Variety (Feb 1949)

W^neBday* Febrmiiy 2, 1949- VICflJItES BRITISH CRISIS ON PIC PROD. Canadian Production Plans Go Boom; No U. S. Fdms Quota Seen in Works Montreal, Feb. 1. The Canadian production boom, which started with a bang last year; has thinned down to a whisper. Several U. S. producers, including sorne o( the majors who originally Blanned to set up Canadian com- panies, have begun the south\yard frek to home grounds .after run- ning ; ILiOhdon, Feb. 1. :\ ]■ British ;lilm 4n^ • scheduled to .be taken; up tonight | (Tues.) by .Presidto of the Board of Trade Harold Wilsdn in a three^ i hoiir huddle with heads of vai'ipus ; picture employees unions. In ad-J lu iiu""' tj», . . .. . . . . ,.., I dition, Wilson is due to meet with : into -such obstacles as lack of his visit ahead to huddle with , ^^e British Film Producers Assn ■ ' ■ - - [George Weltner, company's foreign < ■ - . .j J. B. Nathan At H.O. John B. Nathan, Paramount's European.sales manager, planed in- to .New.York from-Paris Monday (31) 'for a three-week stay at the homeotfice. Paramounter pushed VUILSQII CONFERS |Ban on Pix Producers in TV Field On I Trust Issue Seen in Recent FCC Moves U.'s" mm A^yTlm ! dept. head, prior to the latter shov- readv however, to turn out pix in i>ng oft for his semi-annual trek ranada with Canadian back-1 abroad. Trip was tagged grounds and personnel. Original tine by h.o. execs as rou- move by American producers was made as a cooperative gesture; to the Canadian government, which , wanted to even up the one-way flow of dollars to the U. S. Canada's annual deficit resulting from ex- hibition of Hollywood pix amounts t'd $l'7.000,000 annually. In the future, U. S, companies Will follow through by scheduling, several pix for shooting on Canadian location. Elagle Lion has already c o m pi e te d ''Northwest Stampede" in this country, while 20th-Fox is planning to shoot "Canadian Pacific,'' a Randolph Scott-Jane Wyatt starrer, up here. March of Time has also slated the. production of sqtae shorts in Canada. Large-scale financing from the U. S;, Of Canadian studios, how- ever, has become dimmer with the recent collapse "of Renaissance Films, outfit set up last year of Nathan will be joined by his wife, who is. currently in Buenos Aires. He returns to the Continent with- out visiting the Coast. Brit. Peer Wants To Be Pals Again With U.S. Pixers London, Feb. 1. An appeal to the government to come to terms with Hollywood, to which there has been "unreason- able hostility," was made by Lord Strabolgi at a second reading 'of the Film Finance Bill in the House tomorrow (Wed.) for talks on the same problem. Main discussion at both con- claves, it's understood, will be cen- tered around costs, with Independ- ent Frame, a revolutionary new production technique which elimi- nates expensive backgrounds, also slated' for analysis, Prosnect of nationalization' too, will be weighed. Meanwhile, it's reported that top stars are ready to plough back part of their earnings into the industry in a move to aid British production. Aspects of this proposal will be explored by the BFPA at a meet- ing with the Personal Management Assn. in which a plan may be worked out. '; . . ■ Washington, Feb. 1. Will the big motion picture cbrii' panics be ruled oiit of. tlie teler vision broadcasting field? Tliere's a good chance they will. Not ohly that^ but those firms which already; have stations may be compelled to '"divest" or divorce themselves headed immediately for the Coast' IZTr rl^t^unT^^^L to confab with Goldwyn. i ^^^'^ "^'1,^'° """''^s too. Crown conferred abroad with I The basis for such action would execs of RKO, which liandles the Goldwyn product, on release plans Crown Huddles Goldwyn Alfred Crown, foreign sales- manager and; v.p. of Samuel Gold- wyn Productions, returned to New York last, week from a four^week visit to London and Paris and for "Enchantment', other films. and on sale of Deluge Grows On U.S. Distrib be their violation of the Sherman anti-trust law. A' provision; in -the Communications Act, under which the Federal Communications Com- mission operates, gives FCC power to deny licenses to violators. Supreme Court has upheld con- victions of the Big Five; which; raises the question of whether they should be disqualified from having broadcast station licenses: There are sevei»l clues pointing to a Commission crackdown on the big producers. Only last Thursday (27) when licenses of Paramount's tele outlet in Chicago (WBKB) and "DuMont's New York video station (WABD)" came up. for annual re- newal, the Commtssion placed the- Joseph Than and Leonard Fields, , of Lords, In the .early part of the indie Hollywood producers. Renais- war \vhen Britain had few friends, sance was supposed to have started he said, Hollywood leaders proved ch,.r.tin» Tn„ 1"^ rin thp first nf 10' good supporters of the British. Strabolgi thought the govern< pictures to be released worldwide by Monogram and Allied Artists. Nothing materialized due to inade- quate studio facilities, and Than and Fields have returned to Holly- wood, • '' Renaissance Reortranized ment, with the best of intentions, had forced the pace to bring about an artificial stimulation of the in-| of 250 workers from Denham and dustry with rather bad results. "If we forced production," he added, "we're bound to suffer in quality." Many peers, including Lord . ,„., , . . .. . Sudden deluge of British pix re As Wilson s crisis meetings were leased in the U. S. crept higher' stations on temporary license scarcely underway, news came ti,ig ^^.ggk when it was learned that j "pending examination of the through that Metro s British organ- > t,,e j Arthur Rank organization ■ qualifications of the licensee in the ization was laying off workers at, ^as pulled two more films from its I light of the decision of the Its Elstree Studio following com- ] shelves for early screening in met-1 Supreme Court in U. S. vs. Para- pletion of the Robert Taylor , pop^jita^ theatres. One of the two.' mount Pictures." DuMont's sta- starrer, Conspirator, wrapped up .-n Always Rains on Sunday," was' tion was included because the over the weekend by director Vic- tjjg British grosser in the I Commission considers Par's 30% tor Saville^ Closedown has affect-1 United Kingdom last year but had i interest in DuMont a controlling ed some 200 employees fad no fur-1 ,,een kept out of the American ' one. A final ruling on this deter- ther shooting is contemplated im-. market for fear its appeal was, mination will be made following mediately at the lot. strictly' British. Unheralded slot- oral arguments Feb. 21. Depression in British studios, i ^j^^ ^^ credited to a' Usually when a station is placed which developed m the latter part complete reversal in the American', on temporary license, a hearing itude towards British imports. follows. The statute',rec(uires that Execs in the U. S. Rank office^ ^^^'^V*? -^^'^^i^ ^^^'^^^ will continue hauling British films' renewal can be denied. of 1948, took another knock dur- ^^^-^^^^ towards British imports, mg the past week with the final; „'„ •_ tu:. tt o -r. i closing of Islington Studios, axing i Reorganized with a new board of , Brantley, appealed for the" govern directors. Renaissance is now blue-1 _„_^ '_„ur*» tu» tu™ r._r»,.t-j_ printing a French language film, budgeted at about $140,000. Re- turns from Quebec, only area the film can hope for full distribution due to the language barrier, will (Continued on page 20) American Companies Put Clamp on British Duals In Slough of U. S. Films ment to rebate the the Entertain- ments Tax as a subsidy to produc- tion. Further light on the situa- tion was provided by Lord Lucas, the government''s spokesman,- A $28,000,000 revolving credit capital, he noted, : is being made available and also explained that the gov- ernment's objective is to increase' the 45% playing time quota pro- gressively. However, Lucas pointed out that the industry was unable to satisfy the present' quota and production is being carried on at a loss. Turning to the Film Finance Bill, he said an amendment is being in- troduced to limit loans to produc- tions which would not exceed the amount of their anticipated budg- Availability to, British exhibs of much minor and'independent U. S. product for the lower half of dual bills is responsible for the new action of major Yank companies in insisting that both ends of a double I feature be the product of the same ! : distrib. New rule, an extension of! the "unit plan," which requires . Minority Stockholder that films iOf major American com-1 panics Cannot be twinned with any | but Yank pix, becomes effective April 1. . I U. S. majors made the new rule ; for two reasons. First is to im- j prove the b.o. return on the top picture on the bill. Exhibs were Pinewood, and the news of the closing of British National at Elstree, which will put another 230 into'Unemployed ranlcs. Although Bank headquarters is off the shelves in a comeback move i ™ J'^!. Commission action on to,make up for several years' loss Thursday also affected two exper- of ground, it's now indicated. The' |*"*="J»ls'^?^'9"s "Pirated by Bala- seven pix recently grooved into re-1 Chicago and 10 in lease had been gathering dust for *^ ^few prk area Ucensed td iiiHiniiiiniiit! M tiiKui-eei .siieiice on i Over two years because both Rank's ; 8? ' 4, .j ; atestTvelopmen^^^^^ S. distribs. Universal and E.igle ' On Friday, wlien renewal ap- iduebi uevtjiopuiems,, ndiiR iiiniseii rtAnvinforf that th« filmc plications camtf up for threft Par has been compelled to put his case Lion, were convinced that the films experimentals in the Los franklv to the leaders of the three had no b o; appeal here. V „ i «-^i'"""^"""> V"* i J- . • J I, I-1 J PaniiHariir onniiirh tiant Angeles area, the Commission studio unions and has enlisted *^e<!"'»ariy enough. Rank othce i~„,,„H nnu, fomnft...>«, n their aid in the new approach to . used unorthodox tactics to demon-forAe?roL& month^* Wilson, and British Treasury chief strate that the oldies could draw! fi^l'l.^d^^^.?!"?''"tl'IV^^^^ (Continued on page 20) Banks 'Unreasonable' On Security Demands, Indie Producer Avers Current banks are "unreasonable," indie American- audiences. On their own volition, Rank execs screened the ! fihns to exhibs recently and then' obtained first-run bookings in N. Y.; Only after the first five pix—all j of which have been in the U. S. for the two-year period — had! ! played to solid attendance were 1 1 the films picked up for distribution ] ; bv EL. Fred Stein, formerly with! i the Skouras theatre chain, has; pending further examination of (Continued on page 13) U.S. High Court Ruling Key to Trust Actions Involving $60,000,000 Top legal puzzler critically af* fecting some $60,000,000 in pend- New' York Monday (31), and until the moneylender^!, rigid require- ments are eased "I'll put up ffiy own financing 100%." Previously t" <iAi.i. r< c the Texas oilman utilized partial Loses ZUtn-rOX »Ull j backing frohi institutions and N, :Y. Federai Court Judge Ed-i handled' second-money himself; ward A. Conger last week dis- i A film-maker for the past three missed a suit brought by minority, years, Wrather ascribed the banks' toughness to the fact that some were hooked by a wave of "irre- spohsible" producers who flocked producer Jack Wrather charged ^ 1^^^^^ exhib anti-trust acHo^^^^^ I the majors will be passed on by I the U. S. circuit court for the first time u.ider an appeal filed in the N, Y. Federal district court last week. Question posed is whether films. Rank officials concede that ex- hibs were "dead scared of; these | films" three years ago. While the ' [t\(n;pn^"°\hPv ^rn''''IiPfinUpiv <^''hib may parade before a court treatment, they are definitely .„„,, .i^, „ .^^^ „ circulation stockholder Uavid Colby against Raymond Klune and 20th^Fox - , Plaintiff Claimed that Klune, de^ tending to throw a_cheaply-bought i scribed as a production manager ^ to Hollywood in tlie lush times a w?aHe in the "bottom slot. Inas-1 under Darryl Zanuck, violated sec-i few years ago. As a result, bank- much as-some fairly good major I tion 16B of the Securities & Ex-1 ers are now drawing their . purse- Product would get . no other play-1 changes Commission law of 1934 i strings at the expense of the mg time, because of the quota' by buying and selling 20th stock I "legitimate" producers, regulations, companies, felt it i within a period of six months, and j Would be advantageous to use it to i any profits, he mav have made ; Bolster the take of the top-rung should have gone to 20th. P'*; ■ j In tossing out the action, .Judge secondly, since these lesser- Conger noted that the SEC statute quality^ pix wouldn't get dates i applied only to officers of a cor- otnerwise, the majors thought they i poration or its stockholders who might as well be getting the coin iield more than lOC'r of a firm's W exhib pays for the lower-rung stock. As a production manager, tn tv, ''t *'^ther than allow it to go the court held, Klune's post was 10 tlie U. S. indies and minor com- not that of an officer, nor did he panics. Practice is to deduct from I hold in excess of 10% of 20th's stock. slated for art-house throughout the country, Second of .the next two releases is the .lames MasonrMargaret Lock- wood starrer, "A Place of One's Own," which goes into the Art the- atre, N. Y. Leadofi-two were "Don't Take It tij HeartV and "Waterloo Road," which played as a package asainst all niaiors evcent Uni- at the Beacon theatre. N. Y. They .1!!f,fS^l"pf,l*\V?l^,?°^f„f and jury the ruling of the U. S. Supreme Court in the Govern- ment's main antitrust suit as evi- dence of monopoly; violations by the distribs. ■ Point i.s first raised on appeal by Fifth & Walnut, Inc., operator of "the "National theatreT Louisville, in a .suit tor $2,100,000 treble dam- ?'"?. rental of the top pic the cost »ni TT ^^^^^ secondary one, fii''.^-^ majors saw no reason to »et that com get away. Original purpose of the "unit POEMS COAST AGCY. Lillie Messinger, formerly with Rank Counsel Preps For Canada Odeon Suit Proposed U. S. trip of G. I. Woodham-Smith, general counsel to J. Arthur Rank, in mid-March will be mainly to prepare for trial in the pending damage brought against were followed by iTale" and "Woman in the Hall ' "Mr. Perrin and Mr. Traill,' playing it the Little Carnegie N. Y., is the: other release. ' . Dismiss StockHiilder Action Vs. Bluiiil^rg action;' Minority stockholder action Universal and i brought against Nate J. Blumberg plan" was to "prevent x'^Arthiir! Un'iversai-international as an ad- «ank from using big American pix viser on story properties and tal- Rank by Paul Nathanson, former > prez of Universal, . by Stephen head ol Odeon Theatres of Can-i Truncate has been dismissed by ada. Woodham-Smith will confab ; N. Y. Federal Judge Siinon H. Rif- with Charles Prutzman, general ; kind. Court's hixinfe 'iS: Sim counsel and veepee of U; and pos- a previous ruling' of Jud^e Harold Sibly trek to Canada to line up the . R; Mediha, which tossed put defendants' case. * I charges against .i Cheever Cowdini Nathanson brought his suit in' U's board chairman, and Charles Canada, claiming that he had ex- Prutznran, _^el>ee; and elusive distribution rights in the 'counsel ofXJj ; . : - ; _ Dominion to United World Pic:, Action had. ^ssertjd that; gift of J ^1 • o„fio,. loffif tai-1 lures'moduct Latter outfit, joint- stock Warrants by Blumberg, part She and Gloria Saf er, leg t tal- P'°^""u and Rank was dis- of which were later sold by the re- «".tAS5"4"?.^^L";^.;r;;' hp?w^^ '^^^^^^ violated the securities & ent, has formed an independent agency in Hollywood to handle ac- tors, writers, directors and pro- ducers hnit? "u- features on his circuit to ^intl V 9'*^" Prodtlet, yrhlch he Vanv position on the bill. l3f been well satisfied with thl ip'' "■'"■'"^uiarly., inasmuch as fav«,. 'ui™° "^^ '*°t called forth un- ; ent ageni m j-ncw ...r-- . - .- Uh I^u^u repercussions from Brit-, sent each other's clients on the two solved when •§» exhib associations. "— ' co^^t*. ' natiQnjil Pi<5turfi». ' Exclwngep.Act, 'A r'antorhiirv versal. Exhib claims tliiit N. Y. reu- fu^ Trlii " eral Court Judge Vincent Leibell muffed the law when he refused j to permit the plaintiff to read per- I tinent parts of the lilgh court, rith 1 ing to a jury. These parts coti- demned certain distrilJ practice* and held they violated the Sher- man Act. Jury trial took place in June, 1948. and resulted in a verdict fa- voring the defendants. Prior to the. verdict, court dismissed th?: case against U and'Republic. ■ . Major company attorneys belieVe the circuit court's ruling oh; the question will play an impbrtant fac- tor in future strategy of the 50 or so exhio actions scattered through the country. While a finding which general [nixes the use of the Supreme C<»urt ' opinion will do a good, deal towards ending the bugaboo of dostly reper- cussions from the Governmeht ac- tion, reversal of Judge Leibelr* holding would smooth the way for an upBed, ypUuvie j)fj,fi;^wbi4ctions;