The Film Mercury (1926-27)

Page Two THE FILM MERCURY, FRIDAY, JULY 29, 1927 Hollywood, Calif. J Tamar j Lane THE HONEST BANK OFFICIALS 1 he revelations now being published concerning the Julian Oil scandal are doubly interesting because of the striking parallel they bear to experiences in the film business. Here we have Lewis and Bennett, two promoters so obviously crooked that anyone should have been able to detect their true characters after one or two meetings with them. Yet we find not only big business men, but prominent bank officials representing big institutions, placing implicit confidence in these two bunko men, throwing millions of dollars into their laps with little or no security. BANKERS TO BLAME After reading statements from the various individuals concerned, the conclusion must be drawn that the men who should come in for the most criticism and condemnation are the bank officials who played such a prominent part in this mess. Bank officials are in the habit of referring to themselves as “sound and conservative men.” Yet here we find them entering a questionable enterprise with reckless abandon. The testimony of certain witnesses also clearly indicates that many of those who have lost fortunes in the collapse of Julian Oil, would never have invested their money in the proposition if it had not been for the endorsement of these bankers. According to the sworn testimony of Adolph Ramish, the hankers who encouraged him to sink his money into Julian Oil were : Charles F. Stern, president of the Pacific Southwest T rust and Savings Bank. Motley Flint, vice-president of the Pacific Southwest. I. Linden Rouse, vice-president of the Pacific Southwest. John E. Barber, vice-presi dent of the First National Bank. APPROVED STOCK Testifying before the grand jury, Ramish stated that when he began to get worried over Julian affairs, promoter Lewis would tell him: “Go over to the Pacific Southwest Bank and they will tell you to buy, beg or steal Julian stock.” Ramish also testified that when he would speak of the matter to President Stern or Vice-presidents Flint and Rouse, that these bankers would assure him that “everything was in very good shape, perfectly safe.” Yet these are the same kind of bankers who refer to the motion picture business as risky and unsafe. LOANED MILLIONS ON PHONEY DEAL These Pacific Southwest officials found it very easy to loan millions to this preposterous Julian confidence game, lending their names and support in every conceivable manner. Yet at the very time they were doing this, how many small business men, seeking a small loan with which to carry on their business, were turned down by the Pacific Southwest hankers, because of “insufficient security” or some other meager excuse. These banking officials gladly loaned their millions and their support to the greatest bunko game ever perpetrated in this country, but what would their answer have been to some struggling widow that was trying to secure some money to save her home from being sold out? “Sorry, but banking rules do not allow us to loan money unless we are given sufficient security.” IF PRODUCERS WOULD TALK Film producers could also tell many sorry experiences that they have had with Los Angeles hankers. Oil promoters are not the only ones who have had to make liberal donations to local bankers to get favors from them. This same Motley Flint and his Pacific Southwest bunch have been party to many motion picture deals that would no doubt make highly explosive Place Ban on Group Buying New York — Booking combines are out. All national distributors who are members of the Hays organization have determined not to sell films to exhibitors banded together in buying combinations. The rapidity with which these pools have developed throughout the country and especially in the East has created an uneasiness in distributor quarters which first resulted in several meetings at the Hays’ office, and now in a definite policy. 1 wo combines are engaging the attention of sales managers at the moment. One is the Affiliated Theatrical Utilities Corp., which represents about 139 theatres in Lipper New York state, Western New York and Western Pennsylvania. 1 his is the group in which Nikitas Dipson and Fred Zimmerman are prime movers. Because of the rather formidable number of houses for which this unit is buying, distributors considered it to be worthy of quick attention. The second group is identified with Affiliated Theatrical Utilities Corp., but operates only in Ohio. This is the Associated Theatres of Ohio of which Charles L. Casanave is president. * * * Newcomer Given New Lead at Metro Studio James Murray, whose first screen role was in King Vidor’s production, “The Crowd,” has been selected by M-G-M for the leading male role in the screen version of the old stage melodrama, “In Old Kentucky.” reading if the truth were ever revealed. The ease with which these two slick promoters got millions for a phoney enterprise duplicated the situation in the film business, i.e., it is always easy to get plenty o? finances for a bunko proposition, but wheji the proposition is a sound, fair, enterprise promising only a reasonable amount of profit, even the bankers won’t loan money on it. German K ontingent May Be Raised Soon Berlin. — Special committees have been holding conferences here recently to determine ways and means of making the kontingent system more rigid. The German industry is alarmed at the flood of imported products for the 19271928 season, and is seeking to further protect their home industry. It is generally felt that the present one for one kontingent has failed to stem the tide of foreign-made productions. * * * Poland Objects to German Production Warsaw. — The Polish Government is evidently very annoyed with Germany in consequence of the exhibition of anti-Polish films in that country, and have retaliated by now prohibiting the import of all films produced by the Deulig, National and Eiko concerns. German pictures only form, approximately, ten per cent of the films shown in Poland, the majority being, of course, American films. T he prohibition will mean, however, the practical disappearance of German films in Poland. * * * Tiffany To Produce Several in England New York. — -Tiffany Productions intends to make several pictures in England under the supervision of Fred Bernhard, managing director for that country, who has left New York for London after conferring with M. H. Hoffman, vice-president of the organization. Before sailing Bernhard discussed with Hoffman a number of stories, plays and novels suitable for production in England. The casts to be used will include both American and English players. * * * Hope Hampton in Operetta New York — Hope Hampton, who has been making a series of color pictures in this country and Europe, will again desert the studio for the stage when she starts rehearsing in the operetta, “The Proud Princess,” July 28.