Variety (Nov 1935)

WibdnesnSay, November 6, 1935 PICT»RC^S VARIETY $270,000,000 Decline in 1933 Gross Of Industrial Group Ind. Show Biz ■Washington, Nov, 5, •A J276,OP0,(H)O, decUhfe: in 1933 gross receipts socked tlie industrial group in which the government ranks uTOUsements, the. treasury depart- ment revealed Monday (4). Beneficial effects of the start of the New Deal were reflected in the black-bordered. report.„oo cfirporar tion effrnings for 1933, however, and the summary showed that while the amuaement-hotel- prof esslonal- serv- ice group ran In the.red the 1933 deficit was substantially less than for the last year of the Hoover regime. Aggregate loss for this In- dustrial classification was $89,338,000 less ih 1933 than in 1932. Total take of the group in which amuseihents are placed amounted to $2,823,466,000 In 1933, a decline of $ii70,746,000 below the prior year. But the Imposition of new federal taxes to pay the bill.for Roosevelt relief measures resulted in a $137,000 Increase In the total amount which thfc group was compelled to kick in to the treasury. Revealing that the .back-to-pros- perity drive produced few. If any, fiereflts for this industrial class, the treasury's latest report showed that dividend payments by amusements, hotels, and service establishments were some $29,600,000 less than dur- ing gloomy 1932. Cash dividends amounted to a paltry $42,638,000— down $29,638,000—while stock divi- dends rose an insignificant $87,000 to a total of $1,629,000. The excess profits tax, revived by the N^w Dealers: to meet , the cost of the first Roosevelt public works progr^in, added $239,000 to the. tax bill handed to this Industrial class. Income tax. payments, .despite, tlie rate jack-up' In 1933, were down $376,000 to $8,478,000. Jiist as the gross operating^ deficit for this group of Industries was smaller in 1933 than In 1932, so did the net loss after taxes show a de- cline. The rock-bottom' deficit in 1932 was $405,077,000. Continuance of hard sledding into 1933, resulted ih increased mortality among concerns in the professional- arousements-hotel-servlce grouping.* Number of income tax returns dropped by 297 to totdl of 42,986. TAILSMAN LOT TOTES PEAK INDIE LOAD Hollywood, Nov, 5. Peak production capacity was reached yesterday (Monday) at Talisman studio. Sxcelslor began new Tim McCoy starrer; Regal Productions Is shoot- ing English and Spanish versions of 'The Rest Cure'; James Handy Pro- ductions doing commercial film for Chevrolet and Academy Productions starting 'The Thrill of a Century.'. Graves Asks $2,000 For Frosty Pic Deal Los Angeles, Nov. 6. Due to alleged delay in produc- tion plans of George Reagan, Jr., Municipal. Court suit for $2,000 has been filed here against him by Ralph Graves. Graves contracted With Reagan Sept. 3 to make eight pictures, for each of which he 'vyas to receive $1,600; according to complaint. Under terms of agreement he was to have been given two weeks notice, suit says, but after flnlshlhg first, second was delayed an extra week before he was told de-al was off entirely. He asks $1,500 for pic- ture and $500 for delay. JOY AT 20TH-rOX Hollywood, Nov. 5. Jason Joy has been handed a new term contract by 20th Century-Fok as public relations director. , His duties win be to contact and work with all official and unofflcial agencies concerned with picture production. Burton Trailing Wagner Hollywood, Nov. 6. David Burton Is in New York ne- gotiating with Eva Barcay for screen rights to her play dramatlz- . Jng the life of Richard Wagner. John Boyce Smith's option ex- pired Oct. 31, and if the deal is closed Burton will return to the (Joast and produce It. %q' Gets a Home Hollywood, NaXi. 6. With Universal feeling rights to 'Quo Vadls' were not entirely free and clear, Carl Lemmle, Jr., and Paul Kohner, two U producers, jumped In and paid $8,000 for the rights to Unfsne Ciff^bmetogr'aphi Itallano of Italy. Duo made the' buy after hearing Metro was Interested In. the pic and are now asking $50,000 for their holdings. MRS. AMBROSE SMALL'S $2,000,000 TO CHARM Toronto, Nov. 5. Approximately $2,Q;00,e0O was left by Mrs. Ambrose Small to Roman .Catholic charities, according to pro- bate of will herie. She* was the. widow , of Ambrose Small who .dis- .'appeared after leaving the Grand ;opera house oh the evening of Dec. 2, 1919, .and who has never been heard of since. Prior to his disap- pearance, he had just closed the sale of his chain of legit houses to Trans-Canada Theatres, later ab- sorbfed by Famous Players Cana- dian. The purchase price was $1,- 750,000 of which $1,000,000 had been paid in cash and placed in the Do- minion bank the day before Small vanished. : After '-Mrs. Small's death, ne- gotiable bearer, bonds were found, in her safety deposit box amount- ing to $1,500,000. Her bank deposit .balance .. stood, at. $600,000^ Other items as filed ior probate include Regent Theatre mortgage, $250,000; .interest ih agreement with Trans- Canada Theatres, $250,000; Domin- ion Government' bonds, $100,000; paintings, $1,000,000; residence, $40,- 000; motor car, $3,000; jewelry, $100. Prior to Mrs. Small's death, set- tlements had been made on four 'berreficiaries; ' Balan'ce' 'of assets,- after the bequests of $2,000,000 to charity are made, reverts to the estate. \ "Bounty V Big Rally In addition to being behind 'Mutiny on the Bounty* with an ex- tensive national campaign, Metro is spending $26,000 on the New. York opening, with around $15,000 of this amount going into the newspapers. picture stands Metro close to $2,- 000,000 in cost and this fact Is being ciampalghed In merchandising. Mrst Instance in some time of a company publicizing cost figures." Newsreel'S Coyerage Of Grid G^es Miiich In Demand but Costly Football Is the national pastime as far as hewsreel patrons are con- cerned. Check of newsreel offices here reveals demand and popularity of scenes from big gridiron battles each week during fall far exceeds that of any other sport. Strange feature of ttilA check-up is that this season, football in the newsreels Is topping even the World's bas^eball iseries from standpoint of exhibitor jclemand. Newsreel companies regard foot- ball coyeragi) a big expense with little added return to counterbal- iance. Reason grid shooting Is so expensive is that cameramen must cover whole 60 minutes of game to protect selves ahd to lie s^ure to grab all scoring, plays. With 3,000 feet of film needed for each quarter on average, newsreel grinders use up 12,000 feet of negative for whole battle. From tMi, th« newsreel executives culL 160 to 200 feet of ac- tion' stuff, including of course, scor- ing plays-or all vital maneuvers when scoring id cut to minimum. Another added cost Is demand for ^peed -in-some locaUtles.'Most newB- 'reel outfits-giving; coverage to Pad'- fic Coast battles have been forced to 'supply print serviced night of same .day gande wfrs played because ex- hibitors claim their patrons want it Expense of reedltlng longer local football for regional or national re- lease is anc^ther item. Only con- solation on high cost situation as far as newsreel executives are-con- cerned is tliat season, as far as newsreel coverage goes, lasts only six to eight weeks each year. Warners Concludes Its Defense, Schaefer (Par) Refutes Arthur s Charges, Depuiet Next; 6th Week Rain Check 'Hat' Hearing Los Angeles, Nov. 5. Hearing oh tempbrary Injunc- tion", restraining d ;y-date showing of Radio's 'Top Hat' at, the down-, town. Tower and' President, comes up tomorrow (Wed.) before Su- perior Judge Emmett Wilson, after being postponied from Monday (28). Pending hearing, temporary in- junction remains in force. GOLDWYN-FWC TIFF, AVER TERMS TOO HIGH Hollywood', Nov. 6. Deal for Sam Goldwyn pictures to play the Fox-West Coast theatres was called off by the producer when Charles Skouras termed the per- centage demands excessive and agreed to a cancellation. It will be the first time that Goldwyn pictures are missing from F-WC screens In years. Circuit is now closing with Uni- versal on the last of its product buys. FENTYESSY'S 80TH Rochester, N. Y., Nov. 5. Albert A. Fenyyessy, pioneer, pic- ture theatre operator in Rochester who has five sons and a daughter all running theatres,* celel rated hly SOth; birthday at his- home here. Coming to the city in 1910 after running theatres In Binghamton and Troy, he built the Rlalto and later the Regent, and had a piece of the Rochester. He still heads the Fenyvessy.. Enterprises, wtilch. 'oper-. ates the Strand, Family, Madison, Monroe and West End. and leases the Capitol. His datighter, Mrs. Florence Bel- inson runs the Little, and' a son, Carol, operates the Rexy. 30 YEARS Make no mistake about it—show business has decentralized* The departments used to be distinct—vaudeville, legitimate pictures, circuses* Then came radio* And radio erased the bound- aries. Talent expanded its former restricted fields. Scores of outstanding personalities excel in several divisions. Others strive for recognition. It is the era of versatility. For 30 years VARIETY has held the mirror up to show business. Its columns tell the story of transition. Not limited to one form of professional entertainment, it covers all branches and divisions. Not confined to one country, it is recognized through- out the world as the only authentic and universally accepted news and advertising medium of the artist, manager, theatre and broadcaster. The vitality of its editorial policy has served show business in public relations outside of entertainment for a generation. In December VARIETY publishes its 30th anni- versary number, a text book and guide for the ensuing 12 months. Reservations for space ar^ now being made. St. Louis, Nov. 6. Adjourned from last Friday (1), the U. S. Government's anti-trust proceedings igainst Warner, ros.. Paramount aiid RKO, and several of Its officers, resumed this inorning (TiTeyday); with- Paramount wind- ing up its end of the defense. Ned Depinel, . prez of RKO Radio Dis- tributing Corp., started his com- pany's defense testimony. After Harry M.. Warner's gener- ally conceded good account of him- self on the witness stand, George J, Schaefer, v.-p. and general sales head of Paramount, and Nell Aig- new, his sales manager,^ outlined' their aspect of the film distribution defense that no conspiracy existed in not selling product to the Am- bassador, Missouri and New Grand Central theatres, as alleged by Fan- chon & Marco through Harry C. Arthur, its. executive. The case, now In its sixth week. Is figured for another 10 days or two weeks at least, although neither Government nor defense counsel wIU venture a guess for publication. Much acrimony between the fac- tional legail groups figured all through last week's session, as it has all through the proceedings. Judge George H. Moore, presiding, iii several instances testily chlded both sides for technical exceptions and objections. No Delay Death on Sunday (.3) of Benjamin Warner, father of Harry M, "War- ner, president of WB and one of tlia; defendants on trial, in'Youngstown, O., will not delay the proceedings, According to former Senatof Jamea W. Reed of WB's array of counsel. Benjamin Warner, who lived in Loa Xngeles, was visiting, his daughter, Mrs; David Robins, when • lie was stricken. Harry Warner left SUn- jlay. night but was .expecterd-back, in hid bhair at the defendants' table tn. k day or. two. I Jacob' M. Lashlyv St. Lpuls, and George C. Leisure, New York, attor- neys for Deplnet, have been in .con- ference with most of the defensa couhsel since court adjourned Fri- day (1) arranging defense for re- mainder of trial. Neither could foretell how many witnesses would be called in behalf of their client. Russell Hardy, head G-man for the Government, stated he had not determined whether any wlfnessea will be called In rebuttal; saying, 'We may not call a single one.' Tomorrow (Wednesday) or Thurs- day (7) the trial court will move to. Its new quarters In the recently completed custom house and when case reaches this courtroom it will be the third in which it has been tried since September, The trial started in a tiny room on the fourth floor of the Federal Bldg. and be- cause of Its inadequacy moved to a more commodious room on the third floor, ^here the din raised by street cars passing on all four sides of the building Interfered with trial when windows werie opened during warm weather. New courtroom will over- come this objection as building la alr-condltloned, George J. Schaefer of Par, a co- defendant, and several others in- terested in trial todk advantage of the three-day recess to visit home office, Schaefer Refutes Arthur An alibi that he was in Florida last year when Harry C, Arthur, Jr., of the Fanchon & Marco Inter- ests testified he sploke to him over the telephone In New York about the film -war In St. Louis, was given by George J. Schaefer, v.p. of Par Pictures Distribution Corp., fourth of defendants to testify In their own behalf. Schaefer took the stand Friday (1) and after telling how he rose from position of stenographer for an oil company to' an exec for Par, identified 40 cancelled checks, pro- duced by his attorney, Sam W. Pordyce, sliowing purchases of orange juice, food and Hotel rental at the Roney-Plaza hotel, Miami Beach, between Feb. 1 and March 9, 1934. Ru.sseli Hardy objected to In- troduction of checks...stating Schae- fer'a presence at tho hotel should be verified by hotel offlclals. An- ticipating such a move, William R. Gentry called A. A. Tllson, auditor of the Florida hostelry, who planed hero, and he corroborated Schaefer'a testimony. Continuing his te.stlmony Schae- (Continucd on page 29)