Variety (Apr 1947)

18 We«Tn<!Bday, April 16, 1947 ibs Deflate Politicos' Estimates Of Grosses m Battle Again^ S% Tax New York theatre officials are re-, shaping their strategy in the w&xing battle dver local admission taxes. With a hearing set lor this week be- fore the State Tax Cortimission and Mayor William O'Dwyer ^reportedly weighing the added 5% nick on fliok- eries, metropolitan theatre men are out to deflate exaggerated estimates by politicos of potential returns on tax boosts. Oversized guesses on what the 5% tax, if adopted by the city, woiild bring stemmed originally IroMi no less than Governor Thomas JS. JDew^, it's pointed ouf He fig- ured the "State's overall take at $23,- 800,<|00 for the year, with New York City kicking in a $14,900,000 chunk, The joker is^ the basis of the com- putations—they're made on $82,805,- 0(© total returaed ixom the New Yditk State district to the Federal Government fof the year on the 20% •Govenior JDewey and the legisla- ture reached their estimate, it's noted, by taking the traditional 90% as films' share and dividing by four. Exhibs,' however, intend pointing out the misleading nature of the Federal figures. JFor one, it's said, many larg« tjjeatye chains such as Loew's and RKO Ijave tKedr home- oflicfes in Hew York and pay their entire taxes to this Federal office on theatres both in and out of the metropolitan area. That fact alone has ballooned the New York take far above it's actuality. Exhib tax specialists also contend that the 90% allocation to elm houses on total Federal amusement taxes, while accurate elsewhere, can't be used in metropolitan New York. As the chief nitery and legit center of the country, the revenue from those entertainment sources is greater than 10%. Moreover, it's said, • returns from sporting events make up a sizeable part of the fig- ures. _ ./ As one exhib leader put it: "The Army-Notre Dame game alone gave the Govemmeot #9,000 In'taxes. It takes an awliil lot «f small theatres to lequal that sum. I-egislators think in terms of the Broadway houses with their fat admissions. They dpn'l realize that the average ticket 9>rice in the smaller houses is a little over 30c." * Fred Schwartz, Century * circuit exec and head of the Metropolitan Theatre Owners Ass'n, will appear before the State Tax Commission on this Week's hearing. feWbs have been asked to testtty on the lhanner in which the new tax legislation should be applied. The .statute, passed this session by the legislature^ empowers cities and counties to ex- act the 5% admission bite. Par-Lrberty Continued (rom page S Indie Proilucers , Contiiined from pate 3 t8e-PiiBa@kSo| as Coni^tiea fii^Bi page 1 s exchange for all capital assets of the indie outfit. Par wUl receive Liberty's residual in the Capra film, "It's a Wonderful Lite," now in re lease by RKO. That's in addition to Liberty's percentage interest in "Mama" and "Union." Liberty was organized by the four men (Briskin served as exec producer and business agent of the unit) a little more than a year ago. Xt made a releasing arrangement with RKO tliat called for three pic- tures at the minimum rate of «ne a year and an option for a fourth. '■Life" is the only film delivered un- der the deal. Tl\ere lias been no disclosure of EKO's attitude on losing the quartet of topflight filmmakers. There's a possibility, of coufse, that the two remaining pix may still bo delivered under the arraii'-jcment to be made. It is understood, however, that one concession has already been given BKO by Liberty in anticipation of such a flea! as i.s now set. Tliat's the loanout of Stev%ns to produce "Mania" for the studio, since this will be an RKO. not a Liberty film, latter merely getting a percentage for Steven.s' service.s,^ Brhskin confirmed the pending deal, as did a spolicsman for Par who refused to be qiioted Until papers are inked.'i, Plans tive and showman that the job re- quires. And some of these will be found to be the same solid indief citizenry who were producers befcuFe setting up your own. coinpany be- came a Wallingford rage. ; Toughest thing si would-rbe iridie is up against now is the firm atti- tude of the banks—which provide the financial basis for true inde-' pendent operation. High costs and tmcertainties concerning foreign markets arts the chief reason for their reticence. Their cautjousness is marked by much closer scrutiny of the background and qualiflcatlons (Jf the potential borrower, as well-as the setup he presents. In the meantime, there has been a great upsurge in possible outlets for ind^endent product. UA, leader in distribution of indie output, six months -ago was acting very tough in mating new deals, in light of a superfluity of product. The fact that only one film is currently be- fore the camei'as for its release may be fairly assumed to be .softening its attitude a bit. A new factor, too, is the entry of Republic, Monogram and the Selsi- nlck Releasing Organization Into the market for indie producers. Rep is seeking such deals to build up its schedule, partially as a result of pressure from stockholders on presi- dent Herbert J. Yates. Studio re- cently entered into an agreement with the Charles K. Feldman group of indies. Mono Set up a subsid, AUied Artists, to handle medium- and high-budgeters from indies, as well from its oWii organization. And David O. Selznick was forced into organizing SRO as a result Of his battle with UA. Even Metro Takes On Indies Even Metro has taken on an indie in its deal for- distribution of Frank Capra's (Liberty Films) "State of the Union," with Spencer Tracy's services. Involved in the negotiations. RKO, which has been second only to UA in number of indie releases, is still in the market on a large scale. Universal and Columbia have some swni-independents, but are be- lieved not willing to make deals un- less the studios provide financing and share in the jirofits. U, inci- dentally, would make one of the most attractive distrib outfits for any producer now, since its tieup with J, Arthur Rank insures Brit- ish playing time and probably con- tinued, intioilie from Britain, even should a freese, be imposed on ex- port of coin. Paramoimt, Warner. Bros, and 20th-Fox are believed to be in no way interested in releasing inde- pendent films. Eagle-Lion and PRC are understood to feel the-Siame as U and Coli if they take any indies at all. ■ WhDe only three purely Independ- ent pix are beltig made at the mo- ment, there are another seven be- fore the cameras or editing which fall partly into the indie category but don't fully qualify. Selznick is making "The Paradine Case" and "Portrait of Jenny.'f but they are for release by his Own company., Three plx for U release are being financed by the studio. They are Walter Wanger's "The Lost Love"; Diana's (Wanger-Fritz Lang-Joan Bennett) "Secret Beyond _the Door" and Mark Hellinger's."Brute Force." In a similar category is "Assigned to Treasury," being made by the Sidney Buehman-.Iay Richard Ken- nedy unit at Col, and "High Tide," which Jack Wrather Jg producing for Mono. Continued'iroin t»ec 3 i David O. Selznick's recent departure. It is not believed that oWners Mary Pickford and Charles Chaplin will part with any of their own holdings. Fabian would take the place of Edward C. Ral'lery, who aims to re- turn his full attention lo his law practice. It was hoped to line jjp Raftery's succe.ssor .by the time of, were | tlie annual stpelvholders' meeting ih mapped at huddles on the Coa.st la.st I May. In the event that proves im- week of Par's Edward Weisl and | possible, which is hishly likely. Jack Karp. and Jules C. Stein, head I Raftery will coiUimie in the post of Music Corp, .of America, It was ^ pending uppoinlinrut o£ hi.s succes- di.sou.sscd with Par prcz Barney .sor. Cliaplin iind Mi.ss Pickford are Balaban durin,? hi.« vi,'!it to the Coast! determined, however, lo get a can-' the previous week. j didate set in llie next few months, Talks to Horses" and "A Women of My Own," RKO's 11 RKO has 11 ready for release. 10 in various stages of editing and one contribution from Walt Disney, "Fun and Fancy Free." Completed are "Honeymoon," "Men About town," "A Likely Story," "So Well Retaembered," "Woman on the Beach," "Riffraff." "Magic Town." "Banjo," "Seven Keys to Baldpate" aiid "Desperate." In the cutting rooms are "Indian Summer," "Born to Kill," "The Cong Night," "they Won't Believe Me," "The Bachelor and the Bobby Soxer," "Out of the Past," "Crossfire," "The Fugitive," "Under the Tonto Rim" and "If You Knew Susie." At 20th-FOx, "Captain from Cas- tile" is in the editing process and eight ready for distribution, includ- ing "San Demelrio—London," mad&. in England Others are-"'The Home Stretch," "I Wonder Who's Ki-ssing Her Now," "Bob, Son of Battle," "Mother Wore! Tights," "Miracle of 34th Street,"-*'Moss Rose" and "The Ghost and Mrs. Muir." Eleven completed at Warners are "Life With Father," "Woman in White," "Escape Me Never," "Chey- enne," "Cry Wolf," "Love and Learn," "Possessed," "My Wild Irish Rose," "Night Unto Night," "Dark Passage" and "Deep Valley." In the cutting rooms are "The Unsuspected" and "The Unfaitliful." On ice at United Artists are "Mon- sieur Verdoux," "Heaven Only Knows," "Arch of Triumph," "Body and Soul," "The Other Love," "A Miracle Can Happen," "The Ma- comber Affair," "Christmas Eve," "New Orleans," "Carnegie Hall," "Personal Column," "Vendeya," "Dishonbred Lady," "Copacabana," "The Sin of Harold Diddlebock," "Red River" and "Fun on a- Week- end.-" ■ 17 for Col In addition to two cliffhangers, "Jack Armstrong" and "The Vigi- lantes," Coluijihia has 17 features: "The; Lady' from Shanghai," "The Swordsman," "The Corpse Came C. O. D,," "Down to Earth," "Keeper of the Bees," "For the Love of Rusty," "The Millertown Case," "Three Were Thoroughbreds," "Little Miss V Broad way," "Her Hus- ijand's Affairs," "Last Of the Bed- men," "Swing- the Western Way," "Gunflghters," "Sport of Kings," "Prairie Raiders," "Raiders of the Lone Star" and "Stranger from Ponca City." Waiting, release at Republic are 'j!nd of the Rainbow," "That's My Man," "Hit Parade of 1947," "Black- mail," "The Trespassers," "Winter Wonderland," "Yankee Fakir," "Bells of San Angelo," "Web of Danger," "Wyoming," "Homesteaders of Para- dise Valley," "Rustlers of Devil's Canyon," "Springtime in the Sier- ras," "That's My Gal," "Spoilers of the North," "Marshal of Cripple Creek," "Oregon Trail Scouts," "Saddle Pals" and "Twilight on the Rio Grande." Practically ready for distribution at Universal are "The Dark Web," "Ivy," "The Slave Girl," "Pirates of Monterey" and "ISie Vigilantes Re- tum." ■. One dozen at Monogram are "Trailing Danger," "Violence," "Six Gun Serenade," "High Conquest," "Hard-Boiied Mahoney," "High Tide," "Land ol the Lawless," "Sarge Goes to College," "The Big Scoop," "Louisiana," "Kilroy Was Here" and an untitled "Cisco Kid." Allied Artists has three—"The Gangster," "Tragic Symphony" and "Black Gold," Eagle-Lion has two completed, "Lost Honeymoon" and "Repeat Per- formance," and one editing, "Love from a Stranger," Ready at PRC are "Philo Vance's Secret Mission," "Philo Vance's Gamble,", "The Re- turn of Rin Tin Tin," "West to Glory," "The Big Six," "Frontier Fighters," "Thunder Gap Outlaws," "Raiders of Red Gap," "Shootiri' Irons," "Panhandle Trail" and "Code o£ the Plains," Editing on the same lot are "Stepchild," "Too Many Winners," "Killer at Large," "Heart- aches," "Pioneer Justice" and "Gas House Kids Go West." Four on the Hal Roach lot are "Curley," "Fabulous Joe," "Who Killed Doc Robin?" and "Here Comes Trouble." Screen Guild has five finished—"Bells of San Fernan- do," "Buffalo Bill Rides Again," "Bii.«h Pilot." "The Hat Box Mys- tery" and "The Ca.'-'e of the Baby ; Sitter." . . Ue Stiiff--Mrie$ Exploitation stunt engineered by Metro veepee over ad-publicity Howard Difetz, in which film critics were given actual title to an acr^ of land in the New Mexican desert,.has received more reaction than, almost any Metro ballyhoo deal in" recent months. Nearly every critic and columnist who received one of the warranty deeds gave It spaee. Whole idea was a plug for Metro's "Sea of Grass," Best thing about the Stunt, according to Dietz, I? tic'feet that the total cost to Metro w*s about $770. Company bought SOO acres of land from the Santa Fe railroad at $1 per acre, with th^Test of the money going to assessments and taxes, Land, incidentally, is currently valued at le.ss than |2 per acre and, under terms of the deeds, U gold or oil Is ever discovered on the land, aU rights belbnig to the state « 1^^ Latest gripe of one group among U. S, occupation troops in Germany is the fact that the Army has not given soldiers in tfee European theatre a chance to see foreign films. Answering, the Special Services declared: "Entertainment motion pictures shown in Army theatres are primarily for the enjoyment and pleasure of the U. S. mUifary personnel, and are selected on the basis pf popularity in Army theatres. Foreign language films are not generally poptilar with American audiences, Proof of this is that they are not shown in the U. S., except in larger cities where a reasonable amount of foreign-speaking patrons are available. A very small proportion of Army theatre patrons would enjoy foreign laiiguaEe films." . -■■ Hollywood's glamorizing stratagems, including star photos jazzed up by typical Yank cheesecake, are borrowed freely by the J. Arthur Rank or ganization in its British Picture News, a 30-page slick mag to be cir- culated sporadically iji U. S. trade circles. Brochure makes a direct appeal for the reader to "see a good British film," and lists a number of current and ^future releases, . Rank's hopes are apparently heavily weighted on the distaff side since BPN's buildup is almost exclusively devoted to femme personalities. As for James Mason who sometime back lashed out at the British tycoon, his last Rank pic, "Odd Man Out." gets a play in the mag but the centerpiece is Robert Newton in a subordinate part, not Mason. Trek of the 14 "Favorite Brunette'' contest winners to the Coast wound up in a blaze of publicity—the wrong kind—last week. First of all, Bat- tling Lee Mortimer, film crlUc of the N, Y. Mirror, was on the receiving end of blows from one-punch Frank Sinatra at a Hollywood nitery, Circs, The same night the Santa Fe Super-Chief was derailed near Raton, New Mexico, wijh some 17 injured, but none of the "Brunette" contestants aboard was hurt. ,,. Mortimer figures in the "Brunette" contest wfamers' trip because, in Hollywood, he escorted some of the contestants. ■• ' Samuel Goldwyn has developed a virulent case of Oscaritis and is send- ing out 200 replicas Of the gilded statuette to plug his Ostar Derby winner, "The Best Years of Our Lives." Stand-in Oscars Will be, displayed in col- leges, high schools and other public places hitherto fre(i from motion pic- ture ballyhoo. This is the first time the Academy has permitted duplica- tion of Oscars for publicity purposes. Each is numbered, and will be re- turned to the Academy when the campaign ends. Columbia sales execs currently estimate that "the Jolson Story" will gross close to double the $3,750,000 velvet of "GUda," heretofore that com- pany's record pic, With "Jolson" showing remarkable staying power, it's now figured that the film will do between $5,000,000 and $6,000,000 do- mestically and an added $2,000,000 overseas. N.Y.'s Third Major Circuit Continued from page 9 ; proper playing time and income from New York area for anything but top films. Doubly complicating their prob- lem in this respect Is that the indies- who follow after Loew's and RKO pattern their double-bill combina- tions and exhibition policy on that of the tW9 circuits. So if a pic gets relegated to the short end of the five-day and two-day segments into which RKO and Loew's apportion the week, it will be deprived of vir- tually all New York .playing time in the indies, except a feW isolated situ- ations. Indie circuit contracts now pro- vide that a pic at the bottom of the double bill in the long-end of the week or any film booked for the short end by RKO or loew's. can be renegotiated. Frequently that means they are renegotiated right out of all bookings in the subse- quents, since there isn't enough time to play a lot of them except in houses having three or more changes weekly. Otherwise, with the pick of the product coming from the two major circuits, the indies use the RKO long-end dual bill for the long end of their own splits and the Ldew'i long-hall pair for their short half. Since Loew's pays more than RKO, in the fiiml tally a distrib winds up with about the same in- come from whichever of the two circuits he plays. How It Figures Top-billed pic in the long end of the w«ek is always played percen- tage, by RKO and Loew's, with the distrib getting from about $100,000 up to around $225,000 for an excep- tional film, such as "Jolson Story" (Col) recently. A pic that gets equal billing on a dualer earns about half of what it would get as top film, Lower-half of a twin-bill always gets a top flat rental of $18,000 from RKO or Loew's on the long end ot the week. On the two-day segment, the topper may get percentage oa- flat-rental, the percentage occasion- ally working out so that it would be more advantageous to have been second-billed on the five-day por- tions of the week. This income, how- ever, can amount to 'as high a." t25,000-$30.000. Lower-billed pic on that end gets $3,000-$4.000, 1 Rental return from the sub.se- quents in New York generally ap- proximate that from the Loews or RKO circuits—if in the renegotia- tion of the contract the pic is lucky enough to get booked at all. Among the indie webs said to be interested in setting up the third circuit along with Schwarfi (37 theatres), are said to be Julius Joelson (17 houses), possibly Harry Brandt-(who books more than 100 houses). Island Theatres (55houses), and others, Fabian circuit is not in- volved, at the moment, anyhow. Biffs Stay Contlliued from page S promptly appealed his action. With a virtual certainty of reversal came the settlement by the majors. Industry legalites are telling sales chieftains that while the stay frees them from following the decree, it doesn't stop damages from running in private suits nor does it exempt distribs from liability under new claims. Only sound out for the majors is to offer pix to all comers in sore spots throughout the coun- try and to base the award of a fihn to the highest bidder. Then, if a suit is filed, distrib can point to open market conditions as a strong de- fense. More Roadshowlues Oh other points, the slcy's the 1 im It, Four-wall leasing of theatres, for instance, which broke out in a rf..«h while the price-fi^cing ban was effec- tive is no longer necessary with the stay. Distribs can put through deals in which a price-boost is one of the terms without worrying .about Gov- ernment reprisals. With the strings cutj a nuinber of distribs intend g<i- irig into extensive roadshows on big pix. Recent deal between Loew'.s and David O. Selznick on "Duel in the Sun" was only possible because t'le decree's regulation of selling prac- tices was suspended. Loew's agreed to preem "Duel" day-and-dale in 37 houses and the Capitol. If the de- cree had operated, Selznicfc \v(iuld have been compelled to offer "Dutl" in each competitive area to H'C hi.^liest bidder and the bifUikft pi^i't with Loew's would have beeii ilUti'J-