Variety (Nov 1948)

PICTVBE8. Wednesflay, November 8, 194S Decree Makes ASCAP Revampiiig Mandatory If It Wants Exlub Revenue Eat and See, Too Los Angeles, Nov. 2. While ordinary film houses are equipped with popcorn and candy bars, the new Rubl- doux Drive-In theatre at River' side features a Snac'n-Vue Room, in which customers can eat 'Whrle gandering pictures. Theatre, which opens this week, will accommodate 730 cars and will operate all year round, regardless of weather. Smart lawyens may yet pull the* American Society of Composers, Authors & Publishers out of the hole dug for it last week by the latest decision of Judge Vincent T. Leibell in N. Y. Federal court in the exhibitors' monopoly action, t)ut industry consensus is that it will have to be an entirely changed ..organization with drastically re- vised methods of doing business. Any such revolution, however, must •wait final outcome of the suit since both ASCAP and the 160 suing exhibs, headed by circuit operator Harry Brandt, have Indicated cross- . appealis following the ruling, In the interim, it is likely that the Federal courts will grant a stay of the injunction against, the Society. If so, ASCAP undoubtedly will have to post a whacking sized vbond to recoup exhib payments.; during the stretch from appeal to decision. Meanwhile, the early impact of t h e decision which restrained ASCAP and its members from col- lecting theatre seat taxes had vary- ing impacts and reaction on dif- ferent branches of the industry. These were: 1. Against ASCAP, a possibly fatal blow to its theatre revenues. 2. For all indie exhibs, elimina- tion, at least temporarily, of the need of meeting ASCAP's levy for performing; rights on films. Also, the possibility, if the Brandt ap- peal is upheld, of recovering pay- inients made to the Society in past years. . , ■ 3. For affiliated exhibs, the same elimination of seat taxes. However, the saving is tempered by the fact that the parent companies own subsid music publishing concerns Which are "members of ASCAP and, therefore, suffer diminished reven- ues. 4. As; to exhib groups, w h i I e both National Allied and the In- dependent Theatre .Owners Assn., the Brandt unit, have flatly ad- vised their members to halt pay-- ments. Theatre Owners of America Friday (29) declared it still believes the question of seat taxes is in doubt. Following an executive com- mittee meeting, TOA told: its mem- bers to continue depositing ASCAP fees in escrow until all appeals are taken. Elements of the film industry. Including TOA, believe that ASCAP can be reorganized, into a collection agency and operate ■ With J. Arthur Rank's "Hamlet legally. As an added condition, the building up grosses on strong re- Bociety would be forced to sell | views and word-of-moufn m a licenses on a per-piece basis rather *■ Uppert's 4 for SG Lensed at Republic Hollywood, Nov. 2. Robert L. Lippert will produce !four pictures on the Republic lot for Screen Guild release, starting this week, with the understanding that he will make 24 more if the present arrangement works out satisfactorily. First of the four is ^Rolling Cargo," rolling Thursday. OtherS; are "1 Shot Jesse James," Nov. 11; "Omoo," Dec. 1, and "Rirofire," Dec. 13. Columbia s Strong Next Yr. s Lineup Buttressed by its tieups with several indie producers, Columbia Pictures is staking out the next 12 months as an important earning period with 14 top budget films to be released or produced. In addi-- tion, another seven top pictures i mission which would kill the radio currently in release will partially' jackpot shows would be the "big- carry over into the next period to .^If Bill Brandt Likens Radio's Giveaways To Theatres' Banko Blight Rash of giveaway shows that have plagued the radio industry during the last year are a carbon copy of the bank nights that in' fested film theatres prior to the war, according to William Bi-andt, exec of the Brandt circuit, N. Y. Sounding, a ■ warning to radio, Brandt pointed out that theatre giveaways had practically run the entire film industry into the ground before a combination of circumstances, climaxed by the war, finally buried them. He be- lieves that the pending action of the Federal Communications Comr build the company's 1949 pros^ pects; Col's roster of pix for next year will also Include 27 "bread- and-butter" horse operas; and ad- venture films plus five serials and numerous shorts.: Major releases for the next per rlod will include "Knock On Any Door," Humphrey Bogart starrer now in production under the: San- tana banner; "Rough Sketch," Jennifer Jones-John Garfield star- rer; ''The Man From Colorado," Technicolor film starring Glenn Ford and William Holden, and "The Gallant Blade," Larry Parks starrer currently in a pre-release run. Top upcoming productions include "The Big Jump," with George Raft; "Wild BiU Doolin," Starring Randolph Scott, and "Miss Grant Takes Richmond," Lucille Ball vehicle. 'HAMLET' INTO NEGRO CINEMAS ALSO AT $2.40 than the present method of grant Ing blanket licenses. Should this change be successfully effected, the overall cost of performing rights to theatres would undoubtedly climb materially. To back their contentioni they (Continued on page 19) HUNTZ HALL ADDS TO has ever had. According to Brandt, theatre bank, nights were started: during the depression by a neighborhood exhibitor who, in desperation^ of- fered a $50 door prize to lure customers.: Then the vicious circle started, with competing nabe houses, forced / to offer similar; prizes, gradually pushing the jack-, pots higher. Big circuits, even, those running first run product/ were forced into the mess, until eventually almost every theatre was giving away prizes. Taking hold just like a. cancerous growth, Brandt said, the spiraling prizes started eating up -all the profits until: nobody was making any money and everybody in the in-: dustry, including studio producers,; were working only; for the; give- aways; ■ . , Even worse, Brandt pointed out, was the fact that bank nights be^: gan driving many customers, who expected to patronize theatres only for entertainment, away from the- atres. Exact situation is now tak- ing hold of the radio industry, he 1 pointed out, with many former I listeners now bypassing radio be- ! cause of what he termed the ''non- entertaining" giveaways. Radio giveaways started the same way; building gradually from the smaller programs to' the present. "Stop the Music jackpots, totaling as. much as $30,000. There's no limit to the amount of money that can be given 'Wrong Number/ Teggy,' 'Belinda/ Julia/ Xarmeii' 'Rope' Pace Oct. B.O. October's Big 10 1. "Sorry, Wrong Number" (Par). 2. "Apartment Peggy" (20th). 3. "Johnny Belinda" (WB). 4. "J u 1 1 a Misbehaves" (M-G). 5. "Loves of Carmen" (Col). 6. "Rope" (WB). 7. "Red River" (UAL 8. "Rachel Stranger" (RKO). 9 "Good .Sam" (RKO). 10. "Cry of City" (20th). number of key runs; Universal's sales execs have now set an ex- panded booking policy for the film on the theory :"*that we; can road- show It anywhere in America." With that in mind, the American distrib of the British-made opus, is currently negotiatiiig to open i away under the present system, the pic in Negro houses both in , Brandt declared, so that the same cancer is now :spreading its tumorous growth over radio. : ■ Filni business was cheapened -by bank: nights and many theatres, which ; couldn't stand; the drain, died in the sliUffle, Same thing is now happening in radio. Brandt declared, and he predicted that Washington and e I s e where throughout the counti-y. In no place will the pic play at WOOD HATE PARADE ^^t'vf^^ nabe nouses, according to Maurice With Hollywood film personali- 1 Bergman, U's eastern ad-pub chief, ties snagging increasingly unsym- 1 Company has set a three-vear pe- pathetic press treatment for their 1 nod for roadshows Bergman escapades, rumblings for a more ' added, before pulling the film for positive and aggressive type of , general release. He believes it can industry public relations program play jn 1,500 situations during this are being sounded by film execu- stretch ° , 1 m^e thIn%nvTi^nfi'e?se Ttlifs' ^"'^ ^^^n^^'^^ Potential' «me' il^T ta^aooUng^outfit ^li^L^^e'36^ mont"hr";f^?'"'''''° . whirh would be on call at all l.mes "^r*^^- " "9,1^1^ . to smooth over the situation if any hvT.r „ ^Tl^^ l-^u I •«nr» .s^noo^ peleh<! ee\ Intn °^ ""^ """^ profitable British ceieos get Into ^i,,^ ^^^^ ^j^^ American market. Record holder at present 's another Shakespearian filmiza- tion. ■ up $ far. Study Amus. Tax To State, Cities ' Washington) Nov. 2, A plan to turn all amusement taxation over to the states and cit- ies may be recommended by Con- gress by the Hoover Commission studying reorganization of the Fed- eral departments and agencies. This would mean that Congress would terminate its 20% bite on admissions and; on nightclub checks surrendering that entire field to the states and their sub- divisions. Currently 28 states have such taxes .which yielded them a total of only $14,216,000 during fiscal 1947. In addition, a number of cities have such levies, some run- ning >as high as 109ci, as in Phila- delphia. Up to noWi however, this form of taxation has yielded only small potatoes to the cities and states. It thejr should get the field, to themselves," .however, they ob-. viously could make a good thing of. it, as: the Federal Government ■. has been doing, ■The surrender would be in keep- ing with a suggestion of the Con- ference of Governors that the states and Federal government each stake outran exclusive field of taxation for itself, with certain of the excises being turned over v to the states. • Under the scheme, Uncle Sam would surrender his i right to all excises except two of the income-yielding big three—^-to- bacco and liquor. 'The government would drop its gasoline.tax along with the other excises. A1.S0 re-, turned to the States would be the; estate taxes. In exchange, however, the states would have to drop certain forms, of. taxation which wouid become exclusively Federal, and there is the rub. Without such cooperation from all 48 states, the deal to switch the amusement tax would not take place. The-states would have to give up their income taxes. ■♦■ "Sorry, Wrong. Number" (Par) rang the boxoffice hell nationally in October, according to reports from Variety correspondents in 22; key cities. The Burt Lancaster- Barbara Stanwyck starrer crashed through for nearly $800,000 total take in the past month despite the general pre-election decline, easily taking first place in the monthly; Variety survey. Picture was ninth; in September, month when it was just starting out in the keys. "Number" was substantially: ahead of "Apartment for Peggy" (20th), which started out slowly., despite high praise from the erix. Latter put on a burst of strength near thedose of the month to take over second place. "Johnny Be- linda" (WB) was not far behind in third position, taking first place coin one week and Uniting second another in .the four^week compiW' tion. i "Julia Misbehaves" (M-G), on the wings of clever advertising, copped' fourth; spot. Picture ran four weeks;' at the N. Y. Music Hall, starting off with a smash $160,000, one of big- ger weeks at the Hall. VLoves of; Carmen" (Col) landed in fifth; place. Another Warner picture; "Rope,? was a strong sixth place winner, reaping plenty of critical acclaim as well as lots of coin. "Red River''.; j (UA) measured up to: its promise . I of the previous month to-wind up , in seventh, getting third place ' money 'one week and fourth an-. other. "Rachel and Stranger" (RKO),: which; was fourth nationally in September, had sufficient steam to take eighth place last month. "Good Sam" (RKO), second place winner in September, landed ninth I position in the boxofflce sweep- stakes of October. "Cry of City" (20th),' which was inclined to be spotty early in the month, came, through with eno'ugh coin late in October to :.grab lOth position. ''Runners-Up' Other stout entries only showed enough stamina to reach runner-up category, offish trend of October; keeping them: from getting; impor- tant coin. This classification was (Continued on page 19) television too would eventually fall piey to the giveaway illness unless the Federal Communications Com- mission steps in immediately and kills the plague. more screen trouble. These industryites believe it's practically impossible for the ,<;tu- dios to keep an eagle: eye on tlieir j Stars at. all times, to make certain .; they stay out of trouble. ' They ; recognize the human element and the fact anybody from Hollywood, I being so much in the public eye, | will always attract more attention, i Metro's Benjamin Thau and Mounting tide of anti-Hollywood Spencer Tracy arrived in New CONTE'S20TH FACTORS TWO PLAYS IN 7 YEARS ..■ ' ■ Hollywood, Nov. 2:;.,,;, i Richard Conte's new contract ■.rj.v—. ir,. i.t , I ^v'*'^ 20th-Fox calls for seven years, ii 7<frt S,y ' t'le three of which are with- $1,750,000 in distrib rentals so out options, with the privilege of taking time out for a Broadway legiter at any titne during^ that period. , During the other four years he will be permitted another eastern stage venture, with a heavy boost in pay. ::; ■'■;; , Conte's next film chore is "Hard co-starring with Valen- Thau, Tracy in N. Y. crl'^cism was lent further fuel this Y<""k from the Coast Monday (1). , week by the arrest on the Coast of Thau will remain for at least two i Bargain actor Huntz Hall (one of the Dead ' weeks for huddles with homeoffice '. tina Cortese, Italian"actress. tind Kids) on a narcotics charge, i officials and may stay over until and Life mag's pickup of the pic- I production exec Dore Schary ar- ture of actor Robert Walker sit-,"ves Nov, 15. ting disheveled and apparently ' Tracy is in on a combined busi- drunk in a Hollywood police; sta- ; ness.ivacation trip for 10 days tion. Such Incidents, according to While in N. Y., he'll confab with prove WB PREPS 10 YARNS FOR 1949 LENSING Hollywood, Nov. 2. Production at Warners, currently in a slump, will be hopped up after; the first of the year^ with six pro- ducers readj'ing 10 stories for early 1949 lensing. Lou Edelman ' ha^ "Career Girl," "Classmates" and "Missing Persons Bureau;" Henry Blanke is preppmg "Bright Leaf and "Beyond the Forest;" Harry Kurnitz is readying "Miss Smith and the Octopus;" Jerry Wald is working on the Eddie Cantor starrer, "Rise Above It," and An- j thony Veiller is preparing three ' untitled properties. All the pictures will be made under the new studio policy which lequircs all .scripts to be com-, pleted befoie the icrihing starts; thereby saving lime and costs. Chi 441G Trust Suit Chicago, Nov. 2. o u i . , „,^., , , - .-A S441.000 complaint was feed Such incidents, according to While in N. Y., he'll confab with in Chi federal district court against more bellicose industryites, .George Cukor, director of Metro's major film exhibs and theatre cir- that pub relations programs ; "Edward, My Son," Tracy's last cults, by Seymour Simon attorney based on attracting favorable pub- ; picture which was shot in England, for Grove theatre, Galesburg 111 Ucity for Hollywood is okay as far | Cukor returned from London last Friday (29). ' ' as it goes, but even more impop- ,week and was scheduled to return I Weldon Allen, owner of the tant is the development of some to the Coast Saturday (30) but re- Grove theatre, claims violation of cystera to insure against such inci-1 mains in N.y, for another week to ! the ' " ' dents hitting the public ^ress. i*ee Tracy. Sherman I trust acts. and Clayton anti- M-G Woos John Huston Hollywood, Nov. 2. ; Three-year director : deal be- tween John Huston and Metro is nearing the signing stage, with "Battleground" slated as the first assignment. Contract would permit Huston to make one outside film a year for Horizon Pictures, in which he and Sam Spiegel are partners. Their first (John Garfield) is for Colum- bia release. STOCK-BUYING SPREE FOR 2 WARNER BROS. Washington, Nov. 2. Mild buying spree in WB com^' nion stock by two of the three Warner brothers featured -"insider" ■' transactions : reported; by the . Se- ; curities and Exchange Commission^ during the month ending Oct. 1. Jack L. Warner acquired a total of lOjOOO shares in six separate transactions but gave 1„500 to the United Jewish Welfare Fund. This left him v»".th a net increa.se of 8,- 500 shares for the period, bocsting his total holdings to 426,500. In addition, he has 21,500 shares in a, trust fund, Brother Albert Warner bought 1,000 shares to .lack his total to 436,200, plus another 21,000 of the common stock in a trust fund. Gn the other hand, Harry Jl. Warner; disposed of 1,200 WB common by gift, but still owns 283,150 of the I company stock. He has an addi- tional 16,000 shares in a trust fund. N.. Peter Rathvon sold 400 shares of RKO. $1' common, but retained 13,800. Robert Lehman, 20fh-Fox director, bought an extra 100 shares of that company's no par common during the past month, to build his holding to 2,600 shares. Edwin Van Pelt, of the Republic pix board, picked up 1,000 shares of that com- pany on the market and now owns 2,600. Loew's, Inc., which has been quietly purchasing all the loo.se , stock of Loew's Boston Theatres, continued that during the month. It added 84 shares. It now holds 123,263 shares of the $25 par com- mon of that Boston corp. During recent months, SEC dis- closed, Arthur C. Broraberg, mem- ber of the board of Monogram, bought up 1,300 shares of Mono via his Monogram Southern Ex- : changes. Exchanges now holds 16,- 672 shares of Monogram Pictures. On the radio front, Robert E. Kintner, vice president of the American Broadcasting Co., sold 2,500 shares of that company's common. 'He, retained 33,500.