Variety (Dec 1944)

PlCtUBES W«dn«id«y, December 20, 1944 Revenooers May Become Interested h Curbing Gypping Exhibs on % Pix While it would seem iiiconsistent-| that any governmental action could be taken to curb or ban the sale o£ pictures on percentage because they encourage certain dishonest exhib- itors to cheat, the Bureau of Internal Revenue is reported preparing to move into the situation to determine whether gypping theatre operators are not only responsible for stealing Irom the film companies', but also from Uncle Sam. Income tax men have been study.-. Ing the problem relating to various devices by which dishonest exhibitors cheat the distribs on percentage dates, including phony tickets, palm- ing, resale, etc., with a view to check- ing on whether such exhibs are col- lecting the proper tax on tickets sold; also, whether phoney statements such as furnished distribs form the basis for corporate or personal in- come tax returns. Ever since percentage-selling ol pictures came in more tBan 15 years ago, the distribs have had difficulty in keeping certain accounts on the honest side, regardless of how care- ful they are checked. However, while many thousands of dollars have been spent to curb the evil, pointed out that the pay to checkers is so inadequate that those who lean that way can hardly be blamed for playing a little ball with the exhib, even if the gain Is only a dinner or some drinks. Of course, the ends to which gypping exhibs will go to rook a film company of a few bucks goes even further, including one reported case where a local theatre owner, friendly with the police, had the checker detained for loitering or something else until a count of the day's receipts were made. H. Allen Smith waiM whtmitcal In a " ipcclol feoturt of 39th Anniversary Ntimber Canadian Indie's Rap Ottawa, Dec' I9i Morris Berlin, operator . and mgr. of the Somerset theatre (indie), Ottawa, was fined $100 and costs and ordered to pay .$150 to federal revenue dept. in city court when he pleaded guilty to a charge of "making a false return with intent to evade payment of excise tax of $76 from the amount of receipts be- tween Sept. 17 and Nov. 18." Kt Playo^ \km Wins Deckively Over SAG in Election on Coast Xmas Comes on Time This Year for Pic Aides, Christmas is coming on time this year for employees of seven major film firms, plus National Screen Service. While the Xmas bonuses of majors generally follow a set formula, in the case of Warner Bros., which, gives out extra dough twice a year, the figure varies, ranging from a week's salary every six months to those earning up to $50, while over that the figure fluctuates. Twentieth-Fox's bonus this Christ- mas is $50 each to everyone earning up to $50, while Paramount's is gen- erally slightly less, being a week's ■alary for everyone up to $50 and the latter flat amount for anyone getting between $50 and $75. The same pattern, as for many years past, is followed by Loew's (Metro), where everyone earning up - to $40 weekly and with the company over one year got two weeks' pay but not to exceed a total of' $50, while those up to $40 and with the company from six months to one year got a flat simi of $25. National Screen Service wanted to give two weeks salaiiy to all employees but was turned down and instead passed out $50 each. Universal paid a week's extra ■alary for thdse getting up to $40, ■ame as to b6 done tomorrow (Thursday) by RKO. Columbia, as usual, gave a $25 war bond ($18.75 net) to employees making up tf> $50, plus $10 for employees with the com- pany up to six months. United Artists is indefinite this year, but as of yesterday CTues,) was reported. Sivln/ consideration to some kind of bonus. .j^ Most all companies are tossing Xmas parties either tomorrow iXhursdajr) or Friday (22) for em- ployieetf, eitJier at liomeoflicei or at Jioteta. - Report WB,Hoyts In Aussie Deal Sydney,'Dec. rt. Warner Bros, and Hoyts circuit are reported in new dicker over product for next year, and it's believed that deal is largely dependent on whether the Australian circuit wants a long- term pact. Understood thait one term being insisted on by Hoyts is that Warners must give up all thought of opening its own theatres in Australia. Latest discussions cover all Hoyts' key theatres and subsequents, total- ing about 140. Warners broke away from Hoyts more than two years ago, following disagreement over terms. ^Stated here that the resignation of Robert Schless as foreign chief for Warners is paving the way for. reopening of .huddles. Warners has been after additional outlets for its product More Big 5 Reps Seek to Appease Gov t on Decree At least one more of the Big Five companies. In addition to Warners, is now reported dickering with De- partment of Justice ofliclals with a view towards offering greater con- cessions in the matter of partial the- atre divorcement. As indicated m "Variety" last week (13), greater concessions are now being offered to the D. J. by some of the producer-distributor chains in an. effort to formulate a new Consent Decree without going into the courts. Split among others of the Big Five concerning negotiations with the D. J. on plans for a new decree is re- ported widening rapidly. Maurice Zolotow wMt tertolNly li on airtherlly oa the woeliy world, dliaoMriM M **Wacks* Museum** a, tp*clal •dlterlal feotare In the 39lh Anniversary Issue of P^niEfY N. T. WB Vague on Deal While there have been new discus- sions on a deal whereby Warners would get its product spotted in the Australian Hoyts theatres, a hew setup looks far distant, according to word in 11. Y. Stumbling block just now is that WB rates latest deal too severe. ■ Cowpoke Dictum . Hollywood, Dec. 19. Film wranglers ai« merely, that and nothing more, under a new dlc- teni I7 the Scremr Actors Gufld,. SVom now oh' th^ workmen Triio Side herd on hbrs^es will not be perr piitted.io appear as actors or stunt mm In the same pictures for .-wUch tt«y baT« been hired to. wrangle. ■ OBESOV WITH BET . •:" iToUywood. Dec, 1». ^tnlversal Inked Merle Oberpa to us cOHiiat^ and Cameo, J. C, ContinDes Settling With Majors The anti-trust actions brought by Rosyl Amus. Corp. and the Camrel Co., Inc., operators and owners of the Cameo theatre, Jersey City, against Loew's, Inc., one of the producer-distributor defendants, was dismissed last week in N. Y. federal court, according to a stipulation signed by Federal Judge William Bondy. Negotiations, it is under' stood, are being conducted by other defendants for settlement of the suits, which will give the operators of the Cameo better run of major film company products. The Rosyl suit is against the eight- major film companies. Its subsidi- aries and five theatre chains open- ing more than 21 theatres in - the J. C. area. The Camrel suit is only against the eight major film bom- panles. Paramount Pictures was the first of the producers to settle,'^ its product becoming available to the- Cameo ^d other chains at the same time. Col Aide Predicts Big Revenae Jump For U. S. in BrazO Now doing an annual business of between $5,000,000 and $6,000,000 in the Brazilian market, representing an increase of about 40% since the war began, major American distribu- tors will enjoy a further substantial jump in revenue there after victory is won, it is predicted by Sigwart Kusiel, general manager for Colum- bia in Brazil, Now in N. Y.,'Kusiel also pointed out last week that during the past five years 50 new theatres had been built in the South American repub- lic, where he heads sales for Col, bringing the total in operation now to 1,500. Plans are in'work for an additional 20 houses. Kusiel does not vision any govern- mental control of the film business in Brazil. In N. Y. on a three-week visit to confer with Col h.o. execu- tives, Kusiel will return to Braizll shortly after Xmas. lA Stronger In N. Y. Exchanges The International Alliance of The- atrical Stage Employes,Increased its strength among front-office white- collar workers in New York ex- changes during the past week when it won an election at Republic against Screen Office k Professional Employees Guild, Local 109, CIO. Balloting resulted in six votes for the lA, three for SOPEG, one non- union and one which was challenged by Republic. SOPEG, however, has the Republic homie-office, where its two-year con- tract over white collarites is not up until this coming April.. Meantime, so far as SOPEG members are con- cerned in the h.o.s._of Paramount, Loew's, 20th-Fox, RKO and Colum- bia, a meeting was held last week before James Fitzpatrick, N.Y. medi- ator for the U. S. Dept. of Concilia- tion, on the dispute concerning a new contract and classifications retroactive to July 28, when old two-year deals expired. Another meeting before Fitzpat- rick is scheduled to be held today (Wednesday) to go deeper Into the matter, last week's session having been principally to outline points leading up to the dispute. Hollywood, Dec. 19, Overwhelming majority in favor of the Screen Players Union was scored by vote of film extras, bit players, stuntmen, etc, Sunday <17), when ballot was approved cer- tifying SPU as collective bargaining agent. Totals: SPU, 1,451; Screen Actors Guild, 496; no union, five; challenged votes, 213; void ballots, three. £Uglble voters were 3,300. Ballots counted, 1,912. Figures will be officially tabu- lated and held here for five days, after which, if no valid claims of fraud, etc., are filed, National Labor Relations Board in Washington will be asked to issue certification In favor of SPU. SAG Calls Special Meeting SAG, acknowledging defeat, called special meeting of board of directors and stated it would con- tinue to represent actors and assert exclusive Jurisdiction over "all acting in the film Industry. At same time It was hinted actors might refuse to work with SPU members if latter attempted to claim jurisdiction over bit work, etc. Top actorhowever, appeared divided, many feeling ex- tras had right to select own repre- sentatives and were inclined to feel Guild should work out deal on friendly basis rather than continue to fight them. Campaign leading up to the. elec- tion was the longest and bitterest Intra-gulld battle in the history of Hollywood, Involving months of contention, legal opinions, charges and counter-charges, Investigations, mass meetings and underground pulling and hauling for votes. ^ Last Cregar Pic To Remain Feb. Release "Hangover Square," finished by 20th-Fox shortly before Laird Cregar died, 'will remain a^ebruary release, as ' originally scheduled, rather than be moved up, wblcfa had been contemplated. The ectcr had his biggest part In "Hangover Square." Crcpr's er lOG'Wffl Hollywood, Dec'lS. UJrd Cteguf* wiU, with estate valued in exceA of $10,000, was filed |bi' probate faexv yesterday (18). Terms of Will call for actot's raqtber. Mrs. XUzabetb Cregar, to receive 60% of c«t«t« and tal> aunt, Eugenia Soiltb, to rec«iv* ramalnliig 40%. Two brothen, Edward ud John CiMgMr, wm» aaoMd^mMBtatK and JMulBff «tt jisattt». ««r pcONi* la , d«(fd Jen^ It hi aidtHM«9 .mat. 6 PJIL PRICE SWITCH CREATES A TEST CASE Omaha, Dec. 19. What might develop into some- thing like a test case broke at the Broadway theatre. Council Bluffs, la., when attorney Verne Benjamin, his .wife and granddaughter were re- fused admission to a night perform- ance on matinee tickets. Benjamin is filing suit for $1,000 on the ground that he and his wife suffered mental anguish due to "de- grading insinuations" by manager AI Yohe when.he refiised to admit them. Benjamin also asked his $1.05 for tickets refimded. He says he bought the tickets at 5:45 p.m.' and was re- fused admittance at 620 p.m. the same day. 'Manager Yohe says the price scale changes at 6 o'clock. All local theatres have a price change between the afternoon and night shows, but this is the first time anyone has threatened to take the matter into court Affair is being dis- cussed by theatre and legal men here, most holding^ that the theatre has a right to charge different rates at dif • ferent h^urs. The Broadway was recently taken over by Ralph B. Goldberg, Omaha, operator of two downtown , and five neighborhood houses. Treock Tomi* for Yk ' Hollywood, Dec. 19> ^ Jack H. Sklrball and Bruce Man- ning bought screen rights to 'Trench Town," siage musical by Oscar Ham- merfteln H and Sigmund Romberg, to be produced In Technicolor for re-, lease thriough United Artiits. Manning wffl cotEkb Hfitb H^mmer- stehioa the aereaqplajr^nd Bombirg will aupatWarfet icieeB tcndlti^ Nate Wise May Succeed binermao for RKO, Cincy Cincinnati, Dec. 19. Edward 'V. Dinerman, who has been witti RKO Theatres here since 1929 and for the past few years has been director of advertising and publicity. Is switching to the agency field Jan 2 as y.p. and one of three partners in a new firm to he known as Stokes, Palmer & Dinerman, Inc., with offices in the Carew Tower. Agency is headed by Edwai'd E. Stokes; local industrialist, and has Fred A. Pahner, former WCKY gen- eral manager, as secretary-treasurer Its announced policy is to handle all phases of newspaper, radio and mag azine advertising, plus public and industrial relations. Dinerman broke into theatre ex ploitatlon work un^er John L. Mc- Curdy and Bilr Danziger when RKO Theatres took over the late Ike Libson's strihg of major down- town houses. He has won several national awards on picture cam paigns. Appointment of Dinerman's suc- cessor will be made by N.Y. office of RKO Theatres. Trade talk at, this end has Nate'Wise pegged for the job. Wise has been handling pub licity and advertising for RKO's three theatres in Dayton, O., since 1935. Lena Home IB Sepia Pic Hollywood, Dec. 19. Lena Borne will head an all-Negro cast in '%weet Georgia Brown," to >be produced and directed by John H. Auer at RKO. Filming starts when Auer com- pletes his current producer-director chore on, "Tlie Magniflclent Tramp." SMAIX lEZAS tHEAIBE BLAZE Bishop, Tnas, Dec. 19. ■Texas theatr.e, operated here by 1... C. Long, danagcd by fira with hMfT lorn. House tvHI be closed for : . liP a«?enA numths pendfof repairs. SLRB Recommends RKO Mgrs. Case ta the WLB Following submission of evidence,, the State Labor Relations Board has certified to the War Labor Board that a dispute warranting con- sideration of action exists between the Motion Picture Theatre Operat- ing Managers & Assistants Guild, embracing managerial help in 41 Greater N. Y. theatres of RKO and the RKO company. No hearing date has as yet been set but expected that a meeting be- fore the WLB between Guild repre- sentatives and RKO officials will be held shortly after the' first of the year. It Isn't expected before then. The MPTOM&AG went to the SLRB after it haS reached an im- passe on wage negotiations with the RKO company, latter making coun- ter-proposals which were turned down by the Guild. While the MPTOM&AG demanded a minimum of $115 for managers and $75 for as- sistants, RKO refused to discuss any- thing except $75 for managers and $37.50 for assistants, basing this offer on a survey it purportedly made of salaries being paid managerial help by circuits in the metr(^U<ant N.Y. area. Meantime the Motioq Picture Cashiers Union, embracing ticket sellers, assistants and secretaries who double in the boxoffice, is at- tempting to gain recognition for union bargalhlng purposes with RKO. Pending an election, the MPCU is reported to have discussed their problem with the lATSE, with possible view to aligning with this union. French Pix Officials Eye Canada Postwar Ottawa, Dec. 19. French'film ofliclals are eyeing tha Canadian, field, particularly in'post- war period, according to Edniond Turcotte, member df the National Film Board, who just returned tiom France. Turcotte said he huddled with film officials of the provisional govern- ment of French Republic, mulling Franco-Canadian film relations. i Stone Drops 'Sensations' Hollywood, Dec. 19. Idea of filming "Sensations ol 1946," as a successor to his "Sensa- tions of 1045," has been abandoned by Andrew Stone, due to his inabil- ity to arrange an early Technicolor commitment. Following completion of his cur- rent picture, "Bedilde Manner." Stone wlU lilm » novel for. which ha is now negotlatfaic.