Motion Picture Daily (Jul-Sep 1948)

rn Accurate Concise and Impartial MOTION PICTU ,E DAILY ' p?9t$ NO26 NEW YORK, U.S.A., FRIDAY, AUGUST 6, 1948 TEN CENTS lore Trouble from Mexican Devaluation bme {/S Companies Are Withholding Remittances Mexico City, August 5. — Conary to earlier expectations of orients accruing to the economical1 plagued film industry in Mexico om the devaluation of the peso, adsrse conditions have arisen which >se a serious threat to both Ameriin and Mexican film interests in this mntry. The unsettled monetary situation resulting from the government's decision to devaluate i has induced most American distributors here to suspend making remittances to their home offices until the situation settles. However, a few are buying dollars at 6.25 to 6.50 pesos per (Continued on page 4) )G in Minneapolis ind NCA in Deal Strike Closes MGM Studio at Ellstree London, August 5. — An unexpected walkout of 70 members of the Electrical Trades Union today closed MetroGoldwyn-Mayer's Ellstree Studio. The strike occurred at the expiration of a onehour ultimatum given to the management at lunch time, the men refusing to utilize the conciliation machinery of the film industry's trade union agreement. Subject of the argument was the recent discharge of two ETU members. Some Settle Rockne Suit Minneapolis, August 5. — Local kreen Guild exchange and the board ,f directors of North Central Allied lave approved in principle a six-month rial arrangement whereby NCA will -eceive a percentage of film rental :ollections for all SG product, new ind old, played by NCA members. \ctual percentage has yet to be deternined. The move was motivated by 3G here. Abram F. Myers, national Alfred's general counsel, admitted in Washingion on Wednesday that there has been some discussion of a plan for Allied ;o acquire distribution rights to reissues, but "it has not been submitted as a national issue." Some defendants in the RivoliRockne $900,000 treble damage suit here have made an out-of-court settlement, it was disclosed today. Under terms of the agreement, handled by the plaintiff's attorney, Aaron Stein, both houses have been granted opportunity for preferred playing time against competing houses in addition to payment of attorney fees. Settlement was made with Paramount, 20th CenturyFox and Universal. Warner Brothers and United Artists, both defendants, are expected to make settlements shortly pending preparation of papers. It is understood the suit may continue against Essaness, defendants in the Rivoli case only, and Columbia, defendants in both suits. Chicago Operators Win 10% Increase Chicago, August 5. — Operators union Local No. 110 (AFL) today signed a five-year contract with all Chicago area houses which provides for a 10 per cent increase in wages. Eugene Atkinson, business manager of the local, said the increase will not go into pay envelopes but into a fund which will provide disability benefits, retirement pensions of not less than $100 a month for life, a vacation fund with two weeks' pay for each member and increased sick and death benefits. Negotiations were conducted by Atkinson and Clarence Jalas, secretary-treasurer, representing the union, and by Eddie Silverman, Essaness president, and Morris Leonard, B. and K. official, representing theatre owners. Ray Johnston Sells 8,000 Mono. Shares Washington, August 5. — Stock transactions by officers and directors of motion picture companies was exceptionally light during the month ending July 10, according to the Securities and Exchange Commission's monthly report on such trading (released here today.) Monogram's W. Ray Johnston sold 8,000 shares of common in five trans actions, dropping his total holdings to 4,617 shares. Johnston also holds options for 12,500 shares of common William B. Hurlbut sold 1,000 shares of Monogram common, leaving 3,029. Howard Hughes, listed for the first time since he took over RKO, showed (Continued on page 4) it NCA Hails Ascap Ruling, Hits TOA Fargo, N. D., August 5.— North Central Allied praised New York Federal Court Judge Vincent L. Leibell's decision in the Ascap case and :ondemned the society for failing to comply with North Dakota law requiring registration of its copyrighted properties, during a regional meeting held here today. Ben Berger, NCA president, urged exhibitors to refuse to pay license fees to Ascap pending final (Continued on page 5) 'A Southern Yankee 9 [M-G-M] — Red Skelton Raises the Roof Hollywood, August 5 IF YOU thought Red Skelton was a boon to tired theatregoers in "The Fuller Brush Man" (and if you didn't you were out of sync with the present generation of paying customers) you'll be as pleased as the Hollywood preview crowd was, unanimously, to discover that you ain't seen nothin' yet. These hard-bitten minions of the press, starving of late on a steady diet of grim melodrama, and remembering unhappily M-G-M's handling of the Skelton talent in "The Show-Off" and "Merton of the Movies,"* arrived the other evening at the Academy Awards Theatre hoping for the best but prepared for anything — anything, that is, but the fastest, funniest comedy of this or any recent year. When it was over they picked themselves up out of the aisles, pounded each other on the back like school kids who've just won a ball game, and were still talking about nothing much else for days. Happy days are here again, and they'll be back at your place when you play "A Southern Yankee." It takes digging back into the yesteryears to find comparison, as to kind, for this all-purpose, all-level comedy. When it's slapstick, which is much of the time, it summons up memories of Harold Lloyd at his peak. (Continued on page 4) 10,321,000 Warner Profit For 9 Months Equals $1.41 Per Share; $7,400,000 for U.S. Taxes Warner Brothers Pictures and subsidiaries report for the nine months ending May 2, a net profit of $10,321,000 after provision of $7,400,000 for Federal income taxes. Net for the nine months ending May 31, 1947, amounted to $19,134,000, after provision of $11,900,000 for Federal taxes. Net for the 1948 period is equivalent to $1.41 per share on 7,295,000 shares of common stock outstanding. Net for the corresponding period last year was equivalent to $2.60 per share on 7,341,680 shares then outstanding. Film rentals, theatre admissions, sales, etc., after eliminating intercompany transactions for the nine months ending May 29, 1948, amounted to $112,415,000, compared with $125,078,000 for the corresponding period in the previous year. Gross income for the 1948 period amounted to $117,592,222, as against costs and expenses of $99,374,722, leaving a profit before charges of $18, (Continued on page 4) $18 Million WB Backlog Warner productions completed but not yet released total $17,909,125 in negative costs, it is disclosed in the company's consolidated balance sheet released here yesterday by the home office. Also listed among the inventories are productions in progress and charges to future productions, at a cost of $8,738,967. Fred Jack Reported In UA Division Post Realignment of a part of United Artists' top sales personnel structure is anticipated in some quarters here, with Fred Jack, Southwestern district manager, reportedly slated for the post of Western division manager, vacated by the recent resignation of Maury Orr. Jack is in New York at present and is understood to be unofficially handling the Western post.