Exhibitors Herald (1927)

April 2, 1927 EXHIBITORS HERALD 23 Fox Purchases Roxy Chain; Rothafel Stays as Manager 20 Million Deal Gives Firm Broadway Outlet Includes Two Other Roxy Circuit Theatres — Raises Fox Corporation Holdings to 42 Houses (Special to the Herald) NEW YORK, March 29. — Rumors which have been current for several months that one of the big theatre chains would acquire the Roxy theatre bore fruit last Friday when the control of the new big house was purchased from Herbert Lubin and associates by Willizim Fox. While no official figures were given out it is said that the deal, which includes the sites for two other Roxy the^itres, involves in the neighborhood of $20,000,000. S. L. (Roxy) Rothafel will continue the management of the theatre under the new ownership. Gives Fox Broadway Outlet Acquisition of the Roxy theatre provides the Fox Film Corporation for the first time with a Broadway playhouse for showing its own pictures. For years Mr. Fox has been unable to obtain first run showings on Broadway of his own films except by paying high rentals to independent theatre interests, while, on the other hand, the Famous Players controlled the Paramount, Rialto and Rivoli; the Strand ran First National pictures, Metro-Goldwyn-Mayer films had their showing at the Capitol and Warner Brothers showed their pictures at their own theatre. NEW YORK, March 29. — WUliam Fox, in gaming control of the Roxy theatre and the other theatres now building for the Roxy circuit, in the same stroke geiined for his company the advantage in one of the most strategic moves in the history of the industry. The Roxy theatre — the world’s greatest theatre — has been coveted by practically all of the most important factors in the business since its realization seemed assured. The producer owning the Roxy was obviously to have an advantctge worth millions of dollars in prestige for his company and his pictures. In addition, control of the Roxy theatre, including the other theatres in the Roxy circuit, means a trading ability of veist significance in booking matters, nationally as well as in New York. The Roxy deal is another manifestation of the courage, vision and resourcefulness of William Fox and the Fox company. Under existing conditions in the industry no other single move could possibly have the immediate effect and the future influence of the Fox acquisition of the Roxy. Although the Fox interest in the Roxy proposition was long a matter of street rumor the actual consummation of the deal struck the New York trade as a genuine sensation. From the vantage point of the Roxy theatre the Fox organization is now destined to exert an increasingly greater influence on the course of the industry — and on the very important consideration of keeping the competitive spirit vigorously abroad in the business. — 'M. J. Q. Wampas Seniors Stirred Up at Attempt to Put Them on Inactive List (Special to the Herald) HOLLYWOOD, Mar. 29. — Consideralile dissatisfaction has been stirred up in the ranks of the Wampas, the Western motion picture advertisers organization, over a recent decision to place a number of the active members on the associate member list and thus eliminate them from the group insurance plan recently inaugurated. Old members feel they are being discriminated against. A Canadian insurance company has written a blanket policy for all members of the Wampas, allowing each $1,000 life insurance for each year they have been a member. No physical examination is required and the Wampas treasury pays the yearly premiums. Mr. Fox has been negotiating for the purchase of the theatre for six months. With that deal completed the Fox Theatre Corporation has bought controlling interest in the two new theatres of the Roxy Circuit, Inc. Ground for one, to be called the Roxy Mansion, is now being broken at Lexington Avenue between Fifty-eighth and Fifty-ninth Streets. A third, the Roxy Midway, is to be built at Broadway and WiiUam Fox Seventy-second Street. These three, in addition to nine being built in Brooklyn, Detroit, St. Louis, Newark, Philadelphia, San Francisco, Los Angeles, Washington and Kansas City, will make a total of forty-two theatres for the Fox Corporation. Mr. Fox’s announcement of his purchase says : Carthay Circle Signs Three More Fox Films (Special to the Heinid) LOS ANGELES, March29.— The Carthay Circle, where Fox’s “What Price Glory’’ is running its nineteenth week, will also show at advanced prices Fox’s “7th Heaven,” “Sunrise” and “Carmen.” This contract makes the Carthay Circle, of which Fred A. Miller is managing director, the home of Fox pictures for more than a year and a half. The agreement was signed with James R. Grainger, general salesmanager. “Under the new arrangement Roxy will continue his personal direction and supervision of the Roxy theatre in New York and will also exercise similar jurisdiction over the chain of enormous theatres to be built in New York and elsewhere by the Roxy Circuit. “This entire chain of theatres will, therefore, benefit through management by a man who has directed many of the large and important theatres of New York, and who has become a world figure through his radio broadcasting and his comprehensive use of the motion picture in connection with music and ballet presentations. All of the theatres will be designed by Walter W. Ahlschlager, architect of the Roxy theatres.” Steady Flow of Pictures In speaking of the sale to Fox, Mr. Rothafel said: “Mr. Fox’s move in connection with the Roxy circuit is the greatest thing that has happened to me in years. It places our theatre in a position of having a steady and high class flow of motion pictures. “My own status remains as originally intended. I will, of course, continue with the Roxy and with other theatres to be built by the Roxy circuit." Financial circles take the statement to mean that sufficient stock to assure control of the Roxy Theatre Corporation, offered at the time the corporation was formed for the erection of the new Roxy theatre and others since planned, was withheld from public sale in contemplation of such a transaction. Stock already issued in the Roxy Circuit totals 125,000 shares of class A and 350,000 shares of common. White, Weld & Co. hold 176,000 shares of the latter. Mr. Fox said details of new financing had not yet been worked out, so he was not ready to make any announcement for the benefit of those who had invested in the undertaking.