Variety (November 1957)

VedaerfM, N®veidJ>etJ5, 1957 vmem PICTURES Lombroso, in Madrid, Foreshadows Republics New Foreign Future mmr Q»«s ** Wfflim MPEA; B y HANKWERBA Madrid, Nov. 5. Herbert J. Yates will continue to helm Republic Pictures and. the company is embarking on a global comeback both in production and distribution, Republic's'Continental manager for Europe and Near East Henry Lombroso stated here. .New policy, he said, is bringing Republic into partnership with powerful producers-distributors all over the world and Yates' "happy marriage" union with foreign film interests has already resulted in launching of Globe Films Inti in France, Italy and Spain, of Im¬ perial Films Inti in Sweden and Brazil. Imperial Brazil has its owrl extensive Latin American distrib network. British Lion joined the new Republic realm last year. Greek distrib Michaelides and Dol¬ lar Films in Beirut (for the Near East) extends. the new Republic domain in the Mediterranean area. These, 'Lombroso said, are just some of the more outstanding as¬ sociations. Republic junked its overseas dis¬ trib agencies over the .past two years as the Hollywood parent com- { pany limited operations to televi¬ sion and Consolidated Laborato- j ries, Yates himself, on the verge of a sell-out, was convinced by Re¬ public’s execs and foreign reps to rein the new production-distribu¬ tion scheme for a two-year try. ’ Globe, Imperial and miscellane¬ ous; Lombroso continued, will spur Republic with two major advant¬ ages in that (1) Republic will once again control a world-wide release organization entirely free of ris¬ ing, profit-consuming overhead and (2) Republic will partner. with leading film-makers in all coun¬ tries where there are going film industries to bolster its producer status at home and abroad and fill the Republic distrib gap in the U. S. : dollar market. Attractive Arrangement He. felt the arrangement was equally attractive to European com¬ panies since Republic will sponsor and/or support film ventures over¬ seas, guaranteeing world-wide dis¬ tribution on ' profit-split terms through the Repuhlic-Globe-Impe- rial network. Bepublic will also facilitate coproduction deals be¬ tween, for example. Globe of Ifaly and Globe Iberica by financing in part or by supplying American ele¬ ments needed to give, the produc¬ tion world market flavor. First coproduction of this nature, 4 almost completely In the Can al¬ ready, is “Le Piege” (The Trap), Lombroso noted, and stars Raf coming up within the next 12 Charles Yanel (France), with* Gal¬ lic Charles Brabant directing for Globe Omnium Films of Paris and Globe Film Int’l of Rome teamed with another ltalo company, Elec- tra Films. These three companies have 11 more coproductions coming up within the next twelve months. Subsequent project, “You Find Him, I’ll Fix Him," will star Jeff. Hunter/Dawn Adams, Eleanor Rossi Dfago and either Magali Noel or Jeanne (Grisbl) Moreau with an ltalo director. Here jn Madrid on Oct. 23, cere¬ monies were held in the offices of Spain’s strongest independent distributor Dipenfa-FUmayer (see Variety,. April .24) to marie the birth of Globe Films Int'I Iberica. Antonio Lopez, president of the new organization, is also tqp man in Dipenfa-Filmayer.- Formerly distributing its product through CEPICSA, Republic films will now be released exclusively by Globe in Spain. In a distrib deal that will have deeper reper¬ cussions than the sale.of RKO here last week, 30-50 Republic films, recently sold by Republic to Buddy Rogers, will bpcome available to Globe Iberica in a deal to be ar¬ ranged between Globe and Rogers just as fast as the new; local com¬ pany 'ban collect import .licenses from the Spanish government. Lots* U.S. Product .With this impressive quantity of U; S. product dumped on the Spanish market, Glebe will act* as a film supply clearing house for Other local distribs/ Mtherto un¬ successful in collaring hard-to-get I£ S. films embargoed by the Mo¬ tion Picture Export AsSh. Dipenfa- Filmayer will naturally have first call bn Globe acquisitions. Some of the Republic pix expected to (Continued on page 14) R&mot: ‘I'll Sue ! Madrid, Nov. 5. . The sale of RKO to the. Ramos Brothers legally took place on Oct. 14, Jose Garcia Ramos told Variety on.Qct. 31 in the presence of RKO European topper Joseph Bell- fort and European sales man¬ ager Charles Rosmarin. Ros-, marin had full authority to' sign on behalf of RKO and submitted • documents tp that effect both to government offi¬ cials and the Ram-os - broth¬ ers. Ramos further stated,,, that the Oct. 14 transaction gave him and his brother all but 10 shares of RKO Hispano Stock, all physical property formerly owned by RKO and 18 pictures on an outright purchase basis. Except for a blocked peseta account, RKO has no other in¬ terests in Spain today. Citing Variety reports (Oct. 30) on MPEA efforts to force RKO .cancellation of the -Spain deal, *^ Ramos said he would turn over the matter to his lawyers and government au¬ thorities should MPEA sue- . ceed. Of the 18 pictures acquired from' RKO, Ramos’ Radio Films will distribute eight as fast as import licenses are received from the government and the product arrives. Shrinking Value Marks Tomlinson’s Stake in Loews With the general decline of the stock market and the shares of Loew’s Inc. in particular, the ac¬ tual stake of Joseph Tomlinson, the Canadian industrialist who has been challenging the Loew’s man¬ agement, in the company is actu¬ ally very thin, based on.the $250,- 000,000 Value of Loew’s. Tomlinson has stated that he purchased his 180;000 shares at an average price of $18.50 for a total cost of $3,340*000. Of . the total, however, approximately $1,400,000 represented a margin loan, making Tomligson’s total cash outlay $1,- 940,OOO. With Loew’s shares cur¬ rently hovering .at about $11.50 mark; .the value of Tomlinson’s shares has decreased about - *$7- per. share, making the. total' value of his holdings now, at about $2,070, 000. Deducting bis marginal loan of $1,400,000, Ms equity in the com¬ pany is about $670y000,.rated as ’Very sniSll’’ considering the $250,-: 000,000 value of the Loew’s empire. If the market continues to decline, Tomlinson may -have to “pony up" additional sums , to hold his Loew’s shares. In addition, if he continues to'press his fight vigorously, he will be faced by considerable legal fees and other costs involved in the staging of a proxy fight, BACK$ WITH CASH Field Modernize* As Act of Future Faith Minneapolis, Nov. 5. There still are veteran local neighborhood subsequent-run vet¬ eran exhibitors who apparently still are sufficiently confident re¬ garding exhibition’s prospects to expend substantial sums in im¬ proving their Outlying showhouses. After completing, the last stage of a Iong-range*modernization and beautification program that neces¬ sitated a four-day shuttering, the 1,200-seat de luxe St. Louis Park reopens Friday (8> with “The Sun Also Rises" in.the earliest 28-day clearance slot Owned by Harold Field, a pi¬ oneer exhibitor who’s also the owner of an Iowa theatre circuit, the St Louis* Park even before these. improvements, made at a substantial cost, was one of the city’s most attractive showhouses. Minneapolis, Nov. 5. Metro’s musical “Les Girls" has been sold away from the' much big¬ ger United Paramount and RKO Theatres in the Twin Cities to the 400-seat Minneapolis and 600-seat St. Paul Worlds, independently operated by Ted Mann. Mann was awarded the picture on competitive bids. It opens here Nov. 8 and in St. Paul a week later. No decision has been made yet as to whether the World here will raise its after-5 p.m. $1.25 for this . attraction. It CV Racking Up Big Nabe Take On 2d Time Around Spanish &nbargo Is Still Standing; U.S. Film Execs Emotionally Shaken ----—--► By FRED HIFT Japanese Repeating Behind-thwcenes efforts by Eric ... Johnston and the film companies to en? f * et BK0 to cal1 off its Spanish W-rln deal—or at least the part of it mak- ing available RKO films to the 2 Tan 3 Spaniards—were crowned with ?o d oh* JS? ^ n wiv n success last week. RKO prexy Tom 2 ?ii AnO’Neill, at a meeting with John- ston and several of the prexies in the Motion Picture Export Gotham, agreed to cancel all or As £”‘ • . .. ^ ^ part of the Spanish arrangement ’which would have splintered the Motion Picture Export Assn.’* take into aMount^ericS “common front" in Spato opinions in the selection of the , At , tbe sair *® time, the MPEA pictures' to be shown. board was told a projected deal Japanese plan to bring in th ? sa J, e a block of Republic stars for the event which is films m Spam probably wouldn t part and parcel of the Japa- 2° through. nese industry's export drive. Griffith Johnson, MPEA, v.p., has joined MPEA’s ltalo rep . -t. A * , _ Charles Baldwin in Spain. They"! ..I.... Im try to work out a deal for all the U11US llOrflOlI In majors. MPEA members have w M maintained an embargo on ship- -- — _ - - % ments to Spain for over two years. |y V ■ Iavma *f\*L| It>s k^ 11 Partly, but not wholly, il* I • UlOUlS tdDIC effective since several companies WVMIW VWMIV had to continue to honor commit- lf# ments with local distributors and 17LI.- f 1 ...thus went on shipping for many ror ins urcuiti“, O Neill s agreement to reconsld- Before Julius Gordon, president “ th f f le , of RKO facilities land r*« “Da , m films) to l° ca l Spanish interests Minneapolis, Nov.- 5. part and parcel of the Japa- 80 Larou8U - In its second run Of Minneapolis nese. industry's export drive. Griffith Johnson, MPEA, v.p., and first round of St. Paul neigh- . -r*... . .. =5 has joined MPEA’s ltalo rep borhood houses uhder a unique ~ n ‘ v _ Chtirles Baldwin in Spain. They"! sales plan that has the two cities In Ivh a I AVflAll In try to work out a deal for all the respectively zoned into four and .IIIIIUN llfl'lUllll 111 majors. MPEA members have three widely separated areas for - maintained an embargo on ship- competitive bids, “The Ten Com- •« f , ments to Spain for over two years, mandments” continues to gamer py y ( Iaima I nnln Its 1)6611 P^rtiy. but not wholly. Twin Cities’ subsequent-run prece- 11. I . Vll(||||S t/alllC effective since several companies dental grosses. kad t0 C o n ^ nue f 0 honor commit- No other picture hrfs remotely ments with local distributors and approached the “Commandments’ ” |7—^ U TA f 1 ««»Avv*L tbus went on shipping for many takes' for local subsequent runs. flir fl|N months. Second round of four successful- O’Neill’s agreement to reconsld- ly bidding theatres playing it day Before Julius Gordon oresident er the Mle of RKO facilities (and and date here are charging the ® ^ to local Spanish interests same $1.25 admission as did the of Jefferson Amus. Co., Beaumont, has ^ de implications going way initial quartet before them and a 50-theatre chain in the southwest beyond the immediate issue of the they, like their quartet of prede- (it was originally over 90 houses), Spanish embargo. There was a cessors, also are obligated to hold returned to his Texas base, he also feeling among top execs that on it for a minimum two-we_ek run. explored the cable-theatre aspects RKO’s move might hinge the en- The first round of local outlying of the picture business. Like many tire future of the MPEA as a func- houses held the DeMille picture a an exhibitor, with a grim eye on tioning and effective entity abroad, third week although their bids dwindling boxoffice, he is inspec- ’Companies are sharply aware of didn’t require them to do so. ting the home-theatre potential, the need for an association and In St. Paul the three day and th’s time as a franchise-owner of the necessity of convincing Indus- date neighborhood theatres, the whichever cable-system . appeals tries and governments abroad first to play “Commandments” most to! him, rather than as a thea- that the industry is capable of com- since its downtown eight-week non- tre operator. ' mon action, reserved seat engagements, are But it was at the Allied States Honestly Unaware charging $1.25. _ I convention in Kiamesha Lake, RKO move in Spain, apparently Before being released anywhere; NY> last wee k, that Gordon ad- taken in honest ignorance of the else in the territory, “Command^ ■ vanced the depreciation-of-proper- ramifications, gave the impression ments ran 13 weeks -at the local t . proffralIli His main point is (1) that such common action was Im- Lyric as a hard-ticket $2.25 there is precedent under the possible to achieve when the chips attraction. Its first release to the 102 B Section of the Excess Profits are down. This belief, if it spreads uptown theatres occurred several Law and (2 ) it can’t hurt the Gov- overseas, can seriously hurt the months after the end of its down- ern]tneu t on its tax structure. By U. S. companies and certainly town engagement. keeping the theatres in busmess it would tend to influence the policy ' perpetuates revenue anew rather of those whose interests oppose Charles Schlaffer, ad agency th ^ the theatres’ properties were those of the American outfits, operator reelected secretary-treas- ^ ecked and the lo ^ s charged off. In other words, say execs con- Hp^^ 10n his For the first time, argues Gor-l cerned with the foreign market. Mental Illness and Health . . . his . lei the RKO _if it had remained third term in office.. . _ (Contmhed on page 16) _ toe MO ^e-,f it ha^r™d * I given the impression abroad that IV* * *1 • ft ’ • Iir FI J ' the MPEA is a pushover since its Distribs in apam Warn rroaucers ^r^ivS^rd^.s^e/ari.eS of policy adopted by the majority. 4 • - IT" I • 1Y a __ f 17 1- MPEA board meet last Friday Against Helping Keturn ot ianks ssk u . . the morning meeting with O’Neill. ^ Madrid, Nov. 5* producers limited U. S. imports to Once informed of the situation, Spanish producers who one week 80 dubbed films per year and 15-20 RKO showed a most cooperative ago were still exploring possibili- additional with sub-titles, with attitude, the board was told, ties of * film settlement With the seven MPEA agencies and United Johnston-O’Neill Motion Picture Export Assn., were Artists each getting 8 or 7 of the Question was raised of John- bluntly advised by independent dis- 80. Calling for immediate-entry ston’s role in the whole thing, trip spokesmen here to shun the of U. S. pix, they suggested an Johnston and O'Neill met some- disputefor-face distributor interven- effective release date of next East- times in September to discuss tiQix in matters of film production er or Sept '58 to avoid risk of RKO’s future role in the industry, polipy that might alter the exten- fatal competition with this season's O’Neill asked Johnston whether sive protection now enjoyed by the fare in which local distribs invest- the MPEA could in any way object native film-makers.' ed heavily. to RKO’s closing of some overseas Producers’ attempt to mediate a Delegation, formed by Producer offices. Approached on such a nCw 'pact - started a. month ago Assn, prexy Jorge Tussell'and two general level, Johnston reportedly when a successful exhib-producer 0 f Spain’s leading producers, Ce- stated that MPEA had no control entente increased obligatory screen sareo Gonzalez (Suevia Films) and over what member companies did time for native releases .from six Jose Luis de Navasquez (Charmar- in this respect. And there the to nine weeks and harmony be- tin), also asked that, in the event subject was dropped, tween the two Industry branches of pact failure, import license fees If O’Neill had Spain in mind carried over to push for re-estab- for European films be increased when he talked with Johnston, he lishmeht of normal film relations substantially and brought in line didn’t say so. And Johnston ap- with America’s Motion Picture Ex- with fees paid by U. S. companies, parently didn’t press further. John- port Assn, to ri'd the industry of They reasoned that Continental ston didn’t report this conversa- plaguing instability resulting from product, in the partial absence of tion to the board. This later g3ve the U. S. suspension of film ship- American competition, was earn- rise to rumors that Johnston had ments to Spain. . ing ss much as Hollywood prod- known about the Spanish deal all Main producer argument was uct (and more). ' along, but had kept it to himself, that the official aid fund had ’ Final producer petition, as a last At a later ’point, when faced with reached a crisis deficit at a time resort measure, asked government the uproar over his Spanish action, when bank credit had been sus- film toppers to restore -a pre-1953 O’Neill « said to have expressed pended nationally on government policy of giving import licenses to his surprise, saying that he had order. Producers could neither producers themselves who, in turn, indicated to Johnston what was get sindicatp loans for new proj- would again be authorized to seli coming. ects nor classification premiums the documents on the open mar- There is now a report (uncon- with which to pay mounting debts, ket to all bidders, including MPEA firmed so far) that RKO also is As aid fund coffers are filled prin- agencies in Spain. planning to close shop in France, cipally from U. S. film import Ii- Asked to Wait part of the overall move to liqui- cense charges, quicker solution, Government asked producers to date its entire foreign setup, they argued, was immediate entry await a final distrib association Prior to the board meeting, sev- of MPEA product. vote on peace proposals initiated eral foreign managers of the com- Producers’ Delegation by Enrique Aguilar,*Universal man- panies strongly favored that RKO* An official producer delegation ager in Spain, which had already be expelled from the MPEA for Its called on government film author!- been favorably voted by the dis- failure to adhere. to the embargo ties and discussed proposals for trib group execs. Before a deter- resolution. In the minds of most settlement. Formula backed by (Continued on page 18) (Continued on page 14) Madrid, Nov. 5. Spanish producers who one week ago were still exploring possibili¬ ties of a film settlement with the Motion Picture Export Assn., were f bluntly advised by independent dis¬ trip spokesmen here to shun the • disputebr-face distributor interven¬ tion in matters of film production polipy that might alter the exten¬ sive protection now'enjoyed by the native film-makers. „ Producers’ attempt to mediate a nCw pact - started a month ago when a successful exhib-producer entente increased obligatory screen time for native releases .from six to nine weeks and harmony be¬ tween the two Industry branches carried over to push for re-estab¬ lishment of normal film relations with America’s Motion Picture Ex¬ port Assn, to rid the industry of plaguing instability resulting from the U, S. suspension of film ship¬ ments to Spain. Main producer argument was that the official aid fund had reached a crisis deficit at a time when bank credit had been sus¬ pended nationally on government order. Producers could neither get sindicate loans for new proj¬ ects nor classification premiums with which to pay mounting debts. As aid fund coffers are filled prin¬ cipally from U. S. fifin' import li¬ cense charges, quicker solution, they argued. Was immediate entry of MPEA product. Producers’ Delegation An official producer delegation called on government film authori¬ ties and discussed proposals for settlement. Formula backed by producers limited U. S. imports to 80 dubbed films per year and 15-20 additional with sub-titles, with seven MPEA agencies and United Artists each getting 8 or 7 of the 80. "Calling for immediate- entry of U. S. pix, they suggested an effective release date of next East¬ er or Sept ’58 to avoid risk of fatal competition with this season's fare in which local distribs invest¬ ed heavily. Delegation, formed by Producer Assn, prexy Jorge Tussell'and two of Spain’s leading producers, Ce- - sareo Gonzalez (Suevia Films) and Jose Luis de Navasquez (Charmar- tin), also asked that, in the event of pact failure, import license fees, for European films be increased substantially and brought in line With fees paid by U. S. companies. They reasoned that Continental product, in the partial absence of American competition, was earn¬ ing .as much as Hollywood prod¬ uct (and more). ’ Final producer petition, as a last resort measure, asked government film toppers to restore pre-1953 policy of giving import licenses to producers themselves who, in turn, would again be authorized to sell the documents on the open mar¬ ket to all bidders, including MPEA agencies in Spain. Asked to Wait Government asked producers to await a final distrib association vote fon peace proposals initiated by Enrique Aguilar,* Universal man¬ ager in Spain, which had already been favorably voted by the dis¬ trib group execs. Before a deter- (Continued on page 18)