Motion Picture Daily (July–Sept 1938)

Alert. Intelligent Picture Industry MOTION PICTtfiEE DAILY and Impartial VOL. 44. NO. 20 NEW YORK, FRIDAY, JULY 29, 1938 TEN CENTS 'A Letter of Introduction ' [Universal] COMEDY, drama and pathos are skillfully blended to make of "Letter of Introduction" an jutstanding entertainment film. •Each element of the production jives flavor to the other, achieving me of the most pleasing box office rontributions of the new season to date. Names are plentiful and, in the instances of Adolphe Menjou, Edgar Bergen and Charlie McCarthy, and Andrea Leeds, will give strong support to any theatre's sales effort. The exploitation possibilities of the title are many and should be apparent to every showman. The i story, too, suggests ample sales material with its background of stage glamour and parental problems. T Essentially, "Letter of Introduction" is a comedy drama of people lief the theatre. Miss Leeds, a youngster with stage ambitions, goes to Mr. Menjou, a declining stage and screen idol, with a letter of introduction. The message, penned by her mother, establishes her identity as Menjou's daughter. For professional and romantic reasons, the relationship is kept secret by both. The result is romantic complications in the form of Miss Leeds's suspicious fiance, George Murphy, and Menjou's equally jealous paramour, Rita Johnson. It spells dismay, as (.Continued on page 2) Heart Attack Kills Herbert M. Wilcox Herbert M. Wilcox, Westinghouse Electric Co. executive, and formerly a vice-president of Erpi, who was associated with John E. Otterson when the latter was president of Paramount, died of a heart attack yesterday. He had recently returned from England and had been ill for a long period. He was 56 years old. His residence was in New Haven. He is survived by his wife, Mrs. Frances Jaynes Wilcox. Mr. Wilcox was born in Pittsburgh in 1882. He attended Princeton University and the Massachusetts (Continued on page 15) Radio News — P. 16 W anger Financed Additional Walter Wanger financing of over $1,500,000 was set during the coast visit of Murray Silverstone. SERVE SUBPOENAS IN FEDERAL SUIT The Government Action -By MARTIN QUIGLEY THE action brought by the Department of Justice against the eight major motion picture companies presages consequences unparalleled in importance in the history of the industry. The suit is intended to effect "the restoration of free enterprise and open competition amongst all branches of the motion picture industry" through the revision of trade practices and by other means. That some of these practices are due — if not in fact long overdue — for revision and adjustment is disputed by few. The recently constituted Kent committee has already entered upon a program intended as a study of trade practices in light of existing conditions which would eventually lead to such rearrangements as the exigencies of the business permit. It must be recognized that existing trade practices are pioneer paths cut through a wilderness. They have grown up apace with the meteoric rise of the industry of motion pictures, a business which in various of its essentials is unique with respect to any other business. It has not been possible for the business of motion pictures to find much of precedent or guidance in the record and performance of other businesses. The prevailing trade practices have been contrived and evolved in face of times and conditions during the swift growth of an industry which within a single generation rose from the lowly status of a penny arcade device to the lofty estate of an industry of vast economic and social importance. T It must also be recognized that however and for whatever reason many of these trade practices came about there have been continuing complaints against them. Many firms and individuals have been seen struggling desperately against difficulties which they have imposed. Only an exhaustive and impartial inquiry can determine in what measure the complaints have been justified and in what measure their plight has been due to the failure of their own efforts and the consequences inescapably associated with competitive enterprise. All indications have for some time pointed to the need of an overhaul of trade practices, and arrangements looking to that end are the announced purposes of the Kent committee. Doubtlessly it would have been desirable if at present intra-industry conference had already made measurable progress toward compromise and conciliation, but it probably will be more generally appreciated in the long run that the problems, which at first blush seem to admit of quick and easy solution, present upon longer and more intimate acquaintanceship a wide variety of perplexing difficulties. The pending action by the anti-trust authorities of the government against the film companies which constitute such an important part of the American industry presents an opportunity and a responsibility for [Continued on page 2] About Half of the 167 Defendants Reached After Phone Calls Virtually all corporate defendants and many home office executives named in the Department of Justice's anti-trust suit against the industry were served with subpoenas during the past 24 hours. Those served comprise about half of the 167 defendants named in the Government proceeding. In most instances, service was preceded by a phone call from the U. S. Marshal's office to ascertain whether those for whom subpoenas had been issued would be at their business addresses and would accept service. So far as could be learned none of those who were thus called refused to accept service, although in many instances service for several individual defendants was accepted by attorneys for the individual companies. Seek to Serve Irving Trust The Government filed a petition in the U. S. District court for authorization to serve Irving Trust Co., which, as trustee in reorganization for RKO, was named a defendant even though it is under the jurisdiction of the same court in which the anti-trust suit was brought. Counsel for Irving asked and was granted several changes in the wording of the petition, but otherwise did not oppose it. It is assumed, therefore, that the court will approve the petition within the next day or two and Irving Trust will be served thereafter. The defendants who remain unserved are either west coast executives, home office executives who are (Continued on page 3) RKO Plan in Court; Hearing on Sept. 8 Special Master George W. Alger filed a 25-page report yesterday in the U. S. District Court in which he approved the proposed amended plan of reorganization for RKO with some minor modifications. He ruled that the plan successfully met the tests of fairness to all classes of creditors and stockholders and feasibility and that it also complied with the provisions of Section 77B of the Bankruptcy Act. The report, in addition, ruled the plan constitutional and cited a decision of the Federal Court which held that (Continued on page 3)