Variety (Jun 1935)

Wednesday, June 5, 1935 PICTURES VARIETY NRA UD OFF, FI LMS'FEARS Liquidation of Filni Code AuA'ty Meets 70 Employees All Over U.S.A. Re-estabDshment of Film Boards of Trade to FoDow €. A.; Flimi s Spot John C, Fllnn, executive secre- tary of the Film Code Authority, ' may either return to Paramount or go In some capacity with the Hays organization. Glther shift, of course. Is predicated on the belief that the NRA Is definitely washed up. At the time Fllnn accepted the secretarial post with the Blue Eagle organization, he was special ex- ploitation man for Paramount and he went to the C. A. on a leave of absence. Offlcially, he Is still on this leave. While no definite move as yet bas been made to set up the film boards of trade in the industry, the revival of their operation Is ex- pected to see several C. A, ofUcials pet In good positions connected with these boards under C. C. Pettijohn. Delay In setting up these boards Is prompted by the desire of industry leaders to see what is done towards salvaging some portion of the NRA In Washington this weel<. The cordial relations which al- ways have existed between C. A. ex- ecutives and the Hays ofllce staff seems to insure some provision be- ing made to spot both Fllnn and Tyree 'Dlllard, chief C. A. counsel. Close resemblance between activi- ties of the Code Authority and the •workings of Film Boards of Trade la reg'arded Ly many codists as making both offlcials ideally suited. There is also a possibility that Dll- lard may go back to his law prac- tice in Washington. Industry leaders yesterday (Tues- day) claimed that nearly $10,000,000 bad been saved In law suits under the code operation. Temper of these chieftains was Indicated at Monday's C. A. confab. Spokesmen of major companies were sincerely in favor of carrying on Blue Eagle activi- ties In some form or the other de- spite the fact that it is estimated that tlie larger companies lost about 7S% of the NRA decisions. L. A. Z-C Az Iz CHI FILM BD. ENDING SIESTA hicago, June 4. Willi tlie demise of the code boards throughout the country, the film exchange centers are already buzzing with possibility of a return the active film board days of the pre-XRA era. Film men generally believe that some active guiding or- ganization is necessary to handle the various industry matters. Like- ly the first film board tp return to activity will be the Chicago board, whicli for years was the most pow- erful and active in the country. Expected that the local film board will be going full blast once more by July 1. Slated to return as film board secretary here is Emma Ab- planalp, who held that position be- fore moving In a.s chief of the local code board. Will take at least an- other month to organize. Board wants to start again on the old problems oC censorship, women's clubs, etc. Henry Ilerhcl, cliiof of the film board and U exchange manager here, is giving enijiloyment at pres- cnl to the two sleno'jrapliers of the code board, making room for llicm 111 his own secretarial force. MPTOA for Status Quo, Pledges NRA Standards Al'ior (li.scussinn of tlio NIIA code iiplie.ival. MI'TOA heads hnvf iisrocd to ui';,'e all members of the ^;^hil)ilol• orKunizatioii to live up to tl-if. wage iuid hour provision.'; of the i;kU' lO.'trtlc, inchiding laljor iiiiinn.'--. Mr''rf).\ proini.-^p.'i to prulPCL .th(' liirliistry ;\v,',uiiKt i.ineni|)li)yiiioiU uiul ill- s.-il.'iiieK fniiii Its end. The Lo3 Angeles zonlngr and clearance schedule, the first and only one placed in .operation by the Film Code Authority, suffers the same fate as all matters pertaining to the Blue Eagle. Which Is re- garded In code circles as meaning that the old setup favored by Fox- West Coast Theatres will go back Into effect. A modification of this alignment of zones and other provisions was what the Fox - West Coasters battled unsuccessfully for many months. Less than a month after the L.A, was placed in effect, the whole clearance-zoning matter re- verts back to the lineup which had been in use for several years. Bird Given Blue Eagle Also Ends Allied's Squawk Though arrayed against the code from the beginning, majority of Us members refusing to sign, the sud- den collapse of the Blue Eagle was totally unexpected by Allied States Assn., which had planned its con- vention with a view to going to work bitterly on the codlstic bird. Leaders are known to have set their convention late for Atlanta In the thought that with June 16 only a short distance away, a new NRA act would be enacted by the time the convention assembled. Failure of Washington to extend the NRA left the Allied delegates without the big attack that had been planned, while the sudden end of the Blue Eagle a week ago on top of the exhibitor conclave, further deprived it of complaint pressure. Convention wound up on squawks which were claimed to be largely of local character. Leaders who themselves are In- volved in booking combines de- nounced the existence in Georgia of a combine which takes 4% of rentals. The organization referred to was Trl-States Theatres, theatre operating combination in the south, which Includes Arthur Lucas, Oscar Lam and other leading exhibitors, who are declared to be plenty burned over what happened. With the NRA offering little as a target. Allied complaints remain routine, including block booking, music tax, designated play-dates and the like. Suggestion about law- suits by exhib members In order to get action has been severely at- tacked. Ed Kuykendall, president of the MPTOA, is among those an- swering this policy. He states: 'It la not particularly surprising that Allied, led by Abe Myers, a lawyer, and Sidney Samuelson, whoso brother and partner is also a lawyer, should be stampeded Into starting lawsuits everywhere. Years oC expensive litigatior by exhibitors have settled no industry problems, from the famous Eineru)) case on down. No progress has been made through litigation yet. What the ex- hibitor will actually gain through lawsuits, other th.Tn a bis bill for lop.'U services, is vague and uiiccr- lain, but what tlio lawyers will gain is not at all uncertain.' I' hns Lhc !■; of .Mlii ploy ni;ii ■ind L. A. SCALE HOLDS UP Hollywood, .hinf -J. p (i) now thonlr'c l.ilior here fi>lt no direct ill ''ffo'l frum NR.V debacle. , L. ll:iywai'(l, hushu'ss nvinager C)i)f'r;aor.M Locul, Int'".-nation;il jiice of Tlurjii iciil .St.iu'c Km- Pos, stati-s tli:U.. tlK-atri'.s arc nt.iinm;^ tli' Xlt.\ v;:x'^\.- si-.ilc ni;i .xiiii um lU'in- pr-i\ mm Mn WILD ON PREMIUMS? 90% Will Adhere to Code Provisions, but That Other 10% Has Trade Savants Worrying SELF-PROTECTION What the picture Industry will do with respect to policies and opera- tion as a result of the death of the NRA is still a question, according to leading spokesmen, but that a quick breakdown on trade practices will come Is being predicted. For the time bei7ig, with Industry attorneys and executives giving much thought to measures that they should be pre- pared to take, the desire is to see what other industries are going to do. Washington Is also looked to for what action may be taken there but among picture men not much hope is held put for a revised Blue Eagle. While Washington is In the throes of salvaging as much of codism as possible, the Code Authority and of- fices will continue only until June 16, date on which the NBA act ex- pires. The first thing the Hays office and Its members fear is that give- aways, banks, screeno and other premiumistic practices banned by a code, which was not very effective on this problem, will run wild all over the country, and that exhibit- ors will attempt to take advantages in other directions. For that rea- son, it is held particularly urgent that the picture industry" protect Itself In some way against a lack of the Film Board rule which for- merly prevailed and the code which now lies inactive. Arbitration and other features of distributor contracts are held to be valid but under the Thacher and McReynolds decisions arbitration under these contracts has been more or less meaningless because the clauses were not enforceable. Due to this fact, it Is hoped that arbitration within the industry, of all disputes between distributors and exhibitors, can be legally worked out in some manner. In- dustry attorneys regard the Mc- Reynolds opinion on the Thacher de- cision outlawing compulsory arbi- tration, as open to 57 different in- terpretations but up to now most major distivibutors have feared try- ing to press their way back to arbi- tration on an enforceable basis, be- lieving if such an effort were un- dertaken ensuing suits might soak distrlbs for damages. Opinion is that possibly 90% of the industry would be willing to continue operations as under the code but that with a 10% minority unwilling, such operation could not prev il. Those agreeable to con- tinuing present scales, pay, hours and trade practices as set up under the code would be forced to meet a minority's attitude and policies. It is believed that most of the first run theatres will continue present wages and hours. With the labor unions, contracts will stand .-is wi it- ten until expiring, it is added. Farnsy*8 Plans Wa.shngton, June -1. It the X.R.A. folds completely on June iG, (i;iy wlien death sentence is supposed to be effective, Ijr-piny .Administrator William I'. I-'arris- wf)i-tl) will iluek newspapers. Itle- phones and telegi-ams and try lo enjiiy a month of uninlerruplcil sf)liii](le, suiiliirht "and fishing. .Siill wjiiiiiif; to see what may de. v(:lop in the w;i.v of conlinuatiDn of :i nioiliTU'd Tlliie Kaglo ni.ichiiie. I'';irn-ie so far is making no plan-; for hi:- f'lture. If worst '■|>u\••.^ I'l wm-isi. be will j'"tiirn to .\'f-,v Y'ji;; anil sii' l: out bi.s l'-^ xl .s'liingle tnor». MYSTERY MAN ROSY In and Out of Hollywood, But Denies Film Job Lure HollyAvbod, June 4. Sol Rosenblatt, after spending four days here, planed for Washing- ton yesterday (Monday); Before his departure. Rosy said he would not enter the picture business In any capacity after his job ceases In Washington June 16. While here he did not visit any of the NRA enforcement ofUces, nor see Pat Casey or Major Joe Dono- van at home. BLUE EAGLE MAY NOT BE SUCH A DEAD BIRD NRA officials In New York were considerably cheered by late aft- ernoon news yesterday (Tuesday) from Washington that the Presi- dent and his cabinet had decided to press the New Deal program in congress, including the resurrection of the Blue Eagle on a restricted basis to conform with the Supreme Court decision. Legislative pro- gram for the NRA was described as likely to be a 'piece-meal' propo- sition. While legislators were not ex- pected to confer with Roosevelt un- til later yesterday. It was assumed in many quarters that the emerg- ency legislation may restrict the Blue Eagle principles of minimum hours and maximum wages and fair trade pi-actices to interstate com- merce biz exclusively. Chance that congress might be asked to define 'interstate business'. While C. A. offlcials here had an- ticipated some favorable news re- garding future of the Blue E.aglc from the capital, yesterday, a more definite outline of administration plans had been looked for by most codists. Intentions of administra- tive forces to revive the NRA in some form was regarded as indi- cating to cof officials that the Blue Eagle is not a dead bird and that legislation may be forced through so that there is no cessation of code operations after June 16. SCRAP 8 U. S. PIC SUITS OVER CODE VIOLATIONS Washington, June 4. Eight cases of litigation arising out of disputes over the scrapped filn: code were ordered dismis.sed Saturday (1) by I'resident Roo;-.cvol» as a consequence of last week's Su- preme court decision invalidating the entire Blue Eagle code theory. Instructing Attorney General C;ummlngs to drop proceedings in 411 distinct leg.al proceedings relat- ed to various codes, the President said that in addition to these cases there are scorej of additiopul legal tiffs where actu.'tl coui-t action has not coinmencod, but which also will go overboard. Till) film .Proceedings oi-dered .ibandoned were: C.'enti'al .States 'J'he.'ilie Corp. r.rniis l-'alz. in the .Soiitlioin district of low; ; f.eiii Theatres e(. al vs. Mo- lion rieture Code Auihorily et al. In the wesieni district rif C;UI.'ihoni;i; (leiier/il Theatres. Inc., (-t .tI \. s. Met- re. - f;.)!,)w;,-,-i .Mayer Di-strilnilinrc Ciij),.. el the lOlb Cir'-iiU conrL (if .\ p|)".i!.-i; Midwest l'"ilin IJi.stribn- liii,- Ine., V. Don Tliornburg ei, .al, ;|ii- bank-iiiie r;.'.-^e, in tlie i-ioii'.liern ili.<lriei r,i' lt}\\; Northern i-^intes .\m-.i-eirii'!)t ('.n., I.evy e| a I in •)n p'i;;e i"i Complete liquidation of all af- fairs of the Film Code Authority, starting immediately, was author- ized by the C. A. at a special ses- sion Monday (3). Clerical workers and ofiflcials of the authority will receive salaries to June 15, the Monday action being termed a form of two weeks' notice of termination of services. Approximately 70 em- ployees will be affected, including some 20 clerks, stenographers and doormen in the N. Y. office. Liquidation will be handled by the C. A. standing finance commit- tee which comprises Nathan Ya- mins, chairman (representing indie exhibitors); .Sidney R. Kent, pres- ident of Fox;- and H. S. B.arcford, of Warnei" Bros. Bulk of this will be cancellation of existing leases in 32 ofUces In as many cities and disposal of furni- ture., fixtures and office equipment in these ofilces. Much of it was purchased second-h.-md. and nil of this is covered by an estimated $13,000 valuation. The tyjiewrlters were rented on a monthly basis. John C. Flinn, executive secre- tary of the C. A., said that all leases were ready to be turned over. The offices housing local board.s throughout the country were ob- tained by leases contingent on the continuance of the NRA. Price, Waterhouse & Co., certified public accountants, will be engaged by Fllnn, on instructions of the Au- thority, to make an audit of ac- counts. All records of activities clear- ance, zoning and grievance boards and the Hollywood production of- fice have been ordered sent to a central storage plaxe in New York City. Refunding Since tlie Blue Eagle was de- clared legally dead about a week ago more than 5Cp checks, to cover (Continued on page 53) NWS PROS, CONS ON CODE'S KAYO Minneapolis, June 4. Publix and Twin City Orpherm theatres have made no moves yet to change pay schedules or working hours and their head officials here have indicated they will not take advantage of the NRA decision to restore the old conditions and pay rates. Same goes for all the local film exchanges. A number of sniall- er Independent exhibitors In out-of- town spots, however, are reported as having lost no time in cutting wages and Increasing work hours. The supreme court decision was gloated over by W. A. Htcffc;), mem- ber of Allied States' advisory board and always an implacable foe of the instrument. Steffos says the way now is paved for all interests In the industry to got together and work out 'a fair an<l reasonable arbitra- tion plan' and ' a just system of zoning .and clearance.' He thinks that with the NftA and industry code out the Indeiiendcnt e::hlbltors v.'ill h.'ive ,1 liett'jr ciiance to 'maltd both ends meet' and he proijoscs to launch u movement for the ereatioti of 'the right kind of .-in aibitratioii board." With the Xf;.\ out of the vvay, •Stefi'es points oiiL. tlvatre ov/ner.-i again can ((per.ate tli(.-ir hou: e;.' -.in they see fit' and without govern- ment interference. l';;:lijbito.s .-igaiii will have a ehanet' \.n (l--niiiii.-.t:;ite Lheir showm.-iiisliip, he say;;. I'nder the indlj.strv cule. illiieiii.inli.iu hlbltors en. ii.'.-e.l .ilisnh.r.oly ivi ad- vantagen .and nu pr'i;;.e.-s v.a.-i iii.fd,.- :!i Ciiri-ee;!::^ 'i.];.! ojiinion. ."^I; e.visienee. Iir. li.i.s bi'.-'M iii.iile try of .^iieli 'evi or i:i via Mi -■ .I.iiiii .1. I hi.S ilitii |i.i)'ress Hl'lUs- l^iiiil;ing