Motion Picture Daily (Jan-Mar 1934)

MOTION PICTURE DAILY Tuesday, January 2, 1934 Day-by-Day Chronology of '33 Jan. 3. — Major distributors agree to original proposal of inaugurating national appeal board for three-year term in place of one-year trial favored by some distributors earlier. Increasing interest of Rockefeller family in industry, through Chase bank holdings, involving Fox and Loew's, in addition to RKO-Radio City association, stirs speculation. Jan. 4— Radio City Music Hall grosses $106,400 in first week, as compared with S. L. (Roxy) Rothafel's advance estimate of $130,000. Jan. 5. — RKO changes Music Hall policy from stage shows to film and presentations. Jan. 6.— Operation of Radio City Music Hall turned over to cabinet of seven headed by Harold B. Franklin. Begin trimming house's overhead. Jan. 7.— John Hertz, Chicago financier, a power in Paramount Publix for the past year, resigns chairmanship of finance committee and withdraws from Paramount. Move ascribed to conflict in authority between Hertz and Zukor, with Paramount bankers seen backing up latter. Jan. 9. — Adolph Zukor's assertion of authority in events ending in resignation of John Hertz regarded in industry as victory for film executive rule as against rule by outside parties. Jan. 10. — Paramount Publix directors elect George Schaefer, Sam Dembow, Jr., and Walter B. Cokell to membership on board and appoint all three to executive committee. Jan. 11. — S. R. Kent voices opposition to admission cuts by circuits, declaring Fox policy of demanding 25-cent minimum admission on its "specials." Broadway begins cutting scales. Moves on in other cities. Jan. 12. — M. A. Lightman, M.P.T.O.A. president, advised Universal will make new standard contract available "within month. Jan. 13.— Ranking M-G-M executives leave for coast to confer on negative costs. Paramount will offer new standard contract March 1. Jan. 14. — Joseph M. Schenck will end activity as producer, retaining presidency of United Artists, however, Hollywood hears. Jan. 16. — Federal re-instatement of wartime admission taxes of 10 per cent on scales from 10 cents up seen probable in Washington. Jan. 17. — Victoria Amusement Co. starts anti-trust suit against major distributors, Warners and subsidiaries in Camden, N. J., Federal court. Jan. 18.— Picketing of New York theatres, underway for months because of rival operator union controversy, seen ending. Jan. 19. — Final drafts of new industry program including establishment of national appeals board as supreme court of industry for internal disputes sent to exhibitor units for study. Jan. 20. — Discussions of physical distribution merger anions majors seen halted for time being by new and more pressing problems. Jan 21. — Harry Brandt believed in line for control of 7th Ave. Roxy. Court approval needed. Jan. 23. — Large distributors reported considering action at spring sales meets which would result in several companies fixing 20cent minimum admission provision in contracts. Jan. 24. — Fox reported ready to take over Educational physical distribution. No merger involved. Bancamerica-Blair Corp. linked with RKO receivership. Motion Picture Daily reveals Alfred West, receivership petitioner, is associated with banking company/. Jan. 25. — Educational-World Wide selling and physical distribution to be handled by Fox under five-year deal. Dispenses with Educational's sales. Publix completes decentralization of entire circuit, resulting in turning over 90 per cent of operating authority and duties to men in field. Jan. 26. — Fox Theatres start partial decentralization move, with relinquishing of operation of midwest units. Lewis J. Selznick dies in Hollywood. James C. Ritter, Detroit exhibitor, elected president of Allied States, succeeding W. A. Steffes. Abram F. Myers continues as chairman of board, general counsel. Survey reveals 5,895 theatres closed in U. S. on Jan. 1. Jan. 27. — Paramount Publix consents to equity receivership action. Adolph Zukor and Charles D. Hilles, prominent insurance man and former chairman of Republican National Committee, named receivers by Federal Judge Bondy. Paramount directors call move a "protective" one in interests of company's bondholders and creditors. Publix Enterprises, theatre subsidiary, files petition in bankruptcy. Jan. 28. — RKO consents to Alfred West petition for receivership. Believed friendly action in light of Motion Picture Daily's earlier disclosure West was associated with Bancamerica-Blair Corp., interested in RKO six per cent gold notes. Orpheum files petition in bankruptcy. Jan. 30. — Paramount Publix and RKO executives see "re-birth" of companies on healthier basis, with receiverships undertaking reorganization of unprofitable theatre holdings. Jan. 31. — Irving Trust Co., RKO receiver and Orpheum Circuit trustee in bankruptcy, begins study of companies' tangled financial structure. I February Feb. 1. — Irving Trust, trustee in bankruptcy for Publix Enterprises, begins study of theatre holding company. RKO files receivership schedules showing total assets with an estimated book value of $104,000,000 and liabilities of $19,500,000. Feb. 2. — George Topliff named by Irving Trust Co., to direct Publix bankruptcy. Feb. 3. — First Choice Pictures completes organization. To operate on franchise plan with J. D. Williams, Earl Hudson and other former First National executives at head. David O. Selznick resigns Radio post. Feb. 4 — -No merger for Warners, Jack L. Warner says at Kansas City, en route to Hollywood. Company plans 60 for 1934. Merian C. Cooper named to succeed David O. Selznick at Radio. Feb. 6. — Publix to retain only skeleton executive staff in New York. Feb. 7. — New tax bills before state legislatures aggregate 300 to 400 millions. Sam Katz reported seeking United Artists release for his planned product. Feb. 8. — Reorganization of M-G-M production believed in prospect with David O. Selznick reported an associate producer. Feb. 9. — Important banking and administrative interests form RKO stockholders' protective committee. Feb. 10. — Ed Wynn tells Motion Pic ture Daily he has signed M-G-M contract; company also reported after Jack Pearl. Universal Chain Theatres Corp. consents to friendly receivership in Baltimore Federal court. Warners form 41 theatre units, incorpor ated in Pennsylvania. Home office denies decentralization move is on. Feb. 11. — M-G-M denies Irving Thai berg's place to be filled by another. Thai berg on leave due to illness. Feb. 13. — David O. Selznick was signed by M-G-M to speed up behind schedule pro duction, and will have no effect on status of Irving Thalberg, Howard Dietz, M-G-M advertising and publicity director, declares Contracts of Paramount players and ecutives to be switched from Paramount Publix, bankrupt, to Paramount Prod., Inc is report as Henry Herzbrun, company's studio attorney arrives at home office. Fox New England in equity receivership Feb. 14. — M-G--M scheduled to put new optional uniform contract in use tomorrow Feb. 15. — Major distributors, influenced by economy programs, seen favoring small regional sales meetings in place of large national confabs; $50,000 saving seen. Michigan banks close throughout state. Theatres remain open. Feb. 16. — Reports link Sam Katz with high United Artists post. Katz denies. Feb. 17. — Connecticut court authorizes foreclosure on Fox New England houses. Feb. 18. — First report of RKO receivers, published exclusively in Motion Picture 3aily, reveals company to be in liquid condition with assets exceeding liabilities by more than four to one. Irving Trust, continued by Federal court as RKO receivers. Feb. 20. — Resignation of Edwin Loeb as studio abritrator under producer's pact designed to end star and talent "raids," seen as indication of pact's failure to work. Feb. 21 — Skouras freres begin decentralzation of Fox Theatres; national circuit to be operated from five focal cities. Feb. 23. — Delayed sales conventions and consequent late opening of selling season for 1933-34 product forecast exclusively by Motion Picture Daily. Feb. 24. — Reorganization of Publix Enerprizes, providing for sale of its assets to Paramount Publix, may be ready in six months. Feb. 25. — New York federal court dismisses long-pending monopoly suit against Paramount filed by Edward Quittner. Middletown, N. Y., exhibitor, who asked triple damages in excess of $5,000,000. Feb. 27. — Complications in theatre situation because of bankruptcies and receiverships may influence Universal in delaying signing of new uniform contract. Feb. 28. — Fox West Coast circuit of 50 houses files voluntary petition in bankruptcy in Los Angeles. Charles Skouras and John Treanor made co-receivers. March 1. — Fox West Coast plans immeddiate disposal of all unprofitable houses. March 2. — Distribution executives report no unusual falling off of sales as result of theatre bankruptcies and receiverships. March 3. — Industry goes on cash basis as bank holiday situation becomes acute. Only cash or postal money orders accepted. Federal court at Chicago denies petition for receiver for Publix-B. & K. and Great States. N. L. Nathanson reported ready to come back into Paramount theatre operations. March 4. — First report of Paramount receivers reveals companv in liouid position with assets of over $150,000,000 and liabilities of about $48,000,000. Motion Picture Daily exclusively reveals resignation of Charles E. Richardson as Fox treasurer and his association with Chase Bank. March 6. — Leaders encouraged by "action" policv on national economic problem stressed by' President Roosevelt in inaugural address. March 7. — Distributors' credit and collec tion system reported functioning successfully in face of national bank holiday. Circuit executives report business holding up March 8. — Production executives sav studios will shut down only as "last resort.'! March 9. — Seven major companies vote salary cuts of 50 per cent on wages over $50 weekly and 25 per cent on those under $50. Warner studio players balk at cut. Some studios, short on cash, defer pay checks; others pay in part. Estimate about 35,000 persons affected by cut. March 10. — Pay cut plan extends to all MPPDA member companies. March 11. — Studio locals of I.A.T.S.E refuse to accept pay cut; ask for I.O.U.'s March 13. — M-G-M and Fox withhold new picture releases. Currency situation because of bank closings throughout country seen as reason. March 14. — Ten major distributors assure exhibitors of normal product supply during bank emergency, as aftermath of M-G-M and Fox action in shutting off releases. March 15. — Major companies revive pay cut program by exempting all salaries up to $50 weekly. Graduated scale of cuts from 25 per cent up to 50 per cent adopted for those over $50. Paramount Publix files voluntary petiion in bankruptcy. All studios but Fox reopen following one day shutdown. March 16. — Federal court at Boston rules unauthorized picture holdovers are violations of copyright laws as well as breaches of contract, and, therefore, may be prosecuted under Federal statutes. March 17. — M-G-M and Fox rescind action cancelling picture releases. March 18. — Adolph Zukor and Charles D. Hilles, co-receivers for Paramount Publix, continued as conservators under company's bankruptcy until April 3 when trustees will be elected. March 20. — Union labor's position on salary cut to be defined in New York meeting in few days. May result in studio shutdown. Studio crafts openly oppose cuts. March 21. — Hollywood expects 85 per cent of studio workers to accept pay cut on eve of putting slashes in effect. March 22. — Lowered morale in exchanges may result in shortening period of pay cuts for distribution branch of industry. March 23.— Major circuits agree with vaudeville acts on 25 per cent salary cut until Sept. 1. March 24. — Los Angeles theatres stage quick "come-back" after earthquake and reopening of banks. March 25. — Company heads discuss plans for ending salary cuts; said to hinge on return of film receipts to pre-bank holiday levels. March 27. — Studio union leaders gather New York for discussions of wage cut actions. March 28. — Mergers of physical distribution and reductions of stars' salaries needed to help industry out of financial plight, Will H. Hays says in annual report of M.P.P.D.A. members. March 29. — Leo Spitz, executive advisor in Paramount Publix affairs for past year, resigns unexpectedly, Motion Picture Daily learns exclusively. March 30. — Congressman William I. Sirovich, of New York, asks Federal investigation of industry. March 31. — Sidney R. Kent, president, says Fox will not go into receivership; plans financial reorganization of company. Events are listed in the order in which they appeared in MOTION PICTURE DAILY and not always in chronological sequence. Apr. 1. — Fox Film stockholder withdraws petition for receivership for company following completion of Sidney Kent's plan for financial reorganization. Apr. 3. — Universal Chain Theatres Corp. disposes of its last three houses. Apr. 4. — Columbia ends 25-50 per cent salary cuts after four weeks. Other companies expected to follow suit soon. Producing Artists, Inc., headed by Sam Katz, is organized. Apr. 5.— Will H. Hays and eastern heads of all major companies to prepare to leave for Hollywood to discuss industry problems and reconstruction with production executives, Motion Picture Daily reveals. Apr. 6. — M-G-M obtains temporary injunction restraining State of New Mexico from enforcing its newly enacted law requiring distributors to offer pictures for sale to highest bidder. Distributors' petition cites law as unconstitutional and burden on interstate commerce. Hearing to make injunction permanent scheduled for tomorrow, accofding to Motion Picture Daily's exclusive story. Apr. 7. — Contingent of major companyheads and Will H. Hays en route to Hollywood, with Red Kann, Motion Picture Daily editor, the only trade paper representative aboard executives' train. Apr. 8. — Aim of industry heads is to find way to balance operating costs with grosses, Red Kann ascertains aboard train bearing major company executives to Hollywood, as Broadway acclaims his presence on train as achievement of progressive journalism. (Continued on page 8)