Boxoffice-May.15.1949

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Television Progress
Clearance Theories Fade
THEORIES about the value of clearances
cherished for a quarter of a century or
more are being revised so rapidly that both
distributors and exhibitors are astonished.
Zone setups within cities are spreading Uke
a prairie fire. How far they will go is anybody's
guess.
Pictures play off faster, but they bring
in more income from the subsequents both
for the distributor and exhibitor. Massed
regional openings as well as the Jackson
Park decree in Chicago started the moves.
The antitrust decree in the so-called Paramount
antitrust case accelerated them.
Some big circuit operators chewed nails
at the start, but now some of the die-hards
are beginning to admit that results from
heavy advertising campaigns are better
while the public still holds the impression
pictures are fresh.
Some subsequents have caught the idea
By JAMES M. JERAULD
and are now advertising minor product as
first run with excellent results.
What effect this will have on production
remains to be seen. More pictures may be
needed. Super-specials running 90 to 200
minutes may take it on the chin.
JJBC's statement of its position on use of
television in theatres may turn out to
be a milestone in the development of this
industry's attitude toward the new medium.
For the first time Charles R. Denny, in
behalf of NBC, made it clear that his company
has no objection to use of its pro-
H LL developments out of England since
Shadow Boxing
grams in lobbies and lounges where no
the return of J. Arthur Rank to London
indicate that there is still a lot of
extra admission is charged. Quite some
excitement on this point developed during
shadow-boxing in connection with the
the Republican and Democratic national
quota problem.
conventions. As a result, some exhibitors
Political spokesmen say it will be impossible
to reduce the 40 per cent quota set
have used lobby receivers and many have
not because of their uncertainty over the
for a start in October for at least another
legal aspects.
year. The impression has become general
NBC makes it plain for the first time
in this country that nothing happened at
that it is willing to provide special programs
for theatre use: that arrangements ington, except that U.S. distributors stated
the Anglo-American conference in Wash-
can be made for use of special events programs:
that ordinary advertising programs position to the showing of American films
flatly that they would continue their op-
can be used if there is agreement to include
on the lower half of dual bills with British
the commercials, and that it may rent
films.
equipment.
A neat face-saving formula may develop
All these elements were surprises to some —something like the granting of additional
of the TOA members, but the most surprising
of all to many of them was the cost of
exemptions to British theatres from quota
operation.
a large-screen projector—$25,000.
Paramount estimated some time ago that
its tube-to-film equipment for theatre use
Special Nights
would cost about this amount for the early CPECIAL midweek showings of Negro and
sets. Costs will go down as quantity production
is achieved. Big theatres, if they customers not regular attendants are being
foreign films for the purpose of pulling
decide to use the novelty, will have to stand tried in a number of places.
the development expense. This means that R. M. Savini of Astor Pictures first suggested
the plan to exhibitors who could not
there will be no rush in this direction until
the theatre divorcement problems are be induced to play Negro films for full
cleared up.
weeks on the usual two or three-day
By that time, perhaps, it will be known changes in subsequents. Some houses have
whether theatres will be granted broadcasting
licenses by the FCC, which to date weeks for all-Negro programs.
put aside one night every two or three
has shied away from any houses directly Other exhibitors located in college towns
or indirectly connected with the antitrust and in towns where there are large foreign-speaking
sections have added occa-
suits. Paramount and others contend that
under the new divorced corporate setups it
sional foreign films to their regular programs,
or have included them one night a
and the new units will be entitled to licenses.
If the FCC continues to be stiffnecked,
this problem will go to court. In ing.
week on dual bills. The practice is spread-
the meantime TOA may ask for an experimental
channel for use with SMPE.
Strange Taxation
COME companies have been paying taxes
on income they have not received because
the Ti-easui-y department has insisted
upon it. Others have treated foreign income
as non-existent until transferred to
this country in some form.
the Treas-
News from Washington that
ury is considering a change in the rules
came as a welcome surprise last week. If
the rules change does not work out. Congress
may be asked to act.
There can be no justice in taxation on
the book value of impounded foreign funds,
because these always face the prospect of
currency devaluation abroad after the
taxes have been paid.
Paramount Declares Dividend
NEW YORK—The board of directors of
Paramount Pictures, Inc., has declared the
regular quarterly dividend of 50 cents per
share on the common stock, payable June 24.
Film
Exchange Buildings
Again Escape Fire Loss
NEW YORK—For the third successive
year, the 400 exchanges and shipping
units of the Motion Picture Ass'n of
America member companies have had no
loss from fire, according to a report by
John B. McCuUough, director of the conservation
department, to Eric Johnston,
president. In 1948, he said, the exchanges
shipped, repaired and serviced theatres
with more than 21,000 miles of film daily.
He added: "It is doubtful that any industry
of comparative business volume can
match this record."
There have been only 16 film fires in
member-operated exchanges in the U.S.
in 23 years, with an annual average fire
loss of only $211.04, according to McCullough.
He attributed the good record to
the self-regulatoi-y conservation program
instituted 26 years ago. Under the MPAA
system, branch managers serve as supervisors
in local exchange areas for six
months on a rotating basis. In 1948, 4,700
inspections were made.
Industry Shorts Brochure
Sent Out to Exhibitors
NEW YORK—The Motion Picture Ass'n of
America has mailed an elaborate eight-page,
12-',2xl5-inch, two color brochure on heavy
stock to exhibitors across the country as a
buildup for the 12 industry shorts, "The
Movies and You."
The piece tells the story of the shorts,
what they contain, how they will be promoted,
and what exhibitors can do to help
In improvement of industry relations. Many
letters from exhibitors, crafts, guilds, producers
and distributors are reproduced.
Stanley SMuford and his advertising department
at Paramount turned out the brochure.
The first subject in the series, "Let's Go
to the Movies," will be distributed by RKO
and will be released May 13. Tlie others
will come along at the rate of one every two
months.
DelGuidice to Produce
Features in America
NEW YORK—Pilippo DelGuidice, whose
Pilgrim Pictures, Ltd., produced "The Guinea
Pig," current at the Little Carnegie, is expanding
his American activities and will
produce films here under the title of Pilgrim
Pictures, Inc.
First feature to be produced by DelGuidice's
local un't will be "Mr. Common Sense,"
an historical drama based on the life of Tom
Paine, the author who championed the
Colonies in the American Revolution. Fredric
March will play the title role. "Mr. Common
Sense" is the first of a series of featm-e>:
plamied by DelGuidice to be based on classic
themes or current day realism in the American
scene.
DelGuidice has heretofore produced typically
British subjects, such as "Henry V,"
"The Tawny Pipit" and "Hamlet," as well as
"The Guinea Pig," wh ch is a story of British
school life. The latter film is being distributed
in America by Variety Films.
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BDXOFFICE May 14, 1949