Variety (June 1942)

Wednesday, Jime-S, 1942 PICTURES -if RKO B. R. QUEST SIMPP, Others, Makiiig Last Ditch Stand Against the UMPI Plan But h lib Field It Is Gaming Support Forces_in opposition to the United Motion Picture Industry plan, em- bodying sales in groups of 12, plus conciliation, are .getting In strong, late licks against the new method of selling films, but it is discounted in informed circles that any of the dis- - trlbutors, signatory to the. decree, will kick over the traces, as reported they" might All of the Big Five (Paramount, Metro, Warner Bros,, 20th-Fox and BKO) have agreed to the plan and If any of these backtrack at the last' moment it will be a surprise to the UMPI committee of -the whole of which William F. Ro.dgers is chair- man, as well as to all nine members of the exhibitor subcommittee. However, as Harry Brandt, pres- ident of the Independent Theatre Owners Assn. of New York, points out, certain interests are gunning against the unity movement but that the encouraging attitude of the De- partment of Justice has not changed one iota.' In addition to the Society of Inde- pendent Motion Picture Producers of Hollywood, which has been blasting the UMPI plan, various civic and other organizations have been stirred against It, Including, from ac- counts, the Civil Liberties Union of N. Y. Part of the opposition seems to stem: from the public interest point of viewj on the grounds that the public will not be so well served by the UMPI sales plan a^ it has been uhder the decree. Except to theorize .tii&t the quality of pictures may not be so high under UMPI sell- ing, these proponents are unable' to explain why Uie buying and selling of film, as between- the decree and UMPI, affects the public interest and how. As a matter of fact,. under UMPI selling, an exhlb is permitted cancellations, whereas under the de- cree he has to play everything he buys. Dopbt DIstrIb Beversala It Is highly doubted that any of the Big Five will seek to crawl out of the UMPI plan, nor that Warner Bros, and Paramount will hold out for long on conciliation features of UMPI which they' rejected In favor of. working, out their own problems with accounts'. Understood, how- ever, that both may come along on conciliation with Warners regarded as more promising in this connec- tion than Par. 'While it Is no secret th%t gome of the distributors were not anxious to give up decree selling, because it has been profitable to them with films sold singly at will, among other proved the UMPI method of quart- erly sales In blocks up to a maxi- mum of 12 pictures. Joe Bemhard okayed for Warners, after consultation with Harry M. Warner;. Ned Deplnet signed up for IUCCr"after getting the approval of George J. Schaefer; Neil F. Agnew did the same after 'going to Barney Balaban; while Rodgers for Metro and Tom J. Connors of 20th ap- proved for their companies on their o'wn Initiative. Despite any bombardment of the Department of Justice by enemies of unity, tradesmen are of the opinion -that the D. of J. will have no hesita- tion In approving the UMPI plan be- cause it takes them ofT the hook' and rids the department of a 'red hot potato' (the decreed. Fresh Blast by Producers The SIMPP, which includes pro- ducers such as David O. Selznick. Charles Chaplin, Walt Disney and Sam Goldw3m, -whose pictures are sold separately, has addressed a fresh blast against UMPI to Thur- man Atnold, assistant attorney gen- eral, who has' indicated that what- ever the majority of the exhibitors want will be okay with the D. of J. ' In its communication to Arnold, the SIMPP says in part that the protection of the public, the exhib- itor and the producer against any (Continued on page 22) - Odets' Stinger Hollywood, June 2. CliAord Odets turned in a screenplay of 550 pages for the Warners musical, 'Rhapsody In Blue,' based on the life story of George Gershwin. Average musical script runs about 120 pages, and normal length in straight screen drama Is about 180. Jerry Wald, pro- ducer, has enough material for two pictures. RKO Theatres Salvage Scrap For Uncle Sam The RKO circuit, operating around 100 theatres, is combing all of them from cellar to garret for any salvageable material which may be of use to the Government Reported a lot of metals and other material, which can be turned to the war ef- fort are being found. ' Believed that throughout the country much could be salvaged for war use among theatres v'hich for- merly played stageshows and have a lot of steel equipment on the premises which has been gathering dust for years. Free Rides by Stndios Tabii as Robber Saver Hollywood, June 2 'Visiting firemen from Keokuk will have to furnish their own transpor- tation to the film plants under a neW ruling by the Studio Relations Committee, designed to save rubber and gas In picture productloiy Studio pick-up cars, formerly used for various non-essential purposes, will attend strictly to the film business from now on. ' Among those barred from free rides are special hairdressers called by sta^s from downtown shops, messengers carrying scripts to ac- tors, and stUl photographera ■ Xn |ii»i|) » > 'itiMjwr i»^ji»fe!*-^yor the duration, stills will be shot on the lots, actors 'will carry their own scripts and femme siars will have their tresses done up in their dress- ing, rooms without the aid of out- side hair wranglers. On sneak pre- view trips, the studio personnel and the film wUl ride together in one bus. Gordon's Pic Deal No Bar to Stage Prodiicing Hollywood, June 2. Columbia signed Max Gordon to produce at least one picture a year, with a proviso that his film contract not interfere with bis work as a producers of stage plays. Currently Gordon has 'My Sister Eileen' and 'Junior Miss' running on Broadway. Actors' 50G Bond Bny • Hollywood, June 2. Screen Actors Guild bought $50,- 000 worth of War Bonds through an arrangement with the Motion Pic- ture Committee for Hollywood. These followed the lead of.Jhe Screen Writers Guild which re- cently voted to spend 10% of all dues and assessments on bonds for the war effort SEVERAL GROUPS SHOW INfEREST If . Successful in Bringing New Financial Backing Into Company, Schaefer and Malcolm Kingsberg Would Head New Admin- ' istration—Odium Report- ed Asking $6,000,000, Plus Profit, for Holdings MAY ADJOURN MEETING (3eorge J. Schaefer, RKO prexy, and Malcolm Kingsberg, v.p. of RKO theatres, have reportedly been work- ing to Interest several new financial groups, which they would head, to come into the company. Eleventh- hour try, if successful, might result in the postponement of the stock- holders meeting following the ses- sion'called for today (3) at Dover, Del. Understood that any group Schae- fer and Kingsberg would- head would have to be prepared to ab- sorb the Atlas Corp. (Odium) hold- ings, valued at $6,000,000. Floyd Od- ium, who has put up coin so far without any return on investment would likely hold out for a profit also. Failing entry of new group to come in—and- several with show business and Wall Street connec- tions have been mentioned—under- standing is that a change in the (Continued on page' 22) Haysites May Get Their 1939 Salary Cots Back Haxs office directorate is sched- uled to meet June 10, being the reg- ular quarterly session. Certain'bud- get matters. Including a decision on the Industry's public relations cam- paign and foreign coin, are likely topics to come up. Understood that the matter of restoring many of old pay cuts at Motion Picture Producers & Dis- tributors Assn., made late in 1939, extending up to 20% shortly wUl be taken care of because losses In the foreign market have not proved as severe as originally feared. Disproportionate Salaries, Bonuses, Expenses, Etc., to Be Curbed by U. S. In Closer Check on Tax Statements Jnst Like Dad Hollywood, June 2. Lon Chaney, Jr., continues in the family tradition as star In another chiller, The Mummy's Hand,' starting this week with Dick Foran and Elyse Knox In romantic roles. Thus far the younger Chaney has followed in his father's foot- steps with such horror films as The Monster,' 'The Ghost of Frankenstein' and The Wolf Man.' Cut Prints To SaveFihn20%; Also Trailers Hollywood, June 2. In a move to conserve.film raw stock, print consignments on A pro- ductions to exchanges may be cut 20%. One major has already taken that'step and others are expected to fall In line. Some majors turn out as many as 400 points per subject. Another move under consideration Is to trim trailer footage by half, thereby saving tens of millions of feet .of raw film annually. This would ' also eliminate the necessity of reducing the number of trailer prints going oat on each picture. U. S. Uses More Stock Anticipated - Government order cutting raw film stocks for use by Commercial studios - may .be fur- thered by increase iise of film by the U. S. Itself. Understood that during the past three, months the Government has actually bought $4,000,000 worth of raw stock and that. In addition to use of film for varied army purposes, the placement of a camera In every plane, tiiat Is flown will no doubt vastly step up the amount of nega tlve to be exposed for non-com- mercial purposes. AcciytJB^N Salaries Agam Frowned Upon Within the Business Publicattoh ofTligKest-salarled ex- ecutives' earnings last week by the Securities and Exchange Commission, now headquartered in Philadelphia, furnished the film business little it did not already know, since many peak salaries had been released by the SEC earlier this year. It merely pointed up the fact that nearly every year the top salaries are Issu^ by Government agencies at least twice and, as this year, three times. While It does not paint the film business In a nice light, giving rise to the old chestnut that 'no man could be worth that much money a year,' the industry generally does feel the unfairness of constantly air- ing salaries when admittedly it is just such big salaries that are help- ing in the war effort. Also the in- dustry is doing its full share In money and work to back the war. SEC release admitted that the fig- ures do not represent the largest in- comes In the U. S. because many who serve with small salaries or no salaries have big returns from in- vestments (via vast stock holdings that pay big dividends). Also the incompleteness of the report was In- dicated by the statement that many I ahiiual reports, Irbni which the fig- ures were obtained, have been held up by the SEC for possible censor- ship purposes. These include many top-ranking executives whose firms are engaged in war production. . It is viewed In the trade as un- called for during wartime, because it does not break down Just what per- centage of these various salaries go to maintaining war production. |600,ee« for Taxei Because Louis B. Mayer, with an income of $704,425 as production head for Loew's, Inc., has been head- ing - the procession of published fig- ures, industry statisticians have broken down the probable total he pays the Government In taxation into war material. While Impossible to tell the exact amount, because the 1942 tax bill has not become a law, conservative estimates are that near- ly $600,000 this year will go to the U. S. in taxes. Nor do the salary figures take into account what the stars and other in- dustry executives and workers have contributed to various war organiza- tions. The Hollywood 'Victory Cara- van raised $800,000. The industry (Continued on page 54) Washington, June 2. The Roosevelt-Morgenthau sugges« tion for a $25,000 ceiling on Individ*, ual incomes appears definitely dead, but the Treasury Department has not abandoned Its effort to Induce Coifgress to plug various loopholes in thei tax structure in a way that con- ceivably would cause much discom- fort In the film industry. Latest move to throw further re- strictions arotmi corporations—thus indirectly cutting down on the amount of money high-bracket In- dividuals may receive—takes- the- form of a Treasury announcement all corporate returns will be scrutin- ized far more intensely to make sure that 'by no form of trick or chican- ery Is any one taxpayer permitted to escape his just share and thus to throw unjust burdens on others.'" Tacit admission that the $25,000 ceiling idea (or any other specific, limit). Is dead was seen Thursday (28) when Secretary Morgenthau made an appearance before 'the House 'Ways & Means Committee be- hind closed doors ' to talk - about means of Insuring fthat no-man and no corporation shall be permitted to make exorbitant profits out of the war effort.' Not a 'wiSrd was ^ald abo.yt writing Into law a maximum on the amount which an indi'vidual should be entitled to keep or earn. Sop to Little Fellows Since the suggestion first , was made .a month ago, no member of the Ways & Means group has moved to incorporate a salary limit in the tax bill now being framed. Gener- ally, the lawmakers regarded th« recommendation as .'.a grandstand play, -designed to keep the little fel- lows less bitter about the prospect of sharply lowered - exemptions and higher normal and . sur-tax rates,' With only a tiny proportion of -the population enjoying net Incomes above $25,000, both Democrats and Republicans laughed at the thought. The proposal—If made in seriousness-, and not for political effect—appeared to have little merit to the perplexed' House committee,' which still i> (Continued on page: 64) '> Connors, Lawrence May Go On 20dhFox Board Twentieth-Fox stockholders at a special meeting jresterday (Tuesday) voted to Increase the size of direc- torate from 12 to not less than threa, nor. mp.cejtha.n 15. Board of direc- tors Is slated to meet "tomorrow (Thursday) when It will fix tho directorate at 14 and elect the nec- essary two additional members. -Tom Connors, vice-president and sales chief,' Is skedded to be one of new directors named. Other member may be Lau^y Lawrence, recently named foreign sales chief. ' . Louis K. Sidney to Be Loew's Asst. Treasurer With Nicholas Nayfack's depar- ture from Loew's, Inc., into the U. S. Navy, his duties as an assistant treasurer- have been taken over by Louis K. Sidney, Metro studio exec. No official appointment or elec- tion of Sidney thus far, this beinf up to the directors who do not meet until today (Wednesday). Homblow at Metro Hollywood, Jtme 2. Arthur Homblow moved into the Metro studio as a producer today (Tues.) after winding up a long term of years in a similar capacity at Paramount. Before he left, Hornblow com- pleted shooting details for 'Hong- kong,' which will be finished by an- other Par producer, still unan- nounced.