue earned in the U. S. by British pictures, in addition to the amount earned in this country by American pictures after ad valorem duty has been paid. Although the British treasury declined formal comment on Sir Henry's statement, it seemed quasi-official since the treasury referred newsmen asking for its attitude on the statement to French's office. * • * PARA SUES BRANDT, CHARGES FRAUD A fraud action seeking damages of $563,265 was tiled by Paramount Pictures in the New York Supreme Court last week against Brandt Theatres and about 162 other exhibitors and officers of exhibitor corporations in the Brandt Circuit, charging falsifying box-office returns on percentage pictures, fraudulent statements of expenses and several other counts, including bribing checkers, all "wilfully, deliberately and fraudulently committed." The complaint alleges that falsification of the books and records of 98 theatres vrns effected by the following methods, among others: "By crediting as received from flat rental pictures a portion of the receipts that had in fact been derived from the exhibition of some of the percentage pictures of the plaintiff; by using duplicate ticket rolls; by using unreported ticket rolls; by selling tickets out of continuity; by reselling tickets and by engaging in fraudulent and illegal methods in connection with the admission of patrons to the theatres; by maintaining separate unreported bank accounts: by switching ticket rolls between different theatres in the same circuit; by submitting to the plaintiff altered and/or rewritten daily tally reports; and by attributing portions of the gross receipts to other sources, thus diminishing the amount of the gross receipts reported.'' It was also charged that where license agreements contained split figure arrangements which provide for the sharing of receipts in excess of the exhibitors' operating expenses, "false and inaccurate" expense statements, padding their expenses in a variety of ways. The methods used by the exhibitors, in furtherance of their alleged conspiracy to under-report admission receipts and to exaggerate expenses, it was charged, in all cases have "followed a common pattern." The action is being prosecuted by Phillips, Ni2;er, Benjamin & Krim, attorneys for Paramount. The complaint dates back to the period beginning Jan. 6, 1942 and continues until the present date. * » » SALARY INCREASES FOR WB EXECUTIVES Salary increases in 1947 for several Warner Bros. Pictures, Inc., executives were disclosed in the notice of the company's annual stockholders meeting. Listed wa.« aggregate remuneration for the fiscal year ending Aug. 31, 1947, and the increase over the preceding year for each. Among those reported showing an increase were: Mort Flumenstock, v.p. and director of ad-publicity, $69,200 aggregate, an increase of $6,950; Benj. Kalmenson, v.p. and general sales manager, $112,700, up $15,100: Harry M. Kalloine, v.p., $112,701, up $5,356; P^obert W. Perkins, secretary and general counsel, $87,300. up $12,550, Samuel Schneider, v.p., $91,700, up $4,050; and Jack L. Warner, $182,150, an increase of $50. No increase was shown for President Harry M. Warner, $182,100, or vice-president Albert Warner, $104,600. The figures included fixed amounts paid as allowance for expenses (other than traveling expenses). The stockholders meeting was set for Feb. 17, it was announced by secretary R. W. Perkins. Six members of the board were nominated for re-election to serve foi a two-year term: John E. Bierwirth, Waddill Catchings, Robert W. Perkins, Albert Warner, Harry M. Warner and Jack L. Warner. (Continued on Page 33) FILM BULLETIN