Variety (March 1944)

Wcilncstlay, March 8, 1944 PICTURES ALL 'A' PK OVER $1,000,000 Industry Heads Discuss New Pact For lA; Group Ins., Vacations. Etc. By ROY CHARTIEB Film company executives, togclliei with studio labor representalues Who aie in N. Y. to negotiate new Viuon contiacls, met among them- «el\es yestciday (Tuesdays to pu- yately -go -oyer; preliftiinaryiproppsalf ' ■ i-eiiiling" to'.vacations 'ahd/'sickjeave ■;with; pay: EiS-welj- as groUp:inslu'ahcej discussed uith them on Mondjj (C) by execs of the International Alli- ance oj Theatrical Employees Coun- tei-pioposals are likely to be made today (Wednesday), when piodticora reconvene Aviih lA bunch. ■ \- ,; '; Ail of Monday ((i) was consmtied ,' v.;hiqli sCclcs a, minimuifi ; Qhe. weelc, niaximum two weeks. loi all o£ 11 totals afliliated with the lA, plus fiickloave based upon years ol seiv- ice In this connection unions are starting out by seeking minimum of 12 ddjs a yeal Question of some foun of gioup insuiance to co\ei studio union employees ot lA iiniont, ■ fllvSQ:; roughly ' discussedi' ,!t>;isp:ussi;p^^^^ as to wage scale is expected to await iioning out ol woikmg condition ■;■ Pj-oducor group at first- ^sessian Monday Ui' i:-.oluded Xick Schonck.: ■■■{iresident o£ Metro: joe Vogel,' v.p,||: ■WiBiani'. Walsh, and;- Fvefl'.'Gabpriv.1' ilabor -reps;.-jBafney. BalEiban, Par' . president, and .GharieS '.Boreii'/ sludip',! . tnaiuiger: Joe Bornhard.' general mauagci o£ Witinoi theatie-). Funk Phelps homeoltice labot contia<-t Vaitd' iCcUToU. Sax studio'•^tiah.liger; , :\V;;'.C'. .-ivtjcho,!, 20ti^Vv.p.;--s;r^c!:;:;SV Meyer and Vic Christiansen..- repre.-'. tContinued pn page 18 i CycU Independent exhibiloi tied up $350,000 in an independent pro- ,^ductien..prior to .arranging, ior .a' release;. of . this . $210,000 : is his own coin and the balance via loans Following screening a major chstrib turned thumbs down on ,1 release, leaving the exTiibitor with $350 000 still tied up and jio immediate chance oC liqui- :.;dat;ing,'' '' • ■ Discussing, the indie's situa-: _t 1 on someo ne ciacked, "Well, he made his money tiom Hplly- wpod and he's giving it right back tp Hpllywood " IIA Yens Showcase Spots Outside U. S. .■ United Artists is shipping plan.s fpr •cqiiiring picture houses in several idiflterent:: countries in -various parts ol the wot Id lot shewcaSe purposes Disttib oigani7ation, which has not opeiated theaties, is now flguiing on contiollin!> Its own outlets in s,i\ oi seven . stratcgie foreign centers m ordei to ensu'C Idotei lelease and (note favoiable playing time foi pioduct ui key terutoiies Walter Gould. UA foreign man- 8i,ei understood set to close Dhuitij for the first of the theatie» undei consideiation Overall plan of opeiatioii is limited ' to: Some nine, 'theatres, for the time ■'being,:':: all' Putside of tlie tl.nit.ed ; ■States. :I.n the'domestic field. UA re-. p.ortedly has an operating arrantie-; ■ meiit for Itbe , Victoria' theatre, New. Yoik Move to obtain showcase icpie- •entation in othei countiies is m lnu> with operations ot olhei niaiois who have acquued oi aie negoliatitig Joi theatres in itey situ'atioiis' diitside. the USA RKO Gross Tilts Nearly $13,(1,000 RKO Radio Picluies gl0^- leceiptv dining 1943 aie estimated at clo-,e to .$45,600,000, an inciease o£ aiound $12 900,000 ovei 1942, with the net :bl(jeratiiig-iricijiTie tbefore: taxes) ol aiound $9000000 the higlie=t c\i.i recorded for the diStribUtipii-pyoducr lion pha.^e of- operations since RKO has been in existence Duiing 1942 the RICO film siibsid showed a gross of appro?cimateIy $,i2 700 000, operating costs at $34-: 900 000. and a lo^s of some $2 200 000 .': ■ Wliile gross income to:- -.i-.e pic.v.re cpmpany jumped $12,900,000 during 1943.. operatir.g costs: increa.sed. by , Pnly. '. ;$l,'700,b0d : to. ■ apprpximately $30 000,000 I UndeiStopd that operating income |liom the RKO Theatres opeiations I foi 1943 IS close to $7 500 000 tbetore j ta>?e.s>, as cpmpared'.with around $4,- I 2)0 000 lor the pievious veai. METRO'S BUDGET TOPS 150,0(10,001 Industiy leaders, surveying studio opeiations leport that no Impoitant preducer today, can mak'e. an : «A" picturei:for::;iess : ttian ■$li0O0,,0Q0^: to $1;230.00Q, arid, that eacli such ; tinit .(tilrn). ■actua:lly costs .from. $.1,000,000 to Sl.500,000 excii'.sive of . pri.nl charges accoiding to wpiksheet fig- ures While net considoted ciitical, in view of eunent boxoflice condi- tions, the high cost ol pi eduction stii; presents a ' delicate :s'ituatian' which company heads a:e watclning closely m Older to maintain a neces- sary: bdlanee^iV'relatifffi .'t0.. 'nvkjclcet. :PQtentialities. Higher Admish Tax May Complicate Pix Deals; No Uniform Scale Boost Philly Exhibs Burn As Some Houses Snip War Message Off Newsreel ''v; '/ Pililadelphia, 'Marc'r. 7. . Philly exhibs are on the warpa'i.h a.aain. ■. •:■;'■■ , ''■- ' ;',:•'"-. . This time .it'.s.not the distribs who : yoar 3 RKO TOPPERS DRAW $104,000 YEARLY EACH are making them mad but it's a small minouty m their own ranks— the guys who snip the wai message-, which aie clipped to the tag end oi new SI eels With the . yirtuai., elimination of ihe- film division of OWI. 'v.o.st ot the :. Governmeni's messages an en I scrap, fat salvage, etc.. is placed; at Ihe end of .standaid new si eels Some misguided—It not finpatii- otic—exhibs, to sa\e a couple of mi.nutfes running time, or to have ex- tra n.ir.r.U! or two to clear the' tlier- .aire, baye' snipped o.fE tiie message. Reeent- clicck b v SeVcral patrjetic Metio IS spending well over $50,- 000,000 and estimated as high as; $52,000,000 in authoritative quarteis, on production duriijg the cuirent. calendar year on a schedule co\cung around 3(> pictures. ' Uixierstoud t'r.ai befpre the end of the.- year Metro will bave at least 10 pictures, in re- lease or completed with negative cp-t exceeding $2,000 000 each '-Kismet" (Tcchriicplbr) is running un ce^t of $2 750 000 to $3 000 000' Willie 'Piagon Seed' is another, negative which Will ':' represent around .S3.000.000. 'ITho- White CliifS" oo-i o\ei S2 500 000, 'The Ameiican 'Miracle", (which m.i^y be relieased'as. a .pecKill went over tlic $2 000 000 mark. 0'the:r:Vhigb.^bti.dgeter's ';. c.prn- plofod or i■n^pr^>ductioh 3re.''Bathi^^^^^ Beauty" (ioimeilj 'Mi Co-ed") in Technicolor: ".Meet Me in SI. Louis" (Technicolpr'i, .; "XaticiuiJ Velvet" (Mickey Rooney-Techisicoior \ ';30 Second .Over. Tokyo." ':Ga3lig;ht'' and "The Seven:i-. Cro.ss." :-; .-, ■'-.;; ;:.-:-":,':• Otheis High : 20th-Fox. also has a production budget of sPiTie $'4b,qOO,o6o. originally- figured to cover output of some 32 pietuies Both Wainers and Paia- mount, the former with 19 oi 20 pie- 'tiires ':soheduted . ''ter ■: re^^^^ the 1943-44 selling ■ seasPfl" and the latter .with 'arpund' .SO, show','aft;av- erage per-nogative cost e£ $1,250.060 and $1,000,000. resipectivoly. ' .In. case :bt ■■: Pai-ampunt,. ■ this.- ;i'epreseiit,s" a gieatei cost toi product in the "A'-- biacket-, because the budget o8 aiound $30,000 000 includes sevcial I Pine-Thomas pioduction', whirh aie I budgeted . at' seyeral, hundi-ed' thpu-? I sand dollars;:'■ ; .. ::.'■ ■:»"■, : ':. '■• .'' ■ - Pai has close to $10 000 000 wiapped in thiee negatives alone 'Lady In the Dark,' ' Fpif Roadshow Anni '. Last Friday (3) markcri ■ the 28th annuelsaiy of a new', and ...at: tijiij. tiine, revpiuiipnary 'ppl-' icy- in pictures .which, has since, become tiade-known widely as "the roadshow policy," The anni is that ef "Birjh of a Natipn," which pn March 3, 1915, opened a twice-daily run at $2 20 top at ti'.o Liberty. N. Y., a pol- icy wiiich was worked" out by , the late J..'J, McCnrti-.y. The pic- ture rai; ti-.ero for 44 .weeks and ..llu-.oug|.i....tlie...y.ea.r.s.-.ir.c'.ud;.:ig. .i reissue bookirtgs grossed aiound $12 000,000, It was D W. Giil- fith'.s first big picture. .:. While: there are still some, punts 111 existence, they aie piett\ well shot and paiticulaili ■"stringy.".:':",V ;. '.'•• ].■[,:'' Whom the Bell Tells' man's Creek." and "French- .■nieni.n ;.tlie '.industry shovved thatyftve tiiea'.res of about 15 gandered had resorted tP tliis: jriGkK:..^". '''.:.; :.•; Tlieie have been reports o£ ■sqiiabiilcs. betweenj^^ who in the 'majil haye .been, cb.opet'a- 'ti;y.e-..-with ;the:. program:,; and Sxhlbs',*lio.-want thi;..hie!isages.elim- bne prejectio'njst: Piferod' ip Avcirk :gratis:: any.:bveirtirte:' a^liich. TM Petei Rath\on, RKO Cei p pIex^, Nod E Depinet, RKO P ctuics chiel, and Chailes W Kpo nci veepe.^ iff cliar|^ i Of Vp'r^ studio, e.nch arc being p.Md «>I04 000 :: .yearly..Ayagei!, ■ ac'cprdihg ' to :a proxy ■ sta.tenient :,sentj.'.Stbckh9lders'!.of ithe ^ ^ ^ : corporation iast.:.weeic;- ''{A}',: '^ !' ■:i;'w#<wiim ' ^ «^ ■ .■■<« '^-^mmimtw Ww' I? It n on has been lipped 1'"" RFPflRT fOF AS SETTLED • $90,000;.;DeplneV':,6bita\:S7;3^^^ ^0 ."JE,! GRIFFIS' BOUQUET TO H'WOOD'S WAR FILMS Helbwood, Maich 7. Pioducei.s paiticipating in the film indusliy's wai infoimation scieen program were told bv Stanton Guftis that these sholts have gieatei circu- lation' than any coiiinicrciar film. in the histpry'■'.:. of;"-.,]iiotlon.: pictures. a V i ffi; nW t TVTnijnn 'Pictui'B Bureau cliifef. lauded . HQllywood's; Putptit, stres.siiig. creative .work, .being; .dene by tlie industiy'ancl .ptitp^ut.e^xfteBled fpr .ivevv, prpgram, W'hicb-.^ Ouer'reeler^;artsi'2^'-Jiewsrec!ls,;:,';^ ':'We: IctiOft": wr'e..;mij(sf, :)iay^^ number, of pic'tures''iirginS. jeopte.to .subscribe to .something,,.buy'::s;ome^ .IH.in'g," or 'do i.'sdmetliiilK.''■■ 'Btit 'apa'i't from ..' tlTose' three tliitifis.' there'..'a.r.e Koemei fiom approximatel.\ $75 000 pei yfia^. 10 Roiling at Metro :■ " Metra' b:i1s . its .iiigh peak ' iit pro-. ■ .ductipii ■ for'■1944;';this;' 'weete \vtieiV' .three, fcatiires;.'. "Mrs.'. .Parkitigtoii.:" ■ Mdisie Goes to Reno" and '"the Pic- tuie of Donah Giay" are lined up before the cameras for the hist time Continuing in woik aie seven moie —'"Maiuage Is a Puvate Allan : "Seventb :Crbss(" ' "Nittidnal ^yeiYel:" ..."Meet Me in .St... toiljs.:" .''Cipkl'. To.W'n.-'' "Secieti 111 the Daik' and "30 Sec- onds 0\ei Tokio." mi^hl be caused.:,bx playihg..:pt .:waP .countless .other problems :to-be met nrcs^agcs;. v ;:.■■• ;.■;; v; -f:..^. :,v;.:|;itr ■fhe.' w'ah'^Oriffiij/Saici;; ■■,■ ;.}:'.:; .. .'H'e ..is ;:al,s'o'trying .to^ ar'my-made: films';.' for. ' i'nclfisicrn ' in hew .progriim.,; staiiiig if-.a 'pi:ct'ure :i's gp6d.'for';th^'ta'pp.ijs.'^ . p.u.biiei',iMmwajrig H'U^^ tia^' U's Simpliikation Schedule Starts ■. .'.tJiviyersal' toPk;;further step. i:n' its ■.simp.iiJlcatipnprpgram ; t .with .fiiing of .'registration statemeiit .with; Securities• EXehange Com-: niissipn fer ^7,SOO,0Oa wbrtli of 3^V'-V: sinking fund debentures, due 1959. Piocecds from sale will be used to piepay this month $5 035,000 lace iJmount of secured netes outstanding ..E(hd to.: redeehV about: April 18. tl]e: $1:983,00.0 of :5';;: c'oiiyertib]e'; deben- tuic- Lattei aie due Apiil I, 1950 Remairdei ot net pioceeds go to geneial lunds of company Besides wiping eut outstanding notes and taking caie of 5<:„ deben- tuies for a single bond issue, U's ■latest nipve ' represents . anhiial in- terest saving ef upwards Pf $100,000.. DiUpn. Read & pp. wilt head: group of .underwriters, names of: which and offoiing pLice to be supplied by amendment, Rank to Proceed Wkh Plan for U. S. Distrib System, States Kelly While .some pioposals weie re- ported undei discussion for the re- lease of Two Cities pioduft in the U S thiough the new Easle-Lion Films SStrup (Arthur''W..Kelly), it is iinderstebd that Alexander Galperr spij (Iwp Cities rep.), when in Amer.; ica, was al^o dickcung foi a icloase foi seveial TC films through a majoi distributor Two of tbe top TC pictures were, howpvei, men- tioned as likely to be leleased through Eagle-Lion It is lindcrstood:' that ■ release of producf £i-o'ni: two 'Cities, in which; .T. Ar tjuir Rank also has a large in WITH HAYS ORG. FOR 25G ', :i)ncbrtflrrn^;.;'reports/:^ Charles . Francis Coe. who.- served as Vip.'i arid .'; general' :,.Gd:un.scl:. fur ■;thO Kays (jn'i'ce,':iS' winding.;;U:p tire-, re-^ ■raaiiiclor 'of liis' ierni: pafct '.with tlie ■.Motioii.. Picture' Producers . and; IJis- ■tribulbi'S:., 0.1:. .Arnerica... at :rfi.te: Sii.OOO annually Undei stood he is on an inactue status until tho'cxr piiation of his coutiact Coe, when active, was lepprted re- cei\ mg $50,000 pei annum llis con- tiact had about a \ear to run. Coe leturned lo his puvate law piactisc in Flouda j>e\oral inon"i- ago. Mayer in N, Y. Huddles ■ Louis:.: B. ilayer and Howard S• !■::■ i::: I ■. g ■ are in kcw: York trom t'ne Coast,' foi to gstopover si'h.'i Wa.-«li'- :iliglm1;,5f ' ii;'i':'i:.':y;':' -.^^ '■' ' Majev is stheduled to sit in on contabs with Sir Alexander Korda. regar9}ri'g,'M(»ti'b- ■IJ^^^^^^^ :pl4hs in, England. '■";.'''■:■''''.!': '.'X,:A :. .Mayer and Jack ^Rotter;; ail.'-aidei Are slated to 'rorn'ain .in'^ N. Y^'^iih.Ui^ Mareiv 19 ,.v,'htte Stricliliiigvptaris^'itp .Vetiirji ;tO:.th(j^Qbast .iMaK!lt .;l2.;y ... . ■ '• terest, \y'iir be discussed witi-i; ..Rank, in England by Galpeison and Bar- rmgton Cain, No. 2 man in the Rank organization. While Gain, prior to his departure fiom New York to England, Stated ■tfiat ^setting: lip' a .distribu'lion ei-gan- ization in tiie U... S. did not appear feasible for the time being due to \yartime conditions, Kelly ■:iast. vi^^^ !statecl ;thei'e'. 'hact; .be'ep nq .change i.n Eagle-Lien- plans for. a^ releasing^ system Kelly, who is in Hollywood, slated, that while difliculties might be en- epti.ntercdy in'.sbnte; B34;Cha two rii?ijPl'' compaHies-.' bad:': ofl'oTC:Ct Eag'le.:;'.£ipn '.physical disti'ib.ution 'laoilities;.: K^liy italedythat :Rank: ,p;lan'nfid,':t6 ' proceed Willi; plans . for the,.:'.eslnblistim,ent 'of a wprldjyide ■;:diKtribti.ti,oiv 'or'ganizatio.n for':.British films', to wiiich wuuid be adcicd Am'tirican .prodtict: ampunting; .to. M 01 inoie ot total-schedules. While thealic operators aie at- templing ti> csljniate the eU'ecl o! the new April 1 adihission lax rise on bo glosses distubutien heads of major compaiiie.s fear that it wilt comijlicale selling conditions Points at "issue are 1. Many ex- hibitors v'lll. find they canriol in- cicaso admission scales, will have to dbspib the lax and thus contend 'thefy' mlr'iipf ;have 'as" raucfr^'moii^y'■ as fprmerly :tb: pa^^;jfpr ■/pictUvei', ,:j.;. ptheiv. exKib.itprS' ckim. that: the ;.in> . ctea'sed ta? ^:^^-vyhiehyt ii ey 'intend 'in' :t;liai-ge, will: likely reduce Jittendance .,; and tjvus: ait;tdiT!atieall.y. reduee; ren.£-;:. :als..... :• 3.,.' If,, .ill ■any.; •giveri.'. tefr'i'tp'ry, . spnie exhibitors'absorb, tli.e^ tax iyhile'; others: pass it ■ aloiig to. ..the:.;public, distrib;.execs contend '|t' :.w-iU create;; a'new problem in protectior,. Ma.ior. distribution execs, antici- patibg-; the ■a|lm'issipiv ■:ta?<..,.rj for some time boon trying to pei- :suade..loading Ihdepen'deiit'.ex^ brganizations and ,repi:esentatiyes to,.; ■:establ.isii.: a;.: uni£arm:, polic'y';.tpwa'.rd.s. ^ the: tax.:ihindiyidLial; exchange: areas^. all; exhibs;'; .in' speciflod ' ai-cits ■wpuld/^- ..if ''thi.S .plan is' &.dopted. either; .a.b>'c>rb ■ tlie. tax; or -inerease. admi&i(ji'is;:_;:;'; Meantime theie is much powwow- ing':i,i;n-ipng; .theatre. cJi'ai^ in New. ;Yo'i'k 'ancl .pther l!;ey^-ei.f.i.<!Si'.'; tp; bi.ap new'; admissibn;, scales.. '^pin6; .circuit execiitivca:..feci that the.:..20';.?i; ' tax' :tap.v:vyili :n-iatcrially;'attoct;.busi- ■ .■.''s,s; ;:pth.er,s' do.h't ...:thit?k ■;it:; Willi' at' , atlei the flist few days e optinutts cite the iact thai iij this day and age ot fiee-spenciing its not unusual toi the best seats to go, fiivs;.tt; and ':.ol'ttira(3S: in ,,th(5se :$l.(i'3,' Ibge peWs;are:; custbhiei's who liter- ally don't know how to behave tliat IS, the usheis must tell them it's 'customary to lemove their hats in a theatie Also, it's long since been noted the new-rich are a 'motlev ciew who \eiv e\i^ently ncvei e\en dared come ,to the: ■ downtown first- luns, much les^ buj the ' be,st' seat«i ill the house. Loew s points to the new record =pt at the Mel, Brooklyn, over the weekend with "Guy"Named Joe,", and the ■almost-iecoid Paiadiso, Bionx, with the same pic The theoiy of the 20% admisJf tax, of couise, H that the piesent $200,000,000 amusement tax yield will be doubled assuming business maintains an even keel. Some circuits—also those on th« optimistic side—feel that the "bieak- age" through evehing-off admisMon prices (tax included) may give some theatres a slight mathematical ad- ; (Continued on page 18) WurtzelQinteFox AM Hoiiyw'iod. M:ircb 7. Sol M Wuit/el pne Pf Ihe pi(m- eei-s pf the. filin industry; ■'cli6ckS:;bBfr v ol the 20th-Fox studie May 15 with the exfjiration of hi.s executive pto- ducer eonliact, aftei 26 yeais with the companv dating back to Fox Films on the old Western avenue lot. Aftei a shoil vacation he expects lo continue in pictuie-, m a capacity still unannounced. ... ;.■■ ■.;■ Kcllv Calls On McNerny Hollywood, Maich 7. Ailliui W Kellj, who auued bore over the past weckeju;. .s:iid corrections were in the oiTmg for certain staten-.cats concerning , J. (.Continued on page 51) PAR CLAIMS NEW HIGH, 6,003 INDIE CONTRACTS In the fii.st 'even weeks of selling, Pai amount has stiuck a new all-Ume , high on independent contracts by closing G003 n that psuod on its thud block 01 fi\e loi this sea->on. ■Titis;{fe;ihei'.ftighost-'attaih<^ tiiat fast since the decree went into efi;ect: •'-. The total r.un-.':)er of iridi.- account^ ■si>ltl':se!'£«!:■ ttos SGKsw^ t!i« .'two .prior blpcks.,:is :g.S!,7()6, as com- paicd with 18ti89 lot the initial thie« packa es ol the piior (1942-43) SC- mestei foi the same period of selling.