Variety (Jun 1943)

fiADdHFox; Post-War lleatre Plaiis Spyros Skouras. 20th-FoK piexy.f- it considering ptacing Rick Ricket- son. opeialor of the Fok Inter- Mouutain division of National Theatres, in charge of the 80th for- eign department. Murray Silver- si uiie. recently appointed v.p. in chai-ge of foreign distribution, would woi-k with Ricketson If the plan is consummated. It's a move for cur- rent and post-war exhibition and production, as well as distribution, 1m British and other foreign mar- kets. Understood that Skouras has in past wanted a theatre operator In the foreign department in order to asjsure' a closer understanding at exhibitor problems in the foreign fleld. Dan Michalove, eastern rep for National Theatres, headquartering In New York, was at one time men- tioned in trade circles for the for- eixn post at 20(h. Reported that Ricketson's au- tlioi'iiy in the foreign department, if. he accepts the post, would cover all phases of 20tt. activity abroad, Inrluding theatre operation. Ricketson. Charles Skouras, NT prexy; Charles Buckley, NT coun- sel, and other circuit execs are cur- rently In New York ironing out details of the purchase of Chase National Bank's SB"'; Interest in the diain by 20th-Fox. — Blumbergr in N.Y. June 20, Annual Meet in Del. 25th Nate Blumberg, Universal prexy, is scheduled to arrive in New York around June 20. Universal shareholders meeting is slated for June 25 at Wilmington, Del., when stuck merging proposals will be presented if approval by N. Y. Supreme Court Justice Wil- liam Collins should be forthcoming in the luierim. Minority Stock Groap Protests U's Merger Plan; Rdiiig Doe Soon Hearings on objection* to proposed merger plans of Universal Pictures Co.. Inc. Into Universal Corp., were ' concluded last week in N. Y. supreme court. Justice William T. Collins, reiierved decision and ordered briefs, reports and exhibits to ba submitted. Court will now proceed to rule on 'fairness of the plans' which were aubmitted to him. May 3. Approval of the plan by the court would terminate a minority stock- holders action against Universal Pic tures Co. Approval by at least two- thirds of outstanding common of both companies,, after Securities & Kxchange Commission has passed on tlia plan, is necessary to place it in operation. Objections to proposed plan were ■ xoice*- by—Jostpti N«nierov, repre- senting some 5,000 holders of com- mon and L. W. Vyner. Their main objection was over the ratio of ex- change of three common shares in the new 'Universal Pictures Co.. Inc.' . to be the name of merged company for each one held of the picture oompany common. Minority stock- holders also pointed out that 497,000 warrants are presently outstanding and, if the merger was approved, up to 2,000.000 more warrants might be Issued. This, it was claimed, would result in 'dilution.' Joseph M. Proskauer and J. A. Van Bergh, of counsel for Universal, supplied more proof, by submitting accountants reports, showing the plan's fairness. Mr. Proskauer again pointed out that It would Increase efficiency of operations and reduce expenses through simplification of corporate organization. Among other provisions of the plan are the can- cellation of $2,000,000 in notes pay- able to the picture company held by Universal Corp.: redemption of pres- ently outstanding 8% first preferred at a cost of $1,144,000 and execution of a new bank loan agreement. Canaian B. 0. Up Wo in 1942 Montreal, June 1. Figiireii just released by the Do- minion Bureau of Statistics for 1942 show higher attendances and greater net recelplji in the annual 8ur\'ey of motion picture theatres In Canada as compared with the year previous. Admissions numl>ered 179,611,306 for 1042 versus 162.646,690 for 1941, an increa.-ie of 10":. B.o. receipts ex elusive of all taxes totalled $46,.93D,- 27S for 1942 against $41,569,259 in 1941. an increase of Taxes collected on pic theatre ad- missions for federal and provincial governments amounted to $10,256,- 502 which when added to the net receipts, gave a gross of $57,186,760 for picture houses in 1942. UA Proposes to Make A Second Offer For Korea's 2S7o Interest United Artisis is preparing a sec- ond offer for Sir Alexander Korda's slock in United Artists. Understood that UA made an offer for Korda's 25% interest in the company re cently which the owner-member turned down. No pari of the UA stock in the Odeon theatre circuit in F.ngland, it is reported, will be olTered as a consideration in the'deal, UA own,-! approximately 50'; of Odeon, las' year netting profit of around $2.000.0CO from this source. Korda, from accounts, plans to op MInneapelli, June 1. FigBratlvely thumbing their Boies at Indastry unity, president Donald Guttman of reeenliy erf aniied Nerth. Central Allied, Cfmprlslnf nearly all MInneapelU and SI. Paul Independ- ent eshlbltori, and a delegation of members are prepar'.ng te g« ta Waahlngton to requeal federal Inter- venilen which wauld 'rescue' Ihem fram 'annlhlUtlen' at distributors' hand*. At a meeting behind clo.sed doors, the body directed Cullman to head the 'mission to Washington at an early date.' The nature of the 'intervention' to be sought is not being disclosed, bitt with the Independents squawking loudly over present terms, including price and percentage demands, it's surmised that a Veiling on rentals may be requested. Because of film prices and percentage along with other 'injurious' trade practices, in- dependent exhibitors now are finding the 'burden of theatre operations critical,' it's claimed. In a statement. Guttman declared the Twin City group's efforts to settle their difference.^ inside the industry have been rebuffed, distributors scorning their pleas for 'aid.' Guttman also finds fault because, he says, the distributors now are soliciting business 'sparingly' and 'with an -arroKance unmatched in any other industry.' Deals are offered with 'a take-il-or-leave-it attitude,'' he charges. Rebuffs received by the Twin City group are cited. He says one of the leading distributors.' on which a com- mittee called to recite grievances, even hasn't seen fit to grant the courtesy of a reply to the requests for 'relief.' while another company Is continuing its 'abuses' following an exhibitor conference with its di- vision manager. President E. L. Peaslee of North- west Allied has announced that the Washington intervention mission has his approval and that he will ac- company it. His organization com- prises independent exhibitors outside of Minneapolis and St. Paul. Tfate cfircfrv'l'n "Ef^Jfli'li'dTI'JTfl^^lfr..* ''Bflc.iinoiinced. Pichel't Par Pic Hollywood, June 1. Irving Pichel picked up one-pic- ture directorial assignment at Para- mount, with the .Um, still untitled to be made late this summer. Meanwhile Pichel is committed to direct two pictures a year for 20th Fox. on and would dispose of his Ameri- can interests if he can get his price for the .nock. Deal for David Loew to join UA as an owner-member, mulled in re- cent week.t has temporarily been shelved. HOUGH FORMALLY GETS BILL KOENIG'S POST Hollywood. June 1. R. L. Houith has become general production manager at 2Dth-Fox. succeeding the late William Koenig. who died last Saturday (29). Hough was Koenigs aide, and had been carrying out general produc- tion managerial dutie.i during the past four months while Koenig was ill. The studio had planned to let him continue in the post and handle several Rims thai had been assigned to Koenig. Max Golden was named Hough'.s a-ssL-itanl. MORROS, SPIEGEL END PROD. PARTNERSHIP Hollywood. June 1. Sam Spiegel, sometime S. P. Eagle, dils.^olvps h'i co-producing contract with Boris Morros June 9 and checks out o:i his own. connections Meanwhile, Morros goes on with their previous dual commitments on "The Russian People' and 'The Grand Street Boys.' Arthur A. Lee's Will Will of Arthur A. Lee (Artlee Corp), who died in the clipper crash at Lisbon last February along with other show biz member.^, was pro bated in Westchester County, N. Y, last week. Widow. Mary Elizabeth Lee. was named chief benellciary and also appointed administratrix, Artlee Corp. was not affected, but all of Lee's capital stock passed to his widow. Odum Stepping ill as RKO Board Chairman; Patterson May Get New Post; Atlas Controls Directorate Mayer, Schenck's Quickie N.Y. Visit; Back to Coast Louis B. Mayer. Howard Sirick- ling and Joseph M. Schenck arrived in New York from Chicago last Thursday (27). All left for the Coast early this week. Howard Dietz. v.p. of Metro .ad- vertising and publicity, also en roiilc to the Coast this week. Zanuck s Return To 20th'C»tain' Washington. June 1. Col. Darryl Zanuck'^t shift to the Army Inactive rolls is now a 'cer- tainty,' a War Departmeni spokes- man said here ' Monday (31). 'It may be a matter of days.' he added, 'but certainly It will be within the next few weeks.' The sentiment here is that suffi- cient time has now elap.sed since the 'Hollywood Colonel' Issue was raised on Capitol Hill against Zanuck. for the former Hollywood producer to be dropped from the active list without stirring up additional trouble in Congress. D. C. Paradax Discussions looking to Zanuck's return were under way among 20lh execs la^ spring, when move was regarded as imminent until the Tru- man Committee In Washington un- expectedly shifted Its strategy by not (Continued on page 42) RKO's Koemer Has His, Own Ideas on War Pix Or Any Other 'Cycles' Charles Koerner, v.p. In charge of RKO studio production, stated In New York last week that though the company plan.<i 40 pictures for next season, not all of the product made will necessarily be released. Some negative will likely be held back to stt-engthen the backlog. Koerner said that he would con- 4i»»*(«' vT.oking • ■»wA-^it'.*.res as- l<.h<f as good story material could ba found. He pointed out. however, that if quality were disregarded in favor of quantity production, then any theme—gangster, musical, come- dy—could become a drug on the market. Estimate of 40 pictures for 1943-44 .season does not include independent deals. No decision has been made, according to Koerner, on continua- tion of the Lum & Abner and Tar- zan' pictures made last .season but if these are not produred four other films will be scheduled instead. Koerner left for the Coast last Friday (28) after huddles with Ned Depiiiet and N. Peter Ralhvon. * Flo.vd Odium is slated to step tn as chairman of the board uf direc- tors of RKO. Inc. following the an- nual shareholders meeting at EKtver. Del., today (Wednesdayi replacing Richard C. Patterson, Jr. Latter i« being mentioned tor a newly cre- ated position as vice-chairman. Odium, president of Atlas Corp., has recently shown renewed interest in plans he has had for the past .Year of assuming RKO chairman- ship personally in order to operats the company from a closer vantage point. He has in recent months at- tended RKO directorate meetings and has been active in determining the operating policy in collal>oratlou with N. Peter Rathvon. RKO prexy. Odium's appointment to the board chairmanship has been on-again- off-again before and since George J. Schaefer left the company and, con- sidering his majority holdings in the company, could have tieen con- 'summated formally lung since. Ill- ness, however, necessitated his side- stepping the job at one time. Later, becoming .ictive on Government duly in connection with war con- tracts for small business men. Od- ium again postponed going into RKO personally at a time when such a move was imminent. Odium Will Dominate Odium (Alias Corp.) now controls and. after the meeting today, will fully dominate the directorate. L. Boyd Hatch.. executive v.p. of Atlas and George Shaw, also from Atlas, arc scheduled to be electetl RKO directors in addition to Odium. Patterson, also an Odium represen- tative, is scheduled as a director. Other directors scheduled are Rath- von an Atlas Corp. rep: - Ned Depinct. prez of RKO Picts.; J. Miller Walker, sec. of RKO. Inc, and L. Lawrence Green, attorney representing minority interests. Only outside director now slated for election Is Frederick L. Ehrman, representing Lehman Bros., an ab- sentee owing to his service in thai U. S. Navy. Indications are that the number of directors witi thus l>e redu'.cd from II to 9. Slate of directors is rot deflnilcly set, however, and there may be some changes in this lineup. Alias Corp. t>ecame the sole con- trolling interest in RKO following liquidation of the largo holdings of RCA and Rockefellur. Inc. Dillon, Read &' Co. on April 16 reolTered the PKO shares. BCA..hrid nio.aaa,*'"")- nion. 55.1.243 option warr.tnts and 44.7.57 preferred. Rockefeller held UG.OOO common. Atlas bought around 4.000 RKO preferred from Dillon, Read al>out this time. Las! reports showed Atlas holdings at 1.324.B.'>3 common, 327,811 option warrants and 54.600 preferred. These holdings have since been increa.<ied, however. Atlas now holds aver 50% of the common outstanding and over SO": of lliv preferred outstanding. This Sound* Ominous Hollywood. June 1. Raoul Walsh draws the director chore on the filming of 'Nobody Lives Forever." new W. R. Burnctl novel reeenliy purchased by War- ners. Yarn 1.? .'lalcd a.< a serial In Col- lier's beginning in October, to be published laier In book form by Knopf. Studio's $3,000,000 Profit for 20 Wks. Tops RKO Theatres for Fnrst Time RKO sUiHio for the first time Children.' while not holding up as topped Ihe RKO theatre affiliate of i strongly in the subsequenls as fir.sl RKO. Inc.. in.earnings in many years indicated, is headed for a doine.>lic with profits of approximately $3,000.- i!io>s of $2,500,000. according to ton- 000 for the firsi 20 week-s of 194.1. as .scrvative estimates, with around compared with around $2,700,000 for; $3,250,000 to $3,500,000 worldwide RKO Theatres. | possible. Figuring heavily in fa\or of Ihe i Showing being made by the pic- studio so tar this sea.s.^i are, of lure company subsid is nonetheless course, 'Hiller's Children" billings, j unusual in view of fact that Ihe pro- Rentals from the Edward Golden i durtion-distribulion departmeni has production aw likely to coniinuc in- been in the red for years and be- fluencing tolol studio earninas forigan showing a profit only since last the balance of the current season. I October. 32 WR SCRIBES GRIND OUT 29 FHil TALES Hollywood, June I- All-lime high for scribbling ac- tivity on the Warners lot Is regn- lered this week with 32 writer* at work on 29 scripts. Toiling in the literary mill are Alvah Bessie. A. I. Beziierides. W. R. Burnett, Vera Caspary. Thomas Job, William Faulkner. Frederick Faust, F.llil Paul, Frank Grulxjr. Sam Hellman, James Kern. James Hilton, Charles HofTinan. KeitiK Winter. Arthur Horm;iii. Howard Koch. S. K. Lauren. Albert Maltz. Jack Moffill. .lo Pacjano, Lionel Wiuijam, Robert Rosscii. Elii-i Si. Joseph, Francis Swaim. Dwiijht Taylor, Richard Weil. Steve Fisher. Cath- erine Turrici. La.^'<lo Vadnay. Jamci Bloodworth. Roger Denny and Car! Diidlov.