Motion Picture Daily (Jan-Mar 1938)

00 WOT R£M MOTION PICTURE DAILY First in Film and 43. NO. 39 NEW YORK, THURSDAY, FEBRUARY 17, 1938 TEN CENTS zor Favors onciliation Joard Tryout s that Philadelphia Wants Experiment Injunction Asked On No. Dakota Law iLADtxPHiA, Feb. 16. — Lewen president of the U.M.P.T.O. 'astern Pennsylvania, Southern Jersey and Delaware, favors conciliation boards a test in the jelphia territory. He said so in a formal statement, lis organization has repeatedly lded some form of organized •d of adjustment for controversial rs between exhibitor and dis,(or," he said. "With proper co:ion and confidence of all in the rv a closer bond will result, clarification of the many vexaproblems confronting all of us." .ommenting on the fact that "we [nee against hearing from repreives of certain distributors and xhibitor leaders that some form -:tlement should be made within ^ulustry of our problems" Pizor |his organization had long been (Continued on page 11) xican Employes lay Strike Moves lj By JAMES LOCKHART | xico City. Feb. 16. — The local l employes' unions here, which :ened to walk out at noon today 5 demands for pay increases were yy distributors, did not force the '\ today, and negotiations are in kess. e situation is still uncertain, howThe workers, who are affiliated 5<>me of the strongest labor or (Continued on page 11) VB Directors Name ecutive Committee \s hington, Feb. 16. — Leaving bean executive committee chosen ieir newly-elected board of directo wind up routine affairs of the •nt ion and study the matter of aid" president, members of the >nal Association of Broadcasters filtering out of the city tonight having taken definite steps to gthen their organization, e board of 23 directors adjourned (Continued on pane 10) ore Radio— Pp. 10-11 Fargo, Feb. 16. — An application for a temporary injunction to restrain North Dakota state officials from enforcing the affiliated theatre "divorce" law pending trial of an action to determine the constitutionality of the statute was filed here today by Paramount. Minnesota Amusement Co. and American Amusement Co. Judge Gunnar H. Nordbye of the U. S. District Court, Minneapolis, came here to receive the Paramount papers due to the continued illness of Judge Andrew Miller, the only Federal judge in this district. No hearing date on the petition has been set, but it is assumed that a hearing will be held within the next 10 days or two weeks, inasmuch as a decision on the issuance of an injunction must be made prior to March IS when the state theatre divorcement law goes into effect. The applications filed today asked for the convening of a special statutory court of three Federal judges to hear the petition for the temporary injunction. The personnel of the threejudge court has not been designated yet. The injunction, if granted, would continue in force pending trial of (Continued on page 11) Monogram Forces To Meet on Coast Monogram Pictures franchise holders will convene in Hollywood during the first week in April to go over the company's plans for producing 42 features for the 1938-'39 season, W. Ray Johnston, Monogram president, stated yesterday on his return from the coast A national sales convention is planned for the last week in April and will be held in some centrally located city, probably Cincinnati, Johnston said. The Monogram head indicated that E. B. Derr, who reportedly has been seeking a major company releasing arrangement, may continue with the (Continued on page 11) RKO Figures $5,000,000 "Snow" Gross Music Hall's Total for Five Weeks $531,000 A minimum world gross in rentals of $5,000,000 is anticipated by the RKO sales department for "Snow White and the Seven Dwarfs," which is being released to RKO theatres in the metropolitan area following the conclusion last night of the five-week run at the Music Hall, during which the take was $531,000. The anticipated figure is based on an expected rental in the United States of $3,000,000 and a foreign rental gross of $2,000,000. It was said, however, that a total gross of $7,000,000 or more is possible, considering that exhibitors are according the picture extended playing time and longer than usual holdovers. If the gross should reach $5,000,000, with an average distribution cost of 35 per cent, or $1,750,000, which is (Continued on page 11) Neely Attacks "Monopoly" in Film Industry Calls for Regulation in Report to Senate Talleif-Corbar-FWC Litigation Is Ended Los Angeles, Feb. 16. — Litigation arising from the bankruptcy proceedings of Fox West Coast brought by T. L. Talley and the Corbar Corp ended today after years of court battles which carried to the U. S. Supreme Court the suit to reopen the bankruptcy case. William G. Neblett, attorney for Talley and Corbar. today filed a stipulation of dismissal in Superior Court where the suit, which charged illegal invalidation of leases (Continued on page 9) Hays Cracks Down On Air Gossiper Hollywood, Feb. 16. — The first specific action by the Hays Office here to halt unrestricted film gossip on the radio was disclosed today when the studio credentials of Bob Garrett, who conducts the program, "Pick of the Pictures," on KEHE, were revoked over the airing of a story that M-G-M had propped up an actor after he had died to make a final shot. Jack Gross, manager of KEHE, immediately dismissed Garrett, upon notification by the Hays Office of the action of Tom S. Pettey, public relations director for the producers. Garrett had been on KEHE, conducting (Continued on page 11) Theatres Escape New Taxation in Georgia Atlanta, Feb. 16. — Georgia's General Assembly came to the close of a hectic revenue-raising special session this week after defeating a luxury tax measure that would have levied on theatre and amusement tickets. A few hours before adjournment the legislators also killed a new chain store tax act that would have raised the taxation rate on nationally operated chains, including theatres. The present Georgia chain store tax exempts theatres. By BERTRAM F. LINZ Washington, Feb. 16. — "Present monopolistic control of motion pictures calls for regulation in the public interest," it was declared today by Senator Neely of West Virginia in a formal report on his anti-block booking bill, filed with the Senate. As anticipated, the report submitted was a copy of that sent to the Senate at the last Congress, fortified only by a new paragraph discussing the relationship of pictures to education and calling for regulation. "Nothing," it was declared, "is more repugnant to the American public than centralized control of education. A unique characteristic of the American educational system is that the public schools are indigenous to the local communities which they serve. Motion pictures are recognized as an important and increasingly powerful medium of education. For this reason, as well as many others herein enumerated, present monopolistic control of motion pictures calls for regulation in the public interest." The primary purpose of the bill is (Continued on page 9) Grant Injunction Against Ohio Law Columbus, Feb. 16. — Following the ruling of a Federal three-judge statutory court here yesterday invalidating the Ohio law against designated playdates, the court today granted to the RKO Distributing Corp. an injunction preventing state officials from enforcing the law. The court yesterday had declared the law, which was sponsored originally by Allied States, was a violation of the 14th Amendment of the (Continued on page 11) Chain Tax Argument Starts in Harrisburg Harrisburg, Pa., Feb. 16. — A vigorous attack on the constitutionality of the Pennsylvania Chain Store and Theatre Circuit Law today was made in the Dauphin County Court when argument opened in the legal battle aimed to prevent the State Dept. of Revenue from collecting the (Continued on page 9)