Boxoffice (Apr-Jun 1939)

Three Assemble to See One Off — — Metropolitan Photos Family scene in the office of Eugene Picker, Loew executive, on the eve of his sailing aboard the Iroquois for a short southern cruise. This is the Picker family. Left to right, Leonard S., attorney at Columbia; Sidney I., assistant to Herman Giuckman, New York franchise holder for Republic; then Gene and finally, Arnold M., assistant to Joseph A. McConville, Columbia’s foreign sales manager. The portrait is that of the late David Picker, father of the boys. His theatres, some years ago, were sold to Loew’s. Charge Fox Receiver With Mismanagement New York — Charging that Milton C. Weisman, receiver of Fox Theatres, had managed the estate of the company in a “negligent, grossly improvident and careless manner, wasting assets and preferring certain creditors above others,” the Stockholders’ Protective Committee, through Gustavus A. Rogers, chairman, and the Trust Company of Georgia acting for creditors, filed demands in the federal court asking for an accounting, and that until such time as that can be secured, that Weisman’s request for his discharge as receiver and an approval of his final account as receiver, be denied. Federal Judge John C. Knox, after listening to both sides, sent the case to a special master to determine. Among individual charges made by the stockholders were that David Stoneman was paid $20,000 on an unfounded claim of $100,000, or a 20 per cent dividend as against an eight per cent dividend paid other creditors. Also that William K. Bean was paid $15,000 on an unfounded claim, and Miriam Rogers was paid $165,000 on a claim, the amount being equal to 40 per cent of her claim. It was also asserted that Weisman had received monies from Fox Metropolitan Playhouses, for which he is asked to account and that he made a profit for himself from the management of Fox Theatres, which is not allowed by law. A return of the money he made as a profit is asked. The Fox receiver is also accused of having employed his own law firm, Weisman, Quinn, Allen and Spett as attorneys for Fox Metropolitan Playhouses, and made a profit by so doing. Lastly, the stockhold ers allege that Weisman, acting for United Artists Theatre Circuit, rather than for Fox Theatres, caused the latter company to fail to pick up an option on 50 per cent of the Class “A” stock of Fox Metropolitan Playhouses, which included some 141,222 shares, and thus lost a very valuable asset for Fox Theatres. The general creditors, through the Georgia Trust Co., asserted the transfer of assets of Fox Theatres to the two trustees, Weisman and Kenneth Steinreich, through Weisman’s plan of liquidation, approved by Judge Martin T. Manton, January 30. is unauthorized by law, and not binding on the creditors who did not consent to it. It is asserted the allowances to “VVeisman and his counsel were excessive and made without notice to creditors and that Weisman’s receivership conduct resulted in a loss to the company, and was unduly prolonged. An attack was made on various deals, which include those made with Fox Film Cor p., General Theatres Equipment, Daniel O. Hastings, as receiver of General Theatres Equipment, National Theatre Supply Co., Chase National Bank of New York, Chase Securities Co., and individuals including Harry Arthur, Donald S. Riker, Harley Clarke, Otto E. Koegel, and William C. Michel. It is charged all of these deals were unauthorized by law and resulted in inadequate returns to the estate, and were made without notice to creditors. Other attacked deals are those with Fox Movietone News, the Chippewa Theatre claim, the sale of $265,000 in promissory notes held by Fox Theatres to the New Broad Company for $55,000, the retention by the Marcus Loew Booking Agency of monies belonging to Fox Theatres, and lastly, the sale of the capital stock of the subsidiary owning the lease on the Academy of Music, New York. The charge is made here that no open bids were permitted at this sale. Kent Denies Breach With Hoyts' Circuit New York — Reports of a rift between 20th Century-Fox and Charles Munro of the Hoyts’ circuit are denied by Sidney R. Kent who told Boxoffice, prior to his departure for Rio, “We made a contract with Hoyts’ and we are perfectly satisfied with it.” Further expansion by Hoyts’, now the largest circuit in Australia, is contemplated. According to Kent, the purpose of Munro’s visit is to discuss a policy of expansion covering the construction of new theatres. Questioned on board the Brazil an hour before sailing, Kent spoke freely on the Australian situation. He said there was no basis to the version that 20th-Fox was critical of Munro’s operating policy. “It is understood,” Kent was asked, “your company’s main complaint was that its product wasn’t getting the proper playing time.” “That’s all wrong,” he replied. According to Kent, Munro’s trip is for the usual survey of product in this country. He said Munro will probably remain here for a month. Managers' Union Drive Tactics Stir ITOA New York — Harry Brandt, president of the ITOA, has called a special meeting of the organization for June 1 at the Edison to discuss the methods which the new theatre managers’ union is applying in trying to gain membership. In numerous instances, the union is reported to have complained to the state labor board on conditions purported to exist without first contacting independent circuits. Theatre operators claim they have a right to first be approached and heard on any complaints. Amalgamated Head Due For Product Parleys New York — Mike Moodabe, head of Amalgamated Theatres, Ltd., of New Zealand, arrives on the Mariposa June 12 in Los Angeles. He will head here immediately for product conferences with 20th Century-Fox executives. Twentieth-Fox has a substantial interest in the company. Not Quite Apparent What It Shows Hollywood — A director with a statistical turn of mind recently came up with more than he had bargained for. He discovered it takes 15 minutes longer to make-up a male than it does a feminine film star. Claudette Colbert needed only 14 minutes and 53 seconds for make-up purposes. Nat Pendleton, who plays a dumb detective in the film, required 31 minutes and 10 seconds. Could be a moral, could be. 22-B BOXOFFICE :: May 27, 1939