Variety (Dec 1938)

Wednesdaf, December 7« 193B PICTURES VASJETY PERSONAL CONTRAQ H-G Makes It Tougher Wooing the good will of the dailies as the motion picture industry has been trying to. do, the planting o£ a phoney 'Gone With the Wind' yarn by Mietro's press department on the Coast certainly doesn't help the rest of the business. It was an okay break for Metro's 'Dramatic School/ that being the purpose of the Faulette Goddard hookUp, since she's in the Metro film, going put on release this week. Distributors and Producers of Pix, Incl. Raw Material Mfrs., All Come Under Wage-Hr, Act; Newest Ruling Washington, Dec. 6. Distributors and producers of notion picture filins, as well as firms supplying raw materials for the in- dustry, come within the scope of the wage-hour act under latest inter- pretations by General Counsel Calvin Magruder of the Labor Department's wage-hour division. Most recent statement about the effect ,of the Fair Labor Standards Act removes any do.ubt the Federal regulators will ex- pect the bulk of the film business to comply with the requirements. Supplement to first interpretative bulletin noted that provisions of the statute apply to persons 'engaged in commerce or In the production of goods for commerce.' This phrase- ology extends to employees of any firm which 'Intends or hopes or has reason to believe that the goods or any unsegregated part of them will movie in interstate commerce.' Filial decision .depends, however, upon circumstances as - they exist when operations are performed, act not he- ing retroactive. Argument that film producers Used unsuccessfully in attempting to wiggle out of jurisdiction of the Na- tional Labor Relations Board had no eftect upon the Labor Department lawyer. Concerns may be engaged in producing goods for commerce even though they do not directly ship product over state lines. Magruder said, 'It is Immaterial that the pro- ducer passes title to the purchaser Within the State of production,' and added that manufacturers of 'in- gredients' of articles which ulti- mately move in interstate commerce also are subject to the law. Labora- tories also would come within the scope of the act under a ruling that processors of commodities destined for interstate shipment are 'engaged in commerce,' Possibility that members of trade associations are entitled to benefits of the act was suggested in the ad- visory opinions. Since many persons working for industrial organizations are occupied in research on behalf of members in other states, the law presumably applies. Congress re- ferred to 'subjects of commerce of any character,' which the wage-hour enforcers consider covers publica- tions, pamphlets, bulletins, and other written materiaL Ruling on wholesalers apparently makes film exchanges and distribu- tors' branches subject to the law, Magruder pointed out his first rulings held 'employees who are an essential part of the stream of interstate com- merce' are deemed to be 'engaged in commerce.' Even if all sales are made within the state, wholesalers can be subject to Federal regulation when the goods they handle come from beyond the borders. Ritzes' 3 for 20th-Fox Chevalier BuiM For Jean Sablon at RKO Hollywood, Dec. 6. RKO has ambitious plans for Jean Sablon, radio singe^ who played out the string with 'Hollywood Hotel.' Studio sees in the romantic French singer the makings of another Mau- rice Chevalier and will fashion a publicity campaign along those lines, Sablon has made French pictures but his appearance in 'The Castles' marks his American debut. Hollywood, Dec. 6. Ritz Bros, signed a new pact with 20th-Fox, calling for three pictures in 1939. Currently winding up 'Three Mus- keteers,' the brothers leave next week for an eastern vaude tour. CHURCH BEEFS FORCE FILM YANKING Pittsburgh, Dec. 6. Picketing by Catholic organiza- tions forced Barry, downtown indie house, to yank Willem Hendrik van Loon's picture, 'Fight for Peace,' last week after a run of only four days. Film was denounced as Communis- tic propaganda by church groups and came in for bitter editorial at- tacks in the strong weekly Catholic Observer here. Efforts were made by Catholic leaders to prevent film fro'n getting started and they also appealed to heads of other religious groups to interfere with Barry management. Theatre, however, opened it as scheduled, after privately .screening 'Fight for Peace' for more than 300 civic and church biggies, and was immediately picketed and de- nounced in pulpits. It was yanked when pressure became so great biz fell away to nothing. Art Cinema, foreign film spot here, announcing advent of anti- Nazi film, 'Professor Mamlock,' last week was sot upon by unidentified individuals who tore heralds down from front and ripped out every mention of Soviet picture in outside lobby. FORM FAIRBANKS INT'L TO PRODUCE 3 FILMS Fairbanks International, new pro- ducing unit of United Artists, headed by Douglas Fairbanks, Sr., was an- nounced yesterday (Tues.) by nounced yesterday (Tues.) by cable from London. New company will be financed by American capital, British capital, represented by Sir Adrian Baillie and Montague Marks, and Swiss investment interests. Ini- tial capital of Fairbanks Interna- tional will be $2,500,000. Fairbanlcs will devote himself ex- clusively to production plans of the new organization. Three pix are planned, first 'The Californian,' which Raoul Walsh may direct. Second will be 'The Tenth Woman' based on life of Lord Byron, in Technicolor, while the third picture will be a remake of 'Three Muske- teers,' also in color. Marks leaves England for N. Y. on Saturday (10) while Fairbanks leaves tliere three weeks later, to complete organization plans and make arrangements for start on 'Californian.' BOIH FID[ REPS Producers, Directors Denied Right to Rep Talent in Licensing Plan — Writers Guild Petition Next on NLRB Docket — Studios Amenable to Wage-Hour Act EXTRAS 200G MO. Hollywood, Dec. 6. Code of ethics being drafted by the Screen Actors Guild for fran- chising agents will outlaw practice of producers, directors and actors signing players under personal con- tracts. Only bona fide agents will be li- censed, and copies of all contracts between an actor and his represen- tative must be filed with and ap- proved by the SAG. Kenneth Thomson, SAG executive-secretary, said Article 19 of licensing plan would eliminate such policies. Ar- ticle reads as follows: 'No agent shall be allowed to op- erate if he, the agency or anyone interested in the agency, is an em- ployer of talent, except in such cases as the Guild shall deem a proper one for which to grant a waiver.' Work of drawing up agreement between the SAG and Artists Man- agers Guild for franchise plan has been turned over to Laurence W. Beilenson, SAG counsel, and Judge Byron C. Hanna, attorney for the AMG. When pact is completed by the attorneys, meetings of the SAG and AMG. memberships will be called to approve or amend the code of ethics. Both groups have ex- pressed satisfaction with negotia- tions and forecast that an amicable agreement wiU. be reached by first of the year. The Screen Actors Guild has ruled that interviews for publicity purpose will not count as work time under 1938 modification agreement unless a player has already worked eight hours or more on day inter- view is Requested by the producer. Members have been advised that following clause governs interviews: 'Interviews for publicity purposes held at the request of the producer shall not be counted as work-time for any purpose if held on any day on which the player is not otherwise working for the producer. Such interviews for publicity purposes held on any day on which the player is otherwise working for the pro- ducer shall not be counted as work- time if held after the player's dis- missal for' the day, unless prior to such dismissal, the player shall have worked eight hours or more, in T^hich case the time actually con- sumed in such interview shall be work-time for all pxurposes. Pub- licity interviews during lunch-time are not work-time for any purposes.' Following explanation is added to ruling: 'Naturally the Screen Actors Guild does not wish to see its mem- bers deprived of any beneficial pub- licity breaks. Publicity interviews, which may include posing for news- paper or magazine photographs, are regarded as work-time only when they are made at the request of the producer on a day when the actor has put in eight hours of hard work on the set.' Study CPI Petition National Labor Relations Board has assigned William M. Pomerance, ace field examiner, to investigate the petition of the Cinema Players, Inc., asking certification as bargain- ing representative for extras. If Pomerance finds that evidence war- rants action, Dr. Towne Nylander, regional director of the NLRB, will' order an informal hearing on the petition to determine if testimony will be taken before an NLRB ex- aminer. Total earnings of extras during November soared above the $200,000 (Continued on page 17) Con. Film Drops Recapitalization Plan; Earnings Expected to Wipe Out Bank Loan; Am. Record s 700G Selznick-RKO Again? Hollywood, Dec. 6, David O. Selznick has been conferring with George J. Schaefer on a possible releasing deal with RKO after the pro- ducer's 'Gone with Wind,' Be- lieved, however, Selznick will continue with United Artists. In New York, the Selznick- RKO talk has been oil 'n' on again several times. BATTLE STILL ON IN FATHER REORGHiN Prospect of minority stockholders of Pathe Film Corp,, obtaining a court order to prevent directors from holding a general meeting of stockholders scheduled for Dec.. 13 at which time dissolution of the cor- poration will be voted on,, seemed slim after attorneys for the plaintiff argued their case before N. Y. Su- preme Court Justice Phillip J. Mc- Cook on Monday (5) in asking for an injunction The action is being brought by 16 stocfihulders, control- ling 2,244 shares of common stock. They seek to stop the delfendants, all directors of the corporation and the corporation itself from carrying out a plan for dissolution which the di- rectors voted at a meeting on Nov. 19. The plan also calls for the turn- ing over of the corporation's assets to a new company in return for $540,000 in debentures in the new organization. The plaintiffs claim this exchange would be unfair' to them and only profitable to the de- fendants. After hearing arguments Justice McCook indicated he thought the stockholders should decide by vote whether the plan should be carried out. However, he allowed the plain- tiffs to submit additional briefs and is expected to hand down a decision in a few days. Wilmington Suit Wilmington, Del., Dec. 6. E, I. duPont de Nemours & Co. filed suit in U, S. District Court against Pathe Film Corp. asking an injunction against a liquidation plan mailed to Pathe stockholders, Nov. 22, Pdthe plan provides for distri- bution of 3,500 shares of stock in Du- Pont Film Mfg. Corp. The parent DuPont Co., only other stockholder in DuPont Film, charges the distri- bution would violate a contract with Pathe. This contract, the bill charges, has existed since the inception of Du- Pont Film in 1924 and binds both parties not to sell or dispose of their interest in DuPont Manufacturing without first giving the other the right to acquire the shares upon the same terms. Special stockholders' meeting of Pathe Film Corp. called for Dec. 13 to consider the plan. Barthelmess^ Comeback Hollywood, Dec. 6. Richard Barthelmess is returning to pictures after a four-year ab- sence. Signed for Columbia's "Plane No, 4." Metro's Big Call HoUjnvood, Dec. 6. Metro Monday (5) posted calls for 54 stars and featured players. Studio has 10 pictures in work. Consolidated Film Industries, Inc.^ has abandoned all plans of a recap- italization of the company and ex- pects to show a strong financial state- ment at the end of the fiscal year. Sales of its subsidiary American Record Corp. to Columbia Broad- casting for a reported price of $700,- 000 may be consummated before the end of the year. American Record embraces the Brunswick, Vocalion and Columbia, labels. Consolidated's hank loans have been reduced this year from $1,500,- 000 to $400,600. and this amount com- pany also expects to pay off before the year ends. Three dividends of 25c. per share each on preferred stock, of which 400,000 shares are outstanding, have been paid so far this year, and another 25c. dividend will be payable on Dec. 10. There l3 also anticipation in financial circles that with the expected Improvement in cash position of the company, present total arrearage of $6.50 per share on preferred may also be re- duced. Printing Business Company's film printing business has shown a steady Improvement throughout the year and, in addi- tion to handling printing of United Artists, Universal, Republic and-50% of RKQ pictures, contracts may shortly be closed for the printing, of four producers, among whom taiay be Walter Wanger ahd Harry Sher- man. Ralph I. Poucher, v> p. of Consolidated, is now on . Coast with Herbert J. Yates and Is handling the negotiations. Earnings of Consolidated for the first nine months this year totaled $536,205, and total for the year may hit the $7.50,000 mark, if not more. Republic Pictures, a Consolidated subsid, is expected to show a healthy profit this year. Esthnates are that Republic's gross business for this year will run around $9,000,000, com-, pared to approximately $6,000,000 the year previous. As an example, one of its current pictures, '10th Avenue Kid' (Bruce Cabot) may gross about $150,000 on a production cost of approximately. $40,000. This year, Republic wiU ob- tain a >greater share of gross business than heretofore, due to plan worked out with the franchise-holders of the company by Yates. Franchise holders previously had deals with Republic calling for re- tention of from 25-40% of gross re- ceipts in their respective territories. This year, most of them have agreed to retain a small percentage of rer turns, just enough to cover their operating and selling overhead, un- til such time as yearly returns are in and figured up, after which their split of the profits would average about 25% of business done by each, respective franchise distributor. BOBBY BREEN HEADS ST. LOUIS XMAS SHOW St. Louis, Dec. 6. Bobby Breen heads an all-star re- vue, inked for the recently formed Theatregoers, Inc., for 16 perform- ances in the opera house of the Mu- nicipal Auditorium, Unit opens with a matinee Xmas day and continues on a two-a-day basis up to and in- cluding New Year's Day. Donald Novis is also in the group. Larry Atkins, pro boxing pro- moter, is one of the incorporators of Theatregoers, Inc. Sheridan in 'Dawn' Hollywood, Dec. 6. Ann Sheridan, currently working in two pictures' at Warners, gets the femme lead in the James Cag- ney-John Garfield co-starrer, 'Eacli Dawn I Die.' Shooting starts as soon as Cagi^ey finishes 'Oklahoma Kid.'