Boxoffice-May.29.1948

RKO '47 Theatre Sales
Brought $2,300,000
New York—RKO received S2.300,000
during 1947 for the sale of five theatres
in Albany, Schenectady and Troy, N. Y.
The sale price was made public by N.
Peter Rathvon, president, in his annual
report to stockholders. He said the book
value of the theatres was approximately
S700,000.
The theatres were sold to comply with
the New York statutory court order in
the antitrust suit that required the disolutiun
of profit-sharing deals. The theatres—Proctor's
Grand and Palace, Albany;
Plaza and Proctor's, Schenectady,
and Proctor's, Troy, had been leased to
Fast Theatres, Inc., on a profit-sharing
basis.
Rathvon reviewed the supreme court
decision in the antitrust suit appeal. He
said it is impossible to predict what theatres,
if any, RKO must dispose of and
"what general effect the opinion of the
supreme court will have upon the operation
of the business" of RKO.
Depinet Is Impressed
With Hughes Plans
NEW YORK—Ned E. Depinet. executive
vice-president of RKO, returned from the
coast "very favorably
impressed by Howard
Hughes' ideas and intentions."
he said at
midweek.
"Mr. Hughes revealed
high ambitions
for our company and
I am convinced he is
the type of man who
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m-itii RKO is the undisputed
champion,"
Ned E. Depinet
Depinet declared.
"In having Hughes
as its principal shareholder,
RKO gains not only an astute and
courageous young business man, but a showman
who has had a continuous interest in
motion pictures for 25 years. As an independent
producer, he has made a number of
the top boxoffice pictures of the past two
decades. In view of our steady growth and
even brighter prospects I'm sure Hughes has
invested his money in the right company."
During his stay on the coast Depinet conferred
with Hughes, whom he met for the
first time, with N. Peter Rathvon, Floyd
Odium and Dore Schary. He spent some
time at the studio looking over new product.
Depinet said he thought the industry was
now over "its bad case of jitters" and was
again "on the high road of showmanship
where it belongs, with banners flying."
"RKO has never been in better shape for
product," Depinet declared. "We have more
top quality pictures finished and shooting
than at any time in our history and they're
all big ones, built for boxoffice and entertainment.
He mentioned among the coming 1948 releases
Walt Disney's "Melody Time," Leo
McCarey's "Good Sam," "The 'Velvet Touch."
Samuel Goldwyn's new Danny Kaye comedy.
"A Song Is Bom," "Rachel and the Stranger,"
Merian C. Cooper's "Fort Apache" and Walter
Wanger's "Joan of Arc."
RKO Net Drops Despite
Healthy Theatre Receipts
NEW
YORK — Radio-Keith-Orpheum
Corp. reports a consolidated net profit of
$5,085,847.58 for 1947. equal to approximately
$1.30 per common share. This is a
decline of $7,101,957.40 under a consolidated
net profit of $12,187,804.98 for the
fiscal year ended Dec. 31, 1946. Tlie net
profit for 1946 was equal to $3.17 per common
share.
N. Peter Rathvon, company president,
points out in his report to stockholders
that the decline in net profit was not due
to theatre company earnings which "were
only moderately below the record earnings
of 1946." A substantial loss was attributed
to RKO Radio Pictures, Inc.. producing and
distributing subsidiary.
A comparison of financial reports for the
two years shows that income from theatre
admissions, film rentals and sales in 1947
totaled $118,550,758.98, an increase of $2,807,-
007.66 over income from this same source in
1946.
Rathvon said that so far in 1948 theatre
operations continue very profitable, but are
slightly under the corresponding period of
1947. He said the picture company has shown
a small profit so far in 1948.
The sale of the RKO Pathe newsreel to
Warner Bros, during 1947 increased the company's
capital gains by $3,150,000. Rathvon
declared that while the RKO Pathe net
profit was greater in 1947 due to the sale of
the newsreel, its profit from operations was
moderately less than during the preceding
year.
Total expenses for RKO Corp. climbed
$13,091,857.66 during 1947 over the previous
year. Expenses totaled $112,273,982.62 in the
New Color Film Process
Discovered in Frcmce
PARIS—A new process for the photo-
motion pic-
graphing and projection of color
tures has been hailed by Marcel Pagnol,
writer and producer, and the Fi-ench press
as "the most important advance in movie
technique since the adoption of sound." The
process, which was invented and developed
over a period of 17 years by Armand and
Lucien Roux, involves the use of a special
lens on the camera and projector. In the
process, normal black and white film and
normal projectors are used.
Although details of the Roux process have
not yet been revealed, the system seems to
consist of the focusing of different primary
colors on different planes in the thickness of
film. This process has been known for many
years by optical technicians but practical
realization of the system has awaited the
solution of problems in the manufacture of
absolutely identical lenses.
Pagnol said that since observing the results
of the process he has decided to scrap
his latest picture and do it over in the Roux
process. "Here is a wonderful occasion for
the French cinema to regain the prestige it
never should have lost. I am convinced that
in two years there will be no more black and
white cinema," Pagnol said.
fiscal year just ended, compared to $99,182,-
124.96 for 1946.
Rathvon .said: In the latter part of 1947
motion picture companies generally experienced
sharp decreases in earnings from production
and distribution. For a number of
years gross income from production and distribution
has steadily increased, but costs in
the.se divisions have shown a greater increase.
This rising cost spiral in the face of a moderate
decline in domestic income which occurred
in the latter half of 1947 tended to
eliminate profits, even though gross income
had not yet been affected to any appreciable
amount by loss of foreign revenue resulting
from dollar famine abroad. Although this
condition continues into 1948, when the impact
of the dollar shortage on foreign remittances
will be increasingly felt, drastic economies
in distribution and administrative
charges have tended to offset loss of income.
The sharp rise in expenses over 1946 is attributed
mainly to increased amortization of
film costs and expenses. A total of $32,769,-
544.58 was charged to the company operating
revenue for production during 1947. This is
an increase of $11,251,737.22 over 1946.
Rathvon said the increase in picture amortization
charges will prevent economies in production
from reflecting generally in 1948 results.
He explained that "RKO Radio Pictures,
having a sizable inventory of completed
and unreleased pictures, will during
1948 be amortizing product made at the production
cost level prevailing during 1947. The
results of its operation during 1948 will therefore
depend upon the relationship between
its revenues applicable to amortization and
its amortization charges."
Mono Shows $353,548 Loss
For 39 Week Period
NEW YORK—Monogram Pictures Corp. reports
a consolidated net loss of $353,548 for
the 39 weeks ended March 27, 1948. This Is
a decline of $614,539 compared with a consolidated
net profit of $260,991 for the same
period in the previous year. The loss for the
period just ended before provision for federal
The profit for the
income taxes was $295,646.
same period In 1947 was $414,042.
The operating losses for the current fiscal
year will allow the company a refund of
federal income taxes of about $290,000, according
to Steve Broidy, president.
A report from the company said: "The
gross income after eliminating inter-company
transactions for the first 39 weeks ended
March 27, 1948, amounted to $6,590,540 as
compared with $5,743,340 for the same period
of the previous year."
Telenews-Palestine Deal
NEW YORK—Telenews Productions has
signed an exclusive agreement with Palestine
Films, Inc.. for newsreel shots. The first
scenes to be received from Palestine were released
to all newsreel companies here for
theatrical distribution. Telenews retained
television newsreel rights.
BOXOFFICE :
: May
29, 1948 IS