Variety (Mar 1941)

PICTURES Wedncisday^ Msrch 5, 1941 Film business envisions sbimie ' re- lief as result of. contemplated re- •visiph of: the Federal excess profits tax laws schedulecl for presentation in CongrcM this week.' Legislators have beleri working for weeks at-, tempting ;to.- iron out changes which would enable corporations; :to. PP 'New York Hal' Sliir Pursues [ Under ihe impression that shie had .bought lip" all the prints and iiega- !Br^te"-v^^^thoUt unji^^t tax penalties | live of 'The N^ew. Yprk ;Hat^V 1^^^ under the ongirial cxcesis prpflts law pickford is considerably: chagrined jpassed ;last. year,.. ? . ." ;;; by the picture's appearaiice teceiitly. One aroeridmient, scheduled for I on a. bill .^t.. the Ame^^^ eerioiis consideration of • utrripst.- in-.j Hall,. N. .Y. which plays pld-tjmers terest to-film, cbmpariles is that.; ejcclusiveiyv. Fovmer film' player .is which changes, the. reguiatibns pn. havihg her attprneysi b'Briert. DrisT growing corpprations. Under this' a ^eoii & Raftery, .attempt to obtain the new excess profits credit Jorfhul^: is jprinti believed ti? be the only one . ,.- j now in existence; . . . ; " 'The New York Hat' was njade in 1912, Lionel .Bar^ymore . corstarrihg with Miss ;t>ickfPrd; I?..,Wv Grjflfith dit-ected. it. established which would consider the .growth of cbrporaiions during. ..sbr called bisie years in .setting taxes:. • This ■ woiild . aipply tp Paramount and . Universal, it is understQpdi be- cause both will show compairatively large profits in the past, two years as compared with earnings of three to five years ago. . Par's, earnings • were held back for cbuple of years immediately alter emergence from 77-B while ;Universa] has taken a ' couple of years to refleqt- changed earning . power under the hew executive setup. .. •This relief clause in .the revisions suggested also would apply to other film companies, most likely RKQV biecause its earnings, prbispects arc much brighter presently; as; com- jjared with: those in the years under 77.^B. Corporation got out bl this oniy last. year.. . ■ As the excess profits ta'x- law rpw stands, credit under the av- Filins Speed Military Trainii^, U.S;A^ a Hollywood, March 4. ; Military training can be stepped up to four tfmes its ordinary speed by. the use of ' motion pictures, ac- cording to Majoi-" General J. . 6. Matiborgne,.at a dinner tendered by DairyW Fi Zanuck.',. The film' indus- try, he said, can be of inestimable i benefit to the defense program. erage earniiigs method aniounts ^o | pinner was attended by Army and 95% of- averiage ;earnings during the Navy reserve officers connected with four-year perio?[ W.: 193? to 1939 Facr that the earnings trend for sev- eral film" companies was abruptly up- wards : late in .193? and fllso last year , is not given special attention. . Another amendment would permit the unused portion of a company's excess: profits ■■ credit for one year to be carrie^d over and used .to in- cirfease the credit of the next year or possibly for two years.'' This also would prevent a top se.vere penaliza-. tion for a growing picture company, which does not benefit directly from national defens? expenditures. The main purpose, of thie excess, profits measurei originally is reputed to have been to tax those cpmpanies bienefiting directly from such Gov- ernment, spending^ the picture industry. Among them were -CoL Nathan Levinson, Lieut. Col., Parryl F. .Zaniiclt, Lieut Col. Wesley C. Miller, Major Jolin Aal- berg. Major & J. Briskin, Capt. Gor- don S. Mitchell, Lieut. Jules Buck, Lieut. Lloyd Gpldsihithi Lieut J. E. Grainger, Lieut. Glen Hammond, Lieut W. G. Hoch, Lieut Edwin B; Levinson, Lieut. ' Milton Sperling, Cominander John Ford, Lieut, Coiii- mander A. J. Bbltoii, Lieut Com- mander £. H. Hanson and Capt Janies Roosevelt, of the Marines. Uiqrd's Next MQer Hollywoodk March 4. . :: Next independent production by Frank Lloyd fo|f Universal reliasejs 'I, James Lewis,' tehtatively slated to roll April:. 15, ^-'^^ v ; , '■ [ Meanwhile,^ the producer-director is ^C'ihding up his most recent job for the same studio, The Lady JTrpm Cheyeiinfei''■ ■•. .■■ ^ .'■ Ckiplin Wgs Deep Into Filter Fighting JncoineT^ Hollywood, March 4... : It started: as a ga^ but it wbuiid up as the United Artists Corp. and it prevented monopoly of film pro-, duction, according to; Charles Chap- 11 , who is itvuUihg a question of in- corhe taxes with Uncle Sim, . ' - .VPlvihjg. $^,l46, . wliich the prpdUcer^ ' actor claims he oyeirpaid for the year of 1935. '.' ■ Explaining, his early activities in .Holly\yood, when the picture indus- )try was in its plastic; state," he; told about the meeting bf ijhis fellow art- ists to prevent iaj$40,000,OOQ combina- tion frpnn taking'over the produc- tion of films. . Chaplin, Douglas Fairbanks, Mary Pickford and David Wark Griffith, he said,: heid a meeting to protect their artistic interests, not with any serious business intent in mind, but as jB sort of get-together, of the lead- ing artists , of the. young industry in those daiys. ; .• • • : That was the beginning, Chaplin assei^ted .to Arthur J. Mellbtt, mem- ber of ;the Board of Tax Appeals, in ah. effort to get a return of $25,000 on his 1935 income taxes. The ques- tion involves 1,000 shares of United Artists stock, held iii escrow, and depending bn-.Chitplin's ability to produce a certain number of pic? tiires per year. ROACH'S 3 OR 4 VIA UA F0R'41-'42;N0WINN.Y. Hal Roach arrived in New York yesterday (Tuesday) for huddles with United Artists home office execs and his own eastern staff on his out- put for 1941-42.. He's expected to announce a lineup of three or four films for next season while in New York. ; ; ■ .\. . ttoach ijrou^t with him a print of 'Topper Returns,' which he re- cently finished. He was accompanied: by his eastern rep, Ed Peskay, who went to the Coast for confabs sev- eral weeks ago. They flew to Chi- cago: and trained to. New York from there. ■ ■Broadway Limited,* now In work at the Roach studios, will, wind up the producer's .output for 1940-41. ' 3 Bepoirt to D. C. Uncle Sam called on three Holly wood names for one week's active service in Washington for technical advice on Army training films, now benig produced. here. In the order of military, but not screen credit rating, the three are Col. Nathan Levinson, Lieut.-CoL Darryl, F. Za. nuck and Capt Gordon Mitchell, re- serve officers in the Signal Corps. Following their week of active duty in Washington, which started yester.day (Mob.), the officers, return to Hollywood to await ftirthier in structions on the; training film pro gram. UUREL-HARDY SOUGHT FOR HEX CITY PERSONAL lyversaTs Good Showing Wins Its 1 mm 6 FROM N. y. SET FOR liX DEALS F»R TESTS ■ Six individual film deals fpr, - tors were set .last. week by Bob Jlfr- ris, of ; Columbia:: Artists bureau. Two ij^ere tor contracts and the oth- ,ers . wer*- 'for;;B'creeii^;testi.- John' Hoysradt^ of the original company of 'Man Who Came tb Din- ner,' was iigned'. for. VVarners' film versipii of the comedy. It's .a:oiie- picture , ileal and he leaves .next week. ' Nancy Kelly, recently featured in the .Theatre Guiid!s 'Liberty Jones,^ iaies to . the Coast Ih is week to be tested by ' Sam ; Wood for ; Warners'; fbrthcbming 'King's Row.' Douglass Lamy has been- signed to a termer by Metro and reports April 1. , . Robert Morrow will test fpr David pr.iSelznicki pelma. Byron: for How- ard Hughes and Barbara Daly.; for Columbia. All :three will be done in: the east;-. lADY IN DARK' HALE LEAD PACTED BY PAR Off to Shooing Start . Hollywood; Maiich .4; Irving Cummihgs gets the. director chore on 'Belle 'Starr,' high-budget western, at 2pth-Fox. . Picture, slated, to start March 24; Js the first of tlie 1941-42 programi to get under way. . Gel Togeikher, Kiddies Minneapolis, March 4. Northwest ■. business activity.. re- ■ cumed the upswing that started in inld'-1940 and iadvanced tb; the hijgh- cst January level since 1929 or 1930, according to the Minneapolis Fed-, eral Reserve bank report, but local neighborhood exhibitpiris are ; still complaining about their boxpffic^is •nd declaring 'grosses .'are the worst •ver.' \/ • . : ... [■■ [. ': The bank report declares prac- tically all lines of business partici-, pated in the rise, ^which was felt iKirticuIarly in . bankiiig and agri- culture. Mexico City„March 4. Talk that has circulated here for some time to the effect that dicker- ing is ih progress ^y^th Laurel and Hardy to personal at a local theatre is not a gag, declares Abraham Cas- tro, local impresario, chiefly inter- ested in this proposition. . . The comics are interested in com- ing to Mexico, where they have a large public, Castros says, but there are several 'buts';. the funsters' rrian^a- ger is insisting upon a guarantee of $12,000 (ittex.) ($2,250 Ui S.); cash on the table before hiS" team leaves Hol- lywood and there are .coiii obstacles local theatremen have raised in the form of percentages: .. Nevertheless, Castro is hopeful: . ^ Hollywood, March 4. .Paramount has put under term contract Macdonald Carey, .male lead in Gertrude Lawrence's Broadway comedy-drama hit, 'Lady in the Dark.' He reports to the studio June 1, with likelihood hell play his stage pari In teh*. picture. Moss Hart play is itill uncast by the studio. B. G. Da .Sylva, executive pro ducer at Paramount sold his studio the film rights to his Broadway mti sical, 'Louisiana Purchase,' for $150,- 000.. 'Pbrchase' Is the third im- portant buy in recent weeks by Par, ^For Whom the Bell Tolls^ cost $150,- 000 and 'Lady in the Dark* is listed at $283,000. a total of $583,000 for three properties., Ai producer and, writer of. 'Pur chase,' De Sylva will oversee its production .bn the screen. Jerome Chodorov and Joseph Fields have been inked- by Par to do the screenplay of 'Purchase/ Chodorov and Fields are authors of the dramatization of 'My Sister Eileen,': w:hich Coluihbia jiist bought for $225,000. Hedda's Cinema Set Hollywood, March 4, Hedda. Hopper closed a deal for a series of .six, shorts^ telling all about the. professional and social doings of picturifr people. Series .:is titleil 'Hedda Hopper's. Hpllyvvood.' Filming starts early in. May, with Herb Mouiton producing for Para mourit release. Contract calls for six brlefles, with options for two addi tiohal sextets. . . : to Hicks Bullish. . ...:.:>....,..,.....Page 13 Hollywood as Pah-Amer. Aid...... . :,..:.. .i....: .Page 13 .MfiticD city Cinema Ops Pact,......... i....Piage. 13 Pic. Biz Static iii jprance. 1...:.. ,....., '.[■. ;;;Page 13 Franciisco's Findings......................;..;, .V/Pagc 29 Radio. Reviews: J. B. Priestley^ JeanetUi! MacDonald, Binnie Hale, "Moral Lecture',..........,,:................,:..;., .Page 34 Gordon, Warren*s"New Song Deal......-..;,....:,.,.......,,.Page 42 A£fCAP ... * : .......•.'«.'...'....•.• rV....,;.. ^ j ... V, .Page 43 Paid Service Shows...................: .Page 40 To 20fli's Use of His Name in Tin Pan Alley' Harry Seaman, partner in the for- mer burlesque organization of Hur- tig & Seaman, has filed suit in N.Y. magistrates court against 20th Cen- tury-Fox, Darryl F. Zanuck, Sidney r; Kent and W. C. Michel, claiming violation of the civil rights law in using his name in 'Tin Pah Alley.'. A hearing is scheduled on March 13. It is understood that a N.Y. su- preme court action will be brought within the next week against the same defendants sieeking an injunc- tion, accounting of profits and $50,- 000 damages against the picture.' PAR THEATRE CONY. SET FOR HARCH 27-29 Paramount theatres' convention In Hot Springs, Va.. March 27-20, Is now official. It will be attended by home office executives as well as by Par . partners and operators in the exhibition field from all parts of the country. The list of those who will attend has not yet -been made upi according to Leonard H. Golden son, but understood that the meet ing will not be as large in num hers as the one held in Miami, three years ago. Also, the sessions will be strictly private, with a view to giving seri- ous discussion to the consent de cree, operating problems, future plans, policies, etc. J. Cheever Cbwdih, Nate -BJuiti- berg, C. D. Prutzman, Clifford Work, William A. Scully; Joseph H. Seidel- man and Matthew Fox were, given seven-year contracts at materially upped salaries and bonuses by a spe- cial meeting of Universal directors, according to an announcement made yesterday . (Tuesday) by Cowdin, chairman of btoard for Universal Pic- tures Co., Inc., and :Unlveirsal Corp. These are effective as of Jan. 1 last, with all pacts to be aubmiitted stock- holders of the. two companies, pre? sumably at the next sessions this month. .■■.•";::■■;■.■■:'. 'Contracts ih most instances,' said . Cowdin. 'represent a flyeVyear ex- tension of the period for which these men are currently under contract to . Universal. This will assure continu- ity of the executive management, which'has been responsible for in- creasing gross,sales from $18,150,870 to $27,i677,627 in the.last three years, and In the same period has converted a net loss, of $1,084,999 . into a net profit 6f $2i3?0,772.' . Under terms of contracts, with Universal Pictures Co., the annual salaries of these executives will range from $62,400 to $91,000 an- nually the first two years and there- after will range from $75,400 to $117,000. Added incentive compensa- tion is further provided, it was ex- plained by Cowdin, through a profit- sharing arrangement under which these executives will receive a per- centage of operating income, with percentages increasing when $2,500,- 000 operating income is exceeded;. frofli^Sharing . Individual participation will range from %% tb 1% of operating in- come up to $2,500,000, and from 1 %. to 2% of operating earnings in ex- cess of that amount Pacts proyide these, percentages are to be reduced proportionately if there is any fu- ture increase in tax rateis. And also that balance blocked in Great Brit- ain shall be excluded in computing operating income for any year^ any adjustments in tespect to these amounts tp ba only when these bal- ances are transferred into dollars. Under terms of contracts with Uni- versal Corp., each of the five vice- presidents (Prutzman, Work, Scully, Seidelman and Fox). la to receive ieach yeai". warrants ■ to purchase 3,000 shares of Universal Corp. com- (Continued on page 20) RKO GALLUPING FILM TASTES ANOTHER YEAR Would-Be Betty Grable Extortionist Gets 1 Yr. . Philadelphia, March 4. James D. Thompson, singing waiter in Melrose Park nitery, was sen- tenced to a year and a day in Fed-: eral Court last Friday (28) charged with attempting, to extort $8,500 from Betty Grable, film actress, ThpniRson,, a former Georgia con- vict, said he was attracted .to Miss Grable: through her pictures in the newsjpaperis. He was arrested by FBI agents after letters were found in his possession' with the .same words misspelled as in the extortion note. . Schaefer, Jr./Upped Hollywood; March 4. ; George. Schaefer/ Jf;, sbh of the RKO prexy, moves up from post of assistant director on shorts to fea- tures. •• Working, under Alfred Hitchcock on 'Before, the Fact; Armour's Studio Berth • •. Holly wood, March' 4. Reginald Armour, .former generiai manager of foreign sales for RKO, has been named ^personal assistant to George Schaefcr. : He will function as contact ori stu- dio relations. Dr. George Gallup's Audience Re^. search Institute has been inked by RKO for another year's session of polling popularity of titles, stars, stories, etc. . Affiliate of Gallup's American Institute of Public Opin- ion is just winding up its first year of work for RKO. New" pact, like the past one, ties up the ARI's services exclusively for RKO. Institute was talking some time ago of not renewing the con- tract on an exclusive basis, but RKO prez George Schaefer Insisted on it. David Ogilvy is Gallup's assistant in charge of the film research outfitt. Maude Adams Takes 692 Dramatic Stqdes to H'wood . , Hp^^^^ . Maiide Adams and ah army of 6d2 girls from Stephens College, Colum- bia, Mo., will represent the largest single gtoup that ever invaded the picture studios.. As drama coach of the college, which is exclusively feminine, Miss Adams leads her batr talion into town March 16 for three days. ..:■; : The gals will be guests at a. dinner that night. at the Cocoanut. Grove, with Jerry Hoffman as male interme- diary between the school and the film industry, Gals .vvill see how pic- tures are made as part of their dra- matic training, and studids are ex- pected to test the more promising of Miss Adams' proteges. . Me^t Kjaren Verne ' Hollywood, March 4. European actress new to Holly- wood, Karen Verne, 'ihakes her American debut in the femme lead opposite Jeffrey Lynn in 'Under- ground,' which rolled last .y/eek at Warners. . Vincent Sherman is directing.; ;