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After the picture is in release and the recoupment of the budget is met, C.M.A.'s pre-production investment will come out of the first share of the profits.  With slight variations, we, as a producing company, can expect to share in approximately 50% of the profits.

With the advantage of having C.M.A. equipment and facilities available, we should be able to greatly reduce the budget of this picture.  In such a case, this would naturally increase the profits.  I have made a tentative budget breakdown and am convinced that the final budget won't exceed $300,000, which, I may add, is an exceptionally low cost for a picture of this calibre and attractive to the studio financing this production.

If additional interest is shown because of the contents of this letter, I would be pleased to discuss it personally at further length.

Yours truly,

Ferde
Ferde Grofé, Jr.
Columbia Sunset 
1422 Lyman Place
Hollywood 29, Calif.
Phone: NO-4-2131

FG/jl