Variety (Nov 1948)

^ctlncBjay, JVovemhcr 24, 1948 picmrRES BIGGER BITE INTO BACEOG IN '49 Surprise! Surprise! In line with Eric 'Johnston's cnick a couple of years ago that the.film industry "knows leSs about itself than any other major business in America" is the recurrent myth that motion pictures are the nation's "fourth largest industry". This self-delusion was most recently heard at the dinn'^r of the Motion Picture Pio- neers last week in slightly modified form when the assembled execs were ,told films comprise the "fifth lai gest industry". Actually, figures available from the U. S. Treasury and Commerce departments indicate that motion pictures rank around 60th among nujor industries. The numerical classification is vague at best and may be made on at least two bases. (1> Investment in plant and facilities and (2) combined gross income ol all the corpora- tion'! in the field. By either standard, films are far Irom fourth— or even fillh. According to latest available Treasury Dept.. figures on combined gross corporate income, the most generally-accepted mea$ure for numerical classification, all types of film firms together, Including production, distribution and exhibition.: took in $1,570,000,000 in 1944. During the same: year, the ; petroleum industry did $9,t-, 500,000,000; public utilities, $22,000,000,000; beverages, $3,800,- 000,000; meat products, $7,500,000,000; mining and quarrying, $4,- 000,000,; grain mill products, $2,500,000, dairying, $2,500,000,000; tobacco, $J,135,000»000; cotton manufacturing, $2,800,000,000; tex- tile manufacturing (except cotton), $5,000,000,000; tires, $2,- 800.000,000; industrial chemicals, $4,000,000,000; telephones, $2,- 000,000,000, etc., etc., etc. Myers, Ernst, Berge Call on Congress To Legislate Big 5 Out of Business Washington, Nov. 23. Congress was called upon last week to set up anti-trust, courts and to legislate away the Big Five tlieatre interests as the only cer- tain way of doing the Job. The mo- tion picture production-exhibition monopoly, as pointed out by the Supreme Court, was laid before the House Small Business Commit- tee as a kind of horrible exaniplt of why more anti-trust action was needed. Abram F. .Meyers, board chair- man and; general counsel of the Allied Slates Kxhibitors, called for the anti-trust courts as the only way to get speedy action in raot nopoly cases. ■ Need for divorcement laws was recompiended by Morris L. Ernst, New: York attorney.- who repre- •ents a number of film independ- ents. Wendell Berge, former U. S ' Assistant Attorney General in charge of the Anti-Trust Division. : called for annual appropriations ot $10,000,000 to $15,000,000 for fuller enforcement of the Sherman Act. &erge recommended divestiture of . eorporations- which become strong enough to crowd out competition. Discussing the need for special Anti-Trust Courts, similar to the specialized Tax Courts and Cus- toms -Courts, Myers declared that th« big motion picture case, which has been dragging along since:1938 (Continued on page 20) SUPREME CT. NIXES JOAN LESLIE A 2D TIME Washington, Nov. 23. For tha second time, the Su- prenis Court yesterday (22) turned down ,loan Leslie's plea that it hear an appeal from the Galitornia verdict in her contract row with Warner Bros. This shuts the door to her for another appeal. The High Court some Mecks back nixed a prior request that it take juri.sdiction. Under its rules, only two tries are allowed. The Cahfornia Supreme Coui't had ruled thai Miss Leslie could not Vacate her contract with Warnerb On the grounds that she had been a minor when she made it. iMarlin Field hat OH amuiing Hollywood pice*, "A Quick Dear ,*-■■ ■*■*■■.'■.■ In P^niETY^S 43d Anniversary Number Duo End of 1948 ' R. R. Young In State Dept. Duel Over French Deal Kobert H Young, who has battled the biggest of the railroad giants; is about to take-on the State De- partment OH behalf of his Eagle Lion pictures. Young is under- stood to be up In arms over the bruslioH given EL in the French filnr deal. This marks one more explosion by indies against the picture allotments which the US. Embassj in Paris worked out with the French, with the Motion Pic- ture Assn. of America's Gerald Majer acting as adviser. O h I o's Governor ^ elect Frank Lausche, Young's attorney in that state.'has been in both Washington and New York since election, seek- ing to upset the quotas in the new pact which supplanted the Blum- Bjrnes accord. In Washington he (Continued on page 12) Limping pace of production dur- ing 1948, highlighted by shuttering of Warner Bros, and Eagle Lion lots currently, makes 19491 certain to see even a large number of reissues and a deeper bite into studio backlogs than this year. This will be true particularly it grosses slide farther, increasing the speed \\'ith, which product is played oIt. Fortunately, inventories of com- pleted films are adequate at most studios to meet ihcreased demands. Pictures-are believed: to:, be of a. better grade, too, than those which were pulled out of the backlogs in 1948. During tlie e:irly part of this year, distnbs were busy taking oil' the shelt much of the product the.\ had previously sloughed in favoi of films with more b.o.' appeal. During 1945-46-47. when grosses were at a peak, tendency: of most companies was to send the best films into distribution and pi-ocra.'s- tinate on release of the lesser prod- uct. Result was that some outfits found tliemsclves with a flock ot weakies 'that they finally were forced into amortizing and writing off. This has been pretty well accomplished now, so exhibs won't; have these delayed dogs to worry about. Virtually all studios now have backlogs down to or below what they consider "a comfortable" min- imum. That's from 12 to 18 pix at the bettor-heeled studios. lIowe\er, unless there is more of a produc- tion spurt tlian now appears in prcspect, inventories will be sink- ing considerably below these fig^ ures. Reason for allowing this to happen at some studios as to defreeze the casli tied up in in- ventory and make it available for further production. At others it results from fear that the b.o.; may be worse next year and costs will probably be lower. It is therefore considered wise to amortize higherv budgeted films- in the 'best -possible market. Slower Pace Sluggish production situation is exemplified by the current week's chart. Only 35 films are before the cameras, as against 43 on the Same date a year ago, 43 during the same week in 1946, 41 in 1945 and 48 in 1944. Even more of a story is told by study of activity at individual lots. Aside from EL, which is closed, (Continued on page 18) Agnew-Casanave In Distribution Tieup pishibution outfit to handle reissues and foreign pix is report- «oly being set up by Neil Agne\^ and Charles Casaaave. Plan is Jinderstood to call for expansion of <-asanave's present activity in Mates-rigliting reissues. Agnew, With connections in France, would reportedly provide some Imports. ' Is former prez of Selz- U'CK Releasing Organization and sales chiel of Paramount. Casanave ofganized and for a time headed '^aUonal Screen Service. He is a dominant owner of the Fred Aslaire flance sLudios. WB-TRANSATLANTIC SLATED FOR RENEWAL Wai ner Bros' releasing deal with Transatlantic Pictures, the AHrod Jli,tchcock-Sidney L. Bern- stein production outfit, • is slated for renewal early in 1949 when Bernstein will come to the U. S. from England. Second of the two Trausallanlie pix to be delivered (o Warners tmdcr thfl old deal, "Under Capntorn," is currently nearing completion in England. An added factor in renewing the distribution deal : is Hitch-: cock's personal pact with Warners in which he's cominitled to direct one picture a year for tlie Burbank studio. Hitchcock's next produc- tion, after winding "Capricorn, will be "1 Confess," to start next spring. See Schlaifer Getting 20th-Fox Nat'l Ad Acct. Charles Schlaifer. who exits Feb. 1 as 20th-Fox publicity-advertising chiefi has been, assured control of. the 20th national advertising ac- count by prexy Spyros Skouras. Schlaifer, it is understood, wilt have the choice ot .setting up his own agency or making a deal to .loin Rayton-Spiero, which now has the account Schlaifer refused to elucidate this week on his Inten- tions. It is believed that in either case, Morris Kinzler, 20th account exec for Kayton-Spiero. will be associ- ated with Schlaifer. The iwo have long been close personal fuends, as well as business associates. Charles Einteld, who succeeds Schlaifer at Fox and a.ssumes the title of v.p., will return to the Coast from New York Friday i26) after two weeks of "confabs with h o. execs and stafTers. He's due back earl.v in January to officially take up liis headquarters in the east. While in New York, Einfeld signed his two-year pact with 20th, calling for $2,500 a week Selznick, Still Hunting for Sales Tieup, Talks Reissue Deal With E Nate Gross raeallt A KIPORTER'S MEMORIES From Capon* to Imull ^o . "Caliban « AritI" which billing th« CM Horald- Amtrleon'i : Crack . Nnwtmon . Coined * * * on inl«reitinq •ditorlal fnafnrt in tipeoniinfl 43d Anniversary. Number UA'sPix Dearth Most Serious In Company History Although product shortages at. United Artists have become such avhabit that: the condition Is con- sidered almost normal, manage-, ment and dn-ectors are more than usually disturbed by the present situation. Dearth ojf strong films on the future slate is probably the most serious in the conipany's 30-year liistory. Sliortage isn't so severe in mere number, but in the t.vpe of fea- tures on the agenda. Most of them are 'admittedly programmers of limited grossing capacity. Thej-e are no b.o. socks, such as "Red River,'' now in release, to elim- inate the red„ink th* company is currently using in its bookkeep- ing. By diligent trimming, UA has David O. Selznick is iii negotia- tion with Eagle Lion on a deal which would give EL exclusive re- issue rights to a group ot eight Selznick oldies. Talks are seen in , the trade as a possible prelude ttt. ' further negotiations for a deal simi- lar to that which was being dick-r; ered between. Selznick and United .-Vrtists and which fell through last week. With only a limited amount ot.' product coming up, Selznick con-; tinges to feel that maintenance of a complete sales setup of his own is uneconomic. He would like ■ t» join with another company to elimi-,: .nate duplication of facilities and;; yet maintain completely the iden-■; lification of his Selznick Releasing Organization. UA^ owners Charles Chaplin, and; Mary'Pickford refused to go for .such : a setup and Selznick is now turning to other, distribs in th«i hope they would be hiore amen- able, Joseph Bemhard, chief of ' Film Classics, has been pushing for such an arrangement with SRO,^ and possibility. is. seen of a deal being made if SeUnick and EL can't get together.; Reissues, involved in present ne- gotiations are "Rebecca," '^Inter- mezzo," "Since You Went Awav," "I'll Be Seeing You," "Spellbound." "Garden pf Allah," "Tom Sawyei-" (Continued on page 55) Oscar Derby to Be Run In Its Natural Habitat, Back to the Studios Hollywood, Nov. 23, Next year's Oscar Derby will b«: run in its natural habitat for tha first time. The scene will be « double sound Stage at a major studio, the particular lot to be de- cided by drawing lots. . For sev- eral years there has been a move- ment to bring the Academy Awards function into, the studios. cut operating co.-,ts from the peak I George Jessel will emcee. The of over $110,000 weeklv to be- I 20th-Fox sound stages may be used, ween $80,000 and $85,000 now. At times the Derby has bden run That still means li must have weekly billings of about $300,000 to break even and the product is not in sight to provide that kind ] of gross. It was to hypo income i and cut expenses UA prexy Grad i Sears entered into the negotiations i with David O. Nelznick which col- lapsed fast week. , UA has five features completed and awaiting release, plus two Ci.^co "Kid westerns. It has. In ad- dition, six films editing and three in production. That would theo- retically give it enough product to last for about seven months at the distrib's normal release rate : of one every two weeks. Difficulty is. however, that most of the pix on the schedule aren't strong enough to give the company sufficient in come on «■ ba.sis in hotel dining rooms, with food,; at times In Grauman's Chinese the-' atre and more lately in the Shrin*. auditorium, a huge building with: enough seating space to permit thf public to pay part of the expenses; The next Oscar Derby, to h« held March 24, will be strictly private as far as paying customers are concerned. It will be con- fined to Academy members, work- er.s.. in the motion picture, industry (Continued on page 12) Monotonous. How tough the indie produc- tion situation is was made clear this week by Alex Ardrey, v.p. in Charge ot film loans for the Bankers Trust Co., N. Y. Cracked Ardrey: "We haven't even had any loan applications recently to turn down." Yorke Coplan aftd Gewge Break-i , , ston, who made Wrubu," hay* set fortnightly , release i ^ ^^.^^^ Toho-Schochiku to com- , , . ^ „ , ' pletoly finance full-length feature. Of the pix completed, Benedict j ..^jje j.<,x's Tale," about a Yank Bogeaus; "Girl from Manhattan" ; newspaperman. Cast will be mostly (Continued on page 14) } English-speaking natives. ' In return for 100% financing, KCf I Tf) linNnD Q roniUf Coplan-Breakston are to give Japa- ni/W l\f nunUIV J rnuni .nese a duplicate negative which AMIICriUirMT TXTnilCTDV they'll dub in Japanese for dislrl- AlllUdMltiril lilllUdinI buuon there. Producers retain Three show hh personalities will ) be honored by the amusement divi- ', sion of the.National Conference'of; Christians and Jews at a Bill: of Rights Day luncheon .slated for the ; Waldorf-Astoria, N. Y, Dec. 22 Names will not be di.sclosed until \ the parties chosen have indicated their > acceptance. Decision was made yesterday (Tues.) at a lunch-, eon presided over by J. Robert! Rubin, Metro veepee, who Is chair-i man of the amusements section. Ned E. Depinet, RKO pre/., Spyros Skouras, head of 20th-t'ox; Will H- Hays, consultant to the Motion Pidture Assn. of America; and Dr. Everett R. Clinchy, presi- dent of the Conference, spoke at yesterday's affair. Depinet is chair- man of National Brotherhood Week. Serving as vice-chairmen under him are Barney Balaban,- Si Fabian, Oscar Hammerstein 2d, Ed Kobak and Skouras. world distribution rights. Before going to Japan, they're slated to go to Belgian -Congo next month to make another adventure pic, "Okapi." It's expected to take six months, with Jap deal starting ina- mediately thereafter. Benny Back in Pix For Hope's 'Redhead' Hollywood, Nov. 23. Tor the first time in three years Jack Benny " will appear on ths screen in a special sequence in the 'Bob Hope starrer, "My Favorite Redhead," formerly known as , "Kasy Does It." Reason for Benny's return to the .screen is that one of his forniep laUio writprs, Ed Beloin, ib produc- int; the picture. Benny last ap- pCi'iTcd at Paramount in "Love Thy I Neighbor."