Motion Picture Daily (Jul-Sep 1941)

O NOT REiyiOVS PQ NO ! Kt MOTION PICTURE DAILY 50. NO. 39 NEW YORK, U.S.A., MONDAY, AUGUST 25, 1941 TEN CENTS ^faps Control VII of U.S. Film Vctivities Now Sew Rules Seen Making Trade Impossible American film business in Japan las been brought completely under Government control there through ir-vv regulations oi which home >trice foreign departments have just men advised. The new restrictions will make u nadvisable, if not impossible, to continue to do business profitably in japan, coming as they do on top of .lie Japanese order freezing American i>sets in that country, in the opinion )i experts on the Far Eastern marit who are now in New York. Among the restrictions is a compete ban on the shipment of American ilms to occupied China from either lapan or Shanghai. Another re (Conttnued on pat/t' 8) India to Halve Film Import Quota Sept. 1 The new quota for India reducing film imports next year to 50 per cent of the 1939 import figure will go in effect Sept. 1, Al Daff, Universal Far Eastern manager, who is visiting here, stated over the weekend. American distributors are disturbed l>y the new quota, he said. No monetary restrictions have been invoked in India, however, he stated. The Universal official said indications are that the French blockade of Syria will be lifted in the near future and that American representatives are prepared to resume film shipments at 'ince. Syria has been blockaded since the fall of France and no prints have gone in or out of the country. As a result, he said, there is an extreme film shortage. Daff recently visited Iran. He reported that a modern air-conditioned theatre, the only one of its kind in (Continued on page 8) Great States Takes First 20th-Fox Block Chicago, Aug. 24. — Clyde Eckhardt, 20th Century-Fox branch manager here, on Friday closed with Jules J. Rubens, head of Great States Circuit, for the company's first block of five pictures. The deal involves 68 theatres in Illinois and Indiana. Paramount Theatre Partners Meet Here On '41-'42 Product A number of the Paramount theatre partners from various sections of the country are in New York for conferences on new season product. E. V. Richards of the Paramount-Richards Theatres, New Orleans, is scheduled to arrive today. Others now in New York include : R. J. O'Donnell. Dallas; Colonel Frank Rogers, Jacksonville, Fla. ; A. H. I! lank and G. Ralph Branton, Des Moines, and Sam Pinanski, Boston. The theatre associates are meeting with Barney Balaban, Paramount president, and Leonard Goldenson, .iead of the company's theatre department. Buying problems and procedures are reported to be scheduled for discussion and ideas exchanged among the associates. Preliminary discussions on new season's product deals may be held with distribution executives here, although under the Federal consent decree the deals must be closed in the home exchange cities of the circuit operators. Fitzgibbons, Bolstad Get New FPC Pacts Toronto, Aug. 24. — New five-year contracts have been signed by J. J. Fitzgibbons as president of Famous Players Canadian Corp., and by R. W. Bolstad as vice-president. Details of the contracts were not disclosed. They are for the same period as was the contract with N. L. Nathanson, former president, which expired June 1. 'Aunt' a Standout in Strike-Ridden Detroit Detroit, Aug. 24. — Despite an estimated 10 per cent loss in key theatre grosses late in the week due to the bus and street car strike, which started Wednesday, the Fox Theatre here reported "Charley's Aunt" garnered $25,000 the past week. Average for the house is about $15,000. The bill, with "Dance Hall" as the supporting feature, is being held over. This was the only good first run gross here however. [See box-office report on Page 9.] Urges Double Tax Rates for Broadcasters Washington, Aug. 24. — Appearing before the Senate Finance Committee, as it prepared to close its hearings on the new tax measure, John B. Haggerty, president of the International Allied Printed Trades Association, asserted the broadcasters have available for taxes some $20,000,000 a year now allowed, he said, to advertising agencies in extra rebates and discounts. Haggerty urged a doubling of the radio tax rates, as written into the House tax measure, which the Senate has before it. Haggerty frankly admitted he sought the tax to curb what he called unfair competition with the printed page, but told the committee, in mak(Continued on page 11) U. A. Producers to Finance Own Films in Great Britain British Film Official Here on Distribution Sidney L. Bernstein, former British exhibitor who arrived here recently as a representative of the Ministry of Information, left for the Coast over the weekend by plane. While in New York it is understood Bernstein discussed with two major companies the release in this country of "Target for Tonight," aviation propaganda film made by the M. O. I., and other propaganda pictures. United Artists producers have agreed to participate in British production under arrangements which are scheduled to be made by Teddy Carr, joint managing director of the company for Great Britain, on his return to London, it was stated on Friday. The United Artists producers now have more than $5,000,000 of British revenue "frozen" in London, Carr said. They are willing to join in the financing of productions to be made in England, employing their blocked (Continued on page 8) RKO Secures New Financing Of $3,000,000 Revolving Fund Will Be Used For Production By SAM SHAIN In order to build up its inventory under the new consent decree selling methods, RKO has negotiated a $3,000,000 revolving credit loan from the Bankers Trust Co. at a rate of interest reported to be 2y2 per cent. RKO already is operating under this credit fund, it is said. The fund is to be used for production and under its terms, according to downtown reports, the company is privileged to obtain certain credit as low even as Vi per cent. The negotiations for the credit fund, it is stated, were concluded about three weeks ago. The deal runs for three years. RKO reported on Aug. 18 a net profit of $485,605 for the 26 weeks (Continued on page 8) 4U' Defense Aired At Crescent Trial Nashville, Aug. 24. — Testimony in the Union City, Tenn., product negodations which had a bearing on the court's failure to dismiss Universal as a defendant in the Government trial of Jrescent Amusement Co. was given iere Friday by three Universal officials. F. J. A. McCarthy, Southern and Canadian sales manager ; Harry D. Graham, Southern district manager, and James A. Prichard, former Memphis branch manager, were the witnesses. McCarthy denied that J. D. Henry's contract applications for first-run (Continued on page 9) Frels Arbitration Dismissal Upheld Dallas, Aug. 24. — The national arbitration appeals board has sustained the dismissal by Arbitrator L. M. Jordan of the some run complaint of Ruben Frels, operator of the Normana, El Campo, Tex., it was reported here over the weekend. Jordan dismissed the Frels complaint June 10. Originally brought against all five consenting companies, the case (Continued on page 11) H