Boxoffice (Apr-Jun 1939)

Eleven UA Exclusive Producers; Silverstone Answers Goldwyn New York — At least 11 producers will supply product exclusively for United Artists for 1939-40. Their minimum output for the new season will be 26 pictures, although more undoubtedly will be added. Production plans, clarification of UA’s position in respect to the latest trade practice proposals, “an answer to Samuel Goldwyn” and details of a “very big” convention were the basis of a joint interview with Murray Silverstone, general manager of world-wide operations, and Charles Schwartz of Schwartz & Frohlich, UA counsel. Further amplifying the distribution deal with Ernst Lubitsch and Sol Lesser, Silverstone said Lubitsch is forming his own company aside from his association with Lesser, and will deliver to UA three pictures every two years under a long term contract, which becomes operative January 1, 1940. Lubitsch has two pictures to complete under an M-G-M deal before starting under the UA banner. One From Lesser Lesser, producing as an independent entity, plans one picture a year “on a comparable merit” with other UA producers, Silverstone declared. His also is a longterm deal and it does not call for the services of Bobby Breen, with whom the producer has been associated for the past few seasons. These pictures will continue to be released by RKO. David Loew’s long-term deal calls for “one to two pictures a year,” Silverstone added. Loew will utilize the SelznickInternational studios for production, the first of which will feature a “star of world reknown.” The company lists, officially, the following exclusive producers: Charles Chaplin, Douglas Fairbanks, Samuel Goldwyn, Alexander Korda, Sol Lesser, David Loew, Ernst Lubitsch, Hal Roach, David Selznick, Edward Small and Walter Wanger. Mary Pickford will not contribute to the new season, Silverstone said. In respect to the Selznick-International contract, he described this as a “continuing contract,” as distinguished from a long-term agreement. The pact permits the setting up of new distribution terms and conditions with each new season. Will Aid Arbitration Pursuant to handing out prepared statements which explained UA’s position in respect to the trade practice proposals, Silverstone emphasized that although the company could not actively participate in fulfillment of the pact’s concessions the factor of “arbitration will receive every constructive aid” from UA. Silverstone takes the position that the proposed 20 per cent cancellation clause in the trade agreement is alone a factor that prohibits the company to participate. He went on to explain that with 11 producers, some of whom make as few as one picture annually, it would be impossible to adhere to this provision of the pact. As to other proposed concessions, Silverstone holds UA has, as a matter of policy, practiced most See No RKO Revamp Until October 1 New York — Despite Federal Judge William O. Bondy’s confirmation of the RKO plan of reorganization and the board early this week, insiders foresee no consummation of the reorganization until October 1 at the earliest, or January 1 at the latest. Varied objections by attorneys who are appealing and the attitude of Atlas, proponents of the plan, are expected to hold back the consummation. Attorney factors include John Stover, attorney for Ernest W. Stirn of Milwaukee who has consistently fought reorganization as now set up; Nathan Rosenberg, who represents H. Cassel and Co., Wall Street brokers, and Florence Sullivan, representing the James Young claim. Also pending is the Fabian claim. Unconfirmed reports circulating through (he court building assert the government has been approached, or will be approached, by an unidentified attorney protesting confirmation, this perhaps leading to an investigation or another delay. This presumably ties in with the presence of Atlas representatives on the boards of both Paramount and RKO. If the government frowns on any such interlocking of financial interests, the speculation is whether or not Atlas may not be requested to confine its interest in one or the other company. This, in turn, leads to persistent reports Floyd B. Odium is considering the sale of the Atlas holdings in one company. While any purchaser is not definitely known to be interested, there may be additional significance in rumors John Hay Whitney has been sounded out, but thus far reputedly fails to accept certain conditions insisted upon by Atlas. Should Atlas determine, or find it advisable, to sell its heavy holdings in RKO, the step might have a bearing on that company’s reorganization. of these since the inception of the company. He also touched upon the uncertainty that surrounds Alexander Korda’s position as a distributor as it might be interpreted in the clause that deals with productions that come from a domestic company with foreign producing subsidiaries. Whether UA is a party to the trade pact, is, in the final analysis only as important as the company’s attitude toward its customers, Silverstone said, and in this respect UA “will not hesitate to arbitrate any problem with any exhibitor.” Silverstone, in getting around to the suit brought by Goldwyn, said he had hoped the case “would not be tried in the trade papers.” However, in light of statements purported to have been made by a Gold wyn representative, he felt constrained to make a statement himself. Silverstone was referring to remarks made by James Roosevelt, Goldwyn vice-president, who sailed for London on the Queen Mary, Friday. Before he left, Roosevelt left the impression Goldwyn had opened discussions with other distributors in anticipation of “contingencies” resulting from final adjudication of the suit. Roosevelt told Boxoffice: “We don’t want to be left at the post. We must think of those contingencies and be prepared.” The Goldwyn vice-president also declared there was some uncertainty over the number of pictures to be delivered to UA on the 1938-39 schedule. The only definite Goldwyn commitment to date is, of course, “Wuthering Heights.” Otherwise, meaning “Angels Making Music” and “The Real Glory.” These are to be delivered “if, as and when,” depending on the outcome of the court action, Roosevelt declared. He said his trip abroad was purely “business,” adding he might squeeze in visits to Paris and Brussels, where he has “many friends.” He is due to return on the Norynandie, which sails from Villefranche, April 25. While in London, Roosevelt said he expected to talk to Korda. But he denied this would have anything to do with Korda’s designation in the Goldwyn suit, which is based on Goldwyn’s contention the English partnerproducer had received special benefits that violated his contract with UA. “No Settlement Attempt” Silverstone also denied he had made any attempt to “settle” the Goldwyn suit while on the coast. He said he did not meet Goldwyn while in Hollywood. In fact, Silverstone emphasized he did not want, personally, to discuss the action, and left it to Schwartz to make all official comments. Schwartz, who will defend UA in the action, along with O’Brien, Driscoll & Raftery, was also revealed as being personal attorney for Lubitsch, Lesser, Chaplin, Korda and Loew. He gave out the following prepared statement : “Our attention has been called to an article published in the trade papers in which a spokesman for Goldwyn is alleged to have stated that he has planned to withdraw from our company definitely and that he ‘would not be left at the post’ as to future distribution, this spokesman indicating that Goldwyn was already paving the way for releasing deals if and when he parts company with United Artists. “Since the failure of Mr. Goldwyn’s attempt to secure voting control by having himself designated as sole voting trustee under a voting trust, demanded by him, he has been sulking.” “Has Fulfilled Contract” “Mr. Goldwyn and his company entered into a contract with UA for the exclusive distribution of all his pictures, which contract does not expire until Sept. 2, 1945. This company has lived up to the spirit and letter of the contract and expects Mr. Goldwyn to do likewise for the full balance of its term. “Any attempt on the part of Mr. Goldwyn to arrange for the distribution of his future pictures, in violation of his con ( Continued on page 22) 18 BOXOFFICE :: April 8, 1939