The Exhibitor (Nov 1939-May 1940)

Government Reports Big Drop in Exports Warner Sales Staff Holds Chicago Meeting Policies, Plans Discussed In Windy City Chicago — Sales staff of Warner Brothers Pictures held a mid-season meeting here February 3-4 to discuss forthcoming product and company plans. Heading the list of home office executives was Grad Sears, general sales manager, with S. Charles Einfeld, Carl Leserman, Mort Blumenstock, Roy Haines, Ben Kalmenson, Arthur Schason, Norman Moray, and Mitchell Rawson also in attenddance. Among the district and branch heads there were: Eastern District — Eddie Schnitzer, district chief, with Paul Krumenacker, Albany; Norman J. Ayers, Boston; Charles Rich, Buffalo; Roger Mahan, New Haven; Sam Lefkowitz, New York City. Central District — Robert Smeltzer, district chief, with Bill Mansell, Philadelphia; F. W. Beiersdorf, Washington. Among the exploitation men present was Phil Engel, New York. Educational in Bankruptcy New York City — A voluntary petition in bankruptcy was filed last week in Federal Court by Educational Pictures, Inc., listing liabilities of $577,923 and assets of $352,442. The largest item, $241,675, was secured by a mortgage on the company’s studios at Los Angeles, held by Electrical Research Products, Inc., it was set forth. Lloyd Wright, trustee of Grand National Pictures, was said to have a claim for $200,000 against Educational. Warners Talk with Hughes Hollywood — A deal whereby Warners would release two pictures to be made by Howard Hughes was reported last week. The company recently signed a deal with Frank Capra and Robert Riskin whereby it would release their first independently made production. Lab Sale Complete Hollywood — Pathe Laboratories, Inc., of California last week completed its buy of Cinema Laboratories, Inc. here. First named company is an associate of Pathe Laboratories, Inc. O. Henry Briggs is president, with T. P. Loach and C. Merwin Travis, vice-presidents, and R. E. Young, treasurer. February 7, 1940 Schaefer, Myers Debate The Neely Bill on Coast Screen Writers Guild Voting Stand Hollywood — Coast highlight last week was a debate on the Neely bill between RKO president George J. Schaefer and Allied States Association leader Abram Myers before 200 members of the Screen Writers Guild and other organizations. The Guild is voting by mail on the bill. Myers offered three arguments against the bill (1) altruistically, because there is a clear right or wrong issue, and that fairminded persons with a knowledge of the issue cannot remain neutral, (2) selfishly, because the bill would give more chance for creative work and for screen writing recognition, (3) finally, because it is a bow to the inevitable, part of decentralization in the industry. Schaefer offered four points for consideration: (1) should the industry be hampered by government regulation, (2) should we have government regulation of selling, (3) should we have regulation of it hamper production and check free expression, (4) should we have government regulation which gives the buyer an advantage over the producer and seller. Schaefer said that the proposed act was un-American, while Myers stated that affiliated houses, under the present system, were given selective privileges not available to others. He said a decentralization of theatre districts would result from passage of the Neely bill. He stated that there was no implication of censorship in the Neely bill or any government price fixing. Para Sells 10,098 NEW YORK CITY — Domestic sales contracts for the 1939-40 season have reached an all-time company high of 10,098, Neil Agnew, vice-president in charge of Paramount sales, announced last week. Agnew pointed out that many of these 10,098 contracts cover situations where the product is split between two or more houses under the same management so that actually there are many more theatres served than the number of contracts indicate. At the current rate of selling, Agnew estimates that the total number of Paramount contracts for the season will be approximately 12,350. THE EXHIBITOR Figures for 193 9 Released By Golden Washington — Preliminary statistics of American motion picture film exports for the full twelve months of 1939 show a decrease of 27,600,000 linear feet in positive and negative sound motion picture films to the foreign markets of the world as compared with those exported during 1938, according to compilations announced last week by Nathan D. Golden, Chief of the Motion Picture Division of the Bureau of Foreign and Domestic Commerce, Department of Commerce. This is a decrease of 14.7 percent during 1939. A total of 160,582,315 linear feet of motion picture entertainment films, with a declared value of $3,400,657 were exported during all of 1939 as compared with 188,237,129 linear feet valued at $4,268,818. (Valuation figures should not be confused with film remittances. Valuation is based upon raw stock film costs.) The following table shows a breakdown of the above totals according to percentage change for the years 1939 and 1938 for sound positive and negative films. 1938 Feet Value Negative Sound 8,498,012 $300,351 Positive Sound .. 186,739,117 3,968,467 1939 Percentage Negative Feet Value Change Sound 8,079,437 $339,602 —4.3% Positive Sound 152,502,878 3,061,055 —18.9% Exports of American motion picture positive sound films to the 10 leading markets of the world during 1939 were, according to Golden, in the following order. Brazil replaced the United Kingdom as the largest consumer of American films in point of footage during 1939, importing 14,119,038 linear feet of positive and negative films with a value of $268,065 as compared with 13,078,753 linear feet valued at $255,953 in 1938. Argentina follows closely with 13,588,743 feet of American films with a value of $227,433 for the 12 months of 1939 as compared with 14,307,290 feet valued at $242, 263 during 1938. Mexico, as in 1938, remains in third position among the consumers of American films. During 1939, 8,785,001 linear feet of film valued at $245,252 were exported to this market, as compared with 9,091,383 feet with a declared value of $265,884 during 1938. United Kingdom’s imports of positive and negative motion pictures from the United States during 1939 show more than a 50 percent decrease which reflects itself primarily in positive imports since negative imports show an increase. During 1939, 6,692,205 linear feet of positive film were exported to the United Kingdom with a value of $149,838, as compared with 14,359,042 feet valued at $380, 040 during 1939. Negative film for the year 1939 increased by 500,000 feet, there being shipped 1,923,884 feet of negative film valued $71,108 as compared with 1,407, ( Continued on page 10)