Motion Picture Daily (Jan-Mar 1955)

4 Motion Picture Daily Monday, March 28, 1955 France More Favorable To Co-Production Policy By HENRI KAHN PARIS, March 27. — France is having second thoughts regarding co-productions. Two years ago the French cinema felt convinced that it could survive only by use of the co-production method. Some enthusiasts went so far as to suggest a film pool similar to that of the coal and steel pool. It was, they said, the one way of assuring a wide market and at the same time of erecting a barrier against American domination. The 1954 figures, just published, are causing second thoughts. The number of purely French films in the French quota (including French and Frenchco-productions) fell last year to a new low of 60 per cent. The figures are disturbing. In 1949 France showed 79 films out of a quota of 99. But only three co-productions were included, which means that the quota was not filled. Trend Continued in '50-'51 In 1950 out of a quota of 110, French productions totaled 102 and there were eight co-productions. In 1951 a peak was reached, with 104 French films out of a quota of 113, with nine co-productions. Then came the decrease. In 1952, out of a quota of 115 films, France was responsible for only 97, whereas there were 18 co-productions. The recession continued, for in 1953 France showed no more than 84 out of a quota of 107, the rest being co-productions, and last year a new low was reached with 60 French films out of a quota of 100, of which 40 were coproductions. The position would not be considered so bad if half the co-productions had been made in France. That is 20 out of the. 40. But only 15 out of 40 were made in this country. Italy still remains the principal country for coproductions. The position, therefore, is considered unsatisfactory for a variety of reasons. Fewer people are being employed by the industry and this means less talent is being discovered. The policy calling for fewer and better films is not a bad one, but it is the proportion which is worrying the industry. A steep decline in French productions in favor of an ever-growing proportion of co-productions is not really part of a fewer-and-better-films policy. Has Caused Constant Concern It is known, of course, that the French have been worried about this for some time. Co-productions with Italy, most certainly, will go on. But a new arrangement is being sought. The price, at the moment, is a little too heavy for France. Hughes {Continued from page 1) that he understood that negotiations have been resumed. RKO Pictures, a shell of a corporation since Hughes' buy-out of the RKO Radio Pictures operating company, last reported that it estimated the company's capital-loss-carry-forward as much as $30,000,000 under the recently enacted new Federal tax code. Its other asset is cash totaling $17,796,958, according to the company's annual report, and interest receivable. Atlas Big Holder Odium has publicly stated that he would like to add RKO Pictures to the Atlas portfolio of holdings, stating the benefits to be derived from the capital-loss-carry-forward feature. Atlas, according to latest estimation, controls or owns about 1,000,000 shares of RKO Pictures common as compared to Hughes' 1,262,120. Mass. Drive-ins {Continued from page 1) tors, Inc., of New England, and Frank Lydon, executive secretary of Allied Theatres of New England took a strong stand in opposition to the bill, saying that, if passed, in its present form the bill would allow the commissioner to step in at any drive-in and ask for structural changes which could cost the exhibitor almost as much as the original construction. They called the bill devastating and an imposition on theatres and the department alike. They also declared that no evidence had been submitted to show there was any need for safety regulations of drive-ins by the department. Supervision is now under the local municipalities under the licensing authority of each city and town and should remain there, they said. TOA Survey {Continued from page 1) that theatre losses during the past three years have been low, it is possible that the exhibitors will seek lower insurance rates, it was reported. Last November, during the TOA convention, Martin reported that the insurance rates committee had discovered that "an over-all reduction in fire insurance rates would be unavailable because of the current use of acetate film." He based his conclusions, at that time, on reports from Emanuel Frisch and Henry Anderson in the New York area, Arthur Lockwood and Jack Wallens in the New England states, and Frank Brady and A. C. Lauer in the Southeastern states. See Resumption of Arbitration Talks Arbitration talks are expected to be resumed shortly between Herman Levy, Theatre Owners of America general counsel, and Adolph Schimel, counsel for the distribution arbitration committee. Schimel, vice-president of Universal, for the past two weeks has been ill, but now has returned to his desk at Universal. Production Revival Promised in Mexico Special to THE DAILY MEXICO CITY, March 27. — The acute depression which has virtually paralyzed production in Mexico will end by April, according to Angel Gravajal, Secretary of the Interior, and Eduardo Garduno, director general of the trade's own bank, the semiofficial Banco Nacional Cinematografico. Hector Fernandez, manager of the National Producers and Distributors Association, declared that the current depression is resulting in extreme hardship to 10,000 technical and manual workers, as well as to players, and charged that the situation has been caused by the producers' difficulty in obtaining financing and a reduction in their anticipatory payments. Eyes on European Market Regarding financial arrangements, both Gravajal and Garduno voiced the assurance that producers who present really good stories — those that the bank considers clean and yet entertaining, and what the public at home and abroad wants — will get ample financing. Besides, they said, anticipatory payments will be larger and made more promptly. They expect more business for Mexican pictures in Europe, particularly Italy and France, because of the increasing acceptance of Italian and French pictures in Mexico. Financing by the two semi-official banks that serve the trade is smaller, their latest balance sheets, Feb. 28, show. One, the Banco Nacional Cinematografico, reported loans, credits Allied of Wisconsin To Open Meet Today Special to THE DAILY MILWAUKEE, March 27. — The three-day convention of Allied Independent Theatre Owners of Wisconsin will open here tomorrow morning at the Schroeder Hotel. The M-G-M Workshop will be a feature of the opening day. On Tuesday the report of Sig Goldberg, president, will follow an address of welcome delivered by Angelo Provonzano. Election of officers will be held on Wednesday and the convention will close with a banquet the same night. One of the main features on the convention agenda will be the "College of Concession Knowledge." The "deans" are : Clifford Lorbeck, Merchandising Corporation ; Bill Imhop, Theatres Candy Co. ; and Harry Levin, Vendex Inc., and "professors" from all fields of merchandising for theatres. The session will cover buttered popcorn, ice cream, candy, beverage, display methods, storage and stock control of vending supplies. and discounts totaling $3,116,875. The other, the Credito Cinematografico Mexicano, announced like accommodations totaling $177,457. The trade discounts some talk of labor trouble because of the depression. That discounting is based upon the fact that all parties to the collective labor contracts made last year, all featuring pay hikes, regard them as sacred and the life of those agreements is until midsummer, 1956. Allied {Continued from page 1) tion had been cleared before embarking on the round-table talks," one Allied leader said. "Arbitration is getting the run-around and it looks as if the round-table is heading for the same fate." One Allied member said he believed that arbitration was a "dead duck." Action Likely Now Plans for the joint meeting of Allied and Theatre Owners of America representatives to discuss projects of; the Emergency Defense Committee may be finalized at sessions here during the Oklahoma convention. Shor, who has been on vacation in Arizona, had asked that the proposed meeting be deferred until he returned to his theatre operations. Pass 52% Tax Rate; Bill to White House From THE DAILY Bureau WASHINGTON, March 27.— Extension of the 52 per cent corporate tax rate until April 1, 1956, will become law this week. The rate is scheduled to drop to 47 per cent on April 1, 1955, under present law. House-Senate tax conferees on Friday agreed on a bill containing a one-year extension, and the Senate promptly approved the agreement. House Ways and Means Committee chairman Cooper (D., Tenn.) said he expected the House to ratify the agreement on Tuesday, sending it to the White House, where President Eisenhower is expected to sign it promptly. House, Senate at Odds Both House and Senate had earlier voted the one-year extension of the corporate tax rate but were at loggerheads over a House-approved individual income tax cut. The conferees finally threw this out. Meanwhile, Senate Finance Committee chairman Byrd (D., Va.) said he expected his committee would approve sometime this week a Housepassed bill to repeal retroactively two sections of the 1954 tax law dealing with prepaid income and expense reserve funds. Business groups have widely protested the repeal, claiming they had already paid their taxes based on these provisions and that retroactive repeal amounted to a retroactive tax increase. NY Senate to Vote On Noonan Measure Special to THE DAILY ALBANY, N. Y., March 27.— The New York State Senate will vote tomorrow evening on an amended Noonan Bill which would increase the film licensing fee from $3 to $4 per 1,000 feet or fraction thereof, and changing the charge for prints from $2 to $4 "for each additional entire copy" rather than the present $2 per 1,000 feet. The measure, amended in the Senate after being unanimously passed by the Assembly, will be returned to the Assembly if passed by the Upper Houses for concurrence, which is usually a formality.