Variety (Mar 1948)

Wednesday, Mhim;1i 8, 1948 nC^TIJRES s PULL NO PUNCHES ON PK ABROAD Bcaster-Exhib Huddles on Coast May Blueprint National Theatre Tele Hollywood, March 2. -f Coast may set the national pattern tor theatre television. This is indi- cated in diselbsures here that the Theatre Owners of America will use current Coast activities in that phase as its national norm, with same to be discussed when the TOA board meets here next Tuesday (9) and Wednesday, at the Ambassador hotel. Statements came at tht initial meet- ing of the • television committee o£ the Southern California Theatres Assn.'s with ad agency and televi- ^bti. reps here last week, presumed to be Ihe only group making such moves in the country so far. The meeting between the two Ijroups here resulted in an exchange 61 ideas on the knotty theatre tele iiroblem, and the SCTOA's presenta-, tioii of its proposed code of practices. No committments came from either side but the attitude of the telecast- ers and agencies was Kenerally re- garded "as friendly and receptive among- exhibitor reps J. H, Nichol- son, S. Charles Lee and Earl Rice. , Among the theories' advanced were that the use of even 15 theatres from among the SCTOA's 500 could double present receiver audiences, and that given chains of theatres ■ could be worked out between 'tele-, <>asters. SCTOA revealed that many exhibs are ager to dip into tele, though cognizant of c,osts running from $1,500 to over $25,000.— Attendance will now relay the code proiJosals to higher-ups for-fur- ther discussion and decisions. In brief it proposes: Programs to be presented intact with commercials (Continued on page 18) Pair's Theatre TV Tab Checkup by exhibs of the cost of duplicating large-screen tele» vision equipment in the Para- mount theatre (N. Y.) indicates thai the tab would come to $38,000 for one house. Par, of course, spent considerably'more since it's been experimenting for the past 10 years. System em- ployed is a film intermediary one in which the video tube is filmed and the negative immedi- ately developed and projected in one operation. Scouting by exhibs has also turned up lact that four extra men are required for the opera- tion. It's not. ,:necessaryi how- ever, that they be highly skilled so the paychecks wouldn't run too high. Duplication could only be done with Par's okay since the company holds the patents covering their equipment. Fox Movietone's Tie With Television Riles At Least 1 Exhib Group Early trade indications that inde- pendent exliibitors would go along with the sale of Fox Movietonews to television as the lesser of two evils have apparently proved wrong. It . appears that several large indie • eirpuits are so riled at the contract »inked by Fox with NBC and Camel ■cigarets that they're attempting to cancel Movietonews out of their theatres. First reaction to the Fox-television deal came several weeks ago from Associated Theatre Owners of In- diana. AUied-afliliated group ex- pressed the opinion that selling the reel to tele would lessen its values to theatres. ATOI pointed out, how- ever, that the growth of tele was inevitable and that, if Fox didn't enter the business, the reels would be forthcoming from some outside source. Hence, the interests of in- die exhibs might best be protected (Continued on page 15i> $386 Hon Tax Total Spats '47 AsTopB.O.Year Washington, March 2. Final Federal tax figures covering business done in 1947 disclose that it was the alltime smash boxoffiice year, even though it did slough off at the end. The Federal general admissions tax for the 12 months was $386,789,- 735, of which about 80 to 85% is estimated to come from picture theatres. Remainder is made up of everything from legit and opera to the bite on dancehall and swimming pool tickets, and includes paid ad-, missions to all sports. Same terrific picture shows up in niteries, even though they were fall- ing off badly in the latter part of 1947. The 20% bite on tabs brought Uncle Sam $56,364,588.' This means that the public "poured more than $280,000,000 into nightclubs last year, The figures on January collections, which reflect the Decembet box- (Continued on ^ge 20) Mayer WaiMre If The Price (500G) Is Right Arthur Mayer, w.k. Rialto theatre <ip. took to the hills Monday (1) to .dutk a deluge of calls from exhibs anxious to buy his lease to the thea- tre. The dyke was lifted and the flood started by Walter Winchell, who Qii Sunday (29j advised his readeis lhat the er.stwhile merchant of menace was in tlie market to peddle his lease at a $50,000 figure. The low price quoted set off the ; chain reaction. Winchell, however, was off by one cipher. Mayer wants $500,000 or something in that neighborhood anyway for his seven ar id one-half year lease to the Rialto. He's been shopping around for a considerable stretch, having expressed a willing- ness to let the hoiise go "for a nice, round figure." but never pushing negotiations with a sense of imminency. , Rialto, several months back, switched from hnri;or thriller-dil- lers to foreign-lingo pix. On its "first try, "Panic" did just about as well as the average take of a menace pic at the tlieatre. Second entry, "Furia." according to Mayer, i.s doing considerably better, indicating that the new Jiolicy will pay off. mi VIA U S. GOVT. p|[|AS^'''^^^^i^'^®''<''^^^v^i^'^®>'^s- U.S. state Dept. ha.s junked its early postwar film policy of playing down America's abundance in a world ■ in need. Henceforth,- pix made and handled, by State's Inter- national Film Division, Office of Information & ;. Educational Ex- change, will portray America with its best foot forward. The change in stance, in effect, is an an.swer to frequent criticisms that U.S. films generally (and especially major company theatricals) stir up envy and hatred by showing an overflow- ing board to lands pressed by famine. » "We've adopted this new policy, and we're going to stick to it, let- ting the chips fall where they may," Hamilton MacFadden, associate chief of the film division, told Variety. "The Department now believes that films depicting America as a land of plenty are more truthful . and wiser in the long-range. "In'effect, what we are now doing is showing people overseas that our way of life has its rewards in a plenitude of goods," MacFadden said. "We're drawing no invidious comparisons witli other ways of life. 'The audiences can draw their own conclusions if they wish." MacFad^ den' conceded that during the war aiad for some time thereafter, pix made by the State Dept. tabooed the filming of the rosier aspects of American life. That attitude; un- der present worldwide conditions, (Continued on page 18) UA Stalls Own British Production An«eI11s Ovrn Blackout St. Louis, March 2. Louis K. Ansell, owner of nine St. Louis theatres and a Holly- wood producer on the side, can't show his own film- in his own film houses. His new picture, "Women in the Night," will be shown in a St, Louis first run house because of a prior com- mitment made by Film Classics, his releasing outlet. The Ansell theatres are' all second ruit bouses. Theatres Eventually Must Test Legally If Cinema Telecasts Tabu Run-in between NBC and RKO theatres which resulted from RKO's attempt to stage a large-screen tele- vision show using an NBC-televised broadcast has "film legalites digging ir>to their Blackstoncs. The tiff, crrj'oing up several weeks back when NBC banned the pickup by the RKO 58th Street theatre, is posing the. tough legal question of whether a broadcaster can nix a theatre or bring suit thereatlfer. Some exhib attorneys think that' NBC had no legal right to prevent the pickup and . they're . seeking precedent for their curbstone opinions. It's believed the stumper will be tested in the courts by some exhib, sooner or later. Understood, Theatre Owners of America is dig- ging into the question and will re- port on it at the unit's forthcoming Coast board meet March 9—10. Transatlantic's H Pic (Bergman) in England Alfred Hitchcock and Sidney Bernstein, .partners in the Transat- lantic Productions unit, head for England at the end of this month to start preparations for filming "Un- der Capricorn" there. Ingrid.Berg- man, who will star in the film, -will go over in May. It is expected to start shooting about June 1. With windup of "Rope," unit's initial entry, Hitchcock is currently working on the Coast on the script of "I Confess," which. will follow "Capricorn" on the production slate. It will be made in Hollywood next Winter. "Rope" and "Capricorn" will be released via Warner Bros., with no distribution plans set beyond that. "Confess" is being made from an adaptation, originally titled "Re- demptionj" by Louis Verneuil, from a 1902 play, "Our Two Consciences," written by Paul Anthelme. It has a Canadian background and there may be some location shooting in that country. ■ "Rope," Jame.s Stewart starrer in Technicolor, is to be released next October. Al Margolies, Transatlantic pub-ad chief, returned to New York from the ^Coast last week to start work on the campaign. New Briti^ Blow May Give K.O. To YankProlhUJL Confusion among the majors over the prospects of Yank production in England became, apparent this week when varying interpretations were made , of the latest ruling by the British treasury. The ukase, re- garded by most companies , as the final and crippling blow to V. S. filmmaking on the island, was inter- preted by these companies as a de- termination that all revenues from pix made in England must be re- turned to the homeland and sub- jected to the stringent regulations covering British; m9nies. United Artists, on the other Aand, felt that a scheme could still be worked which would enable it to produce on a sizable scale in Britain without returning all coin to that eountry. fSee UA's British production story herewith). Ruling is equally applicable to most majors think. That's a drastic switch from previous' treasury practice which exempted films made with dollars from the bring-home-the-take provision. As a result of this new ruling, Hal Wallis, Paramount's indie producer, called off planned production in Britain this spring, of "House of Mist." Wal- lis,- who's been enthusiastic on the (Continued on page 46) •f- Detailed . discussion of the advis- ability of producing films in Eng- land took up the major portion of the United Artists board meeting in New York yesterday (Tuesday )> and' Monday. Directors had.-a variety ot proposals before them for engaging in British filmmaking. Pinal decision on whether the com- pany will go ahead with any of the plans must await further informa- tion and will hinge in large measure on the success of current negotia- tions in London on ending the 75% tax. One of the principal objectives of the production plans under dis- cussion would be to get income out of Britain despite the tax. While postponing decision on its own British produQtio.n plans, tha UA board okayed a deal for- pro- duction of six pictures there by Le.s- , ter Cowan and Mary Pickford, with " each one to have an all-American cast. First will probably star the Marx Bros,, although a lensing data hasn't been set. Board at the same time okayed production of four either films. Top- ping the .Mst is James Nasser's "An Innocent Ailair,'^ starring Fred Mac* Murriay. UA is to receive a 25% in- terest in the film in return for $150,- 000 investment. Lloyd Bacon will di- rect. Also on the okayed list is "Con- (Continued on page 15) WB Greets Warter Sir Philip A. Warter, chairman of Associated British Pictures, Warner Bros, affiliate in Britain, formally met WB's homeoffice staff at special luncheon yesterday (Tuesday) at the Waldorf-Astoria, N. Y, Max Milder, Warner International prez, handled the introductions. Warter and Lady Warter entrain for the Coast Friday ,5) to meet Harry M, and Jack L. Warner. Meanwhile, Milder is slated to.leave Friday (5) for London. Redtape Stalled Rep s Issue; Now Viewed as a 'Blessing' MPAA Asks Govt. Aid In Balking Mex. Tariff Ys. American Pictures Washington, March 2. Motion Picture Assn. of America has formally requested tlie Gov- ernlheiit to oppose a request of Mex- ico that it be allowed WgK trade, barriers and taxes against Ui S. pictures, Mexico has asked certain revisions in its trade treaty with the U. S., some o£ which would increase the cost of exporting films and adver- tising accessories into Mexico. A brief, asking opposition, prepared by MPAA general counsel Sidney Schreiber, was filed With the Com- mittee on Reciprocity Information last Friday (27) by Theodore Smith ol the MPAA international depart- ment. Most ihteresting feature ot the brief was an explanation of the fat business Mexican pix are doing in the U. S„ without anything to pre'- vent the producers from taking home all their coin. 'DueF at Regular Scale Now "Duel in the Sun" opens its initial regular-price date at the Stanley, Philly, today (Wednesday), David O. Selznick pid started in release last April at upped-admission scale and has played all its engagements on that basis so far. Flock of other normal-price dates is now .set, with openings .scheduled in Jacksonville-, Tampa, Ft, Lauder- dale. Wilmington, Pittsburgh and In- dianapolis this week and'next. Insiders at Republic are viewing now as a "blessing in disguise" the fact that the company, through a technicality, was unable to float a $6,000,000 stock sale that prexy Her- bert J. Yates was promoting last spring. It's thought that had the flo- tation succeeded, Rep—^instead of being in the excellent financial shape it now fln4s itself—would be in fiscal hot water. " Stock plan was being arranged by Yates in order to tie up name play- ers, directors and producers to fur- ther his idea of making Rep a first- line company with a plentiful supply of top-budget pictures. By the time technicalities in the scheme were ironed out to meet requirements im- posed by the New York Stock Ex- change, the British 75% tax had hit and Hollywood execs — including Yates—had pretty much changed their opinion on heavy coin spending. Studio execs fear that liad the plan not run up against the Bxchange now with a backbreaking roster of costly names that might have spelled trouble. As things now stand, com- pany is well ahead of itself on pay- ing off its only loan—a $4,000,000 uft-' secured credit from the Continental Ban'-, N. Y., obtained as part of the scheme to up production budgets. Rep paid off $250,000 of the principal during the fiscal year ended last Oc- tober and has paid another $1,000,000 since then. It is Yates' plan to get it down to $1,500,000 by the end of 1948. i Scheme for the $6,000,000 stock flo- tation was to sell common and pre- ferred in a package. This was nixed by the N, Y. Exchange,- although it was oka.yed by the Securities Ex- change Commission. By the time the sales plan was rearranged to break up the package idea, and all neces- sary approvals had been obtained, the British debacle occurred, the market had taken a severe decline that made it inadvisable to float an issue and regulations, Rep would be Saddled i the whole idea was dropped. BORZAGFS $271,939 TOO RICH FOR REPUBUC Washington, March 2. Pile ot coin which Frank Borzag* , took from Republic in 1947 is evi-. dence why Rep called off its bank- rolling-relfeasing deal with the pro- ducer and' went back to cheaper films: Bofzage's paychecks f r o m Rep totalled $271,939 making him the top-paid exec in the company for the year.. ■ , Herbert J. Yates, Hep's prexy ana board chairman, came in second with $175,140. John Carroll, actor, mad? the third highest—$149,000 for the year. Some 45 of Rep's employees aild officers made over $20,000 from tha company during '47. Their aggregate pay was $1,890,051. Compensation to 22 officers and directors totalled $406,878. • ■ Drop Plan for Open Air Track for'49 Oscar Derby Hollywoodi March 2. Plans to hold neitt year's Oscar Derby in the HoWwood Bowl were dropped because of construction of the new freeway; which will te in full blast in that neighborhood in the spring and summer of 1949. Meanwhile the studios are aiming their important pictures for fall re- lease, instead of rearranging their _ schedules for an Awards deadline in June, Academy board is considering 1949 alternatives to the Shrine Audi- torium, where the Oscars wiU toe < presented this year.