Variety (Aug 1936)

VARIETY P I € I H R E § W«daeBd«f, Aiagust 5, 1936 ROCKEFELLERS Will COOPEATE WITH REOIO SPEED THAT COMPANY'S REORG RKO Would Operate'the Two Radio City Tbeatres —■ Reorgamzatioii Plan Bcling Shaped—RCA Given Right to Participate, by Court Order The. Rockefeller Interests will co- operate with RKO in speeding that company's emergence from 77b, into • reorganization. With this co- operation, 9 comprehensive reorgan- ization plan.for RKO; may fee had by gejpt. 1, if not earlier. . . .5p:ade belief is,that an adjustment is ,iat Jiand oh the. Rockefeller. Cen- . iter's .$9,b0P.006 claim agai^ist RKO. The compromise would provide fop .PKO's operation of the two Radio City, theatres, the Music Hall and the Center, latter now a legit again^ ,. A reorganization plan for RKO is Jtjeing shaped., With Floyd Odlum^s return from abroad! his week, vrork on this plan will .be speeded.' ' .At the hearing; scheduled in Fed- eral. Court for next 'Tuesday (11), in r^ard to the recent, report-^gn the company by Irvtog Trust,' definitive iaffications inay be given Ijhe'Cdurt, . officially, at this time,' regarding 'the Company's preparations for reorgan- ization. ■ '•'iikO shows improvement on. every 'pid, including, miorale; ■' Tiie conip&ny has withdrawn from ' theatre operation in Canada. Its cir- ■iicuit of around 90 theatres is limited . now to the States. There is talk of a "pool between iParamoHjnt ahii RKO theatres in Bos- ^ Icon as" a irenkedial xaeksure ' against certain infiexible and underlying . problems confronting the theatres of ;both -companies in tiiat territory. ' in Canada, RKO'tarns over its four theiatres to Paramount (N.- L. ffathahsbn).- Cities', involved" are filontreal, Vanbouycr, St. Johns and !Winnipeg, ' ■ '• •- " ". • RKO ownied two of -the four •houses. . The con^^y . retains its . 'real estate eqiiities in fliese theatres. ;Fambus PlayersrCanadian tPar) as- 'sumies the leases ai^: gttafante^. the underlying m'brtgages. AdditiooiiUy, 'RKO-Radio Rictulres aSpe protetted by getting-a lO-year fraDchise in the "Far-'Cahadiati .chain, a ' cir«hiit of ^around' 200 houses, the- d(Mninati«g theatre chain in Canaedal-" ■ i - < Federal Judge William, i^p&y has.. ■ jiighed an order permitting attorneys ^fot RCA to take an afctive part an •••the" RKO reorgariizatidn prteeed- ings. Heretofore, RCA" tfeps have attended the hearings as outsiders with no official standing, and have • taken no -jpart up to the present in : the dispute over the, official referee's recommendation that< > Rodiefeller < - Center be allowed $9:942,293 as its ..settlement share. » In their application for oMcial recognition;: RCA attorneys pointed out to the Court that it was one of • the largest holders of RKO bonds . , and. stock and as such had a right to .participate. in the reorganization I matters and-to enter its individual iProtestrto the Rockefeller Center al •, ■ lowance. .'-..'•] . : - RCA contended ttiat in view Of the fact. that it holds 42% of RKO 10 year-. 6%, <iebentures which are due :Dec. 3, ig41>-'and alos 24% of the out . standing common stock, it was en titled to have an official ^y. in the 'res6ttlement and reorganization matters..- ; These, holdings are. under option to ithe Atlas-Lehman group. , • 'The claim allowance made in fa- . ,Tor of Rockefeller Center by jThomas .D. Thatcher, official referee, is so great,' the attorneys contended, "that; it directly and materially ad- versely affects the. rights and. inter- . iests of RKO's delDent-ures and com- jmon stock and jeopardizes a success- ful reorganization.' Total claims to date filed in the •^J. S, District Court ajainst RKO iaggregate $55,121,179, of ■ which amount the Court has allowed $16,- 397,481, it became known when Wil- liam J. Donovan entered n claim for 1^85,000 for services as attorney for Irving Trust Co., trustee for the film ©rganization. Donovan's claim' covers .the period from Feb, 20 to July 23. •He had .previously received $90,000 for his services, Judge Wiliam Bondy has set Aug. II (Bls the date on which Donovan'.': tiaim.is to be decided. DISCLOSE LOEW, KENT, G.N. SHARE HOLDINGS Washington, Aug. 4. Dealing in securities of 20th Cen- tury-Fox -and Loew's hy corporate insijiel-s came ta" light today (Tues- day) in semi-monthly report of Se. curities '& Exchange Commission. Principal transaction was pur- chase of 353 shares of Loew's com- mon by holding company owned by •Arth^'Mx'Loew. Boosts-holdings to 3,€83 'tickets. ■ Nearly aryear late, Sidney R. Kent reported swapping interest in old Fox Films fo^ ducats issued by re organized firnu Transfer occurred last August. Berkshire Finance Co., Kent's holding, company, turned in 11,769 old Fox A and got in exchange 2,942 shares of new common.. Report on holdings shoiyed two grounii^floor bqy's hold the reins in newly•Sftr^anized ■ CS'tand National Films. Three officers and directors protested th6y have no money di- rectly at stak<?<' ; Biggest' bolder of Grand' National? common, vhich has par value of '$l,' is Carl M. Leser man, New York,, with 3,333 shares Other fair-haired person is William C. Bright, New York; with 335. Rob- ert W. Atkins,' James A, Davidson and Frank F. Kolbe, all New York- ers, hold no equity interest. Walter Putter Sigged For Capital Films Job London, Aug. 4. Walter Futter has signatured pact to produce series of features for Capital Films. ■ ' ' . Fred Futter will continue to oper atfe the Futter-enterprises in Holly wood until his brother's return. Parsons Quits at Rep.; Becomes a Supervisor Hollywood, Aug. 4. tindsley Parsons has i^signed ^"s publicity director at Republic, effec tive Aug. 10, and will join the Boots and Saddles Productions as a super visor-of series of eight westerns lea luring Tex Ritter. These pix will be made, for Grand National release. First is 'Call Me Arizona,' from story and screen play by J. P. McCarthy, scheduled to start Aug.. 13. Acid Test' Hollywood, Aug. 4. Hollywood has another yes- man in Pat C. Flick- He at- tended a preview recently and later met the producer in the lobby. Latter started panning his flicker, but Patsy inter- rupted, 'You inust not be feel- ing very well, the picture is great. Here's,an aspirin.' F'roducer retorted, 'I just wanted to try you out. Guess you're okay now.' 'Dodsworth' Prod. ' Postpones the Mary Astor Case to Aog/lO Hollywood, Aug. 4. Postponement of the Mary Astor custody suit against her • divorced husband was ordered yesterday (Monday) by Judge Goodwin Knight when a plea was made by attorneys for the actress that she was needed in the Samuel Goldwyn picture, •Dodsworth.'V Actress deriied on cross-examina- tion that she allowed her husband, Dr. Franklyn. Thor^je^ a. default- div.drce, . because she was . in love with'George S. Kaufman, the play- wright. The so-called 'misstep diary* was missing at Monday.'s ^session, when attorneys couldn't agree on the whereabouts of missing pages. Jxtd^e KiUght . ordered the complete volinhe turned oyer to him,when the triafl reconvenes Aug. ,10, -dcMcIaiing that the names of innocent persons in the book would be protected from the public. In. earlier t^timony, Miss Aistor said she -was not in love with Kaiif- man when she agreed to give her four-year-old daughter into custody of her husband. Trial is giute a hot local topic, as much as^.it's been sensational news nationally!. The dailies haven't had a Hollywood yam in anne time. John Barrymore's name also cropped up before close of Monday's session. ' . mm. MASTER TO FIX lETTY' DAMAGES Confirming that the Metro jHcturc. 'Letly Lynton,' hdd been lifted from the plsy 'Dishonored lady,' Federal Judge John C. Knox in N. Y. on Monday (3) granted the request of the play's authors, Edward Sheldon, and Mis. jWargaret Ayer Barnes for a permanent injunction against far- ther .shoNving of the film. The Court also directed Metro and other , de- fendants turn over all profits to the p]ari)ti£F$, besides paying .damages, eourt eosts and attorney^ fees. In order to determine .the total amount due Mrs. Barnes and Shel- don, Judge Knox appointed Gordon Auchincloss as special master to take testimony and" examine books and records relating to the picture. 'The defendants have Infringed and viol&ted the copyright laws and the exclusive rights of the com- plainants,' Judge Knox decided, 'by manufactitfing the talking motion picture, 'LStty Lynton,' and by dis- tributing the" said picture or "selling it to third'parties to exhibit without due warrant of law. .1 direct" the Special Mcster to rei)ort the amount of damages due the plaintiffs and the amoifiit 61-profits made by the defendants iii and outside the United States.'. • • The "Action'\^as'started by Mrs. Barnes and Sheldon early in' 1934. U. S. District Court' dismissed the action on motion of alttorneys for the defendants, but in August of the same year the U. Si Circuit Court of Appeals reversed the Woolsey deci- sion. The 'dishonored Lady' script was copyrighted in Jaiiuary, 1930. ; Beside?. Metto, the other defend ants \ver"5 MGM Distributing Corp, Loew's 'liic, and the Culver Export Corp. Each are held liable. Cpmi, Haljierins Merge Companies h Television Pix Hollywood, Aug. 4. Halperln Bros, and Maurice Conn, respectively of Academy Pictures • and Ambassador Productions, are merging under the new firm name of Television Pictures, Inc. New conr cern "will handle production and dis- tribution. Conn, Edward and Victor Halperin will control .operations. Hans have been announced jEor 20 jjicture's on the 1936-37 sked, includ- ing eight exploitation speCiali^ four Piril^"' Tomlins, four' with Frankie Darro and Kane Richmond and four Kermit Maynards. In N. Y, newspapermen for a few days endeavored to keep Kaufman's name out of the yam. Grey Delayed 7; re- Brisbane, July 2ane Grey Was figuring on a turn trip to America this month, but bad \veathgr delayed the schedule of •White ireWh,' which he is shooting at Great Barrier; and he wiU be forced to cancel the trip for the time being. ; .Grey ihay return to Sydhey for a conference covering his " 'Rangle River.' due idr e&rly pfdduction by Columbia at National. ^ TX^'S . WRIGHT BEOS. PIC Hollywood. Aug. 4. . Hqward Mingos and Pierre Coll- ingjs ijBCve been assigned by Warners to prepare screen. pia«f on life and experiences of the Wright brothers. 'What Ho* for Cooper Hollywood, Aug. 4. 'What Ho,' a serial by Richard Connell, to be published shortly in the Satevepost, will be Gary Coop- er's first picture for Majbr Produc- tions. . Emanuel Cohen reportedl}' paid $35,000 for the yam. •Stoiy deals with a hick toivn lad who inherits an English estate. MAHIN'S. THESPIC YEAllN Hollywood, Aug. 4. To ijjfisfy ah acting y6n, John Lee Mahin wrote in the part of a re- porter foi Metro's 'Love on the Run' and Sb'fc'tested himself for the role. The j.'..dio consented. Konne Quints' 2d Yk Hollywood, Aug. 4. All conferences at 20th-Fox on the next • Dionhe quints' picture are awaiting the • arrival tomorrow (Wednesday) of Joseph Moskowitz, N. Y. studio rep. After the details are ironed out, MOskowitz planes to Ontario for a talk with the quints' guardians, . Norman Taurog win direct the pictiure as his first on a new deal. * '* Katz Ups "Vorn to Dance' Scliedule and Budget Hollywood, Aug, 4. Time limit and budget on Som -to Darce,' currently heing directed by Roy. Del Ruth at :Metro, has . been upped by Producer 'Sam Katz. Extra money and 'time was forth- coming, after .Katz had viewed rushes. Studio £lm ex6£s are in accord that picture can be made into a big znusi caL Goldwyn Seals Hulburd Hollywood, Aug. 4. Merritt Hulburd, ■ Samuel Gold- wyn's executive assistant, has been handed a new contract Covenant covers five years with options. Six Scribes Ticketed By Zannck at 2Qth-Fox . Hollywood, Aqg. 4 , Six new wtrlters, five of whom are from radio, have been given term <;ontracts by I^arryl Zanuck al 20th Fox. In addition, ticket of another Writer was renewed. Former etherizers are Jerry Cady. who wrote the Mary Pickford pro- grams; Darrell Ware, -writer of 'The First "Nighter'; Willis Cooper and John Patrick, who did 'Flying Tiine, and Harry Tugend, Fred Allen scrib Latter is the renewal. Other pair cohTracted are Eleanor Harris and Winifred Wallis. McCarey's First Hollywood, Aug. 4 The .Years Are So Long* will b^ initialer for Leo McCarey under, his new three year producer-director contrtact at JE^amount. . He's currently organizing his pro duction imit, selecting writers and staff. ■ • Fix Withholds $78|ei; Qosstions Validify of Unempbpitent Ins. Tax Hollywood, Aug. 4, Picture . industry employers, in- cluding the major studios, withheld last - week $780,000, one-third of which was collected from employees for tax payment under the provision, mercial houses did the same as the COLBERT'S PRODUCER Hollywood, Aug. 4. Edward Kaufman wi]l produce Claudette Colbert's one picture for Radio. . Sam Briskin and. Kaufman - are seeking yarn. of the State Unemployment Insur ance Act. Holdout was made on the claim that the act is unconstitutional and, imtil its legal status is deter- mined, money collected -will be de- posited Jn special accounts. - Employees' tax is 45/100 of 1% of their weekly wagie and amount col- lected was $260,000, while under the law employers are to pay double.that amoimt, or around $520,000. Decision was made by. the pro- ducers at a Hays office meeting fol- lowing advices that payment will be held up until a forthcoming decision from the State Supreme Court in an action testing the validity of the act Warners is the only company whidi has paid, sending in the money prior to the meeting. Large com picture business in holding up" pay ment San Francisco, Aug. 4. Taking their cue froni action^^talcen by many of the picture companies in Hollywood, theatre men here are also objecting to payment of the Cal- ifornia State Unemployment Tax, which was due prior to Aug. 1. Most of the theatre men did not pay the .tax and those who did turn the money over to the state did so under protest Presidential Year's ; fix Ballyhooers Due To Ble Their Report ."The' g&ecial industry, committee, ham.ed a number- of weeks. ag^o to siiryey the situation and m^lcp rec« bmmefidati'ons, is fexpected .to ^report to J. J, McCarthy, of the Hays pHice, aljoiit. Aug. ,15. "This is ;the : small committee chosen' by publicily-ad-• vertising chieftains at .the. instigation of the Hays organization". ^0 work out an. institutional. publicity cam- paign to 'counteract the anticipated box office sliimp during tjie .'presi- dential election months this ^11. Similar slumps h&ve occurred in other presidential campaign years and major company publicity heads voted to institute an industry'drive to bolster box office returns this MlU) BRONXINiG ivEN ANTl-NM PIC ON rWAY ^i; Was a Captive of Nazi Ger- many,' independent ^feature produced and released by Malyi^a Pictures re- ceived a mild salvo of Bronx, cheers when it opened last Saturday. (1) at the Globe on Broadway. Newsreel views of' Hitler incorporated in early film, sequences and his portrayal by an unbilled performer, in the picture were the only items that aroused au- dience to give the razz. Film, which was passed l?y the N. Y. state censor board, did not bear the customary production code seal of the Hays off ice. The p'cture orig- inally was submitted to tj^.e eastern code office of the Motion Picture Producers & Distributors but no ac- tion was taken by Haysian officials when it was learned that the anti- Nazi feature had been produced on the west coast All Coast films go to the. Joe Breen production code office in Hollywood. ' ' ■•Captive of Nazi Germany pre- sents Isobel Lillian Steele's owrt ver- sion of her detention in a Nfizi pov-- omment prison but no actual Nazi ^ail scenes are .shown. Whether this latter angle would place the picture in the category of a strai<?ht propa- ganda film and as s'och likely to be rejected by Hays' office purity code could not be ascertained. .Aside' from the newsreel' shots, wholR picture WBK filmed hi a Coast indie-studiO; ' Only credit listed for whole sub- ject is to Miss Steele, who is billed as author. She also plays tlie lead- ing role, herself, in relatin<T. her ex- periences in Germany. '.}\\ Mannoii is financially interested but unbilled. Radio Sets Michael Hollywood. Aug. 4. Gertrude Michael, who moved over to Radio on termer after she won a release from Paramount, has been spotted for second femme lead in studio's 'Daddy.and I.' Anne Shirley and Herbert Mar- shall are starred in the Zidn. Mye" production, David Burton'_ directing. BRADNA'S BREAK HoUywood. Aug. 4. Following one year at Paramount, Olympe Bradna gets her ."first fea- tured role in 'The Years So Unset- tled Are,' with John Howard and fVance? Farmer. Annfe Morrison Chapin- is doinB screen play from TesS Slesmgcrs book.-