Variety (Jan 1933)

4 VARIETY PI € T U R E S Tuesday, Janiiaiy 3, 1933 Columbia Has Lowest hoduction Cost for Feature at $175,000 with Metro Tops at $450,00a-Others Too In the elements of time and basic cost the Industry seems to be find- ing it cannot turn out major first run pictures at an average cost of $200,000. Producers, after many conferences, hold. that even if the 'western' feature, geared way under $100,000, were Included In the gen- eral apportionment, stlU the av- erage budget would not be whittled to $200,000. This goes for major production as a whole. According to a chart, un- officially compiled by production heads, average first run picture costs, according to the company which produces them, range now from $176,000 to $460,000. In this Columbia has the lowest overhead while Metrp-Goldwyn- Mayer continues as the highest. Warners Is second from the bottom, with an estimated average of $i200,-, 000 for each feature. Universal is third with a claimed average of $220,000. Foxr Par-Radio , Fox and Paramount. are listed fourth and fifth, although the av- erage' for both Is reported to be $26O,a00 and undet. Radio Pictures Is sixth, with the general run of budget placed at $276,000. Disruption In the Btudio opera- tion of Fox and' Radio earlier in '32 Is held largely responsible for the cpmparatively high status of their budgets. The same, it Is pointed out, Is virtually true of Paramount. Changes of any permanency are expected to be reflected in 1933 pro- duction costs. £iveh with' these, however, the! industry's average will be the other side of $200,000, It Is claimed. McVICKERS LEASE EXPIRES B&K Continues in House With Par Feature BANK ORDAINS 3D FOX-WC CUT Hollywood, Dec. 31. Fox-West Coast have given their employes a third salary cut since Novelnber, 1931, and the second since the Skourases took over the chain last February; New slash is from 6 to 20% and is effective'Jan. 1. It Is understood that the circuit will effect a saving of around $7,600 a week by the re duction. Story here is that the new econ omy was inspired by L. A. Woolams of the Chase' National. Scale of cuts calls for a reduc- tion of a 6% cut in salaries up to $29 a week;' 7%% on salaries up to $74 a week; 10% up to $126; 12)^% up to $200; 16% to $300 and the maximum cut of 20% on pay envelopes that hold $600. Chicago, Dec. 31. McVlckers opened yesterday with Pararaount's 'The Devil is Driving.' No decision as to the destiny of the house. Continuance Is on a week-to- week basis, although the Beeandkay lease expires today. NAME STRENGTH SEEN AT 2 PARS Topping itself on a. year of stage show attention for both New York and Brooklyn Paramounts, Publix is convinced on final week of year that in-persoh draws are .equaling «r surpassing draft at b. o. of picture. Parjtly because the habit's been built at these two Met N. T. houses, part- ly because of the shows Christmas week. With "Vanities' in New York gross reached $60,000, 'while in Brooklyn Eddie Cantor and George Jessel rkn up that house to its highest during all of 1932, $63,000. In comparison with other Publlx houses over the entire U. S., regardless of Xmas week, the New York-Brooklyn Pars are on top. Picture, 'Madame Butterfly' (Par), with Sylvia Sidney the name, at both houses isn't being credited as much for the eastern business of the two deluxers as the stage attrac- tions and the advertising campaigns which stressed the* rostrum dis- plays. ' On the advertising Publlx ran $2,- 000 over the usual budget. 'Vani- ties' show stood chain $12,000 on week, while Cantor and Jessel also cost $12,000. Music Hall Grosses Radio City Music Hall Is listed with the Broadway legit shows and theatres In the legit section. Usual estimated gross and comment. LOEWS CUTS TO 25c TOP IN PROVIDENCE Lowdown on the Newsreels By Tom Waller Providence, iJec. 31. Loew's State theatre threw a bombshell into an already chaotic theatrical situation here last week when it announced a cut of 60% In scale. New prices will go into ef- fect week of Jan. 6. The top will be 26c as compared to 65c. The announcement, made In big ad splashes, was met with criticism by local exhibitors, who claim that price cutting Is not the proper solu- tion for boosting grosses. Leading exhibitors have asked the Rhode Island Association of Theatrical Exhibitors to call a meeting to con- sider steps meeting the situation caused by the slash. Technocracy Crashes Hollywood, Dec. 31; With the Country now all het up over the subject, Bryan F6y has come across the line flrst with a picture on 'Technocracy,' a one- reeler turned out In six days. Film gives the lowdown on the subject, with explanatory remarks by Ollmore Brown, of the Los An- geles 'Record,' said to be an ex- pert on the subject. Will probably be released through Columbia. <. OOBSON'S BAITKHEAB PLAY Hollywood, Dec. 31, Andy Lawlor leaves Ifdr New York Tuesday pext (3), for the un- titleid play in which Max Gordon ^vlll present Talliilah Bankhead on Broadway. The output of a major newsreel for an entire year Is less In cost than the budget for the average single big roadshow feature. Therein lies an economic key which the in- dustry, halving Ignored for years. Is suddenly discovering. It is estimated that the cost of producing 104 issues of a newsreel, Including wastage, is little in excess of $1,419,000. Such a release In- cludes 728 useable clips, or news subjects, with an additional 218 made but discarded and represent- ing a production waste of 30% of the reel's efforts. Virtually every theatre in opera- tion uses a newsreel. Rentals vary from a top, in a few de luxe spots of $600 a week, to a mere $6. It is calculated that the average rental for 16,000 theatres in the U. S. \& about $26. . On this basis the news- reels, which cost under $10,000,000 to produce in toto, according to this figuring, are garnering $19,600,000 at America's box offices. With such mathematics, uncov- ered here publicly for the first time; it is readily understood why ^he rest of the film industry, if it could be geared on tha same basis of costs and intake, could laugh at depr$d-' slon. f1,600 Per Average Clip Newsreel costs, as estimated h'(^e,' do not consider the elaborate as- signment where five and six cain^ eras are brought into play, fhe average assignment is covered with a single' camera and, it Is with this, as well as other expenditures in mind,, that neWsreel experts arrive at $1,600 as the cost of the siveri^ge clip, or individual story. Wastage is necessarily great. The average clip In the raw is 1,000 feet. Here again there are exceptions where occasionally enough film., is exposed . ;o satisfy a featur^'lengjth production. And of that full reel for each' average clip less than 200 feet ever gets Into the released pro- gram. More often the 1,000-tooter Is shaved down to 90 feet by. the time. It meets with editorial ap- proval for public perusal. Excess footage, however. Is not considered ^travagant by newi^feol people. ' It takes about 60 feet ^ of negative before the film reaches the required camera speed on both'ends. Production Costs Not Chopped PREVIEW TIFF OUSTS HUES CONNOIXY, FOX Hollywood, Dec. 81. Fox sneaked in a preview on •Face in the Sky', over which Miles Connolly, associate producer, was discharged last week by Winnie Sheehan. Connolly said the picture was not ready for a look-see, with Sheehan thinking otherwise, and the whole thing ending in an argu- ment. The director and his execs took the print Friday (29) without a the- atre in view and put it on the screen at the California, Huntington Park. Previewed thus, without background music, and with the house organ supplying off-screen synchroniza- tion, the audience was given an ex- cuse by the management to the ef- fect the studio wanted to see where to spot tunes. This is the flrst time a preview of this type has been attempted. Kruger's Col Test Hollywood, Dec. ^1. ■Otto-ICruger arrives here by plane frdm New ' York Tuesday (3) to make a t«lBt tor Columbia. ■ 'Prospective-ehga^rement arranged by sLeo MiQirrisoa. , Hollywood, Dec. 28. Trying to knock dollars off pro- duction costs of pictures has proved a bigger task during 1932 than ex- pected. The year started with quite a furore about that The order of. the day was 'production costs must be materially lowered to meet the. fast falling theatre grosses,' but as the year's end's check-up looms it Is apparent that as a whole, taking the. average cost of major production into consideration. It has been a los-. ing .fight. . i There has been savlpg in £ome directions, but considering the ratio between production costs and gross- es in 1928 and 1929 .as .compared, with the ratio between costs and grobses o%, 1932, there is still a w(de gap to surmount before studio coits, can be geared to a figure in baladce "with-theatre returns. Due to a more careful selection of story material, and a closer supervision on flims in production there have been fewer pictures shelved. Yet, a few halve reached that destination, with no hope of getting a cent back for ^e more than $1,000,000 in the red from this one cause. An estimated $4,000,000 has been saved the studios iu the lowering of the purchase price of book and stage material and the halting of the buy- ing indiscriminately of material. General salary cuts early in the year helped to lower some of the ex- pense. More efficient .methods in the mechanical and tschnlcal ends also assisted In reducing the bogey- overhead. Average Unchanged While a few major pictures were brought under the wire at. what, measured by the past, could be con- sidered surprisingly low cost, equal- ly surprising were Alms the cost of which was way high for the result obtained. The monotonous average appeared to be kept .up, despite the studio execs shrieking for economy and efficiency. Illustrative ot the gener^^ attempt By Fred Stanley to make cheaper pictures was Metro's stated intention to produce a series of five pictures for $200,000 or less. Studio was enthusiastic for the idea but when the quintet were finally completed it was found that none had come under that figure, and with at least two going beyond $300,000 or $400,000. A general move 1^ on to reduce the personnel payrolls of the. vari- ous, studios to .affect, mostly, the acting, writing and directing talent, but, as its stands at the close of the year,, the contract lists are just as topheavy as ever. .Jn< this direction some .-studios are giving fewer.term contracts to writers and . directors. They are economizing > by -paying the former on a :week-^to-:week l^sls and the latter paid oa a- straight picture' arrangement^ ~ yet withal there iare still Instances of directors being on a studio payroll for month after month without going on a set. Same conditions exist in the case of some acting talent. Lower-Priced Talent There has been considerable cut- ting during- the yeur In salaries to freelance players, and an attempt is being made to seek new talent at prices considerably lower than those paid in the iiast. Cases of prospec- tive starring timber going under long-term contracts at starting prices of $76 and $100 a week are not uncommon, but it is too early to see whether this la going to work out Metro's Overload Contrasting these attempts at economy are the existing contract lists of the several. majors which show that at Metro to make that studio's 42 pictures a year are. 16 supervisors, 19 directors, 80 writers, 17-'Stars- and 40 feature players. At Paramount,. i)roducing the same,: are 19 directors^ 64.writers and 42:play- ere. Fox has seven-associate pro- ducer^ 19 -direetersi^^fli. writers «ndi 36 players. Warners' list contains four associate executives, 16 dire'c- tors, 23 writers, 17 stars and 21 fea- tured players. Radio lists eight associate producers, nine directors, 18 writers and 33 under acting con- tracts. .^Universal carries seven as- so(;Iate. producers, 19 directors, 18 writers and 86 players. Despite these names under , con- tract, all studios from time to time bring, in outsiders while contraotees rest Some savlhg has been seen in the rewriting of existing contract^ of heavily ^aid name draws. In '^tiite a few cases when the option perk>d expired' calling for higher salaries the player or director has agreedito. continue "on at the same figure, while in .spme instances the n^e^rlt^ ten contracts has called for, jipwer salary. Under the same economy scheme, there have been several cases of players being contracted- beyond the usual 40-week period to agreements calling for straight ser^- vices for two years, to avoid price- raising option periods. Expensive Retakes Despite the various moves in the direction of economy, the fact stands out that the average cost per picture has not been materially low- ered. Much of the reason for this can be laid to the now almost gen- eral tendency toward retaking o^ a feature Immediately it is flnishjed. This was once a practice of hut ene studlb^Metrd. Th*re' is scarcely a major studio that hasn't during the past year had .its share of retaking and remaking afte^ previews had showed up |he pictures, as lacking in box ofl^ce appeaU Whole sequences have b^en refilmedi and in several , noteworUiy cases; pictures have been'entirely remade,>'to -^finally reach the theatre ,wlth .ft. mU double and moce .ijhe oBlgiDfO: J>u4eflfid coat, r ... w Then at least 10 shotSi including th« various angles, must be made of th« person during an Interview whlcli takes, quite frequently, a couple of hours to make and yet which un^ ravels on the theatre screen in less than a few minutes. It is the rejected clips which con^ stitute real waste, again as fre» quently unavoidable. If editors caij get seven good clips out of 10 storioq they are satisfied. So much for the financial side. The B. O. Values The prestige of newsreels Is un^ questionably higher right now than it ever has been; Where even less than two years ago many prominent people In varlctus walks of life shied from the camera^ regarding such publicity as undignified, now the reels have cracked what has -heen considered their toughest nut—4 society. Elxhlbltors in .many parts of the country are awakening to the value of playing up an important news event. They are finding, accorijlne to home office reports, that like the headline sells newspapers so is this additional exploitation of a hot screen, event selling more seats. More is required of the newsreel cameraman than perhaps any other individual in the film Industry. In the final analysis he has to be his own director, supervisor and pre« view audience.. Although, it is true^ there is a contact'men who handles the arrangements, • much as the manager of a star^ and, in some in^ stances, he also advises the cameran man of what he believes would pro* vide a good angle. But in the final analysis. It is up to the cameraman to decide. What constitutes news for the screen cannot be viewed from the perspective a metropolitan city edi^ tor would use. After all, there ar4 only 14 clips, or stories, in the week's releases. Strangely, reelmen admit an ab«i horrence for bromides and yet de« Clare they are forced to use theml because of public routine and ex« pectancy. Other than having a turkey.ollpi and a Santa Claus there are a lot of stock stories which clutter up the reels every yean But the blessing' of the hounds, as well as new sno^ on mountain tops, must be re-used with each season. It is estimated that there is alf least one bromide for every news* reel week in the year. HAY OFFER HOLDERS ih mm 1ORPH Chicago, Dec. 31. Offer of an exchange of stock ooi the basis of 2^: shares of RKO stock for each share. of Orpheum pre* ferred.has been offered by RKO to the holders of .60,000 shares or thereabouts of the latter stock, ini approaching a peaceable solution to the disgruntled attitude of the Orph shareholders. The preferred holders in Orpheuni are scheduled to meet in Frlspo Jan. 8 or 9, to decide what to do ai)out it. They are,^understood to have asked for a ppstpohemeht until Jan. 16, which RKO thus far l^as declined to grant _ .. Charles Aarons, representing the stockholders' .committee. of those who seek to protect the interests in ,the Orpheum Circuit which they as- sert are Jeopardized by tlKO, re- fl^ses tP .m<^c . any statement' re> gardlng the progress of develop* ments. He declined to state, When ,asked, whether he had submitted or would submit any propositl6h td RKO. Women Holders Aarons Is a representative of l£ committee of seven disgruntled holders of the preferred stock of the old Orpheum Circuit, which was taken over by RKO from the Keith organization. Mrs. Caroline Kohl is not a member of this committee, al- though one of the largest holders ot Orpheum stock and banking wItU Martin Beck that way. As widow of Edward Kohl, of the pioneer firm Of ICohl and Castle, Mrs. Kohl is still a hea-vy holder of Orpheum securities. At one time! she was on the RKO board and last year when the company stock hold- ings were reorganized asked for ft voice- in the management of th^ company which Wasn't granted. ' Her former- attorney, George Schine, is now'employed by RKO ill the real-.estate department