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^dWW êûint 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
I Soul , Egyptian—Scene I 1 Guild, I Orpheum—Prison , Birthday . Gang - vVarfield—That I Midnight I I Znd ' ^%"r?' : November 1/Ve by Nighf Grosses 140 Per Cent In Four Los Angeles Theatres LOS ANGELES— Several first-run attractions managed to nudge their way past the normal mark, the best score being tallied by "They Live by Night," an RKO entry daydating in four houses. It snagged a 140 per cent rating. Also strong at 130 per cent was "Everybody Does It," while "Intruder In the Dust" finished in show position with 125. i (Average is 100) Iris, Million Dollar—Body' Belmont, El Rey, (UA); Strange Woman (UA), and reissues 100 Carthay Circle—The Heiress (Para), 4th wk 110 Chinese, Los Angeles, Loyola, Uptown, Wilshire EvBrybody Does It {20th-Fox) 13Q Downtown, Hollywood Paramounts Tokyo Joe (Col). 2nd wk 35 of the Crime (MGM); Border Incident (MGM), 2nd wk 90 ' I Fine Arts-The Red Shoes (EL), 46th wk 60 Tour Music Halls—They Live by Night (RKO); Project X (FC) 140 _ Four Star—Intruder in the Dust (MGM) 125 Loew's State—Pinky (20-Fox), 4th wk 100 Warden (Col); 8 acts vaudeville 100 Pontages, Hillstreet—Jolson Sings Again (Col), 4th .100 Warners Hollywood, Downtown, Wiltern—Beyondi .. ..120 the Forest (WB) 'Jolson' Second Week 175 In San Francisco ~ SAN FRANCISCO—The United Artists Theatre, with its second week of "Jolson Sings Again, rated a lusty 175 per cent to lead the city. Second spot honors went to "That Midnight Kiss" and "Black Midnight" at the Warfield with 130. Esquire Tokyo Joe (Col); Holiday in Havana (Col), 3rd d. t. wk 115 ::—Pinky (20th-Fox); Deputy Marshal (LiP), -.d wk 225 .::den Gate—They Live by Night (RKO); Stage coach Kid (RKO) US Orpheum—Sword in the Desert (U-I); Hustv's (Col) 125 Paramount—Red, Hot and Blue (PcTra); The Dalton (LP) HO St. Francis—Under Capricorn (WB), 3rd wk. . 70 State—Wak Island (Para); So Proudly We Hail (Para), Jnited Artists-Jolson Sings Again (Col), 2nd wk .nited Notions—Thieves' Highway (20th-Fox)- The Kid From Cleveland (Ret) 2nd wk Midnight Kiss (MGM); Black (Mono) Trade Continues Steady At Theatres in Denver DENVER^Trade at local first runs continued at a fairly steady pace. lAladdin, Tabor—Black Magic (UA); Daughter of 1 the Jungle (Rep) 125 Broadway-Border I Incident (MGM), Denham— Iigsaw'(UA):;:il5 Red. Hot and Blue (Para) 140 'Denver Webbe,—Jolson Sings Again (Col), wk nr R'°lt°-I.ost' cF^n?""^"'' Boundaries IrL-); btalhon Canyon (Astor) 150 BLOCKBUSTER Oi[ heum- She Wore a Yellow Ribbon (RKO); Follow Me Quietly (RKO), 2nd wk 115 Vogue—Dulcimer Street (U-1) 150 'Pinky' and 'Holiday' Earn 185 To Lead Trade in Portland PORTLAND—A fairly steady week was reported at all downtown houses. "Pinky" and "Holiday in Havana" took the lead, hitting 185 per cent at the Paramount and Oriental theatres. In the second sixit was "Miss Grant Takes Richmond" and "Barbary Pirate" at the Orpheum with 160 per cent. "Jolson Sings Again" was steady in its third week at the Mayfair. Broadway—Black Magic (UA); Postoffice Investigator (Rep) _ 150 Maylair— Jolson Sings Again (Col), 3rd d. t. wk...l30 Music Box—Beyond the Forest (WB); House Across the Street (WB), 2nd d, t. wk 100 Oriental, Paramount—Pinky (20th-Fox): Holiday in Havana (Col) _ 185 Orpheum Miss Grant Takes Richmond (Col); Barbary Pirate (Col) 160 Playhouse—Tokyo Joe (Col); Cover-Up (U-1), 2nd t. d. wk - - 105 United Artists—The Red Danube (MGM) 150 'Jolson' Continues to Pace Trade at Seattle Houses SEATTLE— "Jolson Sings Again" continued to set the pace for local first runs with a second week which registered 200 per cent at the Liberty. "Hamlet," showing at the Music Box, and "I*inky," in a second round at the Music Hall, each carded 180 per cent. Blue Mouse—Miss Grant Takes Richmond (Col); Home in San Antone (Col), 2nd d. t. wk 65 Coliseum—The Gal Who Took the West (U-1); Riders in the Sky (Col) 60 Filth Avenue—The Story of Seabiscuit (WB); WoU Hunters (Mono) _ 85 Liberty—Jolson Sings Again (Col), 2nd wk 200 Music Box—Hamlet (U-I) _ 180 Music Hall—Pinky (20th-Fox); Spring in Park Lane (EL), 2nd wk 180 Orpheum—Tokyo Joe (Col); Black Shadows (EL) .140 Paramount-She Wore a Yellow Ribbon (RKO); The Threat (RKO), 2nd wk 120 %00^ PROJECTION AND SOUND ll%EAI lÊML SEATING SLIDE -BACK Projection Equipment & Maintenance Co. 1975 South Vermont Avenue, Plione: REpublic 0711 Los Angeles 7, California is the Cream o/ the Crop CONSISTENT, UNIFORM QUALITY Highest popping throughout the year. Every lot laboratory-tested. We test—we don't guessi MORE ATTRACTIVE, TASTIER, MORE TENDER Customers always come back for more once they have tasted its delicious flavor. MORE RETAIL SALES PER BAG Means more profits to you. 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Simple one lever speed and directional control. Available in two sizes: 36" swêep or 48"—with or without operator's riding dolly. For complete money-saving details write or wire today to <strong>MODERN</strong> MFG. CO. 160 N. FAIR OAKS AVE. PASADENA 1. CALIF. iOXOFFICE : 19, 1949 65
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