Variety (Mar 1949)

VjcdnwHlay^ March 23, 1949 Prospective Split of Ms M &11ieatres Revives ABC and TV Talk Prospective splitup of 20th-Fox Into « production-distribution and a theatre company, In line with the consent decree now in the worlcs, may revive negotiations for 20th to buy out the ABC networlc, according to com- pany officials. Such a purchase. Of course, must still await a final decision by the Federal Com- munications Commission on whe- . ther the Aim companies can own radio or television stations, on •which 20th questioned the FCC this week for a definite answer. Twentieth is still vastly inter- ested in establishing a video net- work, it is pointed out^ Unlike Paramount, whose -TV operations were divided about evenly between the two companies formed by the recent splitup, ifs expected that 20th's five pending applications for tele stations will go entirely to the theatre branch. That as- sumption is based on the fact that, in prosecuting its applications be-, fore the FCC, 20th tried to make them as localized as possible by naming as directors of the pros- .pective stations mainly their the- atre execs. That procedure was followed to tie in with the FCC's major emphasis on having a sta- tion owned by local operators and not by absentee owners. If the company splits up and the theatre branch grabs off the TV applications now pending, conser queijtly, it's believed that the prO- duction-distrib company will also continue with its TV activities. (Continued on page 9) Translux Net Takes Dive As TV Inroads Hit Reels Decline in newsreel theatre biz, attributed to popularity of tele- vision for news coverage, is reflect- ed adversely in Trans-Lux Corp. annual report for 1948, released this week. Company showed net profit of $155,130 as against $231,- 679-in 1947, or a decline of over $76,000. Accompanying statement from board chairman Percival E. Furber cites there has been a decrease in theatre revenue, throughout the U. S., but that it was reflected most sharply for T-Ef at its newsreel the- atres. When this trend became ap^ parent early last summer, steps were taken to convert the Madison avenue house, N. Y.,.and the thea- tres in Washington. and Philadel- phia into firstrun operations using feature product. Furber explained that this action had reversed down- ward trend in revenue, aU houses now doing okay. Trans-Lux at Broadway and '49th street, N. Y., is the only newsreel theatre of T*L, returns from it being reported about same as previous year. Corporation directors' decided expansion of theatre operations .' looked , the best bet to help the ■ companx;s development,^result be- ing that seven theatres were added to the T-L circuit during the last nine months of 1948. Uncertain- ties in Mexico prompted company to obtain a local operator for its Trans-Lux Prado in Mexico. City. Report showed that theatre ex- pansion required substantial ex- penditure of capital funds, all new houses and improvements being accomplished without borrowing. However, this outlay for theatre work prompted the directorate to declare no further dividends after the 15e. one paid in January last year. Loew's Names Beigel * Charlei Beigel has been named director of purchases for the Loew's circuit, Beigel formerly was president of the Pyramid In- ternational Corp... export-import firm. He takes over from Max Wolff, who has resigned after being with the chain 30 years. Rank's Appearance As Witness Unlikely In Nathanson Suit J. Arthur Rank's appearance as a witness In the suit brought by Paul Nathanson's Empire-Univer- sal Films against the British film- maker, United World. Pictures, Universal and General Film Dis- tributors is now unlikely in view I of a postponement in the trial to June 6 granted by the N. Y. fed- eral court last week. Rank, who arrives in the U.S. today (Wed.), was originally slated to take the stand. Delay was granted on applica* tion of Nathanson. Hie is seeking $1,000,000 damages plus an ac- counting of profits on a number of British pix. He charges breach of a pact whereby his company was I to have: Canadian distribution rights to films which UWP was to | handle in the U. S. Idea was dropped several years ago when UWP was absorbed by Universal. Rank will be in the U. S. for five weeks-on his current visit. While in New York he'll sit in on a Uni- versal board meeting. Rank so- journs at Palm Beach, March 31- April 6, as a guest of Robert R. Young, then: heads for Chicago, ar- riving April 8 for huddles with Charles H. Percy, prez Of Bell & I Howell. I In Los Angeles, April 10-17, he I then goes to Washington April 20 for preem of "Scott of the Antarc- tic" and the Anglo-American Film Council meets.- Rank sails for England April 28. UA Bd. Meet Forced To Cancel; Lack of Quorum United Artists' board, slated to meet Monday .(.21),. was forced to cancel the session because, of laclt of a quorum when only the three directors representing owner Mary Pickford appeared. Trio of reps of I Charles Chaplin, who failed to I show, are Arthur W. Kelly, who j was on the Coast, and attorneys I Charles Schwartz and Herbert Ja- I coby. I Board had a number of product deals on which to take action; These wfere brought back from the j Coast by proxy Grad Sears follow- ing meetings there last-week. No new date for. a directors' conclave was set. 'Ootiaw' Turned Back By UA yia Hughes Deal United Artf94p has turned back to Howard Hughes prints; stills and other material on "The Out- law" in keeping with the agree- ment by which HKO's new owner is advancing f600,QOO in second money to finance 'indie producers for UA. Company has also now formally relinquished its rights to Hughes* "Mad Wednesday" and "Vendetta." They'll be released by RKO. UA had been holding up every- thing Until it had deals sewed up for the pix to be made with the coin Hughes is advancing. Since negotiations are going so slowly, however, and Hughes guaranteed the money, it was decided to turn his films back to him. The only picture set to be made with the Hughes money, Rooney-Stiefel's "Quicksand," went before the cameras this week. Recent Pix Net Up But Last Year s Product Nips U With the announcement of a loss of $717,535 for the first quarter of 1949, ended Jan, 29, Universal ex- pects to complete its writeoff of a string of wteak pix which It re- leased early last year. Company has been racking . up a . profit on more recent product but that mar- gin was erased by carryover of b.o. missouts unleashed more' than 12 months ago. Gross revenues during the first- quarter period were $14,621,510, as compared,to $15,'741,883 garnered in the preceding 13 weeks. At the same time, cost of product has dropped sharply as a result of stu- dio economies effected in: mid-1948. Hence, amortization, charges are now falling to a point permitting a net profit. • ' Company execs believe the next quarter report will show the up- turn and put the outfit in the black for the first time in many months. Loss .of $717,535 compares with a profit of $134,206 recorded for the equivalent period last yean - Yank IKstribsWiH Stick by hdii! Briti^ Eihits Despite Quota Cut -4 Weltner to Far East George Weltnerv ParaiiaQunt's foreign chief; pushes off next week for a one-month trek through the Far East. Trip is Weltner's routine swing through the territories made every year. British Indie Exhibs Now Account for 40% Of U. S. Distrib Tak(^ ' Indie exhibs in Britain are grow-^ ing increasingly more Important to Yank distrtbs as a. substantial source of rentals in the past few: months, roundup of foreign depts. indicate. With a"'new system of distribution in operation for the past 90 days which guarantees in- dies an equal availability of top pi'oduct, American distribs now estimate that the setup is giving them some 40% of: their entire I take solely from indie houses. I The changed system, put into I effect late last year, is a split of I product of each American distrib ' into "X" and "Y" lists. The J. Ar- thur Rank-affiliated Odeon and Gaumont British circuits :are sup- plied from one list, and the indies, from the other. Division of prod-' uct is on an equal basis with no switching of films once the two lists are prepared. : Some 75% of the bookings still come from the Rank units which dominate a good number of the f key .situations. But the returivs from indies have been growing .steadily and have now hit the 40% marker. According to Yank top- pers; indies are. gradually showing confidence in the new system be- cause of rigid adherence to a fair split in the lists. Originally, these non - aiTiliated operators feared switching to first-runs because of a suspicion that they would find their sources of product drying up. Einfeld Ups Rosenfieid XJlric Bell, 20th-Fox publicity manager, has been upped to the newly-created post of information director. It is understood that in : this capacity he will serve as special: aide to prexy Spyros P. Skouras. David Goldlng, wlio re- cently joined 20th's publicity de- partment, has been lifted to the post of publicity manager, succeed- ing Bell. ■. As part of the resliulTle of 2{)th- . Fox's pub-ad department under the new regime of vice-prexy Charles Einfeld, Jonas Rosenfieid, Jr., has : been upped to advertising manager. Rosenfieid, former assistant ad manager, replaces Christy Wilbert, Who switched over to head pub- licity for the Roxy theatre, N. Y. It is understood Wiibert:inay. leave that post shortly. .■*,/,) (<!• K.i.O'n i.x '.(> < Ji G&P of Cleve. Asks 525G in Trust Suit Cleveland, March. 22. Long feud between two rival nabe theatres came to a head last week when the G. & P. Amus. Co., operator of the Moreland, filed a 525,000 treble damage suit against the owners of the Regent, a film- buying agency and four distribut- ing companies for alleged viola- tions of the federal anti-trust laws. .■".,: , -e',: ■■ ■■. Petition filed in federal court charged that Paul Gusdanovic, who owns the Regent and (hree other theatres, was the chief instigator in a-conspiracy to keep the new Moreland management trom book- ing A films until after they had been shown at other houses, and that price discrimination was made in favor of the Regent. PAGNOL TRILOGY ON 1 BILL Elysee, first-run foreign film house in New York, is currently i playing a triple-bill featuring the; Marcel Pagnol trilogy, "Marius," j "Fanny" and "Cesar" being sliown i on a grind policy for a total of six hours. t House had previously shown the; Pagnol films as individual features. | U Slates Four More By Rank for U.S. Release In British B.O. Upturn Upturn which J. Arthur Rank's fortunes in the U. S. registered in the past few months made further progress this week when Universal slated a minimum of four of the Britisher's pix for general release during'the balance of the current year. U previously had rejected a string of Rank's offerings for com- mercial distributioiron the ground that the films were" "suited for art house rather than general han-^, dling. Company, . sharing with Eagle Lion the U. S. distribution rights to Rank product, has that right under its reciprocal tieup, :' Quartet of pix now definitely slated for general release by U are "One Woman's Story" (played in Britain under the label "The Passionate Friends"); "Blue; La- goon," Technicolor opus starring Jean Simmons; "Christopher. Co- lumbus," with Fredric March in the lead; and "WomanHater." British releases are in addition to the upped 28-30 Hollywood pix wliich U will send to the theatres this year...; Last Rank pic ■ to get general handling by U in the U. S, was "Bad Sister," released last spring. Boycott against British product hit the country thereafter and Rank's Yank revenues declined sharply. U refused to handle a group of films commBrcially Which were slotted to its Prestige unit for spe- cial art house selling. Large number of the Britisher's films are currently being released by Eagle Lion after marking time for several years on Yank shelves. While none of these is racking up sensational grosses, total take repre-sents a healthy weekly in- come for Rank. In addition. Rank's two roadshow pix, "Hamlet" (U) and "Red Shoes" (EL), are bring- ing in weekly revenues of around $100,000. Brit. 40% Quof9 St Continued from page 3 ^ a delegation of exhibs headed by Sir Alexander King, new CEA prexy, called on Wilson and pre- sented exhibition's arguments. Wilson was urged b.' them to cut the quota to 25% and reduce the supporting program ratio to 10%. It now becomes apparent that the government will wage its cam^ paign further to build British, pro- duction, although producers; them- selves, including J. Arthur Rank are only lukewarm to British film- making prospects. There had been reason to' believe that the Labor cabinet would-relent in view of the collapse in much of British produc- tion activities and the impending drop in British films available for theatres. While-labor unions, formerly the hottest supporters of a high quota, are now divided on the: question, certain influential figures in labor's camp voted for the quota cut last week. Tom O'Brien, M.P., and genei'al secretary of the National Assn. of Theatre Kinematograph Employes is understood to have switched to the reduction propo- nents and voted for the slash.. He and his faction feel that a quota cut would encourage Amer- ican companies to produce in Brit- ain, thereby alleviating a very tight employment situation. Other labor leaders plunked for a boost to 60%- while producers, in - the main, wanted the 45% quola ex- tended.. ■, N. Y. to Europe. Anton Dolin Ethel Grlffies Richard W. Hubbell Nat Karson : Alfred Katz Alicia Markova Louis Merlin Europe to N. Y. Al Daff Jack Dunfee Paul LukaS' Ben Lyon Patricia Neal J. Arthur Rank Ronald Reagan Casey Robinson Sam Seldelman Erich von Stroheim G. J» Woodbam^Smttb' American film dtstribs will stick by the Indie British theatres, con. tinuing to supply them with an even break on product, despite a reduction in the British quota to 40%, announcement of which wag made yesterday (Tues.). Forclen toppers indicate that upped de* mands for Yank pix by the three chief British circuits, Odeon, Brit- ish Gaumont and Associated Brit, ish, stemming from a relaxed quota will not lead to a withdrawal of first-run from indie theatres. Yank execs have no intention of being caught flatfooted again. When the boosted quota was first clamped on British theatres, com- panies found themselves unable to book their product because the Rank-affiliated Odeon and B-G chains swung into a diet of Brit- ish films, cutting their bookings of Yank product to a minimum, American officials note that only in desperation did the distribs turn to indie houses and a system of "X" and "Y* lists to get their films played off in Britain, "X" and "Y" system, it is said, will be maintained although the spur to its original adoption is now heading for the curtains. Under that system, American films are divided into two equal poitions with one sold exclusively to aft'ili. ates and the other to Indies. Yank distribs have no intention of pull- ing tlie props from under the in- dies after painstakingly creating this new first-run outlet. Easing of quota is expected to speed releasei of American pix. Schedules are now about three-to- four months behind. Changed sit- uation should bring the sme up to date. One result of the British retreat will undoubtedly be a better treat- ment for American product than heretofore. According to Ameri- can distribs, their pix have been "kicked around" lately, being grooved frequently to second bill- ing. Sharpened demand for Yank product, resulting from the quota easing, will restore distribs to a sound bargaining position agaiUi L. A. to N. Y. Harry Ackerman Berle Adams Gene Austin Leon Becker Sally Benson Sidney Bernstein A. Pam Blumenthal Max Coplet ■ . _ . •_ _ Eleanor Counts Kirk Douglas Ruth Gordon Richard Hageman June Havoc Paul F. Heard Irene Hervey Oscar Homolka Amparo Iturbl Allan Jones Garson Kanin Boris Karloff Ella Kazan Malcolm Kingsberg Henry Koster Andi-ew Marten Marilyn Maxwell James K. McGuinness Burgess Meredith Ray Milland Audio Murphy Lloyd Nolan Katina Paxinou Steve Previn Grad Sears David O, Selznick Paul Short Hunt Slromberg ^ Margaret Whiting Sam Wiesenthal , Mary Young N. Y. to L. A. Lauren Bacall Humphrey Bogart Charles Boyer Gary Cooper Arthur W. Kelly Arthur Krlm Lou Mandel Ernest Martin . Lewis Penish Mrs. Gregor Rablnovitch Gene Tierney STILL HERE Henry Morgan ';o'' ( in 1