Variety (Dec 1938)

VARIETr PICTURES ITcdnesdaj, December 7; 1938 1 I' Southwest Merchants and Editors Resent Theatres Selling Goods And Accepting Ads; Talk Reprisal Austin, Dec. 6. Having formerly complained and battled individually against the cir- cuit theatres' increased use of their lobbies for out-and-out merchandis- ing, the Retail Merchants Associa- tion, the Wholesalers Association and the Southwest Editors Association have combined forces to cdmbat col- lectively the merchandising tactics of Southwest theatre circuits. Re- tailers and wholesalers are burning plenty over the converting of the theatre lobbies into regular stores in which all types ©f merchandise are being sold, while the newspapers are sizzling over the circuits' invasion of the advertising field. Retailers and the wholesalers base their complaint on the charges that the theatres are using unfair trade practices in-setting themselves up as regular chain stores. Retail mer- chants, who must buy from the wholesaler at a price which gives the jobber a fair profit as go-, between for manufacturer and re- tailer, are loud in their denunciation of the circuits which are buying merchandise direct from the manu- facturer at a price which.is lower than that obtained by the retailer. Unfair Competition Individual merchants allege that this is putting them under *an unfair disadvantage in competLtioa with the circuit stores, since the chain the^ atres 'are buying merchandise so much cheaper and their margin of profit is therefore so much greater. This, margin of profit they can either pocket or shave to the continued dis- advantage of the individual mer- chitnt. On their hand, the jobbers are squawking and threateninjg to peti tion Senator Wright Patman to take Political Timber Hollywood, Dec. 6. Charlie McCarthy was the most popular write-in candidate in the recent election in Los Angeles County, according to William M. Kerr, registrar of voters. Edgar Bergen's dummy led in the added-starter ballot for governor, U. S. senator, lieuten- ant-governor and state fore- caster. Second write-in candi- date was Shirley Temple. N. ¥. INDIES TO D.tONGOn sorr Harry Brandt, head of-the Inde- pendent Theatre .Owners of N. Y., summoned to Washington for con- ference with Assistant U. S. Attor- ney General Thurman G. .Arnold, left N. Y. yesterday (Tuesday) ac- companied by Milton C. Weisman, attorney for the iTOA. Discussions will center around the Government's monopoly -suit accus- ing major theatre circuits .afiiUated with important distributors of dom- inating first-runs of pictures. Prob- able basis for allegations in the suit are said to have resulted from niun- erous complaints along these lines from independent theatre owners cognizaniie of a situation in. which from time to time, the wholesaler is bein^ eliminated The Brandt Circuit early this year entirely by circuit theatres which |ig kiiown to have registered a beef are negotiating direct with the man- ufacturer. Not only is this practice tending to kill off the wholesaler en with the Department of Justice that the majors, in the New York terri- tory, had a stranglehold on flrsti-run Rep Regulates Agenti Hollywood, .Dec. Republic locked the door yester- day .Monday) against talent agents and other salesmen who had been enjoying the freedom of the studio. From now on, 10%era will be con- centrated in three spots: players' agents in the casting director's oflieei writers' representatives in the sce- nario office, ahd directors' handlers in the front office. U. S. VERSUS B&K AGAIN BOUND OVER Chicago, Dec. 6. Attorneys in the government suit vs. Balaban & Katz «nd seven major distributors huddled with Federal Judge Woodward last Thursday (1) and came out with a decision to de- lay hearings on the case until this Thursday (8). This is the second postponement in the case, which got under way Nov. 28. Expected' that the case will be continued into the new year before actual hearings and testimony start. With their present assignment oh the Allied case, which is now being heard by Federal Judge' Wilkerson, the defense attorneys feel that they have a. couple of months to prepare a proper answer to the Government's allegations. Meanwhile the defendants have asked that the Government deliver a full bill of particulars, giving a more detailed listing, of the plai]]i- tifl's charges. Discussion has also arisen over the question of whether or not the defendants* books shall be impounded and brought into the trial. tions that, independents, might, get together and pool their houses into a third 'major* .circuit;. strong'enough to buck Loew's and BKO, but nothr ing ever come of it . y^iUiam Brandt, partner in the Brandt .Circuit, yesterday denied that Harry Brandt's conference with Ariio.ld would_iiave anything to do with report that the Government is now questioning the. posi^bility that large indie circuits themselves have become too strong for their competi- tors in this territory. tirely, fcut it puts the jobber's pres-| pictures. There were, also intima ent customer at a disadvantage with the circuit theatre. .Federal Squawk And still another facet of this sit uation that is bringing the jobbers to a point where they will appeal direct to the Federal authorities to intervene is the new practice of the circuits to set themselves up as wholesalers in their own rights. Be- sides engaging in retail merchandis- ing, the circuits go further by step- ping into the wholesale business, contactihgf other theatres throughput the Southwest'.to;; sell- them job lots of popcorn, peanuts, soft-drinks, etc.,' plus the machinery to prepiare and dispense these items. Reported there is a possibility that these theatres may shortly go into the manufactur- ing end by taking over a.-Dallas fac; tory for-the manufacture of novelty items such as flags,. dolls, costume jewelry, gift novelties, etc. Associations complain that though the theatres transform their lobbies into chain stores, they -do not at tempt to comply with rnunicipal and state regulations regarding the op' eration of stores. Hays Back This Wei^k Will Hays comes in from the Coast this week preliminary to, the . quar- terly directors meeting of the Mo- tion Picture Producers & Distrib utors association Dec 14...-^- Hays went to Hollywood about two weeks ago on a periodical visit His office in the MPPDA headquar* ters has been completely renovated for his-return. N. Y, taL. A. Tom Baiiey. Jack Bloom. Mary. Boland. Harry Buxbaunh Ernest Charles; William J. Clark. Mr. and Mrs; Gary Cooper; Clarence Derwent. Arthur Dreifuss. Roger Ferri. Martin Gabel. William Gering. Sidney R. Kent. William Kupper. Joe Lee. Reuben Mamoulian. Charles E. McCarthy. -Martin Moskowitz. Edgar Moss. ■ J. P. O'Loughlin. Randolph Scoit^ Mr. and Mrs. William A. Selter. Jack Sichelman. William Sussman. Kenneth Thomson. Armanda Varela. James Whale. ' Lloyd Wright Dr. Luhin s I.Q. on Increased II. Family Spending; Effect on B. 0. Friendly Enemies Chicago, Dee. 6. Though Allied members here have a Federal suit in progress against Balaban & KatE^John Balaban and members of the B.&;K. organization attended the testimonial dinner to Jack Kirsch,. head of local Allied, last Friday (2). Jack Miller, toastmaster, openly pointed out the. good sportsnianship exhibited by Balaban in coming to the din- ner. Morrie Leonard, B.&K. real estate attorney, and Nate Piatt, district manager, accom- panied Balaban. MAJORS ELATED BYINDPIS. VERDICT Indianapolis, Dec. 6. Victory for major picture com- panies in the anti-trust suit brought by the Indianapolis Amusement Co., as result of a jury verdict here, was hailed by larger distributor com- panies as indicating a shift in senti- ment. Case dates back to 1931 and is the first of its. kind to be set-' tied by jury trial recently rather than by court decision. Indianapolis Amus., which op- erated the Regent and Colonial here, claimed the usual inability to se- cure product injured their business, the customary allegation about be- ing forced to play inferior product being made. Plaintiil sought $266,000 damages and' would have recovered triple that amount in district court here if victorious because the action was brought under the anti-trust stat- utes. ARRIVALS • D'Aguair Mendonca, Jean Drou- ant, Jean Gacon de Cavaignac, Mr. and Mrs. Todd Duncan, Mrs. D. C. F. Harding, Mr. and Mrs. Albert D. Lasker' (Doris Kenyon); Jack.Cohn, Joseph Driscoll^ Douglas Williams, Countess Keller (Eleanor Sawyer), Mr. and Mrs. Gary Cooper,- Alexan- der Korda; Douglas' Fairbanks, Jr., David Rose, John W. Hicks, Jr., Ernest Pascal, Jessica Tandy, James Whale. Newspapers Peeved El Paso, Dec. 6. Increased use of screen and lobby advertising by theatres has the newspapers in this territory ';^p in arms, .and ian appeal is being made to the'Southwest Editors Association to take a direct step against con- tinued operation in the ad field by the . circuit houses. Editors, who at first gave theatre ads a.toiild eye, are now alarmed at the gi^owth. of the screen and lobby advertising and see in it a real threat to their business. They are now pre- paring a campaign; to go direct to the public to state that the theatre is not the proper place for commer- cial advertising, and that theatres which accept commercial ads are not operating .in the public's interest. 4As Board Meets Today (Wed.) To Revise Laws in 1 Big Union Move M. p. BELIEF'S OWN BIDO. Hollywood, Dec. 6. Motion Picture Relief Tund trus- tees okayed plans for a new build- ing in Hollywood, to be ready Feb. 5. Associated Actors and Artistes of America board will meet today (Wednesday) to consider revision of the constitution! Unlikely that any extensive changes, will be attempted immediately, but probable that a preliminary groundwork will be sought for working out the problem. Ultimate aini of the constitutional changes is to bring about the 'one big union' idea. Kenneth Thomson, Screen Actors Guild .executive secretary and Four A's. vice-president Came east last week to attend the Four A's session as well as to deal with local SAG affairs. He has held several in- formal huddles with other Four A's heads and is thought to haye made some progress fowiurd solution of the constitutional problem. Fact Samuel Goldwyn and John Balder- i ^ ston were named as board members that he is due to plane back to Hoi to fill the vacancies of Edward Man- lywood tomorrow (Thursday) or Frl nix and Oscar Tlammerstein, re- day (9) indicates no drastic action signed. I will be attempted at once, however IJiomson expects to return east In February. For the first time since the 'one big union' idea was introduced, heads of the various member groups appear to have reached at least a partial agreement on its desirability. Just how far that agreement might extend is unknown, but nearly all the officials concerned are now be- lieved in favor of the idea of a cen- tral office, with joint administra- tions, joint bookkeeping, a single membership card and a single set of dues. Vastly complicated problem of how the scheme could be worked out is now the fiy in the ointment Although the mere agreement of the desirability of a single office and combined administrations is the sim- plest part of the problem, it consti- tutes a giant step toward culmination of the 'one big union' scheme. When the idea was first broached last year it precipitated the most violent quar- tel in Four A's history. D'Arcy Wins Spurs Hollywood, Dec. 9. Harry D'Arcy has been upped to a full directorship of shorts at RKO. He was formerly in the prop depart- ment and recently an assistant di- rector. First piloting job is the next Leon Errol two-reeler, starting to- morrow (Wed.). RKO schedule calls for 11 two- reelers for December, four starting this week. List comprises four £r- rols, one Roy Whitley musical, one Headliner, two Radio Flashes and three Edgar Kennedy family yarns. Washington, Dec. 6. Slight redistribution ot national wealth would bring ihilUoAs rolling into film box offices and tills of other recreations ventures, according to analysis of the economic system given the Temporary National Economy Committee last wetik by the New Deal's ace economic) Dr. Isadore Lubin. In laying ^oundwbrk for the most sweeping examination of the fihah- cial and industrial mechanism in several generations. Dr. Lubin warned that standards of living must be boosted if an Economy geared to mass production, is to con- tinue operations at capacity. In hi professional analysis which launched hearings expected to'run more than a year, he told of the urgent neces- sity of increasing purchasing power of families with lowest incony; In order to afford an outlet .for. goods and services of the business machine. American industry, on the basis of present organization and .technique,^ cannot. maintain itself from receipts' through sales to the part of the pop- ulation which has an inpome,.of more than $5,(A)0 per household, in Dr. Lubin's opinion. Great problem to be solved by Government finance, business. 9.nd Industry is how to get more cash into the hands of the 16,- 000,000 families, 54% of the total, which have less than $1,250 to spend each year. Picturing what could be done but not telling how, the Labor Depart* ment figure-juggler said that a $2,-a- day rise in the income' of 5,200,000 wage-earner families at the bottom of the population pyramid would provide a badly needed outlet for all producers of consumers' goods. These families would have' $234,000,* 000 to spend for recreation annually,^ Dr. Lubin estimated. In discussing, the effect of such a redistribution of purchasing power on films, the expert predicted picture exhibitors would experience th« beneficial effect of 'a tripling In ad- missions sold to this class of our population.' Average annual outlay by low-income workers would jump from $4.14 per family to $12.82, aA increase in ticket sales of approxi« mately $45,000,000 yearly. SAILINGS Dec. 17 (London to New York), Gebay Morlay (Normandie). Dec.' 16 (New York to London); Ray Milland (Queen Mary). Dec. 16 (New York to London), Clifford C. Fischer (Paris). Dec. 10 (London to New York), Montague Marks (Queen Mary). Dec. 10 (New York to London), Solomon Sagall, Lesser Samuels (Aqultania). Dec. 7 (Los Angeles to Honolulu), George Smith (Monterey). Dec. 3 (London to New York), Max Milder, CarorLevis, Russell and Marconi, Sandra Lynde, Al Trahan, Oshins and Lessy (Aqultania). Dec. 3 (New York to Rio de Janeiro) Kenneth Lane and Edith Carroll (Uraguay). L. A. to N. Y. Sam Bischoff. Diana Bourbon, Bob Burns. Theodore Carr. Ken Dolah.- Jimmy Durante. Lynn Farnol. John Garfield. Johnny Green. Will H. Hays. Leland Hayward. Irene Hervey. Edna Johnsoii* Allan Jones. Dr. Herbert T. Kalmua. Myron Kirk. Jack Leighier. Norman McLeod. Brewster Morgan. James Mulvey. Ken Murray. Anna Neagle. Fred Quimby. Shirley Ross, Charlie Rugglea. George Shelley. Norma Talmadga. Harold Tarshis. Frankie Thomas. Frankie Thomas, Jr. W. G. 'Van Schumus. Eugene Walter. Herbert Wilcox. Other News of Interest to Films Australian b.o. at depresh era depths; Page 11 French decree seen hurting U. S. distri Page 11 Sharp British production drop , .....Page 11 20th-Hoyts deal in Antipodes Page 11 AFRA piqued by admen Page 23 Peddling Parsons, Bacl^er Page 25 Television developments Page 25 Radio reviews; Bob Hope, 'Refugees Theatre of the Air' Page 26 Robbihs-^Metro's own coin-machine royalties , , Page 37 Lola Lane's new -act. .' '. Page 42