Variety (September 1950)

Wednesday, September 6, 1950 Some clarification of the muddled financing picture at Uni- ted Artists may result from a series of meetings between board chairman Paul V. McNutt and homeoffice executives commencing today (Wed.) in New York, McNutt returned to ,N. Y. the past week- end after an extended vacation, and company officials are hopeful that he i B s now ready : to make known UA’s future Course so far as the availability of credit is concerned. However, in Chicago yesterday (Tues.) Milton Gordon, v.p. of the Walter E. Heller Co., commercial financing Outfit, said that he had engaged in UA talks in N. Y. at the weekend and his company was not interested in providing UA with any immediate, aid. He added the decision against providing financ- ing will continue^ in effect until UA establishes itself on a more solid footing, production-wise and internally. Oh the latter count he pointed to the number of personnel changes made in recent weeks. Meanwhile, some of the uncer- tainty which has prevailed since the ; new regime took over was cleared when former president Gradwell Sears returned to the homeoffic,e as vice-president in charge of sales, as provided by his employment contract. This came as a reassurance to independent pro- ducers releasing through UA and their eastern representatives, who had been in a state of unrest and indicated intent of delaying deliv- ery of prints. A Switch Sears’ return took, almost all concerned by complete surprise, particularly since it grew from what appeared to be a legal maneu- (Continued on page 20) Warner Bros. Sto Seen Bold Step; Ale ynTJiwlrewllE Warner Bros.’ widely-broadcast invitation of three weeks ago for submission of original scripts by all-comers has won the admiration and applause of other studios’ story departments. Feeling is that it’s a bold step in light of industry experience in solicting screen ma- terial from amateur authors. There’s unanimous agreement that new sources of stories are direly needed, but also that the WB step may. prove very danger- ous legally. Likewise, there’s com- mendation for Warners’ willing- ness to go to such lengths for ma- terial though that experience has shown the chances are slim for important results. Metro tried a similar idea on a more limited basis about 15 or 20 years ago and found it reaped only headaches and expense. Nobody tried it again until Jack L. Warner issued his statement recently. In- terest it has created is reflected in the deluge of yarns to the com- pany’s story departments. i ®n both coasts. Among other points about the Warper plan is the expense in- volved. If everything that comes in is to be readmit means employ- ing a large staff of experienced story analysts, Which costs money. If everything is not to be read, there’s no point to the whole scheme, unless it be • publicity. (Continued On page 9) in to N.Y. Charles Chaplin is due in New York from the Coast Sept. 20. Chaplin's status as a United Art- ists’ stockholder is vague as far as the industry is concerned at present and the possibility is seen he’ll confab with UA’s new man- agement on company’s setup. Among other matters on his agenda are huddles with Arthur W. Kelly, his distribution rep, on plans tor take some of his old comedies out of the vaults for re- issue. New contract being talked with 20th-Fox by Joseph Mankiewicz may give him the right to produce one picture a year independently. Negotiations are still very much in the preliminary stage and it is not certain yet that if Mankiewicz wins the right to make indie pix they’ll be distributed by 20th or another company. - Director-writer pact under which Mankiewicz is now operating has seven months to go. Talks on a new deal began prior to his. depar- ture for Europe recently and will continue on his return to the Coast this week. Major American distribs, ready to Call off their efforts to sell Holly- wood product to Russia, have re- ceived a U, S. government sugges- tion that they continue their nego- tiations ais long as any possibility at all exists. The suggestion was reportedly imparted to company toppers at a session in New York early last week by Eric Johnston, following talks he held with Pres- ident Truman and State Dept, of- ficials. Major prexies,. it is understood, had been about ready to instruct Irving A. Maas, v.p. and general manager of the Motion Picture Ex- port Assn., the co-op which handles the Russe territory,, to give up af- ter almost two years of delaying tactics by Moscow. One of the reasons behind the desire to call the dealings off is the feeling that the industry is suffering public re- lations-wise in the U. S. as a result (Continued on page 16) 7 N.Y. Circuits Team To Push ‘Early Last Show' Plan in Bow in Queens In a new example Of cooperation among exhibitors, representatives Of seven major New York circuits banded together this week to push the so-called “early last show’’ idea to customers in the borough of Queens, N. Y. Circuits are staging an election among filmgoers, which will be announced in special quar- ter-page ads in two Long Island daily newspapers, Sept. 13, to de- termine whether the customers favor a change in tha theatres’ pro- gram schedules. Tieing in with the campaign are Brandt Theatres, Century Circuit, Interboro, Loew’s, Prudential, RKO and the Skouras chain. Idea is based on an experiment launched several months ago at Loew's Em- bassy theatre, North Bergen, N. J,, under which the last complete (Continued On page 20) J. Arthur Warner’s 150G Deal in Justman’s MPC Hollywood, Sept. 5. Another Warner is now in the picture business, but not of the Burbank clan. He is J. Arthur Warner, head of the Wall Street investment house bearing his name, who becomes a director of the Mo- tion Picture” Center with an invest- ment of $150,000. The New Yorker, while here en route from a Honolulu holiday, closed the deal, which is person- ally guaranteed by Joe Justman, head of MPC, large independent rental lot. Justman has pieces, ranging from 2V6% to 10%, in 11 pictures turned out on the MPC lot, and these equities are guaran- tees for Warner’s investment* By MIKE KAPLAN Hollywood,: Sept. 5. Annually at this time, Hollywood veterans peer into the future in an effort to determine what job prospects are like for the final third of the year. Usually, the crying-towel boys come back from the long Labor Day weekend with dire forebodings. This year, to the surprised de- light of the timid listeners, the feeling of pessimism seems to be disappearing. Not that there’s any great, talk of a vast production up- surge. But by arid large, filmites expect production to continue along at an “average” level for the next several months at least. Just what constitutes an “aver- age” in these parts is hard to es- tablish. But the boys who can spot a trend ait 500 yards believe firmly that the trend at the moment is toward normalcy-—that is, toward a sensible level of production that will keep studioites busy through the early days of the new year at least. To support this contention, they point out that' some of the studios have already had What amounts to a layoff, a summer hi- (Cbntinued on page 16) J. 1.. Warner’s Quickie Jack L. Warner, who passed through New York last week on his way to France; is expected back in about a month. He flew to Paris last Wednesday (30) night and headed from there to the Ri- viera, where he has a home. Trip was said to be purely a va^ cation, He is expected to sperid at least a few days in Warner Bros, homeoffice huddles »upon his re- turn to New York and before going back to the Coast. Working formula of the new trade agreement with the British will be taken up in detail by the directorate of the Motion Picture Export Assn, at a meeting in New York tomorrow (Thurs ), with the most discussion promising to cen- ter around the specific definition of production investment in Eng- land. The basic deal, which already has been given tentative approval by MPEA. and the independents, provides for annual remittance of earnings up to $17,000,000. Ad- ditionally, each company may con- vert earnings over that level at the rate of 50% of the amount of their investment in British film- making. This carries with it: an abundance of technical detail which is awaiting' clarification. The Society of Independent Mo- tion Picture Producers is slated to meet in Hollywood later this month on the pact which will be (Continued on page 18) London, Sept. 5. J. Arthur Rank, in connection with his annual financial report is- sued today (Tues.), disclosed that he will not make any films on his own during the coming year* but hoped to produce them all in asso- ciation with British independents or American firms... He said he hoped by this means to complete 20 pix during the year ending next June. Rank added that he will give up to 50% financing via distribution guarantees, equipment and facili- ties of Pinewood and Ealing stu- dios. Risks involved will be shared by General Film Distributors (a subsid of Odeon) and Gaumont- British, 60% by the former and 40% by latter. In his introduction to the report, Rank stated that his policy has been to reduce film production com- mitments to such a level that the disastrous financial experience of (Continued on page 20) . * • „ . SDG Cites Huston Hollywood, Sept. 5. Quarterly Award of Screen Directors Guild goes to John Hus- ton for directing “Asphalt Jungle.” Period covered by award is from May 1 to July 31, initial quarter of the 1950-51 year.' Assistant director Jack Green- wood will receive medallion for work on same picture. London, Sept. 5. J. Arthur Rank Organization, in its annual financial report issued today (Tuesday), disclosed a loss of £91,818 ($257,000) for the year ending last Jun^ 24 as against a profit of £33,010 ($92,000) for the previous fiscal year. Paradoxically, despite the figures, study of the complex statement of the Rank fi- nancial empire reveals the 12 months as having been consider- ably more successful than the dis- astrous 1948-49 semester. While Rank’s various production activities continued to account for heavy losses in the 1949-50 stanza, they were cut impressively from the previous year. New report shows production having lost £2,- 325,000 ($6,510,000) compared with £.3,350,000 ($9,290,000) during the previous year. Consolidated statement of Rank’s varied production, distribution, ex- hibition and technical enterprises also showed a very substantial im- provement in trading profits. In- crease amounted to £ 2,300,000. Only £ 1,706,070 of this increase shows on the current report, how- ever, because of a change in ac- counting methods. Trading profits for 1949-50 are listed at £ 3,293,426 (Continued on page 18) Tourists Lagged Behind For Venice Pix Festival; By HELEN McGILL TUBBS Venice, Aug. 29. Eleventh annual Venice Film Festival, ending this Saturday (9), has not drawn the flocks of tourists anticipated for the event. Probably because of the Korean situation* there are few Americans present. Rubbernecks now in Venice ap- parently are not impressed® with the opportunity of seeing the films, since they can see most of them at home. Most people here have been in- vited by the Italian government, so the bar and gambling casino (Continued on page 22) Labor Day Week Booms Biz ; ‘Rose’ Takes 1st Place With ‘Pants/ ‘Sunset/ ‘Stock’ Next Biggest Labor Day week upsurge is 1 carrying film theatre biz in key cities to highest peaks since early this year. Reports from Variety correspondents in 22 key cities shows the top eight pictures gross- ing over $1,852,000, or a pickup of nearly $900,000 over recent weeks. Cool weather in many keys was a favorable factor but strong product appeared the keynote. “Black Rose” (20th) is easily box- office champ this session, with more than $455,000, total, which is about $119,000 ahead of its nearest com- petitor. Tyrone Power - Orson 1 Welles starrer is registering fine to terrific biz in some 15 key spots, being leader in four cities. “Fancy Pants” (Par) takes over second slot by a sizeable margin, nosing .... out “Sunset Boulevard” (Par). Both are largely smash in current week. “Sunset,” third place winner, hung up a new Labor Day week high at the N.Y. Mysic Hall, where in its( fourth week. “Summer Stock” (M-G), on its first week out on extensive release, is finishing fourth. “Tea for Two” (WB), another new entry, is taking fifth money while “Broken Arrow” (20th) is winding up sixth. “Our Very Own” (RKO), even in the face of all this new product, captures seventh position while “Louisa” (U) is eighth. “Three Little Words” (M-G) and “Born to Be Bad” (RKO), latter a newcomer, round out the Big’ 10 list. “Kiss Tomorrow Goodbye” (WB) and “In Foreign Legion” (U) head the run- nerup pictures. Of the new entries, “Saddle Tramp” (U), “Union Station” (Par) and “Life of Her Own” (M- G), besides “Born,” hint greatest possibilities. “Tramp” is socko in three Denver spots, holding over in all of them, and is fine in Omaha and Chicago. It also started out well in St. Louis. “Life” is smash in San Francisco and solid in Philly. “Station” looms great in Seattle. “Shakedown” (U), also new, is okay in one situation and nice in another. “Treasure Island” (RKO) shapes great on third N.Y. Week. “Flame and Arrow” (WB), big in Seattle, is smash in Montreal. “Destination Moon* (EL), fine in Baltimore, looms solidly in Philly and socko in Washington. “Desert Hawk” (U) looks nice in Frisco. “Quiet on Western Front” (Indie) is great in Cincy. “So Young, So Bad” (UA) shapes smash in Montreal. “711 Ocean Drive” (Col) is okay in Minne- apolis. (Complete Boxqffice Reports on Pages 11-13) Trade Mark Registered FOUNDED BY SlME SILVERMAN Published Weekly by VARIETY, In* Sid Silverman, President 154 West 46th St., New York 19. N. V Hollywood 28 6311 Yucca Street Washington 4 1292 National Press Building Chicago 11 612 No. Michigan Avo. London WC2 8 St. Martin's PI., Trafalgar Sq. 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