Variety (December 1950)

♦ k ^ r , Wedhcsday, December 20, -1950 ^h ‘ U^KiETY M • ^ ^ . M PICTURES 19 Govt. Eyes Freeze, Increases in Films Hollywood, Dfic. 19. Plans for cost-of-living increases and pension programs are being mapped by Hollywood Guilds. Unions are apparently styitiied by Government’s decision to seek wage controls. Union leaders frankly admit cur- rent negotiations and plans are jeopardized by intention to freeze salaries. Most important group to be involved in any Federal freeze would be AFL film council, com- prising more >than 20^000 studio workers iri affiliated unions. Pro- ducers recently nixed a proposal for discussion of cost-of-living in- crease and were served last week with demand that negotiations be started for pension plan and group insurance. Increase in minimum wage scale Is one of three major demands Of the Screen Writers Guild. Govern- ment action, might wash this out but Guilds’ other points, particu- lariy “separation of right,” issue, would still be pertinent points in controversy. Although not yet disclosed, it’s expected that Screen Actors Guild would ask for wage hikes, espe- cially for low-bracket and bit- player members, when negotiations start within the next few months. Present Television Authority cam- paign for increases in Video would also be jeopardized by a freeze. Grinieff-UA Contintied from page 5 Its present rough period. He said he was uncertain ak yet how much would be needed, but estimates are around $500,000. After that a permanent arrangement could be worked out, Grinieff indicated, which might entail around $2,000,- 000. That would include coin for financing production. Money would come from an east- ern financial group that wpuid get collateral for its temporary loan. Permanent arrangement would „be on a more complicated basis that would involve management and ownership of the company. Part of the arrangement, Grini- eff said, would entail bringing in a well-known industry figure who has the confidence of banks and pro- ducers. He has a tentative arrange- ment with such a man to step in if the other details can be worked out, he declared. The man, he empha- sized, w'as not James A. Mulvey, prexy of Samuel Goldwyn Produc- tions, who has repeatedly denied rumors that he might become as- sociated with UA. Grinieff said he will have no money in the projected setup or any corporate position or Interest. He asserted his feeling that contin- uance of UA Is imperative tcPthe film industry. He said he’s not asking anything now, nor does he expect to get anything. The quid pro quo, if any, he hopes will come in the future when he would be recompensed for his.services by be- ing given control of certain foreign operations for UA. AVhether McNutt, who took over as board chairman in July, will step out without compensation appears subject to a difference of opinion. Awhile it has been Widely reported that he wants a payoff for. his ef- foiis, persons Close to McNutt say he is willing to walk now if Chaplin and Miss Pickfofd think they haye another deal that can be success- fully set via his departure. ELC-Rank Continued from page 5 profit by such an arrangement, since he owns a 49% interest in LFD. It Would primarily distribute Korda pix, but there is. an affinity in that Robert S. Benjamin is prexy and counsel of the Rank or- ganization in the, U. $., while Ar- thur Krim is Coiinsel and board member of LFD^ They are part- ners in the law firm of. Phillips, Nizer, Benjamin ^ Krim.; ELC’s unhappiness with the present Rank arrangement results from its inability to get favorable breaks for its product bn Rank’s Gaumont-British and Odeon cir- cuits. It is felt that :the Rank’ dis- tributing setup is sloughing ELG pix in doling out circuit dates. Even U complains aibout the sariie thing bccasionally, although Rank generally sees that the' company gets a break because of his heavy investment in it. Most U. S. distribs are unhappy to Varying degrees on their de- pendence^ oh Rank with his con- trol of tw'O of the three British chainSi. Like ELC, their squawk is that there’s no opportunity for negotiation; they’ve either got to take or leave the deals offered by Odeon or G-B. Withoqt circuit bookings, distribs can only go to individual indie houses, where they can make opt okay if they are able to get two pix booked as an equal-billing d u a 11 e ri They’re pretty well riiurdered if they must take bottom spot on the twin-bill. ELC will likely give its product to some tndie distrib for release when it breaks with Rank. This is contrary to action of Republic in setting up its own offices through- out Britain. )faines at ’Harvey’ Bow Benefit opening tonight (Wed.) of ‘’Harvey” at the Astor theatre, N. Y.,. will feature on-stage appear- ances by an assortment of . show biz personalities. Proceeds will go to the Louise Baer Memorial Fund of the N. Y. Heart Assn. Slated to show at the preem are Burns <8c Allen, Eddie Cantor, Jim- my purarite, Josephine Hull, Glo- ria Swanson and Robert Merrilh among others. Jesse Block & Fve Sully sparked the drive. ’Mr.iyeed$’ Continued from page 3 Film Stocks Get OK S Continued from page 7 Denver Ups Priees 5-1 Oc . Denver, DeC. 19. First-runs will boost their mat- inee prices from 35c to 40c and their night prices from 70c and 74c to 80c Christmas day or before the .first of the year. . Subsequents will follow in some instances with a nickle boost. Continued front page 5 of equipment but that the system has since been compressed into a size that would make it commer^ cially feasible. Fact that Skouras and Sponable are the first American film com- pany execs to travel to Switzerland to witness the unit in operation in- dicates that 20th is hot yet tied exclusively to RCA’s big-screen sys- tem. Twentieth has invested con- siderable reseai'ch money in help- ing iron out the kinks in the RCA tinit, which was believed to signify that the RCA method is the one that 20th would utilize wli^n it rolls its long-standing plan of a theatre TV circuit of theatres on the Coast. of 20 U. S. pix for more than two years. With increasing hostility between the two countries, nego- tiations have been allowed to lapse in the past few months, although they actually never looked favor- able..' Moscow showing of the James Stewart-Jean Arthur, starrer is, of j course, contrary to international copyright conventions. Russians, however, dp not subscribe to these. Since neither Col nor the MPEA is receiving royalties on t he film! from the Soviet, squawks may be filed with the embassy in Wash- ington, although it is thought un- likely they’ll bring any results. Film is the first U. S.-made to be I shown in a first-run Moscow house I in more than two years. It is j drawing crowds, according to the ' AP, under the title “Senator.” It j depicts machine politics, showing j activities of a political boss who ! controls the press and radio in his j state and pushes around senators and congressmen. An MPEA exec declared yester- day (Tuesday) that if the Russians were showing the pic as it was originally released he’d be “glad to donate to them all the prints they want.” He pointed out that the finale really showed how democra- cy Worked,, for a little man who had been a nobody but Who had become incensed at the political boss’s pushing around had suc- ceeded In throwing hihi out. tainment, plus the lack of many good motion pictures. Waxing optimistic, Bernhard h Co. asserts the novelty of video entertainment will wear off, which factor, along with a stepped-up number of film releases, will con- tribute substantially tp; bolstered boxoffice. Wall street company further states that while corporate tax- ation is likely to rise, thus cutting into per share profits of the film firms, current quarterly dividend rates, of all the majors should be maintained. Especially healthy, according, to Bernhard, is Columbia, whose 1951 dividends may tptal one dollar per share, as compared With 75C this year. Divorcement of the inte- grated companies is looked uopn as a favorable factor for Col, which figures to have greater mar- keting opportunities. As for Loew’s, continuation of the 37V^c quarterly divvy seemk assured, Bernhard reports. Gross revenues promise to be well main- tained in light of a possible im- provement in domestic theatre at- tendance and a probable rise in in-r come frohn foreign operations. Profit margin may widen for Loew’s, it was said, because. of lower film amortization Costs and operating economies, but heavier taxes will cause 1951 earnings to “fall moderately” below 1950: Par to: Climb Paramount, reportedly headed for a 1950 profit of $6,400,000 or $2.45 per share, is likely to climb above that point in the next year, the investment concern states. Continuation of the 50c disburse- ment appears assured, it was added. UPT shares are “especially rec- ommended for substantial appreci- ation and exceptionally generous yield” by Bernhard. Both the near term and longer term earn- ings prospects of the circuit are favorable, it W’as added. ‘ Techni dividends are likely to total $2'per share again in 1951, the Bernhard report states. Earn- ings in 1950, it was said, are in- dicated at $2.30 per share on sales of $22,000,000. Techni is expected to operate at full capacity in the new year, Bernhard anticipates, with the processing of 75 features, as compared with 65 in 1950. Also apparently secure are 20th’s 50c quarterly divvies. Bern- hard predicts that some increase in domestic theatre attendance, ac- celerated film production and larger foreign revenues may boost the 1951 income over the current year but heavier tax liability will cut profits to about $3.25 per share. Further gains in U’s operating results are in prospect for; 1951, Bernhard declares, with resump- tion of the quarterly dividends on the common stock probable. U’s competitive position in the indus- try also figures to improve as ths majors divest themselves of the- atres. Wider margin of profit; gen- erally is anticipated, An increase in WB’s 1951 divi- dends ovCr 1950 is cited as a pos- sibility. Although the major’s gross revenues may decline slight- ly because of some theatre divesti- ture, lower amortization charges and reduced operating expenses may permit some added profits, ac- cording to Bernhard. N.Y. Par Lobby Show To Honor Crosby’s Anni Opening of ’‘Mr. Music” at the N. Y. Paramount theatre today (Wed.) will be accompanied by a tv/o-hour radio show from the lob- by, occasioned by Bing Crosby’s 20th year as a solo performer. Slated to salute Crosby are Martin Block, Guy Lombardo, Ella Fitz- gerald, Jimmy Dorsey and Dorothy Kirsten. Program will be aired by WNEW, 8 to 10 p.m., EST. Also joining in the tribute is the American Society of Composers, Authors and Publishers, Otto Har- bach, ASCAP prexy, will present a plaque to Crosby, by proxy, on ■ the -Dec. 28 “We the People” ra- ' dio-teevee show. 4« ^ESA Nancy’s fresh young beauty is in harmony with the gay romance of *'Mr. Music.’’ She’s a^Lux Girl- guards her fair complexion with the beauty soap of the stars.” 'Active lather facials really work for me,’- says Nancy. smooth the rich Lux Soap lather in well,’ rinse, then pat with a towel^ to dry. Leaves my skin feeling wonderfully soft and smooth ’.’*5 Try this gentle Lux Soap care screen stars recommend, and thrill to the quick new beauty it gives your skin! m \< / ■'v y-j <• N ..'.f,\./ a/ / -'■&m '/ ' 9 . ft s' VV .6^ 9 eiit of 10 Seroon Star* «»• T®*'®* *®"'^