Motion Picture Daily (Jul-Sep 1940)

DO NOT RE MO' MOTION PICTURE DAILY VOL. 48. NO. 10 L). S. Pursues Peace Plan With 'Big 5' Negotiations for Decree Resume Tomorrow NEW YORK, U.S.A., MONDAY, JULY 15, 1940 TEN CENTS Attorneys for the Government and the Big 5 tomorrow will resume discussions of a separate peace providing for a consent decree settlement of the New York anti-trust suit, without Universal, Columbia and United Artists being included, at least for the time being. Government attorneys on Friday reported to the Big 5 that the other three companies were non-committal on their participation in a consent decree settlement. This was not unexpected. The Government had learned the attitude of Columbia, Universal and United Artists the day before. The issue in dispute is that of block booking, it is asserted. The Big 5 attorneys indicated to the Government their willingness to continue with the negotiations. The Government lawyers went to Washington after the conference. The Government, it is reported, is seeking an "escape" clause for itself in the proposed decree. This, according to authoritative sources, would permit it to bring action to declare the decree void in the event the Government at any time should feel that it wants to reinstate the anti-trust trial. RKO to Distribute Jenkins Fight Films In the first deal for distribution of a fight film by a major company since the recent lifting of the Federal ban on the interstate transportation of fight films, RKO has arranged to distribute pictures of the Lew Jenkins-Henry Armstrong bout at the Polo Grounds Wednesday night. The deal, for this one fight only, calls for production of the film by RKO Pathe News, with Frank Donovan supervising, under an arrangement with Madison Square Garden Corp. and the 20th Century SportingClub, headed by Mike Jacobs. Prints of the Jenkins-Armstrong fight films will be available in the Metropolitan area Thursday morning, and elsewhere throughout the country on Fridav. It is understood that future fight film productions will be under the control of a new corporation to be set up by the Garden and the Jacobs (Continued on page 4) Canadian Industry Set for War Benefit Montreal, July 14.— The Canadian film industry tonight was prepared for its contribution to the Canadian "Win the War" drive. Admission to virtually every film theatre in the Dominion tomorrow night will be by the purchase of War Savings Certificate Stamps, which will remain the property of patrons. The industry drive, headed by N. L. Nathanson, is expected to net $1,000,000. Sir Cedric Hardwicke and other players will make personal appearances. Circuits Grant AGVA Recognition Agreement on all major points of an employment contract was reached over the weekend at a conference between representatives of the American Guild of Variety Artists and seven circuits, including Loew's, RKO, Warners, Paramount, Skouras, Fabian and Brandt. Contracts will be drafted this week and will be signed when Hoyt Haddock, A.G.V.A. executive secretary, returns from a two-week trip to branches and Hollywood, on which he left yesterday. The way to the agreement, which covers all stage presentations and (Continued on page 4) RKO TO REDUCE COOPERATIVE ADS Television Gets Films Independent Hollywood producing companies have expressed considerable interest in renting old films to NBC for telecasting, an NBC official disclosed yesterday. Previously all film purchases were made from companies in New York. A deal with Colony Pictures for four Ken Maynard Westerns which were produced in 1938 has just been closed. This is in addition to a number of Westerns previously obtained from Colony. Astor Pictures has also rented "His Double Life" with Roland Young to NBC. This film was originally released by Paramount in 1933. NBC is looking forward to a new source of supply from producers of 16mm. three-minute shorts which are intended for use in coin motion picture machines. It was pointed out that a large number of prints will be available and the rental cost to television will probably be nominal. These films are almost ideally suited for television because they can be used singly as "fillers" or grouped (Continued on page 4) Trammell New NBC Head NILES TRAMMELL, who rose from RCA salesman to executive vice-president of NBC, this morning will assume his new duties as president of the broadcasting company, to which he was elected by the directors on Friday. That Trammell would succeed Lenox R. Lohr was indicated when Lohr's resignation was announced June 7. David Sarnoff, RCA president and chairman of the NBC board, pointed out that Trammell, who joined RCA 17 years ago, had "risen from the ranks." The new head of NBC, who is 46 and a native of Georgia, after Army service as lieutenant through World War I and until 1923, in that year joined RCA as commercial representative of the traffic department in San Francisco. In 1925 he was appointed assistant sales manager on the West Coast. He held this position until March, 1928, when he joined NBC in New York. Two transferred to Chicago as manager of the March, 1929, he became a vice-president of NBC. He was appointed executive vice-president on Jan. 1, 1939, and came to New York. Niles Trammell months later he was Central division. In Will Cut $500,000 Annual Cost by 75 Per Cent; Others to Follow By SAM SHAIN RKO, with a view to eradicating "certain evils" in cooperative advertising with exhibitors, has decided to make a drastic reduction in this form of expenditure. The company, according to authoritative spokesmen, is aiming to cut down its annual appropriations for such advertising by 75 per cent. It js estimated by company officials that in late years the average amount which has been spent yearly by RKO is $500,000. Other major companies are expected to follow in RKO's steps. Should they do so, as it has been intimated in official quarters, cooperative advertising, upon which the major companies spend annually an estimated $4,000,000 to $5,000,000, will be tremendously reduced. In the future this money will be devoted largely to national advertising. The major companies every year have given consideration to this problem, but this is the first time that such drastic steps have been taken. Company spokesmen state that they have been very much disturbed by the practice of exhibitors in cutting down on advertising and general exploitation budgets, and in order to alleviate the burden which such exhibitor action (Continued on page 4) Hearings on RKO Allowances Closed Federal Judge William Bondy on Friday closed all hearings on final allowances in reorganization proceedings of RKO when Thomas K. Finletter, attorney for RKO, failed to appear on his application for an allowance. Finletter had represented RKO during hearings on applications of all other parties for fees and expenses. Motion papers were filed with Judge Bondy at the same time by F. J. Sullivan to strike out all recommendations made at the hearings by the Securities and Exchange Commission on the ground that the S.E.C. had no right to intervene in the proceedings. Sullivan himself is an applicant for $64,500 in fees. Tudge Bondy reserved decision on the application.