Motion Picture Daily (July–Sept 1938)

Alert. Intelligent riL.fr uurr MOTION'T»ICTURE DAILY First in r0L. 44. NO. 15 NEW YORK, FRIDAY, JULY 22, 1938 TEN CENTS Conciliation Efforts Go on Despite Suit love for FWC Master Is Called Off, However The industry's current effort to annulate a plan of self-regulation of ade practices will be continued withjt interruption despite the filing of le Department of Justice's monopoly :tion against the organized industry, was learned yesterday. However, the industry proposal for ie appointment of a special master to lear trade complaints against Fox !vrest Coast which involve the con■nt decree entered into by the circuit ith the Government in 1933 has been oandoned. This was a direct result : the filing of the monopoly proceed It was learned that on the occasion f the visit of industry attorneys to hurman Arnold, Assistant Attorney eneral, about three weeks ago, for ne purpose of discussing the Fox (Continued on page 2) ]ourt to Hear RKO Motions on Sept. 8 A motion to confirm the report of pecial Master George W. Alger iproving the RKO plan of reorganiition will be heard in U. S. District ourt here on Sept. 8, Federal Judge t'illiam Bondy indicated yesterday. I The motion will mark the start of nal hearings on the plan which will ; followed by the selection of a jard of directors and management or the reorganized company. Setting f the hearing date indicates that the (Continued on page 6) TC Violation May Cause License Loss j Washington, July 21. — Radio adertising of patent medicines not in :cord with the requirements of the ederal Trade Commission and the ood and Drug Administration may ° sufficient cause for refusal of li;nse renewals to broadcasters, it was idicated today by action of the Fed*al Communications Commission. The commission's attitude was disosed in an order for a hearing on ie renewal application of WJJD, (Continued on page 6) More Radio— P. S Gulick Chosen To Coordinate Big Ad Drive Appointment Is Approved By Three Committees Paul Gulick, former publicity manager for Universal, was designated coordinator of committee activities for the industry's national advertisingcampaign at a meeting yesterday of the distributors' committee of which George J. Schaefer is chairman. The appointment had been approved previously by the advertising committee, headed by Howard Dietz, and the affiliated circuits' committee, of which Y. Frank Freeman is chairman. Gulick will begin his full time work on the campaign Monday, working under the direction of the three committees. While several slogans for the campaign are under consideration by the advertising committee no final choice has been made yet. Mr. Schaefer's committee reconvened last night following a late afternoon adjournment to consider various proposals relating to the appropriation for the campaign and its apprortionment among the participants. The campaign is scheduled to get under way shortly after Labor Day. Midwest Warner Men To Meet at Chicago Chicago, July 21. — Representatives of Warners' midwest branches will meet at the Blackstone Hotel here Saturday and Sunday for the third of the company's regional bookers and ad salesmen's meetings. A. W. Schwalberg, supervisor of exchanges, will conduct the sessions, assisted by Stanley Hatch, advertising accessories sales manager, and I. F. Dolid, assistant to Norman H. Moray, Vitaphone sales manager. The home office representatives will return to New York early next week to prepare for the fourth and final meeting to be held at the Hotel Warwick there July 29 and 30. Eastern (Continued on page 6) N. Y. Court Upholds Ban on Dog Racing Albany, July 21. — Greyhound racing suffered another severe blow which is expected to remove this form of competition from the theatre field for this season at least, when Supreme Court Justice Pierce Russell of Troy (Continued on page 6) SEE U. S. BID FOR CONSENT DECREE Suit Clears Atmosphere, Says Allied A consent decree embodying proposals of the major companies "for bringing themselves into conformity with the law" will be acceptable to Allied as a means of meeting its demands for relief to independent exhibitors. This is urged in an Allied bulletin issued by Abram F. Myers, general counsel, in Washington, and devoted to the filing of the Government's antitrust suit. "July, 1938, will go down in exhibitor history as the month in which Allied's long but persistent battle for exhibitor rights was won," the bulletin states. "The decision in the North Dakota (theatre divorcement) case and the filing of the Government's suit do not in themselves effect the desired result, but they are the handwriting on the wall. "The filing of this action clears the atmosphere, removes uncertainty, provides an opportunity for the in (Continued on page 2) ITOA Attacks U.A. Percentage Selling United Artists' new sales policy of selling on percentage only is "condemned" in a resolution adopted by the membership of the I.T.O.A. The resolution charges that "the policy is arbitrary and unfair insofar as subsequent run theatres are concerned, and such a policy would make it impossible for subsequent run theatres to play United Artists' product." It is also charged that "such policy is evidently being adopted by United Artists to prevent subsequent run theatres from playing their product." Pick-a-Back Plane Brings Reels Here The five newsreels chalked up another "first"on their delivery records yesterday when the English "pick-a-back" plane arrived at Port Washington with the first shipment of newsreel film ever to make the west-east voyage by air. The (Continued on page 3) Sweeping Nature of Case Is Surprise. — Company Heads Are Silent The motion picture business started yesterday to digest the Government's anti-trust suit against the eight major companies. Long threatened, the petition filed by the Department of Justice in the Federal Court of New York at noon Wednesday was so sweeping in its attack on trade practices and in its demands for readjustments that the suit might as well have been totally unexpected. The statement issued by Will H. Hays was the only formal comment available. The defendant companies elected to let Mr. Hays' statement stand without amplification. As interesting as the brief itself, was the mimeographed statement issued by the Department of Justice outlining the purposes and objectives of the suit and giving the Department's reasons for proceeding through the courts. There was speculation, everywhere, over all the details of the Government's action, over the complaints and (Continued on page 2) Pettijohn, Breen Back from Europe A European war is remote because with the exception of England none of the countries can afford the expense, it was reported by C. C. Pettijohn, general counsel of the Hays office, who returned yesterday on the Rex from a month's vacation. Joseph I. Breen, Production Code administrator in Hollywood, returned with Mrs. Breen from a tour of Italy and Switzerland. Both Hays office officials were greatly interested in (Continued on page 6) Dietz, Yorke Group Hold Meeting Today Hollywood, July 21. — Howard Dietz of M-G-M, chairman of the working committee for the industry's publicity and advertising campaign, tomorrow will meet with Gabe Yorke, local chairman, and all studio publicity heads at the offices of the M.P.P.D.A. It is understood that he will detail plans formulated at the eastern meeting Monday. Mr. Dietz and Nicholas M. Schenck will start east Friday.