The Film Daily (1941)

M P . P HHI3. 1^1 bT. 2 I ST F L. 2 h W . 44 T H ST. N Y C Tuesday, November 4, 19 $7,850,000 in Frozen Funds Received Here (Continued from Page 1) getting 50 per cent of the blocked funds estimated at $32,000,000 in addition to $20,000,000 from rentals during the ensuing year. As reported in The Film Daily last Wednesday, the pro rata division of the initial payment follows: M-G-M, $2,300,000; 20th-Fox, $1,600,000; Para.. $1,005,000; Universal, $925,000; UA, $850,000; RKO, $550,000; Columbia, $300,000; and \VB, $275,000. Released Funds Expected To Jump Majors' Incomes Sharp gains over the profits of a year ago are reflecting an increase in consumer income and box office revenues are running ahead of the same period last year, according to a Dow-Jones survey in The Wall Street Journal. This year's incomes are expected to be increased substantially by the release of frozen funds in England, first payments having been received on Friday. The survey asserts that there is apparently a move under way in the industry to refinance outstanding short term notes and debentures into longer term issues at slightly higher interest rates, adding that amortization rate for films may be modified in accordance with better current income from Britain permitted under the new agreement. Cash positions of all companies are the strongest in their histories. A coriipany-by-company analysis by DowJones reveals the following: Columbia: Pick up in earnings seen through better product now in release. Net for the September quarter expected to be better than the 28 cents a shares earned in the 1940 period. Year's earnings should be up, too. Loew's: This company expected to profit most by the release of money in Britain. Net profit for fiscal year ended Aug. 31 estimated at $4.50 a share against $4.82 in 1940. Refunding plans are in work. Paramount: Earnings for the September quarter estimated at more than $1 a share on 2,465,927 shares of common stock. 20th Century-Fox: Upward trend in earnings expected. RKO: Company is slowly building up earning power after long period of receivership. Warner Bros.: Earnings reported to be running double a year ago. Other companies were not listed. OUT OF UNIFORM Morris Cohn, formerly a private in the 101st anti-tank regiment, has received his honorable discharge from the U. S. Army due to his age and has rejoined Columbia Pictures Corp. in Albany as a film salesman. "JLacfc of Space'9 of Detroit Times Delays Appearance of Film Reviews for 48 Hours Detroit — Films opening at first-run houses got a bad break Saturday when, "due to lack of space," the Detroit Times was forced to hold over the reviews of new films from Saturday until yesterday. Saturday papers are normally small, but usually carry the reviews. Deadline several days ahead on the picture section of the Sunday paper made it impossible to run the reviews until Monday. Browne-Biotl Defense Rests Defense Fails to Call IATSE Prexy to Stand (Continued C. Moskowitz, Loew's theater executive. Added to this disclosure, was testimony of James Coston, Warner Bios. Chicago Zone Manager, that his company from 1935 through 1940 had paid a total of $71,700 on the Chicago local theater situation. The tribute was exacted by William Bioff and his successor in Chicago, Nick Dean, Coston swore. Case to Jury Thursday or Friday Correa stated that his rebuttal would probably be completed tomorrow with the testimony of several other witnesses. John Balaban, B & K theater official, and Sam Brenner, Chicago lawyer for the IATSE, may be called by the Government. The case is expected to go to the jury on Thursday or Friday. The defense rested with express permission from the Court to call one more witness, probably Link, a Southern IASE representative. In the presence of Nick Dean, Bioff made his first demand upon Moskowitz in a New York hotel, Moskowitz stated. The witness had gone to the hotel during the Summer of 1935 in response to a telephone call purportedly from Browne. "Bioff told me that Browne was not there. He said that he was responsible for Browne's election and that he expected to get a couple of million dollars from the setup hut had not gotten a cent yet. I told him I had come to see Browne, and that I didn't even know who he was," Moskowitz related. Bioff pushed him back in his chair and shouted "You listen to me," the witness said, continuing then with his demands. Tells of $165,000 Payments About 10 days later Browne made a personal demand upon the witness and Mai. Leslie E. Thompson, of the RKO theaters, for $150,000 as his price to prevent a strike by Local 306 of the Motion Picture Operators' union, Moskowitz declared. As its share, Loew's paid $165,000 to Mort Singer, midwest circuit operator associated with RKO, consisting of $105,000 for Browne and $60,000 for expenses and Singer's added income taxes, Moskowitb testified. Singer acted as gobetween on the deal. Further payments to Browne of $25,000 in the fall of 1937 and of $15,000 in the Spring of 1938 were described by Moskowitz. These sums were handed over to the IATSE head from Page 1 ) as his price for preserving peace with Local 306 in 1937, the witness added. Coston declared that Bioff was first introduced to him as Willie Berger by Browne in 1928. The defendant first demanded money in February 1935, Coston said, when Bioff asserted that he had taken over the Chicago projectionists' union. To prevent the restoration of extra men in Chicago theater booths, $30,000 was paid to Bioff after a flying trip to New York on which Bioff made demands directly to Joseph Bernhard, Warners' theater head, the witness continued. Warners was forced to pay sums of $8,500 and $14,000 to Bioff in 1936 while Dean collected two payments of $9,600 in 1938 and 1940, Coston said. Says Bioff Was Abusive At times Bioff grew abusive in his repeated demands for money, the witness said. "This is going on too long. Go and get it and get it quick." Bioff was quoted as saying once in protesting a delay. While fighting extradition in 1940 Bioff said to Coston: "If I go to jail, Joe Schenck will be in the next cell and maybe some other big film men too. They can't afford to let me go to jail. I've done too much for the industry in taking care of strikes," Coston related. In the morning after Charles T. Russell, tax consultant, had testified, the defense placed a number of Bioff's friends and relatives on the stand to prove that the defendant was originally known as Morris Bioff. Russell conceded that all bills for representing Browne and Bioff in tax difficulties were paid by the IATSE and not by film executives. Jack Rabin, associated with Mervin Ash & Co., another witness, told how $202,837 in stock of Twentieth Century-Fox and Consolidated Oil were transferred from the name of Joseph Schenck to Murray W. Garsson and Joseph M. Moskowitz. Bioff has claimed that Garsson was naid $200,000 by Schenck while the former was investigating Fox Film Co. for a Congressional committee. According to Mervin Ash's books, the transfer was made to correct a mistake in originally listing the stock under Schenck's name. Coston faces cross-examination by the defense tomorrow. No court will be held today. Canada Puts Ceiling On Boxoffice Prices (Continued from Page 1) exhibition of motion pictures one of the business services unci the jurisdiction of the Board. Reductions Permissible The decree does not prevent" duction of prices at any tim^ no increase of any kind for simil regular performances will be pe mitted. Apparently no control is established over rentals to be charged by exchanges for films, but the rates for advertising accessories are stabilized at' highest charges during the four weeks period. The Government also fixed rat for transportation of goods or pel sons by any carrier, so that deli ery costs by transport or expre are now set. Interpretation is needed for fclj clause aimed at price control i< those keeping goods or merchandi in storage which may bring film e \ changes under the edict because th< have films in storage vaults. Investigators are to be appoint* to check on admissions and oth : charges, with power to lay info mation for court hearing in the ca of infraction. Penalties not e ceeding $5,000 or two years ir prisonment or both are provid' for infractions. $8,000,000 in Para. 3Vfc% Convertibles Exchanged (Continued from Page 1) Pictures convertible 3JA's, approx mately $8,000,000 or about thre quarters of the entire 3TA per cei issue have been sent in to the Mam facturers Trust Co. for exchang Stanton Griffis, chairman of tl Paramount executive committee, a nounced yesterday. Offer of exchange expires at tl close of business next Monday, ar as the new 4's are selling on tl New York Stock Exchange at premium, it is expected that su'. stantially all of the VA per ce>, bonds will be exchanged before tl expiration date. TO THE COLORS! Adolph Zukor, chairman of tl board of Paramount Pictures, r< ceived word yesterday that his soi Eugene Zukor, who was recent! commissioned Lieutenant Commani er in the U. S. Navy, has been d< tailed for active duty in the Los Ai geles area. Duluth, Minn. — W. Durand Thorn] son, manager of the Strand Theatcat Duluth, has been called for Arm service. He has been replaced b Donald Palmquist. former assistar manager of the Century Theater i Minneapolis.