Motion Picture Daily (Apr-Jun 1940)

Picture Industry MR. MAURICE MCKENZ % MOTION PICTURE PROD. DIST. OF AMERICA, INC. 2 8 WEST 44TH ST. , NEW YORK, N. Y. DO NOT REM Ox PICTURE VOL. 47. NO. 106 NEW YORK, U.S.A., WEDNESDAY, MAY 29, 1940 TEN CENTS A. W. Smith Is Named Sales Chief of RKO Mochrie Succeeds Him in Eastern Post By SHERWIN A. KANE A. W. Smith, Jr., was named RKO sales manager yesterday by Ned E. Depinet, vice-president in charge of distribution. Announce ment was made at the company's annual sales convention in session at the Waldorf Astoria here. At the same time, Robert E. Mochrie, RKO Southern division manager, was named to succeed Smith as Eastern and Canadian sales manager. Cresson E. Smith will continue as Western sales manager. The post of RKO sales man {Continued on page 8) A. W. Smith Trust Suit Counsel Set Opening Order Order of appearance of defense attorneys in opening addresses to the court in the trial of the Government's New York anti-trust suit, starting next Monday before Federal Judge Henry W. Goddard, has been agreed upon by defense counsel. Thomas D. Thacher, chief counsel for Paramount, will make the opening address to the court and Judge Joseph Proskauer, chief counsel for Warners, {Continued on page 6) Television Officials Silent on FCC Order Television executives refused to comment yesterday on the F.C.C. order indefinitely postponing television commercialization. Informed observers remarked that the order represented a defeat for all sides within the industry. It was generally agreed that television requires audience participation for further development. S.E.C. Seeks RKO Allowances Cut To $600,000 Top The Securities & Exchange Commission at a hearing yesterday asked Federal Judge William Bondy for "a drastic reduction" of petitions for allowances in RKO proceedings from a requested total of $2,025,214 to a maximum of $600,000. Intervention by the S.E.C. is in accordance with the requirements of the Chandler Act which calls for its recommendations to the court on all hearings on allowances in reorganization proceedings. The maximum of $600,000 does not include a request by Atlas Corp., proponent of the reorganization plan, for 100,000 shares of RKO common stock, Marland Gale, S.E.C attorney, stated. Judge Bondy postponed further consideration of allowances to June 18 when Thomas K. Finletter, attorney for RKO, requested time to study petitions and expense vouchers before making his plea for reductions. Gale, in a two-hour court address, (Continued on page 6) Lapidus Named (U' Eastern Manager Jules Lapidus, Universal's Pittsburgh branch manager, has been appointed Eastern district manager and will cover Boston, New Haven, Washington and Philadelphia, William A. Scully, general sales manager, announced yesterday. Pete Dana, special representative, will take over the Pittsburgh office. Lapidus will make his headquarters at the New York exchange. FREEMAN WARNS NEELY BILL WILL CUT PRODUCTION Paramount Studio Head Says Industry Faces 'Most Serious Crisis'; Sees End of Talent Contracts Washington, May 28. — If the Neely bill is enacted, Y. Frank Freeman, vice-president in charge of Paramount production, will recommend a drastic reduction of the company's investment, elimination of its talent contracts and the production of one film at a time, he told the House Interstate Commerce Committee today. Freeman said the industry is facing "the most serious crisis ever before it," with the possibility that some industry units may founder. Questioned by Representative McGranery on the possibility of providing synopsis after films are completed, the witness declared, "I am not going to take a chance, as an individual, of writing a synopsis and sending it out to 17,000 exhibitors, Roosevelt Proposes Increase in Taxes Washington, May 28.— An increase of 10 per cent in all taxes, including the admissions levy, today was suggested by President Roosevelt as one of two steps to pay for national defense. This would raise $2,000,000 more at the box-office. Republic Sets 58 Films, Four Serials Next Season San Francisco, May 28. — Republic will release a total of 58 features and westerns and four serials next season, the Pacific Coast sales meeting was told here today by James R. Grainger, president. The program is an increase of eight over the current season. Other executives attending the twoday regional meeting here, first of four, are : Herbert J. Yates, president of Consolidated Film Industries, and M. J. Siegel, president of Republica Productions. Franchise holders and branch managers from the West are present. The list includes four De Luxe, six Anniversary and 16 Jubilee films, with the inclusion of two Gene Autry musical westerns. The western program will be changed to include eight Don Barry films, in addition to six Gene Autry pictures, eight with Roy Rogers and eight with the Three Mesquiteers. Four serials will be produced. Heading the new season's program are "Lady From New Orleans," a Beth Brown story ; "Hit Parade of 1941," a musical; "Soldiers of Fortune," a Richard Harding Davis story, and "Thunder Over Alaska," by Rex Beach. "False Witness," by Irving Stone : "Storm Over India," by Richard Blaker ; "Puddin' Head," starring Tudy Canova ; "Gangs of Kansas City," by Jack Moffitt ; "The Big Bonanza," a Peter B. Kyne story, and (Continued on page 6) Frank Freeman any one of whom can claim a violation of law and have me convicted of a crime." Freeman told Representative Kennedy that "no man can define the moral code of America." He said further that "the English system of selling pictures singly after trade showings has not been successful. Production problems in England even before the war were almost insurmountable." The foreign market has been contracting for the past five years, he said. The industry today is out of Russia, Germany and countries under German domination, and Italy, and under severe handicaps in France, Australia, Spain and England, while in Canada the currency value has dropped 20 per cent compared with the American dollar. During Freeman's testimony Representative Boren, who repeatedly has referred slightingly to the work of the Production Code Administration, sharply criticized permitting a char(Continucd on page S") No Paper Tomorrow Motion Picture Daily will not be published tomorrow. Decoration Day.