Variety (Jul 1948)

Wednegday, |uly 14, IfMS SCHARYNo.2 TO MAYER AT M-G? Agreement Extended; Prod. Costs Enterprise is reported to have" received a limited extension of its loan agreeflient witii the Bank of America despite losses of some' thing around $2,000,000 on its ini- tial group of five pictures. Origi- nal revolving credit, which was supposed to have made available to the David Loew-Charles Einfeld unit up to $10,000,000, expired June 30. . Films made by Ent under the loan reportedly represented about $10,950,000 in negative cost, plus another $1,500,000 or thereabouts in prints and advertising. Their total income from domestic and foreign, when all returns are in-r- which will take some years—'is es- timated at $13,750^000. Subtracting a minimum 25% distribution fee from thatj the net is around $10^- 310,000; against the total costs of approximately $12,450,000. Bank of America is understood to have decided on continued co- operation with Enterprise in an endeavor to help it salvage Hie maximum possiWe out of the pic- tures and to assure getting its own money back. With this In view, new loan aii'eement is said to be very limited in character. Metro's Lineuti Tlie new financing is being used to complete "No Minor Vices," Which has finished shooting and is now in the final technical phases (Continued on page 12) • Nicholas M. Schenck (Pnudant of toaw's, lnt.i . weighs tht preblam Tele an Ad Medium^ Pix Freer; Where Will the Twain Meet? an tditorial'feature in UBIETY 'S Sd Annual Special RADIO-TELEVISION NUMBER Out This Month A DEAL Maybe No Schary Successor TdOd; Hughes Open-Door to All Indies C. p. Skouras Disclaims Top Pay Sweepstakes; Major Coin in Escrow Case of Charles P. Skouras, head of National Theatres, presents the puzzler of what makes the Treas- ury Dept. tick when it releases yearly publicity on salaries gar- nered by top figures in American industry. Skouras was billed last week by the revenuers as the top earner in the U. S. for 1946 with paychecks totalling $985,300. Actu- ally, the NT topper earned only his basic salary of $135,200 during that year which would place liim way down the list, it has been learned. As part of the settlement of the minority stockholders actions brought against him and his aides Frank (Rick) Ricketson, Jr., Elmer C. Rhoden and Harold J. Fitzgerald, Skouras waived all bonuses and extra compensation for 1946 and 1947. Amount passed by him totalled $1,500,000, leaving Skouras only the basic $135,200 for each year. Another $200,000 remains in 20th-Fox coffers because of a simi- lar waiver by Ricketson, Rhoden and Fitzgerald. Waiver won't become final until the compromise of the stockholder action receives judicial approval when it comes up for hearings be- fore the N. Y. supreme court Aug. 13. Nonetheless, the quartet of execs have not received any of the extra coin because 20th's board froze the compensation (a per centage of NT profits) when the stockliolder actions were first brought several years ago. Undoubtedly, with the Skouras defection^ top-paid figure in tlie industry during '46 was Louis B. Mayer, Metro production chief, who collected over $500,000 for the year. H'wood Would Like This Mexico City, July 6. Mayor Fernando Casas Aleman, of Mexico City, has issued a de- cree forgiving Mexican producers, studios and distributors the debts they oWe the municipal govern- ment and exempting them from city mercantile taxes. This leaves only federal imposts, which aren't many and not very heavy. Exemptees must be Mexicans and members in good standmg of the Assn. of Mexican Picture Pro- ducers arid Distributors. There's wojfd that the federal government ,also plans to aid the trade by par- doning it of coin due the ministry of finance and to free it oi national taxes. N.Y. Circuits Nix Dating Brit. Pix; Lack B.O. Sock British pix which have always found the going tough 'in th6 hin- terlands are now meeting an al- most equally harrowing experience in New York, their potentially best market. Neither Loew's nor RKO circuits, the " first-run chains in Gotham, have played an offering of J. Arthur Rank, chief British producer, since "Black, Narcissus" which hiade the rounds in January of tills year. Both circuits have shied away from Rank's product on the ground that the films offered lately are not strong enough to fit in the long end of the week. Number of Rank's films have been turned down on the short end while others were offered positions at the bottom of the dual bill. Those proffers have been nixed by Universal and Eagle Lion, Rank's U. S. distribs, because the booking would reisult in next to no money. Because of the peculiar dating system in New York, rejection of a film by RKO and Loew's generally (Continued on page 4) Hollywood, July 13. Metro prexy Nicholas M. Schenck made a hush-hush flying trip to the Coast last week to hud- dle top Metro execs^on a deal by which Dore Scharjrfformer RKO production veepee," may become No. 2 man on the M-G lot to pro- duction chief Louis B. Mayer. Schenck, in over the weekend, powwowed with Schary, Mayer, M-G, veepee-general counsel J. Robert Rubin and yeepee-treasurer Charles C. Moskowitz, plus Music Corp. of America prez Lou Was- serman, at the liome of Joe Schenck. Talks centered on tlie possibility of Schary taking charge of general production at. the stu- dio. During the week, meanwhile, the Metro execs held protracted confabs on renewed retrenchments at the studio in an effort to cut production costs to the bone. Stu- dio personnel would be drastically trimmed, which would give Schary an entirely new setup when and if he accepts the Metro offer/ Metro became interested in Schary last week when he and Mayer breakfasted at the studio. It was as a result of that confab that Schenck made his secret trip to the Coast. He returned to New York after the huddles. It's understood that the deal with Schary would call for him (Continued on page 47) ZANUCK'S WAR DEPT. MISSION INTO GERMANY Paris, July 13. Darryl F. Zanuck, 20th-Fox pro- duction chief currently making a tour of Eui-ope, will also visit Ger- many on a mission for the U. S. War Department. During the last war, he held the rank of colonel in the Army's film division. Due in London on Aug. 12, Zan- uck will be feted at an all-industry luncheon sponsored by the Cine- matograph Exhibitors Assn., the Kinematograph Renters Society and tlie British Film Producers Assn. ERIC JOHNSTON BACK IN D.C. ON FILM PROBLEMS Washington, July 13.' Eric Johnston, who has been va^ cationing at his home in Spokane, Wash,, for the past 10 days, is due back in Washington, D. C., tomoi>' row (Thursday) for- a meeting of the advisory council of the Eco- nomic Cooperation Administration (Marshall plan agency), to which he was recently named. It is expected that with the re^ turn to the east of the Motion Picture Assn, of America prexy, furi:her meetings of company' top- pers will be set to discuss the Brit- ish quota, the Anglo-U. S. films agreement and J. Arthur Rank's playing time restrictions. No meet- ings have been held since July 1. Next session will hear a firsthand report from Jolm McCarthy, asso- ciate chief of the MPAAA interna- tional division, who got back last week from London. Paul Raibourii fPcframovnt Te/evhi'on Vtopae) opinM that ''Theatre TV AW Awaits Only Accept* once by the Exhibs . an editorial ftalur* In 3d AiiHua] SpeeSaS RADIO-TELEVISION NUMBER Out This Month Jessel's New 20tli Deal Includes Fisher Bio George Jessel's new S^year deal as a producer with 20th Century- Fox eliminates the necessity of his six-month hiatuses to do a little personal "cleaning-up" on personals, such as those $7,500 and $10,000 per-week engagements in the New York and Florida niteries last year. Darryl Zanuck, 20th- Fox production boss, found such time-out provisos untenable and even though Jessel might be be- tween-pictures, ■ the studio chief prefers he (Jessel) be always on the lot. As part of this readjustment, an indie deal which the producer had simmering with Eagle Lion for a filmization of the Fred Fisher saga now becomes a 20th-Fox property. It's titled "Oh, You Beautiful Doll," from one of Fisher's best known songs. Jessel has a flock of other show - (Continued on page 47) Indie Bankrollers ShyfromW Releasing Delays Multi-rmillion^doUar New York syndicate, which had planned to go into large-scale second-money financing of indie filmmaking, has all but dropped the idea, according to Stanlfey A. Katcher, attorney for the would-be angels. Katcher said an investigatioit of the indie pro- duction field had indicated the time lag was "so stupidly long" be- fore a picture's release that prom- ised returns on investment weren't sufficient to malce the project worthwhile. ■ Katcher reflently returned to New York from the Coast, where he'spoke with producers, bankers, distrib execs, rental lots and others who have an interest in indie pro- duction. As a result of the survey he said, "the idea isn't dead, but it's awfully sick." Attorney represents a group which has been operating for some time in the field of commercial financing. Group was looking for additional outlets for its coin and tlius commissioned its counsel to investigate the film field. Its New York operation is similar to that of Ideal Factoring, headed by Martin Hersh, which for a while was high- ly active in film financing, but in the past year has found its loans (Continued on page 47) Hollywood, July 13. With successor of Dore Schary at the RKO lot to remain undecid-. ed until Oct. 1, Howard Hughes, company's controlling stockholder, . opened the door wide for top qual- ity indie producers to release through RKO. Hughes, at a board of directors' meeting over the weekend, said the company will give -Indie product the same selling attention it accord's own pix, IVs' unknown whether Hughes intends to partially finance the indies but all physical facilities of studio will be granted theni. New exec producer to replace Schary will probably stay up in the air until Oct. 1 when the produce tion schedule will be arranged. Hughes is now going ovef story properties, deciding which of the inventory should be made within the year.. It's also likely he'll use several stories he owned as an in- dependent producer with ■ view of utilizing talent he .has contracted including Jane Itussell, Jack Beutel and others. RKO dfrectors, headed by exec vice-prexy Ned Depinet, leave to- day (Tues.) for the east following final meetings here and will as- semble again at a stockholders meeting Aug. 31 in New York. Ses- sion on the Coast was mostly de- voted to investigation of what economies could be eifected< There's a slight chance that Schary's successor may be nanied at the next stoclcholders meeting. Malcolm Kingsberg, head of RKO's theatre operations, leaves, for San Francisco today after briefing Hughes on circuit ntatteis. He'll return east from Frisco. National Baxoffice Survey Heat Wave Clips Post-Holiday Trade—*Waltz,' 'Parade,' 'Apache,' 'Island,' 'Street' Week's Big Six Torrid weather, which is clip- ping grosses in many key cities cov- ered by Variety this week, is fail- ing to make much dent on the front-running charaip, "Emperor Waltz" (Par). Despite soaring temperaturesj the Bing Crosby- Joan Fontaine starrer should wind up week with .$379,000 in main keys, not far from sma.sh total of preceding stanza. , Far in the rear in actual coin but hinting real future possibilities is "Easter Parade" (M-'G), which is copping second position in the weekly boxoffice derby. In three keys along the Atlantic seaboard, where sweltering weather is worst, it shapes fine to great. Outstand- ing biz is being done by N.Y. Loew's State, with great second stanza after record opener. Third place goes to "Fuller Brush Man" (Col), moving up after being in the chips for three suc- cessive weeks. "Ft. Apache" (RKO) continues to register big trade, making third week it has finished fourth or higher in national standings. • . Strong fifth position winner is "On Island With You" (M-G), with big to fancy grosses in six keys. "Street With No Name" (20th), while getting comparatively high total of coin, is not showing socko results in several cities now playing. Remainder of business is widely cut up, with "Canon City" (EL), "Up in Central Park" (U), ."Ro- mance High Seas" (WB), "Regards to Broadway" (20th) and "Coroner Creek" (Col), best of runner-up films in that' order. "Canon,"' in- cidentally, is showing high prom- ise, being sock on three-tlieatre Denver preem and surprisingly strong in N.Y. despite heat wave. "Paradine Case" (SRO), just get- ting started, shapes sock in one key and nice in a second one. "Best Years" (RKO), now out on pop- scale runs, will show sturdy tak- ings in two cities, strong trade in two others and fine biz in a fifth. "Dream Girl" (Par) looks strictly no dice in L.A. but rates okay ses- sion in Washington, D.Q. "Gallant Legion" (Rep) looks fine in latter city. "Foreign *Aftair" (Par), which preemed at N.Y. Paramount a week ago, stilt is big in second frame. Light comedy, which got a terrific word-of-mouth buildup after a fine advance, shapes as a real comer. "Feudin," Fightin'" (U) teed off nicely in Omaha. "Raw Deal" (EL), doing well in N.Y., is not big in St, Louis. "Hat- ter's Castle" (Par) is okay in Minneapolis. (Complete Boxoffice Reports 'on Pages 8-9) Arthur Freed's N.Y. Huddle Metro producer Arthur' Freed is scheduled to arrive in New York from the Coast some time this week for huddles with Betty Com- den and Adolph Green, who scripted Freed's next production, "The Barkleys of Broadway." He'll be accompanied by danc* director Robert Alton, who set the dance routines for VteeA'a "Easter Parade." Trada Marie Registered FOUNDED BY SIMB SII^VBRMAN FilbUslied Weekly by VABIKXY, Inc. 81(1 Silverman, Preaiaent ISl West *(lth St., New Torli ID, N. T. Holiywood 28 6511 Yueoa Street WaflliiiiRton 4 1293 National Frem Building Chlcagn 1 360 No. MIchiKan Ave. . liOndon WGS S St. Martin'K Pi., Trafalear Bq. 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