Variety (July 1949)

ricTinEs WeJnetJay, July 6, 1<)4.9 U. S. UNLIKELY TO UP THAT $17,000,000; DEVALUATION WOULDNT MAHE MUCH Hopes of American companies^ for an increase in the $17,000,000' yearly they are now permitted to, take out of Britain are rapidly being dashed by the present critical lilide in England’s general economic situation. With the Anglo-U. S. agreement of March, 1948, coming up tor renegotiation within six | months. Yank filmites are beginning 1 to fear that they’ll have trouble j holding their own on the $17,000, i 000 rather than obtaining an im | piovement. i In connection with'^the reverse | trend in British recovery, there | Jiave also been renewed indications : in the past week that England may j devalue the pound. Plan is to trim ; its \ alue by about one-fourth, probably early next year. That means that a pound note would be worth $3 instead of the pi'csent $4. American industry views that 1 with no alarm regarding remit j tances or frozen balances in London. Under the terms of the Anglo 1 U. S. agreement, the amount of coin allowed for export is $17,000,000 — specifically expressed in dol , lars and not as £4,250,000. So i the pound’s value in dollars makes no difference to the Americans, As a matter of fact, when the agreement was being negotiated with British Board of Trade prez Harold Wilson by Eric Johnston, Motion Picture Assn, of America prexy, and James A. Mulvey, repping the Society of Independent Motion Picture Producers, the English tried to have the amount expressed in pounds. The Yanks, (Continued on page 23) Bob Hope's Heap Big B.O. Hottest boxoffice bet currently in the Paramount stable is Bob Hope. F'or the fir.st time in his Idng association with the major, the film and radio comic looks to be the top grossing star at Paramount for the year, edging out Bing • Crosby who has heretofore been Par’s bellwether. Two of Hope’s pix, “The Paleface’’ and» "Sorrowful Jones,’’ will pass the $4,000,000 domestic mark during the year. Only previous film in which Hope was .starred sans Crosby to beat $3,000,000 is “Monsieur Beaucaire.” “Paleface” has already done $4,250,000 domestically and is .still paying off. It and “Jones” are seen as Par’s two top grossers. U Quits ‘Unfair British ‘B’ Pool Pressburger-Powell Back to England After Coast Meet With Goldwyn Unusual success in the U. S. oi their film, “The Red Shoes,” is seen by British producers Emetic Pressburger and Michael Powell as “evidence that that old saw is untrue about .American audiences averaging a 12-year mental age level.” Pair admitted, however, that they were as surprised as anyone at the top business being registered by the J. Arthur Rank film under Eagle Lion distribution. Pic did only moderately well in England. Pressburger attributed the good grosses here to the method of distribution, which has been to play the film off very slowly, allowing word-of-mouth to get around and build it up. It has been playing roadshow engagements. There is no such method of playoff in England, Pressburger said, pix just going out into the circuits for a week’s run at each house and then out, similarly to the distribution of an ordinary American film. “Shoes” is now in its 37th week ai the Bijou. N. Y., and has had long runs in many American cities, P&P left New York for Ix)ndon last Friday '1> after several weeks in the U. .S. They came over principally to take to Samuel Goldwyn in Hollywood a print of “The Return of tifc Pimpernel.” Goldwyn financed the pic out of blocked pounds in a deal with Sir Alexander Korda, under whose banner PAP operate. Goldwyn owns Western Hemisphere rights. .Asked how Goldwyn liked the film, Powell declared: “He seemed fo be taken somewhat aback at the fact that people in France spoke French.” Powell said film was partially shot in France and when it was natural the French spoke in their native language, as they did in “Red .Shoes. ” Goldwyn may dub these portioj.s into English, Powell ftaid. Next on the PAP sked is “Gone to Earth” which is being made on a .‘•imilar deal between Korda and David i). Selznick. Jennifer Jones will he starred in the film, which has an 80-da.v shooting .*ichedule and will cost about £350.000 <.V1, 400.000*. Universal has served notice on the Motion Picture Assn, of America that it is withdrawing from the British “B” pool. The long-threat] ened crackdown by U came after ' the company had filed a series of I protests against special deals which , took other di.stribs outside the ! bounds of the pool. Official move by U dumps the question in the laps . of company proxies for further ' huddles in the coming weeks. I Simply put. the pool was created to hold all earnings of British pix ‘ in the U. S. It was intended for ' division among the companies as I bonus coin to the $17,000,000 per! mitted in remittances yearly from Enland under the Anglo-American pact. , Withdrawal by U removes the ^ last $1,000,000 or so from the pool which the company accumulated ^ in earnings of J. Arthur Rank’s i British pix. with its main revenues coming from “Hamlet.” Notice of U’s defection is retroactive, in that it applies to earnings of the past 12 months, constituting the first year’s life of the Anglo-American pact. U’s action had been predicted for a number of months. Company, it is said, was loath to take the ' move, .since it had waived special recoupment rights with Rank under its reciprocal di.strihution ties I when the pact was first made. Howj ever, U finally plunked for action I after a series of special deals by other distribs, including Eagle Lion, David O. Selznick and Sam! uel Goldwyn removed other British ‘ films’ earnings from the pool. I Abandonment of the “B” pool is now considered inevitable unless a new code can be worked which ! would plug all loopholes. John G. McCarthy, managing director of the international wing of the I MPA.A, is now in Britain seeking a change In the rules. { Actually, the pool was never intended to hold money. It was to be constituted by a system of reports on earnings by Yank distribs in the U. S. on British films, with the figures toted by bookkeeping alone. At the end of the year, transfers of these sums were to be made from England to the companies on a pro rata basis. Not one cent has been paid from the pool, and nothing ' further is expected from it. Gold and Dollar Crisis Stirs New Jitters in London I.ondon, July 5. New wave of jitters is enveloping the British motion picture industry as result of the gold and dollar crisis. Latest alarm is occasioned by the widespread rumors that motion pictures are in the top category for slicing in the event of new import restrictions being imposed. All the evidence, however, indicates that, if action is necessary to stem the tide, there will not be new import restrictions, but that the situation will be met by a governmentto-government arrangement without recourse to the dLsastrous ad valorem duty Im’posed to meet a similar situation in 1947. Official circles in and around Whitehall are necessarily adopting a cautious attitude and are reluctant to admit that the government will have to take drastic action to check the drain on gold and dollar re.serves. It is considered likely that if further measures have to be imposed to protect the financial stability of the Exchequer that, so far as films are concerned, there will be an extension of the freeze arrangement permitted under the Wilson-Johnston agreement, rather than the imposition of new taxation. In some Parliamentary quarters the present situation is being likened to the monetary crisis of 1931 which led to the creation of a National Coalition Government. In-the-know experts consider that such a development is possible again in 1949 and sugge.st that the next two months will be the deciding factors. No attempt is being mrde to belittle the gravity of the situation and leading indu.stryites are watching developments with a I cautious eye. but are reluctant to speculate on the outcome. Trend of events after the current Paris financial talks, and particularly in regard to the Colonial Ministers’ conference skedded a week hence, may have an Important bearing on the Anglo-American film negotiations due to be re.sumed in London .some time next month. Fixers Plan to Prod State Dept. The Motion Picture Assn, of America and the Society of Ind*. pendent Motion Picture Producers have had no word as yet from the State Dept, on the squawk they jointly filed June 14 against the British 45% quota. With three weeks having gone by since oral arguments and memoranda were presented to Under Secreiaiy of State James E. Webb, it is expected that the MPAA and SlMPP may start a little prodding for action this week or next. Ellis G. Arnall, prez of SIMPP, who has been on the Coast and at his home in the .south, is due back at his New' York headquancis this week. He is understood planning a trip to Washington wiihin the next few days to .sound out the situation. Other pressure on the Slate Dept, may be invoked by Joyce O’Hara, exec assistant to MP.A.A chief Eric John.ston via the California delegation in Congress, which has been highly .sympathetic. Was a Time When Stoky and Disney Didn’t Sell Now It s Bolfola B.O. A. L. Mayer's Exit Munich, July 5. Arthur L. Mayer, chief of the U. S. Army’s film divi.sion in Germany, will l>e heading for the U. S. within tite next few weeks with his job finished, Mayer has already notified the Army authorities that he intends to quit within the next few days. With the civil authorities taking over from the Army, most film controls on German production are being lifted. Hence, the film dept., bossed until now by Mayer, is disintegrating. Tax Cut Gets Support in Senate Washington. July 5. While the stunning $1,800,000.000 deficit for the fiscal year ending June 30 appears to preclude any tax slash in the near future. PAR’S GRID YARN Hollywood, July .5 “Ex-Hero. ” .<tory of a former rollege athlete by William S.aroyan «i)d George Auerbach, will be made by Paramount. Jules Schermer, recently signed by Par, will produce. * na I l < IT • In / BerR-AlIenberg Fold N.Y. Office; Lantz on His Own Beig-.Mlenberg agency i.s clo.sing its .New York office. Robert Lantz, who (stahlished the eastern branch of the Coast lO'^ery a little more than a >eur ago and has headed it since then, plans to open his own agency in New York. He may also act for some of the B-A agency’s personnel. Lantz fortuerly represented Uni\ersal in story and talent scouting in Europe. Phil Berg and Bert .MIenherg recently dissolved their partnership. with the latter continuing to operate the agency on his own. , Berg quit becau.se of illne.ss. Exhib Beef Vs. High BriL Pix Quota Continues; 2,000 Bids for Relief London. July 5. Exhibitor revolt against the high Briti.sh quota i.s being continued for the second year and more than 2,000 applications have been sent to the Board ftf Trade for exemption or relief. In the first year of the Act. '2,655 theatre owners made application for relief and on fir.st analysis 305 were accorded complete quota exemption and 1.300 had some measure of relief from a \0% to a 42*2% quota. None of the circuits is eligible for relief. Procedure of individual examination of each application will again be followed by the Films Council before making decisions. No guarantee is given that theatres which secured relief in the first year will again be succe.ssfid in the second year or. conversely, that those whose applications were rejected will meet a similar fate on this occasion. In any cvenl the degree of relief will require some form of amendment in view of the slight easement of the quota from 45% to 40% as of next October. cutback of the 20% admi.ssions tax did get a boost in both the Hou.se and Senate last Thursday <30). The Senate Finance Committee, by a 7-to-6 margin, voted to drop the excises to the 1942 levels. This would lower the general admissions tax from 20% to 10% and the nitery levy from 20^^^ to 5%.. The committee made its proposal a rider on a House-passed bill concerning industrial alcohol permits. In the House, minority leader Joseph W. Martin. Jr., struck another blow for his bill to reduce all excises to prewar levels. This bill has been bottled up in the Ways and Means Committee. Martin filed a discharge petition with the Clerk of the House. If 218 members should sign it. the bill w’ould be forced out of committee and on to the floor for a vote. ♦ The day when the mental age level of the average American film, goer was more or less facetiously tabbed at 12 years is evidently over. Darryl F. Zanuck gave .-ehort shrift to the once-popular cliche in New .York last week and Life mag’s round tablers buried it a few weeks earlier, indicating the Hollywood viewpoint that film audiences are maturing and that it will take a new and better-developed type of product to reach them. Perhaps even more indicative, however, than the words of the production execs that filmgoers are growing up in their ta.stes is a backward glance at the pictures which have been doing busine.ss in the past few years — “Hamlet.” “Gentleman’s Agreement.’’ ".Snake Pit.” “Johnny Belinda.” "Red Shoes,” "Best Years of Our l.ives” and a flock of others. Best specific example, however, of the new attitude of American filmgoers is undoubtedly Walt Disney’s “Fantasia.” A picture which when released nine years ago fared so badly it had trouble getting bookings on any level, the classic combination of highbrow symphony music and sophisticated use of the artist’s color and form i.s suddenly getting a call from exhihs and sweeping to new high gross figures. Towns like Ashland, Eau ('laire and Wau.sau, Wis,; Fargo. N. D.. ( Continued on page 6 ) Writers Win Piracy Suit on RKO Film Los Angeles, July 5. Samuel R. Golding and Robert Faulkner. playwTights. won a Supreme Court affirmation of their $25,000 judgment against RKO in a suit charging plagiarism. Writers contended that sections of their play were lifted to make a .screenplay. “'Phe Ghost Ship,” produced four years ago by Val Lewton with Richard Dix a.s star. J M I / • ' ' ( ‘1 > ( Schine's Boy Joining Biz Glovt rsville. N. Y., .Inly 5. Cl. David Sehine. son of Ihe J. Ai.\er Schines. who received his B..4. at Har\ard June 23, is taking the short business course at Harvard preparatory to entering business as his father’s assistant in (he fall. Senior Sehine heads the Sehine Theatrical Enterpri.scs and hotel interests. r < 1 « '• I I • ♦ r J I . ' 1 f , N. Y. to Europe Margaret .^rlen Meade Brunet Eddie Cantor Mimi Chandler Peggy Cummins Frank De Vol Michael Downey Scott R. Dunlap Frank M. Folsom Ben Gaines Stanley Garfinkel Dan Goicnpaul Nate Gross Harry Kalcheim Ed Laehtnan Sidney A. Myers William S. Paley Gigi Perreau Arnold M. Picker Minerva Piou.s Gregory Rat off William Salori Jack Smith L, A. to N. Y. Laslo Benedek John Dali Dennis Day George Durgom Tom Ewell Mel Ferrer Morgan Hudgins Evie Johnson Van Johnson Jason Joy Jack Lait Robert L. Lippert Louis B. Mayer Virginia Mayo Paul Nathan Nancy Olson Michael O’Shea William Saal Don Siegel Edward Small Howard Strickling Minor Watson Herbert J. Yates Felix Young N. Y. to L. A. George Baasman Cyd Charisse Ned Depinet L. Lawrence Green John Joseph Fay Kanin Michael Kanin Mervyn LeRoy Tony Martin W’alter Pidgeon Norton V, Ritchey Charles Ruggles George Shaw H. Allen Smith Dimitri Tiomkin Steve Trilling Europe to N. Y. Mme. Alexandra Danilova Mrs. Meyer Davis Errol Flynn Stanton GrifTi.s Eugen Sharin Lamar Trolti N. Y. TO B’KLYN Henry Morgan t O i !• I I 3 < »(' I 1 ' 1 f