Motion Picture Daily (Jul-Sep 1939)

t Boo Eun w w Alert, Picture Industry DO NOT REMOVE MOTION PICTURE DAILY First in and Impartial * m.. 46. NO. 50 SSL NEW YORK, TUESDAY, SEPTEMBER 12, 1939 TEN CENTS Universal Net For 9 Months Is $989,995 $1,743,000 Improvement Over 1938 Period For the 39 weeks ended July 29, 1939, operations of Universal Pictuies have resulted in a consolidated profit of $989,995.21 after all charges but \ before Federal income taxes, J. Cheever Cowdin, board chairman, announced yesterday in a letter to stockholders. i This represents an improvement of . $1,743,102.64 over the corresponding I period of 1938 when the company reported a loss of $753,107.43, Cowdin revealed. It also represents an improvement of $2,126,964.20 over the corresponding period of 1937 when the company reported a loss of $1,136,968.99, and represents an improvement of $1,802,469.11 over the corresponding period of 1936 when the company suffered a loss of $812,473.90. Australia Mission By Dan Michalove Dan Michalove, assistant to S. R. Kent, president of 20th Century-Fox, sails tomorrow from Los Angeles on the Monterey for Australia. He will remain there several months. Michalove, who made a survey of Hoyts theatres in Australia last year, will represent National Theatres in the consolidation of Hoyts and Greater Union Theatres. The deal, which will combine about 180 theatres, is to run for 20 years. It is subject to ratification by the boards of directors of the respective companies. Charles E. Munro, managing director of Hoyts, who participated in the negotiations here, will sail with Michalove. Broadcasters Act On War Neutrality Washington, Sept. 11. — Radio neutrality will be the question of the day at the special National Association of Broadcasters convention in Chicago Friday, according to President Neville Miller. War problems led some members to suggest postponement, but Miller canvassed the board of directors and found the majority in favor of holding the meeting as planned. The industry's music problems also will be discussed. 7,500 Vote Sept. 20 To Discover Studio Bargaining Agent Hollywood, Sept. 11. — Sept. 20 was set today as the date for the consent election of Hollywood studio craft workers to determine whether the International Alliance of Theatrical Stage Employes or United Studio Technicians Guild or neither should represent them as the collective bargaining agent. Approximately 7,500 workers will participate in the balloting to be conducted at the Gilmore Stadium between 6 A. M. and midnight. The date for the election was fixed at a conference held in the office of William R. Walsh, attorney for the National Labor Relations Board. Also attending were John Gatelee, Frank Stickling, and Lew Blix of the I. A. T.S.E. ; A. H. Peterson, American Federation of Labor representative, and Howard Robertson and H. I. Besbeck of U.S.T.G. Studios for the past week have been checking their payrolls to prepare lists of workers who will be eligible to vote. In a letter to I.A.T.S.E. locals, which had invited him to represent them in negotiations with studios, William Bioff expressed "sincere appreciation" of the request, but said : "Since I have withdrawn voluntarily from union activities, I am reluctant to again assume the responsibilities involved." STUDIOS WILL KEEP PICTURE PLEDGES MPTOA Praises WB for Modifying Its Sales Policies Warners' action in taking the initiative in offering an individual company trade practice program is commended in the current M.P.T.O.A. bulletin just released to members. "This is a great step forward in the face of the present confusion and dismal outlook," the bulletin says. "Every responsible exhibitor' who is sincerely interested in bringing order and fair dealing into our business should give it every encouragement. There are indications that some of the other companies, if properly encouraged to do so, may voluntarily modify their sales policies in such a way that many of the trade practice proposals will be accomplished." Reporting in the bulletin on his recent conferences with distribution executives concerning the possibilities of future action on trade practices, Ed Kuykendall, M.P.T.O.A. president, says he finds "these men are making a serious effort to work something out (Continued on page 2) Britain's Film Act Faces War Emergency Revision London, Sept. 11. — Reactions at Whitehall to the protests of British producers and labor interests against the reported intention of the British Government to suspend the quota indicate some adjustment in the present Films Act to suit the current wartime circumstances. The present legislation probably is due to be virtually suspended as it now stands, but provision is likely to safeguard some measure of production and employment. It was virtually promised that conditions will not duplicate those of the last war. Producers and labor representatives met with the Board of Trade on Saturday and will return this week for further consultations. Meanwhile, the widespread evacuation of the trade to operating areas outside London is proving a serious obstacle to efficient operation, Many executives are holding daily office hours in Wardour Street (London's film row). Also most of the business of Associated British Pictures at present is being carried on from the London headquarters at Golden Square, with additional activity from London anticipated. The sympathetic official reception to the new exhibitor moves in the London area has produced a marked feeling of optimism in trade circles here. The Home Office will receive a deputation from the London and Home Counties Branch of the Cinematographic Exhibitors' Association on Wednesday and the exhibitors are confident of sympathetic treatment from government officials. London exhibitors today met Herbert Morrison, chief of the London County Council, and came away with a definitely optimistic reaction to the {Continued on pane 2) Paramount and Universal Promise No Budget Retrenchments Virtually every major film company, faced with the war emergency, has declared that production budgets will not be trimmed at the sacrifice of picture quality and that all release dates will be met. Studios are, however, eliminating waste and unnecessary expense. The policy of not sacrificing quality or quantity, proclaimed earlier on behalf of Universal by Nate J. Blumberg, president, was reiterated by J. Cheever Cowdin in a letter to the company's stockholders yesterday and bv Blumberg at a luncheon attended by company executives and trade press representatives. Blumberg added that in addition to the decision to adhere to its original production plans, Universal was determined to make no salary cuts or lay-offs in the studio or home office. Harry Cohn, Columbia president, said no changes of anv kind were contemplated in his company's production. Y. Frank Freeman, Paramount vicepresident in charge of production, advised a sales meeting in Chicago over the past weekend that: "Absolutely no deviation from the announced 1939'40 Paramount production program is planned." "There will be no reduction in budgets or elimination of pictures on our season's schedule," Freeman told home office sales executives and district managers. "Our production pro (Continued on page 4) Picture Stocks Off In Rising Market Despite a generally rising market, most film securities showed fractional losses on the stock markets yesterday. Gains were recorded by Eastman Kodak common, which rose 1% to 151 and by Kodak preferred, which showed the largest gain of the day, up 2]/2 to 162^4. Universal Pictures preferred was up 2 to 50, and the common up 1 to 18. Preferred stock of 20th CenturyFox rose 1 to 20% but common dropped V% to 12. General Theatres Equipment, 8%, and Trans-Lux, 2, showed Yt, gains. All others were off or unchanged. Warner issues suffered yesterday. (Continued on page 8)