The Exhibitor (Nov 1939-May 1940)

9 RKO Creditors Seek Supreme Court Review Claim Approved Plan Bars Rights Washington — The United States Supreme Court was asked last week by the creditors of RKO to review a decree of the District Court for the Southern District of New York approving the reorganization plan of the company as put forth by Atlas Corporation. Petitioning were Hugh Cassel, Karl Nathan, Juston Condon, Ignatius Wahl, Jack Heller, co-partners under the name of H. Cassel and Company. They claim to be creditors to the amount of $300,000. The petitioners contend the approved plan deprives the debenture holders of their property rights without just compensation. Under section 77B of the Bankruptcy Act, the plan of reorganization must be determined by the court to be fair and equitable and not to discriminate unfairly in favor of any class of creditors and stockholders, petitioners state. They contend they are not to receive equivalent compensation and that therefore the plan is injurious to their interests. Joyce Aids FR Film Fall River, Massachusetts — Chris Joyce, manager, Durfee, announced recently that he is producing a sound motion picture depicting Fall River’s industrial advancement of the past few years and emphasizing its natural and architectural beauty. Film will secure excellent advertising and publicity for Fall River in connection with inducing other industrial plants to locate here. Textile industry has been selected as the first subject in the series. The Fall River Civic Movie Committee has been organized to sponsor the production, with manager Frank W. Dunham, Chamber of Commerce, as chairman. Project is being financed by the Interstate Durfee, which will display the films. Garment industry will be second in the series. K-A-O Nets $887,486 New York City — The 52-week report for Keith-Albee-Orpheum Corporation ended September 30, 1939, amounted to $887,486 net profit, according to a report last week. B. F. Keith Corporation reported net profit of $540,301.32 for the same period. Noveviber 15, 1939 Plenty of Headaches as Neutrality Act Operates Prints Are Tied Up, Costs Rise New York City— Plenty of headaches for the foreign departments of the various companies arose last week following signing of the Neutrality Act. Prints of some pictures were tied up on the SS. President Roosevelt, that failed to clear port. Shipping rates went up from 331/3% to as high as 50%. Cost of sending by air is very high, prohibitive in some cases. Foreign departments have been reaching markets through other countries, with a great deal of trouble. In short, there are a lot of problems. "Angels” Appeal Denied Washington — The question whether “Hell’s Angels,” the moving picture produced by Howard Hughes, had its origin in. stories by Richard Barry or in a conversation in a Havana bar room will not be reviewed by the Supreme Court, it developed last week. Barry, author and former war correspondent, sued Hughes, the Caddo Company, Inc., United Artists Corporation and United Artists Theatre Circuit, Inc., for plagiarism. The district court and the Second Circuit Court of Appeals ruled against him, so he approached the Supreme Court which denied the review. Coast Crafts Won’t Cut HOLLYWOOD — It became evident last week that the Coast unions were not considering the idea of cutting their wages very seriously. Business agents and I A representatives of 16 unions met and declared themselves opposed to relinquishing the 10 per cent wage increase recently given the IATSE. It was hinted that the 10 per cent increase would be asked for some crafts not getting the raise at that time. A call for a conference of unions, studio heads and Guild folk was made, with the union’s William Bioff indicating that before the unions would take a slash, it would make certain that others would, too. Bioff pointed out that 246 contract employees at one studio earned $7,800,000 in one year, and of this 46 received $7,000,000. THE EXHIBITOR Dramatists Guild Okays Financial Aid Endorses Hollywood Support for Plays New York City — Plan designed to allow a lesumption of Hollywood financing of Broadway plays, representing nearly three years of negotiations between the playwrights and motion-picture concerns, was unanimously adopted last week by members of the Dramatists Guild at their annual meeting at the Hotel Lincoln. The League of New York Theatres, the organization of Broadway producers, met later to consider the plan. League’s approval is necessary before the plan could be put into actual operation. As against the existing method of paying an outright amount for the screen rights to a play, the new plan calls for the payment of specified percentages of the play’s weekly grosses for the rights. The schedule of percentages is divided into three groups, depending on whether a play’s operating budget is $7,500 or less a week; more than $7,500 and less than $15,000, and more than $15,000. The film concern backing a show would also have to make an additional payment for the rights, amounting to $15,000 if the play runs three weeks. Elaborate machinery has been devised to guard against premature closing of a play to reduce the cost of the rights and to determine a play’s actual operating cost. It was reported that at least some of the film concerns wanted an optional arrangement under which they would have two weeks after a play’s opening to decide whether they wanted to proceed under the plan. At the meeting Robert Sherwood, president, reported that the Guild's financial condition was “acute” and asked for contributions to meet the organization’s back debt, reportedly in excess of $20,000. The Guild’s council has recommended a two percent levy on receipts from a member's sale of screen rights to his play. Elmer Rice was elected president to succeed Sherwood. He will serve for two years. Canada Modifies Regulations Toronto — Foreign Securities Control Board of Canada last week modified it s ruling regarding money, announcing that foreign currency bank accounts will again be allowed. This is a break for American and British companies with branch offices in Canada, who will be allowed to operate with as little check as possible, provided that each company makes itself responsible to account to the Foreign Exchange Board for moneys passing through those channels. Samuel Goldwyn Honored Hollywood — Samuel Goldwyn was last week awarded the 1939 citizenship medal by the Hollywood American Legion post in recognition of his outstanding American citizenship and kindness to former service men.