Variety (February 1951)

Wednesday, February 7, 1951 PICTURES Negotiations were in progress4 this week on a variety of fronts looking to acquisition of Howard Hughes controlling stock in both RKO Picture Co. and RKO The- atre Go. ■ . „ Two new potential purchasers of the production firm's shares have comeup. While Hughes has given no indication he’d part with this end of the business, his chief aide, Noah Dietrich, has listened to the two separate deals which were offered. .'■■■. • .. . Identities of both potential buyers is much- hush-hush. One of the two is an individual who has had no association with the in- dustry in past. He’s being repped by a Wall st. firm which, in turn, is being guided by a prominent figure in film company financing. Second would-be buyer is a Hollywood syndicate and, like the first, has presented its offer to Dietrich in Coast huddles. While the Hughes side has been silierit on selling the film securi- ties, the two active bidders have it figured he is. likely to do so be- cause of the growing pressure of war production commitments by his non-film companies. Hughes Tool Co. has just re- ceived a Government order Tor $200,000,000 in guidfefl missiles and Consolidated Vultee’s defense work has similarly stepped up con- siderably. Since Hughes is at the helm of both firms, it’s said likely he’ll find it,necessary to give more time to them. Meanwhile, activity on a possible stock swap deal also has increased. (Continued on page 18) See No Rise in 20% 6.0. Rap; Show Biz Gets Off Easy in New Tax Bill Washington, Feb. 6. Although the Administration is slated to present another, tax measure later in the year, film in- dustryites who know their way around on Capitol Hill predict there will be. no rise in the 20% admission bite!.-. It is said that the industry’s pre-Korea battle to re- duce the levy has left the impres- sion with both Congress and the Administration that any tax tilt might well result in a goose that lays a b.o. egg* Films-—and, as a matter of fact, all of show biz—came off relatively unscathed so far as special provi- sions are concerned in. the Admin- istration tax plaij presented to the House Ways and Means Commitee yesterday (Monday). The proposals, which would raise a little over $10,000,000,000, specifically avoid any increase in the admissions or nitery check raps. Filmites who worked on last spring’s effort to cut the tax bite feel they have a two-edged chance for avoiding any lift now. One is the fact that the Administration will be wanting the cooperation of theatres for bond drives, civilian defense programs and other gov- (Continued on. page 20) Rank, Due Here in May, Skipping Visit to Coast J. Arthur Hank has set May 22 as date for his annual visit to the U. S. However, this time he’ll prob- ably not. go to Hollywood where he, in past, visited his daughter, She- laigh, each year. She is the wife of Fred Packard, former Columbia and Universal producer. Packard now is in England to make a series of television films on his own and will be joined by his wife next month. John Davis, Rank’s top aide, is due in N. Y. from London Feb. 26 for his semi-annual visit. He’ll also go to Canada. : / * Subject to stockholder approval at a N. Y. meeting on Mar. 15, Loew’s has extended for periods varying from two and one-half to four years its employment con- tracts with the six officials partici- pating in the stock option plan re- cently approved by the board. Expiration of the* pact with Dore Schary, v.p, in charge of produc- tion, has been pushed back from July 26, 1955, to Jan. 17, 1958. This provides for a weekly salary of $3,846 for his exclusive services, and $1,923 weekly for non-exclu- sive services for nine and one-half years after 1958. Arthur M. LoeW, president of the foreign subsid, has been signed for three additional years with the new expiration date set at Mar. 1, 1958. He draws $3,846 per week. Benjamin Thau’s deal as v.p. lias been extended from Mar. 1, 1954, to t Jan. 17, 1958. His paycheck comes to $3,000 per week, plus 7/10ths of 1% of corporation’s an- < Continued on page 61) at Now-or- Majority of film compiles are operating In high geat^n^ bolster- ing their product, positions after considerably . lensing - hesitypcy as a result, "of the big market drop in 1948. ; " Of prime importance, it’s said, is the fact the new backlogs are comprised of pix made since the various studios put into effect sharp production economies. Also, highly-budgeted films made dur- ing the lush economy period have been completely wiped from the slate. Thus the firms are in the healthy position of being , equipped with pix financially attuned with the dwindled market. While they still can come out on top with low-level revenue, the expected continued increase in business obviously will mean so much additional income. Combination of factors is said to be behind the stepped-up film out- put and building of backlogs. One of the .biggest reasons, 4 of course, is the fact the studios, following a wide assortment of economy meas- ures, are now operating at close to peak efficiency. That Paramount is in its best product position in history .was for- mally announced last, week by (Continued on page 61) Truman Left by Metro On Cutting Room Floor Clip depicting President Truman in Metro’s upcoming “Go for Broke” has been deleted being, “anticlimactic;” Sequence showed' him welcoming Hawaiian-American troops back from World War II. Decision reportedly was made by Dore Schary, pic’s producer, fol- lowing sneak screenings on the Coast, in Florida apd in New York* Philly Exhibs Bankrupt —Charge Video Done It Philadelphia, Feb. 6. Television took the rap in in- voluntary bankruptcy proceedings filed in U. S. District Court for David S. and Mary M. Moliver, trading as the Viola Theatre Co. Attorneys for the petitioning creditors told Federal Judge James P. McGranery that since the ad- vent of TV receipts from the two theatres operated by the Molivers —the Regis and AuroraV-have dropped to such an extent that the owners have been unable. to pay running costs. Judge McGranery named Harry Blumberg and Hanley S. Rubin- sohn as receivers for 30 days. Dur- ing that period,, the .judge ruled, the receivers were to carry on the business and determine what could he done with the theatres. Grim Plot of Hersey’s The Wall’ Chills Coin >• For D.O.S. Film Version David O. Selznick has been forced to push off indefinitely pro- duction of “The Wall” because of inability to obtain financing. Money sources disagree with the producer on the commercial ^possi- bilities of the John Hersey best- seller of last year, in light of the present state of world affairs. DOS paid $100,000 plus a per- centage for the screen rights. He still has the property on his pro- duction agenda, but is detouring it temporarily in favor of making another large-scale, high-budgeted pic in Europe this summer. He'll handle the reins on the pic person- al ly; in contrast to a number of co- production deals which he has been attempting to set with European filmmakers for the past 18 months Name of the property and locale of the production are being kept under wraps until all details, are sewed up and ready for announce- ment. It is known, however, that (Continued on page 20) Joe Breen Slips Into N. Y. To End ELC ‘Twist’ Row Joseph I. Breen quietly arrived in N. Y. from the Coast on Mon- day (5) with his agenda including decision on Production Code ap* proval for “Oliver Twist.” Code chief earlier reversed his original outright ban of the pie when he suggested that Eagle Lion Classics make deletions. Distrib complied, sent the re- , vised print to him and now* is | awaiting a new ruling. As of late 1 ^Continued op.Rage IB) . , „ Film‘Blondes’ Columbia and 2Qth-l ox are both currently vying for screen rights to the Broadway hit musical, “Gen- tlemen Prefer Blondes.” Deals are now pending, with both studios having offered $150,000 flat. Before either can take the prop- erty, however, Paramount will have 10 days to meet their terms. It will also get 16%% of the receipts for the screen rights, since it owns the original non-musical version of the Anita Loos comedy, which it picturized in 1928. Unless 20th accedes to demands of producers Herman Levin - and Oliver Smith on release date of the film, Col is likely to be given the nod. Harry Cohn, Col prez, has agreed that release will not be before the middle of 1953. 20th’s bid called for distribution by the fall of 1952. Levin and Smith are holding off the tentative closing (Continued on page 12) , Film industry this week was vig- orously bouncing back on the fi- nancial front. Stocks pushed to gains far beyond the market’s gen- eral average. Long neglected by investors with the deflation of prices as a conse- quence, trading in pic securities on the N. Y; Stock Exchange has suddenly become robust. At the same time Wall St. professionals are looking in the direction of ma- jor film and theatre firms with steadily growing respect, Added to the list of supporters are Reynolds Co.- and Walston, Hoffman & Goodwin, two of the financial district’s major broker- age houses. In a market letter sent to clients yesterday (Tues.) Walston outfit commented that film issues finally might be coming into their own after trailing the rest of the mar- ket for some time. Firm had special mention for Columbia Pictures and Universal which were given a “speculative recommendation.” Also cited was (Continued on page 20) Arthur Krim-Robert Benjamin negotiations for control of United. Artists appeared yesterday (Tues^ day) to be a now-or-never propo- sition. Krim, who is on the Coast, has come to full agreement with the attorneys for owners Mary Pickford and Charles Chaplin. He and Benjamin are determined not to let Miss Pickford and Chaplin, who now have the terms before them for final word, reopen the whole long-winded series of negoti- ations. K-B have their minds made up to keep these dealings from fol- lowing the pattern of numerous other previous potential UA buys. Each time negotiations got to the closing stage,,, the owners had a new series of demands. Krim and Benjamin are determined that they prefer to walk away from the deal rather than allow themselves to be trapped into interminable talks. Situation yesterday was uncer- tain. With v complete agreement reached over the weekend with at- torneys, it seemed fairly sure Monday that the deal was . reason- ably close to being in the bag. Lengthy session was held by Krim Monday evening, however, with the owners and their attorneys, (Continued - on page 61) ‘Mr. Smith’ Boomerangs But Moscow Continues Nick Schehck to Florida Nicholas M. Schenck, president of Loew’s, left New York last week- end for a Miami vacation. He’ll be back at his post next month. Sales chief William F. Rodgers is continuing his Florida stay an- other two weeks. Following his re- turn to New York, Rodgers will hold a Metro sales session and then leave for the Coast. National Boxoffice Survey Despite Storms, Biz Holds Up; ‘At War’ Again Champ, ‘Born,’ ‘Pacific’ Take Second, Third Many key cities had another batch of snowstorms and extreme cold weather to battle this session but reports from Variety corre- spondents in representative key cities indicate biz Held up very well in numerous localities. Wild- cat railroad : switchmen’s strike, which crippled production and laid off. many, also was an unfavorable factor. Despite all this, trade con- tinued high. “At War With Army” (Par) is again out in front to cop No. 1 position for second successive week. Martin-Lewis comedy gross total from 16 playdates reported by Variety reps was over $350,000. Showing was made despite its be- ing on holdover or extended run j in many localities. \ • “Born Yesterday’' (Col) was sec- ond for second session in a row. “Operation Pacific” (WB) moved up from sixth slot to take over third place. “Kim” (M-G) is hold- ing tight, again being fourth. “Halls , of Montezuma” (20th), which accounted for its biggest strength last month, captured fifth money while “Harvey” (U) wound up sixth as against fifth the pre- vious week. “Cyrano” (UA), “Steel Helmet” (Lip) • and \ “Mudlark” (20th) round out the Big Nine list in that order. “Vendetta” (RKO) and “Magnificent Yankee** JMtvf) are the two runner-up pix for the week. New entries shape uneven, with two favorable and as many shap- ing as doubtful winners. “Toma- hawk” (U) is good in Chicago, big in San Francisco and smash in Philly: “Call Me Mister” (20th) looks terrific on preem date at N. Y. Roxy but, of course is get- ting " a” .“great boost from Danny Kaye heading stageshpw. “Septem- ber Affair” (Par) is sock in Frisco but mild in Cleveland and fair in. N. Y., indicating this.pic will need plenty of selling. “Company She Keeps” (RKO) looms light on its two dates this round. “Korea Patrol” (EL), mild in De- troit, is so-so in Providence. “Bitter Rice” (Indie) is sturdy to stout in two' spots but only okay in some three or four others, all small arty houses. “Frenchie” (U), which comes into N. Y. Criterion this round, is big in Seattle and okay in Toronto. “Joan of Arc” (RKO) shapes solid on pop-price run in Seattle. “Dallas” (WB) is lusty in Toronto. “California Passage” (Rep) is okay in Washington. “Prehistoric Women” (EL), oke in Buffalo; shapes sock in Omaha. (Complete BQxoffice Reports on ..... Pages B-fi). Washington, Feb. 6. For the third time in recent weeks, the Motion Picture Assn, of America has asked the State De- partment to protest Russian pirat- ing of a U, S. feature. Latest pic swiped by the commies is “The Crowd Roars,” the'Metro prizefight story filmed in 1938 with Robert Taylor. It is being shpwii in Mos- cow under the title, “The Eighth Round.” MPAA has charged that the pic is not only being run without per-' mission of, nor payment to, Metro, but that it is a distorted version (Continued on page 20) TFade Mark Registered FOUNDED BY SIME SILVERMAN Published Weekly by VARIETY, INC. . Harold Erichs,* President 154 West 46th St., New. York 19, N. Y Hollywood 28 6311-Yucca Street Washington 4 1292 National, Press Building • Chicago 11 612 *Nq. Michigan Ave, London WC2 8 St. Martin's PL, Trafalgar Sq. SUBSCRIPTION ~ Annual $10 Foreign .... $11 Single Copies 25 Cents ABEL GREEN. 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