Variety (Apr 1942)

UTedueBday, ApriI22»1942 BIZ (MF Haniui Spoken to Odium on a Deal To Buy RKO, J. C. Stein, MCA Prez, InNItoHuddlewithRCA'sSaniofr Hollywood, April 21. Parleys, with ultimate object ol a takeover of RKO by a group headed by Music Corp. of America's prez, Jules C. Stein, get underway in New York with arrival there of Stein who goes into immediate conference with David Sarnoff, president of Radio Corp. of America, Before heading , east. Stein talked over the proposal ' here with Floyd Odium and his at- torney, Ed Welsl, to take over the Atlas Corp. interests. Odium's interests control 40% of RKO common stock, his Atlas Corp. holding upwards of $10,000,000 in RKO stock. Odium has invested, ap- proximately $3,000,000 in cash in RKO to date. Radio Corp. of America is under- stood to have come Into the RKO set up 13 years ago with an original Investment of $250,000, which to date has swelled to $16,000,000, by inclu- sion of $11,500,000 for which RCA got deljentures, common and pre- ferred stock; and of which sum ha got back $8,000,000, with • like amount still Invested. ; RCA Is trying to dispose of its interests, being dissatisfied with RKO's operation under the George J. Sthaefer regime. The Rockefeller interests are also trying" to imload their $5,000,000 investment, consist- ing of notes and around 20% of stock. Odium is reported Impressed by Stein's offer, which would provide for paying Odium Interests (Atlas) in stock, and coin. Odium, at one time, planned to maneuver control of RKO common, but now wants to dispose of Atlas' interests at a figure satisfactory to him. Stein, reputed very wealthy, has long nursed a hankering for picture production and' theatre operation, to supplement his highly lucrative agency b)iz. He negotiated several package deals with RKO, and wants to continue such arrangements. Stein believes tliat with such substantial Investment and the bank's support he can swing a deaL^K ^^y- I About a month ago. Stein made overtures to Mary Pickford and Charlie Chaplin for purchase of their Interests in United Artists, but that deal never progressed beyond the talk stage. Stein would give RKO a fast new shuffle, if a deal with Sarnoff were consummated. After setting the finan- cial structure he would start house cleaning which would weed out many including most of the studio's operating personnel. Also figuring adversely in the reorganization would be various other RKO com- panies, including holding and sub- sidiary companies. KORDA BUYS OUT HIS BACKER'S INTERESTS Who's Who? Hollywood, April 21. Epidemic of name-changing retagged three contract femmes at Paramount. Dolly Loehr be- came Marguerite Lynn, Lora Lee. is now Donivee Lee, and Betty Jane Rhodes is' simply Betty Rhodes. Meanwhile Bryant Fleming at Warners switched to Gig Young, the character he plays in 'The Gay Sisters.' Then the nominal bacteria shifted to the Colum- bia lot where Lorraine Gettman she'd her pristine cognomen and came up as Leslie Broolcs. Pix fans Also Go for Radio, And Vice Ver sa Filmgoers of the nation are also Its radio listeners and, vice versa, radio listeners are heavy filmgoers. Those who seldom tune in on the air waves likewise seldom lay their coins on the b.o. silL That's the conclusion drawn by Dr. Leo Handel, director of the Motion Picture Research Bureau, from the first study of correlation between films and radio. Handel, who does audience research studies- for. David O. Selznick and other producers, made tiis analysis on interviews in Manhattan, Brooklyn, Queens and the Bronx. Statistics show that those who never listen to the radio after 6 p.m. average only 2.5 attendances per month at films. On the other hand, those who average over four hours an evening of radio listening go to pictures 4.5 times a month. Film attendance goes up directly with quantity of radio listening. SCHAEFER STICKING EAST ON RKO MATTERS Alexander Korda, who is due back In Jlew York from Europe this week, has bought out the interest of the Piiidential Assurance Co. of ..F,ng- ^d in his flhn productions. Pru- dential financed Korda's British pro- ducing activities; from 1936 until 1939, prior to his coming to the United States. Negotiating the deal with Pruden- tial was one of Korda's • principal reasons for going to England re- cently. He was to return to the U.S. by clipper and.was held up in Lisbon for several weelcs awaiting passage. No Third Strike ! Hollywood, April 21, Originally it was 'Dem Lovely Bums' and later changed to 'It Hap- pened in Flatbush.' "Now 20th-Fox is spending $25,000 for five days of e^rtra shooting, . Studio is taking precautions against a fumbled third strike in the ninth inning. Current indications are that George J. Schaefer, RKO prexy, will remain at New York home office for several mftnths barring unexpected developments at tiie studios necessi- tating his return to the Coast. Plans for an RKO-Radio na'tional sales convention have been discussed here recently, with some talk that it may be held in July. Much would depend, however, on speed with which product lineup for next sea- son can be whipped into shape for presentation to a convention. Report on company affairs will shortly be prepared, from accounts, for submission to RKO shareholders if annual meeting is to be held in June, as announced a few months ago. Scliaefer was in Washington over the weekend, returning to New York Monday (20). Understood he conferred with of- ficials on the Orson Welles picture, 'It's All True,' being filmed in Brazil. WPB MAY PICK OVEHLLBOSS Major Objective Reported to Be Realignment of Studio, Theatre and Exchange Op- erations So BusineM Can Continue Near Normal Via Employment of Women— Restrictive Regulations in Offing . Spyros Skouras to Continue Active In NT, While Chas. Skouras Becomes Its Prez; Bowles Offered N. Y. Post WALL ST. MAN POSSIBLE Donald Nelson may appoint ,an over-all coordinator for all branches of the entertainment Industry, pri- marily' to handle labor and priority situations within the framework of the War Production Board, accord- ing to persistent though unconfirmed repibrts within the trade. One of the major objectives would be the realignment of theatre, stu- dio and exchange operations so that business can be continued as near normal as possible through employ- ment of women, as manpower is ab- sorbed In defense plants and the armed forces. Theatre operators would. In this event, be advised not to train young- sters below draft age as replace- ments for older men who are going to work for Uncle Sam. In some sit- uations theatre circuits have already placed women in jobs formerly held by men, but this policy promises to become more far-reaching than an- ticipated so faf. To date the female (Continued on page 20) FILM EXECS'DX POWWOW ON PRIORniES Orson Cables Changes Hollywood, April 21. Three new scenes are being added to 'The Magnificent Ambersons' at RKO, with' specific instructions cabled by Orson Welles from Rio de Janeiro, where he is currently mak- ing 'It's AU True.' Norman Foster directs the added shooting. Washington, April 21. Producer-distributbr • representa- tives meeting with War Production Board officials on priority problems this morning and ag.In late this afternoon (Tues.), were given an outline on conservation of various materials, and were asked to do their utmost to cut down film consump- tion. No specific figures for cur- tailment were mentioned in early huddle's which took place under the chairmanship of M. D. Moore, chief of Section 4, of the Consumers Dur- able Goods Branch. Ix>uis Upton, head of the Con- sumers Division, addressed the reps and stressed shortages of rubber, copper, iron and steel supplies for non-war industries. Upton stated that the Government fully recognized the value of films, along with the press and radio,, in maintaining public morale at a high level in war time. He urged, none- theless, that use of essential mater- ials be reduced and, giving a speci- fic instance, suggested that wood be used in set construction in place of metals, No - specific priority regulations were decided upon at first meeting though an advisory committee was' appointed from among the producer- distributor leps present. Committee includes Barnsy Balaban, Carroll Sax (Warner -tudio manager), Wil- liam F. Rodgers, Jed Buell (Com- mander Pictures), Abe Montague, John J. O'Connor, O. Henry Briggs, (PRC), Herman Robbins, M. J. Sie- gel, W. Ray Johnston, Earl J, Spon- daic, (Movietone), N. Peter Rathvoh, Louis de Rochemont, George Weeks, Grad Sears and Ray Klune, Society Independent Motion Picture Pro- ducers. Nice Going, Pop Hollywood, April 21. Walter Huston becomes a speechless souse for the sake of his boy iJohn in 'Across the Pacific' at Warners. It is an old family custom among the Hus- J tons—not the souse, but the speechlessness—whenever young John directs a picture. ' • Father Walter died silently in "The Maltese Falcon' and bar- tended mutely In 'In This Our Life' as an unbilled mascot for '. his offspring. 20th-Fox Board Reelects Slate; 8(IOaNet3Mos. Following election of the 20th-Fox board of dlrefctors at the annual stockholders meeting In New York yesterday (21), Spyroi Skouras, newly appointed president of the company, announced that profits for the first quarter of 1942 would be approximately $800,000, virtually 100% over last year, for the same period, after setting aside approxi- mately 90% of profits to meet taxes. Profit figure was arrived at after setting $3,800,000 to reserve for the year for foreign holdings and rentals. New directorate, elected by ma- jority-votes of 1,041,031 2/24 common shsttes represented out of total of 1,741,990, and 797,227 10/12 preferred out of total of 016,364 outstanding, holds four new members, Wendell L. Willkle, SpyroB Skouras, William Goetz and Darryl Zanuck. These directors fiU vacancies caused by death of Sidney R. Kent and resigna- tions on April 0 of Wilfred J. Eadie, Felix A. Jenkins and Edwin P. Kil- roe. Others, reelected, were H. Don- ald Campbell, John R. Dillon, Daniel O. Hastings, WiUlam C. Michel, Wil- liam' P. Philips, Hermann G. Place, Seton Porter and Sydney Towell. Bcdeeta OITIcers Board of directors went into ses- sion, following the stockholders meeting, to reelect company officers as follows: Willkle, board chairman; Skouras, president; Zanuck, vice- president In charge of production; Goetz, v.p. in charge of studio opera- tions; Place, chairman -of the execu- tive committee; Michel, executive v.p.; Towell, treasurer; Eadie, comp- troller; Jenkins, secretary, Skouras, in discussing company operations, told the stockholders that gross business, foreign and domestic combined",' was up $4,000,000, or arouiid 30%, for the first quarter ending March 31, as compared with the corresponding period in 1941. He pledged that the company would de- vote considerable effort to maintain public morale at the high level re- quired for the successful prosecu- tion of the war. Skouras opened the meeting with a tribute to Sidney Kent, predeces- sor 20th prexy, saying his death wa? a great loss to the entire industry. SPITZ WRITES SKOURAS BROS/ NEW CONTRACTS Leo Spitz and Charles Skouras are in New York'to set up new contracts. Former, as attorney for the Skouras brothers, will prepare the covenant for Spyros Skouras as new 20th-Fox prexy, and a pact for Charles to supersede his present 10-year instru- ment, as National Theatres v.p. Latter now becomes prez of NT. Spyros Skouras, president of 20th- Fox, will retain more than a super- visory interest in National Theatres, from accounts, due to his presence in New York. Charles Skouras, head of Fox-West Coast, slated to become president of NT, plans to remain on the Coast, operating both circuits from Los Angeles. Aubrey Schenck, nephew of Jo- seph M. Schenck, and film buying^ exec assisting Spyros Skouras at NT, goes over to 20th-Fox as assistant to Skouras in an executive capacity. Talk of moving National Theatre headquarters from New York to the C^ast has been, largely discounted, with C^ase National Bank interests reportedly convinced of the advisa- bility of maintaining the home office in the east' Originally, plans were discussed to have. CharleS; Skouras establish per- manent headquarters in New York, with latter 'reportedly not inclined to shift. Understood that all inter- ests are now agreed that Skouras can operate both companies. ef- fectively from the Coast and, at the same time, stay close to Fox-West C^ast, which Is the profit backbone of the NT circuit of approximately 515 houses. Aroh Bowles Efutf In the meantime Charles Skouras h^ asked Arch Bowles, Sian Fran- cisco division- manager, to become eastern operating head of NT out of New York, with the former commut- ing between the. two points as re- quired. Bowles was at one time operating head of Fox West Coast houses. Understanding .Is, however, ' that Bowles is not arixiblis .td move from the Coast. Meeting of NT division ^nanagers was held yesterday (Tues.) and Is slated to continue through tomor- row (Thurs.) on appointment of an eastern oiterator for NT. Among those now conferring are Frank CRick') Ricketson, Denver;. Frank Newman, Seattle; AI Fink, Portland; Harold Fitzgerald, Milwaukee; Elmer . C. Rhoden, Kansas City; Dave Idzal, Detroit; Charles. Skouras and Bowles. A definite decision is expected be- fore the weekend, with Bowles ciir- rently the most prominently men- tioned for the spot it he wants it. Bill Powers, National Theatre exec who formerly sat In on circuit fllin buying deals, was considered th« likeliest candidate to assume charge of Eastern operations. He left New. York last Friday" (17) to Join the armed forces as a major in the U. S, Army. JOHN C. FLINN EXEC . SEC OF INDIE PRODS, John C. Flinn ('Variety') resigns from this paper May 1 to assume the post of executive secretary of the newly formed Soci^ty of Independent Motion Picture Producers, Loyd Wright, Hollywood attorney. Is presi- dent of this organization of indie film-makers whose ranks comprise Charles Chaplin, Samuel Goldwyn, David O. Selznick, Walt Disney, Alexande.r Korda, Mary Pickford, Orson Welles and Walter Wanger. This body has gone on record as op- posing the United Motion Picture Industry's blocks-of-12 sales plan, Flinn will headquarter on th« Coast, but will divide bis time I>e- tween both coasts. Wanger, Goldwyn Resign Hollywood, April 21. Walter Wanger pulled out of Mo- tion Picture Producers Association, with Sam Goldwyn expected to fol- low this week. Both are founder- members of the new Society of In- dependent Motion Picture Producers, headed by Uoyd Wright Understood membership fee Is $7,500, same as paid the MPPA.