Variety (Sep 1942)

Vednesday, September 23, 1942 PICTURES T Early Demise of UMPI Predicted Although Many Favor Contmuiiig It Fears that an early and quick funeral will be held for the United Motion Picture Industry grew dur- Inp the past week following the an- nounced desire of William F. Rodg- ers, chairman of the committee Of tht whole, to resign from that post, coupled with what amounts to an Implacable attitude on the part of Paramount and Warner Bros, with respect to giving the movement fur- ther support, financial or otherwise. Death sentence may be imposed on UMPI by the end of this week, it is said, but meantime an office is being maintained in the Astor hotel, N. Y., with Leon Bamberger, executive sec- retary, in charge. Loaned to the UMPI movem^ t by RkO, where he was sales promotion manager, Bam- berger will return to that post if the word comes along UMPI is being folded. According to latest advices, neither Par nor WB has any intention of yielding from the policy enunciated In connection with the continuance of UMPI. Both companies have been opposed'to conciliation from the start and although it was felt in inner UMPI circles that they might ultimately fall in line, under- stood on inside that the two decree duitributors feel that adjustment of disputes with their customers, through complicated conciliation (neans, such as proposed by UMPI, would encourage - the playing or politics. WB and Par prefer to set- tle their own differences with cus- tomers and have insisted that they stand ready to do the right thing aj occasion arises. Meantime, it is pointed out that some apprehension exists concern- ing the possible attitude of Thur- man Arnold, assistant attorney gen- eral, if UMPI were continued be- cause it would represent an organ- ized Industry front 'and Arnold may not like anything entailing con- certed action.' 'He gave the sales plan of UMPI a kick in the pants,' one high exec- utive close to UMPI declared, 'but only after he had strung us along, Causing much expense and cost of time." The high source suggested ^hal maybe Arnold likes publicity. Another calls him 'the unpredict- able.' Says Bodgert In his letter to members of the UMPI committee, in which he still (lung to a hope for the survival of the organization, although resigning as chairman. Rodgers noted that 'many who were close to the situa- tion and some who had discussed the plan with Mr. Arnold were shocked and plunged into bewilder- itient at the statement that such concerted action will not be made the basis of any action by the de- partment, and have wondered whether the whole plan of better in- dustry understanding would have to be abandoned,' Since, its organization $22,500 has been paid into UMPI, the five con- sent distributors (Metro, Par, WB, RKO, 20th-Fox) having donated $19,- 800, exhibitor groups $3,000. Most of this money, it is pointed out by an antagonist of UMPI, has been paid to cover travel and other expenses of UMPI committee mem- bers entailed largely in working Out the sales plan which is now a 'dead pigeon.' Holdouts Although Metro, • RKO ' and 20th are in favor of a continued exist- ence for UMPI, together with various exhibitor units who see value in con- ciliation and a revised system of arbitration, the unwillingness of Par and WB to come along aggravates the situation badly. Not only that but the Little Three (United Art- tsts, Universal and Columbia) have refused to have anything to do with UMPI from the beginning, fo'^eers, in Washington Monday irf ^""^ yesterday (Tuesday), is said to have received several re- sponses to his last week's letter ex- pressing sentiment in favor of main- taining UMPI. He is also believed tu have talked to some«of the UMPI committee members personally, but to date no meeting has been sched- uled to discuss the mat^r in a round-table fashion. This might not be necessary, especially if the ma- jority of members are against re- taining UMPI. In his letter Rodgers said: 'Regardless of what the future of UMPI may be, I feel that I must ask to be relieved of my duties as chairman. In the same breath I want you to know that I will give to whomever is selected in case you develop plans for the continuance of UMPI every possible assistance.' He threatened to resign before when exhibs balked at the sales plan distributors were willing to agree to under UMPI, but was talked into staying on the job. Brandt For It Strongly advocating the retention of United Motion Picture Industry, Harry Brandt, president of the In- depndent Theatre Owners Assn. and a prime mover in the organization of UMPI, has sent telegrams to 15 other exhib members of the com- mittee of the whole suggesting a meeting at which distributors would be asked to sit in. This action followed quickly on the heels of the letter sent out by Bill Rodgers, chairman of the com- mittee, in which he tendered his resignation. Brandt's telegram was as follows: 'You have undoubtedly received the .same letter as I have from Bill Rodgers, and in spite of present as- pect of entire UMPI situation I am firmly convinced, and I hope you will agree with me. that we exhib- itors should take hold of UMPI and save it from oblivion. UMPI, in spite of one part of it sliced away by Arnold, can do mlich to assure future unity in our business, espe- cially for us exhibitors. May I sug- gest a meeting to be called'as quick- ly as possible at some central point sponsored by all exhibitor members of UMPI and that we exhibitors in- vite the distributors to sit in with us, we exhibitors paying all ex- penses in order to show how deeply we feci about UMPI. Would app:''- ciate an expression from you at your earliest convenience.' -IIFFECTED. EYE EXHIBITION Business Casualties Result- ing From Wartime Re- strictions, or Fearing 'Non-Essential' Onus, Try Breaking Into Film Thea- tre Operations — Figure It'll Be Least Hurt for Duration Yelling Over Rentals, Percentages, Exhibs Reluctant to Make Deals Until Seeing What the Circuits Do \^ — STATISTICS Meyelrberg Asks $70,000 Of Disney, Banker m Suit Charging Breach of Pact A suit against Walt Disney Pro- duckions and Kidder, Peabody & Co.. financing house, was disclosed last week in which Michael Meyerberg. plaintiff, seeks $70,000 as compen- sation for services allegedly due him in negotiating a business agreement between the two defendants. Action was filed in N. Y. supreme court ask- ing an examination before trial of Roy O. Disney, brother of the pro- ducer, and Frederick L. Moore, execs of the defendant firms. Meyerberg claims he had helped bring the two organizations to- gether during 1939 and 1940 and that there had been an agreement to compensate him. His complaint cites the transaction in April, 1940, when the financial house handled the sale of 150,000 shaves of Disney preferred stock, valued at $3,750,000. Answers filed by the defendanl.s deny the agreement and claim that Meyerberg acted individually and without authorization. Joan Leslie New Terp Partner for Astaire Hollywood, Sept. 22. RKO borrowed Joan Leslie from Warners for the romantic-dancing role opposite Fred Astaire in 'Look Out Below,' to b'e'produced by David Hempstead. Picture goes into work in mid-October, directed by Edward H. Griffith. It's part of a sciipt-for-star- swapping deal. Civilian-business casualties of the war, either already forced out of business due to curtailment of civilian goods or having reason to fear additional pressure on non-es- sential manufactures, are trying to break into picture house operation. Belief is that despite some eventual restriction on theatres, either by de- cree or indirectly via celluloid rationing, show biz will be among the least affected industries in war- time. Pointing up potential casualties in civilian goods trade, the Senate Committee on Small Business last week announced series of meetings beginning Sept. 29 for the purpose of studying the problem. Industrial statistics compiled indicate a sharp drop likely this year in various fields, ranging from a 76% decline in new and used car dealers to an S'^o drop in fuel and ice. Household appliances, heating, plumbing, farm implement and building material dealers will also be affected to a large extent. As a result, it is reported by east- ern theatre circuit operators, coin Is being offered around in liberal quan- tities by both investors likely to be forced put- of usual business activi- ties and refugees, many of whom succeeded in getting considerable money out of Europe ahead of Hitler. Some of these investors have al- ready gobbled up a few minor sit- uations, finding it virtually impos- sible to buy into profitable theatre operation. Attempts to line up with some of the smaller circuits have proved fruitless. Meantime, boom in picture house grosses has also attracted offers on the production front from profes- sional as well as norv.-show busine&s sources. Due to raw stock limita- tions, however, major distribs such as United Artists find that they are being offered more independent product deals than they can use and are holding out for high story, talent and production values. Rowland Keeps CUing Hollywood, Sept. 22. Roy Rowland, former shorts di- rector, graduates into the feature- length class at Metro with the di- rectorship of 'Mr. Justice Goes Hi-nting,' a Robert Sisk production. Starting out as a sci'ipt clerk, Rowland has worked on the Culver City lot for 12 years. ALLIED'S 'SWAP INFO' TO BUCK DISTRIBS Detroit, Sept. 22. Although Allied 'Caravan's' first session here was a closed meeting during the discussion of buying problems, reliable information is that a program is on foot for a na- tionwide 'exchange' between exhib- itors. The meetings were attended by more than 100 independents, in- cluding heads of Co-operative The- atres of Michigan and the new Mich- igan Independent Exhibitors Asso- ciation, a buying combine. The lat- ter group came out with an approval of the 'Caravan' idea following the discussion which, it was indicated, went along lines of state and other groups exchanging information to prevent any section from getting 'a raw deal.' Basic plan would be to have the key men from the various state or- ganizations confer before the sell- ing season and map out a united ac- tion. If any company .offered an in- equitable deal in one territory such a program might call for its being left out of the buying everywhere to give the exhibitors the chance of showing their full strength. 'Wookey' for Fineman Hollywood, Sept. 22. Metro handed B. P. Fineman a re- newal of hi.s contract as producer lor one year with options. Next start will be 'The Wookey,' a tale of naval warfare in the English Channel, which last season played briefly on Broadway. Fearing Ceiling on Admish, M'wlee Dps B.O. Scale but Mpls. Forced to Cut Milwaukee, Sept. 22. Throughout this area there has been another general upping of ad- mis.'-'ion prices — the second since Labor day — and the tilt in most cases a nickel above previous fees, so there is scarcely a theatre left, no matter how lowly, where a dime will buy a ticket at any time. While they are not generally ad- verti.sing it, the exhibs are in fear of a freeze on admission prices and all want to be sure of having their ceiling high enough so they can't lo.ie if that time comes. They figure they can always come down if con- ditions justify a cut, but they might not be permitted to go up, so they're playing safe. Also, with war indus- try booming and money plentiful in this town, they aim on getting all they can while the getting is good. Mpls. Reaction to Upped B.O. Minneapolis, Sept. 22. First public adverse reactions to- ward boosting of admission prices are in evidence hereabouts and should be regarded as a warning signal by distributors who are pre- paring to demand advanced scales for certain releases, trade leaders decfare. It is indicated that, despite comparative prosperity, with em- ployment, wages, farm Income, etc., at a high for recent years, the ceil- ing has been reached for theatre ad- missions for the present, at least. One thing that has helped to make the public price conscious and re- sentful when admissions are upped is all the newspaper talk about ceil- ings, inflation and price rising curbs, exhibitors feel. The Orpheiim tried a nickel raise to 60c-after 5 p.m. for stage shows, bu' after a .single week went biick to previous scale. There were many squawks at the boost, it's said. In Grand Rapids. Minn., near here, the city council has received pro- tests against increased theatre ad- missions and is using its influence to gel thorn lowered. Complaints also have poured in when pictures here are presented at advanced prices. Selling on the current (1942-43) season has started out slowly, with subsequent runs in particular biding their time to see what the circuits in front of them will do. Addition- ally, accounts already approached by salesmen are raising a howl against the rentals demanded on pictures now being sold, including those on • full-line basis and those that are being sold in small blocks. Exhibitors who in the past have bought flat are sounding off because distributors are trying to force them to go for percentage deals. In some ..instances, the distribs are demand- ing percentage or nothing on cer- tain pictures, with several distribs attempting to get 35% and 40%. In the case of decree companies, in many cases an effort is being made to obtain high percentages on at least two films out of five with no cancellation permitted where the packages are not larger than five. At the present time distribs are offering a goodly number of pictures singly, all on percentage and some at advanced admission scales. These include 'Holiday Inn,' 'Yankee Doodle Dandy,' 'Pride of the Yankees,' 'Bambi,' 'Reap the Wild Wind,* 'Mag- nificent Ambersons' and 'Tales of Manhattan.' UMPI Disappointment Among other things, buyers are disappointed over the failure of the United Motion Picture Industry sales plan because under it no distrib could sell a picture singly unless it had lieen previously roadshown at advanced prices similarly to the practice followed prior to the de- cree. Circuits with first-run theatres are beginning to pick up new sea- son's (1042-43) film because it is needed at this time, while subse- quents, still with bookings to be completed, are waiting as in the past. Meantime, many deals of a selective nature are being closed by circuits which are taking films for given spots. Metro, with its origi- nal group of eight, now raised to 12, has obtained quite a number of such bookings. Among major circuit deals signa- tured are for RKO's first group with the Fox-Wcsf Coast circuit, whi.ch has aLso taken 'Pride of Yankees' and RKO circuit's closing for Warner Bros, first block of five as well as the initial group offered by 20th-Fox. Loew circuit has taken 'Holiday Inn' from Paramount, also bought by various other accounts. Par, how- ever, has only started to sell its first batch of five for this year, being the last of the decree companies to give the salesmen the signal to ap- proach exhibitors. WB, which has sold 'Dandy' in numerous, spots, closed a circuit deal on the picture during the past week when it sold the film to Butterfield. Roy Haines, eastern sales manager, was in Detroit to negotiate the deal with Edward C. Beatty. Beet for Gas Philadelphia, Sept. 22. Now it's the film salesmen who are raising a squawk for more gasoline in Philly. A formal request for a larger gasoline allotment has been made by Motion Picture Associates, film salesmen organization, to the State Rationing Board. The pix peddlers claim that they burn a lot of petrol calling on small town exhibs. not only for the pur- pose of selling their own product, but to plug the showing of Govern- ment-made patriotic shorts. K-A-O's $7 Divvy Keith-Albee-Orphcum directora:. maintained its usual $7 annual divi- dend rate last week by declaring the customary quarterly divvj- of $1.75. Dividend will be paid out of oper- ating surplus. Divvy, which covers the quarter ending Sept. 30, i.<; payable Oct. 1 to stockholders on record Sept. 25.