Variety (Dec 1937)

^Wednesday, Decker 29, 1937 Hollywood, Dec. 28. ■This is the,'-week ihat calU; for coivcludihg negptiatioft^ bet>yeen tlie >Ltlai-tiehmian; on, tHe; A-L- optioft to ' lift the^ balance of ItG A s equity iiii RitO,: for $6,000;^ 000, The optioh expires Pec; With Atlis-Lehitiah and RGA under^^^^ :to have been flguring, after ;agri^^^^ jnlehti pn part of. the- equity being iifted arid part beii^^^^ .yeah-. ■ ;'v''*V' ■ ,-As.. tklked /^tboutV.: that meiant $i> 006,060 was to. be. lifted now: and the balapce. extenided, .but whethet deal 'ha's.: been „ closed pii that ■ basis .rerhaiiis- to;'.be-seen. ' \ it is posisible that: th? negbtiations are .depiendink upon conditions, siir-. rpunding the lifting; of part of . thie bptioiiy and it' is hoped that the :inat-: ter may be iciiearied; quickly in -order to facilita^ : reorganization of the company. • The trustee^has . wielded an infliii- (ehtial riegative.say-so oh policy and bperatiohs. . . And this may have had considerably to do ; With, holding: up 'rebrkaniz&tibh.. . It's figured, that RKO . stands;. tb show a net of around $2,50d,p0i() thi^ - year, and' that even the • studio ehd may. show upwards oi $.750,006 net. That's pretty ; gpbd pn,- the face of I things.'. ■;',." ^. ; Floyd Odiumy hedd of AtlaSi^ iS hei-.e. fromthb. .east,-:.with Lep iSpitz, ;to settle thfe;, studio■■ isittiation. Itis pbssibie that they; may nbminat new theatre operating, chief, -suPjecT to. apprbval pf the trustee,. RC.A a the Mv J. Meehain ihte^^ KAY FIUNdS OILS OFF HER WB SUIT Hollywood, Dec, 28. kay ^fancis . last^ •\Veek called 'off . her suit, .against WsirnCT^^ .;terminkte.her cbrttract,.giving 110 ex- planatib i of her decision; ' ,. Inside, indicatichs: were that' a salt/ /is.factbry ; Settlement, bf the star's gr." has. been: worked bv.t. Welles Ciying IMetro the Chill Hollywood, Dec. 28. , . : M«!ti-o recently have baiused^^^ tp. tender ;him . a -juicy: offer^v with ; corppany toppers seeing st ■sibilities. ' /"^ . --r/r: .' .i?J aycr; -howbyier, prefers the 1 »git and hiked piTers that wpuld ; bring IWm pdrmErteritly to Hpllywood. He ' also shb tp; a t|rppbs^ that hsx si.^n a Metro .contrabt .with: t priv^ ilc,?e of .talyih^ a few mbnths-off each year foi-- stacp .Avprk',;saying, he prer ferved.it .ths bther way- iirouhd, a few n.ibnths ipr - pic^^^ hjain.der. bf-his. time bn the siagie. ', 5 ■ „ .• ■ Holly wpod, Dec. 28.. .■;vtt -.feati; .-eij■. are. skedded' :tp. rblt ait ;Wa L ,Trs!'January and F6bi^Li- ; ai;v,. Willi .i'Fpr; thb ^be^ense',.;s'ta^•tinii: ' t'le. -: ; Jan. 24., John Lite! has the lead.:. Bryan; F.oy produces; and William Clcmbn:,' dii'.ects.. -, : : iN6x u ; IP, g^x. Avi 11 ■ be: 'Tbtcliy . fii PaiiaiTia.! Jan;■SI; then 'Vobdpo;' fo- . 1" ^I'ly. : tat!gcd.:;.. i'Wheri'; • Virbre' You :|0i;ii?;^ • Fcb.^ I- 'Forced/ Landing.' ■ Jel). H and , *C6Ur.ty -Hospital.; film d».>igi, H .\ to expose. politieal racket.^ . in conhcctirwith'ipubTic institutioiis, : a.i^o, a.; :oy prbf^yction.:-'. ■• :. • .-'^V. UDOESlTTHEOfMER ■;' ,f vkpib;wood,. Dec, 28! .•' -■Uiiiverisal. expects; .tp add; ,arouhd: 20 writers, abydral ; directors . and a number of playera to its payroU shortly; after . the turn bf-. the. year, bbbtrary.' tp. its, former custonv ' of heavy layofl^ 'at ;thiis season. Generiai 'payroll alsb is iexpected to.'takb.-a'junip.--;':-': ■; ; V:; ■ ■Hollywood, :Dec. '218^■: Dividend vbt^d by ."United Artists board' Of . directdrs ' to: shareholders at' :annua}. ■ mefit'hg-; 'vt'bn't." ;be. • > creasedf despite .the; possible Gbv- efnment View that the cbmpany, is Riling up a h.eavy, surplus.: In its stead, directors, voted for ; . 'plan tb aid independent prbducers. i^^ 'Write r-^Watnge^^ betwebn, the ■ $ 1 ,QOO,o66 earn ings arid the, $i250,o6o:;divi.dei^d ybted tb mejtnr hers,;;; '"; ,■ • ^■■ ■"';., '■ .■•;■;..■:;> .. Monday's . (27) meeting., attended by .Dr. ;A.i VH. /pjahnihi,' company . bead J Charles .. Cli^plln, ■ ;Dbuglas Fairbanks, ;: Alexander. • Kbrda: arid Day. : .liose representing Sainu.ei Gpldwyhi ' ■; \' . Kbfda's request to,' prpduce : plc-; tues; Jibrpad for compianies; pthbr ih.aii .UA, r.eabhed-a. vote;.; All agreed .it would be O^K.,- if Gbldwyn was agreeable, but' that seeirls .urilikely ;- as lie* has -simiiar jdea.s; Understood he wants to; make 'a, tieup with Metro and 2.0th-Fbx. to turn put Product for them at his DenhaiTi;;studib, addi- tional to 'hiS'- 'UA. pictures. . . .Gorisidered :iinlikely; such; - dbal .will eventuate, as both. plants, w'ould- want his. but put exclusive bf :any commitment to UA. • Kprda is flying to N. Y. to further discuss it' with Nick' Schenck • and Sid Kent, top; Mctrb and: 20th execs. Joe Schenck and Al Lichtniani will also sit in ; the discussipns next W'eek. They're coming east v the paiTyl.; Zanueic spiscial. leayihg; here Dec. 31, ■'■: ■'.;■• ■■■■;■;■,. ";';,.,.;.'. : [ ' ';• ' V; If Kbrda. gets his ^ waj', he . will malt two ' each; for both . M-G and 'JOlb. It's Atniikcly. ;Gpl.dWyii ' will ■^c'quicsce without a biittieVas he has had sim.'iar 'propbsi.t,ion; - right; along tb .make ^i^t productions. Goldwyn lia.'5n't; nitnittcd :himseli onc: .way pr other, ■ ' •.-. -y ppldwyh. and; Korda Rei- ported Behind the Idea— Kprda's ^9^in dbjectiye Would Be to Reh'nquish Him for 'Outside' Deals MANY IFS AND BUtS Roach's Hiffh Prod. Mark li\ Jan., Three Teed Up •- . New York;' Dec. 28, : . ;.I:Ial;Ro'acli lot will-haVc.three fc-ii-. Un;es-shopting the' first wpck in .Janu.- aix: a ■ i-ecbrd:;-.. Oil I- Gang returns: lb: Ihe'.Caincras .Jan. 'A.... :■' ,.:• /■;0.tj)qr.;'tWc) /.units-,, in; work ate, ^IVIchli iy ■ \A*c. 'l.,iyci . aiitf:~ Swi'ss; Mi si.' ' VVavners;' pJac'bs three . foa lii res- In ifrorfc-'jiT January:•• '"Che -'SihijiHg.-Gop, Jhii.^,;!^;:*:rhaVs My ' Sister/'; Jaii;'; lo, and 'Rel'onn.School,' Jan. 1,7.' - ' Hpllywood,'Dec; 28. , A :iproppsal under whith^^ t agement. of United Artists , Gorp, Would be controlled by an pperatlng committee; of three ; is siippbsed,- to have: been put tb the U. A. partners on; the ;Coast; Not known whether the matter cahie tip at, this week's board session. ;';:>' This triumvirate committee would comprise Dr. A. H, Giannini, presi- dent -and chairman bf the board, Maurice; Silverstone and Samuel Goldwyn.; GoldWyrt" arid Alexander Korda aris mentioned as sponsors-bf; thb plan. ,; .;;' .. . Apparently such a- moye Would be an-alternative one by-the recent op- tion hdlders who failed in their' at-- tempt:to gain cbhtrbl Pf U. A, finan- cially. \''■■''•■•:••'■';■;'■■■. Tlie probable effect could be, by establishing;,such a cornniiltee with •over-all operating ;ppwers, to, transr fer.' the balance Of ; nianagement power to;,the former; option. holderSj directly; or- by; represetUatioii bn the cornmittee. • , -■■;.''...:;',• . ;'; ;. The move appears tp have been the culmination of depiands by indi- viduals, related to sponsor's of; the original bptibn deal, for gre ater; freer dom ot action, ana say-so than their ;;'•;■■'■ (Cqntinu'ed on;page 25> ; Holly woody; Dec, 28. ;■ Contract of Will iahi KPenlg. gen- eral manager, of Metrp; studio, • Wil! settle before the. end of this week Pact has . .four lyears and three months,to go at $2,500 a week, before ■ expiring. ,;,••;• ;,..': ■'•.;■:'■■■.;. ■ •';,;;; There has been considerable" fric- tiPh-in the piast between Kbenig; aiid studio execs, and he has expressed a desire to; leave. Figures that conpr ;pany- operation will, run more smoothly with his withdrawal. ■ ; U Win Show Net Profit \m . ■ ^ith the formal; .slatemehf., th.i* .\ybek by:J, G h eeve r..Gp\vfi i n, ch bf the. board;;.,that 'yhiVersiil wbu.ld .show, a protit for the final 'quarter of the; fiscal year ended Nov, 1. tjie-e was exp.c!cl^ioii;;:itK:so.me' finaricirl quarters that the, conipany. mi.ihl show' a.small net profit for tlie full year, if .so., jt'will ;bG .the':ficsf time ,i' . yeai.i's tha.t • Un i.ycu'.sal'';ha.s shi)u'ii.-..a profit :for a full'ri-iTiqnlh bc'r.iod.'' . . In the pi-eyioiis li.scdl^'year: ended pctober. i9,.ic;. tlie dompany ha.s.a. loss ■?f;/Sl,835;4i«, ,Thoil,t;h „t.wo quarU.-rs iii.-the fiscal ii2'weeks;cn:;ltfel,.'last',iQc-^ tob,er, ;orte: q.uarttMiy. io-s.^ rially..;'reduced, .aWd,. the fact ■;ti'tat bookings, i.i^burixnt.quiiilv!'^^'^^^^^ a.s bbiiiT M'r ahchd bf ;ia5l,''ycar:;iK counted ph oiilUna tlie c.()mpany;over •the', top;..,. ■.Hoa.vy rqtu ri'is'- ■ heI'e- and a.bro'ad from' '1,06 Men :and a Girl" \ helped the; final qLinrior slal'omcnI. ;Finai .fij(urcs I'qi- 'pasLTikal, ycur will ,be; iava liable m jaiuiai'v;. ''' , ' N. ¥. AS AIDE TO KENT .'?;; •■■•■'■■.I:-' Hollywood, Dec,; 28. : ; ;;;Dah:,Miichaibve; returns to his old spot;as assistant to Sidney R,, Kent in the 20th-Fox wome. office Jan, 1, leaving; the studio where he , has functioned as box office, liaisbn for. Darryl :F. Zahuck ,ibr ,:the last six mphths. , '..;.; .. ' ; \v. . ;; Pripr.to:jdihing -Kent,;several;^^^^^^ ag'p, Michalove was general manager of Warner theatres. George , J.; Sbhaefer' asklng a: minimum guaranty of $250,000 for the ' single. booking; bf : 'Goldwyn Follies'; on Broadway;, Radio . City Music'Hall,;the Riyoli (Skouras) and Warners are all bidding to play the picture. Warners wants it for the Hollywbod theatre. . ; ' If ihat kind ■ of ■ money is,, to be paid, it means that the Riyoli or the Hollywood must play the. picture 10-12 weeks, ;min iTnurn. ,-The" Music Hall around 6-7 weeks. It: is the . biggest . single bdoking guaranty; ever sought. The pietui^', prodticed by Samubl; /iDbldw -is. .eohsidered at U,A. as; the :biggest on; its' calendar. ; Film hais .,not been comrnitted to'; anybody. ; . So fair as known the biggest previ- ous guaranty ;ever had, on a single booking, was in London, where the sanie cpmpany. United/Artists, drew, $200,000 for 'Modern Times' (Chap- lin), at the Tivoli, Picture stayed 12 weeks iri. the Londori hbuse.: V The biggest American -figure seems tb be $165,000, also for 'Modern Times' at the Rivoli, N. Y. ' That was a couple of years; ago. - 'HOLLYWOOD AIR TRAILER FOR PIC Second year of the Federal surta x finds; picture-: corhpariy -;'bff4Ciala more cbbvipced than ever that- the taxation; on undistributed' profit."! continues as ;ah; pbstacle to success- ful .and ■ undisturbed ; operation; of individual 'cprripaiiy business^ Some executives are outspoken in theii- contention that death of the Federal ; surtax will lincan^ firm fpundatibn ,;^bi: steady -business : ot- film cbhipanies;;;and '0 Clairn they need; .that capital' reserve for .rainy days, pointing to, what oc- curred • the current business • ^cession. Development of this \reser.v(^ in the past two years possibly would have eliminated trimmfng, bf staffs' and other ecpnpmy JTieasures 'becaU.<;e;. cpmpariies \vould, < have . possessed; sufficient surplus funds. If nqthihg else, it would have delayed any trehchrnents for a year or rnore.' .;: Sound tax experts ;with filrn .dpm- panies have marveled '. that tlie^ tax :nieasure-has:-.rethained; on;"the''^bppk!r" as long as it has. Not in keeping ;w,ith . sound taxatiph; principles, they believe it cbnstitutes a heavy pen-. alty against,the picture company de-, siriryg to ,build up its reserve. Thus, the Federal , surtax works out- ;that a company showing un- distributed profits of $3^000,000 to ,'i!4;O0OjO00, : after; paying preferred dividiends^ is confronted with either paying - a tax yia tVjMgll reduce the reserve by $900,000 to : arbiuid r,21.lOO^O0Cii: pr reducinfj the arnouiit by .cbmnibn. dividend d,i.stributibns; ; iionu.s payments, In either case, th» profiis. Which might be added .tp; the;qbhipany -rescryc; is trimmed to the bone.; •' • : Warneir Bros;,- which built pic-, ture to jluplicate the title pf Louelia Parsons* 'Hollywood Hotel' air pro- gram, -■ ahd iriqludes the HParst ■ critic, in the cast,;has taken the air; .show t.he first two:; we^ks - in Janu- ary as means of plugging two new releases. •• ;..' .; Scheduling the; broadcasting of scenes from the pictures to coincide with their., national ;.■, release, ■ 'To- varich' gpes oh; the. Parsons' prbgr Jan. 7,: while; 'Hollywbpd Hotel' e.v- cerpts are scheduled for Jan. 14, ' WANTS PLENtr Scrlb Says His Yarn WU.s Lifted, Asks $2,449,000 ; \ . ;'■', ; Hoily woqd; Dec , 28.;: • ;;Suit for .;$2;44b,0b()[;'charg^^^^ arism isvob file in Lo.s. Angelesr SUr pcrlor; court a|ain.<!t Sol Lesjjer, 20th- .Fqx.': Harold; Bell Wright and .others with ..Clyde - fe; ■.Melville.--, wi^itcr/^as- piaintiff,; Basis of the action is'Metr ville's a'ysp'rtiqn.that,Les.ser's produc- •'tiprii :''thc''Cal.iforniari.' 'aiiihoi'jjhip ,af wh'ichi'is 'credited to; ■y/ri;giit,; is talt from Melville's original yarn, 'The "Vasquez,' . -.;•'''". V: ..; ■ ". Scrib further' .say.<; tha' as a i-e'suU of beitrg,forced;to fi'ghI for' his rit'lil> ho has become known as a. trgublq- nuaker and is unable to seli- olli-cr stories tp picture companies.' ■• ,Trade Mark Reulstered FOtJ.N-pRD BY SIMU, SIhVKItMAN i>«il»llHli^«l Weekly bj VAniKTV, lot- Sit) airverman, :PreHl<lcnt, >.51 Wc!it 4Cth Street,; New Vork City stjn.scKiPTiON Annnat.;-;,.., $8 rorelsrn; i,,. 17 .SII»Kle Copica:, ...15 CenlB Vol. 129 No, 3 Happy New Year. y-^:r INDEX Advance J'roduction Chairt. Bills ; '"■\: . Bu r lesque' .V V.;|. 'i;...:....; ,;i / Chatter. v^..^-. -• •*. ; Dance Tours... .v... Exploitaiion '.,. .^;. Vl 15 ;Years Agb, > ;..v'.'y . : Film Booking Chart. Film Reviews. .1...;. Forum Girl's Eye View!... ..... .Ho;uSe'Rcvlc'ws. .., ;inside,—:Legit: - ;;ln<j[de^Music^.:.'..,,". •Inside-^Pictures.,'-, . ;In'ternatidnal''.-Ne.,vys.. ; Joe ;Lauric, Jr,,;..,, ■ ■L.esiti.maite " .'.:.•.. Literati . ,•,,■;...■. Mijsi'c .New Acts.. i ;■.;; •News from'the baili ;'[SfUe Clubs;.,:,...,,,': Obituary \ \ ;/,;.;,.,. vO^ierman. ; . . Oil tclqbrs ,'.>.,.-,-; ' ;Pict Li.i;es'.;....VV.'.,;>.';'\ ,• ■/Radio ;;... .-;.;;.. ,' ■ 'Radio Reviews,';;.;', ;. Uqils :;,:,;.;;.v,>';., ■ Vaadcvnib';;;.-, !Si 23; 40 ,'..-'.44- .-. • "53 .40-41 :/■--27 ,■•'. 42 ■ 21 V;:,it; ,■ ■-,;-'5j ; , . 45 50 . • 40 . .10. .14-15 . "-'-.' , G ,47-,'il- . ■■■; 52. ,39-4-1 ...;, 44 . 54 ,42-43 *':-'54- .:' 2 .' 54 . 2-28 ,29-38 30: . 44 ,'42-44