Variety (April 1953)

Wednesday, April 1? 1953 PAriett PICTURES EXHIES $110,000,000 GAMBLE ^ * < Magna to Bow With Super-Roadshow Musical; One-Year B’way Ron Seen Backstage Moves on Several Fronts To Unseat Pix Mgts.; Stock Deals Big Magna Theatre Corp. will launch* uf niw Todd-AO widescreen sys- Jlm with a musical'extravaganza in coSr and budgeted at from $3,000,- nnn to $4,000,000. Cameras should S in July or b* Aug. 1 at the latest and the super-roadshow at- traction is skedded to preem at New York's Rivoli Theatre during January, 1954. “It is hoped it will Rodgers & Hammerstein nrooerty, is the cautious statement. For the present, Magna plans call for only one picture to be pro- duced. It's expected to ^e good for a one-year run on Broadway. During 1954 it’ll also be roadshown in 24 to 28 leased houses, most if: not all of them a part of United Artists Theatres, which has a 40%' interest in Magna. Joseph M. Schenck, Magna board chairman, and showman Mike Todd who along with the Ameri- can Optical Co. gave the new sys- tem its name, last wbek (26) clari- fied some of the questions about the process which has been de- veloped in great secrecy. Trade and press demonstration showings are skedded for May or June at a theatre which-Todd said would definitely be outside New'York and near one of the American Optical . plants* The Todd-40 method breaks down into two parts. One involves application of 65m film, a special -lens and use of a wide screen made of radically new material. The other, still under wraps since patents on it have just been filed, (Continued on page 29) PAR PROFITS STEADY; . $5,500,000 FOR '52 Paramount’s profits are holding steady, figured at about $5,500,000 for 1952, or* about the same as in 1951, jon the basis of comments made.by president Barney Balaban in a report to stockholders. Chief exec’s letter accompanied^ checks for 50c per common shar$, repre- senting the first quarter’s (1953) dividend. Par’s annual report for 1952 will be published within the next few weeks, said Balaban. Topper also disclosed that the Palm Springs, Cal., demonstration of Telemeter, home subscription TV system in which Par has a 50% interest, is now skedded “within the next few months.”. It had been, planned for this spring but more time is required to wire a suffi- cient number of homes in the Palm Springs area for the special hookup. — ■ ■ ■ ■■ ■ ■ { Century’s Schwartz Eyes RKO Theatres Stock Fred J. Schwartz, head of Cen- tury Theatres, N. Y., admits he’s interested in possibly., taking over control of RKO Theatres, via stock deal with Howard Hughes, but adds there’s nothing “solid” in the way of negotiations at this time. Several groups are pitching for the RKO chain, in the belief that Hughes is willing to unload his 24% o wnership but so far Hughes hasn’t talked specific terms with any bidders. On another front, Schwartz re- lates he has a .survey underway of the physical dimensions of all Cen- tury locations and plans to install 20th-Fox’s Cinemascope facilities where adaptable. R. Lehman’s Stock Moves Robert Lehman, member of the 20th-Fox directorate and partner in Lehman Bros., N. Y., investment bankers, and some Wall St.- asso- c i. at ?s, have been active purchasers o* the 20th common stock issue ~ ver a recent period, according to financial sources. In February, Lehman himself 2,500 shares, according -to the i a t es t N. Y. Stock Exchange re- port. ■ • R&H’s Optional Out Unless there is an effective demonstration of Magna Thea- tre Corp.’s Todd-AO wide- screen system by Aug. 1 at the latest, Richard Rodgers and * Oscar Hammerstein. 2d have the right- to withdraw from the setup. Both are on the Magna board and are in- vestors • in the company. Under their agreement with Magna’s board chairman Jo- seph M. Schenck, the Rodgers & Hammerstein team will pro- duce musical pix exclusively for Magna distribution. Rod- gers said Monday (30) that there had been no decision re the first Magna production and that there could be no R & H participation in one until their new musical, “Me and Juliet,” was launched. Exhfts Gotta Join in 3-D Trial-&-Error Hesitancy on the part of theatre owners to equip themselves for 3-D or one of the large-screen processes is being rapped by distrib execs, despite the obvious dilemma which exhibs are facing over -which system to choose. Film officials are plugging the systems endorsed by their own companies, respectively, of course, but the point they em- phasize is that the exhibs, regard- less of the hazards involved, must make the 3-D plunge in some, form in order to give the public the opportunity to decide which is best. A distrib v.p. was riled last week at comment by a prominent circuit operator after seeing 20th-Fox’s Cinemascope; Warners’ 3-D’er, “House of Wax,” and Paramount’s method of giving 2-D pix the “feel” of third dimension via wide-screen projection. Chain owner said: “These Hollywood boys ought to get together so we’ll know which way to turn.” Observation riles distribs for the reason that, they feel, it reflects that many exhibs “are asking to be taken by the hand through the | 3-D confusion instead of acting on their own and coming up with some of the answers as a result of their own experiences.”. It’s clear that thousands of thea- tremen are keeping up with the times- either with plans to equip for 20th’s Cinemascope or adjust for the 3-D pix such as “Wax.” It's also apparent that numerous others are holding back on any decision with the hope that the “right” system will present itself eventual- ly and, in the meantinm, they’ll' not be risking an investment in a 3-D approach which may prove non-productive. Got Goldstein-Fox Job, Sez Ferry in 75G Suit Hollywood, March 31. Felix Ferry agency filed suit in Superior Court against 20tfi-Fox producer Leonard Goldstein Mon- day (30), seeking $75,000 “reason- able compensation” for allegedly wangling a 20th pact for the pro- ducer. Ferry contends Qoldstein, while at Universal-International, told him he wanted to ankle UI for* 20th. He promised compensation if Ferry got him the‘job. Ferry claims he told Goldstein he had contacts at 20th, and “might be able to do Goldstein some good, providing (Darryl F.) Zaniick was approached at proper time.” Ferry alleges he worked on the deal three months and .“paved the way”'for negotiations resulting in Goldstein’s getting’ a seven-year, $2,000-a-week pact last September^ By FEED HIFT Race to bring 3-D . and’ wide- ^cteen advancements to the public during the next couple of years stands to cost American- axlfibs in the neighborhood of $110,000,000 in new equipment. Figure, based on the conserva- tive assumption that only about 12.000 houses will convert to new projection systems, could mush- room into a much larger windfall for the equipment manufacturers should the public whim force a parallel development of three di- mension and large screens. Provided the 3-D bubble doesn’t burst—and observers point out that the majors’ accelerating pace of tri-dimensional production should act as a brace against any sudden b.o. reversal — the larger part of the country’s theatres will have to outfit themselves for the new age. In that case the overall ex- hibition bill may well top the $200;000,000 spent by theatres in the late ’2Qs and early ’30s in con- verting to sound. Exhibition’s $110,000,000 outlay ; for 3-D and panoramic screen sys- tems during the next three to .five years breaks down something like this: 5,000 houses with 3-D, $6,000,- 000; 3,000 houses with 3-D and stereophonic sound, $36,000,000; 3.000 with Cinemascope, $57,000,- 000, and 1,000 with miscellaneous systems, $5,000,000. In addition, there are other fac- tors, such as the possible overlap (Continued on page 27) SCHARY SHORT TO PACE ANTI-20% TAX DRIVE Hollywood, March 31. Film industry’s pitch to combat thfe 20% Federal admission tax will be spearheaded by a 22-minute short produced by Dore Schary at the request of COMPO. It will be shown at Congressional hearings on the tax problem. Picture, scripted by Herman Hoffmap, shows actual figures dem- onstrating the plight of motion pic- ture theatres throughout the country. After the showing in Washington, the pictures will be made available to theatre circuits. Loew’s Leads Divvies New yearbook published by the N. Y. Stock Exchange, listing corporations which have paid dividends consecutively for 20 years or more, shows that Loew’s has the top spot among film companies. Outfit has been sending out checks to stockholders unin- • terruptedly since 1923. In the related field, Eastman Kodak has the lead, with divvies dat- ing back to 1902. Oldies’ ‘New Look’ Via Par Process Cues Re-Run Rick Race for technological improve- ments in projection techniques may lead to a spate of reissued films via adaptation of Paramount’s new widescreen system, which is de- signed to give added values to standard 2-D films. Process, available to all studios, at first was touted as “protecting” the backlogs of new product. It was to give the recently-made 2-Ds the “feel” of depth dimen- sion with the widescreen approach. The 2-Ds would thus be on a com- petitive footing with 3-D-ers. Par plan, additionally, is now be- ing appraised for its application for bolstering old pix, mainly those of large production scope which lend themselves to the expanded-screen treatment. First commercial test of- the system may be with Par’s “Greatest Show on Earth,” skedded for full-scale reissue within the' next couple of months. If this goes through in click fashion, it’s re- garded as a certainty that numer- ous oldies wilL be dusted off for re- handling. Process, as demonstrated at the Par studio March. 21, involves changes in-the aspect ratio of the- atre screens. The conventional (Continued on page 27) h Power to .control several film biz- corporations is at stake via new backstage maneuvers taking place on a variety of fronts The intrigue on the part of new interests, seek- ing to unseat present managements, clearly is at least partially respon- sible for recent heavy trading on the New York Stock Exchange. Principally involved are RKO Pictures, RKO Theatres and 20th- Fox. The outcome of the stock buyups and an assortment of pro- posed deals conceivably could affect the future course of each corporation via liquidations and pic sales to TV, in addition to exec personnel makeup. To what extent any group has a chance of upsetting the corporate status quo is a matter of conjec- ture at this time. But so far as the RKO circuit is concerned an over- haul appears definitely threatened by David J. Greene, according to one of his Wall St. associates. As a result of his proxy battle with management last year, Greene now holds two seats on the six-man board. Financial source linked with Greene said that Greene and in- vestors aligned with him now own 750,000 shares of the RKO Thea- tres common issue. This is still short of Hughes’ controlling block of 929,020 shares, which are trus- teed, but it’s pointed out that any further full-scale proxy solicitation (Continued on page 24) FINNISH OLYMPIC PIC READY FOR U.S. DISTRIB Official feature-length version of the 1952 Olympic Games in Hel- sinki, Finland, has finally reached New York. The seven-reel pic, all in black-and-white, was put togeth- er for the Finnish government by Suomi Film! Oi. Herman Lippsett, who on past occasions has flacked for the Fin- nish government, is rep on the pic. He’s seeking theatrical dis- tribution but is also considering sale to TV. National Boxoffice Survey Exhibs Mark Time Awaiting Easter; ‘Peter Pan’ Back in 1st Place; ‘Sheba,’ ‘Hans’ Next With many exhibitors just mark- ing time before bringing in fresh, strong product for Easte.r, current session is offish. Reports from key cities covered by Variety show that the films doing strong or sock trade are the exception with even the moderately stout pix lagging. Moderate weather and heavy rains in numerous keys are proving a big handicap to the pre-Easter week. “Peter Pan” (RKO-Disney) moved back into first place after being edged out 6f No. 1 spot last week by “Come Back, Little Sheba” (Par). “Sheba” is winding up sec- ond. “Hans Christian Andersen” (RKO-Goldwyn) is third, same as a week -ago. . » “Moulin Rouge” (UA) is climbing to fourth position, being big to smash in most locations. “I Con- fess” (WB), which was fourth a week ago, finished fifth. “Naked Spur” (M-G) again is sixth, same as ’ Tast week. “Blue Gardenia” (WB), a newcomer, is capturing seventh spot, mainly by dint of some 10 playdates. “Kettles on Vacation” (U) is pushing up to eighth place, pic just being launched to any extent this week. “I Love Melvin” (M-G) is managing to land ninth position while “Jeopardy” (M-G) rounds out the Big 10. “City Beneath Sea” (U) and “Destination Gobi” (20th) are run- ner-up* pix in that sequence. ' Of the new strong fare, some of it just starting out this stanza, “Call Me Madam” (20th) and “Salome” (Col) seem to show the greatest potential. “Madam” is great on opening week at the N.Y. Roxy, smash in^Philly, where it’s the ace new pic, and smart in L.A. “Salome” is socko in its preem week at N.Y. Rivpli. “liitch-Hiker” (RKO), okay in Toronto, shapes as stout in L. A. where it’s outstanding. “Off Lim- its” (Par) also looms nice, being neat in Washington and fine in N.Y. on initial dates. “By Light of Silvery Moon” (WB) looks very good on first session at the N.Y. Music Hall. • “Down Among Sheltering Palms” (20th) is disappointing on three dates this 'stanza. “Sombrero” (M-G), also new, light in K.C. and Buffalo, is okay in Frisco hnd trim in Philly. “Lady Wants Mink”- (Rep) looms oke in Denver. “Androcles and Lion” (RKO) is | rated fair in Boston. “The Star” (20th) okay in Frisco, is slow in Indianapolis and Cincy. “Clown” (M-G) shapes strong in Balto. “High Noon” (UA), hack to cash in on its Oscar, is fine in Port- land, fancy in Minneapolis and Washington but mild in Detroit. “Stars Are Singing” (Par) looms okay in Omaha and St. LOUis; “Seminole” (D), nice in Toronto, is rated fairish in L.A. “Battle Cir- cus” (M-G) is mild in Pitt, (Complete Boxoffice Reports on Pages 13-15 ) Trade Mark Registered FOUNDED BY SIME SILVEI&IAN Published Weekly by VARIETY, INC. Harold Erichs, President 154 West 46th St. New York 36. N.Y. 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