Variety (Aug 1939)

2 VARIETY PICTURES WcdnesJay, August 30, 1939 WARNERS' INDEPENDENT ACTION ON SALES MAY FORCE OTHERS LIKEWISE In View of Competition, Enlarged Concessions Loom NO FILM LOBBY IN D. C. As Inevitable—WB's 20' the Same as Offered by the Code . + ; Reject on Privilege Is So Declares Petdjohn In Rebuttal to Book's Allegation Although some producer-distribu- lois would be more adversely af- fected than others, all are facing (he immediate prospect of revising sales policies to conform to. the inde- pendent action taken, by Warner Bros, in permitting a higher can- cellation and testing of pictures to determine the price brackets in ■which they will be delivered. While some of the lesser, nation- ally organized distributors may be reluctant to follow the Warner lead, the question of competing with WB and any other large companies.vi^ tually forces them to consider en- larged concessions. United Artists is the lone major that is certain not to grant a cancellation of any kind but it may bow to the testing plan. UA does npt force a score charge on its accounts. Columbia never did. The WB rejection privilege of 20% where the average rental is not more than $ldO is the same that the trade practice code offered, although Warners has eliminated the 15% in those theatres where the rental ran from $100 to $250. Under the new Warner. policy, the cancellation right will be 10% for accounts that are paying over $100. The average arrived at is on individual engage-, ments whether pictures are played one day or a week. ~s, . Because the new WB pblicy is likely to immediately hypo sales for that company throughout the coun- try and Canada, other majors are mulling similar concessions for quick submission to accounts in order to protect themselves. There could be a vast swing aWay from other distribs to Warners Vnl'ess the same 20% cancellation could be also obtained elsewhere. Since the ma- jority of rentals average less than $100, serious loss of ;dccounts not already closed could be sustained if theJWarner lead isn't followed. Less of a Gamble; for WB The gamble that WB is taking, with as much as one-fifth of its en- tire product subject to cancellation with the greater proportion of its ac- counts, is not as big a one for that major as, it would be for others. WB during the past season has main- tained such a high standard of qual- ity, both with its 'A' and 'B' pictures, that Giad Sears is reported to have even recently considered the elimi- nation of selling of each film strictly on its merits. Metro, which uses a sliding per- centage scale on rentals as an al- ternative deal, and also tests pictures to determine allocations, would not find the concessions made by War- ners as competitive as certain other <listribs might; thus this company might be the first to fall in line. UA, Mono and Rep were not be- hind the code and were not signa- tory to it, although presumption among the major distribs was that Mono and Rep would have to use the code, once it was ready for adoption by other producer-distribs. Although the code included arbi- tration and provisions relating to preferred playing time, right to buy, Overbuying, availability of some run, clearance and other practices not em- bodied In the new Warner policy, otherwise it offered a cancellation up to 20%, and all the distribs under the code would have had to grant that. They also would have to grant a 15% rejection privilege on' film averaging from $100 to $250 in rentals. / For the reason. that the code,; agreed to by seven of the distribs ! (WB, Metro, Par, 2pth, RKO. Co-', lumbia and U), would have meant three different cancellation sciales up to 20%, retroactive on all deals for '39-40 product, it might be that the distribs. In the position now created by WB,, will ultimately feel . they may as well go along, on that score at least Some may not want to test their product before arriving at bracketing, however. This is not an entirely new stunt with Warners. The company last season also test- engagemented certain features be- fore deciding how they should be allocatedL Lion Bites Man Hollywood, Aug. 29. Howard Strickli'ng, who never forgets a Metro exec's birthday, was handed a jolt when Louis B. Mayer tossed a luncheon in his honor. It was his own natal day, the only one he ever forgot. Strickling was so stunned by the enormity of his-social error- that he missed three strikes be- fore he could respond to the popular clamor for a speech. On the fourth attempt he said: 'Thanks for the buggy ride I have been gcftling for the last 20 years,' whereupon he sat down' to contemplate the new radio presented by the guests. Strickling is L. B.'s Boswell. Echo of Bobby Breen Unit's Loss Last Xmas In $4,962 St. Loo Suit St. Louis, Aug. 29. The Bobby Breen revue last Xmas week in St. Louis Municipal Audi- torium cost the promoters $12,315, ac- cording to the. figures in a suit filed at Clayton, a suburb, last week by S. A. Weintraub against Larry At- kins, who was associated with Wein- traub and Earl Reflow in the ven- ture. Wcintraub's suit against Atkins Is for $4,962, which he alleges is 40% of the loss. According to Wcin- traub's petition, he and Atkins and an unnamed third person, entered into a contract to produce a series of entertainments during Xiiiasweek. Forty percent of the profits were to go to Atkins, and Atkins also was. to share the same percentage of any losses incurred. The loss was $12,- 315, Weintraub declares, and he and the third person in the venture paid. The third person assigned his claim on Atkins to.Weintraub, the petition recites, therefore Atkins is indebted to Weintraub for the full 40% Weintraub alleges he asked Atkins for payment but was refused; Atkins and Weintraub engaged in fisticiifTs last February over the losses. The battle occurred at the Arena during an Ice hockey game when Atkins approached Reflow to discuss the Breen show, and Wein- traub interrupted. L. A. TO N. Y. .iHck .kfi'uvvpr W. E. rnilowny J. Ohrftvr*!- (.'owOIn .lohh Dolph ifari'v Celler (icorKo Hflypn T'Miry Hnlcoiiib Wnller HuuOilnson .roj»e Iturbl Hpit I.ahi: .ifijiu T^nndftn BesB Iton'ei'Khn Arlhu^ S. Ivyons Joe NftUell Daniel T. O'Phea KdnA ^lay R«ed a^tm Rholnp.r Harold Rowe Robert Saunri.f^fB Spyrns Skouras Ed. Sullivan Oeorce Smith Mai.lorle Waalen Uanlel AVcIln Danny Wlnltler Harold ■Wyckoff N. Y. TO L. A. Assertion that the motion picture industry maintains one of the big- gest and most efficient lobbying or- ganizations in Washingtori was termed 'quite a compliment but ridiculous' yesterday by Charles C. Pettijohii, general counsel for the Motion Picture Producers & Distrib- utors of America.. The lobbying charge appears in a book by Ken- neth Crawford, New York Post cor- respondent in Washington, which will be released about Sept. 25. Titled 'The Pressure Boys;'-it-is- to be published by Julian Messner, Inc. Pettijohn declared that the pic- ture industry's entire representation iii Washington consists of himself, Burt New, former secretary to a Senate committee, who has been with the MPPDA for 12 years, iind James Fitzgerald, who is a general assistant in the office. The entire expense of maintaining the modest two-room headquarters for the in- dustry is insignificant, Pettijohn said. He declared he would stand by his testimony before the committee con- sidering the Neely bill last April 3. At that time he stated;. 'There has been a lot of loose talk about prop- aganda, and I have been accused of personally sending propaganda to members of the Senate and of the Interstate Commerce Committee. I have not so much as sent a postal card to a member of the U. S. Sen- ate or to any member of this com- mittee, and I am willing to make that statement under oath.' Pettijohn returned from Europe on Monday. He declared it was im- possible for anyone to say. what is going to happen over there and its potential effect on foreign film mar- kets. 'It's a poker game,' he averred. N. Y. THEATRES TO COMBAT PARI-MDTUaS r.Htirence Bt-llenuoh l^ildie Huzscell Treni (*Hrr Khi-I <'an-(ill Srolt H. Diinl^p rharlen Klnfvld l.nrry- Colob Snnja llcnl« Ralph Morffan T.aurenco Olivier liOorKe Raft AoHct von Siv'rnberg .lan)0§ Stcwiirt Kenneth ThomBon .lack Trop Dame Mfiy WItUty Roland Younff Roundabout Sales Reasoning Although the threat of trouble in Europe is. distinctly only a sec- ondary reason for laying off on the making of deals, exhibs are giving considerable thought to it. Their angle is that films will cost less In the event of a major fiare-up. In the first place, it Is said, with producers losing their foreign markets, they will severely trim their budgets on all pictures prom- ised. Product will thus be of lesser quality than now projected and EO worth less in rentals. Exhibs figure, in addition, that with'an abundance of war news and the interests of friends and relatives in foreign countries at stake, theatre attendance will suffer. That, too, will necessitate smaller rentals. Principal reason, however, for the holdup in buying is that mo.<:t Indie houses in more or less outlying sectors, because of their late runs, won't get the first of the new product imtil Oct. 15 at least. Therefore there is no hurry in signing up. Sears New WB Sales Policy Conceded 'Perfectly Timefty Others in Trade COL FINDS STRAWHAT TALENT PICKINGS OKAY Sub rosa confab of execs of the various ends of the film industry was held in Manhattan last week to out- line a plan for combating the pari- mutuel amendment lo the N. Y. state constitution. Last session of the legislature passed an enabling act to place on the ballot in November a proposal for legalizing the machine method of wagering on the nags at tracks throughout the.state. Film interests are frankly out to do everything in their power to de feat the pari-mutuels, figuring they will attract many more patrons to the gee-gee ruiis than , the present hand-books, and siphon off potential theatre patrons. Only preliminary plans were discussed at last week's meeting, with several more chinfests designated for the near future. Sam Marx, story and talent scout for Columbia Picts, reports better success in the strawhats this' sum- mer than most of the other film companies. Marx has been lining up an array of talent and has them . in. readiness for tests this week, witli Col. prexy Harry Cohn supervising. Latter returned from Europe Mon- day (28) and went into the new tal- ent and script possibilities imme- diately 'with Marx. Both return to the Coast the end of this week. Cowdin Back to N. Y. After Survey of U's New Production Sked Hollywood, Aug. 29. J. Cheever Cowdin, Universal board chairman, planed back to Mew York Monday (28). He passed two weeks at studio on product talks with Nate Blumberg and Cliff Work. Universal is hitting a new produc- tion high, with seven major pictures budgeted at $3,000,000 before the cameras; all available space filled and a new record for employment. Features in work are 'Green Hell,' 'Tower of London,' 'Rio,' 'First Love,' 'Listen Kids,' 'The Man from Mon- treal' and 'The Galloping Kid.' JEBSEL'S COL. FILM . Columbia would like George Jes.sel to produce a comedy film if it can find a suitable vehicle, Jessel plans to shape his radio activities to fit into a schedule whereby he will make at least one picture a year. Other News of Interest to Fibns Buying pool looks cold ....Page 12 Hungary's pix-legit for '39-40 , ........Page 12 Leslie Howard on film board ;Page 12 Release Malneck, Joe E. Brown Page 24 Metro's radio plugs for 'The Women' Page 25 C. & S. tops all-time C. A. B Page 27 Brown with Joe Penner Page 27 Radio reviews: Jimmy Durante, - George Jes.sel, Alia Nazi- mova, 'Let's Take in a Movie' .Page 28 Television Page 30 AFRA stories .Page 32 Ruth Chatterton dickering play Page 41 Hollywood names to Milwaukee Page 42 SAILINGS Sept. 8 (London to New York), Chevalier Bros. (Normandie). Aug. 30 (London to New York), Mr. and .Mrs. Bob Hope, Harry M. Warner, Dan Carroll, David Rose (Queen Mary). ■ . Aug. 30 (New York to London), Mr. and Mrs. Billy Bis.sett, Joe Ter- mini, John Goulston, Veioz and Yo- landa (Normandie). Aug. 29 (London to New York), Mr. and Mrs. Dick Henry, Ruth Draper (Champlain). Aug, 26 (New York to London ),"" Robert Flemyng (Maurelania).-?j.„ Aug. 25 (New York to' EcTenos Aires), Guy P. . Morgan, Clemente Lococo (Uruguay). Aug. 24 (London.to New York), Mr. and Mrs. W. Dwight Whitney (Adrienne Allen) (Washington). Aug. 24 (New York lo Paris), Ed- ward Johnson, Efrem Kurtz (He de France). Aug. 23 (San Francisco to Hono- lulu), Edgar Bergen (Malsonia). Aug. 17 (London lo South Africa). Mr. and Mrs. Richard Tauber, Willy Stettner, S. Boswell (Capetown Cas- tle). ARRIVALS (At the Port of New York) Lee Shubert, J. J. Milstein, Jack McKeon, Harry Cohn, Steve Fitz- gibbon, Joseph A. McConvlUe, Mrs. Howard Dietz, Colin Keith-Johnston, Edna Best, Gilda Gray, Norma Shearer, Constance Bennett, Sonja Henie, .Baburao Patel, C. C. Petti- john, George Raft, Russell Muth, James Stewart, Josef on Sternberg, Erica Marini, A. E. Matthews, Tom Helmore, Eddie Buzzell, Ruth Et- tirig, Norman Krasna. Reaction of major distribulor.<^ following announcement of Gradwell L. Sears, head of Warner Bros, sales, of change In selling policies for next season, was non-committal last week. Sales heads were seriously studying WB intentions and several gave in- dications they would issue state- ments of their own, but wavered in. this intention and wound up by re- fusing to make any statements at this time. Most of the major companies viewed the Sears move as a smart piece of timing. While claiming that there was not much that was startlingly new in Sears' statement, and that the, policy of fixing sales classifications'of a picture, after key city test runs determined what per- centage brackets a picture would ba sold in, had been followed pretty generally this past year by at least two other major companies, there was a feeling that Warners will, now give practical effect to many parts of* the fair trade practice code which distributors had been preparing to offer the exhibitors. Exhibitors queried on the new Warner policy agreed that Sears had taken the leadership so badly needed among distributors; had the confi- dence of exhibitors generally; un- derstood their problems more than other sales heads, and is willing to play along with theatre owners to a greater extent. Barney Balaban, president of Par- amount, had little to say other than • to comment that Sears' statement 1.1- not as radical as it sounds. He said the question of whether Paramount would follow Warners' lead was up. to Neil F. Agnew. Latter so far- maintains complete silence. There was one notable difference between the Warner stand on can- cellation and the provisions which were contained in the code, now de- clared a dodo by reason of the U. S. Department of Justice attitude. Un- der the code, distributors were will- ing lo allow a'maximum 20% can- cellation of a group of pictures, ot which the average rental was $100; 15% of pictures averaging between $100 and $250,'and 10% of pictures costing over $250. The Warner pol- icy, as announced allows 20% can- cellation of pictures averaging under $100, and 10% cancellation on groups costing over $100. The 15% cancella- tion provision has been eliminated. I,The effect of this, while negligible, is thdt.only 10% instead of 15% cf pictured bought, averaging between $100 ^hd $250, will be allowed the cancellation, privilege by Warners. The provision whereby Warners will set classification of their pic- tures within 14 days after national release date, does differ from the practice followed this past year by Metro, for instance. Latter company has been determining its top bracket percentage films after test engage- ments in small towns throughout tha country, but had never fixed a defi- nite time and irrevocable terms to govern, this being left up to indiv- idual handling in each specific case. Warner executives were elated by the reception of its new policies among theatre circuits in metropoli- tan New York last week, most of the response being highly compliment- ary. A Sales SUmDlus Sears looks to the new .sales policy as a stimulus for early buying by exhibitors and to materially increa.xe sales. In explanation ot why he chose this particular time to an- nounce new concessions to theatre owners in the sale of Warner prod-, uct. Sears stated that he felt the time had come when somebody had to let exhibitors know what distribu- (Continued on page 19) I '.11';.^ '1 i \J I', li"