Variety (Jun 1939)

4 VARIETY PICTURES Wiednesday, June 7, 1939 NEELY BILL'S NEW LEASE OF UFE; WILL PROBABLY PASS SENATE, BUT NOT HOUSE Senator Neely Blasts Committee and Wins Some Action—Few Modifications But Reemphasizes 'Big 8' Control, Wall St Dominance, Etc. WARNERS' PEEVE Against WOB Spieler's Pan en Gen- eral Film Industry Washington, June 6. Life was revived in the Neely bill last week when the Senate Inter- state . Commerce Committee, with several members reserving the right to vote against the reform measure on the floor, voted a favorable re- port and allowed it to go on the calendar. Present outlooli is for passage through the. senate this ses- sion, but no chance is seen of house action before adjourmnent Following Senator Matthew M. Neely's verbal blasts, the subcom- mittee Wednesday (31) hastily agreed to pass the buck to the full comroitee which, after a Uvely wrangle, voted 15 to 3 to put the measure on the legislative menu. Opponents reported to ■ be Senator Ellison D. Smith of South Carolina, the subcommittee chairman, Wallace E. White, Jr., of Maine, and Chan- dler Gumey of South Dakota. Attempt to amend the measure when it is taken up for debate was promised in the formal report, made available Saturday (3), although the committee sidestepped suggestions for changes which will make the bill more workable. Several mem- bers felt revision is Imperative but no amendments were agreed upon. When the measure may be taken up was problematical, especially since Democratic Leader Alben W. Barkley is hostile. Relations be- tween Barkley and Neely are strained, so that the administration boss is hardly likely to make room op his schedule for the film bill until pressure Is exerted. Tactics which Neely employed in forcing committee action—roasting Barkley and the subcommittee in an ironical and sarcastic speech—probably will be used again, however, to prevent pigeonholing. In his lengthy report, Neely re- ferred frequent]^ to the Justice De- partment's anti-trust suit against the niajor producers and affiliated ex- hibitors, livening his usual harangue about the vicious habits of the 'Big Eight' by noting that legislation ia necessary to supplement the court attack. Even if successful, the suit will not accomplish all the reform groups wish, the West Virginian said. Most of the report was devoted to the familiar wails of the wO' men's organizations, religious bodies, and educators but a few new touch' es were given the argument why Congress should legislate traditional leasing methods out of existence. The attack on the 'Big Eight' was bolstered by references to diliatory tactics used in fighting the Justice Department suit, big salaries and Wall Street control. Only a Story 'Ontllne' Revision of the portion of the bill relating to blind selling (Section 4) was suggested by Neely, who an' nounced he will offer' amendments proposed by Abram F. Myers, chaiT' man of the Allied States Association directoics, in order to meet the chief complaints of major studio officials. "The effect of these would be to re. quire 'a general outline of the story' rather than a 'complete and true synopsis' before rental agreements are made. Neely said the bill can be. made 'more liberal to the pro ducers' without weakening th« en^ tire measure. Reciting the various groups on record in favor of the reform, Neely offered new arguments why Con- gress should exercise more stringent control over operations of the film business. Among his reasons was the alleged influence of 'leading financial groups.' He pointed out the sub-committee had examined the volume, 'Film and School,' which contains charts showing the extent of banker domination. In these dia- gram:! he commented 'the towering pillars from which the converging lines emanate are labeled 'Morgan' and 'Rockefeller'.' The 'community selection' idea naturally pervaded the report Neely remarked that 'there is no local power of election of programs except In the 2,500 theatres that the OBig Eight themselves operate, and then only by the grace of the New "York-Hollywood combine.' Only remedy which will 'restore freedom of action to the thousands of com- munities now entangled in this far- flung financial network' is Federal le^latlon, he declared. Rocks were thrown at the Motion Picture Producers & Distributors of America, Inc., with Neely discussing sourly the propaganda machine'set up by the Hays organization, the proposed self-regulation code, and the trade association's ovtn censor- ship efforts. Action on the legislation should not be postponed because of either the Government suit or the negotia- tions for a trade practice agreement, the senate was told. Even if both these maneuvers succeed,. the public still needs protection. 'After having failed to make, good on promises of voluntary reform undertaken while similar legislation was under consideration in 1936, the Big Eight on the eve of the hearing on this bill brought forth a proposed voluntary trade-practice code as a substitute for the bill,' Neely ob' served, • 'The producers' proposals do not abolish compulsory block booking or blind selling, but, on - the con trary, they propose to perpetuate those practices. Certain of the prO' posals woiild slightly diminish the hardships of compulsory block book- ing but Uiey 'would effect no change in blind selling.' New Fears Objections to the agreement ideas included the indie exhibitors' fears that the cancellation privilege would be nullified by padding, the right to reject a fihn after it is booked is 'a poor substitute for the power of selection at the time the exhibitor heases bis films,' the opportunity to obtain outstanding pictures is limited so that 'this privilege can be ex- ercised only once, and as against only one distributor during the yearly contract period.' Concerning Uie anti-trlist case, Neely said the primary objective is the severing of exhibition from production and distribution, not giv- ing wider freedom of choice. NoUng the complaint was' docketed more than 10 months ago and issues have not been set, he said, 'the effective proscription of compulsory block booking and blind selling calls for complicated affiripative as well as negative provisions which would be more appropriate for legislation than for a decree.' All the producers protests and contentions were shoved aside, Neely made no reference to con. tentions that volume of. production would be curtailed, expense in creased, and jobs reduced, but said the argument about improvement in quality 'is irrelevant since the pub' lie is entitled to choose even as be tween good pictures.' Industry re. form was brought about only by pressure 'and there is no assurance that even present imperfect stand ards will be maintained if -this legis lation is not passed,' he added. Warner Bros, took personal of- fense last week at a remark made about the picture Industry by Ed Fitzgerald, who' is doing a N. Y. World's Fair reporter routine over WOB, Newark. Fitzgerald com- mented that 'it was a shame that a mighty American industry such as motion pictures elected to pass up participation in the exjposition.'. The squawk was made to Fair officials. Fitzgerald retorted that he couldn't understand why Warners com- plained. He didn't blame anybody particular. His remarks, Fitz- gerald said, were directed at the whole film industry, and that if there was to be an answer or an apology for the neglect it ought to come from Uie Hays office. RKO EXPECTS 25&-3(IOFOR ITSCONV. RKO Is bringing in all its film salesmen from 3S branches in the U. S. and Canada for its sales con- vention to be held at Rye, N. Y., June 19-22. Figuring the home of- fice crew and 12 sales representatives from foreign countries, the attend ance will run between 250 and 300. All field district managers and branch managers will attend the meet Skipping a convention last year for the first time, this year RKO picked New York and is bringing in all the salesmen so that they will have an opportunity to visit the Fair at the same time. DR. OF LETTERS DEGREE FOR RAYMOND MASSEY Easton, Pa., June 6. Raymond Massey, star of. 'Abe Lincoln in' Illinois,' will receive an unusual honor on Friday (9),'when the degree of Doctor of Letters \yill be conferred upon him by Lafayette College at the 104th annual com mencement exercises. Massey will be the first stage ce'lebrity thus honored by Lafayette. He is being awarded the degree by the board of trustees for his fine portrayal of Lincoln and his re awakening the public to Lincoln' ideals. Among others to receive an hon. orary degree will be Dr. William Lyon Phelps, of Yale, who also has played no small part in the Amerl can theatre . Talbot Jrennlngs, Toe Moscow, Idaho, June 8. Talbot Jennings, class of 1934, was given an honorary degree at Unl varsity of Idaho here. He is Metro writer. , HELUNGER UPPED TO AN T PRODUCER Hollywood, June 6. Mark Helllnger has completed his apprenticeship as a Warners pro- ducer In Bryan Foy's 'B' unit, and is upped to Hal Wallls' staff to tackle heavy-budgeted films. Fl-st is a re- make of 'One Way Passage,' which James Hilton Is scripting for Bette Davis. Follows with Tombstone,' sequel to 'Dodge City,' and .carrying budget of over $1,000,000. Here We Are Again Hollywood, June d. Walter Damrosch made his film de- but at Paramount, conducting a 65 piece orchestra for the Bing Crosby, picture, 'The Star Maker.' More than half the musicians In the scene had worked for him at va- rious times. U. S. HINTS AT BIG FILM TAX EVASIONS Porter-Fields-De Sylva Mosical for Wheeler, Joan Crawford's Legit Bert Wheeler is among the first Hollywoodians committed to Broad- way productions next season. He will appear in an untitled musical being written by Cole Porter, Her bert Fields and Buddy De Sylva, latter to make the presentation. Others from the Coast mentioned for the show are Bert Xjahr and Kenny Baker, along with Mary Mar. tin, currently in HiOave It To Me.' ■'Wheeler is currently playing vaud' film dates, havinig opened in Pitts- burgh at the Stanley Friday (2). Crawford's Leeit Hollywood, June 6. Joan Crawford is mulling two Broadway (Slays, a musical by Cole Porter, Moss Hart and George S. Kaufman, and a straight drama by Frederick Lonsdale. Metro star's contract calls for an optional furlough from Oct 1 to do a stage play. Hershoh Relief Prexy Hollywood, June 6. Jean Hersholt continues as presi- dent of Motion Picture Relief Fund for another year, with. Ralph Block remaining aa first v.p., Joseph M. Schenck, 3rd v.p. and Jack L, War ner, teeasurer. Only changes on official slate are Bette Davis as second, and Walter Wanger as fourth v.p. They were nominated to succeed King 'Vidor and Joan Crawford. Annual elec- tion, June 27, is merely a formality. TEUITINO FATE Hollywood, June 6. 'Friday the Thirteenth' Is Rowland 'V. Lee's next producer-director chore at Universal. Picture is a whodunit with Boris Karloff in the top role. Col. Asb U. S. Suit Dismissal; Court Indicates No Further Particulars Coliunbia Pictures Corp. yesterday (Tues.) filed application- in the N. Y. federal court asking for a dismissal of the anti-trust action against It CoL declares that in the bill of par- ticulars furnished by the Govern- ment coercion, price fixing, block booldng, ete., were charged in the Interstate Circuit case in Texas. Columbia asserts that this case was decided some time ago, and as result it may not be raised again. Colum- bia demands that the Government be precluded from attempting to give evidence on this point in the suit and that a further bill of par- ticulars be furnished citing other examples not already adjudicated. If unable to do this, since Paul Wil- liams, special assistant attorney gen- eral, stated that the cases cited were all the Government had on hand at the moment Columbia asks a dis- missal of the complaint for lack of evidence.. Columbia's application, which will be argued . before Judge William Bondy, June 10, also includes the other demands asked by all the other majors, namely, further defi- nitions, niore specific dates on the times, places, ete., of agreementa which the Government alleges will prove its contentions as to the mO' nopoly. No Hwe ParUoaUrs Although reserving decision on applications by the major companies for a further bill of particulars, or a dismissal of the anti-trust action against them by the (government, for alleged' failure to comply with the court's order. Federal Judge Bondy, in New York Thursday (1) indicated he is inclined to the Government point of view, and will not force any additional particulars from the Department of Justice. Judge Bondy, repeatedly through' out the day, attempted to get Col William Donovan, presenting the ar- gument of the majors, to agree to furnish an answer to the complaint before he decides this application Donovan refused, declaring that as a result of the bill of particulars bi- ing 'gloriously indefinite and neba lous' the companies still did not know What they had to defend. That Judge Bondy did not agree with this statement became evident through his remark, 'Mr.'(Paul) Williams, if you will give me a memorandum showing me how to do so, I'll order these defendants to furnish an an- swer at once.' Williams is special assistant to the Attorney (General, and had presented the side of the U. S. throughout the day, in which he claimed that the Government had answered all the requests possible. He intimated that the only reason for the. demand for a further bill was to secure another delay. Dono- vait answering this declared that It was the Government which was re- (Continued on page 44) Washington, June 6. Grand jury action against several top Hollywood executives and labor figures was suggested last week by Attorney General Frank Murphy upon return from a hurried, sensa- tional trip to the Coast Confirmation of trade reports that. the Federal Government is looking into the income tax angles of one film merger, and the relations be- tween producers and Willie Bioff, ambassador for national headquar- ters of the International Alliance of Theatrical Stage Employees, came from the Justice Department De- tails of the probe and possible basis of action were withheld, however; The Bioff case is said' to involve reporta that certain execs conspired to help the union representative hide some of his income in order to cut tax . payments. Murphy said that labor matters will be taken.up shortly. ■ • SUm Snmmervllle's Tap Mistake by Uncle Sam was charged last week by Slim Summer- ville, film comedian, ^in a scuffle with U. S. tax-grabbers. Denying that he owed $14,817 ad- ditional income taxes for 1936-37, Summervnie pinned the blame' on the Government for erroneously re- ■ fusing to allow him to make com- miinity returns with his wife. Film actor received his final divorce papers in October, 1937. Internal revenue bureau computed Summerville's 1036 net income at $43,538 and his iiicome for the fol- lowing-year at $75,407. . Hardy's Family Squawk Still another Hollywood wail over refusal of U. S. tax experts to per- mit screen stars to make community returns with their wives. Latest complainant is Oliver Hardy, film comedian, who Monday (5) told the Government that he does not owie $16,086 in additional 1934 income taxes. lii a petition to the Board of Tax Appeals, Hardy mourned that the Feds, 'erroneously' refused to allow him to take advantage of the Cali- fornia community law, Tax-slug also included - expenses of Hardy's wardrobe, telephone and automobile which should have been deducted, he griped. Shorted, Sex V. S. Los Angeles, June 6. Uncle Sam's income tax moppei^ uppers invaded Hollywood again, this time asking. $5,635 additional from B. P. Schulberg. Other recipients of Governmental' invitations were Boris Morros, $1,282; Sam Jaffe, $1,491; Walter Catlett $937, and James and Lucille Gleason, $900 each. U. SAYS DARRIEUX WILL MAKE ANOTHER Universal officials expect Danielle Darrieux, French screen actress, back in Hollywood, to start work on her second feature for U this fall. She ia scheduled for at least ona feature oh Universal's 1939-40 prO'* gram. Previous contract for picture work, claimed by a French producer, thus far has prevented Miss Dar- rieux from starting her next U pro- duction. FIELDS T;ATn up AGAIN Hollywood, June 0. W. C. Fields Is recovering in Pasa- dena Sanitarium from a pneumpnit siege. Stodio Contracts Hollywood, June 6. Metro renewed Fay Holden's player ticket Paramount signed Janet Waldo to miiior contract Samuel Goldwyn picked up Alan Baldwin's player option. Paramount handed moppet ticket to Carolyn Lee. Charles Halton inked three-picture pact at Paramount ' - Universal hoisted Frank Skinner I option as composer-arranger.