Variety (Mar 1939)

VARIETY PICTURES Wednesaaj, March 8, 1939 lATSE Putting Pressure on Distribs To Boycott Non-Union Theatres In a move wliich is interpreted in the trade as placing unprecedented pressure on producer-distributors, their studios and the theatres they control, the International Alliance of Theatrical Stage Employees is at- tempting to get distributors to can- cel all film service to certain non- union exhibitors which the lATSE, or its afliliated unions, are trying to organize. Pending conferences, first of which was held yesterday (Tuesday) after- noon, it is not known in film circles just how far the lATSE may go in its campaign to force the unioniza- tion of theatre circuits, or individual exhibs, which have refused to fall in line. For some time certain indie chains in the east, notably in the Greater New York area, have stead- fastly sUyed out of the lATSE. Through Local 306, N. Y., Moying Picture Machine'Operators, alTiliated with the lATSE, efforts have been made to oust a rival indie union. Empire Operators, from A. H. Schwartz Century and Springer- Cocalis hou.ses. Various of these theatres are still being picketed by 306. Home ofTices of producer-distribu- tors were reported to have been thrown into somewhat of a panic Monday (6) when telegrams came in which sought their cooperation toward unionization of houses and circuits which have continually re- sisted negotiations looking to em- ployment of lATSE members. Meet- ing to discuss the situation was held yesterday afternoon (Tuesday), but not known that any decisions were reached. Question which arises out of the unique lATSE move is what the lATSE or its aflilated unions, in- cluding operators and stagehands, as well as possibly lATSE men in the studios, will be asked to do in the event distributors should not re- fuse film service to non-union the- atres. The exhibitors, regardless of •whether they recognize the lATSE or not, have contracts with the dis- tributors, but these theatres, how- ever, are playing union-made film. That angle may figure In the pres- ent alarming situation. COL/S PRE-CONVENSH SALES POWWOW IN N.Y. lindy's Late' J3y BILL HALLIOAN Abe Montague, Columbia Pictures sales- head, called all his divisional sales managers into home office con- ference last Thursday ■ find Friday .(2-3) for the purpose of discussing selling problems of the '39-40 season lineup. Plan in calling men in, be- fore going into general convention, followed the same proceedure set by 20th-Fox recently, yiocessitated by unusual number of^ expensive 'A' productions planned.' Columbia this year will spend from f-.J.OOO.OOO to So.OOO.OOO over and above its ordinary budget require- incnis. in the production of "A' pic- tures. Pvcper sales handling of this t\pe oi proSucl requires a. different ?.iies appr«ieh tlian that heretofore ak\p!:ed lo a preponderant quantity ; f Bs. C>>luiDbia's British contingent was c&lkd together by Joe Friedman and Ma:: lliorpe for a three-day con- clave ia London starting Miurch '4. PAR HITS PEAK; STEAM UP 0N8 Hollywood, March:7. Paramount hits its spring produc- tion peak this month with eight new pictures due to roll and three al- ready in work. Newcomers on the schedule are *Mr. and Mrs. Bulldog Drummond,' •Million Dollar Legs,' 'North of Sing- apore,' 'Us Americans,' 'Air Raid,' •What a Life,' 'The Ster Maker' and •Happy Ending.' Currently, in work are 'Great Enemy,' 'Gracie Allen Murder Case' find 'The Magnificent Fraud.' Chapiin Pic Stali«d Hollywood, March 7. David O. Selznick's loan of Paul- ette Goddard to Paramount for "The Cat and the Canary' indicates further delay in the start of the Charles Chaplin picture, "The Dic- tators.' Announced to play opposite Chap- lin in his comedy. Miss Goddard will be kept busy on the Paramount lot until late in April. 'Dictators' was supposed to roll this month PAR, 20Ta M-G EXECS WEST ON SALES Neil F. Agnew, Par distribution chieftais, heads west with Barney Balaban to discuss product setup for the 1939-40 season, probably shoving off by the end of next week. Pending huddles on the Coast with Y. Frank Freeman, William Le Baron and others, no sales convention plans have been tentatively set up. Com- pany held regionals last year. S. R. Kent, who will be met on Coast by Herman Wobber, now in Miami, left Friday (3). A produc- tion meeting at the 20th-Fox studio is set for March. 16, t>reiiminary to the Chicago sales convcntioii of the company March 30. On the same train west with Kent, WiUiam F. Rodgers is going out also for production conferences. He will stop off at Chicago on the return trip to conduct the Metro sales meet- ing there March 10. PAR'S UFE' CREATES SWITCHES IN PLAY U's Cfommersh Pix Hollywood, March 7. Universal is making commercial films, with two three-reelers already completed for the Denver & Rio Grande R.R.. while another for Sea- board Airline is slated to roll this week. tTnderstandjng is that films will be shown only at business gatherings and not used in regular theatre bills. Production of the film version of 'What a Life' by Paramount is neces- sitating various adjustments to two Broadway legit , shows and to the Kate Smith radio program. Clifford Goldsmith, author of the play, went to the Coast last week .to work on the screen adaptation on a one-pic- ture deal. Betty Field, who created the part of the schoolgirl heroine in the play currently at thf Mansfield, N. Y., and who subsequently withdrew to go into George Abbotts' other produC' tion, .'Primrose Path,' at the Bilt more,'N. Y., leaves the latter play this week to repeat her 'Life' role in the Paramount film. She is being replaced in Trimrose' by Mary Mason. Vaughn Glazer likewise leaves 'Life' this week to do his high school principal charactei'lza- tion in the picture, being replaced by Fleming Ward, of the same cast. Latter's sub has not been selected. James Corner, originally in the Goldsmith play but who since left the cast, will also be in the film. Swansdown radio program has re newed its option on the 'Henry AU- drich' series for another 13 weeks beginning in April, picking up Ezra Stone's ticket for the title part, Betty Field's part will be written out, at least during her stay on the Coast Cooper's 'Sew Contract Hollywood, March 7. . Samuel Goldwyn handed Gary Cooper another term contract Coopeir'i» next Goldwyn picture is The Real Gloi^,' an outdoor yarn about the conquest of the Phillp- Bnrns' 3 R's Hollywood, March 7, Jack Yellen is scripting the. 'Amer- ican School Teacher' as a Bob Burns starrer at RKO. Studio is also readying 'Salute to Hate' for Cliff Reid production. They sat around the table punch- ing the bag and tirinking coffee... Two Tin Pan Alley alimony-payers and a kibitzer. It was 3:30 in the morning, and a waiter stood off at a disinncc and eyed them with evident distaste. He wished they would go homo. His feet hurt him. 'Bi-ing me another cup of Java,' said one of the trio. 'I ought to be home in bed,' ho concluded aimlessly. 'You're telling me,' thought the waiter as he nvoved away. •The . trouble with, the ASCAP.' the kibitzer cut in, 'is that it is full of polities.* 'Maybe you're right at that," said one of the writers. •I wrote three hot tunes last year, and what did it get me?.Magnolia, they ain't no dough in sheet music any more, and the mechanicals pay ollt in the dark.' He borrowed a cigaret from the other writer. 'Last year I gave away $2(j0 worth of cigars to swing band leaders for xinas. One of them tried to shove one b.tck at me this afternoon.' 'Them muggs are riding the crest of the wave,' said the other writer. He was a tired-looking thin man with a bass voice. When tie spoke, you looked at him twice to be sure where the sound was coming from. The waiter put the coffee on the table and added 10c for the check. 'Ten grand is a lot of cabbage for a swing band, even, if they don't get it. ..But I know a certain party who saw the contract.' The waiter looked at him without interest 'Who gets that kind of n^oney,' he inquired listlessly. 'That clarinet player from south of the Smith & Weston line,' said the songwriter, naming the' swing king, That's a lot of dime tips, ain't it?' kidded the kibitzer. 'I just got one from the lad you are talking about,' said the waiter. 'He's sitting back there in a booth with a gal. I think she sings with his band, because I heard them talk- ing about a number she wanted to do. He said it was' dated. ' What's that mean?' 'It's old timey,' said the lad with the bass voice. . 'Well, he promised to let her sing it, anyway,' said the waiter. 'He said he would hop it up.' 'What's the name of the song,' the coffee drinker asked. The waiter told him the name of a number that had been famous from coast to coast 25 years ago. 'Gee, that was a smash hit,' said the kibitzer. The waiter moved silently away. 'I wish I had never written it,' he thought, as he went into the kitchen. Meet Bulldog's Missus _ Hoilywood,.cM8rfih_3... 'Mr. and Mrs. Bulldog Drummond,' currently at work at Paramount, is the eighth and last of the series to be made on the home lot. Plan is to shift production to the Par studios in England, with an all- British cast working with co-opera- tion of Scotland Yard. Stndio Contracts Goldtvyn^s Suit Vs. XJA (Continued from page 3) Hollywoodi March 7. Twentieth-Fox signed James Ed- ward Grant, writer. RKO extended Leo McCarey's pro- ducer-director deal for two years. Robert Thoeren inked writer pact at Metro. Warners handed player contract to Julie Stevens. Universal, renewed William Lun- dagan's player ticket. Metro hoisted Sam Moore's scrlp- ter option. Warners handed Harold McCord new pact' as head of studio editing department Eddie Moran inked Writer deal at 20th-Fox. Metro renewed Noel Langiey's scriptcr ticket. .Max Stciner signed another com- poser pact at Warners. Warners hoisted Stanley Fields' option. David Niven handed nev/ contract by Samuel Goldwyn. RKO picked up Jane Woodworth's player option. 20th-Fox renewed Darrell .Ware's writer pact for one year. Edward Small filed minor's con- tract with Diana Lewis. Universal asked court permission to lift options on Harris Berger, Hally Chester, Charles Duncan and David Gorcey, minors. to dispose of certain of' his pictures in war-stricken Spain directly, in- stead of lhrou.<;h our company, ■'There is.no foundation whatso- ever in any of Goldwyn's coriten- tions. "At the last meeting of our stock- holders, he demanded a voting trust of which he or his designee would be the sole trustee, thereby giving him control of the company. The other stockholders of the company considered this demand ridiculous and unanimously turned down Gold- wyn's proposal. 'The stockholders thereupon . of-. fere'd to cancel Goldwyn's contract and to release him from all further obligations thereunder, if he would turn back to the company his stock interest therein for which he had made no monetary payment. This proposal Goldwyn t irned down. 'In the opinion of the company the suit has no merit wha'tsoever and will be vigorously resisted. The suit will not have the slightest effect on the company , or its operations, or on the impojrtant progi-am of pic- tures which it is now releasing, and ^yill release In' the coming 1939-40 s- .ison. 'The company will adhere to its established, policy of keeping its doors ;Wide open to all producers of merit'whose pictures will be given the same effort and-opportunity as given to its present producers. Such pictures will be distributed on the merit plan of distribution now in effect' Goldwyn's Side . Goldwyn's dispute centers on the following principal allegations, as listed in his formal complaint served on the company: 1. Opposes right of the com- pany's stockholders and the board of directors, who voted 4 to 1 against Goldwyn to authorize and permit Alexander Korda and the liondoh Film Productions, Ltd., to become associated with others in a new English corporation known as Omnia Films, Ltd., now pur- portedly engaged in distributing pictures, in which Korda is said to be interested in certain foreign territories. 2. Opposes right of UA. to au- thorize and permit Korda and Lon- don Film Prods., Ltd.* to become associated with others in an Eng- lish corporation known as Hare- field Prods., Ltd., now said to be producing and distributing pictures which have not and will not be delivered to UA. 3. Opposes right of the UA Corp. to enter into an agreement to dis- tribute pictures to be made by Douglas Fairbanks through a new —corporation, Fairbanks Interna- tional Pictures. 4. Opposes adoption and ratifi- cation by the UA board of direc- tors of the so-called Silverstone plan of refunds to UA producers, only insofar as 'outside' activities of Fairbanks and Korda disqualify- them from benefits of the plan. 5. Opposes rnodification of the- 'favored-nation' clause in contracts of the UA partners, which would permit special distribution terms on pictures UA producers would make, but not intended for distri- bution in this country. Says Contract Breached By reason of these acts, Goldwyn feels United Artists has breached his contract and has permitted Fair- banks and Korda to breach their contracts with the company. He asks the courts (New York County) to establish his rights under his original and modified contracts with UA; seeks further relief, whether declaratory, injunctive, co- ercive or consequential; right to terminate his agreement of 1936 (10- year agreement to exclusively de- liver pictures until Sept. 2, 1945); and previous rights and privileges under his 1925 and 1927 contracts be con- tinued in full force and effect, except as modified by the July,. 1936, agree- ment on 1*ie production of pictures only for UA. Goldwyn spokesmen emphatically deny that the producer is - out to dominate the company. Instead, he wants to eliminate an unfair and un- balanced .partnership situation in UA whereby some of the inactive partners have failed to consistently deliver product. He Is also said to have shown no desire for control of UA when he suggested the formation, of a Voting Trust setup of three trustees, having offered to withdraw as a director and trustee, in favor of leaving de- ciding vote to'a third trustee, not of his exclusive choosing. He may be hitting - at the ac- tion of Douglas Fairbanks in form- ing the Fairbanks International Pic- tures Co. recently, with reported financing being- done by Sir' Adrfan Baillie, British capitalist, unknown Swiss copitalists and possibly John Hay Whitney and David Sclznick. Reports from the Coast are that Goldwyn feels that Fairbanks, Pickr ford and Chaplin have been too in- active in the' productibii of pictures for UA release- arid- Goldwyn is therefore entitled to a greater meas- ure of control of the corporation's policies. Fairbanks is reported hav- - ing coinmented on Goldwyn's actioh, stating he was sorry to learn Gold- wyn was suing to cancel his distri- buVjon contract and thut the real trouble seems to he that Goldwyn 'apparently wants to run the entire business.' As to Goldwyn's complaint again.st Korda, the latter has often publicly stated that he had not formed any outside producing coiripanies (other than London Films) and ..would not . produce or distribute pictures for, or through, any other medium than UA, as prohibited by his contract as a UA partner. Partners' Stock Holdinga The five UA partners each hold • 4,000 shares of cofnmoh. This is a new stock issue, as differentiated from the original blocks of preferred and common issued when the corpo- ration was formed. More stock was distributed in 182St2G. Goldwyn In 1926 held 1,000 shares of preferred, for which he paid $100,- ' 000. This preferred was later re- . deemed and repaid by the company. Goldwyn also had another block of 1,000 shares of common, awarded ' him for completion and delivery of pictures his contract called for. - - His represerilaives emphatically deny that any offer wds made by the corporation to Goldwyn at the Jan- uary stockholders' meeting to turn his present stock back to the com- pany if he was dissatisfied With the conduct of its affairs. As to allegations that the stock he holds did not cost him anything, spokesmen say this is -incorrect. The common stock unit, said to represent a $2,600,000 value each, was ° not tendered the partners as a bonus, but rather as a just return on their in- vestments and - contributions. Goldwyn offices here are not fully informed as to Goldwyn's intentions to deliver balance of three pictures for remainder of this season. They doubt if Goldwyn has committed himself one way or the other in this regard, but feel certain that 'Wuth- ering Heights' will be delivered. 'Oe- cision on the other two will no doubt be decided by outcome of Goldwyn's suit. - — -, As to the Harefield Prods., Ltd., it is understood that this company was formed to produce Columbia Pic- tures British quota pictures at Den- ham Studios by Korda's associate, Irving Asher. Columbia executives are in the dark as to who controls Harefield. Omnia Films, Ltd., is a continental distributing company. According to Goldwyn's complaint, London Film Prods., Ltd., has a financial interest in Omnia, contrary to Korda's con- tract with UA, which does not permit Korda to have any distributing or producing interests outside of UA. Silverstone Also ConciUatory Close study of Silverstone's an- swer to Goldwyn conveys the im- pression that while it. is a vigorous defense of the company's, procedure to date, and of its rights, the intent is in reality conciliatory and de- signed to pacify internal conflict that militates against its policy of keep- ing doors wide open to all producers of merit. S.ilverstone's attempt to mollify Goldwyn seems to have had the other affect, however, according to . informants in United Artist To the contrary, Goldwyn is reported 'biirned up' at SUverstone's revela- tions of what went on at the Janu- ary stockholders' meetings. All attempts to elicit a statement from responsible Goldwyn' officials, or from his counsel, as to how Gold- wyn views UA's answer, have met with failure. Matter is passed right back to Goldwyn, as far as any dis-' cussion of the suit-is concerned. No official answer to Goldwyn's suit has been filed by U.A. to date. Routine board meeting was held yesterday (Tuesday), Silverstone, who is scheduled to sail Friday (10) for England, will very likely postpone his departure indefinitely. /