Variety (Oct 1938)

Wednesday, October 5, 1938 PICTURES VARIETY GN SALES m HIGH. UNDER AtPERSON Chicago, Oct. 4. • New setup for Grand National went into gear at the opening of the sales, convention here over the week- end, M/itti Ed Alperpon, distrib chief, in chatge of the get-tpgether. This was a meeting of middle and far west sales offices, with the eastern and southern mob gathering in New York later this week for the followup confab. GN will release 44 features this coming season; 24 westerns. There will be 44 shorts under the Educa- , tional banner, 18 of which will be ''^wo-reelers and the others single reels. Of the 44 features at least 26 will be produced by Fine Arts pic- tures, headed by Franklyn Warner. ' Sam Berkowitz attended the con- lab as the Fine Arts rep. Alperson set the appointment of district mana- gers throughout the country. Morris Safier, former assinstant to Alperson, will head the west coast district; James Winn wiU be midwest super- visor; Ralph Kinsler as middle east- ern manager, Jules Lapidus for middle Atlantic manager. Jack Lamont heads the southern district, with Harry ,Asher named as the east- ern district manager. . E. W. Hammons, prexy of GN, didn't attend the local meeting but will be present in New York, as will Jack Skirball who is now in Los Angeles. Washington, Oct. 4. Plea of Grand National Films for permit to withdraw common stock from the New York curb is due for airing before a Securities & Ex- change Commission examiner Oct. 25. Company explained that since tt went into bankruptcy and is trying to reorganize there is little market lor the paper and the organization is a mere 'corporate shell.' D'S SEXTET ON B'WAY IN HRST 18 DAYS OF OCT. Starting with 'Road to Reno,' which opened at the Globe on Sat- urday (1), Universal expects to have six features playing on Broadway in the first 18 days of this month. 'Dark Capture' follows *Road' into Globe on Oct. 8 while Deanna Durbin's new starrer, 'That Certain Age' is tentatively set for Oct.. 14 at the Roxy. 'Youth Takes a Fling,' which is due to play the Rivoli, probably will open there on Oct. 15. Then on Oct. 18, 'Frankenstein' and 'Dracula' are due in on a dual setup at the Rialto. These two, playing as reissues, have chalked up ' unusual records when exhibitors employ twin-horror idea. From Little Theatre To Picture Lead in One Jump Hollywood, Oct. 4. Victor Mature, currently with the Autumn Crocus' troupe at the Pasa- dena Community Playhouse, gets one of the male leads in 'Star Maker,' first picture on the /Charles R. Rogers independent production sked built around the career of Gus Ed- "wards. Contract calls for Mature to appear In other Rogers productions. Bacon's 12lh Yr. at WB Hollywood, Oct. 4. ' Warners renewed Lloyd Bacon's contract as a director' for the 12th consecutive year. ;-Currently: he is working .on the James Caghey starrer, 'Oklahoma Kid.* You Can't Do That Hollywood, Oct. 4. . War scare in Europe - caused the deletion of several se- quences showing the .operations of pursuit planes and airplane carriers in 'Tailspin.' Navy tightened its restrictions after 20th-Fox started produc- tion of the picture. RKO'S BIG TAKE ON'SNOWWHITF Income of RKO, since the late January release of 'Snow White,* shows that one-third of it was de- rived from Walt Disney product. At the time of release, RKO .figured it would have been satisfied with $650,000 as its share. However, indications are that with the picture having grossed more than $3,850,000 up to Sept. 1, and the foreign market barely scratched, that RKO will get an additional $1,250,000 for its share, besides the $650,000 already taken in. GOETZ DUE TO SAIL THIS WK.; 'CHIPS' NEXT Ben Goetz, head of Metro's op- erations at the Denham studio,'Eng- land, is in New York huddling with home office ofilcials regarding fu- ture production to be done on British Isles in . carrying out • MG quota, obligations. May wind up this week in time to shove off for London. 'Yank At Oxford; and 'Citadel* are being followed by 'Mr, Chips Goes to Town,' Robert Donat, star of 'Citadel,' is again set in this one. U. JIND SUITES' If the Business Tries for Self - Regulation, Some Wonder Anew Whether That's. Not a Confession. of Guilt—Others Favor it as a. Means to Stave Off Severer Results After Four Years of Quibbfing RKO May Emerge from 77B By Jan. 1; Reorg Plan OK by Oct. EXHIBS WHOOP IT UP Industry today is confronted with two problems which require judi- cious handling in the next five or six months'. They are the Govern- ment's anti-trust civil suit against major companies and the anticipated legislation to be launched against the industry in the next Congressional session opening in January and in 43 state legislatures due to convene in the first three months of 1939, Then there is the equally vital ques- tion of whether trade practice con- ferences should be held before the first of next year, or sidetracked un- til -the other two problems have been settled. Some industry leaders are inclined to' belief that self-regulation, set up in the trade between distributors and exhibitors through the medium • of trade parleys, will go far towards staving- off ' any adverse legislation. Which is why they believe that trade practice confabs, started last sum- mer, should be resumed with the least possible delay. On the other hand there are otheirs in the trade who apparently believe, as firmly, that if voluntary moves are resumed to correct so-called trade evils, as tentatively outlined in the (Continued on page 6) Long, Long Trail Hollywood, Oct. 4. Cecil B. DeMille's 'Union Pacific,' now in production, will be the 1,200th picture turned out by Paramount over a stretch of 25 years. DeMille also produced 'The Squaw Man,' studio's first fea- ture-length film. NEW CALIF. LAW WOULD CURB PIX STRIKES Hollywood, Oct. 4. The anti-picketing ordinance, re- cently voted, is seen by labor-pro- ducer reps as a bar to studio strikes. New law provides that 51% of em- ployes must favor a walkout before pickets can be posted. Also, the picket line must be confined to regu- lar workers of the affected company and limited in number. Labor leaders- already are making preparations for a repeal camoaign, on the ground it violates the Wagner act. The proposed state-wide picketing law, on November ballot, has even sharper teeth, than the L. A. ordi- nance. Little Progress Made at D. C. Parley; Gov't Firm on Its Anti-Trust Slant Washington, Oct. 4. Slight headway toward ironing out the diffculties befween the film in- dustry and the Government was made last week at initial huddle over the monopoly action, but fur- ther meetings are planning in an at- tempt to reduce the issues and pos- sibly dodge a trial. Highly secret parley between the Justice Department prosecutors and the legal talent of the major com- panies wound up inconclusively, with neither side making any con- cessions and little reason for an- ticipating a peace pact in tl^e im- mediate future. While the negotia- tors shared a desire to simplify mat- ters, the feelers were almost" entirely unproductive. With Col. William J. Donovan, general of the majors' legal army, insisting on a hush policyi little in- formation filtered out of the. conver- sations held over the demitasses Wednesday (28). Enough leaked, however, to show that the progress was infinitesimal. The get-together, which was sur- rounded by the utmc*" mystery, was devoted largely to sermonizirg by the Government preachers, although the atmosphere was friendly and the prosecutors disguised their determi- nation with personal affability. Ex- change of views was general, with Prof. Thurman Arnold, assistant at- torney general in charge of trust- bu'=!ting, holding forth at consider- able length on the philosophy of the New Dealers and the purposes of the injunction maneuver. The industry bargainers found the Federal crowd adamant on the ques- tion of divorcing production from exhibition. Every gesture In the way of softening the financial blow at integrated companies was thrust aside by Arnold, who was supported by.Paul Williams, his top aide and the prosecutor with detailed knowl- edge ready to counter industry argu- ments. Session occurred at Donovan's swanky Georgetown home. Dinner affair lasted well into the night. Five of the defendants were repre- sented, with Donovan the chief spokesman. Utmost Secrecy The silence surrounding the parley —which at first applied even to the names of the conferees—was dic- tated by Donovan, who referreJj all inquiries to the Justice Department. Fearful the meeting would be con- strued as evidence of guilt and readi- ness to capitulate, he exacted a promise of no publicity as the price for talking with the Government men. Except for an innocuous state- ment admitting the talks had taken place, Arnold cooperated, although personally he was willing to remove the veil. With the D. J. gibraltaring on the point the majors were most anxious to put over—a swap under which the affiliated companies could retain both their studio and theatre inter- ests—and the industry reps protest- ing inability to make commitments ivUhout home office consent, the net effect of the meeting was to leave the defendants still worrying about possible criminal prosecution. While Arnold was firm and emphatic, no ultimatum was issued, SO the indus- try group is still groping for a way out of the maze. Manner of the Federal bargainers was not particularly encouraging, even though it was intimsted the. Department will not be unt:easonable about bringing the matter to a con- clusion. Additional time to study the problem can be obtained, Arnold and Williams hinted, but the Gov- ernment will not back down on the matter of splitting the industry's principal'branches. There can be no trade which • in- volves the principle that production and exhibition must be separate activities, the majors learned. While it is possible the exact terms— withdrawal of Paramount, 20th Cen- tury-Fox, and Warner Bros, from exhibition, and of Loew's and RKO from production—might be altered, the Department of Justice is con- vinced that integration has several vices, limiting competition at each end and consequently injuring the public as well as independents. This was made crystal clear during Arn- old's sermon about the whole New Deal drive on monopolies. Realty' End Whether the groundwork was laid for a stipulation under which the five companies will preserve the status quo in the realty field was unknown, but the D. J. did not re- treat in its determination to block further expansion of producer con- trolled chains. Arnold would not say if any agreements were reached, but all outward signs were the Gov- ernment stood firm with a temporary injunction as an ultimate weapon. Industry contingent included J. Robert Rubin of Loew-Metro; Austin Keough of Paramount: Robert Perkins of WB; Ralph Harris and John Caskey 6t 20th-Fox; and Wil- liam Ballard of RKO. O'Brien Vs. O'Brien Los Angeles, Oct. 4. The $500,000 suit of Pat O'Brien, ^freelance actor, against Pat O'Brien, Warner Bros, star, the WB studio, iLouella Parsons and Jimmy Fidler, was ordered set for trial by Supe- rior Judge Robert Kenny,- who de- nied a motion for dismissal. , Freelance O'Brien charges the de- fendants with "preventing .him from obtaining employn^ent in films. After nearly four years of quib- bling and dispute, prospects of RKO starting the new yeair under a new setup appeared certain Monday (3) when final oral arguments, pro and con, on the reorganization'plan -were concluded before Federal Judge William Bondy, in New York. At the end of an all-day session, the court set Oct. 25 as t*-e date for the next hearing at which time it is ex- pected he may confirm the plan which was submitted to him last spring by Special Master George W. Alger. Meanwhile, Judge Bohdy allowed the attorneys- for grouns, mostly stockholders, opposing the plan, 10 days to file additional briefs and Col;.. Hamilton C. Rickaby, counsel- for the Atlas Corp., pro- ponent of the plan, five days addi- tional, to answer, them. Consensus is that .Judge' Bondy will okay the new setup. ' ' ' Monday's hearing was mostly taken up with charges by Joseph Cohen, representing the Independei^ Stockholders' Protective Commit^ tee, and John S. Stover, counsel to Ernest W. Stirn, of Milwaukee, holder of- 1,234- shares of Class -A stock, which he ^-efused to cohvert into common in 1931. Cohen objects to the Rockefeller Center claim on the grounds that, under the old plan which was re- jected, they had agreed to accept 400,000 shares of common stock in- stead of 500,000 which they would receive under the new plan, despite the, fact that the present stock is more valuable. He declared that the stockholders will receive only one-twenty-fourth of the $22,000.- 000 they have invested for their stock. He asked that Judge Bondy revise the plan so that the stock- holders would get one share for four instead of one for six, and asked representation on the board of directors for , the stockholders who now only have the right to cumu- lative voting. Stoyer Was more belligerent in his opposition declaring that the (Continued on page 63) Trado Mark RcRlnterPd FOdNDKn BY SfMB SII.VKK.MAN ruhllshed n>rkly by VAKIKTV Inc Hid .siivftpmnn. KieBldpnJ 164 West 4Cth Street. NjCW Vorh Cltj PUBSCRIHTION Annual $C Foreign tt SInKle Copies... |6 r«niii Vol. 132 120 No. 4