Variety (Feb 1946)

tTmlnestTay, February 6, 1946 ■•ICTVRES EXHIBS GROGGY ON SALES TERMS Wangtf Raps Ostrich Act : Hollywood, Feb. 5. Walter Wanger, who piodClced "ScaileU Stieet' and gOt the oUciy from tlic New York stdte eensois on joloasiug the pic aftei some tioUblo, IS one for keeping the scieen dean but, he adds, "tho loi- cisn pi'cturc-makeis lace life moie realisticjlly Many Bnti'.h pic- tLues come over full of chattel about mistic-scs and tjie like, and the French, German and Russian films tor 'long likewise treated with such subjects Irankly and openly ■The publ'c today likewise as more liberal, and ifs a bit silly some- times ,0 do an ostrich act when it comes to tieating with fiank themes " One Pic Per Corp. a Fading Habit Under New Excess Profits Tax Setup FORGED PLAYING IConnnercial-Pictiires Group Promotes Repeal oC the coipoiato excess-1 profits toN L)v tho Revenue Act'^ ot 1945 will lead ihib jcai to end ot the piactice ol iorming sepaialc coipoiations bv indies foi the pio- duction of nach pictuio, film tax ex- perts believe Siiigle-pic coipoia- tion habit tlouiishes widely on the Coabt because piohibitively high in- come tax 1 rites, on one hand, make immediate piolit-lakiiig costK, ulule i>\cebs piolils taxi's on the othci, stimy 'wail and see' tactics Removal ol excess profits tax now makes it .possible for producers to garner and accumulate the profits on a numbci of (Urns, and balance sains agdinst losses, under paient coipo- lation setup t.rxmen avei ChaiiULHl situation undei '46 tax 'aws peimils company to postpone pavment ol profits to individuals,mdohiutely un- til income tax lates case Regulai coipoiation tax of 38^< on $50,000 annually oi over will be sole bui- elen. PrcMoufly, holding tactics were penalized by the- o.xeess-piofita tax which, combined with the regu- lar corporate tax, chopued oil as much a,s «0'.. ot company accumu- lated earnings. . Solo corporation device was dreamed up by tux legalities so pror ducers and .stars could, on the legit, take a stock interest in a film, sub- sequently surrender the stock and pay a 25'i capital bite lathei than income tax rates running as high a.s W, Undei the piesent system the pictrtre is ev.iluated as a polential grosser at the time ol the slock swap viith the dilleiencc between cost ot pioduclicn and tlio estimated gross as a base'for payment of the capital gams tax Piofits exceeding the evaluation, if any, are charged up as personal income. Sole requirements to meet the test are retention of the stock for at least six months betore ^ the swap and dissolution of the cor- poiation on closing .the deal, Lilcelihood is that closed film cor- porations will accumulate profits be- cause federal surtax rates on in- come, though lower than m '44 and '45i are still high. Tax sked calls Jor payment of $G3.000 on $100,000 earnings; $145,000 on $200,000, anci $230,000 on $300,000. Bile was even gieater in past two ycais vvhoji $G!),- 000 federal tax was required for first $100,000 with similar increases all along the hne Revenue Act. oC 45, applicable m '46, diops the sui ■; tax late by 3',, and allows a cicdit against the tax of 5^ foi piompt payment. Neat Switch In the battle over to dub or not to du!> U S pi\, foi Lalin- Amwean exhibition, a Col iim- bia exhib in Mexico, with a superimposed-title version of a film playing opposite anothei company's dubbepl pic, did a switch m his advertising. He pUigged: ; . . "Come in aiid .hear , the actors , in the ORIGINAL English Live Action-Cartoon Combo May Be M-G Series; Trial Pic Set A 50-minule fcatuie .stanmg Maigaret O'Biien, incorporating live action-cartoon combination, will be an M-G foieuinnci to a possible, series on the new technique. Fred C. Qiiimbv Melio shoits chicl s ud last week. A iwo-reel series using the combination, of which three or four a year will be produced, has already been started. Initial film, has been completed Concentration on the combo technique, said . Quimbv,! stems fiom, successful lesults of the', eight-minute sequence uised in' M-G s 'Anchois Aweigh' in v hich Gene Kelly did a dance with ani- mated characters. Continuation of such productions, said Quimby, will largely depend on reception, as the teclinique involves heavy expense "Ancliois Aweigh" sequence, which was rush-job rc- que-sted of animation department after tlic film was completed, took three monttis to finisli, with a crew working night and day. I Quimby. who had been attending ' sales confabs with W. F. Rodgers on M-G shorts, program for the coming season tiained to the Coast Fii' day (,1>. TIME BIG FAGIQR ■ Witlv i "business; at tte', IjoxofTlce continuing lush ;but with uncevtamty oil hctvt long it will last, distributors, gehcrally, are virtually shooting for the' iHibon on filnv deals and Asking terms on a long list ot pictures which have the average buyer, groggy.' What appears likely to become a general policy on top pictures is loreed playing time, particularly the demand that a part of the contract call foi double the amount ot dating ordinal ily taken In addition dis- IriDutor.s aio asking for as much as twice the usual advertising appro- pnalion on top-percentage films. ■ (Position ol the distributors is ,■ that where they "have pictures : of outstanding quality they aie entitled ta temis m proportion to what the films are capable of do- ing at the boxoffice, and espe- cially m the face of the con- tinued high glosses that are be- ing done by the theatres. , It IS also pomted out that if a picture doesn t measure up to the prices and time agreed upon, the • exhibitor always has re- course to adlustment. There have i been innumerable cases during the past J ear wheie accounts have cleaned up on pictures al , terms, both percentage and flat, , Dial were less than they should , have been sold at, aver the com^ panics,.] ' Manv high-budgetej!s: are being sold smglv such as RKO's current "Bells of St Mary's," on which the company is asking 50% and; extra playing time. In, the case of ' Leave Her to Heaven.' alfio under separate contract, 20th-Fox wants 35 and 40% under the .slidmg-scale formula made popular by Metro, m addition (Continued ,on piige, 12) New Move for Eastern Production Where We Came In \ ,,,'Demise OX the Wiair 'ActiS^ities Committee :,camo gust at the complet'on ot the full cycle, Co- ■ ortJiaator , Frahci s,, Hai'moiT re- maikcd last week. One of the fiist requests leeeived, when the oiganvalion opened its doors, was' "froni a caller W'ho ,■ s$.id:, "This IS Ma 101 Giltaeit ot the Wai Dept Can v(u auange to lun a recruiting tiailer foi us" Last \veek, .as'lKb" moving men, , We,ro working on Ihe WAC fur- niture, HariTKHi sflid. he got an- other ' call: VThis is General Gil- bert ol the War Dept. Can you ; arrange to run ■ a recruiting trailei for us'" JERROLD BRANDT TALKS RKO, UA RELEASE DEAL Jeirold Brandt is reported discus- sing release deals with RKO and u.it.>d Aitists for "Magic in the which he will produce A e^alcade of ladio. film will maik initial production efl'ort of Jen old ^■■•ndt Pi eductions, Inc Brandt le- WKUy was dischaiged from the wavy He IS a son of the late Joe {Jraiidt, formei president of Colum- "lE Pictures. .^^^ has assigned Hal Bock of |i- Hollywood oflice, to assist on 01 n ^iJ^' le'-eareh Brandt is no\^ " the Coast lining up writing and ^<^'ilifi talent ROCK BACK AT U Hollywood. Feb. 5 Joo Rode lotuii-ed to Uni\cisal as "^y exociilivo after .10 years; dii^lHg 1.1 , ""''•"^'S pictuies and did uar ^Mk in England prodw^ ^"Sland Rock ntimeioub comedic;, loi "ttiversal. FOR REP/S UPPED PRODUCTION Hollywood. Feb. 5. After announting last week that studio- wrould halt all production, un- til the labor situation claiificd. Hcrbeit J Yates chauman of the boaid of Republic stated on Mon- day (4) that the Vallev lot would stall seven now featuio hlnis Unit, month and that o\ci $2 000 000 is al- locqted fen- the hiked production slate Mo^e fomos following im- piovcment of tlie laboi wtuation at the studio. One film, "The Insisiblc Intormei," Is alieady undei way and will give the studio eight films at woik, making an alltime high Olhei films will be "Man from Rainbow Valle\ " 'The Ghost Goes Wild," ' M^ Pal Ti ige<"r " '•Twi.sted Cuxle.:' "Earl Carroll's Sketchbook." "Santa Fe Upusirg' and "The Inner Cucle" Loses 300G Time Suit Fideial .nuUc .Tolin W Clancj in Nov Yoilv Thuisda\ (31) denied Time Inc pioducci ot Mnich oi Tunc a dismissal of the $300 000 dama; e action biou.4ht b\ n.in- rnscoietscn loi allejed slancci Time sought dismis-snl on the ••UKinds that thoie was no gonuihc .isi.-iue. ■ . ■ ■ ' . Eni;ebretscn ehar.ges that, m ..a Mot pic distributed in, IS41. films lakon on the Coas| of Gicenland de- picted the plamtiir as a Noiwegian Na/i. Few Grievance Hearings Called Evidence, that n'either exhibitors nor the major theatre-owning pro- ducer-distrtliutors operating under the old consent decree have found it more than occasionally necessary to resort to appeal from local arbi- tration awards in the 32 exchange centers, is strongly indicated by the fact that as of last Tluirsdav (31) only 120 tlioatre cases have come before the Appeals Board of the American Arbitration Assn. , This IS attributed to the amicable settlement of, grievances, mostly on clearance, between independent ex- hibitor complainants and distribu- tors. A vast number of ad]u.stments also have been made m advance ol fihiig of local complaints, thus .saving money in legal fees and, on the part ol distributors, establishing added goodwill Circuits m competition with indie . exhibs against which complaints have been lodged or threatened,: have also compromised m innumerable instances rather than take chances on awards tnat would placie themm a less advantageous position. 20th Sets Releases To Next Jan., 1st Time Pix Set So Far Ahead Twentieth-Fox has laid out tenta- tive releases not only tor the balance of the Guri-ent (1945-40) sea.son, but thiough to Jan 1 1947 This is be- lieved to be the. firist time in history of the. indtisfry that pictures, have, been scheduled so far ahead. Of course- there maY be s,witches or changes in title between now and the end of the year. While other distributing Companies start their seasons Sept 1 each year, 20th has been starting Aug. 1 since betore the war. So far this season, from Aug: 1 through January, 20th has released 14 features; According to its -schedule, there will be 15 addi- tional releases, not counting-two re- issues, for the balance of the current (1945-46) season. Beyond that.,ten- tative plans call for two each in August and September, three in Oc- tober and two m both November and December, for a total of 11 on the first five months of the coming (194G- 47) season. V/ith most distributors, releases are set no more than two motiths in advance. MONO GAINS TOP 372G; MOREYMMEDVEEPEE Steve Bi'oidy. Monogram prexy. this week announced thai the coi- poration's consolidated -net pi'btits. wcie $372,028 foi the 20 weeks ended last Dec 29 as awirst net piofits ol 91207 400 m Goncsponding period ,ot the pi-evious year: Th's is-after 'all charges but beEorc ,-fex<;s. .■ After ,in-oYisi{)n for : a, fec!-crffl , jt)cb,me^ a excess pi-otiis-'t'axdJV.; the ^ net 'prtiiit,. u.s S181 221 as compaicd with SS'i - 2()2 ill tire same pedod uf 1944, s [ Bv.iif'y anhoUnced that at a special , mceiinK ot ihe,directorate held jn-j N. Y.. IVfon. (4 I, approval w'ES given i ,f()V acqr.ifing 100"; interest in' tt-e ■ ,St. Lou','- escliange afid' a coiUroUin'; | interest in the one in CinciiWiHi. M., i Ed,v.-ard , iVIorey, v Siss'iSQiatod, with ! 61 Jwtcrnatiiina Jloiio- Uiv year's:, wa's 'elected vocpCc al tlie ipceting He sLiU will he.d- qu.u tei 111 ls'> y. WARNERS SETS PIX BEFORE BROADWAY In addition to "San Antonio" which recently completed an encase- ment at the Stiand on Broadwav Wainei Bios foi the fir.st time since the wai IS booking othei leading pictures into various situations ahead of its own Broadway show- cases, the Strand and Hollywood With other disti ibutors, the vast maiority of features are given out- of-town elating before playing in New York Pic-ieleaocs in N Y aie -the genei'iil excepiion. Policy tit' Warners-in taking out- of-town booki'n;!S Khead of N. >Y. openings is-.'said to be in line wtth, the thought of the company to in- cieasc releases if the market can ab.so)b them Too often, long New York runs ha\ o aopreciably delayed engagements vvhich could have gnt: nndei wa> eaiiici cl ewhcic Three, new- AVB feaUircs not yet opened on Broadway w--ivich are being ■ booked ■ irito;,; otherkeys- in advance aie "Thice Stiangeis ' •Cindeiella Jones" and the Biiii=h wai documentaiy "Buima Victoi\,' icleasc ngiit'T to u'nich wcie pui- chasf?<f by the. Gorfipany.. ■ ' ■ . Nc-w, move - tb' :pronio.te; Ne-yV,'York .; as a film pioduction eentei, similai to the ill-fated plans outlined bv • then Mayor Fiorello H. LaGuaida about five years ago, has been in- ' stituted by a group- of commercial film producers.- Group, topped by Stanlej M Neal, Associated Filmak- ; ers prcxv. has solicited Mayor Wil- „ liain, O'ipwyer's, sp.onso.tsliip of the '; move, and Q Dwyer in turn has .. farmed the proposal out to the city s Division ol Commerce for luither eonsideiation. . Plentv of studio space wOl be ! available m New York, acoordHig to ; the , group. Five .studios m the ' G.d.tham areaj. inelUcling Pox,. M6Vi6-r. .',' tone. Soundmasters,: Filmcraft (the old Edison studio). West Coast ard Reeves Sound Studios, are currently booked to 95% of capacity by tho commercial producers: New llRO^i ■Pathe studio in Harlem, m which', Pathe News, documentary, educa*.;; tional and . telavsuonal -films arc ; slated, to he produced, is skedded for completion by March Ifi. and Neal s new $500,000 itudio in Yonkc .s £>'- ready ex-anded for tele-pix produc- ' tion. IS expected to be ready for oc- cupancy by the middle ot June. In v addition, the producers say, the old Warnet-iitiidioiil the-Bronx, presently unoecuDied, .could be renovated with- out too.much cash outlay. Para-^ mount studio at Astoria;, li. 1., is still being used by the Army Sjgnal Coips Point to "House on 9Zd St. ■Indies, who've been making most , of the country's commercial and other non-theatneal pix at the New York studios, point to the fact thiit ■ 20th-Foxs 'House on 92nd Stieet". was shot mostly in New Yorli as/evir- dence that theatrically-successful features can also; be produced here. ; Gradual increase in commercial Ulift i production. m the cast has alreaoy, , given the proposed, venttire its in- : itial inipetus, according to the pro- ducers. . : Questipned: about . the new move-: ment, Saul S'joppa. business niiin- ager ot the Motion Picture Stuc',:!} Mechanics Local 52 (N. Y.), do- ; clared-that much as he'd like to E<je such a venture succeed, he dovbtcd whether eastern production would : ever encomoa.-is more than its cur- renl crop ot commercial pix. Echo- ing N. Y, film industry OiTici,a!,s„ Scoppa said production was too lirmly entrenched on ihc Coast f >r the imjoi.-. to be mtciestcd in mo.'-^ mgi regardless oi what alluring in- ducemcnis were ollered. : , Scoppa predicted, however, that commercial tilm product.-oii wouicl - continue- to grow jn New York,, which he termed the eoinmorjials' "natural piayKrOLnid," witii mo.''t. home offices cf the ad rgehcics , located i'.orc. Pi-oduction ot films for television will also hypo eastern pro- duction, he said, adding that the e nriight some, day include : not: only : filmed commercials, but entire, pro-^.' grams.. thiit W'ould . be . Sold to,:- the: :.s'n'Uill video broadcaster who might' I not ho: able to allord live ,lelevisi6« profiuction./ F.M HIKES SM Allll St. Louis. Feb. 5. :' Fan-chon . &' IMawo: Service: Corp.,;. ■ vvhich ,pocVates itoii 1'- of the s!.x:. de> Itixcrs hero.; has, hiked ; il.'l admish seals :Se at tho big'Fox and ;|VIiB.i!3,Uri, b.oth- in (he iiriidtQwh area. <-:'j 'iT-ri* T»'i-, -'^.^^ TiU.-i.-TT^ Asked, if the sicalc at. the other'c'e-:': 1st 1 V\ KeleaSC IniU U ]u,.y,s ^^ouW le rausetl. Edwaid Ai- T',^ Ti« Int'l 'Alirrnr' tJ-ui savi l^t didn't know Howcvc), 10 lit nil I /""'y* low hears that when 'Bells cf Holly^voad. Feb. 5 j jj.,^-.^^^ Fiiiit United World «lea?e,to gnK,^^ :,^cafc will be 73G top a,rtd -that tl-i'Ou«h Uiiivor.sal: lor International .^^^.^ f^^^ the seiile will- Con-: Piclui-es wril be rThe Dark Mirror,, Icrirm- with that of Tthe :o{her two Olivia cf.'- M:iv-illaiid-,Lew Ajn-es .cp-.1 q-^ Shutacrt. an- s:tt,)Tcr. which. Si'i^s into :jproductioir| ^j^j^pj; ;^^.^:;^^-,;,,,^ oy^'Aed by t''e this •wecli, , ; ''^ : \' --; :;- .: .{Ainbwi' brothers, a^ Aiiongemen s were made here bv ,i, c\pocted to 1 \e its pucis j\Iatts Fox. United prexy botou j • nc leit foi Now Yoik aftei huddles | \Vj..K"-' Settles I' t ■ivilh LeI'i Spitz and William Goelz,! ' ' Hollywood. Feb: 5: ,:; : and -Nate B.liimberg |,, -Georjie^ :V?asgricr .settled .his- pi'p- ir Universal. ■ ''Mirror"-' will ::be re- -..clusc'r euntre.ot .y>'ith. lljnive"sal,ai!.d le'.scd citiici in September oi'ulllchetl oil tlie valley lot v,-Ithin ..louud the fiu-t of the year. )t»o weeks.