The Hollywood Reporter (Jan-Jun 1933)

n Page Four THg> N. L NATHANSON IN PARA. Former Canadian Head Becomes Gen, A/gr.; Brings Own Sales Head—Zukor StaysReceivers Make First Report New York. — It became known today that N. L. Nathanson, former head of the Famous Players-Canadian Corp., will become general manager of operations of Paramount in the very near .^UTure. This means the running of the organization, with Adolph Zukor continuing as president but with most of his time taken up as coreceiver for Paramount-Publix. It is also rumored on rather definite authority that Nathanson will bring in his own sales head and Broadway believes it is James R. Grainger, who is now on a vacation, with pay, from Fox while his contract is being adjusted. Receivers Report The first report of the Zukor-Hilles receiver combination was given out today. The highlights are; A recommendation that bankruptcy and liquidation of Paramount-Publix would be disastrous to all interests and that every effort should be made to continue the business that it may be held as a going concern, either to be sold under more favorable conditions or reorganized in a manner equitable to the various interests concerned. The receivers foresee the outgo of a large amount of money between now and August I ,as a result of which the corporation is faced with the problem of raising sufficient funds to tide the production activities over that period. They suggest that the matter of the Film Productions Corporation, the subsidiarywhich pledged the returns of 23 negatives to 13 banks, is of such a serious nature in its effect on the position of the general creditors that the matter should be submitted to the courts for determination. The receivers believe that the 13 banks concerned in the hypothecation of the negatives may not oppose a retransfer of those funds back to the account of Paramount-Publix in an effort to keep the Corporation going. (Once this happens, though, those monies will be used to the preference of the creditors of the Corporation.) Has Little Cash They report that the Corporation has guaranteed first mortgages and guaranteed rentals totaling $1 1,600,000 and state that the Corporation is in a position where it has only a relatively small amount of cash on hand and is without substantial sources of income. The balance sheet of the Corporation as of December 31 shows book assets of $150,349,000. The liabilities, other than capital stock or surplus, are $47,826,000. Among the ac counts receivable in the assets is one item of $456,000, represented by a claim against Fox Film, which is in controversy and may only be collected ' through litigation. Thrs item refers to the leasing of all Paramount theatres en the west coast to Fox. Millions To Subsidiaries Of the total assets, $120,870,000 represents advances to and investments in subsidiaries and affiliates. These include $20,000,000 in the Balaban and Katz Corporation; $1 ,750.000 in Dent Theatres Inc.. in Texas; $10,000,000 in Olympta Theatres Inc.. of New England; $15.00.000 in Publix Enterprises Inc.; $2.500,000 in Minnesota Amusement Company; $5,000,000 in Publix Northwest Theatres Inc.; $7,500,000 in Saenger Theatres Inc.; $17,000,000 in Famous Players-Canadian Corporation; $6,000,000 in Pencom Corporation, which holds the stock of Comerford-Publix Corporation and Comerford-Pubix Theatres Corporation Most of these companies are in receiverships and the Famous PlayersCanadian is the only one which showed a profit last year. Among the liabilities is the funded debt, consisting of two bond issues totalling $25,000,000 and bank indebtedness to the amount of $13,368,000. Inauguration To Keep The Newsreels Busy New York.— ^The newsreels will be extremely busy in Washington today rushing prints of the inauguration ceremonies to New York theatres. The proceedings will also be broadcast by MCM from its special trackless train. Major Distribs Talk Over Minnesota Suit New York. — Representatives of the major distributors met at the Hays office yesterday to discuss the antitrust suit brought against them by the Peoples Theatres in Minneapolis, which comes up for hearing soon. Creelman Back To Radio James A. Creelman has returned to the Radio writing staff to develop an original story idea for Merian C. Cooper, production head. Fox Postponed 3 To Save Cash, Says Kent New York. — The halting of production on three Fox pictures at the West Coast studio was to eliminate the necessity of further cash commitments at this time, according to S. R. Kent. He says the three have been postponed, not dropped Cowen Reported Off Black Beauty' Itw^as reported last night that Willi,^ft» j. Cowen, who has been directing ■^'Black Beauty" for Monogram, walked off the job yesterday afternoon after a difference of opinion with I. E. Chadwick, the producer, and that Chadwick is directing the picture himself. The company was on location near Sherwood Lake, and it is understood that Cowen, who went out in a studio car. walked to Ventura Boulevard and took a bus back to town. Warners Sign Holmes Brown Holmes has been signed to a term writing contract at Warners, effective June 1. after the shutdown. Holmes is now on a writing assignment at MCM. Bren and Orsatti made the deal. Baseball Clubs In Fracas Over Ruby The Pittsburgh Pirates, the Chicago White Sox and the New York Giants are in a row over Harry Ruby and it looks as if the matter will have to be settled by Judge Landis. Last winter Ruby jumped the Washington Senators and cast his lot with the Giants. Since that time and while under the insane influence of contributing to a Marx Brothers story for Paramount, he confirmed arrangements to work out with both the Sox and the Pirates when those two teams hit the coast. All three clubs are demanding his services, with the Giants favored for the time being until the squabble is settled. However, indications point to no happy medium and it now seems as if this great second baseman and pitcher lof 30 years ago) will have to work out with the Sox at Pasadena in the morning, give the Giants a crack m the early afternoon and then fly to Paso Robles for a fling with the Pirates before sundown DeLeon On 'Eagle* Walter De Leon is preparing added dialogue for'The Eagle and the Hawk" at Paramount. Picture Moratorium Rumored (Continued from Page I * and for some definite advice as to how the banks in this State would handle their affairs. It seems definite that something drastic must be done. In the first place, if the home offices in New York had sufficient money on hand to handle salary payments here for the next few weeks, (which they have not) the problem is how it would be shipped to California and paid out. It seems certain that banks here will, with the permission of the Legislature, pay not more than 1 0 per cent of deposits in cash, and perhaps will issue scrip or something else. But that would tie up the dough coming from New York, IF it was coming. But it's not coming, because 70 per cent of their rentals and percentages are rest ing in the vaults of institutions in some 26 states. During the present period it is understood that Hollywood requires better than $1,300,000 to pay off each week. It is also understood that that sum is in the hands of the home offices in New York to be sent for this coming Wednesday's payroll. But how to handle it if it is sent is a problem that the producers could not fathom yesterday. The condition is not more alarming than that which Hollywood is experiencing now with the deposits in local banks. It is temporary in both instances, and whatever money is denied at this moment, will certainly be paid when the col lections of the various companies are made available for them to use. The Hollywood Knickerbocker Hotel ] 71 4 North Ivar Avenue CLadstone 3171 Announces GREATLY REDUCED RENTALS ON A DAILY. WEEKLY OR MONTHLY BASIS CAFE POPULAR PRICES Daily Luncheon Dansants at 12:30 Noon