Variety (Dec 1939)

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VARIETY PICTURES Wednesday, December 20, 1939 Haysites, Indie and Chain Exinbs Combine in a General Industry Drive to Bmsli Off the Neely Bill A vast campaign, under the guid- ance of the Motion.Picture Producers & Distributors Assn., against the Neely bill is in full swing throughout the U. S. Drive Is semi-educational In nature but admlitedly is designed to point out the so-called flaws in the measure which is due to come before the House of Representatives for consideration when Congress convenes next month. - Bill already has passed the Senate and only needs to be brought out of the House com- mittee before a vote may be taken. Industry observers claim the big- gest problem in directing the fight on the Neely measure is to familiar- ize representatives in sales organiza- tions and theatres with what the bill actually means. Haysians admit that their real task is to get people ac- qut Inted with the three vital provi- sions of the bill as contained in Sec- tions 3, 4 and 5, rather than 'comr pulsory blockbooking' and 'blind sell- ing,' the outlined purpose contained in the tiUe of the-bill. They are especially anxious to make it fully understood to employes and agents of a distributing company that they are liable under the penalty clause. This Is contained in Sect. 5 as fol- lows: 'Every person who violates sec- tion 3, or who fails to furnish the synopsis required by section 4, or knowingly makes any false statement In such synopsis, shall be deemed guilty of a misdemeanor and, on con- viction thereof, shall be punished by a fine of not exceeding $5,000 or by imprisonment for not exceeding one' year, or by both such fine and im- prisonment in the discretion of the court.' Film shippers, bookers, sales and general sales managers are held liable under this proviso. Synopsis Headache Problem for distributors and pro- ducers under the Neely bill is to de- cide how they will furnish the synop- sis of each production. There is nothing in the bill that requires showing of the film but a correct synopsis must be included, in the sale of each picture, this being made a part of the exhibitor contract. Thus a distributor can wait until each pic- ture is finally completed'and then write a stenographic version of what occurs. This apparently would be fool-proof. The other method would be to lay out a synopsis ahd then follow this carefully in making a production. Latter method is not favored because it doubtlessly would mean mediocre product and would mean infinite de- lay if the Hays production code of- ficials ordered any change in a scene. Confusion resulting from the PCA request doubtlessly woiild force the producer to refuse any altera- tions (because the film had been ■sold under the script being followed) or to scrap the whole thing and start over again. With reissues, a complete synopsis must be prepared on the version issued for showing and then at- tached to the exhibitor's contract. Opinion in the trade seems to be that synopsis provisions under the Neely act would be followed by making such synopsis after the film is in its finally edited form. How- ever, major company officials avet- that difference of opinion regarding whether a true synopsis has been incorporated in the exhib's contract opens the way for «ndless litigation. Ramifications of the bill further'pave the way for an inconceivable amount of court actions, major spokesmen claim. The Section 3 rules which would make unlawful the sale of pictures in blocks of two or more is the section which major companies object to most strenuously because, they argue, that eliminates the wholesale an^le in the industry. They fail to sec why film distributors should be pro- hibited from -efllng in wholesale lots when other industries are allowed such privileges. Major spokesmen contend that the price-control and accurate synopsis provisions are fan- tastic. " ' Neely's 25 PoInU Twenty-five things 'we are told the Neely bill will do for us' were listed by David Palfrcyman, of the Hays office, at the AMPA lunheon last Thursday (14) noon. Charles C. Pet- tijohn was another principal speaker. The AMPA members present .voted Havin' Any Fun ? Hollywood, Dec. 19. Elsa Maxwell checked in at Warners to write and star in a series of five shorts under the general title, 'How to G«t the Most Fun Out of Life.' First of the series Is 'Fun Without Money,' to be followed by 'How Not to Give a Party.' 'Fun Without Society,' 'Funny Side of Society' and Tun at Your Own Party.*' Whibnarsh's Estate Th« estate of Theodor* F. Whlt- marsh, who died May 12, 1938, was probated yesterday (Tucs.) In N.Y. Gross value was $2,792,169, and net $2,455,942. Whitmarsh was formerly chairman of the finance- committee of Famous Players-Lasky, as well as. an officer and director of many non-theatrical companies. Capra Declmes Another Term As Acad. Prez JESSE-HECHT'S DEAL FOR BIO STUDIO, BRONX starting date on shooting in New York of the CJeorge Jessel-Ben He'cht production; 'Before I Die,' has been set for Feb. 15, although deal with Empire Trust Co., which will provide. 25% of the financing in credits ' for use of old Biograph Studios in the Bronx, which it owns, hasn't been consummated yet. It' i$ understood that an arrange- ment has been worked out and ac- cepted by Empire, but Jessel and Hecht haven't inked it as yet. They are still shopping for a possibly bet- ter break. Biograph agreement calls for J-H to make one film, with op- tions. Empire would equip the now- vacant studios by Jan. 20. Jessel and Hecht claim to have set up a $225,- 000 budget for their picture. Al Christie, who 'will make three Alms for Monogram release, has also been in confabs with Empire execs on possible use of the Biograph lot It was originally understood that Christie had completed a deal for use of Electrical Research Products, Inc., studio in Astoria, L. I. ERPI would provide 30% of financing, which. It is understood, Empire is also willing to supply. Final ar- rangements haven't yet been made by Christie. Hollywood, Dec. 19. Frank Capra has turned down plea of his associates that he accept re- election as prexy of the Academy of Motion Picture Arts and Sciences. He said he had served two terms and that the post should go to some- body else. The new board ot directors of the Academy is composed of Capra, Ronald Colman, C. B. DeMille, How- ard Estabrook, Clark Gable, Mervyn LeRoy, Frank Lloyd, Robert Riskin, David O. Selznick, Douglas Shearer, J~ames Stewart, Norman Taurog, Walter Wanger, Sam Wood, Darryl F. Zanuck. Producers of short subjects have petitioned the Academy to make two additional achievement awards for briefles. They are asking an Oscar for short comedies and travelogues. Heretofore comedies had to com- pete with crime, dramatic and other productions. February 29 has been tentatively set as date for annual awards ban- quet. Leo Bergere Looms As GNs Angel; 3 Weeks Respite to Hammons Co. 150G Fonder Hollywood, Dec. 19. Absence makes Hollywood fonder of Fred Allen, who re- turns to pictures after three years to grab a salary three times the size of the one he dre-w for his last film. Understood the radio comic is getting aroimd $150,000 for his forthcoming co- starrer with Jack Benny at Para- mount. . 20th-Fox paid him about $50,- 000 apiece for playing in Thanks a Million* and 'Sally, Irene and Mary' in 1935-36. FINAL CONFAB ON REVISED COPYRIGHT What is expected to be the Anal meeting,, before Congress assembles next month, will be held at the Bar Assn. building, N. Y, tomorrow Ciliursday) by the conferees com- mittee of the Shotwell copyright group. They'll attempt to reconcile as many as possible of the points on which the various industry groups interested in copyright diller. Un- derstood there are eight or 10 such issues. Although it had previously indi- cated it would not present" a copy- right bill of its own, the Shotwell committee is iiow believed planning to introduce such a measure when Congress convenes. Sam Raphaelson Settles His $25,000 Fox Claim Suit of Samson Raphaelson against Robert T. Kane, which was to have started in the N. Y. supreme court yesterday (Tues.) was settled out of court for an unnamed amount. Author sought $25,000 for alleged breach of a writing contract for 10 weeks at $2^500 weekly,. made in the spring of 1938. Kane, head of New World Film, Ltd., 20th Century-Fox's English pro- rucing subsidiary, contended that the company, and not he, was responsible as in all negotiations he had acted as an agent of New World. Kalph Morgan West Ralph Morgan, Screen Actors Guild, president, planed back to the Coast last night (Tuesday) after at- tending a meeting of the Equity council. Kenneth Thomson, SAG executive-secretary, flies out over the weekend. He may be accom- panied by Henry JeSe, attorney for the Four A's, SAG and other per- former unions. Laurence Beilenson, who was in New York for two weeks' vacation, returned to the Coast early.last week. Stodio Contracts Hollywood, Dec. 19, George Reeves inked player pact with Warners. Metro handed writer ticket to Harry Clark. Warners hoisted James Stephen- son's play option. Russell Harlan signed new ticket as cameraman for Harry Sherman. Ami Baxter inked player deal with 20th-Fox. Universal lifted Frank Skinner's option as arranger-composer. Frederick Hazlitt Brennan drew pact at 20th-Fox. Warners picked up Orry Kelly's option as fashion chief; Kent Taylor inked actor deal at RKO. . • John Deering drew new acting pact at Warners. Metro haiided Kurt Goetz new writing ticket. William Tiiomas drew new actor pact at Metro, to name a committee to combat the Neely bUl. . Palfreyman's 25 points which he said were - claimed for the Neely measure follow: 1. Establish community freedom in the selection of films. 2, Relieve independent exhibitors (Continued on page 20) Foy Aides Hal Wallis Hollywood, Dec. 19. Complete elimination of B pictures, contemplated for weeks, was offi- cially announced at Warners. New program calls for 48 A productions. Bryan Foy was upped to. the post of assistant to Hal B. Wallis, execu- tive producer. ALICE FATE AS 'UL RUSSELL' Alice Faye, in New York to spend Christmas with her husband, 'Tony Martin, will go into The Life of Lillian Russell' at 20th-Fox as soon as she returns to the Coast. Studio has nothing else set for her beyond that. Pooling of Sound Film and Other Patents Under Justice Dept. Fire Washington, Dec. 19. Federal inquiry into the handling of sound film patents is likely when the Justice Dept. beguis its general investigation of pooling and licens- ing agreements which may involve breach of the. anti-trust laws and restraint of competition. Exact course of the prospective grand jury probe has been kept secret, but it is expected the Government will throw the spotlight again on the situation involving both motion picture and radio patents. The D. J. is known to have kept an eye on the patent situation in which American Telephone & Tele- graph, General Electric, Westing- hause and Radio Corp. of America are concerned, while repeated com- plaints from independent equipment makers have been presented to the law enforcers over a long period. Data gathered by the Federal Com- munications Commission and the Temporary National Economic Com- mittee also bears on alleged con- spiracies to shut out newcomers and squelch novelties. The Government has heard from various sources assertions that inde- pendent inventors have no outlet for their discoveries except the handful of powerful corporations in the electrical manufacturing trade, that improvements have been kept on the shelf to avoid inventory losses and keep up rental and licerise fees; that progress in both visual and aural entertainment arts has been retarded; and that the public indi- rectly has been mulcted. Conspiracy Suits Purpose of the grand jury pro- ceeding, which will open in New York City after the first of the year, is to lay groundwork for conspiracy suits, similar to the old radio trust action which resulted in compulsory cross-licensing and ^verance of ties between the biggest manufacturers. Policy statement by the Justice De- partment remarked on evidence 'showing a widespread tendency to misuse the' patent privilege', but did not point a finger at any particular line.- Attorney General Frank Mur- phy gave his consent for a broad inquiry to find out the extent to which 'certain industries in the United States are controlled and dominated by one or several large conpanies'. In elaborating on the motives be- hind the campaign. Assistant Attor- ney General Thurman Arnold re- marked that facts gathered by the Justice - Department indicate that patent rights have been greatly abused. Persons holding the papers have split business to avoid compe- tition, fixed prices, limited produc- tion and quality, discouraged invest- ment of new capital, and otherwise nullified the anti-trust laws, he con- tends. In this connection, the Justice De- partment appears to have subscribed to philosophy advocated by individ- uals trying to obtain sweeping changes in the copyright laws. The policy statement remarked that Con- gress under the Constitution has the right to issue patents 'to promote the progress of science and useful arts', not primarily to benefit inven- tors. Same contention has been ad- vanced at various copyright hearings, but this interpretation never has been accepted by House or Senate Committees. Even should the Reconstruction Finance Gorp. refuse "Grand National the $450,000 loan for which It has ap. plied, th« creditors' committee win told on Monday (18) that the com« pany's ship will not necessarily b« sunk. Leo Bergere, the mystery, man who popped up with an offer, of a $1,000,000 production fund, may sup> ply the additional $450,000, it wai said, if the RFC nixes the appU. cation. Creditors' committee has had a quiet investigation made of Berger« since he suddenly appeared before Bankruptcy Referee Peter B. Olney in court several, weeks ago with Hit $1,000,000 offer. They have found he has a good reputation abroad and li personally responsible though pos* sibly unable to handle the loan him. self. Nevertheless, it was discovered I that he has connections which make his obtaining the money entirely feasible. Committee's invcstigaton found tljat he was formerly an in- dependent distributor of Metro film in Rome, Prague and other European cities. He was reconuncnded highly by J. Robert Rubin, Metro v.p. Perhaps hurting the chances ot GN. getting the RFC loan was the death on Sunday of Congressman William 1. SirovicK. Dr. Sirovich was a close friend of Earle W.. Ham- mons, GN prez, and had been In- strumental in preparing Hammom^ way to ask for the loan. It is under- stood that his help was also being counted upon in the final request be- fore the RFC. RFC's Loan Further details of the RFC loan have also been made clear in ttie past few days. U. S. Corporation will loan GN the coin only if $150,000 li forthcoming from another source. This other $150,000 must be. paid to the RFC, which, in turn, will give GN its draft for a total of $600,00a Government, in this case, is being foxy, taking no chances that it tumi over its portion of the coin without the ot.'irr_ji!irf_beinK..fort!iccn?„-5^..'. Of the $150,000, two-thirds is from Electrical Research Products, Inc.; $25,000 from Loyd Wright, former trustee in bankruptcy of the old GN, as a private investment; $15,000 from National City Bank, and $10,000 will come from one of three laboratories;, either Pathe, DcLuxc or Producera, Incidentally, it is the latter lab, operated by Jack Cosman, that has olTercd to provide three standard features and several westerns to GN for distribution. The straight pix are 'Cafe CoUette,' 'In the Spring > Young Man's Fancy' and 'I Murdered a Count.' They are foreign made. Deal with Felt & Co., which was to supply GN with a $1,000,000 pro- duction fund, is technically still on, it was learned. Termer has been inked and Felt may supply the money when and if the RFC comes through. .However, since Bergere entered the picture, Hammons ap- parently has other plans. Both Bergere and Felt want control of the company if they put money into it, Irving Felt's deal providing for his outfit to be transferred a chunk of voting control stock each time it put money into the company. Under the schedule of payments worked out, It would gain majority control when it had put up $75,000. Felt also has option of paying coin in at once and taking control right away. As far as creditors know, no personal agree- ment has been worked out between Hammons and Bergere yet. Ham- mons would be retained as nominal prez under the Felt setup. Grand National's star burns bright- er than it has in the last few weeks since, on Friday (15), creditors of the company, by unanimous vote, granted Hammons a three-week ex- tension to Jan. 5, 1940, to carry on company business. TTie extension was result of a letter sent to the RFC on Monday (11) by Erpl. committing the recording company for $100,000 in "terms acceptable to the RK:. The finance company, Thursday, sent a letter signed by f: K. Ahearn, its N. Y. head, to Well- ington approving the loan of $450,000. It is expected that the HFC in Washington will act on the letter some time within the next fortnight- Bergere'. who at the .. last hear- ing cvid3nced interest in putting up money for the company, I old the court he' is working night and day on the books, and the way thmgs look now he hopes to put up proD" (Continued from page 9)