Variety (Apr 1942)

GARY COOPER T O nAABO? =r ■ ■ > f : • -f.— • ^ : ' : • RKO Board Meets Twice on Fmancing Next Quarter and Future Production; May Add $1500,000 to Revolvmg Fund Spyros Skouras the On^ Man Considered for 20th-Fox Prez, Says Scbenck But Must Quit NT RKO .board of. directors met twice last week, primarily tor the purpose of arranging flhanclng lor RKO Radio Pictures for quarter Immedi- ately ahead and also to discuss long- range banking plans for company's future production, from accounts. Understood film company aflillate's cash position i- current!, at approxi- mately $1,600,000, with around $2,000,000 required for next quarter to meet all operating and produc- tion charges. Probability is that $1,000,000 to $1,500,000 will be added to company's cash position via bank- ing loans to take care of interim requirements. George J. Schaefer, RKO prexy, who came in from the Coast last week, reportedly took up. matter of financing for next season's product also. Possibility that Floyd' Odium (Atlas) would provide additional coin for this purpose, but that would depend to some extent on adjust- ment of differences between various Interests (RCA, Rockefeller and Od- ium) represented on the RKO board. Some talk that Odium miglit decide to take over - the RCA-Rockefeller equities and provide for all neces- sary financing. First of big budgeters now coming up on the RKO lot is the Ginger Rogers production. R'TO also has In the neighborhood of $400,000 tied up in the British-American War Re- lief picture, which the studio under- took to anance as a good-will gesture following representations from Sir Cedric Hardwicke, Herbert Wilcox and others. Flicker, \vbich has had several titles ("This Changing World,' etc.), is not yet completed and re- imbursement of negative'investment Is not expected this quarter. RKO has a $3,000,000 revolving bank loan. At time this financing was arranged last year some RKO execs held that a $5,000,000 fund was required and understanding is that additional coiri:to be raised will give company operating capital close to this figure. Question of Schaefer's contract was reportedly also taken up at meetings last week, but no decision reported. Schaefer. puUed but for the Coast Saturday (28). Impression remains that Koemer wIU not return April S to resume theatre operathig activities in the east, with indicaUons he is set on Coast for an indefinite period. NO TIRES PRIORITY FOR FILM SALESMEN PoUowhig stormy sessions among . distrib representatives working with the War Activities Committee. on priorities problems, last week con- cerned with ways and means of equipping field forces with tires for. automobiles, sales departments are reportedly becoming reconciled to probability that'no 'tfrfe will be made available for the industry by the War Production Board. In some quarters, comment is that there is no reason why the film salesman should get tire preference over any other commercial salesman selling neces- sities. ■ Field forces^are reported prepar- ing to return to the "horse and buggy' methods of 25 years ago in selling RKO Probers East Hollywood, March 31. Their two-week survey of condi- tions and activities at RKO studios completed, Raymond BUI- and L. i^wrence Green, RKO Corp. direc- jors, returned east over the weekend « prepare their report for presenta- "on at the board meeting April 0. DEFER TO DIXIE Alternat* VersloDi of Film t« Daok Prejndlees Hollywood, March 31, Color line resistance anticipated throughout the South Is prompting Loew-Lewin to make two versions of 'Moon and Sixpence,' Somerset Maugham yam, which has a Tahi- tlan girl marrying a French artist. It's, feared that this Inter-raclal union' may be resented in some states. Femme leads will be alter- nated from light to dark, but (Seorge Sanders In the male lead may be un- affected. PIX BIZ EXECS TO SIT IN WUHWPB In place of sub-committees, rep- resenting various branches of the film industry, to act as advocates in appealing to the War Production Board for materials restricted by priority classifications, it is reported that the WPB will select personnel from the industry to' act as advisory committees. Understood that the Industry has for some .time past been offering to send personnel from exhibition and production ranks to Washington to serve full time in an advisory capacity in order to guide WPB officials so that any proposals on' restrictions of industry require- ments would be given cacetul scru- tiny prior to being put Into force. Statement on priorities, likely" in- cluding names of advisory commit- tees to represent the industry, was scheduled to be issued In Washing- ton yesterday (Tuesday) by M. D. Moore, Consumers Goods Divisioa ALMOST COMPLETE REMAKE OF 'mm Hollywood, March 31. Metro has assigned Roy del Ruth to direct almost a complete remake of 'Panama Hattie.' Mary McCall, Jr., is concocting the new script. Studio ordered a fresh start after a sneak preview'failed'to impress. Arthur Freed continues as producer. McCarey Setdes .With Hnghes, Sets Up at RKO Hollywood,' March 31,, Leo McCarey is setting tip his own production unit at RKO, following settlement of his legal quarrel with Howard Hughes. Under the armi- stice, terms, McCarey agreed to di- rect ^ his own . story, 'Hollywood Legend,' for Hughes one year from now, provided Hughes has the pro- duction ready to shoot at that time. McCarey's first picture under the new RKO contract is 'International Honeymoon,' slated to start May 11 with Gary Grant and Ginger Rogers as co-stars. , Lewis Starts With Three Hollywood, March 31. David Lewis draws three pictures as a starter-urtder his neW'Associate producer contract at Paramount. Films are 'Frenchman's Creek,' The Hour Before Dawn' pnd, 'Storm.' Hunt . Stromberg's Palaver With Rafterjr Nearinff the Dotted Line Stage—Cag- nejr Bros. All Set GOLDWYN MAYBE Hollywood, March 30. Gary Cooper is reported flirting with the idea of heading his own unit at United Artists when his five- year contract wltti Sam Goldwyn expires in September. Understood UA is ready to arrange financing two pictures annually,-in which he will star and' - produce. Several oilier majors are bidding for Cooper, 'wlio has been Goldwyn's b.o. mainstay. Actor started In 1924 with Gold- wyn, having at first alternate Par- amount-Goldwyn contract and later exclusively Goldwyn, Under terms of his current deal Cooper is paid $150,000, per plctlue. Cagney, Stromberr, Goldwyn Final financial details of the deal by which' Hunt Stromberg wiirfol- low James and William' C^gney into United Artists as producers are being worked out on the Coast this week. Stromtterg's dickers with RKO and, to a less extent, . other companies, ceime to uhcertein' conclusions and he appears definitely set for UA now. UA-Samuel Goldwyn negotiations are also hot, although RKO Is of- fering strong competition in the -way of terms to hang on to the producer. Leo Spitz' is repping Goldwyn in the talks, which must shortly be con- cluded, inasmuch . as Goldwyn's (Continued on page 50) Even If Pix Cos. Boy British Bonds, U.S. Firms Can't Use Frozen Coin Matter of American film compa- nies' purchasing British bonds as a gesture of goodwill towards - a friendly nation in war is still hang- ing fire, with legal opinion in the trade fairly well divided as to whether such purchases would vio- late the Johnson act. Some film com- pany attorneys claim that recent legislation has virtually nullified this act, even if it has not been formally repealed, and that this makes the purchase of British liens legally pos- sible. However, it .will hot be acted on by the Hays office but left as a 'matter up to individual companies tiecause of this difference of opinion. If and when any American dis- tributors buy Britain bonds, they in no way wUl figure in the un- freezing of U.S. distrib coin im- pounded in London. Although there is now upwards of $20,000,000 frozen in BriUin, purchase of these l>onds would in no way thaw but any of the money.^Siich purchase would sim- ply mean that currently impounded coin would t>e definitely tied up in (London since no.switch.from British bonds or stocks Into' American money is allowable tmder present U.S. regulations. BREEN EXTENDS VACASH His Old Hays Office Prodactton' Code Job Still Uncertain Hollywood, March 31. Joseph I. Breen, vice-president in charge of RKO studio operations, Is extending his Mexican vacation until late In April. He was originally due back next Monday (6). Charles W. Koerner has taken over Breen's duties during latter's ab- sence. No Hays Olscusslons, But • ' Although there was no discussion about getting an executive to head the Production Code Administration ^ at the. Hays office directors, meeting (Continued on page 50) — JUNK COORDINATOR That'! Matty Fox's OMoUl Tag with WPB ♦.'Ilystery as to what the govern- ment post U that took Matty Fox from the vice-presidency of Uni- versal and set him down In Wash- ington last month has been solved. He's 'coordinator of gathering junk' for the War Productions Board, In an effort to break the bottleneck in steel production. ^ First task that Fox has laid out for hImseU is getting all the old jalopies lying around auto grave- yards to the canhoh-inakers, Wher. '. that's well under way he plans to speed up a campaign among farm- ers to get them, to contribute their old tools and scrap to the 'war' effort. PROPOSE 10 m CURFEW AS WAR MEASURE St, Louis, March 31. A move to Qlose flicker houses, niterles and" other places of enter- tainment In St. Louia Cowty, which .lies just west of this burg, at 10 p.m. dally as a war 'measure, hai^ been started by the Good Government Club of Richmond Heights, one of the suhurljs. Iiast week the mem- bers of the ofganlzation adopted a resolution calling upon the County Court of St, Louis County to put.the idea into effect fot the. duration of the war. The resolution pointed out the early closing plan would 'enable resi- dents to save, money for defense stamp purchases, enable them ta get more sleep in order to do. war duties better and also wbuld conserve the consumption of juice. The court is without power to order such closings, but the Richmond Heights residents are going ahead with the move. 20TH-FOX NET SEEN AT OVER $3,000,000 Annual financial report of 20th- Fox is expected out within the next 10' days, with the corporation seen certain of. showing a substantial profit as contrasted 'with' a loss of $517,336 in 1940, Declaration of 25c dividend on more than 1,741,000 common ^res confirms Wall Street esthnates that the 1941 net profit may exceed $3,000,000. . ' Chapfin Scores Point in 'Modem Times' Suit Either Georges Lourau, president of Films Sonores Tobls, French Film Company submits himself for an ex- amination before trial by March 5, 1943, in the N. Y. federal, court, or his company's action against Charles Chaplin, Chaplin Film Corp., and United Artists ' will be dismissed. Judge Samuel Mandelbaum so r;uled last weelt " ' The French company had asked an extension 'of time to'six. months after the end of-the war, but this was' de- nied by the court." ' Suit craims Chap- lin lifted 'Modem Times' from plain- tiff's picture, 'A Nous La Liberte'. An injuixction,. .accounting of profits land damages are asked. Spyros Skouras is the only can- didate being considered for the post of 20th Century-Fox prexy to suc- ceed Sidney Kent, and the sole stum- bling block to hlq election at the' an- nual ^meeting April 15 Is whether or not he will forsake ius lucrative 10-year contract as president'of'Na- tional Theatres to take the job, .Jo- seph M. Schenck declared yesterday (Tuesday) in New York. A number of names have been bandied about in New Yolrk and Hollywood of other men said to be candidates -for tfie Fox presidency, but Schencic discbunts them. Among those most prominently mentioned have.been Tom Gonnors, .Hermann G; Place, Charles Buckley, George J. Schaefer and even'Will H, Hays. Skouras Is favored for the post by both Chase National Bank officials, who control a majority of 20th-Fpx stock interests, and the Joe Schenc^- Darryl Zanuc^-Blll Goetz group. The only difficulty is insistence by both "^Ides that Skouras cannot head both 20th-Fox and National Theatres at the same time. There's fear of Gov- ernment complications or suits, 'ds . well as stockholder protests in one mail bossing both th^ tlieatre and production companies,- 10-Tear .Paot as Theatre Head / . What #nakes the decision "difficult for Skouras is the tact that he'd earn considerably less as Fox prexy, at least at first, than' he iS' getting now under his new 10-year pact as NT head. Current contract provides for salary and percentage of profits and is now paying him in excess: of $300,000 a year. ^ Schenck said he hoped a solution - might.be found In allowing Skburaa to retain some' sort of pereeptag* interest in NT. He was slated to con-- fer with Schenck yesterday.' (Tues.>, with the likelihood that he -will shortly come to a decision. Selec- tion of a prexy then will be siib* mitted.to a board.of directors meet- ing next Wednesday (8), to be at- tended by Zanuck, upon his return from Hollywood^ If Skouras haa consented to give up NT, the board win okay him and His. election will talce place. at the meeting the fol- lowing week. As for possibility that Connors would get the presidency, Schenck commented: 'We brought hhn in t9 do a definite job and we want him to continue doing it.' Connors: re- cently came to 20th from. Metro. as assistant to Kent. WELLES NEARS WASHUP AT RKO, 1 MORE TO CO ^Hollywood, March 3l! One more picture, following It's All True,' 'washes up the Orson Welles (Mercury Productions) deal with . RKO. Forthcoming MercUry film, to be stated soon with Norman Jpirter dlr.ectiijgjn Mexico, Is asid?. from the RKO contract and.Is being, financed by Mercury .for probable United Artists release. RKO-'WeUes deal caUed for four films in addition to 'Citizen Kane.' Quartet consists of 'The Magnificent Ambersons, 'Journey Into Fear,* 'Jf■ All True' land one more to .be inade when Welles returns from Brazil. Honoring Patterson Richard, C.. Patterson, Jr., chair- man of' .the board of ItadiO;Keith- Orpheum,. will be tehdered a testi- monial dinner May; 18 at the Hotel /^Btor, N. Y., for his work as chair- man pf the Defense Savings Staff' (bonds and stamps) in New York state. It .WIU be sponsored by tbk' T'outig Democratic club. '.Patterson will receive the club'a annual award for- distinguished service. •* '"' ' ■ •' '•