The Film Daily (1939)

DAILY Tuesday, April 4, 1939 Neely Measure Means Chaos for Films, Senators Told MPPDA and SAG Join in Attack as Hearings Start; Atkinson Defends (Continued from Page 1) told the sub-committee members that passage of the Neely measure would gravely affect the industry, and Montgomery declared that the SAG believes "enactment of the Neely bill would bring about a chaotic condition in the motion picture business from which, in their opinion there could be no recovery within a period of 12 months or 12 years." Henry R. Atkinson of Boston, Mass., president of the Boston Chapter of the Motion Picture Research Council was the only witness to appear yesterday in favor of the bill. In an introductory statement, he declared the present method of distributing films is "like selling food or drugs without a label." He said other members of the Research Council, headed by Mrs. Mary Bannerman, Washington legislative representative, would appear within the next few days to present additional testimony. Senator Toby Absent The hearings began at 10:30 a.m. with Senator Ellison D. "Cotton Ed" Smith of South Carolina presiding. All members of the sub-committee, except Senator Toby of New Hampshire were present. Before a packed house, Montgomery told the subcommittee that the SAG and its attorneys had carefully studied the bill and came to the conclusion that if it should become law it would cut in half the production schedules of the motion picture industry. He declared this would directly affect the employment of some 282,000 persons who are employed in production, distribution and exhibition divisions of the film industry. Senator Neely asked Montgomery if the number of pictures produced in 1937 was only about half of those produced in 1927. Montgomery asserted that this was due to the fact that silent pictures prevailed in 1927, which made it easier to produce more films. In a surprise move, Senator Neely asked that witnesses who intended to appear in favor of the bill cancel their testimony. He said he thought this would save time and declared that in his opinion the matter had been gone into thoroughly enough before for the committee MPPDA Counsel Assails Neely Bill (Continued from Page 1) market, together with the present returns from our first-run American theaters." * * * # "Pictures cannot be sold one at a time if this business is to exist." . > * * * * "We want every theater in the U. S. to stay in business. We are willing to continue to serve many small towns in far-away points at a loss. Those accounts produce new customers just as the large accounts in big cities do." « « • • "This bill is against the interest of the moviegoers. It would throttle an industry that has given the people in every American town a priceless visual education, the privilege of foreign travel, plus entertainment at the price of an ice-cream soda." Judge Allows $191,865 Fees In Loew Stockholders Suit (Continued from Page 1) bursements in the Loew's stockholders' suit. To Emil K. Ellis, counsel for the stockholders, was awarded $64,025; Menden & Mann, $7,375; Abraham L. Pomerantz, $20,000; Polakoff & Nemerov, $28,500; Harry Bijur, $17,079; Garey & Garev. $11,886; Milton I. Mulvy $6,000; Maurice Rose, $7,000; Bernard Reis & Co., $30,000. Amounts are to be paid out of the overpayments made by J. Robert Rubin, Nicholas M. Schenck, Arthur M. Loew, Louis B. Mayer, and the Estate of Irving Thalberg. Second Chain Tax Measure In Wisconsin Legislature Madison, Wis. — The second chain theater measure has been introduced in the state legislature here in the form of the Mace bill. Like its predecessor, the occupational tax ranges from $5 to $100 per unit, depending upon the size of the circuit, but the seat tax assessed is from two to 30 cents per seat instead of one to 15 cents in the other bill. Sam Peckner Dead San Francisco — Sam Peckner, 56, manager of the Loew Warfield Theater here, died of a heart attack on the train en route to his home here from a business meeting in Southern California. Curious About Mae Washington Bur., THE FILM DAILY Washington — 'Hilarious sidelight of yesterday's Neely bill hearing was repeated questioning by Senators Barkley and Smith on Mae West. Senator Barkley asked C. C. Pettijohn, "Why has Mae's popularity declined?" The MPPDA general counsel replied, amid laughter, that it was probably due to everchanging public opinion. Seats were at a premium with femmes packing the hearing room. and the Senate to vote on the bill. Pettijohn objected to this move, stating that the opponents of the bill had been refused a hearing when it was reported last year and in 1936, when hearings were held only one member of the committee was present. Pettijohn said he did not consider this a fair hearing. Lengthy debate ensued and Chairman Smith admitted that in spite of his vote for the bill in 1938, he had never read the report of the hearings and said, "this is the first time I have had an opportunity to have the issues brought before me." Barkley Cites Changes Majority Leader Barkley pointed out that there have been changes in the membership of both the Committee and the Senate since the bill was passed in the upper House and stated that both sides should be heard again for this reason and to present new developments. In reply to a statement of Atkinson that it was up to the opponents to show some change since the Senate passed the bill, Barkley declared that the hearing was not a trial. "All we are after is the facts," he said. Following Pettijohn, Montgomery spoke on paragraph seven of the bill. Under this paragraph 12 months are given to the industry to readjust its entire structure, he said. "I should like to point out that the methods of production and distribution, which are attacked by this bill, while admittedly not perfect, are the result of 30 years' experience and effort. The sponsors of this bill ask the Congress to destroy the entire business structure of one of the largest industries of the United States without offering any alternative plan except one which has failed everytime it has been tried" he declared. It is the basic right of American communities to determine what kind of entertainment will be shown in neighborhood movies, Atkinson told the sub-committee. He declared the Neely bill would "liberate local communities," our objective is "community freedom in the selection of film" he said. Gains In South America Questioned as to what the film industry is doing in the way of building up the South American market, Pettijohn said that the industry "has gained much more in South America than we lost in Germany and Italy." Pettijohn told the sub-committee that he would be glad to bring in a witness who could give all the facts on the South American promotional campaign but declared the witness should be heard behind closed doors as the State Department would not want certain information made public. "I would be the last one to do anything to retard the development of the motion picture industry" Chairman Smith declared as he adjourned the hearing. "I want to know whether this bill will help the industry and the public." LOBBY CHARGE "LOOSE TALK" ch> "Sheer Nonsense," Petti 'joZn Tells Senate Group Washington Biaeau. of THE FILM DAILY Washington — Taking cognizance of charges that there exists a "large and powerful motion picture lobby in Washington," Charles C. Pettijohn, MPPDA general counsel, told the Senate Interstate Commerce sub-committee considering the Neely bill yesterday: "This Committee has a right to know about that. Our representation here in Washington consists of Burt New, who is assisted at times by Mr. James Fitzgerald, formerly secretary of the Washington Film Board of Trade. Now, add my humble self and you have our entire staff. "I am willing, gentlemen, to make that statement under oath. Heaven knows there are plenty of applications from people who would 'save the picture business,' in Washington and elsewhere, but all this loose talk about a 'large and powerful motion picture lobby in Washington' is sheer nonsense. "Any loose statements to the contrary, I have sent no propaganda or communications of any kind to any member of the Senate or to any member of this Committee. I would like to see a Federal law passed making it a misdemeanor, if not a felony, for anybody to request any Senator or Representative to be for or against any measure pending in the United States Congress if that person had not at least read the bill!" A F of A Council Nominees At a meeting of the A F of A nominating committee yesterday at the Edison Hotel eight candidates were selected to be voted on at the annual meeting as replacements on the Council. Rudy Vallee, Sally Rand, Jed Dooley and Walter J Digges were renominated, and Joseph Smith, Avis Andrews, Lou Taylor and Adye Alyn were nominate* for the four year terms as members of the Council. S. S. Wetmore Dead at 81 Halifax, N. S.— Stewart S. Wetmore, 81, dean of theater decorators in the maritime provinces, is dead 35 Pix In Worh West Coast Bur., THE FILM DAILY Hollywood — Thirty-five pictures are in production with Paramount heading the list with seven, followed by Warners with six; 20th Century-Fox, five; Universal, four; Columbia, three; M-CM, RKO and Republic, two each. Selznick, Coldwyn, Small and Darmour are making one each. *