Boxoffice (Jan-Mar 1939)

Japan Formulating Control Measure New York — American distributxjrs in Japan are viewing with considerable consternation the bill for the control of the industry which the government is whipping into shape for presentation to the Diet in April, reports A. A. Lowe, formerly general manager for United Artists in that territory. Lowe is here on a brief vacation awaiting the return of UA’s foreign chief, Arthur W. Kelly, to receive a new assignment. Although there is no way of telling how drastic the new statute wUl be, Lowe admits it may follow the Italian decree which was responsible for kicking the major companies out, much against their will. He says the Japanese are watching the Italian situation with a great deal of interest. According to Lowe, there is no doubt that the united stand of the majors created a strong impression in Japan, however. Borrow the Rentals Currently, the major companies in Japan are distributing approximately 200 pictures under the agreement which lifted the ban on November 1, Lowe says. But, he adds, no provisions have been made for taking the film rentals which will accrue during 1939 out of the country. Clarification of the deal concluded is made by Lowe. The three million yen (approximately $750, OOO") now on deposit in the Yokohama Special Bank of San Francisco is the money deposited there by eight major companies. Starting in October, according to Lowe, the companies made four monthly deposits of 750,000 yen. That money, he points out, represents an estimated total of the revenue which the companies should have received during 1938 and can be redeemed three years hence. What the companies did was to lend the government that sum without interest, Lowe states. He says Japan is now being governed by a Fascist regime. In this connection, Lowe says the reason it does not pay to be t(X) pessimistic concerning the future there is that the aimy is in the saddle and the army has always been favorably inclined toward American films. Military clips in newsreels and shorts are watched with keen interest, he says. Felt Film Shortage Despite the fact that the Japanese produce a little more than 500 pictures a year, Lowe informs exhibitors felt the shortage of American films when the ban was in effect. Japanese films increased in total, apparently, but not in quality. But to complain, he reveals, would have labeled the exhibitor “unpatriotic” which would not have been so healthy. Lowe feels one of the more encouraging signs is that distributors learned the need to operate in unison if they want to continue in business in that country. “Adversity banded us together,” Lowe maintains. Spanish Fascist Press Attacks the Industry New York — The American industry in general, and Clark Gable, Norma Shearer and Samuel Goldwyn, specifically, have become the objects of bitter attacks in the press of Insurgent Spain, according to the Spanish Information Bureau. Under the title “Jewish Poison” and the subtitle “Two Undesirables: Clark Gable and Norma Shearer,” the Rebel newspaper Diario de Burgos published an article upholding the recent measures taken by Italy against American films “to preserve themselves from poison.” Italy’s example should be followed by the rest of the world, the newspaper is said to have declared. Special object of the insurgents’ wrath was the filming of “Idiot’s Delight,” which the newspaper described as a “Jewish play . . . showing Italy during the time when sanctions were applied by several countries with such unjust severity.” Goldwyn is blacklisted for allegedly producing an anti-Nazi film, “The Emigrants.” Miss Shearer and Gable are said to be described as “two undesirables who should not be allowed in Italy, Germany, Spain, Japan, nor in any of those countries who are today marching on the road to magnificent public national health.” Jack Cohen Eastern Manager for NSS New York — Jack Cohen, metropolitan sales manager for National Screen, has been promoted to eastern division manager, a newly created post. His territory includes metropolitan New York, Boston, New Haven, Philadelphia, Washington, Albany, Buffalo, Cleveland and Pittsburgh. Two Franchise Deals Are Made by Trailer-Made New York — Trailer-Made has completed 10-year franchise deals with Leroy D. Kendis of Exhibitors’ Poster Service, Cleveland, and Dave Rosenfeld of Exhibitors’ Poster Exchange, Pittsburgh. Both men are members of National Poster Service Ass’n, which several years ago had a deal on with the trailer company for all of its members to handle Trailer-Made. Ed Mantell and Mark Block, who owned Trailer-Made at the time, dropped the negotiations and the company subsequently went into bankruptcy. Trailer-Made in One Fox Chain; Others Talk NSS New York — Trailer-Made has signed up 19 theatres in the Fox Wisconsin Amusement Co., subsidiary of National 'Theatres. Deals are on for renewal of trailer service with National Screen for the balance of the circuits. While here, Charles Skouras, operating head of FWC, conferred with George Dembow, vice-president of National Screen, on a new pact. Dembow leaves in about two weeks for a tour of all National Screen offices. He expects to be gone five weeks. New Memorandum In Equity Suit New York— Taking the position that a recent brief filed by the government in opposition to defendants’ motion for a bill of particidars in the equity suit filed here is “so fundamentally unsound that they should not remain unanswered,” major attorneys have filed a new memorandum with Judge William O. Bondy. Bulk of the memorandum attacks precedents cited by the department of justice as “totally irrelevant to the issue before this court,” saying, in part, “petitioner’s basic premise that a motion for a bUl of particulars will be granted only when the complaint is defective is erroneous.” Defendants’ attorneys likewise take the position the decision in the Sugar Institute case, which is heavily relied upon as a precedent by the government, “is not authority for denying any of the particulars requested in the present case.” They say, also, that “petitioner’s references to the possible availability to defendants of deposition, discovery and interrogatories under the new rules are irrelevant and obscure the issue.” Other points, mostly technical in character, strive to show that the granting of the defendants’ motion for a bill of particulars “is within the sound discretion of the court,” and “should be granted in all respects.” Defendants Insist on Detailed Data Chicago — B&K and Paramount attorneys, it is understood, will insist that independents subpoenaed for depositions in the clearance suit here answer specifically all questions pertaining to “profit-andloss and assets-and-liabilities” in connection with the operation of their properties during the last five years. Defendant attorneys are reported ready to resort to legal means to compel such action, if necessary. Goodman-Harrison Quit Clearance Suit Chicago — In the biggest break thus far, Julius Goodman and Lou Harrison, operating the Goodman-Harrison circuit, withdrew Thursday from the ranks of plaintiffs in the clearance suit here against B&K and majors. The surprise move came a day before the circuit operators and 21 other independents were to be questioned by Master in Chancery Charles A. McDonald in federal court. The Goodman-Harrison action, it is felt here, was taken wholly on the initiative and inclination of the two independent operators. One leader of the plaintiffs said the action would have no deterrent affect on the prosecution of the case to a conclusion. Stern May Withdraw Chicago — Joe Stern, another plaintiff in the clearance suit here, was reliably reported ready to withdraw from the case as deposition-taking started Friday. 32-B BOXOFFICE :: January 14, 1939