Variety (Oct 1938)

6 VARIETY PICTURES Wednesday, Octobi^r 5# 1938 Films Put In the Middle (Continued froAi page 3) 10 poic:T, pftjgram of Motion Picture Theatre Owners of America, ,this might constitute an admission of- guilt to the things charged in the anti-trust action. The big issue is whether or not major companies should go ahead with trade practice huddles, forget- ting for the time being the threat of the civil law suit so that a strong front may be offered in the cam- paign to curb adverse legislation early in 1939. It is such a . ticklish question that the ultimate decision probably will be left for legal heads of major companies to decide. Sec TI. S, Control Situation is further complicated by the fact that shrewd minds in the trade see in the civil anti-trust ac- tion evidence that an attempt at some sort of Government regulation is planned at the coming session of Congress. They see stemming, from this suit, numerous legislative meas- ures proposed for enactment at the next session, and point to the tran- script in the case which indicates many objectives named in the suit would be considered , in new legisla- tion, Needly bill to control sellmg and sales and part of production policy is just a hint of what is be- ing prepared for the film industry. Temper of the country^ of Con- gress and state legislatures is for action against chain operations of all types, with pejuJty tax proposed on chain setups (not necessarily thea tre circuits) in some 20 states; In addition, it is doubtful if there will be much quibbling over the Neely bill or other similar measures this time by congress. Washington solons heard industry beads more than three years ago when the initial measure aimed at block booking was proposed. At that timje Congress was informed that the film business was able to handle its own industry' and attend to its own reforms. Since then this has re mained only as a promise and con gressmen are apt not to be in a mood to accept promises again. Solution Was Near Unusual part of the entire situa- tion is that an approach tct a solution of trade problems was near when the Government suit was filed last sum mer. Reported that trade practice negotiations were approaching the stage where distributors would have been in conference with exhibitors had the suit been held off another month. When Federal anti-trust ac- tion was filed, trade practice work was dropped suddenly. Ultimate- result, - as presently viewed,' is that exhibitors already are getting ready to whoop it up for in- dustry reform via Congress, because voluntary reform seems to have been tossed into the discard. Besides threatened legislation in Congress, there are sure to bie a number of states seeking theatre divorcement laws. Bombardment of legislature guns seems certain to be directed against the film business with the greatest vigor in history. With such legislative onslaught bound to hurt the industry, some in the trade are advocating the concen- tration of heaviest guns on these most tangible threats. Some even think it would be smart to permit the federal suit to take its course with final decision not probable for 18 months to two years. If trade practice confabs, carried on voluntarily, are able to work out definite refornrts before legislation comes up for vote, veteran film of- ficials realize so much better the chances of defeating them. The big 'if here is whether various picture companies think it wise to proceed with the trade practice parleys, while facing the anti-trust action. Then, too, there is the possibility that major executives may want legislative regulation. This is predi- cated on the supposition that they would prefer to have it in black and white what each company can and cannot do. This conceivably might prove a means of avoiding exhibitor attacks. And certainly, aver some leaders, major companies are going at it in the right way to be on the receiving end of legislative thrusts by seem- ingly ducking trade practice confer- ence idea. There has been talk in the past of obtaining clarification of anti-trust laws, but in such clarifica- tion via legislation there always is the danger of having too severe statutes thrust on the industry. Philly Indie Sues Philadelphia, Oct, 4, Suit against nine' major film dis- tribs- was filed last week in U. ,5. District Court by Harry Fried, indie operator of the Suburban, Ardmore; Seville, Bryn Mawr, and the An- thony Wayne, Wayne, Pa., charging illegal restraint of trade and unfair practices. Fried asserted in his petition that he could not get films for his Subur- ban until 30 days after the rival Ard- more (WB) accepted or rejected tltcm. He also declared that he could not get product for the Seville - or Wayne until seven days after that. Indie claimed that he uses 350 features a year at his three houses, compared to 180 shown yearly by the Ardmore. Marshall at U, Pilots Fields-Bergen Picture Hollywood, Oct. 4. deorge Marshall, borirowed from 20th-Fox, directs the Universal pic- ture, 'You Can't Cheat an Honest Man,' starring W. C. Fields, Edgar Bergen and Charlie McCarthy. Shooting starts early this month. Steffes' Private Beef Minneapolis, Oct. 4. Although he has reiused to upake any statement, W. A. Steffes, presi- dent of Northwest Allied, is under- stood to have a number of complaints including one of his own, to submit to the Department of Justice to be used in connection with the latter's anti-trust suit against major film dis- tributors and producers. His gricr vances is the difficulty he has ex- perienced in obtaining film product for his local Alvin which he desires to reopen with a picture policy. Another cause of complaint con- cerns protection which, in one in- stance, was extended 700 miles from Miimeapolis, its's alleged. Squawks regarding forced buying of shorts also will be brought to the Govern- ment's attention. NEW N. Y. STA€EHANDS' DEAL ALL SET TO GO Only minor details remain before a new contract between the stage- hands and New York theatres is ready for signature, following nu-r merous meeting with the committee headed by C. C. Moskowitz, Loew operating official. Agreeing on an increase of 6% for the larger houses and 5% for the secondary theatres, details yet to be worked out concern lesser conditions in the smaller the- atres. Having settled with the Building Service Workers, recognizing that union over porters, charwomen, etc., increases to meet the scale of $16.50 minimum were given out on the pay checks for last week's work, in most cases Friday (30). Local 306 (operators) has not yet worked out scale and conditions with the Independent Theatre. Owners Assn. under the 10-year contract for recognition signed two years ago, but expected that settlement will be reached shortly. The operators have a carryover contract with the circuit houses. Union is continuing its pick- eting of Century circuit houses in Brooklyn in an effort to force their members into booths now manned by Empire men. SL Louis Amusement Co. Nicked $7,940, '32 Taxes St. Louis, Oct. 4. A stipulation has been filed with the Board of Tax Appeals in Wash- ington fixing $7,940 as the federal in- come tax deficiency of the St. Louis Amus. Co. for 1932. It was originally contended by the U. S. that the de- ficiency amounted to $18,000. The Board-^of Tax Appeals found that there was no claim for 1933 against the St. Louis Amus. Co. in its op- eration of the Mikado, a nabe. At the time the tax deficiency oc- curred, the AmusemenL Co. was not controlled by Falichon 8r Marco in- terests which now have charge of tie management of this house and others in the St. Loui- Amusement Co. chain. F&M did not take over Amusement Co. until 1936 when peace was made with WB, et al. in New York, COACHES FINALLY Hollywood, Oct 4. Two All-American gridders, James Flavin of Army and Nick Lukats of Notre Dame, were signed by Edward Small as football coaches in 'Duke of West Point.' Troupe is working in the Rose Bowl, made up to look like Michie Stadium on the Hudson. SOME mm STOCK DEALS IN AUGUST Washington, Oct. 4. Several good-sized transactions by film company insiders during August were unveiled today (Tuesday) in the latest Securities & Exchange Commission report. Most transactions in 20th Century Fox tickets, with three ground-floor occupants taking advantage of op-^^ portunities to dump some of their portfolios. Joseph M'. Schenck, board chairman, set the pace, un- loading 10,400 common shares in series of 14 transactions extending through the month and cutting his slice to 119,443 ducats plus 23,284 pre- fered shares. William Goetz re- ported he had disposed of 10,000 shares of which he was an indirect nominal owner, cutting his poke to 194,643, while Darryl Zanuck peddled 10,000, keeping 142,130. Besides the remaining common shares, Zanuck owns 21,946 pieces of preferred and Goetz 55,824. Purchase of 1,200 voting trust cer- tificates of Universal Corp., parent of Universal Pictures, was reported by Daniel M. Sheaffer. Gives him 14,- 800 in addition to his stake in the 26,500 pieces in the name of Standard Capital Co., which also accounts tor 111,283 warrants. John D. Hertz, the Lehman Bros, voice on the Paramount directorate, reported his roundabout interest was pared when the brokerage firm un- loaded 1,000 shares of second pre- ferred, emptying the till. Belated report showed Sam Katz picked up two pieces of Loew's, Inc., common in July, boosting his batch to 752. The company itself added another 36 shares of the common stock of its stepchild, Loew's Boston Theatres, boosting the total to f3,670. Kirk W. Todd, Grand National di- rector, wiped his slate clean by ped- dling his remaining 150 shares of the bankrupt firm. AVALON, MILWAUKEE, AGAIN HELD UP; $1,147 Milwaukee, Oct. 4. For the second time this year and the third in its history, the Avalon, Southside nabe, was robbed, this time $1,147 being taken by some un- known pierson who worked the com- bination oh the safe in the office of the show house. The Avalon safe was looted of $1,600 Jan. 2 and similarly robbed of $1,200 three years ago. John L. Fenny, theatre manager, said the loss represented weekend receipts and some bank night cash. Col. Reelects Board Routine business, aside from handing out three new contracts and options to buy stock at specified figure, marked the annual stock- holders' meeting of Columbia Pic- tures Monday (3) at N. Y. ohices. Retiring board of directors was re- elected and all proceedings and acts of the preceding year by the direc- tors w^re approved. After handing new contracts to Samuel J. Briskin, A. Schneider and A, Montague, stockholders voted options to purchase stock at about $14 a share, with Briskin allowed to buy 10,000 shares and Schneider and Montague, 7,500 shares each, at this figure. Stock now is selling at $14 to $15 per share. SHAm OFF 'VARIETY' Sam Shain of Variety's New York staff has resigned, effective last week. - He was on this paper some nine years. Lefty Muses on the Thaobgiving Preview Carving Done on Czecho By Joe Laurie, Jr. Coolacres, Cal„ Oct. 4. Dear Joe: Well, now that everything's settled in Europe we can go right ahead with our own business over here. It was nice of those four guys to prac- tice their Thanksgiving carving on Czechoslovakia, That near-war sure ruined my business. Everybody and his brother stayed home to listen to the radio. Guys were arguin" about the Czechs, Germany, Poland and those other one-night stands who didn't even know v^rho the Lieut. Gover* nor of their own state is. I had a very appropriate double feature, 'Fugi- tives for a Night' and 'Time Out for Murder,' Even Aggie is hopped up; she sez she's been worrying aboui the checks all her life. It was a big table that those four boys sat down to, because the Czechoslovakia map was a big map when they started. As they went along taking hunks out of the map, they took leaves outta the table, and when they finished the table was a tea wagon. Those guys remind me of the time when George M. Cohan went to visit A. L. Erlanger years ago to talk over what percentages George would get for his shows. George looked at'Erlanger's bedroom which was over 40 feet long, and said: 'Some day I'm going to have a bedroom the size of this.' 'Why?,' asked A. L, •So I can walk up and down all nigh't and figure out ways to trim guys,' said Cohan. According to results in Europe that conference was held in a big bedroom. Nearly everybody's opinion in Coolacres was, 'Let's keep out of it,' but I don't know if they meant the war or my theatre. Well the radio station is all set. Got our license the other day and our letters are P. H. E. W. Aggie sez the guy that gives out the letters musta had a hunch. We got a swell little layout and we're gonna have our grand opening next week. Boy, that air board is tougher than the Hays office. They gave me a list of donts longer than a vaudeville actor's layoff route. We can't say certain things, can't take certain ads, etc., etc., and etc. If the Air Commission and the Hays office would pool their donts it would make a great alibi for everything. I got my program almost all set. Vic, Aggie and me are gonna do a Hill- billy Trio. We all sing bad enough for it and the natives like it. I also wrote a serial. I calls it 'Heigh-Ho 49'rs.' It's got a lot of the ingredients of the Lone Ranger and Death Valley Days. Vic plays the part of a vigi- lante-bandit. I'm gonna play an old stagecoach driver, Aggie is gonna play the Widow O'Neill, and Flo is gonna be the city.gal tliat comes visitin' out west and falls in love with Vic. Tl^^ banker is gonna play the villain. I know the idea is nothin' new, but as I wrote you before, I don't want to put anything new on the air all at once and revolutionize the radio business. If we could only get half the morons that listen to other programs we'd start off with a terrific Crossley rating. Glad to hear that Olsen and Johnson have a hit in their new show, 'Hellzapoppin.' It just goes, to show what can be done with an after- piece. Give my best to Hal Sherman and Barto and Mann. I hear they're big hits in the show. So my pal S. Jay Kaufman has the Hi-Li games at the Hippodrome? I'll bet Billy Rose is sore he didn't do it instead of 'Jumbo.' It sure is a fast game. I saw it years ago at Miami. I'd like to see it played by midgets with a mothball and fly swatters, and use a piano box for a court. Well, kid, sorry you can't listen in to our opening program. We're lucky if we have enough power to. get it out of the studio. Sez Your pal, Lefty, P. S. Brandon Walsh sez, 'The loss of a wing is the same to a mosquito as the loss of a leg is to an elephant.*^ 'Chain Gang' Suit Nearly Ready for Atlanta Jury Atlanta, Oct. 4. Trial of Judge Vivian Stanley's suit for $100,00i[l agaiQ.st Warner Bros. Pictures, charging he' was libeled by pic firm's 'I Am A Fugi- tive From A Chain Gang', is now well into its second week in Fulton superior court and nearing the jury. Judge Stanley is a member of the Georgia Prison Commission and con- tends film was based on book, 'I Am a Fugitive From a Georgia Chain Gang*, by Robert Elliott Burns, who escaped from the chain gang in this state. Pic was shown to jury shortly after trial opened and there's been a lot of legal skirmishing going on. 'Rio' Not for Danielle Hollywood, Oct. 4. Universal's 'Rio,' originally slated as the next Danielle Darrieux star- rer, was shelved after the story failed to jell into a suitable screen play. Stephen Morehouse Avery and Frank Partos are working on a new yarn for the importee. The Mob Muscles In Hollywood, Oct, 4. Latest addition to the Warners' winter production sked is 'Whatd'ya Hear from the Mob,' to be directed by Lew Seller, who furnished the idea. Bbnita Granville and six Dead End Kids will be featured. ALBINE, Pin, BECOMES HARRIS' 20TH HOUSE Joe Rivkin Solos Hollywood, Oct. 4. Joe Rivkin has withdrawn from Crawford, Winslow & Curtis agency and branched out on his own. After giving up the agency biz in New York, Rivkin'came to the Coast to be casting chief for Hal Roach and later Columbia. Pittsburgh, Oct. 4. ■ John H. Harris last week con- firmed that Harris Amus. Co. had taken over the old Aldine on ji term lease. Denied a month ago that he was dickering for spot, althoygh house even then was undergoing ex- tensive repairs both inside and out. Aldine has been closed for several years, but Loew's had been shelling out rent to Massachusetts Mutual Life Insurance outfit, owners of property, until Aug. 31, under terms of a deal signed 10 years ago. Harris announced he would spend around $100,000 remodeling site, will rechristen it the Senator and have it ready by middle of November. Acquisition of house makes 20th link in new Harris circuit and also gives chain its second downtown first-runner, other being Alvin. Un- derstood outfit's ajso dickering for a South Side piece of property upon which to build another nabe. theatre. Ha"rrrises recently opened two new spots here, Denis and Perry. Tentative plan is to install straight pix policy in Senator, with Alvin, however, getting first pick of screen product Harrises have available, al- though altogether likely that flesh will be used, too, although that hasn't been decided yet. At present only house in town using stage shows is Stanley, WB deluxer. Start Over on Trench' Hollywood, Oct. 4. Evelyn Keyes, ill for two weeks, finally withdrew from the cast of 'Say It in French' at Paramount and was replaced by Mary Carlisle. Change necessitates the reshooting- ing of most of two weeks' Avork. Picture had been shot around Miss Keyes in the hope that she would recover, but the doctor ordered fur- ther rest. It was her most important film role.