Variety (Sep 1939)

^C^ednesdayt September 6, 1939 PICTURES VARIETY U.S. MOTHERS NK CRIE PIX FIX TAKES BOW ONLOWCOSTS OFDISTRIB. Publication of a quasi-Govern- mental report last week showing average cost ot distribution of all types of products in the United States to be 59% is leading the film execs, harried by Department of Justice charges, to do some pointing with pride. Average distribution cost in the motion picture industry is only 20%. This report proves better than any other answer we can make to the Government monopoly suit that we have achieved an intelligent and eflicient distribution system,' a lead- ing industry official said yesterday. He pointed out that it is this sys- tem, worked out over a period of years, that enables an exhibitor to buy for $7.50 or $10 the use of a product which cost perhaps $1,000,- 000 to make and of which the print iUelf costs $250. System allows the most complete possible use of the product to bring the cost down to a minimum for each user, it was said. On the other hand, it was declared, while oranges sell at six dozens for a quarter iri California and thousands of tons rot on the ground, they are luxuries in practically every other state, because of failure to achieve an efficient dis- tributing system. Passage of an anti-block booking bill would raise film distributing costs from the present 26% to 42- 45%, it is claimed. MONOGRAM'S $41,641 NET PROFIT, SIX MOS. Annual report of Monogram Pic- tures Corp. for 26-week period from Jan. 1 to June 30, 1939, shows a gross operating profit of $333,120 and a net ot $41,641. Since Mono has changed its fiscal year from Dec. 31 to end on June 30, this is the first report since the change was author- ized last January. In the report W. Ray Johnston, president, advises stockholders that in the six months just closed num- ber of contracts reached total of 6,700, as against 6,108 for the previ- ous fiscal period. Company's busi- ness in the United Kingdom showed a marked increase over the last six months of 1938. In computing the earnings siate- ment, it is revealed that Monogram is now amortizing its output on a basis of a 78-week perio' after re- lease date. In connection with recent $225,000 bank loan from the Guaranty Trust Co., under the bank agreement Mono has pledged a number of its nega- tives as collateral. Film receipts as collected are to be deiosited in a trustee bank account and no funds permitted to be withdrawn for oper- ating expenses without permission from Guaranty. Loan Is being re- paid at the rate of $25,000 per month, first payment being due 90 days from Lite of the loan. Pathe Laboratories, Inc., a prior creditor to Guaranty, has agreed to subordinate it3 first lien position in respect of $172,415, to that of the. bank. NOW THAT IT'S ALL OVER With tliat characteristic keen regard for the proper dramatic touch at what is known as the psychological moment, the threatened 'war' be- tween the 4 A's, representing the acting and singing talent of the theatre, films, vaudeville and radio, and the lATSE, organization of stage employes and film operators, has been called off by bolh factions, and replaced by a peace agreement of deep emotional content, consistent with theatrical tradition. In other words, the American amusement industry has escaped from a .devastating inter- union battle, and has rescued itself from a pre- dicament, which, if permitted to take its full course, would have tossed the entire fentertain- ment business into a bitter and prolonged struggle. unhappy picture of a branch of entertainment that has contracted almost to the. diminishing point, except for a handful of attractions in New York, with occasional lightings of the- atre marquees in Chicago, Boston, Philadel- phia, Los Angeles and San Francisco. A mighty art-indiistry, with unfulfilled promises of employment for thousands, is in desperate straits. Responsibility for this sad plight does not rest entirely with theatrical union labor, but any material and. lasting betterment of con- ditions must spring from within the organized theatre groups, or an institution that should be a strong factor in American life will con- tinue to fade into insignificance. The cheer that boomed through the lobby of the Hotel Astor, New York,,on Sunday night (3) when Frank Gillmorc announced to 4,000 4-A members the amicable outcome of last minute peace negotiations, was a mixture of joy and a sigh of relief. A threatened strike was no longer in prospect. Friendship, good will and fellowship were established with the lATSE. An 8:45 p.m. enemy had become an ally at 8 :50, Reviewing all that has taken place over the past two years in the relations between the lA . and the. several actor union groups, it was inevitable that discordant issues sooner or later would reach the point of impasse, de- manding full and complete settlement. That the negotiating groups, representing both op- posing factions, liad the good sense, patience and authority to iron out differences and reach a clear line of jurisdictional demarcation prompts commendation from members of all factions. With harmony between the creative and act- ing talent on one hand, and studio union lalior on the other, there is bright hope that enlight- ened leadership will aid the film industry through a period, the complexities and prob- lems of which no one at the moment can ac- curately analyze. Hollywood's film industry has grown on the bounties of a world market. Its production schedules and cost sheets antici- pate revenues from countries now at war. To what extent production will necessarily be cur- tailed to cope with the new conditions none can accurately gauge at the moment. It is fortunate that the immediate future is not fur- ther darkened by a .strike and its consejquent drain upon the industry's resources. But there is readjustment to be made in Hollywood. Of that there should not be the slightest doubt. H' Studios Called to Time by ~ Parent - Teachers A s s n s. After Other Desists Ignored —Keep Kids Out of Theatres A theatrical union war, heightened by em- ploye strikes in theatres, film studios and radio broadcasting, would be little short of tragic. To have taken place at the very mo- ment of tense public feeling and deep concern over the cataclysmic events in Eiirope would have paralyzed a. vital American institution— the amusement industry. It just couldn't hap- pen. Yet how close to actuality it was is well known to principals and thousands of union members. Gillmorc made a plea that show people now should turn tlieir backs on the past and look towards the futurCj that bygones should be bygones, and that tlie theatre, in all its branch- es and ratnilications should strive for a new goal. His remarks along these lines were greeted with quite as much enthusiasm as the announcement of satisfactory settlement of the jurisdictional issues. And well they might, because the entertainment world, within and outside, faces critical and complicated prob- lems. As for the variety and vaudeville artists, what of them? And what of their field of op- eration, once so broad and lucrative, and now confined to night clubs, cafes, hotels and out- door amusements? It is just one more dra- matic item in the general script that the threat- ened union strife originated with a branch of endeavor that is scarcely a shadow of its for- mer healthy and prosperous self. Now that the status of the variety artist has been defined, so that he takes his place in union ranks with his more fortunate brothers in the other branches, just what will be done, for him? Union membership, without employment and the hope of economic progress, is a hollow privilege. From within, not from without, must come leadership that will reclaim the rightful place for the workers in the American entertainment industry. A divided and strife-torn structure promises nothing. Single purposed determina- tion to create something strong is the hope of the future, the outstanding constructive ele- ment in the settlement of recent differences. MUSICALS, COMEDIES By BOB MOAK Hollywood, Sept. 9. Hollywood's era ol crime pictures has faded into an inglorious dissolve.. Springing up as its successor is a cycle of co:nedies and comedy- dramas, to say nothing of a return of musicals. That is the way American moth- ers would have it. Be there still those who doubt the effectiveness of film censorship as imposed by old Judge Public Opin- ion, let him consider carefully the . fate meted out to the cops-and-rob- bers yarns. By withholding from their offspring the dimes and quar- ters formerly passed out for use as theatre admissions, the mothers of these United States have a;:com- plished what neither the Hays code administration nor state and mu- nicipal blue-pencilers have been able to do. Mere mention of gangster fare to exhibitors nowadays draws from them the same degree of enthusiasm with which they might greet-an ap- proaching epidemic. Underworld pics, they are loudly proclaiming, are currently as p6isonous at the b.o. as dictators are to peace. Having too long ignored the hand- writing on the wall, producers are now engaged in a frantic search for new phases of entertainment, es- peciatlir'fOirttlelr B divisions, which have been, by far, the worse of- fenders from the standpoint of crime output. Doing the most thorough about-face on , underworld vehicles are 20th-Fox, Universal, Paramount, Metro, RKO and Republic. War- ners,' which profited most from the now unwanted type of offering, Is slashing its mow-'em-down contribu- (Continued on page 46) Hard as the road has been thus far, the path ahead presents equally difficult obstacles to be met and overcome. For the first time in the history of American amusements tlifire is cohesion among the rank and file of its workers. Long Thne in Saddle Gene Autry has a lot of riding to 00 when he returns from London, with three pictures on his Republic schedule in 60 days. Idea is to clear "is slate before reporting to 20th- Fox for his one-picture commitment With Shirley Temple. Three sagebrushers are 'Rovin' Tumbleweeds,' 'Down By the Old MUl Stream' and 'Grand Old Opry.' Roy Rogers gets ofl his horse and plays a straight role for the first time in 'Jeejiers Creepers,' rolling tomorrow (Wed.) at Republic. Dismounted cowboy co-stars with we Weaver Bros, and Hvlry, In the legitimate field there is required an- almost complete overhauling and reconstruc- tion of the commercial structure in order that the artistic forces may be put to useful and profitable work. A glance at legitimate book- ings, carried weekly in Variety, presents.the The 4 A's now faces an extraordinary re- sponsibility—not only to its members, but to the industry and the public as well. How the organization meets that challenge will be the test of its right to its present position. Ratoff Ends Rest Cure, Directs 'Daytime Wife' Hollywood, Sept. 5. Gregory Ratoff has been assigned to direct 'Daytime Wife,' the Tyrone Power-Linda Darnell co-starrer, due to roll Sept. 11 at 20th-Fox. Ratoff recently emerged from a Santa Barbara sanitarium where he had been taking rest treatment since he directed 'Intermezzo' for David O. Selznick. LAUREL, HARDY SCOUT COIN FOR OWN FILMS Hollywood, Sept. 5. Bankrolling for their own pictures is being negotiated by Stan Laurel and Oliver Hardy. Comics would be their own producers after pact with Hal Roach expires. Team has three more four-reelers to close out their current deal. Court Upholds Brown's Walkout on Percenter Col.'« 'Page' Replate Hollywood, Sept. 5. Howard Hawks gets the directorial job on 'His Girl Friday,* a replate of 'Front Page' at Columbia. Film rolls Sept. 15. co-starring Irene Dunne and Cary Grant Heating Up the Boards Hollywood, Sept. 5. 'Broadway Melody of 1940'' is under way at Metro, now, with Eleai- nor Powell and Fred Astalre dancing before the cameras. Norman Taurog is directing and Bobby Connolly handling the dance routines, . • ' Los Angeles, Sept. 5. Tom Brown was justified in break- ing an agency pact with the Small Co.. under a ruling by Judge Henry M. Willis in Superior court. Agency had sued for $15,000. Court held that the agency's fail- ure to procure work for the actor over a period of four months was sufficient to terminate the contract Trada Mark RcsKtcred rOUNDBD Vr SIME Sir.VRRMAN I'ubllahed V/ttMr hy V.tRIETY, luc. Sid .Silverman, President 15< West 46th Street, Now York City SUBSCRIPTION ■Annual tlO Forelen Ill Single Coplea 2S Cent* King Stays at Par Hollywood, Sept. 9. Paramount has picked up Louis King's director option for another year. Currently he Is piloting 'Typhoon.' Vol. 135 IM No. 13 INDEX Bills 40-31 Chatter 46 Dance Bands 33-34 15 Years Ago 38 Filn> Reviews 14 Film Showmanship < Forum '.. '47 House Reviews 39 Inside—Legit 44 Inside—Radio 30 Legitimate ....42-44 Literati 45 Music ...33-34 New Acts 38 Night Clubs 35-38 Obituary .... 47 Outdoors 47 Pictures 2-21 Radio 22-32 Radio Reviews 28 Radio—International 31 Summer Tryouts 44 Unit Review. 38 VaudeviUe 35-38