MODERN

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pOR MORE THAN A WEEK the press and
parliament have been buzzing with talk
about the consolidated accounts of the J.
Arthur Rank group of companies which
showed a net trading loss of $2,000,000 on the
past year. More than 800 column inches of
space in the leading morning and evening
papers were devoted to the accounts and
proved, at least, that the public is conscious
of the plight of the British film industry.
Even those papers such as the Express group
which are normally opposed to Rank were
neutral, if not sympathetic.
At an informal interview after the publication
of the accounts. Rank laid the blame for
his losses on two things—the ad valorem duty
imposed by the government in August 1947
and the crippling entertaiimient tax that the
industry is called upon to pay. It is interesting
to note the reference to the ad valorem
duty for American opinion at the time was
firm in believing that Rank was in favor of
this. He, however, flatly denies this and
says that it was the most crippling blow that
the British industry has ever had to counter.
At that time, he claimed, it was obvious that
if British cinemas were to remain open without
American product coming in to the country
then British production must obviously be
enormously increased to fill their needs. This
increase, in turn, led to a deterioration in
quality so that when the embargo was lifted
and American product came back into England
his pictures, some of Which were admittedly
of poor quality, had to play against
the very cream of American product.
That he also has cause for complaint
against the government on the grounds of
excessive taxation is also true. The official
view is that the film industry pays tax for
the same reason that other manufacturing
industries pay tax on the finished articles— to
cut down consumption of luxury goods in a
country that is notoriously finding it difficult
to meet necessities. This argument is a specious
one since the final amount received by
a film producer as distinct from, say, a producer
of motor cars is variable and depends
on factors outside of his control. This was
proved during the past summer when a series
of good films appeared at the local cinemas,
but did poor business owing to the hot
weather. Also, the cinema is a part of the
way of life of any civilized country and a tax
is felt more than in the purchase of a motor,
a refrigerator or a radio, all of which are
By JOHN SULLIVAN
articles which carry a heavy sales tax in
Britain. In addition to this the tax itself s
so high. A motor car or a radio, to continue
the analogy, is taxed at 16 per cent of its
wholesale price whereas the entertainment
tax comprises 40 per cent of the total collected
at the boxoffice and exhibitor, distributor
and producer must share the balance.
What this means in terms of money can be
seen in Rank's accounts when he discloses
that his cinemas took last year approximately
$82,000,000. Of this sum $31,000,000 went
straight to the treasury in tax.
Although Harold Wilson in the house of
commons has since tried to deny the fact
that the tax is crippling the industry it seems
almost certain that the cabinet will be giving
some serious consideration to a reduction in
the next budget. Rank himself has presented
them now with what amounts to an ultimation.
He says: "We have decided to plan for
the shooting of between six and ten pictures
during the six months ending June 1950,
which will keep our studios turning over and
in first-class condition and enable us to maintain
the nucleus of our production organization
... I hope that before a decision has to
be made as to the period following June the
government will have considered the problems
of the Industry, and will have announced an
allevation of the burden of entertainment tax.
Unless conditions, however, do improve we
may then have to make the unwelcome decision
that production must cease."
ANATOLE DE GRUNWALD made the
headUnes on the day following the publication
of the Rank accounts by the announcement
of a seven-picture deal with United Artists
which he claimed to involve the expenditure
of $3,000,000 on production. Under the terms
of the agreement UA will offer DeGrunwald
all the facilities and services which it affords
to its independent producers in the United
States. According to DeGrunwald other independent
producers will be invited to come
in on the deal and make pictures for UA distribution.
The only comment on the deal that can be
made at this stage is that the films will have
to be first class to get a circuit booking here
for UA is finding it difficult to book pictures
on to the circuits. There is little doubt
that they will be good-quality pictures, however,
since DeGrunwald has a good reputation
for quality product.
Whitefish, Mont., Theatres
Sold by John Lindsay
WHITEFISH, MONT.—The Orpheum and
Lake theatres here have been soid by John
Lindsay to Ernie Massman of Columbia Falls
and Walt Thompson of Kalispell, co-owners
of the Park Theatre at Columbia Falls.
Thompson will manage the Whitefish theatres
and plans extensive remodeling on the
Orpheum, the larger of the two show houses.
Lindsay, who purchased the theatres in
1947 from L. J. Sissel, said he would remain
in Whitefish but that his plans for the future
are indefinite.
The Orpheum was founded in 1909 by Sissel
and has changed locations three times since
then. The Lake was built in 1939. Massman
and Thompson formerly operated a theatre in
Portland, Ore., before buying the Park in
1946.
The new owners said the Orpheum remodeling
job would include an enlarged foyer
with a new popcorn and candy booth, new
lighting fixtures, screen, carpeting, improved
ventilation and other improvements. Improvements
also will be made at the Lake, although
not as extensively.
Los Angeles CofC Sets Up
New Television Section
HOLLYWOOD—A television section has
been created by the Los Angeles Chamber of
Commerce in an increased effort to stimulate
trade and create more jobs thi'ough development
of video and allied business fields.
Viewing TV as a "major enterprise," the
chamber declared it is "anxious to help coordinate
its growth and assist in building it
as quickly as possible to its maximum effectiveness
as a source of more jobs, b gger pay
rolls, more general trade, and public service
and enjoyment."
Actress Settles Lawsuit
Against Cassidy, Banks
HOLLYWOOD—An out-of-court settlement
having been reached, a superior court suit
filed by actress Veronica Lake and her husband
Director Andre DeToth, against Producers
James Cassldy and Polan Banks has
been dropped. The plaintiffs had sought
damages of $300,000 on the grounds that
Cassldy and Banks failed to live up to a commitment
to produce a film titled "There
Goes Lona Henry," in which Miss Lake contended
she had been set to star and which
DeToth claimed he had been signed to direct.
Lippert Signs Sid Melton
HOLLYWOOD—Llppert Productions booked
Sid Melton, stage and screen comedian, to a
five-year ticket, the first term deal ever
handed a player by the company. He previously
appeared in three Lippert films,
"Ti-easure of Monte Cristo," "Tough Assignment"
and the just-completed "Radar Patrol."
Ahead on 'Flying Fish'
HOLLYWOOD — Official U.S. navy okay
has been given Columbia to proceed with the
development of "Flying Fish," story of how
guided missiles can be launched from submarines
as an offensive military measure.
Production reins have been handed Jerry
Bresler, and Harvey Haislip and Richard
Nash are developing the script.
64 BOXOFFICE :
: November 19, 1949