The Exhibitor (Nov 1939-May 1940)

10 More Exhibitor Names ( Continued from preceding page ) ceeding with its suit without sufficient evidence to back it up. The Department of Justice admitted that the information received from the 23 independent producers had merely dealt in generalities, and that there were no specific instances of what independent pictures had been discriminated against in distribution. Federal Judge Henry W. Goddard, hearing the application for fuller answers to the defendants’ consolidated interrogatories, suggested that the Department of Justice make an effort to answer them more completely; and Williams, in response, said that he would consult his files and have additional answers ready later. Warners’ trial attorney Judge Joseph M. Proskauer stated that the information at hand was insufficient to indicate to the defendants what charges they would have to meet. Judge Goddard stressed the necessity of shortening the trial, and asked the attorneys to eliminate all issues which were not controversial. Attorneys for the defendants announced that they would submit to the government counter proposals to be stipulated before the trial. The court then said that subsequent discussions will be held on this subject. A preliminary application of Columbia to compel the government to answer the 10 interrogatories was heard by Judge Goddard, and it was suggested that Columbia’s attorneys confer with the Department of Justice in an effort to settle them amicably. Conflicting statements made by Special Assistant Attorney General Paul Williams and Paramount attorney Judge Thomas D. Thacher seem to have dimmed hopes of settlement in the government’s equity suit. The disagreement centered about the ultimate aims in the suit. Williams stated that “we believe that the integration of production, distribution and exhibition by the five large producer-exhibitor companies has directly brought about a violation of the Sherman act.” Williams further claimed that this situation has resulted in the forming of two unequal classes, the affiliates and the independents. “We will strike out against the fundamental conditions of the trade,” he said. “There is a failure of open competition for both buyers and sellers. We are not concerned with isolated cases but with the fundamental situation.” Judge Thacher, in rebuttal, stated that “we claim that this discrimination charged by the government is lawful and necessary, although it may be termed monopoly by the government. After presentation of cur evidence on trial, we expect to convince the court of its lawfulness.” Raymond Moves Up New York City — Charles Raymond, for many years managing foreign theatres for Loew’s, was last week appointed district manager with headquarters in Cleveland. Selznick in East New York City— David O. Selznick arrived here from Hollywood April 5. THE EXHIBITOR Sears Setting Plans NEW YORK CITY— “Plans for what well may be the most unique sales convention in the history of the motion-picture industry, will he the subject of discussion with Burbank executives and ready for announcement in complete detail upon my return,” stated Gradwell L. Sears, Warner Brothers general sales manager, before entraining last week for the Warner Brothers Burbank studios for a full discussion of plans with H. M. Warner, Jack L. Warner, Hal B. Wallis and Charles Einfeld. Accompanying Sears was S. Schneider, home office executive. Another phase of company activities to be huddled over by the Warner executives will be the merchandising plans for the Spring and Summer product, which includes the most important releases in the company’s 1939-40 release schedule. GTEC Net Up New York City — A net profit for 1939 of $696,062, after $51,665 reserve against investments in and advance to subsidiaries not consolidated, was reported last week by General Theatres Equipment Corporation and subsidiaries, excluding Cinema Building Corporation, J. M. Wall Machine Company, Inc., and Zephyr Shaver Corporation. The $696,062 profit is equal to $1.17 each on 592,887 no par capital shares, against $507,267, or 85 cents each on 597,887 shares in 1938. The net loss of subsidiaries not consolidated was $169,062, while net sales for 1939 were $8,401,601 against $8,326,246 in 1938. Eastman Net Rises New York City — Reporting a consolidated net profit of $21,537,577 for 1939 after all deductions, equal to $8.55 a share on 2,476,013 no par common shares, the Eastman Kodak Company last week forwarded to stockholders a proxy statement for the annual meeting at Jersey City April 30 which will modernize and broaden the present certificate of incorporation. Among other things, the changes will give recognition to the rapidly expanding business in the cellulose, yarn, plastics and chemical field. Net profit in 1938 was $17,339,408, or $7.54 a share. Chaplin Given Credit Washington — Bureau of Internal Revenue announced last week that a credit of $22,989 was given to the Charles Chaplin Film Corporation of Los Angeles on account of over assessment of income and surtax on undistributed profits in the year 1937. Darryl F. Zanuck of the 20th CenturyFox Film Corporation and his wife, Virginia, asked the Board of Tax Appeals for a redetermination of deficiencies totaling $730,575 against their 1935 income. Each claimed an overpayment of $931 in taxes for that year. RKO 1940-1941 Plans ( Continued from preceding page) production on the home lot. He still has two pictures to deliver to Universal under a contract made by himself, as Famous Productions, and the Nate Blumberg organization. One of the films he will deliver is “La Chiens,” a Cary Grant starrer. Among the producers under contract to RKO who are scheduled to deliver product this year or/and next are Lee Garmes, Harold Lloyd, George Haight, Leo McCarey, Gregory LaCava, David Hempstead, Towns and Baker, Orson Welles, Dave Butler, George Abbott, Erich Pommer, and Bob Sisk. Welles, having temporarily shelved his first two planned productions, will get to work on the third one, feeling that its timeliness gives it more value. Its title and theme are, as yet, unknown. “Welles,” stated Edington, “is a smart boy, despite all talk to the contrary started by his ‘stalling.’ And he is going to come through in great style.” George Abbott, one of Broadway’s most successful legit producers, is coming to the Coast to direct the film version of “Too Many Girls.” One of the purposes of Edington’s eastern visit is to talk over with Abbott the feasibility of bringing the entire “Girls” cast to the Coast for the picture. The only Technicolor production scheduled up to now is David Butler’s “Photo Finish,” a race track yam. While mentioning the rise to stardom of Lucille Ball and Ann Shirley, Edington deplored the lack of available outstanding male talent in Hollywood. The boy RKO will push, however, will be young Tim Holt who scored heavily in “Fifth Avenue Girl.” Edington claims he will keep his Famous Productions in operation. Other than the press, those who attended the press conference and cocktail party were the following representatives of RKO and RKO theatres: John J. Connor, theatre chief; Malcolm Kingsburg, circuit vice-president; Max Fellerman; Nat Holt; Fred Meyers; Bill Howard; Leon Goldberg; Major L. E. Thompson; Sol Schwartz; circuit publicity chief Harry Mandel; Johnny Farmer; Rutgers Neilson; President George J. Schaefer; W. J. Merrill. Richard C. Patterson, chairman of RKO board of directors; play date department’s M'. G. Poller; William J. McShea; Harry Gittleson; Irving Shiffrin, James Boyle, vice-president Ned Depinet; foreign chief Phil Reisman; publicity-advertising head S. Barret McCormick; William E. Clark; Cresson E. Smith; Harold Hendee; Henry Holms; talent scout Arthur Willi; sales promoter Leon Bamberger; exhibitor relations’ Henderson M. Richey; Joe Heppner; Terry Turner; CBS’ Norman Corwin; Jack Level; Jack Lewis; Gunther Lessing; and Erich Pommer. Pathe Reports Profit New York City — Annual financial report of Pathe Film Corporation, released last week, is as follows: For 1939: Net profit, $424,489, equal to 64 cents on 581,270 shares of common stock, after dividend payments on the outstanding seven percent preferred stock, compared with $77,158, or four cents a share, in 1938. April 10, 1940