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Friday, November 4, 1938
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DAILY
GN IN FIVE-YEAR BRIT. DISTRIB. DEAL
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Hammons said, until the GN board meets to hear his report next Wednesday or Thursday. Hammons declined to discuss current reports that John Maxwell's company was the British principal involved. Confer vS, he said, were now being dr.xwn for formal execution.
Contract will have a cancellation clause allowing either party to withdraw by giving a one-year notice of intent to do so, it was learned. Weigh British Production
The British company will provide GN with its necessary quota credits through its own productions, with 10 to 12 pix expected to be scheduled for this purpose. At the same time there is a strong possibility that GN will produce several pictures a year in England, using the facilities of the UK affiliate.
Latter productions would be jointly financed, and GN properties as well as players would be made available, Hammons said. The pictures produced by the English company to cover quota needs will be completely financed by the company with no pai-ticipation by GN, he stated.
No decision has been made whether or not GN will distribute any of its affiliate's product in this country, but it is likely that any jointly financed pictures produced there will be distributed here, it was learned.
Hammons stated that there would be no new stock issue by the company at this time. He asserted that financing was all set, and that no English money has been invested in the company. It was learned that Louis Jackson, English financier, had offered $500,000 to Hammons for a partcipatory interest in the company, in return for which he would get distribution rights abroad, but Hammons nixed the deal. However, Hammons revealed that he had made a deal whereby Jackson will distribute 40 reissues of Educational shorts, but everything on the new program will be handled by the GN affiliate in Great Britain.
GN to Ignore Italy
No business will be done by GN in Italy, Hammons said. He stated that further deals for foreign distribution are being negotiated. He asserted that three pictures which he took with him had received a favorable reception, and he thought the company's product lineup would go over in England.
One femme player was signed by Hammons while he was in England,
Wall St. on Pix
Wall Street, casting a weather eye at pix biz, expects that profits for the Winter months will be at least as good and possibly better than a year ago. In financial circles, it is anticipated that Loew's and 20th-Fox will run ahead on last year.
V. S. Distribs. Solving French Problem?
Paris (By Cable) — U. S. distribs. may have found a solution to the troublesome French dubbing problem arising from the fact that licenses to 94 foreign pix are granted semi-annually. To avoid waiting until next July for release visas on important productions for the first six months of 1939 not yet ready or in work, U. S. majors have dubbed and registered unimportant films and propose to exchange licenses when the big pix are completed.
Gell Arrives to Discuss Extension of Pathe-Monogram British Contract
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of his present visit to the U. S., William J. Gell, managing director of the British company, told THE Film Daily yesterday on his arrival on the Queen Mary. Present commitment has two years to go.
Additionally, Gell is here to discuss Monogram's proposed plan to produce a minimum of four pix in England and the further Monogram project contemplating U. S. distribution of British pictures. The Monogram British pix would be budgeted at upwards of $100,000, Gell said.
The British exec, as soon as he landed immediately huddled with W. Ray Johnston, president of Mono1
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gram. Pathe distributes the Monogram product in Great Britain and also supplies Monogram with the necessary quota credits through its own production program of 12 pictures a year, budgeted from $125,000 to $150,000 each.
Gell stated that one of the principal purposes of his visit, apart from contract talks, was to propose plans for closer co-operation between the two organizations. If the proposal for Monogram production in England is adopted, an agreement will be discussed for talent and story swaps, Gell said.
British exec, expects to be here about two weeks.
Ruddock Seeking Toga
Frank Ruddock, member of Local 306, projectionists' union, is a candidate for State Senator on the American Labor Party ticket with the endorsement of the A F of L and the Republican party. Ruddock, who is a projectionist at the Roxy, is a World War veteran and has been endorsed by a number of other organizations for his candidacy.
Greiver Acquires the Don
Chicago — Si Greiver has added the Don Theater at Bradford to his circuit.
Distributor-Allied Statement on Trade Reforms Awaited
but he did not buy any story properties.
Hammons' present plans are indefinite and he is not certain when he will go to the Coast, but Jack Skirball, vice-president and production head, who went out on the cutter to meet Hammons, said that the plans for the company's 24 westerns will be set after he reaches the Coast. Skirball expects to leave for the Coast the latter part of next week.
Fine Arts Budgeting Pix Up to $150,000— Berkowitz
Returning from a European vacation yesterday, Sam Berkowitz, Fine Arts exec, told The Film Daily his company has completed four of the 26 pictures it is scheduled to deliver to Grand National for the latter's 1938-39 program, and production is being speeded up on several new pictures.
Fine Arts is budgeting its pix from $60,000 to $150,000 apiece, he said. He stated that he was interested in several English story properties, but had not made any deals yet. He leaves for the Coast in about a week.
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independents' clearance suit against Balaban & Katz was considered, with Joe Rosenberg, Chicago Allied attorney, reporting on the progress of the court proceedings to date.
Meeting with William F. Rodgers, M-G-M sales chieftain, who heads the distributors' committee on trade practice reforms, was scheduled for 8 o'clock last night. Col. H. A. Cole heads Allied's committee.
Rodgers stated that he would make a statement today on the progress of conferences. He called rumors of any breakdown of negotiations groundless.
A feeling of optimism as to the outcome of the meetings prevails among theatermen here.
Those here attending the meetings are: Max Cohen, Harry Kosch, New York; Ray Branch, Hastings, Mich.; Martin Smith, Toledo; Pete Wood, Columbus; Moe Horwitz, Cleveland; Isaac Holycross, Indianapolis; D. G. Milgram, Philadelphia; Lee Newberry and Irving Dollinger, New Jersey; Fred Herrington and M. A. Rosenberg, Pennsylvania; Jack Kirsch, and Aaron Stein, Chicago; W. A. Steffes, A. A. Kaplan, Benny Berger, Minneapolis; Sidney Samuelson, Newton, N. J.; Nathan Yamins and Harold Stoneman, Mass.; Abram F. Myers, Washington; Col. H. A. Cole, Texas; Max Krofta and H. F. Mert, Milwaukee, and Isadore Levine, Indianapolis.
William F. Rodgers of M-G-M, Abe Montague of Columbia and Gradwell L. Sears of Warner Bros. are here for the distributors.
$3,500,000 RUDGET FOR WB BRIT. FILMS
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after attending the opening of the new Warner Theater in London and holding conferences with his foreign managers.
Warners' 1939-40 English production program calls for 16 pictures to be produced at Teddington, with a budget of approximately $3,500,000 allocated for production, it was learned. One of these pictures will be a triple-credit film; there will be several doubles and the remainder will be singles, he said. Some of the Teddington pix may be distributed here.
Plan No Theater Expansion
Morris spiked reports that Warners were contemplating an expansion of their theater holdings in Europe. He stated that the new London Theater serves as the English "show window" and the Apollo Theater in Paris is signed as a firstrun house for Warner pictures in France; further European show windows are deemed unnecessary.
Morris said that there was a possibility WB talent might be used at the English studios in the future. It was also learned that the company has purchased some English story properties.
Sees No Italian Settlement When asked about the foreign situation in general, Morris said, "world trade is necessary, Europeans want and need American product, but it must be apparent that merit as a fair trading basis is being stifled by certain countries and the only alternative is to cease operations. We are liquidating our holdings in Italy; notice has been given to all employes and the company is booking no pictures for future dates."
Morris expressed the opinion that a settlement was impossible in Italy.
Jack Warner is expected to return here the 24th of Nov. on the Normandie, it was learaed. Morris said that he had made no personnel changes in Europe while there and none were contemplated. Joseph Hummel, assistant to Morris, may go to Europe in the near future, it was learned.
"Grand Illusion" Stays On
"Grand Illusion," released by World, goes into its third month at the Filmarte. Pix additionally is in its fourth week in Philly and Washington.
Tele for Stores
A major development in department store merchandising, combining television with departmental promotion, is announced by the American Television Corp. A new device, utilizing modern all-electronic television principles, makes it possible for patrons at many points in a store to view a parade of featured merchandise transmitted by television from a central studio in the store.