Motion Picture Daily (Oct-Dec 1936)

The Leading Motio Picture Industry MOTION PICTURE DAILY Alert, Intelligent the in All Branches VOL. 40. NO. 95 NEW YORK, WEDNESDAY, OCTOBER 21, 1936 TEN CENTS Sale Tax Case Appeal Is Off ToNextMonth Calendar Is Crowded and Other Delays Occur A hearing on the appeal which major distributors are taking from the decision that film rentals are subject to the city sales tax cannot be heard by the Court of Appeals at Albany for another month, it was indicated yesterday. The condition of the court's calendar and other unexpected delays in preparing final briefs have made it impossible to have the appeal noticed for argument during October, as was expected earlier. The city itself is appealing from that part of the Appellate Court decision which exempted film rentals paid to New York exchanges by theatres located outside the city limits from the sales tax. The corporation counsel's office recently advised New Jersey exhibitors who are served by local exchanges that, under the lower court's ruling, they need not pay the tax, but neglected to add that the city was appealing from that part of the decision and, if it was successful in this move, all exhibitors served by exchanges here would have to pay the tax. As a result of the corporation (Continued on page 5) Quick Action on RKO Hits Setback Prospects of shaping an RKO reorganization plan for filing with the U. S. District Court here this week faded yesterday despite sustained efforts by reorganization managers to make the step possible, it was learned from a reliable authority. The development, which was left unexplained, made factors in the reorganization reluctant to prophesy when the plan now could be made ready for court consideration. A few hold to the belief that the new delay will be brief and may permit filing of the plan (Continued on page 5) Carriers to Set Own Distribution System Chicago, Oct. 20.— The National Film Carriers' Ass'n, in session at the Palmer House here, today passed a resolution calling upon each film carrier to set up his own system of distribution similar to the Horlacher system now in use in Philadelphia. The system will be available to all (Continued on page 5) CEA May Seek Crown Aid In Overbuilding Situation London, Oct. 13. — With no official statement from the Kinematograph Renters' Society on its attitude towards the Cinematograph Exhibitors' Ass'n request for a conference on overbuilding, exhibitors are again showing signs of an intention to make the matter the subject of an appeal for Government help. It is unofficially understood that the Council of the K.R.S. is willing to meet the C.E.A. but only on condition that the conference is of an exploratory character and that distributors are not to be understood to have finally associated themselves with an attempt to find a trade solution to the overbuilding problem. A good deal will depend, it is said, on the extent to which exhibitors are able to prove that agreement has been reached with the circuits. There are grave doubts whether the latter are in agreement with the C.E.A. except on the broad principle of the necessity for some action being instituted to relieve the present situation. At a meeting of the Sussex branch of the C.E.A., Ken Nyman, leading spirit in the C.E.A. campaign on overbuilding, said, referring to the talks with the K.R.S. "If these efforts fail, the only real hope of a solution will lie in an approach for Government intervention." Canada's New Radio Setup Is Completed Ottawa, Oct. 20. — The organization of the new Canadian Broadcasting Corp., the Federal Government enterprise for the control of all broadcasting and licensing of studios and owners of receiving sets, has been completed by the arrival in Ottawa from England of Major W. E. Gladstone Murray to become general manager. Major Murray, who was born in British Columbia and is a graduate of McGill University, was attending (Continued on page 5) Chicago to License Projection Devices Chicago, Oct. 20. — Local exhibitors will have to get special permits on all projection equipment if they expect to use 2,000-foot reels, the Chicago Electrical Inspection Dept. stated today. As the new optical shutter, takeup and magazines allowing one-inch clearance are needed for the larger reels, all these devices must be approved before such reels are legal to use.. No (Continued on page 15) Merchant Again Grand Island, Neb., Oct. 20. — Carl Laemmle, Sr., visited here recently to inspect the Wolbach department store in which he has purchased an interest. Before entering the film industry, he was a merchant in Oshkosh, Wis. Mexico Names New National Censor Board By JAMES LOCKHART Mexico City, Oct. 20.— The appointment of a national censorship board of three members by the Ministry of the Interior is generally expected to be of real benefit, since it promises a unified and centralized viewing of all films for the first time. The national board will supplant the local board here and the censoring groups in a few other states and municipalities. For the most part reviewing has been done on a piecemeal basis, and although generally the judgment of the local board has been accepted throughout the country, there have been occasional conflicts which have resulted in good pictures being barred from profitable territories. El Universal, local newspaper, has urged the establishment of a code of censorship to guide the board to "prer vent the reviewing of films becoming a mere bureaucratic habit of the rubber stamp nature, or leaving it to the judgment of persons without culture or talent." * * * The number of houses in operation (Continued on page 5) Ticket Taxes Show Gain in September Washington, Oct. 20. — Registering a sharp increase, admission tax collections in September reached a total of $1,670,044, compared with $1,384,107 in August and $1,173,507 in September, 1935, it was made known tonight by the Bureau of Internal Revenue. The September collections were the highest in a long period, and were more than $100,000 over the previous (Continued on page 5) Maxwell Paid £625,000 in Cash, Stock Details of Gaumont Buy Are Made Public By BRUCE ALLAN London, Oct. 20. — John Maxwell, as head of Associated British Pictures, paid £325,000 cash and £300,000 in A. B. P. five-shilling ordinary shares for the Ostrers' "B" shares in Metropolis and Bradford Trust, holdins company for Gaumont British, it was made known today by the secretary of A. B. P. As a result of the transaction A. B. P. is now unable to carry out its promise to shareholders to allow them to subscribe for 1,800,000 ordinary shares at bonus rates, as these unissued shares are now earmarked for the purposes of the deal. The statement also indicated that the A. B. P. profit for the half year would be £150,000 more than last year. This confirms that the first half of the Ostrer deal has been completed, but a Gaunt-Gaumont statement tonight refers to reports that control had passed and said that the companies wished to make it clear that "all such statements were incorrect, as no such change had taken place in the voting position of Metropolis, and control remains as heretofore." The second part of the deal has not gone through, it was stated, and the Ostrers still hold their 5,100 "A" (Continued on page 5) Opinions Divided On G.B. Finances London, Oct. 20. — The financial editors of the daily newspapers here were divided in their comment this morning on the financial statement of Gaumont British, which was released yesterday. The Mail and the News Chronicle praised the return to conservative financing, intimating that the John (Continued on page 5) Ohio Preferred Date Test Due on Nov. 20 Columbus, Oct. 20. — Hearing of the case of RKO Distributing Corp. vs. John W. Bricker, attorney general, et al., seeking to invalidate the state statute making it unlawful to enforce preferred playing time, has been set for Nov. 20 in U. S. District Court here. Three judges, Florence E. Allen, (Continued on page 5)