Motion Picture Daily (Jul-Sep 1935)

Motid Picture Industry MOTION PICTURE DAILY VOL. 38. NO. 27 NEW YORK, THURSDAY, AUGUST 1, 1935 TEN CENTS New Hammond Sound Device Nearly Ready Automatic Variation of Tone Is Objective By M. B. ANGIER Gloucester, Mass., July 31. — Automatic variation of sound to make it nearer perfection than anything yet achieved is the aim of a device upon which John Hays Hammond, Jr., is working at his estate here. He calls it a "Dynamic Multiplier System." When it has reached its ultimate development, he hopes, it will be a small device that can be attached to a reproducer. For exhibitors using small sized units the price may not be more than $15. First units to be put out, however, will be for the more expensive machines. Hammond has been working on the device for about seven years. He has 18 patents and expects the total to reach 30. He aims to apply the improvement to both recording and re (Continued on page 7) Detroit First Runs To Increase Scales Detroit, July 31. — Local first runs are expected to boost their admission prices approximately 50 per cent on or about Sept. 15. Definite announcement of the raise has not been made, but Motion Picture Daily learned today that plans are under way to put the increase into effect as soon as the warm weather is over. This would mean that the Michigan, Fox, United Artists, now charging 55 cents, would go to 75 cents, while the State, Adams and Fisher would raise from 40 cents top to 55 cents. A move is on foot among subsequent runs to hike their prices when the big houses boost theirs. Say Bank Is Asking $80,000 House Rent City Bank Farmers Trust Co. is understood asking an annual rental of $80,000 for the new theatre which will replace the Criterion and Loew's New York. Both Loew's and RKO have turned down offers for the new house. A syndicate headed by Sherman Krellberg, Joseph Plunkett and Myron Robinson is negotiating for the house. This group recently leased the Astor from the receivers and will reopen the house with "The Crusades" on a two-a-day policy on Aug. 21. Independents Join Here To Fight Major Circuits Laemmle Again Denies Any Move To Sell His Control of Universal Hollywood, July 31. — Revived reports that Carl Laemmle was about to sell control of Universal to "another major film company" today were again scotched when Laemmle declared he had turned down the most recent of five offers. Local reports credit the latter day bid to Warners acting through Charles R. Rogers, who vehemently denies his alleged role as "go-between" and insists he knows nothing about any such transaction. On the other hand, Laemmle admits he had been approached again with "an offer of tempting millions," but that he rejected it emphatically. "I have been active in this business longer than any of my competitors and I admit being sentimental about it," he declared. It is understood Rogers was slated for an important production post if the deal was closed. Currently, he is a producer for Paramount. Fox Quarterly Net Is Up to $1,355,781 Fox Film Corp. reports a consolidated net profit for the 26 weeks ending June 29, after all charges including Federal income tax, of $1,355,781. This compares with a net for the same period last year of $1,199,241. For the quarter ending June 29, the net after all charges including Federal income taxes, was $738,974, compared with a first quarter profit of $616,806, and a profit of $393,865 for the second quarter of 1934. This amounts to 55 cents per share (Continued on page 18) Pathe Trades Big Block of Du Pont Stock Pathe yesterday sold to E. I. Du Pont de Nemours Corp. 1,400 shares of the capital stock of Du Pont Film Mfg. Corp. at a price of approximately $1,140 per share. The sale reduces Pathe's Du Pont stock holdings to 3,500 shares, representing a 35 per cent interest in Du Pont as compared with the 49 per cent interest previously held. The sum of $1,500,000 of the $1,596,000 proceeds from the sale will be used by Pathe for reduction of a $2,000,000 loan from Bankers Trust Co., (Continued on page 18) Senators to Probe Into Bankruptcy of Paramount Washington, July 31. — Paramount reorganization, yesterday discussed by Representative Sabath of Illinois in a speech in the House, today was spotlighted in the Senate with announcement by Senator McAdoo of California that the special committee investigating bankruptcies, of which he is chairman, will make a study of the matter in New York in Decem By CLARENCE LINZ ber. While it has been generally expected that both House and Senate special committees would dig into the Paramount reorganization, definite plans had not heretofore been divulged. Senator McAdoo will take his committee to Los Angeles in November for a continuance of studies of oil (Continued on page 18) Form 72-Theatre Circuit; 60 Other Operators Study Project By BILL ORNSTEIN Initial moves by independents to buck Loew's, RKO and Warners in Greater New York took place yesterday at a meeting of the I.T.O.A. at the Astor when Milton C. Weisman, attorney for the unit, announced the formation of Independent Theatre Circuit, Inc. Approximately 72 theatres signed up at the session and operators of more than 60 houses asked for additional time to consider the plan. Weisman estimated that exhibitors signing have pledged $100,000, in return for which stock in the new company will be given. Under the pooling plan each theatre will receive an income for the next three years equal to the average year's earnings for the past two years. With the turning over of the properties are options by the newly formed company to take over the houses for an additional four years with a guaranteed income of four times the average earnings. Where theatres have been losing money, the circuit will operate on a (Continued on page 2) Forty Seek Trade Practice Rulings Washington, July 31. — Revealing that approximately 40 applications for trade practice agreements are now pending, the Federal Trade Commission today made public an explanation of the manner in which it will classify the rules to be incorporated in voluntary codes. As in the past, the commission will classify such rules in two groups. "The unfair trade practices which are embraced in Group 1 rules are (Continued on page 2) Accountants Study Fox for Committee Accountants employed by the Fox stockholders' committee of which L. T. Pidwell is chairman are scheduled to make a preliminary report to the committee late today on the financial aspects of the proposed Twentieth Century-Fox merger. It was stated by Henry L. Sperling, attorney for (Continued on page 18)