Motion Picture Daily (Oct-Dec 1936)

Monday, November 23, 1936 MOTION PICTURE DAILY Maxwell Sets New Drive on U.S. Market {Continued from page 1) completed by the end of the year and that 30 are scheduled to be finished by the close of 1937. The majority of them, he said, will be for the American market, the company's production policy embodying the principle that all films will be aimed directly at the United States field except those which contain a particularly strong local British appeal, the production chief said. Mycroft is in continuous consultation with Budd Rogers of Alliance Films, American distributor for B. I. P., relative to American reactions on stories and stars scheduled for B. I. P. productions. It is understood that Maxwell's policy will be to use the G. B. distribution setup in the United States for the total increased output of G. B., B. I. P. and independents, with a rejection option attaching to the arrangement in New York. It is estimated that the films designed to reach the American market will range between a minimum of 30 and a maximum of SO each year, assuming that G. B. has 16 to 20 and the independents six to 12, in addition to the B. I. P. output. It has been ascertained definitely that Maxwell's policy includes the retention of the G. B. American distribution organization, increasing rather than lessening its activities. Form British Nat'l Here for Production (Continued from page 1) ducer, recently returned from England, where he was associated with Universal, has been named general manager and vice-president in charge of production, and Joseph R. Fliesler is secretary in charge of publicity and advertising. Major national distribution is planned for the Class A product intended by the company, with a budget of more than $1,000,000. Negotiations are now under way for stories, talent and a technical staff. The home office is in the RKO Building. Preferred bookings in England are said to be assured the company's product through British National Pictures. British National Pictures, headed by Lord Ragnor, was originally capitalized at more than $12,000,000. Its entry into the American field is said by the company to be on the basis of a "hands-off" policy with regard to production and distribution. Rank Reported Out Of 2 British Firms (Continued from page 1) preparing to invest more deeply in the latter proposition. Rank, with Lord Portal and C. M. Woolf, is also interested in General Film Distributors, Ltd., which, as reported, is developing a chain of from 400 to 500 theatres in a move designed to offset John Maxwell's combined exhibition power represented by Associated British Theatres and Gaumont British. RKO As Name To Continue In New Setup (Continued from page 1) at once, but, of course, will be designated in advance of the time for court approval of the reorganization plan. According to present indications the plan should not meet with any serious opposition and may have the court's approval by March 1. The agreement on the $9,100,000 Rockefeller Center claim which was reached last week eliminates the most serious potential opposition to a plan. It is the dominant item in the unsecured creditors classification and should go far toward obtaining the approval ot that group for the plan. The secured creditors and stockholders, dominated by Atlas, Lehman Bros, and RCA interests, are assumed to be in accord. The situation leaves only sundry independent creditors' groups, representing minority interests in every instance, as the potential sources of opposition. Among these are the Orpheum Circuit preferred stockholders, who recently retained Isidor J. Kresel, prominent attorney, to represent their interests, a move which, to those close to the reorganization, possesses great significance in the event the views of the Orpheum shareholders are not ameliorated. Independent stockholders' committees and the independent unsecured creditors' committee of which the Karl Hoblitzelle and U. S. Bank of Denver interests are the moving factors, are also seen as potential opposition. Joint Advisory Board Planned Indications on Saturday were that the plan would go to Federal Judge William Bondy today providing cor rected copies of the document were received from the printers in time. Although RKO will again partici pate in the operation of the Music Hall and Center under the provisions for treatment of the Rockefeller Center claim, W. G. Van Schmus is regarded as certain to continue as man aging director of the Music Hall. There will be set up, however, an advisory operating board comprised of both RKO and Rockefeller Center appointees which will furnish RKO with an important voice in picture policies for the Music Hall. RKO's participation in profits of the theatres is also placed upon a promising basis, particularly in the event that earnings improve to any significant extent. Fixed charges of the theatres, including rent payable to Rockefeller Center, may be shaved considerably under the new arrangements, according to report. Indications are that preferred and common stock, rather than debentures as at first reported, will be issued to Rockefeller Center in payment of its claim. The market value of the securities to be thus issued is variously estimated at from $4,500,000 to $6,000,000. Mexican Holiday Mexico City, Nov. 22.— Exhibitors in Mexico lost several thousand dollars as theatres were forced to close during the matinee Friday, the anniversary of the start of the 1910 social revolution. The labor unions forced the closing. It is the first time in years the anniversary has hit theatres, since they usually enjoy holiday business. mately $3,000,000. The development is the first result of the retention by the Orpheum stockholders of Isidor J. Kresel, prominent attorney, to represent their interests. Whether or not the litigation can be brought is still problematical, however, due to the fact that Marcus Heiman, Orpheum trustee, was directed .some time ago by Referee Oscar Ehrhorn to bring similar action against RKO and K-A-O. Heiman was prevented by lack of funds from carrying out the order and the $40,000 litigation fund subscribed by the shareholders will be used only on the condition that they be permitted to control the litigation. With Referee Ehrhorn's order still in existence no means have been devised yet of taking control of the litigation away from the trustee and giving it to the shareholders. The moves being undertaken by the Orpheum shareholders result from the failure of the RKO reorganization plan to make provision for their claims against RKO. Warners9 Net For Year Is 3,177,312 (Continued from page 1) operating profit of $1,031,315.96 reported for the corresponding quarter last year." Total assets are listed as $173,009,011.39. The deficit is reduced from $14,961,309.96 to $10,469,148.15. Good will is carried at $8,239,981.09. S.E.C. Reveals Chase 20th-Fox Stock Sale (Continued from page 1) York, was the beneficial owner of 185,563 shares of common stock. A July report for Charles L. Stillman, of Time, Inc., held for correction, disclosed the acquisition in that month by the Stillman Corp., through the acquisition of rights, of 6,667 shares of Grand National Films common, bringing its holdings to 10,000 shares. The report also showed that on July 6 the Stillman Corp. acquired 3,333 common rights and on July 27 disposed of them by exchange. A July report for Jack Cohn of Columbia showed the acquisition of 12 shares of Columbia Pictures common, the disposition of 3,779 common voting trust certificates and the acquisition by adjustment of 291 purchase warrants for voting trust certificates. QH MORE WARNER DAYS JZ^ TO CHRISTMAS Orpheum Holders Plan Fight Preferred stockholders of Orpheum Circuit have subscribed $40,000 to finance litigation against RKO and K-A-0 designed to set aside the 1933 transaction by which Orpheum assets were absorbed by Stadium Theatres for obligations amounting to approxi