Variety (Jan 1949)

nCTVilBS 8 $53>000,000 NET ESTIMATE IN'48 Theatre Partners, Hedging m Terms, Create Stew with Major Distribs Pommer to Europe' Erich' Pommer, retiring film Recalcitrant exhib partners of+- the Big Five, currently holding out ( for better terms in the breakup of | joint theatre operations, may cause! ♦he entire question to be dumped! . . , „ _ aeain into the courts. A rash of { chief for the U. S. military govern- sUits and proceedings are now be-: ment in Germany, returns to tag considered by theatre chiefs of; Europe this week by plane from malor companies as a result of the New York to wind up his affairs, ""vv. . 1 Pommer^ who was recently suc- ceeded by Arthtir Miayeri expects | to be back in the U. S. isonietime' stand being taken by some theatre pards. Number of these are refus ing to either buy or sell. Prominently mentioned in this ^pui^ group are both the Maine & New Hampshire circuit, tied to Para- mount, and the Trenton-New DISGOIINI Many Both Goldwyn, Johnston Erred in Airing Their Bitterness B.O. MISSOUTS A big ^Writeoff of films released in 1948 which proved to be boic- office-^missouts has now deflated early and optimistic estimates that i in motion picture industry finance, Abeel Promoted Alan C. Abeel, long an expert Brunswick ehaini Owhed 50-50 by KKO and Walter Reade. In both; instances the majors' partners have been offered the chance of buying out the film companj«'s slice or' selling. Neither choice has been taken, and it is now likely that the refusal will stand. Situation is further complicated in several instances because terms of the partnership set forth the method of -dissolving the joint Operatiort in a manner which works distinctly to the disadvantage of the major. In the case of Reade,, for instance, it's understood that the book value sets the figure which the major is to receive if it plunks for dissolution. Sum in these instances is said to be grossly under the actual value of the in- terest. Test action to determine whether a major must sell at disadvantage- (Continued on page 15) Selznick, Krim Continue Talks on 'Jennie' Tailend Other SRO Films David O. Selznick and Arthur Krim, Eagle Lion prez, are con- tinuing talks this week on the pos< sibility of extending their recent deal to include EL tailend selling Of "Portrait of Jennie" and other upcoming Selznick Releasing Or- ganization pictures. Nothing has been set yet, however* beyond the . deal for EL handling of nine Selz^^ nick reissues and selling of resi- dual accounts on two SRO pix al- ready in release. Indications of a possible change, in Selz'nick's plan to 'have his own organization handle "Jennie" is seen in continuing delays on tak- ing new dates. Sales staff had or- ders a couple weeks ago to go ahead lining up engagements, but all action has ceased now. Pic Is playing only on the Coast, where it opejned prior to the end of the year to aualify for the Academy awards. Sidney Deneau, SRO sales chief, and Leonard Case, financial exec, have been in Hollywood for the past 10 days huddling with Selznick. They went out with Wil- liam Heineman, EL v.p. in charge pf distribution, who returned to New York at the end of last week. the film industry would net total profits of $60,000,000 for the year just past. Because mostxompanies have decided to take their loss in '48 on weak pix rather than carry over to the following semester, the was upped last week from second vice-president to a full vice-presi- dency of the Guaranty Trust Co., N. Y. He has for years handled the bank's loans to major film com- panies and independent producers Selling, Stockholder Tiff Shaping Up Over Cohn s New Pact Minority stockholder fight over the proposed new- stopgj^ employ- ment contract for Harry Cohn, Co- lumbia's president) is: again shap- ing up following circulation of the company's proxies last week. Ben- jamin Javlts, attorney representing the Investors League, which led ^ last year's battle against a boosted | salary for Cohn, is huddling with the league's management as a pre- liminary to deciding whether the group will renew its barrage: Jav- its said yesterday (Tues.) that the league may place ads in the news- papers seeking stockholder sup- port, as it did in '48. Attorney conceded that the new ticket for Cohn, which would make available under certain conditions some $300,000 in insurance policies carried by Col on Cohn's life, "isn't anywhere nearly as bad as the last proposed contract." ■ None- tlieless, Javits said, "it is ba.sically the same situation, and I don't like it." ■ Stockholders' rep declared that it does not guarantee, continued services of Cohn. (Pact can be can^ celled by either Cohn or the com- pany on six months' notice). "Cohn has enough of a stake in the com- pany and I don't see the need for extra compensation," Javits added. Attorney is considering writing a letter to Col's directors setting iorth his views. At the 1948 annual meeting, Cohn dropped a proposed new employment contract despite the approval by a large majority of stockholders. Present tentative pact would be regarded as a pre- lim to ultimate negotiation of a new permanent contiFact. total net for seven majors (ex- i ~ Abeel was handed the promotion eluding United Artists) will not; by the Guaranty directors at their exceed $53,000,000. That final fig-1 meeting following the annual ure represents a drop of 40% from ' stockholders' session last Wednes- the $90,000,000 garnered in '47. i day (19). He has been with the Actually, six of the majors will ^^^^ y^"*"^- snare some $57,000,000 in net profits for the year. However, it is reliably reported that Universal will show a net loss of $4,000,000 or thereabouts when its statement comes out. This $4,000,000 is de- ducted from the total of the six companies to reach the final figure. U's statement is: now complete, it is understood, except for . a de- termination of the: amount to ' be written off for films which failed to. meet their negative and distri- bution costs. That figure, it is be- lieved; will run into several mil- lions of dollars and push the loss up to the $4,000,000 total. For its (Continued on page 20) Metro Seeking Govt. Settlement? S. Africa Trek 01 Trip Inadvisable' For Major Mgrs. -f Teapot name-calling tempest be- tween Eric Johnston and Samuel Goldwyn during the past week has been greeted disgustedly with "a- plague-on-both-your^houses" atti- tude by many industiyites. They/ feel that both men erred severely in pujjlicly airing their bitterness toward each other on the lowest possible personal basis when the . crying need of the industry at the moment is an improvement in its : public relations. Namcrcalling in ■ the press on a strictly intramural difference of viewpoint is a luxury, it is felt, : that Hollywood cannot well afford at this point; Most of the : fingerpointing by; those who have analyzed the spate of statements by the pair is aimed at the Motion Picture Assn. of America prexy. Broadest opin- ion is that he belittled himself and the Assn., and did nothing but harm to the industry by answering Goldwyn's initial statement an- nouncing his intentions of quitting the MPAA and its Coast affiliate, the Jjfotipn Picture Producers -Assn. There's no willingness, either; of course, to condone Gold- wyn. If he chose to quit the two organizations, it is Committee of three major com- pany foreign managers and Fran- cis Harmon, veepee of the Motion Picture Assn. of America, have-r- felt he could have done so simply temporarily, at least-^called off their trip to South Africa. They were to leave New York, Friday (28), in accordance with a decision reached by the company prexies at their session in Miami Beach last week. Trip to Johannesburg was to pror test to the government and per- haps arrange an easing of the 50% restriction on remittances, which was imposed last Nov. 5 and made retroactive to July 1. Companies Extension of Metro's time to file briefs and proposed findings in the I werranx'ious" if" they Muldn-reasl Distrib Asks $150,000 In Tiracy' of Picture Hollywood, Jan. 25. Charging "Unfaithfully Yours" was pirated from his screenplay, "Discord," William D. Shapiro, film producer - distributor, sued 20th-Fbx, Preston Sfiirges" and Werner R. Heymann for $150,000 damages in action filed in Santa Monica superior court. Shapiro alleges that in Septem- beir, 1945, he created and de- *foped "Discord" with assistance ot Arthur Hoerl. Propping piroduc- tion, he hired Heymann as mu- sical director and conductor. Uaims Heymann famijiarized him- self with story, told it to Sturges, Who thereafter wrote and pro- duced "Unfaithfully," copying, ac- cotding to complaint, plot, theme. Characters, motivation, treatment, sequence of scenes and dramatic situations contained in "Discord." 1,. "Unfaithfully" was re- ivaitc.j —~ leased despite written notice not hospital, Brooklyn, where he will in f * i^"' 'f^sulting in destruction \ be confined for the rest of the week m total value of his film property. I after minor surgery. LiniE 3 BRIEF SLOWED BY RAFTERY ILLNESS Preparation of a combined brief by the Little Three— Universal, United Artists and Columbia ■— has been slowed by illness of Ed- ward Rafteryj member of the law firm of O^Brien, Driscoll, Raftery & Lawler. Raftery has been active- ly working on the document. Be- cause of Raftery's ailment, the Little Three this week obtained a postponement until Feb. 10 for filing its argument. Order was inked by the N. Y. Federal court; Combined brief aims a three-way assault on the-Government's -anti- trust stand. It wiir seek to upset the proposed decree on price-fixing, roadshows and clearances. Since none of the trio owns theatres, no argument is made on divorcement. On -price-fixing, brief will ask that licensing contracts be per- mitted to specify the house's scale of prices merely as a statement of policy rather than a guaranteed minimum. Limited roadshows on unusual films will be requested. Re-defining of clearances, plus re- moval of the burden Which the Government decree: would place on distribs to prove reasonableness^ will be sought, \ Raftery is currently.in St. Mary's revived rumors that the company will join the parade by seeking a settlement of the action in negotia- tions with the. Dept. of : Justipe. Three-judge Federal court last week granted a delay until Feb. 15 from the original Jau; 31 date after application by-the film company. Order was inked after U. S. spe- cial assistant attorney general Rob- ert L. Wright okayed the move. With Paramount reportedly al- ready in agreement with the Gov- ernment and RKO's consent out of the way, attorneys believe these maneuvers of Par and RKO are generating strong pressure on the other companies to reach for the olive branch. In this respect, ad- verse court results against those sticking to the fight would pose in- evitably unfavorable comparisons to stockholders with deals won by companies hitting the consent-de- f cree road. | RKO also^ won a ^elay from the court last week. Company's re- quest for an extension until March 30 of the time required to file an approval by stockholders was ap* proved in court. Provision of its decree had set Feb. 8 as the last day for the settlement to be given stockholders blessings. the overall 50%- festriction, at least to work changes in the. regulations to allow more equitable distribu- tion of the 50% of remittances per- mitted. Scheduled, to leave New York on Friday with Harmon were Phil Reisman^ of RKO; Murray Silver- stone, of 20th-Fox, and George Weltnery of Paramount. Warner Bros, foreign exec Joseph Hummel is already on his way from Europe and was to join up in Johannesburg with the New York contingent. Last-minute change in plans'fol- lowed advices from South Africa that the trip would be "inadvis- able." No indication . could be had from the MPAA or other sources in New York yesterday (Tuesday) . iContittued on page 20) RICHARDS STUBBORN ON RENTAL TERMS New Orleans, Jan. 25. Although he has now b'een de- _ _^ prived of■ product from four major i complaints from members re com- and quietly with the briefest kind (Continued on page 18) Schine, 8 Majors Named in N.Y. Suit Asking $2,523,000 A $2,523,000 treble-damage anti- trust action was slapped against the Schine circuit and the eight majors yesterday (Tues.) in the N. Y. Federal court. The suit, brought by Auburn Capitol Theatre Corp. and Herbert P. Wallace, named John A. May, J. Meyer and Louis W. Schine individually be- sides the corporate defendants; Plaintiffs, as operators of the Capitol theatre, Auburn, N. Y., charged the defendants with a con- spiracy which monopolized the town and allegedly forced the Cap- itol to switch from a first-run policy to a: catchras-catchrcan on available product for any run. The change was allegedly made in 1941 after the Capitol was on ilrst-run since 1933. Because of this, complaint as- serts, Capitol made $40,000 less annually than it would have racked up otherwise. Wallace claims that the alleged conspiracy prevented him from going into exhibition in neighboring towns. Two Mpls. Complaints , Minneapolis, Jan. 2^. North Central Allied has for- warded to the Justice Dept. two MPAA'S NEW 'AIDE' Comic Strip Character 'Takes Over' As 'Assistant' to: Cheyfltis' . The Motion Picture Assn: of America has added some new talentr He's "the comic strip char- acter who, as Variety went to press last week, was being offered a job by Edward T. Cheyfitz, as- sistant to- MPAA prexy Eric John- companies, Paramount partner £. V. Richards is showing -no signs of capitulating to . distribs on rental terms. Reports that Richards, who operates 79 houses in this sector, has been dickering for a return of Paramount product are tagged here as incorrect. There are no peace negotiations, and Richards is prepared to keep operating with his partial picture supply indefi- nitely. Par_and RKO. were theLJast_tw.o companies to sell away from the chain. Metro and Universal have been booking their product with competing houses for several years. AH four companies claim that ston. Cheyfitz was last pictured in S". . <-ompanie» the Publishers Syndicate daily R''=hards has refused to pay renta s strip, "Mary Worth," as saying to anywhere near as satisfying as his the guy, "The industry needs;'^'''"P^titors smart young men who see Holly- wood through neither rose-colored petitive bidding. One exhibitor alleges he has made highest bid for product and been refused it. Other charges Qompetittve bidding has "hurt" him. Organization claims consent de- cree violations and requests att investigation.' letro in TV—Afanost; - Pic on CBS listake- Metro, the one major film com- pany which has indicated it wants nothing to do with television yet, was almost in the TV picture last week^but it turned out to be all a mistake. CBS television transmitted a • nor through the veil of prejudice.'' Now insiders are kidding Arch Reeve, public relations; chief for With a half-dozen pix already! two-reel documentary Saturday sold away from Richards, Para-' (22) night, titled "Whither Japan," mounters here say that its«film I produced by the Australian Na- rentals have hot-^suffered because | tional Fiim Council and distributed of the breach with the company's theatre partner. Returns have. the MPAA on the Coast. They're ' roughly, equalled those heretofore telling him they expect his resig-1 corralled from Richards, whose nation since his is the job the new- houses are generally good for big- comer has been assigned by thelger grossers. That factor was by Metro International in the southwest Pacific region. Hyperion Films, indie N, Y. distrib. Which sold the short to CBS,'forgot to re- move the ''Leo" leader and, as a result, the full Metro tradettiarls comic-strip Cheyfitz (whQ's iden-j equalized, however, by the higher ! flashed on the screen, tified in the funnies by the sign on percentage which distribs can get I Both CBS and Hyperian apolo- his office door). Uronr riva' theatres. Igized to Metro for the mishap.