Variety (January 1950)

22'.'« PICTVRGS P^wfir T" Wedne 8 <layy Jiinuaiy II^ ^1950 Outlaw’ Tops Preyioua B,0. Continued: from page 3 ftiise with c ensor demands, clid^’t. go: into release^ until .five; /years’ ,;later. Uiiited Artists /distributed it during 1946 and 1947 and the film exhibited its. mysterious b.o. draught /whereyet* it played. Ho^V^ ever, sinee it had heither/a ProdUcr. tion Code Admihis.tratioh seal nor aii acceptable rating from > the. .; t.egibn of Decency,; it was very limited in the number, of theatres. .It'.could--play’ , ; Nevertheless,. if piled lip .about $2,500,000—inUch of it through re- peat 'engagements . in; the theatres that would handle tt. On the basis df last week’s Strength, RKO execs^ are predicting j^rosses of as high as $8,006,00.0. . Jt is thought un- likely to approach that, but, in any case looks certain to be the epm- : pany’s top-grOsser for the year... Heavy take apparently insures Hughes a handsom e profit on th e property, although^i^atinvestmeiTt anyone’s guess. Original negative, wdiich took Hughes many months to complete, aiid was shot and te- ahot, reputedly ran over $2,000,000 —-a tremendous sum at 1941 prices. Add to that the tinkering the p¥0- ducer did to it continually in the five years before it hit the screen. Interest on the investment, large expenditures for publicity and ad- vertising, the maintenance of an expensive organization during part, of the nine years that haye passed since the pic. was made, and lawyers’ fees for battling varied ; censor boards and the Motion Pic- fused the pic the PC A iseai. ;. In additibri to all that, .Hughes is financing a number'of pix for UA in return for its giving up its contract for release of the film* When he acquired RKO about 18 months ago, he started the deal with UA by Which "The Outlaw" was finally turned over to his own company for further distribution. Ned E. Depinet, RKO prexy, suc- ceeded in getting Hughes to coihr promise on the film’s content, and sufficient cuts have been made in the present version to win a Breen office seal and a. "B" (objection^ able in part) rating from , the Legion.. Battle with the MPA A, which re- sulted in withdrawal of the code certificate and a subsequent multi- . million dollar anti-trust suit by .' Hughes against the organization, wasn’t over the picture’s content at all, but oyer the advertising;. Hughes refused .to tone down shots of star Jane Russeirs sellliig points tq | iiieet. MPAA staridards* . Advertis- ing art has been changed some- what how, but a number of i filmites .- are ’ expressing,: surprise, currehtly at the MPAA’s liberality in the copyv ■ , • While 20 of the 21 dates last _ week, were in. Hughes’ own R theatres, which put On/extra steam for the boss’s picture, the two years; > that the filbi has been out of re-. ' lease didn’t seem to have dimmed ! the public’s memory of’ the.' fl^mr 1 i boyant publicity cain.Phigu which ' was carried on over years Or the I desire ;to. see the film, There was ! iittle diff'ereriee ih result in towns [ where the pic had never played be- ! for0 and where it was making a I repeat stand, Th a number of the latter spots it turned in much more partially through playing bigger, and bettef hous^^ isTrip. Repeat cities ^ were .Ghlcagb, D fe n v e r* Davenport^ Kansas City, Minne- apolis, New Orleans, Omaha; Roch- ester, Sioiix City, \yaterloo, Cedar Rapids and Buff alo. . Most phenomenal scbi’e was rung lijp at the RKO; Boston, where Miss Russell was making a p a; with the pIcV initial week’s gross was about $78»090^three to four times recent normal. At the RKO Grand iii Ghi, It rolled up $44,000 for the initial stanza, breaking every mark since the house was built. In Rochester, biz was so hot a second ‘tReiitfer: was^'TeqtrisiHoned private ambtilaiice hited to bicycle the print between the two houses. Continued from page 3 OUTDOOR REFRESHMfNT CONCESSIONAIRES FKOM COAST TO COAST OVIR l/^'cfNTUPY iTNOWSPfC/AL/ZiNGir ^ IN ReFRESHMENt SERVICE FOR DRIVE-IN tHEATRESj MOVIE THEATRES Representing "BUYERS" who desire MOTION PICTURE THEATRES and ■"SHOWMEN" who desire to sell their THEATRES. De BIcisio & Saunders hotel oLcoTt 27 W. 72nd St. TR. 7-4200 have to make arrangemerits to sit down with him and hash it out at first hand, such as Fabian did with Major Albert Warner and Jack Warner. Lacking that, he as- sertedly let Hughes know that thO RKO topper would have to name a. negotiator fully authorized to close a deal. Fabian-Wafher pact was virtu- ally a fait accompli recently when Warners backed out on the asser- tion that their lawyers told them It couldn’t be done. Deal had been set by a handshake and was ready for paper when, reportedly via the intervehtion o^ Major Warner’s brother-in-law, A1 Leeds, it was decided to give Wall Streeters an opportunity to sell the theatres through a stock flotation. ; Fabian, who has come to be known to the trade as a perpetual negotiator, because of his hard- luck in bringing deals to a con- clusion, came even closer to buy- ing United Artists a couple years ago than he did the Wb chain. In that case the papers were even drawn arid were just about to be. signed when MaiT Pickford, UA co-owner,/changed her mind and refused to sell. In all of his . negotiations Fabian has had the financial support of Serge Semenenkb, y.p. of the First National Bank of Boston. EXHIB (MF ASKED I^R BROTHERHOODm Film industry’s campaign^ for Brotherhood Week, / sponspred by the National Gonfei^nce of Chris- tians and Jews, got under way last week, with a request from, motion picture chairman Tied Gamble for exhifis to cooperate in six proippr;' tional; steps* He listed them as: ; (i) ObtainMO inemberships for ' each theatre at $1 each; (2) Plan Special Brotherhood Week observ- Pric.es; (3) Arrange special display material in lobbies . and. stores; , (4) Use Special newsreel clips to be provided, iricluding an end title \yHich starts oft all reels with the . jan:, 15 issue; (5); Form brother- hood chapters with theattek aS a focal poirit, and .(6) "Make Broth- erhood Weiek a community eypnt in the finest sense .of the word." /. , Week is'set for Feb. 18 to 26. j. Rphert Rubin, Metro y.p:, is chairrrian of the amuseriient dif vision, and Max; Yourigstein, Para- -mouht-—pub-ad-ehief7--^h publicity and advertising commit- Continued from page 3 port of the campaign as a perspnal duty for the prompt ion Pf gpod will ampng all sects arid creeds and as an industry public relations ;gesture. Continiied' from page 5 are required tP tPne up rentals generally oft a season's releases. In a sense, new system will be the same as the use of "loss lead- ers” ijy^retai^shopsr'Which-ai^ signed to bring in the customers for ordinarily-priced merchandise. There is hp intention, of course, of peddling big pix at a loss, but, rather, to cop a profit while en- hancing the distrib’s reputation. Recently XJ has had soine difficulty in garnering top-bracket terms in circuits on its exploitation films. In U's case, already tagged fpr production costs exceeding $1,000,- 000 in ’50, are "Harvey," "Song of Norway," "Winchester, 73," "Death on a Side Street" and "Deported." Release dates of these pix will be carefully culled, both with an eye towards prop~er spacing and avoid- ing too heavy amortization Charges at any one point in the season. U’s fingers Were burnt two years ago when it let loose a concentrated batch of expensive celludoid, in- cluding a number pf red-ink en- tries. . During the final nifte months of the 1948-49 season, company made BEST ENTERTAINMENT SE CURITI ES Memo Cites Top Stocks for Profit tpnllpcomey The Investment. Research Departinent of Eastman, Dillon & Co., has just; prepared a meiftoraridum en- titled, , "Recommended Stocks in the Entertainment - Industry" which [you will ; This riienio, and its accompanying’. mkghzine article by . our top analyst, "Factors Affecting the. Outlook, for the Enters ^ tainment Industry," outlines .the investmcht picture, of leading motion picture companies, radio and television .broadcasters and manufacturers* It, lists: The niotion picture stock most likely to. suc- ceed in 1950. 4 favored motion picture 5 favpred television and radio stocks. .with approxiindte prices, estimated i94S. earnings and dividends, and yields.. Approximate prices of these stocks .range: from gSg to 32, current yields from 3% to 8.82%.; The tre^ growth possibilities Pf theimanufacturers are discussed. . . ., For your free copy of tins vuliiable. ‘memo Und atr ■ tached article, send this advertisement .‘ipith- yemr .. name and 'ddcire.ss iq, or calf Mr.. Brady at: EASTMAisr, Dillon & Co. NeMbEiVs NEW YORK STOCK/EXCUANGB ' 15 Broad Slixet, New York 5, N. Y, TelephoneiBOiolingG^ 9-3100 exceeding the $1,000,000 marker. Fic was "Sword in the Desert," which is figured to gross about $1.,500,000., Company’s biggest earner, "Ma arid Pa Kettle," cost a bare $400,000, but will wind up with $2,300,000 in the till,- ’ | "Harvey" looks to be the most expensive filiri to be made by U iii ’50, with “Song of Norway” a close second. U paid $1,000,600 for the film rights to "Harvey," and then temporarily shelved the project during the economy era to avoid meeting amortization payments during its slack period. Story cost of $1,000,000 is being paid off . oyer a 10-year stretch. Entire produc- tiori nut, however, must be amorr tized over ah i8-month period starting with the release ' date Of the film. Ford and Copper Will stay on at the RKO studio, where they are currently located,s until "Wagon; Master" is complied* Negative will be turried over to RKO some time in March, .when Argosy treks to the Republic; lot. fled the party providing the dollars as the Vaticari, / This^^^^^. w denied and the true source quickly namud for. fear by officiAls; of the Catholic hierarchy that the Com- munist press would ■capitalize on the; reports;to. support their charges that Gardirikl Miridszenty of Hup-, /gary> and other Teligibus leaders were Inyplyed iii biaCk market operations.. Actually, what happens is : that .an A merican ;6rgari4atiori that .’sup- porta a seminary or charity in Italy collects coin for,that purpose iii the U; Sv 'This is transferred to the film; companies iri New York and they release the agreed-upon num;, her of lire to the group in Rome, Both sides profit in that the Aineri- cari compahies get their money im-. frozen and thie charity gets more lire than it Would otherwise have, since there is a discount in their ■favori..'-’ •■■:/ ■ Italiait Govt, Okay Philippine Islands, one of the few remaining free markets for U. .S. pix overseasr has suddenlv clantped- thfrerrae; w^lilliTT taheea to. the U. S.. Aption iaken by the PI government in Manila affects approximately; $3,500,000 in annual revenues to American dis, tribs. The Philippiries has/beon the most, important market in the Far East.for Yank pix since the war;: PI, gpv^rnriaent has given no in- dicatiph how long the freeze v iii last, its crackdown fpllQws a sorV bus shortage of dollars, which has become increasingly evident in the past.- year. .For a long time; the islands had/ plenty of hard Yank cash because of payments v riiade by U.S, Government to Filipinos for war damages. Howeyeiv that coin has gradually dwindled. - No; action is being takeri/'by: the Motion Picture Asrii. of Anun ica. Reps of the vafibus distribs in Ma- nila are handling, the matter in an deals, considering the differential between the official rate of 624 to the dollar and the 750 that the film in diistry gives as a contribution by the latter to Italian charities. Many similar deals have been made on a smaller scale with other church organizations and with the Jewish Joint Distribution Coinmittee, Which financed cphsidefable of the i inigratiofi from Itjiy to Israel in this manner. As a ihatter bf fact, there have been so many deals of; all types that the U. S. firms will j have practically no .frozen life fe- fmaining~raftoF--^^cempletioiL^ot^4he present transactiori; / - Italian government also feels It ad- vantageous to liquidate the frozen funds, since they constitute a lia- bility against the treasury that will eventually have to be paid off or fenbunced. Renunciation would hurt Italian credit. It is also help- .ful to the Internal economy to get the lire into circulation. Incidentally, the small quantity of lire now frozen in Italy as against last February, when the first Church deM was ttiade, is re-r fleeted in the difference in discount rates. Official rate then was 575 to the dollar, and the Yank firms gave 875'to Unload their hoard—a spread of 300 points. Current deal has a differential of billy 126 points —official rate being “624 and the rate given being 750. Arrangement in Sweden is with the Lelas group that last year fa- cilitated the thawing of a large quantity of coin iri Finland through the printing of, bibles there for effort to ease Ihe freeze.”Expbi'i ;of hew American films to the i.'^iiihds are .still subject to no limiiatibns or restrictions. Pi government has indicated that it intends to put the clanip on all “nonressential Iinports," As; a tiiar. ket for American pix, foreign dept execs declare that the Philippines has zbomed far ahead of its prevyar showing? Yank pix were consider- ably popularized during the G1 in- flux of features in the course ol’ ihe islands* liberatioiif ^ only One film with a h^gative oost .^/'; Y i non oon .■uislribution in the U. S..: The dol- Contihued. from page 4 lars for Which these sold were paid [ by Lelas to the film companies. | Present setup calls for the I building of a ship in Sweden to-1 ward which the Americans are cOn- j fributirig 6,950,000 frozen kroner.; Whether the owners of the ship, will be /U. S; citizens could not be ; determinedy but in any event they! have dollars available. Currency to the extent of $1,000,000 has [ been placed in escrow and will be turned over to the film companies /when the ship is finally handed to its owners. Deal provides that the conver- sion Of kroner for the ship shall be at the rate of 6.95 to the dollar, but the Lelas group gets a commis- sion that raises this to 7.2.: Offi- cial rate is 5.18.; ing threat to tax the movies out of business. "This Industry pays the takes which apply to all without a riiur- mur of complairit. But it blUerly resents, and invokes its; con.stilu- tional right to protest, being singled out for disctiminatoiy treatment. "We canhot conceive .of your ad- vocating a special tax on news- papers, magazines and books. As a lawyer you niight ponder whether such a tax would abridge the freedom bf the press; as a Statesman you would ceiiainly say that such a tax was contrary to public policy. We feel, on reason and authority, that motion pictures are also an important part of. t lie Gomihunicatibns industry and as^ such are entitled to the same ebn? sideration that is accorded by the Federal goverriment and the State to the press.” :; -; . - THEATRE AND BLDG. FOR SALE: W VA. YRLY. BLDG. INCOME $15,000; THE- ATRE NETS $50,000; NO BROKERS: BOX V-nsb, VARIETY, 154 W. 46tS ST., NEW YORK 19> N; Y. Continued from page « Continued from page 3 Three-vvili not press for the right to buy theatres. Legalites of the three companies feel it would be ed to; take about five weeks and will be the final chore before the producer takes off on the Eu- ropean jaunt, /Gbldwyn’s wife and aide, Fran- ces, will accompany hiin east and to Europe, An office is being set up for'’her at Cbldwyn headquar- ters in the RKO building, N. Y. Alfred W. Crbwn, v.p. of Sain- uel Goldwyri Productions, planed New York Theatres RADIO CITY MUSIC HALL RMkefelltr Centei- * ■ GENE KILLY • FRANK SINATRA;: •BBTT Y G AliRETT - ANN M 11-1* )'* h -' "ON THE TOWN'* : JU.LES HUNSIIIN - VBHA-EIJ.KN-: Color by Technicolor ./ •” . A , Metro-Goldwyn-MfLyer Picture * ► The. Greet ChrlHtme.s Stage Slio>v ■ [ [ hopeless since an adverse ruling 1 out bf New York Sunday 18) on has. already been handed down. Insteacl, their argument will be cbrifi.hed to a plea for a separate dfecree covering Col., U and UA. Separate decree is regarded as important by the three companies’ legalites because of its bearing on a two-week trip to London and Germany. It is understobd that he’ll r/Cnegotiate the deal made several months ago for the licens- ing of distribution of Gbldwyh product, in Germany. In England heMl discuss distribution of Gold- exhib anti-trust actions. An in- iAy3'n films with RKQ and circuit dividual decree would have no refererice to theatre , monbpbly prabiicbS since none of these de- fendants was held to violate the Sherman act in exhibition. Hpnee, . Tyrone, power .Orsori WELLES Wanda Hendrix V ^TrInceof ■A 20th Century-Foit Picture On Stage^lC DAMpNE 7th Ava, I 801 h 8t. If ROXY CfciJ D«Mlllg;i mpfirirltcio ' 'c Cnlar ly TECHNICOLOR UIT IJIMIIIII * VICIII MlltOSl* BEIU£ SMlRf M RCU LiliimT • MRlf ilLCIMR Ving(i«»*4v San Antonio. Elects -'Gairci a ^ \ San Antonio, Jan. 10- ' elected; exhib attorneys would be unable ■ . to tar the:LittIe :Thrce With, same ' don^ Dvet” ’ succeeding Gor* damage Utlgation * *'^* in . trebie* j New biV agent is John Dennis,/ aamage litigation. I who iollows William Keek^^ i Starring JOHN WAYNE A REPUBLIC PICTURE BRANDT’S MAYFAIR