Boxoffice-March.20.1948

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How io Spend It?
IMMEDIATELY after announcement of
the British tax settlement the amateur
statisticians pulled out their pencils and
started trying to figure how much money
would be tied up over there. The total
depended on the optimism or pessimism of
the man with the pencil.
One company executive predicted that
nearly half the British income would get
back to this country the first year and
liere is how he figured it:
Estimated British income.. ..$50,000,000
Less $10,000,000 which can
cost 7,500,000
This leaves a balance of 42,500.000
Less $17,000,000 remitted
here 17,000,000
This leaves 25,000,000
Less $10,000,000 which can
be invested outside the
industry and may include
materials purchased for
export 10.000.000
This leaves $15,000,000 which
must stay in England, but
can be expended for industry
purposes 15,000,000
If these figures are anywhere near correct
the actual tieup of income is
$15,000,000.
Ordinarily American companies allot 25
per cent for distribution costs in this
counti-y, but this man says they are cheaper
in Great Britain, and vary with the volume
of product. The big distributors get
their distribution costs down to 15 per
cent or less. He figures the average at 15
per cent.
MGM and Warner Bros, will enlarge
their studio facilities when materials become
available.
There may be a substantial increase in
production in Great Britain by American
companies by sending top stars over there.
This might reduce Hollywood production,
but it would enable American companies
to get out close to $15,000,000 in the form
of completed pictures which could be distributed
profitably in this country.
From seven to ten important pictures
could be produced over there for $15.-
000,000.
The British figure the agreement will
stimulate U.S. bookings. Conceivably the
income from British pictures here could be
raised from $3,000,000 to $5,000,000. If
this should happen, the actual tieup of
American funds in England would be $10,-
000,000 instead of $15,000,000, because the
profits of British films will be retained
here.
This raises the question as to how the
American companies would split this income,
if they split it. There will be plenty
of behind-the-scenes argument on this.
EHective Action
JUST how effective united action by all
exhibitors—affiliated, small circuit operators
and independents—can be when applied
with knowledge of public relations
By
JAMES M. JERAULD
was demonstrated in New York by a committee
headed by Oscar Doob. The committee
heard with dismay that through
some maneuvering a sleeping bill had been
reported on the floor of the N. Y. assembly.
It was a fantastic bill calling for tremendous
contributions to firemen's pension
funds at the rate of $10 per show for
each of two firemen to be stationed in
the theatres.
The legislature was deluged with telegrams,
the newspapers were informed in
detail. Some ran editorials.
In a matter of hours the legislators decided
this was a hot potato. Amendments
were suggested, the measure was sent back
to committee, and it was still there when
the legislature adjourned. Exhibitors faced
with somewhat similar problems elsewhere
can take heart.
Early Antitrust Ruling?
pHERE is a possibility that the antitrust
case decision may be handed down before
June.
The court usually takes some form of
action on a case during the term in which
it is heard. The present term will expire
some time in June.
For some surprising reason the court
has not been as busy as usual so far during
the current term. The total of cases
to date is 144 under the same period last
year. Forty-seven decisions have been
handed down this year—eight fewer than
last year.
Hearings have been off sharply, too. If
this situation continues, observers feel that
decisions will be speeded up.
Worth Remembering
fjERE IS A precedent: The New York
Life Insurance Co. secured approved
for construction of an $838,000 theatre
with 2.000 seats in the 3.000-family housing
project now under construction at Flushing
L. I. The housing expediter agreed
that the income from the theatre would
help hold down rents and make the project
more attractive from the financial viewpoint.
One of the biggest housing projects in
the United States—the Parkchester in the
Bronx—also had a theatre built in connection
with it, but that was before building
controls were imposed.
Tele Pictures Property?
NEWSPAPERS have been cautioned
against reproducing pictures taken
from television sets. The advice is not as
drastic as that directed against theatres,
but the principle is the same.
Joseph A. McDonald, vice-president and
general attorney of the American Broadcasting
Co., has informed Editor and Publisher
that "there may be several legal
complexities, all depending upon a certain
set of facts in each case. Legal principles
This Exhibitor Decides
'To Keep It Clean'
of
MEMPHIS—Barney Wooler, operator
Memphis Drive-In on Lamar, will open
a laundry in connection with both his
Memphis and New Orleans outdoor theatres
April 2. Plans call for the housewife
to leave the dirty clothes as she
drives into the theatre and have them delivered
to her car before she leaves.
laid down in the famed AP-INS suit involving
property rights in news and again
in the AP case against VOS still apply, in
the broad sense, to television pictures."
These cases are said to be the closest
approach to precedents bearing on the use
of television programs in theatres.
Exhibitors contemplating the use of television
shows taken off the air might do
well to consult their attorneys about these
cases.
Business Is Good
ARTHUR RANK has a lively humor
J
that often catches his hearers by surprise.
He was asked at a press interview
about business in Great Britain's theatres.
"It's good," he responded. "The people
have nothing else to spend their money
on. The stores are empty and everything
rationed."
is
The condition was one of the things that
made business excellent here during the
war.
Ascap Fight Subsiding
^SCAP's willingness to grant temporary
licenses to Allied members who want
the money in escrow until Allied's legal
attacks have been decided may remove this
controversy from the headlines for a time.
Some outstanding lawyers insist that the
record of legal attacks on Ascap has been
preponderantly in favor of that organization,
and they say the only way the situation
can be effectively changed is by
legislation.
Al Wilkie to Coordinate
Variety Clubs Journal
MIAMI—Al Wilkie, former home office
publicity manager for Paramount, has been
named coordinator for the 12th annual convention
of Variety Clubs International to
be held here April 12-17 by Mitchell Wolfson,
general chairman.
Wolfson said Wilkie will start immediately
on assembling advertising and editorial
material for the convention journal, working
with Herb Elisburg, chairman of the committee
in charge of the journal. Wilkie's
headquarters will be In the clubrooms of the
Variety Club of greater Miami in the Alcazar
hotel.
Lichtman Heads Variety Group
MIAMI—A. E. Lichtman, former Washington,
D. C, exhibitor, has been named chairman
of the banquet committee for Variety
Clubs International 12th annual convention
scheduled for April 12-17.
BOXOFFICE March 20, 1948