Variety (Mar 1945)

Wednesday, March 7, 1948 $250,000,000 FIL M INVENTORY 5 Majors Set Up Own Checking Bureau, Jack Levin at Helm; 3 Cos. Remain Out Formation of an industry checking bureau in an effort to plug losses through insufficient returns on per- centage deals, previously reported in "Variety" last June, was formally announced last Friday' (2) in New York. New agency, called Confidential Reports, has been organized by five majors—Paramount, RKO, United Artists, Columbia, Universal—at a reported investment of $500,000 for installations and supervision. Metro. Warners and 20th-Fox have, refrained from joining new organ- ization, two former having their own checkers and latter remaining with Ross Federal. John J. O'Connor, Universal v.p., will also function as president of Confidential Reports, Incl Jack Levin, who resigned from the Copy- right Protection Bureau, has been, appointed v.p. and general manager of the new agency. Levin stated that some 5,000 men would be needed: for-the new check- ing service and that. wages will be paid at a $5. $6 and $7 minimum daily rate. He also announced that leases had been signed for practical- ly all 30 branch offices in key distri- bution centers. Branch managers and supervisors have been appointed and there are plans for setting up five district offices shortly. Levin pointed out that personnel for the organization was being lined up from outside the film industry. Harold L. Groves has been ap- pointed field director; Jules Willing, personnel director; Harold Saxe, comptroller. TCRNADEITE'S' ANNUAL REISSUE; N.Y. R1Y DATE Regarded as a natural for Easter booking annually, "Song of Berna- dette" is being made available cross the country the end of this month by 20tn-Fox. A representative number of bookings have been set up for ex- hibition of the picture at general ad- missions. The Rivoli, N. Y., is the only house so far which has bought the picture as an experiment during the height of the Lenten period. This house has dated "Bernadette" for a . run from March 10-27 in the belief that it Is the only picture on file that may importantly offset the usual Easter slump. "Bernadette" played approximate- ly 3,500 dates at advanced prices up to last December, grossing around $3,000,000. It set a new high in gross for all time for RKO's 41 Greater N. ;Y. theatres. RKO Production Sked Tops Stodio Record Hollywood, March 6. Production program for March is the heaviest in the history of RKO, with six starters and five holdovers orowding the stages on'.the - Holly- wood and Culver City lots. Newcomers- for March are "The Bells of St. Mary's," "Radio Stars on Parade,"-. "Bar of Music," "Ding Dong Williams," "Chicago Lulu" and "Cornered." Continued from last month are "First Man Into Tokyo," "The Most Dangerous Game," "George White's Scandals of 1945," "The Invisible - Army" and "Man Alive." Irwin Esmond, 70, Resigns As N.Y. State Film Censor Albany, March 6. Irwin Esmond, director of the motion picture division of the State Education Dept. since Oct. 10. 1032, . and outstandingly successful in the Post, has retired, effective March 1. He arrived at the statutory retire- ment age ot 70 in February. Dr. Irwin A. Conroe, 46-year-pld Assistant Commissioner for Higher' and Professional Education, is serv- ing an interim period as acting head of the mpd. He will handle this in addition to his other duties. 'Duel' Damper Hollywood, March 6. David O. Selznick took his "Duel in the Sun" troupe to a location near Tucson, Ariz., where the sun always shines— or nearly always.. Shooting was delayed several days by a snow storm. MARK SANDRICH DIES AT 44 IN HOLLYWOOD ■Mark Sandrich,' 44, topflight pro- ducer and director of musical films and comedies, died at his home in Hollywood last Sunday (4), of heart disease. He had gone into the li- brary to' read after dinner, and was found dead a short time later by his wife. Sandrich had been an ace di- rector and producer at Paramount for the past six years. Prior to that he had been a director , at RKO, making a name for himself as di- rector of .Fred Astaire-Ginger Rogers musical films. Before that he had gained attention as director of com- edy shorts for Educational. Sandrich was an ex-president of the Screen Directors Guild and vice- chairman of Hollywood Victory Com-; mittee. He helped assemble and directed the Hollywood Victory Carvan several years ago. At time of his death he was preparing the program for the 17th annual Acad- emy Awards' presentation. Para- mount employees observed five minutes of silence yesterday (Tues.) when funeral, was held. Sandrich had been preparing to produce and direct Irving .Berlin's "Blue Skies," with Bing Crosby as star, slated to be one of Par's out- standing 1945 pictures. He most re- cently completed "Here Come the Waves," another Crosby picture. This was finished only a few days before the world preem of "I Love a Soldier," Paulette Goddard-Sonny Tufts . starring comedy. Sandrich produced and directed "So Proudly We Hail," also for Paramount in 1942, in which Claudette Colbert,' Miss Goddard and Veronica Lake starred. : Others he produced and directed for Par after joining the company _in_1938 include "Holiday Inn," Crosby-Astaire film; "Love Thy Neighbor," "Buck Benny Rides Again" and "Man About Town." Sandrich signed a new contract in March. 1944, whereby he was to produce and direct one feature an- nually for Par for five years with the right to produce three pictures for other companies during the period of the pact. Born in N.Y., he studied at Co-^ lumbia University, going to Holly- wood in 1923. . After working for RKO, Fox and Educational among others as shorts director, he mad* • three-reel band film which won an Academy award, His first feature was "Melody Cruise." Then he made two Wheeler and Woolsey feature-length com- edies. Sandrich directed "The Gay Divorcee," which gave Fred Astaire and. Ginger Rogers their first big starring roles together.. It elevated him to the rank of topflight direc- tor. "Top Hat," another Astaire- Rogers starrer, was equally success- ful, for him and as a money-maker. He did three. Astaire-Rogers musi- cals in a row for RKO after this. One of his first dramatic efforts was directing Katharine Hepburn in "A Woman Rebels." Survived by widow and two sons. Brackett Appointed . Hollywood, March 6. At meeting of Motion Picture Academy of Arts and Sclences ( yes- terday (5), Charles Brackett was named program director for the 17th annual awards show March 19. Brackett takes ever job vacated by Mark Sandrich's death. He will con- tinue with program as originally planned by Sandrich, including mon- tage from films nominated' for Os- H SPOTLIGHTS HIGH PIG BAuKLOC The motion picture industry's $250,000,000 inventory problem, tied in with- a growing print shortage, approaching end of the European war, and need for flexible position' to liquidate high-cost negatives if necessary, is again in the spotlight of executive confabs. Unusually high inventory, an ad- vantage in view of the marked slow- down in production due to shortage of manpower and materials, is also regarded unfavorably by some film toppers should any weakening in the market develop. In event .of a dip In b.o. values, inventories would have to be marked down in line with potential grosses. ' Some major execs are not calcu- lating in terms of backlog pictures, but in terms of dollar value of in-, ventory. One exec, from accounts, stated he would raise the issue of the high inventory levels at board of directors meeting with view to adjustments. Meantime, however, replacement value of inventory remains stable since production costs continue high —estimated by studio heads at about. 40% higher in 1944-45 than in 1942, and 60% higher than in 1939. Y. Frank Freeman , recently estimated that due to Increased cost of labor and. materials (other studio heads have also referred to slower output due to less experienced personnel) it takes 53 days to make an "A" production, which formerly took 42 days! Per day cost of making. "A" product has been estimated at from $15,000 to $20,000. Slowdown in 'distribution as a re- sult of raw film limitations, expected to make Itself felt in terms of reve- nue within the next 60 days, 'would handicap speedy liquidation of in- ventories in the event that such a move becomes necessary. For the time being many execs continue favoring high inventories as a hedge against limited production facilities, also taking view that a lower replacement value of nega- tives is not a near-term prospect: that decline in labor and material costs is not likely in the months ahead. Metro, Warners, Paramount^ and 20th-Fox inventories are now com- puted at around $185,000,000, LOU POLLOCK HEADS BIOW'S PICTURE 0EPT. Lou Pollock, former United Art- ist* ad-publicity director, has been named head of the expanded film de- partment of the Biow ad agency. He will headquarter in Hollywood, mov- ing out there shortly, following the departure last Saturday (3) of Milton Blow, agency topper, to survey the situation. Jack Pegler tried the Blow film chore for a spell, but Pollock will extend the department, concentrating on the many independent producers in the industry. MinY Boff Bally Warners ' is using a talk-provok- ing, subway poster campaign in N. Y. for "Hotel Berlin," currently at the Strand, N. Y. It's framed around the idea of "Apartments," with .this word highlighted to cash in on pub- lic's yen to note anything pertain:|-g to apartments or places to live. This was tied in with the picture's title, with the wording that "there are 1,000 rooms and 2,000 secret pas- sageways" in "Hotel Berlin," set for occupancy at Strand in N. Y., March 2. cars which will be shown that night at Chinese theatre. Academy also named Franz Wax- man and Alfred Newman, as vee- pees to assist Brackett in carrying out program, D.J. Demands Divorcement; Action Against Big 5 Set for Oct. 8; Court Reserves Decision On Clearance Nix Arbitration Big Five, following further confabs last week, decided against proposing offer to arbi- trate specific 'rim which had been discussed as a measure to compromise with the Depart- ment of Justice on other consent decree issues. .. Reported that although Metro and RKO reps were in favor of the plan, two other majors op- posed it. They would obviously be affected in too many impor- tant sectors. RALPH KOHN, VET OF PAR FINANCING, DIES IN N. Y. . Suffering from a heart ailment for about 10 years, Ralph A. Kohn, vet- eran Paramount executive, who at the time of his resignation from the company after his first serious heart attack, was treasurer and a member of the directorate, died last Sunday (4) in N. Y. The corpulent, red-faced Kohn, was not only a colorful figure., in the picture-industry .but one of the. shrewdest financiers. He is said to have made the deal, when Para- mount Pubiix was in trouble, to ob- tain $13,000,000 in loans from banks by putting up film negatives as col- lateral. When Par went into bank- ruptcy this was made the subject of a suit on the ground that the deal violated the indenture of bonds of P-P. He was among, directors named in the action which was finally set- tled but of court through payment of varying sums by each. .'• After leaving Par 10. years ago, Kohn was associated with Ben Schul- berg, also a former Par executive, for a time in independent produc- tion. In recent years, he sold insur- ance as a member of Keith, Cosgrnve & Co., N. Y. Kohn suffered his first heart at- tack at home one night when he was running off some 16. mm. pictures for friends. Jie.'was forced to go to California for a long rest after that, quitting Par to do so. He originally joined Famous Players in 1913 as assistant counsel and assistant secre- tary, later becoming assistant secre- tary and assistant treasurer of Para- mount-Famous-Lasky. In 1927, he became treasurer of Par and ' in May, 1934, a director. Survived by a sister; a son, Ensign Ralph Kohn, Jr., of the Navy, and a daughter. • ' . Hedy -Chertok Set Indie Production Unit Hollywood, March 6. Hedy Lamarr and Jack Chertok are setting up a deal to enter Inde- pendent production. Star's contract with Metro expires in about 30 days and although she may re-ink with lot or some other major, contingency will be that she do one outside pic- ture annually on her Indie deal. If the star doesn't sign, she will do three or four pictures yearly in con- junction with Chertok. Details, however, not ironed out as yet, nor is releasing deal set up. Chertok formerly was producer at Metro and Warners. ' Miss Lamarr was -spoken of as joining the RKO roster. ♦ Robert L. . Wright, assistant U.S Attorney General, told Judge Henry W. Goddard in N.Y. federal court Monday (5) that trial of the' Gov- ernment's action for a new consent decree, involving divorcement of theatre chains from producer-dis- tributors, would be necessary. Trial . of the issues involved, set for Oct. 8, may take a long time, according to Wright. ■'. In order to expedite matters, first of several pre-trial conferences be- tween Government reps and counsel for. the Big Five-was set for March 26. Attorneys are scheduled to meet to decide upon the issues to be presented to the Court for adjudica- tion. I Judge Goddard reserved decision on the Government's application for a 'temporary injunction, preceding trial, on clearance practices. Judge Goddard said he did not concur in the Government's belief in the im- mediate necessity for § such an. in- junction.. Briefs on ; this phase of the proceedings will be submitted by March 20. In arguing .for interim relief on' clearance, Wright said that the power of the Arbitration Appeal Board did not go far enough under the decree to permit elimination of "unreasonable" clearance. Wright told. the,.£pu& Jh4^le^QC|is^n&- k of many forms of a^crTnwIrren"" which he is trying to eliminate un- til trial of the other issues. Former Judge Joseph M. Pros- kauer, counsel for Warners/said that - Wright asked for. a quick trial and got it and now was seeking the most drastic form of relief known to law. Proskauer said he would show the Court where in the name of fairness and decency such relief' should not be granted. He stated that the Anti- Trust Division of the Department of Justice was not a Santa Claus when it agreed some five years ago that clearance was necessary; that it did so because it understood that it was true, and conditions have hot - changed since. Proskauer cited that in 75%' of the cases before the Appeal Board it was ruled that clearance was necessary. He pointed out that if the injunction were granted there would be legal suits by thousands of independent exhibitors. Whitney North Seymour, for Paramount; John Caskey, 20th-Fox; John W. Davis for Loew's; Louis Frohlich, Columbia; and Ed Raftery for United Artists, also opposed the Government's move for injunctive relief, Judge Goddard granted applica- tions of the Society of Independent Motion Picture Producers, repre- sented by Morris L. Ernst, and Con- ference of Independent Exhibitors, represented by Jesse Stern, to file briefs as amicis-curie. At the conclusion of the hearings, which lasted about three hours, Judge Goddard stated that his im- pression is that a decision of the Appeals Board it not proof of a violation of tha Sherman Act—that clearance must exist. It cannot be applied like a yardstick in all cases but, in each case,' must be decided upon individual merits. "I'm not ready to rule now," said Judge God- dard, "for If I do I will rule against you, Mr. Wright." Walsh to Pilot 'Don Juan' Hollywood, March 6. Warners assigned Raoul Walsh to direct "The Adventures' of Don Juan." next Errol Flynn starrer, starting late this month. Jerry Wald, producer, is assem- bling eight fommes, representing as many nationalities, to play opposite Flynn. Col, Banks to Back Filming of 'Snafu' Hollywood, March 6. Film production of the Broadway show, "Snafu," by^ack Moss and . George Abbott, will be financed 40% by Columbia and 60% by banks, un- der the arrangement for Columbia release. Abbott will contribute his interest in the play, Lou- Solomon and Herold Buchman, authors, will do likewise, and Moss will handle pro- duction on a percentage basis equal to that of the other three. Billy Redfleld, currently in.'the stase piece, will play the same role on the screen. Filming starts abov June 1.