Motion Picture Daily (Jan-Mar 1937)

MOTION PICTURE DAILY The Leading Motio Picture Industry NEW YORK, TUESDAY, MARCH 9, 1937 TEN CENTS Alert. Intelligent In All Branches VOL. 41. NO. 56 j Says Ostrers Are in Secret | 20-Fox Deal Nordon Pressing M. & B. Ownership Question By BRUCE ALLAN London, March 8. — In a letter to the press C. L. Nordon, attorney representing a group of shareholders of Gaumont British who are protesting the current actions of the directorate, makes the accusation that there is a secret agreement between the Ostrers and 20th Century-Fox to defeat Article 89A of the company bylaws, which prohibits voting by foreign interests in shareholders' meetings. Nordon, in the letter, continues to press the question of the real ownership of Metropolis and Bradford Trust, holding company which has a controlling interest in G. B. He declares that the public knowledge of these facts may make necessary the {Continued on page 6) Central States Plan For Expansion Gains Omaha, March 8. — Central States Broadcasting Co. plans for increasing its circuit to four stations brightened this week with Examiner Melvin H. Dalberg's recommendation to the F.C.C. that the company's application to construct a 100-watt, 500-kilocycle unlimited time station be granted. C.S.B.C. was forced to seek this permit because of an unusual station setup. The company operates KOIL, which is licensed in Council Bluffs, and KFAB and KFOR, both licensed in Lincoln. All of KOIL's programs and most of KFAB's originate in the Omaha studio, however. C.S.B.C. long has wanted to move KOIL's transmitter to Omaha, but this would leave Council Bluffs with no radio outlet. Hence the necessity for the small station. Petrillo Orders New Chicago Music Rules Chicago, March 8. — James C. Petrillo, president of the Chicago Federation of Musicians, today set new union rules for "canned music" in radio broadcasts and theatres. Since Feb. 1 no union musician in Chicago has been permitted to make a recording because of P'etrillo's order. Under the new regulations records (Continued on page 12) More Radio— Pp. 10-12 Para. Directors' Trial Off to Fall Trials of two suits against former directors and officers of Paramount, which were instituted by the Paramount trustees during the company's reorganization proceedings which seek the recovery of millions of dollars for the company were postponed by Justice Isidore Wasservogel yesterday to next fall on the petition of attorneys for the defendants. The first of the suits is based on Paramount's repurchase of its own stock which had been issued to various interests in the acquistion of theatres throughout the country from 1927 to 1931. When issued, the stock carried guaranteed redemption prices which, in most instances, was greater than the market value of Paramount stock at the redemption date. The action seeks to recover for Paramount several millions of dollars, primarily representing the difference between the market value of the stock and the greater amount at which it was actually redeemed. Trial of this action, which (Continued on page 6) /. P. Skelly of RKO Is Dead in St. Louis Joseph P. Skelly, manager of exchange operations for RKO Radio, died suddenly yesterday in the company's St. Louis exchange following a heart attack, according to word received at the home office last night. Skelly, who had been with RKO for the past 12 years, left New York last Thursday on a tour of the company's exchanges. He is survived by a wife and several children. The body is being returned to the family residence in Brooklyn, where funeral arrangements will be made today. "Earth9' Fifth Week Gross Hits $17,900 Approximately $17,900 was taken in during the fifth week of "The Good Earth" at the Astor on a two-a-day policy. The Globe, which opened last week with "Lost Horizon," is also doing capacity business. "Maid of Salem" and Benny Goodman at the Paramount are doing a smash business. Saturday and Sunday saw the theatre packed at all (Continued on page 2) Universal Directors In Routine Meeting The Universal board of directors held what was described as a routine meeting yesterday following: the arrival from the coast of Charles R. Rogers, vice-president in charge of production. Officials of the company stated that (Continued on page 2) Net Is $919,515 Consolidated Film Industries and subsidiaries yesterday reported net profit of $919,515 for the year 1936 after all charges, which compares with a net profit of $1,077,450 in 1935. Monogram's Plans About Set — Golden The distribution organization for Monogram Pictures is taking shape rapidly and may be completed during the next few weeks, Edward A. Golden, general sales manager, said yesterday on his return from the coast. Golden further discussed Monogram's initial schedule while on the coast and reported that the company would have five pictures completed by June 1. Two productions have been completed now. Plans for the company's first sales meeting will be completed by the end of the week, with indications that it will be held some time in May. The new distribution setup will be patterned after the original Monogram distributing organization, with probably 20 to 24 franchise holders. It was reported that the company will own its New York, Philadelphia and Washington exchanges outright. W. Ray Johnston, Monogram president, conferred all day yesterday on final details of the company's financing program, the basis of which was set some time ago. High Court Refuses Aleo graph Petition By BERTRAM F. LINZ Washington, March 8. — The U. S. Supreme Court today refused to take any further interest in the patent controversy between the Aleograph Co. and Erpi, refusing the request of the former that it either grant a rehearing of the issue or order a writ of mandamus ordering the lower court to vacate the injunction obtained by Erpi against the bringing of further suits. The case is one of several highly involved suits touching upon matter of interest to the film industry, and (Continued on page 6) Huffman Drops Auto Giveaway in Denver Denver, March 8. — With the dropping by Harry Huffman of the weekly Ford car giveaway, all major cooperative giveaways among Denver theatres are out. Huffman has given away 148 Fords through his seven houses, with a (Continued on page 6) Seeks Repeal Of All Taxes Upon Tickets Representative Peyser Introduces Bill By CLARENCE LINZ Washington, March 8. — The repeal of all admission taxes was sought today by Representative Peyser of New York in a bill filed in the House, as Representative Doughton of North Carolina, chairman of the House Ways and Means Committee, following a White House conference, said no new tax on undistributed profits, comes up istration this session. Doughton indicated that if income tax collections, bolstered by the new tax on undistributed profits, come up to expectations, it may be possible to drop all of the nuisance taxes this summer. Under the Peyser bill, the admission tax would be abolished 30 days after the enactment of the measure. Robert Mochrie Made U. A. Sales Executive Robert Mochrie, former eastern and Canadian sales head for Warners, yesterday joined United Artists sales force, as expected. Mochrie will have the southern district under his supervision. Following his resignation from Warners about a month ago, Mochrie took a three and a half week vacation in Europe. He returned on the Washington last Friday. The post he has taken over has been open several months. He will work directly under A. W. Smith, Jr., general sales manager. Mochrie and Smith worked side by side at Warners until Smith resigned several months ago. Dr. Giannini Meets With UA Executives Hollywood, March 8. — George J. Schaefer, Arthur W. Kelly, Monroe Greenthal and Samuel Goldwyn conferred here today with Dr. A. H. Giannini in the first of a series of United Artists company meetings of stockholders, producers and distributors. Today's meeting treated the general realignment of casts and budgets for the coming season's product. A meeting will be held tomorrow with producers' representatives. The main discussion will start on Wednesday. Dr. Giannini tonight entertained at his residence, having as his guests (Continued on page 4)