Variety (Jan 1940)

Wednesday, January 3, 1940 Thirty-fourth VARIETY Annitersary latevnational 75 .^4MMMnttt1t»ttttt«ttt»tttttttft»ttft1tt1tMtt :: Italy Emphasizes. Monopoly Terms As Price of U.S. Bizi; ; 44M M M I t t t t t tt t t t t f * t ********** By Hugo Speck Rome, Dec. 20. Film biz was a flopperoo in upper case for the Yanks in Italy .thisjsar. Hegardlcss of who is justly to blame iw Hollywood's withdrawing from the Italian market, the fact still remains that Mussolini's Italy has been a mammoth zero as an out- let of the bigger American , produc- ing companies since they withdrew from distribution here the (Irst of the year. And despite all that has been said on either or both sides of the At- lantic about the Yank product go- ing or coming back into Italy, ofli- ■ cial sources here state there is no chance of American films again be- ing distributed here unless it is under the terms of the monopoly. In a last miriutie check, VAniBTT obtained official word that the Ital- ian government 'is in no position to allow American films into the country under any terms other than those set down by the monopoly.' To enlarge upon the subject and more, fully explain the Italian point of view, the .spokesman contacted had the following to say: Strictly Economic Clamps 'Italy would be glad to see Amer- ican films here again. It is not a question of politics with us as some American observes seem to think, but one of economics only.' The spokesman stressed that al- ways, and more especially since the war began, Italy is doing everything in her power to become self-suffi- cient in every Ileld. That means in her scheme of controlled economy she can only afford to allow a lim- ited amount of valuable foreign ex- change needed to buy raw materials to be spent on films. 'y{if would like to have American films,' the informant continued, 'but we can only offer so much for them. And the monopoly is in no way against any particular country. We buy French and German films under the same conditions which the Amer- icans refused. It is not our fault if w can only spend so much and no mote.' Asked about the numerous reports tbat had arisen abroad that Italy was now negotiating for the purpose of 'coming to some arrangement' which would allow the Americans to re- enter the Italian field during the coining yeaf.-.the informant denied that any . such move had been made. "But we arc always ready to listen to proposals,' he continued. He emphasized, however, that those proposals would have to be within the possibilities of the monopoly Universal Looks Out ' He also asserted that the contracts which Universal now has with Kal- ian distributing companies will not 80 far as he knew, be continued for the coming year. "There is no ques- tion of carrying on the same rela tlons under the same terms,' he said. 'It was only because contracts with Italian companies were signed before the monopoly came into effect that they were allowed to con- tinue this long.' During the current year, the Uni- versal contract called for something like 1^. films being distributed in Italy. But it will evidently be an- other question for the 12 months to come. Just what kind of arrange- •nent, if any, will be reached could not be determined at this writing. That any American films coming into Italy in the future will have to come under the terms of the mo nopoly was also expressed by Bruno Mussolini, son of n Duce, in a recent Issue of Cinema, a mag of which he Is the editor, young Mussolini's offi- cial position is well known in Holly- wood, so his words take on a special significance. While being more lenient towards what the future nught bring for the Yanks than was the official spokesman, the Duce's son had the following to say when speaking of the absence of their aims from Italian billings: It is not that I don't like Amcr lean aims. I have been, on the con "^ary, one of those who has always mamtained that in certain respect.'! jne American cinema is superior to ine European. However, the mo- tn .u """^ """St respected tinn P'"°'ection of lUlian produc- 'on. A few more American films m t. o"'" "^'y- ''"t certainly not with direct distribution.' Open for 36 U. S. PIx tuf'""" Musiiolini went-on to say 'nat the problem of furnishing prod- uct for the. Italian cinemas for this winter's season had been settled, but he admitted that for the coming year it will be another question. But even with the European production cut to at least half by the war and the Italian market deprived of that product, he still believes that 30 Yank films will be a sufficiency with the Italian, output on the increase. There is a place In Italy for about 30 good American films,' he wrote, 'and if maintained In such numbers they will not be dangerous for Ital- ian production.' The 30 films to which Mussolini refers evidently mean those of the small indies that are willing to sell for a set price, or old pix which can be picked up from various sources and palmed off on the Italian public as late productions. U. S.. Absence Dents Biz That's from the official standpoint, but Vaiiiety was. also assured in other circles that the lack of the American product has put a great dent generally in film business here. Certain distributors are not reluct ant to admit that the absence of American films has greatly reduced the cinema-going public and done much to destroy this most popular form of ordinary amusement. The unusualness of a trouble-tom year, with the clouds of war hover ing over the northern frontier from the first of September' until the end of the year, also took its toll on the b.o. returns of every kind of amuse- ment, cinema included. Politically, it was one concentrated headache af- ter another and that unsettled condi- tion was felt all along the line. Des- pite a comparatively quiet summer, the usual number of tourists was lacking and the needed foreign ex change they would bring remained on the other side of Italy's frontiers And in this respect the year to come promises nothing better. A meeting of the Fascist Grand Coun- cil early in December reaffirmed Italy's alliance with Germany. The country's, determination to remain a non-belligerent was also reaffirmed But with the latter contingent upon the workings of the former, it can not be said that 1940 will be a year free from all worries and that the delicateness of the situation will be removed. All of this means that Italy cannot be expected to change anything of a capital nature in her foreign policy for some time to conie. Problems more weighty and far-reaching where the future of the country is con- cerned, than that of film importa- tions, will have to be confronted and decided during the coming months. So it is not now expected that any radical changes .can be expected in the immediate future. Little Hope Some quarters were inclined to draw some measure of relief in the appointment of a new Minister of Foreign Exchange in the cabinet shakeup in October. It was then thought that because of his liberal views some change in the monopoly might reasonably be expected. Reliable sources alway stated that the Ministry of Popular Culture was against the monopoly, but could do nothing as it was imposed by the Ministry of Foreign Exchange. So, when Riffaello Riccardi was ap pointed the new minister, it was be- lieved some change would be pos siblc, as it was thought he would allow a more supple adjustment in the matter of importations. While American films cost Italy $1,000,000 in gold each year, their ex- clusion from the market here means a loss in revenue of $5,000,000 in the form of taxes on films, dubbing costs, duties and work lost by hundreds of Italian employees. But if Riccardi is. inclined to lift the limit on how much can be spent abroad for films, no indication has so far come forward. Tp the con trary, those hopes which arose with his appointrhent have just about dis appeared, as Italy more than ever is bending every effort to become com- pletely self-sufficient. With the poli- tical outlook being what it Is, this is not believed to be the propitious moment to change any of the del cately balanced machinery of for- eign exchange. On the other hand, if some means of obtaining a greater amount of for eign product is not found, many quarters predict a film shortage here before 1940 is out. It is true that Italian production is Increasing at good clip, with 100 pictures being i claimed as the output of the cal-' cndar year of 1939. In all fairness it must also be said that the qual- ity—taken on a proportionate basis —is also improving. But this will not answer the needs of the market here, which is clocked between 250 and 300 films. With the Americans out and European production outside of Italy on the downgrade, i. is any- one's guess where the pics will come one's guess where the picts will come from, particularly since Italian production facilities aren't sufficient to meet the exhibitor needs. So with the political situation being what it is (many quarters are predicting that the fireworks will spread during the coming spring), and officials saying the Yanks will not be allowed bi>ck in the market here on their own (Americsn) terms, it looks like a red, year "for ! ^""^ around 99% of British exhibs the cinema business here during are not only members but wanted to Shaking Out The Shut-Downi By E. J. Hinge (President, Cinematograph Exhibitors Association) London, Dec. 20. Showmen got up on Sept. 3 to find themselves closed down. Got up? 1 know war was announced at 11 a.m., but it was Sunday and I'm talking about showmen. So the next day fun and games began, I happen to be—well, not 'hap- pen;' I was elected—president of the I Cinematograph Exhibitors' Associa- \ tion (C.E.A. to you and hereafter) 1940. In any case, there is nothing in the cards at the moment that al- lows any optimism either from the Americ9n or the local viewpoint. So if this year was a flopperoo, the know what their Association was going to Jo about it. And wanted tp know PDQ. So did the distribs. Especially the I LONDON YENS | FOR LAUGHS i! t»»*«»««»♦♦♦♦♦♦♦♦♦«♦♦♦«< By Joshua Lowe I,ondon, Dec. 20. Throughout the past year, with very, very few exceptions, legitimate show business was deflnately on the skids. There were, of course out- standing exceptions, and several hold-over successes which kept up remarkably well. This time, with notice from the. Government that on declaration of war all places of amusement would have to close down, the producers suspended all preparations for forth- coming attractions, and the entire show business came to a dead halt. In due course the picture houses were permitted to remain open until 6 o'clock, at which time of year it was still broad daylight. Gradually staggered hours were inaugurated, and the time for some of them was extended to 11 p.m. One or two theatrics tried matinees only, but this was far from profitable, and later they were permitted to keep open until 11 p.m., the West End houses being the last to be accorded this privilege, because of the shut- ting down of transport facilities which, in event of an air raid, would cause terrific congestion in the neighborhood of Piccadilly Circus. The immediate effect upon the legit .houses was the cutting of prices for seals, as it was figured some in- ducement should ,be accorded the customers to travel from the out- lying districts to London's nerve centre. Producers are still loath to risk a heavy type of show, as past experience has proved that in such parlous times the 'tired- business man' and servicemen on leave evince a desire for the lighter forms of amusement, especially comedy and musical entertainment. Only 2 Serious Piays At this writing there are only two serious plays on the boards—one in the West End, the other in the Vic- toria district. The West End one is a revival of Elmer Rice's 'Judg- ment Day' at the Phoenix. This is a relatively small gamble with one set, and while the cast is long, there are no important salaries. During the play's New York run, the char- acters by inference, were adjudged to be of Nazi officialdom, but with the revival they are now unmistaka- bly identified. The other is Priest- ley's- 'Music At Night' at the West- minster, and the cast is on an 'if basis. The house is small and an inexpensive one to run. They are doing well enough to continue in- deflnately. All the other shows are of the next ap^ars as though'-fi may . be t^'^^'Z^tn^iX.Z concatenation of all-time phenomenal epics the world had ever seen. They even had contracts for good films. For wasn't the fall season just about to begin? (Has anyone ever figured when that fall season starts it's usu- ally the exhib who is the Fall Guy?) Joint Trade Committee Anyway, we set up a joint trade committee by the following Wednes- day and went to the. Home Office. We told the Government the film trade's standing charges were more than $5,000,000 a week, and some of this would have to be unloaded by wholesale staff cuts unless we opened up our theatres. We told them how already the public morale was suf- fering and anyway Mr. and Mrs John Q. Public were safer inside modern cinemas than on the streets or in glass-roofed saloons and cafes where they were alread;- gathering in mobs. By Saturday, Sept. 9, only, six days after the shutdown, we had succeeded in persuading the Home Office to let us open in 'reception' and some neu- tral areas. 'Reception' areas are places to which kids, oldsters, sick and others have been evacuated; 'neutral' areas are where folk stay put if they want. There was a catch in this part- opening. We had to close by 10 p.m. And the idea was f ull of anom- alies. Shows in some evacuated bor- oughs were still shut with others a block away open because they were just over the border of a borough whict^was a 'neutral^ area. So "e hiked down to Whitehall some more, and especially on Wednesday, Sept. 13, told the De- partment all about the snags. ' By now our agitation was front-page news. Leg-men lounged against the sandbags round the Home Office por- tals for hours waiting for our depu- tations to come out. Picture- snatchers shot us as we went in. The war hadn't warred, and news was short.. .so was showbusiness ad- vertising till all the shows opened up again, but that had nothing to do with our news value, of course. 75% Off But with more than half the the- atres stiU dark and the rest losing a good 25% of their cash customers through early closing and blackout, we were at a point where we had to consider what we were going to 'do about keeping on staffs any longer. A large part of us were now in the second week of carrying them on the payroll with nothing in the kitty. Exhibs aplenty were readying to shut down on paychecks and air the workers. But they responded 100% to a request from the C.E.A. to hold up on this for another week. Re- member, this meant carrying around 30,000 employees on capital.. .if the bank would up your overdraft! And we asked our members not even to give their staffs notice be- fore the following Friday, which would still mean carrying workers lighter kind, mostly musical; the re- some a week, others two and even mainder farcical, and one of them is i four weeks more, on pay. In this a comedy with a whodunit back-1 country (sorry, it's territory, isn't ground. The three outstanding sue-1 it, Mr. Hays?) workers don't take cesses are 'Under Your Hat,' at the ; their time and quit or get fired at Palace, which went on tour with the I a moment's notice. They get any- outbreak and returned to resume ' thing from one week to as much as its London run; 'The Little Dog ' six months' notice to quit according Laughed,' the 'Crazy' Gang show at | to law and the custom of their par- the Palladium, and 'Black Velvet' at i ticular job. the Hippodrome. Both the latter arc ; Thus it is not a rostrum bromide playing two show.'; nightly and three -if I say here the way in which every matinees. With 15 performances a ; member of the C.E.A. responded to week, they arc mopping up. i this call to give the workers a break On this .showing, the apparent in-1 is a striking tribute to their loyalty dication would be little immediate to their Association, chances of any new production: but' Now from Home Secretary, Sir on the contrary, no West End le.siit John Anderson, we got action. By theatres are available, all of them Friday, two days later, all picture having been optioned by shows , houses were allowed to reopen, but cither being tried out on the road, still with a 10 p.m. curfew, except or in active preparation, Ian area which the Home Office mapped as the West End, which had to go dark at 6 o'clock. This general opening went for all other 'places of entertainment'; they got the benefit of the film trade's persistence and work. We only got the info on this from the Home Office late jn the Thurs- day evening, and believe me our telephone bill at Head Office went, up 1,000% blowing the good news to branch offices and circuit heads all over the Kingdom. But were there headaches ahead! More than half the shows had been dark two weeks and the rest a week, and if any foreign manager in New York does happen to know anything about this territory's release system, with its bars, late runs and what have you, he'll be able to figure the jam the whole business was in. Not to mention most of the big distribs having scampered to the wilds of Devon and other spots sup-, posed to be safer than London. Shifted Playilalcs—More Woe Anyway, we fixed up an arrange- ment with the distribs association (KRS) to shift playdates two weeks on and play spat-booked substitutes. More trouble! What distribs dug out of the junk bins and asked 50% for as 'substitute' was nobody's busi- ness. And that same nobody's bus- iness was what they registered at the boxofficel Exchange managers pulled all the rackets and gyps they had out of their beards and then thought up some. more. Substitutes? It was ersatz. Meanwhile the: CEA found that, although we had got the Home Of- fice to agree to a much smaller area as the West End, the 6 o'clock cur- few was losin« those in the area their shirts. Arthur (G-B) Jarratt closed up the Tivoli, New Gallary and Astoria. Earl (Par) St. John did ditto to the Carlton. Same went for Stoll's Kingsway house, and the rest of the West End houses were threat- ening to follow suit unless something was done. Staffs were under notice, and losses were running around $150,000 ■a-weekv -Soon 2,000 employees would . be out. Then, after more deputations. Home Secretary Sir John Anderson said he would consider staggered closing time for the West End if we could figure it out, and on Scot. 27 a deputation spent over two hours at the Home Office battling over plans to stagger. By Sept. 29 we got 14 houses let out of the West End and open till 10, but in the center of town 10 thea- tres still had to pipe down at C. By a week later we got Whitehall to agree to putting these into two groups, one staying open till 10. the other till 6, and alternating weekly. It was soon found this didn't work so well, either. Not so bad on the 10 o'clock week, but the next week at 6—curtains! If Max Milder put a super into"the Warner, the edge for the 10 o'clock week just blunted like an old razor blade the next week, closing at 6. More Depotations So more deputations and then dep- utations! Sir Alexander Maxwell, Home Office Permanent Under-'Sec- retary, got almost to calling us by our first name:;, he saw us so often. But he was always helpful and con- siderate, and a lot of what we finally achieved is due to him. For we were now asking for aboli- tion of .10 p.m. closing, so'we could go back to more or less normal. Blackout and transport' shortage stops us from getting back to actual norm, but we wanted to get as near as possible. Anyway, on Oct. 19 we asked for full-time opening, and on Nov. 3 we got it as from three days later. So now, after two months, all pix shows except in London's center night spot could stay open till IT p.m., which was something, for we had figured the audience reduction through clos- ing at 10 has been costing the box- office around $500,000 a yyeek. For staggered hours in the West End were losing the houses there. over $5,000 a week each. A.sk Sam' Eckman! And at last, on Dec, I, we got Home Office and Police Com- missioner's consent to let 'em all stay open till pre-war hours so long as they arranged their programs so their big pix ended at different times, to avoid having crowds turn out onto the streets at the same moment, which worries the police in case there is an air raid, arid jams up the transport, too. . And that is how we shook out the shutdown and got exhibs allowed to stay up till bedtime.