Motion Picture Daily (Jul-Sep 1935)

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Tuesday, July 9, 1935 MOTION PICTURE DAILY 3 New Lincoln Trust Charge Hits Majors (.Continued from page 1) share basis, pursuant to the latter's program of harnessing the key Nebraska spots for exhibition of films and their control in this section, the petition says the other defendant film groups entered into conspiracy to furnish the organization with product. It is further claimed that the arrangement controlled 75 per cent of all the product and 90 per cent of the features, sending the bulk of the film to the five defendant houses and leaving the remainder for the four independents. Previous to L.T.C.'s entrance on the exhibition scene here, it was the practice to keep several houses closed, since the three plaintiff houses were under the L.T.C.'s control then and by this arrangement not all the available pictures could play, and practically no second runs were used. After refusing to pay rent on the three houses in 1932, the allegation reads, the houses were taken back by the landlords and immediately the assets of the Delaware corporation were transferred to the Nebraska corporation with a view to removing credit claims of the latter, according to the petition. When the organization was broken in April, 1934, and forced out of business, it had incurred $21,000 in debts, and valued the leases on the three houses at $100,000 for the Liberty; $200,000, Orpheum, and $130,000, Rialto. Seeking to recover the total amount of $451,000, tripled, as is provided in actions of this kind, $1,353,000 is the amount of suit. Former Attorney General Paul Good and City Attorney Loren Laughlin are appearing for the plaintiff. Clevelanders Talk Clearance Changes (Continued from page 1) that if the present seven-day protection between these classifications were increased to 14 days, the general tendency would be to boost the 15cent houses into the 20-cent classification. Nothing has been done about it outside discussion. One difficulty is that such a change opens the way for first runs to ask for a greater differential between them and the first run subsequents. Cleveland's present availability schedule is 35 days after first run, for Class A houses charging 25 cents; 56 days for Class B houses charging 20 cents; 63 days for Class C houses charging 15 cents and 100 days for Class D houses charging 10 cents. Film Center Loss Up Film Center Building reports a net loss of $25,344 for 1934 after expenses, taxes, interest, bad debts and other charges. This compares with a loss of $4,083 in 1933. Al Cook Dies on Coast Santa Monica, July 8. — Al Cook, star in the silent days, died here yesterday at the Santa Monica Hospital after a year's illness. He was 53. Plan Center As Long Run In Radio City (Continued from page 1) of absorbing pictures which the Music Hall either did not want to play or for which it could not find dates. The policy which the Music Hall has been pursuing generally calls for a cash payment to the distributor of $7,500 for each rejection, this to be applied against the deal secured by the distributor from another first run outlet, if any. As the proposal now stands, the Center would become the home of extended run pictures, the Music Hall, in turn, maintaining a policy of week stands only. This angle, however, is susceptible of change. If determined upon, the Center, therefore, will again swing back to its original policy. For almost a year "The Great Waltz," Max Gordon musical, believed financed originally by the Rockefellers, has been playing the house, thereby giving the "Music Hall run of the 6th Ave. field insofar as films enter into it. W. G. Van Schmus, now operating the Music Hall, is expected to run the Center as well. He could not be reached late yesterday for comment. Coast Independents Skeptical on Codes (Continued from page 1) Chotiner, president of the I.T.O.A., said. Chotiner pointed out that appeals for adjustments under the NRA code lay in New York for a year without action. "They told us we wouldn't have to buy definite quotas of short subjects, but we found out we had to buy them anyway. We're just as well off without a voluntary code," said Chotiner. The I.T.O.A. is now working on a zoning and clearance schedule of its own. Although F.W.C. officials would not be quoted on the subject, it was learned that the organization was definitely favorable toward a voluntary code and felt that the adoption of regulatory measures were necessary. Warner theatre men are passive, awaiting further developments. Local 306 to Vote On 2% Assessments (Continued from page 1) under the international's supervision, from Chicago where he is managing the Windy City local's affairs. There is considerable dissension between the unemployed members of Local 306, it is stated, which can only be adjusted at a general meeting of the organization. Several weeks ago the working card members were placed back on a five-day week and as a result of this move, it is expected the assessment fee will be increased in addition to the international's two per cent for the benefit of non-working members. Ezell, Thurman Arrive Claude Ezell and his attorney, Emmett Thurman, are in town from Dallas in connection with bank night. They will remain here until Thursday. Wall Street Warner Off on Big Board Net High Low Close Change Columbia, vtc .... 81 76A 79lA + A Consolidated AVs V/s V/s Consolidated, pfd. 1634 16 16 — V* Eastman 150^ 149J4 150*6 + Vs Eastman, pfd 157^ 157 A 157J4 + A Fox "A" 15J4 1SJ4 15J4 — Vs Loew's, Inc 43% 43*4 + 'A Loew's, Inc., pfd. .108 108 WA —A Paramount Publix AVs 4 VA Fathe Vs, Vs Vs. RKO 2A 2 2 — H Warner 4A 4 4 — Vs Warner, pfd 2SA 25A 2SA. —1 Technicolor Gains % on Curb Net High Low Close Change Technicolor 20 19 19V& + Vs Trans -Lux 2A 2A ZA Bond Market Irregular Net High Low Close Change General Theatre 6s '40 12 UVs 12 + Vs General Theatre 6s '40, ctf 12 12 + V* Loew's 6s '41 ww deb rights. .10354 10334 10334 -A Paramount B'way 5j4s '51 60?4 6034 6034 54 Paramount F. L. 6s '47 9534 95}4 9534 + A Paramount Publix SAs '50 97V& 97 97A Warner 6s '39 wd 66A 6534 6534 'A (Quotations as at close of July 8) 20th Century Sets First 8 With Fox (Continued from page 1) Lawrence Tibbett. It was made clear that the eight did not necessarily mean Darryl F. Zanuck will make only this total for 1935-36, the plan providing for others to be divulged "from time to time." Set to go, however, are these : "Metropolitan" from an original by Bess Meredyth and George Marion, Jr., with Richard Boleslawski directing. "The Man Who Broke the Bank at Monte Carlo," starring Ronald Colman. This is to be based on a Russian play with Nunnally Johnston handling the script and John Ford directing. "Sing, Governor, Sing" by Howard Smith and Johnston. Roy Del Ruth will direct the cast which will include Ann Dvorak, Fred Allen, Phil Baker, Paul Whiteman and his band, Ramona, the Yacht Club Boys and Rubinoff. _ "Message to Garcia," based on the story by Elbert Hubbard and the book by General Rowan. "Earthbound," by Basil King. "Snatched" by Kubec Glassman, author of "Public Enemy." "Shark Island," based on the life of Dr. Samuel Mudd, who innocently aided John Wilkes Booth on the night the latter assassinated Abraham Lincoln. "John Barleycorn" by Jack London. Zanuck starts production as soon as he returns to Hollywood which probably will be the end of this week. "Metropolitan" will be the first to go before the cameras, the starting date now being set for July 25. "The Man Who Broke the Bank at Monte Carlo" and "Sing, Governor, Sing" start the first week of August. Another session last night brought formal signaturing of the Century deal closer. The expectancy is the transaction will be signed and delivered today. Whatever the day, S. R. Kent, Joseph M. Schenck, Zanuck and William Goetz will leave at once for the coast. They will travel by air. Kent to Europe Later London, July 8. — The trade hears S. R. Kent will be over in September. Leave Asked To Appeal in Fox Met Case (Continued from page 1) appeal after Judge Mack yesterday granted the petition of the Fox Met trustee for authority to disaffirm the circuit's leases on the Palace at Bergenfield, and the Dumont, Dumont, N. J., both of which are owned by Layton. Levin said that his client opposed the Fox Met reorganization plan because of its alleged inequities to the interests of theatre landlords. As the Circuit Court has adjourned for the term it is doubtful whether any action can be had on the Layton application before October. In granting the Fox Met trustee permission to disaffirm the Layton leases Judge Mack, who leaves for a two and one-half months' European vacation tomorrow, stipulated that the Layton Company could file affidavits in opposition to his order with Federal Judge Francis G. Caffey, who could then reverse Judge Mack's ruling if the objections warranted it. It was testified that Fox Met had lost $70,069 on the Palace since the inception of the company's receivership and a comparable amount on the Dumont. Permission to disaffirm the lease on the Queen Anne, also in Jersey, was granted Fox Met without objections. A loss of $61,000 was reported for this house since the Fox Met receivership, slightly more than three years ago. Authority was granted for placing the Biltmore, Carlton, Stratford and Duffield into a new subsidiary company which would be permitted to cancel the leases on the first three in the event the new operating arrangement failed to correct losses now being sustained through them. Of four, the Duffield is the only one operating profitably. Disaffirming of the leases yesterday reduces Fox Met's theatre holdings to 81 houses, as compared with 145 at the inception of the receivership. Fox Hearing on Today A hearing on an application by the receiver of Fox Theatres Corp. to continue the receivership for another six months, which was scheduled for yesterday, was postponed until today by Federal Judge Martin T. Manton. SEC Arranging for More Para. Probes (Continued from page 1) will be John Hertz, who was chairman of the Paramount finance committee before the receivership and is now a member of the new board of directors. Paramount officials here said yesterday they had not yet been advised of a resumption of the SEC hearings on the company's reorganization which were begun in Washington and adjourned about 10 days ago. /. E. M. Meeting Today Boston, July 8. — The next meeting of the Independent Exhibitors of Massachusetts, Inc., local Allied affiliate, will be held at the organization's general offices here Tuesday.