Variety (December 1943)

PICTURES Wednesday, December 15» 1943 Schenck Says 108G to Bioff Was Loan, Not Shakedown Coin, At Extort Trial Joseph M. Schenck. executive pro-.-* diiciion head of 20lh-Fox, held the spotlight as chief witness for. the de- fense at yesterday's (Tues.> session of the $1,000,000 film shakedown trial before Judge John Bright and a'jury in N. Y. Federal court, At conclu- sion, it was a tossup as to which side. Schenck's testimony helped most. Schenck, called by chief defense counsel James D: C. Murray, was led through a maze of questioning anent his 5100,000 loan to Bioff, but stuck. to his guns, claiming that the money had been a loan and not )iis com- pany's ante in the alleged shake- clown. He also testified that he had financed a trip for Willie Bioff and his wife to Rio de Janeiro, and later a D ip to Europe. But he was ob- durate in his denial that either were lo assist in sending Bioff on the lam 'when the : heat was on Willie.- .. •When did you first meet Willie Bioff?'Schenck was asked. A. 'In 1937. I was chairman of a committee of producers negotiating a new contract with the Screen Actors Guild. Although not related to that group, Bioff came with the SAG committee, took command and wanted to upset the contract we had agreed upon.' Q, 'Did-yoii and Bioff subsequently become friendly?' : A.''No, sir.' Q. 'Did you ever give Bioff an autographed photo of yourself in- scribed 'Affectionately to Willie?' A. 'Yes, 1 did.' "' Q. 'And still you say there were ho friendly or intimate .relations be- tween you arid Bioff?' A. 'No. none at all.' Schenck was then, questioned abwut the strike in the . studios in 1936-37. Witness staled that this was among the studio crafts arid did not come within his jurisdiction but had been handled by regular labor relations contact for the various studios/. ,He was then questioned: about attending 1 a meeting in the N. Y. office of Pat Casey when studios were negotiating a basic agreement with the Interna- tional Alliance of Stage Employees, attended by his brother, Nicholas M. Schenck, Louis B. Mayer, Leo Spitz and Sidney R. Kent, also Bioff and George E. Browne, He admitted he was there but didn't recall if all those mentioned had been there. Q. 'Did anyone at that meeting discuss the amounts Bioff demanded before signing of the agreement?' A. "No, sir.' . Q. 'Did your brother, as president of Metro, ever tell you about any de- mands? Or did Sidney Kent; presi- dent of your own company, tell you anything about Bioff's demands?' A. 'No, sir!' Q. "Did William Bioff ever discuss ^ any such demands with you?' f A. 'No, sir/ The witness was then questioned •bout the $100,000 payment made to (.Continued on page 47) Haysites Mull Foreign Biz; Coe Back Next Mo. Adjourned session* of the regular December quarterly meeting of the Hays office directorate yesterday •.Tuesday) concluded business left unfinished from last week's huddle. Most vital problem to come before the directors was the foreign situa- tion, particularly that in Great Britain. ." ' ~ - Revealed that Charles Francis Coe, v.p, of the Hays office, now on brief vacation in Florida, would return next month for a series.of industry goodwill talks: Coe is scheduled 1 to speak in Cleveland Jan. 10; Cincin- nati. Jan. 12, and Chicago on Jan. 14. He likely will go back to Florida after that to attend to some personal matters, but thereafter will return to N. Y. to resume : his official duties with the Motion Picture Producers it Distributors Assn. ' GEORGE JESSEL ' Waxes SentimentalAbout 'Moon Over Monte Carlo' An Editorial Feature of PfiRIETY's 38th Anniversary Number (Post-War Show Business Edition) Gerard Takes Off at 20th Holly wood, Dec. 14. First production -assignment for Wiitiam Gerard, under his new con- tract at 20th-Fox is 'Ladies in -Wash-' ington/ slated to start within two weeks. ■ Louis King directs, from a script by Wanda Tucho.ck, Sentencing of Zevin Postponed Till Dec. 27 Sentencing of. Isadore Zevin, for- mer secretary to George ^E. Browne, convicted ex-president pf the IATSE, who pleaded guilty to a nine count perjury indiclrnont, was postponed on Monday. (13) until December 27, in N. Y. federal court.; Zevin was accused of. giving false Information' when questioned by a Special Federal "grand jury, -investi- , gating the whereabout of the $1,500,- 000 special slush fund collected from 42,000 members of the IAT$E. Ky. Claims Pix Cos. Owe State Plenty Louisville,; Dec. State delinquent collectors'in Frankfort, Ky., last Week filed suit for sums alleged due the State in unpaid income taxes, against 11 film producing, and ' distributing '■•.com- panies. The petitions were . almost identical: 'except .for income stated and amount of tax claimed from the various companies. Failure to. flic income tax returns or make pay-; rrients from 1936 through' 1942 was charged in the petitions. Suits were based on efforts to show: the con- cerns are taxable on businesses such as operation of theatres,- rental of theatrical and motion picture equip- ment,. rental of Alms on both flat rate and percentage basis, and other items in connection with operation of theatres and exhibition of pictures in the State. The State sought to collect penalties of 10% on all amounts claimed to be delinquent, in addition to. the actual taxes. Firms named Iri the- petitions and amounts claimed delinquent, with- out including penalties and interest, were listed as Loew's, Inc.. $18,131; Universal, $28,213; Metro-Goldwyn- Mayer Distributing Co. $41,707; War- ner Bros. Pictures, $12,500; United Artists, $16,759; Vitagraph, $38,782; RKO, $34,924; Paramount,- $84,620; Columbia, $21,201; 20th Century-Fox, $68,948; and Republic Pictures, $17,- 624. SHERMAN TO PRODUCE EIGHT PIX FOR MONO Hollywood, Dec. 14. Eddie Sherman, business manager for Abbott & Costello, has organized a film company, Biltmore . Produe tions, to make eight pictures for Monogram release, two of which will be delivered by May' 1, 1944. Phil Karlstein, formerly, asso- ciated with RKO, will function as producer, with Sherman holding the executive reins. Fox's $10,000,000 Net Fact that 20lh-Fox was able to show more than $7,000,000 net profit in the first 38 weeks this year,- de- spite deduction of National Theatres net profit of $1,820,016 (this year up to July 9), has caused financial cir- cles to forecast In excess of $10,- 000,000 for the full year. This is slightly' in excess of previous est!-, mates arid is seen because 20th came in wilh'.higher net profit in thethird quarter than looked for." Corpora- tion deducted the National .net profit up to July 9 because made before 20th-Fox obtained full control of Na- tional Theatres. . 20th-Fox. included net profit of Na- tional from July 9 to-.Sept..'25. this, year in its 39-week statement, but did not mention the exact amount because this, theatre subsid now Is included, in the corporation's con-, solidated financial report; $7,187,098 Net For 20th in 39 Weeks Consolidated net profit of $7,187,098 has been ■ reported; by 20lh-Fox for the first 39 weeks 1 ended last Sept.'25, or about the same as in comparable period last year. Net included earn- ings of National Theatres from July 9, date that it became a wholly- owned subsidiary, to Sept. 25. Na- tional's net profit from Dec. 26, 1942, to July 9 this year, totaling $1,820,- 016, is not included in consolidated net profit. Tv.onf ieth-Fox net profit is equal to S3.49. per share, after deducting dividends on new 'prior' preferred and preferred shares; as against $3.57 a year ago, when dividends were paid on only one preferred, other not .having been issued at that time. Company's net profit for .first 39 weeks of 1942 amounted to.$7,256,003. Corporation's gross income totaled $1.16.872,388, including rents from tenants, dividends and miscellaneous income : besides revenue from sale arid- rentals, of film and theatre re- ceipts. Operating and administrative expense amounted to $54,734,745. while■ amortization of production arid other costs are 1 isted as $29,361,936; Report noted that Federal income taxes have been estimated at present rates, amounting lb $18,545,426. Of this total, S1G.194.749 is for excess profits : lax less post-war refund of S1.799.41C. Third quarter ended Sept. 25, the consolidated net profit, after all charges,, was.$3,343,849. ■»»«♦♦♦♦♦«»»t♦»♦»♦♦♦♦♦♦♦♦♦♦♦♦♦♦♦♦♦♦♦♦♦♦ . Lefty's Notebook By Joe Laurie, Jr. 'MARKED NEGLIGENCE' CHARGE IN FILM FIRE Toronto, Dec, 14. . ilm Exchange Building fire of Nov. 17, which cost the life of Her- bert ...Nayman, Monogram projection- ist arranging, a private screening, and sent five firemen to hospital, was caused by 'marked negligence, by allowing a quantity of naked film to be stored in the vaults of Regal Films Corp.', MGM distribs in Canada. Jury also recommended', that film exchanges arid all. distributing agen- cies be housed in buildings of one and not more than two stories above street level, that they contain no offices or projection rooms, that they be placed outside the city limits. They, said that all films' should be kept in metal containers and called for more stringent and frequent in- spection by . the Theatres and Cinematograph Department of the government. Testimony was. that large quanti- ties of film, not in containers be- cause of the metal shortage, were stored in. Regal's vaults. Cause of fire was not determined. Fire Razes Texas Theatre Kounlz, Texas, Dec, 14.. Fire reslrdyed the town's only motion pic house the Gay. operated by Mildred Bracken, school teacher. Plans; are under way for. another house. 'Vampire' Loose Again ' \ Hollywood, Dec.'14. Kipling's old ''.Vampire! is prowling around the Columbia lot again, but not quite in the .way Kip would have ■written' it. Latest prowl is 'Bride of the Vampire,' a sequel to 'Return pf the Vampire. 1 Chiller is produced by Wallace j MacDonald, from a script by Griffin 1 Jay. .'; ' " I Loew's Toronto Profits Toronto, Dec. 14. . Annual , statement of Marcus Loew's Theatres, Ltd. (the Uptown and; Downtown here) shows a net ■opera!irig: profit of $263,099 against $240,192 the previous year arid a net profit of $95,875 compared with $99,686. •(Statement covered period between Aug.- 2G, 1942 to Aug. 25, 1943.) After allowing for a year's pre- ferred dividends,' net profit was $6.08 a share against $7.06 the year before. Net working capital appears at $622,- 086' against $529,379 a year ago. Current assets are listed at $721,186; current liabilities, $98,500. Cotten's.Chiller Hollywood. Dec. 14. Vanguard Films assigned Josephi Cotten as star of "The House, of Dr. Edwal-des." based On a British mys-' tery novel by Francis Beading.''' : Picture "goes.into work when Al- fred • Hitchcock, signed as director, returns from London, ' * . ♦ ♦ ♦ ♦ ♦ ♦ * ♦♦♦♦♦♦♦♦♦ ♦ ♦ ♦ ♦♦♦♦♦♦♦ ♦ ♦ ♦ ♦ ♦ , ♦ ♦ ♦ ♦ ♦ ft Coolacres, Cel., Dec. 14. Dear Joe: ■I just was. looking over Fannie Hurst's-"book, 'Showboat,'.and I'll bet you never knew that'way-back in- l?li Fannie Hurst just graduated from Washington University, where she made a great flash writing college plays. Well, sir,-she was an added attraction at the. Columbia in her sketch 'Home.' :'■'''..■".■'. That was the year Eisie Janis was gelling $3,000 a week in the Percy Williams'-houses. Heard her .the olher Hay on the air and she is as great as ever, -And Sophie Tucker' was one of the leads in a show in Chicago called 'Merry .Mary.' Augustus Thomas then was.dramatic'editor of the Sim. He,was just starting fo bud as a playwright, having"hid five plays accepted for. production. The 'Men.y' Whirl,', a burly show, was playing at the Columbia (now May fair), as a . •show arid was doing $7,000 a week, which, was phenomenal business in those days. Would be'for a burly show now', too. That was the same year rhy friend, the late Felix Isman, leased the ground adjoining (tie Globe theatre arid sold It to the Automat..; .--;'.■' Vernon Castle brought his bride, Irene Castle, back frorn England arid got her. a small part in 'The Hcnpecks.' He played one of the leading parts. Will Rogers was held over ifor a second-Week at the Majestic, Chicago, the second time this ever happened in the history of the house. Big Jim Morton did ".chairman stuff at . the Folies Bergere and doubled as m.c. at Hammerslein's. Rile Samuels made a hit on the Orphcum Circuit -just before she came east'for the first time. That year Harry Lauder's train was late ai)dlie showed up at the Manhattan Opera House at a quar- ter "to one in the' morning, the audience wailing since 8 p.m., and he did an hour. That year the Bushwick theatre in Brooklyn opened, . The bill was Wcnlworth, Vesta and Teddy. Avery and Hart, Wilfred: Clark" and Co.; Frank Fogarty. E. Fredrick H.iwley. Chadwick; Trip, Franklin and Green, Jack Wilson. Trio, Aiu ora'Troupe.. What a show! . Loew's took over the Aihorican from William Morris; that was about \ March, 1911. lily Gould was doing an act with Hazel Cox, pretty smart duo if you ask me. .Bunny Granville and his wife, Dorothy, were doing a double.- Frank Koerian did his act, 'Man to Man.' The big blacklist of the United Booking Office was called off, which made plenty" of actors, happy. ■Variety's". First' Film Reviews Tliat was the year the first picture reviews ever j to appear iii a news- paper appeared in •Variely.' Paper reviewed 16 pictures in a little over a' column—the shortest was four lines," the longest 21; .'Variety' was first with "Bills for Next Week' that year, which took up a.half a column. Why, . my bills run over that now. George M. Cohan stepped into 'Gel Rich Quick Wallingford' for a single perforirjance,. playing the deteclive part, as Spencer Charters was ill. Daylight .pictures were advertised all over N.-Y. city. James O'Neill took a route in vaudeville, refusing to tour with ,'Mprite Cristo.'. And there was a guy by thei niime of Meyer Schwartz at the Union theatre on Eldridge street who got 40 bucks a week for which he had to write two plays a week, one four-acter and one with three acts. He also had to direct, play, a part and act as prpnipter; ' . The managers were having trouble with the' rnusicians, so, many ol them, installed an O.rehcslrcoii in their theatres to replace the orchestra. It didn't work. Sounded awful tinny. 'Madame Sherry* had Ave touring companies. I wonder why they don't have a revival of-that one? That was the year that: the Great Lafayette and two assistants were burned to death at the Palace, Ediriburg. One of them was dressed as a little teddybear, arid firemen thought it was an animal and didn't pay any attention as they were , trying to save the people: Remember that big benefit given at the* Metropolitan Opera House for the Washington Place fire- sufferers? It ran, six hours. . Best to the gang, sez Your pal, ■ Pix Reexamine Russia's B.0. Outlook With An Eye to Increasing Revenues The vast potentialities pf American film product in Russia, today, and. the future need for more equitable pic- ture rentals, has been brought to the attention of various U. S. film com- pany foreign departments in N. Y;- in recent weeks. Judging from the money grosses by U. S. pictures in Studio Contracts Hollywood, Dec. Robert Spencer Carr inked "writer pact at. 20th-Fox; Willard Jillspn signed actor con- tract with David-O. Selzriick;' r . Dolores Ray's minor-contract/with Metro approved by court. , Jane Devlin handed player ticket by Vangusv . William Colby drew actor pact at 20th-Fox: ■' ; Jean Davis signed player contract at Universal. • Dolores Moran's, minor contract with Warners appro.vcd by court. Leo Gprce'y'6 player pact'renewed .by Monogram. Jan; Clayton'drew player ticket at Metro. ' Raymond Chandler, Writer, signed by. Paramount; . Huntz Hall's player option picked up by Monogram. • Tom Steele's contract renewed by Republic. Billy Gilbert's option icked up.by Monogram. ' ; Joyce . Reynolds' minor contract with- Warners 'approved by court. . Lucille Casey drew player ticket at Metro. Billy Benedict's player option lifted by Monogram. . Gloria Saunders drew player ticket at Paramount. Russian theatres, there remains little doubt but that Yank film fare li liked and wanted by Soviet fans. Problem confronting N. Y. foreign department executives Is to work out some formula that will produce proper revenue return to reflect this heightened interest. Consequently, future deals for American product in Russia presage no further deals at $15,000 to $30,000 per film, for full Russo distribution, as In recent months.: . ' Probably the one single Instance that opened the eyes of American distributors to Russia as a future foreign market was on a U. S. fea- ture thaf 'went into the USSR for slightly In excess of $20,000, and is reported to have grossed close to $4,000,000 to date. While the deal for this picture undoubtedly was made to evidence the desire of this American film company to play ball with Russian film interests, the rev- enue return for the Rqsso film or- ganization and exhibitors themselves- obviously is all out of line with what the U. S. distributor received. While this obviously is a glaring example of just how; much revenue is possible from an American- pic- ture, it has led other American dis- tributors to full realization that per- haps many of their films, sold at rock-bbttom prices, have grossed 10 to 50 times what they were sold for to Russia's distribution organization. Now estimated that < Russia has about 38;000 theatres and exhibition halls, - and that while many are small and charge a low admission, the aggregate represents high rev- enue return, this is logical when compared to the 18,000 .theatres re- ported operating iri the U: S. and revenue possibilities of American houses.