Variety (Apr 1949)

PROD. SHORTAGE FACES B'WAY Tortone' on Filins' of an Era' Many industryites are taking exception to the conclusion of For- tune in its current (April) issue that films have "reached the end pf an era and are about to embark on a new one." Mag, in a lengthy study of the industry, observes: "With boxoffice down, foreign revenue cut, critics pained^ old fans dwindling, reorgani- , zation at hand and television looming, the motion picture industry , may be turning a historic corner," it states. Only sharp exception that can be taken to Fortune's Conclusions , is that the industry is moving toward independent production. No doubt there will be more indies in the future, it is agreed, than durtaig the present low, but the mag's reasoning that the future lies with the lone wolf filmmakers is obtuse and difficult to follow. Fortune concludes:"All of the arts have changed several times . in the past 50 years; it would be natural for the movies to do so again. ... An era in the world certainly ended [with the war] and the decline in the boxofEice may reflect it. The industry itself is .,.. going through an economic crisis in production, and is moving on to independent production, a freer market, a focus on the do- mestic market; a government controlled market abroad and a con- test or a rapprochement- with television. Can anyone, then, say that an era in th6 movies has not ended and another not begun? " Alleged B.O. Cuts by B way 1st Runs ' Already Wavering; Scales Elastic Broadway flrstrun straight-film-f theatres began, showing signs of wavering on the reduced price lineup even as early as last week. Managers of houses which held to their, early-bird matinee scales or minor reductions claimed it was simply an instance of reverting to type, hinting that some of the widely plugged admission slashes were made with little intention of stick- ing to them. Other exhibitors frankly admitted they would up i their scale as soon as they got a I sock picture—something that, the i Criterion did with "The Set-Up." ; . In :this regard, considerable ad- vance interest is being displayed over whether the Globe will stick I to Its current scale if "The Cham-1 pion" tees ofl? big. The Criterion, | weekdays, held to the advertised | 50 cents until noon, then tilted to j 70 cents and by 3 p.m. was getting i 80 cents with $1.10 for logos. The Astor, which claimed it dropped its opening price .30 cents down to 60 cents, was getting 70 cents by noon, weekdays. After that the scale varied largely according : to the flow of business. House has been asking $1.50 at night or $1.80, WB Refuses to Sell To Triple-Bill House Chicago, April 5. . Warner exchange is nixing book- ings for Balaban & Katz north sider, Belmont, when house is showing subsequent triple fea- tures. Theatre has been running trio pics for last several months, but not as steady policy. When house books single or double features^ Warner sets its product. Indie Coin Ease ViaBlumenthal, Rathvon Outfits? DELUXERS' NEED FOR m mm ■ Broadway's showcase operators, currently in a terrific scramble for major film product, see the race for top firstrrun films growing even: more intense before the year rolls out. Handicapped by their lack of first-call on any one company's output of films, the indie deluxers on New York's mainstem are par- ticularly hard hit. The drought is expected to last until Hollywood comes through with its promise of a big burst in releases, expected I to break late in the year. In the, battle for product, the, anti-trust divorcement blues : is playing its part, at least for those houses which have been axed from the majors. Problem for the Para- mount and Palace, currently tied to Par, and RKO, will also conced- edly be a stiff one for theatre man- agement when their divorcement goes through; Rivoli and Criterion are already facing a shortage of top product. Problem was spotlighted : last week when the Paramount booked Columbia's "Under Cover ; Man," first outside film to get the house's nod in six years. Showcase was forced to book the pic because the faster turnover, caused by shorter runs, found the home company un- able to: supply enough new pix to keep the deluxer going. No further call on. outside prod- uct will be made by the Paramount i Pushing their entry into the theatre, it is said, because enough | large-screen theatre television field home features are lined up to | one step further, group of metror carry the theatre through October, i politan New York exhibs have To do so, however; house will re-1 taken on Nate Halpem, former ceive practically every Paramount i ass't to Dr. Frank Stanton, presi- film (excepting one or two for the | dent of Columbia Broadcasting Radio City Music Hall) released | System, to survey the possibilities during those months. This, means of an early move in that direction, that the Rivoli, partly owned by | Halpern. who is also an attorney, Par, must look elsewhere for film I is quietly operating out of the Other Distribs Favor Rental Boosts But Sans 20th-Fox s Tuss About It' No 20th-ITOA Meet Delayed meeting of 20th:Fox prez Spyros P. Skouras and Harry Brandt and his Inde- pendent Theatre Owners Assn. to kick around the claims and counter-claints made by both may never.^come to pass. Following ITOA's boycott of the 20th execs' session with New York area exhibs Friday (1), Brandt invited Skouras to attend a meeting called by, the ITOA for April 14 at the Hotel Astor, N. Y. Skouras flew to the Coast Friday night, however, and isn't expected back until April 17. Even if he returns earlier, it is doubtful that he would "cater to Brandt by attending that meeting," ac- cording to a 20th homeoffice spokesman. Ex-CBSer Aiding N.Y. Exhibitors On Big Screen Video -+ Consensus among the sales top-, I pers of other major ,film companies r I to 20th-Fox's present drive for in- I creased film rentals is that most : I of the distribution chiefs either I already have begun their own cam? ■ I paigns to boost rentals or planned> I to do so in the near future^ They } were -unanimovisly puzzled, how- ' ever, over 20th's "making such a fuss about it." They feel the ticklish job: could be handled much .' easier through quiet' negotiation; with the exhibitors involved. Sales chiefs generally agreed: that good boxoffice product is en- titled to a .better dear than it is QOW'getting from: exhlbs.-But,. theji ^ pointed: outt ''if we can show our customers we have better pictures^ we will get better terms without hitting them over the head." They, concurred in the general beliejt that film selling, unlike that in ■ any other industry, must remain ; a. system, of barter and therefore; , c'&nnot be pinned, down : to an^ cut-and-dried rule. As one of therti pointed out, "what we call show- manship is really merchandising, ' and that goes for our negotiations with exhibitors as well as with: the j public." I Distrib bosses observed some j exhibs may now^ be paying all they. I can- logically afford :for pictures. 1 "We have to remember," one of ; them said,- ''that; just as we might 1 have been forced to close our stu- i dios if production costs had kept (Continued on page 18) : depending on whether it is early in | the run, and also if a sock picture i or ■ not.'' ■■ ■ ■ ■ I Palace further chopped its scale i (Continued on page 20) Joe Curtis (Pickford) In Hassle for U.S. Rights To Korda's 'Winslow Boy' Sir Alexander Korda's film Winslow Boy," has landed in "The the. middle of a battle over its U. S distribution rights currently being waged by Korda on one side and Joseph Curtis, Weiss & Geller ad agency e^cec, and his partner, Mary Pickford, on the other. Curtis, who had an option on the American rights to the pic which expired last week, intends serving notice on all film companies that he still claims exclusive handling. ' . :-..It is Curtis' contention that he made a valid offer to Korda for the payment of 125,000 pounds, price set by the option, in Lon- don for the U. S. rights under some sort of arrangement through Considerable easing of the: finan- cing situation for indie producers is seen if A. Pam Blumenthal de- termines to , follow N. Peter Rath- von into setting up a picture in- vestment unit. Blumenthal, film; financier, who recently bowed out as board chairman of Cinecolor, is in New York from the Coast cur- rently investigating the feasibility of reorganizing an indie produc- tion financing outfit similar to those he formerly operated. Rathvon, former prexy of RKO, was also east recently on a similar project. Both men are known to feel that a production boom is close at liand :and there will be plenty of room for indie packages to be made for profitable distribu- tion. Blumenthal is understood weigh- ing the advisability of going ahead 1 with his 4)wn organization as 1 against tying up with one of the I majors to get packages together for a studio.. Present talks with distribs in New York will probably de'termihe his cOiirse. If other com- panies, aside from United Artists, indicate a willingness to take on indie product for release, he'll diet;.-': Dire shortage of product is dramatized by several unorthodox deals made by City Investing's ASt tor theatre. This house, considered a choice Broadway outlet, has (Continued on page 22) Goldwyn's Selwyn Still Questing a 'Teresa Wright' William E. Selwyn, casting di- rector for Samuel Goldwyn, will be in New York for another three weeks in his search for a femme to replace Teresa Wright on the producer's - talent roster. Selwyn has narrowed the field down to about five but is understood "still not .happy with any of them:" Talent snooper is on the hunt for a gal to play opposite Goldwyn contractees Dana Andrews and David Niven. Miss Wright, who formerly handled these roles for the producer, left the lot after a battle with Goldwyn a few months ago. Theatre Owners of America's N. Y. headquarters. It is believed: that Halpern is not working directly for TQA, but rather for the group of circuit ops interested in early large-screen de- velopment. However, this group, headed by Si Fabian, is closely tied to TOA and any constructive re- sults of the Halpern survey will Andy Smith Ticketed For 5 More Years As Part of Lichtman Deal Andy Smith, Jr., 20th-Fox's dis- tribution veepe, was; handed a hew. flve-year ■ employiiieintticket ais part: of, the dduble-baWelted : deit:, that brought Al Lichtman into the company as a sales consultant, it has been learned. The new con-, tract, fixing his paycheck at $1,500 weekly, amended an old pact which would have terminated Dec. , 31, 1950. Both the Smith contract probably be made available to all j and one for five years given to TOA members. Lichtman were simultaneously ap- Tagging of Halpern is believed proved by 20th's executive com- to be in line with exhibs' desire to : mittee Feb. 17. obtain all available information on The Lichtman contract specifi- prlce of equipment; legality of the creation of an exhibrsyndicatcd television company; and possibili- ties of booking exclusive programs. In another move made last week, TOA again showed its preoccupa- tion with video prospects.: Group has joined the Society of Motion Picture Engineers as^ a sustaining member. While the step was osten- sibly made to explore all fields of mutual interest in theatre engi- neering, main concern is with tele- vision. Gov't Now Using Par-RKO Decrees As Divorcement Club Vs. Holdouts the Bank of America and the Bank probably go ahead on his own. of England. Deal to clear the nec (Continued on page 22) Otherwise, although he's said to be I bullish about the prospects for LA, [he's ag'in putting all his eggs into I one basket. Upbeat in indie production GABLE ASKS METRO FOR ' Alf TA nA AIITCinit Pirlooked ifor by Blumenthal as a re- Va lU UU UUlOll/E rivi sun of the faster playoff of product ■ • Hollywood April 5 | "ow taking place. This has created Clark Gable, known for yeare" as i « f"'". which the the "King" on the Metro lot. would '"^J"": companies are takmg up Hfce to tU a portion Of his do-!-'Ll'l/t';[n'r«';^-in'r'^=\ mam tor a chance to make one pic- ture a year outside his regal realm. understood Gable is dissatisfied With the roles handed him since his return from the war and wants to take a chance at least once a year on another lot. Gable has not made a picture off the Metro lot since 1934 when he won an Oscar in a loanout job at l^olumbia in "It Happened One Night." . he feelSj will also bring a greater share of b.o. to producers, thus making indie financing more at- tractive. COI'S RE&ULAE DIVVY Columbia has declared a regu- lar quarterly dividend of: $1.06V4 per sliare on outstanding cumula- tive preferred stock. Stockholders of record May 2 will collect the divvy May 16< Washington, April 5. . With Warners, Loew and 20th- ! Fox apparently set for a long siege I in the current phase of the anti- I trust proceedings, the Government last Friday (1) urged the trial court to slap the trio of defendants with a complete theaU:e divorce- ment order/ In its brief, the anti-trust divi- sion argued that the three defend- ants should get no better deal than RKO and Paramount agreed : to in their consent decree. Should the trio avoid divestiture, it was argued, they would become more: powerful than ever because of the elimination of Par and RKO com- petition. The Government claimed that the settlement proposals of War- ner, Loew and 20th were "wholly inadequate." "The de- fendants' competitive bidding evi- dence," said the brief, "establishes that, flrstrun exhibition privileges cannot be gei}erally licensed on a competitive basis in cities over 23,000 so long as the major de- fendants own flrstrun theatres there. "Only four of the eight distri- butor defendants offered any proof at'- all of competitive selling since the decision of this court, and only Fox and Loew of the remaining majot defendants offered proof to show the extent to which they ac- tually used competitive methods. "No evidence wfts : offered to show that Columbia, United Art^ ists. Universal or Warner gave any' independent flrstrun exhibitor in any of these cities an opportunity to compete for the exhibition of its films on first run "In view of the extremely limit- ed number of firstrun situations involving affiliated theatres where: competitive bidding or competitive negotiations were permitted, we must assume either that many more requests for such competitive (Continued on page 24) cally provides that the former Metroite "will concentrate his ef- forts upon improving our distribU'- tion methods to the end that we shall obtain a wider distribution of our product and enhance our. film, rentals therefrom." Lichtman's ticket gives him $60,000 for the first year and $35,000 annually thereafter^ plus all travelling ex- penses. Twentieth's intentions to boost rentals are clearly indicated in the Lichtman pact. It says: "You (Lichtman) will recommend such changes in policy and methods as you deem an improvement over the present policy and methods. You will use your best efforts to train our sales organization so that it will accommodate itself to any : such policy and methods as are . (Continued on page 63) BENJAMIN, LAWRENCE i ACCOMP RANK WEST j: Both Robert Benjamin, hea'd of* j J. Arthur Bank's U. S. office, and ! Jock Lawrence, exec veepee, ac-. ■ companied Rank yesterday (Tues.), I when the latter shoved off for the' I Coast. Benjamin and - Lawf enee I will remain on the Coast one weete j with the British film magnate I while the latter visits his daughter, I Mrs. Fred Packard. I Rank, Benjamin and Lawrence. 1 are expected to return together, I heading for Washington where the 1 Britisher is slated to participate in the Anglo-American Film coun- ' cil meets. Rank came north from ; Florida to join his two aides for I the westward trek. He was visiting i Robert R. Young, railroader who [ controls Pathe Industries, parent i org of Eagle Lion.