Motion Picture Daily (Jan-Mar 1934)

The Leading MOTION PICTURE DAILY Alert, Intelligent an Faithfiffc Serv*pei/t6 the Industry in All Branches fOL. 35. NO. 66 NEW YORK, WEDNESDAY, MARCH 21, 1934 TEN CENTS Precedent Set On Para. Rent Disallowances irst Dropped by Court Is for $619,805 Establishing a precedent for the disosition of millions of dollars in fuare rent claims involved in the Parnount Publix and Publix Enterprises ankruptcies, Federal Judge John Lnox yesterday affirmed an order by eferee Henry K. Davis disallowing claim of $619,805 filed against Pubis Enterprises by Emme Floto escheider, landlord, for future rent I a repudiated lease on the Para•ount. Steubenville, O. Yesterday's decision by the U. S. (Continued on paae 5) 4ove to Levy New Taxes Fails in L. A. Los Angeles, March 20. — Attempts levy new license fees and special re prevention taxes on all branches the industry for the purpose of iping out the city's $1,500,000 esti ated deficit were defeated today at (Continued on page 18) lew Fox Met. Plan Is to Be Set Soon Reorganization plans for Fox Metpolitan Playhouses are expected to be fomitted to the court within a week 10 days by a committee of which "nest Niver is chairman. Following ibmission of the plans, the court will it a date for the public sale of the operties. laming of 2 Boards Is Expected Today Personnel of clearance and zoning d grievance boards in New York d Philadelphia is expected to be set (Continued on page 5) Salary Problem Jack L. Warner, in from the coast, in a humorous way complains that the salary situation at the studio has him nettled. "Those getting $2,000 a week want $4,000," he says. "Those getting $4,000 want $6,000. And we? We don't want to give them anything." New Setup for Fox Units In Midwest Is Seen Near Kansas City, March 20.— With difficulties still in the way of emergence from bankruptcy by Fox Midland and Fox Rocky Mountain Theatre Companies, local attorneys say a definite plan is not far off. Regrouping of Rocky Mountain holdings that are solvent into wholly owned subsidiary companies, where new deals have been made with landlords, has advanced that unit to a degree of reorganization that is said to be 90 per cent complete. New subsidiary corporations have been formed for some 40 houses. In addition, 10 houses have been turned back to the owners by Rocky Mountain and Midland, in instances where rent revisions could not be effected or where operations had proved unprofitable. W hile Rocky Mountain is progres (Continued on page 10) Appeals Court Missouri Stay Hears Attack One of First On RKO Deal For New Law An attack on an agreement between holders of first and second RKO liens aggregating approximately $13,000,000, which prevented a foreclosure and sale of RKO assets early last year by extending the maturities on the secured gold notes of the company, was carried into the U. S. Circuit Court of Appeals here yesterday by Walter Reade's Broadway and 47th St. Corp., an unsecured RKO creditor. Reade's action was an appeal from an order signed by U. S. District Court Judge Woolsey last September which directed Irving Trust Co., RKO receiver, to cause subsidiaries of RKO to replace temporary notes securing the lien with permanent notes and to pledge completed film negatives as chattel mortgages to secure the new (Continued on page 5) Labor Board Seeks Action on An Order Action to obtain compliance with the NRA Regional Labor Board's findings will be taken against Manhattan Playhouses in the event two employes alleged to have been dis (Continued on page 5) St. Joseph, Mo., March 20. — While granting a temporary injunction to Dubinsky Bros. Theatres stopping the operators' and stage hands' unions from committing violence, Judge Merrill E. Otis in the Federal Court here declared that under the Norris act he could not restrain the unions from picketing. This was the first injunction action under the new law in this part of the country. Part of a 3,000-word decision in the case stated : "I think the court is bound to restrict the injunction, as is required by Section 104 of the Norris act. The court has no power now, whatever power it once had, and I do not know that such power should be exercised in any event, but it has no power now to restrict what is spoken (.Continued on page 11) Two Kansas Sunday Votes Up March 26 Topeka, March 20.— The fate of Sunday shows, always a blazing issue in Kansas, will be decided in Emporia and Manhattan on March 26, when referendums will be held in conjunc (Continued on page 10) Will Recommend End of Federal Admission Tax Washington, March 20. — Repeal of the admission tax will be recommended in the tax bill to be reported in the Senate, possibly tomorrow, by the Finance Committee, it was announced today by Chairman Pat Harrison of Mississippi. Nearing the end of its consideration of the measure, the committee to (Continued on page 18) Patman Bill Is Brookhart Plan Revived Myers Urging Allied to Get Behind It _ Washington, March 20.— That Allied is behind Congressman Patman's so-called block booking bill for the purpose of putting the industry under the control of the Federal Trade Commission is apparent from the latest Allied bulletin. "The bill is substantially the same as that drafted by a joint committee of Allied and the M. P. T. O. A. in Chicago in 1932, and which was later introduced into the Senate by Senator Brookhart," the bulletin states. "It prohibits compulsory block (Continued on page 5) Hays Places Ban on Dillinger Picture No film based on the life or exploits of John Dillinger, Indiana bandit, will be produced, distributed or exhibited by any member company of the M. P. P. D. A., Will H. Hays stated yesterday following action taken by the board of directors of the association. The board's decision, Hays stated, (Continued on page 10) Business Picks Up In Idaho and Utah Salt Lake City, March 20.— Business is on the upgrade in both Utah and Idaho. Retail trade here, an index for the (Continued on page 5) Majestic Planning 12 for Next Season No less than 12 features will comprise Majestic's output for 1934-35 and plans for the new production are (Continued on page 5) "Nodding" Job Hollywood, March 20. — A visitor on a set at M-G-M was introduced to the assistant director. "And just what are the duties of an assistant?" inquired the stranger. "Oh," drawled the assistant, " 'nodding3 in particular."