Variety (June 1942)

Wednesday, June 3, 1942 PICTURES 7 THEAM BLDG. MAY EASE $5,000 Ceiling on Studio Set Construction MoM by WPB Ceiling on studio set construction •was reportedly given'a new and less onerous interpretation by War Pro- eduction BoSrd officials'laH weeK. In- dependent producers without studio set backlogs, complaining about diffi- culty of working under these con- ditions, were advised that the $5,000 limit would apply to each set and not per picture. In this way pro- ducers could build a sufficient num- ber of sets without curtailing effec- tiveness. In every case, of course, the $5,000 limit applies only to those matfrials available in sufficient quantity. Steel, lumber, copper, rubber and similar restricted materials would not be obtainable. Possibility was also foreseen that producers may be permitted to build large sets in two or more sections, with each section allowed maximum of $5,000 in materials. Barring sudden change In war con- ditions, belief still prevails that the $5,000 construction ceiling, was not Intended to apply to stUdio set build- ing. For the Duration Spartanburg, S. C, June 1. Heavy file of blueprints for chain and private exhibitors' scheduled new houses and expansions have been pigeonholed for duration, due to OPM restrictions. Result, al> ■time high theatre construction boom expected to start hammers banging and saws singing Immediately after next armistice. Dixie had heaviest building program on record well un- der way when OPM blocked further construction. Several new houses, already under way, Barely got un- cler the wire. $5.2!)2,541 FOR LOEWS 28 WKS. Despite heavier taxes and $1,700,000 Increase In coin set aside as reserve for contingencies, Loew's, Inc. (Metro) net proat for the first 28 weeks ended last March 12 totaled $5,292,541, as against $5,141,135 in comparable period ending in March, 1941. Corporation's operating profit after subsid preferred dividends amounted to $12,473,114, as compared with $9,473,534 a year ago. Loew's reserve for Federal taxes rose more than $1,226,000 to $2,849,830. Company set aside $2,600,000 as re- serve for contingencies as compared With only $900,000 in the 28-week period ending March 13, 1941. . Fact that the corporation retired Its 6% preferred shares on Feb. 15 this year, did not help common share earnings in' this period but will In subsequent quarters. Per common share earnings rose to $2.91 as against $2.80 in the corresponding period of 1941. Even • • greeder improvement comparatively is expected in forth- coining quarters since Loew's no longer has to payout dividends on Its preferred shares. Loew's (Metro) Earnings, 1930-42 1930 $14,600,332 1931 11,829,993 1932 7,961,314 1933 4,034,290 1934 7,479,897 1935 7,579,744 1936 11,076,823 1037 14,426,062 1938 9,924,934 1939 9,841,531 1940 .•. 8,908,469 1941 11,134,593 Community Hitch-Hike , . . Philadelphia, June 2. Philly exhibs are beating the gas rationing by pooling their cars whenever traveling to the outlying sections of the city. A blackboard has been set up In front of a haberdashery shop on Vine street at 'film row.* Exhibs with cars chalk up their destination and time they are leaving. All exhibs headed for the same general direction meet at the blackboard and thus save tires, gas and at the same time have somebody to listen while they chop up some ex- change manager. - WB 2ii-WEEK NET UPS $1,019,511 TO $3,802,055 Warner Bros, net operating profit for 26 weeks ending last Feb. 28 totalled $3,802,055 as against $2,782, 544 in the corresponding period of the previous fiscal year. Net profit before. charges for amortization and depreciation and Federal taxes amounted to $9,243,457. Gross Income, after eliminating in' tercompany transactions, totalled $58,547,614, representing an increase of more than $7,535,000 over the 26 week period ended March 1, 1941. Company reported cash in the U. S. on last Feb. 28 as $10,202,286 as com- pared with $7,431,248 on Aug. 30 last year. Corporation added $525,000 as ad- ditional provision for contingencies in- respect to net assets of subsids operating in foreign territories. Be cause of war conditions, accounts of subsidiaries operating In enemy or enemy occupied territories no longer are consolidated. Hence, invest- ments In and advances to such sub- sids amounting to $268,432 have been charged against reserve for contin- gencies. Company figures the earnings in the 26-week period ending last February at 97c. per common share and $38.16 per preferred share. Divi- dends on the preferred are about $33.68 per share in arrears. WB ANNUAL EARNINGS, 193*-42 Net Profit 1930 • $7,074,631 1931 •7,918,605 1932 •14,095,054 1933 •6,291,748 1934-....... •2,530,514 1935 674,159 1936 3,177,313 1937 5,876,183 1938 *.. 1,929,721 1939... 1,740,908 1940 2,747,472 (1940 by Quarters) First quarter $642,129 Second quarter .... 376,368 Third quarter.. 932,216 Fourth quarter 796,759 1941 - $5,429,302 (1941 by Quarters) First quarter $1,276,316 .Second quarter.. — 1,506,228 Third quarter 1,650,901 Fourth quarter 995,857. (1942 by Quarters) First quarter $2,079,601 . Second quarter 1,723,654 Third quarter Fourth quarter (1941 by Quarters) First Second Third Fourth Quarter Quarter Quarter Quarter $1,936,245 $3,204,890 ^.005,331 $3,928,127 (1S42 by Quarters) First Second Third Fourth Quarter Quarter Quarter Quarter $2,627,145 $2,665,396 (Second quarter In 1941 and 1942 cov- en IS weeks Instea'fl of normal period 4f 13 weeks). ♦ Deficit. Keeping the Line Open Hollywood, June 2. Lloyd Nolan and Carole Landis share top spots In 'Manila Calling.' a tale of telephone workers under stress of war. John Larkin turned in the script for a June 1$ start at 20th-Fox. COMPLETE HOUSES SIARTEO WPB Indicates Enforcement of Order, Ending AH En- tertainment Construction Costing Over $5,000, Will Depend on Degree of Pro- gress by June 6—No Blan- ket Rulings, Each- Case Being Judged on Merits- ESSENTIAL SITUATIONS Facing Strong Opposition, Walsh Bows to Demands for lA Election; Jacobi Leading Presidential Entry Just in Passing Hollywood, June 2. Chester Conklin, comic star in the Keystone Kop days, is back on the job with both feet. In 'My Sister Eileen' at Columbia he has a seven-week job walk- ing past a basement window with only his pedal extremities showing in the picture. His trick mustache does not appear on the screen. Washington, June 2. Completion of some theatres now under construction but which can- not possibly be finished by the June 6 deadline set Saturday (23) by the War Production Board still may be permitted despite the - drastic steps to end all building not directly re- lated to the war program. Though no. official statement has been forthcoming, the policy adopted by the WPB last week indicated that enforcement of the order end- ing all ' construction costing ■ over $5,000 and designed for public amusement will. depend on the de- gree of progress made by the time the regulation becomes effective. There wIU be no blanket ruling, «ach case- must be argued individ- ually, and the decision will d epen ti on various factors. But the WPB does not mean not a' nail can be driven or lick of paint applied aft^r Saturday (6). As was the case under the April 9 order requiring Federal authoriza- tion for .work costing over $5,000, the most, recent ultimatum has some flexibility.' If the bulk of the work has been done and virtually all of the critical materials—which now in- cludes lumber, as well as- steel, cop- per, plumbing fixtures, pipe, and miscellaneous less Important items— installed on the job, the WPB prob- ably will grant' an exemption. On the other hand, projects for which all materials are on hand but for which only a small percentage has been used stand no chance of. being carried to completion. In the latter situation the supplies will be di- (Continued on page 24) ARTHUR M. LOEW AT 46 COMMISSIONED A MAJOR Arthur M. Loew, first v.p. of Loew's, Inc., in charge of Interna- tional operations, has been commis- sioned a. major in the U. S. Army and leaves this week for .active duty. He is winding up his business and personal affairs. Nicholas M. Schenck, Loew's prexy, stated that no substitute for Loew will be appointed for the du- ration. Morton A. Spring and Henry F. Krecke with Joseph Rosthal will act as an administrative committee of the international department of Loew's, with Spring as foreign man- ager. Spring was assistant to Loew, Krecke controller of the foreign de- partment and' Rosthal legal counsel. Brig.-Gen. F. H. Osborn, chief ol the Special Services branch of the War Department, requested Loew's acceptance of commission as a ma- jor to undertake important assign- ments, for the U. S. Army, details of whtCh are not revealed.. Loew is a licensed pilot and has Downs his own plane around the world several times'." He is 46. Soldiers with a Bark Hollywood, June 2. Caninb roles in the war effort are emphasized in the forthcoming fea- ture, 'War Dogs,' at Monogram. Pic- ture deals with the training of four- footed soldiers, not only lor actual work in battle but for protective service at munitions plants. George W. Weeks is slated as pro- ducer, with Billy Lee in the lead role. DISTRIBS FEAR CHRONIC BEEPERS Fine art of chiseling on filrn rent- als is expected- to gain renewed Im-, petus as result of recent talk of rental readjustments for -theatres In those areas .where shifting popula- tion to defense plant areas has de- populate'd whole counties. Field and home office distribution departments view unfavorably the wide open approach to the problem, believing the widely-heralded remarks of In- dustry tops will inevitably result In squawks from the chronic complain- ers as well as from exhibs adversely affected by the war. Stated one major .company head to 'Variety' last week, 'We have trouble enough in normal times with exhibs asking for downward rental adjustments on the slightest provo- cation. This loud talk of granting relief where necessary is practically an invitation to all the chronic squawkers to hold out for lower rentals. It may hold up deals and make it tougher to do business for a while. 'We have no intention-of adopting rental readjustments as a general company policy for theatrea in non- defense ' plant districts suffering heavily due to the population shift. However, men in the field will be given'instruciions to investigate af- fected situations and relief will be granted on the basis of necessity In individual cases.' {20,000 LOSS TO PAR AS N.Y. SCENE BURNS Hollywood, June 2. Fire caused by a transformer ex- plosion destroyed the New York street scene set at Paramount with loss estimated at $20,000. Blaze was brought under control within 30 min- utes by the 10 fire wardens'per- manently stationed at the studio, be- fore the first of 11 fire companies arrived. War Production Board will be asked to relax regulations on set construction so that this street scene can be rebuilt. Bell ToUs m Cal. Hills Hollywood, June 2. Following Governmental instruc- tions to economize on studio sets. Paramount will film 90% of its footage on 'For Whom the Bell Tolls' aniong the hills near Sonora, Cal. Location scouts have discovered California mountain roads capable of doubling for Spanish highways without a makeup. Shooting in the great outdoors will conserve much vital_ war mate- rial, but will not save' the com- pany's bankroll. The longer schedule, with additional labor and location costs, will more than offset the con- struction economies In the studio. Columbus, O., June 2. Tremendous opposition triumph registered here today (Tuesday) when President Richard F. Walsh In his' lATSE report declared that ha and every member of the current administration would stand for elec- tion at the present convention. This means that not only will the two- year term be restored, to the lA con- stitution but that an election of all paid officers will be held at Colum- bus. Rumored here for days that lA officers would get jump on opposi- tion by asking for election rather than fight it Administration waited until resolutions calling for endorse- ment of present officials were badly defeated by District No: 2,and similar resolutions turned down by at least four other districts which refused even to consider such resolutions. Previous" administration stand had been that there would be no elec- tion. Reversal of attitude; attributed entirely to' overwhelming strength of sejitfment in favor of a two-yeatf term and an election at the convensb hete. The field Is now wide open for slate-making. No change is ex- pected in the present administration slate since' members must stand or fall on their record. Outstanding op- position candidate Is Vincent Jacobi, business agent of N. Y. stagehands, but expected now that dark horss candidates will make their immedi- ate appearance, A dark horse mentioned Is Wil< liam Elliott of Boston, who was th< lA prez prior to Browne, but doubted lie will have much cbancs winning. Election will be held Fri- day (9), with nominations to go in tomorrow (Thursday). Walsh's Statement The full text of the Walsh state- ment follows; 'Among the recommendations Is one which I haye singled out be- cause it Is of immediate interest to this convention and one which I be- lieve will have an Important bearing on the future conduct of our.'Inter- nationaL 'SpeciflMIy, I am referring to the proposed amendment advocating a return to the election of officers every two years at Our regular con- ventions, which provision was in ef- fect prior to the adoption of the new International constitution and' by- laws in 1936. 'In this connection, I feel that It should be pointed out that I was elected to fill an unexpired term to June, 1944. In accordance with the provisions of Article 11, Section Six, of the International constitution and by-laws, which reads: 'In. the event of the death, resignation or re- moval from office of the president or general secretary-tteasurer of this Alliance, the general executive board shall fill the position so va- ^cated by the election of one from 'their own number, who shall hold office, for the remainder of the term.' 'Seventh Vice-President Carl G. C!ooper likewise was elected to fill a similar unexpired term. The re- maining members of the General Executive Board were elected by the delegates to the last convention for four-year terms which also ex- pire in June, 1944. The consensus of recognized legal opinion is that ihe recommendation.for return to elec- tion of officers every two years can- not legally be put into effect until the expiration of the present term of office in 1944. 'Being motivated solely by sin- cerity to again pla-:e our organiza- tion on a basis that will allow no opportunity for exploitation or a veering from biennial gatherings, I earnestly petition the. delegates here in attendance to revoke the present four-year term provisions and re- vert to the election of officers every two years. 'The present time calls for the sac- rifice of personal ambition and of selfish goals. Leadership is not m responsibility to be taken lightly (Continued on page 22)