Variety (Sep 1935)

tTednesday, September 25, 1935 PICT ES VARIETY 17 Free Shows (Continued from pa-ge 1) Industry, which, through the Hays office, succeeded In haying the proj- ect caUed off.After.Ihe unit,had dented theatre attendance In varl-' ous eastern towns for two or three, datea^ Only consolation for the the- iatres • In the present plaiis of the. commercial show sponsors Is the tact that the entertainment Is pur- portedly Intended by most of the larms Jtor .dealers .. an4 employees : exclusively. Whether or not the at- tendance will be thus confined, or . can be, remains to be seen. Hoiw.- ever, in one' or' tw^^ fhstances 'the Bpondors appear to be aiming their amusement-bally ideas at the gen- eral public. Nothina Set So far no definite line of couh- ter^actlon has been decided on by showmen, although several the- atrical trade organizations, such as the Motion Picture Theatre Owners dt America, have the matter under advisement. Likelihood Is that If the free show bugaboo grpws serl- ouis again, joint action by the show business will again be necessary. The claim behind objections to 'all forms of free commercial «nterr talnment is that It takes away busi- ness from theatres and other places of paid amusement,. In giving sonie- thlng away for nothing, and. there- fore It Is unfair competition. Ed Kuydendall, president of MPTOA, is down at some of his theatre holdjtngs In Mississippi, but before departing: Sept. 20 issued a statement deprecating the use of free public ,attractlohs by leading commercial entwprlses not con nected with show business, other than the sponsorship of radio pro- grams. Nature of a release to theatre ex- lilbltors In general was an appeal that they, recognize the meniace, and Is regarded more or less as a call to arms In self defense. Attitude of the Theatre Owners Chamber of Commerce Is still unreported. 'Block Parties' With Kate Smith, under A..&P chain store auispices. In for spon- sored shows, 'Essb Marketeers (Standard OH), which sponsors Guy Iiombardo on the alr,~ Is planning to send out the band on a gratis •block, parties' tour. Idfea emulates the previous Standard Oil free shows with Liombardp, which were finally called off . after the film in- dustry objected that the gratis ad- missions to auditoriums and arm- ories were ruining the exhibitors. Understanding also is that Standard Oil at that time paid ofiC the liom bardos some |150,000 on cbntxaot But with Kate Smith unOer the professional and commercial aegis of the Grfeat Atlantic & Pacific Tea Stores (chain grocers) going out, the block-parties stunt for Standard Oil, held In abeyance, will be put through. Instead of Indiscriminate throw- awiays and giveaways of admission ducats, Standard Oil now figures to tie in with tho local firemen, police- men, sowing circle, American Legion and kindred organizations; donate blocks of tickets to them, the 'au- spices' to sell them, If desired, <jQr the local charity funds, and thus the commercial sponsor would create added good will from this sundry sqcietles and other auspices. If the Kate Smith show In Madi- son Square Garden Sept. 30 Is for A. .& P. employdes only, the Hays office probably will take ho Immediate action. . But If others, are allowed to attend, JIaysian officials expect to move swiftly, not only because of the huge seating capacity of the Garden and bad precedent It will set, b'ut because It will be regarded as unfair competition. Thirty Mins. of Show Smith show already has played In Boston and Detroit and reports to the Hays organization Indicate that only A. & P. employees attended and by invitation only, show con- sisting of 30 minutes of entertain- ment and 30 minutes of sales stuff. Tlnelr survey of the situation re- veals, that last portion was to give clerks pep talks, and that the whole thing was rated In the nature of a traveling sales convention. Smith show will be closely checked by Hays organization rep- resentatives on all angles. While looked on as strictly a theatre bat- tle, In the opinion of Haysian offi- cials, the M.P.P.D.A. Is interested because eventually the free show racket affects both producer and distributor. Developments In the Guy Lom- bardo situation also will be closely Vratched by the Hays office because of the admittedly strong drawing power of this , show If It's put on with no admission and \open more or less to the'public. Fear in some Hays circles, while not openly expressed, was that too ma.ny big advertisers, may fbllow thu lead of the first two or three with the free show stunt. With some 30C or more big firms capable of following through with si liar free shows, .situation might develop where there would be ore 6i these big free radio shows In o.ne or two spots every,nlght in the year. . iievivai of the free radio ishow in giant sized public auditoriums may bring a showdown Jn the old dis- pute over all types of free radio broadcasts where more than 1,000 people attend. So far all disputes over this have brought a more or less 'h^nds off' attitude on the part oi the Hays office. But in the pres- ent situation sufiDcient facts may be collected to establish a case of un- fair competlsh. Certain exhibitor leaders In recent months have come to look on large Friday, Saturday and Sunday stu- dio, broadcasts as unfair to their business. Tickets for these' pro- grams, which are attended by 1,600. people in some instances; are sup- posed to bo only for the sponsoris and their dealer and trade friends. Biit when the broadcasts continue drawing this number of persons week after week for as long as 24 weeks» picture exhibs think It's carrying the thing a little too far. Siehenley—General Motors Schenley company (whiskey) Is adopting free shows in a big way, but. declares the shows will only be & replaceitient for the usual forms of institutional * advertising aiii directed strictly at the dealers, chiefly to introduce and plug new products. - General Motors is reported plan- ning to send out a tent show. Sponsors of leading national pro- grams are also mulling the idea of placing elaborate Diorama exhibits in the large display space of the mezzanine floor in the Rockefeller. Center building, Figure that they should be given break In cashing in on great influx of. visitors who go through this portion of building ori NBC studio tours. With nearly 600,000 people passing through on these tours; sponsors believe this would enhance value of their pro- grams and products. . Plan is to have miniature repro- ductions, via the Dioramas, of typr leal radio broadcast scenes. Cities Service, with Its large orchestra and Jessica Dragonette; Maxwell House 'Showboat'; Ipana's Town Tall To- night,' and others would be shown. There are five large showcases available for either five or 10 such exhibits. Each would cost approximately $1,000 or less, but would be perma- nently set after Initial outlay for a year or more. Dioramas would supplant the present technical ex- hibits now installed on this leveL Monona, la., Sept. 24. The fall festival staged here last week by local merchants was marked by unusual showmanship in that talent was imported to give an impetus to sales as well as to' pro- vide entertainment for rural visi- tors. Three bands were on deck, with free acts to entertain kiddles while merchant's reaped a pprtlon of the harvest coin. A baseball game vf&a a big fea- ture to distract the male contingent, while the femmes browsed through the stores. Oregon After More BJl. The Oregon legislature is going into special session Oct. 7 for 20 to 30 days to consider, means of raising additional revenue for the State. Picture'leaders fear a part of this burden may be thrown on the shoulders of the film industry through taxiation. WEILMAN'S 'GODFATHERS' Hollywood, Sept. 24. William Wellman gets assign- ment at Metro to direct 'The Three Gbdfathers,' talker remake of story by Peter B. Kyne. Silent version made number of years ago by Uni- versal. Feature will be the first to be supervised by Joseph MankleWicz under the production wing of Sam Katz. ' Wm. Fax (Continued from page B) market losses, items totaling nearly $500,000, Which Fox sought to de-. duct as reimbursement for prior ex- penses, and various other amounts Fox wrote down or neglected to in- clude in his 1929 and 1930 returns. Charges are levied .at Fox In con- nection with his stock operations In ItSO, Including an a.ecusatlon that Fox's loss claim of $8)047,864 In con- nection with sales to All-Cohtlnient Corp" was entirely fictitious. Jack- sou contended that All-Continent was a wholly-owned holding com- pany, although Fox's name did not appear oh ihcoirporailoni^ilcket,. and that sales to this cbrporatibn were merely .paper transactions, with no money changing hands. Specifically, the Revenue Bureau challenged Fox's claim for losses of $1,486,798 in connection with stock sales through Loeb, Alsberg & Co.; Hlrsch, Lillenthal & Co.; Benjamin Block & Co., arid Fenner & Beane, and $8,047,853 resulting from trans- actions w'ith All-Continent. Intricate transactions with Har- Icy Clarke, which puzzled Senate Bankln£; Committee during the 1932 istock market Inquiry, bobbed up again as Government charjged that Fox ^knowingly and wilfully' forgot to mention in his 1929 re- t^rn, net pr6flts of $2,369,126 result- ing from dealings in General The- atre Equipment, Int., and Grandeur, Inc. Petition states .that Fox did not report any Income in 1^29 from the G.T-E. and Grandeur transac- tions. The 1929 bUl also includes Gov- ernment claims for taxes on the ground that Fox overstated his al- lowable deductions by $1,484,358 In reporting losses from sale of stock In various corporations. -Another group of items in the 1929 controversy affect sums amoui " ig to $496,067 which Fox sought to 'deduct on the ground they were relmbtirsement for com- pensation payments' made by him to Lee DeForest, Courtland Smith, A. S. Kempner and Wilfred, Inc., presumably in connection with sound film experiments and re search. Government claims that Fox deducted comparable amounts in priof; years and cannot claim ex- emption twice for these items. $1,000,000 Penalty The biggest claim, however, re- lates to the 1930 stock deals, which involve 1 oth Fox Film and Fox Theatre securities. "Whopping pen- alty of nearly ^$1,000,000 Is* de- manded by the'Government on the. ground Fox attempted to write down his tax liability by claiming false or excessive losses. Principal matter In this connec- tion is this $8,047,863 transaction with All-Continent,' whiah the Government maintains was not oh the up and up. Counterlrig Fox's claim that he sold stock in various companlies to All-Continent for cash, the. Government declared 'in fact and in law the petitioner ex- changed the said shares of capi- tal stock of various corporations with the All'-Contlnent Corp., a cor- poration organized In 1930, for capi- tal stock of AU-Continent Corp., the transactions being such that for ta,x purposes neither loss, nor gain could result." Balance of the 1930 assessment grows out of deductions claimed on oth^ stock deals in which Fox al- legedly swapped' certain unidenti- fied securities,'through the four New 'Tork brokerage houses, for All-Continent stock. In support of its claim, Government qubtes or- ders to Ihe brokerage firms to sell and purchase securities held by Fox personally in margin accounts. G.T.E. securities figure In these deals. The Government's conspiracy charges, expected to form a founda- tion for crirtilnal cases, are en- tered in connection with each of the five stock transactions, all accusa tlons being identical except for amounts and dates involved. Deliberate 'A deliberate attempt was made by William Fox, who signed cer- tain letters written to Loeb, Als- berg & Co., referred to hereinabove, and took an active jpart in the trans- actions hereinabove set fortlf, arid by Herbert Leitstein, who signed each of the letters written for the Al-Contlnent.Corp. to the-Commer- cial National Bank & Trust Co., and took an active part in the trans- actions hereinabove set forth, and who is risj the same person who signed ajid filed the Federal in- come tax return of William Fox for all years from 1924 to 1931, inclu- sive, to handle the said transac- Among the Women By The Skirt Best dressed woman .of. the. w«ekt.. VIRGI lA BRUCE ('Here Comes the Band'-^Fll .At the Zlegfeld theatre Is a double feature-^arbo and Ted Lewis' pic- ture, 'Here Comes the Band.' "Virginia Bruce is the leading: woman and wears a wardrobe of note. She appears first In a black suit and white blouse with a dainty lace collar heM at the throat with an elaborate diamond brooch. The small brimmed hat had a dotted veil. An evening frock was of a dotted material with a full bertha, of lace. A dark chif- fon, with an: off the shoulder effect, was another gown, and-a lighter .chiffon dress.had .a. double.bertha witJbL.smaU ruffled .trimming.. A mluk. coat cbvered a white satin gown. Miss Bruce also'looked lovely in a. tunic suit of a lightish cloth. A large hat had one pompom as trimming. Ted Lewis Is backed In one musical number by. six girls in tight-fit- ting gowns. Three in white, the rest in black. A chorus of girls was in black tights worn with short swallow tailed coat of what appeared to bb jet, tall hats matching. Collars and cuffs were of white cellophane. Lewis' pe-anut number had the girls in Argentine costumes of the inevit- able ruffled skirts and brassieres as bodlcesi Eleanor Powell Connects New York is finding itself Eleanor Powell conscious. And Justly so. 'Broadway Melody,' at the Capltbl, Is a Jack Benny picture, but he Is shoved, into the background by the outstanding performance of Miss Powell. Hollywood has worked wonders with this young woman's app^irance. Her straight bob has been changed to a soft coiffeur consisting of a middle part, soft curls at the neck and no artificial eyelashes. 'What a blessing. In neat tailored dresses. Miss Powell Impersonates a Frencb actress iii a suit trimmed with a double tow of fbx, arid a platlnuin wig is most becoming. A dance routine is done In black tights with a plain black velvet one-plect» tunic. Thrown over this is a long velvet capo lined in white. A party frock seemed to be of organdie In many l:uf-< fles with spangled belt. Her tap dance Is done in long white pants with swallow tailed coat and high hat of silver sequins. Lovely is a pearl ballet with Miss Powell in a shlmmery net frock conslstirg of a full skirt with a much besprinkled sequin bodice. June Knight wears many fine clothies. An evening dancing frock was of lace ruffles with a sprinkling- of spangles. A black velvet street outfit was oddly trlnrimed across the back with- silver fox. The neck line was held together by a long bar pin. The small hat bad the new squ&re effect. A very large hat was worn with, another black outfit with silver fox again. A light cloth suit was worn with a small veiled hat Miss Knight's dress in the finale was of chiffon miade long and clinging and is embroidered elaborately with spangles. Una Merkel, as a telephone girl In a theatrical office^ otters regulation dresses and .shows one black suit with a short jacket. An evening frock was a dotted materiaL Miss Ebsen, dancing with, her brother, is another dancer to be reckoned with. She looked ibvely In a white skirt made long, full and worn with a sleeveless black bodice. The ensemble num- bers were all dressed as only Hollywood does them. The pearl ballet had two sets of costumes arid In another number one sided black sequin costurii^s were most effective. Bette Davis' Sole In the picture 'Secret Agent' Bette Davis has everything her own way Inasriiuch as she is tbo only woman concerned. It's an exciting picture, but clothes are not Important. For the entire p'ctiire Miss Davis is seen in simple office dresses made very plain with lacy Jabots, Hats wer« small with and without brims. Louis Sobol's Grpup At the State Louis Sobel is m.c, assisted in the hand clapping by Jack Waldron. 'Broadway On Parade' this unit is called. House orchestra Is on stage In a. night club setting. * At tables sit those who enterta,ln. Among those present Is Dorothy Howe, one of those beauty contest win- ners. She just sat, excepting to stand when presented with flowers .from the Coney Island (Jhamber of Commerce. Her gown was of a blue crepe material with a cerise touch' at the back. Martha Raye, doing her tipsy bit in a black and white frock, changes to a jade green chiffon, the skirt being accordion pleated with the bodice shirt waist fashion. Lucille Mele did her first dance in a black ceri dress with but two clips as trimming. The second dance was done In an oyster white dress wbm with a short shoulder cape. Edna Sedgwick does her taps on her toes in a short dancing frock of white. Miss Sedg- wick joined the table sitters later in a white chiffon. Palace's Final Vaude To be regretted Is the finale of vaudeville at the Palace. An entertain- ing bill for the finish, too. < Helen Reynold and her seven roller-skaters open in white trunks and brassieres sparkling with brilliants. Short half skirts consist of gold fringe, Dick and Edith Bar stow show a dancing act of more than aver- age merit. The little miss appears first in a white blouse and blaclc skirt. A green hat and scarf add the one touch of color. A flame chif- fon frock, made with full pleited skirt, was worn with a gold cape lined with the flame color. A toe-tap dance is done in a white shirt frock picked out with a black embroidery. The girl's limbs looked well In sun-- tan tights. ^ Clara Barry, doing her familiar act with Orval Whltledge, Is dressed in a ruffled gown of black chiffon with two diamond clips as trimming. tlons between 'W^illlam Fox arid the AU-Continent Corp. in a way that the true facts would not be discov- ered for the' purpose and with the fraudulent Intent of William Pox evading the payment of Federal tax due from William, Fox on his income for the year 1930 by making claim of deductl)ns for losses as result- ing from the sale of stocks pur- porting to have been for cash, whereas the transactloris were in fact and in law exchanges of stocks for capital stock of AU-Continent Corp., William Pox at all timies In 1930 owning all the capital stock of All-Continent Corp., 'the Govern- ment' declared in summarizing the $8,047,853 claim. The petition de- clares that Fox and Leitstein 'wil- fully and with fraudulent Interit to evade tax due' claimed excessive or phOny deductions and losses in this and the ^ other deals. Another major Government charge Involves the value of Fox Film and Fox theatre stock sold by the ousted magnate in 1930. Repeating charges that Fox and Leitstein 'fraudulenty and with intent to evade' liability claimed excessive amounts as the basis for deciding the amount of gain from, security sales, the Government declare-s that Fox attempted to duck taxes on at least $8,500,000, In cbnnection with isale of 50,101 shares of Fox FUms B common, ■ Fox claimed the basis for deciding the amount of gain should be $5,- 010,000; the Government said $501,-; 010 Is the maximum upon which' the gain should bo figured. On this basis, Government charges Fox tried to avoid taxes on $4,509,090. In connection with sale of. 100,< 000 shares of Fox Theatres B com- mon. Fox claimed $8,125,000 as the basis for deciding the gain; Gov-, ernment said. $3,897,123 is the max- imum upon which profits should bo calculated. Consequently, Gbyern- ment cha ,jc.s Fox tried to avoid taxes on $4,227,876.