Variety (Nov 1947)

Wednesday^ N^viHnlier 1947 HOUSE IN ORDER The command of the day is to put the house in order. The ob> Jective is to hurdle the first year of the British 75% embargo, the big test for the entire U.S. ^llm industry. These figures tell the story: foreign revenue from all sources to all film companies in 1946 totaled $125,000,000; in 1947'it will be $100,000,000 and in 1948 the take may not hit $30,900>000r . The aylom that the embargo, plus other restrictions around the globe, may have a salutary effect eventually is weak solace indeed. But tl^ere'it is.. It must be faced. JBo,,whether a bless- ing-in^disguise or not. It's an open secret headache within the industry.- Getting the house in order is bound to leave casualties in its Wake. The rank-and-filers think they're particular targets, as witness the letouts in distribution, publicity, white-collar and the like. But that isn't so. You don't trim the nut appreciably by letting out stenographers, and script-girls, Nor even by an overall pay cut. • ■ " The realignment in overhead must come in larger measures. The east points to the west for that because the Coast, with its prodigious production overhead, perforce must be the fountain- liead for major revision and curtailment. What must be avoided is the industry contributing to an un- necessary national depression; There is considerable evidence how that's being done. Options on costly properties have been permitted to lapse. Metro didn't like the costly hookup of "Joan of Lorraine"; even the prospect of an Ingrid- Bergman grosser didn't deter the company from lapsing that property. Some of the recent story and play buys, which run into hundreds of thousands of dollars, just got under the wire. These deals lyould otherwise never have been-consum- mated. In eastern headquarters the distribution end has taken certain sharp steps to trim costs. One company axed $2,000 a week through the expedient of cutting out all overtime. Top sales executives are going into the field themselves and dispensing with a corps of aides. Expense accounts are carefully watched and the idea of a suite when a room will do,, and a drawing room when a lower will do, is part of the curtailment. Even those publicl1^:coclctail parties mount up. The executive end of the business is tackling its problems with gravity but not with fear. It realizes it musf set a proper example, and there.are manifestations of self-denial on certain expenses; voluntary curtailment of directors' fees and the like. •6ne top executive plans proposhig a 10-15% VQluntary cut for the,$l,000-and-over executives, just to pave the way. The general tempo and temper of the Industry is take-off- your-coat^and-go-to-work. ■ The general buckle-down spirit is apparent. There is much concern about the crafts' new basic <!ontracts calling for 25% increases, and there is frank opinion that if it continues some studios will just shutter, reopenihg only when they run out of the backlog. The agents and some of their performing clients already know the feel of things W the lessening demand for their services, at .least under the iiuBated standards. The $25,000 per picture- players who got those 75Q and lOOG ideas—some even wanting a cut of the profits.—are finding out that the market isn't there anymore. Because the British market isn't there. National periodicals and dailies have sought to give the inside on the state of the film industry. One news weekly even was writing its story to fit the caption that "the wolf Is at Holly- wood's door.'' That isn't true, of course. But the wolf can arrive if the picture business doesn't pace its production investment in tune with the potential income. That means attuning it strictly to a domestic market—and a healthy market it still is—with whatever comes from the outside (i.e, foreign), as so much gravy. On all sides the industry is taking stock of itself. Nick Schenck summoned the top. Culver City echelon to New ITork for a frank talk on product and quality. RKO has designated a quartet to act as collective custodians of the exchequer. Universal, Metro and Paramount are trimming sales staffs, among other things. "* AH have their own ideas on controlling the situation. With living costs what they are the aim is to cut out rather than reduce salaries. On production Investment the intent is to cut corners without cutting quality. In the latter category tliis is best illustrated by a producer spending $60,000 for an elaborate set which wound up merely as a background shot. The presi- dent of the company, in no uncertain terms, laid it on the line for this director. If the eastern authority obtains on production matters hence- forth—and there are indications that it will—no longer can any producer or director build himself a replica of the Waldorf lobby just to show our hero coming down a short flight'of steps. The amoui^t of wasted film footage will indict any producer or director in a showdown. You don't have to build a grand ball- room to show a boy and girl dancing. The'old order is changing. ■. Abel. OF FIX EXHIB SUITS Distributor demands to reduce clearance among theatres, ostensibly ij>itiated by a few companies im- mediately after the British ta:^ went into effect, has mushroomed into one of the most sweeping -industry- wide policies ofthe last ; several years. Metro, 20th-Fo3t, Columbia, Universali. Warners and RKO have all either adjusted clearances in some situations or are in the process now, leaving Paramount the only major distrib that has not announced plans for such a move to date. Chief reason advanced by distribs for reducing clearances is a more rapid liquidation of product. With the British tax staring them in the face and with other parts of the world market in a chaotic condition, the majors are no longer willing to visualize their product as a long- term investment. Instead, they want to get production money out of each picture as soon as possible. That theory is also present in the mass day-andsdate booldngs accorded a number of top films in recent months. Even more important, however, is the majors' disinclination, in light of the anti'ttust decree, to give any exhibitor a chance for complaint. Decree is currently stayed pending decision by the U. S. Supreme Court. Most of the majors are pretty well convinced, however, that the Court will uphold Sect. II (Continued on page 22) ' 4 for Wallis Set Hollywaod, Nov. 4, Hal B. Wallis has set four pictures on his forthcoming production pro- gram, Films are "Sorry, Wrong Number" and "Be Still, My Love," slated for Hollywood ahooting; "Hous^ of Mist," , to be made in England, and "Rope of Sand," which may be filmed in South Afi'ica, WB Pays Off Loan Warner Bros, will pick up its $1,- 591.000 installment due Nov. 1, 1947 on its 2% term bank loan. Board has ordered payment in advance, Nov. 28, because of the company's liquid cash position. Quarterly dividend of 37'/jc per share on common stock was directed paid Jan. 5, 1948. Melon will be dished to stockholders of record Dec. 5, 1947. 2-Month Layoff of WB Studio Talent Dept.; Warner Prunes Staffers Hollywood, Nov. 4. Warner studio talent department has folded, along with various other departments, for two months. With it went plans for start of series of low-budgeters announced Oct. 13 as designed to be "proving ground pro- duction program to develop young players; writers and directors." Layoffs range from department topper Sophie Rosenstein all way down the line. Jack L. Warner issued emphatic orders to department heads on the Burbank lot to "get rid of all peQt>le unnecessarily on the payroll," or else. , , Explaining that he had no inten- tion of letting out employees who have been on the lot a long time, the studio chief declared: "In many cases there are - three persons doing the work of two, and this situation must be corrected." Exhih Objections to Upped-Scale Pix CONNORS KIN SELLS 6,000 20TH SHARES Philadelphia, Nov. 4. A gift o£ 1,000 shares of Columbia Pictures common by Jack Cohn, Co- lumbia v.p., to the Artists Founda- tion was revealed Ih the latest re- port of the Securities and Exchange Commission made public Saturday (1). Cohn's present left him holding 48,969 shares. His trusts reported disposing of 200 shares leaving them with 26,419. Transactions in RKO $1 par com- mon consisted of the sale of S,000 shares, by Ned E. Depinet, making his holdings an even 21,000, J. Mil- ler Walker disposed of 400 shares. He also reported holding liOOO war- rants for RKO common. Members of the family of Thomas J. Connors made belated reports of having disposed of 1,500 shares of 20th-Fox common last June and their last 4,500 shares of the same security in'August. Daniel Sheaffer sold 1,000 shares of Universal common since last August, making his total holdings 16,407. Nathan J. Blumberg, re- ported disposing of 200 warrants for common stock, He now has 28,500 warrants, Harry Brandt reported acquiring an additional 100 shares of Trans Lux common. He now has 80,615 shares, William M, Girden dis- posed of 1,200 shares of Trans-Lux, holding 1,200. AtPeak, Severely Cnrtailiiig Bookings 14-Min. Film Ballet ''Red Shoes," $2,000,000 Technl- color production now being made by the British unit. The Archers, wUl have a full-length ballet in it running 14 minutes, without the camera once cutting away. It's undoubtedly one of the longest such sequences ever made. Picture, starring Anton Wal- brook, is being produced under the J; Arthur, Rank banner and will be released in the TX. Si by Universal. Oscar Switch HitsLA.&bibs Below $$ line Hollywood, Nov. 4; Complete reshuffling of " releasing and t>roduction plans is on as a re- sult of decision'of the Academy of Motion Picture Arts and Sciences to change its annual Oscar Derby dead- line from Dec. 31 to March 31, As a sideline, the three-month delay is also playing havoc with Los Angeles exhibitors' plans for the holiday sea- son, .In addition, effect on houses throughout Van country will be felt in delayed showing of top product. Scene of the Derby awards has also been changed to the Hollywood Bowl, June 20. Now that producers don't have to come in under the Dec, 31 deadline, they're taking their own sweet time about: getting their pix out'. Tradi- tional mad rush to get public show- ings of product in Los Angeles, per the; Academy's ruling, has slowed down to a walk as a result. Pix that are affected include such toppers as William Cagney's "The Time of Your Life," David O. Selzniok's "The Paradine Case," "Portrait of Jennie" and "Mr. Blandings Builds. His Dream House" (latter made at TX&B. for SRO release), Enterprise's Arch . (Continued on. page 24) ■♦• With advanced admissions now being sought for' five pictures, the market for them definitely • suffered ' a break last week. Exhib objection reached such' a peak that the early pix in the field, ■ Samuel Goldwyn'a Best Years of Our Lives" and David O. Selznick's "Duel In, the Sun," were severely hit by it. "Years" and "Duel" had .been get^ ting a certain amount of resistance ever since they went into release, but the quantity of objection had stayed on an. even^and relatively unimportant—keel until last week. Then, with distribs- of three other films suddenly also demanding th« higher prices, the whole thing kicked bade. While plenty of exhibs had squawked at the upped admission feature of the Goldwyn and Selznick contracts, it hiadn't been keeping them from booking the film". As a matter of fact, one of the phe- nomena of the ■ situation was that exhib leaders Who had been respon- sible for resvltttlons against the policy by various groups were book- ing the films themselves. But no more* with salesmen ham- mering at them for^ the same deal on Warner Bros.' "Life- With Father," 20th-Fox's "Forever Am- ber" and Paramount's "The Un- conquered." What resolutions by exhib organizations faile4 to do was apparenlOy accomplished by sheer weight of numbers. ' Undoubtedly in iihe tbe^tre men's (Continued ron jpttlfe 20) NASSOUR BROS. TEAM FOR STUDIO OPERATION Hollywood, Nov. 4. William Nassour, recently named board chairman of Hollywood State Bank,, joined his ]}rother Edward as active partner in latter's Nassour Studios, which handles indift pro- duction activities. Tlirough William's banking* coii- nectionsi pair will set up company to finance indie producers. In addi- tion to their other projects,-present plans call for the Nassours to start on their Allied Artists, deal around the first of the year with four-films scheduled. New administration builcftng now under construction will be ; ready next month and will house various indies using studio facilities. Bviild- ing, with soundproof offices, will cost $275,000. Also building two stages at $750,000 cost. Pressburger, in Short, WUl Be a Very Busy Kid While in the U.S. Emeric Pressburger, partnered With Michael Powell in the British production unit, The Archers, ar- rived in New York from "llngland last week on a threefold missionr Iv He will endeavor to; .arrange sufficient supply of dollars to make possible location shooting around San Francisco of about 15% of The Archers' next film, "The Promotion of the Admiral." 2. He .will attempt to. awange lor a male player to co-star with Sir Ralph Richardson in the film. 3. He will confer with the Legion of Decency on getting a relaxation of the condemned rating handed The Archers' "Black Narcissus" (U). To this purpose he has a'different end-* ing for Hife film and ttt-oUght with him the Italian version, .which was approved by. the Vatican for show- ing in Rome. "Promotion of the Admiral" will mark the unit's switch from J. Ar- thur Rank Distribution to Sir Alex- ander Korda's British Lion abroad and 20thrFox in the XT. S. and Can- ada. Explaining the change. Press- burger said he felt it'advantageous to help build up Kerda, .who is pro- (Contlnued oti page 20) Acad Lines Up 9 Scripts For Industry Project Hollywood, Nov. 4. Academy of Motion Picture Arts and Sciences has lined up scripts for the first nine pictures in tbe Indus- try Film Project, to be produced by Grant LeenhoutSi ' Scripters and their. works are: Mary C. McCall, Jr., "Film Actors;" Paul Gangelin, "Film Writm;" Francis Swan, "Film Directors;" Lyie Robertson, "This Theatre and You;" Ted Gteisel, "A Film Cfoes to Mar- ket;" Courtney Anderson, "What 'Oscar' Really Means:" Wells Ront,' "Pictures Are Adventures;" Robert, Calloway, "History Brought to Life," and Alan Rlvkin, an untitled overall film about the industry. M-G PRODUCTION MEETS TO CONTINUE ON COAST Huddlfes by Metro executives on methods of turning out higher quality pictures are slated to resume on the Coast before the end of the year. Metro veepee-treasurer Charles C. Moskowitz will represent the homeofflce at the Coast discus- sions, reportedly to make certain a tight checkrein is held on budgets while the return to former quality levels, is doped out. Homeofflce huddles wound up in New York last week, with the Coast contingent returning to Hollywood over the weekend. Production chief Louis B. Mayer, exec producer James K. Mc6uinness and studio publicity chief Howard Strickling trained back Friday (31) night after more- than a week in N. Y. Mos- kowitz, meanwhile, will go to the Coast before Christmas^ when the hii(?d,les are scheduled to resume. Kenneth MacKenna, Metro story department chief, also returned to the Coast over the weekend, after five weeks in the east.