Motion Picture Daily (Jul-Sep 1939)

DO !V m ~r Alert, tion Picture Industry MOTION PICTURE DAILY First in and Impartial V g 46. NO. 52 NEW YORK, THURSDAY, SEPTEMBER 14, 1939 TEN CENTS Coast Grand Jury to Hear Goetz First Bioff and Joseph Schenck Also to Be Subpoenaed Los Angeles, Sept. 13.— A new Federal grand jury was impanelled here today, and it immediately announced that it would launch its investigation of alleged film labor racketeering and income tax evasion next Wednesday. The first witness to be formally subpoenaed is William Goetz, 20th Century-Fox executive. Charles H. Carr, assistant U. S. Attorney General who was dispatched from Washington to direct the Hollywood investigation, said that subpoenaes also will be issued for William Bioff, "minister without portfolio" for the I.A.T.S.E., and Joseph M. Schenck, president of 20th Century-Fox. Carr said that plans for a special grand jury had been abandoned. The grand jury sworn in today consists of 23 men, most of whom are engaged in the insurance business. Salary Cut Fights Promised Studios Organized studio employes will resist any attempt to reduce salaries because of war conditions, the New York I.T.O.A. has been advised by the Screen Writers, Actors and Directors Guilds. The guilds declare that they would be willing to discuss "a fair adjustment" if the salaries and bonuses of producers and executives were also taken into consideration. Should the industry's revenue and living costs increase, the guilds state they would expect to discuss salary increases. The guilds' statement was in answer to a telegram sent to them by Harry Brandt, president of the I.T.O.A., inquiring what their attitude is in helping to meet the war emergency. ''Any such adjustment — downward or upward — necessarily would have to be based on full examination by the guilds of all financial data and other information available to the producing and distributing companies," says the guilds' joint answer. "We believe that your assumption that a European war will decrease American film revenue by 35 per cent is totally inconsistent with past experience. On the contrary, we believe (.Continued on page 4) One Big Union Plan Goes to Members Of 4A in 2 Weeks A one big union plan will be definitely presented to the membership of Associated Actors and Artistes of America within two weeks, according to Henry Jaffe, 4-A associate counsel. Jaffe made the announcement at a mass meeting of the new American Guild of Variety Artists which ended early yesterday morning. Jaffe explained that although the plan was not completely formulated, every branch of the 4-A had been convinced of the necessity of such move and that officials had pledged themselves to work out the details within the next fortnight. In the recent jurisdictional fight with the I.A.T.S.E., all branches agreed to pool their treasuries and permit the 4-A international board to direct their activities. As a result, Jaffe said, all members realized that differences over the "one big union" principle, which have been argued for more than two years, should be forgotten and the details settled. According to present indications, the plan will provide for one initiation fee and one set of dues payments. Any actor who becomes a member because of employment in any field in the profession will automatically be entitled to work in all fields without further payments. There will be only one treasury. Indications also point to the preservation of branch autonomy for the purposes of administering workingconditions and salary scales. In this way, actors working in particular fields will be able to decide their own immediate problems while major issues will be governed by the 4-A. AFL Rallies to Aid IA in Sept. 20 Ballot Hollywood, Sept. 13. — All American Federation of Labor locals, including the Screen Actors Guild and excluding Studio Painters No. 946, banded together today to aid the I.A.T.S.E. in the N.L.R.B.-sponsored election to determine whether the Alliance or United Studio Technicians Guild or neither should be bargaining agency for workers. A.F. of L. groups will be asked to bring pressure and otherwise conduct campaigns for Alliance support in the balloting scheduled Sept. 20 at Gilmore Stadium. About 250 representatives, including business agents and officers of A.F. of L. groups, met last night to discuss plans for the drive to keep the (Continued on page 4) WAR BARS FACING ANGLO-U.S. TRADE Gross of $80,000 For 'Rains Came' With more than 150,000 paid admissions in five days, "The Rains Came" was headed for a gross of $80,000 in its first week at the Roxy. "Golden Boy" drew an estimated $95,000 at the Music Hall and holds over for a second week. "Blackmail" opens at the Capitol today, after one week for "Lady of the Tropics" which grossed an estimated $25,000. Broadcasters Code Goes in Effect Oct. 1 Chicago, Sept. 13. — The National Association of Broadcasters' recentlyadopted code goes into effect Oct. 1, N.A.B. directors announced today. At the same time the board directed Neville Miller to appoint a committee to interpret and enforce the code throughout the industry. "The code is more than an expression of radio policy," Miller declared. "It is an outstanding example of voluntary industrial self-regulation, conceived and executed in the public interest." Adopted at the Atlantic City convention, the code requires that radio stations shall provide free time for discussion of controversial public issues in such a way that conflicting viewpoints in public matters will have a fair and equal opportunity to be heard. Time for such events, except political broadcasts, will not be sold. The code also requires that news broadcasts be factual and without bias or editorial opinion. It also provides that children's programs be based on "sound social concepts" and that radio stations continue further development of radio as an educational adjunct. "Attacks upon another's race or religion" are also barred by the code. The board ruled that commercial contracts now existing shall be respected for their duration if they are not longer than one year. Charter Pioneer Club Albany, Sept. 13. — Incorporation papers of membership have been filed here on behalf of Picture Pioneers, Inc., New York group of film industry pioneers. Serious Handicaps Seen For Films if England Votes New Laws London, Sept. 13. — -Producer-distributor circles here regard with considerable concern the prospect of anticipated new commercial legislation, which would affect vitally the AngloAmerican film trade. It is believed the Board of Trade is considering measures along three distinctive lines : Suspension or limitation of remittances abroad, limitation of imports of foreign films, and the suspension of the quota clauses of the Films Act. The primary objective of such legislation is seen as retaining the maximum of money in this country, but it would seriously affect AngloAmerican trade relations. Such proposals would certainly meet with considerable opposition in British and foreign trade circles, and probably in Whitehall itself. If such legislation is proposed. United States interests would protest that remittances to America are being used as an investment towards increasing the quality and commercial value of American films shown here. It would also be cited that the remittances are balanced by a considerable investment in the British industry and in British production. It would likewise restrict and reduce the further importation of qualitv films for the British market. The (Continued on page 3) Canadian Theatres Suffer War Taxes Toronto, Sept. 13. — The war budget of the Canadian Government has hit all theatres, with an eight per cent tax on all electricity bills and an increase in the tax on all companies, whether incorporated or not, to 18 per cent on total returns. In addition, a sliding tax of from 10 to 60 per cent on profits above five per cent is applied to companies whose fiscal year ends March 31 or later, otherwise effective on immediate returns. There has been no addition to the present tax on surplus funds sent out of Canada by film exchanges. Personal income taxes have been increased for the current year by 20 per cent. The tax on electricity is entirely new and probably will result in marked economies in theatre marquee and sign illumination.