Variety (Jun 1939)

• VARIETY PICTURES Wednesdaj, Jane 7, 1939 F3m Distribs Bdk at Nova Scotia Law Being Held Over Their Heads; Want Repeal or Won t Service Pix Bf W. 1. MeNDLTT St John, N. B., June 6. The film supply situation In Nova Scotia has developed another un- lavorable complex. Instead of being smoothed over by the recent ap- pointment of a conciliation' board, representative of a) the exchanges covering the territory from St John, (2) the theatre chains, and (3) the Independent exhibitors, the legisla- tion recently enacted to end alleged discrimination in favor of the the- atre chains has not been proclaimed. Although duly passed in the legis- lature and given royal assent, the Nova Scotian government has prom- ised not to proclaim the new. law licensing and regulating the ex- changes, if the conciliation board becomes effective. However, the head offices of the distributing entities in New York and Toronto have now declined to continue supplying pictures any- where in Nova Scotia tmless a posi- tive guarantee is given that tiie ob- jectionable legislation will be re- pealed at the 1940 session of the legislature. This, usually< opens late In the winter, at Halifax. The dis- tributors refuse to be satisfied with a governmental promise of not prO' claiming the new legislation. The distributors feel that the law on the statute boohs, whether proclaimed or not constitutes a positive threat to their business. Therefore, they demand that the definite agreement be made not only that the amend- ments authorizing the provincial censor board to fix film rental prices and revoke exchange licenses, will not be enforced pending the next legislative session, but that repeal will be made. Thus it Is that .the exhibitors all through Nova Scotia are in a quan- dary. Tb.e prevailing contracts ex- pire chiefly in August and Septemr ber. The distributors absolutely re- fuse to enter into renewing contracts with exhibitors until the repeal is guaranteed. This has not been forthcoming from the provincial government wliose attitude is that of suspending the proclamation of the legislation while the conciliation board functions satisfactorily. How- ever, this board has not even got started on Its mission. Representatives of the St. John exchanges and execs from Toronto offices had agreed to participation in the board, as the solution of a very distressing problem. The ban on film sales to Nova Scotian exhlbi' tors had been ordered from the New York and Toronto distribution bases right after the 'anti-discrimination' bill had been passed in the provin- cial assembly. However, this ban did not affect the current supply, as , practically all the exhibitors have contracted for films up to Aug, and some up to Sept 1. Hie chaotic condition on the sup- ply line has Interfered witii plans for several new exhibiting projects, The ^nsors, after launching nego tiations for new theatres or remodel- ling old ones, find themselves faced with a possibility of not being able to get pictures. It all the screen- eries are forced to close because of the film flow being completely halted, it. is estimated that between 1,200 and 1,500 people will lose employment. Including not only theatre employes, but exchange salesmen. And at a time when unemployment is the major eco- nomic evil all through Nova Scotia, and the relief movement is far in- adequate to cope with the prevail- ing poverty. Distributing through Nova Scotia, from St John, are Paramount Regal Films, United Artists, Empire-Uni- versal, Warner Bros., RKO, Maritime Films. The last named is of St John origin, and covering the maritime provinces only. Greene Hort, Pic Limps Hollywood, June 6. Work on 'Here I Am a Stranger' at 20th-Fox was halted pending the re- covery of Richard Greene, who was Injured in a motor accident Pic- ture had been shooting two weeks. Repairing his rear fender, Greene's legs were crushed between his own car and another rolling downhill af- ter its brakes had loosened. RKO WOOS UUGHTON FOR HUNCHBACK' ROLE F. K. Speidell Reelected . As Astoria Studio Prez Frank K, Speidell continues' as president of Audio Productions, Inc., and the Eastern Service studios, As- toria, L. I. He was reelected at the annual meeting In N, Y. last w«ek. Charles h. Glett Was renamed v.p. of the - studio company in charge of operations, and A.. J. Wilson was elected v.p. of Audio over Industrial production. E. C. Wagner continues as secretary-treasurer of both cor- porations and P. J. Mooney as as- sistant sec. Hollywood, June 6. Charles Lau^ton is being over- tured by RKO for the title role In 'Hunchback of Notre Dame.' With picture scheduled to start in six weeks and th^ studio despairing of casting any of the locals for the Lon Chaney role, pressure is. being applied to have Laughton cut his mngiiah assignments and return to Hollywood. W6-Nat1 Ikatres Breach Opens Film Outlets for Odier Distribs 'GUNGA m sun vs. RKO SET FOR HEARING Enjoin lATSE From Cafling Meetings of Its 5 Coast Locals ITS l^WEK NET, NODIWY J. Cheever Cowdin, chairman of Universal Pictures Co., Inc., reports a net profit of $581,587 for 13 weeks ended April 29, before Federal taxes. For the six months ending on the same date. Cowdin reported $739,578 net or $1,327,863 improvement over the $588,285 loss shown by Universal in the first half of the previous fiscal year. Part of the- improvement in earn- ings for U resulted from increased revenue and part came from reduced expenditures, Cowdin stated this week, but would not designate the proportion that came from in- creased film rentals. Cowdin also dedined to indicate whether this earning rate is being maintained at present or whether it might be in the future, but stated that gross in come was running higher than at this time in 1938. Questioned as to whether this big pickup in earnings, representing more than $2 on the common after provision tor preferred Issues, would mean a dividend, Cowdin indicated that none was in prospect He also claimed that'there was no intention of calling In any stock issue. Last time that Universal showed anything like the current earning rate wa# back In 1827 when the com' pany r^rted net of about $1,502,000 for the full year. 2«th-Fbx'a Dlwy Twentieth Century-Fox maintained its 37 He dividend on preferred and 60c on common last week, directors making the declaration Thursday (1). The quarterly divvy on the preference issue maintains the aU' nual $1.50 rate, being designated as covering the second quarttjr of 1930, Both dividends are payable June 30 to stock on record June 15. GRIFFITH ABSORBS BOOTH'S THEATRES Nebraska City, Neb., June 6. The W. W. Booth properties of Auburn, Neb. and here, will be transferred to Griffith Amus. Co. thereafter operated as part of the Griffith interests now scattered over iCansas, Missouri, Texas, Arizona and New Mexico. This is the flVst entry In Nebraska. H. J. GrUath was In on the final signaturing of the deal, and Booth said he would leave because of his health, hoping to locate in some the atre in the southwest ' R. R. Booth, who has been asso ciated with W. W., will retain his Interest, staying on as manager in Nebraska City for the circuit C. E, Souders, manager in Auburn, also being retained. Hollywood, June 6. A new restraining order enjoining the lATSE from holding meetings of the five newly chartered studio locals was Issued by Superior Judge Em' met Wilson. The International also Is hobbled in transferring members of Technicians liOcal 37 to recently set up union branches. Reported that lA may fliy its entire membership of the General Execu- tive Board, here to testify that George E. Browne, prez, is vested with authority from tiiem to declare an emergency when the International seized control of Local 37. Demand for a mistrial was last week's loudest explosion in the cur' rent legal batUe for control of IiOcal 37 of International Alliance of The- atrical Stage Employees, now being waged before Judge Hemy M. Willis in superior court Blast was de- tonate by George BresUn, attorney for lA, when Lew C. C. Blix, former business agent, inferred on the stand that former prohibition racketeers had taken over control of the union, Said Breslln: 'It the court has any idea that the International is being operated by racketeers, I request a mistrial.' Judge said: 'You're a thousand times oft,' and denied the motion. The outburst came while A. Brig ham Rose, counsel tor officers of 37, was questioning BUx about the financial setup of Local 37 and.lts re- lationship to the International dur ing the high pressure membership caqipaign of 1936. Rose was trying to show that the $100,000 turned back to the local when it was granted autonomy in 1S38 was only a small percentage of the monies collected by InternaUonaL Action in the local court concerns the revocation of the charter of Technicians Local 37 and the grant- ing of separate charters to five lO' cals in different branches of the film industry. Revocation was ordered by George E. Browne, president in New York, and lATSE transferred members of 37 into new unions oc- cupying the same quarters. The workers were directed to re-«nroll with Charles J, Ferguson, Local 728; Harry M. ShiSman, Local 165; Jo seph P. Busch, Local 44; Tom Moore, Local 80, and Thomas T. Goset Local 727. . Charter Mystery Cleared For a time there was a mystery about the disappearance of the Local 37 charter. The whodunit was solved by Breslln, who told the court that the missing document had been sent to New York by Floyd Billings- ley, international representative, on orders of Prexy Browne. It had been picked up, he testified, in accordance with the lATSE constitution. Meanwhile seven labor leaders were ordered to appear before SU' perior Judge Emmet Wilson next Tuesday (13) to show cause vrby they should not be held in contempt for the revocation of the charter. Those "so ordered were Prexy Browne; John F. Gatelee, Floyd BU' lingsley and Frank Strickling, Inter- national representatives; Harold Smith, former lATSE Coast head; Brix, executive secretary 'of Local 37, and J. W. Buzzell, executive secre tary of Central Labor Council. Lonr-Grlffl(h Adds Dallas, June 6. A new unit in the Long-Griffith chain will be started Aug. 1 at ViC' toria, Texas, seating 1,200. Queen, Bryan, Texas, will be air- conditioned, indirectly lighted; 560 seats. The Arlyne, Longview, Texas, built by Col. M. T. Flanagan and East Texas Theatres, just opened. Los Angeles, June 6. Harry Gould's Infringement suit against RKO over the picture, Gunga Din,' is set for hearing in Federal court June 26, when Judge Paiil J. McCormick will rule on stu- dio's motion tor dIsmlssaL Suit charged RKO, George Stev- ens, Pandro Herman, Ben Hecht Charles MacArthur, Fred Guiol and Joel Sayre with pirating the yam, 'Gunga Din or Pawnee WaUah.' Story was written by Alfred .Gould- ing, who later turned his rights over to Gould. FnD Length Abroad For Laurel-Hardy 4-ReeIers Hollywood, June 6. Hal Roach rolled the Stan Laurel Oliver Hardy starrer, 'A Chump Oxford,' as the first of a series tour-reelers for the American mar' ket Pictures will be run at feature length for the foreign market owing to the popularity of the duo in Eu- rope and South America. ALUED TO TALK OVER MANY PROBLEMS While the open forum at the na- tional convention of Allied States Assa in Minneapolis June 13-14-15, which is expected to draw a large attendance from major distribution leaders down the line, will concern trade- practices generally, the code and other matters, the Neely bill will be barred for discussion. Also, while Allied denies there is any moveinent on toot to form a book- ing combine of around 2,500 theatres, if anyone wants to discuss this mat- ter they may do so. Requests have been received to bring the question of a booking combine' up on the floor. This will be permitted al- though no Allied official will bring it up, it is promised. Film rentals, sales policies, nature at product, independent problems of a varied nature, the trade practice code and arbitration will be among matters opened up wide, for discuS' sion. W. AI Steffes, convention chairman, has also Tcceived sugges- tions that something be done about giveaways and that rackets of all sorts be discontinued. Allied is also concerned about the spread of non-theatrical competition, notably in the 16mm. field and be- lieves this question should be freely and widely discussed on the floor. It has been decided In opening the convensh June 13 that an ex- ecutive session be held at which only independent exhibitors will be pres- ent so that they may express them- selves without fear of reprisal or attack. At all the other sessions, the floor will be completely open to dis- cussion of general Industry affairs, with representatives of major dis- tributors and affiliated chains free to discuss any matter brought up. Virtually every major producer is expected to be represented, with ex- hlb leaders from outside of Allied also to attend. Other MaUcrs Minneapolis, June 6. The convention will take steps to stamp out a growing movement on foot among theatre owners through- out the U. S. to accept box tops, covers, coupons, etc., for admission, W. Al Steffes declares. Something also will be done, he says, about non- theatrical competition 'which Is gaining a foothold and which, unless stopped immediately, will put legiti- mate theatre owners out of business by the thousands.' Efforts will be made to find a solution to the prob- lem of 16 mni. film furnished non- theatricals, according to Steffes. Only independent exhibitors will be admitted to the convention's first meeting, an executive session, 'in order, that theatre owners, including non-members of the organization, may have a chance to be heard without fear of reprisals,' says Steffes. All other sessions, however, will be thrown open to producer- distributor representatives, but the vote- on the proposed new industry code will be by secret ballot he says. Complete break between Warner Bros, and National Theatres after discussions for a deal, to cover the 1939-40 season may mean a loss to WB of $1,000,000 or more, it is esti> matied. WB has already closed a few deals for "39-40 with independenti who are In opposition to National. Skouras Brothers, who operate the National circuit (Fox-West Coast) for 20th-Fox and the Chase National Bank, are blAmed for the policies against which WB complains. Spyro* Skouras heads the chain at the 20th. Fox home office, while Charles P. Skouras is in charge ot the Fox-West Coast group in National at Iios An- geles. Other units are Fox Inter', mountain and Fox Mid west,, the last- mentioned numbering over 100 houses In Illinois, Iowa, Kansas, Mis- souri and Nebraska. National circuit comprises nearly 500 houses. While Warner has been playing in a majority of these theatres, though not all, the decision to sell away from National affects all territories. With WB product taken away from National, It should provide a larger- opening for other distributors deal- ing with National in spots where WB sold the chain. Skouras houses in Greater New York are not affected by the break with National, WB hav- ing no trouble with the eastern group, George Skouras, in N, Y, over the local group, also operates houses In the United Artists Theatre circuit headed by Joseph M. Schendc, Lee Shubert and others. The Warner decision to break with National is due not only to unsatis- factory terms offered by National but also because of a policy on the part of the circuit to double up too many top bracket pictures on -dual bills, reducing the rental possibili- ties. ' While WB has had percentage deals In various spots with National, in numerous cases the distrib has had to accept flat rental deals. WB has always favored percentage deals and a couple of seasons back sought to eliminate flat rentals completely. The break with National is be- lieved to be the most important of Its kind ever to occurs Several sea- sons back United Artists had con> siderable trouble with some ot the chains and sold away to inde- pendents in territories where It couldn't get the deals it believed it should have. AI Lichtman was with the company at that time. UA at one time decided to build In oppn* sition to Fox-West Coast Sears' Statement Grad Sears, distribution head fbr Warner Bros., now in Hollywood, Issued a statement on the decision to sell away from National, reading in part 'A policy which makes possible the presentation of two 'A' attract. Uons such as 'Dodge City' and 'Alex> ander Graham Bell,' 'Wutherhig Heights' and 'Three Smart Girls,' 'Oklahoma Kid' and 'Love Affair,' and "Navy Blue and Gold' and 'Sub- marine D-1' is definitely destructive, both 'as tar as the public and pro- ducers are concerned. The double-feature policy as prac- ticed by Tox-West Coast reduces the possibility of film rentals on deserv- ing pictures, freezing the possibility of returns to such an extent that to support this practice makes it im- possible to produce fine, big-budget productions fOr fair returns. Cer- tainly this policy stifles incentive on the part of the producers who are just as anxious to make great box- office attractions as exhibitors are to play them. 'It is our opinion tiiat Warner pictures merit the greatest possible expenditure of showmanship and merchandising to match their im- portance. As Fox-West Coast has failed to give our product this kind of treatment and to produce the re- turns which our pictures deserve, We shall seek new markets and build soundly and constructively to- ward the future.' Skonras' Staicmcnt Holding off on an official statement until late last night (Tucs.), Spyros Skouras, operating head of National, attacked the WB stand concerning the doubling ot films in National houses. He charged that WB duals in over 300 of its own theatres and named the Beverly-Wilshire on the Coast together with double bills of 'A' pictures that have been played there. No other hoxiscs or twin-fea- ture programs were specified. Declaring it has always been the policy of National to ar.ange the (Continued on pagi. 44)