Motion Picture Daily (Apr-Jun 1935)

MOTIOH PICTURE DAILY Clearance on Scale Basis, Topic in K.C. (Continued from page 1) and it was not known whether the lowscales adopted by three first runs would become permanent Clearance board members feel that a theatre with a lower than established price is not entitled to the protection in force for all first runs. if such an amendment is pushed, it would further delay adoption of a schedule, which has already engaged the attention of the drafters for aboui a year. In view of the many delays and unsuccessful attempts few exhibitors and film men, if any, anticipate that a plan will be forthcoming from Campi this season. The I. T. O. apparently has shelved attempts to obtain relief for subsequents, as it set out to do several weeks ago. It did gain its main point, however, when it obtained an agreement from Fox Midwest not to insist on protection over independents for the balance of this season. Thursday, April 4, 1935 Excelsior Springs Film Case Dropped Kansas City, April 3. — The Fox Beyer, Excelsior Springs, Mo., will not have to show cause why its film service should not be stopped, as it was ordered to do by the local grievance board. J. Erwin Dodson, Casino, same city, has withdrawn his complaint charging the Fox house has failed to abide by a cease and desist order on cash night. Coast Clearance to Be Aired April 11 (Continued from facie 1) ents who have not had a previous opportunity to protest certain provisions of the schedule will come on for the New York session. R. H. Cochrane is chairman of the Campi session today which will decide about 25 appeals tabled from last week's two-day session. A decision on appointment of impartial men as permanent chairmen of local boards is expected to be made today. Los Angeles, April 3. — The Southern California I.T.O. and Associated1 Exhibitors are holding meetings Thursday to decide on representatives to the April 11 hearing in New York. Orders New Complaints Filed Pittsburgh, April 3. — On the ground they were improperly filed, complaints on non-theatrical competition brought against the Pittsburgh Athletic Assn. and the Metropolitan Club by Harris Amusement Co., Loew's and Warner Bros. Circuit Management Corp. have been dismissed by the local grievance board, which stated distributors serving the respondents should have been named as co-defendants. Brandt Authorized To Agree on Scale To Give 24-Hour Service Standard Ticket Register Corp. is enlarging its quarters to furnish 24hour service for repairing and replacing ticket vending equipment, says George Mead, general manager. (Continued from page 1) based on the Brandt system, the first to be presented to Compliance Director Sol A. Rosenblatt. The I.T.O.A. head plans to leave for Washington within the next few days to confer with Rosenblatt. In addition to the labor discussions, the local film situation was aired. Leon Rosenblatt was appointed chairman of the code committee, Morris Fleischman head of entertainment, Bernard Barr, legislation; Louis Meyers, insurance; John Benas, film; Dave Weinstock, light and power. Each chairman will name his committee personnel. Fleischman was also appointed chairman of the board of directors. Benas was elected to his post by the membership in addition to his appointment by Brandt. Duals were not discussed, the matter being left for the general meeting on Tuesday. Robbin to Stay as Supply Men's Head J. Robbin is slated to be reelected president of the Independent Theatre Supply Dealers' Ass'n. at the fourday annual convention in Chicago starting June 15. The session will be held at the Edgewater Beach Hotel. All other officers are expected to be renamed. The code for theatre equipment firms will be the principal topic of discussion. Declares Missouri Bank Night Lottery St. Louis, April 3. — Attorney General Roy McKittrick has advised Prosecuting Attorney S. Spannagel of LaClede County that bank nights are in violation of the anti-lottery laws of Missouri. Spannagel had sought advice concerning a cash prize plan in use by the Lyric Theatre, Lebanon, on Fridav nights. Jack Hess Joins Mascot Hollywood, April 3.— Jack Hess, who recently resigned as manager of the Orpheum, San Diego, has been appointed publicity head of Mascot studios. Dave Flournoy, who has been pinch hitting at the desk since Earle Hampton resigned, will continue as Hess's assistant. Open Detroit Exchanges Detroit, April 3. — Jack Moss, former salesman, has opened an exchange to distribute Foy productions in this territory. Another new exchange will be opened this week by Al Dezel, who will distribute exploitation films. Rowland Brown to Para. Hollywood, April 3. — Rowland Brown, author of "By Any Other Name," which he recently sold to Paramount, has been signed to a contract. He is doing the adaptation of his own story. Para, to Sue Over Blumenthal Bonds (Continued from page 1) payment to Blumenthal was in viola tion of the rights of other general creditors of Paramount. Details of the Blumenthal settlement were brought out by Attorneys Saul E. Rogers and Samuel Zirn, representing Paramount bondholders, during examinations of Ralph A. Kohn, former Paramount treasurer, and Austin C. Keough, Paramount general counsel, before the late Referee Henry K. Davis in September 1933. It was revealed then that the settlement had been made after Blumenthal had instituted an action to have r'aramount's 1932 credit transaction with 12 banks set aside and to have Film Productions Corp. dissolved. The latter company was organized to take title to negatives which were pledged as security for the new bank credit. At the time of the settlement details of the case were kept confidential and records of testimony were removed from the court by mutual consent. This was done, it was said, tc prevent other bondholders from instituting similar actions. Testimony given in the examinations before Davis was that Blumenthal held 25 $1,000 bonds, the market value of which at the time of the settlement was about $7,500. It was stated that Blumenthal was paid $25,000, the face amount of the bonds, and that the $11,000 balance was to go to Nathan Burkan, Blumenthal's attorney. Cravath, de Gersdorff, Swaine & Wood, special counsel for Paramount, represented the company in the Blumenthal action. Variety Club Gets Under Way in Omaha Omaha, April 3. — Variety Club is at last on its official way. At the first meeting every branch manager, theatre manager, film salesman and minor executive was in attendance. A committee which will bring in final organization plans at Saturday's luncheon is composed of : Evert R. Cummings, John J. Gillin, Jr., Harry Shumow and Roy Miller. James Rogers has been named temporary treasurer. Get Delay in Color Suit Sax Francisco, April 3. — Attorneys for Leon Douglas, who is suing Fox, Paramount and Walt Disney charging infringement of patents for the making of colored pictures, have obtained an extension to April 25 for the answering of 35 interrogatories filed by the Fox • attorneys. Douglas' attorneys were first given to Jan. 21 to answer the questions, then obtained an extension to March 25. "Black Fury" Approved The New York board of censors yesterday finally approved "BlackFury." The picture will open at the Strand next week. Will Probe Marathons Boston, April 3. — The Massachusetts House of Representatives yesterday adopted a petition already passed by the Senate for the investigation of marathon dance conditions. A committee will be appointed soon. Yacht Boys to Warners Warners have signed the Yacht Club Boys to a contract calling for their exclusive services for eight tworeel Vitaphone shorts and a feature. Confirmation Of Paramount Plan Expected (Continued from page 1) Morris L. Ernst, member of the Vanderlip debenture committee and representative of professional talent holding Paramount bonds. Attorney Louis M. Levy, said to represent Paramount stockholders, will also present objections to the board and may be joined by Samuel Zirn, Archibald Palmer and other attorneys representing small bondholder groups. However, the total claims against Paramount represented by the probable objectors are estimated to amount to less than $500,000, as compared with an estimated $30,000,000 of creditors claims which have assented to the plan in its entirety. Further discussions on the underwriting of the $6,400,000 of new Paramount stock subscription warrants were held yesterday by representatives of the larger creditor groups in the office of Alfred A. Cook, counsel for Paramount Publix and for the Paramount stockholders' committee. Again, no final decision was reached, although it is understood that the underwriting in all probability will be handled by several investment houses, including Kuhn, Loeb & Co., Hayden, Stone & Co. and several others. Only the lowest bidders for the underwriting are being given consideration, it was stated. Tenure of Office Discussed Discussions of the tenure of office of the proposed directors also were held, with indications given that the tentative agreement that two and three-year terms will be given H. A. Fortington, Stephen Callaghan, Floyd B. Odium and John Hertz, will remain as planned. Other one, two and three-year terms will be apportioned finally among the other 12 directors at a later date, it was said. Informal discussions of officers of the new company continue to reveal support for George J. Schaefer for the presidency, although significant backing for Adolph Zukor-and N. L. Nathanson is also in evidence. Any shift in creditor action on officers which left Zukor out of the presidency would probably result in his being made chairman of the board, according to sentiment now. The hearing today may not be concluded with the first session, it is generally believed. However, it is felt that tomorrow or Monday should see the plan finally confirmed in the event of any delay. Yoost Erpi Plea Delayed The petition of William Yoost for leave to intervene in the Paramount Publix reorganization proceedings for the purpose of entering objections to Paramount's proposed new domestic recording license agreements with Erpi was referred to Federal Judge Alfred C. Coxe when it came before Judge Henry W. Goddard for hearing yesterday. Judge Coxe is expected to act on the petition today. Pre-Release Dates Set According to Warners, 161 special pre-release key city engagements have been set on "Go Into Your Dance."