Variety (Jun 1947)

4 «T MCTUHES Wednesday, June 4, 1947 Nebenzal Hits MPEA Melon-Cutting Setup; Sees Indie Producer Hurt Sharply attacking the Motion Pic-< ture Export Assn.'s complicated method of divvying its foreign reve- nue melon, independent United Art- ists' producer Seymour Nebenzal de- clared last Thursday (29) at a press confab that it would be better to tlivide profits on the basis that "every picture should get what it earns." He claimed the present set- up doesn't click for indie producers. In certain countries, where you face "dictatorship," Nebenzal said that he felt its better to be repre- sented by a group. However, he indicated that there's a decided lack Of MPEA solidarity by offering the estimate that since the MPEA's in- ception well over 100 films I>ave toeen sold outside the organization. Budd Rogers, producer's east coast rep, also emphasized this point with the statement that David 6. Selz- n.ick. Hunt Stromberg, Howard Hughes and Edward Small all had closed deals with Holland's exhib group, the Bioscoop Bond, after the A had inked its own agreement there. Nebenzal said he didn't think pro- duction costs have reached their peak. Retroactive l^bor pacts make it difficult, he said, to work out in- dividual film costs. He noted that his present UA program calls for five pictures to be delivered within two years on an overall budget of . $7,000,000. . Nebenzal painted a dark picture for the independent producer. More and more of the indies will dis- appear, he said, because they're find- ing it difficult to obtain financing from the banks. And it's only natural that they'll seek the ad- vantages of deals with the larger companies, he said. Of his own cur- rent films, the producer noted that "Heaven Only Knows" is slated for August release while "Atlantis" will follow in September. "Heaven" is the first of Nebenzal's five films under the UA pact. Skeptical about the value of the current vogue toward foreign pro- duction units, Nebenzal said he had »o intention of participating in for- eign, filmmaking. Producer has since returned to the Coast. MayWWttyfor'Ram' Hollywood, June 3. Dame May Whitty has been set for one of top roles in Irving Cummings' 'Sign of the Ram," for Columbia re- lease. Peggy Ann Garner is to move over on loanout deal from 20th-Fox for same picture. Susan Peters stars. MPEA Refutes Nebenzal With $250,000 Repayment Charges by Seymour Nebenzal ♦hat the Motion Picture Export Assn. doesn't benefit indie producers brought forth a disclosure from the MPEA this week that the organiza- tion has already repaid its original loan to all member-companies. Loan, paid back several weeks ago, totaled $250,000. MPEA's financial position is now strong, and the next checks re- mitted to members will constitute profits on the operation. Nebenzal, according to MPEA of- ficials, apparently spoke before learning that the organization "had returned its initi.il investment. Whether Nebenzal received a cut o f that money is not known, the MPEA spokesmen said, since it's not known how United Artists, which releases the producer's films, split the money among its producers. It makes no difference, it was pointed out, ■whether Nebenzal's films or the product of some other company was di^t'ibuted, since all member com- panies get the same division of re- ceipts under the formula established when MPEA was first set up. 'n answer to Nebenzal's charges, MPEA officials declared that the or- ganization had proved of great bene- fit to indie producers, especially in those countries with severe restric- tions on the number of U. S. films th t can be shown. Without the MPEA. it was pointed out, the in- dies would be forced to compete in the open market for the limited amount of playing time available and miuht find the going, pretty rough. Those indies who operate abroad without the MPEA have done so to obtain quicker liquidation of their product. In the long run, how- ever, they'll be no further ahsatl than MPEA members, the organiza- tion's spokesmen declared, Most of the revenue collected by tho, MPEA to date has come from Holland and Czechoslovakia in the ■way of gold payments. Other 11 countries which the organization services are-able to remit payments only to a very limited extent be- cause of their acute shortage of dol- lar exchange. Indies Ponder If U.S. Tax Cut May Not Eventually Open More Local Levies With possible rollback of the 20% Federal tax bite on film thea- tre admissions to their pre-war level, being considered by the House Ways and Means Committee, oddly enough such downward revision is being viewed with anxiety by some exhib groups. They feel "that if the current tax tap is lowered it may open the doors to local tax legisla- tion which, in the final analysis, may be even heavier than the present Federal impost. Reflecting the exhibs' dilemma, is the current bulletin of Allied Rocky Mountain Independent Theatres, which points out that "if we, as a unit, working with National Allied, should ask for a decrease in the Federal tax we will undoubtedly be asked by the Government: 'If a de- crease in the tax is given, will you as an exhibitor pass this saving along to your patrons?' "If we answer that question," Rocky Mountain Allied says, "by an- swering 'yes," we will have to do ex- actly as we say. But if on the other hand we do not intend to pass the saving along to the patrons the atti- tude of the Government will prob- ably be: 'Well, why decrease the tax if the public is not going to get the advantage of it?' " Attempting to clarify the situation Rocky Mountain Allied is quizzing its members on 1. whether they feel that National Allied should take a stand in favor of an immediate Federal admission tax reduction and plan a campaign accordingly; 2. NA should submit memorandum in favor of a reduction for future reference without passing for action at this time; 3. NA should take no action on this matter. New Jersey Allied's prexy Ed- ward Lachman on Monday (2) de- clined to comment on his organiza- tion's attitude toward the proposed admission cut. He pointed out that the group would be represented at Washington hearings by National Al- lied counsel Abr"am F. Myers. New Jersey Allied, incidentally, recently emerged victorious in preventing a local New Jersey admission tax measure from becoming statewide. GEORGE GIVOT Harry Crocker, Los Angeles Ex- aminer says: "I predict a sensation when George Givot sings in con- cert. ..." Personal Management: HARRY BESTRY Power's South-of-Border Trip Powers Reissues Hollywood, June 3. Reissues of Tyrone Power star- rers are popping up all over South America as a result of his aerial vacation in that sector. No less than 13 of his old films are screening on the southern continent, with 10 In Rio de Janeiro alone. Currently on exhibition are "Lloyds of London,"," "In Old Chi- cago," "Second Honeymoon," "Alex- ander's Ragtime Band," "Suez." "Jesse James," "The Rains Came." "Day-Time Wife," "The Mark of Zorro," "Blood and Sand." "Son of Fury," "The Razor's Edge" and "The Black Swan." Seek to Drop 20% For Kid Fans And Low-Priced Nabes Taking the cue from the House Ways and Means Committee hearings last week, the- film industry will draft a comprehensive tax plan in the hope that it will supplant the blanket 20% Federal bite now in force. New schedule; which is be* ing drawn on hint of the Federal solons, will be proffered to the Com- mittee within the next month as the industry's idea of a fair scaling down of rates. * Almost certain to be included is a clause which would exempt all chil- dren's admissions from any tax charge. Exhibs have been claiming for some time that the levy on mop- pets* tickets has been a stronger de- tracting factor than with adults bet- ter able to meet the charges. Also being considered is a proviso which would start the tax running above a minimum so as to free low-price nabes from the nick. Exhib leaders are talking a retreat to the pre-war rates of 10% as the basic charge. House Committee sug- gestion which started the move was dropped wliileTed Gamble, American Theatres Assn. board chairman, was making a pitch for a cutback in taxes. Consequently, ATA is front- ing for the plan. Joseph R. Vogel, theatre head of Loew's; Malcolm Kingsburg, RKO's top theatre man; Fred Schwartz, topper in Century Circuit, and other theatre execs will be invited to join in drafting the new plan. While ATA admits there's no great hope that Congress will act during the present session, there's a strong feel- ing that the new schedule will be o.o.d in the meantime -and come up for action early in the next cession. Mono's $260,991 Net In its 39-week report for the fiscal period ending March 29, Monogram Picture Corp. rolled up consolidated net profits of $414,042 after all charges but before provision for Federal income . taxes. Earnings compares with $511,176 for the same period last year. After deducting Federal taxes, consolidated net prof- its reached $260,991 or about $12,000 more than last year's equivalent 39 weeks. Report, issued by Monogram prexy Steve Broidy, pointed out that Mono's subsid, Allied Artists which was set up to handle produc- tion and distribution of high-budg- eters, has five films completed and awaiting release. First of the slate Roy del Ruth's "It Happened on Fifth Avenue," opens at the Rivoli, N. Y., soon. Broidy Setting Canadian Mono Franchise Renewal Renewal of Monogram's Canadian franchise, held by J. Arthur Rank's Monogram Pictures of Canada, Ltd., is imminent, according to Mono prexy Steve Broidy who's been huddling for the past week with Rank's managing director John Davis and J. Earl Lawson, head of Odeon Theatres of Canada, Ltd. Also participating in the confer- ences have been Mono veepees Ed Morey and Norton V. Ritchey as well as Oscar Hanson, Canadian Monogram's general manager. Broidy disclosed last week that nothing would be in production at the Mono studio after Monday (2) except a few westerns. Pointing out that the company had a substantial film backlog, production chief said the firm had some 10 pictures on this year's program ready for re- lease while three have been com- pleted on next year's program. Mono does not plan to space out its releases to tide it over while the studio's shutdown. Broidy declared, but will stick to the regular release schedule. Following consummation of the Canadian franchise renewal he returns to the Coast but is due back in August to sail for England for conferences with W. Ray John- ston who's already abroad. Exhibitors Left to Bear the Brunt Of Pix Try to Reduce 20% Tax Washington, June 3. Film industry has been making less than an all-out drive to get its 20% admissions tax reduced, in presentations before the House Ways and Means Committee, which is considering "hardship" cases in the excise brackets, with a view toward reducing some of these war- time levies next year. Pictures, which have the biggest stake in the deal, have left their pitch strictly up to the exhibitors and with only two witnesses have apparently concluded their pres- entation of why the bite should be cut for the theatres. Although the Motion Picture Assn. originally listed Eric. Johnston to speak, the Assn. contented itself with an ob- server or two/ on hand for the hear- ing last Thursday (29). Not even a brief was introduced', hardly giv- ing the exhibitors an impression that the studios and distributors are at all interested in their Fed- eral tax headache. The industry case last week was offered by Ted R. Gamble, chair- man of the board of American Theatres Assn., and Julian Brylaw- ski, of Warner Bros., vicepresident of Motion Picture Theatre Owners of America, who appeared in the absence of Herman N. Levy, gen- eral counsel for the association. No presentation was made by any other exhibitor association or by unaffiliated theatres. In addition, A. B. McSwigan, of Pittsburgh, president of the Nation- al Assn. of Amusement Parks, Pools and Beaches, asked a return to the old 10% admissions tax for those places. Gamble declared that theatre business is off from 15 to 35%, and warned that tax reduction was necessary to restore it. - "Theatre, business thrived during the war years," he said. "The last few months* however, have seen business decreased' ranging from 15% to 35%, and any. corrective ac- tion by way of tax reduction would be constructive and timely. The 20% tax on admissions ia a contin- uing threat to this most sensitive business and 1 could become, in a short period of business recession, the proximate cause of business failure. "The 20% admissions tax is dis- criminatory legislation in that It is tantamount to a 20% gross sales tax and forces the motion picture industry that bears it to compete with other industries under an un- fair handicap. With the exception of a downward revision in personal income taxes, there is no tax re- duction that would be so popular with so many people as elimination of the 20% admission tax on movie tickets. "The warrant for admissions taxes presupposes that motion pictures are a luxury like furs and jewelry, or a near-vice like night- clubs and racetracks. This suppo- sition is untenable. 'The over- whelming bulk of movie patrons is made up of low income groups and children. To tax this group is to violate the modern theory of grad- uated taxation, in that to tax them is to tax those who are least able to pay." Brylawski Talks Up Asserting that MPTOA speaks for about half of the 16,000 theatres in the U. S., Brylawski told the committee: "Please understand that this is not a tax on the producers of motion pictures nor on Hollywood salaries; it is a tax on the motion picture theatres, and the theatre patrons and on the boxoffice receipts of every theatre, taken out before any of the gross receipts can be used by the theatre owner for payroll, film rental, or operating expenses. Only indirectly can it affect the producers and distributors of the films used by the theatres. "There is good reason to doubt that the tax on admissions is at all passed on to the public, and there is strong evidence that one of it is actu- ally passed on. At least a large part of this tax comes out of the gross sales of the theatre, no matter how you figure it, before the theatre owner can meet his payroll and op- erating expenses. "Classifying attendance at motion picture theatres as luxury spending, in the same category as spending for expensive furs, jewelry, and liquor, is an arbitrary conclusion not sup- ported by the facts. The great mass of motion picture patrons are the low-salaried working people who find in the' medium of the motion picture an economical means of mass entertainment and enlighten- ment. "They are not organized, and as such are inarticulate with no author- ized spokesman to protest or pre- sent their views here, but neverthe- less, they ha?e spoken to us in no uncertain terms—at the boxoffice— which is our barometer and our vot- ing place. Theatre admissions are off—now 10% to 30%. The honey- moon is over, the war-swollen cities and industries are returning to nor- mal. The theatre owners of the country need relief from these excise taxes now so that business and em- ployment may return to a normal and livable level." McSwigan, speaking for the amuse- ment park operators, declared: "Ours is an industry of Individual owners, without holding company 'domination and direction, and we respectfully address ourselves to you and your committee for furtherance in the reduction of the present heavy admission tax. May we suggest for your consideration the emplacement of an excise tax on outdoor amuse- ment parks, pools and beaches, for a trial period during the advancing taxable years of 1947 and 1948, of lc tax on each 10c admission, or major' fraction thereof, if the admission price is in excess of 20c. This would produce a sizeable income to the government, and at the same time exclude from taxation, in the use of the simpler forms of healthful, out- door amusement devices, children and young people and section of the underpaid white collar class." REELECT EDD RUSSELL PREZ OF EXTRAS GUILD Hollywood, June 3. Edd X Russell was renewed as president of the Screen Extras Guild at-the annual election. Others returned to office for the next year were Dick Gordon, first veepee; Dulce Daye, second veepee; Franklyn Farnum, third veepee; Doc Evans, recording secretary, and Jef- frey Sayre, treasurer. L. A. to N. Y. Constance Bennett Ralph Berger Bill Burlingame Saul Chaplin * Zanah Cunningham Roy Disney™ •--— John Ford Ava Gardner Herb Golden Bill Goodwin Freeman Gosden Joe Gramby Mark Hellinger Paul Hollister -Johnny Johnstone Allan Jones Jesse Kaye Robert Z. Leonard Ruth McGough Catherine McLeod Arthur Murray Pat O'Brien William Perlberg Roman Pines N. Peter Rathvon . Hal Roach, Jr. Frank Rosenberg William Saal Ralph Samuelson Lou Shapiro Cliff Stein' N. Y. to L. A. Robert Benjamin Jack Benny Steve Broidy Ernest Cossart Valerie Cossart James J. Geller Phil Harris Marjorie Kane Jack Kapp Robert Kintner Carl Leserman Harold Mirisch Mildred Natwick Anna Neagle Marjorie Reynolds Steve Slesingcr Rosalind I. Van Herbert Wilcox Bretaigne Windiist N. Y. to Europe . Audrey Christie Reg Connally Dario Alfred De Liagre, Jr. Betty Doyle Billy See Jacques See Margaret Sullavan John van Druten