Motion Picture Daily (Apr-Jun 1940)

6 Motion Picture Daily Tuesday, April 2, 1940 Theatres Affected In Flooded Areas Studios Start Preparation On New High Budget Films Argentina Led S. A. Production in 1939 (Continued from page being in the center of a 300-mile area which is fighting flood conditions. Business is suspended in flooded cities and schools are closed. Theatres, too, are shut down. Lower temperatures eased the situation in upper New York but south of Rochester the Genesee River is raging. A state of emergency exists at Binghamton where the Susquehanna and the Chenango are expected to reach their peaks today. Hundreds of families have evacuated their homes. The Comerford circuit operates theatres in the flood-struck areas. Home offices in New York City are anxiously waiting to learn more definite news about the effect of the flood upon their theatres. Grant Modification In Vineland Case Philadelphia, April 1.— Judge William H. Kirkpatrick in United States District Court here Saturday granted modifications in the subpoenas requested by Warner Brothers Theatres and the major distributors, defendants in an anti-trust suit instituted by the Landis Theatre of Vineland, N. J. Attorneys for the circuit argued that certain books and records ordered of local exchange managers, who have been called in as witnesses, are not necessary for the adjudication of the case, which comes up before Judge Kirkpatrick on April 8 for a final hearing. Pathe Film 1939 Net Reaches $424,489 Pathe Film Corp. has reported net profit of $424,489 after interest, Federal income taxes and other charges, for the year ended Dec. 31, 1939. The net is equal, after dividend requirements on the $7 cumulative, convertible preferred stock, to 64 cents per share on 581,679 shares of common. The net compares with net profit of $77,158 for 1938, or four cents per share. Net profit of Du Pont Film Manufacturing Corp. for the year ended Dec. 31, 1939, was $1,650,274 after charges and Federal taxes, compared with $1,259,566 in 1938. Pathe Film owns 3,500 shares (35 per cent) of the capital stock of Du Pont Film. Walter Miller Dies Hollywood, April 1. — Walter C. Miller, 48, veteran screen actor, who in recent years has appeared in a number of serials and westerns, died over the weekend. Following work on the stage, Miller's film career began with D. W. Griffith of the old Biograph Company. His early films include "The Mothering Heart," Alliance ; "Miss Robinson Crusoe," Metro, and "The Marble Heart," Fox Films. Fleischman Rites Held Philadelphia, April 1. — Funeral services were held here today for Gilbert Fleischman, 44, head booker for the 20th Century-Fox Exchange here for 20 years, who died yesterday in Graduate Hospital after a long illness. He is survived by his wife, Sarah and a daughter Ilene. Hollywood, April 1. — Announcement of preparations for several high budget pictures, set for the next season by various studios, took the fore this week as the most noteworthy news of an otherwise dull period. RKO announced that David Butler's next picture for it will be "Photo Finish," to be made in color with a race horse background. Butler, James Kern and James Edward Grant wrote the original story, and services of Barbara Stanwyck are being sought. John Balderson was put to work on "Khyber Rifles," a Darryl F. Zanuck special at 20th Century-Fox which has been on the fire for some time. M-G-M put Leon Gordon to work on the script of "The Road to Rome," and Mary McCall, Jr., on "Bombay Nights," the latter to star Joan Crawford. Warners reported a plan to costar George Brent and Olivia de Havilland in "Montana," large scale pioneer Western to be adapted from C. B. Glasscock's "The War of the Copper Kings." It will be one of the Warner specials for next season. M-G-M has purchased "Little Nelly Kelly," George M. Cohan's musical show, as a vehicle for Judy Garland. Arthur Freed, song writer turned producer and one of whose film hits was "Babes in Arms," will produce the film, following Miss Garland and Mickey Rooney's finishing "Strike Up the Band." Coast Flashes Hollywood, April 1. — Herman Wobber, in charge of 20th CenturyFox distribution, arrived today to confer over 1940-41 product with Darryl F. Zanuck, Joseph M. Schenck and William Goetz. At the same time it was announced officially that Zanuck would not attend the sales convention, April 13 to 16, in Chicago. The reason assigned was that production duties would be especially heavy for him at that time. While here, Wobber will look over rough cuts of big pictures already completed. Tyrone Power and Linda Darnell were set for leads today in 20th-Fox's "Brigham Young" in which Dean Jagger will play the title role. Walsh, California Circuit Head, Dies San Francisco, April 1. — Morgan Walsh, 46, vice-president of Redwood Theatres, Inc., and owner of the T. & D. theatre, Oakland, died suddenly today of a heart attack. He is survived by his widow and two children. In the theatre business since 1910, Walsh was with Fox as Los Angeles manager, then resigned to reenter exhibition in San Diego. After a later period in sales capacities, notably with Warners, he resigned to take over the T. & D. In 1932 he became vice-president of Redwood, operating about 30 houses in northern California and Oregon. He was formerly president of the Theatre Owners Association of Northern California. Statement on Quota Is Due in Few Days London, April 1. — The British Board of Trade statement outlining the Government's policy on film legislation is authoritatively expected on Thursday or Friday. Indications have been that the existing quota will be permitted to continue indefinitely, with new legislation unlikely to be introduced until the Fall session of Parliament. New Disney Stock Is Oversubscribed The new Walt Disney Productions stock issue has been oversubscribed, according to officials of the company. Public offering of the stock is being officially made today through a financing syndicate headed by Kidder, Peabody & Co. Yesterday, the S.E.C. formally approved the $3,875,000 underwriting. The issue consists of 155,000 shares of 6 per cent cumulative, convertible preferred stock of $25 par value at $25 per share. Of this stock, 5,000 shares are being offered to employes and officers of the company at par value. The remainder is for public subscription. The new stock is convertible into common stock at the rate of one share of common if converted on or before April 1, 1944 ; 9-10 share thereafter until April 1, 1945; 8-10 share thereafter until April 1, 1946 ; 7-10 share thereafter until April 1, 1947; 6-10 share thereafter until April 1, 1948, and one-half share if converted later. A fixed sinking fund of $50,000 will be set aside on or before April 1, 1941, with $100,000 oh or before Oct. 1 and April 1. The company also will set aside out of the excess of consolidated profits over $500,000 a sum equal to 20 per cent of such excess, but not exeeding $200,000 additional in any one year. Both sinking funds are to be applied to the acquisition of preferred shares either by redemption or purchase. A feature for the preferred stock is the provision for insuring the life of Walt Disney for ten years in the amount of $1,500,000. In the event of his death on or before April 1, 1944, while any of the preferred stock is outstanding, the proceeds of the insurance would be put in trust for the benefit of the holders of the outstanding preferred stock. In the event of the death of Mr. Disney after April 1, 1944, the proceeds of the insurance policy would be retained by the company. The preferred shares are subject to redemption at any time at prices ranging from $27.50 a share through April 1, 1944, to $25 a share after April 1, 1949. On completion of this financing, the company will have additional to the preferred, 355,000 shares of common stock of $5 par value. All of the outstanding common stock is owned by Walt E. Disney and members of his family. Washington, April 1. — Argentina led Latin America with 60 feature length productions made during 1939, according to Nathan D. Golden, chief of the motion picture division of the Bureau of Foreign and Domestic Commerce. All Latin American countries produced a total of 131 feature films. Argentina added 10 films Jtp her 1938 schedule of 50 while ■"—■■> xico dropped from 60 in 1938 to \ the past year. Cuba jumped to 12 from two in 1938 while Peru dropped from 11 in 1938 to seven in 1939. Brazil produced six in 1939 as compared with four in the previous year. Chile, which had no production in 1938, produced two in 1939, while Uruguay and Venezuela each produced one during 1939. The foreign production situation has been considerably altered since the outbreak of the war, Golden pointed out. Total foreign motion picture production in 29 countries totaled 1,738 during 1939, an increase of 32 features over 1938. Production in the Far East rose from 967 for 1938 to 1,025 for 1939, while European production dropped from 609 in 1938 to 562 in 1939. (Continued from page 1) attractions, for an average of about 112 per week. The League and the brokers prepared for a fight on another front yesterday when Gerber wired Governor Lehman to request a public hearing on the Mitchell bill which was passed by the Legislature over the weekend. The bill places the licensing powers over ticket brokers in the hands of the city and limits advances to 75 cents per ticket. Gerber declared he would fight the bill. Reilly, of course, is prepared to favor it. He said yesterday that, if it is signed by the Governor, it will aid enforcement of the code materially but that the code would remain in existence to prevent possible law violations and for other features, such as the elimination of the "buy" by brokers in advance of a play's opening in New York. Recapitalization Plan Is Probable for K-A-0 RKO is paving the way for the pos J sible future recapitalization of its 1 principal theatre company, the Keith J Albee-Orpheum Corporation, by ask I ing stockholders of the latter company I to consider the approval of certain I amendments to its certificate of incorporation, at the annual K-A-0 stock : holders' meeting April 10, permitting the K-A-0 management to repurchase < j 3,000 shares of the company's pre )j p ferred stock at $100 per share. Stockholders of the company are to be permitted to offer their snares at this price to the company. Officials state, however, that there is no present plan for such recapitalization. K-A-0 has $3,203,502, cash. Its earnings in 1939 were $976,627, equivalent to $15.18 per share on 64,304 shares of the 7 per cent cumulative preferred stock outstanding. 'Strike' Threatened By Ticket Agencies