Boxoffice (Oct-Dec 1939)

Hammons Defends All Deals Made by GN New York — Challenged from the start by a minor creditor representative regarding the disposition of various Grand National leases and the use of the company’s studios and exchanges, Earle Hammons defended all deals made by GN during his administration during a creditors meeting Friday before Referee Peter B. Olney jr. The hectic session was concluded with Olney granting permission for an examination of GN books and records for alleged fraud. Hammons testified at the meeting the full $650,000 necessary for the company’s reorganization has been obtained. The Reconstruction Finance Corp. is providing $450,000 of this amount; Erpi, $100,000; National City Bank, $15,000; De Luxe Laboratories, $10,000, and Loyd Wright, $25,000. The RFC receives a first lien on GN property to be paid off at the rate of $1,700 weekly for the first 13 weeks, $3,400 the next 13, $5,000 the next 26, and then $8,000 until the debt is cleared. The company is now running at a $2,000 to $3,000 weekly deficit. The next creditors meeting will be held November 22, with confirmation of the reorganization plan scheduled for Dec. 4. The Re-election of UA Circuit Men Is Seen Baltimore — Stockholders of UA Theatres Circuit will meet here November 27 to reelect the directorial slate. Two days later, in New York, the board will meet to reelect Joseph M. Schenck, president, along with the rest of the executive setup. A regular quarterly dividend of $1.25 on the preferred, payable December 15, is to be declared in New York the latter part of the week. Also the annual financial report for the year ended August 31 will be made. UA circuit is interested in 250 theatres in Texas, California, metropolitan New York, Chicago, Detroit, Baltimore, Louisville, Pittsburgh, Columbus and Portland, Ore. Metropolitan Playhouses, operated by Skouras and Randforce, with a total of more than 110 theatres in Greater New York, also is accounted for in the UA circuit report. A Routine Session for Loew Board; No Dividend Action New York — Loew’s board met Friday for a routine session, the regular meeting having been postponed. No dividend action was scheduled, but a 50-cent payment on common will be the order of business on December 6. 20th-Fox Minority Suit Discontinued by Court New York — The $25,000,000 stockholder action of Millie Simm and Annie Kopple, minority stockholders of 20th CenturyFox, has been discontinued in supreme court. Action charged waste and mismanagement and sought an accounting from directors and officers. Over 600 Trade Members Attend New Lodge Bow New York — Representatives of three faiths addressed a gathering of over 600 members of the industry who were on hand for the charter presentation meeting of the Cinema Lodge of B’nai B’rith in the grand ballroom of the Hotel Edison, Thursday evening. Speakers included Rev. Dr. C. Jeffares McCombe of the St. Andrews and St. Paul M. E. Church; Rabbi William F. Rosenblum of Temple Israel; Jeremiah O’Carroll, editor of the national Catholic publication, Wisdom; Harry Goldberg, chairman of the Anti-Defamation committee; Dr. Samuel Ravinett and Harry Cohn of Rehoboth Lodge; Harry B. Epstein, president of district Grand Lodge No. 1, who presented the charter, and A. W. Schwalberg, president of Cinema Lodge. Among those who attended were Barney Balaban, Neil F. Agnew, Joseph Bernhard, Mort Blumenstock, Clayton Bond, Gene Buck, Jack Cohn, Ned Depinet, Charles Einfeld, Carl Leserman, Abe Montague, John J. O’Connor, William F. Rodgers, George Schaefer, Abe Schneider, Sam Sclineider, William Scully, Si Seadler, Gradwell Sears, Herman Starr, Maj. L. E. Thompson, Maj. Albert Warner and Jack Warner jr. Cohen Awaiting Replies From All Distributors New York — Although Max A. Cohen, head of Allied of New York, has received replies from four majors to his request for reopening of trade practice negotiations, he declares there cannot be any crystallized reaction until all distributors have been heard from. Asked if the correspondence he has received up to date was encouraging, Cohen replied: “I think something can be worked out.” He said Columbia, Paramount, M-G-M and UA have made known their attitude toward his plan, but declined to reveal the nature of their replies. He says the fact that Ned E. Depinet of RKO; Grad Sears of Warner, and Sidney Kent of 20th Century-Fox have been out of town is responsible for the delay in hearing from these companies. Goetz and Gordon Seek Story for Their Next Hollywood — With “The American Way” temporarily delayed, Harry Goetz and Max Gordon now are looking for a story as their second for RKO. Both producers returned from Boston, where their latest play, “Very Warm for May,” debuted, for a sneak preview of “Abe Lincoln in Illinois.” Gordon left for the east by air after the screening while Goetz is remaining for Tie ;anal touches. Uphold Award to Harts New York — The appellate division of the supreme court Friday upheld the 3-2 verdict by a jury on Nov. 4, 1938, awarding William S. and Mary Hart $278,209 against United Artists Corp. for block booking Hart’s picture, “Tumbleweeds,” with “Wild Justice.” Economy on Coast Seen Tightened New York — Economy wheels in Hollywood will start moving at greater speed when word is flashed the British government will restrict American companies to a revenue of approximately $20,000,000 for the present fiscal year. The figure represents a considerable slice in earnings of the companies. Although aU figures are unofficial, it is understood the restrictions roughly equal about 60 per cent of the revenue withdrawn last year or 40 per cent of the total gross earnings. Calculations are from sources which reveal total business by the majors in England was in the neighborhood of $50,000,000 and the revenue remitted to America after all distribution charges about $37,000,000. Following weeks of negotiations, in which Ambassador Joseph P. Kennedy took an active part, the result was no surprise to distributors who had steeled themselves to an embargo on currency as soon as England plunged into war. It was obvious from the start England could no longer obtain loans from this country as she did in the last war in order to purchase foodstuffs and ammunitions. It was also made clear the British government would have to maintain its sterling exchange as long as war continued. Complete terms of the negotiations were not available as Boxoffice went to press, but it is learned the British government has no intention of relinquishing the quota. American distributors, it is pointed out, have no objection to continuing quota production with frozen assets if it can be assured there is enough available personnel so pictures can be made for worldAvlde distribution. Asher-Cohn Production Talks Are Resumed Hollywood — Irving Asher, who was in New York for a few days conferring with Jack Cohn, has returned and is continuing his talks with Harry Cohn over future status of his berth as head of Columbia’s British production. Much depends on whether the American companies will continue to produce in England in accordance with the quota law. Another problem to be handled is the matter of salary since taxes in England consume approximately 65 per cent of an individual’s income while the country is on a war-time basis. It is, however, a certainty Asher will stay with Columbia in some capacity although several other major companies are bidding for his services as a result of “Clouds Over Europe” and “U-Boat 29.” BOXOFFICE Travelers New York — Ben Shlyen, publisher of Boxoffice, is here from Kansas City on a periodical visit. He plans to remain several weeks. Hollywood — Red Kann, editor-in-chief of Boxoffice, is here to spend the next few weeks checking up on friends and acquaintances. 24 BOXOFFICE ;; November 18, 1939