Variety (Dec 1929)

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Wednesday/ December 11, 1929 f I C T U RES VARIETY FOX'S OPERATING TRIO FOR TRADE Korwklk, Conn., Dec. 10. fhls town Is so lull of B-10;cents stores thelp- local ihanagrers are re- eorting to''^e methods' of show- men to attract business^ Catherine Sherwood, 18, Ideal girl, dived Into the ice-filled Norwalk river on a daring bet. Thfe manager of Woolworth's whet-e she was em- ployed fired her, declaring' her Con- duct was ,unbecoming ah employee. Manager of McLellan's 5-10, next door to Wool worth's, hired her. She •had received widespread publicity for her feat. G. A. Garaher, . the girl's new manager, stood her on a platform in the middle of the tin^ i-ware and ornaments department and piaced large sighs on the front of the store heralding the public appearance of the "Pluckiest Girl in Norwalk." The crowds were great in the store. Later the girl was engaged to appear in Warners Palace theatre here for a week, three perfomancea dally. A skit was written for her and she is appearihg"by special ar- rangment with McLellan's Five and Teh Cent Store." MORE 1-REELERS THAN 2 FOR NEW SEASON Likelihood that - :s than 100 two- reel comedy talkers will be made for the coming season ('30-'31) is strong. Result of the prevailing high production costs of this, prod- u .. :...coi.ii,arlso:. with the Increase In rentals over sllient two-reel stuff >nrhich, it is claimed has been pro- portionately small. ' Advance indications, however, point,to an increase in. the produc- tion pf one reel novelty material. With two-reelers in dialog lifted out of the forrner cheap slapstick class by necessity, production over- head has risen to the point Where many are costing as high as $50, 000, and some higher. One two reeler nicked its producers $76,000, a figure for \;'hich several silent .•^wb-reelers could have been made brie of Christies featured players, formA-ly in full length-pictures, de- manded $10,000 for two two-reelers, but, of course,, was turned down. • In the two-reel group Roach is turning out more product this year than any, this program calliiig.for 44, and 3? of these have already been completed. Christies has 24 scheduled for current season re lease and Sennett has 30 of which 13 remain to be made. Radio has 33 .two-reel comedies on its current program and six two-reel dramatic playlets. Trade Comin, Asks for More Power in Par Case Washington, Dec. 10. Federal Trade Commission, with proceedings against"Paramount still hunting flre after more than six 7ear?. asks Congress for additional IpOwers in its annual report to that body. One request is to permit the com talsslon to subpoena witness and compel the production of books and papers. Increased appropriation to cover court proceedings is also in- cluded. This gives color to the previous feport that the massive record of the Paramount case could not be printed for. the forthcoming court trial due to the lack of funds to -hay.e..that^record-set-in-type.----= SHEEHAIT lEAVUlG XMAS Winnie Slieehan will stay in New Tork until around Christmas. He Will then return to Hollywood. Mayer • in Washington Washington, Dec. 10. • Louis B. Mayer reached the capi- tal yesterday, remaining o.ver until tomoiTow (Wednesday) morning. Earfier Drop Than Usual Annual pre-Christmas slap appears to have descended upon the theatres earlier than uisual this year. Executives of . different chains estimate that the total gross for last week was 15 to 20% off. Many houses noted the slump Immediately .after Thanksgiving. ONFASSABUSE Under cover survey of all Publix houses throughout the country is now being made with a view to slic- ing the pass privilege, said to have become too abusive. Approximately 500,000 free customers are. esti- mated to be sitting in by ahd on this , chain. Publix chiefs aver this number is at least 40% more than it should be, Survey lias been going on for three montiis by .order of Sam Katz, and is being conducted personally by Sam Dembow and Dave Chatkin. Particular concentration is being made on New York. Managers are being asked to make up a new pass list for ap proval, and Jt is lilcely that a 10 cent tax will be assessed on each pasis with the money to be placed into a newly created fund. Los Angeles, Dec. 10. Fox theatre cashiers on the Coast are going to be'armed with ticket punches after Jan. 1. New policy will prevent passes being used more than once a week. Special passes will be personally countersigned by both H. B. Frank- lin, and Hpward Sheehan. WB AFTER 30 SITES; POBIIX ALSO SCOUTINC Los Angeles, Dec. 10. Following the announcement by Fox that it will further expand along the coast, Warners has had men in the field disposing of WB franchises throughout western ter- ritory. Warner purpose Is to in- va.de all territory in which Fox Coast operatesi If it cannot dis- pose of franchises, WB will build Joseph Toplitzky has been com- missioned by Warners to secure sites for 30 theatres In key cities throughout the country. Due to stock market conditions he has not beeii active of late, but contemplates having these spots picked out by Feb. 1. Toplitzky has two men out seek ing sites for houses to run frorii 1,800 to 4,000 capacity. Herman Wobber, western rep for Publix, accompanied by Ralph Crabill, of the home office, and Charlea Kurtzman, San Francisco district manager, is also making a survey of the Coast looking for building sites. .Publix plans to expand its hold- ings presently confined in California to Los Angeles and San Francisco. Pathe Bankers Put Okay On Kennedy and Derr Hollywood, Dec. 10. Bankers behind Pathe have given Joseph P. Kennedy full authority over. production and have also okayed-E._B._Derr,yicft-lM;eMd,ent,,_aa, functioning head of production. It is understood that Laura Hope Crews, veteran legit actress, will be retained by Pathe as a production advisor. Edmun4 Goulding is ex pected to transfer to Radio, from which firm he has an offer to write and direct. E. B. DeiT arrived here yes- terday (Monday) • and, after look ing things over, will take charge of production Jan. 1.' Open Entraiic^ of American Telegraph and Telephone Company Into Show Busi- ness—Three Trustees^ In- cluding William Fox, Act- ing as Financiers-—No Changes in Personnel - DIVIDED DIRECTION ie Bodies Near; Joint Meeting M N. Y. Yesteri^^ Winfjeld R, Sheehan, Courtlandt Smith and James R> Grainger are the official committe* of operators for the Fox show properties, pro- ductiom and theatre. They are act- ing in .operation only. The other Fox committee of three^ as announced, are in the capacity of trustees un- der a five-year agreement entered into with them by William Fox, who is one of the committee. His as- sociates are John E. Otterson, pres- ident of E. R. P. I., the theatre yvire subsidiary of Western Electric, and Harry L. Stuart «f Halsey, Stuart and Company, downtown bankers. Each of-the respective commit' tees is said to hold one vote apiece, on matters of policy appertaining to the operating or financing of the combined William Fox business. Reports of the Immediate disposi- tion of Fox's control of Ltoew's, Inc., to W. R. Hearst a.nd Louis B. Mayer or other interests are reported to be without foundation. Up to yesterday, from the same source, no decision had been reached by the operating commlt> tee as. to the advisability of a gen^ eral theatre operator for all of the Fox houses. An estimate of current theatres now under Fox control all over the U» S., without foreign pos- jsessions, Is 1,000. Nor are any changes contemplated at present in the Fox entire organization. The reorganization of Fox brings American Telephone and Telegrraph Company openly Into the picture In- dustry as a direct money investor for the first tlndct. Its Interest Is not alone expressed by the ERPI president being: a Fox trustee, it Is stated. That AT&T has a money investment now In Fox beyond what the Western Electric and Its sub- sidiaries, may represent In films seems a fixed certainty with many Of the picture men. i Favorable Reaction Reaction on Broadway last week when it was announced William Fox had trusteed and reorganized his mammoth business was that the move had been sensibly done, re- gardless of • the financing Jam Mr. Fox found himself unavoidably In through current and stock market conditions. With the. Fox growth reaching a magnitude unexcelled by any other company In tiie show trade, William Fox was still con- tinuing his sole one-man direction, as he had btsen doing ever since starting his first small theatre 25 years ago. That Mr. Fox; realized the day had come when divided responsibility was necessary is believed to have arrived with his very serious acci- dent ladt summer, one of a series of "breaks" against what had been a.carefully laid out plan of merging and financing his various Interests. Another was the refusal of the De- partment of Justice to sanction the merge Of Loew's with his own concern, a serious impediment to the Fox general plan. These acted against-the" consummation of . Mr." Fox's aims and the stock market bust later affected him Several,ways principally in killing oft his pro- jected idea of selling Fox Thea- tres stock to the public througli ex- planatory short talkers in the Fox houses all over the country. On top of all of the other bad breaks Mr. Fox had to endure, a long list of short term notes com (Continued on page 12) 3-WAYW.C. THEATRE B|)ILDING WAR NOW? .Los Angeles, Dec. 10. It commences to look as if a three-way theatre building bat- tle Is due to br^ak upon this coast within the hear future,, if all of the chains live up to re- ports. . liatest is that Publix execs will shortly come westward to look over a number of sites said, to have been assembled in. different coast cities. Publix expects to build upon them. Warner Brothers has vir- tually announced its theatre expansion for this city. Harold B. Frariklln,'f or Pox, entrenched out here, has stated he will combat any eastern invasion by opposition building in the invader's territory. tSGOn MAKING FILM INDUSTRY Washington, Dec. 10. Picture industry's reaction to the suits against Fox and Warners by the Department of Justice was the principal concern of that depart ment and ofllclal Washington in general the past week. Justice ofllcials would aay noth ing. Administration leaders re fused to. answer questions as to why the picture Industry was picked on at this time, particularly with the Wall Street bust making It toiugh enough. Minority leaders In Con gross, however, were not so reticent. They see politics and plenty. But that isn't, helping Fox or the Warners. . One thing is generally conceded by "friehd" and "foe"—that the suits cannot be laughed at; that the gov .ernment has started something it is going to finish, and, though many reports are to the contrary, the suit is a serious proposition holding up the stock in ciuestion possibly and leaving the final disposition of the situation in the hands of the courts There will be no ^'outs" except that which a court approves; Front page predominance of the Fox financial dealings, and appoint- ment of trustees to run the Fox enterprises with him, fouiid even those legislators openly out to bring about' an investigation, ex- pressing criticism pf governmental action at such a time. As to Fox stockholders demand ing representation in the trustee ship, Depalrtmeht of Justice ofl[lcia}s expressed no interest. Nor were these officials interested in who ac "tqally held the control of Fox en terprlses/ Only answer was that the suit was there and that it went with the stock and the control until finally disposed of. "The Example" Messrs. P'Brien; Hardy and Amen, of the department, are getting the case in readiness and preparing to make the picture industry an "ex ample" of the administration's de- clared policy of making it tough for mergers, following the President's declaration . that: "existing laws would be enforced." That the picture industry is to be the referred to "example" Is now unquestioned here as no other moye has. been made against any other industry and no word Is forthcohi Ing of any isuch contemplated ac- tion at this time. However, the question still stick ing here Is—why? Guesses are for the publicity and the evident tern 1 per of Congress. These two rciusons Prior to the get together of repre- sentatives of the two surviving na- tional indie exhib organizations' at the Unioni League, Club yesterdaiy (Tuesday) afternoon, - there were many predictions from interested parties as to the outcome. Dissolution of the Allied States (Abram Myers group) and the Motion Picture. Theatre Owrters of America, and the combining of their members under one organization roof was seen in' the . Hays office, as realizing its first concrete move in a,, well planned and long beselged campaign by the. producer body. Allied was reported not so Inter-r ested . In the combo, which would divide indies into 32 units, or as many as there are Film Boards of Trade, as it was to; learii of. Para-» mount's intentions through Sidney Kent, In fact it was Kent who was host to the indie representatives with the Hays office, via Charll6 Pettljohn, sitting on the side lines ahd admitting no active particitia- tion in the aflEair. Just prior to the gathering it was reported Myers would not bfe pres- ent; thkt his chat with Kent In New York last week had provided him with a complete knowledge, of the program. As for any Combina- «on, Myers' attitude,^ it was gleaned^ was that thie dverturiss would hkv^. to be made by the MPTOA. ' ' Producer Interests, scoffed at any > possibility of Paramount makliip a, side aerreemient with Allied, . along the lines originally considered by Rtidio pictures. The latter started out with a blare but the, second party, Tiffaiiy, was the only com^ pany which went aftei? indie sig- natures on product franchlfies oh a wholesalis scale. . ' Obligations The franchises originally entered ' into, Haysites admitted, was pile of the biggest problems facing: the formation ot a. single national ^a<< ternlty for the indies. It was con- ceded all prior obligations must bo met, these Including the AVer year film buys. The Hays office has already threatened the withdrawal of af- filiated theatres' support by the first of the year should the indie outfits fail to reach an understand- ing:, This, would mean a terrifio setback, particularly to tho MPTOA, which has been reported dependent upon producer Aued since it opened the membership gates two ycfars ago. One of the benefits to the pro- . ducer interests by an Indie amal- gamation would -be the automatic offsetting of any serious reactfoli from the Federal Court's ruling against fllmdom's arbitration sys- tem. Producers are ready to retain Myers in a legal capacity ks general counsel with the new combo, it is .said. M. A. LIghtman, MPTOA headi, is quoted as desirous of btiving more time td concentrate oh hiji' own theatre chain; also, that the lessening of his present , duties would be welcomed. At the Union League e^atherlng the Myers 'delegation was. sched- » uled to ihclude Col. Cole, H. M. Richey, Al Steffes, M^ Hone and Nathan Tanilhs. The MPTOA r^p^ resentatives: Jack Miller, R. R., Biechele, Frank Walker, J. J. Har- wood, Dennis Hart and lilghtman. Hollywood, Dec. 10. Motion Picture Theatre Owners of southern California, not affiliated with MPTOA, have voted to join forces with Allied States. . They await _ offlc iar notification of^ ^Tjram'Tilyefs' ac'cWtance~of~tlieiir terms. iare potent but that doe.sn't satisfy some of the questioners. Marly see some development, dur- ing the months whori attempts were being made to head off the suits, that brought an angle Into the pro- (^(•eding.s which is the governing factor.