Variety (Nov 1941)

Wednesdaji NovemBer' 5, 1941 piibTuiuss warn NEEDS AN AUTHOR Spyros Skouras Overtures Par Not to SeD Away From National Theatres But No Accord's Yet Set Although Spyros Skouras, presi- dent of National Theatres, made overtures to Paramount to call off Its decision to sell away from the circuits making up the National group, in the hopes- of reaching a eompromlse, the prospects of an •arly settlement.are dependent upon current renewal of negotiations with tha various circuits making up the National group. Charles Reagan, assistant general falesmanager of Paramount, left last night (Tuesday) for Milwaukee to ' fee what can be done on setting up. a deal there with Fox-Wisconsin. Slcouras and Eddie Zabel, National buyer, also left last night for Mil- waukee to sit in on negotiation;. If successful in reaching an accord ^ere, Skouras, Reagan and Zabel will go on to o^er points to resume negotiations. ill the meantinie, however, an order to start selling away has not goqe out Skouras is said to have con- tacted Barney Balaban, Par presi- dent, Immediately after the company had officially announced Its product negotiations with National had been broken off. It is understood that Par waited 48 hours after-maldng up Its mind on the split and to sell away, before Neil F. Agnew In- formed the trade that step had been taken. Fracture between Pav and Natonal, which has 506 theatres, is similar to tiie one affecting Skouras and War- ners two years ago and, like that break, stems largely from dis- pleasure oyer difficulty in getting percentage deals with National, par- ticularly in subsequent runs. An- other complaint, whieh Par like others has sought to correct, is that the Skouras' operating policies are not to the best advantage of the percentage pictures contracted tor, and that they are often moved rapid- ly out of percentage flrst-run dates Into flat houses where the circuit gets a better break on rentals. Re- ported that Sam Goldwyn, who has squawked before, and now has 'Little Foxes' on release, is also com- plaining. Paramount had been struggling with National for two months in an effort to reach a deal. Company of- fered several different propositions that would yield what it considers an adequate film rental on its pic- tures but was unable to reach an agreement. Par is offering three blocks of five, one a group of five westerns, and is seeking higher terms. Question of playing time guaranteed is ' also behind the Skouras-Par difficulties. No distributor relishes the thought of selling away from a circuit the she of National, which is well en- trenched In its various territories, but reported that despite resumption of negotiations the company is adamant concerning Its rental de- mands and other contractual stipu- lations. Meiro-MoNell & Nalfy Break between Par and National overshadows the rupture between Metro and the' McNeil & Naify cir- cuit in northern California and Ne- vada, first to occur under decree sell- iog.. That circuit numbers 70 the- atres. Par has not yet sold McNeil ic Nalfy but negotiations are in work. National group of houses, con- trolled by 20th-Fox, Is made up of flva different circuits. They are Fox- West Coast, numbering 207 houses; Fox-Midwest, 105 theatres; Fox- Intermountain, 97 houses; Fox-Wis- consin, 58; and Evergreen, 41. The flrst-runs of National in San Fran- cisco, Oakland, Seattle and Portland are not Involved since original Par theatres pooled with F-WC are in- volved and carry a Par franchise. National has a franchise on War- ner -product which has two seasons to go and one with Metro which ends With the current (1941-42) semester. It has bought Universal under a three-year deal and has closed for RKO's first group of five this year. Now Prove It Hollywood, Nov. 4. Frank Nugent, onetime film critic of the New York Times, is doing his old stuff in a new en- vironment. Hired by 20th-Fox two years ago as a screen writer, Nugent has been shifted to a new spot as reviewer and reviser of scripts. Notion is that an experi- enced critic can save money for the studio by picking out flaws In the stories before they are filmed. Other Hollywood studios are un- derstood to be mulling the same Idea. ITS 8% PFD. "US IN WITH BRIT. INCOME Recent strength in Universal 8% preferred shares on the N. Y. Stock Exchange is linked in financial cir- cles with reports that something is in the wind on the company's plan to call in all or part of this issue. Reason for revival of this talk is that Universal shortly will re- ceive close to $700,000 in remittances from Great Britain, as a result of unfreezing about 50% of its revenues there. U also will get an additional $700,000 or more next April, story being that this coin would be em- ployed in redeeming listed preferred. Estimated that it would cost about $1,912,000 to call in this 8% preferred, since each one of about 10,740 shares would cost $178. This covers the callable price of $110 per share plus slightly over $68 a share in accumulated dividends. Wall Street opinion is that about $500,- ODO in addition to the coin remitted from England during the next six months would be needed to swing the deal. Also that the company might obtain a short-term bank loan to cover the additional amount. Such an arrangement would im- mediately relieve the corporation of nearly $80,000 annual dividend out- lay besides ' wiping out past-due dividends and leaving only the com- mon stock and certificates for the common in line to receive dividend payments. While actual consumma- tion of such plan may require some time, It is understood to be the latest proposal up for consideration in Universal's general proposition for simplifying its corporate setup and working further company economies. , It is believed that the plan ulti- mately will call for U having only one stock outstanding. 20th Anchors Perlberg Hollywood, Nov. 4. William Perlberg, producer at 20th-Fox since last January, was handed a new contract for two years. Next producing Job is '10 Gentle- men From West Point,' slated to start in two weeks. Hoblitzelle's Post Austin, Nov, 4. Karl Hoblitzelle, prez of Texas Consolidated Theatres and Interstate Circuit, was appointed to the board of directors of Texas Technological College of Lubbock, filling the unex- pired term of J. M. West of Houston. West died recently. Hoblitzelle's term will expire in February, 1947. THIIT'S II.S. PRESS Priorities-Panickedfublic Doing STANCE ON BIDFF If the Film 'Execs Lacked Temerity, Certainly Their Scenarists Could Have Dreamed Up a Script to Trap Bioff and Browne EDITORIAL BLASTS Revelations at the current Browne- Bioff -trial in New York have badly blackened the film industry jn-'public opinion. Collation of editorial com- ment throughout the country—and there's been scarcely a sheet from Spokane, to Savannah that hasn't seen fit to editorialize on the evi- dence—discloses Hollywood charged with everything from collusion to 'timidity.' Typical of the bitterer comment is that of the Albany .(N. Y.) Knicker- bocker-News: The wrong about the blackmail- ing is double-barrelled. It is plain common sense that you can't have a crook in the racket unless there is a crooked, employer to pay him off.' Taking a facetious view, the Chi- cago Times suggests that Hollywood should have called in one of Its super-scenarists and caught the vil- lains right at the beginning In a police trap which the writer could have plotted. Offsets Prior Sympathy Long a favorite whipping boy of the editorial writers, Hollywood has plenty of reason to regret the dis- closures in the trial of the two labor leaders at this particular' time. It was only a few weeks ago that a majority of the papers of America were coming to the Industry's de- fense fn the Senate . subcommittee probe of iK-opaganda. It appeared that finally Hollywood had won edi- torial sympathy and there seemed to be no reason why some of it shouldn't linger. And papers like the Albany Knickerbocker-News, isolationist in policy and hunting for any reason to biff films one in the breeches, found what they were looking' for in the Browne-Bioff evidence. K-N de- clared: ' The story isn't nice and the Senate committee probing propaganda in (Continued on page 22) Xmas Shopping Early-Very!-And It s No Help to Show Biz for 2 Mos. MacEwen, WB Producer Hollywood, Nov. 4: Walter MacEwen, assistant to Hal Wallis at Warners, was upped to the berth of associate producer. Paul Nathan, personal" aide - to Wallis, moved into the spot left vacant by MacEwen. KORDA'S QUIZ SHOW-ME BY- PROXY Purpose of th* tour of United Artists exchanges embarked on last week by Steven Palloi li said to be more than meets the ay*. Palloi Is Alexander Korda'a partner and east- ern rep. Swing around th« branches is ostensibly merely to look Into dis- tribution of Korda's plcturai, 'Lydla,' which wag released not long ago, and plan for To Be Or Not to Be,' which la coming up soon. Report is, however, that Pellos Is doing a more Impdrtant look-see job for Korda than that and bis im- pressions of branch managers and salesmen as. h« tours around may have a beaiing on their future status with the company. Korda Is one .of the four UA owners. Pallos has long been associated with Korda in Europe and this country and Is said to be highly trusted by the producer. Korda, it is known, has been dissatisfied with distribution of his pictures and is particularly chagrined concerning 'Lydia,' which he does not feel was milked for maxlmuin resuHi. Find- ing out why will be one of Pallos' major assignments,- First leg of Pallos' tour Included Cleveland, Chicago and Detroit He's back in New York thU week for a brief stay before taking oS again. Herman Wobber to Get New 5-Year Contract as Head of 20th-Fox Sales Upon his return to New York next week on completion of a tour of mid- west branch offices, Herman Wob- ber will be approached by officials of 20th Century-Fox to enter into a new five-year term renewal of his contract <^ith the corporation In the capacity of general manager of dis- tribution. Official announcement of his con- tinuation in the post he has occu- pied for the past three and a half yeais is expected to be made by Sid- ney R. Kent, president of the com- pany. Neither Kent nor Wobber could be reached for detailed in- formation. In circles close to the 20th-Fox management there is much satisfac- tion expressed that' Wobber, at vari- ous times reported to desire to re- turn to the Pacific coast, where he has long resided and where he was an important factor" in early film days, has agreed to remain at the top spot in the New York home of- fice distribution division. His de- cision is regarded as important to the company personnel because of the policies he has maintained since he came east. Wobber, a close per- sonal as- well as long time business friend of Kent, has fortified his au- thority over distribution by promo- tions within the company's ranks when opportunities have occurred. Such procedure has been one of Kent's major operating principles. Wobber pioneered film Indus- try as a distributor on the Pacific coast in the early years of motion pictures. He was headquartered in San Francisco and handled state rights films of the pioneer feature producers, including Famous Play- ers, Jesse L. Lasky and other groups before the consolidations which re- sulted in formation of the Para.- mount company. With the latter company he was In full charge of western sales until he resigned con- currently with Sidney R. Kent, then Par general manager, and moved with the latter into the management of Fox Film.- Wobber came east to take charge of . 20th-Fox distribution In the summer of 1938, following the death of John D. Clark, who also was an associate of Kent and Wobber at Paramount. Sears, LIchtman Cold Recurring reports of executive changes in 20th-Fox including men- tion of Grad Sears and Al LIchtman, arc discounted by intimates of S. R. Kent, president of the company, who say that no moves affecting upper personnel are contemplated or have been discussed. Tn connection with talk concerning (Continued on page 16) Detroit, Nov. 4. While Santa Claus is going to have a fat pack this year it looks like pix exhibitors are going to get the slim end. It's those defense priori- ties again making themselves felt in a new way. The panicky public, with plentiful potatoes in their pock- ets, have started their buying rush already, pushing the Christmas headache up from its usual start at Thanksgiving time to right now. Cued by that silk stocking buy- ing rush last summer when the em- bargo was Slapped on silk, the citizenry, particularly In the defense centers where priorities are close in their effect, are fearful there Won't be enough Christmas knick- knacks to go around. The big stores admit there is some basis for these fears, since it will be difficult to get re-orders on some of their stocks, but as is typical with panics the thing is getting out of hand. Since It is wordA>f-mouth stuff that the stores aren't going to have enough toys, jewelry, clothing, etc., to go around, the fears have shot out from the metropolitan centers to the small towns in the. midwest whera the average jittery housewife Is lamming it with the ready cash for the department stores. 'Biggest Christmas' It loolcs like the biggest (Hirist- mas on record, according to the Re- tail Merchants Association, but what is making it worse for the pix houses, etc., is that the shortages fears have got-that big season roll- ing much earlier, than usual. "Two months of it instead of one,' was the beef here. 'Slice away one- sixth of the year and what have yoa got left in the picture business. Nothing but the wall, and I do mean one to weep on.' Idea seems to .have got around among the public that anything on which the Governinent has slapped a tax marks it as a luxury which . won't be available shortly. This means that along with the abnormal Christmas buying springing up, it also is leading the public into in- vesting its cash into stuff to put on the shelves for the day the supply 'runs out.' Worst part of It all is that pix houses haven't found any approved method of coping with the Chrijst- mas shopping season, much less a panic, and under the present setup don't like to follow the older pro- cedure of backing up the better product until after the public again is in the show mood. It also offers something of ah Impossibility for the flrst-runs to shun the topflight pix for a two-month Interval. Von Sternberg, Monson In Prod. Setup for UA Hollywood, Nov. 4. Arnold Pressburger signed Joset von Sternberg and Ona Munson at the nucleus of a permanent pro- ducing organization, with a United Artists release outlet. Von Stem- berg was inked to direct one pic- ture annually for three years and Miss Munson to play In four pic- - tures without a time limit. Production plans call for at least three films a year. Pressburger re- cently completed 'The Shanghai Gesture.' Farewell to Underwood Hollywood, Nov. 4. Charles Lederer, writer on ths Metro lot, tossed aside his typewriter for a new job as director. First chore in his upped estate is 'Fingers at the Window,' mystery yarn written by- Rose and Charles Caylor.