The Exhibitor (Nov 1939-May 1940)

7 LATE NEWS HIGHLIGHTS RKO Officially Emerges From Receivership State Transfer Ends Bankruptcy Of Company New York City — Irving Trust Company, trustee in bankruptcy for the RadioKeith-Orpheum Corporation for seven years, formally transferred last week end the assets in its possession to the new company of the same name, formed in accordance with the plans of reorganization. Transfer was accomplished under an order of Federal Judge William Bondy, who had supervised the reorganization. In the board room of the trust company were H. C. Ottiwell, Chemical Bank and Trust Company and Daniel James, Wright, Gordon, Zachry and Parlin, attorneys for that institution; A. Christensen and Garrett Van Wagner, Irving Trust and O. C. Doering, Jr., and Ambrose L. Cram, Jr., representing William J. Donovan, solicitor for the trustee. Also present were W. J. Merrill, William Mallard, William H. Clark, O. R. McMahon, J. Miller Walker and G. E. Youngman, RKO ; Richard Jones, 3rd, for Simpson ; Thacher and Bartlett, attorneys for RKO ; J. P. Harrigan, Central Hanover Bank and Trust Company, and Stephen Millett, Larkin, Rathbone and Perry, attorneys for that bank ; Harold Hunkele, City Bank Farmers Trust Company and R. W. Hurry, Delafield, Marsh, Porter and Hope, attorneys for that trust company. Doering declared the various deliveries to follow were to be deemed to be made simultaneously, as of the opening of business on January 1, 1940. Christensen delivered Mr. Merrill a bill of sale, securities and cash balances covering properties held by the trustee, and received receipts and releases from the new RKO company. Similar changes between the other trust companies and the amusement company completed the series of transactions. The new company, of which George J. Schaefer is president, has no outstanding indebtedness, its capital structure consisting solely of preferred and common stock. Working capital of the company and subsidiaries is extensive, with its $8,000,000 cash in bank alone twice the amount of current liabilities. It begins its life with a substantial surplus. In the seven years of administration by the trustee the fixed debt of the company and subsidiaries has been reduced by more than $11,000,000, exclusive of the further reduction effected by the plan of reorganization, it was announced. Gross income has risen from $44,000,000 in 1933 to about $52,000,000 in 1939, the trustee said. Colonel Cole in New Haven New Haven — Colonel H. A. Cole, Allied president, was scheduled to have been the guest of honor at the Allied luncheon meeting here yesterday (January 30). Nate Yamins was also scheduled to have been present. Other Allied chieftains were scheduled to have been present at the session, also, including Frank Lydon, Arthur Howard and others. Unions Upheld in Labor-Saving Argument Musicians, IATSE Victors Following Reversal New York City — The right of organized labor to seek by lawful and orderly means to block the introduction of laborsaving devices as a means of conserving employment opportunities was upheld last week end by the Appellate Division of the Supreme Court in a three-to-two decision. Decision, written by Justice Joseph M. Callahan, with Justices Alfred H. Townley and Edward S. Dore concurring, reversed an order of Supreme Court Justice Kenneth P. O’Brien. Justice O’Brien had granted a permanent injunction to Opera On Tour, Inc., restraining Joseph N. Weber, president, American Federation of Musicians, and George E. Browne, president, IATSE, from directing stage hands or other employes to refuse to work for the plaintiff because of its use of mechanically reproduced music in lieu of an orchestra and chorus. In his decision, Justice Callahan pointed out that the labor unions had deliberated carefully on the effect that the used of ‘‘canned” music in the theatre and motion picture houses would have on unemployment among the musicians and determined to oppose the use of mechanical music in all places where orchestras might be hired. The two unions made a compact on the question. “The defendants, in order to secure what they believed to be their economic betterment, are endeavoring to prevent the use of a mechanical contrivance which is in the nature of a laborsaving device,” the court said. "Such conduct on defendants’ part is justified as a legitimate endeavor of labor, even though it results in some injury to plaintiff.” “It is contended by plaintiff that the objection to the use of machinery is an attempt to arrest progress,” he said. “While many may deem this to be true, there are those who question the fact that we ‘progress’ where we use machinery to such an extend that we destroy the opportuntiy for men to live by employment and thus create vast numbers of permanently unemployed. “In any event, we see no reason why it is not a legitimate object of workingmen to attempt by lawful means to limit such alleged ‘progress’ when it results in direct injury to them.” Presiding Justice Francis Martin, in dissenting, said the union’s contention would make it necessary to halt all progress resulting from inventions “if it interferes with the employment of some individuals, even though it may afford employment and pleasure to thousands of other people.” Rifkin Buy Set SPRINGFIELD, MASSACHUSETTS —Herman Rifkin last week-end confirmed fact of negotiations for the purchase of local Winchester Amusement Chain. Attorney Abraham H. Slavin is working on legal details. “Fighting 69th” Tops Among Broadway Grosses "Grapes,” "Shop” Also in Better Money New York City — “The Fighting 69th,” at Warners’ Strand, provided headline business over the week end, the report shows. Reports on business on Broadway, as compiled by The Exhibitor from usually authentic sources, follow: “THE BLUE BIRD" (20th Century-Fox) -At the Hollywood (road show), opened January 19, did $13,000 on the first week, and is estimated to do $9,000 on the second week ; fair. “BROTHER RAT AND A BABY” (Warners) --At the Roxy, opened January 26, with stage show, did $20,000 on Friday, Saturday, Sunday. “THE FIGHTING 69TH” (Warners)— At the Strand, opened January 26, with Paul Whiteman and His All-American Rhythm Rodeo, did $31,339 on Friday, Saturday, Sunday ; excellent. “GONE WITH THE WIND” (Metro)— At the Astor (road-show), opened December 3 9, is estimated to have done $21,000 on the fifth week ; very good. “GONE WITH THE WIND” (Metro)— At the Capitol (“continuous”), opened December 19, is estimated to have done $75,000 on the fifth week ; very good. “THE GRAPES OF WRATH” (20th CenturyFox) — At the Rivoli, opened January 24, is estimated to have done $61,000 on the week ; excellent. “INSPECTOR HORNLEIGH ON HOLIDAY” (20th Century-Fox) and “STRAIGHT SHOOTER” (Victory) — At the Central, opened January 25, did $1,200 on Saturday, Sunday ; fair. “THE INVISIBLE MAN RETURNS” (Universal)-— At the Rialto, opened January 15, is reported as having done $22,000 on the two weeks ; good. “INVISIBLE STRIPES” (Warners)— At the Strand, opened January 12, with Shep Fields and Orchestra and the “Dead End” Kids headlining the stage show, did $31,500 on the second and final weeks ; good. “JUDGE HARDY AND SON” (Metro)— At Loew’s Criterion, opened January 17, is estimated to have done $11,500 on the second week; good. “THE LION HAS WINGS” (United Artists) — At the Globe, opened January 20, did $2,500 on Saturday, Sunday of the second week ; good. “REMEMBER THE NIGHT” (Paramount) At the Paramount, opened January 17, with Bob Chester and His Orchestra and stage show, did $18,000 on Saturday, Sunday of the second week ; good. “THE SHOP AROUND THE CORNER” (Metro) — At the Radio City Music Hall, opened January 25, with the stage show, “Cosmopolitan,” did $52,000 on Thursday, Friday, Saturday, Sunday ; good. Philly Salesmen Organize Philadelphia — An organization of salesmen was formed at a meeting attended by 42 localites, with 12 others signifying their intention of going along but being unable to be present. Temporary officers were selected as follows: President, William Karrer; vice-president, Ely Epstein; treasurer, Bill Humphries; secretary, William Bethell. Board of directors: Sam Lefko, Jack Engel, Jerry Lewis, Jack McFadden, Bill Doyle, Joe Leon, Mort Magill. Another meeting is set for February 3 at which final details, etc., will be taken care of. Whitehead Sues for $100,000 New York City — Ralph Whitehead last week end brought a $100,000 action for libel against Kenneth Thomson, secretary of the Screen Actors Guild. Suit alleges that Thomson and his associates libelously called Whitehead “dishonest and unworthy of a position of trust.” January 31, 1940 THE EXHIBITOR QUAD.