Motion Picture Daily (Apr-Jun 1950)

iav, May 26. 1950 Motion Picture Daily elznick Wins 60% of U.A. Stock Offered (Continued from page 1) British Terms (Continued from page 1) he joint distribution contract which e Korda rights to certain Selzmck ures and properties in return for 7nick distribution rights here to -ral Korda pictures. Pattersons ision is subject to court approval, "he decision stipulates that (1) znick is to release promptly m 3r of Korda's London Films all r.ykfi deposit in escrow from exit-VjSgf "The Paradine Case" m the itcd Kingdom, at the same time •a~ing London from depositing furr funds in escrow, (2) London is deliver promptlv to Selznick negaes of the "The Third Man" and §e formal assignment of the Westi Hemisphere rights to Selznick, ) London is to make added scenes ■imptly for Selznick's version of one to Earth" for the Western misphere, or such of those as Selzk mav designate, provided he makes lilable the services of Jennifer les at overtime pay rates specified written agreements, and the probers are to share the expense of ,"king the scenes, (4) London will iver promptly to Selznick "Gone to Irth" for Western Hemisphere ex>ition, with world rights to go to lznick after 10 years from the date initial release. No Re-takes Needed tors, which appointed Gradwell L. Sears, president; Arthur W. Kelly, executive vicepresident, and Vitalis L. Chalif, a director, a committee to negotiate for the sale. The three are on the Coast now and Sears said there last night they had conferred with a prospective purchaser of the treasury shares yesterday but declined to identify the party_ for the present. He said his committee had not contacted a syndicate headed by Harrv Popkin, UA producer, nor did he know such a syndicate existed, but indicated that such an offer would be considered. Popkin and Joseph Justman, another UA producer, were in conference yesterday in Hollywood and are reported to be attempting to interest other producers in forming a syndicate to bid for the stock. ■Patterson ruled that London has the i;ht to distribute "Gone to Earth" .'the Eastern Hemisphere in its prest form without retakes or added enes, and Selznick is denied injunc-e relief in this respect. He denied mdon's motion to have the contract scinded, and denied London's claim 250.000 pounds from Selznick. The m. Korda claimed, was due London r distribution of Selznick's "Por kit of Jennie" in the U. K. Expenses of putting escrow funds ith Bankers Trust from exhibition "The Third Man" in the U. S. will • charged against the funds held in '■crow. Selznick, it was ruled, is not ititled to secure from Korda costs ipenses or counsel fees incurred by ■e withdrawal of duplicate negatives f the picture from the laboratory. The ruling calls for payment of $6,|l)0 for Patterson's services, the exense to be borne equally by the litiants. Selznick, who is in Paris at present, las quoted .yesterday by his New ''ork office as follows : "I am delightB that this whole Korda business is low behind us. All that are needed pe 10 days to two weeks of retakes 'tid additional scenes, and I have very hope that we can do those next (ionth." Selznick's counsel in the action was .ames V. Hayes of the New York law rm of Donovan, Leisure, Newton, -umbard and Irvine, and Milton kramer. Korda was represented by Louis D. Frolich of Schwartz and lrrolich. It was reported in Hollywood that if the deal is consummated it would be followed by executive exchanges except for Sears who would continue as president for the term of his present contract. Sears, Kelly and Chalif conferred with Bernard Giannini of the Bank of America in San Francisco on Wednesdav and went to Hollywood from there yesterday. They are expected back in New York next week to make a report to the UA board. Mary Pickford and Charles Chap lin, owners of UA, each hold 4,000 shares, or 40 per cent of the total stock. The 12,000 shares being offered for sale was held at various times by Douglas Fairbanks, D. W. Griffith, Joseph M. Schenck, Samuel Goldwyn, Sir Alexander Korda and David O. Selznick, before being re-purchased by the company when each withdrew from it. The company has established no selling price for either a bulk or a per-share sale of the 12,000 treasury shares, that being left open to nego tiation with prospective purchasers. Value of the shares being offered is difficult to appraise but probably ranges between $4,500,000 and $5,500,000, on the basis of the most recent sale attempts. It is known that an offer of $4,000,000 recently was rejected by Miss Pickford and Chaplin. Earlier, the two had offered an option to purchase their stock at $2,700,000 apiece, or $5,400,000 for their 8,000 shares. No deal was concluded and the price probably has depreciated somewhat since. Despite the fact that 12,000 shares Mohrstadt President (Continued from page 1) Cochran, Little Rock, vice-president " rom Arkansas ; Dwight Blissard, ,}kolona, vice-president from Missisi ippi ; Cullins, Memphis, vice-president iJ:rom Tennessee ; Lyle Richmond, Sr., ,oenate, vice-president from Missouri; yvVhyte Bedford, Hamilton, vice-president from Alabama; Lyle Richmond, Si., Senate, secretary-treasurer, and 1 \rthur Rush, Houston, manager. are now being offered for sale, financial circles do not believe that it can bring more than the $5,400,000 asked by Miss Pickford and Chaplin for their 8,000 shares, and may not bring as much. That is because 100 per cent control could be obtained by the purchase of the Pickford-Chaplin shares, which would carry with it company title to the treasury shares. On the other hand, purchase of the 12,000 treasury shares will bring only 60 per cent ownership and would leave Miss Pickford and Chaplin as partners with the new interests, which is not considered a desirable factor among groups which have bid for the holding's of the two in the past. Past Deals Balked Inability of Miss Pickford and Chaplin to agree on sales terms has balked several deals in the past, notably one which was brought right up to" the signing stage by a syndicate headed by Si Fabian, Fabian Theatres head, several vears ago only to have the deal killed by Miss Pickford' s lastminute indecision. Decision by the board to offer the stock for sale was made after Miss Pickford and Chaplin had been advised that the board saw no other al ternative unless the company owners advanced new money with which to meet its current obligations. Apparently there was no affirmative response from -Miss Pickford and Chaplin and the board approved the sale. Under the circumstances, there is industry speculation as to whether or not Miss Pickford and Chaplin will reassert themselves should a sale of the stock appear imminent. UA has adequate product on hand and in view but cash receipts have been lagging for some time. Sears recently asked representatives of producers releasing through the company to be more realistic in their consideration of exhibition deals offered and, simultaneously, the company ceased pre-payment of producers' shares of receipts. It is now paying producers after collections, rather than concurrently with billings, a difference of about three weeks. Some principals who have examined the United Artists situation recently with a view to acquiring an interest in the company feel that in addition to the approximately $5,000,000 purchase price, another $5,000,000 is needed either for production financing for top outside producers or to place the company itself directly in production. They express the conviction that distribution operations alone are not profitable in today's market. (Continued from page 1) for 11:15 A.M. The time was designated in order to give Board of Trade president Harold Wilson an opportunity to make an announcement, if an agreement is reached, in the House of Commons before it adjourns for the Whitsuntide holiday. No clue to the area of compromise introduced into the discussions Wednesday night by Gaitskell leaked out officially today. Howevei, it is generally assumed to provide for an easing of the British demands on which Wilson and his delegation had been standing earlier. Dislike Original Offer They called for reduction of annual film remittances to America by $7,000,000 ; abrogation of the present 27 permitted uses for unremittable sterling and • the investment of such balances either in 10-year government bonds, bearing annual interest but redeemable only at the prevailing rate of exchange at the time, or in British production. Companies investing in production here would be permitted to withdraw an additional 1.4 dollars for every pound so invested.' The American delegation had regarded the demands as wholly unwarranted and unacceptable. That the approach to a compromise at tomorrow's meeting has been opened is evidenced by the wide discussion and careful consideration being given by members of the American delegation to the Gaitskell proposals. Ginsberg Lists 28 (Continued from page 1) Amusement Income (Continued from page 1) 1948, against 44,917 in 1939. They employed 331,625 workers in 1948, compared with 223,687 in 1939. Officials said that while the totals included ball parks, legitimate theatres, bowling alleys, skating rinks and a score of other amusements, by far the largest single category was motion picture theatres. A separate breakdown on nationwide figures for motion picture theatres will be ready in the fall, although the Bureau hopes to start early in July making public separate totals by states. April Admission Tax (Continued from page 1) running ahead of 1949. In February, collections were close to $5,500,000 behind 1949 while in March they were about $1,800,000 behind. The Bureau said that collections in April amounted to $27,394,996 compared with $26,307,280 in the previous April. Industry officials charge that the Bureau figures are not a true reflection of the industry's economic health, since they do not reflect the increased number of theatres, higher operatingcosts, or increased competition. Paramount has also set release plans for about 21 pictures for 1950-51. Most of these have already been completed. Set to start next month are Billy Wilder's "Ace in the Hole," with Jan Sterling and Barbara Rush, and Bob Hope's "The Lemon Drop Kid," based on a Damon Runyon story. Crosby, Boyd Co-star Other productions on the list are : "Pardners," with Bing Crosby and Bill Boyd, to be produced by Paul Jones ; "Detective Story," which William Wyler will produce ; "The Trial," Frank Capra to produce and direct. Also, "The Keystone Girl," with Betty Hutton, George Marshall directing, Joseph Sistrom producing, in Technicolor; "The Rise of the Goldbergs," with Gertrude Berg, Mel Epstein producing; "The Dark Wood," Robert Fellows producing; "If I Should Die," Sistrom producing; "Look, Ma, I'm Dancin'!" from the George Abbott play, Sistrom producing, Betty Hutton stars; "Dear Mom," William Holden and Joan Caulfield, Robert Welch producing; "Shane," Fellows producing; "This Is Dynamite," Alan Ladd, Fellows producing; "Carrie Ames," Wyler producing; "Famous," Crosby, Charles Brackett producing. Also, "Nor All Your Tears," Sistrom producing; "This Side of Happiness," Irving Asher producing; an untitled production which Leo McCarey will produce; "The Greatest Show on Earth," Tehnicolor, Cecil B. DeMille producing. Now before the cameras are: "Mr. and Miss Anonymous." Joan Fontaine, Ray Milland and Terese Wright, Stevens producing and directing; "A Relative Stranger," Gene Tierney, John Lund and Miriam Hopkins, Brackett producing and Mitchell Leisen directing. Additionally, Hal Wallis has three scheduled: "That's My Boy," Dean Martin and Jerry Lewis, Cy Howard tentatively set to direct; "Quantrell's Raiders," Burt Lancaster and Wendell Corey, and "Night Man." William Pine and William Thomas are slated for three for the balance of the year, all in Technicolor: "Passage West," John Payne, Dennis O'Keefe and Arleen Whe ,lan; "Crosswinds" and "Column South," tentative title.