Exhibitors Herald and Moving Picture World (Oct-Dec 1928)

October 27, 1928 EXHIBITORS HERALD and MOVING PICTURE WORLD 21 Radio-Keith-F B O Deal Closed With Sarnof f as Board Head Whiteman Signs for "U" Sound (Special to the Herald-World) NEW YORY. Oct. 23.— Paul Whiteman has been signed by Universal to make at least one production, and Carl Laemmle has a series of options for following pictures, which will bring the total compensation to Whiteman above the million mark. Whiteman and his band will interrupt their country-wide tour in February tor eight weeks to make the first picture, which will embody many of the incidents in Whiteman's lite. The name of Whiteman's first picture is expected to be "The King of Jazz" and its lyrics and music will be written by L. Wolfe Gilbert, well known musician, and Mabel Wayne, who wrote "Ramona." The score will be arranged by Ferdie Grofe. Production will start at Universal City about February 15. Sid Grauman Going In Production? Buys 'Turn of the Road'9 (Special to the Herald-World) HOLLYWOOD, Oct. 23.— That Sid Grauman will take a flier "into production is strongly indicated by the closely guarded news today that he has 1 ought screen rights to "The Turn of the Road" for $15,000. It is an old story that King Vidor filmed several years ago and cleaned up on. Grauman is said to have declared he expects to turn his major interest to production from now on, rather than exhibition. 3,000 Mile Feature Put on for AM P A; Shows Cable Laying (Special to the Herald-World) NEW YORK. Oct. 23.— Charles Burrell put on a three thousand mile feature at the Thursday luncheon of the A M P A. The picture was a knockout and it showed the laying of the latest octoplex cable from the U. S. to the Azores. It also showed the spot where Ruth Elder did a "Brody." President George Harvey, of the A M P A returned from the Toronto convention all browned up, but looking fine. In fact, all the boys who had the price went to Canada for the convention and other things. Ortonville, Minn., Votes For Shows on Sunday (Special to the HeraldWorld) ORTONVILLE, MINN., Oct 23.— The city council has voted to give the people here Sunday shows An ordinance legalizing performances on the Sabbath has been passed by a vote of four to three. Production, Sound, Theatre Units Merge in Powerful Body Radio-Keith-Orpheum Is New Name — Kennedy Holds Option to Buy 75,000 Shares By PETER VISCHER NEW YORK, Oct. 23. — Successful formation of the Radio-Keith-Orpheum Corporation was announced here today, with the astute David Sarnoff as chairman of its board of directors. Powerful Association Completed The new corporation completes the association of the Radio Corporation of America and its subsidiary. RCA Photophone, Inc., which controls the Photophone device* for the synchronization of sound and motion pictures, and its affiliated company, the National Broadcasting Company, with the Keith-AlbeeOrpheum Corporation and F B O Productions, Inc. This new organization will be, at its outset, one of the most powerful and potentially most promising in the amusement industry. The consolidation of an established producing unit with a string of theatres and an important synchronizing company, possessed of existing discoveries and equipped for future research, is a matter of outstanding importance to motion picture circles. Kennedy's Plans Not Fixed Sarnoff's active participation in the company as head of its board of directors brings into motion pictures an executive of wide experience and outstanding ability. As vice-president and general manager of the Radio Corporation of America he won an international reputation as a far-sighted constructive representative of modern American business. Joseph P. Kennedy, who came into the industry as head of F B O and rapidly extended his influence over Keith-Albee-Orpheum, Pathe, and other units, was an active participant in the present negotiations. His original plan, it can be said with assurance, was to retire from F B O and K A O at what he considered the proper moment, but his plans are not yet definitely fixed. Holds 75.000 Share Option As things stand now. Kennedy holds an option to buy 75,000 shares of stock in the new company. He was a member of the committee— together with E. F. Albee, Walter P. Cooke, Maurice Goodman, Marcus Heiman, B. B. Kahane, and J. J. Murdock — which advised Keith-Albee-Orpheum stockholders to agree to the amalgamation. He will remain, of course, as adviser to Pathe, which is in no way involved in the present deal. Radio-Keith-Orpheum will issue shares of its Class A stock, share for share, for common stock of K A O tendered for exchange, and will also issue 500,000 shares of Class B stock "in consideration of certain contracts to be made with the new company by Radio Corporation of America, RCA Photophone, Inc.. and National Broadcasting Company." It is contemplated also that shares of Class A stock of the new company will be issued, share for share, for capital stock of F B O. and additional shares of Class A may be issued. Lehman Brothers and Blair & Co., Inc.. holders of substantial amounts of common of K A O took an active part in the negotiations. The stock is to be deposited by November 15. Cases Involving Films Among 18 Instituted by Department of Justice (Washington Bureau of Herald-World) WASHINGTON, Oct. 23.— Cases involving motion pictures were among the 18 proceedings instituted by the Department of Justice under the antitrust laws during the fiscal year ended June 30, last, it is shown by a report just issued. Motion picture cases were also among the \4 suits finally concluded in the year. There were 26 cases pending July 1, the report showed. George Barr McCutcheon Drops Dead at Luncheon ( Special to the Herald-World) NEW YORK, Oct. 3.— George Barr McCutcheon, author of several novels, which have been screened, among them "Graustark." "Brewster's Millions" and "East of the Setting Sun," dropped dead today at a luncheon of the Dutch Treat Club in the Hotel Martinique. He was a brother of John McCutcheon, cartoonist of the Chicago Tribune. Rumor Roxy Plans Largest Theatre Brings Promise of Early Statement (Sfectal to the Herald-World) NEW YORK, Oct. 23. — S. L. Rothafel would neither deny nor verify the report that he is soon to build the world's largest theatre when interviewed yesterday. However, there is something buzzing in Roxy's head as he admits himself. "I have long planned to build a theatre which would be the world's largest and mos* novel theatre," declared Roxy to a HERALD-WORLD representative, "and I will have an important announcement to make shortly regarding my plans, but the present report is premature." According to the reports the theatre seating 6.600 will produce monthly revues at c two dollar top admission with an expected gross of $210,000 weekly, and the house will be completed in the spring of 1930.