Variety (Oct 1948)

Wednesday, October 20, 1948 PtCTIIRKS 331 FEATURES DUE IN 1948-49 '47-'48 Season Release Totals Features Westerns Reissues British ' Total Columbia 35 15 ,, 50 Eagle Lion 28 12 7 5 52 Metro 27 .4 31 Monogram .',.32 16 .. 48 Paramount 23' 1 1 * 25 Republic 27 20 ,. . 47 RKO 28 ,7 3 1 39 20lh-Fox' 34 12 4 50 United Artists ....^ 24 6 .. 30 Universal ..., 27 .. 9 36 Warners 21 10 1 32 808 76 37 21 440 Johnston Spokesmen Deride Talk MPAA bcks U. S. Gloy Backing Washington, Oct. 19. 4 In brusliing oit what the Eric Johnston office here suspects as "snide craclis: from.the foreign de- partments ot the various iilm cont' panics," spokesmen for tlie presi- dent of the Motion Picture Assn. of America deride the suggestion that they haven't State Dept. sup- port around the globe. Johnsonites aver that the company presidents | know iuU well what a job the MP^VA IS doing, and it might be ^ a good idea for them "to. take their ' foreign managers into confidence." | The MPAA avers that it has ' analyzed the picture business into thi^e broad categories; (11 Struc- tural; (2) financial; (3) tech- nological. "Structural"^ embraces costs, le- gal; .producer-distributor-exhibitor relationships,- etc. "Financiai!' em- braces revenues, and that includes declining revenueb abroad. "Tech- nological" deals with the scientific advances w'ithin, and influences on, the. picture business. : Into this, category fall any scientific enter- tainment competition, such as ra- dio and television. Night spots, with their scientifically developed brilliant lighting, is also a tech- nological process. And, of course, night sports now loom as anotlier factor, cutting into tlie; filiiv box- olfice dollar. It is generally agreed that pix heretofore enjoyed a monopoly on the greatest segment of that .anuLsenient dollar. Now there is television, automobiles, night bas.e- (Continued on page 15)"' Hat Request in Reverse Minneapolis, Oct. 19- Theatre manager near here solved the problem of getting his femine patrons to remove tlieir hats by using a switch on the old.admonition: Instead of using the usual "Please re- move your hats" trailers, his new sign read: "Elderly Ladies Need Not Go To the Trouble of Removing Their Hats." It brouglit results. Multiplicity Of Pix Sales Drives Riles Exhibitors SCHARY EAST NOV. 15 FOR M-G H.O. MEETING Metro production chief Dore Schary. after, sevei'al postpone- ments on his proposed trip to the homeoiliee, is now» scheduled to visit New York about the middle of November. Sales veepee William . F. Hodgers; .who is planning a trip to the studios at the same lime, will stay over a few days after Schary arrives in order to sit in on the liomeoll'ice exec huddles. Studio chief Louis B. Mayor ac- companied by studio pubhcily di- ; rector Howard Strickling. mean- ^yhile, returned to the Coast over the weekend after 10 days of con- tabs with various li.o. officials, Ma.\ er, proxy Nicholas M. Schenck and veepee-trpasurer Charles C. Moskowitz lined up production budgets for, the new season's pro- gram. One of the chief points they established, was the decision to re- tain a flexible budget, depending on selection of scripts as the best method of keeping production costs to a minimum. » . , - rSchary's proposed visit is in line with his announced policy of keep- ing in close, personal contact with the liomeoffice. He and Rodgers will discuss distribution plans for forthcoming product,with Rodgers also giving him a line on what price pictures the present market can afford. Schary plans to visit the homeoffice three or four times yearly, .spacing his trips in between those of Mayer. He will be accom- panied east by his aide, Armand ' ,l>eutsch.:-' ■ Rodgers. while on the Coast, will look over the new M-G pictures whicli iiave been completed and (Continued on page 15) Number of film sales drives cur- rently being pushed by major diSr tributors has indie exhibitors tlirougliout. the country alarmed. General feeling among the indies is that the only purpose of the drives is to build the ego of those in w'hose lienor they are held and to hit the exhibs over the head ior more playdates on films that don't, rate the breaks. Universal currently is conduct- ing a drive to- honor sales veepee William A, Scully and 20th-Fox is in the middle ot its Spyros Skouras drive, honoring the company Rrexy's 3oth jear in the business. Republic has a drive in honor of sales veepee James R. Grainger and National Screen is honoiing sales manager George Dembow. Indie exhibs aver the drives fall (Continued on page*^ 20) iimucERsyp LUST lEIli'S 301 E.xhibs won't be harried with that -old product shortage bugaboo in the '48-'49 season. A survey showsi that Hollywood's 11 largest film companies' are contemplating a iminimum of 331 feature releases^ Total represents a boost of 25 pic- ture.s over the 306 feature mark the same producing firms rolled: up in the preceding selling season. Pointing up the fact that release schedules are being upped Is the basic need of tlieatremen' for more films since product no longer has the b.o. pulling power for extended holdovers at the first runs; They're playing 'em off faster at the delux- ers, and a widespread reduction of nabe clearances is a secondary rea- son for a. greater supply of pix. . . Warners will have a flexible schedule this season with at least 24 features plus six or eight .reis-; sues. Its slate is somewhat above '47-'48 which saw 21 features see- ing distribution along with 10 re-; issues and one British import. While Metro's policy is usually to announce releases only : four I months ahead, a company spokes- man feels that upcoming product will probably va ry somewhere be- tween 30 and 36" features. RKO . has no definite slate an- nounced: However, it was empbar sized at a sales conclave earlier in the year that some 23 screenplays wrere in preparation and coupled- with aJusty backlog of 17 pix, it's safe to assume that the company's; releases for the '48-'49 selling sea- son might easily eclipse, the 28 features in the preceding 12^ months. A probable goal of 32 features was announced by 20th-Fox for this season at last month's national sales convention -in .Hollywood. (Continued on pdge 20) Govt. Submits Plans to Slice Schine To Dozen Theatres From Current 175 Jack Warner's 1^00 WB Shares to UJA Washington, Oct. 19 .Tack L. Warner, veepee in charge of production at Warner Bros.^has made anolhei' substantia! stock gift to the United Jewish Appeal fund. Warner has turned over a block of 1,500 sliares of his company's com^ mon stock to UJA in one of a series ot similar donations. At the same time, production topper purchased 10,000 additional shares of common on the market 1o bring his total WB holdings to 426,- 500 shares in his own name and another 21,500 in trust for him Harry M. Warner, company prexy, has -gifted 1,200 shares of Warners common to an undisclosed beneficiary. He now holds 283,150 Sliares of common directly, and An- other 16,000 in trust. Daniel M. Sheaffcr, member of Universal's board, has sold 860 shares of U common. Sheaffei- now owfts 1,507 shares of company slock; , Chi Lease Hearing Oct. 27 Cliicago, Oct. 19. Chi federal appeals court set Oct 27 lor heai ings on Metropnlis Theatre Co suit to invalidate the 97-\ear Uaf.e on land which the Essannc^s Oiiental theatre is lo- :caledv . .■ ■ ■ ■ Metropolis is asking $2,000,000. claiming lo-'^e was obtained fraud- ulently. Anglo-U. S. Film Council to Meet In N.Y. Early 1 London, Oct. 19. . The Anglo-American film Coun- cil will convene in New York early next year under an agreement reached between Eric Johnston, Motion Picture Assn. of America prexy, and, J: Arthur Rank; 'top British Industryitej Johnston;; dis- closed before flying home over the weekend. The-, council, created in 1946 but never yet assembled, will be used in an attempt to better the rapidly worsening Anglo-American film relations, it's understood. . Agreement to call the meet was made after Rank had huddled with; Sir Alexander Korda and Sir Henry French, other two British members oi the council, and then met with Johnston. The agenda will not be set until a final date is fixed but there is no question that Rank's recently aii'ed charges of discrimination in the U.S; against. British films will be treated fully. Before taking off, 'Johnston denied the e.xistence; of an Ameri- can phantom quota directed against Anglo imports. Good films will always find a ready market in the U.S, he claimed, MPA.A. picx\ cited the unprecedented success of: ■'Hamlet" as an example, stating it has advance sales two years ahead. He al'o referred to "Great Expec- tations" as a film whicii exceeded Rank's expectations in the U.S. and "Henry V" which earned more Ifi America than in England. Johnston disclosed that he will return to London within a few months when the second - year. I quota percentage comes up : for I decision in Parliament, While I denying that he discussed the quota during his current^ tour, wMPAAer condemned quotas as ; more harmful than helpful.; He claimed the more successiul the . quota becomes in England, the j more countries wriil follow suit. Everybody Into the Act Announcement by the five hewsreels last week that they intended to tack on to two of their issues nine-minute film; biogs of President Harry Tru- man and Thomas E. Dewey ii already having, its expected ^ chain reaction. Norman Thom- as, perennial candidate for the . Socialist 'party, is now asking the reels for equivalent: space for his own campaign, Thomas. contends that the. film indus- try should be held to the same rule of conduct: as radio which must afford all candidates free ; air-time ■ if it gives any that privilege. It's thought likely that both Henry Wallace and J. Strom ' Thurmond, Dixiecrat entry, . will push similar; requests.. ; UABoardtoAct On Hughes 3-Pic And Video Deals United Artists: prexy Grad Sears will seek final approval from the UA board at a liomeolTice meeting day (Wed.) of the;; .deal whereby Howard Hughes :is to put up sec- ond money financing for a trio ol pix to be produced for UA in re- turn for recovering three films he originally turned out for that com- pany. UA exec veepee Arthur W. Kelly, who returned over the; weekend from England, will also report to the board on the booking deals he set up with various British circuits for new UA product. At the same time, the l>oard is to act on the proposed distribution fee which UA hopes to charge: indie pro- ducers for handling their product for release to television broad- casters. Board has already okayed establishment of the new telefilm department; but has yet to; grant approval to the distrib details. Sears set the deal with Hughes, new head man at RKO, In early September but has since visited the Coast to work out further details. Plan; called for Hughes to invest some $600,000 to $730,000, depend- ing on the three pix chosen, on (Continued on page 15) ; Washington, Oct. 19. A plan to whittle down th* Schine circuit—largest independ- ■ ent chain in the U. S.—from about 175 theatres to approximately ■ dozen was submitted over the week- end to the U, S. court for the west- ern district of New York by th« Government. The anti-trust divi- sion also asked the court to pernia« ; nently. enjoin the Schine theatre« -. from a number of practices "harm- ful" to smaller independent com- petitors. Last May the U. S. Supreme Court found the Schine circuit in violation of the Sherman Act. It ■ did not agree, however, with th« program of the, trial court for cor- recting the monopolies,; and set forth principles which would lead'; to more drastic action. Then it re- manded the case back to the New York court for further considera- tion of the detailed issues^ .; In its original anti^trust action against Schine, ,the Justice Depart- ment's Anti-trust ..Division asked that Schine be cut down to about 40 or 45 theatres. The; plan of th» U. S. district court, which th»- Supreme Court apparently felt did; not-go far enough, would have left r Schine with 80 to 90 theatres. Commenting on the severity ot . its recommendations, the Justice . Department brief declared in part: "If it be said that this provision ' would require divestiture of most of Schine's theatres, we think th« answer must be that this provision merely measures the scope of Schine's i illegal; acquisitions. That scope was withln.the control of th« defendants. The bt-eadth Of their- illegal acquisitions has enabled them for many years to be th«; largest independent circuit in th« country, with an increase since; 1928 of 56 closed towns. That bl'eadth is necessarily the measure of its own undoing." ; Other Recommendations; , In addition to the divestiture, ; the Anti-Trust Division recom^ mended the following injunctioni for the trial court: 1, Bar Schine for five years from licensing more than 60,% of - the ; features released by the majors for; (Continued on page 16) U Stockholder's Suit Dismissed Against 2 J. Cheever :(Cowdin, Universal's board chairman, last week was disr missed as a defendant In a minor- ity stockholder suil brought against him and three other Universal di- rectors in N Y federal court by Stephen Truncale; Action'^nvolved sale and purchase of company stock under the Securities & Ex- change Commission Act ot 1934, Plaintiff claimed Cowdin profited by the sale of stock option war- rants handed; him in 1945 bjf U as an inducement tO; ink * s^venryear contract. In tossing out Truneale's action. Federal Judge Harold Medina firanted a motion made by Cow- din's counsel, H. G. Pickering, for a summary judgment dismissing the complaint. U's board chairman contended that he disposed of his option siiares to charity and the court agreed, ruling these dona- tions were bona fide giveaways. "I find these gifts do not constitute sales," the jurist held,; A similar action brought by Trun- cale against Universal veepee and general counsel Charles D. Prutz- man was also dismissed .several months ago. However, complaints are still pending against prexy Nate J. Blumberg, William A. Scully, veepee in charge ;ot sales and distribution, and Cliff. Work, former director who resigned in 1948. OHIO INDIES IRED BY DOS' B.O. QUOTES ^ Irate at David O. Selznick for publicizing grosses earned by Ills ^ pictures in their theatres, Inde- i pendent Theatre Owners of Ohio I are demanding that all future con-- ! tracts with the Selznick Releasing rOrganization contain a;clause tliat 1 the company will not throw grossea ' 1 open to the public. I Indie organization claims that gRO last month; circularized a let- ; ter to exhibs throughout the coun?-; try, whicli bragged about tiie ' grossc"; chalked up by various SeJz- i nick pix in small towns in KansaSi I Indiana, New Jersey, Pennsylvania, Wisconsin,: Iowa and New York. Group protested to Selznick in • wire, which read, "Your company's circular letter signed by Neil Ag-; .new reaches an absolute low in op-^ dinary business ethics, and shows' your complete lack of respect for the confidential relationsliip; be- tween you and your customers.'' Now, according to ITOO, Sell- nick has not yet replied to the wire, indicating he doesn't care "about small town exhibitors (except, of course, lor" the money he can get ! out of them), or his sense of- husi- i ness decency is extremely low." ; If SRO won't kick through with ' that clause in:'all future contracts,, j the indies, aver, they'll band to- I gether to boycott all future Seli;-' nick products. [Agnew exited Sclif- nick several months ago.l Cdl.'S EEGTILAR BIVVY ' Columbia has declared a regular 'quarterly dividend o£-$1.06*4, per I share on $4.23 cumulative pre- Jferred stocks , s ' Dividend is payable Nov. 15 t}*.- ! .itockholders of record Nov. L