Variety (January 1950)

Wedneedayf Jaimary 18, 1950 FICTOIBS WB BAU FDR SHOWCASES . Hollywood, jan. 17. / Kepublic, -toich produced 50 pic- tures last year, ' will equal and probably exceed ' that number in :1950: Currently the studio; has 14 .Scripters putting the final touches oh 14 screenplays for early shoot- ing. ' Tecliriicat advances in c ol o r stocks over the past year, led by new techniques developed by East- man Kodak, DuPont and General Aniline and Flm Corp. (Anscp)* are expected to revolutionize the en- tire tinting end: Of the industry during the current year. . As a starter in a surge; of color film out- put, the eastern labs are now prepping to swing into wholesale production of color prints within the next six months. The shift Itieans a sharp cut in the costs of makihg tirited prints;^and a con- sequent boom in the number of chromatic films. : De • Luxe, Consolidated a n d Pathe labs in NeW York are re- ported getting setto take on tinted positive work.; These big labs are pot equipped how for other than black-and-white work. Whatever equipment is required is already ori order/ A change. in: the bath <ahd timing is needed In a switch from biack-and-white but no large- scale conyersioh of equipment. ' While EK, DuPont and Ansco are still working to perfect nega- tive.color prints, /these companies have already brought positive pririt stock to a commercial basis. They plan big production of rawstock during the current year. Film technicians point out that Technicolor negatives can easily be adapted to color prints of the other outfits. From the Technicolor negative ah answer print in Techrii is made. In tUrii, a negative using one of the other systems is made from the answer print, and all positive prints are then duped from this second negative. Entire reason for the use of other positive rawstocks would be a sharp decrease in the cost of prints. While Techni prints cost 6.22c per foot, it is expected that Ansco, DuPont and EK will pro- vide rawstock that will halve the price. Producers will undoubtedly turn to the eastern labs for volume print output regardless of whether the negative is in Technieolor or some other process. While a successful conversion from Techni to some other positive . (Continued on page 20) Big flQllyvFOod Group Eyes Hearings kC. on Tliealre n Washirtgtori, Jan. 17. For thcoming hearings before the FCC on large-screen theatre tele- vision are expected to attract one of the largest contingents of mo- tion picture people ever brought to the Capital. With the stakes ^ anticipated the rndus- j rj,y equipment, has caused some try—producers, distributors and|j-i ^- exhibitors—will put on a strong] ^ « • case before the agency for alloca- , J^ft^.gibhons, P^esi- tion of radio frequencies for the' (lent o.f Famous Playeij (Canadian), service applied to the CBC for a license Just ;wheii the hearings will ’stated th^ he ^epared t$ke place is still to be determined to gamble on the .a^ittedly high ' but it.is considered uhlikeiy they I ^dsts,. lie also, said that he would Torontp, jail. 17. ; On immediate arrival here from York of nGw-cOmpleted tele- vision equipment ■ the Imperial (3,373-seats), flagship of Famous P'layers ^Canadian) and the largest theatre in Canada, will be the first house in this ' country to show full screen video. While Famous,, With some 650 theatres across the Do- minion, has applied on t\Vo oc- casions for a TV license to estab- iish a station here and has seen both applications refused by. the state-operated Canadian Broad- casting Corp.. the big chain has npw been granted a Federal gov- ernment special permit to operate a ‘'closed circuit” in the Toronto area. Government stipulation is that the TV picture may be thrown on the standard screen but will not be available to the few thousand TV set-owners here who will still have to depend upon adjacent Amei'ican border point butlets, though the CBC has now cOm- niitted itself to the immediaite bUildfihg of a TV station in Toronto and has been given a Federal grant for this purpose. Despite the refusal of the CBC to grant Famous Players a tele license, the Paramount affiliate; in Canada h$s continued to complete its technical preparations^ Most of the equipment has been pur- chased in Canada wherever pos- sible, this including the mobile units built here, the chains of ca- meras, the aerial and other neces- sary engineering equipment. The major video unit, similar to that of the Paramount, N. Y., must be imported. That this must be “hand- made,” in that there is no general mass production of such - theatre ;Entire complexion, of major company production. ■ distribution activities hinges oh the attempt by Warner Bros, to win from the Gov- ernmbiit the right to bpcrate a lim- ited number of first-run showcases. If the Dept, of Justice consents 'to this proviso^ four other Big Five defendants as . weiV the Little Three will undoubtedly be granted the same rights; It throWs aii en- tirely different light 6ii the future first-run : setup throughout the country;;. WB’s showcase target Was dis- closed; by Harry M. Warher, the company's prez, in his ainnual stockholder report. Warner gave np indication of whether the .Govern- ment would approve the principle but the fact that he recited that; request gave credence to an indus- try belief that the Government is favorably disposed, if it had beeu a bargainirig .point without- omiich chance of D. of J. okay, Warner WQuld undoubtedly have left it un- nientioned, it’s felt. There is no question that Other defendants would be granted the. same privilege should Warners Win its showcasing request. In its series of decisions, ho Federal court has expressed opposition to theatre- ownership intended to help market product rather than dominate the exhibition scene. Moreover, both RKO and Paramount have provisos in their .consent decrees Which give them the right to amend, should another defendant win more favor- able terms. Neither the RKO nOr Paramount decrees directly forbids ownership of theatres by the production-dis- tribution units. On the Other hand, they do hot Authorize theaffe ac- quisitions, and the question is cur- rently considered unanswered. M^tro Voting feb; 23 Electiori of Metro’s board oi di- rectors for the coming year will be held in the ebmpany’s New York office, jFeb. ;23, date now set' for the annual stockholders’ meet; Stpckholders of record Jin.; 20 Will be privileged to attend arid ; Big business traditiorially cor- ralled by Walt Disney Productions overseas-—a far greater proportion than that .of other Americari dis- tribs—showed up; sharply in the Surprisingly strong profits gar!- hered by Warner Bros, in the six-» morith period Which ended in Nri- yember points up the Industry- Wide rally which promises to give the companies their best profits in ^ 1950 since the heydays of '46 apd ’47; ; In reporting net profits : ^ $10,466,534 for .fisbal *49,.. ended Aug. 31, Warners came up with a last-quarter take of $3,103,534,' It just doubles: the; $l;5ie,Q00 gar- nered in the comparative curtain- .'quarter.;6f';48v.; Rloreoyei*, company continued its. gains . iri the first quarter of fiscal ’50, which ended Nqv> 26, 1949, according to the report of. Harry M; Warner, company prez; Profits exceeded ihe net of $3,093,'^ 000 garnered by WB, in the com- parable period a year ago, Warner said. Although gro.ss receipts were Jowerj amortizatioii charges and operating costs' have been sliced to :the point where a bigger net is the'result.-■ In effect, the gains racked up result from an end- to the expen- sive writeoffs - of costly, . losing product. ^ Warners, along with company's annual financiaF report , ,, . . , , for 1949. Disney outfit aired an i ether ma]ors,, has now brought^its . - — - .. I production nut to a diminished operating loss of $93,899 for the year ended , Oct. 1; against a red- ink total-of $39,038 in ’48. At the same time, blocked overseas currencies of $450;000 did not play a part in the report because of ne\y bookkeeping practices aimed at crediting, only actual dollar re mittances.;;; Devaluation hit Disney hard, slashing its dollar equivalents of foreign currencies from $850,005 to $450,000. Blessings of Overseas production were illustrated by the Unit’s 'Shooting of “'freasure Is- land” in Britain during the year. point where the grosses fun well , ahead of studio and general ex- perises.-- WB’s net for the year is $1,371,- cop less than the take in 1948. ^ Gross income alsq declined during _ I the period to a total of $134,959,- 000 from 1948’s income of $139,- 937. Equivalent earnings on the u 7,295,000 shares of. outstanding comnion amounted to $1.43 per share against'$1;62 in the previous year. . .. ; j In assessing the outlook, Warner 1 said foreign business continues un- ! certain because of devaluation, ,re- ’ mittance restrictions, quotas, for- As! A11 blocked pounds were used in for -the Little Thj^e, ^ho^ com^ j^e ^ect, and certam advances | panics are_ presently studying the j by .^RKO, partner iq. the venture^ ! penalties, aimed against Yank; pix. (Continued on page 16) I be paid by Disn^v out of j Future in Frqnce,= Western Get~ futile Brit^h earnings, Renc^ ^e and certain other : sting was di awn from British de-j better, Wfi pfexy. SEEK HIGH COURT RULE ON valuation. Disney: for a second year topk ri added, Blocked sterling in Britain : is partly being used to produce writeoff of; $1,300,000 in the^form I .“stage Mht” and "•GaptSin Ho In an attempt to wipe out film !.- ratio Homblower.” In a series of theatre transaC- tioiis, WB sold rix houses for. $2^ of a provisional fund agaihst pps^ sible losses on films. This sum was censorshiri in the U S 7the Motion ' hot reduced, report stated, becaiuse kture W of 'Am^iea ,nd : of :$ 882,823 ^sOrt^d:du^^;: 5 M;obo and eight non-theatre Uhited Artiris will push for an ;^hg thq year, piuncipaily from cur- j pj.UpgPtigg :fUj. {^ 613 , 000 , Half-irir appeal before the U. S. Supreme ■ rCncy deyaiuations. . . _ .terest in four houses NvaS also sold Court on the Memphis ban against:; j.. 5 ^®j^^ihcome came to ^ 5 ^ ' for an aggregate, of $ 569 , 000 . Net will get under way before late proceed; at once to convert, One of: March Or April. Gommissiop’s or- i bis. ;major dovYntbwn houses to : der last week on the proceedings I playhouse purposes, set Feb, 27; as deadline for filing 'i^b*s is the yictpria, recently ren- corriments. and riotice of appear- 1 ®'’rited and novv housing ‘ Samson UA’s “Curley.” Decision to file apr; the . J2 months against $4,- peal was inade. despite the fact that conriitutionality of film censorship i pf th^?^ $2,916,887 was derived^ from was passed over by the Tennessee ; feature pix; $1,478,202 froin shorts; supreme, court iru^uling that UA ' $1,289,966 froin . comic strips, had no standing in^Tennessee be- i hcensing cartoon .eharaetefs, corn- cause it was neither an exhib nor . hierclal tieins and other deals, had filed as a .distrib doing busi-1 In the expense^side of the ledger, ness in the state. ; ; i Tennessee court indicated, bow- to, $3,176,679 from $2,- ever, that Claude Bihford; Mem- • ^b, .fbe preceding year, phis censor, was wrong in banning" Other item^ were roughly com- “Curley” ort : racial grounds. Film i I^rable with the ,pri^ stitch, shows a Negro boy playing with ! fbo^ts coming to.$894,379 admin whites; It is still problematical i^atiye expenses^ t^ $8^,936, - ' Other items brought the total to , $5,778,954. profit of $1,240,000 resulted frpni. these deals, of which $866,000 is reflected in fisca;i ’49 and the baW (Continued On page 20) at .anee, with March 15 as final date for replying to commehts, It’S 1 presumed the proceedings would riarf : several weeks later; Coiimiencerneht of the hearings V’ill likely depend bn the conclu- sion pf the color phase of the video heavings, which resume Feb. 20, These proceedings are expected to occupy the Commission for at least five ^eeks arid may go on^ considerably longer j which: would ^hean that theatre video, cptild be bonsidered before mid ■ Pending the proceedings, the Commigsipn extended to April 3 omstandihg temporary authofiza- ' to Par and 20th-F6x covering TV experimential relay sta- in New York. These exten- sions Were rriade subject to any ac and Delilah” (Par), but which also now has TV wiorkshops and as- signed studio spaces: Meanwhile, FPG has got atourid the ,CBC li- cense ref usa 1 .and, with ;evert a “closed circuit” perrnit,. is first to pioneer telcyision in Canada. Sid Olcott Leaves “ To Charities, Friends Los Angelesf JanvI7i WiU of the late Sidney Olcott, who died last nionth in his 77th year, left, a fortune of $250,000 to friends j charities and medical re- ;search organizatioh.s. / Director of Mafy Pickford, Marion Davies, Rudolph Valeritino and other stars Of a bygone era, Olcott bequeathed $10iQ00 to the Harry, M;, Jack L. arid Major Al- $898,936; i bert Warner will cpirie up for re- whether the/Supreme Court will ac. the appeal/ Efic;! Trthri^iton MPAA orez cited the butstanding obligations during the V^icnings.anq koo jonnston, v LOneterm loan for which ert W.. perkms. Five other direc- istatement of the high court in the ^ongieim ,iOdn, lor .wnicn . _ have: tprm«{ which carrv over Government ahthttUst suit to the Pt-oceeds a. PV-bUoation contract;; tors .have^te^ ‘'We have rib doubt that covering comic books are sole-se-;^FY'biner year. . .... l errepc.. vye. nave no auuui indt wa«? rcdncprl bv $ 210145 ' Total salaries of officers, and : moving pictures^; like- newspapers 't diiririb 1949 amburited To l and ;radib, : ore .included in the J'" 800 ly 111 te‘ef ’bv'^thl*flri” mnmidm^ .Octlber, ioiO, has heen edmp^ this' JohnLn added: "That's our^ liquidated: Debentures; of ^52,650: apd Doqilion exactiv We feel ebrifiderit retired, leaving a balance pf eacn. Benjamin is.aimen.son, sqies posiupn exactly, we leei .connueiu ^74^ 050 outstanding ConiDariv veepee, and Harry M. , Kalmine, i the. Supreme. Court will riiake..this.T p J*' oko - u ' ■ * c ' i thpatre chief p'lch tbnk ■ 'nrincinlp the law of the land for also retired 852. .shares of preferred, theatre cniet, eacn tooK . • principle ine idw ^ cfock acauired on the boen mar- Major Albert Warner was paid I all time. to come by^jnUing th a GO.st of $17 341 As of $104,700 as veepee arid treasurer. the m^otion picture, like the^press, ,4 total Of 17 728 shVres re- ;Pbr as veepee, secretary and cannot be censored anywhere in &ndic& le , . V ’, our- country.” .. ^ :| raained ^outstanding., Edward Raftery, UA attorney, ! _ _ . ’■ ' :■ - A- . and Hamilton; E^.Litti^;;M^ j■iVIQlra/ Shearer Set For British Korda pic Sarriuel Carlisle, controller, $50,/ 620. j legalite,. at'b haridiing the case for I the industry; .. , . general counsel drew $100,250 while veepee Sa rhuel Schneider tbpk $16Q,050, Veepee Stanleigh P. Friedmari paid $65,600 arid Moira Shearer, star; of J. Arthur Bank’s “Red Shoes;” has been ! signed by Michael Powell and Emerie: Pressbiirer to appear ; in [ On an official count. Major Wary ner .was top stockboldert as of DeeV 1, with 438,800 shares of. com- mon bills 21,006 in trust. Jack .tion the agency, may take . in con- ] Motion Picture Relief Fpriv as a Section with, its investigation Of. memorial to his late wife,' Valen- qualifications of anti-truSt viola- tiiia (j rant Olcott, Another $10,0,00 Wrs. to the ;Salvatm^ army. Pixites End Hosp Tours > A two-and-bne-halfrmbnth tour of 98 Veterans Adminhstration; hos- _ pUMs has:lust been completed by to W inml/' Tor , 35 film performers. a v j j • , i i iSbares and 21,500.: in trust while The tour, according to F. R, v Alexander Korda s London Film . Harry trailed with 265,750 shares assistant admlriistratbr for ; Productions. ] outright, 16,000 in trust.^; ' ^ ^ Another Korda picture to be j . Proxy revealed that \iVtort Biu- made by Carol Rqed Will have ai' rnenstock,; ad-pub veepee, paid off ; VA Special Services, was a “Take HollyWobd to the Hospitals” proj- ect, conducted jointly, wHb Vet- ] elans Hospital Camp Shows. Germari locale, with lensing to be- gin in Jurie. a $14^000 loan froiti the company in the course of the fiscal vyear.