Motion Picture Herald (Jul-Aug 1947)

20th-Fox to Heed Expenses in New Plan Scale Deals Further clarification of the recently announced 20th Century-Fox small town and sub-subsequent run sales plan came this week when Andrew W. Smith Jr., general sales manager of the company, told the Associated Theatre Owners of Indiana that under the new policy, 20th-Fox would "recognize the legitimate expense of any theatre in setting up scale deals." At the same time he disclosed that, following tests of the plan in the New Haven territory, it would be applied nationally "very soon." Could Apply to 6,000 He estimated that the rental plan could apply to some 6,000 small accounts. All parties involved in the New Haven tests "like" the new policy, he stated. The New Haven experiments were supervised by Ray Moon and Edward Callahan, sales executives, with the cooperation of Benjamin A. Simon, New Haven branch manager. Details of the small-town sales policy to he adopted by 20th-Fox were first disclosed try Mr. Smith at the New Jersey Allied convention late in June. He said at the time that it could send percentage rentals as low as -1,5 per cent and not beyond 40 per cent for problem theatres and sub-subsequent runs. The plan, when first announced, provided that exhibitors in these small runs would play a minimum of two and a maximum of five pictures on a percentage basis with the rest available on flat rental. The plan did not, however, include roadshow films like "Forever Amber" and "Captain from Castile." Mr. Smith's clarification of his plan to the ATO of Indiana was contained in an answer to a letter written by Trueman T. Rembusch, president of the Indiana Allied affiliate, to Mr. Smith and published in the unit's bulletin. It posed two questions. First, will 20th-Fox recognize legitimate expenses of theatres and refrain from setting percentage of the gross ceilings upon items as rent, home office expense, managerial salaries, executive salaries, etc. or will the company follow its former sliding scale policy of placing percentage of gross ceilings on legitimate theatre expenses ? Sees No Formulas Needed To this Mr. Smith replied that 20th-Fox would recognize the legitimate expense of any theatre with no formula required which establishes the percentage of the gross for items such as rental and salaries. To the second question — "Does your proposed plan at the 40 per cent figure convert the deal to a straight 50-50 deal?" — the 20th-Fox sales head said that this was not so. "After we hit the 40 per cent figure, the plan states that we ought to have 40 per cent of the gross up to that point and 50 per cent of the gross over that point." Exchange Employees Ask Earlier Wage Talks With Loew's, 20th-Fox, United Artists and Columbia having set July 25 as the starting date of negotiations for wage increases and improved working conditions with Local 109, Screen Office and Professional Employees Guild, a "serious situation" exists since the present two-year contract expires August 1, a union spokesman said this week. The union presented its demands for a 30 'per cent or $10 weekly increase, a 35-hour week, and improved seniority and grievance machinery to the companies in midJune. More than 100 exchange employees are involved. Loew's 40Week Net $10,904,821 A net profit of $10,904,821 after taxes and minority interests' share was reported last week by Loew's, Inc., for the 40-week period ended June 5, 1947. This is equivalent to $2.12 a share and is comparable to the $12,579,245 net profits, or $2.47 a share, for the corresponding 40 weeks of the previous year. Following is the comparative earnings statement for 40 weeks, subject to year-end audit : 40 Weeks 40 Weeks Ended Ended June 5, 1947 June 6, 1946 Operating Profit including wholly and partly owned Subsidiaries, after Subsidiaries' Preferred Dividends $34,166,052 $28,926,576 Reserve for Contingencies 2,500,000 3,800,000 Reserve for Depreciation 3,020,638 3,069,952 Net Profit before Federal Taxes $18,645,414 $22,056,624 7,141,066 8,886,113 Net Profit after Texas $11,504,348 $13,170,511 Less Minority Interests' Share 599,527 591,266 Loew's Incorporated Share Net $10,904,821 $12,579,245 Per Share— Common Stock $2.12 $2.47 For the twelve weeks ended June 5, 1947, gross sales and operating revenues were estimated at $43,371,000, compared with $45,754,000 for the same period last year. Cut Expense to Reduce Taxes, Folsom Urges Washington Bureau A reduction in Government spending as a means of reducing taxes which, if they remain frozen on their current high level, threaten "to kill off all incentives" spurring industry progress, was recommended last week by Marion B. Folsom, treasurer of the Eastman Kodak Company, speaking before the Joint Committee on the Economic Report. Technicolor Sets Dividend The board of directors of Technicolor Motion Picture Corporation announced Tuesday a dividend of 25 cents per share, payable August 15 to stockholders of record August 4. Church Group Protests to Rank On "Narcissus" J. Arthur Rank's production, "Black Narcissus," dealing with an abnormal community of Anglican (Church of England) nuns, has drawn a protest from a group of Catholic priests, Brothers and Sisters who have written to the producer that Mr. Rank must make it "crystal clear" that the picture deals with a "definitely unique case" and that "a failure to label this mevie's plot as abnormal and singular would deal a serious blow to the cause of Sisters' vocations. . . ." The letter was signed by members of a special committee appointed by the Sisters' Vocation Institute held this week at the University of Notre Dame and copies were sent to Nate J. Blumberg, president of Universal-International, which is to distribute the picture in America, and to Eric A. Johnston, president of the Motion Picture Association. "Realizing that the ordinary audience will, in all likelihood, accept this story as typical of all nuns," the letter read, "we come to you not to censor, but to seek clarification and reassurance. "We hope your explanation will not be that these are Anglican nuns and that therefore Roman Catholics should not be offended. Such a reply would be in bad taste, ungallant, and derogatory to the religion of many of your countrymen; it would, moreover, be wholly inadequate because the average moviegoer will make no such distinction." The letter also extended an invitation to Mr. Rank to visit the University of Notre Dame, where he would find "reasonable men, sympathetic toward your avowed intention to produce outstanding motion pictures and happy to discuss with you this important matter of the proper handling of religious themes." "Narcissus" Opens Aug. 13 The American premiere of J. Arthur Rank's Technicolor picture, "Black Narcissus," starring Deborah Kerr, will be held at the Fulton theatre in New York August 13. Provisional Agreement Set For Technician Exchange London Bureau A provisional agreement between the International Alliance of Theatrical Stage Employees, the American theatre union, and the National Association of Theatrical and Kine Employees, the English union, was announced here Tuesday for the reciprocal exchange of technicians and other union members between the U S. and Britain. The agreement must be approved by the unions' executive -councils and by appropriate Government departments. 16 MOTION PICTURE HERALD. JULY 26, 1947