Variety (May 1941)

WeineeAfi May 28, 1941 PICTURES SILVERSTONE-UA PARTING? Joe Schencks Status bproves . In the maze of discussion in film circles, sparked by the U. S. grand Jury Indictments of George E.; Browne and Willie Blofl, lATSE of- ficials, on extortion and conspiracy charges, opinion Is expressed fre- quently' that, as the entire picture of labor union and industry rela- tionships Is uncovered, the legal status of Joseph M. Schenck and his appeal from conviction for Income tax evasion Is greatly improved. Schenck's difficulties with the U. S. Government started with al- leged 'evasive i^nswers which he gave to FBI operatives who ques- tioned him about the Bioff statement that the latter, in 1938, had received a *l09n' of $100,000 from Schenck. As related to the U. S. grand jury in New York the transaction be- tween Schenck and BioiT has fantastic, Hessian angles. BiofI is alleged to have received the $100,000 in New York and to have coerced Schenck to assent to Blofl's 'explanation' to FBI that-Schenck had lent him the money. So Involved did the 'explanation' become in its various versions that Bchenck was Indicted on a perjury charge, which still exists. Full and complete baring of the alleged extortions lifted the payoff cums'to $550,000, as paid by major companies over a period since 1938. How Importantly the new and apparently accurate version of the Echenck-Blofl 'loan' will figure in the Schenck appeal for a new trial of tax evasion conviction is conjecture, but opinion generally, among those close to the Intimacies of the situation. Is that Schenck's case on appeal Is strengthened. An, angle that Is being stressed Is that Schenck was victimized In a manner from which he was unable to extricate himself without in- volving others. Repercussions of Film-^Labor Scandal May Bring New Congressional Query; Top Picture Execs Before Grand Jury Revelations that George E. Browne, president of the most powerful trade union in the amusement industry, the International Alliance of The- atrical—Stage Employees, and his Hollywood henchman, Willie BiolT, had conducted a systematic blackmail against major film companies for thie past five years under strike threats. Is the astounding news which has shaken the Industry within the past week. Criminal indictment against the pair alleges they have extorted for their personal benefit $550,000, of which $400,000 was paid under duress In one year—1936. Intima- tions are that the total will be larger ■ when the Grand-Jury Investlgation- in progress in New York is finally closed by. U. S. Attorney Mathlas Correa. The parade of presidents of the different film companies appearing as witnesses before the federal grand jury Included the heads of four of the major'picture concerns and other top executives. Among those called upon to testify in the labor scandal were Nicholas M. Schenck, president of liOew's, Inc.; Sidney R. Kent, of 20th Century-Fox; Barney Balaban, of Paramount; Louis B. Mayer, vice- president of Loew's, In charge of production; Major Albert J. Warner, vice-president of Warner Bros., and Pat Casey, chairman of the film stu- dios' labor relations committee. Joe Schenck Aftermath liSitest airing of labor illegalities in the film Industry is an aftermath of the Joseph M. Schenck income tax evasion trial, according to Correa, (Continued on page 20) Edebnan, Kanfman Shift To CoL Prod. From 20th Hollywood, May 27. Two new producers, Lou Edelman and Edward Kaufman, move into the Columbia studio this week. They were formerly with 20th- Fox. GOLDWYN EAST, SEEING DEPINET; BIOFF AI^? Samuel Goldwyn arrived in New York yesterday (Tuesday) from the Coast, accompanied by Lynn Farnol, his eastern press rep. Producer will remain east untU Friday. It's understood that Goldwyn is In Manhattan to testify before the grand jury on the Bioff case. .While east he will also talk with Ned Depinet, RKO distribution chief, on "The Little Foxes,' which that com- pany will released E H. HOFFMAN BACK IN THE BIZ AS PRODUCER Twenty-six pix a year will be pro- duced and 38 to 44 distributed by Liberty National Pictures Corp., or- ganized by M. H. Hoffman. Out of the film industry since the death of his son, M. H., Jr., several years ago, Hoffman was the founder of Tif- fany, onetime g.m. of Universal and prez and g.m. of AUied and Liberty Pictures, indie companies. He is a veteran in the film business of more than 25^years. Hoffman declared Monday (26) he will make and distribute 'bread and butter' films, which is interpreted as low-cost product to be released on fiat rental for bottom half of duals. They'll be action pix, mellers, mys- teries and westerns. Liberty National will produce 26 features itself and take on 12 to IS additional made under franchise by indie producers, Hoffman said. He declared that the company will en- courage indie or cooperative produc- tion, participating in financing of some of It. Outside producers 'will not be limited to low cost produc- tion,' Hoffman stated. New York office has been set iip in the RKO Bldg., with Hollywood g.h.q. likely to be in Selznick-In- ternational (formerly RKO Pathe) studios in Culver City. • FEUD OR FATIGUE? Bettc Davis Takes Leave of Gold- wyn's 'LlUle Foxes' Guttinan, Producer Hollywood, May 27. Charles Guttman has been signed by Hal Roach for an associate pro-, ducership on streamlined 'pictures for United Artists. Guttman had been In Metro's for- eign sales department for 14 years. Hollywood, May 27. Bette Davis, star of "The Little Foxes,' checked out of the Samuel Goldwyn studio on account of ill- ness and will be out of the cast for at least another week. There had been talk that the actress was feud- ing with William Wyler, director. Croldwyn announced that there was no hard feeling and that Miss Davis was taking a layoff, due to the strain of wearing tight corsets de- manded by the script, which deals with the early 1900 era. 2-yEllll CONIRIICT AT S3 JOO A lEK Negotiations for Top United Artists Executives Bow- out Reported Under Way —Korda, Chaplin and Pickford Allied on One ' Side—-Friction Reported Heretofore Fairbanks Widow s Protests Over Amount Balks Deal Abnost Set For Co. s Takeover of His Stock in UA BOWL 'EM OVER Stadlo Gates Like 10-Plns to Femme f Keglen WANTS 100% PAYOFF Hollywood, May^ 27. Negotiations are reported in prog- ress, It has been learned, for the bow-out from United Artists of Murray SUverstone, company's chief of world-wide distribution. Huddles are taking place on the subject be- tween Silverstone and Charles C. Schwartz, his attorney, on the one side, any three of the owners of UA and their attorney, Edward C. Raft- ery, on the otheh. Owners are Alexander Korda, Charles Chaplin and Mary Pickford, with the fourth shareholder, Douglas Fairbanks estate, undersjxiod taking no part. Holding up Sllverstone's exit is his demand for a 100% .payoff of his con- tract. He Is said to be getting $3,000 a week, his pact having two more years to run. Total simi Involved, therefore, would be around $300,000. Negotiatioi)s for Sllverstone's de- parture, while coming as a surprise at this time, were not entirely unan- ticipated by the^ industry. It has been bruited about for some time that he and the owners were not seeing eye to eye on many subjects, ranging from production to sales. Due East Soon SUverstone and Arthur W. Kelly, v.p. In charge of distribution, are due to return east over the weekend after parleys with UA producers on pictures to be announced at the com- pany's conventions in-jnld-Juiie.' - ■ Kelly arrived on the Coast yester- day (Tuesday) from New York. Judge Davis (Wm. Fox) Case Goes To Jury Thursday Philadelphia, May 27. J. Warren Davis, retired senior Judge of the U. S. Circuit Court of Appeals, yesterday (Monday) cate- gorically denied he had 'ever ac- cepted any 'loans' from William Fox, bankrupt ex-motion picture magnate, with whom he Is charged to have conspired to sell justice. Judge l5avis took the stand In his own defense after Fox had testified he had given the jurist $27,500 In 'loans' for which no collateral was ever taken, no notes signed and no money ever repaid—while litigation affecting Fox's bankruptcy proceed- ings were pending In Judge Davis' court. The 74-year-old declared: 'Al- though I have been poor, not one dishonest dollar ever found Its way into my pocket or possession.' Judge Davis declared that five $1,000 bills which his daughter, Mrs. Mary Davis Firestone, had placed in a St. Augustine (Fla.) bank, were repayment of loans from a "Trenton junkman friend. The government had charged that the bills were given the judge by Fox during a rendezvous at a downtown hotel. Fox has pleaded guilty to the con- spiracy indictment and became the government's star witness. He will be sentenced after the 'completion of the trial. Co-defendant with Judge Davis is Morgan S. Kaufman, Fox's former attorney, who Is "accused of (Continued on page 22) * Hollywood, May 27. Women bowlers holding their an- nual tournament bowled over a lot of expenses In the picture studios, where the fiinandal departments have been shaving down costs by restricting visitors on the sets. Armed with letters from home town exhibitors and editors, about 400 gals crashed the gates for strikes and spares, right In the midst of a heavy rush of tourists who are see- ing Hollywood because they can't see Europe. OUTSIDE 'NAME' TO SUCCEED JOEBREEN? With Will Hays still recuperating from double pneumonia and strep throat In a Chicago hospital, dis- cussion on a possible successor to Joseph I. Breen as head of the Hays office production code administra- tion this week turned to possible se- lection of a 'name' executive. This took In the possibility that a man new to PCA work and possibly one not In the film business today would be picked. Breen's successor, besides being a 'name/ would - have to be SQjnt person. aatisfadorjL . to . the Catholic' church and other groups. Whoever Is picked. It is likely that Francis L. Harmon, eastern PCA chief, will go to the Coast to help break In the new executive. Har- mon conceivably would be given the position U hU duties as executive assistant to Hays and as national defense film business coordinator did not require his presence in the east. Geoffrey Shurlock, first assistant to Breen, who had been mentioned as possible successor may. not accept the position even if offered him. New indication li that ha will go along with Breen at his assistant when he moves over to RKO as studio head. Breen Is still carrying on as PCA chief although kept from his work lately by lUness. He moves Into RKO early next month. Latest advice from Hays In Chi- cago Is that ha Is coming along nice- ly but that the doctor will not i>er- mlt him to return to work until fuUy recovered. Deal whereby United Artists would have bought the late Douglas Fairbanks' stock holdings in the company was all set for signing last week when a squawk from the ac- tor's widow, the former Lady Sylvia Ashley, exploded it. Whether it can be patched up, has only been de- layed, or Is off entirely, cannot be determined "yet. Amouqt that UA had agreed to pay Is a closely-held secret, but It has been authoritatively learned that It was more than the company recently gave to Samuel Goldwyn for his similar 20% interest. (lOld- wyn got approximately $300,000. Mrs. Fairbanks' beef is that the amount UA and the trustees agreed upon was too low. Bank's Stance Negotiations, It Is learned, \ver»- on for several months between the distributing organization and the Bank of America, the California trustee. Two weeks ago, the deal became so hot that Edward C. Raft- ery, of O'Brien, Drlscoll & Raftery. UA's counsel, flew west to conclude the actual signing. Just as .everything was set. Bank of America heard rumors that Mrs. Fairbanks was dissatisfied and was being vocal about it. She has actually nothing to do with the sale of the stock, being a beneficiary and not an executrix, but bank officials feared her squawks would- reflect on them and preferred to call the whole thing off father than bring on an unpleasant situation. Fairbanks' widow has been a thorn in the epidermis of the trustees almost since her husband's death. Among things they resent are re- ports of allegations by her that she has received nothing from the es- -tate; -although they -say -she -has been- gettlng $3,000 a month since the day of Fairbanks' death. She has also been living In Fairbanks' Santa Monica home, which trustees have recently heard she has rented out at $1,000 a month. £. V. RICHARDS DUE IN FOR N.Y. CONFABS Fairbanks' Beitlnr Place Hollywood, May 27. Body of Douglas Fairbanks was removed Sunday (25) from a tem- porary vault to a $40,000 - marble mausoleum In Hollywood Memorial Park. Charles Chaplin delivered a eulogy at the services, which were attended -by Fairbanks' widow, the former Lady Sylvia Ashley. Frank J. Harris- Health Forces Him to Rdsign GOP Pitt Politico Post E. V. Richards, president of Para- mount-Richards (Saenger), may ar- rive In New York shortly to look in on h.o. Par executives after a long absence. He has missed many board meetings. He is at present on his yacht off Pensacola, Fla. Yacht, on which Richards spends much of his time lately, was formerly owned by Stan- ton Grlffis, chairman of the execu- tive committee of Par. Col.'s Donald Davis Hollywood, May 27. Donald Davis, Broadway play- wright, who did .'Ethan Frome,' pro- duced by Max Gordon, among other plays, has been put under contract by Columbia. First assignment not yet set. Pittsburgh, May 27. Former State _ Senator Frank 3. Harris, head of the Harris Amus. Co. in trl-state district, has resigned as Allegheny County GOP chairman on account of 111 health. He's been In hospital for several weeks conval- escing from a breakdown and phy- sicians told him that job of direct- ing approaching city-county political campaign would be too much of a ;strain. Harris, who was one of original Willkle men, was originally drafted for the GOP job and then was elected without opposition to two full terms, in 1938 and 1940. Al- though nominal head of theatre cir- cuit, his interests have been chiefly politics and active management has been in hands of a nephew, John H. Harris, son of late Senator John P. Harris, who founded chain with lata.-. Harry Davis. A son of his, however, John Harris, Is connected with the chain In a managerial capacity.