The Film Daily (1939)

M 2 9 W 44TH ST Intimate in Character international in Scope Independent in Thought F ILL tUrT DO l\ir>jT" RI The Daily Newspaper Of Motion Pictures Now Twenty-One Years Old I VOL. 76, NO. 9 NEW YORK, FRIDAY, JULY 14, 1939 TEN CENTS Marked Growth in Percentage Selling in Chi. Sector NEW THEATER BUILDINGlAlNS, REMODELING DROPS Circuit Tax Proposals Die in Wis.; Fear Admish Levy Assembly Defeats Amendment, Then Passes the Omnibus Bill Madison, Wis. — Pix industry in this state is reported not yet out of the legislative woods despite Assemhly rejection of an amendment to the omnibus measure providing for circuit taxation plus an income tax on circuit gross earnings, both within and outside Wisconsin. The bill passed the Assembly without amendment, the lower house also (Continued on Page 5) F & M SUESlAWYERS, ASKS FEE'S RETURN St. Louis — Fanehon & Marco, Inc., and two Missouri-incorporated subsidiaries in a suit just filed in the St. Louis Circuit Court against John A. Leahy, Sr., prominent local attorney and two of his associates, Lambert E. Walther and Harold F. (Continued on Page 10) Siegels Coming to N. Y. for Republic Confabs M. J. Siegel, president of Republic Productions, Inc., and Sol C. Siegel, in charge of production, leave the Coast tonight for New York to confer with James R. Grainger, Morris Goodman, and other Republic officials, together with Herbert J. Yates. The Siegels are expected to arrive on Monday. Yesterday, Grainger left the home (Continued on Page 6) Trade Code Revisions Still Incomplete As Major Sales Heads Adjourn Meetings Conferences on the trade code revisions will be resumed today or early next week by the sales managers of the seven participating major companies. Meeting held yesterday did not wind up the huddles after an all-afternoon session. The sales chiefs started their confabs on Monday and. with the exception of Tuesday, have met every day this week. GRAND NATIONAL WILL DEFENSESUBSTITUTION SEEK AGE PRODUCERS SOUGHT IN OHIO SUIT Revamping of Grand National's production schedule is expected to be in order shortly after the company's stockholders today give their anticipated approval of the two proposed re-financing plans. It is understood that E. W. Hammons, president, will go to the Coast in about 10 days to map out a new production program. Company execs, believe there will (Continued on Page 10) New York Allied Will Press Membership Drive Exhibitors joining Allied of New York after Sept. 1 will be required to pay an initiation fee of $50, it was learned yesterday. For that reason, a concerted membership drive is to be launched between now (Continued on Page 8) Columbus, 0. — With the fiat statement, "We cannot see why we should fight the film industry's battle," Ohio Tax Commissioner William S. Evatt and Assistant Attorney General Aubrey Wendt, yesterday definitely signified intentions of defaulting their interest in two taxpayer's suits involving non-payment of sales tax on film rentals. Commissioner Evatt reiterated his (Continued on Page 10) $8,404,000 for Construction in 37 States in First Six Months Total expenditure for new theater construction in the 37 States East of the Rockies shows, for the first six months of 1939, a gain over the corresponding period of 1938, according to a comprehensive survey by John Eberson, prominent film theater architect. Outlay, checkup reveals, is slightly in excess of $8,404,000, whereas, during the first half of last year, investment was approximately $8,123,000. While new theater construction advanced, on the other hand alteration volume declined slightly, the Eberson survey discloses. In the first six (Continued on Page 5) JOHN HERTZ ACQUIRES PARA, COMMON STOCK Wobber, Gehring, Talley at Eckhardt's Dinner Herman Wobber, 20th-Fox sales chief; Bill Gehring, central division manager; Truman Talley, head of Fox Movietone, and Lew Lehr will go to Chicago July 24 to attend the (Continued on Page 10) Knox Leaving Erpi Post on Physician's Advice Harry Gard Knox, for the past nine years vice-prexy in charge of engineering of Erpi, has on the advice of his physician, tendered his resignation to take effect tomorrow. I Knox plans to take a year's rest, during which time he will, however, [ be retained by Erpi in a consultingcapacity. Percentage Selling Gains in Chicago Area Despite Indie Exhib. Opposition Neely Bill Goes Before Senate at Noon Today Washington Bureau of THE FILM DAILY Washington — Senator Matthew M. Neely's anti-block-booking bill is first order of business when the Senate meets at noon today. Neely's bill remained unfinished business while the Senate yesterday debated and finally adopted last night So (Continiied on Page 10) By JOSEPH ESLER FILM DAILY Staff Correspondent Chicago — New Season selling in this territory ranges from "good" to "excellent," according to local exchange managers. In the face of those reports, leading indies here profess to be in a non-buying mood, with percentage deals a special target. Emil Stern, vice-prexy of Essa (Continued on Page 9) Washington Bureau of THE FILM DAILY Washington — John D. Hertz has filed a report with the SEC stating he has acquired 1,000 shares of Paramount Pictui'es common stock, it was revealed today in the SEC semimonthly summary of security transactions and holdings. This repre (Continued on Page 8) Para. Central American Biz Running 15% Ahead Paramount's business in Central America so far this year is approximately 15 per cent ahead of the same period last year, according to Henry Gordon, manager of the territory, who is in New York. Gordon esti(Continued on Page 10) Report Major Demurring to Play-Financing. Pact While a complete draft of the Wharton-Wilk agreement on film financing of Broadway plays has not been submitted to producers, at least (Continued on Pige S)