Variety (Feb 1948)

Wednesday, Fe|»raarr 4, 1948 MAJORS vow MPEA AD) IN SNARL Must Pay Key Men Well to Keep Im. Sez Rnlnn Deflatii^ Loew Cut Request Despite reports that top film in-"t ciastry executives \frould take a vol-' vntary cut in salary, it's believed unlikely that Metro, for one, will make this fond hope of its stock- holders a reality. That was indicated at the Loew's stockholders meet at the homeoffice last Friday (30) by veepee-general counsel JF. Robert Rubin. . In answer to a request from one stockholder that M-G' execs take a voluntary pay cut because of the current "lean years" facing the com- pany, Rubin commented that the proflt-sharing arrangements in most of the top execs' contracts would ac- complish * this because profits are; dwindling. He went on to detail, however, the Inadvisability of a salary decrease at this time when the company needs the talents of its top execs more than ever, ; Salaries are higher in the film in- dustry than in other fields, Rubin said, because the film industry is an art, as well as a business. Execs, especially those at the studio, must be t>aid for their creative talents as well as their business acumen^ he added. In addition, he said, payment of high salaries is the only means possible of staving off potential raids on IVIetro personnel by othet coni- panies. Rubin pointed to th« number of corporations organized recently by actors, directors, producers, etc., as Indie production ventures. Because of the advantages, including personal ownership, inherent in such organ- (Continued on page X8) iniLOut A Different Answer Charles Chaplin's "Monsieur Verdoux'' performed only tepid- ly, boxoffice-wise, when it was open to the public in good weather , at both the Broadway and Loew's' States N. Y. It did sensationally last week at A on^- night stand during .the worst winter' night of the year. The 1,600-seat auditorium of ■ the Central Needles High School, N. Y., was filled at a $2:40 top, and plenty of would-be patrons were turned away* There's one gimmick. Show- ing was sponsored by tKe Metro- politan Area Council of the American Veterans Committee as a protest to picketing of "Verdoux" by the Catholic War Veterans. Maybe a conversion from entertainment to a cause celebre is the answer to box- office woes. , CagneySetdement; May Eiitend Deal .United Artists prexy Grad Sears |»ianed to the Coast Monday (2) to work out final details of the settle- ment with Cagney Productions which Will bring the letter's "Time p£ Your Life" back to the UA fold. There's just a slight possibility, also, that an agreement may be reached by which producer William Cagney will make his next two films for UA, rather than for Warner Bros., with which he recently signed. "Life",is understood virtually cer- tain to go to UA, rather than WB, as Cagney has been threatening. In telephonic huddles, Sears made a number of concessions to hold "Life;" Chief one is to continue Cag- ney's "most-favored" distribution terms. These terms, given to ' the ' owners and a limited number of pro- ducers some years ago, call for a (Continued on page 24) Farrow-Reid-leserman In Indie Christ Frod. Hollywood, Feb. 3. John Parrow, Glift Reid and Garl Leserman organized an indie com- pany to produce "Son of Man," based on the life of Christ. Plans call for filming in Italy with Farrow writing the screepplay, directing and co-producing with Reid. Group recently called off discus- sions with Universal - International for financial backing, and wiirnego- tiate shortly "Wfith either J. Arthur Rank or Sir Alexander Korda in England. Metro Expects Rental Rebound After Big Tumble Metro's film rental earnings, which took, a hefty tumble during the first quarter this year, are expected to rebound nicely during the next three months. Metro veepee-general counsel J. Robert Rubin, speaking at the company's annual stockhold- ers meet at the homeoffice last Fri- day (30), declared the first eight weeks of the second quarter indicate an improvement in earnings over the first quarter, It's believed the lion's share of the increase will re- sult from upped film rentals. Metro's earnings for the first quarter this year were only $1,354,- 761. Since profits on' theatre opera-, tion are known to ne usually more^ than that amount, it's believed the distribution operation was almost in the red. Company has released sev- eral top-earning films since then, however, including "Cass Timber- lane,". "Green Dolphin Street" and "'Good News." Returns from these films are expected to account for the 'major improvement in earnings. Loew's veepee-treasurer Charles C. Moskowitz told the stockholders it's impossible to estimate how much the company saved through the various economies effected during the last year, since results of the savings are two-fold. In addition to trimming, an unspecified . number from the payroll, those who remain are now "turning in a full day's work for a day's pay." More work to be had out of the latter is the in- determinate factor in the situation. (Continued on page 60) 'Big Story' for Fix? NBC's weekly radio show, "The Big Story," may be transferred to celluloid under .negotiations now under way between Bernard Prock- ter, producer of the show, and a major film company. Dickerings are for filmization of the radio program either as a series of shorts or a com- posite feature pic. If the deal is closed, Prockter would go along as consultant. The program brings to the air one w.k. reporter weeltly who relates with accompanying dramatization What he considers was the most in- teresting story covered by him.- Music Corp, of Affietiea is handling the negotiations for frockter. Eddie Albert in N. Y. On 16m Producing Actor Eddie Albert, who recently completed a stint in Allied Artists' "The Tenderfoot," is in New York in connection with his 16m produ- cing firm, Eddie Albert Productions In existence about two years, the company 'makes industrial, educa' tional and documentary films, Having invested about $50,000 of hi.s own money in the first year of operations, Albert said he expected the organization to show a profit this year. With costs ranging from $10,000 and $30,000 per film, depending upon the type, Albert declared his com' pany turned out about eight pictures in Kodachrome last year and antici pates the same rate of production in 1948. At present he's readying a se ries of pix on fractures for the American College of Surgeons, and is also mapping' films on racial rela- tions and mental hygiene. Albert is scheduled to return to the Coast within three weeks to start a p.a. tour in connection with' "The Tenderfoot" • INDIES'TIIGIIGS e TD lIliLE Pledges of continued support of tl 2 Motion Picture Export Assn. were given by the majors last week, following charges that the industry's overseas distribution coopei-ation was being seriously weakened by in- dependents selling around it. Dis- cussion of .the MPEA's first year of active operation and its future was a major topic at the meeting of major, indie, MPEA and Motion Picture Assn'. of America execs called by Eric Johnston, MPAA prez, in New York last week. Several of the majors were re- portedly critical of the continuation o£ the MPEA, indicating they might favor going back to dog-eat-dog competition in selling a number of the 11 countries in which the export uinit is now operating. They never- theless pledged support after it Wias pointed out what indiscriminate dumping of films by individual com- panies might mean in the long run to the companies themselves and to the U. S. from a political stand- point. There .was considerable bitterness concerning three major indies who do not belong to the MPEA. They are Samuel Goldwyn, David O, Selznick and Walt Disney. With top product for the overseas market, they have been able to snag more than their proportionate share of playing time and coin in the few countries which permit export of any appreciable amount of dollar exchange. Indies' action has natu- rally burned some of the majors and exces of MP A A and MPEA. Gerald Mayer, MPAA's fntemational divl- (Continued on page 90) MFEA's United Front Best Way to Fenetrate Iron Curtain'—Harmon Hollywood, Feb. 3. The united front of American film companies abroad, as evidenced by the Motion Picture Export Assn., is credited by Francis Harmon, Motion Picture Assn. of America veepee, as being the prime factor in the pene- tration by Yank pix of the "iron curtain," despite Soviet opposition. American films, Harmon ^disclosed, are being Accepted in spheres of Gomiflunist influence with tremen- dous enthusiasm. Harmon reached the Coast over, the weekend on a combo business-^racation trip. Films selected from a stockpile of some 4,000 never before seen in 11 of the 13 countries now operating under the MPEA are far outdrawing those given preferential treatment by Rus- sia and its satellites, despite political restrictions, Harmon said. Czecho- slovakia, for instance, with a popula- tion of 12,500,000, reported an attend- ance of 37,000,000 at Amer'ican pix last year, Romania, however, is a tougher situation for the Yanks since films are either re-censored or forced off the screen entirely. HeinemaH Replaces ScWalberg As Eagle Lion V.P.-Sales Mgr. HOUSE SETS HEARINGS ON FIXERS' MUSIC TAX Washington, Feb. 3. Public hearing is scheduled to be held here March 1 on a bill recently introduced in the House designed to force film producers to pay for both synchronization rights and ex- hibition licenses for the use o£ music controlled by the American Society of Composers, Authors and Pub- lishers. Known as HR 5014, the measure Is sponsored by Earl Lewis (R., O.), chairman of the House subcommittee on taxes and copyrights. Bill is an outgrowth of agitation resulting from ASCAP's avowed intention to rnise theatre seat taxes. Exhibs con- tend all payments for music should be made at the source. However, in the event filmmakers absorb all of ASCAP's music Charges, it's felt that this will merely be passed along to exhibs in the form of higher rentals. H'wood Spoils 'Em The labor market for secre- taries is. suffering from an over- supply because of Hollywood's strange ways, according to Ro- land L. Stratford, director of the Children's Aid Society counsel- ing and employment service. Rafts of girls come to him with the idea of becoming secretaries, Stratford reports, "because in the movies secretaries wear beautiful clothes, work in swanky offices and always go to dinner with the boss." When briefied' by him on the realism of hard work which most secretaries must face,., many of the gals change their mind, Stratford notes; - Behind-Scenes Probe on Deal For Coast Chain Chicago, Feb. 3. Alleged maneuvers of several Ad- ministration leaders in the sale of the Golden States Theatres chain to Mike Naify are said to have been raised in Harold Stassen's recent huddles with Senator Homer Fer. guson, of Michigan. The Department of Justice intervened in the sale last year when it was learned that Joseph Schenck, president of the United Artists Theatres, had given the Bank of America a guarantee that he would back a $2,000,000 loan to Naify. Federals foresaw control passing through Schenck to 20th-Fox in case of a default. Schenck then offered to sign an agreement stipu- lating that, if Naify defaulted, con- trol would not go to himself, UA theatres, or 20th-Fox. Justice de- partment" accepted the agreement and okayed the deal. Stassen's disclosures would con cern the report' made prior to the sale by Bob Wright and Phillip Mar- cus. Department of Justice investi gators. Report advised strongly against the sale to Naify and as- serted that. Schenck's signed agree- ment was no ironclad barrier' to transfer of control in case of -de- fault, Report was sent to Attorney Gieneral Tom C. Clark but was never released. Sale •was okayed after Clark huddled with a friend of Ed- win Pauley's, Bob Carr, former U.S. district attorney in California. Department of Justice insiders say that whoever gave Clark assurances that sale was on the up-andrup went contrary to facts in the report. They also point out both Pauley and Rob- ert E^ Hannegan, folrmer ^Postmaster General, have financial interests in tTA theatres. Stassen, reported to be bird-dog- ging the entire transaction, prob- ably will ask Senator Ferguson to probe further at Congressional hear- ings. 4- William J. Heineman, head of the J. Arthur Rank film division of Uni* versa! tor the past two years, takes over Feb. 15 as veepee and general sales manager of Eagle Lion. Heine- ' man leaves U to fill the top EL sales : post vacated by A. W. Schwalberg, who announced his resignation yes- terday (Tues.), effective the 15th. Schwalberg, in turn, is moving over to another film company as yet un- disclosed. Negotiations which culminated in Heineman's pact with EL were sud* : denly reopened last week after pre- vious dickerings which ended in De- cember had reached no conclusion. Schwalberg, it's understood, quit un- der his own- power. He had been dis- satisfied for some time with recur- rent rumors that EL was looking for an overall sales exec to head ' both domestic aiid foreign distriburv tion. No replacement for Heineman at U is expected. Instead, U's regular SE'.es department will absorb Heine- man's division and incorporate ped- dling of Rank's British pix with U'a; standard home studio productions. Absorption process has been going on for some time now. Both Bernard Kranze, Heineman's assistant sales chief, and Ted Birnbaum, another sales exec, have moved over to Film Classics, with Kranze now overall sales topper for: FC. U has also: (Continued on page 60) HVood Writer Group Rapped as Commie Washington, Feb. 3. The Hollywood Writers' Mobiliza- tion was described last Thursday as a "Communist Front'' to which, nevertheless, contributors could take tax deductions on their contribu- tions. Senator Joseph H. Ball (R., Minn.) Angrily pointed out that the Writers' Mobilization had been labeled as a subversive "Front'^ group in the At- torney General's listing of Nov. 23 last. "Yet," said Ball, "it was on the Treasury Department's list of or- gatilzations which it holds are 'charitable, religious, scientific, lit- erary or educational.' That makes contributions deductible from the donor's taxable income." It was one of eight organiiiattons bracketed together in the two cate^ gories by the Senator. Rep. McDowell Denies House Frobe Seeks To 'Control Thought' Washington, Feb. 3. Show business is being taken for "an in'tellectQal, ride" by those who ^ claim the %[ouse Un-American Ac-, tivities Committee is seeking to slant films and direct the content of entertainment. Rep. John McDowell (R., Pa.) charged today. McDowell, who helped to conduct the Holly- wood hearings here last. October and who iSf..:also chairman Of the Hous«, sub-committee to investigate fas- cism, made clear that .widespread rumors,' which have gone as far as predicting investigations of Broad-- way, were just "silly business." "The charge is made," said Mc- Dowell, "that the Committee on.Un-*. American Activities is attempting to 'control thought,' to 'bring the great (Continued on page. .60) See Good Chance Of 'Red'Trials in Switch Washington, Feb, 3. .. . Many local attorneys feel that th« "unfriendly" ' 10 defendants have a good chance of winning their re- quest that their trials for contempt of Congress be transferred to an- other jurisdiction, although such cases are normally handled her*; The petition for change of venti* was filed with the court last Friday (30) by Rooert W. Kennyy attorney for the 10, At the same time ha filed for dismissal of the Indict- ments. The request^ for a. shift of juris- diction was based . on the ground that a fair and impartial trial could not be conducted "in a locality where the activities of the Houss Committee, the Justice Department and the President's Loyalty Board have created prejudice, bias and in- timidation," Seek Funds for Indicted Hollywood, Feb, 3. Official .okay is expected by th* end Of the month from the Federal Deposit Insurance Corp, on applica- tion to establish a credit union to provide needy members with funds^ the exec board of the Screen Writer* Guild was told'last night (Monday); , Negotiations with former assistant U. S. attorney-general Thurman Ar- nold to rep indicted Guild members in civil suits against studios, grow- ing out of the recent Washington anti-red probe, are still being con- ducted. Decision is expected by 'the. weekend.