Motion Picture Herald (Nov-Dec 1934)

November 17, I 934 MOTION PICTURE HERALD 9 FIRST ISSUE OF TIME'S TWO-REEL NEWS OPENS IN THEATRES DEC 20 First Division To Release Dramatized News re el Fortnightly; Exclusive Contract to One Exhibitor in Each of 3,000 Areas Formal announcement impended this week, at almost any hour, of the entrance into the motion picture industry of the publishing interests of Time, the weekly news magazine, and of Fortune, class monthly, with a "dramatized" newsreel released every two weeks in two reels, to be physically distributed through the new First Division exchange structure of Harry Thomas and the Curtis-Fiske-Ludington combination. Next season, the Time newsreel will be released every week, and eventually, it will be made available twice weekly, according to present plans. Original plans called for a single reel weekly. The group comprising Nicholas S. Ludington, William Fiske III and John Curtis, known to possess able financial backing, purchased a 50 per cent interest in First Division a few weeks ago, and through their friendly relationship with the Time interests they are reliably reported to have suggested First Division to the publishers as an outlet for their reel. 25% in First Division The contract is understood to be agreeable to both parties and counsel. When signatures have been affixed there probably will be disclosed some of the details of an agreement whereby Time acquires an interest in First Division, reputed to be about 25 per cent, with option for the purchase of additional stock. That Time is to produce a dramatic reel has been known for months (Motion Picture Herald, August 25, page 11). It has been generally understood, too, that First Division would distribute, although, at the outset, Henry R. Luce's Time organization is understood to have approached the owners of RKO's Pathe News for outright acquisition of that property, with distribution through RKO. Paramount Publix Corporation and Warner Brothers Pictures both had conversations with the publishers for the reel. Acquisition of the semi-nnonthly news release by First Division is in keeping with the ambitions of the new and young Ludington-Fiske-Curtis group as partners of Harry Thomas to build that structure to a producer of both features and short subjects with a complete branch system extending abroad. From the home office this week came forma! announcement of establishment of a production subsidiary, of which Mr. Ludlngton is president; Henry Hobart, vice-president and producer; Mr. Curtis, vice-president and treasurer; Mr. Fiske, vice-president, and Frank Look, secretary. As to the exact relationship between the production and distribution companies a spokesman at First Division said an announcement will be forthcoming in a few weeks. Headquarters of First Division Productions will be in Hollywood. At the eastern executive RUMOR HANDS HAYS' POST TO E. J. FLYNN Wednesday morning the newspapers reissued their perennial report of a successor to Will Hays. This time the story was that Edward J. Flynn, Democratic leader of the Bronx and patronage dispenser for James Farley in New York, "appeared to be slated to be 'the new movie czar'." Other reports had it that Mr. Flynn was "weighing" an offer of $125,000 a year from RKO. The newspaper story ignored the fact that Mr. Hays has a contract with some three years to run, and that currently there appears to be no internal excitement in his organization. Insiders believed that the "riimor" might be traced to Mr. Flynn's joking ivith New York reporters. It appears that Mr. Flynn's political activities and other interests probably ^fould not permit him to enter motion pictures. However, Radio officials in Hollywood indicated he was traveling westward to "look over" the studio in the interests of Mike Meehan's holdings in Keith Albee Orpheum. Mr. Flynn and Mr. Meehan are quite friendly. The last prior report of "a sii-ccessor to Will Hays" accompanied the stories of the resignation of General Hugh Johnson from the National Recovery Administration in September. In that connection Motion Picture Herald editorially commented on the frequency of such reports u/henever any public figure appeared to be unemployed, and remarked: "Succeeding Mr. Hays is likely to prove a very wearying occupation." — T. R. offices additional space has been taken on the 23d floor of the RKO Building in Radio City. Curtis, Look* and Hobart will fly to Hollywood in a few v^'eeks to take initial steps in establishing studios in Hollywood. Planned immediately are eight features for 1934-35 release, shooting to begin January 1. Mr. Hobart, a pioneer in production and direction, came to the industry from American Telephone and Telegraph and its Western Elctric subsidiary, along about 1918, when he assumed general managership of William Randolph Hearst's International Film Service Corporation, producing Cosmopolitan pictures. Later he became general manager of Cosmopolitan and subsequently went to the Radio studio as an associate producer. Time's first issue of the newsreel will appear in theatres December 20. Three test reels have been used for tryout performances in eastern cities. Time has been conducting physical experi First Division Productions, New Subsidiary, To Make Eight Features for Current Season, With Henry Hobart at Studio ments with the idea for six months. To assure its crystallization the management is prepared at once to enlist the gootlwill and circulation of the weekly magazine, of Fortune, and the popular weekly radio broadcast, "The March of Time." Some §175,000 already has been expended in experimentation. "Time Marches On" is the keynote of the newsreel, re-enacting in dramatic form the causes and results of the news of the day. (Time says it does not believe that beauty contests and baby parades are news.) March of Time, Inc. — corporate and trade title of the product — was chartered at Albany, N. Y., on Tuesday. Cravath, De Gersdorff, Swaine and Wood, New York attorneys, filed the incorporation papers. In the merchandising through First Division, there is under consideration a division of the country into 3,000 areas, in each of which a single exhibitor would be sold an exclusive franchise, aiming to build a later demand by limiting the supply at the start, and to give each exhibitor franchise holder full benefit of a promotional campaign planned through radio, magazines and newspapers. Said a spokesman for Time : "We are willing to gamble with any exhibitor signing a contract for the reel on the possibilities of increased business. If he is not convinced after a trial, he will be at liberty to cancel the contract." Special Sales Force It is expected that a special sales force will be set up. Time will use its own camera staff, and will draw upon the Fox Movietone library, also providing for office and studio space in the Movietone plant in New York. Time will pay Fox Movietone a flat weekly rate for use of all Fox newsreel facilities, including Fox's home office staff, but not including news photography coverage. This arrangement, it is understood, will make up on the Fox ledger the loss of the Hearst newsreel account. Fox and Hearst together are said to have grossed S85,00O weekly in the United States. Heading the Time newsreel organization will be Roy E. Larsen, one of the originators of the idea, who is vice-president and in charge of promotion of Time, Inc. Mr. Larsen's job also includes the magazine's radio broadcasts. Associated with him will be John S. Martin, managing editor of Time, and Louis de Rochemont. formerly of Fox Movietonews. In charge of promoting the idea will be Time's Daniel Longwell, formerly of Doubleday, Doran. book publishers. Richard de Rochemont, brother of Louis, was assigned this week to complete charge in Europe. He, too, was with Fox Alovietonews, for four years editing foreign versions of Fox reels. Air. de Rochemont will sail soon to organize a European camera staff' and arrange for foreign versions. Taken from the editorial staff of T'l';;;* magazine and transferred to the motion picture venture are : Dwight Cooke, Tom Orchard and \\'oodruft" Wallner. From the short subject department of Fox Movietonews Time has drawn Charles Alorrison, Louise Logue. Morris Roizman, John Dullaghan and Joseph Trimarico. Air. Trimarico has been the Movietonews librarian. "All Alovietonews personnel acquisitions were made in full agreement widi Truman Talley. head of the newsreel," said a spokesman for Time.