Motion Picture Daily (Oct-Dec 1936)

The Leading Motio Picture Industry MOTION PICTURE DAILY Alert. Intelligent the in All Branches VOL. 40. NO. 135 NEW YORK, TUESDAY, DECEMBER 8, 1936 TEN CENTS Hays Pleased, He States, by Italy Accord Says Details Must Come From Ambassador Will H. Hays, arriving from Europe yesterday on the N ormandie , said that he was "immensely pleased" with the accord reached with the Italian Government concerning withdrawals of American film revenue from that country and the importation there of American pictures. Beyond stating that "an accord had been reached in principle," Hays declined to discuss the agreement, saying that details would have to be made public by Ambassador William Phillips at Rome, whom Hays credited with the success of the discussions. Italy had proposed a drastic limitation of imports of American films and a decree which would have retained in Italy two-thirds of the revenue of American film companies derived from that country, with additional limitations on the uses to which such credits might be put. Earlier reports from Italy indicated that no quota restrictions would be imposed and that approximately 50 per cent o the Italian revenue could be withdrawn without specific limitations on (.Continued on page 9) Goldwyn, Selznick, W anger Pool Stars Hollywood, Dec. 7. — Samuel Goldwyn, David 0. Selznick and Walter Wanger stated jointly and officially today that a drive for big name talent on a pooling basis will be started immediately. Each artist contracted will be guaranteed three pictures, doing one for each of the three producers. Adolphe Menjou is the first star signed. The new system will not conflict with present production schedules nor will it affect arrangements with talent now under contract. Radio A new national network springs into existence Dec. 29 when the Don Lee Central States and Iowa networks affiliate with Mutual. Details of this and other developments in the radio field on Page 4 Three Responses on 10-Poinit Plan Vary; Favor Local Boards The record to date of distributor action on the M.P.T.O.A.'s 10-point trade practice program follows: Nov. 7. — Universal issues the first reply, granting liberalized cancellation, elimination of the score charge, support for the establishment of local conciliation boards. Nov. 25.— 20th Century-Fox is second to respond. The company offers liberalized cancellation and support for the conciliation boards, but will not abandon the score charge. Dec. 7. — United Artists, third to answer, will eliminate the score charge effective with the 1937-'38 season and favors establishment of conciliation boards. Its producer organization prevents it from granting a cancellation privilege, the distributor states. Schenck Pact Up to Loew Holders Today With more than 51 per cent of the proxies on hand late yesterday, Loew's stockholders today will approve a fiveyear employment contract for Nicholas M. Schenck, president, and the transfer of a five-year option held by the late Irving G. Thalberg for the annual purchase of 9,600 shares of common stock at $40 a share to Schenck. The five-year employment contract provides for the same salary and percentages Schenck is now getting. J. Robert Rubin, vice-president, will preside at the session which is scheduled to start at 11 A.M. in the home office. Two stockholders thought the meeting was scheduled for yesterday and put in an appearance. As far as could be learned, Frank A. Harden is the only stockholder to have voiced an (Continued on page 8) Paramount' s Issues At New High Marks All three Paramount issues on the Stock Exchange yesterday soared to new highs for the year. Most active of the group was the common with a "turnover of 48,300 shares. It closed at 23 for a gain of l^s on the day. The first preferred jumped seven points on a trading of 4,300 shares, closing at 166. The second preferred showed a plus 1*4, with 6,800 shares changing ownership. The new high and closing quotation on this issue was 2034. Chicago's Theatres Repeat Basket Stunt Chicago, Dec. 7. — Every theatre in Chicago again this year will join the move to supply Christmas baskets to the needy as they did last year for the first time. The plan is sponsored by the Chicago Amusement Publicists' Ass'n. The baskets will be gathered Dec. 22. Last year 20,910 baskets were filled. Goetz-Gordon Start Their Partnership Harry M. Goetz's partnership with Max Gordon, Broadway stage producer, officially began in Philadelphia last night when "The Woman," initial stage play under the arrangement, opened its tryout engagement. Of the new company, the Max Gordon Plays and Pictures Corp., Goetz is president, Gordon, vice-president ; Marcus Heiman, secretary and treasurer, and A. L. Berman, the attorney, general counsel. Plays produced by the combination later will be filmed. High Court Upholds Price Cutting Bans Washington, Dec. 7. — State laws in California and Illinois which prohibit the sale of standard products at less than the price fixed by the producers were upheld as constitutional by the U. S. Supreme Court today. Justice Sutherland delivered both opinions, which were unanimous, and sustained decisions of the State Supreme courts. The measures involved were intended to prevent price cutting. In two California cases which were appealed, the corporation involved contended they had not bound themselves by any form of contract to resell the commodities concerned at any specific price, and that they had the legal right to sell them at cut prices if they so desired. Long Reels in Use; Will Be Made Legal Although every major exchange in the local area is now employing the 2,000-foot reel with the approval of the Fire Dep't, the Board of Aldermen is now working on an ordinance which will make the enlarged reel legal. The independent exchanges are gradually installing new rewinding apparatus for the handling of the new reel. U. A. to Drop Score Charge Next Season Local Boards Approved; No Cancellations United Artists will abandon levying of a score charge after the current season and beginning with the sale of its 1937-'38 product, George J. Schaefer, vice-president, advised the M.P.T. O.A. yesterday in a letter which sets forth the company's stand in relation to the exhibitor organization's 10-point trade practice program. In addition, United Artists declares itself in favor of the establishment of local conciliation boards but asserts that it is unable to grant a cancellation privilege because of its "long standing policy of selling our product on an individual picture or producer basis." The distributor took the same position on cancellation when the industry's NRA code was drawn, but Code Authority subsequently held that the company was subject to the cancellation provisions of the code. Schaefer's letter also puts United Artists on record as opposing the servicing of non-theatrical accounts which "in any way conflict with the business of a theatre." While stating that United Artists believes uniform clearance schedules to be "fundamentally sound," the letter states that Federal court decisions make it necessary to (Continued on page 12) Picquet Again Heads Carolina Exhibitors Charlotte, N. C, Dec. 7. — Charles Picquet was reelected here today as president of the Theatre Owners of North and South Carolina, at the closing session of the annual two-day convention. Attendance was the largest since 1929 and considerable enthusiasm for the 10-point trade practice program of Ed Kuykendall, president of the M.P.T. O.A. was evidenced. The meeting unanimously adopted (Continued on page 8) Paper Value Jumps Amusement issues listed on the N. Y. Stock Exchange increased 30.18 per cent on Dec. 1, as compared with the preceding month, according to a compilation of the exchange. Paper value at the beginning of the month was computed at $465,265,996.