Variety (Aug 1942)

Wednesday, August 5, 1942 UBIETY PICTURES 8 RAW mM ClIT DUE IN SEPT. UA Won t Fmance Own Prod., Offsets Possible Beefs on Distrib Favoritism With from 20 to 25 pictures lined up for 1942-43 release, United Artists has decided against financing its own production units. Understood that this decision was reached to offset possible complaints ttom outside pro- ducers, who might otherwise claim that product from the UA subsld was being favored in distribution deals. Opposition to UA production financ- ing came from Sir Alexander Korda, owner-member,-as well as others. Korda, meantime, has reportedly set financing for a film version of Tolstoi's 'War and Peace,' and is ex- pected to deliver from three to four pictures for UA release next season. Korda, who was in Washington over the weekend, is considering malting the Tolstoi classic in England rather than in Hollywood at an estimated cost of over $1,000,000. Believed that greater purchasing power abro^ad may prove the determining factor in 'this move. In addition to the pictures which Korda may personally produce or pick up in England for UA distribu- tion in the U, S., United Artists wUl have the Hunt Stromberg pictures, the Cagneys; and several from out- side producers. A wild animal pic- ture from Jules Levey; in which Frank Buck figures, has already been set for release. Jack Benny has a deal pending with UA, while Charles Chaplin also plans to deliver one picture. Appeals Court Rules Bin Foi Must Serve Prison Term, Pay Fine PhUadelphia, Aug. 4. The Third Circuit Court of Ap- peals in a unanimous decision today refused the appeal of William Fox, bankrupt film magnate, to change his plea from guilty to not guilty on a conspiracy charge. Unless Fox ap- peals to the U.S. Supreme Court, he must serve a year and a day in Fed- eral prison and pay $3,000 fin«. Fox pleaded guilty to charges of a conspiracy to obstruct justice and defraud the Government in his bank' ruptcj' case. He testified against former Circuit, Court Judge J. War- ren Davis and Morgan S. Kaufman Federal bankruptcy referee. Davis and' Kaufman were freed following trial by two juries who failed to agree and the charges ■ against them were later dropped. Fox contended in his appeal that he couldn't be guilty since the charges against his alleged co-conspirators had been dropped. This argument was denied by thff Appeal bench. UNGER, EX-PAR SALES EXEC, MAY GO EXHIB Reported j! J. Unger for 18 years a distribution executive with Par. amount, may enter exhibition on his own. While such plans may have actuated his resignation from Par several weeks ago, Unger states he will not announce future plans un- til after his vacation. He checked out of Par Friday (31) and says he will take a vaca- tion of four or five weeks. Unger has two brothers Iri theatre opera- tion, one In Poughkeepsie, another in Mt. Vernon, N, Y. However, he has always been in sales, having been with the old First National company for years, before being urged to Join Par by the late S. R. Kent, baSed on his FN show- ing. Wallis' O.O. in N.Y Hollywood, Aug. Hal WaUU goes to New York day (7) for a vacation. He will gander 'This Is the Army which Warners Is to screen. 4. Fri- Daye Rose in N. Y. David Rose, Paramount's managing director in Great Britain, is due back in New York from the Coast next week preparatory to his return trip to London. Rose has been giving new product the once-over. , N. W. ECHOES ANTI-DUAL STAND Minneapolis, Aug. 4. Local circuit'heads and some in- dependent exhibitor leaders are echoing the present cry of certain Hollywood producers for 'fewer and better pictures.' They point out that it not only would conserve raw stock, as the Government demands, but put the kibosh on double featur- ing whict^is becoming an increasing menace both in the Twin Citi^ and the territory which, up to recently, has been comparatively free from it. John J. Friedl, Minnesota Amus. Co. . (Paramount) president, is an especially bitter foe of twin billing and the great maority of indepen- dent exhibitors in the territory also are opposed to it. Some of the pres- ent offenders, however, say they're forced into the dual feature policy in 'self defense,' and blame the .other fellow. 'Fewer and better pictures, of course would solve the double fea- ture problem and, I believe,- make for more* profitable operations all around,' Friedl says. 'Besides, pro- ducers turning out meritorious prod- uct are entitled to' more extended playing time than they're now get- ting in many instances.' Briskin's Duties At CoL WiU Be Shared By Bnchman, Cohn Hollywood, Aug. 4. Sidney Buchman, prexy of Screen Writers Guild, has been assigned by Columbia to assume part of the ex- ecutive duties of Sam Brlskin, who is awaiting a call to active service as a major in the Army Signal Corps. Herry Cohn, Columbia chief, will take over the rest of Briskin's tasks himself. Currently Buchman Is doing two scripts, 'Come One, Come All' and 'The American Way,' for George Stevens on the same lot, and is hustling to finish the jobs before Brlskin is ordered to report for duty. When the call comes, Buchman will take over specific production units, wi^h Cohn as general overseer. Meanwhile, members ' of SWG are studying the Guild constitution to determine whether Buchman's post as a studio exec makes him eligible to continue as president of the writers. Understood he will resign the presidency if there Is any con- flict. Hays West ifor Month Will Hays who left for the Coast Friday (31) will stay west about a month. He interrupted his Coast visit to return to N. Y. about 10 days ago in order to personally supervise the industry's plea for un- freezing distributor rental coin in Great Britain. , Shortly after Hays returns to N. Y. around Labor Day, Charles F. Coe, MPPDA vice-president and Hays executive assistant, goes to the Coast. MIIJOfiSGETlEKW40 TO FALL IN LINE U Holding Out Against Per- centage-Wise Cut Based on 1941 Figures As Blum- berg Arrives From Coast to Define Company Stand UNCERTAIN ON WPB Film industry has been given • a week to reach an agreement on cur- tailment of celluloid percentage- wise as discussed in New York last week by industry toppers with Har- old Hopper, chief of the War Pro- duction Board film section. Govern- ment officials figure on putting the new raw stock ceiling into effect be- ginning September, once ^e various companies agree among themselves and providing the final plan i^ ac- ceptable to the WPB. . With Universal holding out again^ a' percentage cut in celluloid, as compared with 1941 figures, pointing out that it was the only company which has reduce)] raw stock con- sumption to any great extent iSnce last year, Nate Blumberg, U prexy, arrived from the Coast Monday (3) to personally take 'a hand in the deliberations. Blumberg was the only major company head unable to be present at the session last week at which Nick Schenck, Spyros Skouras, N. Peter Rathvon, Barney. Balaban, Grad Sears,^ Arthur Kelly and Jack Cohn participated. Based on 1941 consumption of raw stock, but excluding newsreels and prints shipped to foi'eign markets, industry recommendations last week were that a 15% reduction in raw stock be put into effect for all com- panies using up to 60,000,000 feet an- nually. This would include 11 film companies. - Reduction of 20% was proposed on <the next 50,000,000 feet, 25% for the following 2t>,000,- 000, 30% for the next 25,000,000 and 35% reduction on all over 150,000,000 f^et used in 1941. Alternate Batlos As an alternative, proposal was made for a 15% cut on all footage up to 50,000,000, 17%% cut on foot- age from SO to 100 million; 20% cut from 100 to 125 million, 22%% on 125 to ISO million and 25% reduction on all over 150,000,000 feet. The 17%% cut would affect com- panies such as Universal, Columbia and RKO. Warners would come under the 20% cut. Paramount would.be affected by the 22% 7o cut while Metro would be Involved in the 25% bracket. Republic, Pro- ducers Releasing Corp.,, United Art- ists and Monogram would come under the minimum .reduction category. Though ostensibly facing a smaller percentage cut than some of the other majors, it was pointed out dur- ing session last week that Universal would be suffering a greater hard- ship than some of the other com- panies because it has maintained a high production schedule \yhile others such as Warners, reduced its releasing schedule from 49 pictures In 1941, to 36 for the 1942 season. Government officials, going by the calendar year instead of the film season, have not taken this situation into account, from reports. Whether the Government will ac- cept the final industry recommenda- tions following an agreement within the trade, and if-these will be agreed to for a full calendar year or subject to interim changes, depending on Government wartime requirements, is not yet certain. Hopper Indicated, however, that he wanted the indus- try to run its own business and that he would present the discussed con- servation plan to the WPB with the, hope that the department's require- ments would thus be fulfilled. Problem of effecting a reduction in footage, once an industry agreement is reached, currently continues under discussion. In some companies cur- tailment in the number of shorts and secondary features is under con- templation. Others plan to reduce the number of prints in circulation. IS $1004,767.000 a Record Gross For Entire Fix Biz; $681383,000 Over'39 16 mm, to Save Film Hollywood, Aug. 4. Despite repeated nixing by the Hays office directorate, the use of 16 mm. release prit\ts to service smaller theatres oft the main line is winning new sup- porters and, is held feasible in line with the film conservation program. Also aiding the move for nar- row gauge prints is the growing use of that type of product for the armed forces ■ here and abroad. It is pointed out that the cost of operation ia reduced through the elimination of fire prevention measures applicable to 35 mm. film which is con- sidered Inflammable, while the narrower stock is on non-in- flammable strips. SKOURAS PAVES WAY FOR FOOD TO GREECE Spyros Skouras, as president of the Greek War Relief, put ovei' what, at first, looked like an impossible task in chartering eight Swedish boats to bring wheat, grain, milk and medical supplies to his starving countrymen. After an impassioned plea to -Secre- tary of State Cordell Hull, and later in a private audience with President Roosevelt, the 20th Century-Fox Film prexy again repeated the urgency for immediate succor to the famished Greeks, He found both highly sym- pathetic, but both asking: 'Yes, but how are you going to get the food- stuffs and medicines through the Mediterranean and the Axis?' Somehow Skoufas found friends in belligerent world capitals, and even got the Axis to' agree not to hijack the desperately needed edibles,- milk, medicinals, etc., this despite a pre- viously reported waylaying of some 1,200,000 tons of exports to Greece, of which none but some 50,000 tons ever reached their destination. Turkey, which hasn't enough for export, will, however, immediately send 50,000 tons of wheat to neigh- boring Greece, but the main convoy of foodstuffs will come from America. First cargoes sail this week out of Montreal, •on neutral Swedish liners, through the Mediterranean. The technically neutral Swedes were al- lied with Skouras and the Greek War Relief Ass'n in bringing pressure on the Nazis and Italians to lay off this time. Once a month from Montreal hereafter there will leave three boats, totaling some 6,000 tons. Joan Gets a lift ' • Holl/Wood, Aug. 4. David O. Selznick handed a new contract to Joan Fontaine with an upped but undisclosed salary. Under the old pact, calling for three pictures a year with a guaran- tee of six weeks on each film .at $1,000 a week, Selznick cashed in on his star's loanouts. On the Short Line Hollywood, Aug. 4. One dozen new patriotic shorts have been added to the 1942-43 RKO program under the general title, 'This Is America.' Series covers industry^ farming, forestry, mining, fisheries and other factors that have built up the United States, Washington, Aug. 4. Aggregate receipts of motion pic- ture producers, distributors and ex- hibitors for 1940 showed a $68,383,000 rise over 1939;~~according to com- parison of incomplete statistics just released by the Treasury Depart' ment and takeij from the prelimin- ary analysis of -corporation income statements filed during the calendar year 1941. « The general upswing due to in- creased employment, accompanying the defense program and production of war materials for England and other friendly belligerents, carried the total revenues of the entire in- dustry above the $1,000,000,000 level. Breakdowns for the differen-t branches of the business iare not yet available and the preliminary data is not strictly comparable with the final figures for 1039 but the Treasury gave out enough info to show that 1940 was one of the best- years in film history—from the standpoint of patronage. With the take of both companies showing a profit and ihose running at a loss lumped, the over-all haul for the industry in 1940 was $1,004,- 767,000. The revised 1039 figure was $936,- 384,000. Corresponding figures for previous years were $93'',941,000 in 1938 and $818,318,000 in 1937. Fewer companies ran in IhK i^pd- during 1940, with the result that th% aggregate net income , of the entire ' business climbed $5,948,000 over the 1939 level. The first tabulation .from the 1941 returns revealed i29 more film com- ' panics made c| profit than in the pre- ceding year. Out. of 4,636 corpora- tions filing income statements, 2,353 revealed net earnings when the books were closed as against 2,224 out of 4,611 in 1939. The combined gross receipts figure —$l,0O4,787,00O-'represents $810,376,- 000 -taken in by successful companies and $194,392,000 by losing enter- prises. The former figure was $113,- 726,000 better than for 1939, while ^he latter was $45,343,000 less than in 1939. Cdmpanles reporting- net income had earnings $9,060,000 .greater In 1940 than in the prior year, while those 'running in the hole showed a combined deficit $3,112,000 smaller. The successful companies had earn- ings of $79,938,000 and the losers' losses amounted, to $10,397,000. Steadily climbing taxes were obvi- ous in the analysis. From the money- makers in the industry. Uncle ,Sam collected a total of $12,599^)00 on their 1940 operations. This is $2,329,- 000 more than they kicked In for up- keep of the Federal Government for the prior year. Income tax payments for 1940 amounted to $12,525,000 against $10,217,000 for 1939; excess profits levy brought in $74,000 against $53,000. Koemer, H. M. Warner, Thornton Elected 3' Members of Prod. Assn. Hollywood, Aug. 4. Three new directors were elected to Class B membership in the Pro- ducers Association at its local meet- ing yesterday (Monday). They wer« 4:harles Koerner, RKO; Harry War- ner, Warners, in place of Herbert Preston, resigned, and C. W. Thorn* ton, Hal Roach, as successor to Major Roach, now on active service with the U. S. Army. Will H. Hays and Jack Biyson, In- dustry rep in Washington, sat in oa the meeting. Bryson reported on bis activities since moving into the post six months ago. GOLDEN STABTS PIC E. A. Golden, indie pic producer, pulls out for the Coast next week to start 'Hitler's Children' for RKO. Picture, an anti-Nazi theme, is a film version of Gregor Zlener's 'Educa- tion for Death.' Author is newscaster at WLW,'Cin- cinnati, and will go to the Coast as technical adviser on the picture.