Motion Picture Daily (July–Sept 1938)

.ednesday, August 3, 1938 MOTION PICTURE DAILY Approve GN Merger with Educational {Continued from page 1) be taken over completely by itside group, Mr. Wright, ad-essing the meeting, said that Educabnal, under the proposal being con(dered, would put up $400,000 in cash lid its total assets amounting to ap-oximately $2,000,000 gross residuals om the 20th Century-Fox distribulon of shorts to form the new corbration. Stock in the new firm, he said, ould be issued in proportion to Edu'itional and G.N. stockholders and lie new organization would assume 11 obligations of G.N. except trustees' pes. Creditors Provided For Creditors under the proposed deal ould have the option of taking pre[ '?rred stock for liquidation of debts r writing off debts for approximately [j wo-thirds of the figure for cash. The ■wo-thirds figure, Mr. Wright said, i.as a conservative estimate. A feature of the Educational rerganization would be the forming of .nother corporation with minimum apitalization of $1,000,000 to finance dded pictures for G.N. distribution •utside of the 26 from Fine Arts. The value of the trustees' estate at •resent is declared by Mr. Alperson o be approximately $600,000 residuals >n old pictures in distribution. Mr. A right also disclosed that a Philadelphia law firm had written him askng information on G.N. for possible nvestors whose identities were not ilisclosed. He will talk to these representatives during his New York stay, ic declared. Title First in Series Hollywood, Aug. 2. — "Murder 3lane" has been set as the title for he first of the Warner Secret Serice pictures. Wall Street Board Holds to Small Gains Net ~2oas. Tons. pfd. e. k. ... Open High IRKO .... |°0th Fox . »th pfd. . Tniv. pfd. W. B. .. W. B. Dfc VA VA m VA 154 m '% m 177 m% 177 17754 1444 1444 1446 1416 4846 4954 4846 4844 106 106 10554 10554 1054 1044 1054 1046 90 90 90 90 10** 1044 1046 1044 m 9% 9 954 2->A m 2% VA 2454 2554 2454 25 3354 3344 3354 3344 39 39 39 39 646 646 646 646 35 3654 35 3654 + 54 56 54 + 54 + 44 54 + 54 + V* Curb Trend Improves Col. Net Open High Low Close Change 1454 1454 1454 1454 +154 G. N 9/16 46 54 54 56 Sentry .... 5/16 5/16 5/16 5/16 Monogram 246 246 246 246 — 56 Tech 2444 2544 2444 2554 + 54 Trans-Lux 246 246 246 246 + 56 Warner Bonds Rise a Point Net High Low Close Change Loew 354s '46. . . . 9944 9944 9944 — 54 W. B. 6s '39 78 77 78 +1 (Quotations at close of Aug. 2) First Regional Ad Meet on at Detroit {Continued from page 1) leader, in conducting the meeting there. He will continue to Chicago, where the third regional meeting, at which Edwin Silverman, independent circuit operator, will preside, is scheduled for Friday. Independent exhibitors are asked to contribute to the campaign fund on the basis of 10 cents per seat. A purchasing committee for the campaign, consisting of Agnes Mengel, chairman, of Paramount ; Jerry Loeb of Warners and Ida Garretson of United Artists, was named yesterday by George J. Schaefer, director of the campaign. Canadians to Join Big U. S. Ad Drive {Continued from page 1) nating in the United States under the direction of the Joint Committee for Motion Picture's Greatest Year of which George J. Schaefer is chairman. The reason for the switch in arrangements, which is yet to be officially sanctioned by the Canadian committee, is obviously that a united campaign coordinating with that in the States would have advantages in the use of extensive advertising material under preperation, while announcements in publications having circulation in Canada, together with appropriate radio programs, would be applicable to the Dominion without change. The proposal now under consideration here would bring about the advancement of the campaign opening to Sept. 1, or more than two weeks prior to the hitherto scheduled Canadian date. Moreover, the campaign would not be confined to the one week, although there has been comment locally that the drive should not cover a lengthy period for the sake of making it pointedly effective. The Canadian committee has been in touch with Chairman Schaefer for the purpose of working out a cooperative advertising arrangement. Set Coast Drive Bureau Unit Hollywood, Aug. 2. — Gabe Yorke, chairman of the Hollywood committee for cooperation in the industry's national advertising and business building drive, today stated that George Thomas, Joe Shea and Bob Burkhardt have been engaged to head the clearing bureau for the studios' participation. Offices have been opened at 6331 Hollywood Boulevard. Webber Hopeful Over Conciliation Boards Kansas City, Aug. 2. — "The Government's suit against the major companies should not prevent the industry from establishing conciliation boards, or delay the move," says E. E. Webber, Jr.. president of the I.T.O. of Kansas City. "Conciliation boards will be a good thing for the industry generally," he believes. "They won't solve all the problems, but they will go a long way toward it by establishing friendly relations between the exhibition and distribution branches. The industry should be able to take care of at least part of its own troubles." Michalove to Start On Survey Aug. 17 {Continued from page 1) an assistant to Spyros Skouras. Their return is scheduled for early in January. Mr. Michalove's trip results from a request bv Hoyts for an additional investment of $1,000,000 by the National Theatres interests. The Australian group, in which National has substantial holdings, operates 120 theatres. It is Australia's dominant circuit. On Mr. Michalove's recommendation will depend the extent of National Theatres' further capital investment in the Australian holdings. Hoyts' large expenditures for theatre reconstruction has prevented it from paying dividends, and the requested capital would permit completion of the renovation program as well as ease the circuit's present financial situation, it is understood. Mr. Michalove will decide the type of improvements to be made. This is the first time that such a study has been undertaken by National Theatres. He will also study the theatre situation in its relation to distribution, and it is possible that National Theatres' participation in the operaton of Hoyts may be separated from the 20th Century-Fox distribution organization in Australia. Loew's Going After Some New Customers A campaign to convert non-filmgoers is being conducted by the Loew circuit, as a challenge to a recent magazine estimate that there are 50,000,000 persons in the United States who never or seldom attend film theatres. Newspaper tieups on the campaign have to date been made in Cleveland, Houston, Washington and on Long Island. Readers are asked by the film critics to write in and explain why they are infrequent filmgoers or abstainers. The letters are published, and local Loew managers attempt to convert the non-filmgoers by inviting them to see a current attraction. While the idea is aimed to promote interest in the screen generally, Loew theatres are tying it in with current films. Oscar A. Doob, Loew's advertising head, devised it. McGowan Secretary Of Director Guild Hollywood, Aug. 2. — The Screen Directors Guild has signed as executive secretary J. P. McGowan, oldest Hollywood director in point of service. He replaces F. Herrick Herrick, resigned. Mr. McGowan started directing in New York in 1910 and moved to the coast in 1912. Canada Gets 16mm Shows Toronto, Aug. 2. — Superior Road Attractions, a subsidiary of Superior Films, Ltd., an independent film exchange of which H. G. Price is general manager, has entered the 16 mm. field with the placing in commission of a two-ton motor van to tour the towns and hamlets which are not served by theatres. A series of one-night stands has been lined up for the Province of Ontario to be followed by the exploitation of the Middle West Provinces. Ascap to Ask For New Term Pacts Shortly {Continued from page 1) publishers, composers and authors who are members of the society, as these organizational pacts also expire at the end of 1939. The proposal of the society to deal with an exhibitor's — and, probably, a broadcasters' — negotiating committee prior to drafting new long term contracts for licensees, is believed to be the result of Ascap's 1934 experience in arbitrarily announcing a new schedule of license fees which, exhibitors claimed at the time, represented an increase in the music tax of from 300 to 1,000 per cent. The society's action brought about a coalition of all national and local exhibitor forces, Allied States, M.P.T.O.A., regional and unattached exhibitor organizations, affiliated and independent circuits, to combat the proposed increases. Change Per Seat Charge The fee up to that time had been a flat 10 cents per seat. The proposed new rate was equivalent to the highest night-time admission charged by the theatre, in some instances as high as $1 per seat. The exhibitors formed a national emergency committee, laid plans for raising a war chest to combat Ascap in the courts and retained George Z. Medalie, New York attorney. At this juncture, the Government filed its still untried anti-trust suit against Ascap, the exhibitors dropped their litigation plans and a compromise establishing the present music tax fees was reached. The present rates are five cents per seat for houses under 800 seats, performing three days or less per week ; 10 cents per seat for houses performing over three days weekly; IS cents per seat for houses from 801 to 1,599 seats, and 20 cents per seat for houses over 1,600 seats. Dionnes Not to Quit Films, Says Manager Toronto, Aug. 2. — F. K. Munro, business manager of The Dionne Quintuplet Guardianship, has officially denied published reports that the quintuplets were to appear in no more films and that they were not to be featured any longer in commercial advertisements of commodities. This puts at rest the rumors engendered by newspaper stories that the Dionne babies would retire from the screen. "Our advertising contracts are continuing uninterrupted and I am making every endeavor to get it across to the public that the children are not going into seclusion," declared Mr. Munro, spokesman for the Guardianship. "There is not the slightest suggestion that the children will be withdrawn from publicity schemes ; they are such public figures." Vance Gets Cincy House Cincinnati, Aug. 2. — Willis Vance, operating the Eden, suburban, has negotiated a new long term lease on the house, which has just been acquired by another owner. I