Boxoffice (Jul-Sep 1940)

Set Skouras, Schenck Trials on Wednesday New York — On Wednesday, the government is expected to set a date for the trial of George P. Skouras and Joseph M. Schenck. The Schenck trial was due to get started October 3, but due to the death of Max D. Steuer, attorney for the film executive, the government may try Skouras first. Skouras is accused of having bribed former Judge Martin T. Manton and obtaining assets of Fox Theatres Corp. for Skouras Bros, by so doing. Schenck is accused of having failed to file proper income tax returns. Joseph D. Basson, president of local 306 of the lATSE, has filed a supreme court action against the People Cinema Theatre of Brownsville in Brooklyn, seeking to enforce a contract made with the ITOA in January, 1937, whereby only local 306 men were to be employed. It is asserted Empire operators have been employed by the theatre. The defendant seeks a dismissal of the action and an arbitration of the issues. It is a member of the ITOA. Files for Review George L. Schein, attorney for the Independent Protective Committee of Common Stockholders of RKO, together with Abel Gottheimer and Bernard Bercu, his accountants, has filed a petition in the federal court for a review of Judge William O. Bondy’s decision granting Schein $8,000 plus allowances of $1,325, and his accountants $2,000. Schein sought $100,000 for 3,142 hours work and now claims he lost considerable money as a result of the allowance granted him. Gottheimer and Bercu asked $30,000 for 4,238 hours work. Bondy will reconsider the allowances granted. Federal Judge Samuel Mandelbaum has denied a request of Eleanor Harris for a temporary injunction against 20th Century-Fox’s “Brigham Young.” Miss Harris, author of the original story from which the film was taken, sought appropriate screen credit, claiming it had all been given to Louis Bromfield. The court ruled her contract of employment voided anj^such claim. I%ramount Pictures, on behalf of four subsidiaries, has filed a federal court suit against the government seeking the return of $69,600 paid as capital stock taxes in 1934. Paramount claims the law under which it paid the tax is illegal and violates the ■ Fifth Amendment. Subsidiaries involved are Paramount International, $24,000; Paramount Pictures Distributing Corp., $32,000; Parager Corp., $1,600, and Paramount Productions, $12,000. Course at NYU to Assist In Utilizing War Films New York — To assist in utilizing films, which it describes in an enrollment pamphlet as “indispensable in wartime for instruction, entertainment, propaganda and maintenance of morale,” as well as “essential to national preparedness,” the School of Education of New York University is offering a course in motion pictures. Lectures are to be given by “outstanding authorities in every field of the motion picture,” including Louis de Rochemont, Arthur H. De Bra, Hal Hode, Louis Nizer, Marian Robertson, as well as stars and producers “when they will be in New York.” Stockholders Approve New Pacts lor Four New York — Columbia’s stockholders, at their annual meeting, approved modified three-year employment contracts for Harry Cohn, president, and Jack Cohn, vicepresident, and named Dr. A. H. Giannini and Nate B. Spingold to the board. They succeed Sol Bornstein and J. Kerner. Giannini continues as one of the board of trustees. Other board members, including the two Cohns, A. Schneider, Charles Schwartz and L. M. Blanche were reelected. The modified pacts include a new provision whereby payments under the sharing arrangements will be made to the two officers only if cash dividends are declared and paid to the common stockholders. In order for the Cchns to obtain the maximum amount under their sharing contracts a cash dividend disbursement of $1 per share will have to be made to the common stockholders. A threatened minority stockholder’s action to block restoration of the two executives’ salary cuts failed to come off. Fred R. Tuerk said he would seek proxies to oppose increasing the Cohns’ salaries but in a 24-hour development Jack Cohn issued a formal statement saying, “Such action as Mr. Tuerk contemplated was nullified after a meeting between him and directors of the corporation, and the letter which he prepared and which had been filed with SEC, was not sent to stockholders of the company.” The new contracts for the Cohns, before the new modifications, provided for the restoration out of profits of the 33 1/3 per cent salary cuts they took of their own volition a year ago. Harry would receive $2,500 weekly, plus 12 per cent of profits in excess of preferred dividend requirements to a maximum of $3,500 per week. Jack would receive $1,500 weekly, six per cent of profits after preferred dividends to a maximum of $2,000. Weekly expense allowances would be $300 for Harry and $200 for Jack. J. Cohn, Montague, Schneider West on Studio Conferences New York — Jack Cohn, A. Montague and A. Schneider leave Thursday by train for the coast to discuss new season’s product. Cohn and Schneider plan to spend several weeks at the studio while Montague is expected to remain for a week or 10 days. Irish American Film Corp. Formed by Two in N. Y. New York — Irish American Film Corp. has been formed by H. Threlkeld-Edwards, head of Non-Theatrical Pictures Corp., and William Alexander for the distribution of Irish-made subjects in this country and Canada. Initial release is an 11-reel, natural color, travel feature, titled “Here Is Ireland.” The second feature, a dramatic production, is said to be under way in Ireland. Academic Films Completes Second Patriotic Short New York — Academic Films has completed for release both in theatres and non-theatrical situations “Our Monroe Doctrine,” the second of a series of eight patriotic shorts. It is a two-reeler and will be followed by “Our Bill of Rights” and “Our Declaration of Independence.” The company handles its own distribution through an office here. Picture Pioneers To Meet Oct. 24 New York — The fall conference of Picture Pioneers has been set for October 24 and in all probability, will be a Circus Night. Hotel arrangements now are being made. Elected to membership at the last meeting of the executive committee were Harry K. Hecht, New Jersey exhibitor; Ralph D. Goldberg, Omaha exhibitor; Harry David, Salt Lake City exhibitor; Ira Cohn, 20th-Fox branch manager in Pittsburgh; George H. Balsdon, National Theatres film buyer; Rutgers Neilson, RKO publicity manager; Henry Holma, distributor in New York City; Otto P. Madsen, local distributor; Harry K. Black, Fabian district manager in Staten Island, and Jay Emanuel, Philadelphia. Hays Directors Resume Quarterly Meetings New York — Directors of the Hays organization will resume their quarterly meeting Tuesday, following an initial session held Wednesday at which the foreign and general industry situations were discussed. Satisfaction was voiced over progress made by the committee to aid the American Red Cross and of which Major Leslie E. Thompson is chairman. Present were Barney Balaban, Paramount; Nate J. Blumberg, Universal; Joseph H. Hazen, Warner; Frederick L. Herron, MPPDA; W. C. Michel, 20th Century-Fox; George J. Schaefer, RKO, and Nicholas M. Schenck, Loew’s. Three New Ones Go Up in "'Overseated" Columbus New York — Despite his belief Columbus, Ohio, is “overseated,” three new theatres are now going up in the town, Nat Holt, RKO division manager, stated during his brief stay here. The town, which has a population of 300,000, last year saw 9,000 theatre seats added. Holt did not know the number represented by the three new projects. In Cleveland, the only building going on is a newsreel house in the downtown section. This is backed by a Chicago group. Eastman Sells Interest in German Chemical Works New York — Eastman Kodak has sold its 50 per cent interest in the Chemische Werke Odin of Germany to German interests for approximately $360,000, it is revealed in the company’s report filed with SEC and made public at the New York Stock Exchange. However, proceeds of the sale still remain in Germany, having been tied up by exchange restrictions, the report adds. Peirce Leaves Monogram To Start Own Business Hollywood — William Peirce, publicity head for Monogram at the studios, has resigned to go into business for himself. He will be succeeded by Lou Lifton, who is due shortly from New York where the company closed its main office and transferred its activities here. William Raynor jr. has arrived from the east to handle press books at the studio. BOXOFFICE :: September 21, 1940 18-A