Motion Picture Herald (Nov-Dec 1934)

18 MOTION PICTURE HERALD November 10, 1934 Business Is Better Abroad: Klarsfeld 18 MILLION BID MADE BY FWC CREDITORS Move by Fox Film and Chase Bank Called "Legal Technicality"; Wesco Name Changed A technical offer of $18,000,000 for the assets of Fox West Coast Theatres — a circuit comprising 325 houses in actual operation and about 75 others closed — was reported this week from Los Angeles to be planned by the circuit's principal creditors. According to the report, which could be neither affirmed nor denied in New York by Fox officials, who said they were "at sea" on the technical arrangements being made for reorganization, these principal creditors, in effect Fox Film Corporation and the Chase National Bank of New York, are prepared to make the $18,000,000 bid Thursday, following which Referee W. S. McNabb in Los Angeles is expected to set a hearing date, probably about two weeks later, when the private sale will take place. Called "Legal Technicality" Spyros Skouras, who is in New York, could not be reached for a statement, but one official described the $18,000,000 reported offer as "purely a legal technicality" having to do with the claims of both Fox Film and Chase National. "Even if they offered $90,000,000 for the circuit's assets," this official said, "neither Fox nor Chase would have to put up any actual cash." Under the reorganization plans understood to have been agreed upon by Chase and Fox Film, the name of Wesco as holding company for the theatres will be changed to National Theatre Corporation. Papers for incorporation of the new company, which will have as its head Sidney R. Kent, Fox president, were filed in Dover, Del., this week. Capital stock was increased from 1,000 shares to 1,800,000 at no par value. It is understood Charles Skouras will be first vice-president and W. C. Michel second vice-president. Mr. Michel is first vicepresident of Fox Film. Mr. Kent also will head all Fox theatre units, including Fox Rocky Mountain and Fox Midwest. A petition for leave to appeal from an order signed by U. S. district court judge Julian W. Mack denying Archibald Palmer, counsel for a group of Fox Metropolitan bondholders, the right to examine officers and members of the Fox Metropolitan bondholders' committee under Section 21 -A of the bankruptcy law, was argued before the U. S. circuit court of appeals in New York Monday. Decision was reserved. Subsidiaries to Follow Suit The resignations of Archibald R. Watson as president of Fox Theatres Corporation and Watson & Wilguss as attorneys for receivers were accepted by Federal Judge Martin Manton. Fox West Coast Theatres, under the new plan, will be known as Fox West Coast Theatres Corporation, the only difference being the addition of the word "corporation." Spyros and Charles Skouras, who are in daily communication with Chase officials and Mr. Kent, are said to be the recipients of five-year contracts, with options for five additional years. Actual completion of the reorganization plans is not expected before the new year. After Fox West Coast, subsidiary groups are expected to follow the same procedure. On October 28 the last of the major claims against FWC was filed, one of these being for final settlement of compensation for the three trustees, Charles Skouras, William H. Moore and Charles C. Irwin. The sum asked is $200,000 for services up to September 29. Another claim was filed by O'Melveny, Tuller & Myers, law firm, seeking $212,000. Spyros Skouras will continue as operating head of all FWC houses, it was said in New York this week. Conferring in New York with Mr. Skouras and Mr. Kent is Rick Ricketson, operating head of Fox Rocky Mountain. Theatrical, Film Groups Pledge Aid to Charity Cooperating in the drive for $2,000,000 for the Federation for the Support of Jewish Philanthropic Societies, representatives of the motion picture industry met last week in New York at the Motion Picture Club. Al Lichtman of United Artists heads the theatrical division. Present at the meeting and pledging support were Phil Reisman, RKO; David Bernstein, MGM ; Sam E. Morris, Warner ; A. Schneider, Columbia; Edward Alperson, Fox; Harry Thomas of First Division, representing independents ; Harry Brandt, representing independent theatres, and others. Sonotone Stock Listed Listing of 185,250 additional shares of Sonotone Corporation voting common has been approved by the New York Curb Exchange. According to the company, 100,000 shares of the $1 par common will be sold for cash, 35,250 to employees, and 50,000 will be held for conversion of 2,000 shares of outstanding preferred. Hal Home Marries Hal Home, advertising and publicity director for United Artists, married Lea Sachs Wednesday morning at City Hall in New York. Immediately after a surprise luncheon tendered Mr. Horne at Leon and Eddie's, the bridegroom left for Hollywood. McNamee Contract Renewed Graham McNamee this week signed a newtwo-year contract to continue as Universal's Talking Newsreel Reporter. Goldberg Joins Topical Lou Goldberg, recently resigned from Gaumont-British, has joined Topical Films to handle the Broadway showing of "Dealers in Death." Conditions all over Europe are improving despite a bad summer season experienced by motion picture theatres, Henri Klarsfeld, general manager for Paramount in France, Belgium, Switzerland, Egypt and the north of Africa, said Tuesday on his arrival in New York from Paris. "Big pictures are getting good grosses all over Europe," he said. Mr. Klarsfeld plans to remain in New York three weeks for conferences on new policies and to look at new pictures. Also arriving on Tuesday were Sol Lesser, Eddie Cline, director ; Clarence Brown, Tullio Carminati, Katharine Cornell. Milwaukee Variety Club Names George Fischer Chief Officers of the recently organized Milwaukee Tent of the Variety Club have been named as follows : George Fischer, chief barker ; Dave Weshner, first assistant chief barker ; Charles Trampe, second assistant chief barker ; Sam Shurman, third assistant chief barker ; H. J. Fitzgerald, wagon man ; Ben Koenig, property man, and E. J. Weisfeldt, Ed Maertz, A. C. Gutenberg, J. O. Kent, Al Kvool, Art Schmitz, canvas men. Committee chairman have been named as follows : Mr. Weisfeldt, entertainment ; Mr. Fitzgerald, ways and means ; Mr. Weshner, publicity; Mr. Trampe, finance; Mr. Shurman, house, and Mr. Gutenberg, constitution and by-laws. John Hamrick Opens House In Portland, One in Seattle John Hamrick, independent theatre operator in the northwest, has opened the New Orpheum in Portland, Ore., and plans to reopen the New Orpheum in Seattle. Andrew Saso is the manager of the Portland house. Stage and screen players featured the opening of the theatre. The Seattle theatre was formerly operated by Oscar Oldknow and associates, and will be completely renovated. Court Upholds Theatre Refusal of Broker Tickets Justice Albert Cohn of the New York supreme court last week upheld the right of a theatre to refuse admission to a person holding a ticket purchased from a speculator. The decision came when Justice Cohn refused an application for an injunction to restrain the Martin Beck theatre from refusing admission to holders of tickets purchased from Harry Cohen, ticket broker. General Talking Wins Theatre Countersuit General Talking Pictures has won a countersuit against Mermaid Cinema Corporation, operators of the Mermaid theatre. Coney Island, New York. The theatre owners removed De Forest reproducing equipment after having made severay payments, and sued General for the money paid. General filed countersuit for the unpaid balance. A jury awarded General $3,400.