Variety (July 1923)

.-■p ■• -.. ". ■•■■ T Thursday, July 19, 1923 PICTURES f •' 19 ^TAH RIGHT-BUYERS ARE NOT GEmNG GOOD BREAK » - jp» Fred Cubberly Explains Situation—Distributor Carries Both Ends for Producers—Albor^ War- ner's Statement ♦ \ i ALLEGED DELINQUENCY DENIED BY OFFKMS J. Fred Cubberley, one of the t^iggest state rigrhts buyers in the country, who has been handling the Warner Broa. product In the Mln- neai>oiis and St. Paul territory for fl»e Ifist year, failed to close a con- tmct with the organliation for their product for the coming season. Cubl>erley before leaving for the west Sundaj'. after a three-day ylait to New York, declared the producers in the independent field had evidently gone mad. judcing from tho territorial quotas that they irerc placing on their productions for the coming yearr''He Intimated that faliure to come to an under- ftanding with the Warne^ on their product wa<j over the facrthat they bad demanded excessive quotas for their product. No state rights buyer is getting anything like a fair break from the independent luoducers at this ttine. according to Cubborley, of the qorthwctt. In figuring out produc- tion costs the producer gqts his full negative cos:«i -back on the quota that ho places on the picture for territorial rights and then demands that the state rights distributot. a<< soon as he gets his money back, shall split 50-.'>0 on the gross rentals in excess, oi (hut amount, Cubberley •ays. That mar.ner of ^andIing !)ti8ln<^ft9 In the stnto rights field is^ what is wrong with the entire scheme of thingtii according to the western man. He stated that the producer failed ^o tojce into consideration the fact that the state rights <distributor has to carry the overhead of the dis- tribution, and therefore, wh«n all is said and done, he is carrying both ends of the gamble for the dis- tributor. Firsfhe pule up his share of the production cost, then gambles on getting it back. If*he doesn't, then the producer Isn't a loser: but if he does and goes over the quota he paid in gross rentals, then he still has to carry the burden of the distribution cjst and the producer gets all the cream.. What Cubberley advocates is. that the producer shall give the state rights man n break to the extent at least of giving him a look-in on the actual cost sheets and then allot the quota on a certified accounting haslfl. After the cost is returned let there be a 60-50 split on the gross rentals after the cost of dis- tribution is deduoted. ' This week the Warner Bros., over the signature of Albert Warner, Issued a denial of the story in Variety last week to the effect that there was a possibility of an amal- camation of interests between themselves and the Lichtman- Schulberg and the Louis B. Mayer Interests. Mr. Warner In his letter stated that 'The report that the •tate rights people cannot meet the advance payments on our forth- coming productions Is preposterous. Our association with these people has been of the finest calibre, and we are thoroughly satisfied with their business methods. As a mat- ter of fact, we are getting great ex- hibition value out of our current series of pictures, and our forth- coming product of 18 pictures Is now being sought by the best show- men In the Industry." Louis B. Mayer also Issued a de- nial of a possibility that he would take the releases that he had con- tracted for wTth Metro and First National out of their hands, stating that he was quite satisfied with the •xhibltion value of $800,000 that wa« placed on tiie John Stah! produc- tion of "Dangerous Age" by First National. Meantime the member of the Warnf^r Bros, firm who tipped oft the de.il originally still insists that there is 55om^il>iug doing and that *t will be diM'Iosed from Los An- Kele.s, «U\.i,ite denials. ChicMgo, July 18. Warjiff JJi-(..s. held a convpntimi of Slate rights distributors who urt- handJM.f; tlnir j.r...du<"t nt the DraUe hotel Sunday nnd Mondaj-. Sam Warn'T. inf»din'tion manager, who made the trip from the coiist to New Yorl;. returned here for the convention and enlightened those yresent regarding the 18 new pro- PRIZE nCHT FILM BOOKED IN ADVANCE Uonard-Tendler Battle July 23 at Broadway on Film July 25 Motion pictures of the flght be- tween Benny Leonard an^ Lew Tondler, scheduled for the Yankee Stadium, July 23. have been booked into Moss' Broadway, New York, for a week and a half, first show- ing Wednesday, July 26. A,price of |2.600 is said to be the rental for the 11 days. In addition to the picture, on the opening day, July 25, the winner of the flght will appear in person at the theatre, the promises of both Leona'fd and Tendler having been secured tp do so. Los Angeles, July 18. The negative of the motion pic- tures taken of the Dempsey-Glbbons world's heavyweight championship battle were solved here today by the Federal authorities at the Horsley laboratories. No arrests were made, but it was stated the government authorities would hold some one responsible for the transportation of the negative from Shelby, Mont., to Los Angeles. BLANErS FIRST "Love Bandit" Is CompisCed—"King of Opium Ring** Started Charles E. Blaney, the melodrama king of a decade ago. and more late- ly the manager and operator of a string of stock companies tn the vi- cinity of New York, who holds the rights for the screen of more than 300i melodrama successes of the ixast in his control, has completed the flrst of a series of picture produc- tions that he is to make. It is entitled "Love Bandit," adapted from the play of the same name, which will continue to have a vogue in the stock houses. Blaney is reported as already having started work on "The King of the Opium Ring," which is to be his second release. No arrangenients have been com- pleted for the marketing of the pro- ductions as yet CLYDE FILLMORE'S MARRIAGE Los Angeles, July 18. Clyde Fillmore, one tlm» a stock leading man, who has more lately been playing In pictures here, is to marry Mrs. Sadie MIchener, a wealthy Pasadena widow. , The engagement has been an- nounced to intimate friends here. ductions the organization proposes to release during tlie coming y^r. According to the plans formulated by Harry M. Warner, the produc- tion, publicity and exploitation cam- paign for the 18 pictures will entail a! outlay of approsimately $5,000,- 000. If correct it will mean that the states rights men will have to absorb an average quota of about 1278,000 per picture for the 18. The advertising campaign is to he directed by Meyer Lesser of the Blaine-Thompson Agency Of Cin- cinnati. Those, supposed to be present, ac- cording to an advance announce- ment sent out by the Warners, were Phil Kaufman, Canada: William Shapiro, Bo.ston; T. L. Wallenstein. Boston; Harry Charnas. Bert M. Stearns and Kred Scheurerman. Cleveland; William Finkle. Pitts- 4>urffh; C. J- Suruti, Jictroit; G. 11. Durmond, Chicago; L. \'enr»Mn, Philadelphia; William Oldknow, Oscar Oldkiiou, Atianl.-i; W. CI. I'nderwood, Dallas; Morgan U'al.'-h. San Francisco; !•:. J. Tunstail. Mil- waukee; A. L. K.'tlm, Kansas City: L. K. Brin. SeMttle; Harry Hynew. St. liOUis: Sam K Morris, Meyer I,eHser and Lnn Yontig oT the home o(fl< e staff In .N'.w York. Treasury Dept. Says Theatre Business Same as Other Taxable Lines Washington. July 18, Inquiries made of officials of the Treasury department regarding a recent story appearing in a local daily to the effect that the govern- ment is investi^ting a large short- age in revenue due to alleged tax delinquency by the owners of the- atres and other amasement places, brought the information the story had some little basis for fact, but that certain conjecture had be^rn in- serted Into it. There has been some delinquency on the part of theatre owners; in some cases on^the part of the big- gest operators of theatres in the country. These in most cases are, however, being amicably arranged without the penalties exacted by the government being made what might b? termed prohibitive in view of the circumstances. A deputy collector of internal revenue, familiar with the theatrical conditions in regard to tax collec- tions, admitted this year's revenue v.ould be lower than heretofore, but he attributed it to other causes rather than any unfair play on the part of the owners. He stated from his observations the business had not been so great throughout the year, with the natural result Uncle Sam's income was lessened In ac- cordance. The story referred to stated gov- ernment ofHcers had pointed out the preliminary repferts had indicated record-breaking business throughout th.' country. It was also mentioned thousands of new theatres had been opened during the year, all starting off to capacity business. The article added some ofllclals had anticipated the return from the amusement tax would reach one hundred million this year. The chief objection to the story referred to b^ the official Ulked with by Variety's correspondent was tho general manner in which the subject w^i handled, indicating that taxes from this source were entirely behind. Like all businesses there are delinquents, but the theatrical owner and taxpayer Is no worse than his follow business man. In many ca.'Je.s hisr records are more concise and comprehensive tlian reports and j;ecords from other businesses. PRESS AGENTS BLAMED Director Edwin August Show People Defends Chicago, July IS. "Unscrupulous publicity agents are the cause of so much unsavory gossip of screen and stage circles," according to Edwin August, screen director, • at the Rialto, In person this week. In an interview, he declares, that there is no more nor no less Im- morality in the theatrical profes- sion than in any other. "The reason laymen believe there Is," he explains, "Is because they hear more of that In the theatrical profession than any other." BETTY FENNYMORE LEAVING Betty Fennymore, the English beauty fronir the London Hippo- drome, who has been visiting here for two months Is returning to Eng- land on the "Homeric," July 28, after having turned down the offers of three picture producing organi- zations to have her remain and ap- pear before the camera here. SOUmERN F. P. SHAKE-UP ii.* STARTS. STORM BREWING Operatioh of Former Lynch Chain Remaved From Southern Enterprises — More Showmanship Against Coniman4ing Opposition v TWO WHOLE REELS CUT OUT OF 'RED' FDH Appeal Board Declares ''Rus- sia" Picture is Propaganda —Protests Against It Kansas City. July 18. The attempt of the organisation known as Friends of Soviet Russia to exhibit a "r^d" film with the title "Ru8.sia Through the Shadows" re- ceived a severe jolt when both cen- sor and board of appeals ordered whole reels cut out. The Parent- Teachers Association and American Legion protested. An appeal from the censor's rul- ing was made and the appeal board sat in judgment. After seeing the picture the board'ordered the first two reels, showing views of the Russian arms, cut out, as were other "red" suggestions. .The board, after seeing the pic- ture, stated they were of the opinion it was more of a propaganda move- ment than a humanitarian effort. SCHILDKRAUT SHIFTS Moves Over to Sehenck's $1,600 Weekly Ltft at Los Angeles, Jitly 18. Joseph Schildkruut has been signed to support Norma Talmadge in a new production. The stage .<:tar's salary under contract to Jo- seph Schenck is |1.C06 weekly. Scliildkraut was brought to Loa Angeles by the (loldwyn Corp. to play a part In Hall Caine's "Matters of Men," but on his arrival decMeil that he was not suited to the role and asked Abraham Lchr, studio manager, to release liim from the coruract. Lohr complied wltli the artor's request and at the CJoldwyn lot it is said that no Ill-feeling exists over the occurrence, tTicy explaining it simply as an example o£ a bad guess in casting. '.'.:■■■.'^ ^'' .':''■■''•'.■'■''"'■. VALENTINO WITH WILLIAMS J. D. Williams at tho Rltz-Carlton last night (Wednesday), gathered the trade press together at a dinner and made the announcement he had entered into an arrangement where- by Rodolph Valentino would make a series of productions for the Rlts- Carlton Pictures over a period of years. At Famous Players yesterday Eiek John Ltidvigh stated the con- tract nis organization had with Ro- dolph Valentino expires B'eburary 4, 1924, and carries a clause giving the Famous Players an option on the star's services for an additional year, also that Famous Players would exercise that option. "How to Educate a Wifs** Los Angeles, July 18. Grant Carpenter has been selected by the Warner Bros, to maks the screen adaptation of their feature, "How to Educate a Wife."* Carpenter made the screen ver- sion of "The Gold Diggers," Over on the Jersey side at Fort I^ee they are bewailing the fact that the community ever let picture production slip out from un«ler thfm. Only last week the City Council at Fori Leo passed a resolution advo- cating the organization of a committro to try to SKCiln lure the picture producers to their tight little village en the PaUsades. Those that are advocating the plan want William A. Bra^ly, who has one of the studios in tlie Fort I^e** district, to head the committee and to use liis efforts to establish that community again as the production center around Now York. Ten years ag9.Fprt Lee was t he ono and only spot where tliey produced ni'turos in thc» east in quantity. The locals there, howevci", aliused the I icture ftWk and held them up right and loft, according to producers and directorjc, nnd In time drove out practiciliy all of tiiem. Home of the companies that owned their studios and tho ground on which 'hey were ocatofi held out for a while but*wlion IIkhc cuuipanies tliemscl»i*s passed ^lom tltc fleld the studios closed down. At that picture pruductlon In tl»o vicinity of New York is at a decidedly low ebb at present. Last week from a ci\eck up secured at nne of tiio laboratories there was but one company working In New Yorl<; Ih's weolc. ac'ording to the sinii tJurce, the'^e sk* i>i.t tiuee. Dallas. July IJ. There is seenJngly something of a storm brewing over the manage- ment of the Famous Players houses in this particular territory. The houses lately havs |>een removed from the position of having thehr operation dictated and to a lame extent directed from the oAloen of the Southern EInterprises here. There seems no question but that Famous FUjers is dlosatlsfled wlLh the war many of ths theatres that are connected with the Southern Enterprises are bslnc operated. There have been constant rumors that A. :. Pair, a director of South- ern Enterpriseif ^eatres. may be replaced. It was seemingly con- firmed when Fair was called to New York, and Harold B. Franklin for F. P. made his hurried visit to Dallas several wesks ago. The sending of Bruce Fowler to this city as the manager of all the Famous Players houses here with an understanding that no one in the Dallas headquarters of the 8. E. could Interfere with his operation of the houses Including the Palace, the biggest, has been a blow to the pride of Fair and has brought about rather strained relations between the theatre and ths headquarters factions. Ever since ths Famous Players purchased the S. A. Lynch Interests in the Southern Entorprlsea there has i>een an undercurrent of unrest In the executive oflflces of ths En- terprises. Then the appointment of Harold B. Franklin a* director of theatres for ths entire Fomotis Players chain tended to bring the belief that there would be a numl/er of changes in the management of the houses in the south.. This c-ame to be a fact in some respects when 'Franki! i made a trip south after a conferen in Now York at which a number ot the S. E. executives were present. There is a rather peculiar situa- tion as regards the Joint ownership of the Han Antonio houses by Famous Players with Bill Lytle. who hud controlled San Antonio for years tintll the Southern Enterprises compelled him to sell hoJf Interest through purchasing a site adjoining his Empire theatre and started t.» build a house of its-own. When Famous Players took over Southern Enterprises it had to also take the contract which Lytle held permit- ting him to play F. P. pictures for 20 per cent, of the groes. The Dallas exchange wtnt up In the air wlio.i it was discovered, for Lytle was in a position to also play other pic- tures than those of the Famous nnd placed the outside productions in his better houses exhibiting th^ Fambus Mayers productions, wlilcii cost hhn less than the contract, iti his smaller theatres. No matter what the eventual re- sult of the shake-up In the south will be. the "hit or miss" type of showmanship prevailing in the ter- ritory is gohig to bo a thing of the past in a verj short time. Famous Players houses will be so conducted in the future the opposition theatres that have progressed far l>eyond them in the matter of presentation of pictures will feel the effect of thf> new element in the fleld. The advent of Bruce Fowler sooni'* to be the first move on the part of Famous Players to reorganize. Fow • Icr seemingly Is a thorough show- man und It Is quite readily under* htood why he was not asked to suf- fer the embarrassment of having ><• be under the direction of the Dallas executives of the 8. E. He is en- thusiastic over the local situation and particularly strong fur iHtu Albert, the musical director aL the Palace. The local exchange attaches rue al«o finite outspoken in their julnli- tion of no longer being under the Jurif-dlctlon of the Southern Enter- priso lioads. An exploitation de- partment li.is he'-n addf'd to the ex- change t<» l.-.iMter ni» tytic^s in ttie territory in general. The .^. K. executive ofllces are lo- cated in tho same' building ns fl>>* exchiiit and when Mr. Fair v.a-i seen t luM e. li** was most curt recart'- ing tho cliai))i{«j.< that have been made th(i<> for, briefly stating he !»«•- lieved tliat matters would renvi'w kbo'.il ;is th-y are al I'lescnt.