Variety (April 1933)

Tuesday, AprQ 4,193S Pier ES GROSSES UP, CUTS M GO How Indies Bungled Big B way Chance Indicated by Fox-Roxy Product Deal Indies bungled their own chance for a first-run show case at the old Roxy by asking too much rental and attempting major company tactics force the house Into a different policy. As a result, the old Roxy currently slips away from indie Alms and back to major company product Friday (6), with several Fox pictures booked consecutively, The Fox film move, In booking three, the old Roxy may Impel other major companies to open up their distributing facilities to the old Roxy management. The Fox move is strictly a business proposition, with the present Fox administration aiming to sell its product where It will bring In Income. When the major companies with- held product from the old Roxy on the grounds that the house scale was such as to affect the com- pany's affiliated nelghbs, or the minor theatres of New York's metropoli- tan territory in general, the indies hopped on this situation as a means to boost their r rices for product to almost prohibitive rates. Others aped the majors and demanded that the old Roxy shift Its scale to a higher level. Scale Is 26 and 35c weeks days and 66c top on week- ends. Indie excuse was that by selling to the old Roxy at the current b.o. scale they might forfeit the big chain accounts. With major product back In the old Roxy, the Indies have '-is op- portunity for first-run showings on the main stem. Some of the Indie rental demands ran as high as $e,OCO for a week's' run. They never got It, however. Fox pictures scheduled for the old Roxy are 'Infernal Machine,' open- ing Friday (6); 'Hello, Sister,' and •Humanity.' Same films are also slated for the Fox Brooklyn besides an additional Fox picture, 'Bond- age.' No Legal Aspects The Fox attitude is stated to have had nothing to do with the current visit in New York of two govern- tiient agents from the Department of Justjc Investigating alleged prejudiced bookings against the old Roxy. Receiver Howard Cullman, head of the old Roxy management, made such representations In a formal complaint. The Fox deal with the old Roxy and the Fox Brooklyn was made be- tween John Clark, Fox general sales manager, and Harry Arthur, operat Ing consultant to Receiver Cullman, and, who operates the Fox Brook lyn, independently. Major company product back Into the old Roxy ends a 10-week period for the old spot during which none but Indie product was available, with the one exception of a single Paramount film, 'Heritage of the Desert,' over which the old Roxy management and Par currently are at legal odds. The curious indie attitude is ex- emplified by one company that had the chance to book the old Roxy at $2,500, one week, on a picture, but Instead took a percentage arrange- ment for the May fair, Broadway. The Mayfair booking resulted In a rental fee of only $600. Rentals, Staff's Co-Op . Albany, April 3. The Empire and Rialto at Glens Falls wfnt on a co-operative basis at the close of business last week. The management and employees alike will share In both houses. Films will be hired on a sharing basis with the theatres. The Rialto, playing vaude, will hereafter operate only with first run pictures, while legit productions and vaudeville will be switched to the Empire, heretofore, a picture house. BelDe's 400G Par Budget; All Plrod. Costs Cut Hollywood, April 3. Paramdunt's budget for the C. B. DeMille, special 'End of the World,' which goes on next season's pro- gram, will be $400,000. This is an all time low for a De Mllle splurger which. It Is pointed out, shows trend of the times as far as studio budgets are concerned. In former days studio would nevet- mention anything short of a million dollars when planning a film of the type intended for 'End of the World.' In lining up the new season's product the average budget aimed at will be $250,000, with the bulk of the pictures expected to come under the wire for less than $176,- 000. The $260,000 average Is about $25,000 lower than product for the current year. Season before the average was $376,000. FIVE METRO PIX NOW AWAIT UNION iJm That's a Rise of $4,000,000 at the Country's B. O.'s Since the Moratorium— This Is Sufficient to Re- scind and Absorb All Cuts —Four Weeks, Thus Far, Has Saved Enough for 25 Major Productions $28,000,000 A WK. IN '32 With a national jump in theatre attendance from the moratorium weekly averaBS of 64>000,000, to a present 80,000,000, the country's box office is officially figured to have risen from $16,000,000 to $20,000,000 a week. With distribution returns proportionately better, near nor- malcy is already reflecting itself in sporadic company rescinding of per- sonnel cuts. Although the summer, a banker- less production era, and the general depression are still ahead, film lead- ers are hopeful th.-i,t the last three De Sylva's Fox Musical Hollywood, April 3. 'My Weakness' will be the title of the first Buddy De Sylva musical under new Fox contract, to be di- rected by David Butler. Richard A. Whiting and Leo Robin wrote the songs. Picture will have chorus of 20 national beauts, who will be ob- tained through contests conducted in metropolitan centers. KBS' 2 VIA RKO Hollywood, April 3. Kelly, Dischoff and Saal, their contract ended with Earl W. Ham- mons, will release their next two productions through RKO. First will be 'The Big Brain,' with the next, Deluge.' Hollywood, April 3. Metro's list of pictures post- poned pending the lATSE's de- cision on the eight week pay cut has mounted to five,rwlth no shoot- ing scheduled on the quintet before next Monday (10). Union decision is expected on or before this date. Pictures now ready to go but awaiting the union stand are 'Night Flight,' with John Barrymore, Clark Gable, Nils Asther and Jean Hersholt, Clarence Brown direct- ing; 'Stranger's Return,' Lionel Barrymore and Miriam Hopkins co- starred, King Vidor directing; 'Strange Rhapsody,' Kay Francis and Nils Asther starred, Richard Boleslavsky directing; 'Midnight Lady,' Loretta Young and Franchot Tone In the top spots, William Wellman directing, and 'Tugboat Annie,' Dressier-Beery, Mervyn Le- Roy megglng. Jaydee's 'Big Things' Hollywood, April 3. J. D. Williams, in town for the past week. Is, as usual, surround- ing his activities In mystery. Says he has big things coming up. So far, all that could be learned of the big things Is negotiations between Williams and Charles Far- rell for the actor to go under con- tract to Williams with a view of the latter selling the contract to one of the major companies. CoL Orders Cuts Off Late yesterday afternoon Co- lumbia Pictures Corp. ordered the salary cuts rescinded at once. This is the first maojr company to take this step. This means that when the ghost walks at Col on both coasts and throughout the or- ganization at the next ghost trot, it won't waltz in three- quarter time or any other rhythm, but at the former 100% salary basis, prior to the industry's decision on percent- age slashes. The Columbia board, with- out any other industry consul- tation, deemed its 6wn status didn't warrant further econo- mies. Queried as to the amount of saving which the cuts repre* sented, Harry Cohn, president of Columbia, kiddingly razzed its economy value^ professing not to know the mathematics, and at the same disclaiming any personal action in matter, stating it was a general Col board move. Par Trustee s Election Postponed A Week; More Legal Entanglements Col. Wants Powell, Fields Hollywood, April 3. Columbia Is negotiating for Wil- liam Powell and W. C. Fields for 'Apple Mary; the retitled 'Madame La Guimp.' Picture will have Jessie Ralph in the title role, with Frank Capra di- recting. or four months of 1933 will at least reach the $28,000,000 which, officials now figure, was the average weekly gross, nationally, during 1932. . Total current »eturn to producers and distributors of ma^or and inde- pendent companies in the U. S. is this week climbing to $5,000,000. This, according to general producer officialdom, means an increase of fully $1,000,000 a week to distribu- tion which, in itself, is more than enough to absorb the total salary slash which was estimat-i to hav run into $800,000 weekly. PerBonnel's Ciils "The-flnancial improv.ement^f-the industry as a whole does not mean that all individual companies and theatres are finding their difficulties materially eased. Second and third bracket execu- tives will probably be restored to their original pay. The picture masses were taken care of when salaries of $50 and under were ex- empt under .the modification. But, it is strongly hinted, there will doubtless bo salary adjustments with other individuals whc are fig- ured by company heads to have been over-paid at all times. Impaired morale of the industry is conceded to have provided the otrongest pressure ngain«t-all In^ tcntlon of keeping the cuts perma- nent. But four weeks of the cut already have conserved sufficient cash to mfiet the budgets of around 85 major features. Laemmle Trip Off Hollywood, April 3. With several Important produc- tions coming up, coupled with the Hitler situation, Carl Laemmle, Jr., has called off his planned trip to Germany. Instead, he will take a short vacation on the coast, and relieve his father of production details. Young Laemmle was to take a three months' vacation abroad, with his father In charge of pro- duction, aided by Henry Henlgson. Moore, Skouras, FWC Co-Trustees; Kent Coastward Los Angeles, April 3. Attorneys for Fox-West Coast creditors, after conferring over the week end and until noon Monday (3) agreed on William H, Moore, at- torney, and Charles Skouras as two of the three trustees for the organi- zation. Considerable debate Is on now on the third, with A. L. Gore and John P, Treanor, one of com- pany receivers, belnp eliminated from those, proposed. Selections now are between H. O. Davis, for- mer general manager of Universal, and Frank H. Nichols, former presi- dent of the Continental National Bank here, as the third man. Hearing scheduled for this (Mon- day) afternoon was postponed until Thursday (6), at which time voting will take place. In the meantime Sidney R. Kent and a New York party are due In on Wednesday night, and will go Into conference with creditors' committees for the determination on the third man. Film Exchanges, which had op- posed Skouras as trustc^e, last Fri- day changed Its opinion this morn- ing, when attorney Joseph Loeb, representing these creditors, agreed to the naming of Skouras. Although the Chase-Fox-Wesco interests had agreed with minority creditors of Fox-West Coast to get together in an attempt to make an amicable selection of a trustee for the bankrupt, opposing groups were at swords points all during the meetings last week. Indications were that a battle royal would take place when voting on the official takes place Thursday (6). First creditors' meeting, held March 29, was continued until to- day (3). Nothing was accomplished at the first con'ab, since majority and minority attorneys agreed to convene privately In an attempt to determine upon a suitable trustee. They stipulated that if one was not agreed upon by today, they would come before Referee S. W. McNabb and have him call an election for April 6. All officers of Fox-West Coast, as well as people who have been dealing with them, have been sub poenaed by the minority to appear for questioning regarding deals of Chase, Fox Film anl National The- atre Supply Co., and the relation- ship of these firms with the bank- rupt. Also to be scrutinized Is the alleged attempts of the bankrupt, the majority bill-holders and the receivers to corner sufficient claims to elect their own choice of trustee Understood here that the Chase- Fox group was ready to abandon any attempt to seat Chirles Skouras as trustee because of the overwhelming objection of the minority to any member of the present regime. Their. choice was said to have switched to John P. Treanor, the other co-receiver, with the Idea of having him engage an experienced operator to run the circuit, but that situation clarified itself on Monday. Admission that the 12 banks holding notes of Film Productions, Inc., for the $13,309,932 loan a year ago, would probably get a prefer- ence In liquidation of Paramount Publix In bankruptcy, highlighted developments yesterday (Monday) as election of a trustee was post- poned a week until Monday (13). This admission came from a Far attorney, Godfrey Goldmark, of Rosenberg, Goldmark & Colin, on questioning "by Justice Chase In the Circuit Court of Appeals. This development, coming sud- denly, had the Immediate effect of complicating the status of the Par- amount estate, with doubt as to whether there will be adjudication of the voluntary petition asked for March 14, or adjudication of the , Involuntary petition filed Jan; 26 by bondholders, the same d^te 4>n which 'P^-P Itself was declared In etiuity receivership. Election of a trustee In. bank-. , ruptcy, under the voluntary pro-, ceedlngs, which was scheduled for yesterday .(Monday) was postponed a week by the Circuit Court of Ap- peals on reserving decision as to whether the Involuntary petition should be adjudicated Instead . . .^^ Application before the Circuit Court asks for a writ of protalbN tlon to restrain the U. S. District Court and Referee Henry K. Da- vis from continuance' of the volun-< tary . petition and election of a trustee thereunder, as well aa a writ against Judge Bondy.to con- (Continued on page 46) .-. . Industry Urges Rolph Veto of Bin Relieving: Agents of Supervision - Hollywood, April: 8.: Following a protest by industry leaders. Gov. James A. Rolph, Jr,/ is expected to veto the Redwine. amendment tp the state {employment agency act which would remove state restrictions from film agents In their dealings with actor, writer and director clients. Chief film argument against the amendment is that It would remove from the jurisdiction 6t the em- ployment law all agents handling- people earning $200 and more- weekly. Bill, passed by the House and'- Senate, is said to have been lobbied through quietly by George Franlc and his attorney. . . Would Legalize Verbal Deals Signing of the amendment. It is argued, -would give legality In court- to so-called verbal agreements in' commission cases, several of which type have been thrown out of-court within the last year. Jud^«0 pointed out in their decision that as-' the agents come under the provi- sions of the employment law nO' verbal agreement has any standing,' inasmuch as the statute specifically' states that commission agreemehta must be In writing. With Industry leadership Interest in the Redwine amendment there has come a stronger agitation among agency clients for the in- stitution of a code of practice for agents such as was recently aug« gested by the Academy. This body is working toward such a cod^ which would also entail mertiber- ship in the organization for the 10- percenters and the establishment o£ a standard form of agent-client con- tract. G. B. Stem Sailing Hollywood, April 3. G. B. Stern finishes her writing contract at Radio and sails (roni( ^ New York April 12 for London. .She was at Hadlo for six montb^i/