Variety (Mar 1934)

T»w j<3ay,^ Mftrch 6, 1934 PICTmiES VARIETY Fiinn Submits His C A. Report; MOW Wase Earners in Pi( The report submitted to the NRA by John Flinn, executive isecretary for fllm code. In Washington yesterday (Monday), deals mainly with additional em- ployment and Increased overhead. It observes that 'the time has not yet .arrived for criticism br praise.' Sohie 389,000 wage. earners ih films aire figured directly .affedted by the code; Ince the. President's hours and wage scaile has been in effect theatre overhead hias In- creased between 10 and 15%. Costis of major production are figured be- tween 25% and 35% higher, whll© home office and distribution piy- rolis are: figured to be In the neigh- borhood of $700,000 higher at tlie close of this year than they were in •33. Report .does not deal specifically with the status of the box-office, veering from, any attempt to cal- culate, a pierbentage of increase. In- dividual instances, howeyer, ar^ cited. Inter-State circuit Is pre- eeiited as an example as to Its In- crease of grosses since It combined vaudeville units with pictures; References are made to other but uiinanied circuits* These have to do with iiicr.eased payrolls. Flinn's Outline In reviewing the work of. the Code Authority, Flinn toucheia upon the various divisions of the industry as follows; 1. .Motion Picture Production: tiaboi\ Complete rciassiflca-tlons of studio labor other than artist labor> is set. forth with wage Sched- ules, most of which arie protected mutually by period contracts with labor organizations. Artists. Standing committees, nu- merous in-personnel and In number are provided for, members of which are appointed by the Code Authority In some instances, More than 15,000 artists ranking from classified exr tras to writers,., directors and screen stars," are given representation In most cases equally with studio man- agement on these committees and boards. Other relationships, here- tofore governed solely by individual contracts between artists and studio .employers, are subject to reglilation arid control under the Admini.strar tlve Tnachinery of the Code. 2. Vaudeville and presentation actor labor: The Code proyldes for minimum wage scales for artists and maxi- mum hoiir limitations for some art- ists under numerous classifications of talent, appearing on stages In. vaudeville and motion .picture thea- tres. A survey recently completed by the code Authority reveals that more than 4,000 such artists are at present actively engaged in their profession, most of them moving weekly or more:frequently from one. theatre to another. 3. Distribution: More than 700 Individual film ex- changes are situated, throughout the United States In more than 40 bltles, called distributing centers. Half of these represent branch offices of national motion picture distributors; The remainder are Independent ter- ritorial distributing offices. The ■Code- hiaikes maridatory issuanc6 of fire protection regulations, promul-r gated by the Code Authority ap- plicable to all of thisse distributing offices. The Code provides machin- ery for regulation of trade practices affecting tiie functions of the fllm exchanges.. 4. E^^hibitiOn: There are ih active operiation be- tween. 14,000 and rlB,0rf0 theatres in the United States, of which more than tworthirds are In competitive zones; The Code contain^ detailed schedules of theatre labor aind. wage <ilassifications'; also proyislpns . for airbltration of wage disputes. Un- fair trade practices of 'numerous kinds are prohibited by the Code and machinery of a; volunteer co- operative nature Is provided for the settlement of protests and grievance between theatres and between thea- tre.s and exchanges. Singers' Guild Wants to Be In on Cdde^ Too Hollywood, .March 5. Singers iaulld, AFL affiliate,, wants .to be included In picture code and has filed , a new brief with Charles H. Cunningham, local NRA chief, following, Sol iRosenblatt's ruling to the code extra committee that sing- ers weren't In ihelr jurisdiction* Singers* claim is that warbling Is equivalent of essential story lines and should entitle them to mini- mum of |26 per day. If All Together Film reaction to President Roosevelt's message to the NRA code convention in Wash- ington yesterday (Monday) was that pictures ca.h stand fewer; working hours and higher wages if ail Industries are so affected almultaneously. This was also the stand taken by some of thei repre- sentatives of the .picture code before leivlng for Washlng- toh Siunday night.. Drastic Code Changes Are Not Anticipated in Wash. This Week; Allied Wants KuykendaD Off C.A. Allied Reps Duck at 2 CIh Grievance Boards Set U|i; 5ft Cases on Tap liica:go, , reh 5. . Code authorities have finally, ap- pointed the two boards to settle grievances and clearance and zbri*- irig. Appiroxlmately 50 cases are uri- derstood awaiting, the board's start next week. Most of the sq^uawks will come under grievances; exhibs complaining that they are unable to secure' sufficient product. This Is due in the main to the overcrowd-. Ing in. certain neighborhoods locally. As fiar as clearance and zoning there Is little difficulty in this ter^ ritory, the present release system being admittedly the finest and most equitable in the country. Grievance board setup has Charles Regan, Paramount exchange, as af- filiated distributor; Irving Mandel, of Security, as indie distrib; James Coston, Warner theatres, for circuit operator, and Na;te Wolf as- Indie exhibitor. Lowe B. Maison, former state sena;tor, is' the fifth member of the board. Zoning Setup On the clearance and zoning board are Felix Mendelsohn, Metro, afllllated distrib; Henry Herbel, Universal, as unafl^Uated distrib; Walter Immerman, Balaban & Katz as circuit operator; Jack Rose, sis iridependerit exhibitor; Jack Miller, of Exhibitors Association, for the circuit organization, and Aaron Saperstein, Allied, for the independ- ent exhibitors association; Outside member of this board is Judge Hugo Friend. Wrangling over, the boards have suddenly subsided on the row. Boards in both, caseis are agreeable to both big and small exhibitors. In fact, it's the first time! In local history that "both sides of the pic- ture fence have agreed on anything. Par's Hob Huddle Joliet, 111., March 5. Mrs. Irma Barnhardt, daughter of Louis M. Rubens, president of the Royal Theatres Co.,. Joliet, 111., has WecTsuit for divoFc^e"Tjrlilh: John"C: Earnhardt, alleging desertion. They were married in 1930. Barnhardt Is employpd by a Joll'^l mortuary as an einiialmPi', 200 DUD COMPLIANCES BEING RECEIVED DAILY The Filni Code- Authority is daily 1 receiving corrected blanks In a batch of 200 dud compliances. These I were submitted, with qualifications inserted ..by Various^ signersi They 1 were automatically rejected, as the I code must be accepted Without qualification. The C.: A. in sucli instances again has to inform such signers of their I efror 'and to enclose new blanks for their .sign'atures Expect Dictator to Be Appointed By AIGed Ont in N.W. Minneapolis, March B. As a 'Mussoilnr to dictate to tiie territory's independent exhibitors what films they shall buy and what prices they shall pay' for them. Northwest Allied States Is expected to appoint F. W. Murphy, iattorney [ and Democratic leader, as general manager, with full power to act In all matters. At the lairgest attended meeting I in the organization's history, a inMtv committee of six was, appointed to ^ , . . devise a better plan of functioning likewise failed to present any views ^^^^^ the "Mussolini.' Corn- on these two problems. mlttee comprises SJddie Ruben, Jo General overhauling of all codes s^ph prledman, Abe Kaplan, Bonnie in lihmediate future was promised ggj^flgia H. b! Smoots find WUl at. the opening session by Gen. Qjajggj;^ Murphy. wa? recently en Hugh S. Johnson. Ilm pact,^ along^ gaged by Northwest Allied as gen with other operating agi^eements, grai counsel and legal adviser wiU be perfected to remedy these Steffes, president of the or conditions Instead^ of <>Peninf ganlzation,. confessed that the body codes, it is expected modifications ^^^ ^^^^ and amendments will be made by i " ^ r . . President Roosevelt in the form of amendments to his original execu tive drders approving the docu ments. Johnson's List Among points listed by Johnson for attention are: iperfected means-Of financing code authority work t9 prevent gouging and racketeering. Further shortening of houts and . Washington,-March 6. Sol Rosenblatt demonstrated last y^eek at NRA's 'field day for criti- cism' that he was waiting for the Allied States Association. Scheduled, to appear before con- ferences on code adinirilstratlon and prbblenis of small., enterprises, Abrain F. Myers, Allled's chief counsel; Sidney Samuelson arid W A. Steffes, Myers' principal hench- men, passed up their opportunity to speak after word-got airound that Rosy would be present and was primed with number of questions. While no explanation was forth coming from the Allied" contingent 'about their failure to-show, It was understood Myers decided that; the best strategy would- be to file a, brief and escape any ta,ngle with the code boss. Nathan Tamlhs, in die member of the code authority. On return ifrom Miami of Sam Dembow, Jr., and T. Frank Free- man in a week or so, a meeting will be held in Boston with Publlx New England operators and partners to discuss policies, outline home office admi. lstration, etcj It wUl be sim- ilar to the Atlanta, Dallas, Des Moines . and . Jaclcsonville confer- ences already held. Ralph A. kohn. Par v;- in charge of theatre operation, will preside at the Boston meeting, at which another member of- the ad- visory, cpmiplttee of six .will be chosen. Kohn returned to New York Friday (2). Advance Is that Martin J. MulliUi veteran publix operator, will be picked to ioin ifi. Vi Richards, Ka.rl Hoblitzelle ,A. H. Blank and N, L Niathanson, who were prevlouslj' elected to represent, their . terri- tories on the - board, , Sixth oh the committee will probably, be Bairney Balaban. George . J. Schaefer, Par's, distri- bution chieftain, is expected back in-New York . tomorrow (Wednes day) from Miami. He was delayed by a bad cold^ Inimediately on get ting back, Schaefer will take up new program plans for 1934r'.3r.. TreiidWs Visit George Trendle was in New York last week talking oyer film deals with- Metro and. discussing his De Trendle's six-month deal for oper atlon of the Detroit Publix housed comes up for renewal, consideration -in about a month. was a 'failure' as a leader. Other exhibitors cdmplalned that the northwest was th* country's sap territory as far as film prices are concerned and that its- exhibitors pay much more for films than those in the Chicago and Milwaukee dis- tricts. The. organlzatldn expressed the determination to handle ho more pictures on a percentage basis. One member announced his in- tention of personally checking on raising of wage scales to Increase any fellow exhibitor who signed a purchasing poWer and expand em ployment. Uniform method of providing government representation. Greater voice in administration to both labor and the consuming pub lie Better means of insuring com contract to pay 40% of the gross on any - picture, and declared lie would see to It that such exhibitor didn't 'Cheat' on the producer. Organization went on record unanimously In opposing.. the" new industry code and In refusing to sign It. Six of the more than WO pliance with code, provisions and exhibitors present- eald they had for strengthening power of author- signed, but announced they would ities. withdraw their assents. Answers Greater protection for small en- to questionnaires sent out indicated terprlses and prevention of niajor that 36 of 280 exhibitors in the stat« domination. | had signed, . Steffes said Fipre Mibs (Fom Three Angles on C; A. Costs; Estimate 30(IG Bute When the Code^ Autboflty meets on March 12 It expects tp dispose of the last of its work oh field forces and get- the business .of determinin.3 how filmdom Is golher to be taxed to keep tbe NRA fune- tlonlng,- From Indications In codis- tlc ranltip, the exhibitor is slated to r xrry ia goodly share of the burden in administration costs. As viewed by code workers, the most feasible of many taxation plana up for consideration is one wherein producers and distributors, as a single group^ would contribute 'a pe rcentag e of tl^ir ln_take, niHglj-^^g "Hays meinFers pay'cTuesT"" Collecting, from the. exhibitor i.'J the knotty problem. Codista are mindful tliat intricate or fancy sys- tems, requiring cheokers, might Wiin Metro ana. uiavuaaint; u'" —"f— _ 'J ; C, V ■■ / L trOlt-Tjpera:tion-w4.th--gublix. —.-3cnd-.^code-4i03tB sky-high, -^ao, thal..^hiiHJjg n ftl?i c ;..4h£-:J>uraffJi to he. ap- tbc method must not involve any angles which might kick back with charges of unfairness. Accordingly, the theatre owner will, likely be considered.from three perspectives and taxed accordingly. The run of his house, his seating capacity and the population of his. .zone Total costs of operating the code have been estimated all the -way from $250,000 "itp |550,000 per year; While the exact costs will not be known until after the C.A. has Inr dulged In some more arlthnictic, codist.M during the past few days .are inclined to |.300,0b0 as about nearer correct, now Delay in the financial picture, it is also declared, has largely been due to the protracting jof code as- '¥enl^*^dliwes7'^Tife^^ now. fairly certain for March 10, will, give the C.A. at its meeting two days later a complete kno-wledge as to the number of signatories .aind portioned with an accuraciy that could not have been achieved had the taxation table bepn al(fTnptf>rl a mVmth or hIx iN-fflcs .TcrOr ing- the NRA code, tlori week In Washington which opened yesterday (Monday),- major , cbdists were cpiifident t)iat so far" as Imclem is concerned there is little on the. code record to provide any materlar changes In the set--up at this time. Reason Is that the formula cannot be considered ef- fecti-ve. until zoning arid grlevantie boards have had an opportunity to test the provisions of the code itself. Therefore^ they see sllria chance of any general reopening of the code this. week. Before the end of the week, how- ever, certain of the cbdists believe that tesides the fight precipitated over the weekend by Allied Exhlb- Itdrs' release of a schedule of at- tack,, the 10% cancellation clattise may bring jaboiit a clash between the major companies and the gov- eriiment.: On Saturday (3) it was being re- ported that when this clause was conceded by the majors in Wash-. Ih'gton last fall the understanding wias that only film; contracts made. after the code haid been. signed would be^ affected. SDhls issue is likely to bie raised in any foray over divisional Administrator Rosen- blatt's subsequent ruling. Believed Toe Hasty the same time some oC the more neutral members pf the Code Authority Board are expressing the belief that a few of the majors are being a little too hasty in their ex- ceptions; that a private check-up of contracts, understood to haye been inade during the paiat-week, teveals hundreds of agreements now exist?* ent which will not be affected by the eliminations clause since they do, not represent 100% bookings of the product of yarlous producers. Price fixing, the bane of the aver- age Industry, Is reported tp have caused no concerh whatsoever t pictures, competition is regarded by film men a;s too highly geared to let this matter become an issue In filmdbm. The fact that the fllm industry has finally agreed to all of the field machinery, and that this may likely be piit Into motion before the end of the month, will sllenee most charges of picture code stalling, some of the codlsts-believe. The committee which had' the job of ap- pointing bureau members met 14 times and devoted approximately 84 hourp to this undertaking alone^ ac- cording to John Flinn, the Author- ity's secretary, who was personally prese.nt at most of these sessions. Re&Hzaitlon that further hours would avail them little, and that the CA can a;t any time exercise its pre- rogative of removal, is reported to have convinced the committee that more time in closed sessions would be a waate and that changes, if necessary,. can be made later after the machinery has had a. chance to opetate. What Allied. Among eight changes sought by Allied is oiie for the removal of ISd Kiuykendall, head of the MPTOA, from the Code Authority because pf his ^bla's and uhflthess to serve by intemperate ., public utterances and by hiS conduct as. a member of the Cede^thority. It is believed that the ntiriority report filed by Mr, Yamlns will dlsclos^ this fact.', Kuykendali In his reply on Satur- day said, 'I, can show that for every Independent iexhibltor on their ros- ter I have nine on my own. Allied at the start tried to keep me off the Authority. And they have op- posed.the NRA, their general coun- sel, Abrara Myers, urging exhibitors at one time not to sign unqualified assents. Nate Yamins,. their repre-- sentative on the Authority, is sore ^bacauaxtJUpJU tJtUm pn thg ^^CrU;^Ai-„ lied doesn't wfi-nt men on the zoning and grievance boards unless they are members of itis pwn organiza- tion.' Allied aisti wants several of the "'<r(r<Trsra~tcr"'liave"^ powers equivalent- to those of Kosenblattj an enlarged autliority and additional indie rep*. J fs«.'i).(Mtlori In; the flold force.