Motion Picture Herald (Nov-Dec 1948)

Columbia Profit In Year to June Off to $565,221 For the fiscal year ended June 30, 1948, Columbia Picture Corporation's net profit was $565,221, equal to 40 cents a share, compared with $3,707,000, or $5.33 a share, in the previous fiscal year, the company reported last week. In the annual financial report, Harry Cohn, president, attributed the drop in earnings to numerous factors affecting the industry. "I cannot minimize the falling off of theatre attendance in the United States and Canada, which has affected not only your company (Columbia) but other companies of the motion picture industry.'' He did not estimate the percentage of drop in attendance. Management has had to give attention to higher labor and material costs in picture making, Mr. Cohn added. However, overall film production costs have been materially reduced for new films about to be released, he said. Columbia's income, expenditures and profits follow : 1948 1947 1946 *Earned per com. share $.40 $5.33 ' $5.22 Gross income 46,898,785 4S,832,201 46,510,910 Oper. profit after amortz. etc 1,477,889 5,972,678 7.265,620 Net after interest, etc. 1,205,221 5,806,541 7.000,490 Federal income tax. .. 640,000 2,100,000 3,550.000 Net profit 565,221 3.706,541 5,450,490 * After preferred dividend requirements. Restrictions on the collection of foreign earnings has also adversely affected the company's profits, Mr. Cohn explained. Prior to World War II almost 30 per cent of gross revenue came from abroad, he continued, and foreign revenues accounted for an even higher percentage of the company's gross revenues in the fiscal vear ended June 30, 1947. Chicago Censor Rates Three Adults-Only The Chicago censor board reviewed 89 films during October and gave adult-only classifications to "The Snake Pit" (20th Century-Fox), "Kiss the Blood Off My Hands" (Universal-International), and "Mistress Temptation" (Aztec). "The Merry Chase" (Super-Italian) and "Sinner" (Aztec-Mexican) were rejected by the board, which also cut 14 other pictures. Dumont Declares Dividend The board of directors of the Allen B. Du Mont Laboratories has declared a dividend of 25 per cent for the year on its outstanding shares of Class A common stock and Class B common stock, payable December 22, 1948, to common stockholders of record December 1. A regular quarterly dividend of 25 cents per share on its outstanding shares of five per cent cumulative convertible preferred stock also has been declared, payable January 1. Southern, Central Divisions Set Up by Altec Service Altec Service has completed the establishment of southern and central divisions, completing its series of organizational changes which began last month with the creation of an eastern division, H. M. Bessey, executive vice-president, has announced. Changes werex effective the first week in December. The central division, embracing the former Chicago and Dallas district, with headquarters in Chicago, has R. Hilton as division manager. Field offices are in Chicago, Minneapolis, Kansas City and Dallas. The southern division, taking in the former Atlanta, Cincinnati and Detroit district, with headquarters in Cincinnati, has field offices in Atlanta, Cincinnati, and Detroit. M. G. Thomas is division manager and F. B. Mewborn, business manager. To Discuss Television Problems at Clinic A wide range of television problems will be discussed December 8 at a one-day Television Clinic of the Television Broadcasters Association at the Waldorf-Astoria in New York. E. P. H. James, vice-president of the Mutual Broadcasting Company and chairman of the clinic, said speakers at the session would include Robert L. Coe, vice-president and station manager of WPIX, the Daily News station, New York; Robert P. Myers, assistant general attorney of NBC; Myron Kirk, agency television head; Leonard H. Hole, general manager of DuMont's WARD, and Hugh M. Beville, NBC director of research. The annual awards for outstanding contributions to the development of television will be given at a luncheon. Video Society Holds Panel Discussion Large screen television, advertising, network operations, production and distribution were the topics of six authorities Wednesday as they met for a panel discussion at the American Television Society's film forum. The meeting was held at the Auditorium theatre of the Museum of Modern Art, New York. Among the experts were Donald Hyndman, past president of the Society of Motion Picture Engineers and chairman of the Theatre Television Committee; Winslow H. Case, senior vice-president of Campbell-Ewald, New York, Inc. ; William S. Hedges, vice-president in charge of planning and development at the National Broadcasting Company, and Lee Cooley, television director of McCann-Erickson, Inc., New York. Award for "Babe Ruth" Roy Del Ruth Productions has been awarded a Certificate of Commendation by the Christian Athlete's Foundation, Beaufort, S. C, in recognition of its production "The Babe Ruth Story." Joseph Kaufman, associate producer, will attend the foundation's Baseball Awards Banquet in Sebring, Fla., December 15, to receive the certificate in behalf of the company. Clark, Hargrave Praise Decree In Eastman Case With Eastman Kodak now out of the Government anti-trust suit against Technicolor, Inc., by virtue of the consent decree signed by Judge William C. Mathes in Los Angeles Federal Court last week, both Attorney General Tom C. Clark and Thomas J. Hargrave, Kodak president, had words of praise for the settlement. A study of the decree terms shows that the Eastman Kodak Company now has the burden of proving the reasonableness of the royalties it proposes to charge on new color film patents. The judgment lists 13 patents in the color film field which Eastman must license royalty free to any applicant. Another 14 are listed on which it can collect only an amount equal to the royalties it had to pay to the patent holder. The decree, signed in a surprise move by Judge Mathes one day after he had rejected an earlier version, further provides that Eastman must license patents applied for or issued in the next five years on a "reasonable, non-discriminatory royalty basis." Should there be a disagreement on royalty terms, the matter goes to the Los Angeles District Court for a decision, with the burden of proof on Eastman. Commenting on the decree, Mr. Clark said it would "open the color motion picture industry to competition." The settlement does not affect the pending Government case against Technicolor, which will be heard January 7, 1949. The date for trial will be set following those hearings. Technicolor refused to be any part of any consent decree, declaring it had not violated any laws. Mr. Hargrave, in a statement issued in Rochester, N. Y., said he was "gratified that this suit had been ended without the burden of trial and without any finding that the company had violated any laws." He stressed that the licenses to be granted under the decree were Kodak patents and "are not patents involved in the Technicolor process." The agreement would have "no adverse effect upon the present or future business of the company," Mr. Hargrave stated. Jewish Philanthropies To Honor Mayor O'Dwyer New York City's Mayor William O'Dwyer will be honored December 14 by the executives of the amusement industries when they hold their annual luncheon at the Hotel Astor in behalf of the Federation of Jewish Philanthropies of New York. Fred Schwartz, vice-president of Century Theatres, is chairman of the amusement division of the FJP. Motion picture exhibitors, producers, vendors, music publishers, concessionaires and representatives of the legitimate theatre and radio have been invited to attend the testimonial luncheon. MOTION PICTURE HERALD, DECEMBER 4, 1948 3!