Motion Picture Daily (Jul-Sep 1939)

2 Motion Picture Daily Friday, September 15, 1939 "The American Theatre Owner Has Right to Expect... 99 [Continued from page 7] height of bad business procedure for the industry to allow its costs to remain unadjusted against the fantastic speculation that its economic problems would be miraculously solved by a war-impoverished Europe. There is but little point at this time in discussing how and why motion picture production costs reached, and were allowed to reach, present levels. It is enough that everyone knows that the cost of making motion pictures in Hollywood has reached a height that is without the sanction of reason, necessity or good business. However, it has been possible — but just barely possible — previously to support the prevailing costs. Every informed person now knows that it is no longer possible to do so. Those in Hollywood who have contributed to the development of the American motion picture to its present artistic and entertainment standard have performed an accomplishment that has rightly won for them the laurel wreath of world acclaim. They have, as the whole world knows, been well-paid for what they have done. They have, it would seem, been dealt with royally. But now in face of world conditions affecting the motion picture and in face also of new economic concepts applying not only to industries but to individuals as well, the time, which is indeed at long last, has arrived for production costs to be adjusted to levels which the traffic can bear. WITH no violence whatsoever either to the individuals concerned or the quality of the pictures, production costs may be substantially reduced. No informed person denies that senseless competition in the midst of what may be briefly mentioned as the Hollywood merry-goround alone accounts for compensation figures that transcend all reason and have never been approximated any time or place in the memory of man. Well over fifty percent of the cost of an average motion picture represents salaries and wages. Wage levels, that is, the compensation of craftsmen, artisans, clerks and laborers, cannot be lowered on account of union agreements. They should not be lowered even if there were no agreements. There have been no great extravagances there. But elsewhere in the cost of personnel together with the many incidental extravagances— amongst which may be included an army of figureheads, fixers and fakers — lies ample room for the needed readjustments. The American theatre owner is decidedly a party at interest. He has a right to expect the necessary volume of product to supply his requirements. He has a right to expect that, irrespective of what.-Kvnditions may obtain in foreign markets, he receive pictures of a c^rmire and quality which will afford satisfaction to his patrons. There can be no assurance of either the necessary quantity or quality of film unless production is placed on a basis which reasonably justifies with the ordinary principles of sound economics. Beneficiaries of the increasingly high cost system of production would like to have it understood that any lessening of production costs necessarily means a lowering of quality. This argument is wholly false. It is true that the production of a motion picture is a costly process. But costs are relative. No one sensibly expects an important motion picture to be produced for little money. But no explanation has ever yet been made of the present levels of production costs except that they just grew out of the fertile soil of the Hollywood system. Another pertinent concern of the theatre owner in the present condition is that he shall not be depended upon to supply additional revenues to offset diminished returns from foreign markets. Unless production costs are adjusted to meet existing conditions the theatre owner inevitably faces, (1) a product shortage; (2) a lower quality in the production delivered or, (3) higher rentals. It is therefore clear that exhibitor opinion inevitably stands solidly behind the demand for adjusted production costs. Out of the American market and such foreign markets as continue assured to the American producer a great and prosperous industry in all branches may be maintained. If this is to be done it must be done by acting on the realities of today — not the conditions of yesterday or the visions of tomorrow. 4 Purely Personal ► Personnel Slashed At Fox Home Office Dismissal notices, some for temporary periods and some permanent, will be issued to an estimated 125 home office employes of 20th Century-Fox today. Action is being taken to effect economies imposed by the loss of foreign revenue due to the European war, a company spokesman said. The move is in line with that imposed upon the company's studio last week. Virtually all home office departments will be affected by the action, it was said, with department heads having been ordered to eliminate all employes whose services were not indispensable in order to avert general salary cuts within the company. Para. Dismissals Too Hollywood, Sept. 14. — Ten members of the Paramount studio publicity department, representing 25 per cent of the department personnel, were given dismissal notices today. Action resulted from the imposition of economy measures made necessary by the curtailment of foreign operations due to the war. It was not known whether other studio departments would be affected, but it is believed that the economy order is general and will apply wherever retrenchments can be made without sacrifice of efficiency. Warners in Reade Deal Walter Reade Enterprises have signed for Warners' complete 1939'40 schedule. The deal involves 40 New Jersey and New York theatres. GEORGE J. SCHAEFER, RKO president, has postponed the trip to the Coast which he planned to start today. No new departure date has been set. • Harry Browning, publicity director of M. & P. Theatres in New England, has been elected chairman of the publicity committee of the Lt. Vernon A. Macauley Post, American Legion, in Boston. • Leo Drexler, Warner assistant contact man in Albany, is still confined to St. Peter's Hospital there, suffering from injuries sustained when he fell from a horse eight weeks ago. • Carroll Young, story editor for Sol Lesser, has left Hollywood for New York to discuss with the producer shooting plans for "Our Town." • Luise Rainer, actress, plans to return to the United States aboard the liner Manhattan from Bordeaux, France. Connecticut Allied Will Meet Tuesday New Haven, Sept. 14.— Allied Theatres of Connecticut will meet next Tuesday at the Hofbrau Haus to nominate officers for the coming year. Maurice Shulman, president, and Dr. J. B. Fishman, of the board of directors, will report on the recent Allied Theatres of New Jersey convention at Atlantic City, which they attended. JOE E. BROWN will come to New York for the premiere of "$1,000 A Touchdown," in which he is co-starred with Martha Raye, and will remain here for the World's Series and to see new Broadway plays. • Louis De Rochemont has assigned special production duties to Ray Hall on "The Ramparts We Watch." • Arturo Toscanini sails for America Saturday on the U. S. liner Washington. Russell Birdwell arrives today by plane from Hollywood. Giveaway Ban Voted By Wisconsin Senate Madison, Sept. 14. — The Wisconsin Senate today passed the Paulson bill prohibiting theatre games and giveaways. The measure was sent to the Assembly. A companion bill, defining lotteries as a nuisance, has been delayed in the Senate. Independent exhibitors in the state opposed passage of the Paulson bill on the ground that it would not prohibit churches from conducting bingo games. New Import Firm Concord Films, Inc., has been formed by Martin Lewis, H. S. Rosenwald and Harold Neuberger for the importation and distribution of foreign films. The company's first vehicle will be "Rasputin," starring Harry Baur, and is set for a midOctober release. Will Transfer Mobeel Suit to Federal Court An anti-trust suit which was filed about six weeks ago by Mobeel Enterprises, Inc., operator of the Glenwood, Brooklyn, against Century Circuit and Warners, M-G-M, Paramount, RKO and United Artists, will be discontinued in the state supreme court and filed in the Federal court, according to Morris Bohrar, attorney for the plaintiff. Charles Sussman, head of Mobeel, charges in the suit that the Glenwood was unable to obtain product which it had formerly had after opening of the new Century house, the College. MOTION PICTURI DAILY (Registered U. S. Patent Office) Published daily except Saturday, Sunday and holidays by Quigley Publishing Company, Inc., Rockefeller Center, New York City. Telephone Circle 7-3100. Cable address "Quigpubco, New York." Martin Quigley, Editor-in-Chief and Publisher; Colvin Brown, Vice-President and General Manager; Watterson R. Rothacker, Vice-President; Sam Shain, Editor; James A. Cron, Advertising Manager; Chicago Bureau, 624 South Michigan Avenue, C. B. O'Neill, manager; Hollywood Bureau, Postal Union Life Building, Boone Mancall, manager, William R. Weaver, editor; London Bureau, 4, Golden Square, London Wl, Hope Williams, manager, cable address "Quigpubco, London." AH contents copyrighted 1939 by Quigley Publishing Company, Inc. Other Quigley publications; Motion Picture Herald, Better Theatres, Teatro Al Dia, International Motion Picture Almanac and Fame. Entered as second class matter Sept. 23, 1938, at the post office at New York, N. Y., under the act of March 3, 1879. Subscription rates per year $6 in the Americas and $12 foreign. Single copies 10c.