Variety (November 1950)

Wecliiesday, November 1, 1950 P^SstlETY PICTURES SURPRISE COMPROMISE Houston, Get. 31. *f Metro, determined-to stannp out percentage-chiseling by exhibitors, \vill hereafter refuse to do business with any exhib caught cheating, sales veepee William F. Rodgers told the Theatre Owners of Amer- ica convention here today (Tues.). He also revealed plans to divulge to a losing bidder for the first time' the terms under which the winning bidder obtained a picture, and an- nounced that M-G henceforth will conrine its bidding activities only “to theatres that are adequate to eshibit our j^roduct on the run de- sired:'' ■' : ■' •. In a general statement of policy, the M-G. topper said that, with no reference to drive-in operations in Federal court provisos, his com- pany has decided to treat drive-ins ‘^generally as we do the conven- tional theatres” if they operate in the same way. He reiterated his request for a system of . industry arbitration to settle disputes Over clearances and runs and urged the TO A members to give their com- plete support to the Council of Motion Picture Organizations, de^ daring *T believe it (COMPO) will be an instrument of much good for our Industry.” Rodgers said that the practice of some exhibs to “short-change” the distributor on percentage deals “can only result in harm to the Vest majority of honorable exhibi- tors.” He emphasized that Metro will continue to prosecute all such ohenders, adding that “where we hereafter discover a theatreowner falsifying his records to us, we will no longer solicit his business—we prefer not to sell them any of dUr product.” Distrib chief reiterated the state- ment On bidding he made at the recent Allied convention in . Pitts- burgh to the effect that Metro has not invited bidding but follows the procedure “because we know of no other method to satisfy competing interests who are seeking the same po.sition as to product and its avail- ability.” He warned exhibs guilty of overbidding on product in the (Continued on page 23) Budget Makes M-G Film Most Costly Production Rome, Oct. 31. Metro’s “Quo Vadis,” believed to be the most expensive picture ever produced, w'ill carry a nega- tive print cost of at least $6,500,000 by the time the cameras are shut- tered within the next two wrecks. Tlie homeoffice is expected to add at least another $.500,000 to the total for its ad-publicity campaign. About $3,000,000 of the produc- tion budget represents frozen lire. Metro’s actual investment in Amei> icatv dollars comprises the remain- der, Closest :^lm ever to approx- imate that cost previously was “Gone With the Wind,” produced by David Q. Selznick and released by M-G, which caiTied a $4,000,- OUO budget. “Vadis’* was six months in shoot- ing, with most of the exteriors hav- ing been lensed on the actual early Romah locales. Film is not sched-^ uled to preem in the U. S. until nex( summer or fall. M-G home- office reportedly has not yet worked out its sales or exhibition policies. Company is said, though, to be miilling the advisability of releasing it on a special spot-book- ing system for lengthy runs. In New York, for example, it may open in two Broadway houses simultaneously on a two-a-day re- served seat policy.' With the picture in ; the final stages of production, the cast and crew have started: to break camp for their return to the U. S. Debo- rah Kerr is slated to sail from London about Nov. 16 and will be. ^llowed about a week later by Robert Taylor, who co-stars. Producer Sam Zimbalist and di- Youngstein Top Fla^k Fpr Brotherhood Week Max E, Youngstein, Paramount’s v.p. in charge of ad-publicity, has been appointed hational cliaimvan of ad-publicity, motion picture divi- sion, for Brotherhood Week, Feb. 18-25. Sponsor of the observance is the National Conference of Chrisr tians and Jews. Youngstein served in the same capacity last year. Eric A. John- ston, president of the Motion Pic- ture Assn, of America, heads the film division. Houston, Oct. 31. Twentieth-Fox sales veepee Andy W. Smith, Jr., revealed here today (Tues.) that 2()th’s increased pro- duction program is costing the company. $10,000,000 more per year. Recognizing that pictures do not have the sustaining power in today’s market that they formally had, he said, 20th has scheduled 36 “A” films for 1951, represent- ing an increase of 11 over those turned put during the current year. Charles Einfeld, who also spoke today before the Theatre Owners of America convention here, told the exhibitors that the film busi- ness, which has earned a reputa- tion as “the Adam and Eve of showmanship.'* has been “left on the wayside by modern history.” Without making a direct pitch for exhibs to allocate more money for ad-publicity purposes, Einfeld noted the tremendojp. amount of coin spent annually by such outfits as local Chevrolet dealer associations. Where these organizations, which represent the exhibs’ counterpart in the automotive business, spent $27,000,000 last year, some key city theatres allocate as little as $120 for then “house budgets,” Einfeld suggested that exhibs, like the car dealers, band together to “invest in community public re- lations to protect your own inter- ests,” with the form and types to vary according to the needs of each locality. Twentieth ad-pub: licity chief claimed also that one out of every 10 lines of news- paper advertising today constitutes television advertising, and asked: “How have we permitted this to happen right in cur towns and in our own nevyspapers?” » Einfeld pointed to the TOA delegates that, while 20th supplies 24-Sheets gratis to them, the com- pany has trouble getting rid of as (Continued on page 20) Houston, Ocf. 31, Reelection of Sam Pinariski to the presidency of Theatre Owners of America at its convention here yesterday (Monday) was a surprise compromise dictated by a desire to obviate a doWn-the-line split between the big-league and grass- roots T() A units. Robert Selig, Fox Intermountain exec, was an unexpected dark horse candidate around whom much discussion re- volved prior to Pinanski’s hold- over selection. It was felt, how- ever, that the fact he was not known to the" membership, among other things, miUtated against him. He was elected to the board as a Tesult, a n d well in ay be next year’s leading candidate. Election was by far the roughest in TOA’s three-year history. It was by the board of directors, which acts on a slate drayyn up by an exec committee consisting of 13 members, plus all the of- ficers. Committee wrangled for 5V^ hours Sunday night (29) and finally adjourned at 1:30 a.m. until later in the inorning when discussions began taking on a bitter tone. Nominating sub-committee, chair- manned by Bob Wilby, of Atlanta, Was named to work through the night in attempting to come up with a compromise. Filby Had Strong Support Wilby himself had strong sup- port as a compromise candidate, but he didn’t want the job and hit on the Pinanski suggestion. That won unanimous approval of the exec committee, and later of the board, in an effort to smooth out Sunday night’s ruffled feath- ers. Slate will be officially pre- sented to membership Thursday (Continued on page 18) 75 Members Slated For Induction by Pioneers Some 75 members wilt be in- ducted into, the Motion Picture Pioneers at the organization’s mid- century dinner to be held in New York Nov. 1(3, founder-prexy Jack Cohn disclosed last week. Those joining the membership rolls rep- resent a record high since incep- tion of the group 11 years ago. Event at "ilie Hotel Waldorf-As- toria Will also see 20th-Fox. prez Spyros SkouraS honored as “Pio- neer of the Year.” ' “Class of 1950” comprises S, Charles Einfeld, Charles P. Skou- ras, Otto E. Kpcgel, Emanuel Sil- verstone, Ilarold W. Seidenberg, Sahiuel Bi.sehdff, Edward O. Black- burri, Samuel J. Briskin, Harry Joe Brown, Cecil ^ B, De Mille, Henry Ginsberg, Isidore G. Gold- smith, Joseph H. Hazen, Sol Les- J, Manriix, Samuel ser, Edgar Marx, Sid Rogcll. Adolph Schimel, rector Mervyn LeRoy will head 1 Edward Small, Jack L. Warner> for home around Nov. 21. 1 Jules J, White and Clay Hake. Motion Picture Sales Corp., set up by Neil Agnew and Charles L. Casanave a couple years ago, has changed the format of its opera- tion from it. original plan of func- tioning directly as a distributing organization. Agnew, who con- tinues as prez of the outfit, said this week that it wOuld continue to import pix from abroad or otherwise acquire them, but that they’d be released through a states-rights network or one Of the established distributing com- panies. MPSC is thus currently making a deal with Eagle Lion Classics to release two pix in the produc- tion of which the Agnew-Casanave setup participated abroad. They are “Volcano,” Anna Magnani-starrer, made in Italy, and “Wicked City,” •starring Maria Montez, made in France. The remainder of MP$C prod- uct has been turned over to states- righters with whom the company has working arrangements. Pix in- clude “Movie Crazy,” the Harold ,Lloyd reissue;; “Tabu.” ‘‘Mad About Opera,” “Pagliacei” arid “Preju- dice.v Arrangements are being made for pfbduct-ion of a series of films in Canada, Agnew said, but dis- tribution has not been set for them. MPSC prexy disclosed also that he'U be leaving for two months iri France shortly, during ; which time he’ll endeavor o ac- quire other product for the com- papy. Agnew said that recept partner- ship he entered into with Harry Sherman for production of six westerns and four features a year for EL(i release had no. corinec- tion with MPSC. Casanave like- wise, he explained, had been mak- ing some deals on his own out- side the MPSC setup, which would j be maintained as a partnership for I feeding through it whatever was I convenient. Of COMPO as National Body to Ease ^-G-M Story^ Trafler May Be Cut for Public “M-G-M Story,” five-reel trailer on forthcoinlng pictures produced by Metro to show exhibitors, may be boiied down to a two-reel yer: sion for general theatrical release for public consumptipn. “Story,’* which includes scenes from 21 dif- ferent films and is narrated by production veepee Dbre Schary, had its fiirst screening at the The- atre Owners of America conven- tion in Houston yesterday (Tues.). Film was produced to show ex- hibs what thei*’ can look for in the way of future product, instead of merely hearing one of the Metro execs spout about it. Company dis- tTibuted a two-reeler last year for theatrical release to mark its 25th anni; Local Groups Quickening the pace in setting local committees throughout the couritry,; Council of Motion Picture Organizations hast reached the point where the group has at least} one representative iri all 31 ex- change areas. In each case the individual is undertaking the job of organizing the local unit. To date, five regional commit- tees have been established, repre- senting Seattle, Detroit, Atlanta, Minneapolis and Charlotte. The Seattle group, which completed organization last Friday (27), com- prises Maury Saffle, of Saiffle’s Theatre Service; Frank Newman, Evergreen Theatre Corp.; Fred Danz, Sterling Theatres; James Hone, Independent Theatre ; Own- ers of Washington; Charles Doyle, Central Labor Council; Vic Gaunt- let!, Evergreen; William J. Con- ner, John Hamrick Theatres; L. O. Lukan, Shearer Theatres, and Sam Davis, Metro. Sixth committee, covering Buf-! falo, is nearing completion, with j representatives of Theatre Owners of America and Allied States Assn, at work on the organization. With the representatives now set in the other 25 brarich centers, COMPO execs are hopeful the basic organizational work across the country will be accomplished within’ a matter of a couple of months. At that point the all- ■ industry outfit will be set to op- erate in high gear witlv the activi-■ ties of its field units fully co- ordinated. i The individual reps were select-} ed on the basis o^^ their prpmi-j nerice in industry organizational | work in the past, such as with the; (Continued on page 20) Houston, Oct. 31. Although both quantity and ve- hemence of opposition to Council of Motion Picture Organizations by grassroots exhibs here is a surprise to industry observers, there ap- pears to be no doubt that Theatre Owners of America will continue actjve support; of the all-industry public relations organization. There may, however, have to be a re- statement that COMPO will re- strict itself to activities on a na- tional level, since it is the fear of COMPO setting up iri their p\yrt local bailiwicks that appears to be Causing principal opposition. COMPO has been reserved as one of final issues to come to floor of foUr-day TOA corivention at Shamrock hotel here. As far as TO A is concerned and without TOA’s 8,000 or so theatres, it would be dead, with that point to be de- termined at exec committee and board meetings Thursday (2) morn- ing. There will be floor discussion that afternpon, following talk by COMPO prexy Ned Depihet. Ac- tually, however, there's no, vote re- quired on TOA’s continuance in COMPO, since, unlike Allied States Exhibitors Assn., it did not put a one-year time limit on original par- ticipation. However, Depinet and Robert W. Coyne, former TOA exec director and now special counsel to COMPO, have been here since Sun- day doing an effective lobbying Job of explaining the all-industry or- ganization to such directors as Ed- ward Zorn, Chicago, and Robert R. Livingston, Lincoln, Neb., who op- pose it. . Opposition Seen Won Over Zorn, Livingston and others can be won over. sufficiently, it is be- lieved, to offer no opposition if they get assurances that COMPO will not move in on them locally. They are getting such assurances from Depinei and Coyne, as well as from TOA directors like Ted Gamble, who are thoroughly in favor of the organization’s con- tinued partiejpation in COMPO. Fly in the soup is COMPO’s current activity, under generalship of Coyne, is setting up local area committees for COMPO in 31 ex- change territories, as was done with War Act’yities Coriimittee. Start has been made In .setting up such groups with reps of each (Continued on page 23) See upped Capital Tax Vice Excess Profits Levy Wa.shingtOn, Oct. 31. Congressional tax experts are working on plans to raise an addi- tional: $4,700,000,000 revenue through increases in capital taxes rather than through an excess profits tax. Congress is slated to reconvene after the elections, dur- ing which time it’s expected, an ex- cess profits levy may be enacted. Tax attorneys for the Motidri Pic- ture Assn, of America fear that an excess profits tax will put new firms out of business since the im- post is based on profits of a base year when new firms are either los- ing money or earn small amounts. Increased capital leVy, it’s argued, would be preferred for the new enterprises. Cjias. Skouras Expects Justice Dept. Talks To Go 2 More Weeks Houston, Oct. 31. r Charles Skouras, here for Thea- tre Owners of America Convention, said he expects current series of talks with Dept, of Justice, on di- vorcement of 20th-Fox’s National Theatres chain, to run about two more weeks. At that time, lie said, 20th toppers will know whether they’ll ink deal with the Govern-, ment to rid themselves of theatres or go into court for another fight. Skouras said lengthy discussions, which have gone on for weeks now, are occupied with town-by-town consideration of National Theatres’ compefitive situation. Out of the talks, he saidr would Come Justice Department’s conclusion on what houses the chain must unshackle. . If it feels that the circuU can. be left with a sufficient number of theatres to Contmue functioning in a strong competitive position, National Theatres, prexy said, would accept anti-trust divorce- ment dcciaioh now pending against 20th. Otherwise, it will resume court battle to get judicial de- termination on which houses cir- cuit must sell Off to other exhibs concurrent with divorcement. Skouras indicated he was satis- fied with progress to date. He came here, from Washington and said he'd return there at, end of the convention Friday to eontinue talks.