Motion Picture Daily (Jan-Mar 1934)

Tuesday, January 2, 1934 MOTION. PICTURE DAILY Code Emerged as the Major Event (Continued from page 8) Aug. 3. — Sol A. Rosenblatt calls parley on code. Asks film leaders to meet in New York and calls for a single draft. M.P.T. OA. to cooperate on code, says Ed Kuykendall. Aug. 4. — Trade groups center moves on one code and take up choice of men to meet Rosenblatt. Laboratories' code ends film finance. M.P.T.O.A. and M.P.P.D.A. codes nearly set. Aug. 5. — Independents, majors settle most of code; disagree only on dual billing opposition. Skouras joins Loew, Warner, Paramount and RKO in adopting NRA code for the circuit. Aug. 7. — Single code for hearing is NRA plan; M.P.P.D.A. draft believed intended as basis. Aug. 8— NRA to seek end of West Coast strike; arbitration within scope of new labor board. Carl Laemmle says code must protect all. Independents outside code, states Abram F. Myers on eve of New York conference called by Rosenblatt. Look for 50 leaders at talk with Rosenblatt. Aug. 9. — Code by next week is demanded by Rosenblatt; S. R. Kent, C. L. O'Reillv chosen to coordinate all present drafts. Square deal is pledged to all via code, Rosenblatt states at New York meet. Aug. 10. — Conferees agree on 12 code terms. Studio strike to go before Federal board. Aug. 11. — Three code coordinating units speed agreements; open buying, clearance terms settled for exhibition. Code drafts reach joint conferences, headed by Kent and O'Reilly. Aug. 12. — Production code ready today. 6tates S. R. Kent; exhibitor and distributor groups hold joint session at Bar Ass'n. Bldg. Aug. 14. — Complete codes by Tuesday night, goal set by S. R. Kent; few clauses to be left for Washington O. K. is prediction. Formal draft of production code is begun by drafting committee. Aug. 15. — Distribution-exhibition code coordination begun; former is finished while latter still has sections in dispute. Irving Thalberg stays at M-G-M; to head his own unit on elastic schedule. Aug. 16. — Completion of code not expected until Aug. 17 as coordination problems force conferees to night session. Aug. 17. — Industry code by tonight is aim of Charles L. O'Reilly; theatre draft drawn; still coordinating. Aug. 18. — Patience gone, code by tonight is ultimatum; unfinished business goes to Washington, coordinators say. Aug. 19. — Deadline set back, up at noon; code "90" per cent agreed. "In principle" clauses adopted; week end for drafting text. Aug. 21. — Code nears completion; at odds on big issues. Exhibition committee disbands; drafting continues over week-end; controversial points end at an impasse. Independents to fight dual bans in code. Aug. 22. — NRA demands code draft by midnight; frame clauses at late session in New York to comply with Deputy Administrator Rosenblatt's order. Fight looms on anti-raid code proviso. Universal. Warners and Columbia understood opposed, while Paramount and M-G-M seen for it. Aug. 23. — Code incomplete; goes to Rosenblatt this morning. Administrator to get two drafts joined by one preamble. Writers form one code for NRA hearings. RKO to keep "O": Orpheum revival seen. Aug. 24. — Two codes go to NRA; coordination planned. Producers and distributors deliver one, theatres form one of their own. Sept. 12 set as public hearing date. Laboratories' code is filed with NRA. Sets $15 as minimum salary and 40 hours maximum working hours. Studio strike is ended by NRA Labor Board. Turisdictional right between LA T S.E. and I.B.E.W. left to A. F. of L. Aug. 25. — Open market buys are major code aim. C. L. O'Reilly for it in the theatre code. Ed Kuykendall seeking unity for M.P.T.O.A.-Allied. This is purpose of meeting called by the M.P.T.O.A. president in Chicago Rosenblatt may seek to merge codes as he starts studying clauses in both drafts. Distributors for right of selectivity as fight is expected over "right to buy" in exhibition code. Chicago ban on combines starts fight; Aaron Saperstein asks Federal probe. Aug. 26. — Hearings on code in Washington may cover three or four days; big turnout expected on Sept. 12. Chicago meeting proves a phantom; there wasn't any. Allied and M.P.T.O.A. fail to meet on unity on code. Better times with a code, seen by Will H. Hays. Aug. 28. — NRA holding key to issue on combines exhibitor buying. Aug. 29. — Coordination of two code drafts under way by Sol. A. Rosenblatt. Milton Feld and David Chatkin form Monarch Theatres. Aug. 30. — Major circuits prepare to increase admission; RKO and Warners set. Aug. 31. — Two new unions to buck Local 306; invasion on heels of operator local's absorption of Empire State union in N. Y. September Sept. 1. — Educational resumes production after three-months' shutdown, ending rumors studio would not reopen. Sept. 2. — Final laboratories' code results in 15 per cent increase in employment and 1 2 per cent increase in wages. Sept. 5.— M.P.T.O.A.. I.T.O.A. and Allied States plan individual meetings in Washington Sept 10 to consider tentative code draft. Sept. 6. — Independent exhibitors express fear thev will not be properly represented in code hearings. Hollywood labor strike nears end. Sept. 7. — Nazis reported seekine theatres here as outlets for propaganda. Sept. 8. — Paramount Publix paid bonuses of $2,250,000 to five ranking executives during 1929. Ralph A. Kohn. former treasurer, testifies at bankruptcy hearing. Sept. 9. — Industry descends on Washington for public hearings on code, opening Sept. 12. Deputy Administrator Rosenblatt deluged with petitions for hearings. Sept. 11. — Allied attempts last-minute organizing of independent exhibitors on code. Sept. 12. — Hearings on code open in Washington with struggle for individual rights anticipated from inter-industry representatives. M.P.T.O.A. directors arrive at agreement on code draft. List of speakers for hearings reaches 208. Dr. Tulius Klein, former Assistant Secretary of Commerce in the Hoover cabinet, shapes plans for reorganization of Paramount Publix. Sept. 13. — No "open shop" to prevail under code, first day of public hearings reveals. All groups have spokesmen championing their views. I.A.T.S.E. asks operator for every projection machine. Chorus Equity describes chorus girls' 86-hour weeks at $25 in presentation houses. Frank Gillmore, Actors' Equity president, calls Academy "company union." Sept. 14. — Code labor committees adjourn for "closed door" discussions. M.P.T.O.A. outlines 12 major points sought in code. Allied stresses inclusion in code of "right to buy" clause. A. F. of L. approves double features. Independent exhibitor charges at hearings master sales contracts stifle independents. Code Authority membership up for discussion before Deputy Rosenblatt. Paramount expected to retain large national circuit of 500 to 600 houses. Sept. 15. — Industry accord on code predicted as public hearings end. Sidney R. Kent asks "safeguards" for large companies who will bear "brunt" of code cost. Deputy Rosenblatt in dark over definitions of "right to buy," asks details. Universal and Columbia take stand with independents in favor of double feature freedom. Sept. 16. — Code labor negotiations strike snag as labor representatives remain adamant on demands; Deputy Rosenblatt seeks solution. Reports indicate 44-hour week for theatre labor. Southeastern exhibitors to seek lower wage scales than code standard. Kent predicts shortened hours will cost studios $2,700,000 to $3,000,000 annually. Sept. 18. — Leaders adjourn code sessions unexpectedly to return to New York avowedly to obtain approval of directors and stockholders for concessions called for in code. Motion Picture Daily learns new. drastic instructions on code content from high Administration authority caused adjournment. Code expected to include standard license agreement. Sept. 19.— Code will ban forcing film contracts by distributors through threats. Exhibition section of code making rapid advances. Deputy Rosenblatt confers at White House, but denies mission concerned film code. M.P.P.D.A. members reconvene. Sept. 20. — Motion Picture Daily learns exclusively Administration's code plans for including measures to curb high salaries of both stars and executives caused Washington adjournment and came as complete surprise to industry leaders. Deputy Rosenblatt indicates parts of code may be made retroactive. Sept. 21. — Motion Picture Daily learns exclusively major companies may ask government to guarantee costs in event independent factions' demands are met. Motion Picture Daily exclusively reveals reports White House is directly interested in new provisions for inclusion in code. Sept. 22. — Precedent for government safeguard against overburdening industry with code costs viewed as having been established in oil industry and retail codes. Industry leaders begin return to Washington. Sept. 23. — Code confabs resume in Washington with right to buy, double featuring, block booking and score charges scheduled for immediate discussion. Sime Silverman, publisher of Variety, dies at Los Angeles. Sept. 25. — Motion Picture Daily reveals scope of powers for local boards under industry code. Washington confabs in high gear with double featuring, a major issue, designed to remain as is. Sept. 26. — Deputy Rosenblatt seen prepared to complete writing of code himself as second conferences near close. Distributors favor complete power for local clearance and zoning boards. Theatres ask for 44-hour week for operators. Exhibitors claim increased labor costs will aggregate $9,000,000 annually and puzzle over where money is coming from. "Right to buy" arguments get tangled. Sept. 27. — Reports current in Washington that Deputy Rosenblatt may insist on right to buy and salary cut provisions in code, unverified. Overseating may be regulated under code, report. Spokesmen for Academy ask guarantee in code on open market bidding for stars' services. Exhibition, labor leaders get "hot" in code labor discussions. Sept. 28. — First completed code draft to be ready Oct. 2. Washington hears. New independent exhibitor organization sought by Washington conferees regarded as "dead." Salary cuts of Paramount executives during 1932 revealed by Ralph A. Kohn. Sept. 29. — Deputy Rosenblatt denies code contemplates star salary cut provisions; describes reports as "ridiculous." Sept. 30. — Distributors take stand "right to sell" to whom they please is theirs, answering "right to buy" arguments. October Oct. 2 — Code talks delay new contract form. Revision considered certain. Oct. 3. — Production in the east zooming to a new high, Motion Picture Daily survey indicates. Revival move marked by greatest effort in four years. Oct. 4. — Cutting down of "nuisance" taxes planned at next session of Congress. Code reported complete and Code Authority set. Code attempts likened to delay in drawing up oil industry compact. NRA rejects supply code. Oct 5. — Right to buy, scores, duals out of code. No reference to big points, including_ block booking, stuns exhibitors. Code Authority vested with unlimited powers. Commission to fix star salaries expected. Oct. 6. — Split develops in code parley, with independents opposing majors. Oct. 7. — Balance of power shifted on zone board membership. Oct. 9. — White House reported insisting on $2,000-a-week maximum salary. Oct% 10. — Salary-fixing believed shunted into siding as legal snags loom. Prediction made_ actors will stage walkout if any effort is made to set limits earning power. Fight on Paramount receivership ends. Oct. 11. — Salary-fixing idea dropped from code, declared to be "85 per cent O.K." Agents restricted. Allied's anti-code fight by wire irks Rosenblatt. 1 2-— Harold B. Franklin quits as RKO theatre head. Oct. 13. — Split within Hays ranks on three code issues: duals, shorts tie-in, salary control, averted when argument is sidetracked. Salary control threat worrying majors. Coast talent bitter over Clauses 9 and 10 in code. Talk heard of "passive resistance" to obtain desired ends. Code Authority reduced to 10 film men and three government. Oct. 14. — Penalties up to $10,000 are proposed to check payment of huge salaries. Administrator Johnson hits high salaries, calling them "grotesque." Talk of talent strike discounted by Academy as "extreme." Paramount Detroit houses go to George Trendle as a manager. Oct. 16. — No legal bar to fines for producers is seen by Rosenblatt. Fear supercombination, independents reveal in code analysis, claiming abuses are not corrected. Oct. 17. — Pending code points prove troublesome, with many chatjges coming, according to Rosenblatt. Oct. 18.— Code on last stretch, with third draft looking like final one. Agency control shifted and many points clarified. Oct. 19. — J. R. McDonough named to posts in RKO subsidiaries left open by H. B. Franklin's resignation. Oct. 20. — Code delayed for more conferences with dissatisfied independents. Oct. 21. — Plans for reorganizing Paramount coming soon. Oct. 23. — J. R. McDonough's powers at RKO increased, with major film problems now going to him. Oct. 24. — Charge made to government that wired protests to code were faked. Justice department studying. Oct. 25. — Consumers' Advisory Board passes code. Rosenblatt set to submit pact to government. Independents decide at Allied meeting in Chicago to take code dispute to President. Sale of Loew stock set for Nov. 27. Stock comprises 600,900 shares of former Fox holdings in company. Oct. 26. — President's pen reported poised over code. Oct. 27. — Hundred per cent budget boost approved by Monogram franchise holders. Oct. 28. — Code signing again delayed, rroposal to levy fines on producers paving big salaries may go. General Johnson gets code for study. Adolph Zukor testifies at creditors' meeting, revealing friction in Paramount. Major L. N. Thompson placed in charge of RKO theatres. N. J. Blumberg named general manager. Oct. 30. — Code benefits to be applied on contracts. Cancellation not to be withheld. Oct. 31.— Rosenblatt hits "selfish theatre men at meeting of Southern Theatre Ownf.rs • "^ss'n in Atlanta. Academy appeals for fair trial for code. November Nov. 1.— Hugh S. Johnson in session with Allied on code objections. Deputy Administrator Rosenblatt attacks "agitators and false prophets" in Atlanta. Nov. 2. — Code delay likely as Hugh S. Johnson turns it over to Col. W. Robert Lea prior to departure for west. Figure $5,000,000 cut in RKO loss, Irving Trust, as receiver, reports to court for eight months ending Aug. 31. Nov. 3.— Publicity believed Federal salary weapon; Trade Commission data may be turned over to stockholders. Mays association signs code, but Ass'n of M P. Producers in Hollywood holds back because of objections on Article V. Nov. 4. — White House awaits code today. Independents expected to accept code as unaffiliated factions appear reconciled to present form. Nov. 6.— Code details to White House early this week; salary penalty clause vexatious. Administrator Johnson clears Deputy Rosenblatt of charges against his handling of the code. Right to buy is in the code, states Charles L. O'Reilly, who so_ interprets Part 2, Section 5, dealing with grievance boards. Loew-Poli deal thought near agreement as court approval awaits three-year management deal. Nov. 8.— Further halt in code as Col. Lea seeks data; lacks conviction over "certain clauses." Nov. 9.— Code may go to President on vacation at Warm Springs Academy's future weighed as Lester Cowan and Major Nathan Levinson resign. Nov .10.— Code shelved until Administrator Johnson returns from western trip Allied fight on code seen breaking up as some units appear reconciled. {Continued on page 12)