Motion Picture Daily (July–Sept 1938)

Alert. Intelligent OO MOT MOTION PICTURE DAILY it 44. NO. 23 NEW YORK, WEDNESDAY, AUGUST 3, 1938 TEN CENTS 'Approve GN Merger with Educational Creditors' Move Brings Consummation Near Hollywood, Aug. 2. — Creditors of Grand National Pictures, Inc., and Grand National Studios, Inc., today approved in principle the proposed deal under which Educational and (irand National will be merged and which the Educational board of directors has already approved in principle. Loyd Wright, co-trustee of G.N., left tonight for New York to discuss further details of the tentative agreement with E. W. Hammons and other Educational officers and to draw up contracts for final consideration by creditors, G.N. stockholders and Federal Judge William James, under whom the 77B reorganization of G.N. is taking place. Assuring creditors that he and Cotrustee Edward Alperson had never considered any deal whereby G.N. (Continued on page 9) RCA Six-Month Net Off to $2,524,756 RCA net profits for the first six months of 1938 amounted to $2,524,756.50, which compares with $4,647,385.64, the net for the same period last year. The report for the quarter ended June 30 shows a net profit of $1,086,955.54, as against the net profit Additional developments in radio yesterday on page 12. of $2,404,328.84 for the same 1937 quarter. Total gross income for the sixmonth period this year amounted to $45,251,304.69, as against $53,167,621.59, last year's total. Preferred dividends for the six months were $1,611,684.55. The six-month earnings per share on 13,881,016 shares of (.Continued on page 12) Get Phila. Symphony The Philadelphia Symphony Orchestra, Eugene Ormandy conducting, will do four broadcasts for Henry Ford, beginning Sept. 18. N. W. Ayer & Son handled the account. Director Unit Files Bargaining Charges Hollywood, Aug. 2. — In a surprise move, the Screen Directors Guild today filed before Dr. Towne Nylander, regional director of the National Labor Relations Board, charges of failure to bargain collectively against 10 studios. Dr. Nylander immediately cited the producers to appear Friday to answer the charges, this action taking precedence over the original N.L.R.B. action of the guild asking for certification as collective bargaining agency for directors, assistants and unit managers, hearing on which had been set for Aug. 22. The studios cited are Loew's, Inc. ; Selznick International, Warners, Paramount, Samuel Goldwyn, Universal, Wanger, Columbia, RKO and 20th Century-Fox. It is understood that Dr. Nylander will sound out the producers on their stand concerning the directors' petition in view of the recent N.L.R.B. decision under which the industry is declared to be in interstate commerce and therefore under the jurisdiction of the Wagner Act. Frank Capra, president of the guild, signed today's complaint. Twentieth Century-Fox is the only studio thus far to file an answer to the original petition of the guild. In its answer the studio declared the N.L.R.B. has no jurisdiction over the industry. First Regional Ad Meet on at Detroit The first of a series of 18 regional meetings to bring details of the industry's $1,000,000 national advertising campaign and better business drive to exhibitors in the field will be held today in Detroit. H. M. Richey, Detroit, independent exhibitor leader, and David Palfreyman of the M.P.P. D.A. have been chosen to conduct the meeting. Gradwell L. Sears of Warners will leave today for Cleveland, where the second meeting will be held tomorrow. Mr. Sears will assist M. B. Horowitz, Cleveland independent (Continued on page 9) Canadians to Join Big U. S. Ad Drive Toronto, Aug. 2. — The plan to organize a cooperative business-getting drive during the week of Sept. 19 under the general name of "Go-to-theMovies Week" by a committee headed by N. A. Taylor, chairman of the Moving Picture Branch of the Toronto Board of Trade, is to be abandoned in favor of the campaign origi(Continued on page 9) Conciliation In Contracts Is Rejected Kent's Committee Turns Down Suggestion The Kent committee drafting a trade practice program has rejected a proposal for a clause in exhibition contracts which would provide for the adjudication of exhibitor grievances by conciliation, it is learned on good authority. At recent meetings of the working committee the idea was broached for a contractual provision by which, if the exhibitor so elected, complaints pertaining to trade practices in a territory would be submitted to the conciliation boards which are projected for individual areas. The idea was, presumably, that submission of grievances would be entirely voluntary on the part of the exhibitor. Compulsory arbitration was held illegal some years ago. Considerable difference of opinion and some opposition to the proposal arose in the committee, it is understood, and after long discussion the committee failed to agree that the idea had merit. "Texans" Held After Rolling Up $41,000 The Paramount and Strand came through with smashing grosses in the week ending last night. Business is good generally at the major Broadway first runs. "The Texans," with Gene Krupa and band on the stage, gave the Paramount $41,000. The attraction is being held, to be followed by "Give Me a Sailor" and Chick Webb and his orchestra. "The Amazing Dr. Clitterhouse" netted the Strand $31,000 in a second week, after the first week's $44,000 The film will go a third stanza. The Criterion will hold "Booloo" a second week, following it with "Army Girl." Russell Hardy Will Quit Justice Dept. Washington, Aug. 2. — Russell Hardy, special assistant to the Attorney General, will leave the Department of Justice this month to engage in the practice of law, it was announced today. Mr. Hardy, who has been connected with the department for 24 years, was in charge of the trial of the film companies in the St. Louis suit. Ascap to Ask For New Term Pacts Shortly Five-Year Agreements to End Oct. 1, 1939 Ascap in the near future may request exhibitors to delegate national representatives to meet with officials of the music licensing society to discuss new long term contracts. Indications are that the same procedure will be followed in effecting new contracts with radio broadcasters. Current theatre and radio contracts with Ascap were made for a five-year term in 1934. They expire Oct. 1, 1939. At this stage it is, of course, too early to predict whether or not Ascap will ask for increases in the prevailing license fees. However, it is known that the society is not disposed to grant reductions. It is believed probable in some informed quarters that the prevailing rates may be maintained and contracts for 10 years or longer may be offered to Ascap's licensees. Before long term contracts can be offered to licensees, however, Ascap itself must renew its contracts with (Continued on page 9) Michalove to Start On Survey Aug. 17 Dan Michalove, assistant to S. R. Kent, president of 20th Century-Fox, will sail Aug. 17 from Los Angeles on the Monterey to undertake a survey of the Hoyts Theatres properties in Australia for National Theatres. He will be accompanied by Irving Barry, (Continued on page 9) Honor Big Family Mansfield, O., Aug. 2.— Prolific progeny among tillers of the soil was rewarded by Frank Dworski, manager, Warners' Madison, in his "Big Family" contest last week. A rural couple was declared the winner when they presented their regiment of 11 children. The contingent was brought here in a miniature motorcade, presented candy and flowers, taken to dinner, paraded to the Madison to see "Love Finds Andy Hardy," and transported back to their country abode.