Variety (Mar 1936)

Wednesday March 4, 1936 piiiuhes VARIETY N.Y/S GIVEAWAY TEST CASE —;^5 ■ ■ ■ Geo.XSchaefer in DA as V.P. in Charge Of Sales; May Add More Producers Samuel Goldwyn on Monday (2), representing the board -.of directors' of United Artists, announced the appointment of George J. Schaefer as a- 'V.p'. and' general sales man- ager of U.A. In charge of American and Canadian distribution. Schaefer already has assumed his new post In the very office where, 20 years , . he started in the business- as secretary to the late Lewis J. Selz- nick. Today, David O., a son of X. J. Selznick, is among U.A.'s principal producers. Schaefer's contract is for three years. Maurice SUverstone; chairman of the United Artists organization in England and abroad, continues to head, that company's business in Europe. Kelly's Now Deal Goldwyn paid tribute to Arthur W. Kelly who has been in charge of the company's affairs in the east since, the departure of Al Lichtman, on a temporary assignment. Gold- Wyn credited Kelly with having done a commendable and successful Job of holding the company to- gether during that. Interlude that culminated with the naming of Schaefer; In tribute to Kelly's work during this period, he has been given a new two-year contract with an, increase.. Kelly continues as v.p. of UA in charge of foreign sales, exclusive of England and the Con- tinent; , Goldwyn sails for Europe today (Wednesday). At Paramount, where Schaefer served for 15 years, he attained the post of v.p. In charge of distribu- tion and general manager of that company, prior to John E. Otter- son's advent into Par. Schaefer left Par, shortly after Otterson became president of Par. Other Bids It is known that Nicholas M. Schenck talked with Schaefer con- cerning a possible connection with Metro. The U.A. matter was talked about even prior to Paramount's reorgani- zation When Schaefer, seemingly, was offered a U.A. post. Schaefer had been vacationing in the south. When he cairie back the middle of last week the : deal Was closed. Trade talk Is hot again that other producers . may hook up with U.A., with Schaefer in the company" now. Walter Wanger's recent affiliation is said to have been partially In- fluenced by Schaefer's prospective advent. Woolf, with U Contract In Kick, Joins Bernhard In Reed and Segal Deal London, March 3. With the deal between Charles M. Woolf and Universal for distrl bution on this side; closed, the next move being negotiated here is for the recently acquired interest by Fred Bei*nhard in the Reed and Segal circuits to be organized into a public company. Bernhard and Woolf will become managing direc tors of it. Woolf* s part in the deal will be to throw In his Universal product as part of the company's assets. PROD. HUM AT METRO BUSIES 77 LENSERS A Lenten Asset? Last year during Lent many exhibs were Surprised when the 40-day self-denial stretch did not seem to hurt biz nearly so much as in years, past,- and al- ready exhibs. are noting that at the beginning of current Lenten season the boxoflices do not seem as materially af- ■ fected as in former seasons. One reason advanced is that the Legion .of Decency has be- come" an asset. There Is now scarcely a diocesan paper that does not feature listings of all Alms; and a great many of these sheets carry theatre ads and amusement pages replete with readers and kindred pub- licity copy. Some papers al- most used the Decency cam- paign at Its white-hottest as a wedge to get theatre adver- tising. The 'curse' of seeing pix dur- ing the Lenten season ■ seem- ingly has been somewhat re- moved by the church publica- tions which have made their readers more film conscious. Expected That Ruling in N. Y. Will Serve at Model for Rest of Country-— Moss to Enforce Same as Pin-Game Tactics EXHIBS WATCHING Hollywood, March 3. Production activity at Metro last week, with nine features and one short in work, had 77 cameramen working on various units, in addi- tion to a group on process shots. Largest group of grinders used on tl.e 'Romeo and Juliet' and 'San V.i in-l.-.i'o' units, Selznick Tints 'Allah' Remake, 'Dark' Set Back Hollywood, March S.- DaVid O. Selznlck's second film production, to be made In Techni- color, will be 'Garden Of Allah,' rights to which, producer have acquired from Robert S. Hlchens, the author; Picture Will probably star Merle Oberon, with Richard BoleslaWski directing. 'Dark Victory,' also Intended as starrer for MIbs Oberon goes back to third place on the Selznick pro- duction calendar. 'Garden of Allah' was made by Rex Ingram In 1927. FWC-20th Product Deal Hollywood, March 3. Spyros Skouras and Ed Alperson plane to New York tombrrow (Wednesday), at which time It Is expected the 20th-Fox product deal with Fox-West Coast for next sea- son will be closed. Matter of Git-Edge Securities Figured by Laemmle to Keep U Co. Control to Himself After March 14 LE BARON'S DEAL Said to Be Temporary—Sheehan Still Undecided Despite N; T.'s License Commis- sioner Paul Moss holding his Are pending definite settlement of test exhibitor lottery- case, there is every indication that startling ac- tion against innumerable stunt nightB Incorporating the gambling idea will occur in Greater N. Y. within the fortnight. "Any steps tending to curb bank nignt6, lottery giveaways, contests arid other freak setups, incorporating, the element of chance, when and if taken in New York are expected to set. the pace for remainder of the country. Film exhibitors who still believe that pic- ture product should be used to'at- tract patrons think, that if N. Y. puts its foot down on lottery, nights, it Will serve as model for action on the part of industry leaders and of other city, county and state officials. Commissioner Moss threatens- to clamp down In a sweeping move against film theatres in much the same manner in which he attacked pin games In cigar and candy stores and pool halls. The license com- missioner already has admitted that he probably will revoke exhibition licenses where It can be proved that the bank,' screeno, Monte Carlo, Lucky, etc., nights are gambling, as defined by courts. If test case proves unsuccessful, other moves undoubtedly will be taken by him, regardless. Commissioner Moss last week found a so-called lottery stunt be- ing worked at afternoon shows at the Academy of Music, N. Y. A number of houses already are hold- ing some freak stunt every night in the Week currently. In Moss* opin- ion the lottery and giveaway nights, unless curbed soon, may spread so that one will be held at every show. He agrees with Ideas of industry leaders that all exhibitors soon will be on same basis, with all operating stunt nights, only that each one will have additional expense of staging freak stunts. Favor Abandoning 'Em ' Recent meeting of representative Greater N. Y. exhibs in Moss' of- fice showed that majority of ex- hibitors favored abandoning these (Continued on page 72) Hollywood, March 3. William LeBaron's status, as Paramount studio production head appears to be a temporary stopgap, It' is understood. While John E. Otterson and W. R. Sheehan apparently are in agreement on a possible deal for Sheehan to join, the Par folij as a unit producer, it is understood that a definite arrangement by the company with Sheehan, reduced in writing, is still in abeyance. PAR BOARD, SO FAR, ROUTINE IN ITS BIZ 20th-Fox to Shut Down 85% in May And June, Zanuck to Vacash WARNERS H. 0. EXECS END STUDIO CONFABS Hollywood, March 3. The Warner home office contin- gent is clearing out this week for New York. Joseph Bernhard, gen- eral manager of theatre operation, left Saturday (29). Harry M. Warner, Gradwell Sears and Andrew Smith pull out tomor- row (Wednesday) after having gone Into the 1936-37 product lineup and decided upon an increase for next season of five feature pictures from GO to G5. Nick Schenck Stays On Hollywood, March 3. Nicholas M. Schenck is remaining at the Metro studio possibly another 10 days on product, conferences and Ihe new Irving Thalberg contract Hollywood, March 3. With 1935-36 program completed and enough features on hand to take care "of early season 1936-37 requirements, Darryl Zanuck will take a six weeks vacation early in May, with 20th-Fox studio 85% closed during May and June. Currently, studio has three picts to finish for the '35-'36 program of 53 features, with two of these put into production yesterday (2). Third will get going within i0 days. Close to dozen pictures of the '36- 37 program will have been put in the can at Westwood by time of Zanuck departure. Sol Wurtzel, who is producing at the Sunset-Western plant, will con- tinue operations during Zanuck's absence, with several plcts in work during that period. Upon Zanuck's return, Wurtzel probably will take a two months European trip, during which time his plant will virtually shut down. Effective immediately four Para mount subsidiaries, two of them-bf major importance, cease to function, the business of each transferred directly to. the parent company, Paramount Pictures, Inc. Thd com- panies on which books were closed as of Feb. 29 were subsidiary to the old Paramount Publix Corp. Latter went into bankruptcy but these and other subsidiaries w4re solvent. Subslds are Paramount Pictures Distributing Corp., which controlled all domestic sales; Paramount In- ternational Corp., controlling all foreign distribution; Penates Trad- ing Corp., a sub.sld which dealt in export trading, and Parager Corp., a realty company. Other subsidi- aries may be gobbled up later by the parent organization, with the sets of books and essential board meetings of subslds thus cut down. The parent board at its Thursday (27) meeting ratified the merger plan on the four subsidiaries and discussed the Mae West-Hearst situation as well as production and studio setup. John E. Otterson, president, reported on production and plans, outlining what was being done and pointing out that prepared scripts ready for shooting were well, ahead. No action was taken on confirma- tion of numerous recent production contracts given out by Otteuon. These v include the producing con- tracts to Winnie Sheehan, now in New York, and Frank Lloyd; new contract for Boris Morros as music head and producer of musicals, and William LeBaron. The board took no action In the Mae West matter, with all bookings and plans going ahead undisturbed. Hollywood, March 3. Laemmle still figures that despite the current held by the Charles R. Rogers- Cpwdln (Standard Capital .Corp.), group expiring March 14, he .can. retain control of the company; in. the original deal made for tho Laemmle and associates' stock, amounting to around 80%, purchas- ers are to pay $1,500,000 in cash and put up gilt edge securities equiva- lent to the balance of $4,000,000, which is to be paid off $500,009 yearly and bearing 6% interest to Laemmle for unpaid portions. Technicality on which 'Laemmls figures he-can- avoid -the pickup is that r. A. P. Glanninl, of the Bank of America, Is to decide what stock is to be accepted as security. Laemmle will insist, according to the deal, that the securities put tip be kept at par, meaning $4,000,009 face value,, and be able to bring about the 6% interest. With gilt-edge stocks only bear- ing around 2%.% Interest, it is fig- ured, that the purchasers would havo a hard job putting up ' suitable se- curities to bind the deal. In tho meantime, Rogers here has been trying to induce Laemmle to accept $2,000,000 in debentures of the com- pany, with the balance to be covered by securities until paid off, Laemmle feels that the hitch will be brought about by the .security requirements and that the option will, lapse and permit him to re- tain the company, which he feels Is now in a healthy condition; due to the fact that money is coming la steadily from releases. Laemmle left town for the week- end. Reported he went to Ense- nada for the reopening of the neV .Casino, while the studio claims he's at Las Vegas. Not due back till ths middle Of the week. C0SH0-WB SIGN FOR LONG TERM Hollywood, March 3. Cosmopolitan Productions has signed a new long-term deal with Warnt-r Bros., although the old deal still has a year to go. Production- releasing ai'rangement continues as originally set. With the release of 'Hearts Di- vided,' nine pictures will have been turned out by Cosmo (W, R, He-arst's ouflt), with two more to come to complete the current deaL 'Riffraff' Pickets Pinched on BVay More than a score of youths were arrested during last week in front of Loev.-'a State, on Broadway, for littering the sidewalk with hand- bills announcing 'Boycott Riffraff;' 1776, George Washington Fought for Liberty and .Democracy. 1936, We must fight to preserve it.' Magistrates differed in thplr de- cisions. One freed the yoiith3, while $inotb<?j' convicted them, but sus- pended sentence, E. V. Richards About New Orleans, March 3. E. V. Richards, Saonger theatres head, surprised employees by ap- pearing at his Canal street office in a wheelchair last week. Richards had been seriously ill. for the past few weeks. LICHTMAN'S FINDINGS ON U. S. FILM TASTES New Orleans, March 3. American fllmgoers are favoring action --dramas, with historical back- grounds in the opinion voiced Fri- day (28) by Al Lichtman, Loevr executive, here on the last lap of a three-month tour which has twlco taken him to the Pacific coast. Business in every section has im- proved, he said, a condition reflected from tlie box office. He believes tho Upturn is sound. Futures for two newcomers in films were .predicted by Lichtman. They are Robert Taylor and Louisa Elani^r. Lichtman spent two days here in conference with Thomas Conners, southern' and southwestern sales manager; Churli's Kesnick, Atlanta hoik? nianag"r; C. J, Bryant, New Orleans exchange head; RoCney D, Toups, Loevv's State manager. |vr<\ and J. Frank WHllngham, .\i"i>i]ii'.ln unit ropi'esenfatlve.