Motion Picture Daily (Apr-Jun 1940)

4 Motion Picture Daily Wednesday, May 22, 1940 Admit Product Cost Up If Neely Measure Passes New Industry Tax Faced in England Canadian Plan On Clearance Boards Wins (Continued from page 1) distributors, circuits and independents could sit down and settle the' issue by mutual agreement within the industry and without resort to legislation. As agreed, the board consists of two representatives of the circuits, two of the distributors and four of unaffiliated theatres. The groups will name their representatives within two weeks. The decision also provides for district boards in exchange centers to deal with priority and clearance under the rules framed by the national board, with headquarters here. Any district board decision is binding on the parties concerned, subject to appeal to the national board, for which a $25 fee is to be charged. Organization of the local boards will follow immediately after the appointment of the national board personnel. Annual meetings will be held in June of each year. The decision today approved negotiations undertaken six months ago, and the recommendations submitted by a special committee, including Nat Taylor of the Independent Theatres Association, M. A. Milligan of Paramount, and Rosenfeld. Taylor was chairman of todays' meeting. Report Purchase Of 4U' Securities Washington, May 21. — Acquisition of 7,200 University Co. common voting trust certificates by three of the corporation's directors in March was disclosed tonight by the Securities and Exchange Commission in its semimonthly summary of the transactions of officers and directors in the stocks of their companies. The report showed that J. Cheever Cowdin acquired 3,500 certificates, giving him a total of 4,500 ; Daniel M. Sheaffer acquired 2,000, making his holdings 20,500, and Preston Davie, New York, acquired 1,700, representing his entire interest. The only other transactions reported were the disposition by Davie of 70 shares of first preferred stock of Universal Pictures, of which he is also a director, and the acquisition of 100 shares of common stock, both representing his entire holdings in those classes. More RKO Foreign Men in for Meeting Five additional members of RKO's foreign sales organization will arrive here during the next few days to attend the company's annual sales convention, which opens at the WaldorfAstoria on Monday. The arrivals are : Max Gomez, Mexican manager, who will arrive by plane from Mexico City today; Fred Gulbransen, Panama manager, who will arrive by plane tomorrow ; Gus Schaefer, Caribbean district manager, who will arrive from Havana, Friday, and Pedro Saenz, Cuba manager, and Ned Seckler, home office representative for Cuba, who will arrive Sunday on the Jamaica. (Continued from page 1) exhibitor organizations, also will appear against the bill. Prediction of higher production costs was made by Nathan Yamins, Fall River, Mass., exhibitor, who told Rep. Carl Hinshaw that if the bill is passed he will buy only 'A" pictures, that the producers should make only 'A" pictures and that if they did so it would cost twice the present budget or more to put out the same number of features annually. Yamins is a director and past president of Allied States. Col. H. A. Cole of Dallas, president of Allied States, and Yamins concluded the presentation for the independent exhibitors, and between them pretty well dissipated any hope that the public groups might have of dictating the pictures to be shown, both declaring that they were in business for profit and that, in the last analysis, the box-office was the only important indicator of what the public liked. Under questioning Cole explained that independent producers cannot make pictures because the large circuits won't take them, thereby closing 40 per cent or more of the market and making it impossible for them to put enough money into films to make them attractive to independent exhibitors. Further, he said, the independents couldn't show them if they would because their playing time is filled with major company product. As during previous sessions, members of the committee hammered at the synopsis provisions, seeking to learn how they would operate without any great amount of litigation, as claimed by the proponents. Cole stood steadfastly by his belief that the law would be "obeyed" without any exertion by the Government, but Rep. Luther Patrick insisted that it was an Plan A.G.V.A. Drive Through Northwest San Francisco, May 21. — Kenneth Howard, national organizer of the American Guild of Variety Artists, is here conferring with Vic Connors, local A. G. V. A. agent, on plans for an organizing drive in the Northwest. Principal effort will be centered in Seattle and Portland, where hours and wages are "in a deplorable state," according to Howard. Rebellion has broken out in the ranks of the A. G. V. A. here, following dismissal of Buddy O'Brien, local business agent, on orders from New York. Denny McCurtin, local director, resigned in protest, and a petition is being circulated to demand an investigation of why the local board was not consulted prior to the action. C.E.A. Sets Details Of Summer Meeting London, May 21. — The Cinematograph Exhibitors Association today disclosed details of the annual Summer conference, which is scheduled to be held July 8-10. Chief features of the meeting will be a General Council meeting, golf tournament, civic reception, banquet, general discussions and an elaborate trade showing. "extraordinary" proposition and that the courts would be clogged with suits. Under questioning by Rep. Lyle Boren, whether it would not be preferable to screen pictures rather than to provide synopsis, Cole said screening would be a burden on the small town exhibitor. Yamins told the committee that the elimination of bad pictures would increase theatre receipts and returns to the distributors and, when Boren continued his questioning of the synopsis provisions, declared confidently that they would work out all right, since the producers usually complete their pictures well in advance of release and could split the year up into quarters and sell the films on the basis of synopses written after their completion. He emphasized that single selling is not required, and admitted that the exhibitors would want to continue to buy in blocks in order to be assured of product, although he personally would prefer to buy one at a time. Yamins went into the cancellation question and declared it is not only a "privilege" granted by the distributors when they desired, which could be eliminated at any time, but that it was so hedged about with restrictions as to be useless. He presented contracts to support his testimony that when a high price picture is cancelled another is moved into that bracket from below, so that the exhibitor "has to pay for the privilege" of rejecting an unsatisfactory film. "Trade practices today are more onerous than they ever were before," Yamins continued. Negotiations with the distributors are "hopeless" as a means of securing relief, he said, and "experience has shown that negotiations have always been costly to the exhibitors." Film Stocks Crash In Market Slump (Continued from page 1) preferred, off iyA to 99^ ; 20th Century-Fox, preferred, off iy2 to 14^4 ; 20th Century-Fox common, off % to 5; American Seating, off 1% to Sy2; Consolidated Film Industries preferred, off \y2 to Sy2; Technicolor, off 1 to 9yA. Also, Paramount 1st preferred, off \y2 to 65; Paramount 2d preferred, off j4 to 6y ; Paramount common, off 'A to 4%; Pathe Film, off % to 6; Columbia common, off % to 3y> ; General Theatre Equipment, off y2 to 8%. Other stocks which fell, although not to new lows, were Universal Corp., off yA to 3; RKO, off % to 5A Consolidated Film Industries common, off y$ to Y&. Bond trading included B. F. Keith, refunding 6s '46, off y2 to 101^ ; Warner, debentures 6s '48, off 1 to 83; Loew's, debentures ?>y2s '46, off y& to 101^. Honor Rita Johnson Worcester, Mass., May .21. — Mayor W illiam A. Bennett has declared a local holiday Thursday to honor Rita Johnson, featured in M-G-M's "Edison, the Man," on her homecoming. London, May 21. — All industry organizations have been invited to con-j fer tomorrow with the new customs and excise chiefs on the new purchase tax announced by Sir John Simon, then Chancellor of the Exchequer, in his recent budget. The conference indicates that the Government is considering applying the tax to the film industry. Sijnon told the House of Commons theA '.riis meant to apply to manufacturer , .Sid wholesalers, but not retailers. Obviously such a move would mean increased costs to distributors and exhibitors, with the possibility of recovering the added cost through admission increases. The Films Council, under Sir Frederick Whyte, chairman, at a meeting today heard a brief statement concerning the Board of Trade's film policy. Despite lack of an official statement, indications are that the whole matter has been seriously complicated by the gravity of the European war situation. The Government has not as yet given final consideration to the Board's plans for industry changes. Another meeting is expected shortly but it is considered unlikely that it will be conclusive. /V. E. Governors at Premiere of 'Town' Boston, May 21. — New England governors and their staffs, local officials headed by Boston's Mayor Tobin, and Hollywood and New York groups are scheduled to attend the world premiere of Sol Lesser's United Artists film, "Our Town," at Loew's State and Orpheum Thursday evening. The Hollywood group includes Frank Craven, Beulah Bondi and Fay Bainter, of the cast; Thornton Wilder, author, and Aaron Copland, composer of the musical score. From New York will be : Mr. and Mrs. Lesser, Murray Silverstone, Harry L. Gold, Lynn Farnol, Monroe W. Greenthal, Albert Margolies, Louis Hyman and Ed Goodnow. Oscar A. Doob and Charles Kurtzman will represent Loew's. The premiere will be preceded by a reception in the afternoon and a dinner at the Ritz-Carlton in the evening. The premiere will be broadcast over the Yankee network. Mayor Tobin has proclaimed Thursday "Our Town Day." Day to Study Chile, Peru for 20th~Fox Stanley J. Day, former 20th Century-Fox manager in Colombia, will leave May 30 for a survey of conditions in Peru and Chile, as special home office representative. Santiago Chiesa, formerly manager in Peru, has already taken over Day's former post in Colombia, while Charles Matzen, formerly assistant to Carlos Bavetta, managing director for Brazil, has taken over the management in Peru, after a temporary assignment in the post. S. S. Horen, managing director for Argentina, with headquarters in Buenos Aires, is due soon for conferences and a vacation. Later in the summer, Otto Bolle, managing director in South Africa, is due.