Motion Picture Daily (Jun-Aug 1931)

The Leading Daily Newspaper of the Motion Picture Industry MOTION PICTURE DAILY Formerly Exhibitors Daily Review and Motion Pictures Today Alert, Intelligent and Faithful Service to the Industry in All Branches VOL. 30. NO. 15 NEW YORK, WEDNESDAY, JUNE 17, 1931 TEN CENTS Sheehan Wins Suit vs. Fox; Trial Dropped Lawyers Reach Out of Court Agreement The law suit brought by Winfield Sheehan, general manager of Fox Film, against William Fox, former president of the company, was settled yesterday while a jury waited and both parties were about to proceed to trial before Justice Schmuck in Trial Term 18 of the New York Supreme Court. The out-of-court settlement was handled for Sheehan by Nathan Burkan and for Fox by Samuel Untermyer. Sheehan claimed Fox owed him $310,852, this being the proceeds of approximately 4,000 shares of Fox Film stock which Sheehan had main CContinued on page 2) Radio to Deliver All Films Promised Radio Pictures will round out the full complement of 34 pictures on the 1930-31 schedule, according to Charles Rosenzweig, distribution chief. There are nine Victory pictures and "The W Plan" to be delivered under the program. "Strange Women" and "Nancy's Private Affair" now are ready for release and the two more Victorys which will be delivered in August will bring the number to nine. Globe Gets Go-by From All Circuits Poor business at the Globe, New York, is reported the reason for the shutdown of the theatre with RKO meeting the unused term of its lease between now and the end of June at which time the agreement runs out. This reduces the number of Broadway houses showing pictures from 19 to 18. Unless RKO makes another deal for a house, this will reduce its first (Continued on patie 8) Rembusch Hits Film Boards and Allied Indianapolis — Frank J. Rembusch, who fostered the Association Against Business Monopoly, is out with a new blast against Film Boards and the Allied States Association. He charges the latter organization failed to protect the interests of independents at the hearings on the copyright bill. General Salary Slashes Are Believed Forestalled S.E. Unit Joins MPTOA Atlanta — Persuasive argument by M. A. Lightman, president of the M.P.T.O.A., resulted in affiliation with that organization of the Southeastern Theatre Owners' Association now winding up its annual convention here. Oscar Lam of Rome, Ga., was elected president, with Hugh Manning of Teowah, vice-president, and Love B. Harrell, secretary-treasurer. Lightman, Dave Palfreyman, Ed Kuykendall and Carter Barron were speakers at the sessions. M. A. Lightman Bank Loans Paid^ Universal In Strong Financial Spot Substitution Clauses Hit by Exhibitors Pittsburgh — Substitution clauses in current contracts are hit in a resolution passed by the M. P. T. O. of Western Pennsylvania and West Virginia. The organization calls attention to action of the trade practice conference in declaring such substitution an unfair trade practice. The clause now being used, the organization says, gives the distributor the right to change story, star, cast or director, giving the distributor the right of substitution "on all produc (Coiitinued on page 8) No New Members in Chi Union 13 Years Chicago — Investigation of the operators' union is under way by the Grand Jury. Records of the organization are being examined. Tom Reynolds, union president, was scheduled to testify Tuesday and other union officials will be examined later. The records show that no new members have been admitted to the union since 1918, all new members being permit men who give ten per cent of their salaries to the union. By careful pruning and increase of sales, Universal now has surplus enough to guarantee financing of new season's production, Motion Picture Daily learns. The company, it is stated, is clear of bank obligations and a statement to that effect now is being prepared. There have been reports in circulation concerning the company's relations with bankers, most of them all wet. Laemmle is building a theatre on the Coast and it is expected to be leased to HughesFranklin Theatres. British Films Not Shelved — Cooper Toronto — Col. John A. Cooper, president of the Motion Picture Distributors Association of Canada, has denied emphatically that Canadian companies were buying up British films for the Dominion in order to insure their failure, as charged by the Imperial Order of the Daughters of the Empire in convention at (Continued on page 8) M-G-M Decision Against Slashes Seen as End Of Reductions Further salary slashing in the industry is believed to have been forestalled following action of M-G-M in falling in line with other companies which have declared against wage reductions. Columbia, Radio and Fox are on record with similar stands. The M-G-M action was unanticipated, for the company is known to have considered salary cuts. Assumption of definite atandis against salary reductions is understood to be in line with the Hoover administration's policy against wage cuts. The President, it is said, intends to campaign next year on a platform of high wages and is calling upon leaders in all industries to maintain present levels. "Buy Now to Help Business" — Meyer Milwaukee — "Buy right, but buy now," President Fred Meyer told ISO exhibitors who met here yesterday when the M. P. T. O. of Wisconsin convention got under way. He said to showmen present this was the time to close contracts to keep the industry prosperous. The convention is slated to decide whether the organization is to remain in Allied today and will also deter (Continiicd on page 8) Chicago Censors Pass Two; Hold ''Enemy" Chicago — Shortly after passing Tiffany's "Hell Bound," the Chicago board of censors issued a permit for Fox's "Quick Millions." Minor dialogue deletions were ordered. No permit has been issued by the board as yet for Warner's "Public Enemy," submitted more than six weeks ago. Producers Invited to Join Canadian Body Toronto — Initial steps have been taken for the organization of a film producers' section of the Motion Picture Distributors and Exhibitors of Canada, of which Col. John A. Cooper is' president. An invitation is being extended to all Canadian companies (Continued on page 8) 50 as Nucleus Minneapolis — Fifty theatres will form the nucleus of the Minneapolis buying combine, it is understood. The membership is expected to be outlined at the annual convention of the Allied exhibitor unit to be held here September 9 and 10.