The Film Daily (1931)

. THE buesday, January 6, 1931 m ■%zm PAILY OFFERED FOR PATHE (Continued from Page 1) oked much, excitable discussion, attorney Joseph B. Kaufman, one f the leaders of the minority stockolders, urged that the meeting reess for three months and later reuced the proposed recess period but ne matter never reached the voting tage. The chairman declined to ut the subject to vote. Conn said he and his associates 'ould buy Pathe on the same basis s the RKO deal and offered to put p $25,000 to bind the agreement. Je said a Pathe official would head he new organization provided the lie was made. i Sometime ago Harley L. Clarke lade an offer to take over the Pathe Tewsreel, but it is understood he '■as not otherwise interested in 'athe. , at'I Screen Buys Into Famous Artists of Air (Continued from Page 1) Dmmercial spot broadcasting. Edie Dowling remains as president of famous Artists of the Air, which is iso making programs for exploit ictures. A series of six 15-minute Dmmercial programs, using such :ars as Eddie Cantor and Helen jlane, is being made. 50,000 Under Clarke Banner More than 50,000 persons are employed under the banner of Harley L. Clarke, this figure taking in the Fox companies, General Theaters Equipment Corp., and the various foreign and domestic offices and affiliations. Pathe-RKO Deal Is Ratified; Minority Will Fight Merger (Continued from Page 1) made preliminary plans for obtaining an injunction to prevent consummation of the merger. Papers in the action will be served sometime this week. The main session was generally hectic and frequently out of control. The initial skirmish occurred when the gathering, which was attended by about 250, took up the matter of selecting a chairman. Criticism of the deal and its sponsors was thrown into the subsequent discussion and eventually Lewis Innerarity took the chair. The manner in which the Pathe management is alleged to have secured proxies next drew fire. Charges were made that because some of the proxies weref obtained on Sunday they were invalid. Attorney Joseph B. Kaufman asked for a list of Pathe stockholders and their holdings and this precipitated more commotion. Next, the discussion swung to the matter of selecting inspectors to examine the lists and again there was plenty of sharp comments provided. Eventually Joseph P. Kennedy, whose whereabouts had been the subject of considerable questioning, entered the session and agreed to answer questions concerning the deal, He verified statements that the Pathe properties are to go to RKO for $4,630,789. In reply to a query he said that he estimated the value of the Du Pont property at between $4,0001000 and $5,000,000 and that the deal gave Constance Bennett, Ann Harding and Helen Twelvetrees to RKO. In explaining the decline of Pathe News as a revenue-producer, Kennedy declared that Fox spent between $4,000,000 and $6,000,000 in converting its reel from silent to sound. Only $40,000 was spent on the Pathe Newsreel conversion, he said, owing to lack of available funds. The Pathe reel, .which formerly grossed between $45,000 and $48,000, is now grossing under $30,000, asserted Kennedy. Jacob Conn, Providence exhibitor, put the value of Pathe at $50,000,000 and generally assailed the deal. Various speakers, joining in the excitement, alleged, in substance, that J. P. KENNEDY SAYS DEAL OPERATIVE IN 20 DAYS (Continued from Page 1) be accomplished in between four and six months, he stated. Kennedy expects that RKO will form a separate corporation to handle assets acquired from Pathe. In connection with the deal, he said, Pathe is now making four features with RKO money. Pathe has so far made 11, in addition to these four, on its current program. Announcement was made of the following vote, in detail, on the deal: for, 6,613, preferred; 132,761, Class A; 662,232, common; against: 19 preferred; 1,210, Class A; 2,062, common. "something was being put over." One questioner asked Kennedy if it were true that he made $18,000,000 on the deal in which FBO was absorbed by RKO. Kennedy denied the statement. Kennedy was then asked if he was going to make any money, directly or indirectly, from the proposed Pathe-RKO merger, and he also denied this. At the minority stockholders' meeting the following committee was appointed to handle the matter of taking action to stop carrying out of the deal: Attorney Joseph B. Kaufman, Attorney Robert B. Levine, Jacob Conn and Attorney Joseph W. Ress of Providence. THE MOTION PICTURE SENSATION OF 1931!