Variety (December 1950)

W^dncsdoy, December 13, 195<^ PICTlinBS BM LOANS Warnei* BrosV has placed price lags on 32 theatres In the eastern area which the major plans to part witli in observing its antitrust suit <jivestiture program. Total comes to $4,450,000. Four other spots with asking price not indicated also are on the blocks Houses are located mostly in New Jersey, Connecticut, Pennsyl- vaiiia and Ohio. Some theatremen who have studied the list of properties, as circulated by real estaters Berk & Krumgold. say they’re not too eager to biiy. One circuit operator, wiio is known to be always ready to expand when the right kind of deal presents itself, said he believes the WB package to be urirealistical- ly evaluated in the light of falling boxoifice revenue and prospects for tlic fulurc. The circuit op added he figures the prices set by the nuijor would have been closer to market value duiirig the peak l946- '47 era, but not today. Prices for the individual prop* cities range from $10,000 for one spot, which had a $20,000 deficit oiieratidn, to upwards of $400,000. A iiiong the most expensive of the houses listed is the Mayfair, New- ark, which WB figures is worth $370,000. This is owned in fee. Others in this class, also owned In tee, are the Carlton, Pleasant- viile, N. J., $325,000; Bristol, Bris- tol. Gonn„ $275,000, and the Lib- erty, Sharon. Pa,, $325,000. Major is asking $110,000 for its lease, , (Continued on page 29) Linet Sales Promotion Mgr. in Realignment Under V.-P. Lipton New sales promotion depart- ment has been established by Uni- versal, with Henry A. Linet, who had been eastern advertising chief, nained sales promotion manager. Succeeding Linet in the ad post is Jell Livingston, promotion super- visor for J, Arthur Rank product released through U. Latter will coulinue handling the Rank pix in his new position. New appointments, which were disclosed by national ad^pub chief l)a\ id A, Lipton yesterday (Tues.l, were said to be in line with the firin’s policy of more closely in- tegrating the ad-pub and sales.de- parlments. Closer coordination of U’s studio, home oftice sales department and «‘ul*pub force was linked with the appointment of Lipton, ad-pub chjei since 1949, to a vice-presi- (’eney. Last week's board action elevating him to the post was said to have been prompted by his con- tributions toward more closely knit organization. U board also bestow- . Lipton the new title of stu- dio sales coordinator. Lipton first joined the industry jn 191^1 with, Balaban & Katz. At one time he was ad-pub chief for Co tumbia PicturCvS. . Si Fabian odvocates Harnessing TV for Bene fit of Film B.O. ■* ':■* : an intereifing byline pUea In the forfhcertilng 45 th Anniversary ISurtiher of P’SSHETY , R. W> Rowling Head Gohfidence : w h i c h a trio of i banks and an insurance company exhibited via . their giant money deal with. United Paramount Thea- tres this Week proved the biggest, uplift the industry has received j from outside finahcwl sources in ; the past several years. The j $45,000,000 credit established by i tjPT riot Only bolstered the morale of the entire industry but also had the effect of servirig notice on the trade’s detractors that the business hardly could be headed for any early demise. That the traditionally cautious 1 bariking institutions regarded a major circuit as a good investment also meant a greater sense of con- fidence for skeptics within the trade itself who suspected they j Were traveling On uncertain ground. Healthy finaricial state- merits from an industry concern al- ways are a helpful factor for the entire business. But the fact that. outsiders entrusted such a mam-1 moth sum to a single operation was as heartenirig a development as could be hoped for, it was said. Narrowed down to the im- mediate deal, it obviously reflects UPT’s robust fiscal condition. ^^Theatre TV Is Bom^^ ■ Nathan L. HalpeFii ; n " a ■ an intarettlng tdiforiol foatiira In tha forthcbmlng iSth Ahniversary ISumher of J'^SaRlEfr Artists Alliance. Indie unit formed by Mary Pickford and Les- ter Cowan five years ago, w^as dis- solved on Monday dl) after seven months of negotiation. Cowan re- ceived all rights to 12 properties owned by AA in return for a cash payment to Miss Pickford and as- sumption of all the unit’s liabilities. Cowan also acquired Miss Pick- ford’s residual interest in the two films made by AA. They are “One Touch of Venus” and “Love Hap^ py.” Former may possibly show a profit eventually through reissues and foreign playoff, while the lat- ter appears fairly certain of wind- ing up in the biack, worldwide. Bank of America advanced the coin to Cowan for the payoff to Miss Pickford. The deal also re- leases him from a commitment for production of two pix to be deliv- ered by AA to United Artists. This provided a $50,000 producer’s fee to Cowan for each pic, plus 50% of the profits. The partners each threw six properties into AA whep it was or- ganized. Those which Miss Pick- ford contributed and to which (Continued on page 29' I Ben Goetz Due From England for M'G Talks Ben Goetz, Metro’s British pro- ; duction chief, is scheduled to ar- I rive from England Dec. 28 and ; leaves the following day for the j Coast. I Goetz will spend several weeks I huddling with M-G studio officials and also visiting with his son, Hayes Goetz, Metro producer. Mrs. Goetz accompanies him. Part of the credit; will be used to retire the circuit’s nreserit indebt^ edriess of $24;286,000. Huge money program means an availability of an additional $20,- 000,000 in cash with which to buy out theatre partners and, as has been strongly reported in unoffi- cial quarters, acquire the Amer- ican Broaclcasting tele network, or to otherwise expand in TV. Regardless of how the money is used (UPT states it is earmarked for “general corporate purposes”), the immediate effect of the new borrowings will be a hefty saving in interest rates. Present indebt- edness of $24,286,000, which is slated for retirement, carries an intere.st rate of 3\2%. This is in the form of a $17,500,000 loan (Continued on page 31) Wald-Krasiia Buy ^‘Rain^’ Screen rights to Somerset Maugham’s “Rain” were ac- quired this week by Jerry Wald and Nornian Krasna. Lester Cowan, who obtained the rights from Mary Pickford in dissolution of their Allied Artists indie unit, received $100,000 from W-K, part in cash and part in deferments. Pro- ducers received all rights to the original Joseph Schenck- United Artists film (1932) and the stage play, Cowan has also made a deal for Elmer Rice to re-do his 1929 play (subsequently a Sam- uel Goldv^’^n picture), “Street Scene.” Producer, who also obtained the property in the A A dissolution, hopes to refilm it as “Street Scene 1951.” Chicago, Dec. 12, Balaban & Katz circuit, in a move [ apparently designed to escape the ' two-week playing time proviso of the Jackson Park decree^ is ex- pected "to turn over management and booking of its United Artists theatre here to the house’s co- owner, the UA Theatre Circuit. B&K will retain its interest in the theatre, however. Circuit, which was once the king- i pin of the Chi exhibition system, [ has been gradually reducing the . number of its downtown theatres; I Switch in management of the UA will leave the circuit with only three Loop operations, the Chicago, Roosevelt and State-Lake. B&K also Owns the Garrick, W’hich has been shuttered since' last summer because of a lack of product. According to Tom McConnell, at- torney for the Jackson Park the- (Continued on page 25) « Formation of a new U. S. dis- tributing company patterned along the line of the Selzhick Releasing Organization was disclosed simul- tanepusly in New Xork and Lon- don yesterday (Tuesday). Part- ners in it are Ilya Lopert, Sir Alex- ander Korda and, a groiip headed by Robert W* Dowling, president of the City Investirig Co., big New York real estate, firm. To be knowri as Lopert Films Distributing Co„ new setup Will send its initial plc; Herbert Wil^ c o X ’ s Anna. Neagle-starrer, “Odette,” into release in Feb- ruary; It will handle the Korda product In the U. S., starting with a group of seven films, and will also take on other British, Eu- ropean and offbeat Hollywood pix. New setup, which already has some art theatre holdings, Wdll en- large its circuit, Dowling said yes- terday. He refused to name towns, except to point out it will operate a house now building in Syracuse, Rather than set up an exchange system. Lopert, who will serve as prexy, 'plans to follow the SRO lead in riaming reps in a number of key cities. They will handle all important bookings, wdth lesser tail-end accounts possibly being sold by one of the established dis- tribs. SRO’s residual selling is han- dled by Eagle Lion Classics. Lopert said he had made no approaches to any company on this problem yet and was, not entirely certain how it would be handled pending further study: Likewise, he said he had not determined how many regional sales reps he’ll have: SRO (Continued on page 31) See Continued Delay In Reachine Accord RKO Gets Rome Court OK to Seize ’ RKO homeoffice foreign depart ment has been advised that the i major’s Italian subsidiary has been ' given court approval in Ronte to seize the original version of “Stromboll,” subject of dispute be- tween the company and producer 1 Roberto Rossellini. | Film was being distributed in! Italy by Union Films of Rome, i which claimed to have obtained I the rights from Rossellini. Latter has charged that RKO, when it re- ceived the film in Hollywood, I edited it to the extent of impair- ing its entertainment value, The RKO version Is now tied up in cus- toms.:':- ;■ Both the Council of Motion Pic- ture Organizations and Theatre Owners of America are deter- mined to bring their differences to a head with minimum additional delay, fearing that a continued state of indecision could prove al- most as detrimental as the ulti- mate possibility of their abandon- ing peace efforts. Meeting between the Ned E. Dcpinet committee , representing COMPO and the TOA group head- ed by Ted R. Gamble, held in N. Y, last Thursday (7), was represent- ed as an “informal preliminary session” at which not too much was accomplished. The lack of defi- nite actiori apparently Was caused by the absericc of two members of the pepinet group. Harry Brandt, president of N. Y.’s Independent Theatre Owners Assn., and an offi- cial representative of Allied States Assn, both failed to show. It ap- pears that Depinet wanted the lat- (Continued on page 6) PRODUCERS BRANCH TO BE SPirr BY ACAD Hollywood, Dec. 12. ^ Reparation of preseiit producers hranclv into executive arid produ- branches was approved by Academy board of directors, to lake effect after the next Oscar <1orl)y. Reparation was proposed by ncpvly-formed Producers Guild, '' Inch persuaded the Academy that ''oiking producers should have tiK‘ir oAvn section, not to be ihclud- executives and» other Of- n('ials. However, procedure for pi eseiitation of the Oscar for best PK'liire will be changed In upcom- jng awards affair as suggested by I'oducers GuiId le .i.ders. Actuallv, Piaiducer of the winning film will Jlei the^ Oscar under the new s.vs> L'ln. with studio getting a dupli- caie. The Of Forms closing shortly Usual Advertising rotes prevail Copy and space teserYations may be sent to any Variety office NEW YORK 19 154 W. 46th St. HOUYWOOt) 28 6311 Yucco St, CHICAGO 11 612 N, Michigan Ave. LONDON, W. C. 2 8 St. Martin's f loea Trofalgor Squora 'SUBSCRIPTION'TELE GETS BAIBOURN NIX Tororito, Dec. 12. “Subscription” television stands little chance of success, in the opiriion of Paul Raibourn, Para- mount Pictures veepee. While riot merttiohing Phoneyision by name, he said he doubted that any scram- bling device could defy the “ih- yeritive genius” of the average 18- year-rbld. Raibourn’s thought clear- ly was that home viewers would soon latch onto the knowledge of how to make set adjustments lo unscramble the signals vvithoiit fear Of beirig billed by the spon- sors. I Speaking before the Canadian i Television Glonference, Railboijrn declared the average family is pay- ing $100 annually for a TV set purchase, installation and service. Seen as further explaining the drop in theatre attendance Was his comment that home audiences are giving 10 of their 30 leisure hours weekly to TV viewing. When ra- dio first became popular, he added^ it took six to seven hours of leis- ure time at home.