Rank Says Film Industry In Critical State

Chronicle (Levin), 9 November 1949, Page 5

Rank Says Film Industry In Critical State

Received Tuesday 12.50 p.m. LONDON, Nov. 7. Mr J. Artliur Rank, millionaire con-l troller of three-quarters of Britain 's lilm industry, said today that financial losses had been so heavy that British film production might have to cease altogether after next June unless the entertainment tax was reduced or some . other relief given. _ _ 1 j He announced drastie epts in film production in the coming year, and said that he would make onlv between six and ten films in the six months' ending next June. "For the moment no plans are being made beyond that date. " He toid sharcholders of Odeon Theatres, Ltd., and subsidiary companies that the Rank companies lost £3,350,000 on film production in the financial year ended June 25, 1949. - - At that date, he said, bank overdrafts on his film empire — onee worth > £06,000,000 — had risen to £16,300,000 l'roin £13,000,000. He said he and his wife had made a gift to the operating compan-y of £649,000, and that he had put up more seeuritv for a loan of £1,430,000, which he had guaranteed. j Critical Situation I He said that in the 556 pieture theatres controlled by the Rank group, the public paid £27,500,000 in admittanco during the year. Of this £10,500,-. 000 was entertainment tax. Mr Rank said: " It can now be seen| that our plans to meet the unexpected I and critical situation were too ambitI ious, that we made demands on cre- ' ative talent in industry that were beyond its resources, and that as a result we spread our production eapacity in which I still have an unshaken faith too thinly over the films we made." j Mr Rank said manv films made were not of the quality to ensure even reasonable returns. He said his organisation was discussing with a number of American companies the possibility of produeing a limited number of films in the Rank studios in Britain by using joint resources. He said American advice and close co-operation could influenee the acceptability of a film in the United States, while ensuring the film to be fundamentally British in conception. Mr Rank said relations with the Amrican film industry had improved. There was • an inereasing realisation on both sides : that if either was to be successful there must be friendlv rivalry and not bitter animosity. Saving Dollars Mr Rank said that, in the past, the company had fulfilled quota requirements scrupulously by produeing a large number of films. 'Complianee with the quota, while saving Britain dollars, which might have been paid for American films, had eaused the company 's losses. Mr Rank warned that more staff cuts at Denham and Pinewood studios were likely. (More than 1500 film employees have been thrown out of work this year by the film crisisy Mr Rank said that the direetors of Odeon Theatres, Ltd., had voluntarily agreed to waive their direetors' fees, and the exeeutives' direetors to take a big cut in remuneration. This had also | been done in some other companies in the group. Reaetion on the London Stoek Exchange to Mr Rank's report was for Odeon ordinary shares to fall a few pence to 8s 6d, but the priee quickly improved to 9s. The price a year ago was 30s a share^—