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ON THE MARCH Eberson Sees
by red kann End of Barriers,
HOLLYWOOD
ALL of his attractive [on paper] lineup of things to come made no difference L to the United Artists board of directors where David O. Selznick was concerned. The instructions handed their representatives by Charlie Chaplin and Mary Pickford bore the fruit determined for them. The partners are proceeding with legal ways and methods of finalizing a break.
While the place for lawsuits to find their airing is in the courts set up for such purposes, it continues to be a peculiarity of this business to endeavor to try them before a linotyper instead of a judge. Thus, it is common property that the two partners jointly controlling two-thirds of UA, would seek: To end the Selznick contract on the ground he broke it via package deals ["Jane Eyre," "The Song of Bernadette," etc.] with 20th Century-Fox several years ago and latterly with RKO ["The Spiral Staircase," . "Till the End of Time," etc.]
To have returned to the company the shares now held by Selznick in the tune of three-fifths of one-third of UA on the strength of the above allegation.
Claiming no breach and also claiming the stock he now holds was earned through delivery of product as per contract, Selznick will fight back. He is expected to resist by way of protecting what he regards as his, not in order to remain in a company where a majority no longer wants him or his wares.
Incidentally, but likewise importantly, this is the place on the typewriter to slip in the observation UA control and UA management are not necessarily of one and the same viewpoint ; that UA management, principally concerned with distribution, has great and proper respect for grosses which means it must have great respect for Selznick. Example: "Spellbound" will hit approximately $8,000,000 worldwide. But management can go only so far with directors who have their orders after which management either shuts up or gets out. No one has gotten out.
At any rate, the Selznick Releasing Organization with the show-wise initials "SRO" is preparing to enter business. To no one's possible surprise, Neil F. Agnew will head the works here in< the home market and around the world as well. "Duel in the Sun" which Chaplin and Pickford are refusing to accept for UA, will be first on its longdetermined road-show basis, supported thereafter by approximately ten big-scale attractions per year. Even in these days of declining extended runs, the calculation is that as few as ten — provided they have the necessaries— can keep any first run gainfully occupied most of any year's 52 weeks, and perhaps all of them.
The well-seasoned Agnew, moreover, will not require the kind of sales force normally identified with full-scale distribution although his percentage formulas will be full
scale enough. He is unconcerned over adding what he needs to complement what he has already, finds that reader penetration of trade paper reporting has brought in more applications than he can dispose of. For the opposite number, Selznick executives maintain they have "been inundated, practically, with production propositions since "SRO" announced itself. The bandwagon routine seems to be holding its own.
There was never any serious question about the finals in this fracas although there was speculation and a good deal of inaccurate guesswork in some directions. Instructions to Chaplin's three directors, and Miss Pickford's trio, were clear. While intermediate jockeying caused the board to delay, eventually it got around to those instructions and took the steps foreordained.
ONE of the worst guesses of all showed up in Hollywood, the fact is. The UA sales organization, almost to the last man, breezed into town to take a gander at what publicity described as $25,000,000 in unreleased product. Included was "Duel" and "Arch of Triumph" which together knock off about $9,000,000 of the publicized total, less their prints and most of their advertising.
Because the UA group actually did see a working print of "Duel," some reporters were ill-advised enough to draw the flat conclusion birds of peace were chirping merrily over the household. Ignored was the fact the directors were to meet two days later in New York where they voted what they did. Probably not known, however, was the more vital point implicit in Selznick 's position.
Until the board acted, he had no other course but to proceed in any and all directions provided in his contract. One of these directions, by determination, was screening "Duel" for the men who were charged formally with its distribution. Had he refused or had he found excuses not to screen, Selznick felt — and the probability is he was very well advised — he would be giving credence to a state of affairs which, at that precise moment, had not even happened.
This is why the UA sales staff saw the attraction. It becomes largely a by-product that Selznick also collected some word-ofmouth advertising for "Duel."
It seems to make no difference now, but for whatever interest may be in it, Selznick spokesmen say they never were genuinely disturbed over the potential road-show conflict between "Duel" and "Arch of Triumph." They support their position by pointing out their film was so set up months ago and that UA had been fully informed. Therefore, they claim priority over any and all other contenders showing in the UA lineup. What, then, would have happened to "Arch" if both attractions we're to clear through the same distributor ? To that, they rejoin, "Better ask Enterprise."
Building Spurt
The prospects of new theatre construction are bright and the coming year will see the beginning of the removal of Government barriers to theatre building, it was predicted in New York this week by John Eberson, of John and Drew Eberson, theatre architects.
Mr. Eberson said a crumbling Veterans Housing Program, signified by the recent resignation of Wilson Wyatt as national housing expediter, will bring about the elimination of many commercial construction barriers. But the amazing feature of this circumstance, he said, is that "in no way would the construction of theatres since the end of the war have interfered with veterans' housing construction."
"Thousands of theatres in the United States have outlived their usefulness," Mr. Eberson said. He described these houses as "derelicts" which are expensive to operate and whose operators are constantly at loggerheads with building authorities.
Citing the industry's contribution to the war effort on the home front, Mr. Eberson said he failed to understand the Administration's attitude in stifling theatre construction since the theatre's contribution to public morale is equal in importance to the benefits accruing from other more favored (in terms of building) American institutions.
Mr. Eberson predicted relaxation of building barriers would set in motion the construction of theatres to meet a 10 per cent normal increase demand for new theatres, a 10 per cent demand to satisfy replacement needs, and large-scale construction of 300seat 16mm theatres of the prefabricated type to meet the requirements of rural communities.
Theatre construction will not be confined to the domestic market, Mr. Eberson pointed out. In foreign countries plans for many new theatres are contemplated.
Connors Is Elected Chairman Of Distributors Committee
Thomas J. Connors, vice-president in charge of sales for 20th-Fox, has succeeded Charles Reagan, Paramount sales head, as chairman of the National Distributors Committee. The group which met at the Hotel Astor Tuesday is in close touch with the Motion Picture Association in matters pertaining to distribution.
The distributors committee includes the sales managers of the different companies. It was organized during the war to work with the MPA on the release of government films. Later it acted in a coordinating capacity.
As chairman of the NDC Mr. Connors will represent the distributors on the 12-man coordinating committee for the governmentindustry film program.
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MOTION PICTURE HERALD, DECEMBER 21, 1946