Motion Picture Daily (July–Sept 1938)

Alert. Intelligent to the^ Picture Industry °o not MOTION PICTURE DAILY m 44. NO. 64 NEW YORK, FRIDAY, SEPTEMBER 30, 1938 TEN CENTS FCC May Halt Renewals for Nine Stations Hearings Ordered After Preliminary Study Washington, Sept. 29. — Operating licenses of nine broadcasting stations were today placed in jeopardy by the action of the Federal Communications Commission in ordering hearings on applications for renewals as a result of preliminary investigations which the commission said brought before it alleged instances of "possible doubtful public service or possible violations of the act and rules of the commission." Those cited were KLCN, Blytheville, Ark., for alleged violation of rules ; WTCN, Minneapolis, for program service, with particular reference to the program "Beyond the Horizon" ; WJRD, Tuscaloosa, Ala., violation of rules, violation of act, management contract, and program service, particularly "Radio Auction" ; (.Continued on page 8) George Batcheller Dies; 111 2 Days George Randall Batcheller, president and general manager of Chesterfield Motion Picture Corp., died Wednesday at his home, 4570 Boston Post Road, Pelham, following an illness of two days. Death was due to a heart attack. Mr. Batcheller was 48 years old. A son, George R., Jr., who is an assistant director for Republic, flew in from the coast yesterday to make funeral arrangements. Services will be held at 2 P. M. tomorrow at the Batcheller residence, with Dr. Willard P. Soper of Huguenote-Memorial Church, Pelham, officiating. Inter (Continued on page 2) 20th-Fox Sales Up 15% Over Last Year A 15 per cent increase in 20th Cen-' tury-Fox sales over last season was reported by Herman Wobber, general manager of distribution, on his return yesterday from a tour of branches with James P. O'Loghlin, Kent drive leader, in connection with the drive. The increase covers the number of contracts sold. Revenue is also running ahead of last season, Mr. Wobber said, and he was optimistic for the company's performance during 1938-'39. He based this optimism on the inventory (Continued on page 7) Lawyers Study Next Move in Trust Action Confer Here as Result Of Arnold Meeting Counsel for the five major companies having theatre affiliates reported back to their principals yesterday on the developments at the meeting with Department of Justice officials at the Georgetown home of Col. William J. Donovan, counsel for RKO, Wednesday night. The attorneys are scheduled to meet today to discuss the viewpoints of their principals in the light of the Government's attitude on the subjects touched upon at Wednesday's meeting. These subjects are reported to have been the maintenance of the status quo of affiliated theatre operations pending determination of the Government antitrust suit ; the department's views on a basic approach to a consent decree; (.Continued on page 6) T. R. Williams Made Treasurer for G.N. T. R. Williams, Educational treasurer, has been designated treasurer of Grand National Pictures, completing the new company's slate of officers. Earle W. Hammons is president of Grand National ; Jack Skirball, vicepresident and production head ; George Blake, secretary, and Harold Saxe, assistant treasurer. Edward L. Alperson is general sales manager, but is not an officer of the company. Educational and Grand National headquarters will be established in the new Associated Press Building now nearing completion in Rockefeller Center. A long term lease for office space will be signed Monday (Continued on page 6) Momand Hearing Is Delayed to Oct. 24 Oklahoma City, Sept. 29. — Because the taking of depositions in New York of defendants has not been completed hearings in A. B. Momand's Federal anti-trust suits against Griffith Amusement Co., 20th CenturyFox and other distributors was continued today by A. P. Murrah, U. S. District Judge, until Oct. 24. Mr. Momand is asking triple damages of $4,900,000 from the defendants, charging they conspired to run him out of business. He now operates one theatre at Shawnee, Okla., but formerly had 18 houses in the "King" Starts Big "If I Were King" grossed $18,700 in its first two days at the Paramount and is headed for a $75,000 week, or nearly double the average for the house. Despite the fact that the theatre advanced its opening hour to 8:30 A. M., lines stretching into 43rd St. have been on hand an hour before the opening time and holdouts have been the rule throughout the first two days. The crush was so great at the Broadway entrance yesterday noon that five police cars were summoned to untangle traffic at the 43rd St. corner. Political Change Brings Relief to English Industry By AUBREY FLANAGAN London, Sept. 29. — A tremendous feeling of relief was evident in the film industry here today at the turn in the political situation. The business had come to a virtual halt in the past few days. Theatres throughout the country suffered heavily at both evening and matinee performances, and there was little or no trading in Wardour St. For the most part studios have been operating normally, despite the call to mobilization which took many employes. No theatres have been closed and all are continuing to collaborate with the authorities in propaganda and similar work. The (Continued on page 7) MPTOA Asks Sales Heads to Sessions Invitations to all sales managers to attend the M. P. T. O. A. national convention at Oklahoma City, Oct. 30 to Nov. 2, were mailed yesterday from the New York office. Bids will go out today and early next week to independent exhibitor leaders, independent producers and distributors, Hollywood executives and representative exhibitors who are not members of either national exhibitor organization. Officers of Allied States, the I. T. O. A. and other independent exhibitor organizations are included in the list. Among those to whom invitations have been sent are A. Montague, Columbia ; William F. Rodgers, Loew's ; (Continued on page 61 Final Moves Before Court On RKO Plan Judge Critical of Plea For SEC Intervention Reorganization of RKO moved into the final stages yesterday when U. S. District Court Judge William Bondy started hearings on a motion to confirm the report of Special Master George W. Alger, which approved the proposed plan. With only two exceptions, all creditor interests have approved the plan. Ernest W. Stirn, holder of the unconverted Class A stock, presented a petition to have the provisions of the recently enacted Chandler Act applied to the present proceedings. Granting of this petition might set the plan back for months. Indications from Judge Bondy during the argument pointed to a denial of the motion. At the request of Hamilton C. Rickaby, attorney for Atlas Corp., the proponent of the plan, Judge Bondy (Continued on page 6) RKO Has HalfYear Loss of $480,176 A consolidated net loss of $480,176 was reported yesterday by the Irving Trust Co. for RKO operations for the 26 weeks ended Tuly 2. This compares with a net profit of $1,442,710 for the same period last year. The RKO operating companies reported a net profit of $416,478 for tin; period, compared with a profit of $751,595 for the corresponding period last year. RKO Pathe News showed a net profit, after all charges, of $117,574 for the 26 weeks, compared with a profit of $2,080 for the first half of 1937. RKO Radio Pictures, Inc., and subsidiaries, the producing and dis (Continued on page 6) Report 80% of Ascap Members Sign Pacts A report on the acceptances of Ascap's new 10-year contracts for member authors and composers showing that more than 80 per cent of the membership already has executed the new contracts was presented to the Ascap board of directors at a meeting yesterday. The acceptance of the pacts provides the basis for an offering of 10-year contracts to the society's licensees to replace the five-year contracts which expire next year.