Motion Picture Herald (Mar-Apr 1945)

FIVE DISTRIBUTORS ANNOUNCE NEW CHECKING SERVICE Confidential Reports, Inc., to Hire 5,000 Checkers in 31 Exchange Cities At long last, Confidential Reports, Inc., a new theatre checking service organized by five major distributors, in process of formation for more than a year, was formally announced last Friday at a luncheon of trade press publishers and editors and representatives of member companies in the North Garden of the Astor Hotel in New York. The new organization is scheduled to begin operations April 2. It is assembling a staff which is expected to include 5,000 checkers, full and part time, with an operating cost of perhaps as much as $30,000 a day. That would indicate a total cost of about $10,000,000 a year. Headed by John J. O'Connor as president, the new organization will be under the active supervision of Jack H. Levin as vice-president and general manager. Mr. Levin resigned last week as director of the Copyright Protection Bureau, with which he had been associated for the past 17 years. Mr. O'Connor will continue as vice-president of Universal. The new organization currently is engaged in a search for a "name," preferably with legal background, to become its permanent head. Becomes Fourth Checking Service in Industry Confidential Reports thus becomes the fourth checking service operating in the motion picture business. With its anticipated employment of approximately 5,000 checkers, it will increase the total to perhaps as many as 14,000 or more persons checking part time and full time for the quartet of companies serving the eight major distributors. The five companies participating at the outset are Paramount, Universal, RKO Radio, United Artists and Columbia. Services of the organization, it is announced, will be available to all producers and distributors desiring them. Branch offices will be opened in the 31 exchange centers, in most of which quarters were said to have been leased already. The other three checking services are: Ross Federal Service, Inc., which will continue to check percentage playdates for Twentieth Century-Fox. Headed by Harry A. Ross as president, the company's agreements with the five founders of the new service expire April 1. The Ross concern is established in the 31 exchange centers. The company has about 7,000 employees. Warner Bros. Picture Checking Service, a division of Warner Bros. Pictures. Attached to the sales department with R. P. Hagen as manager, the service is confined to Warner playdates. It employs about 3,500 part-time and full-time checkers. Metro-Goldwyn-Mayer Checking Service, functioning exclusively for MGM product, this department is attached to the sales division. Under the general supervision of Alan F. Cummings, head of exchange operations, it is managed by Nat Rockland. Some 4,000 checkers are employed on a part-time and full-time basis. The new organization, Confidential Reports, Inc., is expected to require the services of approximately 5,000 people who will be paid from 10,000 CHECKERS COST MAJORS $4,000,000 An indication of the cost of checking percentage playdates of motion pictures was presented the industry early in January when a Motion Picture Daily survey estimated that a total of $4,000,000 was spent by the eight major companies annually for that activity. The publication estimated that Warner Bros, and Metro-Goldwyn-Mayer each spent $750,000 a year, and that the cost of Ross Federal Service, Inc., for the other companies approximated $2,500,000 annually. The total number of playdates checked was said to be 450,000 a year. $5 to $7 per day. Although this would indicate a total outlay of about $30,000 daily for checkers alone, it is pointed out that the majority of them will be employed part time only. An initial budget of $500,000 has been provided. With the physical operation of Confidential Reports under the direction of Mr. Levin, the personnel, including five district managers, supervisors and branch managers, will be selected from outside the industry for the most part. Mr. O'Connor will continue his duties as vice-president of Universal. Other executives, those who will devote their full time to the work, include Harold L. Groves, field director operating out of the home office ; Jules Willing, director of personnel, and Harold Saxe, comptroller. National headquarters will be maintained in the RKO Building at 1270 Sixth Avenue, in New York. Levin Requests Industry Cooperation in Venture Expressing the hope for industry cooperation in the new venture, Mr. Levin said: "Millions of dollars of business transactions each year depend upon the accurate and impartial reporting of theatre receipts. It is the aim of Confidential Reports, Inc., to render, confidentally, checking reports, so as to provide the distributor and exhibitor alike with a sound and objective basis for the conduct of their business with each other. We anticipate the good will of the entire industry in achieving this purpose." The aims of the new service would be discussed personally by Mr. Levin in conferences with leaders of the various exhibitor associations in the near future, he said. Chicago Censor Board Rejects Monogram's "Dillinger" The Chicago Censor Board has rejected Monogram's "Dillinger" and classified Columbia's "I Love a Mystery" for adults only. Twentieth Century-Fox's "Hangover Square," originally given an adult rating, has been approved for all audiences by James Allman, Police Commissioner. Magill Testimonial Held Mort Magill, United Artists branch manager in Philadelphia, was tendered a luncheon at the Ritz Carlton Hotel there March 5 by the Motion Picture Associates in recognition of his recent promotion to the Philadelphia post. Republic's Net Profit for Year Is $672,429 Republic Pictures showed a net profit of $67, 429 for the fiscal year ending October 27, 1944, a cording to the company's annual financial repoi This compared with $103,020 for the previous yea Inventories totalled $7,106,214 and current asst in foreign countries amounted to $348,165. Ca on hand was $686,913. Total current assets we 18,405,763, and total liabilities $8,021,730. The company's consolidated statement of incoi and profit and loss for the fiscal year is as follow Net income from film rentals and royalties Less amortization of film costs based upon Company's experience $14,555,925 9,009,881 1,319,623.83 121,737.98 226,107.57 20,951.44 6,500.00 12,885.42 4,208,41* Net income from film rentals and royalties after deducting amortization Net income from trailer and and other royalties, accessory and print sales, etc Gross operating profit.. Selling, administrative and general expenses $2,500,612.00 Advertising and publicity expenses Taxes (ther than $227,695.65 added to production costs) . . . Interest .-. Loss on foreign exchange Provision for bad debts Depreciation (other than $77,873.94 added to production costs) Net income for the year ended October 27, 1944, before Federal income and excess profits taxes Deduct estimated Federal income taxes, $345,000.00 and excess profits taxes, $530,000.00 Balance transferred to earned surplus Consolidated earned surplus, September 3, 1943, to October 31, 1943 Consolidated earned surplus, September 3, 1943, to October 27, 1944 Net profit of Consolidated Film Industries, Ir and its subsidiaries for the fiscal year ended E cember 31, 1944, according to the annual repo was $4,692,238. Total current assets amounted $9,588,507; total liabilities, $1,660,078. Inventor were $6,717,513. Trade acceptances, notes, lo? and accrued interest receivable due from Repub Pictures and subsidiaries amounted to $5,206,6 Dividends declared and paid on cumulative p; ticipating preferred stock were $400,000. 1,444,40! 875,<XK 569,40! 103,02( $672,42! George Black, Comptroller Of Rank Circuit, Dies George Black, comptroller of General Theati Corp., J. Arthur Rank's music hall circuit, d March 6 in London following a long illness, was 54. A former leading exhibitor in Englan north counties, Mr. Black was best known for viving vaudeville after the general theatrical slu in England in the early 1930's. He joined the Ra organization in 1929. His father established c of the first permanent motion picture operations Britain. Pvt. Lawrence Henderson Pvt. Lawrence Henderson, formerly emplo} at Paramount's Albany exchange as a shipp died as a result of wounds sustained in action Germany. He was 18 at the time of his enlistme 18 MOTION PICTURE HERALD, MARCH 10. I