Variety (Jul 1943)

Wednesday, July T, 1948 PICTURES IN WAR Internal-Revenue Chief Paves Way Whereby Pay Tilts May Be Granted Washington. July 6. .Way was opened here Thursday (1) • III ins. io and other —branches^trt— entertainment - to pay their salaried employees, not covered by the ., Fair Labor Standards Act, Increases for overtime .work. Guy T. Hotveririg. Commissioner lot Internal Revemfe. pointed out that only those covered by the Fair Labor Standards Act now gel time-and : one-half for overtime.' .Others have been unable to get the increases because of the wane and salary stabilization pro- gram. 'Payment for 'overtime to •' wage earners.' .Helvering pointed out. 'vVilhoi.it any additional compensa- tion to the salaried personnel, in' many cases . results in the wage earners receivin more total com- pensation for a given period Jhaiv their ■ immediate superiors' and. . in some cases, more than the second and third, levels of supervision.' Previously, there had- been no chance, for overtime increases 16 salaried personnel making over $5;-. 000 a year.' or to executive, admin- istrative and professional employees making.less than $5,000. and not rep- resentedl - by recognized labor union. What'this will mean to high sal-, aried actors and officials of the ■ film ' studios and radio networks was not made clear, but it was likely that they would all.be allowed something for working more than 40-hours a week.' Chief beneficiaries will be in the lower and intermediate brackets. Bureau of Internal Revenue will operate the plan on a sliding scale. In which virtually all salaried people are expected to benefit, if they work overtime. For example, salaried em- ployees whose, regular pay for a 40-hour week is equal to, or less than, that of the highest, hourly paid employees, will be allowed overtime pay at the same overtime rates paid (Continued on page 8) Haley's Dude Ranch Pic Hollywood, July 6.-- Bill ine arid Bill Thomas, who have been making economical action pictures for Paramount release, are detouring into musical production, with 'Rhythm Ranch' as their first venture into tunefilming. Jack Haley, late of tlie vaude revue. 'Showtime;' has. been sighed as star of the dude ranch' lilm. Show Biz Watches KurtzVSho-Club, B O. Hypo Plan A sales promotion plan designed to Increase patronage in theatres or other permanently operated places of amusement,, copyrighted by "William Kurtz,; manager of the Riallo. N. Y., and known as the Sho-Club. proposes the purchase or a monthly ticket that would entitle the holder- to an un- ; limited number of single admissions. ' The patron, under the plan; re- ceives a folder containing a member- ship card- which - identities him by photograph arid signature, inuch the same as a railroad commutation tick- et, so that it. woudn't be transferable. He would receive this monthly- ticket for a specified sum. based by the the-, atre upon, its average admission prices and the number of changes monthly, plus taking into account an appropriate discount. . Patron would . visit the theatre whenever desiring. Holding a monthly card, in 'Kurtz's opinion, would satisfy the inherent desire for special privilege a* well as the hold- ing of what amounts to a pass, while at the. same time' saving, money on theatre attendance. Advantages to a theatre, under the Sho-Club plan, would include local tieups with merchants and others, promotional projects of various kinds, etci. Pointed qui by Kurtz that a theatre would receive its money in advance for an entire month, and would stand to benefit 1 through changes in "weather or other factor*/ which would, ordinarily alTcct daily business.. Also.'the. average person buying a monthly ticket might riiiss some shows.' Where-pictures.are played on per- centage, the. receipts per month from memberships iii the Sho-Club would be pro-rated by the day, so that each distributor receives his proper share. Distribs also can. check a theatre "sing the plan by haying access to the Sho-Club records. Coming conveniently after the big Fourth of July'weekend, the start of the 20%. withholding lax the end of this week oil whatever day "people gel their- checks, is causing some ap- prehension ja..theatre and distribu- tion .quarters as well as among lead- ers of other".fields of amusement which are now enjoying lush busi- ness. / . New income lax bite is expected to be felt the most over the- coming weekend and through' to . probably Sept.'l before people readjust them- selves to its Impact on their pocket- books. Believed, however, that while a permanent drop must be an- ticipated, greater- over the summer than later on. that this new form Of taxation .will not seriously injure the.;boxoiiice. Vacations also, figure over the summer,'.plus the loss of certain revenue to beaches and other outdoor activity in spile .of gas ra- tioning.. ■The withholding:tax is particularly heavy for single workers without dependerits. Persons in . this class will be lapped for a fax of $8.60 for those earning between $50 and $60. Married persons in the same classi- fication will have $6.20 diverted from their paychecks. In cases where wives work and take their 1 own ex- emptions on separate income tax re- turns, the withholding figure is $8.60. ' Though the withholding tax is stcep.er than under the old quarterly sysferii, the theatres will not at least feel the periodic drop that has been experienced when people had to get together large amounts each quar- ter during the year. Instead, under the weekly deductions, it is believed employees will readjust their expen- ditures and budgeting accordingly but due to having nothing else to do will not reduce so much on picture- goin , . .'■■■ f if 'FIBBER AND MOLLY' SET FOR TWO MORE AT RKO Hollywood, July 6. RKO signed Fibber McGee and Molly to a new contract calling for two more starters oh the 1943-44 program. First--under the new agreement will be 'Heavenly Days.'-slated fol- iate autumn filming with Robert Fel- lows producing. Mex Looks Big—Gould Outlook for the picture' business in Mexico is bright, , with improved road's and better cbrnmunicatjw ex- pected to broaden the manfccl. ac- cording to Walter Gould.. United Artists foreign manager., who re- turned to N. Y. over the weekend after a',5-week Stay' in Mexico. . Four or five new fiist:iun Ihcalres are buildin ? in Mexico, he staled, with nearly all expected to be fin- ished between now. and the end of*- 1943. Fuller's Tinted Cruise Hollywood. July 6.. Paramount assigned Lester. Fuller, of (ho Broadway . sta'ge. to direct 'Caribbean Cruise,' a high budget musical show in Technicolor. .. ; -Picture is slated for autumn .shoot- ing, with Lou Hairris as..producer under general' guklan.ee of 'Waller MacEwen/ : More than $1,000,000 worth of war yarns bought by major , studios are now unlikely to be pi-ocuced. . bis-, cusslons among production toppers currently take into account possibil- ity of a cessation of hostilities in Europe by next year and curtailed production and distribution 'which makes it necessary to scan future de- liveries more carefully. Stories cost ing' from $50,000 to $300,0.00 are now being considered for the shelf. Major studios primarily af fecled by war story buys because of length of time usually allotted to turning out high-budget product. Story going, into production now may 'not be' in. release until 12 months hence, figuring elaborate script preparation, careful casting, etc. .Mn. this event, a change in the European situation might catch stu- dios ■ with big budgelers in'.'early stages of release. '''/ War-themed yarns with ■ Pacific locale i'nay~not. be ail'ecled, .however., since it is generally expected that the Japanese war will be the last to be cleaned up. War themes with U. S. locales are also unlikely to be shelved. Stories..dealing with underground movements in Europe are most like- ly to be held up. Recalling experiences immediately following the Armistice, after World War I when U- S. film companies quickly lost most of the profits they had made on war films previously, production, execs .are inclined to scrap story properties' rather than risk further investments in costly 1 negatives. ■ v- Problem among the smaller studios is not quite as acute since films can be. produced and released faster. Film Execs Face New Headaches As Result of OWI Film Unit Shutdown; Govt Plans Confabs, Key Offices H wood Subsidy Of OWI Film Bureau Nixed by Haysites Hollywood, July 6. Motion Picture Bureau of the OWI shutters its Hollywood offices July 15, with orders to Kelson Poynter and his 15 staff workers to wash up. details of their business by that time. Understood Poynter offered- to serve as. film liaison chief on a dollar-.a- year basis, but the government turned it down. Idea of maintaining the bureau . through finances fur- nished by the-film industry was fa- vored by a few individuals, but nixed by the Hays office on the the- ory that it would be contrary to the wishes of Congress, which, refused funds for the bureau's continuance. Opinion in Hollywood is that Low- ell Mellelt, chief of the OWI's Mo- tion Picture Division, will maintain some sort of contact with the film industry, presumably in an advisory capacity such as he exercised when he was an executive assistant to the President before- the establishment of OWI. During that time he kept in close touch with home office execs in New York and rendered valuable service in solving production prob- lems, ranging . from propaganda stories to raw film requirements. Producers believe the closing order will end the practice, of many studios in submitting 'advance, copies of film scripts, for governmental approval. Directors Give OK Following meeting of share-, holder , 20lh-Fox board of di- rectors met yesterday afternoon and authorized the sale of the new prior preferred to a group ' of -.underwriters headed by Leh- '•• riian Bros.. Hayden, Stone & Co., Blythe 8c Co. Stock will be offered at $100 per share, with net to company of: $9,700,000. Difference of $3,300.- 000 required for purchase of Chase stock in Nationai*W.icalres will come .from the ' 20th-Fox treasury. ■Spyros Skouras, 20W prexy, pre- sided at both meetings. ; * MILSTEIN-SAM WOOD JOIN PARTNERSHIP Hollywood. July 6. . Jake Milstein has joined Sam'Wood as pm'thcr-and will business manage Wood's production unit at '.Columbia 1 .' They will make two pix yearly. Wood directing one or both, foi a period of five years. Milslein will look after marketing of the unit's output. First picture will be directed and produced by Wood, followed by 'Address Un- known.' Wood producing with a.top director to be named. 20th-Fox Votes To BuyQutNTStock Twentieth Century-Fox Film shareholders, by majority vote yes ter.day (Tucs), at a. special meeting held in New York, approved pro- posals for 20th to exercise its op- tion to purchase 1;044 shares of National Theatres stock, held by the Chase National Bank, for $13,000,000. 20tji, stockholders, during the same session, okayed a proposed amend- rnerit authorizing the increase of capital stock in the corporation by 100.000 shares of rior preferred stock. Net aggregate amount to .be re- ceived by 20th-Fox •' from the sale of the prior preferred stock is to be not less than $93.50 nor more-than $101. per share, plus' accrued divi- dends. Price-to 20th will depend, in part, on the dividend' rate of the prior preferred which will be not more than $5 per share and.not less than $4.25 per annum. Provision is made for a prior, pre- ferred stock retirement fund at the rate of $1.50.000, or 2% of the con- solidated net earnings (but no more than $250,000) of 20th for the fiscal year ending in 1943. In subsequent years $300,000 or 4% of consolidated net earnings per annum (but not more than $500,000) is to be set aside for Retirement purposes.. 20th' may now' sell prior preferred stock without further action by Stockholders and upon such terms as may be fixed by the directors of the company! Voting in favor of the purchase of the Chase National interest'in N. T: were 129.178 7/12 .shares of preferred arid' 1.238.283 9/24 common. Opposed to the purchase were 2,570 4/12 preferred and 13,957 16'24 common. Chase preferred didn't vole. Voting the favor of issuing the new prior preferred were 792,484 1/12 pre- ferred 'and 1,230,117 3. 24 common. Against. 4,979 10 12 preferred and 22,020 22 '24 common. F.limination of the film division of the. Office of War/Information will cost the lilm industry from $500.00i) lo $1,000,000 annually, depending uii services for various government bu- reaus which it may be called upon. OWI was scheduled to deliver 26 shorts, accompanied by 677. prints each, which would 'represent a cost of over $400,000, Tins in itself... how- ever, is on|y a minor proportion of the costs likely to be involved if no , central-channel between government agencies and the, film industry - is available. . Through ■ Lowell Mellelt the in- dustry has suatecded in eliminating • much .duplication-of effort. Film pro- grams lined up at the same covered the war arid home front .factual film heeds " comprehensively; 'Potential .headaches confronting the industry in dealing with innu-. merable government agencies are of greater concern- to .industry execs than any increased cost of fi^m con- tributions to the war effort. ■ Office, of War Information's film bureau shuts down completely afler July 15, as a result of failure by Congress to appropriate necessary- funds for the domestic portion of the OWI. The $50;000 remaining in the fund will carry part of remain- ing force in N. Y. along for two weeks after deadline of July 1. After that, only a liaison of fleer lict ween the OWI and industry's- WAC Is likely. Spewack Abroad Shuttering of the big N. Y.. offices of OWI film unit will hit a group of Hollywood technicians hardest, being estimated that: thrce-fourtlu of people in this-unit are from the Coast. Sam Spewack, who formerly, headed N. Y. unit, is now with, the OWI overseas bureau and currently abroad. W. .P. Montague, former assign- ment editor of Paramount newsrecl, left about six months, ago to. handle similar spot with the domestic OWI. He likely will join one of the news- / (Continued on page 1.2) 'ST. MARK' FOR MAHL ON NEW 20TH DEAL Hollywood. July 6., John Slahl signed a new two-year contract as director aC20th-Fox, with 'The'■ Eve of St. Mark' as his first assignment under the renewed .pact. Director is now in N\*w York to glimpse the stage production of- 'St, Mark," written by Maxwell Ander- son.' Axis Pix Tabu in Chi Chicago, July fi. • Government agents have been busy alorig 'film row' in the past week gulling' on independent film, ex- changes Jo take all German arid Japanese films put ot service for;the. duration.; Agents are, also checking on all theatres that have exhibited German-' mnrio films in the past. Goetz-Spitz May Go UA After All With entry of Leo Spitz into the Bill Goetz production setup, as board chairman of the newly incorporated International Pictures, 'reports were current anew last week of a likely dicker with United Artists for the release of one or more films front the Goetz urvit. Ed Battery; UA proxy, was on the Coast last week to. discuss several new releasing deals. Goetz is planning on an elaborate unit likely to include several other top producers, such as Nunnally Johnson, who is already under hir wing. : ■Whether all. of the Goetz output would be channeled through any one distributor is uncertain, however. Possibility that he may make ar'atc distribution deals for each pic- ture. Goetz Moves 'Hollywood. July 9. . William Goetz moved out of his top production office at 20th-Fo.< with the return from Army service of'. Darry 1 Zanuck. Understood new company will ' move into space on the Samuel Gold? ■wyn lot. Leo Spitz has a prior ar- rangement with Jack Skirball to pro'-, duce a Fred' Allen-.film (now. cold) antl one with. Jack "Moss to make a picture of 'Duffy's Tavern;.' With re- leasing deals through United .Art- ists. Chances are that International Pit-lines will . release through the ; 5iiir,e outlet; a.lthbugh no deal hat ■bceri arranged.; Spitz'has been legal advisor lor various lilm companies for 25 years, and at one time president of RKO. .