Motion Picture Daily (Jan-Mar 1938)

Uert. >!telligent icture ddustry OO NOT tyiox/g MOTION PICTURE DAILY First in Film and 43. NO. 38 NEW YORK, WEDNESDAY, FEBRUARY 16, 1938 TEN CENTS ourt Grants 215,440 for loxy Services mrds Virtually Close Reorganization additional allowances of $215,440 to rneys, creditors' committees and nesses for services in the Roxy realization were granted by Federal ige Francis G. Caffey in the U. S. itrict Court here yesterday. Toiler with $61,000 for disbursements riously awarded, the order disposes .33 petitions which asked a total of 15,800. The award of allowances ually ends the Roxy reorganiza. proceedings. udge Caffey characterized the rests for allowances as "modest, or ieast not unreasonable." He pointed that only $287,000 was available for ribution and stated that "a ratable iortionment of payment" might be essary. Howard S. Cullman, Roxy stee, was instructed to set aside (Continued on page 4) tterson Signs Deal "or French Remakes v deal was closed yesterday under ch John E. Otterson, former presit of Erpi and of Paramount, will ticipate in the financing of a protion venture by Edouard Corniglion linier, French producer, who ar i td in New York about 10 days ago. ; nitial plans call for the remaking I several of Molinier's French pro I I tions for the American market, inlying "Le Grand Illusion," a World ; \r picture which has been acclaimed < oad. The production activities will t :entered at Eastern Service Studio, oria. Distribution arrangements e not been completed yet. Drop Review Line Hollywood, Feb. 15.— The legend, "Passed by the National Board of Review," has passed. With the elimination this week by Paramount, the line is no longer being used by any of the major producing companies. According to a current checkup here, the legend now is being placed on production titles only in the case of Goldwyn productions, among films intended for major release, and on certain independent pictures. Service Is Above Profits, McNinch Tells N.A.B. Meet By JACK Washington, Feb. 15.— Chairman Frank R. McNinch of the Federal Communications Commission, in his first face-to-face talk with broadcasters, today took the industry to task for elevating profits to the impairment of public service. Granting that radio, like all industries, had its economic aspects, he nevertheless warned broadcasters not to look too closely at profits if they desired to maintain the present license system of radio, reminding that they were but the trustees of a public resource, and that the public is "quick to discern the devices of the profiteer." McNinch's address opened the sec BANNER ond day of the National Association of Broadcasters' convention, now in session here. The commission chairman delivered greetings to the convention from the President on Monday, but his talk yesterday was his first to broadcasters as an entity. The commissioner urged that station owners scrutinize more carefully the sponsored advertising script, particularly in patent medicines, and flatly declared he was opposed to the advertising of intoxicating beverages on the air. Congratulating radio for the comparatively little advertising of liquor now on the air, he urged that the broad (Continucd on page 7) Additional Radio Developments on Page 18 N.A.B. Reorganizing Support Unanimous Washington, Feb. 15. — The 16th annual convention of the National Association of Broadcasters, meeting here since Monday, adjourned tonight following a sweeping reorganization that was adopted, remarkably, without a single dissenting vote from the membership. The 300-odd delegates, following a banquet last night, are now en route to their various home cities, but the new board of 23 members who now rule the destinies of the N.A.B. will remain here until tomorrow night to put the finishing touches to the reorganization, and to discuss the proposed new "paid" president. According to reliable information received here, (Continued on page 7) Invite Creditors to Reorganize G. N. Hollywood, Feb. 15. — Seeking to avert action in Federal Court on reorganization or other measures of the bankruptcy act, Grand National heads, at meeting of creditors today, invited a special creditors committee to inspect all books of the companies and work out a reorganization plan without legal action. Phil Goldstone presided at the session attended by Edward L. Alperson, president, and Phil Krasne, of G.N. and creditors' representatives. A committee of Daniel C. Hickson, general service studio ; H. C. Jensen, Sun Lumber Co. ; A. C. Snyder of International Cinema, and Paul Younkin, attorney for J. E. Brulatour, Inc., all (Continued on page 11)' Republic to Have 700-800 at Meet Between 700 and 800 will attend Republic's annual sales convention at the Roosevelt Hotel in Hollywood, May 3 to 5, it was said yesterday by H. J. Yates. In addition to franchise holders and home office representatives, it has been decided to have salesmen and bookers at the meeting, he said. Foreign distributors also have been invited. Production costs will be held to a rigid budget on Republic's 1938-'39 program of 34 features, which is an increase of 10 over this year, plus 24 westerns and four serials, said Yates, and producers will be expected to hold expenditures to the limits set, except that some pictures may necessitate (Continued on page 7) Theatres, Radio Not In Chain Store Bill Washington, Feb. 15. — Neither motion picture theatres nor broadcasting stations will be covered by the Patman bill providing for graduated taxes on chain stores. The bill is intended definitely to eliminate chain stores. Taxes would run as high as $1,000 a store, multiplied by the number of states in which a company operated, so that the maximum might be as high as $49,000. The bill was never intended to cover either film exhibition or broadcasting, it was explained by Representative Wright Patman (Dem., Tex.). While there may be problems in both those industries, he said, the appropriate approach is by methods other than taxation. Playdate Law Invalidated In Ohio Test Federal Statutory Court Bars Enforcement Columbus, Feb. 15. — A three-judge Federal statutory court here today invalidated the Ohio anti-playdate law on the ground that it violated the 14th Amendment to the United States Constitution, in that it deprived the plaintiff of its property without due process of law. The court overruled the contention of the state's attorney-general that the statute was a valid exercise of the police power of the state and held there was no moral issue involved. The law, which was sponsored by Allied, made illegal the designation of playdates by distributors in exhibition contracts. The action was brought by RKO with the attorney general of Ohio named as defendant. Identical litigation is pending in Wisconsin and will be argued shortly. The distributors (Continued on page 11) Film Buying Quiz Held in Abeyance Further action in the investigation of the film buying situation in Brooklyn and Long Island, launched by the late Leo J. Hickey, U. S. Attorney for the eastern district of New York, is being held in abeyance. Harold St. L. O'Dougherty, acting U. S. Attorney, said yesterday that he has received instructions from his superiors in Washington to take no action until he is advised further. The status of the investigation, which was started last summer, has not been changed since Hickey submitted a preliminary report on his (Continued on page 7) Nickel Shows Back Lincoln, Feb. 15.— The first nickel shows here since the nickelodeon days 25 years ago have been started by the Varsity. Two features, a serial, two shorts and a newsreel are shown. In the nickelodeon days, the longest show was 30 minutes, while the present bill extends to almost three hours. It's a 1,100-seat house.