Motion Picture Daily (Jan-Mar 1940)

Alert, tion Picture Industry DO NOT RF MOTION PICTURE DAILY & 47. NO. 2 NEW YORK, U.S.A., WEDNESDAY, JANUARY 3, 1940 TEN CENTS Plan for RKO Is Confirmed By High Court Cassel, Stirn Pleas for Review Are Denied Washington, Jan. 2. — The U. S. Supreme Court today refused to review two petitions which attacked the order approving the plan of reorganization of RKO. The court orders rejecting the applications of H. Cassel & Co., holder of $217,000 in RKO gold debentures, and Ernest W. Stirn, Class A stockholder, serve as a confirmation of Federal Judge William Bondy's order, subsequently affirmed by the U. S. Circuit Court, which upheld the plan. The Supreme Court order, as is usual in applications to review, gave no reasons for its denial. The full court with the exception of Associate Justice Douglas participated in the decision. The long-awaited ruling will act as a full-speed-ahead signal to bring RKO out of reorganization proceedings, a member of Simpson, Thacher & Bartlett, attorneys for the Atlas Corp., proponent of the plan, stated. Necessary preliminary steps before this goal can be reached, he said, (Continued on page 1 1 ) Trade Watches Bills In State Legislature Albany, Jan. 2. — New York's present legislative session, which gets underway tomorrow with Governor Lehman's annual message, _ will consider many measures of interest to the film industry, but none will have as far-reaching consequences as agitation for a two per cent sales tax. Despite the necessity for adoption of an enabling act to govern pari-mutuel betting as approved last November, agitation for repeal of the cigarette tax, renewal of the drive to put across I.A.T.S.E.'s "full crews" bill and a score of other important legislative bits favored or opposed by exhibitors and distributors alike, the urgent need of upstate municipalities for relief funds will be centered on sales tax proposals. On the brink of their lawful borrowing power, many upstate cities, towns and villages believe the sales tax is their only salvation, while New York City and in general labor unions (Continued on page 11) U.A.Will Contest G o 1 d wynWarner 'Westerner' Deal United Artists will contest in the courts Samuel Goldwyn's right to enter into a distribution contract with Warners for his picture, "The Westerner," Charles Schwartz, United Artists counsel, said yesterday. Schwartz said that the form which the legal opposition would take could not be disclosed at this time due to the fact that United Artists has no official information that a distribution deal has been made by Goldwyn with another company. Its present information is limited to press reports. "We will look into the matter," Schwartz said, "and if the press statements are substantiated, we will defend our exclusive distribution contract with Goldwyn with every legal means at our command. Our position has not changed. We intend to hold him to his contract with us." The Warner studio succinctly announced late Monday that : "Negotiations have been completed with Samuel Goldwyn for the distribution of 'The Westerner,' starring Gary Cooper and directed by William Wyler." Studio officials refused to comment further on the closing of the deal, as did Goldwyn. Max D. Steuer, Goldwyn's New York attorney, likewise maintained his silence. United Artists officials referred inquiries to the company's attorneys. Unofficial conjecture held that United Artists would seek an injunction to restrain Goldwyn from de(Continued on page 11) Berman Praised By Louis Mayer Hollywood, Jan. 2. — Louis B. Mayer today lauded Pandro S. Berman, newest member of the M-G-M executive personnel, as "one of the most outstanding young producers in the industry today." Mayer said Berman would report for active duty as soon as he finishes his current vacation. Berman, who left RKO Dec. 15, was represented in the M-G-M deal by the William Morris Agency. Metro Orders Night Reserved Seat Sale For All 'Wind' Dates Reserved seat admissions will prevail for all "Gone With the Wind" evening shows during engagements which will open from now on. This has been decided by the M-G-M distribution department as a result of tests with reserved and unreserved admission policies in seven representative cities. During the first week of the run at the Capitol it was found that the large crowds at the theatre led many persons to believe that no seats were available at night and that this discouraged a larger attendance. M-G-M executives believe that the reservedseat policy will obviate this sort of (Continued on page 2) Holiday Grosses Smash 10 Year Broadway Mark Broadway staged the biggest New Year's weekend in 10 years over the holiday, in both first and subsequent run houses Several house records toppled. Night clubs, hotels, and the legitimate stage did a sellout business well ahead of recent years. The weather during the weekend was below freezing but it failed to affect the holiday spirit. Out-of-town visitors helped swell the totals. Crowds thronged Times Square in the customary New Year's manner. All film houses, with the exception of the Astor and the Capitol, where "Gone With the Wind" is being shown, played extra shows. The Rivoli and the Rialto were open all night. At the Paramount and the Roxy, higher prices were charged for the midnight shows. The Sunday business broke all-time house records at both the Music Hall and the Roxy. In addition, the weekend record at the Roxy was also broken. At the Music Hall, "The Hunchback of Notre Dame," with a stage show, which did not open until Saturday, drew an estimated $61,000 for the weekend, with an estimated $25,000 on Sunday. The previous house record was $23,000 set in 1936 with "Follow the Fleet" on Washington's Birthday. The Roxy played to 89,207 persons over the weekend with "Swanee River" and a stage show as the at(Continued on page 6) RKO, 'IP Sign Deal With Ad Accessories Becomes Effective Feb. 1; Trailers Included Deals for distribution by Advertising Accessories, Inc., of all RKO and Universal accessories have been closed, Charles Casanave, vice-president and general manager of the new National Screen Service subsidiary, stated yesterday. The deals follow closely upon the one closed with Paramount last week, and additional deals are being discussed with other major distributors, Casanave said. Like the Paramount deal, the RKO and Universal arrangements will become effective Feb. 1 and also include distribution of the trailers of all three companies. The inauguration of this new method of marketing all display advertising on major company product marks the beginning of a new phase in theatre advertising, Casanave asserted. It is the first time that large distributors have authorized the sale and distribution of their ad accessories by an organization other than their own. Advertising Accessories will establish offices in 31 exchange centers throughout the country. It has its own offices now in 23 cities and will rent space in Paramount exchanges in Albany, Buffalo, New Haven, Pittsburgh, Cincinnati, Indianapolis, Milwaukee, Salt Lake City and Portland, Ore. The last named office may be consolidated later with a Seattle branch, it was said. The accessories handled by the new (Continued on page 11) Fox Pushes Film Work in England Hollywood, Jan. 2. — In spite of the war, 20th Century-Fox will continue production of pictures in England, according to Robert Kane, in charge of company's production activities in England, who arrived today in Hollywood from New York. "War conditions naturally have restricted our activities in England to some extent, but the British government has cooperated splendidly to keep the industry going," said Kane. "As matter of fact we have missed only three days of shooting since the outbreak of the war and that wasn't due to hostilities but to a suspension made necessary when we moved our (Continued on page 6)