Variety (September 1952)

neitJAU^ -Tremendous loss reported byf BKO last, week;' for operation dur- ing the first six months of this year contributed further to speculation in both New York and Hollywood on policies and motives of con- trolling sto.ckholder Howard jiugbes, Both the film and finan- cial .community is at a loss to ex- plain operation whlth has per- mitted losses to pile up at a rate unequalled by any major since the 1932-^3 sdepression depths. BKO reported a net loss of $3,- 73,2,834 for the 26 weeks ended June 28. That compares with a net loss of $734,720 for the same period of 1951. During the second quarter of this year, BKO dropped $1,756,- 181, compared with a profit last year of $351,645. Trade sources lay the heavy losses to lack of product. BKO distribution organization reported- ly operates on a nut of about $180,- 000 a week, and unless there is plenty of grist going through the mill, its billings are too low to support the worldwide field force and homeofflce. While Paramount, which other- wise has the smallest production slate of any major, will make about 25 pix this year, BKO and its in- dies combined so far in 1952 have started only 10 films altogether. That compares with 36 from Uni- (Continued on page 12) Coast Red Probe Shifts To Defense Industry; 40 Show Biz. Witnesses Hollywood, .Sept. 2. Film industry will play only a minor role when the House Un- American Activities Committee're- sumes. its • investigation of Com- munism here on Sept. 29. • Kep. Donald L. Jackson (B. Cal.) in- formed a press conference that 115 witnesses will be called during the Id-day ‘hearings and that only 40 of them are from radio, television and pictures, without any “big names” from Hollywood. , Most of the sessions will be de- voted to a probe of the defense in- dustry In CalifoVnia. A final report J on the film industry’s part in the’ investigation will be Issued late this year. Unless new developments arise to warrant'a- reopefiihg ol the case, there will be no further hear- ings on the Bed influence in pictures. ■ In addition to Bep. Jackson, the investigators will consist- of chair- man John S. Wood (D. Ga.), Bep. Clyde Doyle (D. Cal.), Bep. Francis Walter (D. Pa.), and Bep. Harold Valde (B. 111.1. Group constitutes a quorum Mid will function as a full committee rather than a subcom- mittee. Unless there is a change of mind by the committee, there will be no televising of the hearings although still photos and tape recordings will be permitted. MPLS. NABES FEUD WITH TRANSIT CO. ON TIEOP Minneapolis, Sept. 2. A feud bctwen loop showhouses and the transit company on the one hand and drive-ins, neighbor- hood and suburban theatres on the other has been touched off by a weekly Thursday “family night” tieup. Latter finds the transit company carrying the public down- town free on its streetcars and buses betwen 7 and 9 p.m., and the loop theatres plugging the stunt and giving 1,000- gratis ad- missions to Iqcky-number bus and streetcar riders. Independent exhibitor Martin Lebedoff presided at an “indigna- tion meeting” of fellow neighbor- hood and suburban theatreowners. Uptown business groups will be asked to join in a protest to the traction company and an opinion will be sought as to the legality of the free one-way rides. One circuit of drive-ins ran (Continued on page 12) Timely Models* Reissue Taking advantage of the pub- licity on the New York vice probe, in which numerous al- leged prosties gave thebe vo- cations as “models,'* Embassy Newsreel on Broadway booked in ari old March of Time re- lease labeled “Models.” ^ S .c-gives a strictly legit ver- , however, of the vast mod- el biz in New York. LA. Rams Boss Reported Eyeing Hollywood, Sept. 2. Beports persist here ‘that How- ard Hughes is in negotiation to sell his controlling interest in BKO Pictures, Said to head a new syn- dicate interested in acquiring^the company is Fred Levy, Jr., owner of the Los Angeles Bams and son of the Louisville theatre operator. Also mentioned in recent weeks as making bids for' the slightly more than 1,000,000 shares of stock held by Hughes (more than 25% of shares outstanding) are Ed Pau- ley, wealthy Coast oilman; a syndi- cate headed by Sam Dembow,^Jr., producer’s rep in New York, arid a group of Texans. No confirmation of any deal was forthcoming from Hughes or his associates, although his attorney, Tom Slack, is known to have been in huddles on the sale with a num- ber of interested people lately. Look to CommT I^ims As Income Supplement For Nation’s Exhibitors Commercial films of the “class” type may shortly become a new source of revenue for' theatres. In the past theatres have looked with disdain upon ad pix in general. Among others, Gael Sullivan, The- atre Owners' of America exec di- rector, and his staff are now look- ing into the possibilities and may bring, up the subject at TOA’s na- tional convention in Washington Sept. 14-18. Number of theatremen, particu- larly in‘the south, have been throw- ing paid-for plugs on their screens as a matter of policy for years. These often ale short clips for local sponsors. New twist is that members of the screen’s-f or-entertainment-ex- clusively school might change their * attitudes. It’s pointed out that every other mediurti accepts advertising. It’s a source of coin even for legit theatres "via sale of programs. The ad pix which would be pro- jected in film theatres under the ^presferit thinking would be top quality, that is, carrying dignified messages of perhaps the institu- tional sort, instead of straight sales pitches. It’s figured that such or- ganizations as of the DuPont and General Motors calibre could make acceptable advertisers. It’s be- lieved that some theatres could reel in $200, $300 or possibly more (Continued on page 17) Spyros Skouras Set To Eye Hoyt’s Chain Spyros P. Skouras,. president of 20th-Fox, will probably hop off for .Australia sometime after Sept. 12. Film company topper has in- tended for some time to look in on the Hoyt’s circuit, which he has never seen in operation. Chain is a wholly-owned subsld and will be taken over by the 20th film com- pany upon divorceipent. One of the picture'industry’s ma- jor problems—and the one on which it haS’ made least progress toward a solution-—was further pointed'up by developments in the New York area .during the past week. That is the excess of multiple day-aftd- date runs. ^ The metropolitan area, already plagued by the hurdle of far too many theatres simultaneously play- ing the same pic, is about to get even m.ore of the same. Increase results firom settlement between the Loew’s and Skouras circuits of differences on runs that led tp a multi-million dollar law suit re- cently by Skouras against Loew’s, BKO Theatres and the majors. Loew’s reportedly has settled its end . of the suit by agreeing to permit a number of .Skouras houses to move up to the same run as competing Loew’s theatres. Major distribs reportedly were notified by Loew’s last week that they could service the Skouras houses on the same run as their own. Loew’s prexy, Nicholas M. Schenck, only a few weeks ago in an interview with Variety de- plored the multiple day-dates as (Continued* on page'14) White Quits Chain Hqtrs.; S. P; Skouras, Jr., Takes Oyer Many of His Duties William White, v.p. of Skouras Theatres, Ne'vv York, has ankle d the chain’s midto'^n homeoffice and is now headquartering at the Biviera Theatre, uptown Manhat- tan. White owns the house, along with the Nemo and Riverside, but they are operated as part of the Skouras circuit. .Reason for 'VJ^hite’s. homeoffice exit, it’s understood, is that a num- ber of his top-echelon duties have been taken over by Spyros 'P. Skouras, Jr.,, son of the 20th-Fox prez. Young Skouras was elected exec v.p. and manager of the out- fit last year when George Skouras was named board chairmail of United Artists Theatres, This is affiliated with the Skouras circuit and had been headed previously by Joseph M. Schenck, Prior to the upping of Skouras, Jr., White had the title of general manager. Rumor in the trade had it .that (Continued on page 14) Blumberg Year’s Tioneer’ Nate J. Blumberg, chairman of the board of Universal, has been selected “Pioneer 6t the Year” by Motion Picture Pioneers, prexy Jack Cohn disclosed yesterday (Tues.). Blumberg will be guest of honor at the dinner meeting of the organization of vet film men in New York Nov. 25. In the business since 1912, Blum- berg recently moved from the post of president of U to board obair- man. He started In the business as a poster clerk. Previous report had it that the PP would honor its founder—presi- dent Cofin as the 1952 ’’pioneer,** U. S. Seen Facing American film Industry reported- ly is facing another balk by the French government on a proposed new Franco-U. S. film agreement. Having found that the Yanks ac- cepted with comparatively little battle a cut to 90 imports into France annually, the French are said to be reneging on the financial terms under which the quota slash was accepted in the U. S,^ Motion picture Export Assn., overseas affiliate” of the Motion Picture Assn, of America, has called a session of company proxies and foreign chiefs for tomorrow (Thurs.) to consider the situation. Fayette W. Allport, who has been chief negmiator for the ^ MPEA with the French* is flying in from Paris to attend .the meeting. It is hoped that by the time of his arrival,. A11 p o r t may have worked out a more favorable deal to put before the MPEA board. He was in continued negotiations in Paris over the Labor Day weekend. MPEA accepted the slice from 12i import permits last year to 90 this year on the Msis of an ac- companying understanding regard- ing remittances. Deal was that Paris would permit the Yanks to (Continued on page 12) National Boxoffice Survey Labor bay Tilts Trad?; ‘Glory’ No". 1, ‘Paleface’ Second; ‘McLain,’ ‘Fear,’ ‘In Arms’ Next Long Labor Day weekend plus cool,' rainy weather in many sec- tions is giving first-run theatres a great session over the country cur- rently. A batch of new product is an added hypo in numerous key cities covered by Vareety. “What Price Glory” (20th) is pushing ahead to capture first place with a number of big to sock showings. It is being closely fol- lowed in second position by “Son of Paleface” (Par), the Bob Hope comedy being uniformly a high grosset in all sectors. “Big Jim McLain” (WB) is surg- ing ahead to third position although it .is virtually the first week out on release. “Sudden Fear’* (BKO), second last week, is taking fourth spot despite obvious- ly strong opposition, “World in His Arms” (U), champ last round, is winding up fifth with a long string of big to smash play- dates. "“Merry Wido'w” (M-G), just getting started, will finish sixth while “Affair in Trinidad” (Col), third a week ago, will be seventh. “High Noon” (UA), for weeks very hi^ on the list, is eighth, with “Big Sky” (BKO), ninth. “Greatest -Show’* (Par) is taking 10th money. “Jumping Jades” (Par) and “Dreamboaf* (20th) round out the Golden Dozen in that order. Runner-up films are “Where’s Charley” (WB), “Don’t Bother To Knock” (20th), “Lovely To Look At” (M-G) and “Island of Desire” (UA) in that sequence. “Crimson Pirate” (WB), which was launched with a socko stanza at the N. Y. Paramount last week, shapes as one of best pix just out. “Devil Makes Three” (M-G) looms solid on initial date at N. Y, Globe. “The Bing” (UA) is registering a record session at small-seater Den- ver theatre. “Ivanhoe” (M-G), . released so far in only three keys covered by Variety,, is rated'sensational this session at the N. Y. Music Hall where .$173,000 looms for fifth week. It is staying on indef at the vast Hall. “We’re Not Married” (20th) shapes sturdy in Cincinnati. “Car- rie” (Par) is big in Minneapolis, trim in Denver and good in L.A, “Anybody Seen My Gal” (U) is smash in Chi with stageshow. “King Kong” (BKO) (reissue) looks mighty in Omaha. “Tomor- row Is Too Late” (Indie) Is big in three Frisco houses. “Miracle of Lady of Fatima” (WB) is holding firmly in second sessions playing two N. Y, houses, day-date. “Untamed Frontier” (U), peyky ih Chi, shapes solid in Philly. “Diplomatic Courier” (20th) is fine in Toronto and Philly. {Complete Boxoffice Reports on Pages 6-7) Contrary to trade reports earlier this year, William Goetz will not be retiring as Universal’s produc- tion chief When his pact Js up- exec v.p. Alfred E, Daff declared last week, Daff made the comment on his return to New York from a lengthy series of huddles at the studio on production programming and planning. Daff asserted that Goetz and U’l new prexy, Milton B. Rackmil, got along like “blood brothers” and saw eye-to-eye completely on the company’s future,^ He added tfiat all down the line, both at the stu- dio and in the distribution end* no changes could be expected in U personnel as a result, of the re- cent acquisition of stock control .by Decca. Goetz’s contract has a little more than a year to run. Since Decca, in attaining control, bought up the stock held by Goetz, it was widely believed in trade circles that the production head would be leaving the company when his pact ex- pired. Leo Spitz, Goetz’s partner in the studio operation, has been very ill and hospitalized for many weeks, (Continued on page 14) Rackmij Snares 1,000 Shares as His First Universal Acquisition Universal prexy Milton R. Rack** mil has acquired. 1,000 shares of •the company's stock on "the open market, the Securities Ac Exchange Commission reported last* week. Purchase, made July 9,,^ was the first personal acquisition of U shares by the exec. Decca Records, of which Rack- mil is also prexy, owns 42% of U'» outstanding stock. Baekmil re- turned to New York last Friday (29) after three weeks at the studio. He had been there for hud- dles on the company’s production program. ’ He expects to go back to Holly- wood In a month, or perhaps sooner, but is not laying out any east-west timetable for. himself. Trad* Mark Registered POUNDED BY RIME SILVERMAN Published W*«kly by VARIETY. INC Harold Erichs, President 154 West 4etb St. New York 30. N. V Hollywood 2t #311 Yucca Street Washington 4 1392 National Press DtUldlnt ^ Chicago n 8l2 No. Michigan Avo. Condon WCZ 8 St, Martin’s PL, Trafalgar S(J. SUBSCRIPTION ^nual $10 Foreign $11 Single Copies 2S Cents ABEL GREEN, Editor Vol. 187 No. 13 DAILY VARIETY (Published in HoUywood hy Dally Variety, Ltd.) $15 a Year, $a0 Foreign