Motion Picture News (Oct-Dec 1930)

VOLUME XLII NUMBER 15 NEW YORK CITY OCTOBER 11, 1930 Schenck Seeks Angel in Hughes; Pathe Control Is Goal with RKO Joining Race Denies Hughes Buy Hollywood — Joseph M. Schenck, arriving here Thursday from the Coast, denied that Howard Hughes has acquired an interest in United Artists. He made no mention, however, of the reported deal under way for Hughes to buy into Art Cinema Corp. Mary Pickford, Schenck stated, has abandoned plans to appear in a New York stage play, intending to continue picture work. Tear Bombs, Cig Butts, Bottles, One Bad Dream Chicago — Investigation of the "mystery" of the finding of a tear bomb in a Congress Hotel room which had been vacated by Al Steffes of Minneapolis transfers suspicion from the tear bomb to the author or authors of the story. F. E. Burke, manager of the Congress, after denying any knowledge of the incident, authorized a Motion Picture News representative to conduct his own investigation with full co-operation from the hotel (Continued on Page 34-Z?) Lorentz Rides Into One Jam; Avoids Another A little matter of mixing names caused embarrassment aplenty to Pare Lorentz, picture critic of Judge, and the Guaranty Trust Company of New York, when, in a recent issue, the scribe stated that the bank had issued a report characterizing the picture companies as "unsound and risky." Fireworks began to pop over the heads of the bankers, who were innocently blamed for the sock, and the latter in turn leveled their cannon at Lorentz, who rushed into print with the following: "Some time ago in these columns I claimed that the Guaranty Trust Company of New York had issued a report characterizing the movie companies as unsound and risky. The Guaranty Trust Company, never made such a statement, and I'm sorry the whole thing came up. I'm not going to make a mistake again and attempt to name the bank that did issue such a report (it really wasn't just an idea that I made up — my information was confidential and supposedly authoritative, but mixed up on its banks, and I'm not going to attempt to start all over again)." To which one nit-wit replied, "Now I'll tell one." U. A. Chief to Sell 50% of Art Cinema Interest; Slashes Salaries Joseph M. Schenck's efforts to obtain new financing through proposed sale of an interest in Art Cinema Corp. to Howard Hughes, coupled with a plan for acquisition of Pathe to help seal the bargain, may precipitate a race between Schenck and Radio-Keith Orpheum to get control of Pathe. Having instituted in New York drastic moves to cut overhead through pruning of personnel and a general 10 per cent reduction in salaries, Schenck has returned to the Coast, where negotiations are reported being continued to dispose of a 50 per cent interest in Art Cinema with Hughes as the buyer. This is the second maneuvre to bolster finances of the production company, which some months ago borrowed $3,000,000 from Paramount. Pathe figures in the proposed deal as an added attraction, it is said, its stars beingwanted to strengthen the United Artists array. Joseph P. Kennedy is reported to have offered to sell control to Schenck at various times, but the deal now is reported as "very hot." Radio Ready to Act Meanwhile, Radio does not intend to let the Pathe plum slip through its fingers, it is indicated, with negotiations now under way between David Sarnoff and Elisha Walker of the Bancamerica-Blair banking group. Radio has sought to make a deal on various occasions, it is stated, wanting par(Continued on Page 34-D) Joseph M. Schenck Art RKO-Pathe Terms Under terms of the deal reported under way between David Sarnoff and Elisha Walker, Radio would buy 1,000,000 shares of Class B common and 250,000 shares of Class A common stock of Pathe. The latter has outstanding $5,500,000 in bonds, but there is no provision for these to be taken over by Radio, it is said, which would mean that Pathe's identity would be retained and operations of the organization maintained as an individual entity. "Bad Business" "All wet" was the manner in which one sales department head characterized salary reductions being made to pare overhead. "At a time when the industry needs real push to get ahead it is fallacy to cut salaries, thus weakening employee morale," he said. "It would have been okeh if when the companies were making big dough they had boosted salaries, but they didn't, so cuts now not only are unfair but bad business." 'Wolf Cries Are Drowned Out By Business Cheers While some companies in the industry are crying "wolf," pruning their personnel and cutting salaries, business generally is on the upswing with wages holding firm, states a national survey presented to the National Association of Manufacturers at its annual convention in New York. Although the trade slump has been widespread, it has not been sufficient to "weaken the confidence of understanding minds in the essential parts of our American economic system," John E. Edgerton, woolen mill head, told the convention. Sap Stunt Starts Salary Slash Idea in Big Brain One of the week's big laughs in New York film circles was the result of one of those highly formal interviews which a second string distributor condescended to grant to a weekly trade paper reporter. The big shot distrib, being a busy, highpowered executive, instructed his press agent to collaborate with the newshound on a set of questions which could be submitted at the interview. Much of his "valuable" time would be saved by such a method, he pointed out. The p. A. and the scribe got together and the former, hearing rumblings of personnel cuts and salary slashes, hit upon the bright idea of including a feeler in the question line-up. This done, the reporter was ushered into the sanctum-sanctorum of the big gun and everything went over as per schedule. The interview was fast drawing to a close (Continued on Page 34-D)