Motion Picture Daily (July–Sept 1938)

Alert. Intelligent IPicture Industry OO NOT SEMOV« MOTION PICTURE DAILY First in Film and L 44. NO. 5 NEW YORK, FRIDAY, JULY 8, 1938 TEN CENTS ?our Holdouts 5nd Battle of 'Snow White" leading for Record with 7,000 Contracts The battle of "Snow White and the leven Dwarfs" — one of the industry's jig conflicts between buyer and seller -is practically over. And the first eature length cartoon is on its way 3 an all-time high domestic gross ■ith 7,000 contracts and a billing of pproximately $3,400,000. Seldom if ever has a picture presented so many possibilities for a test f selling skill and buying resistance. Produced independently, with exhibition contracts subject to the producer's approval, "Snow White" was free A distribution entanglements and went •ut entirely on its own. The battle started with the announcement that the picture would be listributed on fifty-fifty terms and .:nder other stipulations. "Precedents" qvere involved. The publicity campaign which preeded release crystallized in a recordireaking run at the Music Hall in (Continued on page 5) Report 20th-Fox May Start Radio Program I Twentieth Century-Fox plans to l?nter the radio field with a network Program similar to M-G-M's "Good News" series, according to a report jiere. Participating with the film company will be a commercial spoiler, according to the same report. Twentieth Century-Fox officials were lot available for comment. Meanwhile, the film company's plans :>ror the special broadcast arranged in lehalf of "Alexander's Ragtime Band" lave been virtually completed, and (Continued on page 10) McNinch, III, Enters Washington Hospital Washington, July 7.— Chairman Frank R. McNinch of the Federal 0 mimunications Commission is in the Xaval Hospital under treatment for colitis, aggravated by overwork, and will be absent from his desk for probably two weeks. Mr. McNinch has not been in good health for more than a year, and recently was hospitalized in Philadelphia. More Radio— P. 10 Allied Denies It Refused to Consider Plan of Conciliation Washington, July 7. — Pointing out that its petition for investigation of the alleged film trust was ordered by the Pittsburgh convention held prior to the announcement that the producerdistributors were initiating a conciliation movement, Allied States Association, in a formal statement, today denied charges that it had refused to "go along" with other interests in the industry. "When and if a concrete program is evolved by the distributors, it will receive the consideration of the board," it was declared. "Meantime, idle speculation as to what Allied's attitude may or may not be cannot be productive of any good, and may do harm." B&K Talk Delayed By Keough Absence The Chicago delegation which is here to complain of alleged inequitable clearance of Balaban & Katz Chicago theatres over competing houses was unable to resume its discussions with Paramount home office officials yesterday because of the absence from the city of Austin C. Keough, vicepresident, to whom the matter has been referred. A published report that the delegation was prepared to waive projected law suits against B. & K. and distributors in the event the Chicago circuit abandoned double featuring was (Continued on page 8) Study Liquidation Of American Tobis Liquidation of American Tobis Corp., subsidiary of International Tobis of Amsterdam, may take place shortly. W. E. Van Beveren, managing director of the New York firm, is conferring with officials of the holding company in Amsterdam on a decision whether to wind up the company. He is also conferring in Berlin. Since shortly after starting operations here in March, 1936, the company has been on the boycott lists of the Joint Boycott Council and AntiNazi League, which charge that American Tobis is linked to Berlin since it distributes German films. This (Continued on page 8) Rose Here to Confer On Paramount Plans David Rose, supervisor of British production for Paramount, arrived in New York yesterday from the coast and will spend about a week at the home office before leaving for London. While here he will confer with Barney Balaban, president ; Stanton Griffis, chairman of the executive committee, and J. W. Hicks, vice-president and foreign head, on plans for Paramount production in England. Mr. Griffis will go to London early in August to aid with the establishment there of a producing organization for Paramount which will begin functioning for the 1939-'40 season. This year's quota requirements will be fulfilled by outside producers with three pictures having been contracted for already from British producers. Grainger -Gluckman Close 5 -Year Deal James R. Grainger, Republic president, yesterday closed a five-year renewal of the New York and Philadelphia territorial franchises with Herman Gluckman, head of Republic Film Exchange, Inc., of New York, and Republic Pictures Corp., of Pennsylvania. The pacts are dated as of July 1. Franchise agreements for Dallas, Oklahoma City and Little Rock were recently renewed. Negotiations are in progress with other franchise owners on a revision of existing agreements. Federal Precedent Set in Film Deal for 'One Third When the cameras start grinding shortly on "One Third of a Nation" at Eastern Service Studios, the first experiment in what is really indirect Government partnership with the film business will get under way. Triple A Productions, the new independent company headed by Harold Orlob, discovered when it became in terested in the Federal Theatre Project's play that there was no existing precedent for purchase of Government property for individual profit-making enterprises. Negotiations for purchase were begun through the Guild's Committee for Federal Writers' Publications, Inc., (Continued on page 8) Production in Italy Studied By Atlas Corp. Means of Using Frozen Assets, Says Odium Atlas Corp., which has appreciable investments in Paramount and RKO, has considered the advisability of engaging in film production in Italy in conjunction with the Italian government in order to utilize its blocked financial resources in that country, it was indicated yesterday by Floyd B. Odium, president of Atlas, on his arrival in New York aboard the Europa. Without giving any particulars, Mr. Odium, in reply to direct questions admitted that "there may have been some negotiations along this line." He added, however, that "nothing had been finalized." The Atlas investments in Italy, Mr. Odium said, were his principal concern while abroad. His company is an equal partner with the Italian government in IRI, which, he said, is the Italian Reconstruction Institute, and corresponds, roughly, to the Reconstruction Finance Corp. in this country. IRI, however, has investments in a variety of private enterprises and (Continued on page 8) Urge Law to Ban Control of Over 10% of Industry Washington, July 7. — Enactment by Congress of legislation prohibiting one company from obtaining control of more than 10 per cent of its industry is recommended by the Federal Trade Commission in a report of an investigation of the agricultural implement industry. Adoption of the recommendation, it was said here today, would affect several motion picture organizations (Continued on page 8) Universal, DeSylva Terminate Contract Hollywood, July 7. — By mutual agreement Universal today terminated its contract with B. G. DeSylva, effective Saturday. By the settlement Mr. DeSylva gets the film rights to "Little Mother." He was under a two-year contract to Universal. The pact had until Nov. 30 still to run.