Variety (Feb 1938)

PICtUIIES VARIETY The earnings pf officers: and direc? tors of -tb^w's/ Inc,,; since 1938 were xlosei* to $50,COO;00O, instead b£r the estimated $32i,0P0,00P^ set by B^r^^^^ . Epstein, min stockholder, in jiis ihjuhctibh suit fllied Monday in T- supreine cburiy ; Epstein, demands th^^^ return oi aileged excessive salarieis and bonuses paid to the top eitec.s to thi corpbraitiori ahd the sltotkholders. Thrbur»tt his attorney, Eniil K. Ellis, the ijlaintiff y^Bsterday (Tuesday) withdrew a mptioh for :a tennporary . injunction peinding trial; for a pbr^-' /maneht stay when former judge Joseph M. Proskauer agreed, to Ellis'; ■ 'reciuest for ah .early trialv.' .Judige ■ Peter ..:Schmuck: dit^^^ the attbr- heys tb submit, a .r^^^ case placed on trial calen^ ■.'■idarvv.^: . . ' Plaintilt. seeks to have the court stop the Vdefendaht: bfficers and di^ : reqtprs from payirig bonuses and. comrnissions during the ■ neit. five.'yeairs :as ra at .the an- ;' huai stockholders' meeting last week..■ Also that more than $30^000,^^^ col-v lected by the cbrpibrition's. officials ., since 1926 be returned tb Hhe corr : p6ration:ahd the stockholders^ ' Basing: his flguresj bh the 1937 ,: earn ihgs of vthe .icbrpotatioh, Epstein V in hisVaffidayit es^ l.*.ex- : ecutives .,'will' receive v approximately '; $4v712,460 in salaries and bbnuSes for . the coming year iirider the;,-perspinaI ■ service agi^eemeht. Ot this amount, he fiiures, $2.234,4iM will be paid .in ' salaries and $2,478;o6d ■ compensa- tions. Louis B. Mayer, the plaihU ' estimates, will, .receiv* v a total .'of O$956,0b0; Dave Bbriisteln;: $284,000; X Robert Rubin,. $264*000;. Mervin . Le Royy $380,000; Arthur Loew, $332(000; . Joe Schenck. $430,000; Hunt Stroih^ berg. $38,0,000; Edgar: J, Mannix,- $316,000; Al Lichtnian, $276,000; Ber?- hard. Hymart; $249,000; Sam Katzj $324;000 ■ Hai:ry Rapf,; $i54;400; h. A. ' Weingarteii. !^196,d0<), and Benjamin •.;^hnviv^$i7i-.ooo..-;.' ■'v^' - ■ . : vEjjsteih is .the holder of -only 10 : shares of preferred and 13 • shares, of tlVe. corpbratipti'V comfnbh s^ . i .The- defendants named in, the acr , tipii are the cbrpbratibn itiself, Nicho- :-^,4as-lMr^Schenek,i-Dav4d^^^^^ .iiou is. B.. Mayer. J; Robert, Rubin, Isidore . Frey,. Leopold Friedman^ John R: irtaxel', (lebvgb M, Arnrisby, ■ William.A.'.Park^^^ ': riVs, Chai'les C. Moskowitz aind David ..'.Warfieid;- - ■■ - 'v'-: ' .• ■.^^i-.J; hohg itout^ at Pjir i : ; v Far fiiiriis and Itayfc Hoiiyv/ood, Feb. i; : ; . Parambunt ' building, a prograiti that will cpntin^e^^^M fiob Buirhs as a cbinedy team. Maii- rice Revhes has been ^assigned to producie ♦Our. Leading Gitizens,' with pair in top brackets. ; ' • Pibture will' follow^.'Trbpic Hbli- d^y,' -now -work, and:-'Ark^ Trayeler.'.botlvassignmehts/foi^R Burns dub. Americian F;ederatipn of Musicians proposes -to turn its attention to bopst- ing emplbyrnent iti; the country's pid- :ure-.theatrbs as sboh. as it hias cleared up the broadcasting station ahd \vax riecbrding situatipn. "While disciissibh pn: the pit prbblem. was ordered put oyer:.wheh -the ;AEM.executive board met recently in Miami; it is under- stbod that; Federation heads' '.have been pledged .the isvippbrt of the iii-. terhatibhal .Alliance: of Theiatrical Sta[ge, Employes'; Ibr, any plan ^ thai they eliect to put- into . effect. . Under a^ t)lan which Jarrti^s Petrillb. Chicago^niusiciahs locaj prez, is ad-^ vocating^. theatres playing. iriUsicai films: would be required to eniploy musicians,, with .the:hurnber depicnd- iiig on .hbw many were :used in the picture'^rid. the admission-prices arid seating capacity '■^of the particular house; It ig urged that the employ-, ment plan be 'irnade effective fu'st with citciiits cpntrplied by pictitre produce!^; and that a special rulirig be ma<fe fpr $2 pictures :c.ohtainin -jnusic..—PizopoAcnt^ angle • cite the case j .of 'In ; Old Chicagb,' . in which there, is a five- minUte overture, ' They hb ■« house brchestra ; ought- :tp' be . eni- plbyed for such" ishowings, ,6r the idea bf the ^ mu sical iht roduciion - be .The complaint states that in 1924 Lpew's entered intb; an .agreenibnt with iMetrb-Gbldwy Pictures Gorp.- aiid Mayer, Rubin and the late Ipv ing' Thalbcrg,; for. their ssrvices, tiie' cptitract. to .expire next pbcenni- ■ • bcr. As. TQSult, it is alleged,: Mayer; Rubin: and' Thalhergyrccbiye'd :bver: $i6.006.000 in ,~boriuses.. and commiS' besides' $3,060,060 ;;in :salm^ Sums piaid/Pther ^executives , tinder ; . similar contracts brbu.i*ht the total V ;expenditure tb^p^^ $32,000,000 dur- ./iuq:.the period. ■.•.■„■■:■.';■". •' . ■ It is a.lsp ..claimed'by the plaintiff - that' the cpr.pbratiPn. , in^ P^^ V 1932,' -grarilfed .M'giyer, Sub Bern . jri-■ and ..Thalberg-: P • cliase 250;(i(()C!?sharcs of common stbck : .at $30 tP $litj. a share. .^he bptibn.was ; V to exoire lrt March, :1.939.- :' . It .is aliegcd ;the foUr exercised the , ; y pptibn oh - a large block: of the • stoclc in 1937 at; hu5e; profit to themselves *.and. without benefit t^ .. .:tio!i or the gtockholders.':. ; . .Epsleih eliarges thatthe also con trolled : the meetihg of stock' ; :hplders at which, the , ■personal ser^ . vice' agreeriiGnts . were:; ratified . .Ja n. :23; ■ It is claimed .'the: .salaries ; and bbhuses griirited by the agree .. . hienls V/erfe ''excessw^^^ linrea^^ -.. sbhable. iand constit rnisuse; di- versiph, and:, wast'b pit/the;incorpe of :. vthe cbrppi-ation ..and '.its 178 sUbsidi aries.'. The complaint then points out that in December', 1936, the board . of', di rectors.: approved thie 'personal , »-s>.ervi.ce', a.JiVeemcrit aihd that Schenck, : as president, issued" a circular letter to : the' stockholders; adNUsing the lat . ■ ■ ter that the .agreement would, be baneficial to the-corpbratipn and the stpckhplderg arid advised the latter to okay it; .which; they did last week : Besides asking .the Court to cal ■:/■:• AAA A .HiiriedJ 6n Two Fronts^Onci, the lATSE-a Threat y t6 Supervise; En- tire ■ Industry," iiichidin^ ; y PerformeM-i-^the^ O ;■■' Iritra-Or gani4a ti a 1 ■^ WrainigHrig ';-\-; FILMS BEHIND BROWNE? abandbned altogether. 1 Way to Get Script You Like : Write It Yourself ■ Hbllywopd. Feb. 1",. William Weilman arid Robert Gar- son, have turned in tp Parariiount a new treatment of - Rudyard. Kipl ing's /The Liffiit:That Failed,' which Wtll- mari will dircct following hi pror ducer-director stint, on 'Men With Wings'. for' the same company.;. Studio has long had - opus on its shelves, Producer ■Arthur' Horhblow having submitted a^coitiplctcd script tb Kipling, before the lattcr*s death, While the screenplay won, the authbr's apprb\;;ai; it; failed to pass muster with Wcllinari. , Mrs. Vullee Killed Hollvwobd. Feb. 1, ■ Mrs.'Gerald Vultee was-.kille'd-with her . husband. a irpl.^rie, dpsignon in an Arizona air: crackup. . ■ , ■ She wrs the dauihtcr of Max Parker. Warners art director.: off the a-trcemeri?. the plaintiff ;al<fp. wants the Options on. the 250,000 shares of stock cancelled, and the hplders-of the options compelled to riiake 'an accbuntinrg of their prbfits. or to surrender the remainder of the stock obtained uhder bpti to the cprpprati upon repayment Ip the holders ttie subscriptibh prices vhey originally.. paid.",. Alsb '. that • tlip^e: defendants found: to- ■.have, made seerct prbfits: from the^h^^ of, the .corporation;:arid its subsidi- aries be req uired- to . make an a d- cpunting and to refund all such secret profll.i to :tha. cpr.poratibri;. • With .affairs in- VaripUs other show, business uiiibns :4ri, a tangle, the ;As- sbciated Aetors.'arid Artistes Of Amer- ica is harried oil two distinct frpnts. ipne is the: Iniernaitional Alliance of Theatrical : Stage' Employees' th^ to' seek: jurisdiction bver: all wprke in sliow business, including: actors.. Another, is -the continued wrangle within the ranks bit the Four A's it- iself.-;,;,-;;: ■;'•:■'-.^.^ .^'Z '•';.. :■ . :'./; Besides, its headathesy'in its. own backyard': arid the stageharids' thi:eat, the Fbur A's ,^isb has sev other vital.matters on the fire. Gnc is . the .current negotiations between the American Federation pt Radio Artists and the networks and ad- vertising agericies.; • '■.,.' Another is the .Ariiericari Guild of . Musical Artistis-Metropolitan Opera • Go. huddles, Which- got under : way last , wjeek. And, when'it can .clear, up .the matter of' .nitery, ,and vaudc iurisdic,tipn', : the Four: A's'; have one: ^bf its. member groups involved ih a drive tb. organize those; fields. : While no actual move is known to have been made, by George E. Browne. iAtSE prez. tb make good his threat of demanding the .cpm-' plctfe show business jurisdiction, such a b;id has been and ■*' expected daily.' American Federatibn ; of tabor e'^ecutive coriiriiittee f •? rrieet- irig this, week:'in Miairni, and; Bro\vne' has; repeatedly stated he would rnak y his: dieriiaind dur-ing,the, session, ' • Willjarii; Bioff, Browne's right-hand man, is . in y New York, as is Pat Casey;-labDr^cohta:ct7for-^^ wood studios, which, of cburse, i^ more than :/mere. coincidence. :: With the ,iATSE riiatteir^^ hanglng^^ fi^^^ rteth. "Thomspny Screen Actors Guild cx.cculive-secretary and • an irifluori- -tial'-meriiber-of .-the-^FoUr-A^ is reniaining in New York. . : Sirice reaching Miami, Browne has said nothing publicly regardirig.yhi.s intention : of seeking the vertical union setup for show .business/ with himself as ■ the , head. . And when Browne does make : such a move. Willia:rii'A. Green, ■ A. F. L; prez, ha:i. pi-orriised y bther show : b iz iihi0n licads tha.tynp action will bs taken without full:Vhearing^ for all,. ' r. eer'i>edv';: '■•■ ;■ picture Angles' On: the -other hand, Browne; is' re- ported in some yquarter.s tb have film producer backing for his move, and is also: said; tb have considerable i.n- fluerice: in the A-F-L, couiieils.; Op- nosed to this is the belief that Mike Tobiri,: preslderit ; of the powerful teamsters' ; iriternatibrial, . hai? Ion" booh a foe" Of the .IATSE head arid would probably bring the full weight of : his; Voting; membe;rship into th c scales tbybppo'se an IATSE: invasFoii.; - .Believed: that •Brb\vne attaelres :1m- ;pprtante to several letters he claims to possess,' cbritai ing .adriii.«:si,ori: by SAG heads that the ypresent : Guild- studio- cbritract could not hav be^n' obtairied .withD.ut. the IATSE ' ba;ck- ing. It is jpointed out. hbwcver. that ;the:;:;cminently , cbrisbrvatiye:. AiF.L. executive committee is diametrically opposed to: the kind of yei'tical setup desired, by Browne. Fundamentally, it i.s that issue of .vertical-horizoritbl unionism that is at the bolloin of the, A.F:L,-cib split., : •;,;■ ■.;. -V:' '\ One Four A-s;:bitiaal long; asso- eiated with Afl unipiiism points out that never in the: history of the fed- eration has .One member been por- .niittcd to-take over the jurisdiction Of another member union ai? ,ibrig a; (Continued on page 25) 20th-Fox Vetoes London Offer for Jane W^ '; ''■'■.•■:■:■'.' Holly wood* Feb.. 1. London Palladium's offer of four weeit ' personal appeararites tb. Jane Withers has drawn'a veto from 20th- Fbx on the ground that the kid ac- tress is needed, on the; lot immedi- ately upon; the conclusion of her. cur- rent ipidwest.tour. . .;••. '.:' Under: new contract, awarded when istii^io' refuse^ . to . permit her to : accept: the General Mills • radio offer,; moppet's pay was uppcd to $2,500 a week with stage fours limited to six Weeks per -year. " . Pat Casey, labor representative for the . prbducing-distributin -com- pariies; is ' Ne\V York at: preserit but: is having no :discussipris.;yvith.1. A.' T. S. E. people, concerning added jurisdictioh;iri;.the film field.. : William Bioff, who has also been in New York,;lcft last night (Tues;) for Miami, wliere the American Fed- eration of Labor' is . . converitipri; He has had no huddles With Casey on any matters during his stay in the east, Casey declared yesterday . (Tues.) that; so far as tiie producers were. cpricprned, they are asking; hp ;part.of yariy Jurisdictional offensive ;on .the pai't': of the I: Am not. a.s yet declared Openly, .to brihg ; crafts olitside bf the. five-year basic, agree- ment ; Any efforts of the L: A. to gairi jurisdiictibn- over actors or other crafts; in studios; may be sbmcthing that will be .left to direct negotia- tipri or discussion, .with the various craft unions direct.y '::■' ;'v .y -^-jCasey.. will-pEobably. -leave-)for—th^ Cbast the end bf the week, returning here later in March. He hasynpthirig. pri; the agenda untiI• then,, when he- arid -the y Intcrnatibnal linioris,. sig- natory to the studl basic agreement, will sit down to agree on scales. workin.? conditions, etdi, for .iianpther year. "The basic "agreement has thrde mbre years to go. ■. ;■■ .y'-. George Br^bwri??,. president of Ihc IATSE, is still in Miami on the AFL. con VP n ti oil. V G asey c ocs. not., expect tp; see him prior to leaving for Ch^ fbrriia.. Par Pards m N.Y. Confabs . . Althpu2h;RK0;hrts gone back to a Sixuday : week,; with .. its distribution and sales forces but riot the theatre division. cOmirig . iri a halfrday Sat- urday frprii riow rib other film cpmpairiies are known:;, toy be con- ;; sideririg an erid. to the Ave'-day-.week.; which was brought On by NRA arid . retained ' then.' Columbia went on the:fliverday 'week priory to ;NRA ■.■ arid is still retaining;that'pblicy. .; At the same time '.the y RKO trustee is letting out help .a re- trenchniept; measure. •■' .,'.'."': ,.■■.,.:;• ;A ychcck of-the. ■.yai-ipus majors te-y.. veals a strong, .sense :of pppositipn; - prevails against gbing back tyo a half , day's work Satiirdays, this including most fprces/ in. Par f have opposed corisi'dcratipn ■ bf a Six-day week by; .Rarricy .Balaban recently.. - Bala is said ..;to. have:. iricliri.ed fb the thought that the office ; should be: open Saturdays, as Bala- ' ban &; Katz is in Chicagb, but that- virtuaily everyorie yclse . in Par . ' . agaiinst it.,. It is;cited that records . kept .byyDr. Emanuel Stern, company ■ P|hysiciani shbwedydun efficiency., v/as greatly increased with people having two days off a week (Saturdays, ari.d' Sundays), that less ' illness .prevailed and fewer people were .out other, days; of the week;y . whether :'thcy y yrire ill or riot. In : other:compariies; the same feeling ex-' ■ ists; in addition tp the thp.uiht that . the picture outfits should encourage . a ffVe-day .week themselves hecarise that is favbrable for therii • at the hpx office; ---^ ' . It is also pointed' out that, when film home., offices went on the. five- day week in New York and sbmey other parts ;bf .the eouhtry, a half*: hour was .added to the five wprlc- days; this virtu"ally makin.c; up fpr the three or four hours Ipst by clos- ing. iSaturdays. Check with Par. Metro, United, Artists, Cpli Warner Bros, and 20th- Fpx would indicate that no consid* eration—is—being;-given-^a-^six>day;7- work week. TVith RKO the company states that it ' keeping open Sat- urdays only during the current Ned Dopiriot sales drive. Thcaitre .branch m RKO is remaining on the pid. five* ^ay^ehedule-but-is-likely-to-follow- suit of. the rest of the company. Monograrii is on -day week excepting dUring the suriiriricr, while Republic is open Saturdays thrpugh-.: out the whole year,; but iri addition to the various majprs, other branches of the film business are clbsed dbwri Saturdays, including the Hays office, National Scirccri Service and various theatre offices. : ' \ ;■ George -Trendle, Pardmpurit: De- troit operatpi-, is dUe yin New, York today (Wed), fpr honrie : office, di.s- cu.ssioris and Nate Gpldstbin of the Par Massachusetts ciTCuit.yis .confiinfi iri tomorrow (Thiirs) to huddle oh various operating matters. '•• Leon': Nettc.r, h.o,' . theatre execu- tive, is ' goingy tp" Greensboro. ,N. C the: first of .' next. :WGplc to attend .n board mcetirig :Tuesday: :'(.d) >pfs thc- Npiylh Carolina. .Theati-cs,,' Inc., Kinccy-W.ilby yp-rpiiij," '-';':v ;';.'■- y Follow Master '■'•..;:• . . Holly wood, Feb. 1. y M.ildro.d Tori^plo, who' served as story cdifor on •McrTyn LeUpy's.unit at ;.Way)iei\Si will hold siriiilar post with' -producor-dircctpr under hi;; MeVro deal;' : She ha.s ■ ali-.oady bhccTtcd ;ih on;(i!iiVV;eiv City: Ip't. ; LpRpy, riow :vacatipriirif»- in :;Ari 7:bha. piaris; tb rctiirn here yFcb. 15 tb. take up .tlVeyricw..'reins. ■' y Waldon On Battle Froni . v:;. :;.' : v Hollywood, Feb. 1. Raymond Waidbriv. bpri"0>yed frbm CbVumbia, is the newest cast additibri to 'The Battle of Broadway,',,\vhich 20th-Fox wlir filnri . with .Victor Mc Laglen; Brian Dorilcvy and: Louise lipvick. . SKOURAS' TRUSTEE ; St, Louis. Feb. 1. . Payment of more than $40,000 to ' the yAlexander; ;Ric."er. IriVcstm'int Go.' ;0f. kariiias C^ity; Mo., by the f riis-. ; tee of the Sknuras Rrbs.yEritorpri.sC-V ' inc., bankrupt theatre •.hplding com-" 7any, . was brdcred- last; weck^^^^^^^b^ Referee . in; / Bankiyuptc . Elrricr E.;: Pearcy. • The; investment compr.ny: represents Richards ' & ■ Flynn: and the .Standard; Build|n.g Co/i;b Kansas City, ;a subsidiary, of thc cor- • porat'Qri. The fiim cPmpany was dis- solved Nov.; 27, 1929, y The surii a-Wvirdcd. the -cbippanj^^^^ - Slightly mpre than 51?;, of a $79 ,"0.8 promissoryVnote^^e by the St. toil is Amus. ifcp. to Sk.'^uxas Brps., Eritcrprises. InCi. ,when the cbrppra- libn controlled 52% of the amu.se- mentycompariy'/■ sftoclv.: The, balance of the sum; is. to Ije; na.id, by Ncl.'OJi CunlilY, ti:us(ee, to •Thonias 'N^^ ."^art, chairman of>. the Bondholdei'.s* Protective Cprnmiltee pt the- Central:. Properties, Inc.,; which several months ago : purchar.ed the assets • of the 'Sltouras .Bro's; Enlerprlscs^^