Variety (October 1952)

Wednesday, October 29,1952 pictiikis 2-A-YEAR FIX UM1T FOR H’weod Again Stressing the Services For Stories Adapted for Films or With 25 pix with Army* Navy Marine, backgrounds in the planning stage, in various stages of production, or in release, Holly- wood is stressing the services for story material. Not since the plethora of war pictures following the end of World War II hostilities have the filmeries shown such a concentration on the activities of the fighting men. Not all the upcoming films deal with the adventures of U. S. serv- icemen. British, Greek and United Nations fighting men are also set to receive some of the glory. Many of the pix do not necessarily deal with actual fighting in Korea or in World War II areas, but relate to numerous side aspects of war as well as training activities. With the U. S. Defense Dept, regarding many of the military pix as important public relations gim- micks. all-out cooperation is offered by the Government, which often provides location sites as well as manpower. Metro has four military-slanted films on its production schedule. These includes “Take the High Ground.” story of infantry training, which Dorc Schary will personally produce; “Above and Beyond,” yarn about Col. Paul Tibbetts’ dropping of the first atom bomb; ‘‘Battle Circus,” about Army nurses in Korea, and “Wind From the East.” story of the installation by the Navy of a weather station in China during World War II. In addition to the recent re- (Continued on page 27) Ref OK’s Continuing California Studios Without Receiver Hollywood, Oct. 28. Bankruptcy referee Benno M. Brink has authorized continuance of operations of the California Studios without a receiver being appointed following filing of a re- organization petition in Federal Court showing studio owes credi- tors a total of $135,000. Petition was filed by George T. Goggin, whom Brink named to supervise studio operations follow- ing death of owner Harry Sherman last month. Goggin said Vern Clark will continue as studio man- ager and Sherman’s lawyers, H. P. Babson and John Goff, will work with Paramount exec Jacob Karp, administrator of Sherman’s estate, in watching over operation. Goggin said plan is to maintain and operate studio for rental to indies and tele producers. Goggin forsces an annual income of $225,000, with expenses about $125,000. He is asking for a three- year plan to repay creditors on an annual installment basis. Chief creditor is Bank of America, $40,- 000, while $9,500 is due the Clune Memorial Trust, which owns prop- erty on which studio stands. DISTRIB RELIEF Seadler New Chairman Of MPAA Ad-Pub. Unif Si Seadler, Metro ad director, is new chairman of the Advertising and Publicity Directors Committee of the Motion Picture Assn, of America. He replaces Charles Simonelli, Universal’s eastern ad- pub manager and national exploita- tion head. Chairman for the past nine months, Simonelli drew a unani- mous vote of thanks from the com- mittee for his “able guidance” of the body’s activities since Jan. 1. Chairmanship, incidentally, is a rotating post usually held for a minimum of six months. New Arbitration System Could Award Double Damages to Exhib Plaintiffs TECHNI’S 474G FOR QTR ;! 0FF10M1?51 Consolidated net profit of Tech- nicolor. Inc.., for the quarter ended Kept. 30. as well as for the nine- month stretch concluded on the same date, dipped slightly from the equivalent 1951 periods. Net profit a hor taxes for the 1952 quarter is estimated to be $474,087, or 50c Per share. Tally compares with $500,131, equivalent to 54c per share for the corresponding 1951 quarter, with taxes for the latter period adjusted to the effective rate paid for the entire year, according to prexy- Keiieral manager Dr. Herbert T. txalinus. . unsolidated net after taxes for mile months ended Sept. 30 is esti- ma ed at $1,499,507. Sum is equiva- to $1.60 per share. Same 1951 ‘VH ch resu U*d in $1,561,525, or ' ‘share, with taxes for the 1 lod m question adjusted to the lve late * or entire V ' lit « For Theatre TV Regional Relay Washington, Oct. 28. An indication of the investment required for a nationwide theatre TV system was given out by motion picture industry sources yesterday (Mon.! as the first phase of hear- ings before the Federal Communi- cations Commission on need for exclusive channels was completed. Hearings will be resumed Jan. 12 for testimony on cost of transmis- sion and plans for expansion of the medium. Rough figures based on estimates to be presented in January by Manfred Toeppen, cost analyst for the joint theatre television techni- cal committee, representing produc- ers and exhibitors, place an overall construction cost of a regional relay system serving practically all theatres, excepting drive-ins, in nine eastern cities at around $60,- 000,000. This amount would provide facilities for New York. Trenton, Philadelphia, Atlantic City, Read- ing, Allentown, Wilmington, Balti- more and Washington. Estimate provides for three cir- cuits. permitting transmission of three different programs simulta- neously, from New York to Wash- ington, and six circuits in each of nine cities. It is believed that more than 80% of total cost would go for facilities for intra-city distribu- tion. A breakdown of estimate puts cost for a three-program relay system from New York to Washing- ton at $3,300,000, 'cost for Wash- ington intra-city system (six cir- cuits) at $1,500,000 and cost for program source links at $650,000. Annual operating cost is based on three-year amortization period, for New York-Washington inter- city link (six hours of operation daily), is estimated at $1,600,000. Expense of operating Washington intra-city system is put at $580,000 annually and operation of program source links at-$250,000. Exhibs coming to a boil over the number of pix being given the high- percentage pre-release treatment by distribs appear headed for some relief. Film companies condition- ally have agreed to limit them- selves to two such pix each in any single year. Company concession on this point is contained in the most re- cently-revised industry arbitration plan, which has the okay of distrib prexies and is now awaiting exhib approval or further negotiation. Distrib curb on the number of specially-handled films is, of course, tentative in that no part of the arbitration setup is definite in itself; the arbitration program must be approved in its entirety by both distrib and exhib sides and subsequently by the Department of Justice and the Federal Court in New York. Under the pre-release system, which has many exhib associations in the field as well as national or- ganization execs howling, the film companies send important pix into a number of exhibition dates in advance of general release.* Factor which has the exhibs squawking, they say, is that the companies are excessive in their rental terms. Theatremen’s beef, widely stated, is that a boost in their admissions scale is demanded if they’re to show a profit on the pre-release deal. Tipoff on the two-a-year ceiling was given by exhibitor leaders in talks to their respective organiza- tions in the field. They received copies of the company-approved draft from the distributors last week after revisions of an earlier draft were made by the company chief execs. Not counted as a pre-release run under the tentative proposal is a one-shot showing of a film in a particular territory. Falling into this category would be a “sneak” preview or the single exhibition of a pic at a particular time, such as New Year’s Eve. Arbiter panels to function under the proposed industry arbitration system will be empowered to In Anririrmf award monetary damages in the snoi in ACCiaeni maximum amount of double the WB's A. W. Anderson Minneapolis, Oct. 28. Arthur W. Anderson, former Warner branch manager here and now district manager out of Chi- cago, is in St. Mary's Hospital here recovering from gunshot wounds suffered in a hunting accident near Albert Lea, Minn. Anderson was shot in the stom- ach and eye while duck hunting. He may suffer the loss of one eye. Sues for Coiman’s ‘Champagne’ Salary Los Angeles. Oct. 28. Claim for at least $75,000, rep- resenting Ronald Coiman’s de- ferred salary for “Champagne for Caesar,” was made in a Superior Court suit brought against Yoland Productions, Inc., and Cardinal Pic- tures by C. Fanning, to whom Col- man assigned the debt. Action alleges that Colman was to receive 7% of the gross up to $2,500,000 and 10 % thereafter, with a guaranteed minimum of $100,000, Of that amount, $25,000 was paid and the rest deferred.r Suit demands payment of the $75,000 plus interest and an ac- counting of the gross on the United Artists release. SPAIN STEPPING UP AS LOCATIONER FOR U.S. PIX Hollywood, Oct. 28. Spain is stepping to the front as a location field for U. S. film com- panies, according t o Rouben Mamoulian, who is readying Bizet’s “Carmen” for indie filming there next year. Among other indie filmmakers with Spanish production plans are Albert Zugsmith, who is preparing “Female of the Species” and “Con- quest and Desire” for spring shoot- ing; Frederick Brisson, with “It Happened in Spain”; John Huston, with “Matador,” and Mike Frank- ovich, who is projecting a second picture to follow his recently com- pleted “Decameron Nights.” Hike Pillot, Solomon At 20th Bally Depts. --.Personnel shuffle at 20th-Fox this week resulted in prbmoffon'oF Leo Pillot to the berth of assistant exploitation manager and upping of Edward Solomon to post of as- sistant ad director. Shifts were re- spectively disclosed by exploitation manager Rodney Bush and ad manager Abe Goodman. Pillot has been with the com- pany for the past 18 months. Solo- mon, Who joined the firm in 1940, moves into a newly created post. Mulvey Easting After Goldwyn Studio Survey James Mulvey, president of Samuel Goldwyn Productions, and Sylvan Ocstreicher, independent tax consultant, are due back in New York from the Coast toward the end of this week. They trekked west over the past weekemFfor work on studio opera- 1 tions. Chief Exec Post May Remain Open As RKO Incentive Hosting another luncheon-meet- ing with reporters in New York Monday (27), RKO board chair- man Arnold Grant indicated elec- tion of a new company president, succeeding Ralph Stolkin, is a mat- ter of uncertainty. “Maybe we’ll bring in a president on an interim basis—or permanent basis for years to come,” he said. “It’s up to the board.” Grant also said it’s possible the chief exec’s post will be kept oi!en as an incentive to an RKO-ite now on the payroll with presidential aspirations. Original purpose of Monday’s session, said the board chairman, was to introduce the team of execs whose job is to keep the company going. He said he’s proud of the job done so far and confident the company eventually will recover from its “multiplicity of ills.” Grant also feels sure that studio problems will be solved. In line with latter, Grant says he can’t trek to the studio for perhaps an- other week. As for the president’s duties, ‘Grant stated he is taking full responsibility for all decisions but the chief exec’s job itself, .which really defies definition, can be absorbed by the “excc team.” Grant said “no one is being con- sidered or thought of for the prexy spot” and flatly denied having any talks with Robert J. O'Donnell, as reported in some lay press dailies. Asking for an end of speculation on corporate affairs, Grant related (Continued on page 25! actual damages which complainant theatremen prove they have suf- fered as the result of inequitable distributor practices. Subject to the unanimous ap- proval of the entire setup, this provision is contained in the arbi- tration plan revised and okayed by company presidents this month. Exhibs now have the overall ar- bitration system under study. In pro-cessing their claims through the arbitration machinery, as it’s proposed, exhibs arc re- quired to state specifically the amount of alleged damages. It’s thereupon set forth that the arbi- ters may award sums equal to the exhibs’ actual losses as deter- mined, with the burden of proof on the theatremen. Additionally, the arbiters may award extra damages where it is found that the defendant distribs engaged in business conduct with the “deliberate purpose of injur- ir.. the exhibs or with willful dis- regard of the probable conse- quences” to the exhibs. It’s under this provision that “exemplary damages” will be permitted in amounts not to exceed the actual damage. • Double-damages • ceiling is in contrast with Federal antitrust statutes which direct that-damages stemming from violations are to be trebled. In instituting an arbitration pro- ceeding under the proposed plan, exhibs are called upon to limit (Continued on page 27) Agents Claim Share Of ‘African Queen’ Los Angeles, Oct. 28. Alvin Manuel and Michael Baird, agents, filed suit in Superior Court demanding an accounting .and a share in the profits of “The African Queen.” Named as defendants are Errol Flynn’s Paris Suit On Partnership Snafu With Coast-Made Film Paris, Oct. 28. William Marshall, now making TV pix here, is suing Errol Flynn for defamation of character, re- covery of partnership assets (name- ly a jointly-produced film, “Hello God”), and for losses incurred be- cause of Flynn’s alleged failure to live up to contractual agreements. Marshall is repped by Gang, Kopp & Tyre, with Martin Gang han- dling. Flynn’s present salary al- ready has been tied up by Gang in an effort to recover the $300,- 000 alleged loss incurred by his client when he claims Flynn ob- tained a negative of “God” before Marshall could sell film to the Motion Picture Sales Corp. Flynn and Marshall partnered in 1950 to produce “God” based on an original, “Before You Sleep To- night,” by Marshall. Flynn re- portedly was to buy into a 40% partnership for $25,000, plus his services as star of the film. Flynn was making “Kim” at Metro then on loanout from WB. The film was made on location at Santa Barbara and the Hal Roach studios. Mar- Horizon Pictures, Inc., Horizon En- terprises, Inc., John Huston and ' shall acted as producer-director. Samuel Spiegel (S. P. Eagle!. ‘ i According to Marshall, Flynn Plaintiffs declare they conducted • wanted to break his contract with negotiations with Romulus Films. Ltd"oTXbndbn; for 'cd-pTOdU'ction' of the picture, for which they were promised 10% of the profits. Later, | they charge, the defendants re- fused to share the earnings. Warners at that time. After WB -gave - him-a -zte vl ... pact*-- Flynn... air (Continued on page 27) PICKER CLAMS ON RKO, CITES‘TRANSIT’STATUS Legalities Stall Bank j Arnold M. Picker, United Artists A Jrl irk fAn’l Qai-viVp foreign chief who becomes RKO’s iu \jrcii i oci vice ' execu tive veepee Nov. 15, arrived in Hollywood, Oct. 28. | New York yesterday (Tues.! on the rkl AViflne n»ill of oil /ln_ ' TT-iJ - J 5 J- i •»» <-* 1\!n p in Legal complexities will stall de- cision for several weeks on possi- bility Chemical Bank & Trust, United States. Citing his “in transit” status, he declined to dis- cuss whether he would become an N. Y., will lend coin to General j RKO board member, as is expected, Service Studio owners George and j and nixed other queries. James Nasser to get them off the hook. Milton Gettinger, bank’s attor- ney, is here huddling with bank’s veepee, Edwin Van Pelt, and the Nassers, and he declared it would take some time to iron out a deal. Bank of America is chief credi- tor of General Service. Although RKO board chairman Arnold Grant on Monday (27) dis- closed that Picker was returning from a two-week European trip with some recommendations' for changes in the company’s foreign set-up, the new exec-veepee also begged off comment on that sub- 1 ject.