Motion Picture Daily (Oct-Dec 1934)

MOTION PICTURE DAILY Friday, October 12, 1934 Ask Fox Met Operators to Change Pact (Continued from page 1) circuit by Skouras and Randforce. The Skouras brothers have been on the friendliest terms with John Dillon of the Hayden, Stone house for years. It is well known that the Fox Met bondholders' committee has long been anxious to liquidate its claims and retire from the Fox Met picture at the earliest possible date. The stumbling block to a sale of the circuit's assets which would permit this has been the long-term operating contracts held by Skouras and Randforce. These contracts have discouraged other theatre operators from bidding for the circuit and the impossibility of settling the contracts on a profitable basis is understood to have been a major factor in the withdrawal of Loew's from the joint $4,500,000 bid made for the circuit in conjunction with Warners last summer. Objective of Committee If Skouras and Randforce accept the committee's proposal and agree to new short-term contracts with cancellation provisions in place of those they now hold, the committee will have accomplished its sole objective, for, even though the Hayden, Stone deal is not consummated thereafter, the committee would be in a position to cancel the existing operating contracts and thereby clear the way for the submission of new bids by outside theatre operators. Moreover, observers agree, if Skouras and Randforce do accept the committee's proposal the acceptance would be a definite indication that the two would continue operations for Hayden, Stone in the event of a deal being consummated. It is understood that the Hayden, Stone offer contemplates foreclosure on Fox Met assets and a reorganization of the company by the bondholders' committee, rather than a purchase of the Fox Met bonds by Hayden, Stone with the investment house proceeding with its own reorganization. After the bondholders committee has foreclosed and reorganized, an outright sale of Fox Met to Hayden, Stone for $4,500,000 would be negotiated, it is contemplated in the offer. Hence the committee's desire to protect itself by having the right to cancel the operators' contracts if the sale to Hayden, Stone is not consummated within 60 days after the reorganization. Blumenthal to Be in Court, Says Burkan A. C. Blumenthal, who ignored a subpoena to appear at a Federal court hearing Tuesday on an action to dismiss a petition for reorganization of Fox Theatres on the grounds of bad faith, will be present at the next hearing, Oct. 18, before Judge Martin T. Manton, it was learned yesterday. Nathan Burkan, attorney for Blumenthal, has agreed to produce his client on that date, the court has been advised. Judge Manton, on Tuesday, agreed to issue a bench warrant for Blumenthal on the request of Archibald Palmer, counsel for a Fox Met Legion of Decency Comes To Rescue in New Orleans bondholders' group who is pressing the action for dismissal of the Fox Theatres' reorganization petition. The latter corporation owns all of the common stock of Fox Met. In his action, Palmer charges that Fox Theatres has no other assets of value and that the reorganization petition is brought in bad faith in an endeavor to realize on Fox Met assets. Fox Midwest Joins Pool with 2 Chains (Continued from page 1) with the management intact. The arrangement does not involve current leases held by Commonwealth, it is said. The pool involves the Warwick and Vista, Fox neighborhoods, and the Madrid and Benton, the Commonwealth contribution, in Kansas City, Mo., and the Fox Granada and the Electric in the Kansas city. Main object of the pool was to control bookings, as for the last two years or so competitive neighborhoods have been playing the same pictures day-anddate, which has not proved the best course. The plan is to play a weak picture against the big attraction. The Fox-Commonwealth pool also makes possible control of prices, and it was authoritatively said that "bargain nights" will be eliminated as unnecessary under the new arrangement. Double bills, however, will probably continue occasionally as in the past. The pool gives Fox complete control of the first run situation in Kansas City, Kan. The present plan is to book the major attractions into the Electric, which is larger than the Granada. Pool By Circuits Irks Sales Heads (Continued from page 1) that the sales managers will consult attorneys of their companies before deciding whether or not to sell the three circuit pool. Joseph Seider already has purchased Warners-First National, Fox and M-G-M for the Prudential-Casey & Wheeler circuits. Individual territories are tied together, but there is no interlocking agreement. The Skouras theatre in Hempstead is joined together with Prudential's Freeport house in one deal ; Prudential's Huntington Station unit is pooled with A. H. Schwartz's house in Huntington ; Seider's Floral Park is tied in with the Schwartz theatre in Queens Village ; Seider and Schwartz each have a house in Riverhead which are pooled ; Skouras' Glen Cove, Lynbrook and Valley Stream houses are in with the Schwartz's Rockville Center units. It is understood that the lawyers of the various distributing companies will meet today to further discuss the matter. Jules Buffano Married Portland, Oct. 11. — Jules Buffano, orchestra leader, has been married to Sue Lancier, artist. (Continued from page 1) Charles, appealed to Legion of Decency leaders for support of the Beacon Films' production, which, he pointed out, had been produced entirely under Catholic supervision, treated of Catholic church history and, seemingly, met all standards of the Legion of Decency. Archbishop John M. Shaw, apprised of the situation, declared: "If we permit this film to fail the Legion of Decency might as well disband. It is the duty of every Catholic man, woman and child to see it." The Legion immediately went into action, calling upon its members to support the film and making special appeals through Catholic churches and schools here. The response was immediate, McCloud reports. The picture has been playing to capacity all this week. Police have been required to handle overflow crowds and 20,000 admissions have been contracted for in advance, it is said. McCloud reports the picture will be held indefinitely. Allied Lines Up on Congress Campaign (Continued from page 1) administration of the motion picture code. "To secure a modification of the copyright laws which will curb the monopolistic power of the American Society of Composers, Authors and Publishers. "To secure the enactment of an antiblock booking law similar to the socalled Brookhart bill." In the latest Allied bulletin Myers urges members to secure copies of the M. P. Research Council's booklet, "Questions and Answers Concerning Compulsory Block Booking and Blind Selling in the Distribution of Motion Pictures" and to use its contents in contacting congressmen and senators. Views of members are being sought as to the desirability of holding a meeting of the board of directors of the national organization in New Orleans during December. Drafts of a new constitution will be circulated soon, the bulletin states. F. & M. May Lose 3 Houses in St. Louis (Continued from page 1) on the theatre situation. Skouras is due back in New York today by plane while Arthur leaves St. Louis this afternoon for Los Angeles, where he will confer with Mike Marco on the F. & M. west coast situation. Arthur returns to New York in about 10 days. Marion Davies to Leave Marion Davies leaves for the coast next week. She is now conferring with E. B. Hatrick on her two stories for the 1934-35 Cosmopolitan schedule. May Attend Premiere Hollywood, Oct. 11. — Dolores Del Rio expects to leave for New York shortly to attend the opening of "Madame DuBarry" at the Strand there. Files General Suit on Color Film Patents (Continued from page 1) Charles E. Townsend and William A. Loftus. Douglas claims that he began experimenting with color films in 1912 and made his first application for patents four years later. The processes now used by Fox, Paramount and Technicolor, he declares, are based on principles which he discovered. Douglas says he owns more than 50 patents, but these cover many things other than color films. He was one of the organizers of the Victor Talking Machine Co. His inventions, he says, include one making submarine pictures possible. In 1917, Douglas states, he made a color film at his own expense with Douglas Fairbanks, Mary Pickford and Charles Chaplin which was used in a Red Cross drive. His photographic principles, he says, are based on the use of two prisms, one filtering red light rays onto film and the other green rays. From the two negatives thus obtained, he explains, a positive print is made on film treated with emulsion on both sides, one for the red and the other for the green tones. Reels Anxious Over Pictures of Slaying (Continued from page 1) vanced for the government's action was its fear that the film might create the impression the authorities were lax in safeguarding the monarch. The order came out of a clear sky and the pictures were seized summarily, it was said. Pathe stole a march on the other reels, it was learned from an official of the reel, when the film taken by its cameraman was permitted to be shipped out of the country just before the censorship order was issued. It is expected to reach here next week. Some of .the newsreel officials expressed fear that none of the film would ever be released. Campi Passes New Assessment Plans (Continued from pane 1) adopted the finance levies and today will send them to the Department of Research in Washington. George G. Hunter has joined Campi's legal staff, assisting Tyree Dillard, Jr., at appeal hearings and in drafting of decisions. Division Administrator Sol A. Rosenblatt did not discuss the Hollywood situation, as he was expected to do. Attending the session were Walter Vincent, chairman ; Charles L. O'Reilly, Nathan Yamins, Gordon Youngman, Felix Jenkins, Neil Agnew. Jr., J. Robert Rubin, Harold S. Bareford, Willard McKay and Edward Golden. Herron Back at Desk Frederick L. Herron, treasurer and in charge of the foreign department of the Hays office, has returned from a combination vacation and business trip that took him to the coast and to Mexico City.