Boxoffice (Apr-Jun 1939)

Mexican Labor's New Terms Sau Teeth Are Out Grave Worry to U.S. Firms Of France's Bill Mexico City — Faced, with stringent revision of the present labor contract by the National Federation of Motion Picture Employes, American distributors are banding together in a determined stand to stave off virtual elimination of profits for most of the companies. The present contract expires in August and indications are new terms will increase the overhead by as much as 50 per cent, in addition to placing a prohibitive liability on business in the way of indemnities. It is claimed the contract will be impossible to accept since control of the employes will be taken over by the Syndicate which will be in a position to run things. Pessimism prevails among the distributors here as they contemplate the strong pro-labor complexion of the government. Little help can be expected from that quarter because the Confederation of National Workers plays a very prominent part in determining the country’s labor policy. Lurking in the background as a further threat to the normal activities of the distributors is the possibility of a restriction against film imports. National producers have been squawking about the lack of playing time available but, it is generally agreed, it is more the fault of the calibre of the native product. What the distributors are afraid of is a strike which will automatically close branch offices until a settlement is reached. In the last deadlock in 1935, the companies were forced to pay all Syndicated employes 80 per cent of their back salaries during the strike period. Distributors realize their only hope lies in a firm united stand. Any overt action on part of the labor union will result in the suspension of the shipment of films, it is believed. Whether distributors will act in harmony is another question since unanimity of opinion here among the companies has been conspicuous by its absence. Warner Making an Effort For Foothold in Spain New York — Warner is jumping right into line with the other companies in an effort to gain a foothold in Spain. Rene Huet, supervisor for Spain, and H. Michaud, district manager for France, Italy and Spain, are waiting for visas in Paris which will permit them to enter the country and resume business there. Greenblatt to Alliance New York — Arthur Greenblatt, until recently GB eastern district manager, now is assistant to Budd Rogers, vice-president and general manager for Alliance Films, the American company for B. I. P„ John Maxwell’s company in England. Form Vedis Films, Inc. New York — Barend Broakman has formed the Vedis Films, Inc., for the importation of French and English pictures. Bernard J. Gottlieb is general manager. Mexican Developments Worry Majors New York — Foreign managers here are frankly perturbed over the latest developments in Mexico. Opinions varied, but all agreed there would be little profit in remaining there. One manager believes if the present terms are adopted at least four of the companies would have to withdraw. It is estimated the Mexican market is worth approximately $1,500,000 to the majors. South Wales's Quota Won't Stop 20th-Fox New York — Twentieth Century-Fox does not contemplate limiting its exports to Australia because of the 25 per cent rejection clause enacted by the New South Wales legislature, says Clarence V. Hake, managing director for that territory. Hake is inclined to minimize the dour predictions made when cancellation privileges were hiked 12 V2 per cent. As yet, he observes, it has little effect on sales and the government protects independent exhibitors by curbing the tendencies of the big circuits to overbuy. Hake looks for increased national production as a result of the legislation which provides for the government guarantee of bank overdrafts made by producers. He thinks, however, the government will not rush into it, but will proceed cautiously. Economic conditions in Australia are good at the present, says Hake, and accordingly theatre grosses are on the upswing. This is his first trip here since he assumed the Australian post a little over a year ago. He formerly was assistant to Walter J. Hutchinson, in charge of Japan. He plans to remain another two weeks. 20th-Fox Head in Japan Arrives on Coast April 30 New York — Arthur G. Doyle, 20th Century-Fox’s managing director for Japan, sails Friday from Yokohoma for the United States on the Coolidge. Doyle arrives in Los Angeles, April 30, and proceeds to New York. In view of pending restrictive legislation, Doyle’s visit is expected to throw some light on the Japanese situation. " Golden Boy" Lead New York — Columbia has signed 21year-old William Holden, a newcomer to the screen, for the name role in “Golden Boy.” He is a discovery of Rouben Mamoulian, director in charge of the picture. Holden’s brief stage career was with the Pasadena Community Playhouse. New York — Foreign executives here agree the teeth has been lifted from the French cinematograph bill as the revised form made its appearance in the Chamber of Deputies. Eliminated is Article 53 which states the length of films shown in each theatre cannot exceed 3,200 meters (10,500 feet), excluding documentary films, newsreels and animated cartoons. This was the provision in the bill, as originally proposed, to cut film programs in France to one feature bill by limiting the program's meter length. Still remaining is Article 21 which provides for a tax on post-synchronized films. Also, the proviso for regulating imports by decree subject to international agreements. Argentine Gross Taxes Increased 5 Per Cent New York — Distributors in Argentine are paying an additional five per cent tax on grosses shipped from that country, as a result of the government’s ruling, effective February 16, that the producer’s share is profit. In 1934, the government imposed a tax upon the revenue derived from film operations which was shipped out of the country. The tax was contested and is now in the courts. Until now the tax department was willing to compromise and ruled that 50 per cent of the producer’s share was profit. This year the government has insisted upon applying the tax rate against the producer’s share 100 per cent on the theory the whole amount is royalty from which no costs can properly be deducted. The majors have brought the matter to court. Hopes are expressed that the higher courts will upset the ruling, or, at least, permit the companies to charge against the producer’s share an allocation of the negative costs. No Canadian Expansion Plans, Says Hanson New York — No theatre expansion is planned in Canada, Oscar Hanson, head of the Hanson circuit, told Boxoffice while in town for a general business visit and to welcome back Paul Nathanson, son of N. L., from a 42-day cruise on the Nieuw Amsterdam. Hanson said he would like to drop a couple of theatres, but there are no plans to buying any. As head of Empire Films, Hanson has not yet set annual convention dates. He said this would be done as soon as the companies whose product he distributes are set. There will be no GB product next season, Hanson states, because the company is not producing any more. A deal with 20th-Fox a year ago provides for the major company renting the Gainsborough studio in England where eight to 10 are scheduled next season by Robert T. Kane. 30-D BOXOFFICE :: April 8, 1939