Variety (Jun 1936)

/ W^dn^eduTt June.?, 1936 PI C Thames SABATH PROBE RESUMES THURS. 'Washington, June 2. Resumption of government spying on the picture business Is on the ]' docket for the current week with the Sahbath committee of the House • .'aitcl the .Federal Communications ■-'CoUatnlssloh ' redoubling fire oh- ". Paramount and the American Tele- phone & Telegraph Co. - Despite kicks about the presence ■' on its staff <jf attorneys for a "Wall' street banker, which, had a hand In the film corporation reorganization, :_• the Sabath group looking at activi- ties of bondholders'-protective com- ' mittees has skedded another ex- humatlon. of Parattiount's financial skeletons, probably Thursday (4).. \ Committee is unmoved by protests that Max D. 9teuer, Its unpaid legal advisor,^ is dlaquallfied to direct the Par proble because -he la defending certain defendeCnts being sued ' by film company trustees as^ out- come of wrangling over stock re- . ■ purchase agreements. • While Steiier went ahead with his closed-door quizzing of prospective witnesses, he is not expected to take any part in . the open hearings. Since he is only a consultant, com- mittee win not use him to examine persons called to the stand but will leave question-asking up to other snoopel-s and lawyers. Paramount delving probably will be wound up in a single day, with Identity of • ; witnesses a dark secret. . , . , The P.C.C.'s rambling expedition into Tel & Tel history will get around to picture angles again this week, probably Thursday (4) when Samuel Becker demands . dope on production of propaganda. reels. Further Inquiry Into Electrlcftl Re- . . g^arch Products,- inc., financlnc of ,|»rpductlon, and , sounu .equipment _ )bl'z Is due later after Becker digs.out .facts about fll'ins made .for ^qhools. Women's clubs, and civic groups to ■ ^advertise the number-please busl- ■ ness; . Austin Keough, Par attorney, was ■' . '^heire probably in connection with .the. Sabath committee maneuvers ";aijouhd. paramount, It i? undetatopd ' ' 'tha^ had bCvU ih'cohfer- cinte with certain political leaders here. Rlfes New Orleans Not Little Enough for Films New Orleans, June 2. Mary Healey, Miss New Orleans of 1935, has quit her job as a stenog to sing with Albert Klrst and his orchestra in the Fountain Room of the Hotel Roosevelt. Ben Piazza, Paramount talent scout, has reputedly promised her a Job in films if she will take otE some iexcess weight. S. E. C. ReYeals Stock Deals by X L Warner And InfemT Cinema ., "Trade is beset with all sort of talk about what the purposes of the Sabath committee may be in its J^urther attempted inquiry into Par amount. Since Par is already re organized .it is questioned by many whether the Sabath committee may not be overstepping its privileges, Another angle is that the committee is.in the middle.between groups of bankers. Several offlcers and. directors of Par, including John E. Otterson, John D. Hertz, Edwin "Welsl, S. A. Lynch, Floyd B. Odium and H. A. Fortlngton, have been subpoenaed for the Washington hearings. ' 'Washington, June 2. In it? report of film stocks trains- actions, the Securities & Exch!a,nge Commission last week, revealed sale' of a large slug of 'Warner Bros. 5% optional convertible debentures by Jack L. Warner and relatively small shifts of the holdings of other in- siders; Warner shed 41,600 shares of the 6% debentures, but was left with 1,782,000 shares at the end of the month. He dropped 5,000 shares on April 13, and blocks of 16,o6o. 14, 000 and 6,000 on each: of the fol lowing days. Making no other deals during April, he checked in with 88,060 shares of Warner Bros, com mon, 10,618 shares of fS.S&^umula tive preferred. In his own name, and 4,786 cumulative preferred in the name of one of his holding com' panies, when he reported his hold ings to the Commission. Only other deal recorded in War ner Bros, stock was purchase of 200 shares common by Samuel Carlisle of'New York City, on April 24. Three Individuals from Los An geles, A. J. Guerln, H. T. James and A. C. Snyder, corralled 240,000 shares of International Cinema- cbhimon through ' a partnership, Regan Day, T^c Belated report shOA-ed that transaction took place March 24, six'days after the pdrt nershlp transferred 10,000 shares of International, to undisclosed ' per sons, kcqulted the huge block as 'Compensation' for unspecified ser vices. Regan Day, Inc., holdings at end of March comprised only the 240,000 common. Report did not in- dicate the exact individual interest of each of the three Los Angeles men in the International tickets. . the International tickets. ' Only other film securities deals by insiders involved redemption of 7,- 000 20t'h Centm-y-Fox 6% conver- tible debentures held by Sydney Towell of New York. Retirement of these ducats left Towell holding only 34 shares of common and 67 of $1.50 cumulative preferred at end of April, the report showed. Exhibitors Assn* Diksolves After 15>Year Dominance of Midwest Exhib Situa- tion—Jack Miller Resigns —Allied Tops Exhib Pic- ture DeOuto Sales Head For Gaumont on Coast , Los Angeles, June 2. • Paul deOuto, L. A. branch man- ager for Gaumont-Britlsh, has been given supervision of sales on the Pacific Coast. Returning here by plane from New York sales convention where new assignment was given him, deOuto was forced to remain aloft for more than two hours over L. A. by dense fog. CIRCUIT SWITCHES OP COSTS ON 8 REP. PiX TO $125,000 EACH - Hollywood,- June 2. •Republic will up budget of at least eight of Its new season's pro- ductions to around $126,000 In bid for gi'eater reqognitlon. Prior to merger with Monogram, top for features was around $25,000, Since amalgamation, figure has been upped to $50,000, and several times to $65,000. . Decision for new top was reached by Herbert Yates,. Republic prexy, who ordered more important writers and directors utilized, and-top names in freelance player column scouted. Leah Ray Backjn Pix Hollywood, June 2. Signed to term contract in New York after special tests, Leah Ray, featured vocalist with Phil Harris orchestra, reports at 20th-Fox Aug- IT when she terminates her pres- ent engagement. Miss Ra/s previous film experi- ence was in Paramount's 'Bed Time Story.' She also appeared In shorts •■•■ith Harris. $100,000 SLANDER SUIT VS.JOHNBARRYMORE Hollywood, June 2. Slander suit for $100,000 against John Barrymore has been filed by E. D. Camomile, former confidential secretary to the actor. • Camomile claims his reputation was injured by the asserted dec- laration by Barryniore over some $30,000 in bonds entrusted to his care. . Chicago, June 2. Withdrawal, of. Essaness circuit means the break-up of the Exhlbl tors Association, local arm of the Motion . Picture Theatre owners of America. .Jack Miller, who, as executive secretary, has been the guiding factor of the Exhibitors As- sociation, tendered his resignation from the body. It's likely that the entire organization will dis band, despite the fact thiat a num- ber of big circuits are still members Balaban & Katz and Warner Bros., besides a number of smaller exhibsj are Included. Miller Teatimonial ■ Film row, through the Film Board, is writing finis to the Miller-MPTOA chapter by its decision \o tender a testimonial dinner to Miller, to be held at the Palmer Hause June 26 Dinner is the Idea of Henry Herbel Universal exchange manager and president of the Chicago Film Board of Trade. Aaron Sapersteiri, presi- dent of Allied in Illinois, has been named chairman of the dinner com mlttee, Essaness, in - leaving the Exhibitors Association, has joined the ranks of Allied, the indie eSi^b organization. Disbanding of the Exhibitors As soclatlon marks the end of one of the most'influential units in the na tlonal MPTOA organization after more than 15 years. Miller him self was recognized nationally in the MPTOA r'anks as one of the key men in labor negotiations especially with the motion picture operators union. New Chi Set-up Neither B. & K, nor Warners will likely make any mpye to form an organization to take the place of Exhibitors Association, which means that Allied becomes the i-anking exhib group In Illinois. It moves up from a unit of small indie exhlbs to a group encompassing many na- tionally known Chicago tei-ritory circuits. Besides Essaness' circuit with its 28 houses, Allied now also has the Jones, Linick & Schaefer circuit, which Is particular impor- tant because of its three- theatre representation in the Loop, and the nabe Lasker circuit. Other operators now associated with Allied include Emil Stern. Ed- die Silverman, Sidney. Spiegel and Aaron Jones, Sr. Joe Brown's Foreign Fling Hollywood, June 2. Winding up his Warner contract middle of July upon completion of 'Polo Joe,' Joe E. Brown will pull out on European trip that will take in the Olympic games In Berlin Comedian's wife and his manager, M.-C. Levee, and wife, will accom- pany. On. returning, Brown goes under David Loew banner to make films for Radio release. 'DODSY' SHOTS ON d. M. Henry Potter and a crew are In New York to take shots of the Queen Mary for Incorporation In Sam Goldwyn's 'Dodsworth.' Scenes will include shots of the Hner arriving in New York and of Its interior. COURT OK'S a PRODUCT DEAL WITHROXY T Pix Better Profit Getters, So WB Cnts Down Its 'B' Sked Finding that the A pictures aver- aged better profits in proportion to investment than the grade B prod- uct, Warner Bros, will make a larg- er percentage of A's during the 1936-37 season. Of the 60 features scheduled for the coming year,, 4B or more will make up the A group as against 40 this season, while the B product will total 16 Instead of 20 pictures. Company begins Its convention with an eastern meeting at New York today, • and ' a western confab to be held in Chicago, at the Black stone hotel, on June 16, for three days. Grad Sears will be In charge of the New York convention, first day of - which will consist of meet ings' and screenings the home oflnce. Product announcement will be n>ade tomorrow (Thurs.) except Ing shorts, lineup of which will be announced by Norman Moray, shorts head, at the Chicago pow- wow which wiH.be pi-esided over by Andy Smith. Shorts program will be about the same as this season No one on from the Coast fot the New York meeting excepting iSddle Selzer, publicity head! Jack L. Warner was to attend the Chicago sessions but can't make it now Warners is .not bringing in sales- men or foreign distribution repre ^entatives, with only division and district sales managers attending in addition to top home ofllce execs. There will be at least one color feature, and possibly twp, during •36-37. . ' . ._. One of the largest contr.acls due to be entered into between an Amer- ican theatre and Gaumont-Britlsh Pictures has been formally okayed with an order handed down Monday (1) by Pederal Judge Francis G. Ca.ffey, approving Howard S. Cull- man, trustee for the Boxy theatre". N. Y., to negotiate an agreement with the British concern. G-B'will .supply at least 24 first-run pictures to the Roxy during the year be ginning Aug. 1. In addition Cullman has been, directed to spend at least $2,500 in advertising each film. .Un- der the agreement the film company will receive $2,500 for each plpture,. plus an additional compensation e(iual to 50% of the box office profits In excess of. jf30,000;' 60% over $2'?,- 000 for the sedond week and .50% in excess of $25,000 should the plcturo run longer. Cullman was also directed to pay Gaumont-Britlsh an additional $1,- 000 for each of the first 10 pictures to be shown. COBB AND 20TH SUED OVER 'JDDCE PRIEST' Irvin S. Cobb and 20th Century- Fox were named yestei-day (Tues- day) In two suits filed In the U. S. District Court, N. Y., by Ray Long and the R. R. Smith Publish- ing Corp. who claim Cobb sold them the rights to a aeries of short stories he had written In 1931 and that he subsequently sold one of the yarns to 20th-Fox. It later became 'Judge Priest,' starring the late Will Rogers. The plaintiffs . are asking an injunction and an accounting. Ray Long, one of the plaintiffs, died a year ago. The second action which Is Joined with the first I.s for an Injunction to restrain Cobb and the film company from plcturizlng any others of tlu short stories contained in the serloH which the plaintiffs assert they own. Long, after leaving the editorship of Cosmopolitan magazine, became a partner in the Smith pu'bllshing outfit. BANKO CO. WOULD HALT METRO FILM EXPOSE Denver, June 2. Owners of 'Bank Night,' the Af filiated Enterprises, Inc., plans suit In federal court to stop the show ing of 'Neighborhood House' (Me- tro), Emmett Thurmon, counsel for jthe company, claims that the plot of the film is based on Bank Night and would damage the banks biz because It pictures several attempts at de- frauding theatres which have operated the st.unt. 'RajahV Toppers Hollywood, June 2. Errol Flynn and Olivia de Havl land, currently topping cast of War ners' 'Charge of the Light Brigade, win share leads in studio's 'White Rajah." Other feature spot goes to Anita Louise. Top Initial TIFE' LEADS SET Hollywood, June 2 spots in Richard Rowland's picture for Paramount, 'I'd Give My Life," go to Frances Drake and Tom Brown. Former replaceti Barbara Stanwyck, originally pen cllled In. , Production starts June 15 at Educational studios, Edwin Marin directing. 'Good Earth' Maybe On BVay at $2 in Moss' New TKeatre Loew-Metro may go into B, S. Moss' new Criterion, not yet com- pleted', In September for a two-a- day .run of 'Good Earth/ This tv^ould give the company two reserved'seat houses on Broadway, with 'Romeo and Juliet' replacing 'Zlegfeld' at the Astor in September. Moss is endeavoring' to make a deal with other mijor comiiahies in the event the Metro idea tells through. Meanwhile' he's not' set- ting a self-operating policy, 'Hbuse will seat 1,620, '• ' " London, M&y 26, 'Romeo and Julief and 'The Great Zlegfeld' are both to be roadsho.wn here this fall, .■ . Zlegfeld film Is expected here shortly, but will be held up until the good country weather is safely out of the way. 'Juliet' will most likely not arrive for a couple <>t months.. METRO DICKEES WAIPOLE Culver City, June 2. New five-year writing ticket has been handed George Oppenhelmer at Metro. Studio iH nlfo angling to have Hugh Walpole , signature new termer before he leaves thl.s week for nine monthw abroad . • WB TO BE EXAMINED IN HUTCHINSON SUIT N, Y. Supreme Court Justice Hammer on Friday (29) granted tho motion made by attorneys for "Ed-, ward Hutchinson, night club pro- ducer, directing the owners or lessees of 30 picture theatre* in Greater New Vork and of thp Abingdon Realty Corp. to submit tc examination before trial in connec- tion with Hutchinson's action for alleged libel. Hutchinson claims that his char- acter was besmirched in one of the night club sequences of the Warnei- Bros, picture, 'Go Into Your Dance.' H) asks $500,000 from the picturf- company and $2,500 from each of the other defendants in whose the- atres the picture was exhibited. Harry M. Warner on Thursday (2j8) appeared in N. Y. supreme court to testify before trial in-the $250,000 %ult brought by Harry Armstrong and Richard Gisrard, composers, against Warner Bros, and M; WItmark & Sonn, Inc. Pialntlffs claim their song. 'Sweet Adeline,' was used an the basis for ihe WB picturf of that name. Warner testified that the picturi- was-a financial flop. He denied th»- film script In any manner Infrlngcrt on the song and that as far as h<* knew the title, 'Sweet Adeline,' was not the exclusive property of tho plalnlljrts, '- ■ ■ ■ • :.