Variety (December 1954)

Wednesday, December 1, 1954 Pictures * > ♦ > ♦ » ♦ ♦ »♦ ♦+♦♦♦♦♦♦♦♦♦♦444♦ 4 4 ♦444H > »♦»♦♦♦ ♦ f ♦ ♦♦♦♦♦♦♦ + ♦♦ 44♦ ♦ ♦ »»+♦♦♦♦»♦<+ Milton E, .Pickman will hold, the production reins on films financed by Distributors Corp. of America. He joined the organization over the; past week as exec in charge of production and as.such Will have various approval rights, including scripts and talent, involved in DCA-.aligned indie pix. Pickman, now on the Coast, has been assigned to “Finian's Rain- bow,” feature cartoon adaptation of the Broadway musical,, which is now being co-produced by Maurice Binder and DCA. Exec also al- ready is bn the prowl for studio. . space and production facilitiesjplus business Offices. * Pickman recently .terminated a two-year contract with Columbia Where he was a production exec and previously was y.p. and gen- eral manager of the^Wald-Krasna indie unit at RKO. He negotiated Col’s purchase of Jerry Wald’s and Norman Krasna’s stock interest in this company, and this led to Wald’s and Pickman’s association with Col. Wald continues as exec producer. DCA’s riCW production topkiek also had a key. role in agenting the deal by which Cecil B. DeMille made “Greatest Show Ori Earth” in a tieup with the Ring-ling Bros. Barnrim & Bailey Circus. Italy Pulls Q.T. Tax Switch on Yanks '■}. ♦NEW YORK DISTRIBS ALARMED AT SCHEME TO START BITE WHEN EACH L\S. :: I NEGATIVE GATHERS <12,000 IN RENTALS—RUSH TAX COMMITTEE TO ROME • ♦ ♦ tf t ♦ » ♦ , »,♦♦♦ . , ,> , , f ,, ♦ VhV ■ ^ two-man Motion Picture Export Assn, tax Committee is currently in Rpme in an attempt to stave Off van Italian move to drastically alter the base on which the American film companies there compute their tax payments. Italy's tax system till now has been somewhat flexible, with all taxpayers on what’s called “analytical” .basis. That involves a tax of approxi- mately 30% on the net income as far as the U* S. outfits are concerned. ' y Italians have now revived a 1951 law which, if enforced, would, ^work great hardship on the American companies in that it, would radically alter the concept of where a motion picture starts to show a taxable profit. Proposal sets the negative Cost of any American import at an arbitrary 8,000,000 (about $12,000). Anything above that Would be considered/ taxable income. MPEA has protested this scheme as un- fair and is plugging for proper allocation of nega- tive costs to arrive at an equitable tax base. American protests have resulted in delays, and there have been no assessments as yet against any of the film companies ori the new basis. However, the Italians have^ made it. clear that faxes since 1951 have been paid on a provisional basis and that implementation of the law would automatically in- volve retroactive assessments,; Spokesmen for the companies Say that such a: move would be virtually prohibitive. Pointing to a prior example in France, where the French at- tempted to impose an 8V6%. “turnover” .tax on both the N. Y. share and the local take, the Ameri- can execs maintain that the Italo example, should it set a> pattern, would make it difficult to do busi- ness in Europe. The two-man MPEA delegation, consists of Albert Fisher (Loew’s) and Thomas O’Sullivan (WB). William Roberts, the MPEA's. tax expert, returned from Rome recently where, he obtained a post- ponement of the tax imposition to allow negotiations; Enigmatic Justice Dept. National for Bankroll Hollywood, Nov, 30. Edmund Grainger has decided riot to wait on the Dept, of Justice for its approval of a plan whereby National Theatres would put up financing for some four features Grainger plans to shoot. The late Charles Skouras made the deal, National’s board okayed it, but the Dept, of Justice is not to be speeded. Uncle Sam’s sanction was a necessity, since National circuit is under consent decree. Grainger now expects backing from non-banking sources in New York. His first will be “Treasure of Pancho Villa.”*"' Germans Excel Yanks In One Area: Documentaries Hollywood* Nov. 30. Hollywood pictures still over- shadow native German product in quality but German producers are now turning out documentaries which rival the best of all other countries, according to Prof. Hein- rich Rodenstein, director of Teach- ers Training College, Brunswick, Germany. Visiting here as the guest of the Assn, of Motion Picture Producers, he said Germany makes widespread use of films for teaching. .Roden- stein added that transportation dif- ficulties prevent natives from see- ing as many Hollywood pix as they’d like but often they see the sairie filrii three or four times. in Memphis, Nov. 30. Motion. Picture Theatre OWners if Arkansas, Tennessee and Mis- ;issippi .will hold its 45th annual iowwow at the Gayoso Hotel here Dec. 6-8. Some 600 delegates are ixpected. Event will be skippered >y James Carberry of Little Rock, Dther. officers are Leon; Rountree, lolly Springs, Miss., board chair- nan; with Alton Sims of Memphis lerying as the convention’s general ihairman and Nona White of Little lock,/Little Rock, vice-chairman. Delegates Will discuss high film ■entals; shortage of product and ixhibitor encouragement of indie iroductions during the three-day session. National TOA convention flans will also 'be kicked around, dong with session Of “how to use v to the advantage, of the motion flcture theatres.” Conversion Of drive-ins to Ci - maScope has been “disappointing” this season but the ozoners are ex- pected to climb on the widescreen bandwagon in much larger num- bers in 1955. Equipment dealers, -for whom 1954 has been the most profitable year since the industry’s conver- sion to sound, say the fiutdoorers this year were! still hesitant to make the switch. According to 20th-Fox figures, some 1,300 drive- ins did install the wide screens. That still leaves almost 3,000 to enlarge their screens. Indoor exhibs, going for Wide screens and the anamorphic lenses, are also, still buying stereophonic sound which has been considerably reduced in price. And aome ozon- ers are going for magnetic hrixers as a means - of improving sound quality. According to National Theatre Supply, stereo sound for a small house Can now be had for as little as $2,800. Price doesn’t include in- stallation,. nor does it take in the sidespeakers. NTS execs say ex- hibs are hesitant to lay out the money for those speakers since they feel that the studios aren’t putting enough stress on the fourth, or “surround,” track. GIRL WATCHERS’ KIT It’s For Male Film Crix But Terrell Loves Distaffers Latching, on to a recentlyrpub- lished Harper & Brothers book called “The Girl ;Watcher ’ s Guide,” by Don Sauers, Metro has issued a. promotional kit termed a “pictorial supplement” to the Guide. The original is a takeoff on bird watching, substituting the observa- tion of the human female! After some preliminary comments on girl watching, Sauers makes some con- crete suggestions for beginners,, in- cluding an exercise to raise per- sonal standards of beauty, so the watcher does not waste time watch- ing inferior subjects, The author suggests the watcher obtain “from every source at your disposal” as many pictures as possible of peo- ple like Cyd Charisse, Greta Garbo, Gina Lollobrigida, Pier Angeli, etc. That’s where Metro steps i . pro- viding the pictures (of M.-G stars, Of course) for the girl watcher to study so “they will eventually have some effect on your powers of se- lectivity.” The kit, being sent to film editors! is the brainchild of Metro publicity manager Dan Ter- rell who has provided some addi- tional text, the- most 'important from Metro’s point of view are: v . . “You may want to share them with fellow girl watchers in your community. If so, the easiest way is to print one or more in any pub- lication in which you happen to have influence.” In an editor’s note, . Terrell states: "This booklet was made with the malri movie editor in mind. A1 Lichtman, 20th-Fox director of distribution, Wants exhibitor complaints about 20th’s sales .policy stated specifically and he guaran- tees “prompt 1 action” ori them. But don’t talk “in terms Of generali- ties.” Lichtman thus expressed himself in answer to beefs that some less- er-heeled theatremen were unable to buy Cinemascope films on flat rental although the distrib exec had declared this as his company’s policy, E, D. Martin, president of The- atre Owners of America, was quoted in last week’s Variety as saying he found exhibs in. a few key areas Who claimed they were refused such non-percentage deals, Martin further urged that Licht- man send a directive to his field personnel advising them of the policy, the point being that Licht- man .apparently hadn’t already done this, Lichtmari’s reply was in a letter to Martin, He branded as “ridicu- lous on the face of it” the sugges- tion that his salesmen weren’t kept posted on policy. Hb added:. “Let me state that this (refusal of flat rental deals) may be pos- sible because there are no halos (Continued on page It) OUT The Of Forms Usual Advertising rates prevail Special exploitation advantages Copy and space reservations may be sent to any Variety office LONDON, W. C. 2 8 St. Martin’s Place Trafalgar Square. NEW YORK 36 154 W. 46th St. HOLLYWOOD 28 6311 Yucca St. CHICAGO 11 612 N. Michigan Avs. . Floyd Odium, president of At- las Corp., thinks RKO is Worth! more to. Howard Hughes, within the latter’s own network of varied enterprises, than to priyone else. 1 What’s more, he told this to Hughes arid Hughes agrees with him.. Comments to this effect were made by Odium yesterday (Tries.) at the annual; meeting of Atlas stockhiNders in :N.: Y; Odium re- lated that about last June he “thought” he and Hughes had ari agreement on a buyout of the pic- ture company, but the new tax law,, upon study, was. found to require a different approach to terms. There’s still a possibility of an accprd On acquisition of the prop- erty but Odium/ frankly stated he can’t see it. “Pbrhaps Mr. Hughes and I will find a common meeting point as to the economics and values of this, particular unit, al- though I am inclined to doubt it, particularly as long as others keep making proposals that seem to be based on lack of knowledge of all the facts.’’ (It’s no trade secret that numerous individuals arid groups have been angling for deal with Hughes, all without suc- cess), '' Regarding other -Hughes hold- ings,. Odium told the Atlas share- 1 holders .that the two sides , “dis- cussed never negotiated” a take- over of. Hughes Tool Co. Oral agreement had been reached, he. added, for Atlas’ acquisition of Hughes Aircraft “but we never could get that meeting of the minds into definitive form.” This leaves RKO Pictures Corp. to be dealt With; A holding com- pany, whose only asset is the cash (Continued on page 20) With ‘Vera Cruz,’ UA Is First to Market Film In Although RKO has been the one company lending its studio facili- ties arid otherwise supporting the development of Superscope., United Artists will be the first to market with a picture that's been 'treated in that process. Developed by the Tushjpsky Brothers, S’soope is a method of making anamorphic prints of regularly-lensed pix for widescreen presentation. RKO’s first Superscoper, “Un- derwater,” jane Russell starrer, is to be sold In January., UA’s re- lease of “Vera Cruz,” Gary Cooper- Burt Lancaster costarrer, is set for unveiling at 19 regional premieres around the Christmas holiday. Hecht - Lancaster Productions, producer of “Cruz*’ decided on S’cope handling when the Tushin- skys recently progressed to the point where any pic in that system could be used with Cinemascope projection equipment. S’scope.films project at a two-to-one ratio. Louis Kaufman Won’t Control 244, Walsh Told Louis. Kaufman, former business agent of IATSE Operators 3 Local 244, Newark, N. J., has witri’drawn as a candidate for that ..post, the local has notified; International prexy Richard P. Walsh. This followed Walsh’s calling attention to the fact that one of eight stipu- lations agreed to in 1951,, when the international restored auton- omy to the. Newark Ideal; was that Kaufman should not hold any of- fice for a period of five years, Kaufman had sought to tegain the post he had held for .20 years before he was convicted in 1945 in Federal Court on the charge of extorting money from film com- panies. He served three! of his seven-year sentence in a Federal prison before he was paroled. Af- ter his conviction, the IA declared a state of emergency and assumed control of the local’s affairs. The IA restored the local’s autonomy in 1951.