Variety (February 1957)

P^SSSfffff PICTlTttSS 8 W0diteiday» Ifebrnwy 27» 1957 toor-tip (It Was Sore) Sets In i?he air is filled with expectancy; the film Industry again Is In ‘^the throes of a rumor season. It's the history of the business that changes in operations breed reports of other ‘ changes and the present Is no exception^ Spate pf unconfirmable reports has Its genesis In (1) the Loew’s Overhaul and hand-ln-band expectation that Wall Streeters and big Stockholders will become even more prominent in the scheme of things, (2).RKO’s retreat from domestic distribution and Tom O’Neil's statements anent maintenance of unnecessary distribution, and studio facilities, and (3) mUch out in the open talk about studio co-tenancies and sharing of elaborate releasing networks. Top-echelon execs, /it's known, are talking about the principle of a new economy— that is, possible new ways of reaching maxi¬ mum market at minimum costs. Investors and banking interests have become in closer contact with day-to-day film operations. All leading to a heavy workout of the scuttleboat. As talk of /new developments seeps through the trade it undergoes a conver¬ sion from the general observation, as perhaps expressed by a com¬ pany president, to distorted specifics. In just the past week four distributors were rumored as being involved in merger talks and just about the entire management team at a major corporation was "understood" to be on the way out. At least one trade news¬ man, after chasing down many such reports, is near crippled with Tumor-tism. Trotectionist' Thinking, Like Europe, Noted Among Latins by Aboaf While Latin America has the 4 potential for considerable business expansion by the U.S. film compa¬ nies, the market is beginning to catch the protectionist "bug" from Europe. Returning from a three-week trip through the area, with terri¬ torial conventions in Argentina and Brazil, America Aboaf, ‘^Universal’s foreign sales chief, last we!ek said in New York that Latin American countries were begin¬ ning to take note of restrictionist moves in Europe, with a tendency to copy. "It’s really a small world now," he observed. "It used to take months for Information to trickle through from another market. To¬ day, it takes 24 hours.” Developments in Italy are being watched with particular interest, Aboaf related. (Another company exec re¬ ported' that a young Frenchman had arrived late yast year in Brazil and had lost nb time "instructing" the local industry on French pol¬ icy. Result was a lengthy tract, put out by the industry at Sao Paulo, detailing complaints against the allegedly preferential treat¬ ment being accorded to the Amer¬ ican companies.) Aboaf said he was very satisfied with U business in Latin America (Continued on page 18) Vogel to DetaO Plans at Loew MeetThiirs.(28) Having corralled approximately 80% of the proxies, the manage¬ ment of Loew’s Inc. will have no difficulty in electing Its slate of board of directors at tomorrow’s (Thurs.) annual stockholders’ meet¬ ing in New York. The session, ex¬ pected to be the largest gathering of the company’s investors ever held, will convene at Loew’s State Theatre at 10 a.m. Interest in the meeting, espe¬ cially among Wall Street groups and individual small stockholders, was prompted by the recent threat of a proxy fight which saw a com-, promise agreement between the Loew’s management and Canadian Industrialist Joseph Tomlinson, holder of 180,000 shares of stock. As a result of the deal, Loew’s and •Tomlinson were able to select six directors each for the 13-man board. Ogden R. Reid, publisher of the N.Y. Herald Tribune, is the 13th director and is said to be an impartial representative without allegiance to either side. Management’s ability to collect 80% of the proxies of the outstand¬ ing holdings. Including that of Tomlinson and his supporters, is said to be eyidence that the In(Continiied on page 15) Loew’s 25c Divvy Bioard of directors of Loew’s Inc. last week declared, a divi¬ dend of 25c per share on the company’s outstanding com¬ mon stock. Melon is payable March 30 to stockholders of record March 12. Lo€ws Hopeful Shareholders To Okay New Rule On the eve of Its annual stock¬ holders' meeting tomorrow (Thurs.) in Manhattan, Metro executives are hopeful they’ll be able to convince the shareholders that the com¬ pany’s upcoming' production pro¬ gram, , including pictures -ready to be released and those in produc¬ tion and preparation, will repre¬ sent an upbeat in the company’s future earnings. The company’s record In recent years, of course, has not been sat¬ isfactory. The poor returns at the b.o. of its-, pictures culminated in the threat of the proxy fight which was settled by giving Canadian in¬ dustrialist Joseph Tomlinson strong representation on the board of directors. It also saw import¬ ant changes in Loew’s top man¬ agement forces which resulted In the exit of former prexy Nicholas M. Schenck and production chief Dore Schary. Some of M-G’s re¬ cent pictures made under the old regime have fared poorly, chief among these being "The Barretts (Continued on page 13) Common Market Setup Seen Helping Revival Of Europe’s Fix Pool Paris, Feb. 19. Following In the wake of the "Common European Market Agree¬ ment" between six countries in Brussels recently, conjecture Is go¬ ing on here as to how this would affect the film situation if a united motion picture front also resulted from such notion. Signatories are France, Italy, West Germany, Hol¬ land, Belgium and Luxembourg, with the first three 'mainly in¬ volved while the others loom pri¬ marily as clients. This also brings back the much discussed European Film Pool, heretofore mainly pushed by France and Italy. Some film people here declare that the Film Pool was stymied only by French bureacracy wary of getting into any such entangle¬ ments which might be confused with political aspects, and the Ger¬ man Industry’s nix which apparent(Contlnued on page 13) ZANUCK-IISTILI [{Metro latest ‘hvestigation Area’ For M’s Sttfdio Co-Tenang Aim TDP 2flTi fllER’ Despite, stubborn rumors to the effect that Howard Hughes today Is the leading stockholder in 20thFox — ^he’s been credited with hold¬ ing or controlling anywhere from 250,000 to 600,000 shared — the pre¬ cise Hughes role in the picture remains a mystery and a subject of lively speculation. At 20th, while everyoneIs acute¬ ly aware of the reports, none of the top brass seem overly con¬ cerned. Spyros P. Skouras, 20th prexy, acknowledged last week that he had been "in contact" with Hughes, but didn’t go beyond that. Darryl F. Zanuck in turn stated that, to the best of his knowledge, he was still the largest single stockholder at 20th. He and his family control over 130,000 shares. Said Zanuck: "I don’t know of any purchases of 20th stock by him (Hughes)." He added, however, that he, too, had heard rumors of Hughes buying in not only at 20th, but also at Metro. Never Active Hughes for several years owned RKO Pictures. He eventually sold the company to General Rubber & Tire Corp. (General Teleradio). Under Hughes’ control, RKO failed to produce more lhan a couple of pictures and incurred heavy week¬ ly losses down the line. It was generally assumed that Hughes wrote those off as tax losses. What puzzles observers is the way Hughes is accumulating his 20th stock, if indeed he is doing so at all. He hasn’t bought enough in his own name for it to show up on the Securities & Exchange Commission report. If he has bought via frontmen, he has done so very slowly since the 20th turn¬ over and stock price hasn’t been affected. It’s figured that, if Hughes were (Continued on page 15) Israel Deal Wobbly Threat of sanctions against Israel has some of the film companies worried. Currently in the works is a kind of com¬ pensation deal with an Israeli educational outfit under which a chunk of blocked U.S. film coin would be thawed. Should sanctions materialize, it’s feared that the deal with Israel would go out of the window. Fine weather is helping most key cities to their best Washington’s Birthday holiday week in many years. New product assisted to get the big coin which is reflected by the $1,225,000 being grossed by the four top films this week. "10 Commandments" (Par) is copping No. 1 position for the fourth stanza in a row. Additional preems boosted the total. However, it is being closely pursued by “Bat¬ tle Hymn’’ (U) which is a big sec¬ ond-place winner.even though play¬ ing at lower scales around the country. "Around the World in 80 Days" (UA) is finishing third while "Seven Wonders of World" (Cine¬ rama) is a step behind in fourth spot. "Oh, Men! Oh, Women!" (20th), a newcomer. Is landing in fifth place though far from sock in all locations. "Wings of Eagles" (M-G), another with a somewhat uneven showing, is winding in sixth slot. "Big Land" (WB) will land seventh. It also Is new this week to a great extent. "Rainmaker" (Par) Is taking eighth money while "Anastasia" (20th) still has enough to cop ninth spot. "Great Man" (U) rounds out the Top 10 list. "Oklahoma" (Magna), "Tea¬ house" (M-G) and "Wee Geordie” (Indie) are the runner-up pix in that sequence. "Men in War" (UA), a newcom Rank-Mexican Dealing Rank Organizatlon!s John Davis is . discussing possible coproductions in Mexico, where Rank now is setting up its own sales organliration. There’s been a ban on British pictures in Mexico for some time, due to the limited playoff of Mexican films in British houses. Coproductions are the only •way in which this obstacle can be overcome. Sol Lesser Pulls Back Product RKO Gave to U Hollywood, Feb. 26. New distribution tieup is being sought by Sol Lesser who has taken back a total of 12 features from RKO in the first big move by a producer to cut ties with the distrib which has abandoned its own domestic exchange system and turned distribution over to Univer¬ sal. Lesser, who has released through RRO for many years, will continue to have his product han¬ dled by RKO overseas. RKO has already surrendered to Lesser five films in current release. They are "Quest for a Lost City," "X the Unknown" and three Tarzan features now in release which would have been included in the U deal. Balance of tbe dozen films include earlier Tarzans. Metro, meanwhile, has acquired worldwide distribution rights to Lesser’s "Tarzan and the Lost Sa¬ fari," previously slated for RKO distribution, which goes into re¬ lease Easter week. In addition to this single-picture arrangement, Metro and Lesser are discussing a possible deal for other "Tarzan" features as well as other product. LeRoy Ramsey has joined the staff of the Melba Theatre in Dal¬ las where Cinerama’s “Seven Won¬ ders of the World" is current. Ramsey will serve as treasurer, ac¬ countant, sometimes manager and other duties. ’ er, is stout in Frisco and great in Philly "Paris Does §trange Things" (WB) looms nice in Buffalo. “The Delinquents" (UA) is terrific on K. C. preem. "True Story of Jesse James" (20th), sturdy in Minneapolis, is fast in Chi and fine in Washing¬ ton. "Cinderella" (BV) (reissue), mighty in N. Y., looms big in Bos¬ ton. "Spirit of St. Louis" (WB) is en¬ joying a big week at N. Y. Music Hall. “Shrinking Man" (U) looks great on N. Y. preem. "Oklahoma" (20th), the C’Scope version, okay in Frisco, shapes good in K.C. "Bundle of Joy" (RKO) looms robust in Chi. "Written on Wind" (U), fancy in Louisville, looks lively In L.A. playing some 10 locations. "Lust For Life” (M-G), still big on longrun in N. Y., is okay in Boston. "Wrpng Man" (WB). looms nice in Toronto. "Edge of City" (M-G), okay in Portland, looms solid in N. Y. "Don’t Knock Rock" (Col) shapes smash in Detroit and wow in N. Y. being backed by a rock ’n’ roll stage show at Paramount in latter city. "Baby Doll" (W) continues big on longrun In N. Y. "Iron Petticoat" (M-G), okay in Toronto, is hotsy in Washington. (Complete Boxoffice Reports on Pages 8-9.) Negotiations with Metro repre¬ sent the last attempt on the parC< of 20th-Fox to effect a studio merg¬ er of some kind or another, Spyros P. Skouras, 20th prexy, said in Manhattan last week He confirmed that a survey was under way to es¬ tablish the feasibility of 20th giv¬ ing up its lot and moving over to Culver City on a rental basis. Earlier, 20th had been irt dis¬ cussions with Warner Bros, about a possible lumping together of facili¬ ties at Burbank Deal fell through on some rather minor technicali¬ ties, it’s understood. In the light of 20th’s ambitious production sked for this year, the general opinion at 20th is that the moveover to the Metro lot is highly unlikely. Skouras said no thought what¬ ever had been given to distribution mergers by 20th either domestic¬ ally or abroad, and he implied that no such, moves are in any way con¬ templated in the future. T)istribution costs, he agreed, are high. At the same time, he did not seem to feel that a merger operation would result in any extraordinary sav¬ ings. 20th prexy reflected the unusual¬ ly high optimism that prevails these days at the company. Ac¬ cording to present plans, 20th will release up to 55 features this year, including some potentially very high grossing pix. 20th has high expectations for "Oh Men, Oh Women," "Boy on a Dolphin," "Desk Set," "Island In the Sun" (Continued on page 13) Zanuck (As Indie) Rues High Cost Of Distribution Producer Darryl. F. Zanuck, speaking as an independent re¬ leasing through 20th-Fox, said in Manhattan last week he had always thought there were too many dis¬ tribution companies and that he considered mergers both here and abroad "a good idea." Zanuck, who’s also on the board of 20th, said distribution costs in his view were high. "I have no clear idea what to do about this, but I sure wish they’d reduce them on my pictures," he said. As for studio mergers, Zanuck— who for years ran the 20th lot — didn’t think they’d "really accom¬ plish anything. I can’t see any great savings in it. The basic costs (of running a studio) aren't tre¬ mendous compared with the cost of pictures." Has Hollywood carried its econ¬ omy drive far enough? "If you want to make pictures of quality, then you must buy quality,’’ said Zanuck. "If quality is the aim, that I don’t know how to cut ex¬ penses, further." Asked whether 20th had consid¬ ered merging its distribution facili¬ ties to bring down releasing costs, (Continued on page 63) Foreign Distribs Argue: More Jap Houses, Fewer Pix Justify New Quotas Tokyo, Feb. 19. Reps of eight foreign film dis¬ tribution companies said they would ask for a more liberal film import quota to fill what they feel is a growing need. Distribs pointed to the sharp increase of new the¬ atres in Japan without a like in¬ crease in available product. In 1956, 600 new houses were built in Japan, they explained. Following a meeting of the Gaiga Kondankal (Foreign Film Import Committee), they also cited the cur¬ tailment of Japanese feature prod¬ uct during 1957. They indicated they would press the Finance Ministry for relaxation of the basic 162-film import quota. National Boxoffice Survey Holiday Booms Biz; *10 Cs’ First Again^ *Hymn^ 2d, *80 Days' 3d, * Wonders' 4th, *Oh Men' 5th