The Film Daily (1940)

0 *\ DAILY Tuesday, December 31, 1940 Headlines Trace Year's History of Industry Consent Deeree9 Industry Arbitration System and the War in Sharp Retief — JANUARY 2 — RCA to introduce theatrical television in 1940, David Sarnoff announces. Nebraska to take anti-Ascap fight to Supreme Court. 3— U. S. Supreme Court kills attack on RKO reorganization. Pandro S. Berman to join Metro as producer. 4 — James Roosevelt closes distribution deal with United Artists. Defense must ask for Consent Decree, says Thurman W. Arnold. Charles B. Mintz, president of Screen Gems, Inc., dies on Coast. Henry Davis, pioneer U. S. exhibitor, dies in Pittsburgh. 5 — Robert Jackson succeeds Frank Murphy as United States Attorney General; D of J trust policies unchanged. 8 — Coldwyn-Warner "Westerner" deal dropped on advice of Warner Bros, attorneys. Referee orders liquidation of Grand National. 9 — Mayor LaGuardia wants 27 per cent of pictures produced in East. B & K seeks television station permit in Chicago. 10 — New studio strike averted at Producer IATSE confab. 11 — U. S. Consent Decree stand finds majors cool. George W. Weeks resigns as Monogram general sales manager to produce. Sam Sax resigns after 12 years with Warners. Film industry assails provisions of Copyright Bill. 12 — U. S. critics vote "Goodbye Mr. Chips" as 1939's best picture in 18th FILM DAILY Poll. 15 — Finalization of RKO reorganization speeded by court's order. New company's capitaliza $8,130,000. Du Mont fights proposed television regulations as "strait-jacket." National Board of Review of Motion Pictures names Dr. A. A. Brill, chairman. 16 — U. S. to examine 26 top execs, in Equity suit. 17 — Percentage pictures, strike menace and trade relations before Allied directors at Washington. Federal Judge Henry W. Coddard designated to hear Government Equity suit. Murray Silverstone signs Gabriel Pascal to produce for UA. Loew stockholders reject motion to increase board. 18 — Government refused writ to halt Schine Circuit expansion. National Allied proposes definite arbitration system. SEC report reveals new $5,000,000 Warner financing. Walter Wanger elected president of Motion Picture Academy. 19 — Court orders trustee to transfer RKO assets to new company National Allied to campaign for immediate arbitration; Cole and Myers re-elected. 22— J. Malcolm Kingsberg named KA-O, B. F. Keith, vice-president; W. J. Merrill to be RKO treasurer. 23 — Edwin Carewe dead at 57, after heart attack. 24 — Sam Dembow, Jr., to be named Paramount vice-prexy in charge of theaters. 25— New Italian pix setup unsatisfactory to U. S. 26 — Three possible approaches to film legislation weighed by House block. 29— AF of M and IATSE upheld in legal fight against "canned" music. RKO assets transferred, leaving single step to complete reorganization. Linden (Baltimore) anti-trust action settled. 30 — Harry Paynter named sales head of EmpireUniversal Films of Canada. Pathe Labs., Inc., completes purchase of Cinema Labs, assets on Coast. 31 — British Films Council approves retention of quota. Neely proponents want unfair advantage, asserts George J. Schaefer. Kentucky enacts tax of 20 cents per seat. — FEBRUARY — 1 — Educational Pictures, Inc., files as bankrupt, seeks liquidation. Moral issue eliminated in Neely campaign, says Col. H. A. Cole. 2— U. S. film exports slump sharply; Brazil best market, Dept. of Commerce reports. D of J moves to strike defense interrogatories in Equity suit. NEWS HIGHLIGHTS OF 1940 {Continued from Page 1) V ANTI-TRUST litigation continues to hold the spotlight. In late December, the Department of Justice announces impending criminal prosecution of Ascap, BMI, NBC and CBS under the Sherman Act. Criminal contempt actions against B & K, FWC and the majors are terminated. VI DEATH takes further toll of industry pioneers — Daniel Frohman, Tom Mix, Marguerite Clark, Edwin Carewe. VII LIMITED COMMERCIAL TELEVISION is authorized by the FCC, which later rescinds the authorization. CBS introduces color television. NBC starts installing theatrical television equipment in the New Yorker Theater. VIII EXTENDED BRITISH REMITTANCE negotiations conclude with an agreement upon the withdrawal of $12,900,000 during the war's second year. IX "GONE WITH THE WIND'' in its first release period rolls up the unprecedented domestic gross of $23,500,000 (estimated). X WALT DISNEY'S "FANTASIA'' astounds and delights as it introduces Fantasound and utilizes the cartoon to interpret musical classics. — BAHN. Co-operative Theaters of Michigan lashes at Neely measure as fourfold threat to industry. 5— $3,500,000 CWTW seven weeks' gross sets all time high in speedy "takes." W. J. Merrill named RKO treasurer, William Mallard leaves board, stays as general counsel. 6 — Y. Frank Freeman elected AMPP prexy. 7 — Industry arbitration system doubtful till Equity suit ends. 8 — Co-operative Theaters of Michigan asks mandatory arbitration in Neely Bill amendment. National Poster Service Association reported dissolving. 9 — Radio give-away complaint referred to the D of J by FCC. Conspiracy action against MPPDA and majors dropped by Lenrose Amusement Co. Henry A. Lydecker, veteran film carrier, dies in Boston. 12 — Louis B. Mayer says 70-30 per cent policy on GWTW successful. 13 — D of J probes theater building restrictions in Frisco. Federal regulation aspect of Neely Bill alarms U. S. press. Willard C. Patterson, Warner exec, dies in Palm Springs. Henry Ginsberg joins Paramount as Y. Frank Freeman aide. 14 — 21 major poster renters bought by Advertising Accessories, Inc., National Screen subsidiary. 15 — Industry school tie-up booms 16 mm sales. 16 — Samuel Goldwyn asks court decree UA pact cancelled. Storm in East cuts biz 50-60 per cent, closes some houses. 19 — IATSE organizes technicians in television field. J. J. Nolan named vice-president in charge of RKO studios. 20 — British-owned securities of Loew, Paramount, RCA and DuPont must be sold by Government order. Wilton Barrett, National Board of Review executive secretary, dies. 21 — Janbert Amusement Corp. of West Orange files $280,500 anti-trust suit against MPPDA and majors. 23 — James Roosevelt to make nickel-in-slot pictures. Tennessee anti-Ascap law ruled unconstitutional. 26— $4,000,000 financing for Walt Disney through stock issue. Harry Rathner to head revamped PDC, PPC. CWTW gross hits $10,600,000; first-run take of $23,000,000 seen. Frank Hollingsworth, Beatrice, Neb., exhibitor, files $234,000 anti-trust suit. 27 — Italy considers U. S. distributors' terms for return. 28 — All majors define policies on cancellations at Ohio ITO's request. 29 — D of J ask court to ban intimidation attempts by majors in Equity suit. Netcong Amusement Co. new anti-trust suit in N. J. asks $330,000 balm. — MARCH — 1 — M. P. Academy votes CWTW year's best picture; awards Irving Thalberg Memorial Trophy to David O. Selznick. FCC okays limited commercial television to start Sept. 1. 4 — Theater operators see television's "Green Light" as film's "Red Signal." 5 — Court cites possibility of settlement of New York Equity suit. Cosmopolitan Productions' deal with 20thFox expires. 6 — Ed Kuykendall urges trade reforms by contract. Government plea for order banning intimidation is denied in Equity suits. 20th-Fox negotiating for outside product. Courter Amusement Co. (N. J.) asks $574,200 damages in anti-trust suit against majors. 7 — U. S. bares 500 Equity suit witnesses. 789 out of 899 Texas theaters oppose Neely Bill passage. 8 — Alternatives for Neely bill sought by MPTOA. II— See $6,000,000 as Equity suit's minimum cost. $7,960,000 Republic gross in 1938 is gain of 71/2 per cent. 12 — Government to try, not settle Equity suit, says Thurman W. Arnold. Fine Arts leases Grand National Studios to make 26 pix in 1940-41. 13 — Earl J. Hudson named president of United Detroit Theaters Corp. Tele takes three forward steps in challenge to pix as RCA cuts set prices 1/3, sets promotion drive, adds programs. 14 — Disney plans own distribution setup for "Fantasia"; to restrict bookings. RCA television stations for Philadelphia, Chicago, Washington. Samuel Bronston forms new producing company. 15 — Frederic Ullman, Jr., named RKO producer; Frank Donovan appointed Pathe News vicepresident. Italy lifts restrictions on private distributors' purchase of foreign films. 18 — Move to end triples in Chicago in prospect. Columbia to spurn any equity suit consent decree. 19 — Dan Michalove reports Hoyts-GUT merger progressing, on return from Australia. 20 — Philly trust suit attacks Warner clearance schedule as "arbitrary." UA, Universal reported cold to Consent Columbia's voting trust agreement to expire April 1. Famous Players Canadian reports $904,324 profit for 1939. 21 — World screen time of American films holds at 65 per cent, Department of Commerce reports. Producer-theater tie essential, says Y. Frank Freeman in equity suit pre-trial examination. 22— World film theaters advance 4,313 to 67,129 in 1939, Department of Commerce reports. 25 — FCC revokes order permitting commercialized television. -6 — Film industry too complex for split, says Will H. Hays in annual report. U. S. Supreme Court okays 20 per cent award in "Letty Lynton" plagiarism case. $4,146,813 net for 1939 reported by 20th Fox. $1,234,523 RKO net reported for 1939. 27 — Consent decree reports "premature," says head of D of J Consent Decree Division. K-A-0 reports net profit of $976,627 for 1939. 23 — 20th-Fox proposes new 5-year Darryl Zan uck contract. Double features "bad practice," Neil Agnew tells Government in New York Equity suit pre-trial examination. Kentucky to collect 15 per cent levy on all prizes offered with amusements, under new law. 29 — Arbitration "with teeth," consent decree plan of Department of Commerce. IATSE decides against walkout call in Philadelphia. — APRIL — 1 — D of J integration stand seen bar to consent plan. U. S. proposes discrimination cure for control of licensing to newly acquired circuit theaters. U. S. pix gain in foreign screen time in 1939, receipts fall. 2 — Government discloses 103 more exhibs. as suit witnesses; expects to show coercion in theater buying. Criffith interests acquire 30 houses of Isley Moran Circuit in Oklahoma and Missouri. Pathe Films 1939 net at $424,489. John Maxwell's Mayflower Productions stock sold to RKO. GTE reports 1939 net of $696,063. 3 — Independent Exhibitors, Inc., notifies .U. S. it opposes any consent decree plan. Congress may get revised Department of Commerce consent plan. 4 — Allied weighs Department of Commerce's consent decree plan; first units emphatically opposed. $21,537,577 profit for Eastman Kodak in 1939. Henry Ginsberg named head of Paramount studios operations. MPDDA re-elects Will Hays president for the 19th consecutive year; Walter Wanger named to the Board. 5 — British exhibitors in drive for lower film rentals. D of C's plan no substitute for Neely Bill, says sponsor. Matthew V. Carroll, treasurer of National Theater Supply Co., dies. 8 — American companies asking quadruple British quota credits. Lack of unity by majors said bar to consent c 'iamond, Paramount executive, dies proposes barter for Lou Di, suddenly. 9— New Italian plan U. S. films. Western independent circuits form Theaters Security Corp. with C. E. Huish as president. Block booking control clause dropped from Department of Commerce's consent decree proposals. 0 — Theater Divorcement Bill introduced in the U. S. Senate by Sen. Matthew M. Neely. British deny planning restrictions on U. S. film imports. $4,000,000 Scandinavian market menaced by Nazi drive. Bell Telephone Labs, demonstrates Stereophonic sound at Carnegie Hall, New York. Boris Morros forms National Picture Corp. to produce. 2 — David O. Selznick advocates board vamp the MPPDA production code. (Continued on Page 7)