Variety (May 1947)

10 Wednesday, May 7, 1947 Joan Gra¥fford s 4S0G,Dei«Hs Morgan's 261G, Cortiz's $2S» Topped WB in 1 Joan Crawford, who -made her-f- comeback last year in Warners' "Mildred Pierce" after a stretch in retirement, led all WB's troupers in the salary derby with $400,000 com- pensation in '46. Her male counter- part, a study of financial data dis- closes, was Dennis Morgan, recipient from Warners of $261,000. Michael Curtiz received the handsomest re- ward for directorial efforts, $258,600. The company paid out $2,524,000 on royalties and participations in its product Cutting into that sum was Hall Wallis, former WB employee, who took $150,600 as his share' of grosses on some of his pix. James Cagney, also an px-WBer, was paid $26,901 for the same reason. Indicating that Warners had man- aged to hold theatre wage costs fair- ly close to the '45 line despite gen- erally mounting costs, analysis re- veals that the WB salary nut for the company and its consolidated af- filiates climbed only 7% in fiscal 1946, ended Aug. 31, over the '45 outlay. Total hit $29,680,000 against $27,741,000 for the year before. These sums were exclusive of sales and production costs which touched $37,244,000 including $30,055,000 for amortization of product. Theatres, Ads, Rents, Etc. Theatre end of Warners paid out $20,460,000 for film rentals and stage show expenses which represented a slight advance over the $19,283,000 expenditure of '45. For its adver- tising and publicity, Warners outlay ran to $6,560,000 for '46, a shade above the $6,323,000 expended the previous . stanza. Other important expenses were $6,560,000 rents; $4,- 012,000 taxes, other than, income; $1,- 897,000 electricity and fuel; and $1,089,000 traveling and incidentals. With WB's chief indebtedness a Series of notes approximating $20,- 000,000, payable semi-annually at a $1,591,000 clip to a syndicate of banks, certain restrictions are placed upon the company's financial moves. Under the terms of these notes, Banko No Lottery in Minn. Minneapolis, May 6. The state attorney general ruled today that theatre "bank nights" d^coitLed 65813 ^ 6 and wm not be re s^'ZV^sru Stirs' Coin Yen ,, . , == Continued from page 3 35 player" he* was dealing with de- manded $250,000 salary plus 33%% of the net. Another male player in the same category asked $300,000 plus 50% of the net, ' On the other hand, the top mar- quee names, unwilling to take a chance on film's having any net profit to share, demand a piece of the gross, it was said. They ask Akait \$% of i-6,20th and RKO's fa Preis Went hi 'I Pension Fun However, present reform govern- directors demand a portion of the or"who" sponsored "the anti-gaTmbling |net in many cases, while the finan- lawT is said to be opposed to them, cing companies which put up ' second ^ I money" for production usually de- mand and get 12%% to 25%. Where does-that let them off, the producers ask? , The "personal vanity" angle of the players' salary stipulations is what burns the indies most. They declare that the difference between a straight $150,000 payoff and the fancy sums being asked is relatively inconse- quential, since most of it goes for taxes anyway. Answer of the players to that, of course, is that the whole Hollywood scale of values is based on earning power, and a star can't afford to lower his-standing by ac WB Follows Par In Buying Stock On Open Market Hope's Taleface' Tint Hollywood, May 6. Bob Hope's next Paramount pic- ture, "Paleface," a satire on western films, will be directed by Norman Z. McLeod, who recently piloted the Crosby-Hope dualer, "Road to Rio." Picture, slated to roll about the middle of July, will be filmed in Technicolor. With Stock Exchange prices on film shares holding to the basement, movement by the majors to pick up cepting less than other players of their own stock at what's considered comparative marquee voltage, bargain quotes, spread last week i n the meantime, the producers to Warners and may yet go further, charge the stars are "killing the Key to WB's action, it's reliably re- g00 se and forcing it to lay eggs, ported, was the drop of the com- rather than golden ones." They pany's common below the current maintain, in addition, that players book value, which is set at $16 per are hurting themselves via the high share. Feeling among Warner big- price tags by getting themselves in gies that this unusual dip below to low quality pix, since the pro- present liquidation value warranted ducer must "cheat" elsewhere in the step while value of the stock for | order to afford the star payoff, future deals made the action ad- visable. Warner is the second major to make the* move which Paramount led off last November. Par, so far, has corralled something over 200,000 shares at prices ranging from 33 at the outset to as low as 23. With Par's outlay already touching $5,000,000, company shows no indication of let- ting up' in its policy, Warners must first obtain written consent of 75% of the holders before it, among other things, does the fol- lowing: v 1. Permits its funded indebted- ness to exceed $45,000,000, less $3,- 000,000 for each fiscal year com- pleted after Aug. 31, '45. 2. Permits any lien on pictures produced in the U. S. or Canada. 3. Borrows more than $5,000,000 at one time on loans payable in less than one year, "• Company has a total investment Of $53,373,000 in consolidated affili- ates, a slight rise from the $52;690,- 000 salted in them at the outset of the year. Prime investment is in the Stanley Co. of America, main theatre group, which comes to $41,- 096,000. Prom these companies Warners took out in cash dividends during '46, the sum of $6,318,000 while it earned an equity in profits of $12,759,000. Overseas, its take from its subsid, Associated British Picture Corp., was $1,009,000 for the year. Com' pany wound up with a solid earned surplus of $41,074,000. It had started the semester with $29,977,000, picked up an added $19,424,000 in net for the year, and laid out $8,327,000 in all dividends. - No stockholder, analysis discloses, held more than 10% of any class of stock. Moreover, there' were no profit sharing or bonus arrangements with officers nor were there any rights to exercise options for stock. IMAiSlESERMAIS FOREIGN EXPANSION Hollywood, May 6. Benedict Borgeaus trained in after four weeks in New York, during which he and Carl Leserman, vee- Moreover, as I pee of Bogeaus Productions, mapped Par's stock quotes dropped, com- plans for opening offices in London pany has accelerated its purchases, and Paris and to increase advertis- with March the banner month on | ing and publicity staffs here_ and in buys. .WB's stock is currently on the block in Wall street at 15 or there- abouts. Book value of $16, fixed by the company's accountants, is reached by deducting liabilities from assets and dividing the differ- ence (the net worth) by the num- ber of shares Of common outstand- ing. Stick for Theatres Understood that Warners will probably use some of the stock for cleaning up its partly owned thea- tres which must be owned outright or sold within two years. Shares may also be useful, it's said, for putting through deals with outside producers such as that under way between Par and Liberty Films. Par is paying 100,000 to 125,000 shares of its common for the purchase of Liberty Pictures and its properties. Similar to Par, Warners has made no determination as to the number of shares to be bought nor as to the quantities. That will depend, of course, in large part on the move- ment of the stock on the Exchange. Should the stocks suddenly zoom upwards, WB's action will likely be on a narrow scale, Subnormal performances of film stocks on the Street, which touched off the WB move, may spread the action further, it's said, because film toppers are convinced that prices are New York. Huddles were also held on current release of "The Ma- comber Affair" and on two not yet released, "A Miracle Can Happen" and "Christmas Eve." Latter pair will get special handling, Bogeaus said, with special emphasis on 'Miracle," "Christmas Eve" will be released in July, "Miracle" in fall- probably' September. Ad budgets will be increased, Bogeaus said, with more allocations to national maga- zines and trade papers. Producer said he'll swing right into his new five-year deal with UA. Has promised four pictures a year. Paris, London offices will be aimed for closer cooperation on releases overseas, as well as to spot new foreign talent. Metro's $8,596,779 Net For 28 Weeks About Equals '46 Net profit of $8,596,779 was re- ported yesterday (Tues.) by Metro for the first 28 weeks of fiscal '47, ended March 13. The take, equiva- lent to $1.67 per share of common outstanding, was a shade below the $8,952,056 performance for the com- parative period of '46. Gross sales and operating rev- enues, however, exceeded the '46 fig- ure, hitting $56,655,000 against $55,- 335,000. Common stock earnings, last year, for the 28-week semester were equivalent to $1.76. Operating profit, after expenses, totaled $18,236,730 from which is deducted $5,525,016 reserve for Fed- eral taxes; $2,122,927 reserve for de- preciation; and $1,550,000 for con- tingencies. Minority interests' share totals $442,008, Strikes, Etc., Cut Profit Of Technicolor in 1947 Technicolor, Inc., net profit for 1946 declined to $436,168 as against $667,441 in 1945, according to the annual report sent stockholders last week. This dip was made in the face of net sales of $13,057,510 as com- pared with $11,614,779 in the pre- ceding year. The net profit is equal to 48c. as compared with 74c. a year ago. Report to stockholders rated the bTlowVh^tlthVshMes'are payFngln I ^ ^ S "* ul1 of many difficulties, dividends. On that basis, industry i? c i ud ' ng two st f*? s - K P° inte d out financial experts feel that the com- ? at . because Of these: stakes de- panies would be taking a sound w Jr re ^behind normal course which would pay off m schedule. Report also showed that spades if stocks take a turn for the walkouts slowed the expansion pro- better gram and the increase in capacity ™ D ,' u „„ , ,, . . ! termed essential to upped profits. WBs board, during the same meet Technicolor report also listed the that approved the buying policy, 1 declared a quarterly dividend of 37% c. per share on common stock, payable July 3, to stockholders of record June 6.« Dassin on Bellinger's Homicide' Mostly in N.Y. Hollywood, May 6. Jules Dassin will direct "Homi- cide," the next Mark Hellinger pro- duction for Universal release, with Barry Fitzgerald and Don Taylor as co-stars. Most of the film will be shot in New York with the cooperation of that city's homicide squad. Dassin recently wound up a director job on Hellinger's "Brute Force." 1 anti-trust probe into affairs of the corporation as taking up time of officials and resulting in substantial expense .to the company. Report cited that the very high costs of building, machinery and equipment, had prompted officers and direotors to favor an intermedi ate expansion program to cost around $3,500,000 for the present. Complete report submitted by Herbert T. Kalmus, prexy, mentions Variety's story of last September in which the top 33 grossing pictures are listed to show that its color process was used on five of the first 10 big grossers. Technicolor was used on "Gone With Wind," "This Is Army," "For Whom Bell Tolls, "Snow White" and "Leave Her To Heaven," the report shows, quoting Variety. Ditfs $200,000... N.Y. Campaign Via Tm Ad Agencies Heavy ad campaign preceding the opening of "Duel in the Sun" in some 50 theatres in the New York metropolitan area today (Wednes- day) had a peculiar angle. The ads were placed by two different agen- cies, with the front-of-the-paper copy in the dailies and the radio blurbs not mentioning at what thea- tres the picture is playing. Unusual circumstance arises out of the fact that Loew's—in. 38 of whose houses the David O. Selznick pic is playing—demands that any copy carrying its name Or the name of its theatres must be placed by Donahue-& Co., N. Y. Thus the ads announcing the preem at the Capitol and other Lpew theatres went through that agency, with the cir cuit sharing in the cost. Also appearing over the weekend, however, were full-page ads men tioning no theatre names and placed by Selznick's regular agency, Robert Orr & Associates. They were paid for entirely by the producer. Same applies to the radio blurbs. Campaign is one of the costliest in New York film history, with a total of about $200,000 being spent in six weeks. Of that, approximately $150, 000 worth of space and time was contracted for in the pas't six weeks and the remainder was on old con- tracts. About $75,000 is being spent in newspapers for the pre-opening and first week campaign. Orr ads carried an unusual box in the corner, stating the picture was written, produced and edited in strict conformity with the morals code of the Motion Picture Assn. and has received its seal of approval." It was also stated: "As a result of voluntary editing by the producer, in conjunction with the Legion of Decency, the picture is now about three minutes shorter than it was in its original showing. But'not one scene has been lost." L. of D.'s praise of DOS' cooperative attitude n making the cuts is also quoted. Robert Gillham, Selznick pub-ad director, said the box was included because of fear that Catholics might not know that the Legion had put its imprimateur on '"Duel." Some industryites were wondering, how' ever, if the box might not serve to call the censorious nature of the picture to the attention of those who didn't before know that it had been the cause of a great many huddles between the producer and the Legion. "Duel" opens simultaneously in 300 theatres throughout the country Wednesday (7), which ielznick execs claim is the biggest day-and- date setup ever arranged by any picture. Film screens in key areas from coast to coast, after the big Texas preems last week and preems last week and earlier showings in Hollywood, Rochester, N. Y., Miami and a few other spots. Wednesday pix openings, beside the N. Y. Capi- tol and 40 Loew's houses in the N. Y. metropolitan area, include a similar setup in Boston, New England, and other key situations virtually cover- ing the country. ♦■ Venture into pension plan systems. launched by a trio of majors during the War ,and thereafter is now run-, ning into a sizeable slice of those film 'companies' profits. Costs to Metro, 20th-Fox and RKO, initiators of the policies which may be fol- lowed by other companies, totalled a solid $5,300,000 during '46 or some 10% of the $52,000,00.0 net for the .threesome. Figures were completed with the report by RKO that it Mad accumu-. lated $2,000,000 in the first three years of operations, or some $700,000 '46. Metro's expenditure oj $2,397,818 is the top marker while 20th follows with $2,214,632. M-G's pension scheme was started in" March, 1944, and covers 4,300 em- ployees; RKO's began in 1943 while 20th kicked off Jan. 1, 1946. Since all the pension plans provide for retirement payments based on a proportion of salaries handed to employees during term of office, company biggies will get a propor- tionately higher share. Louis M. Mayer, Metro's studio chief, for in- stance, had reserved to him in '46 the sum of $55,356. ; Nicholas M. - Sehenck, company prexy, was alio." cated $52,993 while Robert Mont-* gomery, highest paid actor, took a' $21,549 slice. " 20th-Fox and Metro In 20th's bailiwick, top sum set aside for a rainy day went to com- pany prez Spyros Skouras with $21,650 paid into the retirement fund. Sums allocated for other company officers were $7,240 for William C. Michel, exec veepee; $4,900 for Darryl Zanuck, production head; $4,650 for William J. Eadie, comptroller; $3,450, Tom Cpnnors, v.p. in charge of sales; $3,000, Murray SilverstoneT • foreign .chief; and $2,350, Donald Henderson, treasurer, " ' - "- Metro's plan guarantees pensions. to all personnel with the company a" minimum of five years. Retirement benefits accrue at 60 for women and 65 for men with mandatory pay- ments for at least \0 years. Plan calls for yearly payments of 15% of the annual average salary earned by the beneficiary up to $3,000 and 25% of all sums over that figure. System inaugurated by 20th pro-, vides- for automatic eligibility by its personnel.after completion of one}.' year's service. Retirement is set at 65 with beneficiaries receiving an- nuities equal to %% for the first $3,000 of each year's compensation plus 1% in excess of $3,000. Ceil- ing has been fixed so that no pay- ments are made to? that part of salaries exceeding $50,000.' RKO guarantees beneficiaries min- imum of $60 monthly, .when added to social security payments, Eligibili- ties are scaled between 65 and 70/ depending on the age of bene- ficiaries when plan was effected plus length of service. Grable's New 20th Pact Debuts in Sturges Film Hollywood, May 6, Betty Grable was handed a new seven-year contract by 20th-FoX, to take effect when she returns to work in September. Lined up as the first chore under the new pact is "The Blonde from Bashful Bend," to be produced and directed by Preston Sturges. ACTIVITY DULLISH IN ' ■ APRIL'S STOCK TRADE - Philadelphia, May «. Activity was dullish in film stocks during the past month, according to report of the' Securities & Exchange Commission. Top item in the report was sale of 1,000 shares of Warner Bros, common by Harry M. Warner, dropping his total to -295,000. His trust reported holding 18,000 shares. Daniel M. Sheaffer, Philadelphia, disposed of 300 shares Of Universal common. He now holds 17,407 shares. Charles D. Prutzman, New York, reported holding 6,100 shares. Spyros Skouras amended his_re- port of August, 1946, revealing that he acquired 42,000 shares of 20th Century-Fox common through the exercise of option, making his total in this security stand at 47,250 shares, Two new directors of Republic Pictures Corp. reported their hold- ings to the SEC. They were Harry M. Goetz with 27,687 shares, and Edwin Van Pelt, 400 shares of Re- public common. Activity in Monogram common was restricted to the sale of 1,000 shares by W. Ray Johnston, Holly? wood, making his holdings 16,617 shares. ... ■ Onsrud Corp., Fort Lee, N. J., re- ported the acquisition of 23,459 'shares of Associated Motion pictures Industries, Inc. (AMPI) in the stock splitup by that company last Octo- ber.