Variety (December 1958)

Wednesday, December 3, 1958 PiSRtEff PICTIJRES SEE RKO EX-MPEA IN 1959 Stars-Whh Payolls 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, Dec. 2. - Spyros P. Skouras, 20th-Fox prexy, lashed out again at exces¬ sive production costs in Hollywood, when 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, was 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 W’ho complained that the return to them was too small. They both argued that distribution costs were too high, but this, said the 20th toppr. was 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 towards 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 25% of the profits. All this, he warned, W'ould 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 countries 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 loU tv, the 20th prexy referred to the excellent way in which the British Industry had preVented the sale of pre-ffl48 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. ^ Tacific’ 32 Weeks in Nabe 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. 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 will be brought here for Directors annual awards dinner Feb, 7, as guild guest. Third D.S.Fih 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 ($0,000,000), 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 Communist 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 39c interest, but foT 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. Howevef, 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 w^as 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, w^hich 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.A. is in no hurry to ditch RKO, w'hich 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 I 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 High Despite Aug. 23 Year-End $1,023,000 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 rounds 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. Louis A. Green Military Priority Oyer Theatres Fought Via Forces’ Booking Dept. A special Theatre Owners of America committee will meet next month in Washington with the Armed Forces Booking Dept, in order to correct what the exhibitor ^oup 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. Pickus and Ernest Q. StelUngs. Ulcerated, Wald Idles Hollywood, Dep. 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. Loew s Itself Louis A. Green, the Loew’s Inc. board member who has launched a proxy fight against the company, is preparing a list of stockholders prior to launching his proxj- solici¬ tation campaign. Green initially requested that the management turn over the list, but Loew’s offi¬ cials declined on the ground that his position was inimical to the welfare of the company and, in effect, told the insurgent director to obtain the names as best he could. As a consequence. Green’s reps will have to go through the lengthy job of copying down the names at the stock transfer office. Green should have the list by the end of this week. In the mean¬ while, he is said to be preparing a slate of directors to present to the stockholders when he makes his solicitation. The date for the start of Green’s fight, via the mail¬ ing of a letter to stockholders, is not known, but a spokesman for Green stated that the stockholders “will be solicited in due course.” At the same time, Green is making arrangements for the retention of a public relations counsel and a proxy solicitation firm. Loew’s officials appear to be taking the threat of a fight calmly. They feel that there’s sufficient time to answer any charges that Green may make. “He has a long way to run,” said a source, mean¬ ing that the annual stockholders’ (Continued on page 10) Warner Bros, had a loss of $1,- 023,000 for the year ended la.'^t 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 confinuing dividend rate of $1.20 per year. Further, despite the downbeat, trading in Wall Street is reflect¬ ing substantial optimism, the WB shares having hit a new high of $24.62^2 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¬ mitted by president Jack L. 'W’ar- ner, advances to independent pro¬ ducers are responsible for the defi¬ cit in the new year. Such losses accounted for a red ink entry of $3,000,000. Consolidated, balance sheet shows total current assets of $54,419,000 and current liabilities of $24,- 683,000, the latter including a $5.0000,000 bank loan due Aug. 14, 1959. 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 comparable period in 1957. ■. The third quarter was down slightly, dropping to $1,357,982 from $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 will show up on the 1958 boolK however. To what extent the foreign rdarket Is helping to pull 20th’s chest¬ nuts out of the fire Is pointed iip 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 be 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 .last 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 $2,137,916 in foreign income taxes. Last year, total tax provisions came to $6,351,068. D. A. Brandon Goes Free In Bomb Indictments I Tied to’54 Union Strife ! Corpus Christi, Tex., Dec. 2. ^ Two indictments charging D. A. Brandon with theatre bombings have been quashed, ending four years of efforts to bring the union ; leader to trial. The action by Jud.ge Cullen Briggs brought to an end two days of hearings in 117th dis- i trict court and completely removed : Brandon and his codefendant. Leon i Wilson Malone, from further prose¬ cution in the two cases. The main factor considered by Judge Briggs in reaching his deci- j sion was that the location of the Avalon and BelLaire Theatres, named in the indictments, were not : specifically identified. Both thea- j tres were totally or partically de- I stroyed Oct. 9, 1954, during a dis- ; pute between union men and the- . atre managers. Brandon is biz I agent for the local projectionists i union. I Carl R. Cude, indicted with I Brandon and Malone in the two I cases, pleaded guilty to both counts more than two years ago, has I 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-up 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, refiiming Old Testament foot identifying the deceased actor in the same role. Edward Small’s production rep¬ resentative Ben Goetz and screen¬ writer George Bruce 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.