Boxoffice (Jan-Mar 1940)

SUPREME COURT'S REFUSAL TO REVIEW PLAN MOVES RKO OUT OF REORGANIZATION WOODS Streamlined Accessory Service Beiore Courts Almost Seven Years, Plan Promised; RKO and fLT to AA Soon Effective New York — A streamlined service embracing every conceivable type of advertising display material from all majors, which exhibitors may secure on a rental basis from a centralized, single source is the goal of Advertising Accessories, recent.y formed subsidiary of National Screen. RKO and Universal are the latest dis. tributors to become affiliated with the scheme. At least three other majors will follow suit within the month. Paramount already has signed. Eventually, all national distributors probably will be represented by AA, which will, when all deals are closed, be the first organization authorized to sell distributors’ display advertising outside the distributors’ premises. Even as these facts were revealed by Charles S. Casanave, general manager of AA, and George Dembow, general sales manager of NSS, details for the establishment of branches in 32 key cities to handle the new line of display advertising were being worked on. By February 1, AA expects to have set up its own branches in all key situations with the exception of Albany, Buffalo, New Haven, Pittsburgh, Cincinnati, Portland, Ore., Salt Lake City, Indianapolis and Milwaukee. In the latter spots, Paramount exchanges will temporarily handle the servicing of accounts. Casanave declares each distributor will continue to interpret and lay out the material on all films, which A A then will manufacture and distribute. Ultimately, he adds, AA will be in a position to rent exploitation stunts and offer local printing facilities to handle heralds and ad mats. The question of disposition of personnel among the distributors who formerly sold accessories has not been definitely worked out, Casanave states, but he emphasizes every effort will be made to absorb these individuals in AA, with the distributors offering to put others in various departments. He adds AA ultimately will be manned by a nation-wide staff of 1,200 whose sole responsibility will be to create and distribute the type of advertising aids that should recapture the exploitation possibilities which, Casanave observes, have been on the wane in recent years. Poster Men Seen Girding For Fight Via Price War New York — National Poster Renters Ass’n is said to be considering a large scale price cutting arrangement to circumvent the new setup whereby Advertising Accessories, National Screen subsidiary, will manufacture and distribute advertising display material of the majors. The AA deal is seen as virtually wiping out the independent poster renting busi 7 he New Head Man — Harry Edington, former agent, then president of Famous Productions, Inc., and now the new executive producer at RKO. Prior to his agency business, he was a production executive with M-G-M. ness. Under the deal, AA is the sole authorized licensee of material to be used for reproduction in the manufacture of posters and other display aids. "In the Front Line Profit Trenches " Hollywood — Warner's "The Fighting 69th" will meet no resistance in blasting its way to its objective — the front line trenches of popularity and profit. In atmospheric and technical details the most authentic picture of the World War ever filmed, it preaches a powerful indictment of the futility and horror of international strife without compromising any of its inherent entertainment ingredients. The sweep of its battle scenes equals anything of comparable nature ever staged and combines with many moments of hearttugs to make those who see it forget the absence of romance. The cast, without an actress, is wisely selected and thoroughly splendid. Louis F. Edelman produced; William Keighley directed.— SPEAR. New York ■ — The much overworked phrase RKO is “finally out of the reorganization woods” becomes literal fact with the denial by the U. S. supreme court of two petitions of debenture holders to review the reorganization plan. Ernest W. Stim of Milwaukee, holder of 1,234 shares of Class A stock, and H. Cassel & Co., holders of $175,000 worth of securities, sought an appeal from a second circuit court of appeals decision approving the plan, which, in one form or another, has been before the courts just a few weeks short of seven years. Only a few technical steps remain for the machinery of the reorganization plan to become operative. None of these presents a serious obstacle. Unsecured creditors and Rockefeller Center have been offered 500,000 shares of new RKO common issued for the payment of reorganization expenses, allowances and court fees. These interests have until January 8 to subscribe. Any shares not taken on that date will be purchased by the Atlas Co. at $3 per share, the same price offered to the original subscribers. Few Steps Remain The actual exchange of securities and the transfer of all assets of the old organization to the new organization are among the few remaining steps to be taken. Seen as a normal procedure is the filing for registration of the new securities with SEC. Irving Trust Co., RKO trustee, is in the process of drawing an order for the transfer of all assets to the new company, which is expected to have the approval of Judge William O. Bondy by February. The applications for allowances may be in the neighborhood of $3,000,000, but observers indicate that Judge Bondy will shear this appreciably. Speculations on the fees attorneys will receive in the legal marathon are closer to $750,000. High Court Sees No Reason To Interfere With Plan Washington — Apparently seeing nothing in the RKO reorganization plan to warrant its interference, the supreme court has rejected petitions filed by Cassel & Company and Ernest W. Stirn for review of the decision rendered September 8, last, by the second circuit court of appeals in New York. In both petitions, the court was told that the plan of reorganization under Section 77-B of the bankruptcy act did not protect their interests. Harry Davis Dead Pittsburgh — Harry Davis, 78, onetime partner of the late state senator John P. Harris, died here Tuesday. BOXOFFICE : : January 6, 1940 13