The Film Daily (1933)

THE &&« DAILY SEES GOOD FELLOWSHIP CHIEF INDUSTRY NEED (Continued from Page 1) years before that. Dubinsky and his brother operate the Dubinsky circuit in Kansas and Missouri. "The exhibitor thinks, and not without some cause, that the distributor is a so-and-so; and the distributor thinks, likewise not without some cause, that the exhibitor is a so-and-so. An attitude of mutual distrust and irritability characterizes most of the relationships arising in the discharge of the industry's affairs. "If I were running a dinky clothing store on a back street, and bought as little as $1,500 worth of merchandise a year," Dubinsky comments, "when I went to New York, the manufacturers and wholesalers would wine, dine and dance me. They couldn't do enough to express their appreciation for my business. But as an exhibitor, when I go to New York, no one has time to be bothered. "The producer or distributor writes an exhibitor that he can do this and that or he won't get any more pictures; and, because those in the offing look good, he toes the line. But they never write him a letter of thanks or encouragement! "Most exhibitors are human, if they are treated that way, and do go along, through bad years and good, with the distributor who gives them friendly and fair service. When the distributor offers them any other kind of treatment, they dislike buying: even the best of pictures from him. "Producers have been too hungry for quick big profits. They forget that the old circus grafter who gypped as much from as many as he could, and had his pride in being successful at it, was always broke at the end of a season. "Why shouldn't distributors go along with the exhibitor and give him a chance to live in the face of difficulties as important, if not as great, as theirs ? "General Motors does not sell a Chevrolet to one customer at a higher price than to another. Some years ago I was offered a picture for $1,500 which I bought for $50. Of course this is an extreme case, but it is, nevertheless, an accurate indication of a bad practice. "There is no real necessity for gypping, for high-handed tactics. Why not let everybody make a little money? If an exhibitor doesn't Market Value "Beauty is worth a dollar an hour, but there is no price tag on brains," declared Darryl Zanuck in a radio interview from Hollywood the other night. $100,000 Crooning Insurance for Bing Crosby West Coast Bureau of THE FILM DAILY Hollywood — Bing Crosby, radio and screen headliner, has taken out $100,000 insurance on his voice. A growth between his vocal chords gives him the huskiness that is peculiar to his crooning, Crosby said, and if the growth disappears the insurance companies will have to fork over. Pathe Likely to Finance Independent Production (Continued from Page 1) president, stated yesterday. The company, which has not entered actively in any branch of the industry for the past two years, will immediately begin active operation of its Bound Brook Laboratories under the supervision of Arthur W. Miller. Officers of the company remain the same with Arthur Poole as viceoresident and treasurer. Webb told The Film Daily yesterday that he has received permission from RKO executives to finance independent oroductions iprovided the company itself does not actively produce. Plans for resumption of activity by Pathe were first reported in The Film Daily on June 6. High Film Rentals Assure Better Product — Schaefer (Continued from Page 1) they are the only type that will do business. They cannot be produced in a pinch-penny budget, although this is by no means to be taken in support of extravagance. The era of wild spending is past in every industry." More Spending for Shows Predicted by W. A. Finner Columbus — As a result of losses sustained through investments, closed banks and in other directions during the last few years, the public will be more prone to spend money as it is earned, and a good deal of it will go for amusements, in the opinion of W. A. Finner, Loew division manager. He predicts less saving and more spending. COMPOSER MAKING SHORT Roy Turk, a Tin Pan Alley tunesmith, will appear in a Vitaphone short subject which goes in work today at the Brooklyn studio under Roy Mack's direction. Script was written by Herman Ruby and Cy Wood of the studio writing staff. Kay Hamilton, Madelyn Killeen, Barnett & Clark and Mario & Lazerin are in the supporting cast. want to play the game according to fair rules, give him another chance; and then if he continues an ill-natured maverick, penalize him. Don't penalize the whole group. "In the end it all comes back to the lack of good fellowship. Those in the business have soured. They have outgypped each other until they have no sympathy left, and without sympathy there is no understanding." $65,000,000 Asked in Suit Against Western Electric (Continued from Page 1) attorney, Col. Lewis Landes, charges that the three defendant companies constitute a monopoly in restraint of trade and that, through contracts with producers whereby pictures were released only to exhibitors using sound reproduction apparatus controlled by the defendants, strangled competition and forced exhibitors to use the defendants' products. David R. Hochreich, a motion picture man for 20 years, former president of Vocafilm before it suspended operations in 1929, and W. Harry Williams, retired Pittsburgh capitalist, are the individuals in the Vocafilm fight. "The story behind the suit," Hochreich told the press in the offices of Attorney Landes, "goes back to 1927, when my business partnership with Mr. Williams began. We had sole rights to make, use and license Vocafilm Recording apparatus and make Vocafilm productions. "We invested $600,000 to produce our sound reproducing units. The reproducing units were made to sell to exhibitors for $4,000 as against the $15,000 to $20,000 for an installation of Western Electric units. "We opened offices and studios at 122 Fifth Avenue, with 100 employees, and a factory to manufacture our producing units in Long Island City. "We made eighty short subjects and prepared to make 1000 more. We demonstrated our apparatus and attracted much interest among the independent exhibitors. We made a contract with Educational Pictures to distribute our sound units, under a guaranteed distribution of 250 sets a year, and on a distribution plan expected to put out 2,000 units. "That contract was to run 5 years and the estimated profit to Vocafilm was $1,676,875 annually or $8,384,375 for the life of the contract. "Our contracts for pictures included, in addition to our short subjects, production of the current hits of the Shuberts, William A. Brady and A. H. Woods. Our estimated profits from production of both shorts and features, all contracted for and covering a total of 5 years, would have been $2,600,000 annually, or $13,000,000 for the time of the contracts. "The reasons for the suit developed after Vocafilm had gone into the field. We found that the three defendant companies were in effect a single unit, Western Electric stock being practically all owned by American Telephone & Telegraph and Electrical Research Products being the outlet for pool of patents controlled by the other two companies. "We found that Western Electric and the other defendants had tied up the producers. "Paramount, Fox, Warner Brothers, United Artists, Metro-Goldwyn-Mayer, Universal and Columbia pictures, among others, were using Western Electric sound equipment. And in their contract was a provision which barred them from releasing pictures to exhibitors using other than the reproduction apparatus controlled by the three defendant companies. "Vocafilm by 1929 had been muscled out of all but two places in which its pictures might be shown. We rented the Longacre Theater and ran a show there for twelve weeks, demonstrating the equipment. And in George White's Scandals of 1929, Vocafilm apparatus was used during the 10-month run of the show. "Since that date it has been decided in court, before Federal Judge John P. Nields, Friday, July 21, 1933 DOLLAR'S FALL LIFTS FOREIGN INCOME 40% (Continued from Page 1) mate that the exchange situatio may make a difference of from $12 000,000 to $15,000,0000 in favor o! the American film companies th year, according to Dow-Jones. ] both Great Britain and South Amer ■ ica, chief markets for U. S. filnu the exchange situation has operate' greatly in favor of American ii In the U. S., attendance and gros so far in July has exceeded th< previous year's business for the fin time in several years, the surve;1 adds, and with expenses cut, leascand mortgage interest rates reduce' and other economies effected, then, are indications that the downwan trend in earnings has been halted Syndicate Will Hold 660,900 Loew Share* (Continued from Page 1) the stock is distributed, it will bij on a pro rata basis. The Film Se I curities notes matured last April but were not paid. ' Although holders of the note; have agreed that they individually may withdraw from the syndicate and sell their holdings in the oper! market, it is not considered likel> , that this will be done. Investment! trusts who are big holders of the notes have indicated that they will remain with the syndicate pendinp! favorable market conditions when) they may withdraw at a better price Several overtures are understood tr have been made for purchase of the block of Loew stock, but they were; turned down because the price was out of line with the market. ISSUING LONDON SONG HITS > Movietone Music Corp. shortl} will publish "Three Wishes" and "Let Me Give My Happinness tc You," current British song hits. in Wilmington, Delaware, on June 28 of this year, that the exhibitors cannot be barred' from receiving films of the big producing' companies because of the contract between the producing companies and the manufacturers' of Western Electric, American Telephone tc Telegraph and Electrical Research Products; Company equipment. "That decision was in the case of Genera! Talking Pictures, the Stanley Company i America and the Duovac Radio Company against the named three companies that are made defendants in the Vocafilm suit. "The case Judge Nields decided in favor: of General Talking Pictures parallels our.' case, except that our company is no longer' in business. We were forced out by the| operations of this trust, comprised of the three defendant companies." Western Electric officials late yesterday said that they had not yet been served with papers in the action and therefore had no comment to make at that time. Creditors' Meet Adjourned Meeting of Paramount creditors has again been postponed by Referee Henry K. Davis to Aug. 10.