Motion Picture Daily (Oct-Dec 1934)

The Leading Daily -Newspaper k 1 Hi Motiorfj| Picture Industry MOTION PICTURE DAILY Alert, Intelligent and < . Faithful Service to" the Industry in All Branches /OL. 36. NO. 100 NEW YORK, SATURDAY, OCTOBER 27, 1934 TEN CENTS Reorganization of RKO Started, Court Is Told RCA Victor Will Remove All Flywheels Exhibitors Notified New Parts Now Being Made RCA Victor is to begin immediately the replacement of flywheels vhich infringe on the American TriZrgon patents held by William Fox. N'otice to this effect has been sent b users by E. T. Cunningham, presiflent. Some replacement parts are available, the letter states, and additional juantities are being manufactured, the service staff is to be enlarged so speed the work. Cunningham's letter follows : "To reassure all users of RCA Photophone and RCA Victor sound {Continued on page 4) Trustees Asked for Art Cinema Windup Wilmington, Oct. 26. — A bill for :he appointment of trustees in the dissolution of Art Cinema Corp., which nled a certificate of dissolution in Dover last Tuesday, was filed today n Chancery Court by Harry Buckley )f New York, a stockholder. The bill recommended that William Tasie, Dennis F. O'Brien, and William H. Phillips, directors of the corporaBon, be named as trustees. The corporation owns stories, plays and other .iterary properties as well as finished films. It also has shares in United Artists Corp., and, through a subsidiary, owns property in Culver City. "Wimpole" Grosses $182,390 in Month Four weeks of "The Barretts of Wimpole Street" at the Capitol netted the Broadway house a total of $182,390. For the last week, the M-G-M picture took in $26,830. At the end of the first seven days, the tally was $65,860; for the second stanza, $46,000; the third week, $43,700. "Judge Priest" at the Palace garnered a profitable $14,500 on the week's run. Second week of "Happiness Ahead" at the Strand ended with $10,592. Justice Department Not to Aid Picture Washington, Oct. 26. — The Department of Justice today "cracked down" on a suggestion that a film be (.Continued on page 4) Equity-Guild Deal Provides For Autonomy Absolute local autonomy for the Screen Actors' Guild, modified only by the constitution and by-laws of the American Federation of Labor, is provided for in the guild's affiliation agreement with the Actors' Equity Ass'n, Frank Gillmore, Equity president, said yesterday. Such major policies as a "closed shop" for screen actors and restrictions on the engagement of "foreign" players, such as are imposed by Equity, will, therefore, be decided by the guild itself if and when the affiliation with Equity becomes a fact. Equity has a closed, or "Equity shop" and stipulates that there must be a sixmonth interval between engagements for all foreign stage players. Gillmore said he would be unable to state whether guild members would be obliged to become members of (Continued on page 4) Say Exchanges Push Texas Scale Boosts Dallas, Oct. 26. — Exchange men, not Interstate Circuit, are the instigators in Texas of a movement to hike prices next season, described by Col. H. A. Cole, Allied leader, in a recent interview to Motion Picture (Continued on page 3) Heavy by Contract Hollywood, Oct. 26. — A clause in Harvey Stephens' new contract with M-G-M carries the stipulation that the actor will definitely not be groomed for leading man roles. He wants to be typed as a heavy. Fox Wins New Move in Probe Of Theatre Co. William Fox has won a move in his fight to have the receivership of Fox Theatres Corp. probed in the courts. The Appellate Division has reversed the Supreme Court and has decided that William E. Atkinson, president of Fox Theatres, can be examined on the history of the receivership. Fox contends that the theatres corporation, the Chase National Bank and (Continued on page 3) Mermaid Loses Suit To General Talking General Talking Pictures Corp. has won a counter suit against Mermaid Cinema Corp., operators of the Mermaid, Coney Island. The Mermaid removed a DeForest (Continued on page 3) Warners May Extend Film Rating Policy Generally Segregation of pictures for adults only and for family entertainment may extend to all Warner theatres throughout the United States, dependent upon the early reaction to the step inaugurated in the circuit's Philadelphia zone yesterday. Warner executives have set aside 10 days, they declared, in which to study the . efficacy of the experiment launched in the Quaker City. If they are convinced that the plan is work able, as well as practicable from a straight business view, it will step out of the localized theory classification and reach into Warner houses nationally. Presumably, that means the Strand on Broadway as well as Strand in Brooklyn. In the meantime, it was stated, announcement of the inception of the scheme for the Philadelphia zone had been met with widespread editorial and civic endorsement in that city. Progress to Depend on Company's Earnings, Says P. E. Mead Development of a plan of reorganization for RKO has been begun and its progress is expected to be limited only by the rate of improvement in the company's earnings, Paul E. Mead, head of the bankrupty division of Irving Trust Co., told Federal Judge William Bondy yesterday. Mead's statement was made in reply to Samuel Spring, counsel for RKO creditors, who requested information as to what progress was being made toward a reorganization. Mead at first declared that the development of a plan of reorganization was the province of creditors and not of the trustee, the Irving Trust Co., but later stated that the trustee had been advised that reorganization con (Continued on page 3) Re-argue $800,000 Para. Fees Monday A re-arguing of the petition for allowances aggregating approximately $800,000 for services in connection with the Paramount Publix bankruptcy has been scheduled by Special Master John E. Joyce for Monday. The petition was originally argued on {Continued on page 4) Admit IT OA Handled Union Code Affairs Further hearings yesterday before Referee Robert McC. Marsh in the suit of Local 306 to prove that Allied M. P. Operators' Union is controlled by the I.T.O.A. and comes under the "company union" classification yesterday developed the fact that I.T.O.A. officers represented the Allied union in the code hearings at Washington. Harry Brandt, on the stand, testified this was done to save the Allied union expense and that the union paid $1,500, one-tenth of the cost of the hearings, under the terms of a verbal contract. Interstate Employes Receive 10% Raises Houston, Oct. 26. — A salary increase from 10 to 25 per cent has been given about 30 employes of Interstate (Continued on page 3)