Motion Picture Daily (Apr-Jun 1940)

4 Motion Picture Daily Friday. April 5, 1940 Defendants Cooling on Trust Pact {Continued from page 1) legislation in the short time remaining of this session of Congress, which heightens the seriousness of the matter as an obstacle to achieving a settlement. Indications are that four or five of the eight major companies are either opposed to acceptance of a consent decree or do not regard the Department of Commerce proposals as acceptable in their present form. No formula for extending the settlement proposals to cover those companies which would not accept a consent decree voluntarily has been discovered yet. Until one has, even those companies which favor a settlement will be wary of relinquishing competitive advantages to companies who will not be bound by the restrictions of a decree. In addition to company opposition to a decree, several Allied States units are on record as being opposed to an out-of-court settlement of the suit. Their stand is likely to have some influence with the Department of Justice which brought the suit originally on the complaints of Allied members, among others, and will be obliged to relv heavily on their testimony if the suit goes to trial. Moreover, the Department is unfamiliar with trade operations and feels the need of counsel from some trade source on the probable effects of the proposed decree when put into operation. A third draft of the Department of Commerce proposals, revised in several major respects, has been forwarded to company heads in New York within the last day or two, making it apparent that settlement efforts are proceeding without interruption despite the numerous obstacles in the way of an effective agreement. Tot o' Gold' Revises Its $1,000 Giveaway Starting on April 30 Following nationwide exhibitor protests and a Department of Justice investigation of the possible lottery aspects of the "Pot o' Gold" program heard over NBC-Red on Tuesdays, Lewis-Howe Co., the sponsors, announced yesterday that the style of the program would be changed on April 30. The title and the $1,000 giveaway will be retained but the method will be changed. There are about a dozen plans under consideration. At present, a telephone number is selected by chance and called directly from the studio. If the phone is answered, the telephone subscriber receives $1,000; if unanswered, he receives $100 and the $900 balance is added to the following week's prize. Two stations, WFBR, Baltimore, and WDAF, Kansas City, have refused to carry the show since the end of the second 13week period. Goddard Hearing Indefinitely Postponed Hearing scheduled yesterday before Federal Judge Henry W. Goddard to fix the terms of an order directing the Government to serve an additional bill of particulars in reference to its anti-trust suit, was postponed indefinitely. Grosses Continuing Strong on Broadway Broadway business continued on a high level with three holdovers producing creditable grosses. "It All Came True" opens today at the Strand with a stage show headed by Eddy Duchin and his orchestra and Gil Lamb. "Virginia City" with George Olsen's band on the stage, finished its second week at the Strand with an estimated $34,000. "Primrose Path," with a stage show grossed an estimated $39,000 in its second week at the Roxy and holds over for a third week. "It's a Date" drew an estimated $25,000 for its second week at the Rivoli and also holds over. "The House of Seven Gables" will be the next attraction at the Rivoli. 10% Elimination Is Out, Says Montague (Continued from page 1) tury-Fox, are both scheduled to appear next Wednesday. Montague stated that since the policy of favoring independents had been established nationally seven years ago, "we have succeeded very well with it." Independents have paid higher rentals for their films and have given Columbia better advertising, he continued. When an exhibitor asks for more clearance than Columbia is willing to extend, no sale is made, the sales chief stated. As a matter of fact, he said, Columbia has more difficulty in thrashing out the clearance question between two independents than between affiliates. "When an independent gets more than one theatre, he thinks he is God's gift to the industry," Montague declared. In that event, an immediate demand is usually made for better clearance, he said. Most of Columbia's franchises are extended to independents, Montague added, the company offering two and three-year franchises to independents where the theatre is not likely to change hands and no selling difficulties have been encountered with the operator of the theatre. Sales of a year's product averages 29 units to a theatre owner, Montague declared. Not more than 33 per cent of its accounts order an entire season's product, he continued. Sen. Lundeen Gets Time to Answer Fly Senator Ernest Lundeen of Minnesota, who introduced a resolution in the Senate for an investigation of the F.C.C., will speak on the NBC-Red, 8:45 to 9 P. M. tomorrow in answer to speech which F.C.C. Chairman James L. Fly made Tuesday over NBC and Mutual. Chairman Fly defended the Commission's supervision over the sale of television receiving sets. Radio Brevities Hearing to Study Television Sales Washington, April 4. — Television hearings which open before the F.C.C. Monday will be concerned principally with the influence which may have been exerted upon video research by the adoption of sales promotion plans following the order permitting limited commercialization, it was disclosed today. In a statement, the Commission expressed the hope that parties who testified earlier that they were engaged in research activities would submit information as to their more recent efforts along that line so that the present situation may be fully disclosed. Such witnesses also will be asked regarding their activities since the Commission's first order and "any changes in the situation as a result of sales promotion." The question whether Sept. 1 is an appropriate date for starting limited commercial programs will also be considered. Dividend Is Omitted By RKO Directors At a meeting of the board of directors of Radio-Keith-Orpheum Corporation yesterday afternoon, the board considered the matter of a quarterly dividend payable May 1, 1940. Although earned in the quarter by consolidated company, in view of uncertain conditions in the industry, particularly those resulting from the war, the board took no action to pay the quarterly dividend. Lawrence Whoops It Up for 'Command' Lawrence, Kan., April 4. — William Quantrill — or Cantrell as he is called in the picture — made his second raid on Lawrence today with the world premiere of Republic's "Dark Command" at the Granada and Dickinson theatres. A crowd of 5,000 persons at Kansas City this morning saw off the special train carrying Hollywood players, Republic officials and franchise holders and theatre men. Ten thousand persons welcomed the train on arrival here, and the throng grew to 25,000 this afternoon during the three-mile parade. About 300 Midwest film and theatre men were present. Gov. Payne Ratner of Kansas led the parade. The celebrities rode in historical vehicles. Both theatres, managed by Stanley Schwahn for the Commonwealth circuit, were jammed for the premiere. Among those attending were James F. Grainger, Republic president ; H. J. Yates, president, Consolidated Film Industries ; Robert F. Withers, Kansas City Republic distributor ; and a Hollywood delegation with Wendy Barrie, Ona Munson, June Storey, Mr. and Mrs. Gene Autry, John Wayne, Roy Rogers and George Hayes. Among the theatre men were Clarence Schultz of Commonwealth, Kansas City, and Harry Warren of Central States, Omaha. The celebration included the burning of a replica of the old city of Lawrence in South Park early in the evening. There was a reception at the Country Club after the premiere. A radio column, similar in context to her newspaper articles appearing as "My Day," will be featured by Mrs. Franklin D. Roosevelt when she returns to the air under the sponsorship of Sweetheart Soap, according to agency reports. The program, which will be heard Tuesdays an^Tv^mrsdays, at 1 :15 P.M., will sf^*;son a mixed NBC-Red and Blue network of about 30 stations and will be increased to about 40, as time on new stations is cleared. Guest speakers also will appear. The contract ii for 13 weeks. Praise 'Government' Program The New Jersey legislature this week cited the "You and Your Government" program over WNEW for "meritorious service" over the past six years. The program, on which most New Jersey officials have appeared from time to time, describes the workings of governmental departments. Personalities in the News Alec Tcmpleton leaves Hollywood Monday after his broadcast over NBC-Blue for a road tour. . . . Cary Grant and Frank Lloyd will be guests ov "We, the People" over CBS Tuesday. The program will originate from Williamsburg , Va., ivhere Grant and Lloyd are on location for Columbia's "Tree of Liberty." . . . Appearance of Ann Sheridan and Humphrey Bogart on "Tune-up Time" has been cancelled. . . . Mark Hawley, John B. Gambling, Ben Grauer and George Hicks are organizing a "Barbershop Quartet" to compete in the World's Fair this Summer. . . . Marshall Dane, formerly with WIP and WBAL, has joined the WOR announcing staff. . . . Francis Lederer will be heard over Mutual on "Fifth Rov.' Center" at 6 P.M., Sunday. 'Johnny Apollo' On Air Louella Parsons, film columnist of the International News Service is here from the Coast to appear on the Kate Smith Hour, which will devote 24 minutes to publicizing "Johnny Apollo." 20th Century-Fox film, over CBS tonight. This will be the climax of a week of "plugs" for the picture on Kate Smith's noon broadcasts this week. Yesterday's program featured Miss Parsons, with Tyrone Power appearing today. Tonight's broadcast, 8 to 9 P. M., will feature John Mitchell, Miss Parsons and Power, as well as Miss Smith. There will be a repeat for Western stations at midnight, completing the coast-to-coast network. Republic and Union Firm on Studio Wage Hollywood, April 4. — Republic executives and union negotiators at a late hour tonight were still deadlocked over demands of Sound Technicians Local 695. I.A.T.S.E., for wage increases. Forty-five sound department employes affected met to discuss a strike call. Republic has four films shooting and is in the midst of an extensive production program. The union wants a new scale which approximates 54 hours pay for 42 hours work.