Motion Picture Daily (Jan-Mar 1934)

MOTION PICTURE DAILY Tuesday, January 9, 1934 Roxy Resigns Post as Head Of Music HaU (Continued from page 1) prise. For some time, the understanding has been prevalent up and down Broadway that Roxy was not getting along any too well with the current RKO management. The question of budgets which Roxy is reported to have more or less persistently ignored at the Music Hall, the Roxy and other theatres with which he has been associated is regarded as the factor, existent for some time but which yesterday crystallized in making public acceptance of the resignation. Thf* action is understood to have taken place last Friday and kept under cover since. 3 Others Resign With Him Roxy's withdrawal from the big theatre which was conceived and built pretty much to his own specifications and almost entirely in keeping with his plans and ideas was followed by the resignation of Charles Griswold, manager of the Music Hall and the latter's two assistants, Charles Dowd and Lloyd Evans. Word around the Music Hall had it their triple action was taken "out of an unswerving loyalty" to Roxy. Herman Wittman, manager of the Palace, replaces Griswold. The Palace post remained open last night. Officially, J. R. McDonough, general manager of RKO and president of Radio City Theatres, Inc., subsidiary company controlling operations of the Music Hall, declared the resignation "will have no effect on either the policy or the bookings of the theatre." It's Been Brewing Tl Insiders' Outlook Then there is Roxy. He hasn'tTTpOSSIBILITY that Roxy I had it entirely his own way since Radio City threw open its hand some doors almost a year ago and today his way is reported even less his own. There have been some pointed suggestions made about operating . cost the Music reports lad consideroie to do with the promotion of the Old Roxy has been talking to its namesake about a return to the 7th Avenue Cathedral. Yet if you believe, in denials, you have Howard Cullman's word for it that this is the bunk. . . V would go .back to his old' hatrack at the original Roxy was reported to have dimmed yesterday. Herb Lubin, wbn promoted the 7l .reditors and taking the house out of the receivership under which it has been operating for some time now were being sought from Hayden, Stone & Co., the inside goes. Yesterday Dick Hoyt, who has had a flyer or two in the picture business — notably Fox West Coast and what good ~ nories will recall as th< It -„■'•, ■ Leon Leonidoff, who, according to McDonough, produced the stage shows before and during Roxy's "terms as manager of the world's largest theatre," will continue at this post. McDonough also stated: "Although the theatre has been operated with selected first runs and lavishly produced stage shows for more than a year, Mr. Rothafel did not enter its active management until late last April. He had previously produced the all-stage entertainment which opened the theatre in December. 1932, and was then seized with an I haven'f missed on a Cantor yet, and I'm positive "Roman Scandals' will break my house record. Arthur J. Manard, Liberty Theatre, Hartford, Conn. illness from which he did not recover for several months." Late yesterday Roxy, in a statement, denied the budget was ever exceeded, declaring "at no time were the stage shows producd in excess of the budget allowance." To Take Rest "I am leaving for a well-earned rest within a few days," he said. "When I return, I hope that I may again have the pride and happiness cf contributing to the entertainment of the public to which I have devoted so great a part of my life." At the same time, he extended appreciation to the Music Hall staff and wished them all well. The resignation was followed by a flock of Times Square rumors. One was a revival of the reports Radio was dickering with Max Reinhardt, famous European maker of spectacles, to take over the post. This was described as "silly" by an RKO official. Bringing a smile to those who had heard it was a second report that H. B. Franklin would step into the spot, the story gaining credence principally on the ground he had devoted the major portion of his time to Music Hall nurturing early in 1933. A third had it Allan Foster, stage producer, would join the organization. All of these were subsequently denied. Tax Bill Hearings To Be Resumed Today Washington, Jan. 8. — Hearings on the new tax bill will be resumed tomorrow by the House Ways and Means Committee, with representatives of a number of industries scheduled to present testimony with respect to the excise taxes and miscellaneous revenue matters. The hearings before the committee last month were for the purpose of considering problems of tax avoidance primarily, although testimony was taken with respect to a number of excise taxes, among them the admissions tax, repeal of which was asked by representatives of the legitimate theatre. Fix Bail for Realty Group In Brooklyn The 12 men indicted by the Federal grand jury in Brooklyn last month as a result of investigations into activities of New York Investors, Inc., and affiliated companies pleaded not guilty yesterday before Federal Judge Moscowitz in Brooklyn and were released under bail for further hearing Jan. 22. The three indictments returned by the grand jury charged conspiracy to defraud bondholders and the New York Stock Exchange, concealment of assets and fraudulent use of the mails. It was alleged that the men named in the indictments fraudulently concealed millions of dollars in assets while knowing that bankruptcy proceedings were pending against the companies. Bail of $7,500 each was fixed for Frank Fox, president of Realty Associates Securities Corp. ; Frank Bailey, chairman of the board of New York Investors; William M. Greve, president of New York Investors; Franvis T. Pender, vice-president of New York Investors and president of Allied Owners' Corp., and William H. Wheelock, director of New York Investors and president of the Prudence Co. Each of these men was indicted on three counts and bail of $2,500 was fixed for each count. Bail of $2,500 each was set for James Graham, a director of Realty Associates Securities Corp. ; James B. Fisher, another director of that company; Harry D. Burchill, vice-president of Realty Associates Securities Corp. ; Eugene Moses, director ; Gordon S. Braislin, another vice-president; Otto E. Reimer and Henry S. Parker, chairman and secretary, respectively, of the bondholders' committee. Counsel for the indicted men asked Judge Moscowitz to release them in custody of their attorneys, but Assistant U. S. district attorney Maxwell Parnes requested that bail be fixed at $10,000 for each of the men. Judge Moscowitz remarked that the men were prominent and that he would set bail at $2,500 for each indictment count. Bailey is a director of Paramount Garmes Made Director Hollywood, Jan. 8. — After being promised the post of a director for some time, Lee Garmes, cameraman, has been given his chance at Fox. Al Rockett has chosen Garmes to direct "Fledglings," which will star Lew Ayres. Columbia-Brice Dicker Monte Brice of Rowland-Brice Prod, is back from the coast for negotiations with Harry and Jack Cohn to make two pictures for Columbia release. A meeting is set for today. FWC Regains Paramount Portland, Jan. 8.— Fox West Coast interests again assume management of the Paramount here, effective Jan. 12. Homer Gill, present manager, will be succeeded by Gerald Gallagher of Los Angeles.