Boxoffice barometer (1941)

By LEONARD WEISBERG PPERMOST in the minds of the industry as 1940 opened was the Neely bill and its possible outcome, and the government suit and its outcome. As for the first named, an all-out campaign against the measure, which had already passed the Senate and was due for House consideration, got under way with perhaps more important executive backing than has ever attended a single piece of proposed federal legislation. Cardinal arguments for and against the bill, touched off in the January 13 issue of BOXOFFICE, continued unabated for weeks. The department of justice was prepared to fire all guns in prosecution of the government suit, while in New York Senior Federal Judge John C. Knox appointed Henry Warren Goddard as trial judge to hear the action, scheduled to get under way May 1. See BOXOFFICE for January 20. In the same issue is documented the fact that RKO, after seven years, had emerged from bankruptcy. Federal Judge William O. Bondy signed the formal order approving the transfer of RKO assets to the new company. The transfer included everything, tangible or real in possession of Irving Trust, the trustee. The world premiere of the muchdiscussed "The Grapes of Wrath" precipitated a controversy between Martin Quigley, publisher of "Motion Picture Herald," and Red Kann, editor-in-chief of BOXOFFICE. In a signed article in his publication, Quigley declared: "The entertainment motion picture is no place for social, political and economic argument." He suggested disbelief of the accuracy of the factual basis of the novel and, therefore, of the film. Kann devoted many pages challenging Quigley to disprove the basis for the novel's factual material, quoting six authors who substantiated John Steinbeck's book and government reports, laudatory comment of ranking newspaper critics, photographs taken by "Life" independently of the film, and the highest gross the Rivoli hit in its entire history. See issue of February 3. A comprehensive survey conducted by BOXOFFICE correspondents throughout the country revealed 389 new theatres were added to the nation's total in 1939, including 22 in Canada. Texas led the parade with 32. See February 10 issue. In the first of a series of articles in "Liberty" magazine. Representative Martin Dies charged "From what I saw and learned while in Los Angeles and from a mass of verbal and documentary evidence, I reached the conclusion that at least 42 or 43 prominent members of the Hollywood film colony either were full-fledged members of the Communist Party or active sympathizers and fellow travelers, and that Hollywood contributed large sums of money to the Communist Party." Denials flew thick and fast. Also in February 10 issue. With the outright purchase of 21 independent poster renters by Advertising Accessories, complete unification of the production and distribution of display materials was achieved for the first time in the industry, an announcement by AA declared. February 17 issue. On March 5 Will H. Hays entered his 19th consecutive year as president of the MPPDA. A few days later the Academy of Motion Picture Arts and Sciences voted "Gone With the Wind" the outstanding picture of 1939. Other awards were to David O. Selznick of the Irving G. Thalberg trophy, with "Oscars" to Robert Donat as best male performer for his work in "Goodbye, Mr. Chips," and to Vivien Leigh as best actress for her "Scarlett O'Hara" role in "Wind." Both events reported in March 9 issue. An exclusive article in BOXOFFICE revealed that an all-time high of 58 anti-trust suits were pending against the majors, this exclusive of 26 additional suits that were disposed of since January 1, 1939. The then current crop of suits sought damages totaling $23,904,431, as compared with 36 actions seeking damages of $23,366,081 pending in February, 1939. See issue of March 16. The motion picture division of the bureau of foreign and domestic commerce was authority for a survey which places a grand total of 67,129 theatres throughout the world in 1939, of which 65,006 were wired for sound. The total of 17,003 in this country represented an increase of 752 over 1938's aggregate of 16,251. See March 23 issue. A recapitulation of pre-convention sales announcements showed that the eight majors, plus Monogram and Republic, point to a total of 498 features for the 1940-41 season. The breakdown: Columbia, 48; M-G-M, 52; Monogram, 50; Paramount, 58; Republic, 50; RKO, 52; 20th-Fox, 52; UA, 30; Universal, 58, and Warner, 48. See issue of April 13. Hearings before a House committee on interstate and foreign commerce on the Neely bill got under way May 16 with proponents of the measure the first to testify. Abram F. Myers, Allied general counsel, was the first speaker in favor of the bill. He expressed reluctance to any amendments, pointing out such action would delay enactment and possibly prevent passage. After a 17-day hearing, during which the majority of "Big 8" executives personally appeared before the committee in opposition to the bill, the committee turned the measure over to a subcommittee for redrafting in an effort to reach a compromise which would satisfy the public groups and independent exhibitors with a minimum of disturbance to the industry. See June 8 issue. Despite a last minute in-person, inWashington effort by executives of three of the "Big Five" to forestall action in the government suit, the trial got under way before Federal Judge Henry W. Goddard on June 3 with the most formidable array of legal talent defending the majors that had ever been seen in this district, and both sides resolutely determined for "a fight to the finish." Exactly four and one-quarter days were consumed by attorneys for the department of justice in outlining its case and defense attorneys in outlining what they informed the court would be proof to the contrary. On mid-afternoon of Friday, June 7, just as the government prepared to examine its first witness, the suit was halted. An agreement had been reached among the "Big Five" to settle the suit via consent decree, committees for which were immediately set up for drafting purposes. See issue of June 8. As of mid-June, approximately 40 per cent of the then present foreign (Continued on page 16) 10 BOXOFFICE BAROMETER