Variety (Mar 1939)

Wednesday, Marcli 8, 1939 PICTURES VARIETY FEWER FILMS IN 20th's Studio Expansion Up at Coast Huddles; Skouras Chiefs Go East Hollywood, March 7. Sidney Kent is resting at Joseph Schenck's desert retreat prior to the 20th-Fox sales session later in the week. Also here for the product huddles are Herman Wobber and Les Whelan, director ot foreign pub- licity. Parleys with Schenck, Darryl Zanuck and William Goetz are ex- ' i>ected to last two weeks, with the program formulated for the sales meet in Chicago March 30. Studio eiipansion will also be discussed dur- ing Kent's stay. Skdaras Chiefs East' Arch Bowles, acting head of the Fsx-West Coast circuit, leads that BiU Bpi> division chiefs east to meet Charles Skouras on his return from two-month trip abroad. joining Bowles eh route will be Frank Ricketson, of Denver, Elmer Bhoden, of Kansas City, and H. J. Fitzgerald, of Milwauk' Si They will report on circuit activities and mull product buys for New season. ' -New York session may last two weeks, after which Skouras and Bowles return to the Coast MORROS' DEAL FOR FRENCH PK SET Boris Morros, former Paramount producer, has closed a joint produc- tion and distribution deal with Leon Siritzky, French picture producer, for the release of seven French pic- tures In the U. S. Morros also ar- ranged for acquisition of American remake rights on two completed and four uncompleted French produc- tions. Pictures involved in deal include liC Roi S'Amuse' (The King Amuses Himself), an Emil Natan production which has just finished a 15-week run in London; 'Quai de Brumes' ("Port of Shadows'), a Gregory Rabinovitch production; 'Hotel du Nord,' a Lucashevitsch production with Annabella and Louis Jouvet. These three, Morros considers the outstanding pictures among the 34 films he screened in Paris and Lon- don. Morros is also dickering with Metro for its rights to the James M. Cain story, 'The Postman Always Rings Twice.* Picture, was never produced here, due to ban of the Hays organization, but has been made into a French film by Smadja. If censorship angles can be cleared up, Morros will import the film for this country. Two American companies, one a producing and the other distributing, are now being formed here' and a .Marivaux theatre will be opened in New York as an outlet for pictures Morros is bringing; over.from France. Morros will Open N. Y. headquar- ters before returning to the Coast the end of the month. Office will be in charge of Samy Siritzky, who ar- rives from Europe Thursday (9). A Big, Wide Boo Hollywood, ^rch 7. 'Spook House,' a ghost comedy, is Joe E. Brown's first starrer under his recently signed contract with Columbia.' Bryan Marlow is . adapting the play from a story by Robert Flouroy. Chllnp Suit Settled Los Angeles, March 7. Suit for $76,050 over the death of Jiggs, chimpanzee, against Par- amount, was settled out of court. Jacqueline Gentry, owner of Jig'gs, claimed her chimp died of pneu- monia brought on by • work during inclement weather at early morning hours on Paramount locations. Einf eld Stays East Until WB CoDTentiofl Finale Charles Einfeld, Warner Bros. v.p. in charge of publicity-advertising, is expected to remain In New York until the end of the annual sales convention, March 16-17. He came east two weeks ago to supervise the handling of 'Yes, My Darling Daughter' wnen it came up before the State Board of Regents. BRISKIN'S COL STOCK DEAL NOW COLD Washington, March 7. Anticipated public sale of Colum- bia Pictures stock promised by Sam J. Briskin, v.-p. of Columbia, was called off last week when the studio withdrew a petition for Securities & Exchange Commission approval of registration statement covering an- other 37,500 shares of no-par com- mon and equal number of voting trust certificates. After having be- come automatically effective through failure to file another in the series of postponements, the statement was taken back Wednesday (1). Orig- inally docketed Oct. 26, 1938, with the last stopper submitted Feb. 7. Batch of paper inclHded 25,625 shares reserved for Briskin under an option allowing him to buy at $13.56 and sell at the market level. Re- maining 11,875 shares were to be !<;- sued in the event the total outstand- ing tickets were increased, since Briskin's bargain agreement allowed a further option if this state of af- fairs developed. Stock would not have been handed over, in actuality, since v.t.c.'s were to have been issued simultaneously. CONS. FILM STRESSES REPUBLIC'S BIZ GAINS Healtliy pickup in the business of Republic Pictures during the past year, when James Grainger was president and in charge of sales, was stressed by Consolidated Film In- dustries, Inc.. in its annual statement for 193B, mailed to stockholders last week. Gross income of Republic rose nearly $1,100,000, while con- tracts signed for the showing of Re- public pictures increased 28V4%, or $1,987,093. Consolidated has a heavy invest- ment in Republic. Report also showed that Consolidated is oiit of the record business as a result of the sale for $690,100 of American Record Co. holdings to Columbia Broadcast- ing System. New earnings of Consolidated totalled $616,696,. after all charges, as against net of $605,755 in 1937. Earnings for past year were equal to $1.54 per preferred share as com- pared with $1.51 in the preceding year. Company paid $1 per pre- ferred share in dividends during 1938. Consolidated earned surplus of Consolidated Film as of Dec. 31, 1938, amounted to $3,584,199. Inventor Sues UA Over Patents on Fog Effects Los Angeles, March 7. Howard H. Batt has filed suit against United Artists, charging in- fringement of his patent for produc- ing fog and smoke effects in pictures. The Federal action demands a permanent 'injunction and an ac- counting to determine damages. 1ST TO CUT SCHEDULES Some of the Other Majors May Follow — Unsettled Foreign Situation, Thea- tre Divorcement, Ten- dency Toward More Im- portation, Scare Factors in Holding Down U. S. Pro- duction ENGLAND BECKONS The likelihood is strong that the nationally-organized producing-dis- tributing companies will schedule fewer features for the 1939-40 sea- son than for this year due to un- settled foreign situation, the con- cern oyer chain divorcement, which would upset the domestic market, and the tendency toward importation of more product from the other side. Also, the American companies may turn more importantly to the pro- duction of their own pictures in England. During the past year, Metro and- Paramount have joined Warner Bros, and Twentieth-Fox in produc- ing their own films on English soil. Understood 20th will increase Us schedule in England for 39-40, spend- ing about $5,000,000 over there. Monogram discussed a plan to pro- duce a half dozen or so in London during the coming - year, but has tabled the thought for the time be- ing. W. Ray Johnston, president, is going across in the spring, at which time the matter will be further dis- cussed, he states. For this season (1938-39), the 11 nationally setup producers, including Grand National, scheduled a total of 577 pictures. GN scheduled 68, but due to difficulties it is doubtful whether this company will be able to deliver and also very uncertain what its 1939-40 plans may be. 10 Cos.' 509 Features The other 10 companies, Cplumbia, Metro, Monogram, Parainourit, RKO, Republic, 20th-Fpx, United Artists, Universal and Warner Bros, sched- uled a total of 509 features for the current season. Indications for 39-40 are that the total for these companies will run somewhere under 500 and possibly as low as 475. This decrease in the total for the big 10 is likely in spite of the fact that Monogram, which finally came. out of the red last fall, is increasing its list by 12 pictures. In addition to Warner Bros., which plans 48 for the coming season as against 52 this year, and 48 for RKO as against 54 this year, some of the other majors may cut their schedules due to conditions, which, for five of them, include the danger of losing their theatres. These companies are Paramount, Twentieth, RKO, Metro and Warner Bros. Paramount, with around 1,700 theatres, depends very importantly on its own houses and may not feel inclined to maintain the same large program of features as in the past. This company, as well as others, depends not only on its own chain but on the theatres of the others as film outlets. Par this season (38-39) scheduled 59 pictures, while 20th-Fox is deliv- ering'55 and RKO 54. Republic in- creased its program for the 38-39 semester to 59 and, as rigged, may schedule a like number for the com- ing season. Columbia went to 56 last year. This company, always late in lining up its new program, may be among those reducing. VA's Possible Reduction UA is also a question due to the fuss Sam Goldwyn is having with the company. Should he withdraw following the suit which he filed for that purpose last week, his walk would mean the loss of around six pictures which he schedules each year. The only official announcements of 39-40. programs so far made are those of Monogram and WB, with 54 and 48, respectively. WB has a (Continued on page 01) Goldwyn s Suit Vs. UA Brings Quick Reply from Silverstone; Control of Co. Appears Issue Bondholder's Suit Vs. Par Now Definitely Cold The Appellate Division of the New York supreme court Friday (3) unanimously affirmed a four-year- old decision, by Supreme Court Jus- tice Salvatore A. Cotillo, and dis- rnissed a. suit'brought by Robert S. Levy, holder of $5,000 of Paramount bonds, against Paramount Publix Corp., the Chase National Bank of N. Y., CBS, William S. Paley, 24 officers and directors of .Paramount, and eight N. Y. banks. \ Suit charged , misconduct and con- nivance between the directors, the banks and CBS and sought to re- cover damages the bondholders al- legedly suffered. PAR-RKO TIEUP OBJEQED TO BYSTIRN John S. Stover, as attorney for Ernest W. Stirn of Milwaukee, RKO Class.A stockholder, has filed addi- tional objections to the confirmation of the RKO plan pf reorganization in the N. Y. federal cpurt. Stover repeated his former , accusations that the plan had not been approved by two-thirds of the creditors, or a ma- jority of the stockholders, and charges that the plan makes no pro- vision for a normal consumption, after confirmation. Stover claims that 30 days should be the time allowed to elapse. Or, In lieu ~ of this, it is suggested that Atlas Corp. give security in the amount of $1,500,000 towards its agreement to secure an underwriter for the new b-tnds. He charges bad Tjith on the part of Atlas in failing to include this $1,500,000 in its deficit column in the annual report of the corporation, and hints that it means Atlas will never go through with its promise of im- derwriting, . He objects to Floyd B. Odium, N. Peter Rathvon, Conde Nast and Frederick Ehrman on the board of directors, because they represent the Atlas-Lehman Bros, interests, who have representation on the Para- mount board. This, he claims, is in violation of the U. S. monopoly suit against the major companies pend- ing in the N. Y. federal court now. BOB GULHAM MAY GO INTO PAR PROD. DEPT. Bob Gillham, adverti.'^ing-publicity chief of Paramount, at present Qn the Coast, may go into production in an executive capacity as yet not worked out. He is said to have long been interested in entering that branch of Par activity. Post may be assistant to Y. Frank Freeman. While west, the home office de- partment which Gillham has headed for several years is in charge of Alec Moss and Al Wilkic, former over advertising-cxploitation-press books, latter over all publicity mat- ters. . . An action for a declaratory .Judg- ment, naming the • United Artists Corporation as defendant, was com- menced last week, March 1, by Sam- . uel Goldwyn and Samuel Goldwso), • Inc. Summons and complaint wer6 served on Edward C. Raftery, secre- tary of the UA corporation, and legal counsel also. Coast producer's law suit came ° - with startling swiftness on the heels of rumors emanating from the Coast ever since stockholders of the com- ' pany held their annual meeting in January. These rumors, according ° to statements now made public, were to the' effect that Goldwyn had , sought a greater control of United °' Artists and was seeking absolute domination of its affairs. Serving of legal papers brought an immediate response from UA the following day ("). On behalf of the defendant company and four of its five owners, Mary Plckford, Douglas Fairbanks, Charles Chaplin and Alexander Korda, general man- ager Murray Silverstone stated: Sllverstone's Statement 'Mr. Golawyn has brought an ac- tion against us, asking the Court to cancel his present exclusive contract'. and to reinstate his previous non-ex- clusive contract. 'Goldwyn . bases his clajm upon.' three grounds: First, iia' -we have, breached our contract with him by ' consenting to the formation by' • Kor4a.'and Fairbanks of separate prod.ucing companiies \o facilitate production of pictures by them for release through us. Goldwyn claims that this consent, given to two of our stockholders, constitutes a breach of his contract, since such consent was given over his objection. 'The second ground is that under Korda's contract with our company, he must render his services exclu- sively to us. Goldwyn claims that Korda has become Interested la other pictures in England, with our acquiescense, and that this consti- tutes a breach of Goldwyn's con- tract. 'The third ground is the claim of Goldwyn that UA permitted Korda (Continued on page 4) Warner to Sales Meet Hollywood, March 7. J. L. Warner and Hal Wallis will attend Warners sales convention in New York March 13-14. W. E. Calloway and N. H. Brower, Coast distrib heads/also go along. Trade Mark RcfflaMred FOUNDED BY SIME SILVERMAN PobllHlieil WmkiT Iit TARIKTX. Ioc. Hia Sllvorinan, rresldant nt Weat itlh Street, Now. Tork City SUBSCRIPTION Annual 110 Forelso Ill Single Coplea 2C Centa Vol. 133 120 No. 13 INDEX Advance Production Chart, 29 Bills 55 Chatter 61 Concert 68 Dance Bands 49-50 Exploitation 8 15 Years' Ago... ..52 Film Reviews 18 Forum 63' House Reviews 26-27 Inside—Legit .56 Inside—Radio ,..; 44 International News 23 Joe'Laurie 6 Legitimate 56-59 Literati 60 Music ..49-50 New Acts 52 Night Clubs .....51-54 Obituary 62 Outdoors 63 Pictures 2-38 :iadio 39-48 Radio Reviews _ Radio—International "47 Unit Review 52 Vaudeville 61-54