Variety (Sep 1942)

Wednesday, September 80, 1948 PICTUIU58 8 Sears Salutes Tar s Foresight' In closing of the United Artists' deal acquiring much-needed prod- uct from a rival distributor, Paramount, Grad Sears, v.p. in charge of sales for UA, salutes Barney Balaban, Neil F. Agnew and Y. Frank Freeman, Par execs, for their foresight in coming to the rescue of a brother company in distress and.for their vision in 'keeping us in business.' Par took no advantage of the odd situation since the $4,- 500,000 deal, to cover 22 negatives, involves no profit markup. Among other things it was Par foresight in lending a helping hand to UA since its theatres play the UA product in most parts of the country. Hence the Par pictures sent on release by UA will be avail- able at the same time as other Par-made Alms. Par s Selznick Deal Still Pends Resumes When Freeman Returns East—Stromberg Vice Selznick in UA Setup ■ Paramount has no Interest in buy- ing the holdings of David O. Selznick as a member-owner of United Art- iste, nor does the company want all of the story properties and talent contracts which he controls, varying In length from two to five years. Ne- ?otlations between Par and Selznick or stories and talent tickets con- tinue, with Y. Frank Freeman ex- pected to return east in a week or so, at which time a deal may be finalized. Meantime, Freeman went back to the Coast Friday (25), fol- lowing discussion of the Par-Selznick matter before the Par board of di- rectors the day before. While $1,850,000 is said to be in- volved in the deal as it now stands, in view of the details yet to be worked out and questions concern- ing talent or story properties which Par does not want, a high Par execu- tive stated that any figure mentioned at this time would be speculative. Believed that the only likelihood of the transaction falling through would stem from demand for too high a price, if more than the re- ported $1,850,000, plus Inability to agree on the extent of the purchases to be made. Three Scripts Although Selznick has other stories. Par is interested in only three prop- erties—'Jane Eyre' (in the public do- . main, but for Selznick's screen prep- aration), 'Keys to Kingdom' and . 'Claudia.' There is always the pos- (Continued on page 16) Wm. Fox Looks to Be Out of the Bkptcy. Courts by This Xmas Atlantic City, Sept. 29. Final settlement on the bank- ruptcy affairs of William Fox, one- time multimillionaire film magnate, will be effected here before this coming Christmas. The settlement checks to remaining creditors will run somewhere between 2-3% of their original amounts. Only one . more disputed claim tolaling $35,000, remains to be okayed, compromised or expunged before Trustee Hiram Steelman can set the machinery in motion for the ultimate payoff. That is the claim of Harold L. Arnold. Inc., Los An- geles architects, allegedly due on unfinished California theatre con- tracts. A hearing has been set for Thursday (Oct. 1). Fox, himself, is today free to legally assume other debts. He was discharged from bankruptcy on Aug. 27 by Federal Referee Allen B. En- dicott here after six years of litiga- tions. His voluntary petition in bankruptcy, filed in 1936, listed lia- bilities of $9,935,'',01 and assets of $100. Subsequent claims against Fox piled in until, at one time, the peak claimed indebtedness approximated >55,000,000. Against this was stacked other claims that assets in the multi- million-dollar All-Continent Corp. rightfully belonged to Fox and should be used to pay oft his credi- tors. A recapture of assets suit was In- stituted against All-Continent, but O'as finally settled out of court on a Mmpromise whereby the corporation (Continued on page SS) Some Figures In the negotiations in which David O. Selznick now figures, a total of close to $4,000,000 is involved. This includes $1,850,000 or more under the deal to turn over story properties and talent con- tracts to Par; the approximate $1,000,000 representing his stock ■ interest in United Artists as an owner-member; and $1,000,000, earmarked for Selznick for early production, which reverts to UA under Selznick's decision to sell out. The $1,000,000 reserve set up for Selznick comes in handy for UA in swinging its deal with Par for 22 pictures, calling for a down payment of $1,900,000. PAR'S SLANT ON SELZNICK'S HOLDINGS Some question as to whether Par amount will continue with produc- tion plans for 'Jane Eyre,* in event that a deal is closed with David O. Selznick for a takeover of his vari- ous talent contracts and story prop- erties. Novel, though potent, is considered somewhat dated and un- likely to hold interest in hectic times such as the present. 'Claudia,' on the other hand, play which cost Selznick in the neighborhood of $200,000. has Paramount talent and production departments keenly in- terested, while 'Keys to the King- dom.' another Selznick property, also pre.sents problems inasmuch it is. a religious theme which calls for skillful handling. In connection with 'Kingdom.' it is believed that Selznick would have considerable difficulty in casting if he intended to produce oTi his own (Continued on page 18) SELZNICK OR SCHAEFER7 As Cooidinator of Film Production With Headquarters in D. C. In addition to David O. Selznick. producer who has been in and out of Washington recently. George J. Schaeter. former president of RKO. is reported a strong candidate as coordinator of picture production and other industry matters with the War Production Board. The indus- try, not sati.'fied with the way things are going, is interested in having a prominent lllm exec in Washington to represent it. Schaefer. recently hospitalized, is presently lending his efforts to the War Activities Committee in N. Y. in which he has been active from the start. Eddie Mannix. previously men- tioned a.": a possibility for the WPB film coordinator spot, is said to have been ofTered the post to head the salvage campaign but turned it down. The Metro studio executive has already returned to the Coa.^t E FOR THE PIX BIZ Besides Loss of Stars, Holly- wood Foresees Further Drain on Its Executive Manpower for D. C. War- time Duties UA, Revamping Its Sales Policy, Is Out to Get Every Producer Of Merit It Can; May Even Raid GOVT INTO PIX BIZ? Somewhat perturbed by growing demands froip various Government departments for the services of key men from within the film industry, picture company toppers have be: i commuting more frequently in re- cent weeks between Hollywood and Washington in an effort to ascertain extent the industry will be called On to provide the Government with film executive manpower. Apart from the draft of yount • men, a drain which the industry is already feeling, there is reportedly a marked tendency on the part of some officials to obtain services of key picture men for increased Gov- ernment Aim production activities. Impression within executive film circles.js that in addition to any waivime Government regulation f the picture industry there is also a desire by some official departments to enter into productioa and expand on a scale providing for regular theatre schedules. This has given rise to speculation whether there will be Government competition either during or after the war, via the use of specialized manpower teken from private film productior. Viewing the problem realistically, seme factions within the trade con- tend that in the final analysis only performance cou:its in show busi- ness, and that regardless of Gov- ernment film production activities pr.'vate initiative would not be sub- merged. Others are concerned t t in the event of extensive inroads < i irreplaceable manpower, the basic (Continued on page 55) PAR-UA DEAL CONSUMMATED Making a down payment of $1,900,000 on a deal that will run to approximately $4,500,000 over a two- year period. United Artists acquires from Paramount three regular pro- gram features and 19 pictures pro- duced or to be produced by Harry Sherman. In addition to 13 westerns in the Hopalong Cassidy series starring William Boyd, the Sherman films include three of a western or outdoor type for release this season and three similar 'specials' which Sherman will make on the UA lot for 1943-44 release. The three Sherman specials (not Hopys) included under the deal for this year's UA release and already (Continued on page IG) Joe Schenck at Stodio Hollywood. Sept. 29. Joe Schenck trained in from the east On Monday and resumed his ex- ecutive duties at 20th-Fox studio. On the same train west with him were Ned Marin. Metro producer- director, and Eddie Mannix. Spyros Skouras. 20th prexy. was also due here, but was held in New York by biz. Warner, Einfeld in N. Y. Harry M. Warner arrived in New- York yesterday (Tuesday), following stopoff in Washington. On Monday night (28) Charlie Einfeld trained in to discuss cam- paigns on new season's product and other matters. Dietrich's Valedictory Hollywood,' Sept. 29. Ralph Dietrich, 20th-Fox producer, starts his last production for the duration tomorrow (Wed.) with 'Margin For Error,' war picture based on the stage play by Clare Boothe. Following completition of 'Margin', Dietrich reports for Army work with Lieut.-Col. Frank Capra's unit in the Signal Corps. Meanwhile he has wound up preliminary work on two future 20th-Fox pictures, 'Ground Pilot' and 'Condors of the Sky.' EXPEa BRITISH FILM COIN Oa.25 Decision on the American dis- tributor coin frozen in Great Britain is expected any week now, Accord- ing to inside reports in the trade. There have been several sessions of top industry officials on the frozen money situation in the last two weeks, but all executives, as well as Will Hays, are keeping strictly mum until the arrangement has been final- ized. Such an attitude of secrecy is in line with the desires of R. 6. Som- mervell, secretary of the British Board of Trade, currently in the U. S. on the American distributor monetary problem. Although not wishing to predict just what the final results will be, there were further hints in the trade that most of the $52,000,000 or thereabouts, presently impounded in Britain, wculd be released as of Oct. 29. And every effort is being exerted by the industry to prevent the establish- ment of any new frozen money ar- rangement starting next year. Sommervell is expected to. make hi« reconunendations back to the B. of T. in London, with thb body likely to see that these recommenda- tions are carried out by the British Tieasury. Actual pact consumma- tion consequently will be announced probably by the Treasury in Lon- don and the decision then trans- mitted to Washington and N. Y. KORDA MAY ASSUME BRIT. WAR SERVICE Sir Alexander Korda, currently in England, is reported considering a wartime post in the British Govern- ment service and may not return to active film production in America. Korda has no picture commitments in the U. S. though he has long term plans for producing a film version of Tolstoy's "War and Peace.' He has not submitted any concrete produc- tion-releasing plans to United Artists as yet. Merle Oberon, who has been in England for the past month enter- taining U. S. and British troops, is due back in the U. S. shortly. Fellows, RKO Producer Hollywood, Sept. 29. RKO signed Robert Fellows to a producer contract, starting Oct. 8 with 'Bombardier,' which Richard Wallace will direct. Currently Fellows is producing 'Pittsburgh" at Universal on a pack- age deal. By MORI ARUSHEN Chicago, Sepi. ZA. 'United Artists is going out to sign every important producer it can lay its hands on,' said Edward C. Raftery, UA prexy at the opening of the UA' sales convention in Chicago, 'and we'll raid the major lots it necessary.' The statement is regarded as in line with the aggressive outlook cur- rently displayed by the company which figures that its plans for quan- tity as well as quality productions this coming year are a cinch to be realized. This optimism hinges on three factors; the present economic situation, the more effective working conditions ofTered by independent production, and the yen for creative independence on the part of pro- ducers, stars and directors. In the recent past, when the UA owners failed to come through with pictures, the company which had never financed its producers had to borrow $1,200,000 from the Guaranty Trust Company, via George Burrows, to make 'To Be or Not To Be." Arthur Kelly, UA v.p. of foreign distribution, paid tribute to Burrows, who was alio on the platform, for his aid in arranging the financing as well as promptly offering the $3,500,000 required to finance the UA deal with Paramount, Kelly pointed out that the company had made a great deal of money with its foreign department, in the past, while the domestic end of the firm has never been in the black. This was the result of giving producers a low distribution cost in the' U.- S. while depending on England and other foreign markets for profits. Now, the profits piled up by the (Continued oh page 18) Shortage of Manpower hfuenced the Retom Of Macgowan to 20th Dearth of studio production execs due to the draft was pointed up last week when Nelson Rockefeller's Ot« fice of the Coordinator of Inter* American Affairs approved an ap- plication from 20th-Fox for the re- turn of Kenneth Macgowan, who 1 i been on leave of absence from the studio since 1940. Macgowan, whose earnings with 20th were $07,000 a year, has been serving as director of th,' film production program for the CIAA. MaCfiowan was given a release on condition that he is to continue as- si.'ting the government in connection v.'ith Coast production. Upon his return to 20th studios next month he Is .slated to start production of Liitin-Amcrican and civilian morale films. At the Coordinator's office Mac- gowan headed production of more than 60 films with Spanish and Portuguese sound-tracks, 50 more' new in various stages of production and an equal number dealing with Li.tin-America made for distribu- tion in the U. S. NIONO'S NET FOR YEAR SOARS TO $157,103 Hollywood, Sept. 20. Monogram Pictures Corp. reported a net profit of $157,103 for the year ending June 27. 1942, a heavy ad- vance over the preceding year's net, which was only $10,897. Gross profits, before payment of taxes, were $202,103. W. Ray Johnston, president of the company, announced at a stockhold- ers meeting that the net for year Is approximately 37%c. per share on 415,962 outstanding shares.