Motion Picture Daily (Jan-Mar 1934)

The Leading Daily p. Newspaper of the Motion Picture Industry MOTION PICTURE DAILY Alert, Intelligent and |P» Faith full j§ Service io^ the Industry in All Branches VOL. 35. NO. 17 NEW YORK, SATURDAY, JANUARY 20, 1934 TEN CENTS Warners Back On Operating Profit Basis First Quarter Since '30 $105,752.86 to Good For the first quarter since 1930 Warner Bros. Pictures, Inc., and subsidiaries report an operating profit. jThe total is $105,752.86 after deducting all charges, including interest, amortization, depreciation and provisions for Federal income taxes for the quarter ending Nov. 25, 1933. This compares with a net operating loss of $1,746,761.95 for the same quarter in 1932. Net profit from operations before amortization and depreciation and Federal income taxes was $1,933, (Continued on page 4) Federation Urged To Enter Ad Code The committee on standards of the Federation of the M. P. Industry, originally designed to draw up codes )f ethics for independent production and advertising, submitted a report o the executive board of the federaion yesterday recommending that members of the organization utilize, nstead, the M. P. P. D. A. codes and he boards set up to enforce them. The Hays boards include the studiG elations office in Hollywood under Dr. James Wingate and the adver (Continued on page 4) Report McDonough to Set Policy at Radio Hollywood, Jan. 19. — J. R. Mc)onough's visit to the Radio studios tere is understood to be for the purose of getting first hand information sgarding production and to try to ■rrive at some sort of basis for a Dnclusion on whether the unit system better than a one-man policy, i After he has obtained all the facts .adio's production policy will be anounced, it is said. Inasmuch as Mer n C. Cooper's agreement expires larch 1, a new deal probably will be iade. iatz, Franklin and Moss Hold Meeting Sam Katz, B. S. Moss, and Harold . Franklin yesterday held an imortant conference at the Monarch Theatres headquarters. David Chatin, in from Cleveland, also attended. Majors to Fight Rule on Cancellations to Dec. 8 Film Strike Hard Blow in Kansas Town Manhattan, Kan., Jan. 19. — The havoc that can be raised by closed theatres with the economic life of a community was demonstrated in this college town when three houses darkened for four weeks through the profitable holiday season in an attempt to force city officials to permit Sunday shows. Reopened after a losing fight on a six-day basis, the theatres are recouping their lost income and the town's merchants are smiling again. The controversy plunged Manhattan into seething debate. At first, it was largely the moral issue that came to the surface. But as business men realized Glen Dickinson, operating the Wareham and Dickinson, and Sam (.Continued on page 4) Columbia Men Hold Sales Confab Here Columbia will hold the first of a series of regional sales meetings today at the home office. This one will be for the eastern division, with Abe Montague, general sales manager, presiding. The next session will be next Saturday in Chicago with Jerry (Continued on page 2) Await High Court's Ruling Upon Leases A Supreme Court ruling which will affect $3,557,000 in lease claims against Publix Enterprises, bankrupt, is expected to be handed down in March. The action involved was initiated in connection with lease claims filed against United Cigar Stores and is (Continued on page 4) Publix Enterprises Leaving Para, Bldg. Offices in the Paramount Building used during the past year for administration of Publix Enterprises in (Continued on page 4) Pull Triple Loan Hollywood, Jan. 19. — An unusual twist to the loan system came to light yesterday when M-G-M entered into agreements for three players from as many studios. From Columbia a deal was made to borrow Donald Cook for a role in "Viva Villa." An agreement with 20th Century found Leo getting Fay Wray for the same picture. Universal loaned out Onslow Stevens for "It Happened One Day." Coast Poised For Arguments To Rosenblatt Hollywood, Jan. 19. — Anticipating that various organizations and labor groups will pounce upon Division Administrator Sol A. Rosenblatt on Monday with complaints of every conceivable nature, producers will go into a huddle with Will H. Hays over the week-end for the purpose of formulating plans to combat squawks reflecting upon them. They may also discuss methods of having one centralized organization to be spokesman for the creative branches of the industry. This points to a revitalized Academy, as they are disinclined to recognize the Writers' and Actors' Guilds as official spokes (Continued on page 4) Income Tax in '31 Hit 3,061 Concerns Washington, Jan. 19. — Although 8,802 amusement corporations filed tax returns for 1931, only 3,061 showed net income for the year, it was disclosed today by the Internal Revenue Bureau. Statistics of income compiled by the bureau show that these 3,061 corporations had a gross income for the year of $388,961,000, net income of $35,749,000 and net losses for prior (Continued on page 2) Contend Code Does Not Affect Pacts Made Before Signing That Division Administrator Sol A. Rosenblatt had no authority to rule that the 10 per cent elimination clause of the code would apply on product released after Dec. 8, even though contracts were made before that date, is the opinion held by major company legal departments questioned here yesterday. Counsel for the major companies contend that the question of whether or not the clause is retroactive is not settled in the code itself and, therefore, is a matter of contract to be decided by individual company policy. It was intimated that distribution companies would oppose Rosenblatt's ruling, by taking the matter to court if attempts were made to apply this interpretation to contracts made prior to Dec. 8. Legal representatives of the distributors contend hat no code for any industry has been permitted to disturb existing contracts land if an attempt was made in this industry it would be a matter for a law court, rather than a code board, to settle. Several described the Rosenblatt (Continued on page 4) Authority Issues 36 New Selections Another list of selections for zoning and clearance and grievance boards was made public today by the Code Authority. It includes 36 names from 12 exchange centers, making the total to date 782. Among them is the second college professor to receive a recommendation. He is Professor E. V. Hollis (Continued on page 4) Bareford Goes West; Is Warner Alternate Harold S. Bareford, legal aid of Warner Brothers, left yesterday for the coast with his wife to meet Harry M. Warner. Bareford is alternate for Warner on the Code Authority and his absence from New York next Tuesday leaves the Warner president without representation at the meeting. Mrs. Sol A. Rosenblatt was on the same train. Her husband joins her at Chicago this morning.