Boxoffice - Feb. 17, 2014

1 "Pinocchio"
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COMMERCE'S REPORT SUGGESTS NO SPECIFIC
FOR RELIEF; PAVES WAY FOR MORE CONFABS
9 New Suits In, 8
Out Since Jan. 1
New York—Since the first of the year,
nine new anti-trust actions have been filed
by independent operators against major
companies. Eight individual pending suits
involving alleged violation of the Sherman
Act have been settled and withdrawn from
the federal court calendars.
The settlement of one suit is pending and
from reports two other new actions may
be instituted unless the proposed plaintiffs
get together with distributors and other
interests.
In the list of new suits seven were instituted
by one operator, E. M. Loew of
Boston. The others were by Rubin Shapiro
of the Admiral, Philadelphia, against
Warner and the majors for $75,000 damages;
and the Waldo. Waldoboro, Me., action
for $250,000 against several Paramount
theatre subsidiaries and major distributors.
The Loew action seeks $640,000 triple
damages and involves a number of open
air drive-ins.
Suits disposed of by minor readjustments
are as follows:
Joy Amusement Co., operating the Joy,
DaUas. against Interstate and majors for
$17,000,000 and attorney fees.
Indianapolis Amusement Co., Roy E.
Bair, plaintiff, against majors. The plaintiff
at one time operated a small circuit.
M. M. Buchanan of the Bama. Athens,
Ga., sold the theatre to Tony Sudekum
and at the same time withdrew his suit
against the Crescent circuit and majors.
The Linden, Baltimore, against Louis
(Continued on page 14)
Children's Scale of 25c
Asked for "Pinocchio"
New York—RKO's sales policy on
calls for a minimum 25 cent
;
for children and an increase
current scales of 10 cents for adults,
plus a guarantee of the same playing time
given "Snow White."
Aside from these conditions, it is undersome
deals are being sought at 50
per cent, others at 40. The percentage al-
varies with situations and other
factors tying in with the run.
, j
New
negative cost is reputedly placed at
$3,000,000. This includes costs charged off
to experimentation and portions of the
film originally made, then scrapped for
improved sequences.
Loew Dividend
York—Loew's has declared a 50
j
cents common dividend, payable March 30
i to record stockholders of March 15.
BOXOFFICE :: February 17, 1940
Accord, However, Seen
Stymied by Justice
Attitude in Suit
By EARLE A. DYER
Washington—No definite, detailed, concrete
recommendations for solution of industry
problems were made by the department
of commerce in the report it sent to
the department of justice last month.
That report, it is learned, discussed the
situation only in broad terms and, apparently,
was not intended to be a document
on which Assistant Attorney General Thurman
Arnold would take any immediate,
definite action.
To considerable extent, it is believed, the
report was designed to form a basis on
which there could be further conversations
between the department of commerce
group and representatives of the industry.
It was sent to the department of justice,
apparently, so that Arnold could learn just
what the Hopkins group was doing.
Commerce officials are hopeful that by
the end of this month they can arrange
for new meetings with the industry, but in
unofficial circles it is suggested that their
efforts to reach an agreement with the industry
wiU be badly handicapped by the
uncompromising attitude of the justice department
toward the New York suit and
the unabated agitation for the enactment
of the Neely bill.
With hearings on the block-booking legislation
tentatively scheduled for next
month and the New York case due to go to
trial early in May. it is not believed in
Washington that the industry has either
the time or the inclination to digress into
more or less teclinical discussions with the
commerce department, which apparently
can have little or no effect on the two
issues with which it is preoccupied.
However, it is suggested, if the Neely
bill is defeated and some face-saving settlement
of the anti-trust suit reached, the
"big boys" will lose no time in hitting the
sawdust trail to Washington, to make a
real effort to develop trade practices universally
satisfactory and put an end to the
complaints which today have distributors
fighting with their backs to the wall.
Delays "Westerner"
Until 1940-41
New York—In order to insure wider
distribution for "The Westerner," UA is
holding over the picture as part of its
1940-41 lineup. Release has been in
doubt so long, little or no attempt was
made to sell it on the present schedule.
Since the picture is reported to cost
about $1,500,000, the company feels
maximum returns can better be realized
through delaying the release.
Better U. S. Takes
Is Hope—Mayer
Detroit—World War No. 2 was a blow
to evei-y studio on the coast and the only
way to overcome it is to hire more capable
production talent in order to make
bigger and better pictures which wHl gross
more in the domestic market, Louis B.
Mayer states.
He said that the problem still facing
the studios for the coming season is to
trim down studio costs around the edges
in months to come. "I don't mean in
budget costs but in general studio overhead
where hundreds of thousands of dollars
can be saved. But as far as actual
pictures are concerned we'll make everything
we think is entertainment. We'll
determine our budget, especially on top
product, as we come to each picture.
Naturally, if I feel that putting another
$200,000 or so into a picture will make it
much better, I will do so.
"So, despite the international situation,
big pictures, and we'll make even more of
them next year, will bring back profit in
1940-41 just as they are doing this year."
Mayer constantly referred to the present
record of "Gone With the Wind," during
his discussion. He pointed out the unheard
of grosses of "GWTW," how it is
expected now to get its production costs
back within six months, and how extended
playing time is being accorded it,
"all because it is doing business, and still
making money for every exhibitor playing
the picture."
Despite definite pronouncements of pro-
1 Continued on page 14)
"A Pattern for Future?"
Called Trade "Dream"
Detroit—Referring to "A Pattern for
the Future?," Boxoffice editorial of two
weeks ago. Louts B. Mayer, while here, observed
a division of production effort under
which majors would concentrate on major
product and leave the filler, or less, product
for companies designed to fill that market
requirement, is a dream and the Utopia of
the industry.
Because of the general pattern of "Gone
With the Wind" and other forthcoming
big pictures, the M-G-M production head
stated future product may be expected to
run two hours and beyond on the theory
this, eventually, will tend to eUminate double
features.
He added, however, that any plan, such
as was suggested editoriaUy, whereby distributors
would be content not to grab
every single theatre date might be difficult
to evolve, especially if the Neely bill becomes
law. Then, he said, the government
might attempt to regulate to whom the
companies can and cannot sell.