The Film Daily (1938)

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{Intimate in Character International in Scope I Independent in Thought /C % 74, NO. 28 |-|" HivP^O^^ The Daily Newspaper Of Motion Pictures Now Twenty Years Old -1FDAILY' NEW YORK, WEDNESDAY, AUGUST 3. 1938 TEN CENTS Re-enactment of Federal Admissions Levy is Forecast GN CREDITORS OKAY WORKING OUT OF EJJUC. DEAL New Principle Marks Revision of Canadian Clearance Equity Suit . . . legal viewpoint Br CHESTER B. BAHN = iA/ITHOUT attempting to minimize the T » seriousness of the situation arising rom the Government's equity action against 'he organized industry, there is reason to •elieve that the industry's legal position s far stronger than is generally considered, ioth inside and outside its ranks. The Government's petition sets forth hat the action is instituted under Section f of the Act of Congress of July 2, 1890, entitled "An Act to Protect Trade and Commerce Against Unlawful Restraints and vlonopolies," and, stripped of court phraseilogy, charges that, within the industry, monopoly and conspiracy exist. Can the Government prove either or ioth? In the opinion of counsel who have studcd the petition and its ramifications, that s exceedingly doubtful. Their observaions take into consideration not only the onditions prevailing in the industry but egal precedents, legal tenets and legal constructions. — • — kiONOPOLY, it is pointed out, usually '"' means one thing to the man in the ;treet, another to the courts. The Government, to show monopoly exists, actually Tiust establish that there is single control >f the supply of product. That is, it must Drove that the exhibitor is restricted to one source for his film. For reasons that are too obvious to require enumeration, it is held that the jovernment's cry of monopoly will become 'he weakest sort of whisper when and if rhe case goes to trial. In the matter of conspiracy, it is the matured judgment of counsel that the Government must also fail. It is the Department of Justice's position that there are 'contracts, combinations, and conspiracies 'o restrain interestate trade and commerce n the production, distribution, and exhibi ion of motion pictures." The evidence, counsel point out, is all he other way. Instead of conspiracy, ."here is the keenest of competition in all hree fields. There is expensive competi ive bidding for talent and for stories in (Continued cm Page 2) Graduated Percentage of Price Difference Said Key To Plan Toronto — New clearance principle will feature the proposed new Canadian clearance schedule now heing drafted by the sub-committee of the Conciliation Committee of the Motion Picture Bureau of the Toronto Board of Trade. The present 28-day stretch granted for each five-cent difference in admission prices, will give away to (Continued on Page 8) ATLAS REPORT NEWS TO HIM, SAYS GOHEN Denying any knowledge of reports connecting him with the Atlas Corp. and its film interests in Italy, Emanuel Cohen, head of Major Pictures, returned yesterday from Europe on the Aquitania. Cohen, who went back to Europe within two days af (Continucd on Page 7) Palfreyman at Detroit for Ad Drive Regional First of the regional meetings in connection with the "Movies Are Your Best Entertainment" campaign gets under way today in Detroit. Dave Palfreyman, of the MPPDA, left last night to assist H. M. Richey (Continued on Page 8) KENT SPEEDS REFORM PLAN Reported Ready Except for Minor Details Sidney R. Kent may announce a fair trade practices program as devised by the distribs. negotiating committee, of which he is chairman, this week, it was learned yesterday. Kent, it was said yesterday, now plans to leave New York for Maine Friday night, following the departure for the Coast of Darryl Zanuck. It was said that Kent is anxious to call a meeting of exhibitor leaders and present the plan as quickly as possible and that after a general committee session later this week, an official announcement will be made. An informal meeting was held yesterday and another may be held today. It is indicated that the plan is completed except for minor details. WB TO OPEN LONDON THEATERONOGT.il Warner officials declared yesterday that Oct. 11 has been definitely set for the opening of company's new theater in London now being (Continued on Page 8) Re-enactment of Federal Admish Tax Said Agreed on by Treasury Officials Berlin-"Band" Broadcast to Draw Industry Execs. Industry notables will be sprinkled freely through the audience in CBS Radio Theater No. 1 tonight for the Irving Berlin-" Alexander's Ragtime (Continued on Page 3) By PRESCOTT DENNETT Washington Bureau of THE FILM DAILY Washington — Retention of the present admissions tax beyond the present 1939 expiration date was indicated here yesterday when it was reported Treasury Department officials had agreed informally to rec(Continued on Page 3) Hammons Offers $400,000 Cash to Form New Corporation West Coast Bureau of THE FILM DAILY Hollywood — Authorized by GN's creditors, Loyd Wright, co-trustee of Grand National, leaves tonight for New York to work out final details of the proposed EducationalGN merger with E. W. Hammons, Educational prexy. At a meeting of GN creditors here yesterday, Wright disclosed that Educational was ready to put up $400,000 in cash to form a new corporation. It was also proposed that a finance company be established (Continued on Page 7) 20TH-F0XANDNT SET 2-YEAR PRODUCT DEAL Two-year deal has been closed between 20th-Fox and National Theaters for the company's product lineup, Herman Wobber, general manager of distribution for 20thFox told The Film Daily. Contract covers approximately 350 theaters on the Coast and in (Continued on Page 3) Ben Thau Subs for Mayer on Brit. Production Trip Ben Thau, M-G-M production executive, sails today on the Normandie for England where he will combine a vacation with duties in connection with the company's British production program. Thau, who arrived from the Coast yesterday, said that M-G-M would complete all of (Continued on Page 7) Brit. Production Low London (By Cable) — During the first quarter of 1937 there were but 17 features produced by British studios — the lowest number in eight years. From April to July 1 there were 27 feature productions, making 45 for the first half of the year as against 220 in the first half of 1936. Of the 20 British studios, but nine are open.