Variety (December 1958)

Wedncgday, December' 3, 1958 PSfitffFr picTunBs SEE RKO EX-MPEA IN 1959 Stars-With Payoffs in Stratosphere Some of the top studios are doing a burn with the way inde¬ pendent producers, such as those aligned with United Artists, are consenting to what they consider “astronomical” payoffs to stars. Story in last week’s Variety related that Marlon Brando, John Wayne and William Holden now receiving $750,000. per picture. Brando is to receive $750,000 for his work in “Orpheus Descend¬ ing,” Martin Jurow-Richard Shepherd production. Money-minded execs at the homeoffices in New York are of the opinion that the top performers and their agents are being en¬ couraged to demand such payoffs simply by the willingness of the indie producers to shell out. And as the indies go along with the top-bracket payoffs, so, too, must the big studios in order to latch on to the valuable marquee names. Said a v.p. of one of the big companies in Gotham this week: “It’s getting to be an impossible situation.” _ Skouras Again Decries Cash Demands of Actors & Directors London, D'ec; 2. 4- Spyros P. Skouras, 20th-Fox prexy, lashed out again at exces¬ sive production costs in Hollywood, w'hen he was feted by British in¬ dependent exhibitors at a Savoy dinner to celebrate the fifth an¬ niversary of the launching of Cine¬ mascope in Great Britain. The oc¬ casion was organized by W. J. Fooks, a Cardiff exhib, who pre¬ sided at the function. Business in the United States, said Skouras, has seldom been so bad but, at the same time, Holly¬ wood had never been so prosper¬ ous.. The degree of prosperity, he added, w’as almost grotesque. Skouras began by describing the role of the distributor as a buffer block between producers and ex¬ hibitors. On the one hand, distribs had to contend with exhibitors who beefed that rentals were too high and, on the other hand, with pro¬ ducers who complained that the return to them was too small. They both argued that distribution costs were too high, but this, said the 20th toppr, w'as due to the Consent Decree. In pre-war days 275 prints sufficed, whereas now 400 were needed. Color was then the exception and now more general. Further, there was the tendency tow’ards longer films. As evidence of the serious trend of rising costs. Skouras said 20th had paid $500,000 for the rights to John O’Hara, new novel, “From the Terrace,” which was to be a new vehicle, for Mark Robson. There were cases of stars receiv¬ ing a fee of $800,000 plus 1 % of the gross and directors demanding $250,000 per picture and 259o of the profits. All this, he warned, would reflect on exhibitors, not only in the United States, but throughout the world. He made an appeal to the indus¬ try to put its house in order so far as production costs were con¬ cerned and warned of the dangers of losing ground to the Russians. They would certainly step in if Hollywood, Britain, France and the other free couritries were compelled to go out of business. While insist¬ ing he was not an evangelist, Skouras insisted that it was urgent to save the industry from destruc¬ tion and stop paying fabulous salaries. In a final brief reference to loll tv, the 20 th prexy referred to the excellent way in which the British industry had presented the sale of pre-lfl48 backlogs to tv via FIDO and suggested that some arrange¬ ment should be made to stop the release of features for subscrip¬ tion-television until at least five years after their release. The new medium, when it comes, should be used to the advantage of the whole Industry, he urged. * Directors Honor Clair • . Hollywood, Dec. 2. Screen Directors Guild has selected Rene Clair’s “Porte Des Lilas” as “best directed’- non-English-speaking film of 1958. Clair W’ill be brought here for Directors annual., awards dinner Feb. 7, as guild guest. Tacific’32WeeksmNabe Dallas, Dec. 2. After a, run of 32 weeks and three days at the Wynnewood The¬ atre, “South Pacific” (Magna) the third Todd-AO technicolor film ended its run at the Rowley United Theatre. W. S; Samuel, manager of the house estimated that 130,000 pa* trons viewed the film in the nabe house located six and a half miles from downtown Dallas, Third U.S. Film Loan to Japan Power Co. Looms Tokyo, Dec. 2. The American film industry’s third loan to Japanese industry, running to about 3,000,000,000 yen ($9,000,000), is virtually set but Won’t be finalized until the Diet recesses.. Reason is that the loan is a hot political issue which might rouse Commynist and other oppo¬ sition in the Diet. As in the past,, the loan is to the Japanese hydroelectric power de¬ velopment company. It’s at the usual a'Tc interest, but fol* only six years, and the amount remittable when the deal goes into effect is larger than before. The Japanese Government guarantees repayment in dollars, but only at the prevail¬ ing official exchange rate at the time the remittance is made. Irving Maas, the Motion Picture Export Assn, rep in the Far East, deliberately left Tokyo for Manila while the Diet entered its closing days. However, it did not recess, as had been expected, and so the loan hangs fire. Eric Johnston, prez of MPEA, now isn’t expected to arrive here until early in 1959. He originally was due in Tokyo during November or December. RKO, still forking over around $1,000 a week In dues, will remain a member of the Motion Picture Export Assn, until it has exhausted its present supply of product. It’s expected to bow out in the spring of 1959. RKO’s status in the Association was discussed at a recent meeting between MPEA president Eric Johnston and Tom O’Neil, head of General Teleradio, which owns RKO. There’s been a good deal of dis¬ cussion among MPEA members re the RKO standing in the trade org, particularly since RKO is virtually out of business. It is not producing films, and it isn’t distributing them either, having turned over its films in the States to Universal and abroad to the Rank Organization in most areas. Yet, RKO continues to draw im¬ port licenses via its MPEA mem¬ bership. Johnston and O’Neil are said to have agreed that RKO should con¬ tinue in the Association as long as it has some unreleased films in Jts vaults. There are only two left. It’s highly unlikely that—as some have suggested—RKO will remain an MPEA member “on paper only,” so as not to make an ostentatious display of a crumbling Association. Apart from that, MPE.4 is in no hurry to ditch RKO, which still contributes some $52,000 a year -in dues. Its regular (domestic) pay¬ ments come to close to $800 week¬ ly. In addition, it’s assessed for MPEA expenses out of foreign blocked funds, along with the other companies. If and when RKO drops out, the gap in the MPEA budget will be felt. What worries MPEA members more, however, are the inevitable echoes that will come from abroad. Though the Association is prepared to fight this argument, it expects that various countries will seek to reduce their overall license allotments to MPEA on the grounds that it no longer speaks for either Republic or RKO and therefore is entitled to fewer per¬ mits. The MPEA reply to this is that, if a company drops out, the others fill the gap. Warner Stock at $24.62 H^h Despite Aug. 23 Year-End $1023,060 Loss Gift Fit for Queen San Francisco, Dec. 2 . Spyros Skouras is giving Greece’s Queen Frederika a little gift. It’s a complete color. Cine¬ mascope record of the Queen’s 21-day visit to the U.S. and 20th-Fox crew was very much in evidence as Queen made her official founds in Frisco last week. Cameraman Tony Muto and rest of crew is following Queen all over nation and footage will be presented to her at tour’s finish. Warner Bros, had a loss of $ 1 ,« 023,000 for the year ended last Aug. 23, compared with a profit of $3,415,000 for the preceding year. This obviously is a rough financial rap for the company to take but nonetheless does not inter¬ fere with the continuing dividend rate of $ 1.20 per year. Further, despite the downbeat, trading in Wall Street is reflect¬ ing substantial optimism, the WB shares haying hit a new high of $24.62V^ per share. And the word has been spread around the Gotham financial area that the film corporations first quarter of fiscal 1959 will show an imporant profit. Among the highlights of the bal¬ ance sheet at the end of fiscal 1958: cash on hand is about the same, at $13,223,000; current assets less current liabilities are $ 34 ,* 736,000, down from $40,956,000; net worth (book value), is down from $44,857,000 last year to $40,774,000 this year; total income for 1958 is listed at $72,316,000, compared with $80,279,000 last year. According to a statement sub- Mililary Priority Over Theatres Fought Via Forces’ Booking Dept. A special Theatre Owmers of America committee will meet next month in Washington with the Armed Forces Booking Dept. In order to correct what the exhibitor proup terms “the highly unfair and improper competition of military installation theatres that play new product ahead of nearby commer¬ cial theatres.” The committee, according to TOA, will employ a dignified but firm approach. In the meanwhile, TOA members are being solicited for facts and figures relating to the menace of the G.I. competition. At the same time, TOA has urged its members to get In touch with their Senators and Congressmen to obtain their support In fighting the “unfair competition.” The TOA committee, chair* manned by Robert J. O’Donnell, consists .of Burton I. Jones, Burton Kramer, Robert R. Livingston; Al- betr M. Pickui and Ernest Q. Stellings. Ulcerated, Wald Idles Hollywood, Dec. 2. Jerry Wald has been bedded by an . attack of ulcers. He’ll be out of the turmoil for at least 10 days. Malaise has ended his immediate plans to holiday in Europe and Manhattan. Lauis A. Green Gets No Aid From Loews Itself Louis A. Green, the Loew’s Inc. J _ _t_ 1-1. 1 1 J -Tk^uvji lu a otaiciiiciit auu- board member who has launched fitted by president Jack L, War- a proxy fight against the company, per, advances to independent pro- is preparing a list of stockholders ducers are responsible for the defi- prior to launching his proxy sollci- cit in the new year. Such losses tation campaign. Green initially accounted for a red ink entry of requested that the management $3 000 000 . Consolidated balance sheet shows “b ground that total current assets of 554,419.000 his position was mimical to the and current liabilities of $24,- 1511, . I?® .™®Pbny and, in 683.000, the. latter including a effect told the insurgent director 85,0000,000 ba'nk loan due Aug. to obtain the names as best he 14 , 1959 , could. As a consequence. Green’s ' __ reps will have to go through the . . names at the stock transfer office. D. A. Brandon Goes Free thferd^fltoweerin'lhemean-, h Bomb Indicfments while, he is said to be preparing; IT * Cl a slate of directors to present to ^ 116u lO t!)4 uDIOD mriI6 t^he stockholders when he makes • Corpus Christi. Tex., Dec. 2. his solicitation. The date for the + u • ta * start of Green’s fight, via the mail- charging D. A. ing of a letter to stockholders, is "'IL bbrnbrngs not known, but a spokesman for Green stated that the ^stockhnlderc efforts to bring the union !?wm"bfs'ofMfe1 ^ Sn‘Brill', 11^51^0”^ At the same time, Green is making 4 .„. j of^hparintrf^n arrangements for the retention of ; ^et court Ld completely rlmored Irn'lv ’ Bbandon and his coLfendant. Lein proxy solicitation firm. , Wilson Malone, from further prose- Loew s officials appear to be cution in the two cases. taking the threat, of a fight calmly.; They feel that there s sufficient j^jge Briggs in reaching his deci- hme to answer any^charges that ^i^n was that the location of the Green may make. He has a lon„ Avalon and Bellaire Theatres, .Tv.’ " ■^ the indictments, were not mg that the annual stockholders specifically identified. Both thea- (Gontinued on page 10) Jtres were totally or partically de- ! stroyed Oct. 9, 1954, during a di.s- ' ; pute between union men and the- I O’Seas Grosses Comfort 20th-Fox Fighting hard to overcome a scarcity of top releases (and grossers) in the third and fourth quarter, 20th-Fox last week reported a $6,590,991 net for the 39 weeks, ended Sept. 27, 1958. Figure compares with a' $5,523,858 net for the comparab^ period in 1957. j The third quarter was down slightly, dropping to $1,357,982 from i $1,553,993 last year. That’s attributed at 20th to a lack of strong; films coming through from the studio. Also, a couple of highly-touted | pictures have been disappointments. The fourth quarter, will be even tougher for 20th, though it has some top product coming out in the last two months of December! (“Inn of the Sixth Happiness,’ etc.) and will have “Mardi Gras”; and “In Love and War” going for It In the subsequents. “Roots of Heaven” also will be hitting in a general release. In the final ac¬ counting, only the first three weeks of the month wiU show up on the 1958 books however. To what extent the foreign rriarket is helping to pull 26th’s chest¬ nuts out of the fire Is pointed up by the fact that, where the domestic end racked up $750,000 in billings one recent week, foreign did a whopping $1,700,000 in its International drive week devoted-to prexy Spyros P. Skouras. Total foreign billings for 1958 will bs just below the 1957 high of $47,000,000. 20tn must bill about $1,000,000 domestic¬ ally to break even. The $6,590,991 net for the 39 weeks ended Sept. 27, 1958, amounted to $2.87 per .share on 2.293,186 shares of common outstanding. The 1957 net equalled $2,13 per share. Total film rentals. Including tv sales, for the 39 weeks ran to $87,987,176 against $89,419,401 in 1957. Total Income was $94,136,723 against $96,556,893 iast year. Amortization dropped to $37,869,239 from $48,610,878. with, total expenses $57,728,144 against $59 748,841 last year. Distribution and administrative expenses went down by over $1,000,000 to $22,119,132 for the 39 weeks In 1958. The $6,590,991 net was after provision for $3,750,000 In U. S. and $2,137,910 in foreign Income taxes. Last year, total tax provisions came to $6,351,068. atre managers. Brandon is biz agent for the local projectionists union. Carl R. Cude, indicted with Brandon and Malone in the two cases, pleaded guilty to both counts more than two years ago, has served his sentence and was re¬ leased about nine months ago. Brynner Party in Madrid Madrid, Dec. 2. Yul Brynner arrived in Madrid last Sat. (29) as star replacement for the late Tyrone Power. He was accompanied by Paul Radin, vice- prexy of the actor’s own Alciona Productions, screenwriter Peter Viertel, make-np-man Tom Tuttle and press agent Steve Brooks, Brynner will make his initial camera appearance as King Sol¬ omon in Edward Small’s biblical epic “Solomon and Sheba” next week, refilming Old Testament foot identifying the deceased actor in the same role. Edward Small’s production rep¬ resentative Ben..Goetz and screen¬ writer George ;§ruce arrived earl¬ ier this week. Producer Ted Rich- ihond stated that Brynner has a termination date of Feb. 10 to meet another film commitment, but that production on “Solomon and Sheba” would probably continue until the end of February.