Independent Exhibitors Film Bulletin (Sep 1935 - Aug 1936)

WEDNESDAY, JULY 8, 1936 3 Metro, 20th-Fox Getting Together To Take Control of Gaumont-British CONFERENCES ON COAST EXPECTED TO RESULT IN DEAL BEFORE WEEK END By Hollywood Correspondent Hollywood , July 7. — The extended negotiations between 20th Century-Fox and Gaumont-British for acquisition by the American company of a controlling interest in the English outfit are expected to reach a conclusion before the end of the week. Reliable sources report that Loew's, Inc., parent company of Metro-Goldwyn-Mayer, will be associated with 20th Century in the deal. Joseph M. Schenck, chairman of the 20th Century board, is conferring here with Isidor Ostrer, president of G-B. A 49 percent interest in G-B was purchased by William Fox when he headed the company bearing his name. This was acquired by 20th Century-Fox. Repeated attempts were made by the American company to buy a controlling interest in its British affiliate, but the Ostrer brothers declined to drop their control. SQUEEZE . . . Through their minority interest, however, the 20th Century group has been able to tie up efforts of the Ostrers to recapitalize their company and, it is reported, recent stringency in financial affairs has forced them to reopen the negotiations. They have no choice but to sell out or buy out and their financial position makes the latter alternative impossible, according to reports. Gaumont-British is the leading amusement organization in England, controlling, in addition to its film production facilities, a large chain of movie theatres, legitimate theatres, restaurants, hotels, cafes, radio and television apparatus. Loew's is said to figure in the deal through the relationship of Joe Schenck to Nick, president of Loew's, and through the fact that the latter company does not relish being left out of a deal that involves so important a part of the fast-growing British film industry. Metro is understood to have demanded a slice of the deal. Alperson Signs Niblo To Make 8 Pix for G-N By Hollywood Correspondent Hollywood, July 7. — Edward L. Alperson, president of Grand National, here on product deals, has closed with Fred Niblo, director of many outstanding screen successes, to produce eight or more features for his company. Niblo is now lining up stories. Another deal with an important producer has been closed by Alperson, but his name cannot be disclosed at this time. $15,000 FUND AIM OF PHILA. INDE GROUP; WOODHULL AS B. MGR. PROGRESS REPORTED . . . The latest move in exhibitor organization affairs in the Phila. territory is definitely under way following an important meeting of leading independents at the Broadwood Hotel on Tuesday. While a somewhat vague statement issued by the group's leaders stated that "certain definite strides of progress have been made," these concrete facts were learned from several sources after the meeting was concluded: (1) A fund of between $10,000 and $15,000, with the latter figure as the final mark looked for, will be sought from a group of between 20 and 30 original organizers. This sum is to be replenished each year and will be more than ample to cover the yearly budget. (2) "Pete" Woodhull, prominent industry figure for many years, is virtually certain to be retained as business manager of the new body. (3) The organization will be strictly independent and will be composed of former members of both the I.E. P. A. and the M.P.T.O. STATEMENT . . . In the statement issued after Tuesday's confab, the group states, "The plan comprises the selection of an experienced exhibitor leader of national prominence and a substantial fund was immediately underwritten. Conferences have been held between the local independent group and 'Pete' Woodhull, for many years active in National organization. Both Charles Scgall, president of the Local organization, and 'Pete' Woodhull stated that negotiations at the moment were still in progress." Approximately twenty men were reported in attendance at the meeting, which was strictly private. PETTENGILL BILL TO BE INTRODUCED IN NEXT CONGRESS SPONSOR DETERMINED . . . Washington. — Determination of Congressman Samuel B. Pettengill, sponsor of the House anti-block booking bill, to follow up his efforts to bring about enactment of his measure at the next session of Congress, was expressed in a report, appearing in a post-session issue of the Congressional Record. "Important legislation seldom is enacted the first session it is introduced," Pettengill's report remarked. "The battle will go on." BILL DRASTICALLY CUT . . . The Pettengill measure, unlike Senator Neely's identical bill, which was reported as written by the full Senate Interstate Commerce Committee, won the approval of the House subcommittee only after being drastically emasculated by removal of the provision barring blind selling. For this reason the bill did not reach the House, largely because neither Representative Pettengill nor Allied, its principal sponsors, approved of the revision. The Pettengill report states that "a majority of the subcommittee felt that with block booking prohibited, so that exhibitors would not be compelled to buy films in a block before they were produced, the paragraph on blind selling could be omitted on the theory that exhibitors would then have an opportunity, in many instances, to see a preview of films before becoming bound to exhibit them. I did not favor the elimination of the blind selling feature" "I wish a better report could be made. However, the resistance to the bill was formidable," Pettengill stated. A. H. Giannini Named U.A. President, Chairman Hollywood, July 8. — Dr. A. H. Giannini, brother of A. P., head ot the Bank of America, was unanimously elected president and chairman of the board of United Artists here today. The selection was a surprise, Mary Pickford having been generally regarded as the likely choice, but she is reported to have declined the post.