Variety (May 1941)

Wednesday, May 7, 1941 79 N. Y. News Stance on Radio and Hitler Within the broadcasting Industry the sudden interest shown by the ■a y. Daily News in the disinclination o£ the American networks to rarry Hitler's speeches is construed as just another sly propaganda mitsch by the appeasement and for-peace-at-any-price element among American newspaper publishers. It has been common knowledge in the broadcasting trade for many months that the networks had been elbowed into this policy not because they preferred it but because American listeners were no longer listening in to what the Fuehrer bad to say. On an apparent assignment from the home office, Fred. Pasley, of the News' Washington Bureau, inquired Monday (5) among all three transcontinental networks why they had not carried Hitler's Sunday (4> speech before his Reichstag. He found that the broadcasting com- nanies on this side had given Hitler's speeches the brushoff because of 'insufficient 'listening interest'.' Pasley then concludes that the radio chains have therefore imposed their own censorship in recent months, on the Fuehrer's tongue, doling out only such resumes of his speeches as their commentators deem fitting.' The article is replete with other similar cracks at the networks. Wrote Pasley, 'And, anyway, the News was informed (with the quoted source not mentioned) we couldn't bounce in on a heavy sugar, spon- sored program. Such action would cause the big advertisers to run thumbs down on us. Hitler's not popular with them either.' Literati Pulitzer Prlie Awards Pulitzer prize awards, announced Monday (5), follow: Special ciution to The New York Times for the excellence of its for- eign news reports. Best original American play per- formed in New York—There Shall Be No Night,' by Robert E. Sher- wood (his third PuliUer award; further details in legit section). United States history—'The At- lantic Migration,' by Marcus Lee Hanson (died 193B). Biography — 'Jonathan Edwards,' by Ola Elizabeth Winslow. Verse—'Sunderland Capture,' by Leonard Bacon. Public service by an American newspaper—St. Louis Post-Dispatch (smoke nuisance campaign). Distinguished editorial writing- Reuben Maury, N. Y. News. Reporting—Westbrook Pegler, for his United Features syndicated col- umular campaign against George Scalise, racketeer head of the Build- ing Service Employees Union. Newspaper cartoon^Jacob Burck, Chicago Times. Novel—No award. year as against $5 for the U. S. edition. The Air Express Edition Contains the same editorial matter as appears in the regular issue, but advertising is being sold - separately to Latin Americans. The first issue, dated May 5, showed a rather blurred ef- fect on pictures, due to the ex- tremely lightweight paper stock for air expressage, but utilizing the screen on the cuts as for the regu- lar edition. Coverage in South America is noticeably increased, too. alignment' will have on the various newspaper-radio station .tieups re-1 mains to be seen! .' ' ; Under the new setup, it's ex- plained, the Star-Journal will have a financial interest in the Morning j Tribune and the Times-Tribune, with . the taxes. This was reversed by an latter to be called The Times, and j appeal to the Appellate Division and Orch Social Security Standing ; Ccntlnued from page present. Tribune stockholders simi' larly will have a financial interest in the Star-Journal. ■ now the state is appealing to the highest court. It's the contention of Rose, against The Cowles interests, owners of i whom claims total around $7,000, the Des Moines Register-Tribune. Minneapolis Star-Journal and the magazine Look, acquired another old Minneapolis evening paper, the Jour- nal, nearly two years ago, merged it \yith their Star and discontinued its publication! John Cowles is prez of the Star- Journal and Tribune company. Geo. Lait's BosUd Bib George Lait, son of Jack Lait, ed- itor of N. Y. Mirror, in England presently as correspondent for the International News Service, is re- cuperating from a broken rib suf- fered when hit by an incendiary bomb three weeks ago, according to word received in N.Y. Young Lait now is the oldest U. S. news correspondent in England from the standpoint of consecutive ser- vice. Other newsmen are on fur- loughs. He arrived in London Nov. 11, 1940. LITERATI OBITS Edward Duncan Sallen^er, 62, who in 1912 joined the Florence (S. C.) Daily Times ..s business manager, died suddenly at his home in Flor- ence, April 25. F. M. Hogshead, 68, retired in 1936 after 40 years with Associated Press, died April 26 at his home in Little Rock, Ark. As telegrapher and desk man he helped to handle some of the msjor news breaks of past half cen- tury. Leo Hillman, 52, for 30 years a newspaperman and z financial writer for the N. Y. Journal and American since 1932, died April 29 at his home in White Plains, N. Y., after a long illness. Ethel C. Mayne, author and biog- rapher, died April 30 at a nursing institution in Torquay, Devonshire, England. An authority on Lord Byron, she was also eminent as a translator of Goethe and Emil Lud- wig. Stuart B. Dnnbar, former staffman with the Chronicle, Bulletin and The News, all in San Francisco, died May 4 in that city. At the time of his detth he was editor of The Sierra Sentinel, a weekly. and theatres and other niteries em- ploying bands that they hire the _ name bandleader as an individual j jorporated" contractor, who in turn employs the ' musicians. Hence, they argue, the : bandleader and not the theatre or night club operator is liable for the taxes. Recently the N. Y. Unemployment Insurance Board ruled against the Brandts' vaudfilmers, Flatbush (Brooklyn) and Windsor (Bronx), Loew's State on Broadway and the N. Y. Biltmore hotel in a case in- volving two musicians apd a vocal- ist ..with Happy Felton's orchestra, who claimed unemployment Insur- ance pay. When it was discovered no taxes had been paid for thern, charges were brought against the theatres and hotel. The. referee claimed that the theatres and hotels, by .retaining the right to call re- hearsals and routine the shows, were the employers and not the band- leader. Boston Transcript Folds Boston Transcript officially folded after the April 30 edition after at- tempts by the employees to save it Richard N. Johnson declined to ac- cept their proposal to take a volun- tary wage cut totalling $2,891 per ■week on the grounds that directors considered it futile. Dr. Albert C. Dieffenbach, religion editor of the paper and chairman of the employees committee, charged Johnson with 'undemocratic' procedure in folding the paper without consulting all MYSTERIOUS BLAST RAZES N JL THEATRE leaders in themselves are not as easily located ais employers. The es- tablishments are permanent and can be held more quickly. Only likely splinter in the ruling as to the payment of .social security taxes by the establishments will be in the case of bands which are in- In this situation the corporation employing the musicians may be held for the tax. and not the establishment in which the band is working. But it is estimated that not more than 5% of the bands are owned by a corporction. One question which came up dur- ing the trial was whether the bands are controlled employees of the ho- tels, ballrooms, etc. At one point hotel executives insisted that they had no control over the band, but the counsel for Williams produced sev- eral printed lists of in-structions from hotels to the bands, indicating that the hotels do claim certain control over the performance rnd ac- tions of the bands working in their cafes or nite clubs. D. C. Appeal Washington, May 6. Pan-American News Congress South American newsmen are ex pressing much interest in a proposed congress to be held in Caraccs, Venezuela, early next year by the Inter-American Federation of the Press, newly formed Pan-American Fourth-Estate group. Chairman of the organization, Dario Sainte-Marie, tormer Latin-American editor of the Associated Press and an expert on politico-economic subjects, has in- formed writers here that organiza- tion is intended as a broad clearing house between the Americas.' Daniel Oklahoma City, May 6. An explosion blasted the El Cor- tez, picture theatre, into debris at Hot Springs, N. M., May 1, and dam- aged half dozen other buildings in the heart of Hot Springs business section. Blast reportedly caused by ignition of a pocket of turpentine and paint fumes in the theatre base- ment, setting fire to the building. Those seriously injured, Albert McCormick. 35, manager, and Mar- tin Silva, 21, were dug out from a mass of timber and brick that filled the basement where they were. stockholders, some of whom were del Solar, Chilean now heading Life RKO-Goldwyn ^Continued from page Maestros Not Responsible Chicago, May 6. In a sweeping decision that will affect musicians and users of mu- sicians throughout the country. Fed- eral Judge Charles; E. Woodward here ruled last week that orchestra leaders are not employers of their band members and therefore are not required to pay social, security taxes for them. It legally established the ruling made several years ago by James C. Petrillo as chief of the Chicago Federation of Musicians that the band leaders were not to pay so- cial taxes for their members, but that the government must look to the hotels and otheir establishments (or such payments. Judge Woodward's decision was based on a case brought by band- leader Griff Williams. The action was generally recognized throughout the industry as the test case for the entire problem. In 1938 the government assessed Griff Williams $536 for social secur- ity taxes which Williams paid. He then followed up with a request for a refund but was refused, whereupon he instituted suit for the refund. His attorneys were Samuel Ansell, na- tional counsel for the American Fed- eration of Musicians, located in 'Washington, and Charles Rundall of Chicago. The Williams side had the complete backing and blessing of the AFM, naturally. Establishment Is- Employer Further court fight is in prospect before Uncle Sam agrees the leader of a name band is not an 'employer' in terms of the socicl security laws. Appeal is scheduled by the Justice Department from ruling in Chicago . last Thursday (1) that baton-wield- ers are not liable for the payroll taxes. In series of interpretations and advisory opinions during the last five years, the Internal Revenue Bureau has held the leader of a name band is the person subject to tax, though every case is an individual proposi- tion, involving the question of who has the power to hire and fire. In general. Federal authorities hold that hotels, etc., hire a particular unit to do a finished job, and the band leader is just as responsible for pay- ing taxes on the compensation of his tunesters as is the dairy company or bakery which supplies milk and bread to the establishment Bills Next Week ; Continued from page 17., Frank Natalo Mike Sanaretto Vllln Ma«1rld , PJtzl Oovnto Ore I Mnrk LnneV Billy .Tohnnon ^ .^hnd^H of Rhythm Oolvert & Wolfe Vvonno Nforel Mario Ilnrinbn ;( Jp-kfl BOSTON HviirlirnmlHT In the final decision. Judge Wood- ] T,.n,.,n .\'yo Miiylicw Ore .Snnrtrn D'Arnez Ore CM Phclnn l>nvft l-'orman employees. Workers made jobless number 229. Paper continues to publish a one- sheet dummy to hold the AP fran- chise. Publisher Richard N. Johnson, in a farewell etditorial, paid heed to the 'stamina' that publication during the last week required for the em- ployees. He said: To publish during this last week has required stamina of the first order. The employees' vote to do this was unanimous. On Monday and Tuesday last, em- ployees voted to donate a por- tion of their wages for the next two weeks. The company's note holders agreed to share this load equally if any promising sound alternative to discontinu- ance developed. No such alterna- tive has been forthcoming: In their judgment, the response to the subscription plan, though generous, is insufficient to war- rant any hope of success In any reasonable period of time.* One of.the.best known.newspaper.^ >nen in the east, John K. Hutchens, drama and film editor of the Tran- script, is joining the city staff of the N. Y. Times May 12. Time's Air Express Edition Time magazine last week came out with first issue of its Interna- tional Air Express Edition, espe- cially prepared for plane delivery to Latin America. While copies of Time ordinarily took about three ■Weeks to reach readers in Latin America, and in some cases six *eeks, the new edition has facili- tated transit to the point where sub- scribers get their copies within sev- eral days'. The air edition is $10 a .-•.nd Time's "La Marcha del Tiempo' Spanish .syndicate, is second in com- mand. La.st Pan-American newspaper- men's conference was in 'Valparaiso, Chile, in 1936. Arranged by del Solar and Carlos Davila, former president of Chile who's now feature writer for several U. S syndicates, it accomplished little. Mpls. Dallies Consolidated Consolidation of the Minneapolis Tribune newspapers, the Morning Tribune and p.m. Times-Tribune, with the Minneapolis Star-Journal, p.m., has resulted in the elimination of one of the two Sunday newspapers, transfer of the physical publication of the Morning Tribune to the Star- Journal plant and a boost in the price of the dailies from 2c to 3c in order 'to insure the continued existence of all three Minneapolis dailies.' Announcement stated that the pub- lication of the two evening papers along with the one morning sheet will be continued the same as pres- ently, with separate editorial indi- vidualities preserved. 'It is an open secret that for many years the Minneapolis newspapers, as a whole, have been operated at a loss,' the announcement said. 'It has long been apparent that casualties were inevitable unless some readjust- ments were made. The readjustment has been made in order to insure the continued existence of the three dailies. It gives the stations more assurance of permanency of life than they have had in the past.' Radio station WCTN, jointly owned by the Tribune company and St. Paul Pioneer Pre.'s-Dispatch, is not in- volved in the newspaper transaction, and its ownership remains entirely unchanged. What effect the 're- although executives huddled follow- ing the RKO session in the morning. Robertson, who is executive man . ward ruled that the entire band is ' [ employed by an establishment and "that the establishment must be held I for the payment of the social se- ; curity. \ There are some rumors that the government may appeal the Wood Uuiniin Talftvpi-.a D DnlorCM Orl Cnrinon Itllnxtriili'H Kni'l nnlido Ore Ttwyd Ilcftlhon 4 iit>l,]iH Hiilliuiiln ft .M'li olni C'UHii .^laiiiifin ager of Rockefeller, Inc., takes the .^^g^^ ruling, but this is not likely If'-.V^ViL"',;;, place of John Parson, resigned, it is indicated that the social.',:ir:,'y'M',!A»l.rr the board of directors. Board also , security board itself .<!ees the de-' "■'i> ^'-i'"'" named Kenneth B. Umbre.t as as-; ^jjio^ j^e final solution of the i;;r/E'i"?.JH'hl.y sistant spcretary. I security tax problem as far as '^r-wi .Mnnnnn cih Instead of picking up some 17,000 traveling bands are concerned shares of K-A-O preferred held by Mike Meehan interests, Atlas Corp. (Floyd B. Odium) took advantage of terms in the original deal made last December, and obtained a 60- day extension of the option. This gives Atlas until late in June to pick up the additional preferred, holding about 9,000 presently. Several reasons were given in the trade for Atlas' failure to pick up the additional K-A-0 preferred shares. One is that details con- nected with the final consummation of . deal have to be ironed out An- other more involved one is that Od- ium wants to wait two months more before assuming, dominant control of the theatre subsid in the RKO group. Odium also has some 1,200,000 shares of RKO common which he secured for his Atfas (iorp. as a long-term investment While this does not constitute con- trol of RKO, other interests such as the Rockefellers, having a stake in < llih .MiiyHllr It .SO happens that due to the mix- iiiinn> w^mUh orc up on the security tax, plus the ";;u"hoVu""'''" " number of traveling bands in the ijiano kio business, that neither the bands nor the establishments have been paying the social security tax, with the re- . suit that the government has lost an ' JiiL't"-ilf^B-ion. estimated $3,000,000 to $10,000,000 .Muy Teeia in the past five years. Further- 1 frtjconout irirove more, the government may collect •'^•''^'"'y Ain/jri Ore only a portion of these back taxes nol>crlHonH dull Viinlt>' Fnir Kol Nlrn Ore since the statute of limitations places a three-year limit on back taxes. Hotels Opposed Hotel association was active in fighting the case here and is under- stood to have worked closely with the government. This goes back to 1936 when the hotels opposed any ruling which would have the estab- lishments pay the social security tax. Their plea was that they entered jM'irfam'j'ohnBon into a deal with a bandleader who | was an independent contractor, and ' i.<.w York that the bandleader hired the mu-: ^voo wiiiie Dcs of the corporation. Also Odium is reputed to be convinced that every- thing is not as smooth as it might the comTany7"are"7eported"v7t"aliyls' to work for him. The gov-I j„{;;',J Ge"riio"ore concerned in the smooth operation ernment at that time i.ssued a ruling i m-iii.t that the bandleader was the em- fcip iionn.-in Ore plnyer. r.ui iiic on-y . 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