Variety (Apr 1949)

Wedneaday, April 13, 1949 PIGTIJIIES.. If Sales Execs Weigh Fox Rental Move; iee l^art Hedge vs. Divorcement duchon in Techni starring Betty Grable and Cesar Romero. Twentieth homeoffice toppers also saw parts of seven other films which are currently in production and scheduled for release the re- maincler of this year and early in 1950. Without making any direct tiein between the pictures screened and the 20th boosted rentals drive, Lichtman said he and sales veepee Andy W. Smith, Jr., will continue their national survey "until it is fully completed." He emphasized the company "will not make any announcement of any change in its sales plans until this exhaustive study of buying and selling conditions has been thor- oughly made." Twentieth-Fox homeoffice exec contingent, which had been fuddling with studio toppers on the Coast for 10 days, separated over the weekend for their respec- tive destinations. Prez Spyros P. Skouras and ad-publicity veepee Charles Einfeld are due back at the homeoffice tomorrow (Wed.), with Lichtman and Smith staying iTi California for talks with exhibi- tors' in the Los Angeles and San Francisco areas on 20th's drive for increased rentals. Exhibitor relations contact, Sam Shain, and Lem Jones, Skouras' assistant, are accompanying Licht- man and Smith. Ad manager Jonas Rosenfield, Jr., and assistant Considerable speculation contin- ues among sales' exess of other major companies on what's back of 20th'-Fox's sudden efforts to add to the income of the production-dis- tribution end of its biz by upping film rentals. General consensus is that'if 20th follows Paramount and EKO in divorcing its theatres, the production company aims to be in the best possible position prepara- tory, to that action. Aside from that, a point of con- siderable discussion among the dis- tribution men is advisability of SOth's frontal \assault method vs. exhibs. All the companies admit that they, too, are seeking higher film, rentals, but that th«y prefer tho approach of quiet negotiation with theatre operators. Salesmanager for a toD indie this week remarked: "I've never heard of Macy's holding a press conference or calling its custom- ers together at a luncheon to an- nounce it was going to push up prices. It's generally done quietly. When thisrfi_is..any_noise made, it It because prices are being re- duced." On the other hand, top exec of another major opined the. 20th way was the right way, despitfe the fact his own company wasn't using it. He explained: "When you go to each theatre man separately, you get nowhere but in trouble be- cause each one thinks he's the only fellow you're hitting. He fears he's being singled out for higher terms, and he resents it. When you make a big fuss about your at- tempts to get more money, such as ,Fox is doing, exhibs know that they're all in the same boat and there is much better chance of suc- cess since they have'-no room for individual squawking." Most of the. reasoning against the Establishment of a special three. meUjods of 20th sales execs Al man committee of 20th-Fox home- Licbtman and Andy Smith, Jr., is | ofl'ice sales execs to pass on all that too much opportunity is given \ film rental deals means a perma Joe Gould Aides 20th Ad Manager Rosenfield Joseph Gould, Universal-Inter- national homeoffice ad-publicity staffer, was tapped this week by 20-th Fox ad-pub chief Charles Einfold as 20th assistant advertis- ing manager. In his ne v post he'll serve as copy chief and assistant to ad manager Jonas Rosenfield, Jr., who was recently upped to that Job following the exit of Christy Wilbcrt. Wilbert this . week joined the Charles Schlaifer ad agency as copy chief and a member of the planning board.' Schlaifer will take over the 20th account starting May 15. Evelyn Ahlstrand, former space buyer for several top agen- cies, also joined Schlaifer's outfit this week as media director. Gould's appointment is the latest in a string of department changes effected by Einfeld since he joined 20th in February. indie exhib leaders to get their tomahawks honed before the actu- al effort at upped rentals is made. Theatremen are whipped to such combativeness that the salesman hasn't much chance wljen he final- ly arrives, it is said by some execs, This opinion would seem to b© borne out by the quantity and ve- hemence of the bulletins of exliib organizations, particularly those in the Allied States Association, in the'past few weeks. Many distrib execs, on the other hand, however, are prone to brush off these- squawks as unimportant. They say they are instigated by men with a personal interest for stirring up a flurry—^either be- cause of their own theatre opera- tions or because they are paid execs of an exhib organization and are just ifying their salaries. Ex- penence" has beeiir mostT~disffil5s" agree, that an exhib will not stick with his organization in a fight if he can gain a personal advantage in terms for his theatres and the decision in the Fox battle won't- come until the salesmen actually arrive on the premises. 20th Eicecs Scatter Hollywood, April 12, As further cannon fodder in 20tli-Fox's fight to obtain increased film rentals, 20th veepee Al Licht- man publicized his reviews of eight HQw films he and other 20tli execs had seen during their studio huddles here last week. "We have seen the product which will fully back up our customers, and help them to increase the high level of theatre attendance wliicb they are presently enjoyihg," Lichtman said. With a pat on the back for pro- duction veepee Darryl F. Zanuck, Lichtman mentioned Clare Booth Luce's "Come to the. Stable," star- ring Loretta Young and Celeste Holm; "You're My Everything," ^echnicolor musical for Septem Technis Record Profits Augiffs Record profits and sales rejport- ed by Technicolor for 1948 is be- lieved in' the industi'y as the prel- ude to an early announcement that the company will cut its print rates. homeoffTcT'pubri'cili''cW^^ Reduction in the normal quantity .1 release printing charges by Cine- color last week is expected to speed Techni's move in the same direc- tion;,--; '^Xiition by Techni is predicted in the industry because of an undeir-i standing 'Which the majors have with the tinting outfit. Tlie under- standing, verbal rather than writ- ten In form, is that the company is entitled to reasonable returns, and that the rate can be revised up or down to keep within a fair margin of profit. livan. who had attended the prod uct huddles at the studio, re turned to their desks Monday (11). Recentralization Of 20th-Fox. Selling Eases Fieldmen's Paper Work nent end to 20th sales veepee Andy W. Smith, Jr.'s, earlier at- tempts to decentralize such au- thority to his field staff. Permitting the branch and- di- vision managers to approve or re- ject contracts, it is believed, led only to a furthering Of what Smith has termed the "status q«o" con- dition in distribution, sihce many of the field men had begun almost automatically to sanction contracts patterned after those previously accepted at the h.o. Under the new picture - by - picture selling method, however, that situation no longer affords 20th an equitable split of the. profits on certain pic- tures, according to Smith, Hence, he said, the return to contract ap- proval at the homeoffice. It was also found that too many of 20tli's branch mana gers, book- efs~ and^salesmen undarthe^de^ centralization plan were so snowed under by paper work that they had no chance to go out and sell pic- tures, which, according to one 20th h.o. official, is basically their job. Smith indicated it may be possible eventually to turn back authority for approving some contracts to the field, after the h.o. has had a chance to I'earrange the pattern. Indie Distribs Cut Into Oii B.O. Plum I SinceLaunchingofJPBookingSystem Chicago, April 12. Republic's remarkable boost in Chicago revenues, gained since the n rv I r t rt ' j Jackson Park decision took over ror Daletvans Services r"ie of the windy city roost is shared by all the smaller distribs. Setlrial onLewynSuit Los Angeles, April 12. First round in the legal fight for the sei'vices of Dale Evans went to Louis Lewyn, indie pro- ducer, who is suing Republic and Herbert J. Yates for $250,000, charging breach of contract. Judge Houghton in. L.A. superior court denied a motion by Republic to dismiss the suit and set the case for trial. ' . Lewyn charges Yates with in- ducing the actress to return to Re- public to co-star with her husband, Roy Rogei's, thereby violating a pact to appear in a series ot indie westerns. As a result of the court's decision, Miss Evans must now an- swer another suit filed by Lewyn, demanding $80,000 damages. MPAA Reelects Johnston, £t al; New TV Committee To Coordinate Activities Motion Picture Assn. of America added a television committee to/ the roster of assighmients of its di- rectors at the meetings of the As- sociation's nieihbership and board in New York last week. New com- mittee, to be chairmanned by Jack Cohn, Columbia v.p'., has the tasTc of coordinating any matters per- taining to video which come before the MPAA board. Reps Of the 10 MPAA member companies met Thursday (7) to re- elect the directors and added Paul H. Terry, of Terrytoons, to the lineup. Board then held its first quarterly meeting the next morn- ing and reelected Eric Johnston prexy, and Francis S. Harmon and Joseph I. Breen as Veepees. Rate is now fixed at 6 22r ner Fred W. DuVaU was named Jrtdte IS now nxea ai o.^zc per trpoonvpr and Ridtipv Schreiber secretary. They had been acting in those positions since last year, when George Borthwick resigned as secretary - treasurer. Stanley Weber, DuVall's aide* was elected assistant treasurer. John G. Mc- Carthy, head Of the international department, and James S. Howie, of the MPAA staff, were elected as- sistant secretaries. Present at the directors' meeting Prizewinning Shorts Producers Try Another Same trio of documentary-mak- ers who produced "The Quiet One" on a budget of $28,000 is starting on a new project which they've budgeted at $*100,000. Group com- iprises Jdiifce Loeb, Hclefl Levitt and Sidney .Meyera^^ "Quiet One*" which was made to be shown to sociologists and teachei'S, won an Academy award nomination, and is currently playing art houses in various cities. It closes a nine- foot for Technicolor. After climb- ing slowly over a period of years until it reached 6.72c per foot, it was reduced to the 6;22 figure in April, 1947. Ciiie Cut its price some 26% from a previous charge of 6.0976c per foot on two-color process and to 5c per foot on three- color. Net take for '48 came to $1,775,- 834 against $l,422,752.in '47. Sales reached a record high of $20,016,- 066, compared to 1947's total of $17,407,975, Per-share earnings on outstanding common amounted to $1.93, against $1.55 last year. Techni set a riecord for features handled in '48^ Dr. Herbert T. Kal- mus, prez of the concern, reported. During-the year, 39 were handled, Lichtman-Brandt Continued from page 5 were Johnston, Nicholas' M. Schenck, J. Robert Rubin, r Joseph R. .Vogel, Metro; j:,ai"le W. Hammons, former prexy of Educa- tional; Steve Broidy, Monogram; Barney Balaban and Austin C. Keough, Paramount; Theodore R. Black, Republic; Nate and John J. __ O'Connor, Universal; Jack Cohn aXa'irat 3i ~fn~imf?^r»^eaiitei\^ AM^hsei der, Co lumbi a; Ned were turned out by the British af- " ''^- = -'■ "t^^^- filiate, against- five in the year be- fore. Program to double Techni's ca- pacity from 160,000,000 feet to 320,000,000 on positive prints is now almost completed. Dr. Kalmus reported. Expansion is estimated to cost $3,500,000. Despite the out- lay for added facilities, company has $6,000,000 in cash and $4,500,- 000 in net quick assets, Dr. Kalmus added. in the industry. The Chi bonanza, which in Rep's case has meant, a 54% hoist in revenues since the JP ruling, is due to better book- ings cornered by the indies be- cause restrictions on playdates in this city have left a large hole in theatre schedulies. Rep's gain was disclosed last week by Herbert J. Yates, company prez. In a state- ment to stockholders. ^ Chicago is now chewing up prod- uct faster than the majors can turn out product. The two-week ceiling on first-run Loop engage- ments in mujor-affiliated houses has resulted in the deluxers re- quiring a minimum of six new films weekly. The majors do not release that many films. First-run houses, therefore, are booking an increasing number of indie prod- uct to meet their requirements. Profiting, irom the situation ara- such companies as Republic, Eagle Lion, Monogram, Film Classics and the lesser indies. They have been able to cop bookings which ordinarily would have been gob- bled up by the bigger companies. Moreover, because the first-runs are feeding the Inabes faster, these houses also require more product with the Inevitable break for the smaller companies. The five Balaban & Katz Loop houses, the two BKO houses and one United Artist theatre must all change programs bi-weekly. The two indies. Oriental and Woods, can run films as long as they wish. Average on the eight, considering that some switch weekly, is six films every seven days. Climb in revenues for indie dis- tribs is not derived from better terms, execs stress. Their terms are approximately the sAme as ever. However, that important first-run business is the factor building their profits. been the most outspoken exhib critics of 20th's plan to boost film rentals, boycotted the meet set up by 20th two weeks ago with N, Y. exhibs. Continuing his attack against the 20th drive, Brandt averred this week that no exhibitor objects to a good boxoffice picture getting a fair share" of the profits, adding E. Depinet, RKO; Joseph Hazen, Hazen-Wallis; Albert Warner and Sam Schneider, WB. Committees and their chairman naihed by the directors are: Executive, Johnston; finance, Duvall; membership. Jack Cohn; theatres, Joe 'Vogel; public rela- tions, 'Blumberg; advertising-pub- licity directors and advertising ad- visory cbuhcil, Mort Blumenstock, WB; copyrights, Edwin P. Kilroe, 20th-Fox; exhibitor and comniuni- ity relatibns, Depinet; foreign legal advisory, Roger C. Clement, Para- mount; general counsel, Keough; International, McCarthy; distribu- tors, Abe Montague, Columbia; newsreel, Edmund Reek, Movie- tdnews; research, Charles C Mos- kowitz, taew's; solicitations. O'Con- nors; titles, Albert S. Howson, WB; and television, Cohtt,; Ors Welles Must Depose In 'Citizen Kane' Suit Piracy suit involving RKO's "Citizen Kane" took an interna- tional twist iVIonday (11), when New York federal court Judge Samuel H. Hoffman granted RKO's petition to take a vifritten deposi- tion of Orson Welles in Rome. Ac- tor is to write his answers to 42 questions submitted by RKO at- torneys before an American consul in the Italian capital. Judge warned, however, that the trial will start May 1 as scheduled, even if Welles! answers are not in by that time. . , " ' '~- ■ ■'. '■ ■ • Suit is penduig against RKO, Welles and Herman J, Mankiewicz, as filed two years ago by writer Ferdinand Lundberg. He claims "Kane" was lifted from his story, 'The Imperial Hearst," and is ask- ing an injunction against the film's exhibition, an unspecified amount of damages and an accounting of the profits. he would leave it up to any im- ber release witrioan^'DaiTey "a'ncl i week run this week at the Little; partial tribunal to determine what Anne Baxter; Will James' "Sand" {Carnegie. N. Y;, where it garnered the "fair share" comprised. But. July 4 opeSng "Hous^ of S^^^^^^^^ the produc-1 down the line. He said many the- Sevs." starring 'Edward G. Robin-i t'O" cost- | atre-operators are threatening to son and Susan Hayward; "It Hap-' Over Veto Vs:Wfrack Betting Welles' French Suit Paris, April 12. Orson Welles, currently in Mo- rocco filming "Black Rose" under Harry Hathaway direction for 20th- Fox, wUl be named defendant in a suit for $30,000 refund o£ moneys, plus $1,000,000 damages. Claimant is producer Jacques Gauthier, who promoted "Portrait d'un Assassin," currently filming with -Arletty and Maria Montez and in which Eric von Stroheim completed a part before he left for the U. S. When Gauthier was looking for names, he signed Welles as supervisor of the pic- ture but latter, when denied what changes he considered necessary Albany, April 12. Legislative reps of exhibitor or- ganizations breathed easier when Governor Dewey vetoed the in the script, refused to'perform Becker - Hullts bill providing for | and lammed out, meanwhile having the creation of a temporary com-^ been paid. mission to study the subject of j Gauthier contends that the pie- pari-mutuel beting on horse races j ture now is just a Erench pictui-» New' film which the group is,'submit their gripes to tJie courts 1 outside of racetracks. The Slate i with usual chances of international " ' "" - " • - - ■ Welles was a tenta- PenS Every SprinK" baseball S^^^^^^^ other major companies follow Constitution was amended eight sale, whereas when We with Ray Milland Paul Douglas' documen^^ a story of adoles- 20th's lead. years ago, to permit paiu-mutuel connected with it, he had and Jean Peters- "Princ^^^^ showing the difficulty of Brandt pointed out, incidentally, betting inside racetracks. Law' tive deal for England with the Foxes," filmed in Italv with'Tw^ «wt 20th might have done one makers unexpectedly passed the! ABC circuit, agented by John I'ovver, Wanda LXix and Orson: adult worid. It will be shot in good thing for exhibitors. "This off-track measure m closmg days; Mills, on which he was to have Welles; "Thieves' MarS '' with ^ unlike in 16m. It was found fight," he said, "has done more to of session. I been advanced about $1,000,000. Richard Conte and Lee J Cobb, i too difficult to work in the; unite them than anything that's and "Beautiful Blonde from Bash-' narrow gauge and too expensive to j happened in the industry s his- i'm Bend," Preston Sturges pro- blow up for theatre showing. I tory. Exhibs felt that legalization of, In the U. S., he said, Loew's In- off-traek hetting would have dealt; ternationai prexy, Arthur M. Loew, a severe blow to their theatre biz. had promised him booking.