Variety (Jun 1935)

Wednesday, June 12, 1933 PICT E S VARIETY EXHIBS' LOANS UP TO 50G Handling a Headache As executive secretary of the Code Authority of the picture Industry, John C. FUnn has added to the respect, long since won, which he com- mands In the film business. Beyond this Is tl»e unique experience the task of being a C.A. boss has brought to Flinn. That FUnn proved well qualified to act aa the Code Authority's monitor Js -freely admitted by picture men. That he succeeded in the face of the pitfalls and politics supports the appraisal. There was too much chaos In-the picture business, too much politics, too many axes to grind, too many advantages to be attempted and traditions of exhibitor-distributor disturbances that were indigenous to the industry Itself, to expect that Flinn's job would be an- easy one. Whether Fllnn was the man who made that job look easy or not does not matter. His result.s are accepted within Industry circles as answer that he was amply qualified to do It. Today there can be no question that FUnn Is one of the be.st Informed men in the industry on national distributor and exhibitor relations. The Code Authority has functioned for about a year and a half. Whalt good the NRA did the picture business is a question, of course, that provokes divided opinion. As an industry, the film business signed after months of codlstic bickering and then feared it wouldn't work to the letter, as was to be discovered. The job of the C.A. In New .Yoi-k was a singularly trying one since so many factions were in disagreement and setup of satisfactory zoning and clearance boards suffered -such delay. There were charges against C.A. members sitting as a governing body in New York, and exhibitors complained that distributors were not living up to the cancellation clause of the code. There were many other troublesome features of codlsm for films, not forgetting over. 1,000 cases which came up on appeal from decisions of local grievance boards throughout the country. In between all this was Fllnh. He had to carry out the duties of his ofTlce and maintain harmony. No one ever demanded that he be thrown out and a new executive secretary brought In, perhaps one of the finest silent endorsements ever accorded an individual in the picture business. esides keeping the C.A. on an even keel, Fllnn had to go to Wash- ington, Los Angeles, Kansas City, etc., and had the trade and daily press on-his hands, too. He had to prepare for presentation to the C.A. all appeal cases which came in, he had a staff of 05 people over the country to control, he had to keep minutes of hearings, frequently concerning highly involved matters, and he had to straighten these minutes out 60 tliat they were always clear. Decisions had to be analyzed and sent out. A complicated filing system was organized. Mall, telephone calls and telegrams from all over the country added to the job. The first six months of the code, so many Inquiries came Into New York near bedlam was created, yet Flinn kept his head through it all. Whether Flinn was instrumental or not, If codlstic reign did nothing else it proved exhibitors can vote against their side and distributors against theirs. Many decisions reflected this sense of honest effort on both sides to make the code, dlfllcult as it may have seemed, something more than just so many sheets of paper. It was a tough job and Flinn did it. Washington's Favoring 'Unofficial' NRA Can Force Fix to Comply Washington. June 11. Destruction oC the conipul.sory code sy.stem was well undor way last week in conformity with re- cent supreme court ruling, but I'residcnt Koosevolt and braintrii.st- ers were still ponderlnj,' steps to re- vive basic features of the Recovery Act. Continuance of a skeletonized KRA until next April was proposed by the President and approved ))y the House before the end of the week, but signs of considerable op- position In the Senate were seen. Immediate .slop-gap progr.im In- volves two princip.'il points. First Ik extension of the Keeovcry Adminis- tration's life to permit statistical work and ol>.serv.ancc o£ Industry without code contiol, and second is requlrpnuMU that all persons enter- ing contracts with tlic Federal Government must observe sumdard lalior condllions whirls will he fixed by the ro.sti-ii.'n^d K.i.ijle organi-/,i\- tion. The poR.';ihllity that .Invalidated cc'des will be revived on a voUin- tary L>asis was .someu li.-it diniinished when I'rc.sident i;oi)sc\:oU mikI l,)iin- nUl Ivichberg, (lUlh'oinK N'U.V cliicC. took llio vn:\\ lliat any sioiis Indii::- ti-ies may t;ike on iliir own iniil- ativc to perpetuate c-ikIo pnlicic- will be Kiibjecl to the •■niti-tni.'it law.s. Al'ihougli the rescpliitinn a)i- proved by tlu- Iloiiso Friday (7) re- news the President's power to waive the anti-monoiinly acts, D .•said he had no i-iglu to su.spend the nation's fundamont.il statutes. Hi'-h- l>erg added there is doubt whether voluntai-y codes would be held con- stitutional. Suggestions that Federal Trade Commission as.sume regulat;ion of interstate comme:cc and that Fed- eral Government license all firms engaged in interstate activity were del)ated In Congress and Adminis- tration quarters while deep consid- eration was being given the idea of interstate compacts governing work- ing condition In various lines. All of these Ideas were put forward as alLcrxiatlves for the scrapped code sy.slem. Lcgi.slation giving Trade Co:n- mi.'<h much broader powers to es- tablish standards of fair competi- tion was submitted to the President I)y .Senators Nye of North Dakota and King of ITtah, leading foes of the NMA, while bills covering oom- pact.s and license idea were intro- duced in linih branches of Con.:rroKs. King and Nye will maK'e a light for tlitir plan on the .'-^en.'ite do r when I he o'lntiniiinj; resolution comes up de.'-piii' liie fact i!i;it sucli ;> propo- sition was spui-ru'd by the House by .•I wide mar;;in l;isi wn-k. Contact Angles letails of ilif second ph;i.<-o of tlu- Pi-e-idciils Kiop-gap plop;iii h;i\i' not been seltled, but iudic-il ions weri' tiuit if (.'oiigre. r.-.n.'ur.s all (iliu produ'.ers hoi)iiig to do busi- ness Willi the .\riny. Navy. ;i:i(l other Covernment iiraiiehes will 1j(- conii)elled to oliserve wage and Ik.-.m rules pruclieaily the s.inie ;is tlios' ill the lilin code. NK.V would /ix the .' taiidards which (lieroetioally would ((■loiuiiiued on page 20) [iicoyniieES pix Liberalized Rules for S-Year Periods to Spruce Up The- atre Properties—U. S. Sug- gests Types of Moderniza- tion to Spread Employ- ment FORMER 2G LIMIT Washington, June 11. Special appeal to film exhibitors to make use of Federal credit for modernization of their houses was broadcast Monday (10) by Federal Housing Administration. Under liberalized rules, exhibs now can borrow up to $50,000 for five-year periods, to spruce up their prop- erties. Modernization section of the Housing Act originally restricted such advances to $2,000, but film in- dustry showed little interest in penny ante proposition. Now with the limit raised to $50,000, govern- ment hopes numerous theatre own- ers will help the drive to spread employment and increase business through building repairs and altera- tion. Under the program, borrowers must still do business as before with private bankers—not directly with the Government—but any loans for modernization purposes negotiated according to Federal regulations will be given Government insurance. This has been an important factor In loosening up cash for home modernization and with the raised limit the Housing Administration expects It will prove very helpful in releasing credit for industrial use. Over 5,000 banks are participating and a number of private financing companies have swung. Into action to help out. The new regulations will permit the Government to insure loans for any theatre use except for mov- able furnishings and equipment. In this connection, Federal Housing Administration suggested following possible types of modernization: Installation of alrrconditlonlng, new marquees, fronts, signs, fire prevention equipment, rewiring, painting, hew lighting fixtures, seat- ing, ventilating, telephone system, organs, plumbing, flooring, plaster- ing, projection equipment, offices, balconies, stage equipment, and box offices. A number of theatre loans have been indorsed by the Government even- although the limit until re- cently was only $2,000, and many Inquiries have been received which indicate that substantial amount of modernization may be expected with the more liberal regulations. Be- cause exhibs have cooperated in publicizing the Housing campaign, the Government agency is extremely sympathetic toward theatre owner.s and will go to great lengths to holi) them borrow cash for renovation and alteration of their properties. Loans will be protected by promissory notes, with the lending iiislltulion deciding on the reliabil- ity of the borrower. Interest I'utc may not exceed 5%; repayment must he in equal monthly liistall- metils beginning with CO days after the loan was negotiated; delinlte plans for using the requested funds must he submitted with the loan :ip))lication. Kxhibs e;i.n obtain names of hanks iii;il[iii;< loans under these condilionH irom till" l-'edcral IJoiisiiig Aduiinis- tiaiio'ii or fi-i;in committees in iiU [)iiiicipal cities. Bank Night Rampant Iloll.vwood, .lune II. O.-er 100 llieaires in the Soulli- (.111 C.'ilifornia exchange area arr' using biink nit;)its since the N'ltA '1 ••ini;- foiil'iiifd to siil)Sfq';eiils 111 sin'ill ' owns. Film Code Authority Winding Up Its Mairs Despite Stopgap NRA LAWING BANK NITE Nebraska Shooting at Stimulator oh Lottery Angle Lincoln, June 11. The Joyo, suburban Havelock the- atre here, and its manager, Roy Headrlch, are to be the target of the first bank night suit to be filed in this state, according to (JJounty Attoi'ney Towie here, who says the operation and practice of prosperity nights is in violation of the exist- ing slate lottery laws. Headrlch says he does not believe the stunt is outside the law and will test it in court. Nearl.v every smaller key in the state Is working the idea, but several Havelock citi- zens have lodged complaints against it. N.W. ALLIED IN VOLUNTARY NRA Minneapolis, June 11. Northwest Allied States here plans to take the lead in a move to bring about the establishment of a voluntary industry code for this territory, with the creation of a 'fair and representative' arbitration board and the formulation of a zon- ing and clearance schedule as the principal objectives. President J. B. Clinton and direc- tors of the organization are now mapping out plans In this direction and the matter will be brought up at a meeting to be held this month. PLAN LEGAL SHOWDOWN ON lA. 'BANK NIGHT' Newton, la., June 11. G. P. Ilundllng, manager of the Cai)itol, is facing a county attor- ney's information charging him with advertising of a lottery through featuring a bank night. It is a revival of the old Iowa con- troversy, but the present action is ex)ieeted to go to the supreme court Cor a final showdown on the propo- sition. Theatre Is owned by Tii-.St.atcs Thoatie (^o., Des Moines. A munic- ipal court at .Marshalltown recently held the bank night plan was not a lottery. Hundling alleges he pro- ceeded on the premise that the plan was not in violation of law' but ;i gift in the w-ay of advertising his business and that he preceded along those lines. KREISELMANN GOES PAE Washington, .June 11. P.. Bernard Krels(lrriaiin. quilting job government reprfisentatlve of the film code l)o;ird In Los Angeles, has hookc'd ur> with J'aramount of- fice here. Before being named liy Oi\ isiroi'il .^d inlstrator ,Sol P.oson- hlatt to help ridi> herd on producers, Kreiselmanii fiigaged in vnriou.s kinds of research in Hollywood. l.s former dij'celor of the .Amcri- caii Arldl r.-'I ion Assc;c ;i I if;ri and of •fV: -f.il.v I lir:i li-''S. Seating Co. Cuts Loss Aiii'-r' /alijig (.'oliipaiiy re [Kjiied li,: .s i,f for llK- '(u;irt"r fnding M;irch ;!). 'I'his .sliowiiit: v..'is iii.'ide aft('r lax('S. in- Irri'Sl (Ir'/ii'ci-i.'i I ion. etc., .•iKd coin- o:)i''s v ii'.i a net I'/SS of for ilic lie ilirei--jiioiilli period In ip;;i. Itci-oii liicrc;i.Ke in the price (pioted foi the sto'-k piesiJinalily iv.'i.s ba: cfl largely on antici[)i)lion of this fa\o.a''le st;i l"ni'-nt. While Congress may approve a stop-gap NRA plan to run for the next nine months, it will not alter the plans of the Film Code Author- ity to liquidate its affairs and close up shop in New York and In every city where the code had grievance and other local boards. John C. Fllnn, executive secretoi-y of the authority, is in chartfe of this work of winding up the affairs oC the In- dustry's Bliie' Eagle. Reason that a mild NRA agency will not even save a skeleton force for the C.A., Is that the proposal now before the Senate, after having passed the House: makes no provi- sion for an official Code Authority. Only a portion of the Recovery Ad- ministration staff In Washington will be salvaged under the new setup. Understanding at C.A. headquar- ters In N. Y. is that a skeleton crew will be retained out of some B.OOO employed In the capital city. Thin staff would make a survey of the results obtained from the codes. Work of cancelling temporary leases held by the C.A. here and 111 some 32 other spots is going for- ward under Fllnn'u supervision. Files, records and papers from these cities throughout the U. S. are be- ing received In N. Y. and stored for future reference. When all official books of the Code Authority have been brought up to date, an audit will be made by Price, Watcrhouae & Co. Anti-Trust Laws Back As was pointed out, suspension of the NRA places anti-trust lawn back In effect, thereby thwarting any contemplated mergers, consoli- dations and combinations of pIx companies that smacked of Invasion of the monopoly provision. Appar- ently there is considerable opposi- tion building up In the Senate against future suspension of the anti-trust laws In the Blue Eagle set-up. In fact. Chairman Harrison, of the Senate finance committee, said he was prepared to assure the Senate that there would be no relaxation of anti-trust laws to permit mo- nopoly. And It Is likely that sena- tors will Insist that none Is Incor- porated In the measure when and if finally pQ,ssed. Senator King slated that ho thought any relaxa- tion of anti-trust laws .should be' under the supervision of the Fed- eral Trade Commission. Roosevelt earlier In the week had emphasized that all voluntary codes of fair practice must conform to the antl-trust.laws. A Democratic rep- resentative In Congress confirmed the contention of the C.A. legal counsel here that the NJ'.A Is not dead but that the provisions for compulsory codes have died. His Idea was that the stop-gap 'Blue liaglo bill was only to serve until further legislation within the limits of the supreme court decision had been enacted. Flinn doesn't know definitely his future plans unlil he has completed the task of winding- up all affairs of the C.A. It is likely that this lltpildatlon of the authority will keep him occupied until after .lune IG, the date when fit Bliie Eagle Is legally dead. C.A. legal rhatlers jn-fibably will also keep Tyrec; JJlllard, r.hU-.l couti- .'•,el, busy for several weeks more, .Secretaries, Hlenogr.'iplK-rs, and piaeilcally all other employes at code h(-a(Iqiiart'-|-s In ilie JtlCO liuilding, '. Y will be Ihrougli on lime li;. Blooey! Cedar Rapid.'-, .luiic 1 I. An Injunctioii agaiii.'-t tlie Des .VIoiiKS giicvanci' hojird of llie in. ji. Industry code iiullioriiy and si iriajor film dislrlhulois w<-nt blooe with thr. XKA. Kourd had ruled that bank nights, .■IS riracticcd by the Central States 'I'lieater;; Corp., violated julnils'-ion jn ice levels fixed by ctide. 'I'iie case was filed April 1", Ifi.Vj.