Variety (June 1952)

— - . ■ WMlierfccfty," l*)gg- I Hollywood,, June 24. -f Howard Hughes, RKO produc- tion chief and controlling stock- holder, refused to sign a projected three-year contract, with Jean Sim- mons because he claimed he wanted to “save my husband from going to prison,” the actress testified m Federal Court today (Tues.). Miss Simmons and her mate, Stewart Granger, are pressing a $250,000 damage suit against Hughes and RKO to prevent the studio from representing that it has an ex- clusive pact with her, thus hamper- ing deals at other lots. Earlier testimony established that Hughes balked after months pf negotiations, claiming the deal con- tained illegal loopholes to permit Miss Simmons and Granger to claim a capital gains setup. The actress said the capital gains sug- gestion was initiated by Hughes’ representative, Walter Kane, and she didn’t even know what a “capi- tal gains” deal was. Later, she said, Hughes at a private meeting warned her, “when you are di- vorced your husband will get capi- tal gains and you will be stuck with an ordinary contract.” Miss Simmons testified that she hadn’t been too anxious to sign with Hughes because of his pur- chase of her contract with J. Ar- thur Rank, for- “I resented being sold like a piece of meat.” After negotiations collapsed, she added, she told Hughes, “I wouldn’t sign with RKO for a million dollars tax free while you are head of it.” Meantime, it was learned that since the trial began last week be- fore Federal Judge Ernest A. Tolin, RKO has suspended Miss Simmons for three one-day pe- riods. Latest suspension occurred today when she took the stand in a delayed appearance to tell her side of the suit. She was due at the Monday session, but her agent, Bert Allenberg, served as stand- (Continued on page 20) UPA Cartoonery Will Buy Back 20% Stock at Col; May Seek Better % Deal United Productions of America, cartoonery which releases through Columbia, plans to exercise its op- tion and by end of the year will repurchase 20% of the stock which Col acquired from Edward Gersh- man, former UPA sales topper. Whether re-acquisition of the stock will alter the current operating deal between Col and the cartoon- ery, is still a matter of conjecture. UPA has been striving for some time to improve its percentage ar- rangement with the film outfit, which reportedly has been profiting handsomely from the release of UPA shorts, while the cartoonery is ,said to be just about breaking even. Currently, Col and UPA are in the third year of a reported five- year deal, with percentage terms, apparently subject to yearly re- newal. Cartoonery is also closely allied with Screen Gems, Col’s vid- pix subsid. Deal with latter, a five- year one with annual options, pro- vides for UPA to make' animated TV commercials of up to two- minute duration for the Col affili- ate. Video outfit operates a studio in New York and is known as the Screen Gems division of UPA. Although closely tied with Col, UPA also has right to enter other deals. As part of its overall opera- tion, it produces animated pix for (Continued on page 18) Buckian Contempt Trial Now Set for October Washington, June 24. Huddle here yesterday (Mon.) *et the trial of Sidney Buchman to begin Oct. 1. Producer-writer is under indictment for contempt of Congress.' He ignored a subpoena to appear before the House Un- American Activities Committee last January. Buchman recently lost a civil action to enjoin the Commit- tee from subpoenaing him. He was to go on trial for contempt this month* Postponement was due to the Illness of Judge Dickinson Letts, •cheduled as the trial judge. Judge has not been selected yet for next October’s trial. Von Sternberg Readies Bi-Lingual Jap Film A bi-lingual film, as yet untitled, is* being readied for production by Director Joseph von .Sternberg. Yarn will concern a group of 30 Japanese who held out for six years on the Mariana Islands in the South Pacific after Tokyo’s sur- render. Financing for the. venture will be largely provided by von Stern- berg’s Japanese associates, N. Ka- wakita, Y. Osawa and I. Mori. He’s scheduled to leave for Japan around the end of August for hud- dles with the trio. Picture will probably start after the first of the year, with separate Japanese and English versions. Scophony Admits Coin Nix Before Par, GPE Buy-in Washington. June 24. The FCC heard testimony yes- terday (Mon.) that Scophony, Ltd., tried for four years to interest U.S. capital in developing its TV pat- ents before Paramount Pictures and General Precision Equipment Corp. bought a 50% interest in Scophony Corp. of America in the early 40’s. Under intensive cross-examina tion by Par counsel Paul Porter, Arthur Levey, prexy of Skiatron Electronics & Television Corp. (successor to SCA), admitted he tried to interest a succession of Americans in Scophony, including Jock Whitney and M. L. Ayles- worth. Latter, he said, had agreed to put up $250,000 for a 20% in- terest in SCA, but did not come through. Describing a luncheon at Sardi’s in New York in 1939, Levey testi- fied that Whitney, after evincing interest in Scophony, decided he did not want to go into TV, be- cause of the war situation and be- lief that TV was “some time off.” Porter also brought out that ap4 proaches were made to Lehman Bros, and Kuhn, Loeb & Co. Levey said that in 1938 he talked to David Samoff, RCA board chair- man, regarding Scophony patents, and that the latter thought the'su- personic projector for home TV had promisp, and that its develop- ment should be encouraged. Sam- off told him, he testified, that there was room in TV for both the cath- ode ray and supersonic projector systems, and expressed the belief that Levey should have no trouble raising capital for formation of an American Scophony company. Porter indicated, his examination of Levey would require nearly two weeks. After he is through with Levey, he plans to call Paul Rai- boum, Par veepee in charge of TV, to answer charges by Levey that Par used its interest in Scophony to suppress development of its pat- ents in home and theatre televi- sion. PETRILLO COOL TO IMPPA PIX-TV PLAN Hollywood, June 24. An alternative proposal to the current pix-to-video formula has been handed to James C. Petrillo and the exec board of the Ameri- can Federation of Musicians in huddles with the Independent Mo- tion Picture Producers of America, but it appears certain AFM leader won’t accept. Understood alterna- tive accepts 5% formula but balks at the additional rescoring fee. Petrillo has repeatedly brushed aside attempts to change estab- lished format but IMPPA reported the- situation, as “optimistic.” Petrillo left for N. Y. after talks, leaving up in the air status of his secret talks last week with reps of major studios. Latter, it’s relia- bly reported, are interested in work- ing out a deal for format on tele- vision film production but didn’t discuss with Petrillo any deals on making the vast backlog of old pix available to video. ^ Launch Movietime Trek. With Montana Teeoff Hollywood, June 24* * Movietime U. S. A. opened Its summer campaign with a group of six film names touring Montana. Players were greeted yesterday (Mon.) at a reception by Gov. John W, Bonner in Butter. This week they will fan out and cover the state. Troupe consists of Donna Reed, Marsha Hunt, John Derek, Robert Wa^ii^aafjfyf^lpman and David Dlanv JJUf Justice Dept. To Sift Star Pacts Hollywood, June 24. Disclosures of alleged tax irregu- larities via testimony in the trial Of the Stewart Granger-Jean Sim- mons $250,000 damage suit against RKO and Howard Hughes have touched off a Federal investigation into all “package deal-capital gains” pacts in the film industry. Asst. U.. S. Attorney Bernard B. Laven announeed a full-scale probe of contracts in which any payments made by the studios, other than actual salaries, will have to be ex- plained thoroughly. “Purchases of property from in- dividuals by studios must be made in good faith,” a Government spokesman emphasized, “and not just be a subterfuge to evade pay- ment of a proper tax.” Meanwhile,, a Federal investigator is attending the trial daily and transcripts of the testimony are being studied by both Treasury and Justice Dept, officials. Government's attitude toward in- ducements waved before film stars to sign with certain studios was clarified by Laven. This kind of bait, he said, “must be considered as compensation whether it is pur- chase of a book, house, automobile, fur coat or anything else, and is taxable as income rather than capi- tal gain. If we find any evidence of -subterfuge; there’s going to be trouble.” The trial had scarcely warmed up last week when the Dept, of Justice reacted to charges of in- come tax juggling -camouflaged as capital gains. Charges were leveled by RKO attorney W. I. Gilbert, Jr., who declared that Granger and Miss Simmons had come into court with “unclean hands.” - Granger’s contract with Metro, Gilbert testified, called for the studio to buy his London apart- ment and furnishings, enabling him to evade taxation under the capital gains structure. Miss Simmons’ proposed deal with RKO, he added, was similarly tainted. Shift in Emphiui* In its tunepix version of James Thurber's legit comedy, “The Male Animal,” currently in revival on Broadway, War- ner Bros, apparently went 'to great lengths to rid the script of any. political or sociological j>crjpp+<; In the original play, the hurley queen, “Hot Garters Gertie,” is an offstage charac- ter, mentioned but never seen by the audience. In the WB film, “She’s Working Her Way Through College,” stripper, portrayed by Virginia Mayo, is the main protagoriist. ‘Latuko’ May Run Through Summer in Newark; B.0. Takes Holding Steady Following its legal triumph over the Newark, N. J., police depart- ment last month, “Latuko” is now in its sixth week at the Embassy Newsreel Theatre in that city and may run all summer. African documentary was given the green- light by Justice Walter Freund, who said he saw nothing immoral in the film. Elsewhere, the picture has been turned down by the Virginia State Censor Board, the New York State Board of Regents and the Chicago police censor. Virginia bluenose panel, incidentally, called the film “disgusting.” Meantime, Pro- ducers Representatives, distribu- tors of the pic, is formulating plans to fight the bans. But no legal action is being mapped at the mo- ment. Made by Edgar M. Queeny for the American Museum of Natural History, “Latuko” racked up the highest gross in Newsreel’s history during the first week’s run. Figure came to $7,615—almost double the take of the previous film screened. Second week eased off to $4,200. Third week at the Newsreel, however, steadied at $4,000 while the fourth chukker brought ■' in $3,000. Fifth week, ending Mon- day night (23), drew an estimated $2,500. There have been no pick- ets throughout the film’s engage- ment, but the management reports some unidentified groups have been spotted taking notes on pads during screenings. But no pro- tests have been received either from police or anyone else. New French Bid Asks Imports Cut, No Subsidy Paris, June 24. French negotiators in the cur- rent talks here on a new Franco- U. S. film agreement opened the sessions last Thursday (19) with a proposal that calls for a cut in the present ceiling of 121 imports annually and eliminates all idea of a subsidy to French producers by Yank distribs. Since premature publicity on previous proposals last month caused something of a hullabaloo in the Paris press, French negotiators insisted on secrecy on details of the new plan. It is considered by the Americans only a starting point for bargaining. Their aim,* on the other hand, will be to up the num- ber of imports and get free con- vertibility of currency. Talks are on a government level, with industry reps sitting in Tor both countries,- Sessions were held last Thursday and Friday and yes- terday (Mon.). They are slated to resume tomorrow (Wed.). Heading the State Dept, reps in the discussions is Henri Labouisse. He is being aided by Harry Con- nover, commercial attache at the Paris Embassy, and Gerald Mayer, of the Embassy staff. Backing them up are Fayette W. Allport, British rep of the Motion Picture Assn, of America; Gene Van Dee, Rome rep of the MPAA, and Alfred W. Crown, salesmanager of Samuel Goldwyn ■ Productions, who is rep- ping the Society* of Independent Motion Picture Producers. French government reps are Michael Fourre-Cormeray, two finance office men and two foreign office men. Industry advisors are Jean Leduc, prez of Gaumont, and Roger Weil-Lorac, of the Techni- cal Syndicate of French Cinemas. When the preliminary sparring is out of the way, It's believed nego- tiations may proceed rapidly. If necessary, it’s understood John G. McCarthy, director of the MPAA’s international division, may -come over for the finale, with a long chance that he may be accom- panied by MPAA prez Eric John- ston. N. Y. to Europe Milton Blackstone Pietro Bullio Arthur Davis ' Geraldine Fitzgerald Harry Fox. Magda Gabor Leonard Goldenson Allan M. Gundelfinger John Gutman Bob Hawk Goddard Lieberson George Lourau Gertrude Macy Melvina McEldowney Walter Mirisch Sydna Scott Jerome Thor N, Y. to L. A* Henry Beckman Marlon Brando Warren Caro . Claude Kingston Sid Kuller Richard Ney Fred M. Packard Milton R fr Rackmil Mike SToane Carmen Torre* Despite. all the downbeat talk anent film shares on the New York Stock Exchange, particularly in the wake of the dividend cuttiag bv Loew's and United Paramount the trading, prices of various film i s . sues on the Big Board are for the most part .only slightly under their past lQ-year,<1942 through 1951) averages. Columbia, for example, has been selling recently at about $12. The 10-year average was $13.30. Col’s drop of $1.30 can be interpreted at even less than that surface amount, when it's considered that a 2^% stock dividend was de- clared at the tail' end of 1951, in- creasing the number or shares on the‘market. • Heaviest drop ‘WasExperienced by Loew’s as a direct result of the divvy ‘ reduction. Ten-year average was $20.20.'While 1 the stock is now selling' at around' $13, the overall 1952 average for Loew’s shares, it’s expected, will be $15. Technicolor is well ahead, jump- ing from $16.50 over the 10-year period to about $22 presently. Twentieth-Fox, it’s figured in finan- cial circles, will emerge with a 1952 average of about $21, as against $25.10'for the 10 years. .Universal’s average for the 10 years was $17.50. It’s well off from (Continued on page 18) Rep, WB Films Get Legion Frown, Class B Listing; . Italo Pic ‘Condemned’ National Legion of Decency last week “condemned”one Italian im- port and placed two Hollywood films in its Class-B (Morally Objec- tionable in Part for All) category. “Behind Closed Shutters,” a Lux Film release, rated a Class C, be- cause it treats of subject matter “morally unsuitable for .motion pic- tures entertainment.” Legion added that “Shutters” contains “suggestive situations and costuming. Moreover, it tends to create sympathy for immoral ac- tions.” • Produced by Luigi Rovere, the picture outlines a girl’s search for a missing sister through a num- ber of dives and bordellos. Print for American audiences has been dubbed into English. • Republic’s “Bal Tabarin” drew an objection for “suggestive cos- tuming and sequence; it tends to condone illicit actions.” Likewise, Warners”' “She’s Working Her Way .Through College” was rapped for “suggestive costuming and dancing.” It also “tends to con- done immoral actions.” L. A. to N. Y. Dana Andrews . Buddy Baer Earl Baeman John Bertero Ward Bond Clarence Brown Gower Champion Marge Champion Harry Cohen' • H. C. Cox Walt Disney Buddy Ebsen Gene Fowler David Hanna Eunice Healey Betty Hutton Lou Irwin Jeff Jones Hal Kemp Andy Krappman John Lavery Herman Levin Peter Lorre Genb Mann R. H. * McCullough Harold Mirisch Walter Mirisch Victor Orsatti A1 Pearce Irving Pichel Charles P. Skouras Mary ToddT Tamara Toumanova Danny Winkler Herbert J. Yates Europe to N* Y. John Byram. Mrs. John Byram ■Dane Clark Peter Cusick John Davis Lee V, Eastman Douglas Fairbanks Jr. Irving Fein Walter Kennedy Lee Kressel Frank La Grande