The Exhibitor (Nov 1939-May 1940)

8 THE EXHIBITOR RKO Meets May 27 NEW YORK CITY— RKO will hold its annual convention May 27-30 at the Waldorf-Astoria, it was announced last week, with division, district and branch heads as well as home office chiefs in attendance. Republic Bookings in 12,132 Situations, Report Consolidated Stockholders Told Condition New York City — Republic played its pictures in 12,132 situations in 1939, stockholders of Consolidated Film Industries were informed last week by M. J. Siegel, president and chairman of the board of Republic Productions, Inc., at their annual meeting. Domestic revenue in 1939 was $6,169,057 with $1,793,277 from foreign sorces, a seven percent increase over the year before. Production costs at the studios, Siegel stated, were brought down from 32% percent in 1938 to 29 7/10 percent in 1939. Republic’s revenue from the British Isles showed a gain in 1939 over 1938. James R. Grainger and the productivity of sales policies set up by him are seen largely accountable for the increased number of outlets Republic attractions played in 1939, which totaled 12,132 U. S. theatres, compared with 10,856 in 1938. Herbert J. Yates, CFI president, told the stockholders that he expects Republic to show a profit this year. Yates declared that the stock investment of CFI in Republic amounted to $900,000, and that 48 percent of Republic’s stock is owned by CFI. The $900,000 is represented by 150,000 shares at $5, and 75,000 at $2. The 52 percent remaining interest in Republic is owned principally by Cajo Company, Inc., Setay Corporation, and Nat Levine. A loan by CFI to Republic, amounting to some $3,250,000, is less than a year old. Republic’s pointing in 1939 represented about 18 percent of CFI volume. CFI stockholders re-elected Herbert J. Yates, Ralph I. Poucher, W. W. Vincent and W. P. Stevens to serve as directors for a period of three years. Poucher, vice-president, elaborated on the company’s annual report for the year ended December 31, which showed a $628,297.11 net, after charges, as against $616,696.94 for 1938. Total sales, he asserted, amounted to $6,183,305 in 1939 as against $5,921,489, including various sources of revenue, of which Magnacolor provided some $14,541 as compared to $26,571 in 1938. Poucher also outlined improvements in both the Fort Lee and Hollywood plants. Annual report for the year 1939 shows total current and working assets of CFI amounting to $5,973,224.77; properties and plants, $3,892,577.54, after deducting reserves for depreciation in the amount of $1,595,206.23. Waldo Suit Motions Heard Portland, Maine — Motions brought by three of the defendants in the Waldo Theatre Corporation’s $250,000 anti-trust suit against several producers, distributors and exhibitors were heard by Judge John A. Peters in United States District Court last week. Decision was reserved. Motions, brought by Loew’s, 20th Century-Fox Film and RKO asked that the claims that they have violated the Clayton Anti-Trust Act be stricken from the plaintiff’s bill of complaint. The action, which also seeks preliminary and final injunctions to restrain the motion picture interests from continuing an alleged “combination and conspiracy” and from refusing to enter into contracts with the plaintiff for the delivery of their films “until after their exhibition at Rockland” is based on both the Sherman and Clayton Acts. The plaintiff, independent operator of the Waldo, Waldoboro, since December 10, 1936, declares that the Park, Strand, Rockland, are operated by the Rockland Amusement Company, capital stock of which is controlled by Joseph Dondis, manager, and by New England Theatres, Inc. Gilbert Fleischman Passes Philadelphia — The trade this week mourned the passing of one of its most beloved members, Gilbert Fleischman, for more than two decades in the business, and for many years booker at 20th Century-Fox. He died March 30 at the age of 43 after several weeks’ illness. He was a member of Emile Zola Lodge, Brith Sholem, and of Clare Post 37, American Legion, and a former director of Beth-An Israel Congregation. He is survived by his wife, Sarah, and a daughter, Ilene. Funeral services were held April 1, followed by burial in Mount Sharon Cemetery, Springfield, Delaware county. Loew Suit Answers April 1 5 Boston — United States District Court last week granted permission for time for the answers to interrogatories in the E. M. Loew anti-trust suits to be extended to April 15. THE EXHIBITOR Volume 23, Number 21 April 3, 1940 Advance Shots on Coming Reviews 18 Better Management 14, 15 Editorial Page 3 Hints on Newspaper Advertising 16, 20 In the Spotlight 6 Late News Highlights 7, 8 National Mirror 9, 10, 11 National Release Date Guide Inside Back Cover News of the Territory 21, et seq. Brief Glances at Production Happenings 18 Servisection (Reviews) SS-l-SS-10 Territorial Highlights 5 Warren Stokes Hollywood Newsreel 19 Material contained in the Late News Highlights section often represents new developments in stories to be found on other pages of this issue. If the reader will bear this in mind it will avoid possible confusion. This section of THE EXHIBITOR goes to press last, with latest developments within the industry, where available. Mass. "Bank Night” Test LOWELL. MASSACHUSETTS— First step in establishing in a Massachusetts Superior Court of Middlesex county a test case on “Bank Night” was taken last week end by the Tower, when Michael J. Hurney was fined $50 in District Court on a charge of being concerned with the setting up and managing of a lottery. Case was appealed to the superior court, Cambridge, where the test will be made, leading up to the final test before the Supreme Court. Hurney, it was announced at the trial in the Lowell district court, was allowed to operate “Bank Night” after the district attorney’s order had been given, so that a test could be made. Assistant District Attorney John Corbett Donohoe was the prosecuting attorney. Loew’s Answers Filed New York City — Loew’s, Inc., last week filed its answers to government equity suit interrogatories in Federal Court, revealing details of its financial condition. Loew’s states that it has a fixed indebtedness of $16,081,000 and no current outstanding loans. The indebtedness consists of $3,750,000 in two and three-quarter percent notes maturing in 1944 and payable at the rate of $375,000 semi-annually beginning February 1, 1940. In addition, the answers state there is outstanding $12, 331.000 in three and one-half percent sinking fund debentures, maturing in 1946, for the purchase or redemption of which semi-annual payments of $375,000 are being made into a sinking fund. There are 4,000,000 shares of common stock authorized, with 1,665,713 outstanding and also an authorized issuance of 300.000 shares of $6.50 cumulative preferred stock with 136,722 shares outstanding. "Ecstasy” in Balto. Tiff Baltimore — “Ecstasy,” recently freed of a three-year ban in this city, hit another snag last week when one of the members of the Board of Motion Picture Censors refused to put the seal of approval on the film unless more deletions are made. Latest objector to the film was Miss Marie Presstman, a member of the board, who refused to certify the film in spite of a recent order of Judge Dowland K. Adams vacating the ban imposed three years ago by Judge Joseph N. Ulman because a theatre owner advertised parts ordered cut out. Owners of the film appealed to Judge Adams and the Judge viewed the parts asked to be cut out by Miss Presstman. Although finding no objections, Judge Adams requested that Judge Ulman again view the picture and pass judgment on it. U Execs on Coast Universal City, California — Universal’s general sales manager, William A. Scully, and western sales manager, William J. Heineman, arrived at the Universal studios this week to conduct a series of preconvention product conferences for the new year. April 3, 1940