Motion Picture Daily (Jan-Mar 1940)

Alert, tion Picture Industry DO NOT REM OVE MOTION PICTURE DAILY First in and Impartial . 47. NO. 45 NEW YORK, U.S.A., TUESDAY, MARCH 5, 1940 TEN CENTS France Blocks Withdrawals Of Film Cash Joins Other Nations with War Restrictions France has been added to the growing list of countries which, on account of the war, are imposingcurrency restrictions and blocking film remittances. The restrictions, according to advices received here in official circles, were put into effect last week. The French business is estimated to amount to approximately five per cent of the total foreign gross of the American companies. Its contributions to the industry's income was once about $4,500,000 annually. At the same time, the French Government is stated to have undertaken an investigation of the film situation with a view of controlling the "flight of capital," and to make a study of the film industry's requirements in the situation. The French market has deteriorated considerably in the past few years because of high taxes, extreme labor , costs and the high cost of dubbing pictures. Because of the war the possible revenue from France has been reduced by almost 50 per cent, or slightly over (Continued on page 5) Protests Free Film Exhibit at the Fair John Manheimer, executive secretary of the New York I.T.O.A., yesterday sent a telegram to Will H. Hays, president of the M.P.P.D.A., protesting the proposal for an admission-free motion picture exhibit at the World's Fair. Manheimer's telegram follows in part : "While we offered our support to the World's Fair last year, the lowered admission prices that will be in effect when the Fair opens May 11 will offer serious competition to us and we therefore are of the opinion that any cooperation in the way of free attractions to the public by this industry is inimical to our interests. "In discussing any plans for industry cooperation it is urgent that you consider the status of the theatre owner." An industry committee headed by L. E. Thompson of RKO is consideri ing a proposal for a film museum at the Fair at which exhibits will ex (Continued on page 2) Industry Asks U.S. For Seven Wagner Labor Act Changes Washington, March 4. — Changes in the Wagner Act which would protect the film and other industries from labor trouble arising out of disputes between rival unions were asked today by attorneys for 11 Hollywood producing companies. Alfred Wright and Maurice Benjamin, Los Angeles attorneys representing the producers, appeared before the House Labor Committee and urged, in all, seven procedural amendments to the Wagner Act, which, they said, are designed to make it operate more fairly. The principal amendments sought are : Give employers the right to petition the Labor Board to certify _ a proper union when there is a conflict between two or more unions. If an employer agrees to deal with a union on Board orders, he shall be protected against demands by a rival union. Employers should be free to discharge employes for any reason other than union activity. Findings of the National Labor Relations Board as to facts shall be binding on courts only if supported by "substantial and material" evidence rather than by "some evidence." Give the Board the power to hand down "consent decrees" where an employer agrees to discontinue unfair labor practices. Benjamin said film companies find it difficult to discharge employes for legitimate reasons because Labor Boards usually accept the employee's word when he ascribes his discharge to union activities. KNOX HINTS TRUST SUIT PEACE HOPES $16,000 Highest Bid For GN Film Rights Bids up to $16,000 for rights to Grand National pictures were made yesterday at a G. N. hearing before Referee Peter B. Olney, Jr., who deferred action until March 27. At the same hearing, Educational Studios, Inc., filed a claim to 44 features and six shorts now held by G. N. Action on this claim was also postponed. Highest bid for G. N. film rights was made by Dino Rossini, Far Eastern film distributor. Rossini's closest competitor was Nat Saland who offered $15,000 outright or $10,000 and 30 per cent of the first $100,000 received on the films, plus 50 per cent of sums in excess. Referee Olney stated that written inventories of G. N. assets would be prepared and distributed on March 27. Other bids are expected at that time. Trust Suit Accuses Republic and Majors Lincoln, March 4. — Republic Pictures, together with six other major distributors, was named a defendant in an anti-trust suit filed in Federal court here today by Frank Hollingsworth, Beatrice, Neb., exhibitor. Hollingsworth's suit charges that after leasing and renovating the Pix, Beatrice, last summer, he was unable (Continued on page 5) Storm Damages Grosses; Broadway Take 33% Off The third major storm to hit the metropolitan area in recent weeks and the worst in 25 years affected Broadway first runs most severely, but caused grosses to drop in neighborhood and suburban theatres as well. Business on Broadway was off 35 and 50 per cent for Sunday and yesterday. Radio stations which had considerable trouble in the last storm, were not generally affected, but WABC was off the air for a total of 6^ hours yesterday when its power supply failed. Circuits operating neighborhood houses were unable to determine the extent of damage suffered at the box(Continued on page 2) Broadway grosses slumped 35 to 50 per cent Sunday evening and yesterday as a result of the 36-hour downpour. The Paramount and Capitol, however, held up well despite the weather. At the Paramount, "Seventeen," with Glenn Miller's band and four visiting bandleaders, drew an estimated $28,000 over the weekend and should finish its first week with an estimated $60,000. It holds over. "Gone With the Wind" at the Capitol, which ends an 11^-week run tomorrow, enjoyed a stimulated boxoffice and took an estimated $60,000 for (Continued on page 2) Film Counsel Surprised; U. S. Examines Depinet; Balahan Is Next Federal Judge John C. Knox, in a written .opinion yesterday, referred to the possibility of a settlement of the Government's New York anti-trust suit. The reference came as a complete surprise to film attorneys engaged in preparation of trial of the case, all of whom asserted that they were unaware of any possibility of the case being settled. These attorneys were emphatic in their denials that any overtures involving a settlement of the suit had been made to them. Government attorneys disclaimed any knowledge of a projected settlement. They pointed out that the Government was energetically preparing for prosecution of the trial. Judge Knox's reference was made in the course of a decision fixing a trial date for the plagiarism suit of Joseph Davilla against Harms, Inc., NBC and CBS. The question had been raised by Schwartz & Froh!ich, attorneys for the defendants in the Davilla suit, who told Judge Knox that they must be free to defend Columbia in May in the antitrust suit. Judge Knox, senior U. S. district court judge, in his opinion stated: "If it be, as has been suggested, that the case of U. S. against Paramount Pictures, Inc., will be disposed of without trial of the issues, this suit can be tried May 15. If the Paramount case goes to trial May 1, trial of this action will have to await its conclusion." It was stated that Judge Knox (Continued on page 12) Ontario Bans 'Time' Subject on Canada Toronto, March 4. — Premier Hepburn of Ontario today banned the March of Time release, "Canada at War" on the ground that it is oolitical propaganda of the Canadian Government for the Federal election campaign, leading to the election March 26. "I am not going to allow films to be used for political purposes," Hepburn said. Louis de Rochemont, producer of the March of Time, charged yesterday in a prepared statement on the ban(Continued on page 2)