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VARIETV PICT nMnby, jannaiT J, MSB THE INDIES* BIG YEAR HoIlyWood^ Deo. Sl.. •f Eyes of Independent producera ere turned toward an horizon o£ hope a:nd promise as the new year dawns. An era' of even-ereater prosperity than the paat 12 nionthe, the most roseate since the fllms went gabby* , Is In prospect for the denizens of Poverty jRow,' so-called, and '35 Is already belngr halTled as the big yeir. for us little 'uns. Enthusiasm of the indies Is predl- cffted on definite foundations that Include better distribution of pirodi Uct; more equitable releasing deals, whlcii give the producers' a chance to recoup negative costs with rea- sonable profits, and a broadening of financing avenues. Indie production on the coast irises - and falls in direct proportion to the 'number, of state right exchanges operating In the various territories, ahd ability, of: the'latter to j)lck up and move the product they coiitract for during a season. Spread of dual bllis throughout the country during tliie year, with resultant shortage of product In many territorleis proved a,"bonanza to inany state rlghters /ryiio struggled along, rehewlhg notes fbi! picture ro'yalUes to producers pr jaelaylng plclc-up (Of releases. ; ; With a.healthy Irtcreiase In the to By Walter Greene independent -producers. Latter can secure nearly 100% finance In some IhstaTices, because their product has been SQld In advance- to state rlfiht- ersi who have been tabbed as grade A rlsfcs in meeting obligations and picking up releases oTi tlmie. Instead of. being confined to one or . two sources of money, the indie pro- tal'. of; financially isbund exchanges It wa$ natural that the Ihdle prp- ■ ducers should .Ijilofisoni forth wU^^^ ;ach^edules oriarg tures during the, year..; At tiie statt pjj. Ii9 3.4 there appea,red shortage of westernsi' kvAilabie .^or.v rlghteref, but tlie. close, of the year; f6und . so. many producers wading, into, the horge bpirt^ field that li vfHI be; but i few months before^ tlie ex- Changesl wili be gljiitte'd with. ;wes't-r .erris %hlch carippt," ppssib ly i)e sorbed., .Tnis condition whl~T$'suir In a quick, fold oil thpse prodiicers who are 'not. soundily financed for ' their: entire, progpram, and many or- phan westerns will be . peddled "to exchanges for .whatever they will bring at forced sale. ■ / Carr Puts Mono on Top Among the .out-arid-out Independ- ■ ents, the progress of Monogram lor 1934 was the most Important event In the ileid. Company- shot iaihead to become, conscious of major rating, aAid is-slated toi'slide Into the select nciifcle—dintng'^98r^lth"~ll)0^^in^ -crease in releases, arid ■ additional production costs per picture, Major resjionsibillty for the progress of Monogram must irest with Trein Cart", production tiead, who has gatheredi together, a .clos'ely-knlt,- efhcient and non-political orgahlza- ^*l?5.c^§ilL'Jrig; ^ the^wi^y for .the company and"it3,.pictur*!s^ ' ' ' Unusual: f or an .independent prO'- ducei* was the procedure of m: H. \Hoffriian, piE Liberty, in producing his. entire; program of - eight. features for 1934-3? prlpr to selling, the groUp to fratichlBe exchaiiijres throughout .the country. Nat Levine, after, holding the Indle serial field virtually alorie for sevr eral years,-anticipated" the entry ;^of other seria;ls into hla dpinain, and la^ricIled.a prograni. of f^at'rires for the market.- This move vriW allow ducers now are In. the happy inood of being able to shop arpund^ for thei cash they need and- then take the best deal. Consolidated 'Lab figures 'it must finance the, indies'thait are in a pp!?I- tlon to break even with their prod- uctj as It thereby secures all nega- tive and release print work on pic- tures of those indies to asgist In keepirig.lts eastern arid western labs open. Profit on the processing runs into a sizflble total over the periPd ,of a' year. '■' ■ Pathe financing deal stipulates that the borrower must use Dupont stock (in which firm jPathe holds a large interest) . besides having print iprpceselng done In' the. eastern lab of Patlie. Another financing group, which caters mainly, to shoestring feature producers 'ana controlled by ai local gfotip, ai^o ispeclfles that 'Dupont stock be. used, because 6t close cppnectiona.. Sriiall'ltime . Iri'deperi.d^^^^^^ prie of: the interesting* phasea of the business^. 'Geared throiigh necessity arid ability to cry; axoiind corners arid chisel at every turn, this type ineyer f^;u.res to- do . ariy itiore than get a b&rfe' living . put of Its iriariipiii- Jiatlons, whether It be hohest or of the sharpshobtlrig variety. Alwaji^s BhPrtr-pf-^Cishr~dbdgirie-rt)erisPniB^ creditors, picking ui|> any deal that would insure delivery of as low as $2,60Q for a completed picture with Sound, they seem tp struggle through as prodLucer^ ■ oif a sort and gather in whatever glory there is to be gotten from their work. It is not, uncommon for this class of producer to finish a pitcure, pay. an debts, ship the negative and re- turn the borrowed finances^ and then turn arburid a fewi days later arid borrow a lew dollars, frpm one of -the employees that drew, wages -ori--th©-TjtctOTe:—Oire~sueh~wodirceir found himself without funds in the middle pf neg'otfatlpns tp secure liecessary finarices to make a pic- tuire^; and took advantage of: his. stu- ■fdlo office cubbyhole as a BUbstltute for tho turnlshed'Tpom he -was forced,-'to vacate. Another pair of shbeatringers work together for their coriiriion good and jftppetite.' When either Is making, a picture' arid the other Is. Idle, the fortunate one'orders 10 extra box lunches fori hla troupe on Ibcatlbri arid thea sneaks the extra prder Into hla car to carry back to his. pal, so the latter will eat for a couple of daya. ■:■ How Profits Are. Made . One producer, who Is still making this type -of product. Is probably continuing his former priactlce. of orderlnir an extra 1,000-foot roll of negative on the picture and then redeeming this for $40.; The money secured, he. has .admitted, was the only profit he gpt put of all of. his work on'the plcturbi ■ ' swinging frbm the 'bbttpm grade to the tbp. rarik of indepehdent pro-' d'ufcers who nfiake |em for' major re- lease, the. year 19,34 ahowed. - a, marked dxpa,nslori in theMatter field. Perhaps the iriost Itripbrlarit new- comers to the group af'e-'the ^hit- ney-Vander'biU Plbrieei?' Pictures,' Sen • Hecht-CharleS' MacArthur, Harold B: Franklin ' arid' Walter Warigfef, ■ Sol Lesser; who had been Inactive ,in prpductlph' for the past 10 years', cariie back to: the fold, to ISKke^'Feek's Bad 'Boy,^ 'Charidu' and: a aferles of 'George :0'Brien westerns-In assocIatlPn "With John Zanft. Lesser apparently Will ehopt His product'throug:h" the''majpifff ana also-some pictures via the state :rlght-:marketi- -re8umlng--the- policy lie pui:sued when ini produbtlbn be- fore;.-^-.'^.V. V Increase in the number of inde- pendents . producing for major re- leases durlng^l936, unless epmething unforseen, arises. Is. definitely Indi- ^ated-fQ,p^^5 . . ■ .' . , ■ "With B. .F. SchUlberg leaving Par- amPunt after 10 years' aBsociatlori Wltii that organization, and David d, Selznick expected io drop out of the Metro producer llnpup when lie flinishes pictures now iri: preparation, both are headed for their own Inde- pendent units; Schulberg may final- ly tie up with Erpl financing to pro- duce a .series while Selznick cian ealsily coirie up with a releasing con tract via a riiajpr outfit. Leaders In the Independent field .flgrure'that that section of the busl- "ness^ll-to^in a mbst~healthT"cori^ ditlon If . prbgress , . during. 1936 matches that made In'all:classes of the Independent prodtictiori field diirlrir the flrial alz kripnths 'of 1934. RW.'34 Biz Better Tluml^ Less Than in 1930 KEITH GLARIC The Man with 100 Cia*rettss' Greetinga to all my friends In Gangland, Scotland^ Ireland, "Wales, America, Cankda, Australia, France, Qerriiany, U. S. S. R. (Russia), Hungary, Italy, Spain,. Austria;, Norway, Sweden, Switzerland, Africia, Monte Carlo, Belglumi, Hol- land, Rumania, Cheko-Slovakia, etc. Just .finished Stoll, 0< % and Moss Toiirsi. Agsht! HENRY 8HEREK KtWiASlM • -Los' Angeles, Dec. 31; ^ome 300 Fox : West Coast ex(?cs and ho me- ofHcp employe s received Christmas gUts from the circuit In the form of Insurance premium rebates, ariipuntlng tb approximate- ly 40'% of . the amourits paid In. Returns are premiums earned by F-WC employes group Insurance/ with circuit standing all costs, plus a heavy portion pf the annual pre- mium, BO that every cent of earned premium was forthcpmlrig^ for the distribution. Circuit paid arbund 68% ' of the total premiums of Its employes' group insurance, making the coat Portland, Ore., Deo. 81. iTear just byer for local box bfllce« Ihdtcatea total flrosses ran aboutv 40% leaa than In 193Q. Figure that la in keeping with current employ-' irierit conditions, which Indicate ^ regular emplbyment for only 60% of persons normally working. Checking up on this cpmparlson,: J. 3, Piarkef^ burg's No; 1 exhibitpr, figured bis Brbadway: and United Artists ran 88% undeit- 1930 figures. Parker 8ubscrii>es to the theory tliat DVemuch .exploitotIbn''bf pix' to re* gain the Jost ducat sales Will faU-of lis own' .weight unless eriiployraitot is there-to £arry the load. Local .b.o. ;blz Is sutistaritlally.bet" ter than at close of 1933,: with all hpuses running on a higher average. Two yaude .bouses started durlns the year ba.ve: boosted! the burg'a total nut. at leiast $4,000 weekly, with the :: stage, -units and bands Pirobably drawing that much In ex- tra adinishea with a 'slight margin. over. ■■ . , . . ■ Half a dozen pic. nariries,- e^i-apievlrie publicity (free) and aflot of ad- vance national, jpirbpafianda are still. the three.- leading : factors In de*; termining b.o. results for any piOa Local explbltation Ic) mereily .a fpi- Ibw-til) ;. bn name, appeal<, or on. national gossip; " Then comes thb local ^gra-pevine^V which In thla burg means thumbs'up or , down, Washington, Dec. 81. Foundation of WllllS'in Fox's'case was challenged last week by film industry dieferidants In litigation byer sound patent-rights as Altooria Ppblix Theatres and bjther Inter- ested parties questioned! contrlbu>. tb-execs-and-ra nk and fll ia so l ow I t Ion-<>f^eman-jnyeirtors-In-a-Bnp« him to slide out from under further produetipn.. Pf serials if competition becomeg too keen, during 1935. ; -, After .suspending early ^T^ ■ the -year,—Majestic-got- golng^Tagaln.rrln- latb summer, with eastern distribu- tion heads. of tiie. cpmpany turning- over production responsiijiiity-, to Larry Darmour. L lAtter will .deliver the entire program.pf 1934-35 as set up. .:■;■'•'.;.•■■■ .: ■ - Revival bf Interest In the market: has also, resulted In the entry^' of several new producers Into the field. In., addition tp bringing, back a few oldr timers of the Indie- group of ': a decade ago. Chief among the latter are Louis Weiss arid fiam Krellberg. Bbth se em to,'' ' be amply: financed . Stock markbt -was firm .In active trading^ final day of: lS34 yesterday (Monday). ' Radlb. Pfd. A rbsei' to a i|ew :.high at-55%'-^lifire,it yas. uj? 1% . points. ■ Pathe A wasi another fieem to.' (Krelliier^ has comi^&.ny, his own financing which; also: participates In loaning to other: producers) arid ex- pect to become factors In the niar- ket before 193B cl08eB In, . , Financing of Independent pfbdixct eased off frorii a tight clutch at the - start _pf_.the year^ to a point where a. producer with a sound .proposition 'could secure up tp 50% of negative costs frorii several different sources at equitable rate^. ; Glp^e of the year flrids Corisplldated Labs, which car- ried through on financing- of Iridles during the lean years, fighting oft the entry of 'at least flve - other sources of money for the Indies. Major competition that isprung up againjst CortBbllda,ted ■ ^as P'athe, which grabbed Oft the jSnanclnK Of Chesterfield, Invincible and other Iridles bf lesser rating.- , Indie Coin Goes Beioaina Thla situation has helped mate- riaily In booming: the activity of the strong amusement Issued, gbing' to 16% and closing. at:'16%, for a gain xft lM,, ' /Z ■ ■^: .V ,!\m'. ■ • ■ J^-Witltnibst bt-year>.erid-selll^ tax - purposes; put of way, stock- mar- ket took a big; turn for better-Fri- day^: . It, cbritiriued to : look good despite profit - taking-,. Saturday. Dow-Jones Iridustrlal averages adr vanced:- 4.17 - points .to. 403i.90, oyer preceding, Saturday's .closing. ; V Amusement group, followed gen- eral trend;, although, not. greatly af- fected by sales fbr tax showings. Averages fbr group finished week 0,886 points blighet: 4t 26 this was orily an eighth under tbp figure for, proup. Avara.p;.^fl of Amusement ^oup fell to 24% during week, pr slightly iabove low level of previous weeki I'hia action rather deflriltely Indicated that gtoup has reversed Its recent downward trend. Leaders of group folIow:ed: Its. trend quite - crenerally. Two lasues, which were indicated last , week aa being_read3r_.chartw.lse"to ireverae their trends, came thrpugh In good fashion. Loew's corinmon, which had fallen back, for' three Buccesslye weeks, turned upwards Iri a show of,strength Friday, it rpqe to 8S% and closed at 84%, .where It was up three-quarters on the week., ^.the low mark for this stock Wa^ 83%. just: above bottom, of preceding week. : Wa-rnbr Brothers common also Burged; fbrwatd after - Btrlking $4 per share. It climbed' back to 4% In/: dctlv6 :'ii'adlng,' .where It closed for a net -gftln ot: three- eighths, fbx 'A also shifted from Ita declining mood and rallied to 13 It closed at this figul?e for |t Yesterday's Prices ■ -•• Net Soles. .. .- . Hlsb.IiO'W.'LaBt.ctaRe, 100 Col. PIct...a816 88H ,B8%,-r- % • - 800 Con'. Film. " 6% 6% ' 6% — % • ...•400, BaBti Kn-.He% lll% 112 -i H ^Xjm. .FoauA.. 1 ay. i a% 'i avi--^,iJi4- 20,700 GenTTEl... 22>/i 21% 22%:+ % • LOBT? i . .v. 84%-;.S4l6 •'84%-^..% , 0,000 P£^f.,, ctfa.: m , <an 8% ■ ■ - . 7,B0O Pathe. A.. ,1054 . lp% 10% + % T-BOO'-RCA . • BH S% '"'8H:4. Jj - :,5'ZS2• 5?Q,:,-,. „ .-2%: 2% • -2V4 + H --rlfSOO-W—B.-.-.-.-.—4^r4%T-,4}4r—HvTT .' •:'.' ; •■' • ;", ■■'CURB ': V .:.:■ .,■ ■ •" '800"TecTEi.: ..... 18V4' 18% 'iS% +.% ' - liSOO TrauB-iIi.--. 2% •'2H '4% ■ BONDS $20,000 Gen. Th..; m 8% 6%+1 11,000 iKiew . .L .'ljOO^ 105% lOBVi ,-f % _ 4,000 ;Eac-P.-I» , .L.«216., 61'5fc_.,62V4 1,000 Do ctf«., 62 62 62 4-% OtOOO Par-Pub .. 62% .62% .62%,+ % I I3,000 .2j)o 62% 62% ; 65% +1 - lOjOOO Bi.'...- 60 " B8% B9' + % healthy 'ad-vanc'e' bi .1% points. Low for thla Issue 'wlBis ^'^East^ari:', Kadb.k^ ' c^ . to fbrgb ah'4ad',' clbslrig' at ilZ^', where: it waa ' upv i% p oiritB. Top waa reached at 112%. ^tbck had dipped to 109% eady in week, preaumably because of tax selling, Pathe A wajs another strong .fbature, stock climbing to 16%. before meeting much resistance on' Saturday. Wind-up was at 16, where Issue was; ahead 1% ^blnts on week. . ^ / Following the! aensatlbnal run^iip of Radio Corp. i>referred Issues in recent ' weekSi with subsequent headlong dive of the same at erid of precluding •week,', both preferred stocks came back with a gusto last week. Radio preferreid B advanced 6% points to 42%, Its close for week; Radio;,A wa8 'up.^l% at Its peak of 64%, 'which; also. Was the closing Quotatlbn.^ .. At this figure It was little more than a point away frbrii 1934 high-;- As the preferreds -came back, Radio cbminon slipped down a quarter, to -wlnd up at 6%. High for w^ek was only B%. RKO also (CJontlnued on page'148) . as to make It possible for all to participate. • This is' believed to be first In- stance on record in the theatrical o; pilcture Industry Wherb premiums on insurance have been distributed among the beneficiaries under the fjroup plan. in addition ::tb '"death .benefits, F-Wc group insuiunce provides a $40 weekly disability clause, effec- tive after one Week's enfbreed Idle- ness, ' with several of the employes partlcli>atlng In thW feature during (he year. '5ft Hidioii 1^ Seen as Despite-Formef^lopli Hollywood, DeCi 31. ,: Warners- Is: passing the script, of 'eO-MlUloir-FrerichmenT'-^rriade-three year» ago with; dlsen and Johrisbn, around ,to Writers,./ Figured to remake the story. Feel iniar Is that the picture, which was never , a ; click, ^yas not given .a chance-In-the^^flrst prbdUetion.- Bb-' Ueved that a much-stronget musl cal can be. made, both In view of Its overlboked possibilities and: greater experience at handling musicals. If a proper acrlpt eVentuateia, studio will, go fpr Itin a big way., Busby Berkeley Indicated as p'rob able director. , ■• v,-\ - ■ .■ . MSNEY ADDS SIXTH BUILDING ON STUDIO ■ :^^_HollywbPd,..Deb, 81. — Another building will be con structed by Walt Disney Produc- tions,'new structure to be erected to hpuse the painting arid Inking de 'pirtriieritg. ■■ [ " Latest addition to the Disney es tablishment Is the sixth since the cPmpany moved into Its own studios three years ago. FD May Distrib 'Dealers' First Dlyislon may distrib the in- dependentiy-prodUced 'Dealers Iri Death,' currently In its third 'Week at the Criterion, Ni T.' Topical Picture? owns the picture. POOH-POOH GERMANS HELP TO TALKERS plemental brief filed with the Bu-i preme Court, Case probably will -bb heard by the high tribunal beforb the end of Janueiry, and date Is expected to be set when bourt returns from holiday, recess next Monday (7). Dedaloa" aome time In February la -expected. Defendants, repeating' warning that upholding of Fox:claim would place . entire Industry . subject tpi punitive. ' assessments .- and' royalty, costs, - minimized partplayed by. Germans In perfecting of sound plc< ture recording and •• rbproduclnff methods. Claimed procbsaes taaa been . developed and Improved by numeroua -American engineers and scientists - who all made contrlbu-. tlons -to the art, and asserted that Germans had been unable to de«! velop . their products.. in,: Germcwy wTtTrtKjOCtdrgfniig-its tenta' I nvo lvedr- In the 'Trl-Ergon .suits. Attacking both .flywheel and printing patent claims, defendants eriiphaslzed point that Thomas. Edl^ son years ago had been refused pat-: ent for flywheel on phonographs to govern speed, and charged that Im^' portarit provlsioris .of printing pait^ ent were not inserted until 1929 af«. tier: talkies had been^pimd commerr_ daily ipractTcable^ •■ " ' N.Y.t6L.A* Roccp Vbcco. Rian James. Jesse L. Lasky, Jr. -Allan^Jone a .. ; ■ Nicholas S. Ludington. Marjorle Gateson. John Curtis. ' .^ Sam H. Harris. ' Arch Selwyn. Alice P. Glazer. - - L. A. to N. Y. Douglass Montgomery. Mrs. Win Rogers. Leontlne Sagan. : "Harry Fitzgerald. Trem Carr. Luden Hubbard. Harry Ruskln. , C. King Chamey. William Plzor. Fraink Lawton. Evelyn Laye. . John Balderston, Ray McCarey. . Otto Klemperer. Boswell Sisters. Walter Lane