Motion Picture News (Oct-Dec 1930)

A' ovcm ber 1 . 1 930 M o i i o n P i c i u r c N e w 19 VOLUME XLII NUMBER 18 mom NEW YORK CITY NOVEMBER 1, 1930 Bankers Plan to Set Off Fireworks as Negative Costs Keep on Skyrocketing Nearing the End Hard-boiled government authorities are about ready to tighten the strings of a net which during the past several weeks has been woven around one of the most notorious — if not the boldest— picture stock swindlers in the East. This particular gent of ill-fame had the nerve to attempt to interest news and tradepaper men in his venture, using their editorial comment on h;s questionable venture to fleece big names in the business. He did succeed in duping one or two of the newshounds, and secured the patronage of several important screen luminaries who are yet unaware of the crooked deal. Director Lick Reporters? Then Came the Dawn Hollywood — "I can lick any newspaperman in Los Angeles." shouted Ralph Ince, director, during a little argument in a newspapermen's club. When peace had settled down gently three members of the film colony had cracked heads and the journalistic casualties numbered four black eyes and one broken nose. Final score, 5 to 3. It started when Rex Lease, big he-man among the weepy sex, who holds a courtesy card at the club, appeared with Ince. Henry Clive, artist, and Oliver Price, oil operator, as his guests. When Lease wanted to leave, his compatriots indicated a desire to remain, but club members hinted that he take his bosom friends along. The hint brought the aforesaid challenge from Ince — and the battle was on. Rex's friends, outnumbered 35 to 3, had little chance. Rex, who is adept at slugging women, judging from the $50 fine he paid for socking Vivian Duncan in the eye, was a calm onlooker and did not go to his friends' aid. He apparently got a huge kick out of his ringside position. But he did see his guests safely to the hospital for first aid. Police were called during the fray, but no arrests were made. Studio Chiefs to Be Put on the Spot for Shooting Up Expenses; Nick Schenck, Rubin, Feist, Brandt and Kennedy Make Quick Exodus to West Negative costs, ancient nemesis of the picture business, are out of bounds again. Coupled with the skyrocketing in expense seems to be a general nosedive in quality of pictures. The bankers who make it possible for the entire industry to go 'round are of that opinion, have expressed themselves to film executives in terms far more specific than general, and the hulabaloo is creating an inside storm that threatens to raise plenty of havoc unless the producing executives on the Coast listen to the mandates of their home office executives and trim expense sheets until it hurts. The bankers' ultimatum is understood to be the inside reason for the sudden westward trek of a number of important executives. Nicholas M. Schenck and J. Robert Rubin of M-G-M leave for Hollywood on Tuesday. Felix F. Feist, general sales manager of the company, is already on the ground. Joe Brandt of Columbia leaves today ; Hiram S. Brown and Joseph P. Kennedy tomorrow. Schenck's trip is described as "the usual annual journey" at his office, but the purpose, dictated by those who hold the financial strings, is expected to concern itself with cost sheets. It has been reported in recent weeks that the M-G-M studio expense ledger has been running far beyond its scheduled pace. Insofar as Columbia is concerned, the same situation prevails. Brandt and Jack Cohn are reported to have been advised by their bankers that Harry Cohn is spending too much money on pictures for value received. Columbia's new policy of bigger pictures, adopted with this season's line-up, is understood to have shot negative costs up from an average of $60,000 a picture to $125,000. Specials like "Rain or Shine," "Dirigible" cost more. Paramount is the only organization on record, so the inside story goes, which beat the bankers to the post on the matter of costs vs. quality. An advance tip that something of import was brewing in Wall Street, it is reported, reached Adolph Zukor before the actual tip arrived. As a result, B. P. Schulberg was brought East and told that slashes will have to be made immediately. He is expected to leave for Hollywood shortly with definite instructions along these lines. (Continued on Page 26) Many angles on showmanship and equipment of vital interest to all exhibitors are discussed in The Showman, beginning page 59 in this issue