Motion Picture Daily (Jan-Mar 1938)

Alert. Intelligent^ an<rv tu , , to the^Jotion Picture Industry °0 NOT R — jv, MOTION PICTURE DAILY First in Film and Accu and Impartial I 43. NO. 4 NEW YORK, THURSDAY, JANUARY 6, 1938 Estimate RKO 1937 Net at Quota Uncertainty Stymies Korda Moves on Production Cong May $1,900,000 figure About $650,000 Under '36 Profit RKO's consolidated net earnings for 937 were estimated yesterday at $1,00,000 by financial interests associated /ith the company. The figure is aproximately $650,000 below the comany's net for the preceding year. Earnings of the comparv for the rst three quarters of 1937 were $1,43,000. The fourth quarter, accordig to preliminary estimates, will not ome up to earlier expectations and ? subject, as well, to year-end adjust:ents which may reduce the estimated gure to some extent. Peter Rathvon, Atlas Corp. associte and active in the investment comany's RKO interests, arrived on the oast yesterday to join Floyd Odium, vtlas head; Andrew Christiansen, iKO trustee's representative ; O. C. Doering, of trustee's counsel, and Leo (Continued on page 8) International Sales Signs 2 Executives International Radio Sales, newly itled division in the Hearst Radio etup, yesterday signed Peggy Stone f CBS and Naylor Rogers, formerly ice-president and general manager f KNX, Hollywood. Both will serve i executive capacities. Miss Stone, long in the CBS staion relations division under Herbert Kckerberg, will join International 'iales as its station relations director .ithin the next week or so. Rogers, now in New York, will eave for Chicago Jan. 15 to take over he management of the International ^ales office in that city. Cohn Hits at Radio , Work of Film Names Citing specific instances of theatre •usiness having fallen below reasonble expectations on nights on which iollywood radio programs were •roadcast. Jack Cohn, vice-president ■f Columbia, yesterday called upon the ndustry to heed exhibitor complaints | ,.nd take steps "to end film star competition with motion picture theatres." Declaring himself to be "unqualiiedly opposed" to Hollywood stars (.Continued on page 10) More Radio — P. 10 Uncertainty as to the extent to which American companies will be required to engage in British production is stymieing all deals for Alexander Korda to handle the new British quota requirements of several leading companies, it was learned authoritatively yesterday. Korda, frankly dissatisfied with his present producing and releasing arrangements with United Artists, has discussed British producing deals with 20th Century-Fox, M-G-M and Paramount. Overtures have also been made by Korda to Columbia, but a Joint Session Of Exhibitors Seems Nearer Prospects for a trade practice meeting of exhibitor organization heads, which has been sought by Harry Brandt, president of the I. T. O. A., since last October, brightened yesterday when Ed Kuykendall, M. P. T. O. A. head, wired Brandt, in reply to his query, that he could meet with him and Nathan Yamins, Allied States president, "any day after Jan. 17." Brandt late yesterday wired Yamins asking him to set a date. Since Yamins will attend the Allied board meeting in Washington Jan. 18 and 19, it is presumed that the session will take place later that week or early the following week. Kuykendall has advised the M. P. (Continued on page 8) Astor Spruced for "Chicago" Opening A broadcast from the theatre lobby, a host of prominent persons from stage, screen, radio and society, grinding newsreel cameras and the usual flood of arc lights on Broadway will be a part of the opening tonight at the Astor of the 20th Century -Fox film, "In Old Chicago," which will play indefinitely on a two-a-day policy. Striking lobby decorations in the atmosphere of the period of the film, the lSoVs and 1870's, with an illuminated photomural of a street scene in the Chicago of the 19th Century, and general lobby fittings in keeping with the scene of the picture, have been designed for the opening. Letters, each 15 feet high, emblazon the (Continued on page 7) high official of that company stated yesterday that no British producing arrangements would be made by Columbia until the new quota bill has been enacted. Joseph M. Schenck, chairman of 20th Century-Fox, told Motion Picture Daily this week that his company was not interested in a producing deal with Korda unless his services could be obtained exclusively. Korda's United Artists commitments prohibit such an arrangement and, moreover, an exclusive producing deal is contrary to (Continued on page 8) Slight Hope Held for End Of Giveaways Little hope for the elimination of cash giveaways in Greater New York came from RKO yesterday with the assertion by John J. O'Connor, film buyer of that circuit, that it is up to the I. T. O. A. members to show their sincerity in making the first move. O'Connor, who is handling the circuit's executive functions with Major L. E. Thompson pending appointment of a successor to Nate J. Blumberg, recalled that the independents did not fulfill their promise when RKO and Loew's abandoned giveaways a year ago. Harry Brandt, president of the I. T. O., yesterday reiterated that "we would be more than glad to talk with (Continued on page 8) Columbia Revamps Exploitation Work Columbia has completed reorganization of its field exploitation department and will concentrate more of the activities in the home office, Frank McGrann, exploitation manager, said yesterday. Asserting that the field staff was not being disbanded, although three men have been dismissed, McGrann described the move as designed to provide "more personalized service" from New York whereby "each situation would be handled as separate units." The reorganization will eventually result in an augmented home office exploitation staff, McGrann declared. In addition to New York, the work will be handled by three district rep (Continued on page 8) TEN CENTS ress Rush Sidetrack Picture Bills Some Favor Merging All Pending Measures By BERTRAM F. LINZ Washington, Jan. 5. — Heavy schedules which must be cleaned up before the end of the session and a general expectation that the projected monopoly legislation will be sufficiently strong to take care of the situation makes improbable serious consideration of any film legislation this session, it was said at the Capitol today. Following a conference with Congressman Lea of California, chairman of the Interstate and Foreign Commerce Committee of the House, Congressman Boren of Oklahoma tonight indicated that he probably would not introduce his bill to divorce production from exhibition. "There is ' no sense in introducing a bill if it is not going to be acted upon," Boren said, "and Chairman Lea expressed doubt whether the committee, which has a heavy schedule that must be disposed of, could find time to give the measure consideration at this session." At the same time, the Congressman pointed out that the proposed antitrust legislation may be sufficiently broad to take care of any monopoly situation in the film industry. In other (Continued on page 8) Expect 5% Drop in Ticket Tax Revenue Washington, Jan. 5. — A drop of more than five per cent is expected in collections from the admissions tax as a result of the current depression, and total receipts from that source for the fiscal year beginning July 1, next, are estimated at $18,400,000, as compared with an estimated collection of $19,500,000 for the current year, it was disclosed today in President Roosevelt's annual budget message to Congress. Collection of even this amount, it (Continued on page 8) W. A. Scully to Tour Universal Exchanges William A. Scully, Universal general sales manager, will begin a series of weekend trips to the company's eastern exchanges on Friday, which will be continued through January. About Feb. 1 Scully will leave on a tour of the remainder of the Universal branches requiring several weeks. The purpose of the trips is to (Continued on page 8)