Variety (Aug 1939)

Wednesday, Aogust 2, 1939 PICTURES VARIETY U. S. SUIT A COSTLY BUGABOO lA Gives Producers Ultimatum Qn Closed Shop, But Film Execs Move Slowly; Fear NLRB Violations Hollywood, Aug. 1. The Producers Associattdn meeting Monday (31) night failed to okay a closed shop agreement with the lATSE Following a two-hour ses- sion in the offices of Joseph M. "Schehcfc "at'20th^ox,- a- committee was appointed to investigate the labor situation and report to the producers within a short time. Schenck, prez of the association, is chairman; other membeis, E. J. Mannix, Y. Frank Freeman, Walter Wanger and Mendel Silberberg. , Matters discussed were a demana of lATSE for closed shop agreement for its U studio Ipcals by 5 p.m. to- day (Tues.); a five-year contract with the American Society of Cine- matogrsphers; and a petition of United Studio Technicians Guild to the National Labor Relations Board for its designation as a bargaining rep for 12,000 workers claimed by the lATSE. Believed no action will be taken today (Tues.) by lA, inas- much as the demand asks a definite announcement from the producers that negotiations would be continued. Understood consensus of opinion with respect to the ASC was for companies to stand by their agree- ment with first cameramen. Execu- tives are said to have taken the po- sition that they are In the middle of tlis lA and USTG situation. It was contended that even though lA took over the first cameramen and recognized validity of the producers- ASC contract,' producers might find themselves involved in a serious sit- uation with the NLRB should they make a closed shop agreement withlA. Understood attorneys have advised execs to proceed with caution in making agreement where issues In- volved were pending before the Fed- eral body. Deal calling for an election by 12,000 technical film workers on Aug. IS to designate bargaining repre- sentatives 'ell through Monday (3) when the lATSE nixed the proposal unless the producers granted lA a closed shop agreement. Producers' reps and United Studio Technicians Guild are willing to okay, the elec- tion, but John F. Gatelee, lA rep, in- sisted studios would first have to recognize the 11 lA locals. Gatelee refused to meet with USTG reps, but discussed the situation privately with ■William Walsh, NLRB attorney, who said efforts to settle differences be- tween the two unions will continue. Producers were represented by Men- del Silberberg and Alfred Wright attorneys. Howard S. Robertson Harold I. Besbeck and Attorney Charles J. Katz appeared for USTG Agents Ignore *Stop-Gap* Clause; SAG Squawks Film agents are ignoring agree- ment between the Screen -Actors Guild and Artists Managers Guild calling for inclusion of a 'stopgap' clause in all new contracts with ac- tors clients. Discovery that many P»c<s being sent to the State Labor Department for okay did not carry this clause resulted in a protest be- ing filed with the.AMG. Tops agreed to correct situation, and are said to nave cautioned members that no hew contracts should be drafted or old , , ones rewritten without carrying this provision. Simultaneously the SAG warned that actors' signing a contract with- out this clause are liable to suspen- sion since the agreement has atready been approved by the SAG member- ship. 'Stop-gap' clause provides that any contract written since licensing pro- gram was announced by the SAG will be made to conform with any standard pact approved by the actors when the licensing agreement actu- ally becomes operative. . AMG committee has been meet- '»S almost nightly in an effort to ciratt ■ • SEQUELING DICKENS Metro's Encore to 'Christmas Carol' Beinjr Mulled Metro is considering "Twas the Night Before Christmas,' a senti- ment-al-^drama by Mildred Gilman, fiction writer. Idea is to use it for a sequel to Dickens' 'Christmas Carol,' which the studio made last year. Frank Orsatti is handling it on the Coast, while the legit rights are being agentcd in New York by Stephen Slesinger. STUDIO LABOR SPOKESMEN APPROVED Washington, Aug. 1. Five spokesmen for various studio crafts were recognized last week by the National Labor Relations Board, which simultaneously scheduled elections at several plants to see who will talk for the hired help. Pro- ducer objections that involved work- ers outside the Wagner Act were snooted in orders based on compari- son of payrolls and union rosters. The Society of Motion Picture Art Directors will bargain for chief art directors, unit art directors and fol-' lowup men at Columbia, RKO, 20th Century-Fox, Metro and Paramount, with elections to see if this union shall be mouthpiece for. colleagues employed by Universal, Warner Bros, and United Artists. Tlie Society of Motion Picture Ar- tists and Illustrators will front for illustrators in art departments, cos- tume illustrators, process shot artists and their assistants, title artists, and title department heads at Columbia, RKO, Universal and Metro. Elec- tions ordered at Warners and 20th- Fox. Plea for recognition on behalf of Paramount workers dismisised. Tlie Federation of Screen Cartoon- ists and tl\e Society of Motion Pic- ture Film Editors will be mouth- piece for Walt Disney staff. Evi- dence showed Editors Society pre- ferred by all 15 eligible workers, while Cartoonists Federation repre- sented 508 of 602 production work- er.';. Screen Publicists Guild was named the pipeline for fiacks at nine studios .—RKQ, Columbia, .Universal, Metro, 20th-Fox, Paramount. Warners, Roach and Goldwyn, with petition by workers at Selznick and Prin- cipal tossed out. Guild is bargaining agent for unit-men, feature writersj planters, contact men, art editors, copy editors, trailer men and adver- tising men in the publicity depart- ments and all Los Angeles advertis- ing department help. Order ex- cludes directors and assistant direc- I tors of a publicity department. Theatre Dept. Accountants, Statistical Experts, CPAs and the Like—Not to Men- tion the Lawyers — Will Run Into the Millions Pre- paring the Defense—Must Report to Uncle Sam Even Now^—Pat Scollard'In NOV. TRIAL DATE Majors Get a Preview of Voluminous Testimony in Philadelphia Anti-Trust Suit by One Indie Vs. WB, Et. Al WURTZEL'S VACATION Welt Ahead on Producllon—John Slone Will Be in Char;* Lawrence VV. Fox, Jr., To Produce Cartoon Series General Film Co., Lawrence W. Fox, Jr., president, is going into the shorts subject production field and plans to i.ssue a series of animated cartoons in color, at the rate of one a month. Cartoons will be based on a series of kiddie yarns featuring an ; elephant. I Rights to the 'Barbar' books by 1 Jean de Brunhofl have been ac- quired by General Film from Ran- dom House. Inc. Fox intends to en- gage a staff of animators and pro- I duction of the series will be either I in N. Y. or the Coa.st, depending on revisions to proposed contract | where the required artists can be (Continued on page 27) I signed. Faced with the prospect of an early trial of the U. S. anti-trust suit, distributing companies and their theatr.e'-departments, itccount- ants, statistical experts and others ara beginning to set a hectic pace In the compiling of data of various kinds, the holding of many meet- ings, - discussion of defense moves, etc. Meantime, the cost of perform- ing this work is mounting to what it \s claimed will be a monumental figure. Aside from what attorneys will drag down in defense of the Gov- ernment suit, the maze of account- ing work, extra help to perform It, and the inability of various persons with the majors to take care of their regular duties due to the necessity of confining themselves to the U. S. suit. Is adding steeply to the over- head at a time when worry is be- ginning to set in as to how the bill will be paid. In addition to piling a heavy job on Price, Waterhouse Sc Co., the ac- countancy firm, much extra help is being hired to perform the work caused by the Government action. C. J. (Pat) ScoUard, a former Jo seph P. Kennedy.associate, and with Kennedy In FBO and, later on, Pathe, in high capacities, has joined Paramount as coordinator for that company of its data-gathering ac- tivity. He Is also sitting in with major executives at meetings held at the Hays office, these having been numerous of late, and also at conferences in Par for discussion of progress being made, planning of moves, etc. The job of meeting the U. S. suit is greatest for the majors which con- trol theatres, these being Para- mount, Loew's, Warner Bros., 20lh- "Fox and RKO, than for the others, though the latter are vitally con- cerned about the divorcement anijle since they are customers of the big producers with their own thealros. Must Check In Every Month In addition to the compilation of an almost endless amount of sta- tistics and facts concerning the thea- tres now operated by major."!, the circumstances under which ac- quired, etc., 'the major chains have been forced to make a monthly re- port to the Department of Ju.slice concerning any change in the situa- tion, houses that are dropped, any acquisitions, renewals of leases, etc. This report must be made by Par. WB.. 20th-Fox, RKO and Loew's on the 10th of every month and. in it- self, entails ■ much extra work. The nightmare for the account- ants, statisticians, realty men, atlor. neys and others for the chains aUo includes all data on theatres, ; whether, in or out of the companies j now, from 1932 down to tlie prcs- , ent. , This has necessitated digging | into old records and flics for the | purpose of making reports on thea-1 tres for the pa.st seven years, re- gardless of what happened to them. It includes data on houses which | have since been dropped by chains, i in some cases rebuilt by others or , torn down altogether. | Midnight oil for legal and nc- j counting staffs, the hiring of extra I help and great inroads on the time I of men in distribution, theatre or j other departments, have been the j result. The sales departments have , men in the various exchanges also | gathering data for the defense of the ( (Continued on page 55) I Hollywood, Aug. 1. Having completed eight of 28 pic- tures on his 20th-Fox production schedule for 1939-40, Sol Wurlzel is putting six mor« befora th« cam- eras this month and will then va- cation. John Stone, associate producer with Wurtzel, will be In charge dur- ing the latter's holiday. U.S.ANDMAJORS CANTAGREEON TRIAL DATE Paul Williams, after several con- ferences with major company attor- neys in New York, has been unable to agree on a data for trial of the Government anti-trust action against the major film companies. The U.S. application for a preference will be heard by Senior Federal Judge John C. Knox in his chambers Thursday (3). It is expected that the major com- panies will oppose the request for a Nov. 1 start of trial, on tha grounds of inability to be ready to defend themselves at that tlrhe. Williams Is. ready now to present his case, and expects to ba prepared to serve his supplemental bill of par- ticulars by Oct. 1, one month before trial. LINDA WARE'S FATHER DENIED GUARDIANSHIP - . Detroit, Aug. 1. Probate Judge Patrick H. O'Brien yesterday (Monday) denied tha pe- tition of George Stillwagon, a steel worker, for guardianship of his daughter, Linda Ware, who film-de- buts in Paramount's 'Star Maker.' After weeks of hearings, the jurist ruled that the father had recognized iurisdiction of California's courts last October when the juvenile sing- er, was made a ward of the state un- til she should choose her own guardian when she reached the _age of 14. Last May 31, when she reached her 14tli birthday, she chose her aunt. Mrs. Anna Stillwagon, of Los Angeles, as her guardian. The father's suit here, by which he said he hoped to avoid another 'Jackie Coocan or Freddie Bartholomew mess,* caused Paramount to cancel its .scheduled world preem of 'Star Maker' at the Michigan theatre here because of kidnap fears. Name Florence George In Home-Town Realty Suit Springfield, O., Aug. 1. Screen actress Florence George- Catherine Guthrie to localites—has been named defendant in a suit by the Home Owners' Loan Corp. to foreclose a mortgage on her Spring- field property. She was married a few weeks ago to Bing Crosby's brother, Everett. Miss George's father, George T. Guthrie, and his wife Maude, of West Los Angeles, were named the principal defendants. Sha is lisfcd as an heir of his first wife, Florence, who died five years ago. The HOLC claims $7,103 due on the property. Philadelphia, Aug. 1. The Philadelphia manager of every major exchange was called to tha witness stand in U. S. district court here last week to give the dis- tributors a generous foretaste of what they may expect should the Government's monopoly suit ever come to trial. Branch managers were forced to give three days of testimony as to the inner details of their contracts with the-Warner cir- cuit. And the already voluminous record will be continued from where they left off next month, when the national salesmanager of every major ; distributor'Is subpoenad to take the stand here. Undoubtedly only second in Its f.ir-reaching import to the suit by the Department .of Justice itself, this action by the owners of tha Landis theatre, Vineland, N. J., a;ainst the eight majors, their af- filiated companies and . the Warner circuit, was prepared following lengthy confabs with the attorney- general's office in Washington. It, is certain to wind up In the U.'S. Su- preme Court. Much testimony which Judge Wil- liam H. Kirkpatrick plainly con- sidered damaging according to tha tenor of his remarks was given by the exchange managers under the cross-examination of State Senator Harry Shapiro and his assistant, William Rudenko, represe!it.in,g the Landis. The facts which Shapiro and Rudenko are using In this ca.se were prepared for another one in which thpy were the counsel last fall. That ended suddenly when the Warner circuit decided to appease the exhib involved. Attorneys are determined to see this one through, however, and have an explicit agreement that in no case are the owners of the Landis to accept over- tures of conciliation and withdraw their complaint. City Fathers Back Exhlb Landis case has several unique angles which promise to give de- fense attorneys plenty of headache. First is that officials and prominent business men of the town, as well as the owners, are plaintiffs in the suit on the basis that Warner'* monopoly is injuring the community. Second is that not only violation* of the Sherman and Clayton anti- truRl acts are being claimed, as in p.asl suits, but a new law never be- fore invoked In a film case, tha Robin.son-Patman anti-price dis- ci iminalion act. Is being invoked. Last week's hearing was on • plea for a preliminay Injunction. Restraining order demanded asks for a free market In Vineland, with nil cicjrance abolished .so that the Landis and either of the two WB hou.so.s ran play day-andrdate. If the snme orice is charged. It also a.sks that Warners be forced out of the bii.sincss of exhibiting pictures there on the basis that distribution and exhibition by the same comnany is at the scat of all the difficulties. Court is requested to place the WB theatres in the hands of a trustee for oncration. Following the decision on the In- junction, Shapiro said, action for damages will be filed. Only Defense on Stand JudTc Kirkpatrick allowed only dcfen.se witnes.ses to take the stand last week and only for cross-ex- amination. The same rule will apply next month when the salesmanagers arp renuired to produce all of their n.-.t'onal contracts and the interlock- ing contracts between distribution and CNhibition affiliates throughout the cniihtry, Shapiro proposes to .show that they have divided the U. S. into zones in which they have given each other monopolies and can force indie exhibs out of busi- ness. All testimony except cro.ss-examl- ; natinn will be placed in the record ! by affidavit. First affidavits pro- j ducoci last week were from 21 citi- zens of Vineland. They stated that i (Continued on page 27)