Variety (Jan 1941)

« PICTURES January 1, I9il To Tour Exchanges for Purpose A pro'ceduf e thaV.is expected to be followed, bj' the, four other coirir panics .Which; will sell 1941^42 fllih under; the consent decree starting this sumitier ■■ being teed off by ZOthrFox, with three of its attorneys : starting oh a. t.pur. of all the 26th ex- changes Jan! 2,~ - They are Felix Jen- kins, Nofnaan Steinberg- and Percy. Heleger, all attached to the legal departiticht: at the. h'drtie pffiide. Be-^ fore they are finished- with their- eouhtrjtwidV' toUrs; the other distrib- utors ainong the. Big Fiye^ ably., assign . men to .siinilar tiipS; . ■ • 20th's. -three. • counselors, ■■ail..-.weli, vfersed -. ^ -;,the Consent ■^decre.eii''J^^^ split the country up between th*m. Jenkins, . a top-ranking lawyer in 20th and secretary of the company, will take the west, while 'Steinberg, will .^byet the midwest and...:sotith, Heleger the east^ The length Of time thiey will bfe gone will depend on the meetings, themselves and the traVel- . ing. ; ■ ■ . . Legal trio .from 20th is going; cut- to preside at huddles with the sales Btafls in, tiie fvaridus exchanges to explain the decree in: detail, clear up any doubts concerning, it;and to in- struct the nieti what they must do as well as what they must, not .do. This is . the first material step to be taken by 20th under the consent, but later on, probably around Feb. 1, a meeting of distribution heads will be . held in San Francisco to further, dis- cuss the new system of seliing :for the coming season. At. that meeting, also,, it is ex- pected, .production plans for the 1941-42 semester will be determined as well as discussion given to what the producing problems are going to be. S. R. -Kent'Is planning to go out. to preside, ; with.. Joseph M. Schenck, Darryl Zanuck and others coming from the studio. Other companies under the con- sent (Paramount, Metro,: Warner Bros, and litKO), in addition to legal aid . and advice to their c^xchanges, are expected to hold general distri-. bution meetings on the new sellini;, . arbitration, etc. Par is figuring oh a ^neeting at : Chicago later in Janu- ary* Others are indefinite at the moment, but Metro, which held one session , already .. in Chicago, will probably hold another in New. York. Similar meetings on exploitation and how' such, departments will fit into the hew scheme of things are also looked for. Metro, is holding one at W.Y. in two or three weeks oh that alone, calling in all its nien from the field. NOW METRO'S 50-50 ON XONE'IRKSm AlitED ■■■ ' : Minneapolis, Dec.: 31, \ Northwest Allied is; ; ' the : wair- path; agaih-^this. time against,Metro bepause it is demandirtg..a 5D%!. split in' the .Twin • CiVles. for', subsequent runs- Ot 'Gone :With the ^ W But; despite its Jeaiderg' protests, thje cpm- Vahy continues adanilant in its ieiTrts. ' There was a hullaibalpb. When BKO demanded .^a .50% ■ splits .for- "SnpW White' and eVentualiy the company compromised to 40% up to a split flgi}re in the case of Twin City inde- pendents. -However,- M-G has been the toughest of all cprhipahies for the Minneapolis and St. Paul;- indies to handle an^ neVer backis up in the .face pf . pleas or threatSi :- r■ For years, Twin City Independents; halve been fighting in -vain to get M-G to eliminate percentage f.rpih .its Mih- neapplis and ..St. Paul Iridie deals! There have been threats of virtual boycbtt, but the company always. ih- sists upon foiir percentage pictures in. its cbnti-acts. and. in the end, the exhibitors yield. All other companies here make flat deals ;\yith the Twin ■City boys. -" .■ ' ~ r' • Hollywood; Dec; 31.; ^ Metro-signed Peter Ballbuschy spe- cial effects director. ; ; Pai-arhoiinl. picked Up' Margaret Hayes' player:option.'.. .' • . Elyse Knox inked - deal with RKO, -. -v:: .^-: ParamPunt tPfe up Verpnica Lake's old contract and handed 'her «' new ,pnei.. .'■ '•' :' : :•.. ■ Warniers hoisted its player :biptiOh on Frank Wilcox.. Betty Brewer handled a new player pact by Paramount..'. . ftichard A;. Rowland pickj^d yp pp^ tions . pn ripsemary' De Mary-.Ahdersbn.;-; . \:,-\:r • fo De-Code the uenessan ASCAP CASE MAY AGAIN VlPAR MRS. RAY WHEELER WINS DIVORCE IN PITT . Pittsburgh, Dec. 31. Mrs. Mabel Wheeler's Xmas jjres- •nt last week was a ■ divorce from her husband, Ray Wheeler,; veteran theatrie manager, here, now in charge ■of the State downtown, whom She charged with cruer and ./barbarous treatm.ent, ; 'If the fpod I Cooked did ,not satisfy him/ she ,told,.the cbiirt, *he threw it at me.'. Gal, i24, arid 18. years yoUnger than her husbanS. said she underwent a setipus operation recently and .when she viras. taken home - was placed in. a wh^l chair. .Wheeler -Was ;to put. her to.-bed ^ at night, she addedy One nighti he didn/t cbme: home at all and she had tp spend'the night in the Chair;. - The, Wheelers. were mar- ried, in New York Aug. 6, ji937, and ' separated ;la;5t . summer. . • StQRY BUYS . ' . . -Hoily wopd,' Dec. 3L . RKO '.purchased 'That Was No _Lady,?,: by Richard Cb.llins. ' Arnaud D'Usseau sold "'Repent at LeisureV to RKO.- : : : ; . .: ;; - Harry :iShermah: bought "ITie Sheik of Buffalo !Butte,': Hopalong Cas- sidy yarn by .Bernard McConville. ■ ' Metrp understbpd'to be interested: in. 'Mrs. Fahe Come? of Age' by- Lib-, bie Block, differences between bid aiid.:,^sked price now 'standing be- tween cprisii'mmation of ai deal, Story is a ISwo-part serial currently in Good Housekeeping: mag. Price demanded is $2tf,bp0, with Metro in- terested iii paying considerably less. Pdsen Loses III Move To Haft U/s Plan For Buying Pfd. Tenders A complete denial of ii plea by Samuel I. Posen, director of Uni- versal -Pictures Co. since. March 15, 1938,. and holder of 100 shares of common and 50 of first preferred, for a temporary, injunction against, the purchase by. Uhiversal pf. tender^ for its first preferred stock, in pursuance of an offer made.by letter pn Dec 12 and -effective. Monday (30), was isr sued Mpnd'ay (30) by N. Y. supreme court Justice Morris Eden. The colirt: ruled that .plaintiff's suit in brief 'seeks to; enjoin, the- proposed pur- chase .by the defendant of its pre- ferred stock', and it was found that :Whil€. a meritpriPus Cause of action existed , which might prevail on the; trial of the action, insufficient evi- dence had been presented to the court to' warrant the drastic issuance of a temporary injunclibn. : ■ Pbseh filed suit agairtst'Uriiversal on Monday. (30) supplementing a stockholder action he has against the company.. The dii-ectpr remarks in his action that Universal. has 15,300 shares of first preferred at a par of $100,. 20,000 of second' preferred at a par of $100, and 250,000 of common .with a par of $1.: issued and out- standing. He states that the com- pany declares its net profit to be $2,400,000 tor the year ended Nov.^ 2, 1940, and for the four years lipder the present management reports, a profit of $4i;725,. Thi.s i,ast figure does not reveal the coirrect;situation,: declares Poseri, who points out that $l,-560;()00 is tied up in England With no possibility of securing the money until .aftet the war. "This would mean, a loss;-of '. $i',5l4,274. ovei- the four-year period, and a -total in the red of over $6,50p,000..-• It is alleged--that, any- shares pf : firist' p^ef^rred retired- j(i ^exc^ss of $100! par , would result.: in the Unlawful payment of- diyidehds to some stpck- hpldprs; in . preference to Others. It is, alleged that .tp; bprrdw $1,000,000 n'pw to. retire the stock wPiild only' retire- about half of .it, and that stockholders hot protec'ted agiaihst disoriminatiph: by. the , plah.- Lastly;;it is claimed, that under Ujii- yersal's .'present financial status tb bprrpw an atdditioria] $1 ^00,000 for suCh retirenaent is - fdlly- • ■ Tampa, ;pec..':31;:'■ ' Warner. irPs,' effort- tb . break the deadlock . oh ' its : p.rodiict held by the Sparks' theatire ;chaiih in Florida' igained: a cbupl(? ;Of strides Ghristrnas day with the opening of. two. h^W- indie houses in Tampa and Orlando.' The - Sta.te, .biiilt and operated by Butler E. (Sore, who. has fought the Sparks! outfit in Tarfipa fbt several years, r^orts gOpd business With 'Kriute Rochnft-AJi Arii'ericah.'■ It's; the first. Warner Bros, picture to be. shown in. "rampa in two years, be- cause of the Sparks tiff. - John . M. . Goldsmith, Warner rep- resentative frpm ;.. NeW. York : and Burbahk, Cal.,, attended the?: open-- ing of the- Vogue; Orlando, built by. Gus C. Diamond, former WB sales- man. It seats '800. • ' Gpldsmith said Warners .is making gopd progress in the all-state cru- sade. Working with lEUilph :McCoy, pf Atlanta, district , manager, he has signed contracts with Arthur .J. SiegeU who \yill open a 90p-seater in Jacksonville in April; and has a dieal stewing With Herb Copelan, who is planning a theatre in Fort' MyierS. 'Wometco Theatres, with .13, houses .in the Miami area, is S.ho^y- ing Warner inims and; there also are. deals . under way in. Daytona and West Palm Beach-. The" Playhouse in. St.' Petersburg, operated by Bob. Bpardriian, gives WB another outlet in this section. Sparks, which i.s 50% Paramount- bw.n€d,..refu.' d. to sigh with WB in 1939 and held Put all this year. A few indies have made half-hearted attempts to'buck the chain; but this is the first concerted drive to put in-a; big wedge. . » ANOTHER H^G ON Cfll'S NEW CENSORSHIP ^ MUWauke'e, DeC^ Athbugh the!fr^quenty-deayed La- CrpSsp .Theatres Co.'s $1,476,900 a trusi suit against Paramount and various other distribs Was Scheduled to go onVtrial next^Monday. (6)^ Judge iPatrick T;; Stone and a mixed Jiiry at; Madispn, Wis.,- another post-! ponemerit>is now sought' by; !Rpbert A.. Hess, legal rep for' the plaintiff, for he .also is .the.;Wiscphsih attorney fpr the American :SPciety pf Com- posers, Authors and Publishers—and U. S. Atty. Gen. Robert H. Jackson has ordered criminal proceedings against ASCAP and Broadcast MusiC< Inc., . under:' the Shermari .'anti-trdst law, started' in .Milwaukee's Federal ;CoUrt on thie same date; ';. . . Trial of the L.aCro.'iSie-Pkr bWt^.le had barely . started .' When Attprne^^^ Hess suffered ii sudden collapse, diie to exhaustion and .overwork, on Nbv. '6. Physicians ordered-"a complete rest, and; on KoVv 26.. attorneys and court conferred and set the resump- tion of the trial- fpr- riext Monday, Judge Stone telling- Hess^ to forget all else, in the::mearttime. • Phifiy Arbitrators Have Their First Job All Cut Out (or Them TITLE GHANOES V ; : . .; ■ Hollywpod; Dec. : 31.- ■ : 'Adani: llad !Fbur SOns' is release title for ■ Leigacy' at' Columbia. ; Universal switched from: '^^orthe^h Lights' to 'Mutiny iri the Arctic.'- 'Rookie's Roost* became . 'You'll Never . Get Rich' at: Republic; .: . Producers Corp. changed ftom 'It Happened tp Me'-to "Caught iri the Act'- ■■ . Chicago, Dec. 31. Third hearing ori . the proposed shift in. the city's censorship ordi- nance is scheduled for some time next hiprith. Opposition to: the changCi which would place censbring in the hands of special !Brpup named by the mayor ; instead of the police, has developed! at the previous' hearr .ings.~'' •' ,. . : Earl B. Dickersbn, city alderman, is -bacjcing the proposed censorship shift, which wpiild - prevent patrons under 21 years of age frorix yi^p^ying certain ifilnis.. iridu-stry! spokesmen claim this nieans ' censoring . of all pictures^ With thie- distributor; footing Kthe. iricreaijed fee-per-reel bill." "fhey also contend it will cut into the; ex- hibitor's patrbri?ge..>. ■ ■■: ^ Boothitian Badly Burnt In^^^Oa Theatk Fii^ . "St. Lp'uis,;Dec;'.3i;.- ' 'Ch\ib* Railstbri, jjrojec'tionist Iri; the Elm, 250-seater in iSt. Elmp,. Ill,, near; here, suffi^red severe burns on thie face an^ hands last weetk When the film, caught fire.. A rtiild panic fpl- loWed the llamiBs and the patrons rushed out of the house;. "The blaze, which damaged: the - theatre" $7<ppo. Spread .to -an adjoining caite, Itavern and recreation hall and. fire equips, ment was; summoned- from Alta- mdiint; Effingham and Vandalia, HI., to extinguish the flames' Which threatened the entire business; dis-. trict. .. ■ ; ■-- : ;: Paul firands ; is ; the . owner, arid pperator of the hpiise; , He plans tb Jeppen". a^ spon as ppsilble. . Philadelphia; Dec, 31. . • The first hunk pf biz on the agenda for the arbitration board iri this area, under the consent . decree, appeared in the offing' with the skedded opening of the Erlariger as as fllriier in the dowritowri area early in 1941. .;' The Srlanger, built .as , a legit house in the lush '20s, has been leased by- William Golidman, iridie exhib. Last week Goldman's attor- ney, C. Brewster Rhpaids, sent letters to all exchange rinan^gers and to of- ficials of the Stanley-Warjier circuit warning that Goldman Would take 'appropriate measures' if S^W would attempt to place its Center in a pre- ferred spot;over the Erlanger in the matter of clearance, as has been re- ported.. .- . ■ The Center, nearest S-W house to the Erlanger, is four blocks aWay and has b^en. showing films, fifth and sixth run, and even later. Gbld- man has made .it plain that be will bid for first run product at the Er- langer, the first attempt by an indie to break the first; run stranglehold held in this area by • thie Warner chain.; Meanwhile the Erlanger has been let for its first play of the Season/ 'First Step to Heaven* bpening to- night (TUes.). Only other, attrac- tion at thi.s house this year has been the anriual offering of the University of Pennsylvania's Mask and Wig Club. ■-, - . :■ FLYNNLKES MIDWEST, NIXES M-G SPOT IN N.Y. Jack Flynri, ; nlidWestern district manager ; for .Mietro, .is reported to have been offered 'ian important dis-. tribuliori post at the home "office but has declined. He is said tp have refused pririci- pally because he.^prefers to live jn £)etrpit or in Chi.cagb, Wher^;he npW makes headquarters. -' ''./ >. '■ A study pf the consent decree with respect to arbitration has; piroybked much doubt cpncefriing the rights to "arbitrate in the mirids of exhibitors as; well as men :;iri the- Selling end because It isn*t clear just! What the' restrictions are. . .An. attorney, not in show -busineiss but rating high . In the legal profession,, went over the draft of the arbitration rules witti a Variety representative and cori- fesised : that the wprdirig Was any- thing but clear, ' virtually, requlrlnf .- Philadelphia lawyer to straighten it. out.* ■ ;■■ - .'. ...' .The lack ;pf clarity concerning tht rights of exhibitors to arbitrate may still, leave marijr; operators, buyeni and managers 'completely. in the dark, everi after consulting their own attorneys. In, any iEv.ent. a legal in- terpretation wfilV. have tb be had before certain very impbrtarif : por- tions of the consent are underStood.- ': While the proyisipris for. selling In 'blocks of five' and other features of the decree do nbt. require derCodirig„ many very likely would be stumped by arbitration rules :as to how many theatres an exhib may have before, being ■' positibri to file a com^ plaint, notably under Clause X. This clause pertains to controversies arisr ing upon a complaint by an inde- pendent exhibitor ,thai a -distributor has.-'arbitrarily refused to license its features■ for exhibition pri; the run reguiested'.' ' '; Questions Thi.<! in itself is riot, clear to persons in the trade who. have been con- tacted, but more recondite' Is the question; of whether an exhib cart come in to arbitrate under Clause X if he .has.; moref than five theatres; also Whether or not thert are any restriction^ when other pbrtions. of the decree (clearance, fprcirig of shorts, disierimination, withholdina print!!, etc.)- form the basis for i complaint. A distributing legal iritcrprietation of the. consent decree, which Is ac* curate and may serve as a means of straieh.tcning' but exhibitors arid salesmen who are in doubt, is that any exhib or circuit, regardless of size, may. avail themselves of arbi- tration under the entire decree ex- cept Clause X relating to; the arbi- trary refusal of a: distrib to grant the tun requested. When that, trade practice arises, there Ts a very . definite" restriction and any exhib having more than flv* theatres is autbrnatically ineligible. If having six theatres, the exhib can- not arbitrate regardless, of the clr^ cumstances. The clause also nebul- ously places a. restriction on the fil- ing of a comnlaint when an. exhib with less than , six hou.ses is in com- petition With a circuit having lesi than 15 theatres. In other Words, when a distrlb has refused to grant the run requested by the exhib having five or less theatres, the latter cannot come In to . arbitrate unless th« distrib has leased the pictures to a competitive circuit of 1$ or more houses which riiay be interlocked through stock ownership or are in a buying com- bine. • . '::■' .■.■■;-'-"-' ". , Clause X,."under which these te-, striotions occur, also jiert^ins tp. cases of the exhib with no more than five house's; who does not have avail- able sufficient product -in nature and quality' tb eriable .it to operate, oh the run requested by .the. bpera- tor.: , '.; ' -• - - - I; ■ •;, . . Hbllywpod,. Deis. Sl;; Columbia signed Herbert Marshall. and ■Virginia Bruce-to Cb-'Star iri the ' Charles R; JRogers' production, 'Sen-.' ate /.Page Boys.'; Picture rolls- Jan. ' 27 urider ; direction .of ; Alfred E; Green. -. --;-. •.''•'- Another Rogers productlori, 'A Girl's Best Friend. Is Wall Street,' originaHy; slated to; sl^rt Jan. ; 2T on" the same lot, has been moved ahead to Jan. 15 owin^ to the earlier availr ability of FranchPt Tpne, who co- stars With Joan Bennett - fATHEFIlMEXMI) TO SHOW $285,000 NET ■ Curl'ent earnirij^S of Pathe Filin Gbrp; Indicate that ■ the. company will - .shbw around $285,000 net profit lor the year ended yesterday\ (Tuesday), j according to-Wall Street;estimates. , Company showed $215,188 in the first nine months, :;arid even without any . special melon cutting by DuPont Film Mfg., in which it holds.a heavy stock interest; is expected to add an additional $70,000; net profit in tha final quarter. Eariilngfi were . r u n ri i h g ' hlgH enough, about five wcbUs ago lor Pathe to -deiclare its fir.st dividend on the common.'shares ..since organ- ized under the present financial set- . up. The common shai'ehCild^rs were, , voted 30c per share.,