Variety (Jun 1946)

Wi^lneMlay, June .8, 1946 FICTCRES $10,000,000 DEAL Enterprise The picture business adds another chapter to its breathless ~ pace with tiie Enterprise-Universal distributing deal. In three months a new major film company acquired a studio, set a re- leasing; deal and went hito traduction. In eight months It will have its first picture, "Ramrod," in distribution; in nine it will have five pictures shooting. Since last March Charlie Einfeid and David Loew (with the cooperation and know-how of A. Pam Blumenthal, David Lewis and David Tannenbaum) have set up a major producing com- pany with almost as many top stars in its stable as any other niajor wltli the exception of Metro. Its roster of marquee names now Includes Ihgrld Bergman, Ginger Rogers, Barbara Stanwyclc, Joim Garlleld, Joel McCrea and Veronica Lalie, plus directors lilie Anatole Lltvak, Universal, for its part, as prexy Nate Blumberg observes, adds a potentiar $30,000,000 gross annually to its business: Blumberg also states that its partners in England (Rank, et al.) ''are particularly enthused about the acquisition." The Rank-Universal worldwide theatre chain wants fresh U- S. product with marquee values/arid obviously favors playing its own affiliated pictures rather siphoning off dlstiibutlon income to some other major. For U, also, the. Enterprise ac- quisition is an advantageous hypo to Its production values. It looms as an all right deal all around. AheV. LI LOAN CUES 3 Weakness in Pix Stocks Causes ^ Speculation on Anti-Trust Decisb^ USees$MOOOWorM With Enterprise Distribution Deal Deal pkaj'ed Monday (3) by which ♦ the Charles Einteld-David Loew flnlerpi'ise Productions unit will xe- leaso via Universal gives the lattei- cpnipaiiy a considerable product- hypo. U e.\ecs, who during the past yejii- Or so have feared the effects ot a wann\e list .of b.o. names on the studio s: lists, are highly pleased wi!h the ariangement which pro- vides them with such marquee draws Iiijli id Bergman, Ginger Rogers. Barbara Stanwyck,. John Garfleld. (nd .loel McCrea. They figure the Enterprise tieup should- give the company as much as $30,000,000 a year till in world grosses. Pact provides lor the Loew-Ein- teld setup to turn over t^ U lov dis- tribiitioji .a minimum oiaix lealmes a year. They are to be sold sepa- rately from U's own product and that of its other indie units, such as Walter Wanger, Mark Hellinger, Frit/. Lang. Mike Todd and Skir- ball-Manning. To'this end, U will name a sales manager to wflii k ex- cUi.sively on the Enterprise relea.scs. Bach pic will be sold individually and nol be contained in blocks with any other films. Althougli the present deal is ex- clusively with Universal, the pros- pects still are good for the product to be turned over to United World Pictures for release in a year or so. when tlial organization is operating at full blast. UWP is halt-owned by U and half by J. Arthur Rank. Deal v.ilh Enterprise, it was ac- knowlcdijccl by U prexy Nale Blum- berg Moiiday <3), is considerably broadci- than tlie usual perccntaRc distribution contract. Blumberg re fused to discuss what U offered to obtain Ihc Enterprise product in face of oilers to Loew and EinfcUl (CoMtiiuicd on page 25) U B.R. for Ent Hollywood, June 4. , Univer.sal's deal for release of Enterprise pictures, it is under- stood, entails financing of pro- duction by the distributing com- pany. David Loew and Charles Rin- feld were admittedly seeking more than the iisual percentage distribution arrangement from the company, they signed with and the extensive financing set- up offered by U is said to be one ot the added attractions. Einfeld. Bluiiiberg East For U Sales Convention Hollywood,. Jiine 4. , .'Charles F.infcld will come ea.-^l around the 20lh with his boy. Dick to allend tlic Universal convention, "see the shows", etc. Nate Blum- berg. U president, who quickies to the Coast oj) Friday (7), also will return in time for the U sale-: pow- wow al the Waldoi-f-Astoria. N. Y. Mrs. Blumbci'S i.t remaining east until the U topper gets back to N. Y. Laraine Day, M^G Sever . ' , • ' Hollywood. June 4. : Laraine-bay and Metro dissolved their conllaci, wliich still had five .veavs Iff run. Understood aclrcss was dissatisfied with a'long lisl of loanoul roles, . Since she signed her second Mclvo contract in 194-1. Miss Day had played only one picture, "Kccd Your Powder Drv," on the homi; Raftery Quits As UA Prez Tuesday Edward C. Raflery will quit the presidency of United Artists at the annual stockholders'- meeting next Tuesday (11) whetlier or not a suc- cessor is decided upon before then it was flatly slated by an authori- talive source this week. At the .name time it was said that UA three owners have no one set to take Raftery's place and Ih* indica lions are that there is no likelihood of their finding anyone in the short time left. Ratlery's departure will leave the company' without an overall opcval ing head. There have been veporls that a cojnmiltee consisting of a rep of each ot the ■ three owners would be set up to 1-lin U.\ until a new prosideni is decided on Whellier or not this conies about actual day-lo-day operalions will devolve on CJrad Scars, v.p. in charge of dislribulion. Another possibility that has been talked ot is partner. Mary Pickford temporarily filling in- the presiden- tial vacancy. Miss Pickford is said to have indicated a desire to take the po.vt, but it is questionable whether her two partners. David O. Sel/.nick and Charles Chaplin, would agree to such an arrange- nient. agnew^aoTatdesk after month away Neil Agnew. v.p. in charge of dis- Iributibn tor David O. Sel/.nick. is e.-ipectecl back at his desk late this week. He ha.s been out for almost a month, dining which (ihie ho was operated on at the Polyclinic hos- pilal. N. Y. Ho left the hospital'last Wednes- day (29p and has been rei-upeialins at his liome since then. Out; of the chores lacing him is the annual n(-.?elin.!; of Uniled ArlisK slncl;- holcl-ii s nc'xl Tuc.-;di(y (til, ai -.''.licli 'he is slaliid to repiestfiil SelViiick. By H.\BRT REGENSBjERG London, June 4. Alexander Korda's , recent deal, whereby he acquired British Lion Films for nearly $1,000,000, is only a forerunner of things to come, Kovda is now reputed to be a mil- lionaire iu English pounds, and is wealthier that he has ever been, Appointment of Arthur Jarralt as maiiaging director of BLF:. also is significant. Jarrntt, who is under- stood to have invested $400,000 in Korda's. venture, is a theatre man, having acquired his theatre hold- ings , from the late William Evans, original Ownier of Provincial Cine- matograph Theatres, absorbed some years ago by Gaumont-BritisI). Although Korda is reticent about his future activities, it's understood that he is plenty active, with big developments expected shortly. In- siders say that he is dickering with three important indie circuits, for tlit^ir big holdings. This would give him a real outlet for his fiiLiire product. One company under consideration is Shipman & King, prominent thea- tre owners who,, until receiitly, were backers of- Sydney Box productions. Company controls around 40 houses, scattered all over England, mostly in worthurhile spots. Rank often has bid for these, but understood that the price asked is around $6,000,000, with the owners insisting they main-r lain managerial intere.st. Korda might think it worthwhile to keep them occupied ' with him, which .makes the deal likely. Another company iKorda is sweet on. ^yith Jarratt also anxious, is Granada theatres. The.se comprise 3.5 dehixers, IS in London and sub- urbs, the others in the provinces. These are controlled by Sydney and Cecil Bernstein. They are reported ready , to give Korda and his con- ferees a big slice of their holdings, which amount to near $8,000,000. for a consideration. This is that they slay on actively. S. M. Super Cinemas, Ltd.. and its associated companies, comprising around 60 theatres in the Lancashire and Birmingham areas, including the recently acquired Danilo Cir cuit ot eight deluxeis in Birming- ham and nearby, are others Korda is said to be after. Southan Morris, head ot these companies, is reputed to be extremel.v friendly wilh Korda arid Jarrat, which should help the deal, . Acquiring interest in these three prominent indie circuits would en (Continued on page -24) Charm That Failed Al Sindlingcr, head ot Audi- ence Research Institute, thought that a horse which his daughter, Jacqueline, .17, was riding on their Hopewell: N, J., farm last week was getting too rough with her. He wallcbd over to calm the crlllcr down and ex- plain to the gal about handling horses. He expects to be back at his . office later, this week. The four cracked rib.s are healing okay. Col. Case Cues Gl-Studio Setup Hollywood, June .4, Precedent-setting case of vet- actor relations with the studios, was decided in favor of former GI with settlement that has Fred Graff going back to Columbia under full year's acting contract. . Screen Actors Guild had hearing.s with all major studiosr represented in discussions as to situation of ac- tors whose option periods had ex- jjircd within few weeks, after-return from rriilitary service. Graft' was under yearly option contract at Columbia and was draft- ed about five weeks before first op- tion was due. After severSl ycar.s in the Army, studio hired him back tor balance of original contract period but failed to take up option. Actor claimed that, under the, Selective Service Act, he was entitled to re- employment for- full year becau.se, under his term contract, he coiild not be classed as a"temporary". em- ploye, who is not protected by SSA. . Studio, although disagreeing with Graff's contention, has agreed to re- employ him for full year as "a mat- ter of good will and general policy ot doing its part to aid veterans re- e.>-tabllsh themselves." ♦■ Weakness of Aim stocks during the past week, in the face of a generally, rising market that drove the com- bined average ot all sliares to the highest level in la years, found both indu.sti-y and Wall street financial circles at a total loss for an explana- tion. One theory bruited about was lhat insiders had a tip the anti-trust suit decision, about to be handed down, had gone against the majorj and this was depressing Aim issues. Splendid first . quarter carnin.if statements, far in excess of last year, in all theory should have scnl pic- ture slocks skyrockctiiig, . Instead, while mo.sl .of the riiai;ltet,^climbed, majority of nim shares either just inanagcd to hold their own. or took .spills; There were *declines ot- as niiich .a.s two to three points in one day, with Paramount. RKO, RepubT lie. 20lii-j;ox, Columbia, Universal aiid Warner Bros, among the suf- ferers. Aside from the anti-tnist suit lin^ off theory, only reason that was of- fered on the street for the slides iii picture issues were more or les.-: minor dips, in boxoffice receipts. This trend to drops in gros.scs. as noted last week, was becomiiig in- creasingly evident, but certainly no cause for alarm. Theatres were slill doing biz that in any. but the most limh times—as exemplilied by Ihe past six months—would, be regai-ded as terrific: B.o. weakness.'Wall sireetcis figured, wasnit ot sufficient proportions to account for some of lliose falls film stocks took. What effect the pendhig anli-lriist suit decision actually had on the market was a moot point. It ap- H>eared fairly certain that the three- judge Federal statutory court in New York arrived at its findings and Ihe decision would be handed down momentarily. But if (he coiirt had actually decided against the Big Five and .was calling for divprce- meiil,. it was figured in some quar- ters, why should this react against Columbia, Universal, and Republic, which arc not defendants in the suit, but who.se shares dropped? U, SHERLOCK SAT ADIEU Hollywood, June 4. Sherlock Holmes and Dr. Watson will cease solving crimes for Uni- versal with the release of "Dressed to Kill." 14th picture 'n the detec- tive series. Studio's contract with the Arthur Cojian Doyle estate for use ot the Holmes stories has lapsed. National Boxoffice Survey Downpour, Unfavorable Weather Dampens Memorial Day Expectancy —'Postman,' 'Love Me,' 'Tomorrow,''Territory'Big Winner* Mrs. Goldwyn Back Sat. Mrs. Samuel Goldwyn, currently in England on a quick look at the pro- duction and distribution situation for her husband, is expected back in New York Saturday (8). She planed over two weeks ago. While numerous key cities are be- ing helped thi.s week by the Me- morial Day holiday upswing,, others are suffering from too much damp- ne.ss. or changeable weather. Heavy downpours on several days wiped out promiiiing weeks in . .several eastern metropolitan keys, overall total reflecting thi.s. Bulk of big money is concentrated in eight pictures, with small change in leadership from the previous week. Big winnei' at the wickets is ■Postman Rings Twice" (M-G). playing in some 14 theatres, with a national total of- aroUnd J.'l'.i.OOO in principal keys covered by V.^Rl^:nf. Others in the top eiglU; in about order namfed. are "Do You Love .Me" (20th'i. "One More.Tomorrow? (W'BV, "Badman'.s Teri it'oi-y" iRKOi. "Blue Dahlia' (Pan, "To Each Mi.s Own" (Par). '"I'he Outlav:-" lUA) !ind "Heartbeat" (RKOi. "His Own" ?ets into the select class via the .hi.i.!;e. SI35,000 being done on second week at N. Y, Music H.ill. ."Mlhough in Only three cilic. "TV.i- Outlaw" looks lo l:iiid about .Sl JD.nOO ip-..Mily becau. e of Vc!.;ord biz i;- I'l . ; S--.1 l-'r;.;-.'': <) t'-icjlre;-. yihn is still pluyinii in lour-Los Angeles houses althom-h now In ninth week. The remarkaljle slrenglh shown by "Territory" at- tests 10 the comprehensive national exploitation by RKO on this big western. "Heartbeat," another RI<0 picture, managed 16 get into the Hist eight although in only six ke.vs. "Bride Wore Boot.s"' (Par), "Young Widow" rUA), "Devotion' iWB), ■'Killy'' iPar) and "Two Sisters From Bo.-^ton'' (M-G) cither show promise or are rounding out their priiK-ipal playd.ates in pi incipbl . cities! "Widov.'." second Jane Ru.-- | sell starrer, which has done v.cll in - Dayton, Toledo, Salt Lake City and} |.-everal other spots, hits Detroit this cominj! week. "Two Sisters" is just starting, but is leader in Cincinnati and fine on second Philadelphia week. Ihe.ic bcinx only spots playini;. "Night in I'aradisc'' 'U i sliov.s up in just t^vo cities but is rated tor- rid $a5.600 in Chicaiio, "Dark Correi " (20lh). "Her Kind of Man" iWB; and "Somewhere in Night'' (20thj don'l slack up well this session. Last-named rates an avera.yo S52..000 in throi: L. A. spots, only cily s.l'0-,\lng. (C'oiiipleie fil"! Bo.ro.flice Reports. Patjes 16-17J Trails .Marli neKl»terf<1 l--buxr)BJ> BY BIMK, SII.VKK.M AN ■■(ilillitliKil W'urkl.t by VABIKTV, Ini-. Sid 8i]\-criii:in. I'l-i-nliltiit Wml 4(;ili St., New Tork in, N. T suBSCfiir'noN Anniiot 110 Foreign. S'liijple CoifffN.. • Vol. 162 110 No. 1.1 INDEX 1 '|».»M.V V.-Mtl»TV (I'libllsli'il In 'Il0l,!;'v,'(inil. bt D.i'.l.v \ aiii-l.v. l.nl." . tlO « \c.n—JI'.' l-'oip'En