Variety (Nov 1940)

PICTURES Wednesday, November 6, 1940 Report Steuer Had Goldwyns UA Settled But Producer Balked Kyser Army Pic Settlement of the long-standing feud between . Samuel Goldwyn arid United Artists was all .. but con- summated last July, but Goldwyn at the last moment repudiated the steps taken by his counsel, the late Max D. Steuer, and called the whole thing off, it has; Just come out Preliminary terms had been agreed on and attorneys for the principals were ready to sit down to work out final details when Goldwyn inter- . jetted his nix. '■''■■■• •'. Agreement called, for the abroga- tion of the contract for distribution of the Goldwyn product through UA. Proviso was that Goldwyn would sell his 20% stock interest in the dis^ tributihg company for $250,000, and UA. immediately would, forego ' its ' percentage as sales agency-for 'The- Westerner,' giving the producer the right to distribute the picture through one of the other companies. At one time he was' negotiating with War- ner Bros, as the sales organization for 'The Westerner,' • Reason Why the settlement agree- ment, tentatively set by Steuer, was called off by Goldwyn is not. known. Chief cause of his complaint against . UA was .'that the'company had made distribution deals with several inde- pendent producing units to which Goldwyn objected : but was over- ruled by stockholding associates. Battle ' between the distributing company and the producer has been a bitter one, and the present dis- closure is the first intention of any effort by the - sides to get together. Although the principals have always ... been the essence of politeness in ex- pressing regard for each other, there has been a strong undercurrent of recrimination. . ; -Next step in . the. legal shadow- ■; boxing may take, place this week when UA will mjake a motion that Goldwyn's whole suit against it . be thrown out of court. Distrib will maintain that Goldwyn's attorney, George Z. Medalie, has not followed the instructions of Judge Vincent L. Leibell in filing an. amended com- plaint; U, S. district . court judge, ordered, according to UA counsel,, 'that Goldwyn's '• request for an in; junction be separated from demands to break off his connections with UA. These are still scrambled together, UA will maintain, /in the amended complaint.. : ? : •;• With two major law firms already In its legal bullpen, U Y m the past couple weeks has lined up' another, former judge, Joseph M. Prosbauer; patter's activity will- be limited to the Goldwyn matter, while O'Brien, Driscoll & Raftery; and Schwartz & Prolich Will continue to take an ac- tive part in the. producer suit as well as handle general legal mattersV ^Nd War Stuff' Order , No newsreels with War or battle scenes In them can be played ' theatres in conjunc- tion with Charles Chaplin's 'The Great Dictator,' Word to that effect was sent out by United Artists ■ last week to all of its. exchanges. / '. Ruling was made by Chaplin. himself; who feels there is plenty ; of reminder in; the pic- ture of Hitler and war without ■■■ any further contributions from the newsreels. ■ : ;. Labor's Truce; Co-op To to Premiere on Electricians. and sound men . In- stalling special equipment for: Walt Disney's 'Fantasia' at the 53d St. the- atre, N. Y„ are working night and day to get the job completed in time for a press preerii slated next Tues- day (12). Jurisdictional dispute, be- tween two unions delayed the work for six days, necessitating, the pres- ent rush. ■ '■■ . Compromise between the two la- bor groups involved ended the tieup at - midnight: last Thursday . (31).- Members of both are working side by side, in at least temporary amity, after Disney offered to go to almost any .lengths to get the in- stallation under way. Unions are Local 1,. IATSE, : which generally, handles equipment maintenance and operation, and Local 3, International Brotherhood of Electrical Workers, which. ordinarily makes installations in new buildings* Socialite preem has been set for 'Fantasia' Nov. 13, proceeds to Brit- ish War Relief. Hal Home, Disney's eastern rep, was particularly anxious to avoid a. delay in this, as well as the publicity and promotion in mags which also are set to break around that time. : Hollywood, Nov. 8. RKO !■ trying to clear Kay Kysar for a February start on his next starrer, 'In the Army Now/ orig- inally slated for summer produc- tion. .; Studio execs ' fear , the draft story may be dated by next summer; Joe Kennedy States It s Too Soon MILITARY CYCLE XOth-Fox Rushing Its Pic —Metro, Par and Lloyd All Set Hollywood, Nov. 5. 20th-Fox Is shoving 'Rise and Shine' ahead on the production schedule for a November start in the race to hit the market with military service features,. ■■■ Story deals ■ with reserve officers training camp. . Metro's 'Flight Command' is in the cutting room; Paramount's .'I Wanted Wings' ; is hearing, completion, and Harold Lloyd's 'Three Girls and a Gob' is approaching its final scenes at RKO. 20th-Fox will make 'The Eagle Flies Agam' with Henry Fonda and Don Ameche in the leads; Yarn, by Robert Hopkins. arid Martin Hudson Is. based on exploits of young U. Si fliers Who joined Up with Britain's - raf. -: • - : ... Farnol Precedes UA Head^Atfy to Coast Lynn Farnol, United Artists pub- ad chief, will plane to the Coast to- day (Wednesday), preceding Murray Silverstone and Charles Schwartz, company's head and attorney, re- spectively, who leave tomorrow (Thursday) by train. Farnol will be on the Coast about a week making preliminary plans for a campaign on 'Flotsam,' Loew Lewin production, and also work on opening of 'Great Dictator* In L. A. He'll be gone about a week. Silverstone and Schwartz will be away from New York from two to three weeks on business which in- cludes revision of Edward Smali's producing deal with UA. • Picture business set up an industry Coordinating Committee on' U. S.. de- fense last week in order to facilitate the contribution of motion pictures to the nation's defense program.- It's all. to be worked out by various divisions of the filhV. business, plan being sponsored by Barney Balaban, Nate J. Blumberg, Jack Cohn, Sid- ney j R. Kent, George J. Schaefer, Nicholas M. Scherick, Maurice Sil- verstone and Harry M. Warner. The Coordinating. Committee con- sists of George J. Schaefer, chair- man; Barney Balaban, Joseph ' H. Hazeri, William C,. Michel, Nicholas M. Schenck and R> B. Wilby. Francis S. Harmon, executive • assistant to Will Hays, has been selected as Coordinator, reporting to this com- mittee,; He '. already has made the essential contacts with national de- fense agencies, with suggestions to be transmitted through him. The importance of theatres in na- tional defense effort has been taken care of through a special theatre committee comprising Joseph Bern- hard, chairman; A. H. Blank, Harry Brandt, Si H. Fabian, John Harris, Ed Kuykendall, Charles C; Mosko- witz, John J. . O'Connor, R. J, O'Don- nell, E. V. Richards^ Spyros Skouras,. R, B. Wilby arid Nathan Yamins. Notified of the film business' pur- pose, Secretary of War Henry L. Stimson lauded the patriotic spirit' which prompted the plan; Secretary: of Navy Frank Knox declared he was delighted with the arrangement while Secretary of State Cordell Hull likewise • voiced approbation of the industry, action.:'■■-' Third committee, equally vital, Is the Studio Production committee on the Coast, headed by Y. Frank Free- man. Other committees already functioning are Newsreels Commit- tee,. E. B. Hatrick, chairman; Short Subjects, William Clark, chairman; Distributors Committee, William A. Scully, chairman; and Theatre Pub- licity .committee Oscar Doob, chair- man, :V:- ; V' - '■ ';•;■: ■' ':- ■ Hollywood, Nov. 5. Jerry Wald aria Richard Ma« caulay pick seven outstanding films in:their just published an- thology 'The Best Motion Pic- tures of 1939-40' (Dodd, Mead; $3;50), , ' Topping the list are 'Goodbye, Mi-. Chips,', 'Mr. Smith Goes : to Washington,* 'Nlnotchka,' 'Destry Rides Again/ 'Bachelor/ Mother,' 'Rebecca' and 'Dr. Ehrlich's Magic Bullet.' Raft Powders W , l^r^ta Young West Loretta Young, in New York va- cationing with her ■■ . husband; . Tom Lewis, Young & Rubicam ad agency ,«xec, will return'. to the Coast next week. She's slated for an appear- ance on the Screen Actots Guild air show Opposite Orson Welles on Nov. , 17. Vehicle is 'A Star Is Born.' Miss Youi»g's next fttrh cOmmit- . ment is' ''Ballerina,' skedded to start at Paramount around Dec. 1. Hollywood, Nov. .5. John Garfield took over the role turned down by George Raft in .'The Sea \ Wolf,' the Jack London story which started yesterday. (Mori.). at Warners with. Edward,. G. Robinson in the starring role. Raft has been at odds with the Burbank studio; Since. he refused to play in 'South of Suez,' a role turned oyer to George Brent. 'Siesta in Manhattan,' to which Garfield had been assigned, . has Wen shelved temporarily .' ;'.'••■' '.'"•'.".' . Hollywood Committees :■"'/; > Hollywood, Nov. 5. Motion picture Industry Is tossing all its facilities to the United States Army in the production of films to aid the training of the nation's new soldiers for defense. Officers frorn the U.S. General Staff are due here this week, and shooting of military training shorts starts Immediately after their arrival. Filming of ail training pictures is under supervision of the. Academy Research Council, with Gordon Mit- chell as general manager. Y. Frank Freeman, chairman of the newly or- ganized Motion Picture Production Defense Coordinating Committee, ap- pointed. Darryl F. Zanuok, Sam Bris- kin and Major Nathan Levinson as a sub-committee to work in unison with General Joseph O. Mauborgle, chief of the U. S. Army Signal Corps, and carry out his plans for team work between the studios arid the training camps v Zanuck designated the Research Council, consisting of the leading technicians of the film industry, as the functioning group, and Mitchell was sent to. Washington for techni- (Cbntinued on page 20) Hoofers' Film Deal 7 Hollywood, Nov. 5. SOth^Fox signed the three Wiere Bros., comic precision dancers in the local -Folies Bergere' company, for one picture with options., Trio will be spotted in one of the Vlant's musical films. British exhibs in Aussie. ..v..;.. ... .7;.. V. ........ .Page 13 Big Backlog on foreign Pix' ,.,................... .Page 13 Evacuate.Bntish Children to Australia.................. ..Page 13 5elr the Producer' ,in: South America ......... ...,, V;.'.. ..Page 13 R SX S^^IP 11 ' iri,Barcelona................Page 13 ASCAP-PetnUo ... .. ...... ....,........ ..... .. .Page 26 Radio Reviews: 'Wuthering Heights,' 'Information Please,' ' ^ Tyrone Power ..........Page 38 Loew's Pulls Laurel and Hardy Unit........ r ...........Page 44 AGVA . . ; .......... »»■,.,....;...., - .,',;,.,, \\ ........; .Page 45''• Dan Frohman Hurt ...................... ■...,. \j .............Page 49 Sundays Voted In 6-1 ,................, f ..... .page 49 Erlanger, Hiilly, If Would Buck Warners ;; Philadelphia, Nov. S. ■ William Goldman, former boss of the Stanley-Warner circuit here and now operator of art indie chain, is re- ported, dickering' for a lease on: the Erlanger with a view 6f giving Warners a little competition down- town, v ':•'.■'. :•:.'". If the deal goes through, It will make, the first threat to Warriers strangle-hold on the first run situash here in five years. It's no secret that the' distribs would like to see an iridie in the first run field so that they'll be able to get better prices for their product." A couple of weeks ago Paramount had balked at the deal. offered by Warners but had to capitulate be- cause there was no other outlet for its. product ^downtown. Because deals have already been set for this year, Goldman (if he gets the house) will probably, run the Erlanger for legit productions until the new season's buying starts. With the Erlanger for first runs, distribs would be able to sell to the Sablosky-owned Arcadia for second runs arid to indie nabes in the. event they are .unable to get satisfactory deals from Warners, i The Arcadia Is the only Indie house in, the central-city - area at present outside of the tiny Studio,: which specializes in foreign and arty pix.'/ .:. ••' Scaifen's$92,^ Vs. Sonja Neafs Its End Trial of Dennis R. Scanlan's $92,- 000 action against Sonja Henie, which has been Jn progress for a week In N. Y. supreme court, drew closer to its finale Monday (4), when the actress took the stancf for several hours in her own defense. Suit claims commission for allegedly se- curing Miss Henie her Job at 20tb> Fox. . ; / . ._.' . -.; ' . Scanlan claims to have met the skater In 1935 and to have nego- tiated an oral contract calling for 15% of her earnings on any fiim job he could secure Her. Howard Nich- olson, ice coach, testified as to the introduction Of the two, and Irving Marx, European representative of Orsattl & Co., testified as to discus- sions of a film contract with them in Europe. It was also disclosed by the plaintiff that the actress has earned $639,895 to date from 20th-Fox, and her contract has orte more picture to go at $135,000. Miss Henie also had not paid Scanlan for her passage to the U. S. or that of her father and mother, as well as living expenses In. 1936. She_has paid him a percentage Of her earnings In Ice-skating exhibi- tions, however. While on the stand the actress de- nied the existence of a contract and blamed circumstantial evidence for the apparent agreement. She Insists that Scanlan had nothing to do with her securing of a fllrn contract. Trial will probably, end today (Wed,), when the actress will be cross-exam- ined. '' '.■'■■: '''■'■■■• '■'■" Sperling's 20th Tee-OfFer Hollywood, Nov. 5. •Stand Up and Cheer,' first pro- ducing chore for Miltou Sperling at 20th-Fox, goes before the cameras early in December. Sperling has three other produc- tions on his schedule, 'Sun Valley,' •Whispering Wires' and 'Dangerous Lady/ ' . : - Result* of negotiations in London to. get frozen U.S. . film coin out of England probably; will be ki.own at the end of thl* week, Ambassador Joseph P. Kennedy told Vaiuett Monday (4!). Kennedy has been con« fabbing with WUl Hays On the $itu a . tlon Bince his arrival in this country last week and has been in touch by cable with the negotiators abroad. Whether or. not the situation looks favorable for American corhpanles to Increase the coin they were per- mitted to withdraw under the old agreement, or whether it can be held even at the same" level, Kennedy re- fused to say. ' 1 won't prophesy,' he declared, Tie.- yond the fact that there will proba- bly be something definite before the ■end of the week.' ■.' U.S. Embassy In Britain is par- ticipating In the negotiations, Ken- nedy, said. They are being carried on principally by F. W. Allport, Hays office rep in London. ; Agreement in force during the past year expired on Oct. 31. It permitted removal to the U.S. of $17,500,00() by seven major companies, with Uni- versal getting ah. additional $1,500,- 000 or- thereabouts under; a separate agreement. There have been vary- ing reports since negotiations started for a new pact that the total might be. • . reduced .. to anywhere - V from $5,000,000 to $12,000,000. British Proposal : Current, deal suggested by the British, which has not been finalized, would give the' seven U. • S. dis- tributors $6,000,000 outright arid 50% of the next $8,000,000 on an 'if earned', basis. ■ This 'is. figured by ArneriCan foreign departmerit offl-: dais as amounting to $12,000,000. For the year ending last Oct. 31, the seven coriipanies were: allowed to. transfer $17,560,000 from London to U. S. This was figured as half what the seven, distributors would earn, in the 12-month period after 30% Was deducted for Operating expenses: This figure was Worked out in American dollars, and the present one is being aligned on the same basis. Distributors claim that it Is the only equitable way the frozen coin situation can be handled. Hays will confer again with Ken^ nedy, who as U. S. ambassador to England naturally represents all business in any such trade negotia- tions. They may meet today (Wed- nesday ) or later this week. Hays • likely will be; back in N. Y; today or tomorrow from his home in Indiana, where he went late last week to vote. In the presidential .election; Uny til; the final order on frozen money is handed down by -the British, all American distributor coin is being held temporarily in. Great Britain. Ambassador Kennedy spent most of his time last week at Westchester after his radio talk last week (29) in defense of. the Roosevelt administra- tion. Some of his friends claim that he is not in particularly good health and: wanted a much needed rest. Ken- nedy may not return to London as ambassador. He has been variously mentioned for the cabinet or to head the National Defense Board. Ken- nedy was the first head pt the Se- curities & Exchange Commission/ later in charge of the Maritime Com- mission and then was named ambas- sador. V ALL PREPARED Giveaways (New in London) an Old ■" ' Story In America Columbus, Nov. 5, Arthur W. Kelly, UA vice presi- dent, speaking at the testimonial din-., ner in honor of ITOO president Martiri Smith last week, at the Desh- ler Wallick hbtel^ told of the hard- ships being faced by British exhibi- tors. He explained how bombing at- tacks frequently made it necessary for the showman to keep patrons in the theatre bomb shelters for 24 hours at a stretch, making it: com- pulsory they keep ample supplier*! fodd, dishes and silverware, blank-, ets, etc. on hand. President Smith, in his address, told Gen. Gilson tight, adjutant general of Ohio, another guest at the dinner, to advise the. War Dept. that the American exhibitor organizar. tions were prep&red. Said Smith, 'It won't present;any problem to us; we've been giving away for years all of the things^meritioned by Mr. Kelly / as necesslfiesl' ■ ■ +'