Motion Picture Daily (Apr-Jun 1940)

... I ^ ~ M P. PRODUCERS & DISTRIBUTORS OF AM 2 8 WEST 44TH ST. , NEW YORK , ^© NOT REMQ^a >N PICTURE INC Picture Industry First in VOL. 47. NO. 104 NEW YORK, U.S.A., MONDAY, MAY 27, 1940 TEN CENTS tHramount to Sell More on Percentages Balaban Gives Studio 'GoAhead' Signal Los Angeles, May 26. — More percentage deals than ever before will be sought by Paramount's sales force during the new season, it was indicated in addresses to the company's annual sales convention at the Ambassador Hotel here over the weekend. Elimination of low budget productions, with the resulting larger appropriations made available for the fewer number of pictures on Paramount's new season schedule, justify the more extensive percentage selling policy, it was pointed out. Reported company retrenchments in advertising, publicity and exploitation were denied by Robert M. Gillham, director of those departments, while (.Continued on page 5) Barney Balaban Greenthal West on UA Pre-Selling Unit The organization of United Artists' new pre-selling bureau, which will conduct complete exploitation campaigns on United Artists' new season product throughout the country, will be completed by Monroe Greenthal, (Continued on page 5) Senate Orders Probe Into Location Fees Washington, May 26. — Investigation of Interior Department charges of up to $500 a day for making films on Government lands was assured Friday when the Senate adopted a resolution by Sen. Pat McCarran of Nevada with an amendment by Sen. Henry F. Ashurst of Arizona for a probe of the fees. The study will be made by the Senate Public Lands Committee, with a fund of $10,000. Depinet Outlines New Program to Convention Today RKO's three-day annual sales convention will open at the Waldorf-Astoria this morning with about 300 in attendance. Ned E. Depinet, vicepresident and distribution manager, will preside, and George J. Schaefer, president, will be one of the principal speakers. Feature of today's program will be an outline of the new season's product by Depinet. The convention will open with roll call by A. A. Schubart, manager of exchange operations. Announcement of promotion and award winners and discussions of current season's product will occupy the morning session. Depinet's product discussion this afternoon will be followed by talks by J. J. Nolan, vice-president and studio head ; S. Barret McCormick, director of advertising and publicity, and Perry Lieber, studio publicity head. Others scheduled to address today's session are: Roy Disney, Hal Home (Continued on page 6) Thacher Will Open Defense Trust Case Judge Thomas D. Thacher, head counsel for Paramount, has been designated to make the opening address for the defense when trial of the Government's New York anti-trust suit opens before Federal Judge Henry W. Goddard in U. S. District court here next Monday. Judge Joseph Proskauer, head of Warner counsel, will make the closing address. The designations were decided upon recently at a conference of defense attorneys on trial procedure. Majors Reject Plan To Resume in Italy New proposals for a resumption of American distribution in Italy, resulting from the recent discussions between F. W. Allport, M.P.P.D.A. European representative, and Italian Government officials in Rome, have been rejected by major companies here, it was learned over the weekend. The local action does not signify a collapse of the negotiations, however, it was emphasized. Counter proposals are to be made and forwarded to Rome for further consideration. Local 306, Empire Start Blitzkrieg The annual Spring offensive (military term, blitzkrieg) between Local 306 and Empire State Operators Union has affected seven houses in New York City, with picketing and counter-picketing under way. The outbreak results from another breakdown of negotiations for a merger of the two unions, which has been on the griddle, off and on, for several years. Local 306 offered to take in all employed Empire members but only a few of the unemployed each year. Empire rejected the proposal, and declared that it is out to displace Local 306 at as many theatres as possible. Local 306 is picketing the Continental on Broadway; Livonia, Brooklyn, and Mosholu and President in the Bronx. Empire is picketing the Tiffany, Brooklyn, and the Tuxedo and Prospect, Bronx. See Little Hope of Forcing U.S. Production in Mexico By JAMES LOCKHART Mexico City, May 26. — American distributors here see scant prospects of success of the national picture worker union's demand upon President Lazaro Cardenas that a law be passed to force foreign distributors to invest 25 per cent of their annual profits in financing national film production. The distributors believe that this is no time to bring up such a matter, with the war making it more and more difficult for the industry and the possibility of a shortage of pictures. The local press rather laughs at this proposition, saying in effect that the union has a nerve to make such a demand. The newspapers report that there are 20 Mexican-made pictures that cannot be marketed anywhere because they are of such poor quality. The American distributors discount the union's estimate that their vearly profits are from $1,333,333 to $1,666,666. They declare that after settling with their home offices, paying taxes, salaries, rent, etc., there is only a small profit in the business. Neely Bill Will Ruin Overseas Field: Wobber Arbitration Is Solution, Brandt Testifies Washington, May 26. — Enactment of the Neely block booking bill would ruin the foreign market for American films, Herman Wobber, director of distribution for 20th Century Fox, told the House Interstate and Foreign Commerce Committee on Friday as the second week of hearings on the measure concluded. Other opponents of the bill who entered their testimony Friday were Harry Brandt, New York circuit operator and president of the New York I.T.O.A., and Judge Roy L. Walker of Lampasas, Tex., president of the Theatre Owners Protective Association of Texas, an M.P.T.O.A. affiliate. Brandt urged arbitration as the solution to trade problems. The committee tomorrow will open its third week of hearings, hopeful of concluding them by June 1, with many members of the group apparently convinced that the bill before them is not a vehicle which will bring peace and (Continued on page 10) Herman Wobber RKO Deal Set for 10 Cocalis Houses An agreement on the deal by which RKO will take over 10 Bronx theatres from Cocalis Enterprises is reported to have been reached on Friday, with closing of the deal expected within the next few days. The deal is for the Allerton, Castlehill, Crest, Interboro, Marblehill, Pelham, Pilgrim, Rosedale, Ward and Yorke, all in the Bronx. The deal leaves the Cocalis circuit with about 18 theatres, most of which are in New Jersey. Negotiations have been in progress for many months, having been forestalled for a time by the necessity of obtaining Federal approval for the transfer, and by other problems.