Variety (Jul 1939)

VARtETY PICTURES Wefiiesdaij, July I939 WORST OF THE BOXOFHCE SLUMP NOW OVER. SAY FILM THEATRE MANAGERS Low* in May and Early June Overcome by Upping Gait at the Wickets—Poor Product Had Some- thing (but Not All) to Do with It The worst of the boxofflce jitters are over in the opinion of theatre operators who report that during the past two weeks there has been a sudden pull back from the low for the year established during May and early June. Figures show that the level of grosses nationally is a little bit higher than It was last year from June 1& to July 1. Opinion is also expressed in theatre circles -that the business of exhibition is running ahead of general business enter- prises in the majority of the cities and towns. Thia in Itself is gratifying, es- pecially in sections where other In- dustries have been decidedly hard hit of late; notably New Englaod and the Michigan terrltojy. Another ex- cuse for feeling less ill at ease is the fact that film prodpct the past two months has been so generally weak that it is a wonder the theaitres didn't dip deeper than they did. Jane 5% Up Over May The Juno average for business looks like it might run somewhere around 6% over May, when all the figures are in, first run key grosses making it appear that this generally would be the case for the whole country. Last year business was dropping rapidly .during the spring and early summer months, going away under the figures that had lieen established prior to recession in 1937. By com- parison with last year, April, May and June just past have been better than for the correspondhig period in 1938, although this isn't saying much In view of last year's serious decline. Operators cannot account for ttie audden pitch that grosses began tak- ing this spring, aside from the quality of the product available which. It is conceded, had something to do with It, though not entirely. It has been noted that pictures which. In May playdates, did poorly, have increased their grossing pace during the past three weeks. In New York and San Francisco, ■8 well as In nearby towns from which the fairs have been drawing, the take at film ticket windows has been vitally affected, but theatre men refuse to blame everything on these two expositions. They predl cate this view on the fact that cities distant from the fair also dropped ceriously during May and a part of June. General business conditions and sectioned, slumps such as In De- troit hove figured Importantly, it is held. The south and southwest - has maintained a pretty good i^lp on business right along this spring, while in New England grosses have been generally okay in view of the local business conditions. Most of the midwest, notably Iowa, has been very good, while the Nebraska ter- ritory has been only fair. New York state has been bad, together with the Michigan territory, the northwest, Ohio, and the Pittsburgh area. Far west has also been off considerably. REPORT ODLOM COIN IN GRAND NATIONAL In a separate deal for new. financing, apart from a proposed commitment with Felt & Co, Wall St underwriting house which is to furnish $950,000 in new money for Educational • Grand National Pic- tures, E. W. Hammons is reported to have'secured a loan from Floyd Od- ium of AUas Investing Co. Felt Co.. has a 60-day call to raise an Initial $200,000 plus another $750,000, when, as and if stockholders of Education- al-GN ratify the arrangement on July 14. The Odium group, which Is said to be in control of the Cosmocolor Corp., is also said to be financing Franklyn Warner's Fine Arts lineup of 24 pictures to be made in the Cosmocolor process. Rumors in the financial district in dicate that Odium's financing of -Fine Arts may also serve the purpose of increasing Atlas' sphere of influence in GN affairs, since the latter is de' pending on Franklyn. Warner deliv- ering the new Cosmocolor product for distribution. When the Wamer-Cosmocolor deal was dpsed last week, th^ producer gave no indication tliat the color pic- tures would go through GN. Under his present contract, Warner has only four additional Fine Arts piC' tures to deliver. Baseball Muffs One with the N.Y. World's Fair en- ]02rln^ its biggest weekday gate, a number of Broadway picture houses doing bullishly on Mon- day <3), a day between a week- end and a Jidy 4 holiday, there were only three big league games scheduled all over the country. With both the Giants and Brooklyn Dodgers In town, no baseball games In New York were schedided for Monday, whereas double-headers ob-. tained both Sunday and yester- day (Tuesday). With a perfect weather setup on Monday, it again proves that the baseball magnates are the worst showmen in the world by adhering to the no-games-on- Monday policy, completely for> getting an advantageous pre- hollday period. INDIES' SQUAWK ONUPPEDFILM COSTS DU PONT BUYING UP FLOCK OF PATHE STOCK . Su Font Film Mfg.. Co. Is continu- ing to acquire blocks of Fathe 'FlIm Corpi stock held by a re^Iatively small number of individuals, In an effort to strengthen its position, be- fore offering a proposition to Pathe stockholders for control of the com- pany. Negotiations have been under way for.the past 10 days.with Pat Casey, holder of a substantial amount of Pathe stock, in an effort to acquire his holdings. Tentative Du Pont plan contem- plates exchange of one share of Du Pont de Nemours for each 11 shares of Pathe. While Kenneth Young, president of Pathe Film, is unoffi- cially reported to be favoring the ex- change, . which will restore - 3,500 shares of Du Pont film stock now held by Pathe as its principal asset, Du Pont Is'desirous of acquiring up- wards of-205,000 Pathe shares in pri- vate transactions, before springing ttie swap plan, to ensure its success.- Some 582,000 shares of Pathe stock •re outstanding. M. P. Rdiefs Refolving Fond of ^5r$100,000 A plant to establish a revolving fund of $75,000 to $100,000 to take care of permanent relief cases in the film industry was disclosed by James Roosevelt u the annual membership meeting of the Motion Picture Relief Fund. Roosevelt sUted he had al- ready discuKcd the proposal with Will Hays and several producers and that the reaction of all was favor- able. The funds would be supplied by the major film companies. Jean Hersbolt was relected presl dent of the Motion Picture Relief Fund, along with vice-presidents Jo- seph M. Schenck, Joan Crawford and Ralph Block. Ginger-Rogers was elected to the new post of fourth y-p. SAILINGS July 26 (New York to London) Herbert J. Yates, Gene Autry (Man- hattan). July 19. (New York to London) Laurence' Olivier (Queen Mary). July 8 (Vancouver to Tokyo) Leon Brltton (fiinpress of Canada).. July a (New York to Paris) Jean Gallia, Morgan Fadelford, Gene GI- raudoux (He de France). July 5 (New York to London) Paul Robeson, Mr! and Mrs. Don Becker, Movita (Queen Mary). July 5 (London to New York) Wil- liam Saroyan, Myma Loy, Arthur Hornblow, Jr., Mary Plckford, Buddy Rogers, Louis Dreyfus (Nor- mandie). July 1 (New York to Paris) Vy- vyan Donner (Champlaln). July 1 (New York to Genoa) Mr. and Mrs. Tyrone Power (Annabella), Maestri Fietro, 'Constantino Yon, H. R. Ekins, Mrs. Morton Downey (Rex).' July - 1 (New York to Havana) Pedro Saenz (Oriente). Ju^ 1 (New York to Bermuda) Dwight Deere 'Wiman (Queen of Bermuda), June 30 (New York to London) Mrs, Constance Robertson, Mr. and Mrs. F. W. BleeS, Mr. and Mrs. James M. Skinner, Sr., Fanny E. Holtz- mann, Ralph Hanbury (Maureta- nia). June 30 (New York to Rio de Ja- niero) Bruno Chell (Brazil). June 29 (Los Angeles to Honolulu) Adolph Zukor (Matsonia). ARRIVALS Dr. Hans Klndler, Efrem Kur.tz, Arnold Gabpr, P. Henri, ^lora Rob- son, Mrs. M. Cliff, Leopold Stokovy- ski. ' ■ • • Minneapolis, Jiily 4. Twin City independent suburban exhibitors are plenty worried over current reports- that distributors here, the same as elsewhere, plan to jack up film costs still higher to help make up for declines in down town revenues, due to' an alleged swing of much of the business to the neighborhood situations,' where lower admissions, free parking and other advantages not' enjoyed by loop patrons are'the lure. These exhibitors have been insist- ing that film prices now are 'far too high* and "must come down' if they're to survive. The fact that most of the film companies are giv-> ing them the absent treatment isnt adding to their- peace, of mind. Neither are the tidings of current out-of-towri new-season product deals involving' price boosts, and i surprisingly large' number of per centage pictures at higher splits. While the Twin City independents have-been crying loudly blMut their ill straits and the need for relief, there are no . theatres - for sale at anything like a reasonable price. Many -interests and individuals wish to build new houses but ere pre- vented from doing 39, and instances of exhibitors going bankrupt are un- known, the - film compaiiy branch managers here claim. On the other hand, independent exhibitors de- clare they're willing to throw open their books to show they haven't been making any money the past year and their operations are con- thiuously growing more unprofitable. Other News of Interest to Fihns Propaganda angle In British nbt of film taxes ;Page 12 Italy testing U. S. on return Page 12 Hoyt ahakcup .......Page 12 Film personalities on tianscrlption series... Page 23 Radio reviews: Maxwell House, Fred Alien, Gale Page-Jim Broadcasters gathering for convention Page 24-25 NBC-CBS' ASCAP caution ..Page 25 Ameche .Page 26 MBC has 18 films for television ...Page 35 Joint confab on picture coin ..Page 49 WwM Tie of All Show Biz Authors Seen as Resuh of French-U.S. Accord TIME'S ^RAMPARTS' FEATURE IN PROD. EAST Approximately 10,000 feet of'film already have been shot for The Ramparts We Watch,' the Initial fea- ture that the "March of Tline' is pro- ducing In the . east Fraetlcally all of this, material was taken outdoors, mostly of military maneuvers. It represents only about 10% of the total footage. Much of the remainder will be location shots and work done at the Eastern Service Studios, As- toria, I,. I. - Production will include nearly 2,000 people, with eight tp 10 namfe roles and some 40 other -speaking parts... M. of T. claims that an en- tirely different technique from any before used In a feature picture is being employed. 'Ramparts,' which will be turned out at a reputed cost of $300,000 to $400,000, was adapted from Major George Fielding Elliot's book. Picture will receive an advance buildup in Time and Iiite magazines. Louis de Rochemont, producer of "M. of T.,' Is officially listed as pro- ducer. RKO will release this fall. HVood's New Recrnits Hurley Held at Par Hollywood, July 4. Harold Hurley has signed a new one-year contract as executive pro- ducer at Paramount - Old pact expires in August Hollywood, July 4. ' Two strangers to Hollywood, Mau- reen O'Hara and Edmond O'Brien, get the romantic leads in RKO's 'Hunchback of Notre Dame/ which stars Charles Laughton. Miss O'Hara played in Laughton's British picture, 'Jamaica Inn' (Par). O'Brien comes from the Broadway stage. L. A. to N. Y. Dorothy Arnold. ConBtaDC« BeiinetL Bdsar B«rseii, Hugo Butler. John W. Cooeldlnc, Jr. Sam CoBlow. Gloria Dloknon. Howard Diets. Madga Evana. Bobort Olllham. Martin (;«acta. gill Herbert. 0P6 Mannlnff. Sam Marx: Murphy McHenry. Blake McVeagh. Milton Ulller. Movita. Arthur Park. Frank Rowan. Dore Schary. Bert Seeley. OeoYge ' Sherman. .T. J. Shubert Herbert Btothart. Dorothy Thompson. Ellhu Winer. Hem\Rn Wobber. N. Y. to L. A. Bddle Anderaon. Howard Benedict. Louise CampbelL Bar! rarroll, Jed Harris. Helen Hayea. Will H. Hays. Wilfred I.awson. I. B, I.oi>eTt, Richard Madden. - Herbert Marshall. Horace MaoMahon. Gilbert Miller. Stella Unger, Par (Jilig Id $26,000,000 in 6% Bonds; W6 Dittoes $6,00ODO6%ers Outstanding bonds of the 6% issue of $26,000,000 will be completely washed off the Par slate July 31, when the company calls for redemp^ tion on that date of approximately $1,950,000, the balance of the deben- tures existing at present' On the redemption of the bonds bearing 6%, issued at the time of the Par reorganization, Par's structure will then be made up only of pre- ferred and common' stocks, with former being rapidly converted into common. Loans made by Paramount last of $2,0OQi00O from Boston' bankis, have been': negotiated at lower interest than. 6% which the bbnds bear for the purpose of calling In the debs. ■Warner Bros. last week started re- deeming approximately $6,000,000 worth of its 6% bonds, according to schedule. Bonds were due In Sep- tember, but two months' interest payments are saved by calling in the bonds now. The refunding completes the con- version of the f uU $29,400,000 issue of S% jxmds, about $19,400,000 worth al- ready having been exchanged for new: 6% debentures due In 1948. Waitners already had retired more than ;$4,000,000 of the old 6% liens during the past 18 months. Cash re- demption of the $8,000,000 was han- dled through a bank loan at an average interest rate considerably below 6%. • . ■■ ' ' -'New 6% -bonds now. are - being traded on the N. Y. stock exchange. Working agreement between the Dramatists.. Guild and' the. French playwrights' society will probably be extended soon to the fields of film and radio authorship as 'welL It may ultimately lead to a world tieup of all show biz writer or- ganizations. American-French dramatist agree- ment has not yet been fonnally rati- fied by the'two groups. But it has been okayed by the Guild council, and was to be approved late last week by the board- of - the French organization (formally called Societe des Auteurs et Compositeurs Dra- matiqiie). It will next be voted on by-the memberships of both. Pass- age requires a 51% majority of Guild votes and 90% of the French. (Suild aproval Is figured almost .certain; E^ench society okay likely. - Although the immediate object of the agreement is to bring about reciprocal membership between the two bodies and thus effect- a joint closed shop for the Guild and French society in both -U. S. and French legit fields, the matter of film, radio and television writing i^ a primary element. Tieup is the first such foreign pact for either group. And while it is not yet for- mally in effect, both organizations are already cooperating on mutual authorship problems In the picture and ether fields as well as in legit . For instance, the French group has few regulations covering air scripting. .As a consequence, radio authors in' that country obtain much less satisfactory terms for their broadcasting material than do U. S. writers, even though the Radio Writers Guild (Dramatists Guild af- filiate) has no contract with the net- works or agencies. But since' the RWG was formed and has become active, numerous advantages have been obtained for American scriptera by negotiation' on individual' cohr tracts; and In some' cases genercA rules of practice are being observed. Henri Beritsteln, French society board member' who recently re- ttimed to France to lay the working agreement before his organization, studied the situation in this country during his stay in New York. As a result,, the Fmch scripters . .are al- ready patterning their procedure on the tactics used by . the RWG. Mat- ter of television Is not of such im- mediate concern, but it is figured that ti^ith the inevitable growth of Vlslo, that field of authorship is cer- tain to become a vital one, so the two orgailizations are laying the groundwork to deal with it Films and Radio . Realm of film 'authorship la of even less Immediate concern than that of radio. But since the Dramatists and Radio Writers Guilds are af- filiated with the Scireen Writers' Guild (through their common parent the Authors League of America), that phase of the situation must in- evitably tie lii. Somewhat similar situation ejtlsts in France. . It's figured possible that the prob- lem of controlling the film writing situation' In both countries may be met by handling the source of story material outside the picture Indus- try. In other words, the screen writing field might be controlled by regulating the source of film ma- terial—that Is, the stage, radio and books. " ' Radio and books are beyond Im- mediate control, but the anticipated agreement between the dramatist or- ganUiations will take care of the legit situation at. once. The Dram- atists Guild alreSdy 'regulates film buys Of plays with its minimum basic agreement and It likewise con- (CTcmtinued- on page- SO)- -