Variety (March 1932)

TneedAj, Marcli 1, 1932 PICTURES VARIETY 250 FEATURES FROM INDIES linker Says No Fox jioew Agreed films ese Edwardi R. Tinker, jpresldent of jox Films, Btates that he will re- main president as long as tb^. comr pany's present financiers retain control, that Loew and Fox will. Continue to operate as separate en- titles, . and that Nicholas ■. M. Schenck, of llioew's, will not Join the Fox directorate. The Fox head sets at rest the FoX'LOew working agreement re- ports. He admits being aware of them as rumors, but also character- izes them as 'Inspired by| parties who might be Interested In siioh a move.' There will be no Inter- twining of executives of these com- panies, since Tinker holds this would be as Illegal as an out and out consolidation. The companies will continue to work in. the future as In the past, as separate firms. A Big Job The 'Job' to be done on Fox will not be completed In 30 or 60 days,. c(eclares Tinker.. 'One of the troubles'of the buislhess now,' lie maintains,. 'Is that there are too many people with noses too close to the grindstone.' Of the Industry cbniplalnts of •banker cruelty,' Tinker repiled: 'The world Is fu . of alibi artists. There is not an Industry which does, not have them. They will always exist.' •. Economic laws are as applicable to pictures as to any other business. Is tlie banker's stand. His trip to the studios has made him even more certain of this. Costs must t>e kept in line with the gross, and as the grosses fluctuate so must costs. Basic Trouble The main trouble with pictures, more so than In other Industries, Tinker malnta:ins, Is that It Is tpo young to weather the present de- pression on Its own. Fundamen- tally'more sound, than many other Industries, Its business operation was Just the reverse. Added to this; volume went 6f£ ,iso fast that the Industry, could ^ not keep abreast of It. .Regulating Itself by that volume barometer Is considered by . Tinker one of the most important measures to insure fllmdom a safe voyage to an improved future. Bankers went into the automobile Industry when It was in worse con- dition than the picture business, declares Tinker. On how long be- fore the film business will again be able to use Its own feet will depend the time when the bankers, will re- linquish the saddle in favor of their former financial observation chairs, states the Fox liead. SarnofiTs Return Delays Franklin's Trip West . Harbld B. Franklin's Intention to start for the Coast this Friday (4) may be delayed until next week due to the return toniorrpw (Wednes- day) of David SarnotE from the south. Ftunklin, recently appointed as advisor to RKO, will go Into conference with SarnqfC, chairman of the RKO board. . Franklin's western trip is to look In at the fladlo studio and also to arrange his withdrawal as operator of the Paramount and United Art- ists houses in Los Angeles. FOX SETTLES WITH WURTZa Hollywood, Feb. 29. E. R. Tinker, now in the east. Is expected to return here in six or eight weeks to complete the Fox studio reorganization plan. Meanwhile, several observers have been detailed to check studio activities .and will report to him oh his return, providing material on , which to . base the • reconstruction. Chainman Indicates Small Chance of Tax Escape . Washington, Feb. 29. Despite virtual adoption of the sales tax, ndm.i.ssibn to all thoatros will be elGP.tcd for tlie so-called 'nuisance tax,'- Acting Chairman Crisp (p) Of the Ways and. Means Conimittee.revealed last week. Ah additional $250,000,000—over anO above the.amou.it to be brought in by a salea tax is needed, the Georgia Conpressman said—and-.the theatres look like goo.d pickings. Jackson, Miss., Feb, 29; The Senate Finance Committee Of the Mla.sissippi Icglsiature last week reported fiavorably upon a 10% amusement tax on all amuse- nients in Mississippi. ' ■ It IS fairly .certain that some form of anuisf-mcht tax will be passed the lej;iKlaturo now in session. Fox Films has settled Sol Wurt- zel's contract Wurtzel will leaVe the local Fox studios in April. In the settlement Wurtzel re- ceives one-third ' in cash and the balance in notes. Wurtzel also has a credit with Fox* Company of o.round $300,000. It Is the balance due him from the bonus of $500,000 left Wurtzel by direction of WHHam Fox when Fox sold his Fox Film control. Two hundred thousand has. been paid on account. This, entire amount was left with Fox by Wurtzel to be paid to him Jn monthly Installments to avoid largo income, tax assessment that would have followed receipt of total amount when awarded abbiit two years ago. ' 101 OF EXHIBS CROOKS, SAYS HESS, HAYS ATTY. Hollywood, Feb. 29. Picture producers, major and In- dependent, appeared before the House Ways and Means Committee Wednesday, and indulged in 'per- sonalities.' 'We have a class of exhibitors who are very crooked,' declared Gabriel l; Hess, general attorney for the Hays organization. Representative Sirovlch (D), of New York, chairman of the Com- mittee, said: 'We have received hundreds of letters from small pro- ducers accusing the big companies of sharp practices.' Hess stated that out of a total of 20,000 exhibitors In America, a mlninium of 2,000 or 10% . indulged in crooked dealings. The complaining exhibitors will be heard .next Tuesday when more fireworks are expected^ U ABOUT TO CLOSE ITS TOP BOOKING DEAL Universal thi . week is set to close the bigge.st. booking deal in tlie his- tory, of the company. It Includes a period of the. next three years with Paramount-Publix,'. Skpurrts and Warners. It is the final nibve of Phil Rcisman as sales . head for U. Universal, for the past yc.ir and a half, has gone from loss , to . profit until it's 1932 earnings, if they con tiniie along present figuring, will '.show a giin of $1..')00,000, Wlierc 1929-30 showed a loss of $.2,CO0.0OO; the Rtatchient fov '30-31 exhibits a profit of $700,000. NO EAISE AT OPTION TIME Option on E. Richard f^chaycr, .story editor, calling "tor a big in crea.'fe March ,15 at Universal his resulted^ in t*. notifying him that renewal must be at current figure. Schaycr so.far refuses. Optimistic Independents In- crease Feature Costs to $2S,0(>0 and Up for Dou- ble Features and Grihdsr— $50,000 and More for Class A Booking Attempts DRAMA OVER ACTION Hollywood, Feb. 29. Announcements of next season's production by members of. this In- dependent Motion Picture Pro- ducers AssRi indicate : that the indies will tiirh out around 250 fea- tures this seasph as against the 350 features scheduled by the major studios. This does not include a half-dozen shoestringera turning out westerns who are not members of the newly organized I MPPAi Nearly $7,500,000 will be spent on indie features If the programs go through. Westerns (15,000 All small producers have In- creased their budgets for the new season. With the exception of a few westerns, which will be bud- geted at around $15,000, few pic- tures will leave the studios wltiit less than $25,000 charged against them. . M. H. Hoffman, Monogram, Hal- perln .Brothers, Patrician, Ben Zeldman, Larry Darmour and this Barsky-rGoldberg combination all plan spending upwards of the 25 grand figure. In some cases going as high as $60,000. iBiidget; Increase la not because the producers want to spend more money but la a matter of ihaklng pictures which will give the Indies the toe hold they have desired so Icrig.' Feel Majors Uncertain AH feel that It will be at least three years before the majors bie- come settled In their effort to pro- duce consistently Inexpensive pic- tures. During that time every Indie hopes to get a major studio offer. Indies* attempt to get away from the usual 4jlckle production Is re- vealed In the drop-off of westerns. Of the 250 features scheduled only 70 are western and the remainder parlor drama. In previous years it has been the opposite. Programs Lineup . of independent product for this season, according to the producers, is as follows: Barsky-Goldberg: eight westerns with George Walsh and eight dramas. State right. Monogram, with Trem Carr, C. G. Burr and I. E. Chadwick pro- aucing; 24 dramas and 16 westerns. Monogram release. Halperih Bros. Six society dramas. Xo release. Larry Darmour: 12 dramas; State right. ■ Al Herman: six dramas. Peerless di.stribution. Allied (M. H, Hoffman): Eight Hoot Gibson westerns/ eight Monte Diue dramas and 12 dramas. Allied exolianges and State right. Patrician (Emil Jensen and Wal- ter Camp): Six dramas. No re- loa.se. Burton King: Eight dramas for Big Four.. ■ ' Emp.ire (Charles .Hutchinson): .SI.K action dramas. State right. .Mannon's. Westerns Supreme (Al Mannon^: Elglit westerns with Harry Carey. Art- cla.ss (AVci.ss Brothers) di.stvibutoi-s Morris, "chlank: Kiglit- dram.is. Ng relea.se. Natural pictures (Spitzer-Smltli): T.wo afiventure pictures for. T. P. J-:pios and six features. State riglit. Richard Talmadge: Kight action di'iir.ias. George Weeks: 24 action dramas. State right. • . Mascot (Nat Levlne): .^ix fea- tures and throe serials. Sl;ite right. James Cryze, Ltd, (Sam Zierlt-r): to Would Close 25% (tf State Ikat^ For Hoover Hollywood, Feb, 29. Metro's publicity department lias been put to work thinking up ideas to aid the re-election of President Hopyer. Concentration . follows. a memo from the front office .aslclng the department for ideas, and suggestions regardr ing material for .. speeches, newspaper ihtervlews and _ radio broadcasts to be deliv- ered by Louis B; Mayer. Phfl Is Hollywood, Feb. 29. Financing of major lot execs, who are going into independent produc- tion when contracts terminate, rather than take a cut, Is'being of- fered by Phil Goldstone, who will also continue to back present Indie producers. Some production will be of caliber higher than the state- right grade, with Goldstone saying that he can easily find big league release for product that deserves It. Latest deal for the bahkroiler Is with Max Marcln, who won't renew at 'Paramount, making inistead two of his own stories with Goldstone's financial support. Latter also has been approached by ' Wheeler and Woolsey, and Is willing to back them If they get a satisfactory di- rector and story. Two Goidstone-backed indie pro- ducers just returning from New York, where they arranged distribu- tion for their first prodv|ctions, are Emil Jensen and Bennie Ziedman. Jensen is propping a follow-up to 'Silver Lining,' which got a United Artists' release. Has an eye on a similar outlet for ./the next. Zied- man will make a second for the state-right marltet. 'NO BROOKHART TALK,' PRODUCERS WARNED Hollywood, Feb. 29. With all wire services and local newspapers attempting to get the picture indu.itry's reaction to Sen- ator Brookhart's tirade against pic- tures, the Producers Ass'n. hits ad- vised the studios to lay low on com- .hient and le*: the association do the talking. Papers have also been contacting foreign players for statements anent the proposed legislation to exclude foreign players. Studios have ad- vised their pjayers to say nothing. ERPI MAY CIVE INDIES BREAK ON SOUND FEES J.os Angeles. Feb. 29. Erpl will lieod tlio indoiiondcnts', (lemancl for re'lucpon in sound licen.se foos on ijictijres co.stlng undfi" %'<U.f\[)(\, aliliongli Ihi; reduc- tion fiKures arc not known lierc. Pi'oducer.s ai'c now paying $S00 per ref>l ■ regardloss of production l)ud?et. Approved by both political parties, a threatened 10% New York state tax on all amusements has raised Its iiead as a new worry for the ih- dustiy. with the legislature ad- journment only 12 days off, the pro- posed 10% tax on all grosses la described as- tlireatenlng the eco-. nomic structure of tlie entire, .in- dustry. W"brse than any Federal measur© so far contemplated, theatre heads, and independents of national and local organizations have ..worked fieyorlshly over the week end es- tablishing fllhidbm's defensive cam- . paign. Yestei-day, midnight (29), mass nrieetihg of all theatre managersIn ; the New York, Albany and Buffalo! isones were ordered following a gen- eral session of 30 circuit heads, lawyers and exhibitor , leaders hi New York Monday noon. The session of executives, held In the office of Hiram S. Brown, was over in less than an hour. A comr plete . campaign was wot'l<ed out, "This resulted In the Immediate en- training of Charles. Pettijohn, for Albany, with Cliarles O'Reilly, head ' of the T,O.C;C., coihmlssloned to head tlie attack in New York.. Pettijohn, so 111 with the flu that he Was unable to go to ills home in Rye, got out of bed In a New York hotel against the advice of. physicians to make the trip. The air as well as screen and street will be used if word to 'let go' Is sounded from Albany by Pet- tijohn tonight (1). Broadcasts al- ready are being preparM as are film trailers and throw-aways for the street. Inside earnings of tlie Industry for the first tinie wlir be bared tp (Continued on page 17) KENT IS BACK FOR FOX TALKS S. R. Kent is back In New York from the soutli with his future pic- ture company affiliation undeter- mined. It Is believed that K^ent will spend inost of the current week talking to the Fox-Chase group, but that anything Immediate will develop as to his joining the Fox organiza- tion Is considered doubtful. With the former Paramount-Publlx exe- cutive still In a stage of recupera- tion from a recent attack of In- fluenza, It may be a month or more until he again becomes active. The possil)iUty of the reopening of RKO .and Warner negotiations, as regards Kent, continue a matter of conjecture. Kiglit '(■;.':n-(-s. Ptate rijiht. Henry Goldstone: TOigiit wo.*il'rtis Willi Jiicl< Ilorfie. Slate riglit. Ben Zeldman: fealiiiics. . .Vo reU-as'-. Faragoh Possible Head Of U legit Ventures The, Carl Lacmmlcs reached New York .Tliur.«d.ay. (25) and among the first, q. t. confabs was Junior- with Franci.s Kdward Faragoh, until izr- centiy U contract writer. Univcrsai Is after a local legit producing out- let with Faragoh possibly.. head- ing, it . - V. Latter was a founder Of the New Playwright's. Insurgent Greenwich Village legit groiip, before going Hollywood. On the coa.st he helped dialog 'Frankenstein,' 'Iron Man* and 'LUtie Caesar.' KatzWest .Sam JCatz, of raramount-PubliX, will leave f" tlie Coast this week to take :.a look fit the Paramount studies, ifis departure is scheduled for Thmrday (^i). . . Expected Ik; will be gone about three weel<s.