Variety (July 1949)

P1CTIJRE.S Non-A(filiated Circuits Becoming Monopolies, Squeezing Producers, Arnall Tells Congressional Probers Washington, July 26, ♦ Non-afTiliated theatre circuits are becoming monopolies which will put the squeeze .on the film producers. Ellis Arnall, president of the Society of Independent Motion Picture Producers, told a Congressional Committee last week. | Arnall indicated to a House Judiciary sub-committee studying ' monopolistic power that the producers w’ill probably be forced into anti-trust actions to break up these ; growing circuits. In a hearing room well studded with observers from the Motion Picture Assn, of America, Arnall also lipped into the Motion Picture Export Assn, and the Webb-Pomerene Act which, he claimed, w-as being used by some American associations to club non-member American competitors in the international field. Other developments; 1. Arnall disclosed that Eric' John.ston, MPAA prexy, had told him the proposed Anglo-American film agreement of last spring is ; dead. Arnall explained, “to the credit of the Motion Picture Export Assn., , these proposals were never effectuated and have been abandoned.” This developed after Rep. Emanuel Celler <D., N. Y.l, chairman of the committee, introduced into the hearing a copy of the trade proposals which were originally to have been further considered at another Anglo-American Film Council meeting in August. 2. Joyce O’Hara, executive assistant to Johnston, promptly countt'red with a statement to the effect that MPEA has been able to get American films into Iron Curtain countries which they could never have penetrated otherwise. “If Gov. Arnall would like to see the Webb-Pomerene Act killed and thereby handicap the showing of American pictures in Iron Curtain countries, that’s up to him.” said O’Hara in part. ‘“That would help neither his country nor the American motion picture industry.” i. Arnall also called for a stif• Continued on page 27) ‘Bali Ha’r Pic Tag? While Richard Rodgers and Oscar* Hammerstein 2d won’t sell film rights to their “South Pacific,” the title of one of the show’s tunes may find itself a film label. “Bali Ha’i” has been registered with the Motion Picture Assn, of America title bureau by Transatlantic, the Alfred Hitchcock-Sidney Bernstein indie unit which releases through Warner Bros. Transatlantic has indicated in its registration that it is planning an original feature with the “Bali Ha’i’.’ title. MacEwen to Solo Hollywood, July 26. Waller MacEwen, vicepresident of Jesse L. Lasky Productions since 1944, turned in his resignation to go into indie production on his own. Pair made “Without Reservations” and “The Miracle of the Bells” for RKO, but their “Trilby” project did not work out. New DuPont Color Termed ‘Amazing’ Myers Raps Schine Decree as Big Bust; D. of J. ‘Softening Up’ Washington, July 26. The recent consent decree made by the Government with the Schine Theatres circuit may develop into the “greatest bust in the history of anti-trust litigation,” Abram E. Myers, chairman of the . board of the Allied States Exhib j Itors, charged last week. Myers i said In a report to Allied members' that the Schine decree reflected “a possible softening of the De-| parlment of Justice’s anti-tiust policies and, because of its Importance, a precedent in future settlements with anti-trust violators.” “The Department of Justice, having the whip hand,” said Myers, “nevertheless has settled for less than the Supreme Court plainly indicated it was entitled to. .M.so the Department has set a precedent which will haunt it for years to come, .Anti-trust defendants, in reliance thereon, will fight their cases tlirough the Supreme Court; and if they lose they will then apply to the department for softer terms than the court ordered.” Discussing .the injunctive proceedings against the Schine circuit. Myers said they may help for a lew years. He warned that the Rinatt competitors will get no benefit from the section giving them the rights to a proportion of the majors’ films unless the Justice Department actively polices that aection. Myers, in his report, raised the question of whether the National Exhibitors Film Co. actually intends to make motion pictures or whether the whole thing is a bluff to get better terms from the major atudios. “If.” he argued, “the film companies sliould back down on those demands and agree sub rosa to rontimie granting the circuits preferential treatment, then the circuit heads might drop their plan to pioduce pictures.” Tn the latest challenge to Technicoloi's supremacy in the tinting field, the va.st duPont interests have developed a new three-strip color process which it is now showing privately to invited reps of the industry, 'I'he duPont entry in the color race was developed, it has been learned, after five years of | much discounted the 11 under-wraps experimentation in ' *’ * ' the company’s film labs. The duPont reps are touting the new' process because of their claim that the negative can be processed in almost any laboratory since the stock requires only a bath treatment for development. That process is identical with the one used to develop ordinary blackand-white film. Technicolor requires a special gelatine treatment, i Wiih the three-color process now perfected, duPont technicians are currently working on a project to make the new negative in a single strip. Aim of the experimentation is to evolve a film which could be fed to a camera as a single strip and then peeled off into three separate layers for the purpose of processing. I Industryites and technicians who have attended private screenings characterize the film as “amazing” ; for its sharpness of definition. Quality of its color is al.so generally praised as being natural and brilliant. The duPont film division is now doing its processing of the new tint method at Consolidated’s Bound brook lab. ‘Brave’ at Under 300G, ‘Champion’ About 525G, Spell Big SP Profit “Home of tlv« Brave,” which was made by Stanley Kramer’s Screen Plays Corp. as a low-budgeter looks certain to outgross“Champion.” On basis of dates played .so far. execs of United Artists, which is distributing both films, estimate domestic rentals in the U, S. and Canada of slightly better than $2,000,000 for “Brave” and about $1,800,000 for “Champion.” “Champion” had about a $525,000 negative cost, while “Brave’s” budget has been a highly-guarded secret but is believed to have been $300,000 or under. However, about $2.50,000 has been spent on publicity advertising for “Brave” and $175,000 on “Champion.” Surprising strong biz done by “Brave,” a Negro problem pic, in dates in Dallas and Houston caused UA to up the estimates of gross made to Screen Plays’ bankers. Companv had originally pretty n to 13% of national income that generally comes from southern states, where it was expected the pic wouldn’t play at all or w'oiild fare badly. UA is now estimating considerable gross from these areas. Next southern opening is in Washington Aug. 4, when pic will day-and-date at the Trans-Lux and a Negro house. It preems in New Orleans Aug. 12 to 19 and about the same time in Baltimore, by which time UA expects to have a full gauge on its potentialities below the Mason-Dixon line. “Champion” proved slightly disappointing in view of its excellent critical reception. UA attributes the below-expectations grosses to the fact that the film had most of its big-city preems during May and June, when film biz in general hit what was probably a five-year low. RENEWED AaiVlTY TO considerable lull in activity, Paramount is again pushing negotiations with a number of prospective purchasers for the sale of the F*aramount Bldg., landmark which fronts Times Sq. on 44th .street. Company has several offers and a decision is expected within a few weeks. Price originally a.‘<kcd by Par for the building which houses both the Paramount theatre and its ho. was $12.500.()()(). but it is understood that considerably lower offers are being studied. Offer b( ing made by one undisclosed syndicate would amount to $7,000,000 plus highly favorable leasing terms «)n the Paramount theatre and office space. Cash pa.Muent would run between $750,000 and $1,000,000. with a first mortgage fixed at $5,000,000. Proposed terms include a second mortgage for the balance which would be secured by rent-' als paid by Paramount on the theatre. If the second mortgage payments were not met. Par could devote the theatre rentals to this purpose. Lease on the theatre would call for .scaled percentage payments ranging from 15% to a ceiling jif 25%. Company, however, is dickering with other prospective purchasers and it is not believed it would neeept a proffer as low as $7,000,000. .Money obtained from the sale of tije property will go to the production-distribution unit if made after the J,in. 1 splitup. Theatre cirdjit, howe\er. will be guaranteed the right to lease the Paramount theatre. N. Y. to L. A. Jerry Baker Dewey Barta Harry Blair Marge & Gower Champion Janet Cohn Valentine Davies Melvyn Douglas lalwin Dunham Martin Gang Betty Garde Oliver H, P. Garrett Ernest Pa.scal Belle Postal Georgie Price Edward C. Raftery Irene Rich Sven Rye Mark F', Sc brack .lonas 3’. Silverstone Paul Stewart Milton W’eintraub Max Youngstein Adolph Zukor N.,Y. to Europe Jack Barry Pandro S. Berman Milton Blow Betsy Talbot Blackwell Joseph Gotten Morton Downey Cynda Glenn Hedy Lamai r .Angela Lansbury Tess Michael Maxnard Morris Joseph H. Moskowil/. John Nasht ' Joseph Verner Reed Peter Shaw Sam .Siritzky Jules C. .Stein Van^a Bonafield’s N.Y. Prod. RKO Pathe hops on the eastern production bandwagon next month when the company’s veepee-general manager Jay Bonafield rolls “The Tattooed Lady” in New York. Casting is in progress. Edward Montagne will direct from an original script by Phil Reisman, Jr. Upcoming feature QI?I I PAD nr V addition to RKO Pathe’s JLiLL 1 Alt DL1/U.) n. I • regular program of short subjects. After a Vedneeday, July 27, 11 Major Phases Ruled Upon The New York statutory court decision against all majors exeent Paramount and RKO is the law of the film industry, unless uoset on an inevitable appeal to the U. S. Supreme Court. While com plete divorcement was the most startling ukase of the court other important points were ruled upon. Following is a breakdown of the ground covered by the decision: 1. Complete divorgernent of the 537 National Theatres f20th-F'oxithe 454 operated by Warner Bros.; and the 116 Loew’s hou.ses. 2. Creation of new circuits, consisting of affiliated theatres but independent of the pre.sent parent companies. 3. Forced .sale by the new circuits of all houses which either heln to create a “local monopoly” or consist of “illegal fruits of conspiracy.” 4. Ban against expansion of the new theatres unless court first grants an okay after being convinced that acquisitions will not be a restraint of trade. 5. No further move against joint interests (except for divorcement of these houses along with wholly-owned) since voluntary agreements of the three companies with the Government sufficiently cover the field. 6. All injunctive provisions covering selling apply equally to the Little Three. ^ 7. Roadshows permi.ssible if no attempt is made to price-fix. 8. Franchises made to indie exhibs are legal if done to further competition. 9. Arbitration may voluntarily be entered by any of the defendants by so indicating with the American Arbitration Assn. 10. Clearance provision amended to read: “A grant of clearance, when not accompanied by a fixing of minimum admission prices or not unduly extended as to area or durations, affords a fair protection of the interests of the licensee in the run granted without unrea.sonably •interfering with the interest of the public.” 11. Product must he sold theatre-by-theatre without discrimination to affiliated theaties, circuit owners or others. “It may be objected that this is competitive bidding which has been rejected by the Supreme Court, but it neither involves calling for bids nor licensing picturc-by-picture. A group of pictures may be licensed to one who wishes to take them without conditions being imposed that the exhibitor can obtain one only if he purchases the group.” ■ ■■ iii^— Ml ' , , Export Assn. Talks Suing on Special British Fix Deals Which K.0.d ‘B’ Pools 7 f 7 * • • Gainsborough Pictures has requested that the Motion Picture Assn, of .America revise the title the British production outfit registered a month ago. It wants “Marry Me” changed to “Marry Me!” TOA to Bypass Top Brass Casts Bigtime politicos, a standard attraction at most exhib conventions, will probably not be invited by the Theatre Owners of .America as speakers at the group’s forthcoming national convention in Los Angeles. Sept. 12-15. Featuring of them as in previous years has been chilled by the reception of .smaller exhibs who have been extremely critical of the practice. 'I’heir cry is: “We don’t want people talking to us who know nothing of our business.” In a clean sweep. TOA is also eliminating the customary invitations to company presidents which it regularly made in the past. While major toppers will be welcome as guests, exhibs are allergic to the possibility of talk.s. Objection rai.sed stems from an exhib feeling that proxies overwork the crying towel in an invariable plea for better rentals on pix. Under chairmanship of Charles P. Skouras, National 'I'heatres head, the confab will be confined to theatremen and Hollywood’s creative forces. Main feature planned is a film producers’ dinner where exhibs will exchange ideas and discuss problems with the filmmaking end of the business. TOAers claim they are ready to listen to the studios’ problems at that time. Customary open forum and presidents’ dinner which winds up the convention are also planned as part of the proceedings. Europe to N. Y. Erich Arnoltl Charles Boyer Harry Brandt Frederick Franklin Ike Levy Harpo Marx Mike Nidorf Fritz Reiner Louis de Rochemont William H. Weinlraub L. Arnold Weissbei ger ♦ Motion Picture Export .Assn, may i bring suit against Eagle Lion, (David O. Selznick. Samuel Oqldwyn land other film outfits in an attempt to break up the special deals with British producers which has kept all coin out of the British “B ” pool. I That drastic remedy, it has been I learned, was under discu.ssion at : last week’s meeting of the subcommittee of presidents and foreign managers created by the MPEA to I look into the snafu which has left the pool empty after a year of the Anglo-American film pact. I Furore has been caused by the fact that the pool was created as part of the Anglo-American deal to add dollars to the $17,000,000 annually permitted*out of Britain, It was intended as the receptacle for all monies earned in the U, S, by British pix. Basis of a law'suit against Ef., Selznick and Goldwyn. if it should be brought, would be the fact tliat they are signatories to the term.s of the Angio-American agreement although not members of the MPEA. Any Yank company doing film business in England must subI scribe to the conditions by signing to follow its terms. Hence, a violation, if proved, would subject I these outsiders to legal recourse in the form of an order reciuiring them to account for earnings of British films. Possibility of a suit, however. Is clouded over doubts rai.sed w helher j (Continued on page 30) L. A. to N. Y. i Ronnie Alcorn I Jack Atlas I Compton Bennett , Lyle Bettger j Benedict Bogeaus Oleg Ca.ssini I James Elliott Vera Ferguson Y. Frank Freeman * I Hugh French Sydney Gross Sonja Heni^, Burl Ives Perry Lieber Arthur S. Lyons Tom Milana Dolores Moran Wayne Morris George Nichols Pat O’Brian Tom Parker Harold Peary Irene M, Selznick Michael Todd Arthur Treacher Adolph Zukor Jr. I WELDSHMER^ Henry Morgan