Motion Picture Daily (Jan-Mar 1940)

DO NOT REMQ MOTION PICTURE DAILY Fi NEW YORK, U.S.A., MONDAY, MARCH 11, 1940 Alert, Picture Industry V '<$ 47. NO. 49 2-Year Trial Of Trust Suit Called Likely U. S. Attorneys Examine Gradwell Sears Today Trial of the Government's New York anti-trust suit will last at least jtwo years, according to Federal Court attaches responsible for calendar assignments'. In discussions preceding the designation of Federal Judge Henry W. jGoddard as trial judge, it was said, I clerks experienced in the trial of 'previous anti-trust suits estimated that (a multiplicity of defendants in the film suit would prolong the court battle well past two years. Court attaches nave pointed out that trial of the anti-trust suit against I companies in the aluminum industry before Judge Francis G. Caffey has ! continued for 18 months already. The aluminum case, moreover, presents ; considerably simpler issues and comparatively few defendants, it was declared. Many Complex Problems Attorneys for the Government, on the other hand, are faced with a difficult and necessarily prolonged problem of presenting the complex, country-wide situation in the industry to Judge Goddard. In submitting evidence, the Government must cover the production, distribution and exhibition fields of the industry and must prove its allegations of coercion and monopoly in hundreds of instances scattered over the entire country. This view of the situation held by court clerks is strikingly borne out by the Government's list of prospective witnesses filed last Wednesday. Over 500 witnesses were identified (Continued on page 2) 50 Film Stars Going To 'Virginia City' Warners will play host to 50 Hollywood stars, and 150 correspondents, columnists and radio celebrities at the world premiere of "Virginia City" at Reno and Virginia City, Neb., next Saturday. A 16-car train will leave Hollywood on Friday, being met bv three more cars bearing Eastern and Midwestern correspondents, at Truckee, Cal. Two cars will be decorated to simulate the old Crystal Bar of Virginia City in 1 the gold rush days. The train will serve as hotel for the guests during the stay in the Nevada town. En route to Nevada the train will (Continued on page 2) Republic's Gross Shows 7y2% Boost Despite War Loss Gross income of Republic Pictures Corp. in 1939 was approximately $7,960,000, an increase of 7*4 per cent over 1938, despite curtailed revenue from Great Britain and elsewhere in Europe. The 1938 gross was $7,373,972. This is reported to Consolidated Film Industries stockholders in the annual report of Herbert J. Yates, president. The report shows net income for Consolidated in 1939 of $628,297, compared with $616,696 in 1938. With respect to Republic, the report says Consolidated's investment in the subsidiary is the same as made in 1937 and that it is continuing She financing and production of Republic pictures "from which this company derives, and which enables it to maintain, a large volume of laboratory work and accessories." Yates in his report states that 1939 showed "further progress and expansion in the organization and business of Republic," and that continued growth is anticipated. The annual meeting of Consolidated (Continued on Pane 3) Seek Settlement Of Warner Strike Miami, March 10. — Possible settlement of the controversy in Philadelnhia between the musicians' union and Warner theatres is being discussed here with Joseph N. Weber, president. American Federation of Musicians. Here for the conferences are Frank Phelps of Warners and Anthony Luizzi and Rex Riccardi, president pnd secretarv, respectively, of the Philadelnhia local. Officials of the local have been seeking action by the national Federation against Warners in an effort to bring the three-months-old controvery to a head. 4 scan Hears Radio Report This Week A .final report on Ascap's new contracts with radio broadcasters may be completed at the next meeting of the society's radio committee, to be called within the next few davs. A snecial meeting' of the Ascap board will be called to consider the report as soon as it has been completed. The radio committee failed to complete its recommendations at a meeting held late last week and there is still a possibility of a minority report developing at the final meeting due to marked differences of views within the committee. 200 Philly Theatres Close Good Friday Philadelphia, March 10.— About 200 theatres in Philadelphia and suburban areas will close on Good Friday, March 22, for all or part of the day, it was announced by the Citizens' Good Friday Observance Committee. None of the center-city theatres will close. SEC Report Shows Film Stock Changes Washington, March 10. — Disposition of 2,800 Universal Corp. common voting trust certificates by William Frieday, director, reducing his holdings to 100, and receipt of 10,000 common voting trust certificate warrants by Nathan J. Blumberg, president, under an employment agreement, were the largest transactions of film company officers and directors in the securities of their corporations reported over the weekend in the first January summary of the Securities and Exchange Commission. Included in the summary were a half-dozen other transactions, all of them relatively small, among them the acquisition of 100 shares of General Theatres Equipment common stock by Robert L. Clarkson, director, representing his total holdings ; the disposition, by gift, of 500 shares of Keith-Albee-Orpheum convertible (Continued on page 3) Sponsor May Cancel Fidler's Broadcasts Chicago, March 10. — Continuation of Jimmie Fidler's Hollywood broadcasts under the sponsorship of Procter & Gamble on behalf of Drene shampoo is reported as doubtful here. Reports are that he will go off the air April 23. Results of the Drene contest starting this week may determine whether Fidler's option will be picked up Action on Fidler's program is scheduled this week bv H. W. Kastor & Sons agency which handles the account. Bioff to Learn Fate In Chicaao Friday Chicago, March 10. — Chief Justice Prystalski of Criminal Court, after taking under advisement the case of William Bioff. I.A.T.S.E. leader, gave him permission to go to California. Bioff must be back here on Friday when Judge Prystalski will announce his decision. Bioff was extradited from the Coast on a charge of never having finished a Chicago jail sentence in 1922. rst in partial TEN CENTS Bioff to Coast As Wage Fight Nears Parley Studios Deny Abandoning 10% Increase Battle Hollywood, March 10. — Both the producers and the studio unions, embroiled in the controversy over the 10 per cent wage increase, moved closer into sparring positions over the weekend as indications appeared that they were ready to resume negotiations on the matter. Declaring that it had not received a letter from the producers, the Conference of American Federation of Labor Studio Unions, through its vice-president, J. W. Buzzell, announced that it was "assuming" that by the producers' silence that they were dropping the request for revocation of the wage increase. Y. Frank Freeman, chairman of the producers' committee, immediately answered the "assumption" by informing Motion Picture Daily : "The unions are at perfect liberty to make any assumptions they wish, but nothing has been abandoned." This was interpreted to mean that the producers will press their fight with the unions over the 10 per cent wage boost. The A. F. of L. Conference dispatched a letter to Freeman, demanding an early meeting to discuss revisions of working conditions and the awarding of bargaining contracts to several locals not as yet recognized by the producers. This letter was prepared following a telephone conversation between Buzzell and William Bioff, I.A.T.S.E. leader, in Chicago, where Bioff had a Friday hearing on a 1922 unfinished jail sentence. Bioff was granted the court's permission to go to the Coast until next (Continued on page 3) Re-Election of All 'U' Directors Expected All directors of Universal Pictures Co., Inc., are slated for re-election at the annual meeting of the company's stockholders to be held Friday in Wilmington, Del. Proposals for a plan of recapitalization for Universal, several of which have been under consideration during the past few months, are still undetermined and no plan will be in readiness for discussion at the stockholders' meeting. However, the general purposes and aims of the recapitalization probably will be outlined at the meeting.