New York Clipper (Apr 1923)

=6 THE NEW YORK CLIPPER April 25, 1923 FAMOUS PLAYERS STOCK DROPS AT START O F GOVT. CA SE HEARING Federal Trade CommiMion Starts Takmg Evidmce in Govern- ment Charges That Famous Players^Lasky Cwp. EmfJoys Unfair Cmnpetitive Methods and Stock I)rops— Orpheum in &nall Gain An otherwise colorless market, was fea- tured this past week by the sadden decline of the Famous Playets-Laslcy stock 2}4 points with a further loss of of a point ~a Monday of this week. ' The action of the' fssoe when became understandable when the Federal Trade Commission is- satd, late in the wedc, its amended com- iriaint seeking to have the company and six of its afiSliated companies cst^idied as a movie trust. The Famoos Players cor- potatioD has issaed a catCKorical denial to all the allesations, bnt nevertheless this action was bound to be reflected in the price of the issoe. The Federal Trade Commission, in its comidaint, charges the (Famous Plajrers- 'Lasky Company and-aix of its associates with acting in restraint of trade. The hearing was begun on Monday morning in the- offices of the oommissioa. 29 West Ttrirty-nintb s tre e t, and it is possible that the testimony during the next few days will, to a large extent, govern the price of the stock. When this suit by the Federal Trade Commission is taken into consideration it is easy to see why Famous Flayers dropped, in a comparatively short time, from aromd 97 to its present mark' of 85^. Althoufifa various other causes were asffibed for its peculiar action it was this impending'gov- ernment actkn that acted as a check on the price of the stock. Even though the price has declined sales have been few, -mostly because control is held by several large interests who refuse to be alarmed and because those who have smaller hold- ings, having bought at a price considerably above the present quotation, refuse to be shaken ouL During the week the stock 'slid from 88^ to 86yi, at which point it closed on Saturday for a loss of 2}4 points. On Monday of this week 4,40(X shares were 'sold, the stock declining to 85^, a further ' loss of ^ of a poinL Should ue testimony before the commission be very adverse it would not be' at all surprising if the issue hung up a new low. Goldwyn, with 13,700 shares moving, just about held its own, hovering around Ifae 6 mark all week. Opening on Moods^ a week ago at 6y6 it varied dnring the week' from 6yi to S}i and closed at 6 for a loss of Mi- On Monday of this week it held firm at that point with 600 shares sold. Loew failed to react to any appreciable extent, opening the week at 19 and closing at' 18^ for a loss of H, and holding at 18^ on Monday of this week with 600 'sh ares traded. The possibility that I^w is going through k shaking-ont process might account for its price, ahhougfli any- ' thing within yi point of 19, either way, has been considered normal for this issue. Orpfaetnn was the only amusement stock on the big exchange last week to show a gain, the price going from 195^ on Monday a week ago to 19^ on Saturday with 4,300 shares sold, a axgei ntmiber than usual This gain of ^ a point was not held on Monday of this week when the stock, with 700 shares soM, Hrent from 19^ to 19^ for a % loss. "WHY NOT' FOR CHECAGO Robert McNabb and George Atkinson have takea ova the nanagement of "Why Not," the play by Jesse Lynch Williams, whkh was originally presented and spon- sored the Eqnity Pl^rCTS, at the Eitiuity- Fotty-Eigfatfa Street lleatre, from Louts O. Madooa and will present it at Powers Theatre, Chicago on April 30. The Equity people win oo-operate with the new pro- ducers in the preseatotioa «f the play in the Windy Gty and are to receive a n^yal- ty for the use of the name. Four new lunub e is have been added to the cast wfaicfa originally presented the play, they arc; Ernest (Hendoming, Margaret Mooen, Estelle Winwood and Catherine Roberts. TlMBnos Londen. Norma MitrhHl, Hay-' mood Gnioa and John Cromwell are the ■imiiiImh t of the original cast which played at the National Theatre to remain with the attractioa. TREASURERS' SHOW ON SUNDAY The Thirty-fourth annual show of the Treasurers' Club of America -will be given oo Sunday evening April 29th, in the form of a benefit performance for the sick and burial fund of the club at the Hudson Tbeat/e. Many members who are fa the organization since it started will be present Sunday night. A list of stars who will appear at the show is being prepared by thie club com- mittee in charge of the oenefit perform- ance and it will be announced sometime this week. The club was formed 34 jrears ago 'with twenty members. At that time the leading theatres werie Wallack's, Daly's and the Bijou. "LADY BUTTERFLY*^ DOING BIG "Lady Butterfly." the Morosco Golding 001011311/3 musial conedf'whtdb has been doing a capacity business fhion^ the sale 6f "two for one" and cnt^te tickets, will conclude its engagement af the Astor The- atre on May 12. . The. Shnberts then will place either "Bal Tabarfn" or the new Jim Bartoa .show m the house for a Smmner engagement. "CABETTE" SHORT. CLOSES "Gabettc," the musical play sponsored by the Community Players, Incl, whidi closed after having been out two wedcs. is said to have been hauled in because of lack of capital. Several members of the cast and the stage crew have filed claims against George Byron Totten, who as head of the Community Players, promoted the produc- tion. Totten's difficulties with the piece date back to its early rehearsal period, when Equity stepped in and insisted upon him posting a bond before allowing the re- hears^ to continue. Totten posted the required amount in cash and the rdearsals continued. The piece opened in Altentown, Pa., and while more or less enthusiastically received did not accomplish any'phenom- enal takings. Totten is said to have as- send>lcd the company together and pre- vailed upon them to write their organiza- tion, meaning- the Equity, to permit Totten to use the money he had posted as a bond, so that the show could continue. At first Equity wired the company deputy that th^ oould not allow Totten to use the mooe^ he had posted with them, but after a series of loog distance phone calls, the money was forwarded. When die show stopped in Scranton the follow- ing wedc its earnings were just about sufficient to bring the company back, with-, out payiiig salaries to either the cast <k-' stage crew. Equity has taken the stand that since the meim>ers of the company took matters in their own hands and continned witii the piece against their admonitionSj^that the Association can hardly bc^expectcd to collect die money dne. - Totten is said to be scurrying around attempting to interest capital to finanrr the piece for a metropolitan presentatioa. However, he will have Equi^ to reclcou with before he can proceed further with the piece. At present his name adorns the Equity black-list, all of which means that members of tiie or^nization will not be permitted to appear in any of his produc- tions until he has adjusted the outstand- ing claims. SEE END OF CHICAGO ORCHESTRA Chicago, April 21.—Because of the musicians' union demands it looks like the end of the Chicago SymplvMiy Orchestra. For the past few weeks there were ru- mors that all was not well between the Musicians' Union and the Orchestral As- sociation of Chicago. Last night matters came to a head. Whether it is to oeprate on a two-thirds basis, or whether there be no orchestra at all for next season will soon be decided. The musicians' union served a demand on the Orchestral Association for a 25 per cent increase or $15. a week for next season. The Orchestral Association an- swered that last season it suffered a de- ficit of $70,000 and feels unable to increase its burden. When the Chicago Symphony finishes its season tonight it will be technically dis- banded. There have been no contracts signed with any members for next season, which is unusual. A notice which is be- ing salt out to subscribers reads that re- newals will be accepted only on the condi- tion of there being another season. In a statement by the Orchestral Asso- ciation it tells that on March 21 of this year a delegation from the Musician's union headed by President Petrillo pre- sente4 and discussed a demand^that a mini- mum salary for members of the orchestra be increased from $60 to $75., which, since a number of the players receive more than the minimum scale, would mean an increase of like amount throughout the orchestra. .After a full explanation of the situation the delegation was told it was impossible to meet the demand in full or even in part. On the following Saturday (March 24) the union served notice that no member of the orchestra should enter into a contract for the season of 1923-24 until the matter had been settled. Horace Oakley, one of the 'Vice -presi- dents of the Orchestral Association stated that in the year 1921-22 the orchestra ran behind some $30,000 after using the net earnings of the hall and'buikling of about $40,000 or about $70,000 total. In order to meet diis deficit securities from the en- dowment were sold. This season the price of tickets was increased to the ex- tent of $16,000 and office rents in the build- ing were raised about $5,000. With en- dowment funds now available, this year's -deficit will be met. The present union scale -for orchestral players in Chicago is the best in the country, a minimum, of $60. for four concerts a week and four rehearsals of nine hours for twenty eight weeks. There are such additional benefits, and old age pensions, for none of which are the mem- bers of the orchestra assessed one cent. Mr. Oakley declares that three courses are open. The orchestra may accept Hit old scale; the orchestra may next year number sixty-five players instead of the present ninety-two; the orchestra may be entirely disbanded. The Chicago symphony orchestra was organized in 1891 and this is the first time in tiie thirty-two years that the association and the players have coine to' an open con- flict. Heretofore all salary adjustments have been made peacably and equitable. "XYPALANTr FOR CARROLL Henry Baron's aidaptation from a French farce, ''My Aunt From Xypalanti," wilt be presented at the Earl C^xroll Theatre next Monday night It was intended to try the show out, opening at Wilmington last Monday night, but the preliminary tour was cancelled with the producers deciding to try it out in New 'York. The attraction is iplaying on a straight percentage con- tract without any minimum guarantee to the theatre. "ADRIENNE" COMING IN "Adrienne," Ixuis Werba's new musical production which is scheduled to open at the Garrick Theatre, Philadelphia, on May 14 and remain on the road until the latter part of June is slated to be brought into either the New Amsterdam or the Globe Theatre. It will be given the preference at the New Amsterdam should the "Follies" vacate, otherwise it will follow "Jack and Jiir at the Globe. MILEAGE BOOK PLAN HALTED Boston, Mass., April 23.—^After a hear- ing on a petition of fifty Eastern railroads opposed to the Interstate Commerce Com- mission ruling. Judges Mack, Brewster and Morris in the United States District Court issued a pennanent injunction re- straining the commission from carrying out its recent order providing for the sale of non^tiansferable and intetchaiigeable mileage tickets at a 20 per cent price re- duction. The suit was brought to annul the In- terstate Commerce Commission order of March 6, 1923, requiring the railroads to issue at,a price of $72 tickets calling for 2,500 miles of carriage in denominations of $90. Although the case was brought before the court on a petition for a tem- porary injimction it was agreed during the argument that the hearing be consid- ered finaL Under the terms of the commission or- der against which the injimction was issued, practically all of the large railroads in the United States wefe to place on sale on May 15, mileage tickets good for 2,500 miles at a 20 per cent rductioiL The Boston court order is likely to restrain the sale of tickets on that date all orver the country, although the terms of the order as conveyed to the commission only affects the eastern railroads which fought the commission's policy in the court Some action is expected now by other railroads in the South and West since they have a prccendent established to guide them. Word has come from Interstate Com- merce Commission officials in 'Washington that the Federal Court order here would probably be appealed at once to the Su- preme Court for a final decision. The opinion of the Federal Court in Boston follows: "It is clear from the record," the opin- ion states, "that the commission proceeded on the assumption that the spirit and theory of the congressional amendment (approved August 18, I9ZZ,) required them to order the scrip coupons to be issued at reduced rates, at least in so far as such rates could not be deemed con- fiscatory. . . . "In our judgment the amendment is not mandatory. It does not prescribe that such coupons shall be issued at a reduced rate. Attempts to fix specific reduced rates by legislation were defeated. "The amendment itself is attacked as unconstitutional in that in requiring the interchangeable scrip coupons it compels an interchange of credit between the rail- roads and thereby compels a service at the risk, of complete financial loss in case of the, insolvency of the road from which the scrip may have been purchased. "As the commission points out, the rail- roads themselves have maintained the in- terchangeable scrip coupons established imder govenunent operation, and have thus voltmtarily established a similar in- terchange of credits over alt roads except electric and short line carriers. Under the present amendment, the extent of such credit interchange is left to the commis- sion, and must, of course, be reasonable; but in requiring the interchange in respect to the script coupons, the action of Con- gress must be upheld as a constitutional exercise of power within the aforesaid decisions. "A pennanent injunction will therefore be granted against the order of the com- mission." TWO NEW McGUlRE PLAYS William Anthony McGuire and Gordon Morris have collaborated on two new plays, "Jack in the Pulpit" and "The Devil and Mary." One of the plays wilt be done in the autumn by Sam Harris. THEATRE WAGE INCREASE (Continued from page 3) purpose of arranging a new wage scale, which it is said will call for an average of fifteen per cent increase. The Motion picture operators who have a separate local, wilt do likewise early in May and draft a scale which will call for an aver- age of twenty per cent increase in wages. Just how the managers will receive the demands of the numerous unions cannot at this time be learned.