Motion Picture Daily (Apr-Jun 1940)

16 Mr. MAURICE Mc,r c* MOTION PICTUK. 28 WEST 44TH riON PICtURE to the Picture Industry tion First in and Impartial I VOL. 47. NO. 71 NEW YORK, U.S.A., WEDNESDAY, APRIL 10, 1940 TEN CENTS Scandinavian Market Loss Is Likely Now Extension of War Threat To Film Trade Complete loss of the Scandinavian market looms as a possibility due to the extension of the European war to Denmark and Norway. The Scandinavian market, including Sweden and Finland in addition to Norway and Denmark, is one of the most important European markets remaining. It returns an estimated $3,000,000 annual net profit to American distributors and has been singularly free of serious monetary restrictions since the outbreak of the war seven months ago. Although Sweden has not been invaded in the newest military movement, her fortunes are so closely allied with those of the other Scandinavian countries that it is certain that all public life in Sweden will be vitally affected as a result of the new developments. In times of crises, theatre patronage in countries so situated virtually disappears. This will apply as well to the remoter sections of Norway not yet invaded. The four Scandinavian countries account for approximately four per cent of the distributors' entire foreign revenue. The entire South American market, by way of comparison, accounts for about 14 per cent. Neely Asks Divorcement In New Senate Measure Universal Plans 2 Regional Meetings Universal will hold two regional sales conventions early in May, W. A. Scully, vice-president and general sales manager, said yesterday. The first will be held in Atlantic City, probably during the first week in May, and the second in Chicago the following week. Definite dates are to be set by Scully in the near future. At the meetings Universal will announce a new season's production schedule numerically, the same as last year, 36 features and 14 westerns. Final new season's product conferences began at the home office yesterday with Nate J. Blumberg, president, Scully, John Joseph, advertising and publicity director, and other officials attending. F. J. A. McCarthy, eastern sales manager, and W. J. Heineman, western sales manager, both of whom have just returned to the city will join in the conferences beginning today. See Divorcement Bill as Alternative Anti-Trust Move by U. S. Introduction in -the Senate yesterday of a theatre divorcement bill by Senator Neely, coupled with his pending block booking and blind buying measure, perpetuates the threat to major companies of the essentials of the Government's anti-trust suits, regardless of the outcome of those suits. Theatre divorcement and block booking have been cited by Government representatives as the principal aims of the suits. Now, whether the suits are settled out of court or dismissed after trial, the same issues will face the industry in the form of legislation, thereafter. This situation recalls the statement made by Thurman Arnold when the Government's New York anti-trust suit was filed in July, 1938, that if the Government lost the case on a trial it would endeavor to obtain the enactment of legislation to accomplish the purposes of the suit. In the opinion of numerous industry executives and attorneys, however, legislation of this kind is vulnerable from the standpoint of constitutionality, and if enacted undoubtedly would be contested by the industry up to the U. S. Supreme Court. The only previous experience the industry has had with divorcement legislation was that enacted by the North Dakota legislature in 1937. Paramount, the only company affected by that statute, attacked its constitutionality in a Federal statutory court and lost. The company had brought an appeal to the U. S. Supreme Court when the North Dakota legislature repealed the divorcement measure, ending the litigation. Ginsberg Will Share In LeBaron Duties Hollywood, April' 9. — William Le Baron will relinquish his executive duties at the Paramount studio in the near future to Henry Ginsberg in order to concentrate exclusively on production assignments. Ginsberg's appointment last week as general manager in charge of studio operations makes it possible for him to relieve LeBaron of many management functions which he has performed hitherto. Indications are that under the new setup LeBaron will be personally responsible for a greater number of productions. Majors Win Move For Gov't. Replies In Oklahoma Suit Oklahoma City, April 9. — Motions for bills of particulars which would require the Government to set forth specific allegations of conspiracy among major distributors and the Griffith Amusement Co. have been granted the defendants in the Government's Oklahoma City anti-trust suit by Judge Edgar S. Vaught in U. S. District court here. The court's decision granting the defendants' motions takes pains to interpret the law involved while rejecting the Government's contentions that the information that the defendants would require it to give is already known to them, and that to furnish the specific information would make the pleadings "too voluminous." To the Government's first objection, Judge Vaught replies : "It is no defense to a motion for a bill of particulars to say that the information which the defendants seek is within their knowledge. . . . Each of the defendants has a right to know what he or it is alleged to have done which made him or it a part of the conspiracy and these acts should be alleged with sufficient definiteness, not only to enable the defendant to meet (.Continued on page 4) Writers Off Today For 'Eater' Opening Syndicate and trade paper writers depart today for the world premiere of Paramount's "The Biscuit Eater" at the Albany Theatre, Albany, Ga., tomorrow. The following syndicate, magazine and trade paper representatives will be aboard the special car of the Crescent Limited, which leaves Penn Station at 2:25 P.M. today: George Beal, United Press; George Lait, International News Service : Tohn Dema, Herald-tribune News Service ; Frank Gebman, Acme News Photos ; Ben Greenhaus, Times Wide World; Dale Harrison, George Mathews, Adams Syndicate : John Lindsey, Associated Press ; Fred Menaugh. King Features Syndicate; Hazel (Continued on page 4) Trade Opinion Divided Regarding Consent Decree Effect Washington, April 9. — A bill for complete separation of exhibition from all other branches of the industry was introduced in the Senate today by Senator Matthew M. Neely of West Virginia. Opinions on the effects which introduction of the divorcement bill may have upon the current discussions of an out-of-court settlement of the Government's anti-trust suits against the industry were sharply at variance here. Some quarters held that it signalized Congressional opposition to the settlement of the suit proposed by the Department of Commerce, which does not provide for separation of exhibition from production and distribution, and which would permit picture sales in small blocks. These observers felt that the new Neely bill would bring about the immediate and complete collapse of the settlement discussions, since the major companies which might have accepted a consent decree would be in future danger of losing by legislation everything that they stood to gain now in accepting a settlement. Others believed that the divorce (Continued on page 5) 20th-Fox Men Start For Chicago Today Twentieth Century-Fox delegations leave tonight for Chicago to attend the company's annual sales convention which will start Friday for three days at the Drake Hotel. Herman Wobber, general sales manager, who will preside at all sessions, on Saturday will outline the production program. Darryl F. Zanuck, vice-president in charge of production ; William Goetz, vice-president and assistant to Zanuck. and Joseph M. Schenck. chairman of the board, arc scheduled to address the convention. In addition to company executives, home office sales executives and departmental heads, the attendance will include district and branch managers, salesmen, head bookers and others. The official convention list numbers 248 persons. The Eastern and home office delegates will leave New York at 5:15 o'clock on a special train on which (Continued on page 5)