Motion Picture Daily (Oct-Dec 1936)

MOTION PICTURE DAILY Wednesday, October 21, 1936 Mexico Names New National Censor Board {Continued from page 1) here will be increased to 66 this fall with the opening of the Encanto, a new 2,500-seat theatre which will be modernly equipped. A second run house, it will be operated by Jose Echeverria & Co., which owns a circuit of seven local theatres. Other new houses are planned here. Local exhibitors are receiving visits from inspectors of the Ministry of Finance who are seeking to establish the daily average patronage total, as a basis for fixing tax rates for next year. These inspectors are in addition to the regular ministry inspectors who are on hand daily to check on box-office returns. Exhibitors are required to pay the wages of these permanent inspectors, ranging from $1.75 to $2.50 a day, depending on the size of the house. Canada's New Radio Setup Is Complete (Continued from page 1) Oxford as a Rhodes Scholar when he enlisted for service in the World War. Later he became a newspaperman and joined the British Broadcasting Co. in 1922, continuing with that organization until his appointment to the Canadian corporation, the board of governors of which includes N. L. Nathanson. The announced policy of Major Murray was that the Canadian corporation would provide the best available programs from all sources, including the United States and England, that were in a form acceptable to the Canadian people. Murray, who will have his offices in Ottawa, will proceed shortly to Winnipeg to confer with W. L. Brockington, chairman of th& new board of governors. New Theatre Coupon Company Is Formed Max G. Felder, former exhibitor, has organized Theatre United Profit Sharing Corp., which will distribute coupons to theatres on the same plan used by United and Schulte stores. Approximately 20 theatres have been lined up for the plan, which provides for the distribution of coupons to patrons redeemable at any of the United Profit Sharing offices. The coupons will be the same size and colors as those given out at the cigar stores and other corporations, such as General Foods, Acker, Merrall & Condit, Wrigley's, National Grocers, Baker's Chocolate and Peter Pan Dry Cleaning stores. Felder is president of the company, which has temporary offices in the Paramount Bldg. Rugoff & Becker in Deal Rugoff & Becker yesterday were reported dickering to take over the Mermaid in Brooklyn. The Rose on W. 102nd St. will be demolished and an apartment will replace the theatre. Formerly known as the Edison, the Windsor at W. Orange, N. J., will be reopened Oct. 23. Sale Tax Case Appeal Is Off ToNextMonth (Continued from page 1) counsel's declaration theatres located outside the city ceased remitting the tax a month ago. Distributors had been collecting the tax pending the outcome of their appeal, and the funds were being set aside to be repaid to exhibitors in the event the courts ultimately hold that the city cannot tax film rentals. More than $3,000,000 is estimated to be involved in the attempt to apply the tax to film rentals up to this time. RKO Joins Tax Appeal Albany, Oct. 20.— The N. Y. Court of Appeals today granted permission to RKO Distributing Corp. and KeithAlbee-Orpheum Corp. to file briefs as friends of the court in connection with United Artists' appeal from the ruling giving the City of New York the right to assess a sales tax against film rentals. Carriers to Set Own Distribution System (Continued from page 1) film companies. The resolution was adopted unanimously. Speakers at today's meeting included Theodore V. Rogers, president of the American Trucking Ass'n; John V. Lawrence, general manager of the same organization, and J. L. Rogers, director of the motor carrier bureau of the Interstate Commerce Commission. In general discussion during the day was the Motor Carrier Act and its connection with the industry as regards the pickup and distribution of films. The organization will hold its final session tomorrow. Ohio Preferred Date Test Due on Nov. 20 (Continued from page 1) Robert R. Nevin and Mell G. Underwood, will preside. The preferred playing time bill was passed by the Legislature, March 20, 1935, and automatically became a law 90 days thereafter without Governor Davey's signature, the Attorney General having meanwhile declared the act unconstitutional. It has not been enforced to date. The law provides a penalty of not less than $25 nor more than $300 for the first violation, and not less than $300 nor more than $500 for each subsequent violation, with an additional penalty of revocation ot license. Edits British Reel London, Oct. 12— G. T. Cummins, previouslv a London editor, has been appointed by J. C. Graham to be editor and general manager of British Paramount News. Retitle Columbia Film Hollywood, Oct. 20. — Columbia has changed the title of "Ladv of New York" to "Counterfeit Lady." "Naughty" Bette London, Oct. 20. — Informed at a seashore resort near Brighton that Warners had obtained an injunction restraining her from appearing in England, Bette Davis described her defeat in court as a "real sock in the teeth," and said: "It seems that I, at my own expense, have provided an object lesson for other 'naughty young ladies.' I suppose I have been made an example." The adjective was used to describe her during the hearing of the contract case. "I've got to think things over a bit now," she said. Quick Action on RKO Hits Setback (Continued from page 1) some time next week. Others, however, indicated less optimism and declined to hazard a guess of any kind. With reliable information lacking which would explain the newly encountered delay in presenting the plan several unofficial explanations were advanced. One was that factors in the reorganization who have consistently opposed presenting the plan while it is still incomplete in several important phases succeeded in prevailing over those who have been urging that a plan be brought out immediately and its final provisions left to be resolved bv the court, as would be done ultimately in any event. This procedure apparently would leave the treatment of the Rockefeller Center claim of $9,100,000 against RKO to future negotiation outside the plan. Effect of Stock Gains Seen The rapidly increasing earnings of RKO which are being reflected in the market value of its stock are said to be a factor in the current demand for an immediate presentation of a plan. A sharp rise in the market value of the stock could complicate the plan's provisions for treatment of stockholders which were shaped some time ago when the company's earnings were less favorable, it was said. The same consideration applies in lesser degree to any creditors who are designated to receive common stock of the new RKO company in settlement of their claims. Tillton Buys Share In Republic Midwest Kansas City, Oct. 20. — Elmer Tillton, branch manager for Warners at Des Moines, has resigned, to take over the Omaha and Des Moines Republic-Midwest exchanges. Tillton has purchased the interest of Clarence A. Schultz, executive head of Commonwealth Theatres, Inc., Kansas City; of Robert F. Withers, manager of the Republic-Midwest exchange in Kansas City, and of other Schultz associates. The change in ownership transfers the executive powers of Schultz and Withers to Tillton, but the entire organization at Des Moines and Omaha will remain intact. Forrest Judd will continue as manager at Des Moines, and L. O. Ringler as manager at Omaha. Maxwell Paid £625,000 in Cash, Stock (Continued from page 1) shares of Metropolis and Bradford Trust. This statement is taken in informed quarters to indicate that the principals to the deal want to maintain the correct legal fiction while S. R. Kent, Twentieth Century-Fox head, is still unsatisfied. Kent has left for the Continent and his New York sailing date is uncertain. Opinions Divided On G.B. Finances (Continued from page 1) Maxwell influence is at work. The Telegraph said: "The mystery of the recent negotiations for the purchase of the Ostrer holdings (in G. B.) thickens. It appears arrangements have been made for the sale at 16 shillings of the 10-shilling shares, which receive no distribution. A clear explanation of the whole position is obviously desirable." The Morning Post declared, "The full report will be awaited for an explanation of the necessity of so large a special transfer to reserve." The directors had recommended placing £200,000 of a net profit of £347,021 after all charges, in a special reserve. No dividend was recommended, while seven per cent was paid during the previous year. Detailed Statement Asked The Financial Times in a leading article again calls for a full report in view of "the urgency of the position which preliminary figures suggest. Something more explicit than the reports and accounts issued in previous years is called for if the shareholders are to appreciate the true state of the company's affairs." The paper also declared that the adjustment of asset values is overdue and hinted that the £200,000 special reserve is for this purpose. It concludes with the insistance that the directors should carry out "a thorough purge of the accounts forthwith." Ticket Taxes Show Gain in September (Continued from page 1) 1936 high of $1,568,487, recorded in July, it was stated. For the first nine months of the current year, admission tax receipts of the Treasury totaled $12,859,943, about $1,564,000 over the $11,295,124 reported for the corresponding period in 1935. For the third quarter, ended with September, collections were $4,622,639 against $4,117,380 in the preceding quarter and $3,764,073 in the corresponding quarter last year. Hungarian Film to Open A new Hungarian film, "Be Good Unto Death," will be shown for an indefinite run at the Modern Playhouse, 81st St., and 3rd Ave., beginning Friday. The film is released here by Danubia Pictures.