Motion Picture Daily (July–Sept 1938)

3c> not RHIfVIO MOTION PICTURE DAILY 44. NO. 12 NEW YORK, TUESDAY, JULY 19, 1938 TEN CENTS LW Objects o Details of C.C. Probe dlenges Commission's ight to Information shington, July 18. — Challengfete right of the Federal Comations Commission to go into the on of program service, charges rofits and other phases of operJto build a basis for its decision, V today began its fight before the C. for extension of its 500itt permit. tier the questioning of Duke M. fk, Crosley counsel, witnesses dditional developments in idio yesterday on page 11. led WLW as leading the broad's industry's experimental work ieveloping many new discoveries, of which have been made known industry, including several that "been found useful to less poweritions. ns for the super-power station under consideration as early as 1932, it was testified by Harold {Continued on page 11) xican Producers ppeal to Cardenas By JAMES LOCKHART iico City, July 18. — The Mexi! [ntion Picture Producers' Assob has appealed to President 0 Cardenas to take action to it the enforcement of the ulti 1 of the Film Workers' Federa:o halt the production of all tic pictures and their exhibition, nion decision is an outgrowth of iter factional fight for film labor ■ iction being waged between the (Continued on pas". 9) Firms List Eight \or Multiple Credit ht multiple credit features have lifted by American distributors j t this year's British quota relents since April 1, when the Mlms Act went into effect, it is ed by Fayette Allport, Hays ofepresentative in London, who d yesterday on the Queen Mary nferences. r of these are double credit all produced by General Film butors for Universal, and four pr triple credits, represented bv ach from M-G-M, United A'rt(Continued on page 6) Reversed Compass Howard Hughes spent $300,000 to prove how much progress aviation had made in the past 10 years and Douglas Corrigan spent $100 to prove that it hadn't made any. What the newsreels spent yesterday getting crews from London to Dublin in a hurry hasn't been computed yet. If Corrigan's compass stays in reverse he'll probably land at Fairbanks Wednesday and still say he's headed for California. New RKO Plan Gets Approval With Changes With several minor modifications, the plan for reorganization of RKO has been approved, Special Master George W. Alger announced at the final hearing yesterday. The formal report will be ready for submission to Federal Judge William Bondy before Aug. 1, Mr. Alger said later. "I find that the plan in the main is fair, feasible and equitable," Mr. Alger stated. The principal modification ordered was an option to debenture holders to take $140 in preferred stock for each $100 in debentures now held. The present plan provides for one share of preferred stock and five (.Continued on page 10) Offer $500,000 to Settle Fox Action Atlantic City, July 18.— A $500,000 cash offer to settle an important angle in the $9,535,261.91 William Fox bankruptcy was on file here today with Federal Referee Allen B. Endicott, Jr. If accepted it would end a recapture of assets suit against AllContinent Corp. Mrs. Eva Fox, wife of the former film executive, and their daughters, Mrs. Mona Tauszig and Mrs. Belle (Continued on page 6) Report Warner Plan For Refunding Near Warners shortly will announce a plan for refunding $29,412,985 of six per cent convertible debentures due Sept. 1, 1939, according to Wall Street reports current yesterday. Details were not available, but some sources (Continued on page 10) Allied Seeks 'Divorce9 Laws In All States Steffes Basing Moves on North Dakota Ruling Minneapolis, July 18. — "Divorcement" bills in all the other 47 states will be pressed at the next sessions of state legislatures as a consequence of the North Dakota law having been declared constitutional, W. A. Steffes, president of Allied Theatre Owners of the Northwest, said today. Steffes is chairman of a committee of Allied States appointed to advocate "divorcement" bills. Since announcement was made of the three-judge court decision, Steffes has been receiving congratulatory telegrams, letters and telephone calls. Washington, July 18. — In a statement issued today Abram F. Myers, general counsel for Allied, declared that if the industry had heeded exhibitor warnings it would not now be confronted with three cases in the U. S. Supreme Court. "The industry is now confronted with the task of defending itself in the Supreme Court at the next term (Continued on page 10) Para, to Appeal in North Dakota Case Paramount's appeal from the Federal statutory court decision upholding the constitutionality of the North Dakota act prohibiting production and distribution companies from holding an interest in theatres operated within the state is expected to be filed with the U. S. Supreme Court in October and a hearing on the appeal may be held before the end of the year, it was learned yesterday. Paramount officials and attorneys decided against applying for a rehearing of the case in the statutory court before going to the Supreme Court (Continued on page 5) British Begin Talks on U. S. Sales Combine Hope to Get Decision Before Next Fall The formation of a single national distribution organization in America to handle the combined product of British producers is under discussion in London now, where a decision on the plan will be made before fall, according to information received by New York representatives of the British producers. The conversations now being held in London, it is said, are mainly of an exploratory character, with the objective of discovering how many producers can agree among themselves on participation in the venture. If a sufficient volume of product is indicated later conferences will be held to determine the practicability of the plan. A final decision is anticipated before Oct. 1, in time to complete the organization here for operations beginning with the 1939-'40 season. Under the plan the cooperative sales and distribution organization would be designed to furnish British producers complete representation in this market at an apportioned minimum cost. Gaumont British, Associated British Pictures and British Lion are the companies most directly interested. Mannix, Weingarten Questioned by Ellis Hollywood, July 18. — E. J. Mannix and Lawrence Weingarten today were examined by Attorney Earl K. Ellis under orders of the New York Supreme Court in connection with suits of 11 stockholders charging excessive and illegal payment of bonuses to executives of Loew's, Inc. While not disclosing the testimony given by the two executives, Mr. Ellis told Motion Picture Daily that the (Continued on page 5) Four Mentioned to Succeed Saper stein Chicago, July 18. — Allied Theatres of Illinois will meet Wednesday to plan for the naming of a successor to Aaron Saperstein, who died July 10. Among those prominently mentioned to head the Illinois unit are Al Steffes, Nate Wolf, Jack Hirsch and Van Nomikos. Head for Ad Drive Under Discussion The workin" committee of advertising managers charged with devising arrangements for the national advertising campaign to be conducted by major companies and affiliated circuits Leginning in September held its first meeting -"esterday. On the committee (Continued on page 10)