Motion Picture Daily (Jan-Mar 1939)

Alert, Picture Industry MOTION PICTURE DAILY VOL. 45. NO. 1 NEW YORK, TUESDAY, JANUARY 3, 1939*>^ TEN CENTS FJP. Canadian Voting Trust Ends March 6 No Change in Control of Company Expected Toronto, Jan. 2. — The votingtrust agreement of Famous Players Canadian Corp., instituted almost 10 years ago, is due to expire March 6, 1939, when the voting trust certificates will be replaced by common shares with full voting power for their respective holders. Announcement is made locally that 189,000 shares have been under the jurisdiction of the agreement, the trustees of which are President N. L. Nathanson, I. W. Killam of Montreal and Adolph Zukor. In view of the 189,000 shares controlled by management interests, it is likely that no change of control will occur when the trustee agreement expires, although the public probably will begin to. have a greater voice as stockholders of the company. Latest Balance Sheet According to the latest balance sheet of the company, 408,524 of the authorized 600,000 common shares of the company have been issued and are fully paid while Nathanson is expected to take up an option on Jan. 15 for 11,000 more shares from the treasury at' $13.75 per share, his last purchase of a similar block under option m 1937 being $13 per share. A further 33,000 shares are under option to the company president at prices ranging from $14 to $17 per share. Holdings of individual shareholders are not available although it is stated that a controlling interest in the Canadian company is held by Paramount Pictures, Inc. The balance sheet of Famous Players Canadian Corp. shows assets of $16,214,954, of which $10,969,856 are fixed assets at cost, including land, (Continued on page 5) Wurtzel Dropping Series at 20th-Fox Hollywood, Jan. 2.— Sol Wurtzel has decided to abandon three of the six series of pictures earlier contemplated at 20th Century-Fox. Those being dropped are the Sports Adventures, Big Town Girls and Roving Reporters. Retained are the Charlie Chans, the Mr. Motos and the Jones Family groups. Radio — Page 12 N. Y. Critics Pick Cagney, Sullavan And 'Citadel' Best New York's newspaper film critics in their annual poll have voted "The Citadel" the best picture of 1938. James Cagney took the honors for the best masculine performance in 'Angels with Dirty Faces," and Margaret Sullavan won the feminine award for her performance in "Three Comrades." Miss Sullavan also was selected the leading feminine star of the year in a poll among the 2,000,000 readers of the Daily Express in London. Spencer Tracy was named the best masculine star of the year in the English voting. The New York critics named Alfred Hitchcock best director for "The Lady Vanishes," and "Grand Illusion" was voted the best foreign picture of the year. "Snow White and the Seven Dwarfs" received a special award. It was not included in the general competition because it is a cartoon and therefore a special medium. The awards will be presented next Sunday at the Rainbow Room, Rockefeller Center, with an NBC coast-tocoast hookup arranged. The English poll put Will Fyffe and Anna Neagle in second place, with Edward G. Robinson and Bette Davis third. Film of the year was "Snow White," with "Test Pilot" and "A Yank at Oxford" following. Walt Disney was voted by the English the personality of the year. FILMS TO PROMOTE PAN-AMERICA TIES American Interests Acquire Dufaycolor From British Group Ownership and control of Dufaycolor, Inc., color film producer, yesterday passed from British hands to an American group headed by Pierpont Morgan Hamilton, who will be president of the new firm, Dufay Co., Inc. The company was separated from the English parent company, DufayChromex, to permit independent operation and is being reorganized for expansion into the motion picture field. The British company will retain minority interest. When Hamilton assumed the management of the American subsidiary a year ago, it was with the understanding that it eventually would become an independent unit with Hamilton in control. Transfer of control from Dufay-Chromex did not involve any cash. Dufaycolor is licensed to market (Continued on page 5) 'Lynton ' Authors Awarded $532,152 Against M-G-M In a 35-page opinion which criticized the Copyright Act, Federal Judge Vincent L. Leibell Friday confirmed an 'award reduced to $532,152 against Metro-Goldwyn Pictures Corp., Metro-Goldwyn-Mayer Distributing Corp., Loew's, Inc., and Culver Export Corp. in favor of Edward Sheldon and Margaret Ayer Barnes for infringement of their play "Dishonored Lady," in the motion picture, "Letty Lynton." Judge Leibell scaled down the award from $587,604 recommended by Special Mastor Gordon Auchincloss, who fixed that amount as the net profits of the picture. At the same time Auchincloss was allowed $15,305, and O'Brien, Driscoll & Raferty, as attorneys for the plaintiffs, $55,000, which will be additional assessments against the defendants. Judge Leibell termed the Special Master's report as "excellent," but criticized at length the effect of Section 25 of the Copyright Act, which made it mandatory to charge the defendants with the entire net profits. He said, "In my opinion it is punitive and unjust to award all the net profits of the motion picture, 'Letty Lynton' to the complainants in this case. Yet, under the wording of the Copyright Act (Section 25) as interpreted by the decision of the Appellate Court, I can do nothing less." The opinion continued that under this rule no consideration was given for the "dramatic talent" and the "drawing power" of Joan Crawford and Robert Montgomery, or for the skill of the directors and technicians. Twenty-five per cent of the net profits "could be justly fixed" as the proper assessment, Judge Leibell said. The decision awarded $248,095 against Metro-Goldwyn Pictures ; $59,570 against M-G-M Distributing; $84,209 against Loew's and $140,278 against Culver Export Corp. The contention of Culver Export Corp. that the court had no jurisdiction over profits of the picture from foreign sales, was overruled. Suit was filed in 1932. Dismissal in District Court was reversed. United Artists Leading Way with Seven of 30 Pictures Planned By AL FINESTONE Films are to play an important part in bringing greater goodwill and understanding and in cementing relations, culturally and otherwise, between the United States and Latin American countries. United Artists, under leadership of Maurice Silverstone, operating head, leads the way. This company will distribute at least seven films out of the nearly 30 Spanish language films now being planned by seven of the leading firms. The number of films for the Spanish market which is now contemplated is evidence of the increasing interest being shown here for the Latin American public. So. Am. Production Gaining Spanish American production has been on the upbeat, too, and together with American films, the Latin American public stands to get an improved as well as greater number of their own language films. This market also can serve to offset lost revenue in totalitarian countries. M-G-M and Warners, thus far. have no plans ready on Spanish feature length films. Warners, however, are considering a series of two-reel shorts on American and Pan-American themes which will be made in English and Spanish versions. Definite decision on this may come shortly. The number of Spanish language pictures to be released by American distributors in the coming year will approximate about 25% of the estimated total of 110 films made in Latin America this year — in Mexico, Argentina, Cuba, Colombia, Venezuela, Chile, Peru and Brazil. Mexican product appears to predominate in the American companies' releases. Less than half of the Americansponsored films will be produced in Hollywood. There are two schools of thought in this connection. One believes that Hollywood's skill and experience are valuable assets. The (Continued on page 5) Year in Review Day-by-day developments in the film industry during 1938, as reflected in the headlines of the past 12 months, are published today, beginning on page 8.