Variety (Sep 1939)

VARIEfY PICTURES Wcdneedaj, September 27, 1939 H wood Digs In to Trim Costs As Foreign Revenue Continues To Shrink; Schenck Asks Exhib Aid Hollywood, Sept. 26. With reports trickling into studios en the Aim market, production hends are intensifying their efforts to slash operating costs In every way pos- sible without disturbing quality of their output. Receipts of all com- panies from England and continental Europe have dropped 50-757,, under normal since declaration of war by . Britain and France, according to li- rancia) statements forwarded to the Coast by home offices. . While major portion of shrinkage is due to air raid blackouts and withdrawal of women and children from thickly- populated centers in two countries, decline in exchange rates i£ also ac- counting for considerable loss. Most pessimistic of the picture big- gies is Herbert Yates, Republic's chairman, who just arrived here after six weeks in the British Isles, and who is convinced that America will be dragged into the conflict within a short time. American ' exhibitors must bear their share of the burden if the standard of Hollywood films is to be maintained in the face of lost rev- enues from abroad, according to Jo- seph M. Schenck, 20th-Fox chairman and prexy of Motion Picture Produc- ers Association, before he departed for Mexico City and possibly South America to make a survey of the . outlook for increased business for U. S. films below the Rio Grande. Tlieatre operators, he declared, must share with studios the responsibility for seeing to It that the latter get sufficient in way of rentals for their product to continue in operation. Drop In Earopean Bevenue At the same time, Darryl Zunuck, 20th-Fox production chief, disclosed his company's returns from England and the Continent for the first week following the start of armed action by powers was only $109,000, as com- pared with better than $400,000 for seven-^j period preceding war's beginning'. He said the averal(6~de- cline in exchange rates ahnounts to 25%. Pointing out that the producers have signified their willingness to Myron Selznick Sned For ^45,000 by Scribe Hollywood, Sept. 26. Jules Furlhman, writer, filed a breach of contract suit for $45,000 against the Myron Selznick agency and demanded that the pact be terminated. Plaintiff, charges agency with .fail- ure to collect $15,000 from; Loew's, Inc., for his original story, 'Thor- oughbred.' He also asks $30,000 for alleged failure to render competent agency services. July B.O. Didn't Dip Too Mucb, U^. Amus. Tax Income Shows Washington, Sept. 26. Heal wave effect on boxofflces was discernible this week in latest ■Trea.sury Department reports on the , admissions tax receipts, but the drop wis smaller than usual. In contrast to past dives ranging from almost $34,000 to over $130,000, the change from July to August this summer meant a drop of only $20,781 in Uncle Sam's haul. Payments in the national ex- chequer last month, reflecting July, take, amounted to $1,513,468. This was one of the biggest sums for the current year: only $93,000 behind the 1939 peak. These figures are a,, guide only so far as admissions over 40c are concerned. Despite the slump, the July grosses were materially higher this year than in 1938, .as evidenced by a $86,406 rise over the Treasury's snatch In 1938. The third time this year that the total tax yield was bigger than in 1936. January and May were the other stanzas showing any improvement. After eight months the Treasury has pocketed $12,203,r42 from admis- sions. This is $186,692 behind the JOAN EDWARDS Variety said;—"On the stage, Joan Kdwards proves as fetching a warbler, as she Is over the ether waves. Ker charm and personality is well as her voico help to make slandoutH of such numbers as 'T..ady's In I.ove ' 'Sunrise Serenade.' She ha« a hard lime begTRlng otf." Appearlntr on Paul Whitcman'a Chesterfield Program every Wednes- day. Jfanagement HENRY DAGAND 1270 6U> Ave. New York City MH'S FRENCH B. 0.90% OF NORME Hollywood, Sept 26. In spite of war, 20th-Fox is doing 90% of its normal business in France, according to a cable to the studio from Ben Miggins, European man- ager, in Paris. Within a month, Miggins added, the film business there will be back to normal. Economy But No Wage Cuts, Yates' Rep. Orders Hollywood, Sept. 26. Economy without wage slashing is the idea of Herbert Yates, top exec of Republic, in the current campaign to whittle down expenses to meet reduced revenues, due to the war in Europe. Yates asked all his producers and department heads to submit sugges- tions for pruning studio overhead without reducing the quality of pro- duction or laying off workers in the lower pay brackets. Reports will be .submitted at a meeting late this week. L. A. to N. Y. comparable .1938 total and about make big pictures of highest quality ! $500,000 less than was received in the despite- Uie European situation, | same part of 1937. Schenck, in. formal statement, said: 'The responsibility of making these efTorts successful now rests entirely with the exhibitors. The millions of dollars invested in theatres through- out America would be just so much brick and mortar if the structure of film production collapsed. The ex- hibitor must, therefore, share the re- sponsibility of seeing that the stu- dios derive enough rentals to per- mit them to continue in operation. 'First of all, it is essential that ex- hibitors do everything possible to ex- -tend. .the...playing time_.pf pictures whenever public patronage justifies. Those pictures that have been show- ing for one week would, whenever possible, be held over for a second week, and a picture which definitely rates a two-week run should be ex- tended for a third week; three-day pictures should be held over for five or six days, etc. Calls for Shownunship 'In order to justify this, exhibi- tors will find it necessary to display greater showmanship and introduce new ideas. It can and must be done to insure a return to the producers that will compensate for decreased revenues elsewhere, for only by in- creased rentals from the theatres of this country can producers be as- sured of revenues commensurate with the bigger type of pictures. Producers are willing to go to any , length and expense to make great pictures, and they have every faith that the public v/ill support them, A high standard of quality in pro- duction has been attained, as evi- denced by the fact that American- made films are recognized as the fin- est by the amusement public of the entire world. This leadership. must not be sacrificed, nor can the stand- ards be permitted to be lowered. 'For their part the producers are keeping operating costs as low as possible. But no economy measures by the studios alone could offset the great loss of European revenues if a high standard of quality is to' be ■ - maintained. 'It is therefore up to the exhibitor _ now to malce this high standard of qualify possible.' l^iiliK-y I'laire Hclly Kleld r':(hniiiMl (iDUIOInt Will »Hyr W. Ray .1ohni<loa .larob Kiirp .feroine Kern Robert T,or<I Harry RUz T.oulfl Rhiirr .Tohn WIMbcrs Orson Wellen - RKO s Staggered 10-50% Salary Cuts Pro Tern; Others Retrenching Also WiHie Collier Comes Back to New York Town Paris Very Q.T. Few details regarding the film in- dustry in France have been received in the last week by home offices in New York, presumably because a strict censorship has delayed mail reaching this country. While some theatres are open and operating, the French' government has clamped on currency restrictions and is allowing ho coin to leave the country. Bulk of information received lately 'has come via cable. In Paris, Paramount still is pro- ducing its French newsreel while other American reels are getting out their continental issues. Arrange- ment apparently has been made for joint coverage of news in France. N. Y. to L. A. Htnry l-^Wihkenliorn | Pjit rusty Krml Klynn NIcU (:rln<le i*ht»NKi- I.RlttKht IBcrl^ MorroB J, J. MIlKteIn Herbert RosenlhAl .Mr. fin<1 Mrs. Rkh- nrrt Thorpe Pranklyn "Warner DEFER FRANK MURPHY BANQUET; KEPT IN D.C. Hollywood, Sept 26. Becau.se Attorney General Frank Murphy was held in Washington due to 'unusual conditions prevailing at this time,' the Motion Picture Demo- cratic Committee postponed the din- ner in his honor. He was to have made an award to the producer whose pictures con- tributed most to democratic ideals. Rogell Ends Stay at U Hollywood, Sept. 26. Al Rogell wound up his two-picr ture 'deal as producer-director at Universal and checked off the lot. Deal with an indie studio is in negotiation. Other News of Interest to Films Radio reviews: 'Big Town' (E, G. Robinsdn-On?. Munson), Walter O'Keefe show. Screen Guild Theatre Page 26 Joan Blondell-Maxie Rosenbloom radio show Page 27 Buddy Morris-Johnny Mercer's own music firm Page 37 Flippen Vice Cantor .Page Al Gene Austin attachment off.... Page 41 Sophie Tucker's answer Page 41 •New act: Marie Wilson , Page 47 Picture co.s' legit financing .set ....Page 49 Stooges may leave 'Scandals' Page 49 Thomson vice Gillmore unlikely now Page 49 By BILL HALLIGAN Willie Collier (George M. Cohan calls him 'Kid') is back in N. Y. town from his vacation in Holly- wood. He was gone eight years. Bill got tired of beating Bill Fields on the golf course so for exercise he built a house in Beverly Hills. He built it strictly for laughs. All . the carpenters he had working for him were straight men—that's hitting the nail right on the head. Bill built the bar first. It's in the playhouse in back of the chateau. The first day the excavators got there Bill invited them-back for a drink and at noon they were all playing bridge. One of the excava- tors bid four spades and Collier handed him one and told him to go to work. After the world's series ill .says he is going back to Hollywood for another vacation. He had a chance to play 'Dracula' last year but be- fore he got to the studio the casting agent changed hia mind and played the part himself. His last produc- tion was a pip—just to get even with Cohan, Buster's wife had a baby bom on the 4th of July,—but in London. Buster is Bill's son. Bill says Broadway hasn't changed q bit; it's the people. He started as a call boy for Daly and finished as the star of the organization. Back in 1903 Collier was the star of 'The Dictator,' Richard Harding Davis' great comedy. In the cast were two kids playing their first parts—Tom Meighan and John Barrymore. •The first part Bill ever played was in the Eddie Foy show, 'Blue Beard, Jr.' He and Jimmy Sullivan were a team. They played Ostagazponda and Ostagazoof, two undertakers at a doctors picnic. Collier moved out to St. James, Long Island, to get away from his sun-dodging pals but it didn't work. The gang went oul there just the same. It was so far from New York in those days, they 'would stay down there for a rnonth. So Bill organized the St. James Col- lier's Giants. Bill was the captain and catcher, Lionel Barrymore played first base, Frank McNish ('Silence and Fun') was the short- stop, Johnny Hyams tHyams and Mclntyre) was the second ba.seman, Tom Lewis was the pitcher, Jerome Sykes (the star of 'The Billionaire') was the third baseman and umpire. Charles Frohman wanted Bill to come to town to rehearse in 'The Man From Mexico' but it interfered with a ball game and so the cast came to St. James and stayed three weeks. Mrs. Collier's cooking was so good the leading lady gained 10 pounds and wouldn't talk to Collier for a month. Then carne a smash hit, 'Caught in the Rain.' Mr. Frohman had a great British star, Marie Tempest in London, and got the idea that as America had never seen Miss Tempest and Lon- don had never seen Collier that it would be good business to have Collier play for two weeks in Lon- don and Miss Tempe.st two weeks in New York. They were both big hits. Collier stayed in London two years. Miss Tempest was a sensation in New York. Then Bill and Sam Bernard teamed up and later George M. Cohan and Collier played all the Friars Frolics as a team. They slill talk about, it on Broadway. Well Bill is here for the World's Series (he never misses one). Let's hope that one of the New York teams wins the pennant every year. Broadway woiild be pretty dull without an occasional visit from Bill Collier. The .salary reductions agreed upon in RKO following a jession of its higher executives in New York Sat- urday (23), become effective the week of Oct 2 and, in percientage, it is understood, will range from 10% to,as much as 50%. Cutting of the payroll to meet the emergency caused by war and loss of foreign revenue, will affect the entire RKO organization throughout the world, including the studio and foreign posts. Avoiding the reduction of lower- salaried employees and any measures to drop people entirely, the tem- porary slicing starts at S.S.OOO. Re- ported percentages agreed upon are 10% on salaries ranging from $5,000 to $10,000; 20% on those from $10,000 to $20,000; 25% between $20,000 and $30,000; 30% where the income is from $30,000 to $40,000; 25% within the range of $40,000 to $50,000; 40% for all salaries between $50,000 and $75,000, and 50% for all earning $75.- 000 or upward. Only a handful will be affected by the 50% reduction. Among these at the home office are George J. Schaefer, president, and Ned E. Depinet, v.p., in charge of distribution. At the studio, where producers, directors, stars and others are under contract, it Is expected that it will be a matter of negotiation in prevailing upon all who come within the salary reduction range to play ball in behalf of a need to impose economy imme- diately. An angle in this connection, as well as with eastern executives who take ' a reduction, is that the higher the sWlary goes the more the U. S. Government gets, and that a cut, bringing the rate of income tax down, makes the difference in loss correspondingly less. There Is. also the angle among artists or director* that protection of the source of in- come is something to consider. Schaefer returns to the Coa.st the end of this 'week, under plan^. He will no doubt supervise the inaugura- tion of the cut at the studio. Minor economy measures have al.so begun at Paramount, but not known whether any salary cuts will be en- forced. It is reported that the. com- pany considered a temporary reduc- tion in view of the war of 20% throughout the entire organization, but that this was tabled in view of the tear that morale would be dis- turbed by any sui:h drastic action. There has been some shearing of the payroll, however, with out.s re- .sulting Friday (22), and throughout the company every effort Is being m.ide to save on operating a;id ad- ministrative expense.s. While only a handful of le.ssers were let out at the home office Fri- day (22), jhe Paramount News and lab lost a total of 20 persons, includ- ing Carl Peterson, cameraman, who accompanied Commander Byrd to the South Pole. Par home office is far from overstaffed, and since re- organization has virtually been op- erating at the bone on per.sonnel, it is highly doubtful there will be any more layoffs, unless they are very scattered and minor. Voluntary salary reductions in United Artists are possible following reports that Murray Silverstone had, on his own, decided to take a cut SAILINGS .Sept. 22 mew York to London) Russell Muth, Bonney Powell (Washington). Sept. 22 (Genoa to New York) Simone Simon, 12 Chester Hale Girls, Jim Witteried (Vulcania). • ARRIVALS (At the Port o/ New York) Ezio Pinza, Billy Nelson. Irene Knight, Dave Miller, John Reading, Dorothy Toy, Paul Wing, Nicola Mascona, Ernie Mack. Leiouts No Solution To H'wood's War Problem Hollywood, Sept. 26.. Wholesale ' firing of Hollywood'* wage earners is not the answer to the economic problems arising from, the European war, Samuel Goldwyn told the film industry in an open letter to the heads of the Screen Actors, Writers, and Directors Guilds and to Joseph M. Schenck, president of the Motion Picture Producers Association. As a better approach to .solution, Goldwyn suggested that producer.";, guilds and craftsmen meet in friend- ly discussion, to study all phases of the current crisis and work out a program for the good of all con- cerned. Full approval came from Ralph Morgan, SAG prexy, who promi.'.ed to sit in at any conference with the other picture groups. Schenck okayed the general idea but said It was 'somewhat premature' to adopt a definite policy in view, of the un- settled conditions in Europe and the lack of reliable data on the future of film revenues from abroad. Gold- wyn is still awaiting word from the other groups.