Motion Picture Daily (Oct-Dec 1936)

The Leading Motioi Picture Industry MOTION PICTURE DAILY Alert, Intelligent the Industry In All Branches VOL. 40. NO. 126 NEW YORK, FRIDAY, NOVEMBER 27, 1936 TEN CENTS Paramount's Quarter Net $2,013,764 Gain Over 1st 6 Months; Applied to Surplus Net income of $2,013,764 is reported by Paramount for the third quarter and this sum has been transferred to surplus. Operating earnings before provision for undistributed earnings tax, but after provision for estimated normal income tax and after applying $200,000 of the inventory reserve set up Dec. 28, 1935, were $1,609,224. To this sum was added $695,787 in the form of dividends from non-consolidated subsidiaries and $14,503 from foreign exchange adjustments, making the total credited to income $2,319,514. Interest of $357,725 on debentures of Paramount Pictures, Inc., was deducted, leaving $1,961,789 as the income from operations for the quarter. This was increased by $51,975, a profit on the purchase of debentures of Paramount Pictures. In the first quarter $718,921.80 was transferred to surplus, after applying $800,000 of the inventory reserve, and in the second quarter a loss of $476,000 was transferred to surplus after applying $800,000 of the inventory reserve. A note attached to the report reads : "Of the excess costs of certain (.Continued on page 17) "Romeo" at $198,772 In Run of 14 Weeks Approximately $198,772 was grossed by "Romeo and Juliet" in the 14-week run at two-a-day prices at the Astor. Opening Aug. 20, the picture held to better than $10,000 a week until Nov. 1, when the tally tapered to $8,900. For the first four days the take was $12,150; the last two days, $1,375. Before the opening and during the first few weeks after (Continued on page 18) Film Concessions Reported in Italy Italian restrictions on the importation of American films to that country have been eliminated entirely and the curbs on the withdrawal by American film companies of their Italian credits have been considerably lessened, the Associated Press reported from Rome on Wednesday. At M.P.P.D.A. headquarters here it was said that no confirmation of the (Continued on page 18) Separate Film Conference Is Capital Plan Aim to State Problems Of the Industry A separate meeting of industry representatives is planned by the National Council for Industrial Progress at Washington on Dec. 10 and 11 at which film and theatre executives will be given an opportunity to advise Administration officials of ways in which Government can cooperate in making possible wage and hour and trade practice provisions, it is learned. Indications are that notices of the meeting will be sent out to company heads and all trade organizations from Washington within the next few days. The meeting will be held at the same time as the sessions for general industries which were called earlier by Major George L. Berry, the Administration's industrial coordinator, but will be held entirely apart from (Continued on page 18) Ostrer West-Bound For Schenck Talks Isidore Ostrer, president of G. B., left for the coast by train Wednesday to confer with Joseph M. Schenck and Sidney R. Kent at Palm Springs. He is expected to be gone a fortnight. A. C. Blumenthal, who has been playing an active part in the negotiations by Loew's and Twentieth CenturyFox, also left Wednesday for Cali (Continued on page 17) The Authority Picturing in one sequence of its latest issue the development of the Federal Theatre Project, the March of Time points to the prospect of Federal theatre units going into picture houses, and cites as its authority Motion Picture Daily, using the paper's running head on the screen, and the story published Nov. 17, which was headed, "Federal-NBC Units to Use Film Houses." Universal in Music Tieup With Robbins Universal on Wednesday concluded a 20-year arrangement with Robbins Music Corp. and Leo Feist, Inc., whereby the catalogues of both Robbins and Feist will be available for use in Universal pictures. The contract, which was negotiated over a period of six months, was signed by R. H. Cochrane, president, for Universal, and J. J. Robbins, head of Robbins, for the two music publishing companies. It is said to be the first contract of its kind ever entered into by Universal. In connection with the arrangement, Universal has organized a new subsidiary, Universal Music Corp. Its officers are Cochrane, president ; J. Cheever Cowdin, Universal's board chairman, vice-president ; Willard S. (Continued on page 17) Picks "Ziegfeld" as Best In '36 Over Natl Network "The Great Ziegfeld" leads off the list of Elza Schallert's 10 best of the year which she will broadcast tonight at 10:45 P. M., E. S. T., on her regular program over the NBC-Blue. Mrs. Schallert is NBC's official commentator on Hollywood matters and her poll is an annual affair with her. The program is a sustainer. The remaining nine will be : "Mutiny on the Bounty"— M-G-M. "Story of Louis Pasteur" — Warners. "Little Lord Fauntleroy" — Selznick International -United Artists. "Mr. Deeds Goes to Town" — Columbia. "Romeo and Juliet"— M-G-M. "Anthony Adverse" — Warners. "My Man Godfrey" — Universal. "A Midsummer Night's Dream" — Warners. "These Three" — Goldwyn-United Artists. In addition, she will broadcast an (Continued on page 11) Additional Radio News on Page 11 20th-Fox for Cancellation, Conciliation Kent Offers Liberalized 10% Cuts to MPTOA Twentieth Century-Fox has subscribed to a liberalized 10 per cent cancellation privilege and full support of the national system of local conciliation boards, it was disclosed on Wednesday with the release of a communication from Sidney R. Kent, president, to Ed Kuykendall, M.P.T.O.A. president, which sets forth the distributor's position in reference to the 10-point trade practice program sponsored by the M.P.T.O.A. The reply is the second to be made by a national distributor, Universal having first defined its concessions on the program three weeks ago. Twentieth Century-Fox offers no change in its policy on collection of the score charge, which, Kent's letter states, will continue to be based on "individual policy" as in the past. A flat refusal to refrain from demanding preferred playing time for percentage pictures is set forth in the letter and no change in the company's policy of selling short subjects and features on a related percentage of playing time is offered. In addition, Kent's letter offers no encouragement for the setting up of uniform protection and clearance schedules and casts doubt upon the legality of the M.P.T.O.A.'s (Continued on page 17) Kuykendall Calls Kent Reply "Step" Twentieth Century-Fox's response to the M.P.T.O.A.'s 10-point trade practice program was described as a "definite step in the right direction" and one which "will afford immediate benefits to independent exhibitors," in a letter from Ed Kuykendall, M.P.T.O.A. president, accompanying a copy of the distributor's statement. Kuykendall's letter intimated some (Continued on page 17) "Lloyds of London" Premiere at Astor To the accompaniment of popping flashlights and popping eyes, all directed at individual celebrities which helped to swell an overflow audience, "Lloyds of London" opened Thanksgiving Eve at the Astor. The show lasted two hours and three minutes. Among those who witnessed the (Continued on page 17)