Variety (Sep 1946)

Wednesdaf, S«i>t«inl>er 4, 1946 PICTURES TOP COSTS TAP PIX RESERVES Here's How They Shape Up Most reinarkable climb; to greater liquidity has been made by 20th- Fox which scored a 350% gain in working capital since 1940 and a "750% boost in cash and bond holdings. Company as of Jan. 1 has cm - rent assets of $94,836,983, against $26,982,635 in '40, and cash and bonds totaling to $48,000,000 compared with $6,700,000 five years ago. Metro continues to be the titan of the industry with working a.ssets totaling $207,000,000 and cash plus bonds of $42,300,000. Figures com- pare against $72,700;000 working capital and $31,800,000 ready cash in . 1940. Other-companies, all .of which have advanced more than 100% in five years, have working capital and ready cash in the following com- parative figures: Paramount—$53,500,000 current assets against $34,600,000; cash and boiids, $26,000,000 against $10,500,000. RKO—Working capital, $39,000,000 against $l»,700,b00; tash and bonds, $24,400,000 to $7,000,000. Warner Bros.—Working capital, $67,000,000 againat $25(900,000; cash and bonds, $18,700,000 to $7,700,000 in '40. » . : Columbiar-Working capital, $25,000,000 against $13,100,000; cash and bonds, $5,000,000 to $2,400,000. i Universal—Working capital, $28,'200,00a against $11,000,000; cash- and bonds, $5,500,000 to $1,400,000, British Exhibition Chill Continues Against 'Gl Joe' and 'Objective Burma "Story of GI Joe" (Cowan-UA),t wliich played its first-r\ui engage- ment in London last November, has yet to get a booking in a single addi-*. tional British hou.se. Although English theatre operators refuse to ■ admit anything other than that they just can't find playing time for the highly successful American film, it's widely known that the British, have strong objection to it because it gives no credit to their troops in the battles depicted, "Objective Burma," Warner Bros, feature starring Errol Flynn, got the same cold-shoulder treatment from the British for the same reason. American picture men, as well as ranking military ofl'icials, readily admit that the British squawk is justified and there's little chance of , Hollywood's repeating the faux pas. A few lines of dialog, they point rout, could have remedied the whole sit- uation. ■' ■ Meantime, failure ol the Ernie Pylo film to get British playing time is spelling the difference between relatively minor returns and a bo- nanza to the picture's owners. It did well domestically, grossing $2,- 400,000 to date, With the prospect of ultimately getting a total of $2,- 600,000 in the U. S. Inasmuch as thp negative cost was $1,200,000 and, with prints and advertising, plus United Artists' distribution fee, expenditures ran to well over (Continued on page 27) Alsop Back in Radio Hollywood, Sept. 3. Carlton Alsop is returning full time to radio as manager of the Coast office of Kastor, Chesley, Clif- ford & Farrell and producer of the Don Ameche-Drene exhibit. Alsop's' Mfetro producer deal failed to produce anything tangible so he took his release and returned to huckstering. M-G Would Like 125G Prizewinning Novelist To Change 'Sacred' Title Metro was engaged in a series of tr-ans-Atlantic telephonic huddles yesterday (Tuesday) with the author of its $125,000 prize novel in an, ef- foFt- to get her consent to a change of title before it is officially an- nounced next Vveek. Authqrj 'Mary Renault, is British. Tag under which she submitted her story is "Sacred River." Metro hasn't de- termined definitely yet the title it would like to substitute on, the book, ;which will be published by William .;Morrow -next spring. ! Miss .Renault has authored three previous books for the same pub- lisher. "The Middle Mist," which came out in 1945, had the largest circulation, but all were meager sellers in this country. Others were "Kind Are Her Answers" and "Promise of Love." Author gets minimum of $125,000 for winning the Metro contest, in which 120 yarns were entered. Con- tract contains an escalator clause which 120 yarns were entered. Con- which permits a maximum of $175,- 000, depending on number of copies sold. Publisher gets a $25,000 award from Metro to do with as he pleases, although the aim of the company is for the publisher to use it in pro- moting sales of the book. Judges were Harry Hansen, book critic o£ the I^ew York World- Telegram; Amy Loveman, of the Saturday Review of Literature and Book-of-the-Month Club, and Sidney li'ranklin, Metro producer of its "prestige" type product. . Theatre, Radio Bldg. Hit Hard By New Ruling Was'nington, Sept. 3. Prospects of federal okays on theatre and radio building are even blacker than U. S. Housing Ad- ministrator Wilson Wyatt's recent 25% cutback in commercial building would indicate. Three big reasons, are given why no authorizations for radio or pix construction will be handed out of Washington from now on in, though radio may be in slightly favored position to films in this, respect. Last week's cutback in all non- housing building not only doused hopes of all commercial builders, but took completely out of CPA control authority to act on radio and film requests, placing both squarely un- der Wyatt, who is ali'eady on record as favoring a 100% halt on commer- cial building, CPA is to retain con- troi only over industrial building. Stymied in his putsch to stop ail non-housing buildings Wyatt last week said he -would okay only those projects which could clearly prove they would advance public health and safety. This category ^fill rule out theatres and i-adio studios. 90% Nixed Finally a, check of CPA actions over the past five weeks shows that (Continued on page 30) MAJORS PREP Major film companies will prob- ably face the greatest drain on their ready cash in the history of the in- dustry within the forthcoming year or two. But the call on liquid coin, unprecedented because of a combination of demands placed on it by a substantial hike in produc- tion costs, increased allotment for top pix, expansion into foreign thea- tres, the need to buy out partners under the decree, and added sales expenses under auction selling, will be easily met by a tremendous rise in liquid holdings over the past five years. That's the opinion of finan- cial experts after studying computa- tions on company properties. Solid financial standing Of the majors which set them up to meet the tremendous, cash flow -due in the near future is. "the fjfuit' of lush returns during the war years plus conservative o p e r a 11 o n s which boosted working capital of all majors except United Artists by 150fii. to the present all-time high of $514,500,000 -from the 1940 figure of $204,000,000, it is pointed out. UA as a closed partnership issues no public reports. Moreover, experts cite the remai'kable increase of vital ready cash and Government bonds from the seven companies' 1940 total of $08,000,000 to the cur- rent peak of $170,000,000 as the best protection against the sudden de- mands on the majors' coffers. fee call for cash, one' company treasurer said, may be so great that despite liquidity of the com- panies they may be compelled to borrow. Possibility is causing no furrowed brows, he said, because solid position of the majors would enable them to borrow from the banks at a rockbottom rate of from 2-3%. This is the payoff to the companies- sound financial position since, in previous times of need, the film , industry was hit with rates ranging from 4-5',a%. While top grosses for the past five years were the main cause of the current pile-up of cash, several other factors played their part, com- (Continued on page 27) 5 Distribs Huddle With Enterprise fai Wake of Break With Universal U Lays Off 50 Hollywood, Sept. 3. Universal laid off 50 studio work- ers because of the current produc- tion slump, with only two pictures befoi'e the cameras. Group' of 35 carpenters, cutters, grins and back lot workers were placed in the labor pool until work picks up. Filteen soundmen were given vacations over the period of inactivity.::. ■'■\. , WB Boosts Alexis Hollywood, Sept. 3. Warners has given Alexis Smith a new four-year deal, with coin up- page to $3,000 weekly. Studio also repacted Jean Negu- lesco as director. , Enterprise In Middle of Us Intern! Merger While the split between Universal and Enterprise last week came as a complete surprise to the trade, de- cision of the Charles Einfeld-David Loew production unit to pull out of its distribution deal with ,U was gen- erally accepted as a logical move. With a lineup of six pictures for the first year at a total budget touted as $13,000,000, Loew-Einfeld suddenly found themselves in the untenable position of being the little tail on the big new Universal-International d,og.. ■■• ■ Ellorts by Loevz-Einfeld to dissolve the pact had been going on for weeks, (Continued on page 27) 'Lassie' to Order Highly unusuar deal has been set by Metro with Marjprie Kinnan Bawlings to write a "Lassie" original and possibly a book- Studio is pro- viding an outline of the idea it wants developed: for the story about the dog character which it owns. Miss Rawlings wrote "The Yearling," a hoi'seyarn, which Metro has fllmpr' and other animal stories, but this her first crack at a "Lassie." Deal calls for Miss Rawlings, who will write at her Florida home, to get $30,000 for the sloi-y, If the company makes a picture' out of if, she gets another $30,000. -And if it is pub- lished as a book, she gets still anoth- er lump of coin, with provision for the total, pending upon how many copies are sold. < WER BOYS' BOOKS INTO PIX AS A SERIES "Rover Boy" books, read by more than 6,000,000 juves in the past, are .slated to hit the screen in the near future. I : ■■ - '' ■ ^ Arthur Kramer, now with Colum- bia, and Frank L. Moss, former writer-director with Howard Hughes, have bought film rights to the books from the estate of their author, the late Alfred M. Winfield (Edward Slratemeyer)..Deal winds up lengthy negotiations by various interested producers to acquire the stories. Kramer and M0s.= plan to use the property for cither a series of straight picture.5 or as a top-budgeted miisical. Duo have not announced who win produce the flUns. Both have recently been discharged from the Army, where Kramer served under Prank: Capra. National Boxoffice Survey Biz Soars to Summer Peak-—'Notorious,' 'Beaucaire/ 'Mexico,' 'Ivers' Head List of 12 Best Labor Day holiday week, with its long weekend, is being reflected in peak summer biz in all keys this \v0ek. Batch of new product also is helping to swell the total* with fresh entries nearly all measuring up to advance hopes. The way "Notorious" (RKO) is crashing through to record totals and near-highs in the few new spots where playing is the big news. Pic- ure is leading the pack although only in six key cities currently. It's pac- ing Cincinnati, Denver, N. Y., San Francisco and Buffalo, being smash in all four and equally great in Los .Angeles although in second week. Film will go to colossal $162,000 on third week at vast N. Y. Music Hall. Showing in some nine cities, "Mon- sieur Beaucaire" (Par) is a close second in V.VBrETr ,list of best 12. It will hit a colossal $90,000 in Chi- cago to pace the eity. Other's in the first 12 list are "Holiday in Mexico" (M-G), "Martha Ivers" (Par), "Two Guys Milwaukee" (WB \, "Night and Day" (WB), "Three Wise Fools" (M-G), "Big Sleep" (WB), "Caesar and Cleopatra" (UA), "Fjnd of Time" (RKO), "Anna" (20th) and "Black Beauty" (20th). "Claudia and David" (20th), "O.S.S.." (Par), "Centennial Sum- mer" (20th), "Kid From Brooklyn" (RKO), "Easy To Wtd" (M-G), "Time of Lives," (U), "Make Mine Music" (RKO) and "Killers" (U) missed the first 12 classification but were strong runner5-up< Last-named is doing terrific recoi'd week, on N. Y. precm. Strength shown by "Wise Fools" and "Two Guys'' hints big mohey for these two entries when they go further into the keys. ; "I've Always Loved You" (Rep) teed off'in great shape doing smash $25,000 on first week in Chicago theatre. "Centennial Summer" ob- tained numerous additional bookings ' and is doing nicely this frame. (CompWte Boxojificc Report.? on , . Pages 14-15) Hollywood, Sept. 3. Break between Enterprise and Universal la.'t week set off a scram- ble of negotiations here with at least five companies reported as having already talked or ready to talk with David Lpew and Charles Einfeld on taking over distribution of their product.. Columbia, at the moment, appears to be in the most favored position for landing the L-E pic- tures, but a quick change in that prospect is easily possible. Einfeld has admitted that confabs with Harry Cohn; Col prez, were al- ready underway: And today (Tues- day) , the two Enterprise partners sat down with Grad Sears, v.p. in charge : of distribution for United Artists. Also on their agenda for talks are Barney Balaban, prez of Paramount, who is expected here in a few days, and N. Peter Rath- von and Spyros Skouras, prexies of RKO and 20th -Fox, respectively. , Col's hot position in the trading is said to result from its decision to extend its B-picture program for at least another year, giving it plenty of room for the type of out- side A product that L-E offer. Col is also said to be in a good position to deliver Enterprise's requirements of special sales treatment. . Negotiations resulting from, last . week's blowup have caused Loow to postpone his projected trip to England to huddle with J. Arthur Ranlp on a reciprocal production- distribution deal. Instead, he and Einfeld.will leave early next week for New York for meeting with company's banking reps on the latest developments; RKO LOSES $25,000 PUGIARISM SUIT Los Angeles, Sept. 3. Samuel R. Golding and Norbert Faulkner, playwrights, won a $25,- 1)00 judgment in Superior court against Val Lewton and RKO, charg- ing plagiarism. Plaintiffs declared "The Ghost Ship," produced by Lewton for RKO three years ago, was taken from their, play, "The Man and His Sha- dow." Helen Deutsch Resumes ly Empty Heart' at Col. Hollywood. Sept. 3.^ Columbia's "My Empty Heart" re- sumes Thursday, following a two- week .shutd£wn, with Helen Deutsch at the writer-producer post. Shoot- ing halted when the studio replaced Virginia Van Upp with Miss Deutsch on Aug. 19 and Allan Rivkin and Devery Freeman were assigned to revise portions of the screenplay. Director Charles . Vidor got the green light on completion of script revisions over'.the holiday v.'cekend. Trada Mark Registered FOUNDED BY SIMB SILVERMAN rublliilied Woekl) bj VARIEXX, Inc. Sid Sllveiinian. President 164 W.est <l<!th 8t.,-NaW rorU 19, N. 7. 8CB3CRIPTXON ' Annual..$10 - Vorclgn..... .Ill 3Inf;le Copies. .25 Cents Vol. 163 No. 13 INDEX Bill 49 Chatter 55 Film Reviews 10 Foreign 18 House Reviews 22 Inside Legit ..........,..> 50 Inside Music ........-....,, 44 Joe .LauriCi- Jr. .....,. .... .,, 6 Legitimate ... , ...... .. . 50 Literati ,.., 54 In.side Radio .' 40 Milton Berle •. 2 Music 42 New Acts '49 Night Club Reviews 48 .Obituary , . , . .V.":.. . .. ,52;: Orche.'itras ........ . .. 42 Pictures .. -...;,......,,. 3< Play,; Abi-oad . . . . :.... v: . 50 Pre-Pi'Odliction No-vvs 7 Radio 32 Radio Reviews 34 Frank;. Scully v-s;;......,..... 54 Televi.sion 41 Unit Review 49 VaudeV:ille 47 D.\lty VAItlKTS (Published In UoUswc.<ta ;lty Dall.v Variety. Ltd.) ■ ■ $10 «. Tearr—Jll}. Poreleo -