Variety (Mar 1942)

Wednesday, March 4, 1942 PICTURES FILM DEALS ZOOMED IN FEB. DONT T AX SER VICEMEN Instead of meddling with an impractical and what appears to be an unconstitutional measure to compel exhibitors to admit soldiers and sailors free to all performances, the New York State Assembly might well be spending its time on a more realistic method of aiding the servicemen. ITie Assembly—as well as other groups throughout the country—might send a resolution to Congress asking that some speed be put behind the Congressional promise to eliminate the Federal tax soldiers and sailors now pay every time they attend a theatre. Strangest part of the tax is that it not only is being collected on the reduced admissions many film and legit houses now offer servicemen, but on shows presented on the Army and Navy's own reservations. Every time a soldier lays his 20c on the sill to attend a film at his camp theatre, 2c of that money is going to the Treasury in taxes. When it was pointed out months ago that servicemen were included in the all-encompassing theatre tax measure that went into effect last October, the word in Washington was that the bill would be amended at once. But Congress has apparently been too busy voting itself pensions. The situation is incongruous and calls for immediate rectifi- cation. See Nelson Report On Priorities for Films By March 15 Decision on motion picture InduS' try priorities is experted from office of Donald Nelson, head of the War Production Board, around March 10- 15. Understood that report compiled by the War Activities Committee will be ready in completed form prior to that time. Theatre requirements listed in the report have reportedly been calcu- lated on minimum basis compatible with continued operation. Needs are substantially the same as last year, exhibitors having been keeping op- erating costs and theatre require- ments in low gear since the depression. Contention among exhib leaders is that most theatres could not stay in business during past few years unless - replacements and other costs had been cut to a fine point. Regardless of favorable action from the War Production Board, however, some commodities such as cork (mostly from Spain) and rubber will not be available to theatres •ven in limited quantities. Operators will be obliged to And substitute materials or other means of making up for shortage of supplies of this type. MURRAY SHVERSTONE MAY JOIN DIETERLE Murray Silvcrstone, who has been talking a production unit via United Artists, of which company he was formerly the head in its worldwide operations, now looks set to align with William Dieterle. Latter -has a four-picture deal with RKO, of which his forthcom- ing 'Syncopation' is the Second. Bill Frank, Minneapolis theatre cir- cuit owner, is Dieterle's financier, and Silverstone will look after the sales and distribution. WiU Hays Back in N.Y. WiU Hays, head of the Motion Picture Producers & Distributors Assn., arrived in N. Y. from the Coast yesterday (Tuesday), follow- ing his usual flrst-of-year. trek to Hollywood. He will stay in the east ur.tU thfe annual MPPr . meeting is held the last of this month. Hays had no comment to make re- garding an early session of the asso- ciation's directorate or regarding stiffening of the PCA code. 20TH COMES OUT OF SLUMP, TWO PK ROLL Hollywood, March 3. Two pictures went into work yesterday (Mon.) at 20th-Fox to al- leviate the worst production slump on that lot in more than a year. Early in February there was only one production in work at the studio. New starters are 'Them Lovely Bums' and "Thunder Birds,' an aviation yarn in Technicolor. Speed picks up next Monday (9) with two more starters, 'Strictly Dynamite' and 'The Loves of Edgar Allan Poe.' Pars $10,125,000 Net Profit Best Year Snce Reorg Paramount Pictures earnings for the year ending last Jan. 3 hit $10,125,000, according to company es- timate issued last week, representing the greatest net profit for the cor- poration since it was reorganized un- der the present management in 1935, and exceeding 1940 by approximate- ly $2,491,000. Par earnings in 1S40 totaled $7,633,130, best year up to that lime under current manage- ment. Earnings are equivalent to $3.36 per common share as against $2.64 In the year ending Jan. 4, 1941. Paramount's earnings for the past year make it second only to Loew's (Metro) in the industry on the mat- ter of net profit. Loew's showed $11,134,593 in its fiscal year con- cluded last Aug. 31. Paramount Annual Earnings, 1935-11 1935 $3,153,167 1936 3,889,020 1937 6,045,103 1938 2,533,279 1939 2,737,533 1940 7,633,130 (1940 by Quarters) First quarter $1,060,000 Second quarter 1,478,000 Third quarter 1,726,000 Fourth quarter 2,823,130 1941 10,125,000 (1941 by Quarters) First quarter $2,475,000 Second quarter 1,904,000 Third quarter 3,071,000 Fourth quarter 2,675,000 Dave Lewis' Par Deal Hollywood, March 3. Paramount closed a deal with David Lewis, formerly a producer on the Warner lot. He checks into the production de- partment March 1. T Holdout Exhibs Hastened Into Closing Product Deals by Excellent B.O. Per- formance of Quality Pic- tures Thus Lessening Re- sistance Over Terms MANY BLOCKS Sales picked up markedly during the month of February, sixth month of the consent decree for the five biggest companies, with the number of contracts in some instances reach- ing as high as 2,000 a week and over. This has resulted from late .deals, with available blocks piling up and deals being made for three or four at one time, or 15-20 pictures. For the final week of February Para- mount hit a new high under the de- cree with 2,550 contracts brought in by its domestic sales force. This in- cluded the company's first block of five westerns. Exhibitors have been holding out as long as they possibly could against the decree companies, due to the ad- vanced terms sought, and many have felt that the demands, on which dis- tributors have been equally stub- born, have been too stiff. However, where It has became virtually im- possible to go any further without certain products, such exhibs have given up in order to maintain opera- tion and an even %eel of business. Selling has also been spurred by the knowledge that pictures of some of the distributors nave been doing extremely well generally and prove some justification for the terms that have been asked. Two companies under the decree which were not in the standout column on the 1940-41 season but under consent with this season's (1941-42) product have been delivering strongly are 20th-Fox and Paramount. 'Strong Product Many customers held out against these distribs, more notably Par than 20th, because of the prior season's deliveries against rentals quoted this year, but with a representative number of . the new pictures having been seen—and proved worthy in other theatres—they have come around, yielding to the stiff term.'; they originally resisted. Contracts have also poured in heavily for Metro, Warners and RKO during February. While under the decree distribs can sell In blocks-of-flve only, there is nothing to stop deals at one time for four or five groups as long as separate terms and contracts cover each bunch. That is occurring now, with accounts also taking any extras that are sold singly. Where exhibs had bought United Artists. Columbia, Universal or independents full-line and were not quickly forced into taking stiff terms of the decree dis- tributors, they felt in many Instances that they might as well wait until several blocks had been screened and were ready for sale. Among other things, not the least of which was resistance of early terms, of course, exhibs also felt that time would be saved in closing for more than one block at a time when per- haps 10, 15 or 20 pictures had been tradeshown and were ready. A major deal closed during the past week involved the signing by the I''anchon &' Marco circuit and the St. Louis Amusement Co. for four Par blocks, or 20 pictures, plus a separate contract to cover 'Louisi- ana Purchase' which Is being mar- keted singly. RKO May Copy Universal in Culling Studio Production Manpower From Theatre Execs; Charlie Koemer Up Angelic Credit Hollywood, March 3. One way to achieve producer credit on a film Is to lay the chips on the line, even though your business is 3,000 miles from Hollywood. Indie p"iducer, who had been leaning financially on a non-artistic backer, was told that he bad to share co-producer credit with his bankroller on his next two pictures, or else. You can't talk back to an angel. RKO Offers 3-Yr. Pact, Schaefer Wants 5-Yr. Deal Renewed negotiations are under way for a new contract for George J. Schaefer as prexy of RKO. Schaefer has t>een holding out for a five-year pact, from accounts, with t>oard of directors reportedly oBcr- ing three-year ticket. Richard C. Patterson, Jr:, chair- man of the RKO board, is taking up matter of inking the deal. He plans to leave for the Coast within the week. RKO executive committee meet- ing Monday (2) afternoon was re- portedly routine. Believed that Floyd Odium inter- ests in RKO, in support of Schaefer, have advised Patterson to bring the deal to a quick close if possible. In- dications are that differences over term and conditions of a new con- tract may be ironed out shortly. Hollywood, Marcli 3. Charles. W. Koerner will lake over as general manager ol RKO stodlos on next Monday (9) until April 6, during the absence ot Joe Breen. George J. Schaefer has placed Koemer In charge at, tbe stndio, while Breen to on vacation. Upon return ot Breen, Koemer will go back to New York to operate BKO theatres as here- tofore. Koemer appointment as studio head Is onrrently regarded ss experimental. He has expressed definite velws on production which may be carried out. Breen's Vacation Hollywood, March 3. George J. Schaefer plans to re- main at the studio about three more weeks. Joe Breen checks out over the weekend for a vacation. EXPEQ REPUBUC TO JOIN HAYS ORG. SOON PAmiESS PICKUP Hollywood, March'3. Betty Field, currently in New York, signed a new player contract with Paramount. First assignment under the pact is a co-starring role with Joel McCrea in 'Triumph Over Pain,' a tale of the early experiments in painless den- tistry. ■^.ii.---.-; While only belonging to the Mo- tion Picture Producers Assn., Coast affiliate of the Hays organization. Republic Pictures will probably be the next to join the Motion Picture Producers & Distributors Assn. Mat- ter has been up before, but Republic never joined. Fact that Republic won its battle to retain the title, 'Remember Pearl Harbor,' for a forthcoming feature, is reported to have convinced com- pany executives that it is being given a square shake by the MPPA on the Coast. Also Republic has been cooperating in the east on va- rious committee work which other- wise has included strictly major company reps. Charles Reed Jones, company's ad-publicity chief. Is on several such committees including the sub-committee of the ad-pub- licity group which is part of the War Activities committee and the Public Relations Committee of the Film Industry, RogeH's Eight-a-Year Hollywood, March 3. Paramount signed Albert S. Rogell as director of its forthcoming musi- cal, 'Priorities of 1942.' It win be the eighth plc'ure RogcU has piloted, within 12 months. I 1 I ( ■ t.\ • <: ) .! I '■1 ' • ■ ) RKO may draw upon its theatr* operating affiliate for additional top manpower in shaping studio produc- tion policies, having as guide success- ful operations at Universal following drafting ot Nate Blumberg, Cliff Work and John O'Connor from ex- hibitioi^distrlbutloii ranks. CharleyW. Koerner, chief ot RKO theatre operations, currently on the Coast, is reportedly making himself acquainted with studio details. Though originally scheduled to re- main in Hollywood for around six week he may stay longer. Possibility is that he may take a hand in pro- duction, following return of Joe Breen, either actively associated with Breen or in advisory capacity giving reaction on production schedules from exhibition .angle. Weight of opinion from sales and exhibition fields has been making It- self Increasingly felt in production during past year at other studios also, notably 20th-Fox and Universal At Warners, Metro and Paramount frequent commuting ot sales and theatre department heads between N. Y. and L. A. has been more pro- nounced than in previous years. Pro- duction policy at 20th - Fox was largely influenced .this, season .by. advance' reports and suggestions from the distribution department which were fully discussed at the 20th con- vention in Hollywood last summer. Matter-of-fact b.o. reaction from execs with first hand theatre or field experience appears likely to influ- ence RKO studio operations during coming year, from accounts having been given close study. Reports that Breen would leave RKO currently remain unsubstanti- ated. Breen has expressed disin- clination to rejoin the Hays ofllcs as Production Code authority. Meantime Reginald Armour, form- erly assistant to George J. Schaefer at the studios, has been appointed assistant to Breen and placed in charge of the back lot. Schaefer had been expected back in New York this week for an. RKO board meeting, but is stopping on the Coast for a few more weeks. COLUMBIA EXECS' N.Y. POWWOW ON 1942-3 PDC Columbia's top execs are huddling in New York this week on a numt)er of topics, most Important of which is product lineup for next season. Program, it Is understood, will be In line with those projected by other studios, calling for a decrease in the number of Alms, but for more big - product. Harry Cohn, who arrived east on Monday (2), leaves New York Satur- day (7) for Miami. He'll be accom- panied south by Nate Spingold. Pull- ing out Friday (6) for the Coast will be producer Sam BischofI and Rob- ert Taplinger, special assistant to Cohn,