Variety (Sep 1942)

PICTtnUBS Wcdi|Cfld«7« September 2, 1942 Skouras Tells 20tli-Fox Convention Pix Biz at Peak Prosperity Since lO; Removes Bucket Umits on Pictures Declaring that all branches of the film industry are currently enjoying the greatest prosperity era since 1980, Spyros Skouras, 20th-Fox prexy, told delegates to the com- pany's regional sales convention at the Hotel Astor, New York, Friday (28) that company policy in future was that no picture would be limited by fixed budget when, in the opinion of studio production heads, it war- rants the spending of extra coin to make it a boxoSice click. He said that extra coin spent in this way would not be dipped from the budgets on other pictures. Touching on the importance of the motion picture industry as a morale builder, not only for the American people but all the United Nations as well, Skouras sketched the process whereby the film industry had as- sumed as its particular responsibility the duty of awakening the masses previously unaware ,of the grave dangers which faced our national existence. The industry saw that German propaganda was even nnore powerful than Nazi armed might, Skouras added, and realizing its obligations took hold at a time when national morale was at its lowest ebb to release pictures which had the greatest effect in bolstering pub- lic sentiment He said that all film companies have carried out and con- tinue to carry out this important duty and referred in particular to "Shores of Tripoli' as an instance of nction that, by the light of recent developments, has become a fact 'Send Atong the Tep Ptetnrcs' Elaborating on the company's *no budget limitation' policy, Skouras stated that this decision had been taken in responco to demands from the distribution department to 'send along top pictures and we win get percentage terms, more preferred playing time and better grosses.' He pointed out, however, that the studio could not be expected to eX' ceed the budgets on pictures if the sales department did not get in- creased rentals which 'A* product merits. He contended, also, that in view of the currently healtliy boX' office conditions which mAe more expensive production possible, ex' hibitors should gear themselves to guarantee studios that they wfiil get Increased revenues ib justi^ in< creased expenditures. Skouras men- tioned 'Black Swan* as an instance of a production which had exceeded the original budget and said, 'We must get more money for big pic- tures which merit percentage terras.' New Pcaka Substantiating his statemttt that the film industry is bitting, a new profit peak in more than a decade, Skouras cited as an example that Tales of Manhattan' has, in U prC' release towns where it has already beeni shown, outgrossed every 20th' Fox film released in those towns last year. He also mentioned 'Foot light Serenade' which. In eight pre' release engagements this season, has exceeded the grosses of any 20th film shown last year in the same situations. Another significant fac- tor stressed by Skouras was that there are now 17,000 motion pic- -tuces theatres in operation in the. VS.; as compared with 14,000 houses four years ago. With regard to the 20th produc' tion schedule Skouras said there may be 12 more pictures, in addi' tion to the 30 already announced, but that this wiU be determined by availability of material and talent Sales boss Tom Connors, Andy Smith, Jr., Hal Home and Lowell Thomas also spoke during the opeU' ing day of the convention. Open forum for questions from the floor was held Saturday with most of the delegates pulling out of New York Sunday (30). Skouras left for Washington Fri- day evening to discuss the War Bond drive wiih Treasury officials and then headed for Chicago for the 20tb-Fox regional convention there Mondajr (SI). First 11 20th-Fox 'A" pictures have been sold to the Fox West Coast circuit on percentage terms, it was announced during opening session of the convention. William Kupper, executive assistant to Connors, was not at the. meetinj, having remained on the Coast to iron out the deal with F-WC. Deal with F-WC may set the pat- tern for terms on all 20th-Fox top product throughout the country. Connors Bcada Chi Meet Chicago, Sept 1. Tom J. Connors, 20th-Fox v.p. in charge of distribution, told delegates to the company's regional sales meet here yesterday that all-out coopera- tion with the nation's war effort is the first duty of everyone associated with the film industry. Among other speakers were W. C. Gehring, A. W. Smith, Jr., and Hal Home. Spyros Skouras left New York yesterday (Mon.) and was expected here late today. Following conclusion of the meet- ing here tomorrow night (Wed.), homeoffice execs fly to Dallas, where the six se 'hem and south- western branches convene at the Baker hotel Thursday, Friday and Saturday (5). Last of the four re- gional sessions will be held next Sunday (6) and Monday (7) at the Ambassador hotel, Los Angeles. Following the L. A. meeting, Skouras, Connors and Home will confer with studio publicity director Harry Brand about advance na- tional campaigns which will begin with the purchase of stories. Hollywood, Sept 1. Sara Allgood's option picked up by 20th-Fox. Margo Wood drew stock player contract at 20tb-Fox. Robert Alton signed as dance di- rector by Metro. Valerie Traxler inked player pact at 20th-Fox. Gene Tierney's option lifted by 20th-Fox. William Bendix pacted to make two pictures annually at Ps^ramount. Richard Simmons' player option picked up by Metro. Victor McLaglen signed by 20th- Fox. Natalie Visart signed as fashion designer by Hunt Stromberg. Alice Kirby, Yvonne DeCarlo and Christopher King had their minor contracts with Paramoimt approved by Superior Court William L. Connell drew camera- man ticket at Columbia. KEEN WALL ST. INTEREST IN FOX COMMON 2Mh DBblaeks ChlUcts HoU}rwood, Sept 1. Two horror films at 20th-Fox, "The Undying Monster* aiid 'Dr. Renault's Secret' have been plucked out of the company's regular block-of-five and will be sold separately to the peculiar clientele demanding chiller' dillers. Idea is that the average theatre- goer does not like ghastly pictures while some houses cater to customers who revel in goose pimples. 2ft-Fox Paid Ont $750i000 for 17 Noyek and Plays Hollywood, Sept. 1 With ■ layout of approximately $750,000 for 17 novels and stage plays, 20th-Fox led the Hollywood field in the 1041-42 Literary Derby ending Sept 1. Tbps for the year was the purchase of John Steinbeck's war tale^ The Moon Is Down,' for $300,000. Other literary - financial biggies were The Liast Best Hope,' $80.d60; "The Song of Bemadette,' $75,000; The Pled Piper,' $45,000; Hie Meanest Man In the World,' $40,000; The Immortal Sergeant' $35,000, and 'My Friend Flicka, $25,000. Other buys, not so high but still important were The Ox-Bow Inci' dent* TTie Imposter,' 'The Bird of Paradise,' 1 Escaped from Hongkong' and 'Birthday' Studio is aiming to make up for the toss of film names, due to draft and .enlistments,, by the purchase of stories with marquee draft Studio Contracts Functions Outside of Sales Policy Encourages Retention of tlMPI; Members Being Polled on Attitude Ambnlanee Drive Ends As Ui.Goy't Takes Oyer Response to the appeal for funds to raise 250 ambulances for the American Field Service Overseas Ambulance Corps has been so spdntaneous that the U. S. Govern- ment has now been able to take over, according to an announce- ment issued Monday (1) by Neil Agnew, chairman of the Amusement Industry Division ' Campaign. The U. S.^will be able to supply all am- bulances for American forces, the Fighting French and the British. Simultaneously Agnew asked men in the field' who have been work- ing on the campaign for funds to halt the drive and remit all collec- tions to M. F. Gowthorpe, treasurer of the industry division. Where less than $2,200 has been raised by any committee, the money is to go into the general fund of the American Field Service, which takes care of ambulance drivers. The campaign was laimcAed to get 250 ambu- lances, each costing $2,200. WB DEMANDS 40;S FOR NEFDAVIS FILM Warner Bros, is demanding deals at 40% for "Now, Voyager,' starring Bette Davis, top picture in its first block of five/films for 1942-43 re- lease. The other four are 'Across the Pacific,' 'Desperate Journey,' 'Secret Enemies' and The Busses Roar.' WB has tentatively set 'Voya|er' for the Strand, N. Y., for Oct 29 for four weeks. Theatre has signed Phil Spitalny to open with it with its contract calling for four weeks and options for two additional stanzas. Ere the Smoke»£Ieared Hollywood, Sept 1. BAttle of the Solomon Islands will be made into a two-reel Technicolor picture by Warners, with B. Reeves Eason directing. Film will be shot at Fort Belvolr on the West Coast under the title, 'The Fighting Engineers.' Renewed interest in 20th-Fox common shares, not only in finan- cial summaries on future prospects, but also by healthy purchases by in- vestment and banlung houses, has been noted in Wall Street in recent weeks. Besides fresh purchases, and those made prior' to Jime 30 this year, reputedly made by Floyd Odium's Atlas Corp., another group, represented ^ ' one of the largest banking houses in the Street, is known to have been buying the com- mon shares over several days. All of the latter purchases were at above $10 a share, stock now selling at around $12. Atlas had 15,000 shares of 20th- Fox common on last June 30 in con- trast to no shares at the close of last year. Corporation still retained its 3,500 preferred shares of 20th. Over the same period, Atlas hold- ings in Paramount common declined from 40,000 shares to 35,000 as of last June 30. e 20th-Fox common share posl tion has come in for extensive praise by conservative financial statistical firms in recent weeks. One pointed to the expanding consumer income as likely to iMlster the corporation's revenue for the war's duration and to the substantial tax credit carry- over into 1042. The management was credited with cutting expenses and improving product, with tihe result that the earnings outlook compared favorably with 1941 when $2.04 was earned by the company, by the same service. The fact that few of about 916,000 preferred shares are in the hands of the public (Chase National owns a large portion) is reported partly responsible for this new interest in the 20th-Fox common. Although there are still about 1,741,000 shares of common outstanding, the re- establishment of the cori>oration on a consistent earnings basis is bring- ing a gradual retirement of addK tional preferred shares. Understood that at current earn ings rate the company sinking fund requirements result in the corpora' tion buying in around 10,(MX) shares of preferred annually. This gradual retirement plus the fact that 20th' Fox pays only $1.50 per year on the preferred naturally improves the common diwy prospects, providing, of course, the present earnings net Is maintained. One of the favorable factors cited for the company also Is that the Na- tional Theatres dividend dlstrlbU' tion will be highefthls year than in 1941 when the 20th-Fox 42% in- terest in National amounted to 40c on the common. With theatre busi- ness on a decided upbeat, WaU Street figures 20th-Fox is sure to benefit not only via distribution but through its stake in National. Twentieth-Fox common shares, which went below $6 after the out- break of war in 1940, have been rising steadily,' going above $0 in 1941 and to better than $12 this year, The first six ^months* .net profit is figured as ~ equivalent to 86c per share on the common, new high for several years. Major Warner, Odlnni, Griffis, Robin, Loew's Add to Their Holdmgs Washington, Sept 1. Vice President Alt>ert Warner of Warner Bros. Pictures picked up 1,200 shares of (he company's com- mon during July and raised his hold- ings to 103,848 shares, it was dis- closed by the Securities It Exchange Commission's report on insiders' transactions during the June 11 to July 10 pwiod.. His 14,848 share holdings of the cumulative preferred remained unchanged. Among the other transactions in stocks of motion picture companies was the acquistion of 10,100 shares of Radio-Keith-Orpheum common by the American Co., of Jersey City, N. J., whose holdings were upped to 300,230 by the transaction. Ameri- can Co. (Floyd Odium), a beneficial owner, took over 4,600 shares on June 30 and 3,800 shares on June The remainder was acquired in five transactions ranging from 200 to 500 shares. Couple of Stanton Griffis trusts added" common of Paramount Pic- tures, Inc. W. Griffis Trust boosted its holdings 600 shares to a total of 6,000, and the N. Griffis Trust took on 600 to a total of 4,000. Stanton Griffis reported month-end holdings at 4,800 shares, F. K. Griffis Trust at 3,000 and T. G. Latouche Trust at 5,400. J. Robert Rubin, v.p. and director of Loew's, Inc., dropped 850 shares of common of his company, reducing his holdings to . 7,465 shares, and the corporation disposed of 850 shares, cutting its holdings to 27,250 shares. Loew's, Inc., also acquired 48 shares of Loew's Boston Theatres, increas- ing its stake to 119,321 $hares. While the fate of the United Mo- tion Picture Industry, as an organi- zation of distributors and exhibitors, is uncertain at this time, sentiment within the trade strongly favors re- tention of UMPI as a medium through which matters, other than those re- lating to sales policies, may be handled. Additionally, leaders point to the underlying purpose in mind in forming (TMPI—that of establish- ing unity in the industry—and that this unity is no less Important now than it was before Asst U. S. At- torney Thurman Ajrnold rejected the UMPI plan. Though William F. Rodgers, chair, man of the conunittee of the whole of UMPI, has not set a date for a meeting of UMPI, he sUted this week that he Is sounding leaders mean- time. Understood others who have been active in UMPI from the start are also polling members of the or- ganization, including all of those who are on the exhibitor subcommittee, to get a more positive line than ex- ists now on whether UMPI shall be continued or not Pointed out, among other things, that the immediate problem—or rather hope—is to obtain the support of all dlstribs and exhibitor organi- zations who championed UMPI rather than the problem of cost Involved in retaining It as >an organlzatiori. The cost has been relatively light, and, when allocated to the various units in UMPI, amounts to almost nothing. Only employee of UMPI Is Leon Bamberger, its executive secretary, who maintains a small office in tha Astor hotel and remains on the Job pending a final decision as to tha future, if any, of UMPL He waa loaned to UMPI by RKO, where h* occupied the sales promotion man- ager's post. Harry Brandt, president of the In- dependent Tlieatre Owners Assn. of N. Y. and New York member of th« UMPI subcommittee, believes UMPI should be continued. While Paramount end Warner Bros, did not subscribe to the con- ciliation measures of the UMPI for- mula, it Is believed in the trade that, on the ground they want to be as fair as possible to their customers, they would come along ultimately with Metro, 20th-Fox and RKO on it Another function of UMPI relates to tax committees which have been set up In each of the 48 states to work on tax problems confronting the industry. There are a total of 54 such conmiittees, there being thre* in New York and two each In Cali- fornia, Missouri, Ohio and Pennsyl- vania, one in all the other states. Each committee Includes local rep- resentation by distributors, affiliated and unaffiliated exhibitors. In many cases very prominent men in these fields are~serving on the boards. While set up primarily to handle tax matters, it Is possible the scope of the conunittee might be expanded to include other problems of an in- dustry nature. Selzmck Wants WeDes For Role m 'Jane Eyre' David O. Selznick has asked Orson Welles to play the part of Rochester in 'Jane Eyre,' which is being lined up for production. Deal would de- pend on Welles' commitmenta for radio or picture work in connection with the promotion of the Govem- ment's Latin-American solidarity campaign. Selznick Is understood negotiating also for an unpublished novel, by a name author, which Alfred Hitch- cock would direct Zorina m Hostages' Hollywood, Sept 1. 'Hostages,' Stefan Heym's novel of mass murder by the Gestapo in Czechoslovakia, is being rushed Into production by Sol C. Siegel at Para- mount Slated for top spots are Zorina, Bruce Cabot and William Bendix. CEILING ON SET COSTS MONEY-SAVER TO RKO Hollywood, Sept 1. Uncle Sam is saving money for the film producers by his cost celling on studio sets, even though they were resentful when the lid was clamped. Survey of expenses at RKO discloses that the company has profited by sending troupes far afield to make scenes that would have been shot in the studio under the pre-war system. In recent months the studio has sent out 16 location companies to film sequences originally intended for the sound stages. They ranged all over Califomla and Into Arizona, Nevada, New Mexico, Texas, Illinois. Connecticut and New York and i.wound up. In a majority of oases, with lower budgets than those de- signed for shooting at home. Red Light for Raft Hollywood, Sept. 1. George Raft draws Brenda Mar- shall as femme lead in 'Background to Danger,' slated for an early start at Warners under direction of Raoul Walsh. Sydney Greenstreet and Peter Lorre' top the supporting cast