Motion Picture Daily (July–Sept 1938)

.Alert, ntelligent motion picxtnes DAILY First in Film and NO. 25 NEW YORK, FRIDAY, AUGUST 5, 1938 TEN CENTS Fax on Lower Price Tickets In the Offing "reasury Looking About For More Revenue Washington, Aug. 4. — Reduction ext year of the admission tax exempon loomed as a possibility today as reasury officials disclosed that they ould seek extension of all existing uisance taxes. Asked to clarify conflicting reports the Treasury's intentions, Acting ecretary of the Treasury McGill inicated that the Administration could •ot see its way clear to permit any of he existing levies to expire. The nuisance taxes will expire June 0 next, unless extended by act of Congress. Mr. McGill indicated that tome of the levies were being studied ,71th a view to increases in rates, ointing out that the anticipated $4,rOO.000,000 deficit made it necessary o collect all the taxes possible. While Treasury officials refused to discuss the tax situation in detail, t is known that suggestions have been nade that a reduction in the admissions tax exemption might bring a :onsiderable revenue. During the war ieriod a tax was applied to all admissions in excess of 10 cents. Atlas-RCA-RKO Deal Awaits Trade Pickup Renewed negotiations by Atlas Corp. for the purchase of RCA's remaining RKO securities depend on an improvement in the film business, it was intimated by Lunsford P. Yandell, executive treasurer of RCA and a member of the RKO board, on his arrival last night on the Manhattan. Atlas Corp.'s option to acquire the securities lapsed July 31. To a direct (Continued on page 8) Patent Office Makes Study of Monopoly Washington, Aug. 4. — Officials of the Patent Office have initiated a study of the thousands of patents held by large companies in various industries to determine the. extent to which monopoly has been furthered by patent concentration, it was learned today. In order that there may be no delay in compiling the information, (Continued on page 6) Radio News — P. 9 Independents To SueB&K, Distributors Clearance, Duals Talks Are Abandoned Chicago, Aug. 4. — All attempts to eliminate double features or change the clearance schedule to five weeks between Loop openings and the first week of release having failed, independent theatre men of Chicago, through their attorney, Joseph Rosenberg, tonight announced they will file suits under the anti-trust laws against B. & K. and major film companies, for injunctions and damages, and will likewise call to the attention of the Department of Justice and Federal Court instances of alleged violation by B. & K. of an injunction (consent) decree entered by Judge Woodward in 1932 in an equity suit brought by the Government against the same defendants, which violations allegedly constitute contempt of Federal Court. This action comes after weeks of negotiations between independent film companies and B. & K. Mr. Rosenberg wrote the distributors on June 18 (Continued on page 8) Skouras and Party Going to K.C. Meet Headed by Spyros Skouras, a National Theatres contingent will leave Sunday for Kansas City to attend the first of two regional meetings of the circuit in Kansas City next Tuesday and Wednesday. The second meeting will be in Los Angeles Aug. 15-17. Herman Wobber, 20th Century-Fox general manager of distribution, and Spyros and Charles Skouras will be (Continued on page 8) TRADE PRACTICE TALKS SUSPENDED Anti-Trust Suit Makes Study by Lawyers Necessary, Says S. R. Kent — Will Decide After Labor Day The industry ■ may be forced to abandon its efforts toward development of a plan of self-regulation of trade practices as a result of the Government's anti-trust suit, Sidney R. Kent, chairman of the distributors' negotiating committee, said yesterday. In any event, Mr. Kent said, a self-regulatory program can not be placed before exhibitors until after Labor Day, when a legal study of the situation will have been completed. Mr. Kent's statement follows : "I have been in the city for the past few days meeting members of the committee appointed to develop a program for a solution of trade problems within the industry. "I am informed substantial progress has been made, but it now seems definite that meetings with exhibitors cannot be held until after Labor Day. The problems facing the various companies which now can only be met after consultation with their counsel because of the Government's suit are so important that they must be studied carefully before anything is done. "Right after Labor Day, and after counsel have given their opinion, it can be said definitely what the position in regard to meetings with exhibitors will be, or it can be said whether conditions, because of the pendency of the Government's suit, make it impossible to meet the exhibitors at all." Mr. Kent plans to return to his vacation home at Rangely, Me., tonight. Ad Campaign Gets Pledges Of Canadians Toronto, Aug. 4. — A large representation of eastern Canada exhibitors pledged their cooperation for the "Motion Pictures' Greatest Year" campaign at a luncheon meeting at the King Edward Hotel here today. About 80 circuit and independent theatre officials and distribution executives attended the meeting, which was conducted by N. A. Taylor, president of the motion picture section of the Toronto Board of Trade. After hearing details of the campaign plans from J. J. Fitzgibbons, managing director of Famous Players Canadian Corp., and H. A. Masters, Canadian general manager for United Artists, the meeting voted to adopt the identical plan originated by the campaign committee headed by George J. Schaefer, general manager of United Artists. H. Freedman, president of (Continued on page 6) Corrigan Welcome to Echo In Broadway Houses Today By AL FINESTONE Exhibitors tonight will begin receiving footage on the frenzied reception to Douglas Corrigan, films that should draw plenty of customers, if the coverage of the newsreels yesterday and the preparations for today are indications. The intrepid, youthful Irish-American was the subject of elaborate newsreel shooting as the Manhattan steamed up the bay yesterday. Not an "angle" was missed. Today the films of the city's tumultuous welcome will be combined with yesterday's coverage for stories varying with the newsreels from 175 to 400 feet and will be delivered to Broadway houses early in the evening, unless plans go awry. Simultaneous release has been agreed upon, (Continued on page 8) U.A. Still After "Gone with Wind" A deal for United Artists' distribution of "Gone with the Wind" is being discussed concurrently with the company's negotiations for a renewal of the Selznick International distribution contract, it was reported yesterday. Maurice Silverstone, chairman of the United Artists executive committee, said, when asked about the re (Continued on page 6) Pearl White Passes After Long Illness Paris, Aug. 4. — Pearl White died here today in the American Hospital. She was 49 and had been ill for several weeks of a liver ailment. Miss White built up an international reputation for her characterizations in silent serial films. She was best known for her performances in "The Perils (Continued on page 8)