Motion Picture Daily (Jan-Mar 1936)

Thursday, January 2, 1936 ViOTION PICTURE DAILY II i Year Brought Shifts and Changes November , Nov. 1 — Herman Starr at St. Louis, denies ! charges of threats made by witnesses. ' Warner official supported in his stand by ' Gradwell Sears. Paramount renews theatre contract with George W. Trendle for Detroit. Nov, 2 — Universal gives option to buy in financing deal with Standard Capital and C. R. Rogers. Option date to run out Feb. 1. Warners and Paramount finish their defense in St. Louis. Nov. 4 — St. Louis jury may get case within 10 days. Defense ends with RKO tomorrow. \'ov. 5 — New England exhibitors file 10 new anti-trust suits. Morse and Rothenberg circuit asks $1,000,000 from major companies. Nov. 6 — Defense rests in St. Louis as Ned Depinet and C. E. Smith testify. Philadelphia leads the way in voting for Sunday films in Pennsylvania. Nov. 7 — C. R. Rogers not to join Universal unless option is exercised. Report that Standard Capital has already acted is denied. tNov. 8 — Leo Spitz, Chicago lawyer and I former power in Paramount, elected presiI dent of RKO; M. H. Aylesworth becomes 1 board chairman as David Sarnoff resigns. |Vot/. 9 — Summations in the St. Louis case I finished. Jury to be charged Monday and I verdict expected then. In New York, I United Artists finishes arguments on city 1 sales tax. fNov. 11 — Standard Capital not to develop I film interests now beyond possible Universal buy but may do so later, says J. Cheever Cowdin. Vov. 12 — St. Louis jury acquits defendants in anti-trust case. H. M. Warner, Gradwell Sears, Herman Starr, Ned E. Depinet, George J. Schaefer and Warners, Paramount and RKO freed after the jury deliberates 34 minutes. Nov. 13 — Defeat at St. Louis stirs Government to new study; begins survey of other cases to make them impregnable. In St. Louis defense seeks to disqualify Judge Moore and seeks to hold injunction > hearing in equity case before another I judge. <lVov. 14 — -Philadelphia argues about value | of Sunday shows. Small spots uncerf tain; circuits are pleased. Expected in 1 St. Louis Judge Moore will accept subp stitution. INov. 15 — Joseph M. Schenck now controls ■ new Fox Met. Through United Artists [Judge Bondy Signs jRKO-RCA-M.H.Pact {Continued from page 1) ! participation of $1,050,000 then is payable to Rockefeller Center, after which a second joint payment of $36,000 per year is made to RKO and RCA to be applied to retirement of RCA's advances of working capital for the Music Hall during 1933 when it was still being operated by RKO. Thereafter, Rockefeller Center is entitled to an additional $150,000 a^ rent and if funds then remain over operating costs a first $300,000 is divided on the basis of 60 per cent to Rockefeller Center and 40 per cent to RKO and RCA, and a second $300,000 would be divided 50 per cent to Rockefeller Center and 50 per cent to RKO and RCA. The terms of the extension are 50 per cent more than those of the original agreement which was made for one year. No split-up of Music Hall receipts was made at the end of the first year of the agreement despite the fact that earnings were more than sufficient to pay Rockefeller Center its initial $700,000 rent participation. Without a split-up and with the extension of the agreement for a total of an additional six months, all participation terms were automatically increased by one-half. No split-up can be made now until Theatre Circuit he buys remaining 50 per cent. Leo Spitz formally succeeds M. H. Aylesworth as RKO president. Aylesworth now chairman of board. Nov. 16 — Paul M. Lazur and Herbert Bayard Swope resign from the RKO board. Further shifts seen. Justice Dep't sees no halt in equity case in St. Louis. Will proceed despite loss of anti-trust case. Nov. 18 — New York City seeking a levy upon all film rentals. Skouras pool with Loew talked for Astoria and upper Broadway. Nov. 19 — Philadelphia jubilant over Sunday shows. Despite storm, over 200,000 attend first showings. Nov. 20 — Karl Hoblitzelle's operating agreement with Paramount extended to year's end. Distributors approve 2,000 foot reel except Universal. Effective date, April 1. Nov. 21 — Governor Davey assures Ohio I. T. O. three per cent tax will stay. This dispels fear of return of 12 per cent levy. New General Theatre Equipment plan gets court approval. Nov. 22 — Government marking time; eyeing equity case. The Department of Justice's future film course hinges on outcome in St. Louis. Warner-Ascap break seen as imminent. Nov. 23 — Warners will seek new deal or break with Ascap. Pittsburgh starts Sun day shows tomorrow. Nov. 25 — Balabans get seven year pact with Paramount. Operating deal includes percentages. Warners on black side of ledger. Net for fiscal year is $674,158. Nov. 26 — Allied's plan to produce far from set. Nov. 27— George J. Schaefer resigns at Paramount. Neil F. Agnew named successor. Schaefer's plans not set; theatre deal is off. Warners quit Ascap to deal independently. Will withdraw its 11 music subsidiaries Dec. 31. Nov. 29 — Neil F. Agnew to keep his sales post in his new position as Paramount vice-president. Board vacancy to be kept open. New drive on chance games in New York starts soon. Nov. 30 — I. A. T. S. E. puts ban on work with the IBEW; refuses to allow rival union in theatres. No action on Universal sale seen for month. December Dec. 2 — Jurisdictional Union fight threatens national theatre strike of operators. Chicago theatres close and reopen. Feb. 29 at the earliest. Indications are that none will be made until a settlement of Rockefeller Center's $8,207,000 claim against RKO has been agreed upon, at which time RKO's accrued participation in the Music Hall earnings would probably be applied as a discount against the claim. In the event RKO made new leases on the Music Hall and Center the claim could also be reduced by approximately $6,000,000. Under the second agreement RKO Service Corp. received approximately $1,500 per month for its management services for the Music Hall. The fee is based on a percentage of the average weekly gross receipts of the house. Sales Tax Added To Rentals Here {Continued from page 1) forts are being made by the city to assess the exchanges on the full amount of their film rental receipts from that date forward. As a result, it was said, the eight major exchanges here are incurring a possible liability to the city of approximately $16,000 a week. New Jersey exhibitors and others outside the city limits are preparing an independent protest against the Dec. 3 — I.A.T.S.E. ends strike moves pending an industry parley. It holds off until George Browne airs situation with company heads. Dec. 4 — I.A.T.S.E. seeks assurance on its men's status; wants protection against any discrimination in studios. Paramount to make 65 next year, says J. E. Otterson. Dec. 5 — M-G-M signs Felix F. Feist to new contract. He stays as general sales head. Legion of Decency films to be listed in one national list out of New York. Dec. 6 — Government said to have frowned on Atlas-Lehman move to buy Chase Bank's Twentieth Century-Fox holdings. Foreign plans of M-G-M not ready, says Arthur Loew. Production abroad stays as in the past, he says. Dec. 7 — Pathe's name may replace First Division. William Fox to face contempt of court charges on Dec. 13. Dec. 9 — RKO may take two Radio City houses again. Move part of the settlement of the Rockefeller claim. About 90 percent of New York theatres using chance games, including major and independent circuits. Dec. 10 — I.A.T.S.E. given closed shop and studio jurisdiction again. Strike averted. Ed Kuykendall, MPTOA head, demands cut in Ascap tax. Dec. 11 — Studio labor pact for five years signed. All crafts must have their I.A.T.S.E. cards by Jan. 1; I.B.E.W. influence wanes. Radio ban on Warner music studied. George Ormsby and W. A. Parker join Loew board. Dec. 12 — Exhibitors for new 2,000-foot reel. Theatre grosses hit new high in 30 key spots. Total, $1,766,910 for 30 cities. • Dec. 13 — Sydney S. Cohen, former nationally known exhibitor association leader, succumbs to heart attack. Quick action sought in St. Louis. Government presses for early hearing on equity case. Dec. 14 — Watterson R. Rothacker made head of Paramount studio. Ernst Lubitsch and Henry Herzbrun are associates. Equity case in St. Louis set for Jan. 6. Dec. 16 — I.A.T.S.E. seeks closed shop in east. Laboratory and studio control is aim. Dec. 17 — Exchanges ask for new hearings on city sales tax. Dec. 18 — Film company changes draw study of Sabath committee. Walter J. Hutchinson made foreign head for Fox; fills C. P. Sheehan's vacancy. assessment based on the grounds that they are obliged to receive their film from the New York exchanges because it is the only film service center in their territory. They will claim that this circumstance, entirely outside their control, should not make them liable for a purely local tax levied by the city of New York. The eight major exchanges here are continuing their fight against the application of the city sales tax to film rentals by uniting in opposition to the assessment already levied by the city against the United Artists' exchange revenue. This assessment, the only one made so far by the city, is being made a test case. Arguments against the application of the tax to film revenue have already been made by the exchanges before representatives of the city finance department, and a new hearing, based on additional arguments, has been set for Jan. 10. If the city continues to hold film rentals to be subject to the tax following this hearing appeals will be taken to the state courts. Meanwhile, all exhibitors serviced out of New York exchanges will have the two per cent tax added to their film bills from Jan. 1 on. "Boulder" New Title Hollywood, Jan. 1. — "Boulder Dam" has been picked as the new name for Warners' "Backfire." Dec. 19. — Radio men get warning upon use of music; flare-back of Warner-Ascap row. No I.B.E.W. men to be hired in new circuit theatres. Dec. 20 — Sam Briskin goes to Radio as head of production; Spitz to be president of picture company and J. R. MacDonough, vice-president. Optimism is keynote at annual Ampa Christmas party given for The Film Daily's Relief Fund at Astor. Ascap rates stay as is; publishers renew membership for five years. Distributors not to quit Mexico. Dec. 21 — Government vs. Ascap trial taken off the calendar. Future moves indefinite. Joseph D. Basson's election to Local 306 presidency said to be pushing union merger. Dec. 23 — Department of Justice says dropping of Ascap case is merely postponement. Legal battle on merger of New York unions seen. Dec. 24 — Expansion by the Minnesota Amusement Co., Paramount northwest subsidiary, planned. 20th Century-Fox closing with Chase for latter's stock in National Theatres and will become 100 per cent owner. Dec. 26 — RKO creditor claims cut to $2,618,198. Stipulations are subject to approval of court. Defense will ask for dismissal in St. Louis. Dec. 27 — Walter Vincent, exhibitor, made 'board chairman of Republic. John Golden named to Paramount directorate. Dec. 28 — Shirley Temple, box-office ace, independent exhibitors of America vote in Motion Picture Herald's ballot. Lenox Riley Lohr succeds M. H. Aylesworth as head of NBC; Aylesworth becomes vicechairman of board. Budd Rogers and Jack Fier to divide Republic sales. Dec. 30 — Government bulwarking its equity counsel for St. Louis; to have staff of eight. Exhibitors' national emergency committee to meet and take stand on music tax situation. J. P. Kennedy in RCA reorganization picture only as temporary assignment, he asserts. Dec. 31 — Warner music firms launch negotiations for individual deals with radio stations on use of their catalogue. Plans for theatres not yet completed. Karl Hoblitzelle's pact as Paramount theatre partner continues; parent company not exercising buy-back privilege. Louis M. Sagal, Poli circuit executive, dies. Pope Pius felicitates American bishops on progress in film betterment through Legion of Decency. "Informer" Top on N. Y. Critics' List (Continued from page 1) "39 Steps" and "The Man Who Knew Too Much." At the request of Covici, Friede the critics recommended "The Scoundrel" as the most readable script, an original by Ben Hecht and Charles MacArthur. Those voting were : Regina Crewe — American; Bland Johaneson — Mirror; Kate Cameron — Nezvs; Richard Watts — Herald-Tribune ; Leo Mishkin — Morning Telegraph; Andre Senwald — Times; Thornton Delehanty — Post; Rose Pelswick — Journal; William Boehnel — World-Telegram; Martin Dickstein — Brooklyn Eagle; Seymour Roman — Brooklyn TimesUnion. Eileen Creelman of The Sun refused to participate, she said, "because of the statement, constantly reiterated, that the group had been formed because of 'dissatisfaction with the Academy awards'. "Neither I nor The Sun have any quarrel with the Academy," she said, "and I see no purpose in an attempt, however obviously futile, to 'oust' it." Florida Theatre Burns Madison, Fla., Jan. 1. — The Ritz was destroyed by fire Dec. 28.