Independent Exhibitors Film Bulletin (1948)

JVeMVS and (Continued from Page 9) cific percentage terms except where we are unable to mutually agree upon a basis to govern a sliding scale arrangement. "Loew's, Inc., has not changed its sales policies except that we are prepared to even expand, if necessary, our existing policy of special consideration for some small operations who find it difficult and sometimes impractical to play our pictures at the present time on a participating aarrangement." Rodgers also spoke about the great fluctuation in first run grosses on various pictures, pointing out that while some films have done very poorly in first-runs, a picture like "The Three Musketeers" turns in an amazingly high gross, doing better pre-Xmas busine.ss than pictures during years when business generally was much better. This seemed to verify the old industry axiom that there is nothing wrong that good pictures won't cure. In 1949, when M-G-M will celebrate its 25th anniversary, Rodgers anticipates "the greatest product in the company's history." At the recent meeting with field and exchange men, he said, the sales staff pledged to strive for an unprecedented circulation of M-G-M product during the anniversary year. lA-NEB ALLIED OPENS FIRE ON COMPANY AUDITS Iowa-Nebraska exhibitors were urged not to open their books to film company auditors in a resolution by Allied ITO of la. -Neb. which opened fire on distributor "fraud" charges. Charging that the "probably collusive actions of several film companies to harass certain independent exhibitors with fraud and demands for audits of their private business" was a "mud-slinging" retaliatory measure to the inde theatremen's fight against "monopolistic and confiscatory trade practices," the AITO board told its members to "resist any and all attempts at invasion of their private business and records by any 'auditing' or other representatives of the film companies." Distribs Foster Fraud Irregularities in reporting percentage picture returns by exhibitors were nurtured by the distributors themselves, it was charged. Pointing to court testimony which showed that exhibitors were forced to play percentage pictures at "exorbitant" rentals in contrast to affiliated theatres' "privileges of clearance of runs (now ruled to be illegal) and of low rental terms," the Iowa board alleged that local exchanges urged exhibitors to sign high percentage pacts because the home office "would not approve any other contracts." It was further charged that the local sales assured the exhibitors that this was merely a formality, that they would not be checked and "could take their own adjustments at the tim> of playing and reporting the pictures." This was termed a "common practice for years" and was done as late as last September, the statement declared. CR Attacked The question of possible exchange of information in the Confidential Reports setup, comprised of seven distributor members, was also rai.sed as a violation of exhibitors fundamental rights through "collective, if not collusive, action." ian SHELVED SCRIPTS GIVE RKO PAPER LOSS, REAL $ REFUND A paper write-off of nearly S'i million dollars in obsolete scripts by RKO for the third quarter of 1948, the period in which Howard Hughes assumed control of the company, will result in a check for $1,025,000 from the U. S. Treasury. The kickback is due under the terms of the excess profits laws. The provision for estimated losses on shelved scripts and "outside productions" brought the company's profit of $3,479,000 for the 39 weeks of 1948 to a red figure of $81,000. Add to this a $275,000 provision for estimated income taxes and RKO's net loss for the 39 weeks was $356,000. This compares with a 39-week net the preceding year of $6,896,000. The '47 figure, however, included estimated losses of $1,130,000 on outside productions, and a king-sized profit of $4,765,000 on sale of capital assets. The third-quarter loss, incurred principally through the write-off, was :52,258,000 after the million-dollar excess profits refund. Before these transactions, the company showed a $122,000 profit, including profit on the sale of capital assets of $9,000, compared with $4,387,000, including a capital assets profit of $3,158,000, for the comparable '47 quarter. SIX FILM EXECUTIVES IN NEW TELE PROD. DIST. CORP. The know-how of motion picture production and distribution was projected into the television picture with the announcement of the formation of Lion Television Pictures Corp. by a group of film executives. Headed by Earle W. Hammons, founder and former president of Educational Pictures, Inc., the directorate includes Jules Levey, United Artists producer and a former RKO vice-president; Neil F. Agnew, formerly president of Selznick Releasing Organization and currently president of Motion Picture Sales Corp.; Charles L. Casanave, v. p. of Motion Picture Sales and a former v.p. of National Screen Service; R. M. Savini, Astor Pictures president; and Paul White, formerly SRO European general manager and now president of Paul White Productions. Hammons will be president; Levey, executive v.p. in charge of production and the others will hold vice-presidential posts in the new organization. Newman Lawler was named secretary and legal advisor. It was revealed that a large variety of film productions in addition to live-show programming and spot announcement material is immediately available to telecasters through the Astor film exchanges, and, in every city where a television station operates, by a LTPC representative. SIMPP REPUDIATES MPAA ANTI-RED HIRING POLICY The "unfriendly ten" found some unexpected friends. The Society of Independent Motion Picture Producers indicated that its member producers could hire any of the eight screen writers, director and (Continued on Page 12) SHORT SUBJECTS by BARN The handwritin{>f on the wall was .seen all too clearly by the Trans-Lux chain as two of the newsreel circuit's theatres switched over to feature presentation. The "MeneMene-Tekel" this time, however, was .spelled T-E-L-E-V-I SI-O-N. While the inroads made by video on boxoffices generally have not cut too deeply, the newsreel houses have been feeling it much more acutely than others, since many patrons have already viewed some of the reel via television. Fight films, long a lucrative feature of these theatres, are kaput now, and other sporting events no longer have the draw. Hence the conver.5ion, beginning Christmas Day, to straight features by Trans-Lux in Washington and Philadelphia, where both houses are ideally suited to class presentation. The former will inaugurate the new LEO'S RODGERS & DIETZ Xo Cub In A Poke policy with Samuel Goldwyn's RKO film, 'Enchantment"; the Philly hou.se bows with Eagle Lion's "The Red Shoes" on a two-a-day, advanced admission basis. * * For the third time in the company's history, M-G-M's entire executive field sales force will be gathered in Hollywood to have a look at Leo's new brood of films. The idea is to acquaint the sales force with the 1949 litter so that they won't be selling a cub in a poke. The jaunt, scheduled for Feb. 6-12 will see some 48 sales managers, their assistants, district and branch managers in the Culver City studios where they will view approximately 15 completed pictures, some still in rough form. William F. Rodgers, M-G-M vice-president and general sales manager, will head the home office contingent. Following the five-day field sales managers conferences ended Dec. 10th conducted by Rodgers and Howard Dietz, v.p. in charge of ad publicity exploitation, the sales toppers scattered to their respective districts for huddles with their staffs on what went on at the (Continued on Page 12) 10 FILM BULLETIN