Motion Picture Daily (Oct-Dec 1934)

(Saturday, October 27, 1934 MOTION PICTURE DAILY Revamping of RKO Started, Court Is Told (Continued from page 1) lerences had been held and would ontinue. Judge Bondy said he had been ad,-ised recently that RKO had begun 0 show a profit for the first time in . long while and indicated that he greed with Spring in the latter's contention that the trustee should further a reorganization plan if the comliany's earnings continued their imirovement. Spring is counsel for S. L (Roxy) Rothafel, an RKO claimant in the amount of $250,000, and lor Charles R. Rogers Prod., a claim nt in the amount of $300,000. The hearing before Judge Bondy esterday was in connection with a etition for instructions from the court In consummating the agreement recently worked out with Consolidated Mlm Industries under which RKO is tiven until May, 1938, in which to 'etire $1,500,000 of secured notes outtanding. Prior to the agreement, ■<KO was obligated to retire the notes n Jan. 1, 1935, through five monthly ayments of $300,000 each, an obligaion which was described yesterday •y Carl Newton, of counsel for the rustee, as a "physical impossibility." Backed by $50,000,000 Collateral Pointing out that the $1,500,000 of otes outstanding are still secured by ollateral having a book value of $50,00,000 which was given to secure 1 original $6,000,000 obligation, udge Bondy suggested that RKO light make an appreciable saving on iterest by negotiating a $1,500,000 Dan "at four or five per cent" from bank and retiring the obligation at nee, using the present collateral as ecurity for the bank loan. "Any bank should be glad to make loan with such collateral as that," udge Bondy remarked. Newton told the court that the trusee's first step was to obtain an exension on the maturities and then to eek means of retiring the obligation i the manner suggested, as such a rocedure would not be prevented by ie present agreement with Consoliated. Judge Bondy then instructed ie trustee to proceed with negotiaons for a bank loan which would ermit immediate retirement of the 1,500,000 obligation and suggested lat in the meantime efforts be made 5 obtain a reduction from Consoliated on the six per cent interest ailed for in the agreement. Newton eplied that Consolidated had already een asked to make such a reduction nd had refused. Judge Bondy took ie agreement under consideration and i exnected to act on it within the ext few days. Concurrently with the making of ie present note agreement, Consolidated exercised a two-year option hich it held for handling 60 per ?nt of the RKO print work. MOTION PICTURE DAILYS HOLLYWOOD PREVIEW "Hell in the Heavens" {Fox) Hollywood, Oct. 26. — Dealing with the French flying squadron during the World War, this one is a good attraction, supplying plenty of dramatic thrills and spine tickling air shots. The picture packs enough tense action to hold audiences that like this type, despite its story inconsistencies. Warner Baxter becomes commander of his squadron when his chief is killed by The Baron, a German ace. The story thread exploits the individual, private fears of the squadron members, consisting of Russell Hardie, Ralph Morgan, William Stack, J. Carroll Naish, Arno Frey and Rudolph Ament, all of whom dream of their fears at night but fight fearlessly in the air during the day. Conchita Montenegro, only girl in the cast, furnishes the romance by being in love with Baxter. The comedy interest is adequately upheld by Herbert Mundin and Vince Barnett. The climactic windup finds Baxter accepting the challenge from The Baron. Both crash in mid-air but recover to drink a toast to each other's courage. Baxter and Miss Montenegro head for a marriage license. John Blystone's direction is sympathetic and vital. The photography by Bert Glennon is extraordinary. Byron Morgan and Ted Parson did the script. The cast portrayals are all good. The production should hold up well with enterprising exploitation. Previewed without production code seal. Running time, 80 minutes. Looking 'Em Over lam Nelson Back on Job Hollywood. Oct. 26.— Sam Nelson, olumbia production manager, is back : his desk after two months' abnce during which he recovered from nervous breakdown. "That's Gratitude" {Columbia) Here is a good, clean comedy. Based on the Frank Craven play produced on Broadway by John Golden several seasons ago, it is something that will keep the entire family in happy mood. The story it tells is not exactly new, but it is embroidered with all those little details of human character that it seems immensely refreshing. No straining for comic effects here, no striving after the belly laugh, but humor that is genuine and unaffected and that spreads a glow of warmth over an audience. Homey comedy best describes it. Craven plays the chief role as he did in the stage production. He is a "legit" producer with a bad streak of luck. On tour he makes himself of assistance to Arthur Byron, a small-town business man in the grip of a stomach attack. When the show folds up he finds a haven at the Byron home. His host and his wife (Helen Ware) are sorely annoyed when Craven overstays his welcome. When he finally takes his leave he takes with him the ugly duckling daughter of the house (Sheila Man ners), who has stage aspirations backed by real talent as a singer. In New York plastic surgery transforms the ugly duckling into a ravishing beauty, assuring the girl of success. Playing a one-night stand in her home town, the young woman has the satisfaction of being welcomed with a fuss by the very people who once wouldn't look at her twice. At the end she finds her supreme happiness by eloping with the leading man (John Buckler). Craven also adapted and directed. He has done a splendid job of it. Paired with Byron he provides some first-class fun. Also in the cast are Mary Carlisle and Charles Sabin. Every member of the cast gives a good account of himself. Code seal No. 162. Running time, 64 minutes. Fox Wins New Move in Probe Of Theatre Co. (Continued from page 1) others brought about the receivership as part of a conspiracy against him. He says that he personally guaranteed a payment of $1,000,000 as part of the purchase price on the Roxy theatre in 1929. The house was acquired by Fox Theatres for $2,930,440. Fox's guarantee covered the last three installments, he says, and he is now being sued for the $1,000,000 by the Chicago Title and Trust Co., to which the guarantee was assigned. Fox told the court he sold his controlling interest in Fox Theatres and that he came under control of Chase National. The receivership and default which followed the sale were part of a conspiracy against him, he says. "The Silver Bullet" {Hollywood) "The Silver Bullet," a Tom Tyler western, has little to excite audiences past the childhood stage. It is quite routine in every department. That old standby of the western picture, the Jekyll-Hyde town banker, is called upon again to provide the villainy. Tyler, in becoming the town's new sheriff, inherits a nice chunk of trouble. The fellow who runs the bank is using his position of trust to cover up his activities as the head of a gang of outlaws. When through a ruse they get Tyler to free one of their number, the brand-new sheriff has a lot of explaining to do. To clear himself of the suspicion of being one of the outfit, he (Continued on page 4) Mermaid Loses Suit To General Talking (Continued from page 1) reproducer after having made a number of payments and sued General Talking for return of the money. General Talking filed a counter claim for the balance. The case was tried this week before Justice Bonynge in the Suprerne Court, Brooklyn. A jury awarded General Talking $3,400. Ephraim Berliner of Zeiger & Berliner, tried the case for General Talking. Interstate Employes Receive 10% Raises (Continued from page 1) Theaters, Inc., of Texas, following an announcement by R. J. O'Donnell, general manager, that receipts in the Texas theatres are 10 per cent above those of last season. Engineers received the largest increase. All cashiers, seven engineers, three assistant managers, and some 15 other employes who have been in service for more than a year, shared in the raise. The raise for the operators is retroactive to Sept. 1, in accordance with their union agreement. Say Exchanges Push Texas Scale Boosts (Continued from page 1) I) aily, according to John Adams, secretary to R. J. O'Donnell of Interstate. Both Karl Hoblitzelle and O'Donnell, his general manager, are out of town. Cole said that Interstate was insisting that product it plays at 40 cents top or better cannot play subsequent runs under 25 cents. Reopen Cincy Terminal Cincinnati, Oct. 26. — The Terminal, 208-seat house, located in the Union Terminal Station, which recently went dark, is being reopened by Harry Yutsi as a subsequent run spot on a grind basis. The house previously was operated by Willis Vance, president Ohio Valley Independent Exhibitors' League, who also has the Latonia, at Latonia, Ky., across the river from here.