Variety (Sep 1938)

"Wednesday, September 28, 1938 PICTURES VARIETY PRODUCER-ACTOR ACCORD Recovery in Picture Grosses Held 'Gratifying' Though Biz Is Averaging 5-7% Behind Last Yr. While not as. appreciable as main- tained in some quarters, the recov- ery in grosses since August has been far more gratifying than business rehabilitation in many other indus- tries, in spite of figures that show boxoffice receipts are averaging from 5-7% behind last year at the same time. This does not stack up as an alarming decline, however, since August and September in 1937 were averaging high prior to the sharp slide which set in around Oct, 1 and brought gross levels away down for .the rest of the year and most of 1938. From Oct. 1 last year until around July 15 this summer, the levels were dangerously low but, with the ar- rival of August and several good b.o. pictures, a strong uptrend, aside from the usual seasonal upswing, was noted. One of the larger major circuits actually had one day in Au- gust on which?" the whole chain grossed more than the identical same day (a weekday) did in 1937. While some territories are better than others, and business on certain days will match or come close to that shown for the same days in '37, the trend is not so steady which, with the ups and downs, brings the average to from 5-7% below last year for August and September. Al- though optimism more generally prevails than pessimism in viewing the boxoffice situation, and releases hit a good average in August and this month, those scheduled for Oc- tober are judged by operators, buy- ers, etc., as somewhat thin. The month of November looks much bet- ter as to pictures on paper but there is no certainty at this time that all film now scheduled for availability will be released during November. The Greater Movie campaign, though criticized by operators in certain connections, is felt to be helping to some extent now not fig- urable. Though a good picture needs no 'movie quiz* buildup, it is believed some of the lesser product is being benefitted in spite of most operating opinion that nothing can save a really bad picture, as proved too often in the past. Some theatre men feel that some of the 'Greater Movie' advertising has not been so good and, also, that more should have been spent on the air and in .other ways than in dailies 'since ex- hibitors all have to use the latter anyway for their shows. The gross averages for the whole country are held down most seri- ously by the Chicago, midwest, northwestern and Michigan terri- tories. New England has recovered somewhat during the past year but suffers a temporary setback as re- sult of the hurricane last week. Par OK in N.W. Minneapolis, Sept. 27. For the first time in 1938 business in Paramount circuit, theatres in this territory is running ahead of the corresponding period a year ago, ac- cording to John J. Friedl, general manager of the chain. The upturn started nearly two months ago and has been especially marked in Min- neapolis and St. Paul. Factors entering into the situation, Friedl believes, are the exceptionally strong film product being released, the sudden public appetite for flesh- and-blood entertainment, particular- ly name bands; improved sentiment and' optimism regarding the fall and winter general business outlook and increased employment that have made the public more disposed, to spend for entertainment and the 'Motion Pictures' Biggest Year' cam- paign. As a result of the spurt, Friedl has reopened a number of theatres that have been dark during the past summer, including two local neigh- borhood houses, th. Granada and American. 'Keep on giving us the pictures, and I believe business will hold up,' says Friedl. Royal Fan Hollywood, Sept. 27. Egypt's No. 1 film fan, King Farouk I, gets his autographs by royal command. Answering a cable from L. Lober, Metro branch manager at Alexandria, the' studio shipped a load of portraits, signed by stars, to decorate the palace of the Pharaohs. CANTOR STAYS WEST TO PREP RKO, M PK Hollywood, Sept. 27. Eddie Cantor signed to make two pictures within the next year, the first for RKO and the second for Metro. Deals were, made by Abe Lastfogel, of the William Morris agency, representing Cantor. RKO picture goes into production within five months and Metro film starts within 12 months.' Cantor gets a flat sum and percentage of gross from RKO; a flat sum only from Metro. Necessity to prepare on both pix kills the idea of his coming east to tee off his new radio program. Cantor is figuring on a tour of South Africa at the completion of his picture deals to raise $250,000 for refugee relief. Fund would be un- der wrtiten by 10 wealthy South African business men. Fonda, Nancy Kelly Suffer Minor Hurts On 'Jesse' Location St. Louis, Sept. 27. Henry Fonda and Nancy Kelly of the 20th Century-Fox 'Jesse James' cast were injured slightly last week during the filming of scenes near Pineville, Mo. Fonda, who plays the role, of Jesse's brother, Frank, ac- cidentally shot himself in the right leg when an old fashioned gat was accidentally discharged. Fonda, on horseback, : was dashing down a Pineville street when the weapon exploded. First aid treatment was given for powder burns and bruises and he resumed work on a scene in which he is wounded, captured by a posse and tossed into the backwood's hoosegow. Heavy Civil War clothing, consist- ing of a heavy dress and a flock of petticoats saved "Miss Kelly from serious injury when she was thrown from a horse and into a barbed-wire fence. She was portraying James' wife when the stirrup broke, toss- ing her into the fence. The heavy clothing worn prevented suffering more than a few minor scratches and a severe shaking-up. Fonda and Miss Kelly are the sec- ond and third of the cast to be in- jured during the locale filming which Director Henry King said is rapidly nearing completion. Several weeks ago Lon Chaney, Jr., was un- horsed and the equine, following, ran-over him. His injuries were not of sufficient seriousness to delay his work in the picture. The Ozark mountain region con- tinues to be a magnet for the curi- ous and large crowds appear as each scene is rehearsed and filmed. Every other activity*' in the area is secon- dary while the screen players are going through their paces. Solution of Many Actor- Studio Problems Seen— Goes Into Effect Nov. 1— Recognizes SAG on Com- pensation, Overtime, Ar- bitration, Other Aspects THE EXTRAS PROBLEM Hollywood, Sept. 27. Satisfactory solution of large pro- portion actor-producer problems arid ratification of an agreement, augur- ing harmonious settlement of all ma- jor questions affecting actors and studios during the next eight years was announced Monday (26) by Jo- seph M. Schenck, president of the Producers Association. Statement by Schenck came at conclusion of the producers' meeting, at which terms of a new agreement were signed by those attending. — Schenck's statement covered the following phases of agreement with the Screen Actors Guild: methods of compensation, hours and working conditions of players and extras, and arbitration machinery for peaceful settlement of all disputes, present and future. Approximately 1,200 members of the Senior Guild and 10,000 members of the Junior Guild are involved. Subject to necessary ratification, agreement becomes effective Nov. 1, 1938. Frank recognition of each other's problems and mutual willingness to make concessions for the benefit of all, made possible this constructive achievement. Extras An important part of the agree- ment is expressed in the determina- tion of the Guild and Producers to find a fair and early solution of the extras problem. Both sides realize the need for immediate and sympa- thetic investigation into all phases of the situation and will seek facts, in light of economic necessity and con- dition of extra players, and the in- dustry. t . _ In addition to the general arbitra- tion policy, „ agreement specifically provides: The Platform 1. Appointment by Nov. 1 of a standing committee of three members. One member to be selected by the Guild, second by Producers, and third chosen jointly by the other two. This committee will have broad pow- ers and scope, and will handle all (Continued on page 21) WB's Bond Conversions Apace Despite Dullness Warner Bros, bond conversion pro- gram continued to go on success- fully last week despite laggard stock and bond markets. Figures supplied by the N. Y. stock exchange showed that $98,000 worth of certificates of deposit for new liens were taken out by holders of the present 6% obliga- tions. Only $12,097,000 worth of old bonds remain to be converted, with $17,303,000 worth of new liens spoken for. Other changes showed that Para- mount common shares listed now totalled 2,454,380. Nine in Gear at WB Hollywood, Sept. 27. Nine features, several of which are high-budget specials for 1938-39 re- lease, are lined up for a start dur- ing October at Warners. Shooting dates are: Oct. 3, Okla- homa Kid'; Oct. 4, 'Dark Victory'; Oct. 10. .'Dodge City,' 'Words and Music,' second Jane Arden feature, and second Secret Service; Oct. 17, 'Hell's Kitchen' and second Nancy Drew feature; Oct. 24, 'Juarez.' Guild Stands Pat Despite Plans To Reconcile H wood and B'way; No Need for More Coin in Legit Morgan on Pact Hollywood, Sept. 27. Ralph Morgan, recently elected president of the SAG, de- clares that"" under the new agreement Guild members are accorded concrete and definite advantages heretofore denied them. Contract provides many ad- vantages for all types of play- ers, Morgan states, admitting concessions were made by both sides. ROCKEFELLERS HASTENING RKO REORG Rockefellers are on top of the RKO situation, and every effort is being made by them to coordinate creditor action to hasten RKO's emergence from 77b. Floyd Odium and David Sarnoff (RCA) have talked, since .Sarnoff's return from abroad,- and presumably each knows where the other stands What progress might have been made regarding Odium's once proposed takeup of RCA's equity in RKO, in its entirety, by the limited option route, is not known. Whether Leo Spitz stays, after reorganization, is entirely up to him. Creditors are again trying to per- suade him to continue. Last time, he agreed to stay until reorganization. It's known that Spitz has a desire to return to his law practice in Chicago. He took the RKO post of president at the insistence of friends who had large investments in the firm, and who sought his help in righting the RKO situation. Under Spitz's guidance, RKO is now definitely on the profit side, after writing down some extremely heavy obligations and liquidating heavy banker assignments. Prominent in present talk regard- ing RKO are such names as Ned Depinet, M., H. Aylesworth and A. H. McCausland, agent of the Irving Trust Co., trustee of RKO. Also Peter Rathvon, associate of Odium. Sarnoff has had talks with certain of these, according to accounts, re- garding management and the future board, setup of RKO. Understood also that Geo. J. Schaefer's name has been mentioned in the RKO situation, and that he has not yet signed his" new contract with United Artists. Beriin-Feldman Still Trying to Settle; 'Alex' Opens in London 30th London, Sept. '27. Nothing has been settled between Irving Berlin and Bert Feldman de- spite the fact that 'Alexander's Ragtime Band' is due to open at the Regal Sept. 30. Song publisher Feldman claims 12 numbers in the picture and lawyers for both sides are endeavoring to secure a settle- ment before the London premiere. Understood that Berlin claims Feldman's rights were cancelled years ago through nonpayment of royalties on sales. Also that Feld- man alleges payments were made to Henry Waterson, Berlin's former partner in the publishing business. Despite recent maneuvers to heal the breach between Broadway and Hollywood, there is little indication that the studios wil. soon resume the financing of legit production. Any such resumption depends on one of two developments: either revision of the Dramatists Guild minimum basic agreement or abandonment by the film companies of their stand against bankrolling legit under prevailing conditions. Neither of those changes seems likely fo take place for some time. Granted that the picture com- panies would like to re-enter the legit-financing field and that the Broadway managers want them back, these elements are of little conse- quence compared to the Dramatists Guild. Latter drew up the minimum basic agreement, forced its adoption by the Broadway managers oyer the protest of Hollyw'ood, and has shown every evidence of satisfaction with the way the agreement has worked out and determination to maintain it as it stands. Latest move to bring about a .rec- onciliation between Broadway and the picture business was planned for the recent American Theatre Council convention at the Astor hotel, N. Y. Herbert Bayard Swope, as an im- partial arbiter with connections in both legit and film circles, was to have addressed the delegates with a scheme for. fixing conditions to bring about the return of film coin to Broadway. However, he failed to appear and instead wrote a letter outlining his views. It was not read before the convention, but was re- ceived by the executive committee. No further action has come of it. Guild's Stymie As long as the Dramatists Guild stands opposed to any revisions in the minimum basic agreement, it is difficult to see how conditions can be made acceptable for studio re-entry into legit financing. Guild members in general feel that the old agree- ment gave too big an edge to in- vestors in Broadway productions. They claim that under the old setup, studios bankrolling plays had what amounted to an advance option" on the screen rights to such shows. They could exercise such options virtually on their own terms, it was claimed, since through their backing of the prqducer they controlled the sale be- sides holding a 25% edge in all bids against competing purchasers. Guild believes an investor is entitled to some edge in purchasing subsidiary rights, but not 25%. The present agreement gives him a 20% advan- tage. According to the dramatist view, studios can invest in legit under just as favorable terms as anyone else. That is, if the show is a hit they are in for 50% of the producer's profit (that figure is taken as an average, since the terms naturally vary in different deals) and may reasonably expect , to get back their original in- vestment plus a handsome profit. But if the show flops, the chances of re- covering the original investment through a picture sale are slim in any case, since few flops are bought by Hollywood. As for the studio claims of want^ ing to use legit as a test tube ..for ta.lent and story material, the authors declare nothing in the present basic agreement affects that one way or the other. Only the control of film buys and the percentage of the pur- chase price is changed, it's pointed out. One of the angles of the recent plan to bring about a reconciliation between legit and Hollywood was the reported willingness of a film executive (Samuel Goldwyn's name was mentioned) to invest $2,000,000 in Broadway production, if the mini- mum basic agreement were revised. Guild members' were inclined to view that suggestion askance on the (Continued on page 10)