Variety (Apr 1939)

^ednesJaf, April S, 1939 PICTURES VARIETY 3 2D TRADE PRAOICE DRAIT PR SHOULD ADOPT CODEIj [J{|||g By Jolm C Flinn (Formerlv Executive Seeretary of the NRA Motion Picftire Code Authority) ^Ith release for. publication this week of the revised Trade Priactlce Code, copies of which are In the hands of all distributors and officers of exhibitor organizations that participated In the preilminary conferences, the film industry has demonstrtited its abiUty. to work out harmoniously a plan to solve its most difficult problem. That problem is to provide fair and just arbitration machinery for. set- tling trade disputes and controversies arising between distributor sellers and exhibitor buyers. In finding a satisfactory solution the industry auto- matically removes a most serious internal deterrent to progress. . Practical dandling of questions involving trade relations will replace delayed, legal- istic procedure. Exhibition will be stabilized. Theatre operators, will feel encouraged to solidify their holdings and improve exhibition structure. Eope of progress will dispel current uncertainties. Close study of the revised draft governing trade practices and the arbi- tration setup (which is made a part of the instrument) results in the con- viction that an excellent job has been done by the respective distributor and exhibitor negotiating .committees. There remain some minor additions to\be worked out and clarified, but on the whole the draft marlcs a long and firm step forward in trade relations. . By working from within, co-ordinating and ceihenting trade Interests, which for years have held diverse and conflicting views on the conduct of film affairs, the proponents of the plan have succeeeded In creating an Instrument which. If not entirely perfect in everjr respect, is by far the fairest and most Intelligently devised that has been offered since the term- ination of the NBA fair-practice code. In the four years which have elapsed since the NRA blue eagle'flew out the window, the film Industry has been afflicted with numerous anti-trust (ults, legislative attaclcs and threats, and civil actions^ In the absence of any trade machinery to dispose of the simplest kinds of complaints and differences, the trade has followed the course of least resistance. Con- gressmen and the Department of Justice have t>een besieged with squawks and hollers that never should have gotten outside a branch manager's office. Blajor companies have been unwilling to sit down and discuss with exhibitors mutual problems in the face of anti-trust laws and tha admin- istration's policy towards monopolistic industries. There never has been greater heed for some Industry agency to handle dlq)utes in an understanding, prompt and fair manner. The very nature of the film business in the daily transactions between exchanges and theatres brings to the surface for constant adjustment new questions in- volving fundamental principles of operation. During the 16 months of NBA. supervision there w^re 2,431 individual complaints filed and examined before local adjustment boards, of which 536 cases subsequently were passed upon by the review board Such figures show the need for a trade practice .setup. Fer the film industry to delay adoption of the new code on the theory that the Department of Justice might disagree with the program is to Invite rather tlian evade further Government interference. With a code In operation, with fair and speedy administration and with overwhelming, support from within the industry, the business is equipped to ask for and Win public support In Its favor, IdMklng sound intra-lndustry relations, the Industry continues to b« the easy mark for reformers, self-seekers, and weU-intentioned'but uninformed ■elf-appolnted administrators. Jeb of converting entertainment into boxoffice - cash Is the work, of trained showmen. In many respects the rules of general business do not apply in the show, world. Therefore It is important the trade should handle its' own problems in its own way. But they must be handled skil- fully and honestly. In a time of world economic uncertainty, at a moment when the film industry, an American Institution, may be required to use the full force of Its propaganda power in the interests of this country's position in inter- national affairs—in such a time a strong, virile Industry must be estal>- Ilshed and maintained. First step to a greater responsibility Is the proof of ability to self-admin- ister the industry problems. The course is clear. The Trade Practice Code should be made effective as soon as possible. Par Execs on Coast WiH Set 193940 Fix Lineap, Sales Phns Uneup for 1939-40 for Paramount, on which no advance plans are tenta- tively Bet, and decision on a sales convention, wHl figure in discussions ■t the Coast studio in which Barney Balaban^ Stanton L. Griflis, Neil Agnew and Bob Gillham, all. of Jjhom leave tomorrow (Thurs.) or Friday for th.. wpct will flgnrg Balaban-Griflis-Agnew trio will So by train, while Gillham flies from New York to Kansas City for stop- over to confer with Cliff Lewis, from w»9 studio, who is there on 'Union Pacific* campaign plans. Par may hold a national sales con- vention in New York, thus affording its sales forces a chance to see the World's Fair. It wUl probably be the end of May or early June. 6 OF LASm RADIO HROS SIGNED BY RKO Hollywood, April 4. Six novices rounded up by Jesse U Lasky via his 'Gateway to Holly- wood' radio contest, have been signed by BKO-Radio Pictures, Finalists in the contest, Ralph Bow- man and Roweha Cook, are cast in leads of company's forthcoming film, 'Career,' and have been renamed "Jolin Archei" and Alice Eden, per original stipulation. Impetus given Ulent scouting by the Lasky air show has resulted in a feverish search for new faces after a long economy spell during which tests' were' eliminated and attempts to secure iiew. players were at a standstilL Studio now has made an appropriation for talent scouts to dragnet the country. Dept. of Justice Also Gets Copy for Official Ap- proval— Contains More Detailed Proposals Than in First Draft—Some Ad- ditions RETROACTIVE TO JAN. 1 A revised trade practices agree- ment, emlx>dying a basis for arbi-. tration, was completed during the past week and Is in the hands of nine exhibitor organizations for their consideration. The proposals of major distributors, excepting United Artists, .contain several im- portant additional provisions than were in the first draft The procedure of the nine, exhib bodies will be to turn over copies of the trade practices pact to members of their boards, with supplemental consideration by exhibitors who are hooked up with the various organ- izations. 9 Exhlb Groops Get Draft The first draft was sent.to 10 or- ganizations, whereas the revamped proposals were sent to nine. These include^ as before'the Motion Pic- ture Theatre Owners of America and Allied States Assn., national bodies; and MPTO ofOCentucky, MPTO of 'Virginia, ITO of Southern California and Arizona, ITOA, New York; The- atre Owners Sc Mgrs. of Roclcy Mountain Region and Allied Inde- pendent Theatre Owners of Iowa & Nebraska. While the first draft'was sent to the West 'Virginia Mgrs. Assn. and the Allied "Rieatres of Oregon, these organizations were not included in the new list of nine. A local exhib organization not getting the first but on the list for the sec- ond draft la the Intermountabt The-' atres Assn. of Utah. No explanation is made for the switches. A letter from WilUam F. Rodgers for the distributor committee accom- panied printed copies of the trade (Continued on page 10) COURT FINALLY OK'SRKOREORG Federal Judge William Bondy on Monday (3) confirmed the BKO plan of reorganization and approved the board of directors. ' The court tossed out the argument submitted by Florence J. Sullivan, attorney for James Young, who was suing for $14,500 legal fees, on the settlement of Young's claim against RKO. She claimed violation of Amendment 5 of the constitution in that the plan deprived her of rights because it made no provision for her. Judge -Bondy's approval brings the. RKO case nearer to final con- clusion, but attorneys familiar with the reorganization predict a long wait before actual consummation. It is believed that Governmental in- vestigations may take place on the charge of violation of anti-trust laws by having representatives of Alias on both the RKO and Paramount boards. UA Conv., L A., May 8-10 United Artists sales convention will be held in Los Angeles May 8-10 at the Ambassador hotel. Every home office and sales executive as well as all producers and partners will attend. » Mary Pickford will act as host to delegates on their arrival in LA. on May 7. UA Atty. Chides Goldwyns 'Sulking'; Co. Emphasizes He's Tied Up Til '45 '^H'wood Diplomacy Hollywood, April 4. Replacement of George Seitz by W. S., Van Dyke as director Of 'Andy Hardy Gets Spring Fever* is explained by Metro insiders as a matter of diplomacy. Seitz has been higlily successful with the Hardy series, but Van Dyke is a smoother diplomat. It appears one of the cast has grown so big that he has to be handled with Icid gloves. 'WUTHERING'IN MIDDLE OFMH RIVOUROW Switch In the New York'premiere of Samuel Goldwyn's production, 'Wuthering Heights,' from Radio City Music Hall to the RivoU has raised a bit of a row. According to UA sales department and James A. Mulvey, Goldwyn's eastern repre- sentative, they had to pull the pic- ture away from the Hall because it could not play on one of two prom- ised dates, either April 13 or 20. Pic- ture now opens at the Rlvoll April 14. UA claims the Hall was willing to play the picture on April 27 or May 4, which Goldwyn was unwilling to do, inasmuch as its. advance selling campaign'had been predicated on the 13th or 20th date. Music Hall management so far re- fuses to comment on reports it would sue Goldwyn to enjoin pic- ture from playing at the Rlvoll, or that 'Wuthering Heights' was post- poned because it had agreed to give playing time assigned to it to War- nera" ^ark 'Victory,' on the assump- ,tlon Goldwyn would deliver it later on when wanted. 'Wuthering' may be the last pic- ture Goldwyn will deliver to UA. While distributors have sold this production along, with the two re- maining pictures .Goldwyn has In work at the present time, the Helfetz picture, 'Angels Making Music,' and a Gary Cooper production. The Real Glory,' the last two were sold to ex- hibitors on and as and if delivered basis. According' to James Roosevelt Goldwyn v.p. who sails for England Friday (7), all signs point to a com- plete break between UA and Gold- wyn, and the latter is casting about for other possible' distribution ar- rangements for next year. He also stated that up to the time he left the Coast, no offers had been made by any UA partners to buy out Gold- wyn's stock interests in UA. Roosevelt also revealed that United Artists is not a party to the new standard trade practice agree- ment because UA I>oard of directors had voted against joining the pact. Seems it proved virtually impossible to reconcile all UA producers on a concerted stand. United Artists intends to resist any moves by Samuel Goldwyn not to live up to obligations of his produc- ing-distrlbuting contract which has' until Sept 2, 1945, to run. In a statement issued on Monday (3), Charles C. Schwartz, counsel for UA,. answered in no uncertain terms re- ports from Goldwyn spokesmen.that 'Goldwyn would not'tte left at the post' and that he was paving the way for new releasing deals it and when he parts company with UA. 'Since the failure of Goldwyn's at- tempt to secure voting control by having himself designated as sole voting trustee under a voting trust demanded by him,' said Schwartz, 'he has been sulking. He reminds us of a schoolboy who . has . been chastised and who avenges'himself by making faces. 'Goldwyn and his company en- tered in a contract with United- Artists for exclusive distribution of all his pictures, which contract does not expire until Sept . 2, 1945. Iliis company has lived up to the spirit and letter of this contract and ex- pects Mr. Goldwyn to do likewise for the full balance of Its term. Any attempt on his part to arrange for distribution of his future pictures, in violation of his contract will be most seriously and vigorously resisted.' Trade Practice Agreement Murray Silverstone on Monday (3) also attempted to clear up mis- interpretation of United Artists' posi- tion on the trade practice Agreement just worked out He stated that dis- tributors understood all along that United Artists, because of the nature of its organization, with 11 individual producers now in the setup, each dictating Its own selling policies and trade prac^ces,' made It Impossible for UA, as an entity, to become a' party to any broad general agree- ment 'With exhibitors. "The company Is highly individ- ualistic,' he said, 'and the trade un- derstands our position.'. Neverthe- less, many of the points covered in the proposed trade pact actually have been in operation since Inception ot the company and today are still part of the producers 'sales policy.' Company's Fntnre Silverstone spoke of the strong position United Artist has achieved to date, mentioning the alignment ot (Continued on page 10) Boxall as Eorda'g G.M. London, April 4. Alexander Korda has siTned Har- old Boxall to assume general man- agership of Korda Productions, Ltd'. Deal was concluded by arrangement I with MGM British studios, for whom : Boxall had been acting in similar', caoaclty. I Boxall's new alignment tops 20 years-of-fllm-induslry expurlunue.— Lugosi's British Pic Bela Lugosi, dui in London, this week for a vacation, is set to appear in 'Dark Eyes ot London,' British production. Lugosi will do ' 'The Shadow Creeps' when he returns from Eu- rope, with Universal releasing Tr*d* Mark Refl«tar*4 FOUNDED BT SIMB SII.VBHMAN PDblifilMd WmUt bf TABIETV, tat. Bid (lllvarnian, PrasldenI 164 Weat 46tb Streat. Naw Tork CItr SUBSCRIPTION Annual lit ForalgD.. .. Ill SIngIa Coplaa it Canir VoL 134 IM No. 4 INDEX Bills 46-47 Burlesque 42 Chatter 53 Dance Bands^,. 38-10 15 Years Ago 43 Film Booking Chart 17 Film Reviews 15 Film Showmanship 8 Forum 55 House Reviews 44-15 Inside—Legit 48 Inside—Music 40 Inside—Orchestras 40 International News 13 Legitimate 48-'>] Literati 52 Music . ............... ••38-40 "New "A'cts.'."'. .'....".. ' '45 Night Clubs , 41-43 Obituary 54 Outdoors 55 Pictures 2-22 Radio •23-37- Radio Reviews •..°. 26 Radio—International ..... 37 Unit Review 45 VaudeviUe 41-43