Motion Picture Daily (Jan-Mar 1940)

q> ON DO NOT REMOVE PICTURE M.P.P.D.A. OF AMERICA, 28 WEST 44TH ST. , NEW YORK, N. Y. Picture Industry i ™3f^7. NO. 1 NEW YORK, U.S.A., TUESDAY, JANUARY 2, 1940 and v^partial f TEN CENTS 1939 Radio's Biggest Year, Says Sarnoff 9,000,000 More Sets Sold; Employment Jumps "Radio in 1939 enjoyed its greatest year," David Sarnoff, RCA president, declared in his annual year-end statement. Pointing out that the birth-date of broadcasting in the United States is generally regarded as Election Day, 1920, Sarnoff added : "In all history, no other industry ever crammed so much amazing progress into one 20-year span." Sarnoff declared that more people "will actually see and hear the presidential candidates in 1940 by television, than heard the 1920 election returns by sound broadcasting." 9,000,000 Sets Sold in 1939 More than 9,000,000 radio receivers were sold this year, bringing the U. S. total to 45,000,000 in homes and automobiles, he said and characterized those who predicted that the introduction of television would reduce radio sales as "poor prophets." The radio industry gives employment to 400,000 persons in this country and the annual payroll is in excess of $500,000,000, according to Sarnoff. In the RCA organization, employment rose approximately 15 per cent during the year, from 20,400 in 1938 to 23,500 in 1939. 'IT Heads to West For Product Talks Nate J. Blumberg, Universal president, and other home office executives will leave for the Coast on Friday to inaugurate discussions on the corncompany's new season production schedule. William A. Scully, vice-president and general sales manager, and Joseph H. Seidelman, vice-president and foreign manager, will accompany Blumberg to the studio. J. Cheever Cowdiri, Universal board chairman, who returned to New York from the coast over the weekend, will return there by plane on Saturday or Sunday to participate in the conferences. Cliff Work, Universal studio head ; Matthew J. Fox, vice-president, and John Joseph, advertising and publicity director, will represent the studio at the meetings, which are expected to continue for a week or 10 days. Goldwyn Silent On Next Legal Move; Action Up to Steuer Hollywood, Jan. 1. — Samuel Goldwyn today declined to discuss with reporters his next move in his protracted legal efforts to terminate his exclusive distribution contract with United Artists. The producer insisted as he has on other occasions that Max D. Steuer, his New York attorney, is in complete and sole charge of the litigation and that any and all statements in the matter must come from him. Inquiries as to whether a new suit would be instituted in view of the dismissal of the original action in the Wilmington Federal court last week, were referred to Steuer, as were all other interrogations put by newsmen. Max D. Steuer maintained his silence on the Samuel Goldwyn suit dismissal and the next move in the producer's United Artists litigation over the weekend. At the attorney's office it was stated that Steuer was still confined to his home with a cold and that no comment would be made in . his absence. However, trade opinion holds that {Continued on page 8) Walker and Mayor Talk Eastern Films Former Mayor James J. Walker conferred with Mayor LaGuardia Friday in reference to the Mayor's campaign for Eastern film production. Walker refused to comment on the discussion and referred reporters to LaGuardia. LaGuardia said he had discussed the situation generally with Walker who had offered to support the plan. The Mayor indicated that Walker represented exhibitors who favor increased Eastern production, but declined to identify those whom Walker represented. Referring to the status of production itself, the Mayor said : "Some points are now beyond the pioneering stage ; others are rounding out into practical shape." Leon Bergere, who claims to rep (Continued on page 8) 'Raffles' Plays Roxy Following 'Swanee' "Raffles," Samuel Goldwyn-United Artists picture, will play at the Roxy following the run of "Swanee River." The latter film opened at the theatre last Friday, and its stay is indefinite. Radio Control Pact Ratified by Mexico Mexico City, Jan. 1.— The Mexican Senate has at last ratified the North American Radio Control Agreements entered into at the Havana convention in December, 1937. The long-delayed ratification here is seen as eliminating the difficulties which caused United States and Canadian stations considerable trouble. The Senate acted only after long and persistent urging by most Mexican stations. The agreements allocate wave lengths in the Americas and serve to prevent "jamming" of the air lanes. Bondy Delays RKO Hearing to Jan. 9 Hearings on the proceedings of RKO were adjourned Friday to Jan. 9 at 2:30 P. M. by Federal Judge Bondy at the request of Hamilton C. Rickaby, attorney for Atlas Corp. Rickaby told Judge Bondy that the adjournment was necessary to await a U. S. Supreme Court decision on applications to review the order which confirmed the reorganization plan. He announced that subscription warrants under the underwriting agreement had been offered to RKO creditors on Dec. 22 and that the offer would expire on Jan. 8. In order to expedite the carrying out of the agreement, he stated, the time to exercise the option to purchase new stock had been shortened from 20 to 17 days. O. C. Duering, attorney for the Irving Trust Co., is preparing an order transferring RKO assets from Irving Trust Co. to the new RKO company, Rickaby said. Mutual Net Revises Its Financial Set-Up A revision of the capital stock division of Mutual under which seven independent broadcasting organizations controlling 57 of Mutual's 124 stations will share the stock and underwrite the financial operations of the network, was announced Friday by W. E. Macfarlane, president. All 57 stations have renewed their contracts with Mutual for five years, effective Feb. 1. The stock will be distributed among WGN, Chicago; WOR, Newark; the Don Lee network with 33 stations in (Continued on page 8) Film; Air Bills Face Big Tests By Congress Neely Measure to Cause Greatest Debate Washington, Jan. 1. — Passage by the House of the Neely block booking bill, already approved by the Senate, tonight loomed as the greatest legislative threat facing the film industry in the session of Congress which convenes Wednesday. Although a number of measures affecting the motion picture and radio industries are pending in Congress, held over from the last regular session, the block booking legislation is seen by observers in Washington as the only one likely to be enacted although, if the Administration presses, it is possible reorganization of the Federal Communications Commission will be taken up. Only three film bills received attention at the last session, the Neely bill which was passed by the Senate ; the Barbour bill to lift the ban on fight films, also passed by the Senate ; and the Johnson bill to ban liquor advertising by radio, heard by a Senate committee which submitted both majority and minority reports. There are, however, a number of (Continued on page 2) Coast Flashes Hollywood, Jan. 1. — Discussions have been held between Samuel Goldwyn and Warners concerning distribution by the latter of Goldwyn's latest film, "The Westerner." Disposition of that picture was not mentioned when Goldwyn two weeks ago announced that he had terminated his distribution contract with United Artists. Hollywood, Jan. 1. — Pandro S. Berman, former RKO production head, will become associated with M-G-M upon completion of his current vacation. Berman is at Sun Valley, Idaho. He plans to go from there to New York to confer with M-G-M home office officials. Year in Review A review of the year 1939 in the motion picture industry, as recorded in the day -by -day headlines from Motion Picture Daily, appears in this issue, beginning on Page 4.