The Film Daily (1938)

Monday, November 7, 1938 OISTRIBS. AND ALLIED IN ORAL AGREEMENT (Continued from Page 1) the proper written form," and the expectation was added "that such further discussions necessary for final completion of details will be completed in the early future." The statement by Rodgers reaffirmed that "details must of necessity be withheld at this time pending the final shaping up of the written document," and continued to emphasize that "in the meantime it must be publicly expressed that all meetings have been conducted pleasantly with a full appreciation on each side of the other's problems." Rodgers, who with Grad Sears, also a member of the distribs' committee, returned to New York Saturday, said that the committee will resume conferences early this week with representatives of MPTOA and the seven unaffiliated units to finally dispose of the issues already discussed and to consider those principles on which agreements have thus far been reached. "It is anticipated," said Rodgers, "that final negotiations with all interests will be definitely completed at an early date." Kuykendall Arrives Today Ed Kuykendall, MPTOA prexy, arrives in New York today to set the definite date for the reconvening of his negotiating group. Originally, the plan called for a resumption of the discussions today, but a switch in arrangements was effected on Friday. Col. H. A. Cole of Texas, chairman of the Allied conferees, in a statement to The Film Daily Friday night said that his committee had received from the Rodgers' group the "maximum concessions5 they can yield." The Chicago meeting, he continued, was "adjourned to enable a drafting committee to reduce to writing all matters discussed, including details of industry machinery which is proposed for consideration." See Arbitration Machinery The latter was interpreted to mean a definite system of conciliation-arbitration. Start of this week's conferences, of paramount importance to the industry, will find all but two members of the distribs.' committee in New York; Nicholas M. Schenck and Leo Spitz are on the Coast, but they might come East were their presence deemed necessary, it was said Saturday. A. Montague, who participated in the Chi. conferences, returns to New York this morning. Record Gets "The Gang" Fred McConnell, of Record Pictures, announces the closing of a deal with Melvin Hirsh and Bert Kulick of Syndicate Exchange for the distribution of the Herbert Wilcox musical comedy, "The Gang," for the New York territory. Salary Angle Looms in Gov't Equity Suit Washington Bureau of THE FILM {DAILY Washington — The Department of Justice will not amend the complaint in the Government's New York equity suit to blast industry salaries — exec, and star— despite the ammunition provided in a memorandum reported submitted by the ITO of Ohio, it was learned over the week-end. This does not necessarily mean, however, that the Government, when the case finally goes to trial, will not attempt to introduce the salary angle to bolster its attack upon alleged "arbitrary, unconscionable and discriminatory film rentals." The Ohio ITO memorandum is said to charge that "fantastic" salaries tilt film rentals 25 per cent. Hearing on motions for bill of particulars in the equity action is scheduled in New York next Thursday. URGES EXHIBS. SPEND MORE IN NEWSPAPERS (Continued from Page 1) ner Bros., arrived in New York yesterday from the Coast for a home office stay of several weeks. Einfeld suggested that exhibitors put 75 per cent, at least, of their new ad budgets into newspapers. Warner exec, expressed the conviction that outlets are today apparently allocating funds in too large a measure to a variety of promotional channels, none of which is comparable to newspaper advertising as an efficient box-office builder. Defending the Motion Pictures' Greatest Year campaign from what he called "professional criticism," Einfeld asserted that the drive to date has had numerous beneficial results. While at the home office, Einfeld will consult with company execs, on new campaigns for forthcoming product, including the impending releases, "Angels With Dirty Faces" and "Brother Rat," and the approaching attractions, "Juarez" and "Dodge City." Mort Blumenstock, WB's eastern publicity-ad director, who was among the h.o. delegation that met Einfeld at the train, declared that "Angels With Dirty Faces" will be premiered at the Strand following the run of "Brother Rat." Former already has 349 dates for Thanksgiving, Blumenstock revealed. Mrs. Einfeld accompanied her husband on the current trip here. PARA. REPORTS 9-MO. NET OF $1,876,469 (Continued from Page 1) ing $1,660,000 share of undistributed earnings of partially owned nonconsolidated subsidiaries and $245,000 profit on purchase of debentures of Paramount Pictures Inc. Consolidated earnings for the third quarter ended Oct. 2, 1937, were $1,958,000, while Paramount's share of undistributed earnings of partially owned subsidiaries aggregated $440,000, a combined total of $2,398,000. For the 9 months ended Oct. 1, 1937, the consolidated earnings were $5,276,000, and Paramount's share of undistributed earnings of partially owned subsidiaries aggregated $1,420,000, a combined total of $6,696,000. Earnings for the respective periods in 1937 were likewise computed after interest and all charges. $276,965 HART BALM VERDICT FACES FIGHT Freeman Huddles at Coast With Execs, on New Berth (Continued from Page 1) that greater stress will be placed upon the exhibitor's angle in future pix. Freeman arrived here over the week-end from Chicago by plane and is conferring with Barney Balaban, Stanton Griffis, William Le Baron, Adolph Zukor and Russell Holman. Balaban, Griffis and Holman are scheduled to leave for New York tomorrow. Freeman is understood to have said that his new assignment came much as a surprise. RCA Reports a Quarter Net Profit of $1,616,449 RCA quarterly statement, released at the week-end, shows a net profit for the three months ended Sept. 30 of $1,616,449.28 as compared with a 1937 figure of $1,951,726.20. For the nine months ended Sept. 30, the company reports a net of $4,141,205.78 as against $6,599,111.84 in 1937. After deduction of $805,592.25 for preferred dividend requirements, earnings for the quarter were equal to .058 on outstanding common as compared with .083 last year. Preferred dividend requirements for the nine months are $2,417,276.80; earnings per share on the outstanding common accordingly are .124 as against .301 in 1937. Gross income from all sources for the nine months of 1938 was $70, 878,614.73 as against $83,447,424.10 in 1937. Bernstein and Maj. Warner Will Head Charities Drive (Continued from Page 1) and Brooklyn Federation of Jewish Charities, it was announced at Friday's luncheon meeting at the Hotel Astor. Division last year raised $180,000 for the maintenance of the 116 health and welfare agencies affiliated with the two Federations and serving both Jews and non-Jews. Bernstein and Warner predicted this sum would be exceeded this year. (Continued from Page 1) liam Hart Co., against UA in the1 sum of $276,965.06. Balm reprf ^lts the aggregate of $190,484, togtrfher with interest from April 11, 1931. House, Grossman, Vorhaus and Hemley are counsels for the plaintiffs. Suit was originally filed for $500,000 claiming breach of contract by which UA agreed to distribute the! Harts' production, "Tumbleweeds," produced by the plantiffs in 1925. The Harts claimed UA block-booked it with an alleged inferior picture, "Wild Justice," charging higher prices for the latter than for the Harts' attraction. Justice Bernard L. Shientag, who presided at the current trial, denied the motion of UA's counsels to set aside the verdict and stated in his denial that the verdict was amply supported by evidence, and, further, that the evidence deduced was a mathematical certainty and clearly proved that "the contract was violated and the plaintiff had been shabbily and improperly treated" and that "a schoolboy would understand what happened here." UA, determined upon appeal, got a 60-day stay from Justice Shientag. This will mark the second time that the case has gone to a higher court, such a tribunal having reversed the former decision of the lower court in favor of the Harts. UDT to Play Girl Band In Three Second Runs Detroit — United Detroit Theaters are booking Jules Klein's Music Mystery Maids, 16-piece girl band, for the Broadway-Capitol, Fisher, and Riviera theaters, for a week each, starting in mid-November. No acts will be used under present plans, which is first break in the dual film bill prevailing at these second-runs for two or more years. Klein is also organizing the World Amusement Enterprises, located at 1224 Michigan Theater Building, to handle bookings for major presentations of this sort. Court Weighs Writ Plea Application for an injunction by Superior Talking Pictures and State and Screen Attractions and the appointment of a receiver for Principal rilm Exchange, Inc., which was to have been argued Friday, last, was submitted for decision to Judge Edgar Lauer in Supreme Court, New York County, Alfred J. Krellberg, counsel for Principal, requested additional time until today to file answering affidavits. This was unopposed by Oliphant & Lerman, counsels for Superior and Stage and Screen, on condition that they would have until Wednesday, next, to file additional affidavits.