Variety (Feb 1949)

PICmTRES Wedn^'silay, February 2,'1949 aE8l2 Red for Universal in'48 After $3^017 Net Profit in'47 Number oi expensive pix which ' " ' failed to pay off their negative j p „i p:„ p,,llpJ J-l)„l^^ cost at the boxoffice shoved Uni-|rrentn FIX FUilCU III I/UltU ""'f. li'i'oio''' Houses In Music Snarl Amsterdamt Feb. 1. Aftermath oif a court decision to of $3,162,812 during fiscal 1948, ended Oct. 30, company's report this week disclosed. Actually, the. ^^j.^^^ ^ ^^jj brought by BUMA, crimson tinge was even deeper, the Dutch equivalent of the Ameri- since the loss hit $4,424,625 before, can Society of Authors, Composers a tax credit of $1,240,000 was ef- and Publishers, against the Bio- fected. With its production budgets; scoop Bond, has resulted iti-Ffench, adjusted to new market demands j pictures being pulled from south- and most of the costly celluloid - amortized, however, U sees more I Yanks Stall I t . - .. ' Continued from PAge 3 ^ known repeatedly that It would by no means consider .binding on its members any agreement nego- tiated without the presence of its reps. MPAA has no desirC; to spoil the atmosphere surrounding the Anglo-American mept by a lOMd public howl from the indies. If the British agree to broaden the scope of the session, SIMPP will un- doubtedly be invited to attend. 3 Yanks, 3 Britishers ' ern Holland theatres. . , Exhibitors' refusal to play Gallic profitable, days ahead. Loss compared with a $3,230,017 . ttet profit for the year before. GrbssfeS shciwed a decline to $57,- 989,307, off 86,969,098 from '47, When the total take included $3,- 875,000 received in partial payment for a reissue deal with Realart Pictures. Effect of U's recent economies showed uD in the company's evalu-1 ation of film backlogs. From a high j of $20,835,127 at the clftse of '47, amount has retreated to $16,835,-! 127. Sharpest drop was In films be-1 fore the cameras; which, came to i, only $3,997,655 against $6,438,659 in "47, While productioiis com-| pleted but unreleased climbed to, $3,841,363 from $1,761,032. re-' leased pix dipped to $9,057,761 from $12,635,436. product stems from their unwilling- Original conception of the Joint Anglo-American Council, , as formulated by Johnston and Brit- ish toppers when the ;7S% tax- dis- pute was jsettled last March, Was that it was to include three Ameri- can and three English reps. Yanks ness to permit BUMA to collect a I were Johnston, Barney Balaban, percentage of a film's gross for | paramount prexy, and Nicholas M. musical royalties due the French i Schneck, Loew's prexy. Britigh- Soeiete des Auteurs, Compositeurs \ ers were Rank, Sir Alexander Kor- et Editeurs de Musique. 1948 Estimated At $l,245m000 In Total Pic Receipts 1 Vniversal's v annual statement, released this week, airs, a number I of interesting figures blanketing I the industry for the"year just end- ' ed. In a survey which curtain-raises ithe report, U estimates total box- j office-receipts in ,the U; during 11948 at $1,245,600,000, or a decline I of less than 10% froin the pre- 1 viou*! vear figure in 1947 U's cost-cutUng, j„ .^^ a^^ording to the report. . _ nwves which had not been fu"y; domestic grosses hit $1,380,000,000 effected when the fiscal year ended ^^^jj^ ^^^^ ^ reached an alltime ~ company close to $2,000,-1 $1,427,000,000 in '46. "This 000. Sales and administrative ex- ^g^^^g ^^^^j^ probably be regard- penses _are_ .figured__at $18,063,357 ^^^^^ ^ ^^^^^ but Increased cost of films released during the year showed up in the amortization total of $44,009,043, a healthy boost over the $38,834,336 I da and Sir Henry French, head of I the; British Film Producers Assn. I Reason for desiring a bi'oadening I of the participants in the conclave I—if and when it is held—goes I back to.,the thinking that caused I the Americans to delay so long in i agreeing originally to a joint meet- ling. They don't see anything to be I gained on their side. They know ithat all Rank and Korda want is I increased playing time in America and they maintain that they are ■in no position to guarantee that. This factor is also tied : in with the desire for the postponement because of the impending courl decrees.' When these have been agreed upon with the Dept. of Jus- tice, the Americans can go into the Joint Council session and truly say they can do nothing regarding British playing time in U. S. thea- tres because they no longer have for 1948 .while 1947's comparative total was $20,048,828. Chief sav- ing was in the foreign wing of the company, where •$4,812,247 was ladled out last year against $6,056,-^ 470 in the previous semester. Decline in the foreign take is fixed by thj report. Earnings over- seas in realizable dollars slipped to $19,408,147 ; last year compared to $22,648,677 in '47. Dollar revenues The move by the U. S. majors in originally agreeing to the March meeting, after pushing a session off for a long time, was dictated by several factors. First was the IKana Pic Top U Loser Biggest money loser in the group of films which Universal wrote off at a loss before airing its annual statement of proAt-and^loss 1$ * understood to be "Secret Beyond the Door," production of Diana Pictures, co-owned by Walker Wanger, Fritz Lang and Joan Ben- nett. "Secret" carried a negative cost of about $1,800,000 and was only good for a domestic take of some $700,000. Another on the big red'team was "Another Part of the Forest,'? for which U reportedly paid $500,000 to Lillian Hellman, author' of the play. Pic's production nut came to some $1,300,000, of which it will pick up $700,000-$800,000 domestically. "Lost Mo- ment," with a nut of $1,400,000, was also a b.o. missout. "Letter From An Unknown Woman" and "Ivy" also were in- cluded in the writeoff bracket. "All My Sons," another prestige picture of U, cost over $2,000,000 but lost only a comparatively, smdil sum. Against these prestige films, U is now showing an upturn on entertainment pictures aimed for the bread-and-butter market. Current top moneymakers, significantly, are "Rogue's Regiment" and the Abbott & Costello "Mexican Hayride." Each pic looks to do a bout $2,200,000. ■ Natl Allied's Demands To Remove lust' % Gets Brushoff from Majors Tde,16iii Top Agenda At lA Exec Bd. Meet ■♦■ Sweeping demands by a National Allied committee on major dis- tribs for removal of "must" per- centage selling of films have ap- parently met an equally sweeping, rejection by the companies, After huddling with sales toppers of all majors except RKO, the four-man delegation, headed by Col. H. A, Cole, is reportedly taking back to Allied a report that the companies: New Orleans, Feb. 1. , Organization of the television and 16m fields is topping the agenda of' the vsemi-annual execu- tive board meeting of the Interna- | are insisting on percentage terms tional Alliance of Theatrical Stage | for all top product. Several dis- Employees being held here this | tribs, however, evinced a readiness week. Regional chiefs of the lA i to sell flats providing the figure are also discussing current con- ] was set on formulas which consider tract negotiations of various locals, the earnings of big pix previously including the Hollywood crafts. sold on percentage. Richard F. is presiding. Walsh, lATSE prez. rather as a leveling off from the abnormal peaks of 1946-47," it con- . tinues. 1 opinion. They wanted to avoid Spotting the trend foreign-wise, i making it look like they were per- U -sees an estimated total of $100,- petuating difficulties with the 000,000 in actual remittances ac- British by refusing to accept the cumulated by the industry during Rank-Korda offer to settle matters 1948. Peak, it said, was in 1946,' face-to-face, when the foreign take came to ! Upped Quota Threat $138,000,000, and then declined to ' yy . ^ $124,000,000 in '47. The British market was down to $35,000,000 year, report {Tdded, against Selznick Seeking Continued from paKe 3 from Britain dropped 15%, amount ing to $4,164,000 against 1947's $4,- i jg^t 880,000. Contribution of foreign : .,556,000,000 in 1947 and $70,000,000 markets to overall, company gross I t946 33%, report noted, j current foreign dilemma "arises 1 declined to Secondly, was the threat of the British government pushing up its present 45% quota to 60% or 75% on urging of the producers and the unioas. Latter see this as a means of easing the present production while in '47 it was 35% and in '46, Lolely f rom a sUriag^^^^^^^ doliar j T^>s i" """"y ^'udios are ^^Zt' 1.* t ^ ^ ^ -.4 exchanges," U noted, "actually Number of economy readjust-' American films are doing a wry ments are touched on. Most "senior go^d bu.siness in foreign markets." took substantially less Tremendous earning power is executives" pay last year and have agreed to do the same during all of 1949. Shooting time on films are now down 30% on the average from last year. Indie Product Now 25 % Realignment of U's plans with reference to indies that have deals to produce "on the company's lot j to an upswing. '"damned up temporarily," and while the im.mediate outlook in shut down. Yanks hoped that the meeting might alleviate this threat of a quota tilt, but feel that this can best be accomplished with reps of the British exhib organizations and 1949 is for a further detline in i unions on hand. Exhibs, of course, dollar remittances, "there is some f are strong allies pf the U. S. firms reason to believe that we may be | in holding the quota down, since nearing the bottom of the trend."! they prefer, for the sake of the European Recovery Plan as well as I b.o., to be permitted to play a bettering international conditions generally are viewed as pointing jointly IS also spotted. While last Making a pitch for greater exhib year's product was 50% produced' cooperation. U'S prelim statement on this basis, ratio this year has declares, "there is doubt that any been sliced to 25%. "Although this producing-distributing company, pohcy requires a greater invest- exclusive of its theatre operations, ment by the company," it is ex- is making money today. It is gen- plained, "it makes possible tighter erally believed that most if not control over costs and, we believe, j all are conducting producing and improvement in their quality and distributing operations at a sub- boxoffice appeal." stantial loss. On the other hand, Another i«.ature played up is a theatres throughout the -country,- revision of U's amortization ta- both large and small, with few if bles, which has speeded up the bookkeeping tempo considerably. Revamping has been caused by the uncertainty of the foreign market and has resulted in a lowering of the company's inventory bv .SI,- 750,000. In effect, first 26 weeks after release now.': must absorb 73.75% of the negative cost while previously it took up only 63,50%. Narrow-gauge business handled by U's wholly-owned subsidy United World Films, expanded 21% during the year, report discloses.'Reissue business, handled by Realart, has also proven satisfactory, and the company believes if present sales trends continue, it -wiU: garner: an- other cut from the oldies' earnings . in another year. ■ Winding up with a declaration of its attitude towards the current any exceptions have been operat- ing profitably." force of public and Governmental , by EL's staff. The 11 sales execs " "" in the field have been allotted of- fice space in EL's branches and the SiRD name is going on doors under EL's Insignia. All Selznick pix will be released by EL in 1949, William J. Heine- man, distribution veepee, disclosed this week. Startoff film will be "Since You Went Away," which will have its test rim at ^the Par- amount theatre. Sari Francisco, Feb. 16. JPic wil be. labeled a play- back rather than reissue. Test eiigagement is to determine whether the pic is strong enough to pull first^run admissions in ;big houses. Only other oldie to be booked singly will be "Spellbound." Film, however, will not be released until Waiter Wanger's "Joan of Arc," another Ingrid Bergman starrer, has played off. Other six Selznick reissues will be packaged by EL and sold as dualers. 4 Regional Meets Ileineman will launch a series of four regional .meetings within the next few weeks to set the policy on the Selznick offerings. Sales of "Jennie," which had been halted temporarily, have now I resumed. Initial eastern date, Translux theatre, Washington, I D. C, Feb. 19, which was called off a couple weeks ago, has been re^et for April 17. Engagements are alsb being set up in Boston, Chicago, Miami, San Francisco and oilier majorcities Off the basis~of a small tilt in regular admission 'scales.; Leonard: Cas^y compaiiy treas- maximum quantity of Hollywood product. Unions, on the other hand, which have been hot .foivthe quota upping could be impressed With the idea that lack of playing time for British product in the U. S. is not the fault of the majors or of Yank exhibs, but that it is just the quality of the pictures. 8 Indies Sign ConMnned from page 4 While blanketing their demands in an aura of secrecy, it has been learned that Cole's committee asked for a lifting of percentage product so far as all indie exhibs were concerned in smaller situa- tions. A return to flats was de- manded, it's said, regardless of wh ether the theatre operator falls into a first-run or subsequent bracket, The big gripe voiced by the dele- gation'is that branch managers and salesmen, .no longer have : dis- cretionary powers to award flat terms on the higher-bracketed product. Because homeoffice sales toppers now set mandatory per- centage requirements on tiie A's,. Cole's group argued, the local sales staffers can no longer make exceptions for exhibs whose par- ticular problems warrant that sort of treatment. Cole maintained that only local sales personnel knew personally of these problems. Allied wants to reverse the current swing towards^ centralizattoh in distribution and bring discretion back to the ex'^ changes, sales toppers were in- formed. Distrib execs chilled the Allied plea with the assertion that ex- pensive product cannot be sold profitably on flat rentals at present inflated production costS' Number of them paraded their books and records to show that the -distribu- tion end of the business is now operating in the red. Cole committee will report lo the Allied board meet now set for Washington, Feb. 14-15. Members, including Charles Niles, Sidney E. Samuelson and Martin G. Smith, were named following a resolution of Allied at its November conven- tion in New Orleans. Rank, Korda 20th-Fox the European distribu<^ tion rights on three films he made independ(>ntly for woridwide re- i . , Spi^nipk financial lease by 20th. MPSC will handle ' "F*^ " I-....!!, l^V..?" Continued from page 3 ss ' the sale to U. S. dlstribs for frozen J pounds of "Winslow Boy" and "The Small Back Room." "Wins- low" has been highly successful i here, : and, "Room" has recently J been completed by Michael Powell ; and Emeric Pressburger. These ! deals will be similar to that by which David O. Selznick recently acquired "Fallen Idol." Korda also hopes to sew up dur-| f«^«7«"^ ing his U. S. visit a deal with an labeled Beggar ^f Rome,' it halt- " ed production recently to allow Hossellihi tb/make his ciirreht trip aide, is understood taking over general supervision of the SRO dis- tribution operation,, with Sidney Deneau continuing in charge of sales. Case is currently confabbing with Selznick on the Coast, while Deneau returned last week from huddles. Continuing to pare his organiza- American indie for joint produc- tion in England. Yank would put up frozen coin for production and conspiracy suits brought by the 10 possibly provide stars and .story, "unfriendly witnesses" in the for which he'd get western hemi- House un-American Activities sphere rights. This is the plan oh probe, U states flatly: "It is the which Korda is currently making settled policy of this company not "The Elusive Pimpernel" with to employ known Communists^ and Samuel Goldwyn and "Third Man the European sales. Two other pix from abroad in the Agnew-Casanave stable will be co-produced : by Nat Wachsberger. One, in which Wachsberger is partnered with Monte Shaff, is tentatively titled "Thief of Venice," and will .start shooting in color in Venice about March 1. The other one, in which Wachsberger is partnered with Giuseppe Baratolo, is being produced in Rome with Kaufman, budget clerk. Miss De Roberto Rosselhni directing and crau, who came to SRO after Anna Magnani starred. Tentatively ^^g^y y^ars at Paramount, is being succeeded by Sam Sigman, Who in adding contract supervision to his other duties. B. 0. Champs Continued from page 4: i A. "Letter to preem week in L. ... , Three Wives" (20th) was very gooo on first week at Radio City MiKic Hall. "Unknown Island" (FC) dia remarkably strong trade on nm batch of dates. ^ w "Walked by Night" (EL), which „ was playing some of initial dales tion, Selznick this week gave no- late in January, looks like-a comer, tice to Peggy De Grau, head of the "Act of Murder" (U) has been do- contract department, and William ing no better than when releasee. as "They Live Today for Tomor- row." ■■■■ ■ ..■'■■■;i.A' "Red River" (UA) contmuM registering smart money. Godfathers" (M-G) did not do^^o well on some of Its first pljiyj a^!* 'One Sunday Afternoon" (WI3) «as doing spotty trade last tf onif"-^. ,. "Last Gays of Pompen - bne, RKO's reissue combo, still wd= to the U.S Casanave, who has been on the Coast for the past three weeks working out details of some of the deals, leaves for New York Friday (4). Agnew, who went out with . . . I Casanave, returned east last week It will remain-so unless- beld illegal and .'fGone to Earth'-' with' 'Sel?,-'| to continue rounding out the home- and go to Europe. Selznick owns ! mana_ lay the proper courts." nick. . office setup. U. S. distribution rights on "Idol." i on scattered playdatcs, Selznick is planning to re-edit "The Fallen Idol," Sir Alexander Korda's prize.winning British film, while waiting for Jennifer Jones to , nivv-r o ..^^cc^^ wind up in Metro's "Madame Bo-i measuring up to its initial pronii* vary." That is expected to be in I and smash showing '""'i"^,, {nooi Palace. "Angel on Amazon ik«h ged to collect healthy com l April, when they will be married Selznick owns