The Film Daily (1939)

2(1 W 4-4-TH ST NYC 2 I ST r L Intimate in Character International in Scope Independent in Thought do not remove: The Daily Newspaper Of Motion Pictures Now Twenty-One Years Old FDAILY c. 376, NO. 15 NEW YORK, MONDAY, JULY 24, 1939 TEN CENTS Arbitration Revision Won't Affect Allied Stand-Cole )0V7 ML ASK NOV. 1JRIAL FOR EQUnTACTION Metro's Gross Biz Up More Than $2,000,000 --Schenck THEWEEr IN REVIEW Senate Okays Neely Bill =67 GEORGE H. MORRIS= OMESTIC NEELY BILL: By a 46-28 vote Monday, Senate, for second time as many years, passed the conoversial Neely bill to outlaw comilsory block-booking and blindlling. Bill then went to the House, it without chance for action at this ssion of Congress, according to iservers. In debate on the mease. Senator William H. King, D., tah, launched savage attack on the ovisions which were, he asserted, iconstitutional. Senator Arthur apper, R., Kansas, voiced view that e bill would "do no harm and much )od." Party lines were shattered the balloting. COAST PROBE LOOMS: The eek-end, too, produced a sensation! development with Attorney Genal Frank Murphy admitting at "ashington press conference that 1 of J expects to launch shortly Grand Jury investigation at Los ngeles into "certain conditions in le motion picture industry." Inestigation, Murphy said, will cen:r on labor racketeering, anti-trust iolations and income tax evasions. RKO DEFEATS APPEALS: In decision, which was another highght of the legalistic and legislave-packed week, Circuit Court of .ppeals unanimously affirmed in all aspects Federal Judge Bondy's aproval and confirmation of RKO 2org. plan, and rejected contentions f H. Cassel & Co.. Ernest W. Stirn, opia Realty and Fabian Operating o. Later, having obtained Judge ondy's consent, Atlas Group, lan's proponents, were set to file ertificate of incorporation of new .KO company in Wilmington, Del. lourt is expected to get underwrit (Continucd on Page 6) Gain During Last 12 Months Is Despite Foreign Market Shrinkage Despite the loss of a large part of the European market, M-G-M's gross business during the last 12 months has been more than $2,000,000 ahead of the preceding 12-month period, a ccording t o Nicholas M. Schenck, president o f Loew's, Inc., who arrived Friday from the Coast. Schenck said he looked upon this record as being remark (Continued on Page 5) SAYS PUBLIC WANTS SHORTS Kuykendall Lauds M-G-M at Fair; Leo, Jr., is "Crowned" NICHOLAS M. SCHENCK FBI INVESTIGATING FOX THEATERS CORP. Federal Bureau of Investigation has been investigating the affairs Washington Bureau of THE FILM DAILY The public is demanding better short subjects and more diversified programs, Ed Kuykendall told a large audience in the Court of Peace at the World's Fair on Saturday when Leo, Jr., M-G-M's lion cub, was officially initiated as the company's short subject trade mark. Kuykendall commended M-G-M for its decision to put more money and better talent into its shorts and expressed the hope that all companies would do likewise. He said he believed a diversified program (Continued on Page 5) TNEC EXECTDENIES BIZ PROBE PLANNED of Fox Theaters Corp. for some time it was learned on Friday at a hearing before Federal Judge John C. Knox on an application to restrain Milton C. Weisman and Kenneth (Continued on Page 6) Washington — Branding the report in Paul Mallon's syndicated column that the film industry would go under fire before the TNEC in September as "premature and wishful (Continued on Page 4) Allied Prexy Says Code Dead Issue/ Indifferent to Arbitration Changes Famous Players Canadian Convention Opens Today Niagara Falls, Ont. — First coastto-coast convention of Famous Players Canadian Corp. representatives opens at the General Brock Hotel this morning. National four-day (Continued on Page 7) Even though the revised arbitration rules may be perfect, Allied members are still advised not to sign the proposed trade practice code, Col. H. A. Cole, president, said in New York over the weekend. A perfect arbitration setup is of no value unless the document on which it is to operate is perfect, (Continued on Page 4) Application Before Court Tomorrow; Sherman Act, Court Rules Cited The D of J filed notice on Friday that it will apply to Federal Judge John C. Knox tomorrow for an order setting down the equity action against the majors for trial on Nov. 1. The Government is basing its application on Rule 20-E of the District Court Calendar Rules and on Section 4 of the Sherman AntiTrust Act which, according to an affidavit of U. S. Special Assistant Attorney General Paul Williams, provides "When the parties complained of shall have been duly notified of such petition, the Court shall proceed, as soon as may be, (Continued on Page 6) WARNERS' 39-WEEK NET, $2,912,186 A net operating profit of $2,912,186.40 for the 39 weeks ended May 27, 1939, was reported by Warner Bros, and subsidiary companies on Saturday. This figure represents the net after deducting all charges including amortization, depreciation and Federal income taxes, and com ( Continued on Page 5) Prentice Hall, Inc., to be New RKO's Resident Agent In the wake of last week's unanimous decision by the Circuit Court of Appeals, upholding Federal Judge William Bondy's decision which had (Continued on Page 7) June Admission Taxes Show Decline; B'way Figures Up Washington Bureau of THE FILM DAILY Washington — Increase in admission taxes collected by the Internal Revenue Bureau noted last month stopped short in June as taxes dropped below those of both June, 1938, and May, 1939, the Internal Reve (Continued on Page 5)