Variety (Jan 1941)

Wednesday, Jannary 1, 1941 PICTUHES 5 U Atlas'Corp. (Floyd 'B. Odium) ac-" tively ■ entejred the: thesifre end. of RKO's opierailpns this week through the purbhase of part.of.M. ,J.,>Iee-: ban's - Keith^Aibefei-Orplieum pr^r ferred stocki. Understood that aromid 12 000 sharies were Included In the original block,, with . sale, price re- puted to be: approidpiately $l,60p,0QD. Atlas> deal provides lor an option ' oh the ' remainder,., some; 14,000. or 16 Odb KAO preferred shares being subject to terms of a voting trust whereby tepresentatives of Meehian will ex^rtise voting rl|hts lor: an ^tended period of Aiitie if the op- tion is not. exercised. Reported that the total amount Involved ,fpr: the. ileehatt' shares will be lesS -thari $3,- • .800,000 or about what SKO at one time offered, to get the shares Into the:company- treasury. \,:, RKQ, had beea, seeking the Mee- bah'shares for more than six months, . It being part of the .cbnteniplated corporate^ slmpliflcatlon. plan out- . lined by the patent cprporation nearly a yeair ago. . fiowever, pro- ' Vosed; deal for- 29,000 Meehah. .pre- ferred ishares and a. plan to retire about $4,500,000 w.brth of B. F. Keith bonds' was passed up by a .rfecent ineetlrig of TIKO' directors; ; RkO '■■ has . 'sought . the . Mjeehan ihai-es because .It would represent a saving: of ' at least. $98,000 nnnualiy. " Retirement of the. Keith: bohdi afso : \iras proposed because. Vroducitig an . annual interest. Saving of around $135,000 per. year; Galling in of these bonds also would help simplify the corporate setup.^ . ' Already In o^ BKO Atlas always has held a substan- . tial. interest, in RKO' arid nominal liidirect interest In the theatre' end of the bUslhess, 'With its purchase of KAO shares^-, the! Odium group ' apparently.. is deflnitely rcommittirig Itself to the theatre ppeirating .branch of RKO's setup, admittedly the inpst profitable ehd of film business, today. Shift of the KAO preferred stock to Atlas does not rteah aniy .saving, to RKO since Odiiim's company Is a holding cprpPration with nO; cohr hectlori ■ with RKO excepting stock holdings in the picture cpmpany. What , it docs do is strengthen .the Inyeslment portfolio of Atlas; the KAO shares admittedly being a yal uable inyestm6nt. Presently $15.75 is due in back dividends Ph thiis pret- . er^nce stock with the prospect of extra divVy distributions, likely each year besides the $7 in regular an- nual dividends. KAO has cleared up about $14 in dlvvy arrears during the last four ■ years, paying $11.75 in, extra divi- dends during that period. Company paid $8.75 In 1940, $8.75 in 1939; $10 In 1938 and $12.25 in 1937. There still is due $15.75 in arrearages on KAO preferred, representing slight- ly more thah'-two years of regular dividends. , Beet Board Memfcerf^^ l*ar'»; Own Ckmp Hollywood, Dec.31. ■Paramount is building Its own. army .camp near Sherwood, For- rest; for thf Buddy de Sylva piQ- . ductiori,: 'Caught. In'.the ...Draft,', based oh the natiortal defense .campaign. Private Jjuilding-; is ."neciessary .because the ;.GfoVern-.- rheht .encampmenti are. so' biisy that they have hp room for filmi-; Ing pictures, . David Butler, directo):, signals the - start. Jan. 6, with.j Dorothy Laihour: and Bob. Hope in .th'e tbp. rolesi' RUSH IN'41 jHpllywoo Production slowed .down a bit but maintained' its momentum diiring holiday week with only a slight hesi- tation. .Work naturally halted on Christmas day, with 24 hours fpr re- cuperation, biit two pictures rolled on Friday iand another on Saturday at„Warners. The, two were '30 Days Hath September' 'and 'Winged 'Vic-; tory/ and the weekend starter was 'Miss Wheelwright Discpvers Amerlr ca.' Twp more, . 'Tiic Bride Came C.p.D.' and 'Sergeant York,' get the gun this first working, day., of the New Year, and 'Affectionately Yours': goes before the -lenses next week. .Universal, has thriec films scheduled to lead off-during the secon.d week Pf January and may add a fourth. Three designatied for the w.eek of Jan. 6 are The Lady from Cheyenne,' 'Model Wife' and'The Man Who Loist Him- self.' . Possible, added .starter;is the Marlene Dietrich starrer, 'The Flame of New Orleans.' '. . Monogram i.s soaring to n^w pro- ductions high with the delivery of 12 featureki five 'Range Buster'.westerns and two Tex Ritter horse: dramas. The finished product constitutes 45% of. the'studio's trbgra'm for 19'40-4U '. O'BRIEN SIGNS FOR FIVE YEARS WITH COL - . • . H6ilyw'obd,:Dec..:31,'; ; Academy . of Motion :Pictut^^ and Sciences, elected .12 board miem- ; bers in. four of its branches, actors, ■writers, . directors: and i)roducer3; Fifth branch; technicians,: reciuires a new election, because of a tie vote. • ; New members are Edward ArnoW ■ Rosalind Russell and jarnes.'Stewart., for the; actor'sj Howard-Estabrook, .i Jahe " Murlin and Robert Riskin, : . ■writers;.IFi'ank- Capra, Frank Lloyd • and Sam . Wood; director^;: Y. Frank ; Preeman, Daivid 0. -Selznick and Walter. Wanger, ;producers. ' . Oscar for sciehtiflc; technical : achieverrieht wUl be awarded., again this year by 'the Academy of. Motion Picture Arts arid Sciences. Nomiha- tlPns. in that class have .been . re-: .flUcsted by Darryl .F. Canuck,' chhir-, man of the Research Council. ' : ' ■ ■ .Entries.'co'yer alt'devices, methods; fp.rmulas and ; discQVcrios .Or invch- ■tlons. of .outstrihc'iti.t! value which were actii.-.lly c"--''-.! od during 1940 in the 'film . industry. ' ■ • • Hollywood, Dec; 31, Pat O'Brien closed a five-year deal with Columbia for a 'rninimuni of two' pictures annually, with .provi- sions for more, if mutuailly agree- able. Cbntract goes into effect jah. :2.\' v'Vv ■ For years' under contract to. War- heis^ .O'Erien recently finished his iirst freelaince picture, 'Escape ,.:t6 Glprla^i' for Columbia. ■ CutUng P i c t u r e Prograims >yin Be the (i^n^rM Policy of Each Coihpany^ HKO Prez Opines —w; Extehdied :Piaying, Time In<e.viiable BLOCKS-0F^5 SNA<G COIN No. product shortage In 1941-42 is envisioned by RKQ' J>rei' George J. Schaefer, despite 'a .slash, in niimber of fllnrts' as: a resiJlt of the consent decree. ' ProbaiDility, .Schaefer pre- dicted,. will be that .^xhibs assign. films longer playirig tirfte to compen- sate, for the' diminution in .numbers. Increased, playing timel 'prPvlding greater fllrii rental: for Individual pictures, is Viewied by Schaefer as a healthy development.. He jehdered the opinion recently In, .'.revealing that RKO-will cut 40 .pictures next season from the 45-48 slated for the current year; . Although other companies have given hp Outward indication yet of an Intfeiition to reduce, theii* quantity of pTbduct, they are expected to fbU low the RKO suit. Two reasons for the cut were assigned by the .RKO. topper , and are genei-ally applicable.. One is. the fact that fiye-picture blocks which must be sold under the consent decree tib up coin because completed films are held on the shelf and bring in no revenue while waiting for 'the four, other pictures in.the group to be/finished. Second reason for the slide, Schaefer said, is that there are how .'top -many, little pictures' and Pperation^will be more ■profitable 'with .fewer' and ■ better, films. Flexlbliiiy in Blocks Schaefer predicted that np switch- ing of individual pictures from one group of five to another by exhibs will be permitted, as it would cause too many complications. Only spots which aren't open a full week or where other unusu.al. conditions pre- vail will be. able; to buy fewer than five, pictures at a time,, he said; . 'As to a query oh whether pictures in a biocfc must be played in a piar- ticular order, Schaefer replied no. Same, flexibility, of . booking as now exists will continue, he explained, governed, only by usUal rules of clearance and availability. . fixhibs'in later runs, RKO chief- tain, said, will be able to buy twP or three groups of pictures at a time, although this will be Impossible in early: runs, where films are played ais they come off the production line. Iri the suBsequents, where an exhib has a couple of months' wait be- fore getting product; he'll be, able tp ■ see several blocks before it becomes necessary ior him to.-buy any.. . Cutting Cripditli . ■ '-. ■ ; Hbllywdbd, Deci 31. : '. Production 'credits. - '- ' the ' screen are in- f<ic\a drastic wlilt^ tlihg .in 1941 at Metro and pr<5b-' able, at other major studios... Idea 'is that the .public i§ ihterested chiefly in the players and Is bored.b'y a long list pf technical .and production aides. \ . One complicatiori halting an immediate, reduction of names Is , the numbeir .of. cpntracts which .. call for, screen credit. ■ 01EARY W : J. J, G'Leary, general auditor of tbe Corherford Circuit for many yearsi has been pilaped in complete charge of operations with headquar- ters at Scranton, Pa.; and reported that >vhile there has;, been' , some consideration-to bringinjg Someone.in to run the theatres nothing is likely to be done. As & result of his appointment tp the cabinet as Postmaster - General, Frank C. Walker is no longer able to devote so much of his time to the .Comerford circuit, of which he Is president and general counsel. .He retains these posts, however.''Walker is a nephew of the late Mike Comer- ford. ',: . '■ . . . : At New York headquarters, of Comerford, whore 'Walker always made his. office,..Johh Nolan is ,in charge. He docs all the buying for the circuit. .,Although Paramount is ihterested. in the Comerford theatres, numbering' around .85; complete op- .erating: authprity . lies with the Comerford people. RADIO, PIX REGULATE BENEFITS ON COAST on 1 12,428 Fin Vtorkers*!^ Average |l|9(f^f : .:'.' Holly wood,. Dec. 3i..; • SttidlP workers,' e'x.cluiive Pf. execs aiid • talent,,' drew. , down >557,957.. in I Npvember, ■ rcprcscnling' an . $8,636 \ increase Pver pi-civibus month.'.Wcek-^ ly -paycheck to ;i2,428'Av'orkcrs aver- aged $44.90 as' .announced : by, Cali'^ . fbrniai Labor Stntl.stics' - Department,- • Employment .gain ■l.T'l'n over No-, vember . '39 ih • salaries', but showed; numericaH'o.s.'i of 2.3':?. Studio WPrk- ers averascd $1.29'. per. hpur during . the month,'. ' . ' .^Hollyw'Pod,-Dee 31;- deDrge ;J. Schaefer, ■ presidentj^.of RKO,-is due: in town Jan. ;;i5. fDr;a' one-year stay, probably to take oyer, the ehbres now performed by . Harry Edinglpn .al the Gowcr street;sl-udio; Edingtph, it ; ls i-epoVied,. may ;iea'yc the Ipt when Scliaefbr arrives;;. ..,^PrpblG!ri cdnfronli.ng Sci^aefcr is.to; rearrange, the ''produclion .setups bringing into .tho. foid new producers, some .of whoHfiiwin .Wprk on the fcom- pany payroll, and some. jndepeliden.t- ly. New policy i.s to let the slafl prpT ducchs stand or fall on the merits'of their own piclure."', .\vi!h'Schaefer a."! a consultant ..executive Whenever, necessary. ■ ■' HpUy wood, Dec. 3L Regulation, and direction of charity endeavors undertaken .by the two branches of show bu.sine.ss, pictures and radio, .hereafter . will- clear through' a single agency to avoid duplication ■ arid conflict. CoUabora- tjoh was effected last wxck through organization of a radio, committee ;io; functiP;! - with a. film grpui).. . .Ap- pdihtees.'of Harry Wilt,., prez.' of. Southern Galiforhia ; Ilroadca'!;ters' Ass'n; v/ere Don. GiJmah, NBG; Don- ald Thbrnburgh, .CBS: ..Lcwi.s Allen Weiss, .Don Lee-Mutuali ,Marry;-Maiz-; lish, KFWB> and Calvin Smith, KFAG.i- ■ '.;/:V-:'; •■ ■■■.: •.'■■ V^! . .yM a recbht meeting- .belwceii ra-.. dip ;arid film, leaders, it was indicated that, .such a. group becbmes ^a nec-.. essity tO'.;reBulate:. benefits arid', curb such duplicates '35 two British brPad.-, casts from Hbllywood a; week apartV Both .Sam -Goldwyn ; and'' G'ilman. chlded." the .two. gfoup.s: si)on>brih .the. British programii: for. not. getting together '.oh .one ■massiye broadcast instead 'of 'splitting, them; up/. with. the .performers and rictVv^orks fPrdPa ihtd'dbuble duty. . ' ' -Joseph Berhhard,',Rcrici-,ni irinnaisor of the Wiirtjer circuit,. .trairicd Mon- •day, (30) for-Mho -^Cbrist, ;■ ' , ,■ ' . , He , \vi)l' coiifc >c;th ■.Harry-.'and Jack' Warner, on . {scnonil'. ma',' . ■. pertrinihg to produotion and -ihc i theatres. • . The British; frozen cPin a'g:reement , for eight U.; S. 'major con^panies w approved and flnalized last Friday ;- (27) by both ithe Ainerican filni cbni- panies. and th^ gdyerhment .bf jGreat Britain,.: Anho.uncem.entrpf; ;basic iea-. turei: Including, the fnaxiinum tPtal, $12,900:000, which Amei-ipan distrib- utors may receive in the year started la'st Nov. l; and percentages accord- ing to compahiiss; was itiade at the Hays HOfflee directors' meeting that - day. • .■■'' ■ . ' , . . Talk by J'biseph I. Breen,; produc- tion. code chief. of the ..Motion Pic-. . ture Producers & Distributors, Assn., beforfe the directorate was tlie other ImpPrtarit feature of' the session. He urged the top officials present to exr ert pressure . on their' production chiefs on the .Coast in maintaining clean product. The board of direc- tors pledged Breen 100% support, in- formally explaining that they wPuld dp all they coiild to .see that pro- ducers cooperated in jieepirig pic- tures clean. .Breen -and Will Hays, several weeks ago, went over the isit- uatiori on the .Coast; with producers then expressing .willingness to watch their step. , ' Undei*stood that spme executives' present • admitted that certain pror ; ducers, in their urge to turn out surefire boxofflce films or what they considered such. In . recent months perhaps had gone a little too far. It was pointed out that protests about dirt in screen productions, and .fresh censorial troubles \yere caused by ' this slopping over pn the yerivtp get in dotible-meanihg gags or qiiestibn- able lines. Breen apparently wanted company heads to know the situation fully and to get an expression of opinion.: Apparently In the. future attempts to crowd in, objectionable material will not be handled with gloves; rather, it will be a • case of . elimination before .shooting begin? or trimming after the picture is com-; pleted. ;. How Split Up The British frozen coin pact, which permits the ma jors to rem it. $12,900,- 000 . in profits frbm: the British Isles in • the period named, will enable these companies to obtain the bulk of $4,837,500, which Is 37>/2% of the total allowed out in the first 13 weeks. Agreement allows another 37%% ($4,837,500 ) out bf Great Brit- ain in the .second 13 week.s, and the remaining 25%, or $3,225,000, in the last .six months of the period ending next Oct. 31. AHof thi.s isdn an 'if-earned' basis^ because, neither the Brrtlsh nor the film corhpanies know how business will hold up in the next feW months.. The ■allpcatipn.agreemcn.t; which ia; entirely, .separate from the excharige'. pact. with the British,^ lias yet to be signed .arid probably won't be for.: some'weeks; ■ iThls CQvcrs the method, whereby the frozen coin total.is to bo ^lit up ahiorig tbe :eight :Gpmp'a'nlc.s. 'The ■:'if-icdrncd*^. i)hase'.^^^^^ pact makes this • a ;cpmplex..rhaltcr, dotibly So because mahy .companjes Waiit to include advariqe sales, really deals, etc.; in the amount tiie'y should ■ receive.; '[ '-V. : ''' • '. ^. ynderstpod'so 'ifar -that-if in any of •the three specified period.s':one com-, pany. lags'below its as.signed perccnt- :age. in, carning.s' ari.d another distiib'- : Utor gbes .abbye its' porceritage, .there..- will'.bp .an .acljiisthicnt in favor bf the latter. wh(; "the money'i,s actually split. Thtis if Cbluiribia' .should/fall. \)cl'fv.'. its P9rc.cntn£;c. ficjure in the ['first' 13f v.'crk.s.jvnd:Metro .should .shfiw ! bu.sihe.s'.s ahead .:'of its allotted ,pcr- |:cotilagc.; £iri •adjii-'lriient w-ouUl be' . mncle... .'^imihr. rcnlir{.nme:')t wb.iild be . .fo\lf).\vcd U'itlvall eight•major.si.'W ■ matter, of allbfating the coin received ■ in eveh pcri'ici i': ."rti complicalcid that -cornpariy sinli";ir;-"' , .-irc -Tunruhg . aroiind . iii. circles trying. tP fathom. 1 the flgures.