Variety (May 1946)

Wednesday, May 1, 1946 PICTURES A RIPLEY: TOO MANY BIG PICTURES Enterprise MuDs Own Distrib Setup But Goldwyn or Other Tkup Possible Enterprise Productions, new Dave* Loew-Charlie Einfeld indie unit, mnv set up its own distribution com- SSy similar to that which is being Planned by Samuel Goldwyn, It was 'Staged in New York, Monday (29) by A Pam Blumenthal, v.p. of the outfit.' Blumenthal said formation of its own releasing organization was one of three possibilities under con- sideration by Enterprise. The other two are (1) joining Goldwyn in his proposed new setup and (2) going with one of the established majors. If a decision is reached by Enter- prise to strike out on its own in the distribution field, Blumenthal said, he has the financing all set up and many of the details of manpower and physical facilities have also al- ready been licked. Blumenthal, who is top liaison man between Wall street and the film industry, feels definite- ly, he. said, that there is room for added distributing companies in light of the present trend to indie production. Enterprise, v.p. stated there has been considerable negotiation with Goldwyn but any releasing deal made with that, company would have to provide that Enter- prise shared in the distribution com- pany's profits. If final determination is on re- leasing via an established major, the financier stated, the deal will be unique and radical. Delay in making a distribution arrangement, he said, was because the company wants to be able to make public its whole program before setting a deal. Pro- gram is all in the bag, he asserted, but other contractual commitments of the people involved make it im- possible to publicize their connec- tions with Enterprise as yet. Blumenthal denied reports that Enterprise was giving away large shares of its interest in such pictures as "Arch pf Triumph." Ingrid Berg- man is reported to be getting 30% of the profits and David Lewis,'the producer, another sizeable chunk of "Arch." Blumenthal declared the very concept of Enterprise was par- ticipation in profits by the people involved in a production, but that the company would at all times keep in its own control a majority interest — financially, operationally and artistically. Enterprise has made other per- centage-participating deals with Bar- bara Stanwyck on-a one-a-year (for three years) basis, and is reported virtually set with Ginger Rogers on a similar arrangement. SEABROOK'S 'ASYLUM' FOR INDIE FILMING Hollywood, April 30. . William Spier, head of a new film company just organized in Holly- wood, has an option on the picture rights to William Seabrook's book, "Asylum," a best-seller 12 years ago. Theme of the book is similar to The Lost Weekend." telling of the author's experience in psychopathic ward for drunks, Something in Hope's *Eye' Hollywood, April 30. Bob Hope becomes a producer as well as a thesp in "The Private Eye," in which he will co-star with Dor- othy Lamour on the Paramount lot. Officially, the film will be made by Hope Enterprises, Inc. It's his out- side pic.. Danny Dare will function as pro- ducer and Elliott Nugent as director. Protestant View Stated on Films Washington, April 30. The new Protestant Film Commis- sion is "interested in seeing that the points of view taken by Hollywood Alms are constructive and that the attitudes of these films make for the betterment-of human life," Paul F, Heard, executive secretary of the Commission, said here Thursday (25). Heard addressed the annual meeting of the Associated Church Press, composed of editors of Prot- estant church publications. He lauded: Hollywood for "im pressive service" in producing such films as "How Green Was My Val- ley," "Our Vines Have Tender Grapes," "Going My Way" and "The Bells of St. Mai-y's." Heard claimed that Hollywood was "continually looking for a formula to increase boxofflce returns." "Many of the formulas of the past have proved unreliable indeed," he said. "We believe that the applies 'Hon to entertainment films of stand aids of art and ethics is just the formula for which Hollywood has so feverishly been looking." He said the Protestant Film Commis si on was "tremendously impressed with entertainment films which dra- matically and entertainingly pro- mote constructive ends and influ- ence for the better the attitude and behavior of millions." T OWN RUNS SHORT Never dreamed in the him busi- ness that it could happen here, i.e., that there ever would be too many big pictures, but it has, and dis- tributors are reported none too hap- py about it. In some sales quarters it's quietly admitted that fewer hit films among competitors is much to be preferred, but the trend instead appears to be in the direction of a gradual increase in the percentage of quality product. Not only are pictures now at their heigh in intrinsic value but an appreciable number of films, ac- tually less than outstanding in en- tertainment punch, are contributing to the current problem by being able to command more playing time than they rightfully deserve. With the 'percentage of big films at a peak and drawing peak busU ness, plus some secondary pictures that are getting above average at the boxofftces of the nation, a con- dition has been created that is: forc- ing distributors to exercise extreme caution in the selling and timing of forthcoming releases. In the face of a market glutted with'strong pictures, cases are de- veloping among distributors where selling of certain top productions, together with scheduling of release dates, are being held up with a view to protecting such pictures. Theory is that it how behooves the distributor to watch for*the right openings and to roll big films when (Continued on page 30) Film Fans Price-Conscious But Its In Reverse: Suspicious If B.O. Too Low 20th-Fox Recommends Retirement Plan And Carry Entire Cost Essaness' 31st Link Chicago, April 30. Acquisition of the Plaza, North side film theatre, by Essaness The- atres, brings the number of fllmeries owned by the- circuit to 31. This is the largest number of houses op- erated by Essaness at any one time. All the circuit's theatres are in the Chicago area, two of them being the Woods and Oriental in the Loop. The Plaza was formerly owned by Harry Goldson, veteran Chicago showman. 'Bugsy* Siegel Loses Los Angeles, April 30. Tom Lewis and his wife, Loretta Young, won a long-delayed decision over Benjamin "Bugsy" Siegel in a suit involving an $85,000 real estate deal, Court of Appeals decided the cou- ple was right in refusing to pay for a Holmby Hills mansion which they charged was overrun with termites. Adoption of an employee retire ment plan for all regular employees, of 20th-Fox and its domestic sub- sidiaries, with the exception of Na- tional Theatres, was proposed this week by the company's board of di- rectors. The plan, supplementing re- tirement provisions of the .Federal Social Security Act, will come up for approval of stockholders May 21 at the annual meet. If rubberstamped by the stockholders and the Com- missioner of Internal Revenue, the plan will go into effect Jan. 1, 1946. Company will carry entire cost on its own. Officials estimate current annual contribution to be about 10% of employees* basic pay. National Theatres group is not Included be- cause it established its own system in 1942. Under the setup, employees of one year or more on Jan, 1, 1946, will be given, on retirement at 63, annual payments of 1% of their '45 pay mul- tiplied by the number of years' serv- ice prior to the Jan. 1, '46, date. Added proviso calls for payment of one-half of 1% of annual compen- sation up to $3,000, and 1% in excess of that figure for every year of em- ployment after Jan. 1, '40, upon re- tirement at 65. Another feature of plan permits retirement between the ages of 55 and 65, if the board of directors con- sents, at a lower pension. An em- ployee may take a lower benefit on retirement and designate a benefici- ary for continued payments after death. Plan guarantees a minimum of $780 annually to employees who have been with the company 15 years or more when they step out at 65. Benefits will not apply to overtime pay, special payments, bonuses or that part of the compensation ex- ceeding $50,000 annually. Raftery Sez UA Prods. Who Are Ready to Shoot Now OK in Studio Space Edward C. Raftery, United Artists prexy, informed the company's board of directors Monday (28) that the studio space situation, as far as producers releasing through. UA are concerned, is favorable. He said that no producer who has a picture now ready to shoot is lacking space in which to make it. Battery's report on the space sit- uation was one of the principal items on the agenda. UA topper had been directed by the board at its meet- ing to make an investigation of the situation on the Coast and report back. "Company's annual stockholders' meeting was set for May 21 in New York; Grad Sears, distribution chief, and Mary Plckford, one of Jhe own- ers, who are now in Europe, are ex- pected back before that time. Par Cnts Lot Eateries Hollywood, April 30. Paramount is the first film studio to respond to President Truman's ap- peal for the conservation of. food to stave off starvation in foreign coun- tries. Three restaurants on the lot, feed- ing 4,000 daily, have cut down on the use of pie, cake, breakfast rolls, bread, doughnuts and sugar. Foy, Schenck Key PRC's Prod. Hypo Hollywood, April 30. Hypoed production shapes up as probable for the PRC-Eagle-Lion setup with the -naming last week of two new production toppers for PRC. Byran Foy will stage an early shift! from 20th-Fox lot to his- new chore as chief PRC production exec. Foy is currently working out an amicable deal with 20th which would loose him before the late October date called for by his pact. He aims for a switch in July following the washup of "That's for Me," high- budget musical now in the works.. Aubrey Schenck, who holds a pro- ducer post at 20th, will shift to PRC when Foy moves in as production head. His official label will be executive production assistant. . Foy's new contract with PRC was announced by Kenneth M. Young, Pathc Industries prexy, who also declared that Reeves Espy would re- main in an executive capacity with Pathe. Young added that Robert Benjamin would continue as Pathe general counsel and Harry , H. Thomas as PRC distribution head. Cf. O'BRIEN AS LABOR LIAISON FOR LOEWS Charles F. O'Brien has been named by Metro to the newly created post of director of labor relations. O'Brien's duties, it is understood, in- clude the handling of all labor nego- tiations of both Loew's and M-G out- side the studios. Newly appoihted-direc'.o- formerly headed the labor manat ...ent divi- sion of the American Arbitration Assn. Prior to that he served in the Army as a private in the infantry. O'Brien had held tha post of pro- fessor of economics at Miami Uni- versity previous to his army service. The filmgoing public has become particularly price-conscious but. as pointed out in theatre and distribu- tion circles, it's in reverse, to the extent that if the price isn't high the psychological effect is that the pic- ture must not be so good. This Is observed as apparently be- ing the case where theatre operators vary their scales according to attrac- tions. ( The higher the price at the boxofflce windows the greater seems to be the pressure, it's pointed out. There's no explaining it among tradesmen except that when the ad- mission scale is lower than usual the prospective patron becomes suspi- cious about the quality of the slvow. The public may be shopping for pictures as much or more than usual, but seemingly are not looking for bargains. Everyone seems to have money to spend for picture shows, including the kids who before the war had to cough up only around a qClarter in mornings for a combina- tion bill but today are forking over as much as $1.50 before lunchtime. The fact that complaints on juggling are few and far between encourages theatre operators or managers to throw in price changes at any hour and up to almost any- figure. All Biding' Gravy Train Downtown first-run theatres are not the only ones getting away over pre-war averages. Many subsequent-, run houses are now getting much more and having no trouble finding customers, in most cases no matter how much playing' time pictures have-eaten up on dates ahead. The higher prices charged on first- run as well as subsequent engage- ments is importantly responsible for some of the records being estab- lished, as for instance two new highs that were established feS Broadway last week. Astor, opening at higher prices early in morning than usual with "Kid From Brooklyn" and throwing up a high evening scale, at noontime, registered $68,200. Other record was set at the Globe on first week of "Make Mine Music." Sub- stantially tilting morning as well as evening scales, house did $65,000. Music Hall, which had religiously adhered to pre-war prices during the entire conflict, finally succumbed early last December when it raised prices all along the line, topped by jump In cost of reserved mezz scats from $1.65 to $2.40. This aided house in attaining alltime high of $160,000 with "Bells of St. Mary's" over New Year's week last. Goldwyn May Use Republics Xchanges For New Distrib Co/s Physical Outlets Republic exchanges will handle the physical distribution of films for Samuel Goldwyn's projected new re- leasing company if Rep facilities are capable of carrying the added load, it was learned this week. Rep prexy Herbert Yates has sent a directive to all the company's exchanges ask- ing them for a-report on vault space and other available, facilities. Yates and Goldwyn have been negotiating a deal for some time, with the Republic topper reportedly anxious to make the tieup if pos- sible. Confabs have also been held with Monogram, which may get the contract if Rep's facilities prove in- sufficient. In any case, the agree- ment would have nothing to do. with sales or anything else except actual storage, inspection and preparation for distribution of the Goldwyn reclage. Although Goldwyn has not given the flnal'word yet that will throw his present New York organization into high gear on expanding itself into a full national distributing set- up, the office has been abuzz with planning and huddles on the new outfit. Arthur Sachson, recently brought into the Goldwyn ranks after 20 years at Warner Bros., will create the new organization and permanently command its distribu- tion operations, James Mulvey, for many years sales chief for Goldwyn, will be overall head of the new out- fit. As far as could be learned there was no evident reaction from RKO at the prospect of losing probably its most highly regarded producer RKO execs took the attitude that they had not been officially notified of Goldwyn's intention to pull out and so were in no position to com- ment. It is known, however, that Goldwyn informally told N. Peter Rathvon, RKO prexy, of his plans some time ago. RKO is said to have indicated a desire to up the pro- ducer's present 17',4% distribution fee to around 2Z\i%, but that is by no means taken as initiating Gold- wyn's desire to strike out on his own, He long has cherished the idea and feels now the time is particularly propitious. Some delay in going ahead with plans for the new company was oc casioned by Mulvey'* being sick all last week. He was bedded with an infection. PLAQUE TO AJ.BALABAN PART OF CHI CIVIC FETE Chicago, April 30. A. J. Balaban, director general of . the Roxy .theatre, New York, and founder of the Balaban It Katz thea- tre chain, will be honored tomorrow (Wed.) with a plaque dedicated in his name during the diamond jubilee :elebrat!on of Roosevelt Road Busi- ness Men's association, local commer- cial group. Present at the ceremonies will be circuit court Judge Eugene Holland,- city corporation counsel Barnet Hodes, and other ~Avic leaders. Balaban began his career in 1906 as a singer in a nickelodeon on Chicago's west side, hired by Sam Donlan, from whom he subsequently purchased the Kedzie theatre, first of the B&K chain. Donian stipulated in his will that his son, Armand, dedicate a plaque to Balaban on the site of the old Kedzie. In carrying out his father's wishes, young Donian had the help of Morris S. Silver, head of the local William Morria agency and long time friend of the theatre man. MPA Mulls Pension Plan Adoption of a pension plan for Motion Picture Ass'n of America employees is now under considera- tion. While in the talk stages thus far, it's understood that Eric A. Johnston's regime has looked favor- ably on some such arrangement. Present -discussions reportedly hinge on what should be the proper age limit for retirement