Variety (March 1953)

Wednesday, MarcK II, 1953 PStolETY riCTCRKS Johnston Defends Fix Going O’Seas Before Senate Foreign Relations Unit Washington, March 10. A Senate Foreign Relations sub- committee, created to investigate the State Department's overseas in- formational and; educational ex^ change programs, began its \york in odd fashion’ last Friday (6) by attacking the motion pictures Hol- lywood sends abroad. Its only Witnesses at the open- ing session were Eric Johnston, prexy of Motion Picture Assn, of America, and George Weltner, president of Paramount Interna- tional, who made a strong defense of the industry. Most of the load fell on the shoulders of Johnston, who, during a two-hour stint, talked down and apparently im- pressed the legislators. There was very little new in the hearing for newsmen who have covered similar ones in recent years. The same old names of pic- tures and the same old charges were dusted off and brought up by the Senators. Pretty much the same old answers and the same old facts that he has used over and over were thrown back by John- ston. It was one of those “Isn't this where I came in?" things. Follow- ing were the highlights: The Senators attacked by assert- ing that they had letters and other complaints that Hollywood films depicted either the seamy side or the ultra-luxurious pent- house edge of American life, giving a distorted idea of life in the U. S. and often destroying the good work done by our official propaganda service. Senator Bourke Hickenlooper (R., Ia.), subcommittee chairman, (Continued on page 61) Mpls. Indie Exhibs Beef Again at U. of Minnesota’s ‘Unfair’ Pix Competition Minneapolis, March 10. U. of Minnesota is under fire of independent exhibitors again for exhibiting films on the cam- pus, charging admission and so- liciting the general metropolitan area’s patronage as well as that of the s.tudent body and faculty. North Central Allied has adopted a resolution calling the matter to the attention of the state legislature, other state officials and university officials them- selves, and requesting “termina- tion of such exhibiting at the earliest possible moment." Resolution charges that “the university is unnecessarily and un- justifiably intruding itself into the competitive enterprise field and seeking preferred advantage in such field at the general taxpay- ers’ expense and to private busi- ness’ detriment." This, it’s pointed out, is in spite of the fact that the university is both tax-exempt and tax-supported by Minnesotans and pays no license fees. Issue was brought to a head this time in consequence of the ‘ uni- versity booking “La Ronde," French film which has been barred in some states, for three days, instead of the customary one, in a deal which gives the university substantial protection over Twin Cities’ com- mercial theatres both before and after its presentation, starting April 15. Ordinarily, it’s understood, the university pays 40% for its pic tures, but does not give any guar antees, as in the case of “La Ronde." Admission charged is 60c., the same as neighborhood 28 day houses, but 16c. less than loop firstrun theatres. Very Chummy Washington, March 10. While the Foreign Relations subcommittee needled Holly- wood and its pix at last week’s hearing, it was pure love be- tween the committee and Eric Johnston, prexy of Motion Picture Assn, of America. After a little preliminary spar- ring in which they called him “Mr. Johnston" and he called them “Senator," things set- tled into a.chummy first-name session—a most unusual situa- t i o n during Congressional committee hearings. The MPAA topper became “Eric" to'- most, of the sub- committee. In * turn he ad- dressed the Chairman, Sena- tor Bourke Hickenlooper (R., Ia.) as “Bourke"; Senator Karl Mundt (R„ S. D.) as “Karl"; Senator William Fulbright (D., Ark.) as “Bill," etc. Oboler’s ‘Twonky’ to UA “The Twonky," Arch Oboler science-fiction film, has been ac- quired for release by TJnited Artists, which is currently distributing Obo’er’s 3-D “Bwana Devil" Like “Bwana," Oboler wrote, di- tected and produced “Twonky." . $3,000,000 IA Suit Vs. Music Hall 2 Chains on O’time A suit for $3,000,000 has been entered by Projectionists Union, Local 306, International Alliance of Theatrical Stage Employees, against the N. Y. metropolitan area circuits of Loew’s and RKO, in addition to the Radio City Music Hall. Papers, which were served Monday (9), charge that the circuits and the Hall owe boothmen that sum for uncompensated overtime work extending over a period of almost six years. Sum of $1,000,000 is being sought from each of the outfits named. The overtime coin, according to the union is due the projectionists for preparatory- work, that is, the time required to ready the projec- tion and sound equipment before presentation of the regular per- formance. According to union prexy Herman Gelber, this entails from 15 minutes to an hour daily for which the Local 306 members have not been compensated. Gelber stated that the union had (Continued on page 18) Industry Stock Footage Library Outmoded by 3-D; ‘B’ Producers Will Suffer Hollywood, March 10. Producers of 3-D. films have dis- covered a new source of expense. They hade learned that -old flat film in the stufiio libraries cannot be*used in any depth system requir- ing polaroid glasses. In making a 3-D picture the entire footage must be shot in that process, without stock shots. This means that pro- ducers with low budgets are out of luck. Lothrop Worth, chief cameraman for Natural Vision Corp., explains it: “There is no way at present whereby a piece of flat film can be converted for a straight cut to create a 3-D illusion.". He also in- timated that nobody to date has developed any way to remedy the situation. Under flat picture conditions, stock film can be extracted from newsreels and commercial films as well as old and discarded footage from previous productions. But under 3-D conditions these sources are not available unless they are filmed in 3-D. Stock film, in the past, has been the lifeblood of “B” producers. Under the present circumstances they can’t afford to make pictures in the new system—at least until the industry has developed a suffi- ! cient supply of 3-D stock in its film l libraries. OVER LAST YEAR Television is losing its competi- tive grip so far as the film business is concerned, according to some top theatre execs. Leonard Goldenson, who’s now on both sides of the -TV-theatre fence as president of the newly merged American - Broadcasting- Paramount Theatres, comments that the “public is'alert'to films; they’re talking about them again." Goldenson reported that while the entire Par chain of over 650 houses is doing good, business, out- lets in Chicago and Detroit are markedly ahead of last year. “This is significant because these two areas were among those most se- verely hit by the impact of TV earlier," states Goldenson. Terming as “favorable” the com- parison between this year’s theatre gate generally across the country with the 1952 income level, the AB-PT chief exec said he’s particu- larly encouraged because the first quarter of last year had two ab- normal blockbusters in circulation, Paramount’s “Greatest Show on Earth” and Metro’s “Quo Vadis." In the current quarter bi^ is hold- ing up without a “Greatest Show" or “Vadis,” and the second quarter likely will be ahead of the^corre- sponding period of ’52, Goldenson relates. Charles P. Skouras, prexy of National Theatres, v/hose subsid, Fox West Theatres, blankets the (Continued on page 16) RIVALRY Hint Hughes May Have to Pot Up Outside Guarantees to Insure Prod. Walton as Grainger Aide , Edward L. Walton has joined RKO as exec assistant to prexy James R. Grainger. Ho held the same post for seven years with Grainger when the latter headed Republic distribution. Grainger stresses -that Walton’s appointment means an addition to the' RKO exec setup. It’s a newly- created spot and he’s not replacing anyone. Techni Net Sales Up to $33,020,559 Record 97 feature pix lensed in Technicolor, or. with prints by Techni, were turned out during the year ended Dec. 31, 1952, Dr. Herbert T. Kalmus, Techni prexy and general manager, stated in the company’s annual report out yes- terday (Tues.). Added to the 28 handled by Technicolor, Ltd., the British affiliate, this, gave the com- pany a total of 125 Techni pix for 1952. The 97 Techni pix photographed in Hollywood beat the previous 1951 highmark by 21. About 135 features in Techni, or with prints by Techni, are either in production, in preparation or under contract for 1953, according to Kalmus, who said the 1952 35m positive-print output of the Techni lab was 461,- 219,752 feet, compared with 392,- 736,597 feet in 1951. Techni earnings also were up in the wake of $33,020,559 in net sales for 1952 as against $28,896,- 344 in 1951. Net after taxes for the year was $2,069,206, compared to $1,918,537 in 1951. Earnings in 1952 . equalled $2.19 per share (Continued on page 18) RKO Has Enuf Pix Thru Aug. 15, Sets Deals With Indies James R. Grainger, RKO’s new prez, figures that the outfit has enough product for distribution through Aug. 15 and by that time new pix will have been lensed and ready for release. Grainger, back in New *Y6rk Monday (9) from four weeks on the Coast, considers the company in “good shape’’ de- spite the present production lull and other setbacks. As for product for the future, Grainger revealed a few deals for outside indie pix are on the fire. RKO policy demands that the in- dies put up the major share of the financing, with the company in- sisting on story, cast and other ap- proval rights. Upon taking over the homeof- fice operation, Grainger focused attention only on the RKO plusses, stressing the Company’s $60,000,- 000 gross volume last year, the new deal Vith Walt Disney for handling “Sword and the Rose", and the pact to distribute Sol Les- ser’s “The 3-D Follies." Film, now in production, is set for re- lease May 1. - . On the distrib sked to mid-Au- gust are 15 new films and some (Continued on page 16) Brazil’s Non-Essential Tag on Pix Irks Distribs Failure of the Brazilian govern- ment to put. American pix on the list of essential imports for the cur- rent fiscal year is causing concern among the U. S. distribs, who aren't anxious to accumulate addi- tional large sums in that important territory. Essential tag would have permitted remittance of 70% of the current earnings at the official rate. Lack of the classification, means the money has to be re- mitted at a much lower* rate. Brazilian move doesn’t affect thaw of the $8,000,000 now frozen in that country. U. S. distribs are virtually guaranteed their coin, since Brazil signed for a $300,000,- 000 Export-Import Bank loan to . clear up its debts. The $8,000,000 l should be remitted by July 1. CinemaScope Unveiling Set for Coast; Country’s Top Exhibs Get Invites First of a series of trade demon- strations of 20th^Fox’s Cinema- Scope wide-screen system is slated to get under vay at the 20th studio in Hollywood March 18, with pro- ducers and exhibs invited to look- see. New York showing of Cine- rpaScope, originally skedded for March 16 or thereabouts, will not take place now until mid-April and will then be followed by screen- ings in key exchange centres. Wire to some 300 top exhibs throughout the country, informing them of the CinemaScope unveil- ing and telling them they’d be wel- come to attend with their staffs, went out last Friday (6). It didn’t use the word “invitation," imply- ing 20th’s unwillingness to pick up the tab for the execs’ westward trek. Exhib demonstration is due for the evening of March 19. Producers will be accommodated March 18, when there will be three-a-day stanzas of the one-hour test reel. CinemaScope footage will include rushes from “The Robe," initial 20th pic to be turned out in the new process. Postponement of the New York showing was necesary because of a delay in wiring the 20th screen- ing room at the homeofficc where the large CinemaScope screen has been installed for two weeks. Spe- cial wiring jot is necesary because of the stereophonic sound which goes with the CinemaScope. CinemaScope screen has been setup on Stage 6 on the 20th lot. System so far has been seen by i only a limited number of people I on the Coast. ' Financial position ofr RKO PU> tures was raising eyebrows again this week both in trade and out- side financial areas. Outfit’s eco- nomics are growing shakier contin? ually with its production hiatus and amortization of new pix now swinging into release which, until now, could at least be carried at investment costs.. That’s the word* from Wall St. analysts. RKO’s first six weeks 1 of 1953. operated at a loss of $1,350,009. Deficit for 1952 amounted to $7.- 455,000, on the basis of an unof- ficial reappraisal this week of the corporation’s monetary downslide for the entire year ended last Dec. 31. Riling stockholders (see separate story on new suits against board chairman Howard Hughes charg- ing dissipation of assets) is the fact that book value of the RKO com- mon stock issue is consequently going down. While formal announcements proclaim the company is launching a new lensing program, puzzling to insiders is where RKO would get the sizeable production coin need- ed. RKO is said to have reduced its bank indebtedness to $3,000,000 but the banks are now disinclined to provide new financing under the. present situation, Intimations are that Hughes might be required to put up outside properties or in- terests as guarantees for new bank rr oney. Company is doing exceptionally well with two pix now in release (Continued on page 19) Stockholders Say Hughes Cost RKO $4,000,000; Cite ‘Reckless’ Spending Los Angeles, March 10. Three minority stockholders complained in Federal Court that RKO lost more than $2,000,000 as a result of the stock deal with the Ralph Stolkin Syndicate, while ■ Howard Hughes profited more than $1,000,000. Charge was made in an amended complaint filled by Eli B. Castleman, Marion V. Castleman and Louis Feuerman, who also have .minority stock- holder suits on file in N. Y. and Las Vegas. Complaint declares Hughes op- erated the firm as if it were his own private property, “recklessly squandered money" and increased the studio’s cost in an “arbitrary and reckless" fasion. Bernard Reich, attorney for the plaintiffs, filed a notice calling for takipg of a deposition from Hughes March 24. An additional complaint is that RKO lost a potential $2,000,000 be- cause IJughes “isn’t interested in religious pictures." It points out that “The Robe 1 ' was RKO proper- ty for a long time, but was not produced there and finally went to 20th-Fox. SPG Suggests Industry Launch Research Board Hollywood, March 10. Screen Producers Guild has pro- posed the establishment of a Re- search and Practice Board, the ob- ject of which is to study all the problems of the industry and to exchange detailed and reliable in- formation on all phases of produc- tion and marketing. Aims of the program, outlined by Sol Lesser, SPG veepee, are: “Lower costs, together with the actual reasons for the present high costs. “More certainty in meeting the new competitive attractions now available, and also those that are about, to become available. “A higher level of boxoffice re- sults. “Cooperation with the various guilds, talent groups, management groups and whomsoever might de* sire our participation."