The Film Daily (1934)

DAILY Friday, Jan. 26, 1934 CHASE BANK SELLS BLOCK OF LOEWS (Continued from Page 1) immediately on the issuance of the Warner Bros, financial statement for the first quarter, showing Warner's first net profit since 1930. This statement went over the ticker last Friday at 2 p.m., and a few minutes thereafter" the big activity in Loew trading got under way. With prices running from under 28 to 30 y2, the sale brought Chase close to $5,000,000. Under the national banking laws, the Chase bank could have retained the stock for only a reasonable length of time. Among purchasers of the shares are understood to have been several interests who already were large stockholders. Western Electric, which also has a block of about 135,000 shares of Loew as its share in the division among Film Securities noteholders, is understood to be planning to retain all of the stock for the present. Censorship is Attacked By Liberties Union Head (Continued from Page 1) speaker said that a bill to abolish New York state censorship would come before the state legislature next week and that, with the support of many women's clubs and ether influential organizations, the chances for its approval were great. "The movies need no control by the stupid minds of censors," said Baldwin. "There is no sense in censorship. Control should be left to the U. S. District Attorney, a judge and, if wanted, a jury. Leave the movies' morals to them." Major Bowes M. C. at Ball Major Edward Bowes, managing director of the Capitol, will be toastmaster and master of ceremonies at President Roosevelt's Birthday Ball to be held next Tuesday evening at the Astor Hotel. 189 "Fashions" Day-and-Dates First National's "Fashions of 1934" has been booked to play simultaneously in 189 cities the week of Feb. 17, Warners announced yesterday. ANALYSIS OF MOTION PICTURE CODE By LOUIS NIZER Fifteenth Installment ARTICLE V— UNFAIR PRACTICES—DISTRIBUTORS— EXHIBITORS—(Cont.) (e) Computing Average License Fee The ten per cent cancellation privilege applies only to contracts where the average license fee is not more than $250.00. If the contract is on a percentage basis, how can it be determined in advance whether the average license fee is more or less than $250.00? The method used is as follows: 1. Distributor's Prior Pictures Average the license fees of all of the Distributor's feature pictures exhibited on a percentage basis at the Exhibitor's theater during one year prior to the present contract. Example One: Suppose that during the preceding year five of the Distributor's pictures were exhibited upon a percentage basis. Suppose that the total license fees for the five pictures according to the percentage terms were $1,500.00. The average license fee per picture was, therefore, $300.00. This is computed by dividing the total license fees of $1,500.00 by the number of pictures exhibited, which is five. The average license fee is, therefore, more than $250.00 and the Exhibitor is not entitled to any cancellation under the existing contract. Example Two: If, on the other hand, the total license fees of the five pictures played during the prior year were $1,000.00, the average license fee per picture would be $200.00. Since this amount is less than $250.00, the Exhibitor is entitled to ten per cent cancellation under the pres HARRY SCHENCK & PHRA ABHAIVONGC Announce All controversies and disputes have been settled to complete satisfaction of both parties, over Animal Picture Produced by Harry Schenck in Siam and Malaya. Titled "Beyond Bengal." They may be reached at 'Phone, Circle 7-2641 for distribution arrangements. ent contract. 2. No Prior Distributors' Pic tures If none of the Distributor's feature pictures were ex ! hibited on a percentage j basis during the prior year, average the license fees of j all other Distributors' fea j ture pictures exhibited on a percentage basis at this I theater during that year. If the average is not more than $250.00, the Exhibitor is entitled to cancellation under the present contract. Example One: Suppose that none of the Distributor's feature pictures were exhibited on a percentage basis during the year prior to the contract. But suppose that eight feature pictures of three other Distributors were exhibited on a percentage basis during that period. If the total license fees of those eight pictures were $4,000.00, the license fee per picture was $500.00. This is computed by dividing the total license fees of $4,000.00 by the number of pictures exhibited., which is eight. Since the average license fee was more than $250.00, the Exhibitor is not entitled to any cancellation under the present contract. Example Two: If, on the other hand, the total license fees for the eight pictures were $1,200.00, the average per picture would be $150.00. This sum is less than $250.00 and, therefore, the Exhibitor is entitled to ten per cent cancellation under the present contract. (f) Computing Payment Made with Cancellation If the Exhibitor is entitled to ten per cent cancellation and he desires to cancel a picture before he has paid for nine others, he may do so provided he pays the license fee of the cancelled picture. Subsequently, he is credited with this sum when he plays the tenth picture. If the picture to be cancelled is on a percentage contract, how is the license fee to be paid at the time of cancellation, computed? The method is as follows: 1. Prior Distributor's Pictures Average the gross receipts of the Distributor's feature pictures exhibited at the theater during ninety days prior to the notice of cancellation. Apply to this average sum the percent SEEK AID OF FILMS IN FIGHT ON RADIO (Continued from Page 1) deputy administrator for the entertainment industry, is an ex officio member of the committee. Action on the encroachment of "radio shows" in the field of the theater was spurred by the recent leasing of the Hudson Theater as a studio by the Columbia Broadcasting System. Number of persons now attending broadcasts of various programs at the WEAF, WJZ, WABC, WOR and other studios is estimated to be as high as 20,000 in a day. age terms of the contract. The sum thus computed is the amount that the Exhibitor must pay to the Distributor at the time of cancellation. Example: Suppose that the Exhibitor wishes to cancel the fifth picture to be delivered to him. Since he has not yet paid for nine pictures of that group of ten, he can only cancel by paying the license fee of the picture cancelled. If the license fee under the contract is a $50.00 guarantee plus twenty per cent of the gross receipts, the sum to be paid to the Distributor is computed as follows : Suppose that three of the Distributor's feature pictures were exhibited at this theater during ninety days prior to the notice of cancellation, and suppose that the total gross receipts of these three pictures were $900.00. The average gross receipts per picture were, therefore, $300.00. The percentage terms of the contract must be applied to this sum. Twenty per cent of $300.00 is $60.00. Under the contract this sum must be paid in addition to the $50.00 guarantee. Therefore, the Exhibitor, in order to cancel the fifth picture, must pay $110.00 to the Distributor at the time that written cancellation is sent. (To be Continued) \ FACTS ABOUT FILMS Wired theaters throughout the world number 41,822, according to the Dept. of Commerce's 1933 internatoinal survey, which showed a total of 60,347 theaters. I