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Leiber and Stoller collaboration and draft notice

Presley made his third and final Ed Sullivan Show appearance on January 6, 1957—on this occasion indeed shot only down to the waist. Some commentators have claimed that Parker orchestrated an appearance of censorship to generate publicity. In any event, as critic Greil Marcus describes, Presley "did not tie himself down. Leaving behind the bland clothes he had worn on the first two shows, he stepped out in the outlandish costume of a pasha, if not a harem girl. From the make-up over his eyes, the hair falling in his face, the overwhelmingly sexual cast of his mouth, he was playing Rudolph Valentino in The Sheik, with all stops out." To close, displaying his range and defying Sullivan's wishes, Presley sang a gentle black spiritual, " Peace in the Valley ". At the end of the show, Sullivan declared Presley "a real decent, fine boy". Two days later, the Memphis draft board announced that Presley would be classified 1-A and would probably be drafted sometime that year.

Each of the three Presley singles released in the first half of 1957 went to number one: " Too Much ", " All Shook Up ", and " (Let Me Be Your) Teddy Bear ". Already an international star, he was attracting fans even where his music was not officially released: The New York Times reported that pressings of his music on discarded X-ray plates were commanding high prices in Leningrad. Presley purchased his 18-room mansion, Graceland, on March 19, 1957. Before the purchase, Elvis recorded Loving You —the soundtrack to his second film, which was released in July. It was his third straight number-one album. The title track was written by Leiber and Stoller, who were then retained to write four of the six songs recorded at the sessions for Jailhouse Rock, Presley's next film. The songwriting team effectively produced the Jailhouse sessions and developed a close working relationship with Presley, who came to regard them as his "good-luck charm". "He was fast," said Leiber. "Any demo you gave him he knew by heart in ten minutes." The title track became another number-one hit, as was the Jailhouse Rock EP.

Presley undertook three brief tours during the year, continuing to generate a crazed audience response. A Detroit newspaper suggested that "the trouble with going to see Elvis Presley is that you're liable to get killed". Villanova students pelted the singer with eggs in Philadelphia, and in Vancouver the crowd rioted after the show ended, destroying the stage. Frank Sinatra, who had inspired the swooning and screaming of teenage girls in the 1940s, decried rock and roll as "brutal, ugly, degenerate, vicious.... It fosters almost totally negative and destructive reactions in young people. It smells phoney and false. It is sung, played and written, for the most part, by cretinous goons.... This rancid-smelling aphrodisiac I deplore." Asked for a response, Presley said:

I admire the man. He has a right to say what he wants to say. He is a great success and a fine actor, but I think he shouldn't have said it.... This is a trend, just the same as he faced when he started years ago.

Leiber and Stoller were again in the studio for the recording of Elvis' Christmas Album. Toward the end of the session, they wrote a song on the spot at Presley's request: " Santa Claus Is Back in Town ", an innuendo -laden blues. The holiday release stretched Presley's string of number-one albums to four and would become the best-selling Christmas album ever in the United States, with eventual sales of over 20 million worldwide. After the session, Moore and Black—drawing only modest weekly salaries, sharing in none of Presley's massive financial success—resigned, though they were brought back on a per diem basis a few weeks later.

On December 20, Presley received his draft notice, though he was granted a deferment to finish the forthcoming film King Creole. A couple of weeks into the new year, " Don't ", another Leiber and Stoller tune, became Presley's tenth number-one seller. Recording sessions for the King Creole soundtrack were held in Hollywood in mid-January 1958. Leiber and Stoller provided three songs, but it would be the last time Presley and the duo worked closely together. As Stoller later recalled, Presley's manager and entourage sought to wall him off. A brief soundtrack session on February 11 marked the final occasion on which Black was to perform with Presley.