Motion Picture Daily (July–Sept 1938)

10 MOTION PICTURE DAILY Tuesday, July 19, 1938 New RKO Plan Gets Approval With Changes (Continued from page 1) shares of common for each debenture and the modification will not disturb this arrangement. It will merely add an additional option. Debenture holders will be required to exercise the option within 20 days after confirmation of the report. Atlas Corp., proponents of the plan, will be required to enter into a definite commitment to underwrite the new stock issue provided under the plan. The plan now reads that Atlas "intends to" underwrite the issue. Cumulative voting for all classes of stock was also ordered by the special master. This provision permits proportional representation on the board of directors for minority interests. Mr. Alger also directed that the new company must procure consent from 50 per cent of the preferred stockholders before issuing new debentures. This shifts the responsibility to the new board to procure consent, instead of resting the obligation of objecting on the stockholders. Another change dealt with the rights of the U. S. Bank of Denver, a creditor. Rickaby Sees Acceptance Proponents of the plan will accept the amendment, according to Hamilton C. Rickaby, attorney for Atlas. Xathan Rosenberg, attorney for H. Cassell & Co., independent debenture holders, promptly announced that he intends to oppose the report when it goes' to Judge Bondy for confirmation. Mr. Rosenberg contends that the plan is unconstitutional because it reduces the debenture holders from a secured to an equity position. Mr. Rosenberg stated that he has already prepared for an appeal to the U. S. Circuit Court of Appeals in the event that he is defeated in the lower court. The issue of unconstitutionality will require the intervention of the U. S. Attorney General. John Stover, attorney for Ernest W. Stirn, holder of unconverted Class A stock, also expressed dissatisfaction with the report. Mr. Stover recently secured an order permitting him to examine proxies used in the 1931 reorganization. Joseph M. Cohen, counsel for the Independent Stockholders Protective Committee, withheld comment but indicated that he would also oppose confirmation. An agreement with Rockefeller Center, Inc., for the Music Hall franchise, and the certificate of incorporation for the new company must be submitted in final form to the special master on Wednesday, and objections to the papers must be filed before July 25. Ohio House Extends Ticket Tax to 1941 Columbus, July 18. — The Ohio House of Representatives has approved the tax-extender bill anticipated to produce $7,200,000 in poor relief from excise taxes, including the three per cent admissions tax, which was extended through 1941. Allied Seeks 'Divorce Laws' In All States (Continued from page 1) in three cases involving records and findings that are devastating, to say the least : the Perelman case from Philadelphia ; the Interstate Circuit case from Dallas ; and the divorcement law case from Fargo," Mr. Myers' statement read. "The records in all three cases bear out the claims which Allied has made over a period of nine years, namely, that the Big Eight have been engaged in contracts, combinations and conspiracies in violation of the anti-trust laws. "All are aware that these repeated warnings have been either ignored or ridiculed. Refusal to heed these warnings, which were certainly based on broad experience, is costing the industry a great deal more than would have been involved in a good-faith effort to work out exhibitor problems with the bona fide representatives of independent exhibitors. As a result of its headstrong policy the industry now has an unprecedented accumulation of woe and the end is not in sight." Australia "Divorce" Law Possible — Snider Legislation similar to the "divorcement" statute in North Dakota may be introduced in Australia, it was reported by Leon S. Snider, joint managing director of the Snider-Dean circuit, on his arrival yesterday from London. Mr. Snider was interested in the North Dakota action and said that the New South Wales Government has been contemplating similar legislation "as a move to compel major distributors to come to terms with exhibitors." He hinted also that the New South Wales quota act may have something to do with Government's intended move. As an authorized spokesman for the New South Wales Exhibitors' Association, Mr. Snider effected a cooperative working arrangement with the Cinematograph Exhibitors Association in England for an exchange of views on overbuilding, performing rights licenses, admission prices and similar trade problems. He said he planned to confer in Washington with Abram F. Myers, general counsel of Allied States, and with Ed Kuykendall, president of the M.P.T.O.A. "Redundancy," as the British call overbuilding and overseating, is a prime topic in England at the moment, he said, and is generally considered to have reached a critical stage. Mr. Snider approved the plea of Ambassador Joseph P. Kennedy for greater cooperation between the American and British industries, pointing out that this coincides with his own view that the industry is international. He urged this view, he said, in his discussions with distribution heads on his previous visit in New York and will continue to seek greater cooperation from the companies for exhibitors in Australia. He plans to be here four weeks, returning Sept. 14. Joint Trade Talks Possible Next Week The first joint discussions of exhibitor and distributor representatives on a trade practice program for the industry are expected to be held here either next week or the week following, an official source stated yesterday. Notices of the meeting have not been sent to exhibitor representatives yet, it was stated, but they are expected to go out any time within the next week. The initial discussions are scheduled to be general in character and may serve more to determine what practices both distributors and exhibitors agree should be included in a plan of self-regulation than the drafting of an actual plan. The distributors' working committee, consisting of Ned E. Depinet, William F. Rodgers and A. Montague is very near to concluding its preliminary work, the windup of which will be the signal for the joint conferences with exhibitors. Three More Republic Franchises Are Set Chicago, Indianapolis and Milwaukee were added to the franchise territories renewing with Republic for five years. The deal, as of July 1, was closed by Irving W. Mandell of Chicago with James R. Grainger, Republic president. Negotiations with other franchise holders are in progress. Five-year renewals previously signed have been for Dallas, Oklahoma City, Little Rock, San Francisco, Los Angeles, New York and Philadelphia. Mr. Grainger left last night for Pittsburgh where he will be honored today at a testimonial luncheon given by exhibitors. James Alexander, Pittsburgh franchise holder, will be toastmaster of the affair, which will be at the William Penn. On Thursday Mr. Grainger will be guest of honor at a luncheon in Buffalo tendered by Jack Berkowitz, territorial franchise owner, and exhibitors. Mr. Grainger will return here Friday and then go to Dallas for circuit deals. Six N. E. Circuits Signed by Republic Republic has closed with six New England circuits for the showing of its 1938-'39 list. They are the Graphic Theatre Circuit, Arthur Sharby Circuit, Andrew Tegu Circuit, Interstate Theatres Circuit and Maine & New Hampshire Theatre Circuit. Additionally, a deal was closed with Edward Reed of Strand Theatres, Inc., Providence, for the showing the Republic list first run in that city. James R. Grainger, Republic president, accompanied by Jack Bellman of the home office, returned yesterday from Boston where negotiations were conducted. Ameche Stricken Abroad Utrecht, The Netherlands, July 18. — The condition of Don Ameche, American film star, is reported as satisfactory following an emergency appendicitis operation performed here today at St. Antonius Hospital. Head for Ad Drive Under Discussion (Continued from page 1) are Howard Dietz, chairman ; Robert Gillham and Charles E. McCarthy. No statement was issued following the meeting, but it is understood that the session was occupied mainly with discussions of several candidates f/fo"A the post of full-time director of fji J campaign. Indications are a former publicity manager for one of the major companies will be retained. The working committee is scheduled to meet at frequent intervals and plans a joint session soon with the distributors' committee for the campaign, which is headed by George J. Schaefer. Report Warner Plan For Refunding Near (Continued from page 1) reported that it would involve exchanging new bonds bearing the same interest. Officers of the company have been working on some plan since the early part of the year, when the directors ordered consideration of a plan. Besides the debentures, the company has outstanding $39,000,000 bonds and mortgages for its own account and subsidiaries, plus 103,000 shares of preferred and 3,700,000 shares of common. The total consolidated funded debt amounts to $73,000,000. Golden a Universal Associate Producer Hollywood, July 18. — Max H. Golden, who produced the Jones Family series for 20th Century-Fox, today was signed by Universal as associate producer. His first assignment will be "Swing That Cheer," the second of Universalis college series. Wall Street Universal Leads in Stock Gain Net Change + H +m jf + a + % + / Open High Low Close Col .. isa 16/ 15/ 16/ Col. pfd. . 34/ 34/ 34/ 34/ Cons .. m 1/ m 1% Cons. pfd. .. 7/ 7/ 7'A 7/ E. K. ..175 175/8 175 175/ G. T. E. • 15% 15/ 15/ 15/ K. A. O.. .. 85 85 85 85 Loew .... . 53/ 54% 52^. 54% Para. .. 1254 12% 12 1244 Para. 1 , 96 98!/8 95/ 98/ Para. 2... . 1254 12/ 12/ 12% Pathe 8 8%, 8 m RKO • 2Vi 3 2H 3 20th Fox ■ 257/8 26M 25% 26M Univ. pfd. .. 45 45 45 45 W. B. ...7S4 7% 7% + Vi + % +2% + / + / + / + 5i +4 + % Curb in Light Rise Net Open High Low Close Change G. N % 7/16 % 7/16 +1/16 Monogram 2% 2% 2% 2% + % Tech 23 23/ 22/ 23/ + / Trans -Lux 2/ 2/ 2/ 2/ Univ. Corp. 2% 2% 2% 2% / Bonds Rise Vi to 4x/i Points Net High Low Close Change Keith 6s '46 90 90 90 Loew 3/s '46 100 100 100 Para. Pict. 6s '55 96/ 96/ 96/ + / RKO fis '41 76/ 72 76/ +4/ W. B. 6s '39 83 81/ 83 +1/ (Quotations at close of July 18)