Variety (Sep 1942)

Vedpeflday, Septwnlwr 1H| PICTURES 8 N.Y.CUp3%atB.0.AsAgaiii$t.v/o Elsewhere; No War Boom in Gotham Despite the general tUt In box- office revenue there has been an av- erage increase of 20% over the coun- try. However, a survey of New York city fans by the Motion Pic- ture Research Bureau reveals that attendance has increased only 3%. Survey was limited to people who attended picture theatres at least once a month and was complied, as a running question during other surveys in recent months, to insure non-pointed answers. . According to Dr. Leo Handel, di- rector of the bureau, 22% of the fllmgoers now attend more often, 19% less often (hence the 3% tilt), while 59% attend at the same rate as last year. Attendance variations tend to cancel themselves out with the basic gain stemming from the comparatively minute, in New York city, increase In revenue from war Industry. The results actually verify the longstanding contention, among lo- cal exhibitors, that N. Y. city nabe houses will not match the nation- wide boxoftice harvest until some- thing is done about providing addi- tional war contracts for local in- dustry. Midtown houses afe doing boom business, on par with general national average, due to Influx of servicemen and war baby spenders, out habe houses, while up slightly, are nowhere near lush grosses marked up elsewhere. ADMEN BELIEVE CODE ON ADS TOO PRISSY Advertising Advisory Committee of the Motion Picture Producers & Distributors Assn. huddled briefly yesterday (Tuesday) to take steps on the matter of so-called 'wartime advertising methods.' Recent use of word 'heir in newspaper advertising and allegedly sexy ad matter used largely on New York theatre pnsems was up for discussion. Understood that a subcommittee was named to go over the situation and report back today, with action expected at this cession. . Reported that the attitude of some ad-publicity managers In N. Y. is that current war conditions justify some sweeping changes in the MPPDA advertising code setup. Otherwise, they fear the present rules will be continually violated. These ad men claim that more virile ads are needed presently, and that perhaps the present code is out mcded. Bernerd, Levey M Over Prodocef Credit On UA Jungle Fdm Los Angeles, Sept. 1. 'Jacare,' a jungle picture filmed partiaUy in Brazil, .will b^ released by United Artists without producer credit, as a result of a dispute be tween Jeffrey Bernerd, Monogram producer, and Jules Levey, of May fair productions. Bernerd, formerly with British Gaumont, declared he had put in 21 months on the production of the crocodile film, shot on expeditions along the Amazon, and threatened to start court proceedings if Levey as- sumed producer credit. Levey ex plained that picture has been re arranged, with a new ending, and will be released as a Mayfair pro- duction without an Individual pro ducer. Hold That Title Hollywood, Sept. 1. Metro, preparing 'No Surren- der,' and Arnold Pressburger, owner of 'Never Surrender,' are in a clinch over title priority. Metro bought its story from the Satevepost and Pressburger has a sizeable investment in his orig- inal yarn. Both sides refuse to surrender, and the battle may be decided by the Hays office. SEE SCREENING AS MINOR MATTER PLACES OTHERS U. S. I^cture-Goers Contribute 64% of the World-Wide Revenue Only Distrib Selling More Than Five Films in a Block Is Allowing Rejec- tion One or Two Films Out of Eight — Believe Metro Policy Will Force Par, WB, 20th, RKO, to Larger Blocks Than Five, Plus Cancellation 'ESCAPE CLAUSE' Tendency reported in some trade circles, following rejection of the United Motion Picture Industry sales plan, is that where distributors have a sufficient backlog of product they should have no hesitancy in screen- ing blocks embracing more than five films such as Metro is doing. Pointed out that if they have the product on hand, distribs could just as easily screen everything that Is to be sold, since the cost is nominal, but that the groups need not be held at five pictures in each. Jn this con- nection, it is added that the desire to sell 13 but screen only five out of the package did more to kill the UMPI formula with the Department of Jus- tice thab any other phase of the plan, in apiie of the fact that tradeshow- Ings under the decree system of sell- ing have drawn poorly. In some of the smaller exchanges, on occasion, it is said not a single exhibitor or his representative have attended, but that the pictures have been run off anyway. It ai^ears exhlbs mostly wanted to see the larger pictures, especially those be- ing marketed on percentage, and didn't care about the rest. Thus, the concern of the D. of J. and Thur- man Arnold over blind-selling is felt to have been of unnecessary im- portance so far as tlie average exhlb is concerned. However, noted In the trade that screenings involve only minor over- head, principally the cost of the projectionists, electrical juice and notice of the showings, and there should be no reason why they aren't continued but on a more advanced scale so that blocks up to 13 could be sold at one clip. This may come later on, it is believed, especially for coinpanies that are loaded on completed product. In Arnold's opinion on the UMPI proposals, he said in part: 'Experience under the decree has persuaded the anti-trust division that trade-showing of motion pic- tu:es before their sale is desirable. . . . The existence of the large back- log of features (noted as approxi- mately 100) will permit the consent- ing distributors to sell in blocks as large as 13, grant the cancellation privileges they have represented themselves as willing to grant in selling blocks of that size and still trnde-show them before licensing. U'S NINE AT A TINE ALL-TIME STUDIO HIGH Hollywood, Sept. 1. Production at Universal climbed to the highest point in its history with the start of 'Pittsburgh,' making a total of nine features in work at the same time. Eight others are 'Corvettes in Ac- tion,' 'Shadow of a Doubt," 'Passing the Buck,' 'Forever Yours,' 'Sin Town.' 'Arabian Nights' and 'Night- mare.' Policy of Metro in permitting can- cellation privileges on its first block of eight 1942-43 pictures, now being offered for sale, places other decree distributors in the position where it is held they will ultimately be forced to do the same. The lead taken by Metro in (1) setting up a block of more than five films and (2) granting rejection to its accounts, leaves the other companies on the spot, in the opinion of exhibitor sources, and, no doubt will have to be followed In one manner or an' other. However, should l^mec's, Para' mount, 20th-Fox and ItKO make up larger packages than five pictures, with which they start out the new season, the chances are the number in each group would vary up to 13, so that there could be no charges of acting in concert. Under the Metro deal covering the eight pictures in its lead-ofl block for 1942-43, the exhibitor may cancel two out of the group if the average rental previously paid runs to no more than $100; whereas one out of the eight may be rejected if the rental runs from $100 to $250. This differs somewhat from the United Motion Picture Industry sales proposals under which two out of'a maximum of 13 would be cancel- (Continued on page 24) Agent Arthur Lyons East on Package Fdm DeakYiaUA,Fmancing Arthur S. Lyons, who represented Jack Benny in his starring-producing deal with United Artists, is reported mulling a deal to set up several other film production units, likely utilizing his agency and other talent and releasing through UA. Further negotiations with prexy Ed Raftery are now on, following arrival Mon- day (31) of Lyons and George Bag nail, in charge of UA production, from the Coast , Lyons, who represents Ira Gersh- win,..may produce a film version of 'Porgy and Bess' as his first for UA] though this property has previously been mentioned as a possible Jack Benny production. Lyons plans to limit himself to package deals, such as (Charles K. Feldman and -Music Corp. of America have been lining up. Among names handled by the A. & S. Lyons agency are Eugene O'Neill, Casey Robinson, Jerome Kern, Cole Porter, Hedy Lamarr, Dorothy La- mour. Jack Haley, Judy Canova, Ida Lupino, Ilona Massey, Martha Scott Allan Jones, Norman Corwin, Lew Brown, Leo McCarey, Tay Garnett, Lucille Ball, Reginald Gardiner Louis Hayward and Van Heflin. Sev- eral of these names have already been discussed in connection with one new unit to turn oRt four pic- tures annually. Meantime, details for financing the pictures scheduled for production by Jack Benny .'or UA releases are be- ing discussed by Lyons, Bagnall, Raftery and Manhattan bankers. Bank financing will be used in ad- dition to Benny's own investment. Lyons yesterday met with Bankers Trust officials in New York to ar- range additional financing. Break It Up Hollywood, Sept. 1. You will see no more Louis XV chairs or gateleg tables shat- tered on a screen heavy's conk unless the studio prop men in- vent a substitute for balsa, a South American wood that looks tough and breaks at the slightest resistance. Government has taken over the supply of balsa, and a heavy's skull, or even a come- dian's, Is only human. COL ZANUCK ON WAR LEAVE FROM20TH With Col. [reported soon to be Brigadier General] Darryl F. Zanuck granted a leave of absence from 20th-Fox to devote his full time to military duties, speculation in the trade this week centered on who might be placed in the breach to carry on his duties while away from the studio. William Goetz, v-p of the corporation who presently holds the rank of assistant to Zanuck .in his duties in charge of production, is mentioned aa the most logical man to carry on although others in the production personnel setup also were listed as possibilities. Spyros P. Skouras, who remained over in N. Y. Instead of going to the opening of the company's re' gional meeting in Chicago, an' nounced Zanuck's request for leave of absence without pay at a special meeting of 20th-Fox directorate on Monday (31). Col. Zanuck at the same time tendered his resignation as v-p and member of the board of directors, the directors accepting with regret. It was revealed at the Monday session that CoL Zanuck had been appointed a member of the execu live staff of Major General Dawson Olmstead, chief signal officer of the U. S. Army. Also that Zanuck would be stationed at tha. War Dep.t in Washington as well as at headquar- ters of the Signal Corps detachment of the Research Council in Los An geles. Zanuck has been a reserve officer in the Signal Corps since 1039. Recently he went to England and Alaska as military observer. He enlisted at 15 in the World War No, 1, serving in France. Zanuck, who was In N. Y. Monday, left for Washington following the meeting, while Skouras also left (Continued on page 32) UA Also Files Special Plea fot British Funds Separate application for unfreez- ing of British rental coin by United Artists, similar to special request whereby RKO has been receiving preferred treatment In getting frozen money out of England, has been filed along with the industry's gen- eral application. It becomes part of any overall deal which may be worked out with British Government officials. To date RKO has been the only company getting rentals out of Brit- ain, consideration being given to the company's unfavorable earning showings. , Stephani Moves Out Hollywood, Sept. 1. Frederick Stephani checked off the Metro lot at the expiration of his contract as producer. Currently he is on vacation after which he will make another studio tieup. Motion picture fans of the U.S.A., who once contributed approximately 50% of the boxoffice receipta in the boxoffice receipts in the film indus- try, are now turning in almost 64% of the worldwide rentals. Since the start of World War II, domestic re- turns to major companies have mounted to more than $252,000,000 yearly while the round-the-world gross wavers between $390,000,000 and $410,000,000. When the war started, Hollywood's foreign fields were lost in Germany, Italy and all the countries conquered or dominated by the Axis powers, meaning most of continental Europe. There was a' general fear among the picture-makers that the Ameri- can market would not absorb loss overseas, but a recent Hays office meeting disclosed that 63.8% of the revenues from films produced and distributed by Hollywood's major plants is paid within the borders of the United States. British market for the past year amounted to around 22%, approxi- mately $88,000,000 which Is frozen by governmental control under the exigencies of war but is expected to be thawed out eventually in various ways. From neutral European coun- tries, such as Switzerland, Spain and Portugal, the coin is merely a trickle. Canada's yearly return Is figured at $13,000,000 or about 3.3% of the world total. Mexico, Cuba and Cen- tral and South America are calcu- lated at $18,800,000 annually, or about 4.7%, and the rest of the world, including Australia, New^ Zealand, China and other lands free from Axis influence are figured at $25,000,000, or' about 6.2% of the globular film rental total. With the Government evincing a desire to keep film production at high gear for the duration of the war, and a heavy demand for pic- tures in all the available loreiga markets, the major cqmpanles are looking for a jump of at least 10%, or around $450,000,000, In the world market next year. RKO REPORTED TIFFING WITH DISNEY Clash between Walt Disney oflies and RKO, revolving about disagree^ ment over terms set for Disney product, is reported. Disney Is again talking of switching distribs, from accounts. Understood that RKO. has had to make readjustments to exhibitors going back as far as last season'* 'The Reluctant Dragon,' more recent- ly 'Fantasia,' due to fact that Disney product in some situations didn't gross guarantee figures. With Disney resisting rental re- adjustments, RKO has had to give exhibs a better deal on'other of its own product. Question of percent- ages on. Disney product also figures in the current situation. Reports earlier this season were that Disney might switch back to United Artists. Lesser's Gehrig Reissue Hollywood, Sept 1. Reissue of Sol Lesser's combo western-baseball feature, 'Rawhide,' starring Lou Gehrig, Is being readied with releasing deal under negotia- tion. Picture cost around $100,000 and was made when Gehrig was brought here for Tarzan' but withdraws as not the type.