Motion Picture Daily (Jan-Mar 1935)

The Leading Motto Picture Industry MOTION PICTURE DAILY Alert, Intelligent the In in All Branches VOL. 37. NO. 8 NEW YORK, THURSDAY, JANUARY 10, 1935 TEN CENTS Board Makeup Now a Hurdle To Para. Plan Two of Creditor Groups For Industry Men At least two important factions in the Paramount Publix reorganization are insisting upon industry men as members of the new board of directors and may withhold their formal approval of the plan until such men have been elected, it was learned yesterday. Whether these groups will carry their insistence on board representation as far as objecting to the plan itself at the resumed hearings before Federal Judge Alfred C. Coxe today, could not be ascertained last night. It is recalled, however, that Nathan Burkan, counsel for the merchandise creditors' committee, advised the court immediately prior to the last adjournment, Dec. 28, that he might have "plenty to say" about the plan "later on," and at that time asked an ad (Continued on page 8) SEC Probe of Para. Setup One of Many Washington, Jan. 9. — Investigation by the Securities and Exchange Commission of the Paramount reorganization plan is simply part of a general inquiry into corporate reorganizations being made under instructions from Congress, it was said here today. As part of its study the commission has sent questionnaires out to some (.Continued on page 8) Loew's 12-Week Net Is Up to $2f00h308 Loew's, Inc., net for the 12 weeks I ending Nov. 22 was $2,001,308 after I depreciation and taxes. This is an increase of $406,700 for the same period in 1933, and is equal to $14.64 per share of preferred and $1.23 per share on the common. In 1933 for the same quarter the preferred earnings were $11.53 per share and the common I earned 95 cents per share. Campi to Set 1935 Budget Total Today Campi today will approve the budget for 1935, which calls for $360,000, the same as in 1934. From March 1 to Jan. 1, expenses of Code Authority (Continued on page 8) Dependable film delivery by members of National Film Carriers, Inc. — Adv. Dual Ruling Soon Philadelphia, Jan. 9. — Decision on the Perelman action striking at the ban of dual features through riders in contracts of major distributors may be made public prior to the return to the city of Judge George A. Welsh, Federal jurist who conducted the trial but who is now on vacation until next month. The possibility exists that the judge will mail his decision and authorize publication while he continues on holiday. Charges Fox Units' Assets Were 'Gutted' The charge that Fox Metropolitan Playhouses and Fox Theatres Corp. became insolvent only because they .iad been "stripped of their assets and thoroughly 'gutted ," was made before Federal Judge Julian W. Mack yesterday by Milton C. Wei.s:nan, receiver of Fox Theatres,... "These properties," Weisman declared, "were all good, sound and valuable and could have met .all of their obligations. There is no question but that they were 'guttedi.' . Commissions amounting to $4,000,000 were (Continued on page 10) New York Lawyers Study Censor Bill Albany, Jan. 9— Nine. New York City lawyers, two upstate newspaper men, a Rochester school teacher and a professor at Vassar are on the Assembly committee on public relations (Continued on page 8) INDICTMENT TALK STIRS ST. LOUIS Federal Film Moves Delayed For St. Louis By BERTRAM F. LINZ : Washington, Jan. 9— No effort looking toward a Congressional investigation of the code' is expected until the results of the Department of Justice inquiry into the St. Louis product situation are made, known, it. was indicated today at the capitol. If the department secures indictments, it is considered likely there will be little discussion of the code situation until " the President's 'new recovery legislation is 'taken up for consideration. Although it has been reported a resolution calling for an inquiry' was to be introduced -in the Senate this week by Senator Borah of Idaho, it was. said at -his • office today no measure has yet . been prepared or even discussed, although it was pointed out (Continued on page 8) Committees Chosen For MPTOA Session \ New Orleans, Jan. 9. — Committees in charge of various phases of the M. P. -T. O. Aconvention to be held at the Roosevelt . February -25, 26, .27, 28, have been announced by. H. S. McLeod, general chairman, after conferences with Ed Kuykendall. The committees are : Entertainment, Frank Heidrich, chairman ; Warren Salles, Robert Blair, E. J. Myrick, A. J. Higginbotham, M. F. Barr; banquet sub-committee, Robert Blair, (Continued' on page 8) ' Hearing on Booth Scales for New York Set Back to Jan. 18 Washington, Jan. 9. — Postponement for one week of the hearing originally scheduled for Friday to discuss proposed New York booth scales was announced today by Deputy Administrator William P. Farnsworth. The hearing is now set for Jan. 18. The understanding in New York yesterday was that proposals on booth scales to prevail in New York were not in their final form despite formal announcement of the detailed schedule, calling for a minimum of 75 cents per hour, made several weeks ago from Washington. Reports Are Heard as Federal Grand Jury Probe Is Ended St. Louis, Jan. 9. — Indictments against some major companies and certain individuals are reported to have been asked today by the Department of Justice as the closing phase pi the Federal grand jury probe into the local booking situation. • Antitrust violations are charged, it' is said. A -report by the jury, is expected some time tomorrow. The investigation started as a probe of the first run booking situation, it is said, but broadened to take in many phases of production, distribution and exhibition, as a result of numerous complaints from independents. It is said that the inquiry became national in scope, and even' took in radio broadcasting problems . back as far as 1928. \ Russell Hardy, one of the special assistants of Attorney "General Curhmings, was one of the. witnesses before the Clarence Darrow review board ! _ -. . (Continued, on. page _8) . . . Texas Buying Case Drags Out All Day ; Overbuying charges by Rubin Frels against Jefferson Amusement Co. and J. G. Long of Texas turned into a complex affair yesterday as an appeal pommittee comprising Edward McEvoy of RKO Radio and Charles E. Casey of Century Circuit developed into an all-day session. Executive Secretary John C. Flinn sat on the committee in the absence of a Campi member to certify the fact. A decision handed down by the Dallas grievance board on Oct. 23, 1934, (Continued on page 8) Du-Art Sues 'U' on A Laboratory Deal Du-Art Film Laboratories, Inc., yesterday filed application in the New York Supreme Court for an injunction to compel Universal to continue its printing and laboratory work on the complainant's premises. It is alleged Universal leased the Du-Art plant and agreed to center its laboratory work on those premises and that, in anticipation of its $2,000,000 deal with Consolidated Film Industries, Inc., recently closed in Hollywood, the defendant is endeavoring (Continued on page 10)