Variety (Dec 1928)

Wednesday, December 5. 1928 P I C'TU R ES VARIETY 11 Par at New Top, 56; Uew Un^ Way.Goes to 6% Kdth Operator in KLO Couldn^t Hurdle 10 Percent Money and Nervous Outside Traders--Pathe Dips, but Holds Around it and 27—Keith Lost Million Tr<.ith and Paramount, the only , money and a drastie decline amon„' Keith ana i-arcti .„^„_ the big industrial leaders through- two 3tocks.:ln the amusement eroiip 1^.^^ jt looked like-bravado that have kept their feet on, the I ^^j^^^.gj^ ^j^jg g^^^ Is go closely eroiind and refused to.be stampedr k^jj^ it can do anything its sponsors ed. came into .their reward begin-| dictate. Yesterday the 134-135 level jiing yesterday. In early trading paramount touched a new top for ail time : at .56--(equivalent pf 168 for the old stock) in. enormous trading. Fox also climbed 4 to 101. Loew was abreast' getting up to 65%, its best since th.e stock divi- dend of 25 per cent was taken off. Loew dealings were not so big and Bize of transactions in smaller units. At the salme moment Keith at 42 and Radio-Keith-^Orpheum struck Its bottom since the balloon ascen- sion A\^ek before last. There wj^s a feeling; that the reported campaigr. for distribution had merely halted,, the sponsors being unwilling to take a chance on bidding up prices with money at 10 per qent for the third eeaslon and the outside ticker cro%yd leery over the loan rate and a brok- er's loan account that is beginning to look dow^n on the roof of tlie Woolworth. building. . _ Some people believe that , the K- K-0 campciign isn't over yet and there will be further demonstra- .tlons. Situations her-e Is confused. Short lines have been put up above 50. Around 42 there-is likely to be a good deal of bear profit taking. Al- so there is a chance that the cam- paign manager may make a bold stroke to run in shorts. In. any; event it looks as though this Keith deal is going: to have some tasjk irt put- ting its stock far up, for it does look like ah attractive Sale at high levels, since the bapkers have a ship load of stock—maybe two ship loads-^and shorts don't, have to ■worry- about paying dividends. Pathe Gold The Pathe thing seeitis to. have gone cold for the present: Running Pathe common up in tbe face of this market is a he-.man undertak 11119' 1110.1,1^01, «.3 €» ..N,... — _ .1 the year on Irtg. It looks like outside speculative ^ieaLd. tyar^Ti, .io niiif'irlv ■ oooliner. Lots of td„. was held fairly well. Time for con- verting the bid A stock Into the pew cominon expired last week. If any- body was asleep " at • the switch he gets $21 for it. Prediction is that an inspired bull drive may be under- taken now that the stock is all in one form whenever, or if ever, a market situation develops to permit a campaign. After that, it's any- body's guess. Meanwhile Warnei- stockholders met yesterday in: WH v mingtori to act on confirmation of the Stanley deal. They will meet again next week to hold an election Warners'Stanley Offer This brings up a curious sitlia tion.. Stanley pn the \yarner offer for conversion and cash, ought to hold on a basis of 43. for Stanley against iOO for Warner common. At Monday's price for .Warner, Stanley sold down to 42 instead of holdin-' to parity around 58. When the War ner offer was published Stanley jumped from a low In the 30's to a peak, of 69. Warner stockholders yesterday .approved the Stanley pur- chase Keith financial , statement was published during the thick of the push up, revealing a niet loss in the consQlidated income account of a little over $1,000,000 from Jan. 1 to August, 1928. That checked the rise for the times being, but it was re- sumed later. Idea was probably that that headache showing had to be gotten out of the way, and maybs the best time to do it was while a hot bull campaign was on. ; - if a stock zooms, outsiders, «ipd insiders, too, for that matter, are often blind to such trifles, as state- ments. Witness Canadian Marconi, that jumped from 6 to 28 while its net per share stood at 2 cents for the statement of Us Exhib Taxed $7,000 by Fibn Board for Breach Albany .(N. Y.) . Film Board o.f Trade has handed down a verdict •in the case brought before it by Metrb-aoldwyn-Mayer and Fox against. J. Beck, exhibitor of Lib- erty, N. "if. The exhib will ihiive to pay the plaintiffs $7,000 damages: Bccltwas charged with contract violation and of violating the copy- right law. He screened 10 of the M-G-M comedies and four Fo.x features; holding them over for ex- tra-days, aiid subsequently, exhib- ited on days hot permitted by bis exchange contract. Attorney Louis Nizer, represent- ing the plalntlfrs, cited the double violation. Board awarded M-G-M $5,000 damages and Fox $2,00.0.. Fear Death for Theatre Man Missing Since Nov. 13 Ponliao, Mit-li., I^cc. 4. Reward of'$1,000 Is being offered for the body of A. J. Klelst, Jr.. missing t^Ince Xov. 13. Klicst cauie- up from Miami, whore, he operated a s?took theatre, "and was cxpoolod to join friomL"; at C.relgliton. in the northern part of: the.^ ^^tato.^ ta. po hunting, it is feared that , he; lost the trail and died from oxposvu-e. Kleist is ratiHl a millionaire: from nropertv ih the downtown section and circuit 6f theatres whivh .lie leased several years apo ,to >A . s?- Butterfleld. At oive time 'he .was pi-esid^nt. of th^ MiHuK:trt l''>^'^'l"t- ors' Associatlbn. .;. GOLDSTEINS NOT SELLING Springfield, Mkss., Dec. 4. Ah emphatic denial G-B Theatres intends to dispose of its interests was made here by Nathan E. Gold stein, president. Instea;d of selling, It was announced that the Goldstein Brothers will build,. The Goldsteins haVe 21 theatres in Massachusetts, New York and Rhode Island. Bristolpbone Test Waterburi'. Cotin.. 'Dec. 4. A" test "screening of a sounded talker, "Manhattan Cocktail" (Par) Nvas hold at Danbury last week over the Bristolpbone eaulpment. Two plvtures (Ootham) are bem.u' prepared .for sound here. They arc -Times Square" and "The Rivor Woman.". . . ' -u^^n The Bristolpbone studios nn\o ■recruited a permanent orchestra of ai-ound 35 pieces. U MAY DECIDE TO HOLD ITS THEATRES ^•enotiatibns botweoTi Fox and rnivirsal for the pUri-Uase of over UHV I' h.uisos liy the former ar-i not iikciv to maUM'iali'/.o.into It trade,' aooordini? u> rnUersal otnc.ials. ■ It is reporli'd Louis M. Mct/gor, nowly in elKU->;o of ihoatros for U., with the approD.-ition of Ca« . Laemmle, is lu.t In favor of Uio.sule of ;he U chain with tbe. oxoo.iUion of a few houses whieb it had b<H'n aeeldod. .Vnlvorsal does hot want to : operate. . . ■ , I'ui-chase. of the Sehiae eirruit •b> ■Fox it is reported, hinKos upon aw 'agreeable arrang'^^f^t ..with Vni-, versal It is claimed that I niver- sarin addition to the /Jo per cent., interest In the ,St-hine houses also as an option to buy the circuit and that Fox would have to secure this option from Universal before hroceeding. ■ ' , .•. Latest reports are that executives haS^ decided that the. Universal chain of houses will be continued, with the elvnilnatvon of heavy los- ers, with Laemnvle intending further iheatre acqui.s.Ulbns. 4. the ADDING BIALOG TO 2 • Los Angeles, Dec. First National has turned comi)leted prints of "Weary River^ starring Richard Barthelmess and "■The Captive Woman" starring Mil- ton Sills over 'to the Warner Vita- phone studios where dialog And sound effects will be added. This will be Barthelmess' first attempt at adding dialog to pictures. DIALOG IN COMEDY SHORTS Los Arigeles. Dec -4. Smitty Comedies, Nos. 9 and 10 will carry one-quarter Photophone dialog; now being recorded at Pathe Culver City Studio. The company is following the unusual procedure of recording the dialog, which in each instance is the . flnal half reel, ^be- fore proceeding with the'silent first part.. Later the first three-quarters footage will be syhchronlzed/ for sound. PUBLIX'S SEASIDE ANNUAL Pvihlix held its annual meeting of homo ofiice exoculives at the Am-, bassador. Atlantic City, over the week-end, with Sam Kutz presuling. Gathering an annual affair, m- cludinp dii^lrlet managers, super- visors and other eastern executi\e8. Fox's "Grouch Bag". Los Angeles, Dec. 4. Fox :has ;,?:urchased "Tl^%^'7^^ Bag.'' an .original, story by Walla,'.e 'Smltli. . ' ,. It will he produced as an an-. talker. frenzy is quickly cooling. Lots of dabblers are in this market much higher .than Monday's levels and they are going around ma,king mo- tions with a rabbit's foot. Move in Paramount and Loew s •was more than overdue. Para- mount hasn't taken part in the ..re- cent upswing. In three months since the split up it had moved only from a low of 49 to a steady range be- tween 51 and 62. Same is true of Loew. It had gone in more than six months the conservative dis- tance from 50 to 60. With every- thing else sky rocketing,, these two standard issues were bpiind to do something sooner or later. Yester- day's iadvance of about each was In the face of high money and an Irregular market. If a real for- ward I swing . should come along about this time, they would be pret- ty sure to go considerably further. Radio Corporation of America was still wild yesterday, going from 377 to 397, back to 392, and then In a delirious-whirl to a new top of 410, Price movements here mean nothing When they catch a short they skin him, the Stock being a facsimile of Baldwin Locomotive, both tight dorners horse high and hog tite, es pecially hog.tite. „ Kadib-Keith published an offer to take up Orpheum and K-A-O stock still outstanding on the following basis: Radio-K-O Class stocK in ratie of three-for-one for K-A-_u preferred^ share" for share for K • k-O common; two R-K-O for one old Orpheum preferred and old_ or - pheum common share for share^ Old K-A-O preferred touched-a high of 160 last week. It was low at under 80 six months ago. Yesterday it was around 130, always keeping in ■ sure to go considerably further, it was arounu xu-. . .i^c _ ..Warner. Bros, did . the. expected, the_ parity ^^^h. the^^i^tii^ which Is to say the most unexpected, RKK, whicli is tne _new by moYlng from around 127 to 138 | symbol for ClasS ■ A Radio Keitn Monday, in -spite of 10 per cent. Orpheum. Summary for week ending Saturday, Dec 1: STOCK EXCHANGE r——1028 - High. Low. 45 20H 104 li 77 110% 51V5 . 160 Mm 34 i'7% 14^i C4i4 15 S4 eim 135 -139% 104 33% 27%. 101 114.^ If'l 27% •23 lo;^ 40% m% 75V4 4C% 72 10 •24% 5 471i 2 8% 3G% m» 22 5 17% 0 RB • W) no o«.H Sales.. ■ issue arid' r.il'c. .' 8.800 American Scat (3).;....... 8,000 Gonsol. Film ptU. ('2)....... 5,000" ISastman Kodak (8)...^..... 31,.KW tocw (3) V'-" .SOO 1)0. pCU (BVi) 162,700 Keith 6,400 DO. pfd. (7) 303,000 nadlo-K.-O. class A 40.000 Fox c1ji.«;b A (4)...... •• 10,100 Madison Square Garden: U) ..800 Metro-G.-M. pfd. (1.80)... SCO Motion Picture Cap........ ■ • • • ■''» HlKh. 38y4 2«'.^i 1%) C2% 102'/2 niw ICO . 21'-3 2.-.Vi 104 400 PararoountrFamouB-Lasky (3). 267.100 Pathe Exchanee 19,600 Pathe class A 42,100 Shubort (r>) •• ' 2,400 Stanley " 71,300 Warner Bros. ,. 7,r(00. I>t). ^ CURB 1,700 Balaban & Katz.. "^So, Ooff^^'Cont^T'iim^Entr?^ 85,100 Fox Theatres .... 600 View rights 2,400 Nat. Theatre Sup. • « • I ■ • • • 5-m 33'A 4t'.% 130 120% ft-J Low. 33 27 18-iy*. 61% 101% 40V* 12;! . 4ay4 <)i> 20 . 2514 13 52% 10% 25% .80 4r. 124% 12r.% ; Vaati 38 27 •I8n. •02% 101% 47% ll3-% 4« 07 2<>% 2r)Vt 14 2H% ^S2% 4ri. 128% 126 flUOOO 72.000 40,000 l.S3.(tOO 77,^^00 2.3.000 BONDS Keith B'3. *4ri,. Lioew (I's, .'41. ."• ■ Do. ex-warrants rathe 7's, • -i; ••-.^i" Par.-Fami)U.'--Ij.isky 6 8. 4f . .Shubert 6's 2i> 2ft'.-J 9'.., 114% 10O-7ii 02'i Annual Publicity as a matter of .^^cord ^nd ... the directory way arrives with Variety s yearly Anniversary Number. This time it's the 23rd issue of that number, , and out during December. Tust now the Publicity chance Js in selling something. That means from produceT to actor, and all before or after. The Producers may sell plays or titles, now in demattd for talking pietures. Almost eyeiT one else in the slipw business may sell serviee. While product in stage, screen or canned form is always in demand wherever there is a theatre. Whether individual, manager, producer, agent or product, make Variety your universal sales- man-an unequaled press agent and an unex- celled exploiter You can get it all in Variety's 23rd Anniver- sary Number. No change in rates. • PrlMk'ge to convert Into new Etook expired last week.