20th Century-Fox Dynamo (September 2, 1939)

NEW DYNAMO An Important Message Of Domestic Concern From HERMAN WOBBER - (Continued from Page 1) cope with an emergency- Sound business necessitates a factual analysis of our situation and of remedial measures to be taken. Our distribution structure is such that whatever happens abroad affects us domestically, for revenue is involved, and it is on the basis of antici- pated world-wide revenue that producing budgets are fixed. Let anything drastically affect that expectancy and remedial steps must be taken. Our 1939-40 production schedule will not only be carried out as planned, but in the past several weeks it has been strengthened. That you have ascertained from facts published in New Dynamo. But, that 1939-40 program was originally based on certain anticipated world-wide revenue. Here we know that the need is for more big pictures. That need will be positively filled, as p’cnned. But, the fact still remains that there is grave danger of a considerable curtailment in anticipated revenue. And something must be done! Our Overseas forces are doing the very best they possibly can. We here are making constructive progress. But, we must assume a greater responsibility. We must be more cautious than ever in the sort of deals we negotiate, in the quality of the representation we secure for every item on our release schedule. Exhibitors know what is happening in this world. And we know they will need more big pictures. They will get them from us. There is no doubt about that. And all we ask is that these pictures be given the opportunity to fully demonstrate their earning power and that we obtain our fair share of their earnings at the box office. I know every fair-minded theatre man will agree with our right to such an expectation. We realize that to get maximum returns we must turn out pictures that will bring exhibitors a maximum profit. And that will definitely come about if we work closer together, if our pictures are given the proper days, the proper exploitation and representation. It is imperative that we mutually coordinate our efforts to help pictures earn that maximum Domestic return. There can be no development in the foreign situation with which good, sound, fair business procedure and teamwork between distributor and ex- hibitor will not constructively cope. WAR JEOPARDIZES 60.45% OF OVERSEAS BUSINESS Even If General War Is Averted, With Exchange Down 7% More, It Will Be SomeTime Before Normal Operation May Be Expected, But Foreign Department Is Fighting On The Domestic organization this week took official and active cognizance of the international situation and under the leadership of General Manager of Distribution Herman Wobber, some 1250 employees at the 37 exchanges in the United States and Canada mobilized their forces to cope with whatever emergency may arise. Meanwhile, the Overseas organization, under the leadership of Overseas Sales Director Walter J. Hutchinson, pluckilv and with an ambitious goal set, proceeded this week-end to launch its seventh annual S. R. Kent Drive. Hope still ruled everywhere, but no one was taking anything for granted. That was the situation here as well as abroad. Everybody was prepared for whatever might happen. Corporation officials expressed complete satisfaction with the speed with which the distribution machinery began to function as crisis after crisis developed. Out at the studio Production Chief Darryl F. Zanuck put into operation the second lap of his most ambitious production schedule, which will be carried out as originally planned and strengthened insofar as the Wurtzel vehicles are concerned. Accepting the added responsibility that will definitely be theirs if general war breaks out, the week-end found the Domestic forces making a thorough analysis of the local situation and proceeded to take steps that will in no way jeopardize the company’s great product schedule. All along the line, division, district and branch managers, salesmen and bookers agreed that the erstwhile ambi- tious Drive quota, in view of what is happening, is, as Mr. Wobber points out in his telegraphed statement, a modest one. Thus, Division Managers W. J. Kupper, William Sussman and W. C. Gehring were personally supervising divi- sional efforts to quickly cope with the situation and to hasten their branches to the speedy attainment of a minimum of a weekly Drive quota delivery. They were spending most of their time in the field, assisting in a general speed-up of K-7 selling as a means of quickly maximizing territorial revenue, taking into consideration the losses that will result from any foreign conflict. As the week progressed, more stringent measures were taken by foreign powers, measures that in one way or another affected distribution and revenue abroad. Treasurer Sidney Towell stated this week that, if general war breaks out in Europe, at least 60.45 per cent of the total foreign business of this and other American distributors will be placed in jeopardy. This includes combined percentage of business to departmental total revenue obtained in the British Isles, France, Germany (including Austria and Czechoslovakia) and Poland. There has been a minimum of activity on the part of American distributors in Italy since January first. Even if a peaceful method is conceived to bring about a settlement of the new situation developed in Europe Fri- day, economic reaction is such that it will be a long time before anything bordering on the normal can be reasonably expected in those countries, according to informed observers. HERMAN WOBBER Communication with European managers has been carried on under extreme difficulty due to restrictions placed on trans-Atlantic telephoning and the delay in cable transmission of messages. Government communications are being given the right of way. While leaders abroad reportedly were despairing for a solution with a general war, conditions this week were not made easier for company employees abroad. Many theatres have been closed by authorities’ orders. Jittery Europeans were concerned with war and the steps being taken to avert it, with the result that what theatres were doing business reportedly did very little. Evacuation of communities curtailed business activity in all affected countries. Many branches abroad had additional employees drafted into military service. The London personnel was prepared to move to Wembley, where emergency quarters were set up months ago. This evacuation can be per- formed in a matter of a few hours, British Managing Director F. L. Harley cabled the Home Office this week. Over here, Domestics, in the midst of their most important Kent Drive were not minimizing the situation’s effect and everywhere em- ployees were readied to shoulder the added responsibility. Drive Leader M. A. Levy was analytically touching on the situation from the Domestic viewpoint. Seyeral hundred letters front branches this week indicated employees quickly absorbed the importance of the story dwelling on the situation as published in the last issue of New Dynamo. All cheered the studio announcement that under no circumstances would the product be altered or its program in any way changed, but for the better, by developments abroad. In the Studio Supplement another announcement of importance to the Domestic sales force is published. At the Chicago convention it was announced that this company planned releasing some four productions made at our own British studios by American directors with international casts, and that these four, added to Zanuck’s 24 and Wurtzel’s 24, would make the total K-7 output of features 52. Continued on Page fi