Variety (Dec 1938)

yffeiineBdAyt 'Oectmher 7, 1938 PICTURES VAKIETy N. Y. TO TechnicaEty on RKO Assents i^ain Defers Reorg Decision TO Dec. 16 Confirmation of the RKO plan ot reorganization at Federal Court hearing last Friday (2), before Judge William Bondy was postponed until pec. 16 at request of CoL Rickaby, who told the court that while he did not believe that the objections made «it the last hearing by John Stover, counsel for Ernest W. Stirn of Mil- waukee, holder of 1,234 shares of Class 'A' (unconverted) stock, could stand water; nevertheless he was iaking it upon himself to make a motion to vacate the order of June 28, 1934, in which consents to the ^reorganization plan must be pre- sented physically. This order provides that each fitoclcholder must sign his assent to tlie plan personally, instead of al- lowing any reorganization committee or banking group to act as proxy, iind means that Atlas Investment qorp., large RKO stockholders, which iias been active .in reorKanization and which always contended that physical assent was not necessary, must now go out and get individual ■signatures, unless Judge Bondy va- cates his original order. Bondy agreed with Rickaby and de- clared that before he could consider "the fairness or equity or the plan, Jie must have the consents filed ac- cording to the law. 'This thing should be technically correct. It is desirable to bring this proceedTng to a close by the end of the year,' he stated. Members of proponents* group in- dicated that they feared* other tech- nicalities may arise to further delay « decision and on Friday (2), for the first, time, refused to predict that the plan would be okayed. Physical Assents •Latest postponement of confirma- tion is due to the allegations of Stover, who contends that apparently Atlas now finds that he is correct in that physical consents must be filed before the new stock, to be floated, can be approved,- or Atlas be con- sidered as a proponent. Hence the need for Judge Bondy to flrist dis- pose of ■ Stover's objections at the next hearing by modifying the origi- nal ordep,. leaving out the -paragraph dealing with physical proof of stock ownership, which Atlas had failed to present. ' Stover also contends that in order to file consent, it is necessary to file claims, and this Atlas has &lso failed to do. He Jikiewise intends to prove that his client is the only stockholder who filed a claim and the only one who is entitled to consideration. - Under ^7b,' it is understood that those who do not file claims within three months after the appointment of a receiver (June 28, 1934) are not entitled to any consideration in re- organization unless they are allowed to file their claims nunc pro tunc by a judge. Inasmuch as Atlas has never £led a claim. Stover contends that Judge Bondy has no right to allow them to present any claims now, two years after plan or reorganization was filed. Judge Bondy will have to dis- pose of this matter at the next hear- ing, when Stover will also submit evidence of alleged fraud in the proxies offered at the extraordinary stockholder's meeting of Deci, 1931, when all Class 'A' stock was con- verted into the present common stock. Joy Hodges, Auer P.A.S Joy Hodges will open a p.a. tour at the Tower theatre, Kansas City, Dec. 30, booked by Charles Allen office for Feldman-Blum on the Coast Allen has also notified Mischa Auer that dates are available in the east and is waiting a reply. Laughton-Poniiner May Split Mayflower Co.; Star Back to Metro London, Dec. 6. 'Jamaica Inn' may be the last film to be made by Charles Laughton and Erich Pommer, under their Mayflower Picture Corp., formed some some two years ago and partly financed by John Maxwell. Understood Laughton returns to U. S. to star in 'Captain Bligh,' se- quel to 'Mutiny on the Bounty.' Laughton also dickering with M^tro on a three-picture deal to be m'ade in London^ UA Posts Its $278,209 Bond in Hart Appeal William S. Hart verdict against United Artists in the actor-producer's suit over distribution of 'Tumble^ weeds* will be appealed by (iefend ants. Surety bond In the full amount of the Judgment, $278,209.99, was posted yesterday (Tues.) with the N. Y. Su preme Court by UA's attorneys, O'Brien, Driscoll Si, Raftery. GIVEAWAYS 6th Ave. El Razing Long Expected To Boost Sector as Amus. Centre License Commissioner to Um- pire Restrictions of Banko and Gift Evils—Greater New York Exhibitors Meeting to Quash It OTHER SLANTS A special meeting of all N.Y. City theatre owners has been called for tomorrow (Thursday) at the Astor hotel by Harry Brandt, at the sug- gestion of License ' Commissioner Paul Moss for the purpose of decid- ing what to do about the problem of giveaways. Real progress toward solution of the 'evil' is counted on this time, after many discussions, but no ac- tion, in the past year Or two. In the Bronx, such theatre owners as L. S. Bolognino, S. D. Cocalis, Harry Brandt, Moe Rosenberg, Sam Strass- berg, Loew's and'RKO are reported to have gotten 'together for the pur- pose of eliminating giveaways in their theatres and'will attempt to get Commissioner Moss to agree to- act as impartial umpire to regulate their agreement. Business conditions are reported su bad that most theatres have been giving away more than their profits. If the agreement in the Bronx works' out, an attempt will then be made to' spread movement throughout en- tire city. There are approximately 600 the- atres-in N. Y. and one exhibitor esti- mates that in this territory there has been distributed to'film patrons be- tween $3;000i000 and $4,000,000 a (Continued on page 19) Hope Passes Up Revue Hollywood, Dec. 6. Bob Hope has passed up an offer to star in the next 'Music Box Revue,* to be staged in February on Broadway by Sam Harris and Irving Berlin. Picture and radio commitments keep Hope in Hollywood. Fabian All Set To Take Over Par-Land 8 S. I. Houses, Ex-Brill Agreement has been reached on the deal und?r ,which the Fabian cir- cuit acquires the old Sol Brill chain on State Island, known in recent years as Par-Land Theatres, and at- torneys for both sides started draw- ing up the papers a few days ago. Confirming agreement on the deal, Si Fabian declares that about all which remains to close it is the sign- ing as soon as the proper papers of transfer are ready. Fabian, who has expanded import- antly of late years, takes complete control of iState Island through the Brill houses. . One of these is the Paramount, istapleton, . which is pooled in the Par-Land circuit Fol- lowing acquisition of the latter. Par- amount will discuss the continuance of the arrangements under which its Stapleton house, one of the finest on the island, is a part of the Par-Land ort^anization. Not mentioning the amount in- volved, Fabian states that his deal is a. purchase and includes 100% control of the Pat-Land circuit Itself, numbering eight houses, plus most of the real estate involved and the leases. THIBD OF A CENTURY ANNIVERSARY NUMBER of To Be Published Late In Decembef Fourth Pic Back For Extra Footage at 20tli Hollywood, Dec. 6. 'The Girl from Brooklyn* was ordered back into production by Darryl Zanuclc at 20th-Fox at a cost of $70,000 for new footage. Picture co-s.tars Warner Baxter and Loretta Young. Feature is the fourth returned for added scenei) in the last month. Others are Three Musk6teer.s,* 'Tall- •pin' and 'The Little Princess.' Special Exploitation Advantages USUAL ADVERTISING RATES PREVAIL Reservations and Copy May Be Sent to Any Variety Office NEW YORK HOUYWOOD CHICAGO LONDON 164 W. f6th St. 1708 No. Vind St. 54^ W. Randolph St 8 St. Martin's PI. Removal of the elevated tracks from Sixth Avenue, New York, is expected to boost that area as a show business center. Some effect is anticipated almost at once, but an even greater stimulus will probably be felt in about two years, with th« opening of the new subway, a spur of the Independent system. Thought likely that growth of. the thoroughfare as a theatrical district will be concentrated in the vicinity of Rockefeller Center. Radio City Music. Hall, largest film house in New York, is already there, with th« Center, huge theatre'for legit musi- cals and spectacles. In addition, the various buildings of the Rockefeller group are attracting a steadily in- creasing number of theatrical Arms. There has also been talk lately that Columbia Broadcasting System, at present housed several blocks away in Madison avenue, -may ultimately take quarters in Rockefeller Center, where NBC is already located. Ditto MBS. . Despite frequent predictions to the contrary, it is unlikely that any number of legit houses will be built in Sixth avenue proper. Anticipated rise in realty values, along the street will probably prevent. However, it is considered possible that some legit theatres may be built in the slda streets off Sixth avenue in the ensu- ing few years. Any such develop- ment will hardly take place at once, since there is already an oversupply of available theatres. In addition to the film and legit angles involved in the changing pic- ture, there is the matter- ot niteries, many of which are concentrated in a! small area in 92d street, just off Sixth avenue. Figured likely that particular block will ultimately get an even greater number of cafes, while It is also probable that^ the zone will spread into the adjacent streets. Geo^raplilcal Center Although.Sixth avenue is the geo- graphical center of midtown Man- hattan, 1^ is half a century or more behind its neighboring thorougMares in realty and building deveopment. Majority of the edifices from 53d street southward are from 50-jBO yc^ars old. In recent years their run- down, condition has prevented them from earning even enough to pay taxes,, so it is. figured essential that all such structures be torn down and modern buildings er'epted in their place. trarge-scale construction boom such as that would mak& Sixth avenue the most modern thorough- fare in New York City, since no other street has lately undergone a complete transformation. Evidence of the change which re- moval of the elevated tracks will bring is seen In the northern tip of Sixth avenue, beyond 5?d street Raised tracks were removed from that section to 59th street in 1924 and the character of the street has changed drastically as a result. Sharp upswing in realty values all along the street is seen as inevitable. New subway, which will be part of the Independent system under City operation, is scheduled to begin service In the fall of 1940. It will connect directly with the Eighth ave- (Continued on page 19) 'NAME' VOICE DUBS FOR FLEISCHER'S CARTOON Lanny Ross, currently on the Lucky Strike Hit Parade, and Jes- sica Dragonette have been signed to supply the voices for the Prince and Princess in the ?.Jax Fleischer feature-length cartoon, 'Gulliver's Travels,' for Paramount. First time any 'names' have been signatured to dub voices for a car- toon. Mayo-CoL Part Hollywood, Dec. 6. Bobby Maya, Columbia casting di- rector for three years^ turned In his resignation, effective Dec. 31. Successor has no^ been named.