Variety (Dec 1938)

Wednesday, December 28, 1938 PICTURES VARIETY 17 I LoeW'MGBonuses (Continued from page 2) financial setup, Donaldson, said that instead ot carrying the mark end the lira at fprmer levels, the company boqks set the exchange at current figures. It was also disclosed that only 1,230,000 marks are due now out of a total of 2,800,000 marks outstand- ing and due Loew in 1937, and out of 30,000,000 Ijra owed the company 17,000,000 are now due. As a result of method of amortization on pic- tures, Donaldson said after 12 weeks 42.6% was written off. The amounts increased until at the end of two yean . the entire pictures are written off. As a result of this method $579,- 000 of over-amortization resulted during the past fiscal year. Statute of Limitations Donaldson's testimony was inter- rupted by Proskauer, who called Arnold Cannon, Los Angele.«» attor- ney, to explain the difference in the statute of limitations law of New York and California. The witness saiJ that in the latter stati limitation had run out as regards any action th^ company may have taken in the Irving Thalberg estate controversy. This was given to offset plaintiffs' cliim that the company should not have settled with Norma Shearer (Thalberg) and the estate. The wit- ness also declared this was true in his opinion as regards all the de- fendants who live in California. Donaldson was again recalled to the stand, and after a -ifew more questions by Proskauer, the plaint- iffs' counsel, Ellis, cross-examined him. Ellis brought out that an addi- tional item of $997,000 lor rejected ct ntinuities had not been written off if. 1937, while about $600,000 was cancelled from the • books for the ea nc account. It was also brought out that in 1936 and 1937 the coni- pany under-amortized $1,349,000 and no reserve wai set up. Ellis again referred to Donald- son's computation of the German- Italian figures. None seemed to be clear on the matter. Accountants for both sides were to discuss it overnight and report on it anew. Both sides agreed that it would be unnecessary to call Winthrop Aid- rich, Chase National Bank head and a Loew director, or any others who have not appeared or given deposi- tions, it being agreed they would testify parallel that of Nick Schenck and other defense witnesses. Exhih Opinion (Continued from page-7) being cut out, more will have to be; but there isn't anything wrong with this business that it won't eventually itself correct. Business conditions are sick. Radi- cal changes aren't coming overnight. Let's accept the cancellations, buy with sense, meet the other fellow half way and rebuild , our dwindling revenues with a united effort. Let's not <-take off in a rowboat on a sea of useless argument, lose our oars, drift into an oblivion, and allow every ax-grinder and racketeer to take advantage of our life's work, Let's grow, up, .meet our issues man to man, and work out, from the considerations in the new program, our mutual salvation. It can be done. Nobody wins in a wax. K you haven't gotten enough in the way of concessions, a beginning is often the means to an end. Philly. Thinks It Has The Majors 'On the Run' Philadelphia, Dec. 27. Acceptance of the Trade Practices Agreement as it now stands is un- alterably opposed by a majority of Philly exhibs. General opinion is that exhibitors have won a good many concessions, but the code, in its present form, is nothing more than a good point from which to be- gin bargaining. With distribs and producers faced with divorcement 'legislation and monopoly charges on all sides, ex- hibs feel that for the first time ki 20 years they have the majors on the run and everything possible ought to be squeezed out of thent. As one exhib leader declared here, 'We're not going to give up divorcement for a few bones that .are being tossed to us.' 'The boys smell blood,' he said, 'and- know that we now have an op- portunity to obtain really major re- forms which have been needed for years. What has been obtained to date are all superficial points, not the deep-seated ones we want, A fine basis for an agreement has been reached, hut certainly not the agree- ment itself,' Only official action on the Trade Practice Code to be taken here was in line with the general opinion. Board of managers of United Motion Picture Theatre Owners at a meet- ing last week, approved the draft as a '.step forward,' but not a solution to all exhibitor problems. It asked that the draft become effective im- mediately. Conciliation and arbitration clauses in the agreement yirere highly lauded. 'UMPTO as always stood and fought for some form of arbitration and conciliation,' it was said. 'We have always advised our members to sign voluntary arbitration clauses and to ask for such clauses in con- tracts where they did not exist. This is a cure for many of the ills that beset our industry.' Allied unit here, still in process of organization, has taken no steps to approve or disapprove the draft, but execs of the organization are in agreement with UMPTO. This Indie Favors Block Booking^ as Convenience By CHARLES E. WILLIAMS (Owner, Park Theatre, Omaha) Omaha, Dec. 23.. I think your editorial analytical and to the point, clearly defining the importcmt articles in the. memo- randum set forth by distributors. I assume from a study of this editorial, that you believe 'Block Buying' is not conducive to the making of better pictures, with this I am in ac- cord, but why don't the fellows in Hollywood who know how to do things right, do them, and clean up their own back yards. They know the pictures that have a bad aroma. Some more about 'Block Buying*— about 11 years ago I appeared before a Senatorial Committee in Washing- ton opposing the Brookhart Bill. My contention at that time, and still is, that the small rural exhibitor could not stand the extra sales cost of indi- vidual picture buying. Omaha terri- tory is son>e 400 miles from east to west and lilock buying is real neces- sity if the little fellow is to survive However, cooperative buying might solve their problem. I have been an advocate of 20% cancellation for years and now that it is here, I believe it will result in a beneficial way to exhibitors. I don't believe that Kent, Rogers, Depinet, Warner, Agnew nor any other sales manager, distributor or producer will try and circumvent its just fulfillment. Arbitration: I am for it 100% plus and, in closing, a little story will illustrate. About three weeks ago a little Mexican kid was talking to me about a Buck Jones pictures that we were running, asked whether Jones and his horse were real, etc. I asked him how many there were in his family; 13 was his answer, the father and an older brother were dead and an older sister married. The mother and 12 children lived in a little home, I asked what they did. He said fight, mos^ of the time. Then I asked what his mother did. He said, 'Makes us quit.' That is arbitration. Charity 'Blues* (Continued from page 1 April week. Last would be an all; r^egro talent lineup. A ball at the Waldorf-Astoria hotel where woinen will all wear blue is also planned.' Lawrence Tibbett * and Gertrude Lawrence will probably appear at Carnegie, latter singing her 'Linie- house Blues.' George M. Cohan may be chairman. Paul Whiteman and Gershwin's 'Rhapsody in Blue' of course. L. Wolfe Gilbert, is han- dling the Hollywood end. All events will be done on- non-commercial basis with local charities being so licited to underwrite and share. Fred Astaire, McClelland Barclay, Donald Flamrh, Irving Caesar, Earl Carroll, Noel Coward, Bing Crosby, Libby Holman, Raymond . Hubbell, Leonard Liebling, Alfred J. McCos- ker, Alan Corelli, Richard Rodgers, Lorenz Hart, Isidor Witmark, Jay Witmark, Kenneth Webb, Louis Arm- strong, JIarry T. Burleigh and Fredi Washington are set as the commit- tees east and west. Par's Friml Operetta Hollywood, Dec, 27. Paramount is interested in filming Rudolph Friml's 'The Sing Song Girl,' on which the composer his been working the past five years. Self-Reg. (Continued from page 7) even if it does not constitute a total capitulation of the distributors, and, for this reason, do not want to see an impasse in the efforts made be- tween distribs and exhibs to work out some sort of trade practices machinery. Wholly confident that the early object^ions raised to the trade prac- tice program first devised will hot create insurmountable barriers and looking forward to rapid action at an early date, Rodgers states that the matter of self-regulation is one of the first things on the distributor calendar for 1939. Pa.-N. J. OK Draft Philadelphia, Dec. 27. At a meeting of the board of the United Motion Picture Theatre Own- ers of eastern Pennsylvania, southern New Jersey and Delaware, the board approved trade reform draft in principle as being a step forward but not a solution of all exhib problems. While the benefits to be derived from this draft are small, they represent certain concessions never before given. This approval contained the rec- ommendation that instead of the draj^ becoming effective for the 1939- 40 season it become effective imme- diately. PITT DAILIES END FREE AD LISTINGS Pittsburgh, Dec. 27. Three local newspapers, Post-Ga- zette, Sun-Telegraph and Press, eliminating free advertising direc tories for circuit nabe houses in ex- change for trailer plugs after first of year, have set a flat rate of $2 an inch for subsequent-run spots. That's against regular theatrical $7-$8 scale here and $l-an-insertion of half an inch for indie sites. Theatres burning plenty at Pitts burgh rags on account of action, which was first hinted at several months ago, and expect to retaliate to some degree -by keeping adver- tising budgets practically the same. Means they'll skimp a little-on space for first-run houses and use one inch in directories for two or three sub- sequents. Practice of trade exchanges be- tween theatres and newspapers here has been in vogue for several years and was generally considered an in- stitution.' Action of local newspaper publishers' association came as pretty much of a surprise and circuit man- agements have been trying to get a change of, heart from rags for several weeks now. No dice, however, and new policy goes into effect first of year. Chains affected are WB and Harris company, both of which have had agreements with all three sheets. Newspaper*' argument was that both circuits had taken several houses which had been in regular ad chan- nels for long time out of paying cate- gory and placed them in free di- rectories. Revamp of Par Exchanges Gives Joe linger Supervision Over Canada, To FOX-W.C. PLEDGES 50G FOR PARALYSIS FUND Los Angeles, Dec. 27. Minimum of $50,000 for the na- tional infantile paralysis drive was pledged by Charles P. Skouras. rep- resenting the Fox-West Coast Thea- tres and subsidiary companies in California. Circuit collected $17,000 in the 1938 campaign. U Releases Ulikado' Hollywood, Dec. 27. Universal has closed a deal for American and Far 'Eastern distri- bution of the British Technicolor film, ^The Mikado.' first picture ever made of the Gilbert and Sullivan operetta. Musical was shot in London by U's British affiliate. General Filni Distributors, Ltd. Picture will be re- leased in America early next month. Mysterious, Indeedy Hollywood, Dec. 27. 'Mark of Chu-Sheng,' first of a series of six Oriental whodunits to be produced by Clifford- Sanforth at In- ternational studio, goes to bat Jan. 13. Due" to follow are 'The Shadow of Chu-Sheng/ 'Yellow Magic,' 'The Dancing Dead,' 'Death Rides, the Dragon'- and 'Secrets of the Ancient Ones.' New Strand, Pitt Indie, Suffers 20G Blaze; Other Fires Pittsburgh, Dec. 27. Fire all but completely destroyed the indie New Strand on Southside here last Thursday (22), causing around $20,000 damage to the 500- seater. House, owned by Mrs'. Louis Michaels,, estimated its loss at $10,- 000 in . equipment and fixtures and that much again to the building. Following blaze. Fire Chief Nick Phelan ordered a thorough investiga- tion, claiming it 'looked suspicious' whien fiames rwere discovered at both ends of the theatre—in a pile of rub- bish underneath the stage and in the projeotion room. Fire took place at 9 a.m. and nobody was in the house at that time. Theatre Destroyed Wappingers Falls, N. V., Dec. 27. The Academy, owned and operated by Philip Eisenberg, was destroyed by fire that forced 20 families to flee adjoining buildings here Thursday (22). The fire, discovered shortly after the house, had been darkened for the night, soon burned out the three- story brick building and sparks fell on adjoining, apartment houses forc- ing evacuation of them. Fire Chief Edward Lowery said no estimate of the loss had been made. $20,000 Theatre Fire' Farrell, Pa., Dec. 27. Fire gutted the Colonial here, with loss estimated at between $20,000 ^nd $30,000. The Colonial, one of the two the- atres owned by Chris Lampros, was erected in 1913; It had operated un- der several managements imtll four years ago when Farrell Amus: Co. purchased both the Colonial and the Capitol. Two. years ago the interior was modernized and the seating f:a- papity increased 350. Lambro.? is un- decided on plans for replacing the house. Following the absorption of busi- ness of four sub-branches by nearest exchange points, Paramount is add- ing the whole Canadian "territory to the Joe Unger division and is reliev- ing latter, of the southern territory, for which a separate division is created under Oscar A. Morgan. Up to now Unger has been in en- tire charge of the east and south, while Canada, embracing six branches, has been under the super- vision of M. A. Milligan, general manager of Canadian operations, who headquarter- at Toronto. Milli- gan continues over Toronto, Mont- real, St. John, Calgary, Winnipeg and Vancouver branches but, in future, ir - responsible directly to Unger. This for the first time bring,s Canadian,..' sales- directly under home office supervision. The new southern division, to be established Jan. 1, embraces the At- lanta, New Orleans, Memphis, Char- lotte, Dallas and Oklahoma City branches. This division is made up - of two districts which are now headed by Morgan out ot Atlanta and Hugh Braly, who headquarters at Dallas. On promotion of Morgan to div. mgr., Harold F. Wilkes, now exchange manager at New- Orleans; will talce over the southeastern dis- trict, while Erman B. Price, who had the sub-exchange at Jacksonville, goes to New Orleans to succeed Wiikes. With Dallas absorbing the old San Antonio branch, L. W. McClintock becomes manager at Dallas, while Floyd Tomes, now in charge at Dal- las, takes over supervision of salev of the combined Dallas^San Antonia territories. Harold Stevens, formerly at Portland, now absorbed by Bos- ton, has been transferred to the In- dianapolis branch to succeed E. J. Barnard; who died recently. Following closing of the SIou;c Falls, S. D., exchange, A. R. Ander- son, who was manager there, has: been shifted to Portland, Ore,, to isuc- ceed Frank Clark, who will be given a hew assignment later. Except for the absorption of the South Dakota branch and the shift* ing of Anderson,^ the entire western division of Paramount under super- vision of Charles Reagan from the home office, remains the same. Morgan will make headquarters at the Par h.o. in command of the newly created southern division^ This will mark .the first time in Par that the h.o. will have had three divisional sales directors since the early S. R. Kent days when George W. Weeks, John Hammel and John D. Clark were division heads. Poli-N.E. Appeals From' $1,096,530 Assessment Hartford, Dec. 27. Appeal to, superior court from grand list assessments placed on its local real estate has been taken by the Poli-New England Theatres, Inc. Property has been valued at more than $1,000,000. Action is returnable Jan. 3. Appeal is from assessment valua- tions on the lists of July 1, 1936, and July 1, 1937. On each of these the corporation's real estate is valued at $1,096,530 of which $536,822 is for land and $559,708 for buildings. Forper Judge John M. Bailey is representing the corporation. Pa- pers in the action allege that the assessment valuations were 'greatly in excess of the fair market value.' Bainter's What's This? Hollywood, Dec. 27. Fay Bainter gets the top role in 'Old Mrs, Leonard and Her Machine Guns,' starting Jan, 5 at Columbia, under supervision of Fred Kphlmar, Film is based on a story by George Bradshaw and Price Day, to be screenplayed by Richard Maibavun and Gertrude Purcell, EIGHT FOB HATES Hollywood, Dec. 27. George Hayes, western comic, signed an eight-picture pact to sup- port Roy Rogers at Republic. •In addition, Hayes is slated for a role in 'Wagons Westward,' big money sagebrusher slated to roll early next month. 2 Houses Before Balto Grand Jury for Bingo Baltimore, Dec. 27. The Linden and Royal, only twa'* - houses in town using Bingo as regu- lar attractions, were before the' Grand Jury here this week. Action is outcropping of determination of Police Commissioner Robt. F. Stan* ton to put end to growing popu* larity and development of weekly j gaming under bhurch and fraternal J auspices.' Claims no particular ob* I jcction to occasional sortie for real j charity, but is opposed to gaming ? taking hold as established ahd regii' lar amusements under professional handling. Linden; 1,000-seat nabe, recently built by Milton Schwaber and up against it for film product because o£ established, opposition, has been cashing in on bingo nights, a novelty^ here. Royal is colored combo lo- cated in the local Harlem. Both houses have been repeatedly pulled • in for gaming but never reached further than district police attention. Current Grand Jury action will brin^ matter into regular courts for final determination. Upside Down Biz Hollywood. Dec. 27. Metro Is using a new upside down Technicolor camera mounting for the first time in The Wizard of OzT Mounting is slung .under the apex of the crane, giving the camera complete freedom from any angle. Device, invented by ^ohA Arnold^ head of Metro's camera department; makes possible new Techiiicolor ef- fects.