Variety (December 1954)

4 PICT1WES - « Wednesday, December 8, 1954 Showmen s Imaginations Rocking; What Goes (Down Drain) If Big Features Don’t Do Sock Business? As film budgets continue to4 spiral into the stratosphere, ob- servers are beginning to show more than passing concern over the realism of the industry’s new "high, wide and handsome” look. There’s no denying that even the big features earn costs back—if they’re successful at home and abroad. But the risks involved in possible failure to „do anything short of sock business are grow- ing along with the upswing in budgets. The answer, as these tradesters see it, is a combination of road- show and harder selling if these high-budgeters are to be put over the tpp. It also implies a greater concentration on the key money- making houses. Darryl F. Zanuck. 20th-Fox pro- duction head, told Variety in N. Y. last week that production costs on the new 20th features had risen 60% over the pre-Cinema- Scope era. "There’s No Business Like Show Business,” as an ex- ample, cost in excess of $3,000,- 000. Adding to this the print cost, which runs to about $600,000, dis- tribution fee, $1,000,000 in ad-pub expenditures, etc., the picture will have to take in $8,500,000 before it begins to show a profit. But “Show Business” is compara- tively small potatoes. “A Star Is Born” has a nut of some $8,000,000 to overcome. "The Ten Command- ments,” the upcoming Cecil B. DeMille epic, will cost around $8,- 000,000. The projected “War and Peace,” which Mike Todd plans to make, has a budget estimate of $7,500,000; the “Birth of a Nation” remake, with $750,000 reportedly spent on book and title alone, is sure to run into many millions, etc. Some industry execs feel there’s a definite limit in the present mar- ket on how much a picture can earn, and they hold that the per- centage of hits and misses, while somewhat changed due to the new systems, still favors the misses. They warn that someone may eventually get badly hurt in over- estimating what the global b.o. traffic can bear. Quibble Over Kinescopes Balks Columbia Buy Of Hemingway ‘Trees’ Novel Columbia has a deal on to buy the screen rights to Ernest Hem- ingway’s “Across the River and Into the Trees.” Basis bf the ac- quisition is a guarantee of $100,- 000 against a percentage of the gross. However, a part of the contract is developing into a controversy, reportedly over the specific mean- ing of “motion picture rights.” Col is said to be insisting that kine- scopes of any live television show based on the property are “motion pictures” and as such should come under Col’s control. Hemingway’s reps take the op- posite stand, contending that tv in any form is separate and apart j from pic production. « Outcome of the differences on this one point is not expected to upset the deal for Col's purchase of the story. KING BROS. DECLARES 5c DIVVY, ITS FIRST Hollywood, Dec. 7. For the first time in its history King Bros. Productions, Inc., has declared a dividend. It amounts to five cents a share, payable Jan. 10, 1955, to stockholders of record Dec. 22, 1954. Frank King, head of the com- pany, stated that its financial posi- tion is solid, with cash and re- ceivables amounting to $285,857, compared with $42,984 a year ago. He also disclosed that gross film rentals for the fiscal year ending Aug. 31 amounted to $1,920,917 as against $548,253 for the previous fiscal year. HUGHES CASE DRAGS ON Judge Won’t Dismiss—Reich Wins His Point NY Harold Tribuna Syndicated Column’it Hy Gardner in his excellent bestseller, "Champagne Before Breakfast" has a humorous chapter on What's an Actor? * * * a bright byline piece in the » ,. forthcoming 49th Annivermry Number of P^ifilETY die sooy 4 U.S. Distribs Jointly Erecting Brazil Exchange As part of a plan to reduce for- eign distribution costs, four U. S distributors have joined iq a proj- ect to build a joint film exchange building in Brazil. That’s the second such venture to be undertaken by the companies. The first is in Indonesia, where the distribs are obligated under their agreement with the Indone- sian government to erect exchange facilities. Country is very short on housing facilities. The Brazil project involves Uni- versal, Columbia, Warner Bros, and 20th-Fox. It’s expected to cost in excess of $200,000. However, the companies seem to feel that it’s a sound investment of their blocked cruzeiros. Operational savings also are expected to result from this merger of facilities. Each outfit will continue to work as a strictly separate entity. Some other dis- tribs were invited to join, but re- fused. Proposal to combine shipping facilities, particularly in the small- er territories, has come up from time to time over the past few years, particularly in answer to the threat of rising distribution costs. Metro and 20th-Fox have gone some ways towards solving the problem by handling one another’s product in certain territories. How- ever, on the whole, the companies have shied away from mergers. Short Story Writer Sues, Charges ‘Little Fugitive’ Lift From Magazines "Little Fugitive,” an offbeat film about a child lost at Coney Island, was lifted from, two of his magazine stories, writer Seymour Gomberg charged Monday (10) in a $800,000 infringement suit filed in N. Y. Federal Court. Named de- fendants in the action are Joseph Burst .mi Inc., distributor of the picture; Little Fugitive Inc., pro- ducers Morris Engel and Ray Ashley as well as co-director Ruth Orkin. Ashley is credited with wriling the screenplay. Gomberg, who also wants an accounting plus damages of not less than $250 for each alleged in- fringement, asserts that "Fugitive” was pirated from his 1947 Collier’s mag yarn, “The Shrimp.” and an- other piece of his, “The Rest Cure,” which ran in Cosmopolitan the same year. Defendants, accord- ing to the complaint, converted the stories for their own use a»d plagiarized a “substantial portion” from them. Picture, incidentally, was first shown in the U. S. in 1953. PAGNOL’S ‘WINDMILL’ READIED FOR U. S. Marcel Pagnol’s “Letters from My Windmill,” edited with a spe- cial view towards release in the U. S., has been acquired by Tohan Pictures, headed up by Herbert Steinmann. The film, based on the Alphonse Daudet novel, has been cut to 130 minutes for its American release from the original 180 minutes. Preston Sturges is currently in Paris supervising the making of the foreign version which is due in N. Y. next week. English titles for the pic were prepared joiutly by Pagnol and Sturges. Los Angeles, Dec. 7. The U. S. Circuit Court of Ap- peals for the ninth district has de- nied a motion to dismiss the mi- nority stockholder suit filed by Eli and Marion Castleman and Louis Feuerman against Howard Hughes and RKO. Ruling indicates more litigation in the long battle of stockholders. Attorneys for the Castlemans and Feuerman had asked the ap- pellate division to dismiss an ap- peal taken by Beverly Hills attor- ney Bernard Reich from dismissal of the suit by Federal Judge Har- rison on Sept. 27. It was contended that Reich had been discharged by thq defendants and had no author- ity to file such an appearance. Court agreed with Reich's claim that he represents all the stock- holders and that his primary re- sponsibility was to expose alleged fraud and collusion. Lawyer Leppert Readies His Spanish Feature New Orleans, Dec. 7. George Leppert, law r yer-prexy of newly-formed indie film outfit | here, Draw Poker Films, Inc., left Saturday (4) fir Pasadena, to negotiate contracts with vet char- acter actors Oliver Prickett and Morris Ankrum, who will be fea- tured in firm’s initial production to be filmed in Spain this spring. Leppert will also confer with Ed Ainsworth, hu scripter, in Hollywood. He leaves for Madrid Jan. 1 to complete plans with technicians in Spain. Oscar Stalks Shorts Hollywood, Dec. 7. Academy of Motion Picture Arts and Sciences mailed out entry blanks to producers of short sub- jects for consideration as Oscar candidates. Deadline is Jan. 3. Major and indie producers were urged to deliver their films promptly for preliminary screen- ing. 20-Year Tax Moratorium Durango (Mex) Comeon For a Picture Studio Hollywood, Dec. 7. As an incentive to American film makers, Gov. Enrique Torres Sanches has offered a 20-year tax moratorium to any producer who will build a motion picture studio in Durango. Mexico. Offer was made through Joel Rosas, director of tourist traffic in Durango. A studio there would not only attract tourists but would pro- vide jobs for workmen. Trans-Lux 15c Divvy Ei ard of directors of Trans-Lux Corp. declared a 15c per share dividend on the company’s stock last week. Coin is payable Dec. 20 to all stockholders of *recocd Dec. 13. N. Y. to Europe George Black Geraldine Brooks John Byram Jeannie Carson Betty Comden John Davis Bernard Delfont John Ford Edward P. Morgan Elliott Nugent Brian Roxbury Muriel Smith Vaughn Williams Europe to N.Y. Sonia Arova Wilson Barrett Guido Cantelli Robert Clark Stubby Kaye Moura Lympany H. J. G. Newman Alexander Paal Otto Preminger George Simenon David Whitfield Disney a Name-Dropper And the Names Are Those Of His Theatre Releases By GENE ARNEEL Five shows in the Disneyland tv series on ABC have made it clear in the picture business that Walt Disney is a name dropper, the names being the titles of his theat- rical films. The producer plugs away for exhibition of his pix via pictorial analyses on how they’re actually lensed plus straight com- mercials. At this point the series ’ well established as a unique merger of tv and pictures for the mutual ad- vantage of both. The ratings re- flect the wide penetration which the programs have achieved. Pic tradesters opine it would be a toughie to measure the boxoffice impact inherent in the spotlighting of the new product for theatres. That there is a hefty payoff, though, seems for sure, they add. Outside of one or two straight plugs, Disney’s attention to his theatrical wares is not obvious “sell.” The behind-the-scenes ma- terial on how the cameramen op- erate, for example, make for straight entertainment. Yet, of course, it can’t fail to stir interest in the finished product in its en- tirety. As for the unadulterated puff stuff, here’s an example of a plug set for airing on tonight’s (Wed.) edition: "Walt Disney’s production of Jules Verne’s fabulous adven- ture story *20,000 Leagues Under the Sea’—in Cinemascope—will open Christmas week in 60 leading cities.” The cast names are there- upon listed and the title and open- ing week repeated. HAROLD ROME MAY . CLEF LITVAK FILM Deal is in the works for Harold Rome, composer-lyricist of the Broadway hit, "Fanny,” to perform the same duties for the first of the three pictures which Anatole Lit- vak will deliver to United Artists. This will be Rome's first excursion into films. Rome has been associated with such Broadway tuners as "Wish You Were Here,” “Call Me Mister,” "Pins and Needles,” and others. Under the arrangement for the film, Rome would work much in the manner as he does for a Broad- way show. He’ll be closely asso- ciated with the scripter, as yet un- selected, and provide the tunes to fit the story line instead of writ- ing a series of unrelated songs. Picture will be filmed abroad, either in Paris or Rome. COLDER ALL WAYS Disney’s Deal in France Hints Odium Chill On Proof positive that the deal for Floyd Odium to take over RKO from Howard Hughes is now stone cold was seen last week with the assignment of two Disney pix to George Lourau, leading French producer-distrib. Lourau, who is currently In N. Y., acquired the films, $20,000 Leagues Below the Sea” and “The Vanishing Prairie,” for dis- tribution in France and Belgium. Releases are being handled in the U. S. by Disney’s Bueno Vista Dis- tributing Corp. Reasoning is that. W'ere there still a chance for Odium to get RKO, Disney wouldn’t have made the Lourau deal. Odium is a major shareholder in the Disney org. Therefore, it’s figured, if Odium did get RKO, the chances are good that the Disney outfit would return to the RKO fold which then would handle the pix worldwide. N. Y. to L. A. Charles Boyer • Howard Dietz Roy O. Disney Judith Evelyn Eddie Fisher Charlton Heston Cyril James Jack Mills Paula Morgan Carol Ohmart Johnnie Ray Pete Robeck Leon Roth Ed Sullivan Dan Terrell E. C. Walker Who’d Get What Tax Benefits From Odlum-RKO Buy? Suggestion has been made within the film business that RKO Pictures Corp., whose control is being angled for by Floyd Odium, may not have vast tax-saving ad- vantages after all; RKO Radio, which is the production-distribu- tion company owned 100% by Howard Hughes, actually has all these benefits. Odium, who’s head of Atlas Corp., an investment trust, has stated he’s out to take over RKO Pictures, in part because of a capital loss carry forward of $20,- 000,000. In other words, the hefty deficit sustained in recent years could be used to offset whatever profits are earned in the near future, for tax purposes. To ac- complish this, Odium must obtain control and place the corporation into some kind of business en- deavor, since all of it now is a corporate entity with cash, about $15,000,000, as its only asset. Atlas owns 1,200,000 shares of RKO Pictures, Hughes holds about 1.262,000 shares, and the balance of under 500,000 shares is held by the public. Hughes so far has re- fused to okay Odium’s takeover and at the same time has refrained from cashing in his stock, as has been his privilege, at $6 per share. At an Atlas stockholders’ meeting in N.Y. last week, Odium said he believed Hughes would agree to Odium’s management control by Dec. 1. Some N. Y. pic execs who have known RKO from the inside through the years say the fiscalis- tics are plenty tricky. No doubt about that. And they pose the heretofore unheard of theory that Hughes is holding the trump cards, curred the $20,000,000 in losses ary. It was RKO Radio that in- company; RKO Radio the subsidi- RKO Pictures was the holding and reported them up to RKO Pictures. Now, both are separate entities. So which of the two has the privilege of balancing future profits against the big losses of the past to take advantage of the loss carry forward section of the tax laws? It has been assumed right along that the holding company fell heir to such benefit. And because of this, Odium has paid over $6 per share in acquiring his stock block although the stock, if it were to be redeemed, would return him $6 flat. Say the film men who allegedly are in the know; RKO Radio is the company that had the losses and, since it’s still in business, is the one with the tax saving privi- leges. There’s a rub. The company must rack up some profits before there can be any tax saving. And the Hughes operation is continu- ing in the red. L. A. to N. Y. Jess Barker Paul Birch Daniel J. Bloomgarden Roy M. Brewer Hoagy Carmichael Gary Cooper Percy Faith Jose Ferrer Robert Francis Reginald Gardiner Bernard Girard Barbara Lawrence Francis Lederer A1 Lichtman Art Linkletter Joshua Logan William Lundigan Tony Martin Kenneth MacKenna Carmen Miranda William J. Moclair Sam Nathanson Paul Newman George Nichols Cathy O’Donnell Jean Peters Roger Pryor Louis de Rochemont Eva Marie Saint Joe Shribman Louis Smith Rod Steiger Mary Ellen Terry Lew Wasserman Franz Waxman Robert Wells May Wynn Ben Yost