Motion Picture Daily (Jul-Sep 1939)

Alert, Inteiligei Awe to the^f cjtion Picture Industry MOTION PICTURE DAILY VfY& 46. NO. 53 NEW YORK, FRIDAY, SEPTEMBER 15, 1939 TEN CENTS Independents Face Lower Ascap Rates Stations Will Negotiate Their Own Contracts Ascap has discussed the possibility of negotiating separate contracts with independent broadcasters which would embrace a new formula calculated to reduce the rates now being paid the music licensing society by small, unaffiliated stations, it was learned authoritatively yesterday. Paul Siegel, Washington, D. C, attorney, who has been retained by a number of unaffiliated stations in various parts of the country, conferred recently with John G. Paine of Ascap on the subject and will continue the discussion in the near future. Siegel is understood to have informed Ascap officials that the stations represented by him are unwilling to have the National Association of Broadcasters act for them in the negotiation of a new Ascap contract and will insist upon conducting their own negotiations through their own representatives. In addition to the stations represented by Siegel, numerous other unaffiliated units have advised Ascap by letter that they, too, wish to negotiate their own contracts, apart from any negotiations which may be held with N. A. B. That the unaffiliated stations may obtain lower rates under any new contracts which may be negotiated with them, was indicated by an Ascap official who pointed out that the society recognizes that under its present formula the independent stations originate (.Continued on page 6) Newsreels Without War Action Shots Week-end issues of all five newsreels appeared yesterday without any material on the European war. No action shots of any of the belligerents have been received by the reels from their European representatives since the start of hostilities. Headquarters of the reels are completely in the dark about what, if any, action material has been obtained by their cameramen and what their chances are of receiving any part of it. Not even "official" or censored action material has been received. Occasional cables have been received from representatives advising of shipments en route but the scheduled time of arrival, means of shipping and (Continued on page 4) 'The American Theatre Owner Has a Right to Expect . . . By MARTIN QUIGLEY THE war in Europe has highlighted a state of emergency in the affairs of the American motion picture industry. The emergency is a challenge to the management of the industry, demanding that it face the realities of the situation and take, promptly and thoroughly, those steps which are imperatively necessary for the welfare of the industry and those who live by it. Happily for this, an American industry, the situation is not desperate. It is not even alarming, provided only that those measures which judgment and foresight dictate are introduced and applied. The immediate effect of the war in Europe is to illuminate a condition which has been asserting itself for some time. This condition comprises the lessening of revenues accruing to the American industry from overseas distribution. The condition comes not as a new development incident to the war. It has been an obvious fact for a considerable period of time ; obvious also has been the indication that a continuance of this downward trend is inevitable, due to influences at work in the various foreign markets. The trend steadily has been toward rendering less profitable to the American producer his activities abroad. This is being brought about through various devices, including quotas, restriction against the exportation of money, multiplication of duties, fees and licenses and, the nationalistic aspirations of the various governments. It cannot of course be said that foreign demand for American films threatens to vanish. The essential merit of Hollywood product as entertainment and its deep-rooted popularity with the various foreign publics are such that a continuing demand is assured. But it must be said that its opportunities have diminished in extent and in profit. AGAINST the darkening cloud of this threatening condition the industry management has just whistled — and hoped that somehow the trend would reverse itself. In the meantime the industry has whirled along its perilous course, facing increasing costs on one side and diminishing returns on the other. The incidence of the European war increased materially the acuteness of the situation. It did not create it. Even in the absence of a war in Europe the security and welfare of the industry required things to be done which have not been done. Now there is indeed no choice left. Either the industry must proceed promptly and thoroughly toward putting its affairs on a sound business basis or disaster inevitably will overwhelm it. This business as an American industry, blessed as it is with a domestic market of such great possibilities, is at this critical juncture in world affairs in a most fortunate position. Immediately available and almost equally assured are certain foreign markets, Canada, Latin-America, Scandinavian and other lesser territories. There are here opportunities for a continuing great and even more prosperous industry. BUT — most emphatically — the industry will not be able to continue as either great or prosperous if it continues foolishly to assume that it is to enjoy revenues which will not be realized and on the basis of this assumption allows its cost of doing business to remain unadjusted to realities. It is probably true that European revenues may after a few weeks be restored in part. They may even at times assume dizzy peaks of a warmade and consequently an artificial prosperity. But it would be the [Concluded on next page] All Theatres Over Britain Open Today Distributors Move Back Into London Quarters By AUBREY FLANAGAN London, Sept. 14. — All theatres throughout Britain will reopen tomorrow under the provisions of an official order issued today. Houses in the West End of London will be permitted to remain open until 6 P. M. Elsewhere throughout the city and the rest of Britain theatres will not be required to CiOse until 1(1 P. M. Move Back Into London Reopenings have been in progress in smaller cities and rural areas for the past week, but London theatres and those in other populous areas have been dark since Sept. 2. A second major development of the day in the British film trade was the decision by many of the larger distribution organizations to move their headquarters back to London from the outlying areas where they were established 10 days ago. The development substantiates Motion Picture Daily's exclusive prediction of a few days ago. See 24-Hour Film Service The distribution organizations go back into their regular London locations and there is very good prospect of 24-hour film service being re-established as a result. Liberal gasoline allowances for commercial purposes were authorized today, thus relieving to a great extent the concern felt in the trade earlier over the possibility of film shipments being adversely affected by emergency rationing. The allowances authorized, together with the probability that shipping facilities will be pooled by distributors, thus reducing the number of mobile units in operation, is expected to solve the problem. European Strategy Information which has filtered into New York indicates that British and French film interests walked out on an understanding with American film companies to avoid participation in the Venice film festival, held last month. Six French pictures were shown and four British subjects went before the jury.