Exhibitors Herald and Moving Picture World (Oct-Dec 1928)

October 20. 1928 EXHIBITORS HERALD and MOVING PICTURE WORLD 27 Titles Registered At Washington Following are the titles of pictures registered this last week at Washington : 25674 25675 25676 25677 25678 2S679 25680 25681 25682 25683 25684 25685 25686 25687 25688 25689 25690 25691 25692 25693 25694 25695 25696 25697 25698 25699 25700 25701 25702 25703 25704 25705 THE MYSTERY RIDER (Serial)....Universal THE MYSTERY RIDER (Serial)....Universal THE MYSTERY RIDER (Serial).._Universal THE KID'S CLEVER. Universal THE WAX FIGURES _ Universal THE RAG DOLL Universal TARZAN THE MIGHTY Universal THE HAUNTED HOUSE —First National (Open) THE WHITE FACE FOOL —Fox-Case FORBIDDEN LOVE _ Pathe Exchange HUBBY'S LATEST ALIBI. ...Pa the Exchange THE EAGLE OF THE NIGHT (Serial) Pathe Exchange THE EAGLE OF THE NIGHT (Serial) — Pathe Exchange THE EAGLE OF THE NIGHT (Serial) Pathe Exchange THE POWER OF SILENCE .Tiffany-Stahl THE NAUGHTY DUCHESS. .. Tiffany-Stahl THE CHARGE OF THE GAUf HOS....F B O THE SWEET BUY AND BUY ..Standard Cinema Corp. THE SINNERS' PARADE Columbia THE SOUTH POLE FLIGHT Universal THE DEATH'S HEAD Universal THE WEDDING MARCH Paramount LOOSE CHANGE —Paramount RUTH IS STRANGER THAN FICTION Standard Cinema Corp. SALLY'S SHOULDERS FBO A JIMJAM JANITOR Pathe EAGLE OF THE NIGHT (Serial) Pathe DO YOUR DUTY First National COMPANIONATE MARRIAGE — — First National LAND OF THE SILVER FOX ... Warner Bros. WHILE THE CITY SLEEPS M G M First National, Stanley Merge With Warners; 200 Million Deal F N to Go Into Production of Sound Pictures on Extensive Scale; Vitaphone Corporation Part of Combine; Fox Stock Purchases May Prove Strong Factor By PETER VISCHER NEW YORK, Otober 16. — In effecting a merger between Warner Brothers, Vitaphone, the Stanley Company of America and First National, the Warners made their position in the industry this week more impregnable than ever. Announcement of the deal which amounts to a S200.000.000 combination, was made here with commendable satisfaction and pride by Harry M. Warner and Irving D. Rossheim. Personnels of Companies to Be Held Intact According to the heads of these vast enterprises, linked together, it is said, in order to bring about greater solidarity for all concerned, the personnel of the various organizations involved will be kept intact. Publixto Withdraw 6 Far West Houses By January, Report (Special to the HeraldWorld) HOLLYWOOD, Oct. 16.— Reports that Publix will withdraw two houses here and four in San Francisco, now operated by West Coast Theatres, today received credence. Negotiations are under way, it has been authoritatively stated, and the switch will be made January 1, unless unforeseen developments arise. Two theatres also included in the deal are in Portland and Seattle. Houses here affected are the Million Dollar and the Metropolitan. West Coast closed the Million Dollar a few months ago when it continued a long line in the red. The other house has lost money steadily of late, despite an expensive effort to maintain a good stage show policy. The Met has control of these two houses as well as the San Francisco houses, since more than two years ago, when it was reported that Publix became dissatisfied with the theatres. The houses in San Francisco are the Imperial, Granada, St. Francis and California. The change affects Fanchon and Marco to some extent in that they will vacate the Portland and Seattle houses. Publix shows have been on the bill in San Francisco theatres during the past two years. West Coast has endeavored to replace Publix shows, but no agreement could be reached. Ralph E. Crabill becomes general manager of the offices which Publix will operate in the Los Angeles territory. Business throughout California has been under normal, and these West Coast houses are said to have felt the depression heavily. Call Films Obscene (Special to the Herald-World) SAN FRANCISCO, Oct. 16.— A hunt of four months on the part of local police for an exhibitor of obscene moving pictures has resulted in the arrest of Frank Smith, 140 Tones Street, this city. Five reels of film were seized. The full report of the merger, of intense interest to the entire industry, was as follows. Rentals $10,000,000 Yearly "The Stanley Company, which has a chain of theatres blanketing the most important cities in the East, will be assured of a continuous supply of Vitaphone Talking Pictures from Warner Brothers and from First National Pictures. "Stanley Company has an annual purchasing power of $10,000,000 for film rentals which is regarded as being of considerable value to Warner Brothers in the rental of their pictures to other theatre circuits controlled by rival producer-distributor-exhibitor organizations. "First National will go into the production of talking pictures on an extensive scale aided by the facilities and equipment of Warner Brothers, whose pioneer work for the past two and a half years with Vitaphone has been largely responsible for the success of talking pictures to date. The reciprocal exchange of stars, studios, and technical facilities between Warner Bros, and First National is expected materially to increase the artistic values of the output of each company. "Theatre circuits, controlled by the stockholders of First National, who have sold their stock for cash to Warner Brothers, will in addition receive franchises from Warner Brothers, Vitaphone and First National for periods of from ten to twenty-five years. This assures these companies of an outlet for their combined product in key centers of Illinois, through the Balaban & Katz circuit: Missouri, through Skouras Bros.; Michigan, through Kunsky Theatres; Minnesota and the Dakotas, through Finkelstein & Ruben; Nebraska and Iowa, through A. H. Blank; and the major portion of the South through Saenger Enterprises. "In addition to the new revenues accruing to Warner Brothers from these theatre circuits and from the terms of their deal with Stanley and First National, its income will be further enhanced by royalties received through the Western Electric Company. These royalties are based upon licenses granted by Western Electric to Paramount Famous Lasky, Metro-Goldwyn-Mayer, United Artists, Fox Films, Universal Pictures, Columbia Pictures, Christie comedies and Hal Roach Comedies for the use of Western Electric apparatus of which Vitaphone is the outstanding medium, in the success of Talking Pictures. „ , "The new Board of Directors of Warner Brothers will consist of H. M. Warner, Major Albert Warner and J. L. Warner; Henry A. Rudkin, Irving D. Rossheim, Simon Fabian, Moe Mark, Morris Wolf and Waddill Catchings. Stock Exchangeable "The merger terms, as outlined in a letter mailed to stockholders of the Stanley Company, provide that each 100 shares of stock of that company will be exchangeable for 80 shares of convertible preferred stock of Warner Brothers, 8 shares of Warner Brothers Common stock, and $1,150, in cash. The Warner Brothers preferred stock, entitled to a cumulative dividend of $2.20 a share annually to September 1, 1930, and thereafter to a cumulative dividend of $3.85 a share, will be convertible into common stock of the company up to September 1, 1930, in the ratio of 55/125th share of common for each share of preferred. The first dividend to be paid will be for the six month period ending February 28, 1929. "The letter to stockholders of the Stanley Company calls for deposit of the stock with the New York Trust Company prior to October 25, 1928, by stockholders desiring to make the exchange. Action on the deal will be taken by the Warner Brothers stockholders at their annual meeting." Fox Power Looms The amalgamation of First National with the powerful Warner organization brought about a particularly interesting situation when it was learned that William Fox had obtained enough shares of First National stock to make him a factor in the deal. Just how much stock Fox has could not be learned with authority. Fox Holds 34 Per Cent It is generally understood that he obtained an additional 6 per cent to the 28 per cent that came into his hands when he acquired the West Coast Theatres. Possessed with 34 per cent of First National holdings. Fox forced himself into a position where he might have to be consulted by the Warners in the consummation of their plans. Precedent Seen as Chicago House Plays Sound Film on Non-Synchronous Device What is looked upon as a case in precedence is the contract entered into between United Artists and Clarence E. Beck of the Castle theatre, Chicago, for the showing of the synchronized version of the United Artists picture, "Tempest," on Dramaphone, a non-synchronous phonographic device. The picture is to be shown at the Castle beginning October 27 using the synchronized records recorded on the disc system of synchronization. . According to the United Artists officials in Chicago the contract was made with Beck after sanction from the home office. If this action on the part of United Artists becomes a general policy throughout all its exchanges, it will result in a much greater distribution of synchronized pictures for the hundreds of exhibitors who now have non-synchronous devices or who will install such devices rather than wait for such time as delivery and installation can be made on the regular synchronized devices. It was learned that the United Artists exchange was the only exchange that would supply Beck with the synchronized versions of pictures, although he attempted to book them.