Variety (Nov 1939)

1^ VARIETY PICTURES Wednesday, November 29, 1939 Coast Studios' Labor Mess Seen Further Helping LaGuardia s Drive To Bring Some Production East Union strife on the Coast which, during the past weelt, had the whole industry jittery, together with the ever-present dariger ot increased taxation, more ham-and-eggs move- ments, etc., is reportiedly encouraging producing quarters to go along on Mayor F. H. LaGuardia's campaign to move some film-making east. In circles close: to the situation, it is believed that the LaGuardi:^ battle to get film production for New York is of such timeliness at present that even more than the lOCi asked for may be shifted from the Pacific. Producers are declared in the mood to do anything to wriggle out of the clutches of the Coast union setup and, in labor quarters in New York, leaders are high on the pros- pects of an about-face by the film companies in view of Ihe troubles Par Ties Jones for Three Hollywood, Nov. 28. Allan Jones' deal with Paramount was renewed for three more pictures, beginning with 'The Coimt of. Lux- embourg,' scheduled to roll late In January, Singing actor leaves tomorrow (Wed.) for two weeks at the Para- mount, New York. He recently com- pleted 'The Great Victor Herbert.' Film will be concurrent at the Par. 20TH-FOX TAKES OVER TTJRRErFROMGOLDWYN Judge to Set U. S. Trust Suit's Trial Date on FrL Trial date of the Government anti- trust action against the major film ; companies will be set Friday (Dec. j 1) by Judge John C. Knox In N. Y. I federal court. The companies will I confer today (Wednesday) with Paul I Williams and William Farnsworth to I clean up the questions of inlerrogn- I tories. It is expected that the U. S. will seek a date of trial in March, 1040, claiming that three months are sulTicient to enable air defendants to prepare answers. The Government expects to be able to answer the film companies' interrogatories, which will be served on them Friday, within that period. It is expected that this will meet with opposition from the defendants who will seek a six-month delay, leaving any com- promise to Judge Knox to decide. Since ."several months ago he indi- cated that he felt the issues should be tried at the earliest convenience for all, it is likely that a trial before summer will be assured. Can t Take It, Eh? Sudden stoppage of Warners series of satirical shorts in Technicolnr. is attributed to a double protest. One is understood to come from Samuel Coldwyn, Vtrho considered himself caricatured by the linguistic boners affected by Fritz Feld in the role of a foreign dictator. Pro- ducer is said to have threatened to withdraw his picture from Warners theatres unless the comedies were dropped. Second protest is declared to have come from the Motion Fictiire Producers Assn. fearing that the public might g^t the idea that all film execs were screwballs. Two pictures, written and directed by Crane Wilbur, were titled 'Out Where the Stars Begin' and 'Swingtime in the Movies.' They cofl between $30,000 pnd $40,o6o each. that are constantly cropping up in Hollywood. • Union higher-ups point with opti- mism to the action taken by the Central Trades & Labor Council at a recent regular bi-monthly meeting when a resolution Avas passed as- suring producers that there would be no trouble with studio crafts for an uninterrupted period of five years if they would set up shop in the east. It is pointed out that perhaps the time is getting ripe for the producers to go for that kind of a deal and hinted that if a five-year agreement could be negotiated, it might even be at the same scale as now. If an in- crease were negotiated, it is then added that the producers would save in the east, as against Hollywood, because they wouldn't require the same number of men per produc- tion. Eastern Unions to Co-op The feeling is that the producers, with -LaGuardia and banking inter- ests prodding them, may be inclined, in view of labor conditions out west, to test the possibility of closer harmony on the Atlantic coast. Union officials in the studio crafts point up the fact that there has never: been any trouble with labor on the eastern end. and there is no. likelihtiod of it in the future under what is . termed a more or less 'handshake agreement' policy. Resolution concerning ^ace for five years, it producers wanted to talk turkey to the New York unions, goes far beyond the studio crafts themselves and, having been passed before the Central Trades & Labor Council, would mean the a.isurance of all labor, including the A.F.L., in that connection. Thus, no one union ox. for that matter, all of the studio crafts, could be expected to kick over the traces and go back on such an agreement. Studio unions In the east are ex- ceedingly strong for the proposal to build a Cinema City for as many producers as want to participate. The mayor is warm for « production- center development and understood that the matter of financing it is sim- ply a detail following numerous con- ! ferences that have been held with | money men. Under plans drawn, it Hollywood. Nov. 28. I Twentieth-Fox bought Samuel j Goldwyh's entire investment in 'The Sweetheart of Turret One,' cur- rently in preparation, for a price un- derstood to be $50,000. Deal includes ' the ."services of Jon Hall, top-billed, and Niven Busch, who is working on the screenplay. Sale indicates that Goldwyn will halt studio activities for several months with the comple- tion of 'The Westerner,' now before the cameras. Unusual deal is the second made by 20th-Fox in recent weeks. The other was the purchase of 'The Great Commandment' from Cathe- dral Films after the picture had been completed. 20th Answers Fannie Brice; Other Actions Chicago, Nov. 28. Twentieth Century-Fox last week ' filed answer to Fannie Brice's suit for $750,000 damages for alleged de- famation of character in the pic- ture, 'Rose of Washington Square,' denying that the film had any con- nection with her and that all the I characters were fictional. „ , , .... ,, .1 Also set forth that the story, of Deal tor u.se of the old B.ograph j-g^^jg g^ice and Nick Arnstein was Jessel-Hecht Setting Old Bio Studio Lease studios in the Bronx by George Jes' sel and Ben Hecht may be com- pleted with the owners, . Empire Trust Co., tomorrow (Thursday). Numerous talks have been held with bank execs and all det:.ils have been worked out except the actual amount of coin to be paid for use of the studios. Empire, as its part of the deal, will furnish the Biograph location to Jes- sel and Hecht fully equipped for lensing. It is now vacant and equip- ment will be purchased as soon as final papers are signed. J&H will rent the studios on a daily basis, but their agreement gives them first op- tion rights for its use for production of the three films which they have slated. Lone Ranger Sues Rep. For $10,000 on Serial The Lone Ranger, Inc., filed suit in N. Y. federal court yesterday (Tuesday) against Republic Produc- tions, Inc., seeking $10,000 damages plus an injunction to restrain fur- ther production ot the serial. i Also sought is permission to ex- would cost upward ot $10,000,000, it', amine the defendant s books as, un- has been estimated. ! der a contract, the plaintiff was to Schacfer Sees M-iyor receive 107i of the gross of the se- Meeting with producers and others rial after $390,000 was reached, during the past week, including < George J. Schaeter, the mayor may huddle today (Wednesday) with the studio union committee, consisting of Sol J. Scoppa of Studio .Mechanics, Local 52, who had been very active oh the campaign from the beginning; Florence Marston of SAG; Fred Marshall, United Scenic Artists and Charles Downes of the cameramen's union. Schaefer's conference with the mayor,, at which the president of RKO stated he would be glad to co- operate, without defining what moves might be made by that major, was held Friday (24). Nelson Rocke- feller, with whom the mayor has dis- cussed the. N. Y. film-making cam- paign several times, talked to the city's chief exec the same day. LaGuardia has al.so gone over the What, Again? Hollywood, Nov. 28. George O'Brien rescues the same gal for the third succcs-sive time in his untitled western which rolls to- morrow (Wed.) for RKO. Femme lead is Virginia Vail. completely public, and finally, that Miss Brice continues to earn consid- erable money as a performer, so that the picture couldn't have harmed her earning capacity. LaVarrt's WB Appeal Albany, N. Y., Nov. 28. William LaVarre's suit to collect $50,000 from Warner Bros. Pictures, Inc., for. story material which, he claims, was used in two films, 'Bed- side' and 'Gambling Lady' was argued in the Court of Appeals, highest tribunal. LaVarre appealed from a dismissal of the action in N. Y. supreme court and affirmed by the Appellate Division. He claims the producers engaged him to write a scenario, featuring Warren Wil- liam, to be called 'The Bedside Manner.* The work was rejected, ac- cording to appellant, but plot later was employed in 'Bedside.' Similar- ly, scenario material turned out for a Barbara Stanwyck starrer sub- sequently appeared in 'Gambling Lady.' LaVerre alleges he received no compensation in either case. The Bedside Manner' story was, writer says, the beginning of a cycle of popular, lucrative motion pictures ; dramatizing the medical profession. Company contends both films were ■ produced from original stories ! written by other authors and gen- : erally denies LaVarre's allegations. I It credits authorship of the first pic- I ture to Manuel Sett and Harvey Threw; the second to Doris Malloy and Ralph Block. Studio Contracts Hollywood. Nov. 28. Paramount hoisted Wanda Mc- Kay's player option. . Universal handed John Sutton nev( j actor ticket. I Phyllis Brooks drew new player • pact at RKO. Chaplin No Pirate Los Angeles, Nov. 28. Charges of plagiarism against Charlie Chaplin, involving the pic- ture 'Modern Times," was to.^sed out of superior court. Michael Kustuff, Ru.<:sian author, claimed the actor had pirated his script. matter with John D Rockefeller Jr., | 20th-Fox lifted June Gale's player and understood the Rocketeller.s, I option who are deeply in RKO and operate , uajj^s j^^gj g^^j^^ ^ the Music Hall, are very much in I Metro accord with the mayors oftcnsive. i william Brent drew a writer ticket Another angle, so, far as RKO is 20th-Fox concerned, is the attitude of Floyd Odium. He favors production in the east; it is declared, and is of the London Court Reverses Eliz, Allan's 17G Award London, Nov, J6. Court of Appeals has granted ap peal by Metro (British) against an award of $17,000 to Elizabeth Allan, film actre.ss. A lower court decision hac been in favoi.ot Miss Allan. Miss Allan sued for breach of con- Creditors to Ask Permanent R'cVr For Grand National Today (Wed.) Or That Earle Hannnons Step Out Metro signed John Wray to two- '"'^ ^amaces, alleging the com- pany engaged her to play Christine in 'The Citadel.' The Mjsler of the Rolls (Appeals judge) refu.sed per- Murphy'B picture player deal. ....... . ■ I Metro hoisted George opinion that pictures carj be made as option. good in New York as in California I Leslie Fenton inked new director i mis.sion to appeal to the House of (Continued on page 18) i pact with Metro. I Lord;, Finale for Grand National is ex- pected to take place this afternoon (Wednesday), when creditors of the company, which has filed a voluntary bankruptcy petition, meet once again with referee Peter B. OIney, Jr., in N. Y. federal court. Creditors, who last Friday (24) named Joseph Dan- nenberg their counsel, are set to ask that a permanent receiver be ap- pointed to liquidate the firm or thai Earle W. Hanvmons. GN prcz, be forced to put up a $50,000 bond to cover any future losses if he desires to continue operation of the business. Inasmuch as the bond Idea was suggested by the referee, and cred- itors believe that Hammons will l>c unable to furnish such a sum in view ot the company's present prospects, it is expected Hammons will be forced to relinquish control. Only thing that could possibly give him'a reprieve would be proof positive that he has obtained a loan from the Re- construction Finance Corp., for which he has long been dickering. Inas- much as the creditors have a1.«o had communications from the RFC that this is unlikely, they fljel it is time for them to step in. Referee last week said he would acquiesce to their desires on this. The moment the bankruptcy is complete, however, a combine ot bankers, production and distribution men Is ready "to step in and buy the assets, which they consider princi- pally to be the exchange setup. They are prepared to establish a company of their own and will facil- itate this by buying up GN it it can be accomplished without getting themselves involved in litigation. In- cluded In the new propo.<:als are sev- eral important creditors of GN, who naturally don't want to. take over until bankruptcy purges its present debts. Hammons' Plea for a Week In an attempt to stay the appoint- ment ot a permanent receiver, Ham- mons on Monday (27) sent out a mimeographed letter to all creditors asking their indulgence for another week and promising he'll have the RFC money. Creditors are in no mood to wait, however, as the result of an event of last Friday (24), and some may take further legal action against Hammons individually. Many serious allegations were made be- fore Referee OIney. A big burnup was the refusal of Hammons to allow Thomas J. Shana- han, chairman of the creditons' committee, to attend a confab, as per Olney's orders, among Hammons, T. K. Stevenson, prez of Electrical Research Products, Inc., which was supposed to have advanced $100,000 for GN's reorganization, and Thomas J. Ahearn, N. Y. rep of the RFC. When Shanahan was informed that the meeting was to be at a private luncheon by Steveniion, who told him he wasn't invited, Shanahan called OIney. OIney was away and another referee instructed Shanahan to attend and pay for his own lunch. Stevenson continued to maintain that he didn't have to invite anyone he didn't want, to his luncheon. Meeting of the creditors' . com- mittee was held later in the aft- ernoon, with Hammons invited to attend and report what progress he had made at the earlier confab with Stevenson and Ahearn. He phoned to say he had nothing to report. Shanahan reported he had talked with Stevenson a few minutes be- fore, who told him Erpr had no $100,000 commitment to GN. Allege $4,600 Weekly Loss A second meeting of creditors of Grand National Pictures, Inc. was held Wednesday (22) before referee Peter B. OIney Jr. in N. Y. federal court. At this meeting, Joseph Dan- nenberig, attorney for a ' cicdilor, continued his attack on the comp.my and told the court that after an in- vestigation of the books of the com- oany by A. Jesse Goldstein, his sr. countant, he was convinced Ihiit the company was hopelessly insolvent and was losing not the $2,000 weekly as testified to by Earle Hammon.s president, but over $4,000 weekly. In this statement he was backed up by Goldstein who informed the court that taking amortization and depre- ciation into consideration the .vum would be $8,000 weekly. Creditors committee, representing diversified interests was chosen. They are Thomas J. Shanahan. a banker, representing Jerome D. M.iguiie, a secured creditor holding $22,000 in claims; Hap Hadley, roprrsenling himself, with $730 in claims; Richard F. Walsh, v.p. of the lATSE, irpre- senling \yage claims; Henry Wald- man, representing William Boin. of Cincinnati, a landlord, holding $1,159 in claims; Allen E. Freedman. of De- Luxe Laboratories, representing $19.- 000 in claims; and Samuel Sedran, representing small creditors, $366. There were two nominations for tentative trustee, Harry Frombcrp, attorney, 320 Broadway, being elected. He must post a bond of $20,000. Dannenberg then explained to Ihe court what he meant when he sitid the company was hopelessly insol- vent. He pointed out that trade- marks and reissue rights are rur- ried on the books as the main n.<:.set, and supposedly worth $1,060,922. This is a jump from a figure of $12,166, which was the amount first listed, the attorney claimed. He accu.scd the company of selecting an arbitrary figure, and putting it on the books so that a.sfets overbalanced liabilities. The referee agreed that $1,000,000 was more than could be expected In a sale for the rights to trndemaik.s, biit it was pointed out by Rogers that the RFC loan could not be se- cured if GN were out of busine.s.'^. in which case the company might just as well fold now. Hammons declared that the RFC would not loan the moiiey if it felt that the company would fold imme- diately thereafter. As to the leases, they are being left in a status quo position, as the referee pointed out it the plan goes through the company will need them, and if it fiiils they will not. Safier Drafts New Deal For GN Western 'Changes- Los Angeles, Nov. 28. New distribution arrangement's fo'r Grand National product ha.s been worked out for Salt Lake City. Port- land and Seattle by Morris Safier, company's western district 5;.les chief. • In Portland and Seattle GN prod- uct will be distributed by former exchange workers on a percentage deal, and in Salt Lake City former company employes have been pliictd on a new salary arrangement to hct as distributors. Los Angeles exchange emplo.ve.s were given wage checks lor .week ending (25) upon return ol Siilier and have been paid in full to d.'ile with exception, of two weeks w;n;fcs waived, one in July and other in October. Claims for both Ihf.'^e i weeks have.been filed and employes, as preferred creditors, will prob.ibly be reimbursed when financial dclii'Is of company finally are worked <'iil- W. C.Riter, for the past two yt»>s manager of GN exchange hert, n- sighed,