The Hollywood Reporter (Jan-Jun 1933)

Vol. XIII. No. 4. Price 10c. TODAYS FILM NEWS TODAY Tuesday. |anuary 24, 1933 MERGERS DRAW CECSER Economy Move In Deal Just Made by Fox and Educational; Receiver Rumors Flood SI, Y. •THE rumor mills of the industry are working overtime, both m Hollywood and in New York Almost anyone will tell you what is going to happen, giving details. The trouble is that none of these wise boys know anything about it. The only men who know — the bankers and the company heads — won't talk. The most persistent reports of the past few days in New York have had It that both RKO and Paramount will go into receiverships. They even name the day; RKO today and Paramount tomorrow. Perfiaps these reports are true, but there has been no verification. True or false, they hold more sensible ideas than some of the ottier rumors. One is that there will be a merger of Paramount and Warners, with all the Publix houses under control of the Stanley Company. Another is a merger of Fox and RKO, with Fox taking over all the RKO theatres and also all the picture-making and with RKO passing out of existence. What Fox would do with the RKO houses added to its own losing string is not explained, nor can anyone tell what advantage would be gained by putting the Publix houses in with the Warner chain. These reports even contain such details as the drawing of agreements between these merged groups for interchange of each other's product in the merged houses, but do not explain how joining weakness to weakness is going to make strength. • There are sti II some— wi th more sense than most — who contend that the Fox-Warner merger would be by far the most logical, because Fox could give the combination financing through its Chase affiliations, and Warners could give it the best and most economical production set-up in the business. The FoxEducational arrangement of yesterday, no matter what it is. looks like a move m the direction of economy and shows that the conferrees are getting together. The sooner they straighten out their squabbles, make their decisions and let the industry settle down to its real business of picturemaking, the better it is going to be for a'l concerned Marx Bros. Suing Para. For Profits New York. — The Four Marx Brothers are suing Paramount m Supreme Court, alleging that the company withheld $205.000 in additional profits on "Monkey Business," The Marxes claim that the profits on the picture were $805,000. while Paramount showed only $400.000. Cohen, Lubitsch, Lighton Leave N.Y. Emanuel Cohen. Paramount production chief, leaves New York today on his return trip to Hollywood. He is accompanied by Ernst Lubitsch, director, Louis Lighton. associate producer, and Hope Loring, writer. They arrive here Friday. Wellman Will Direct Next Ruth Chatterton William Wellman has been assigned to direct the next Ruth Chatterton picture for Warners, titled "Lily Turner." with George Brent in the leading masculine role. Frank McHugh has a featured role. New Term For Miller Paramount signed Seton I, Miller to a new long term contract yesterday. Miller's last writing assignment was "Murder in the Zoo." RECEIVERSHIP FOR RKO Ai^KED RY RO.XDHOLDER Bill Seiter To Direct Wheeler and Woolsey New York.— Alfred West, holder of $5000 worth of RKO six per cent gold bonds, filed suit in the US. District Court yesterday in behalf of himself and other bondholders similarly situated, asking for a receiver in equity for RadioKeith -Orpheum, West alleges that his bonds matured on January I and have not been paid The plaintiff states that he believes the company is solvent, but that it cannot meet its matured and maturing obligations. It is further argued that, if RKO fails to meet payments due February 1 on secured gold bonds, the default would permit the trustees of various other issues to demand the payment of the principal on the securities, amounting to $18,000,000 New York. — All signs yesterday pointed to the fact that the bankers and the motion picture heads are getting together on a settlement of the problems of the industry. The picture colony was teeming with rumors of consolidations and receiverships. the most persistent reports being that Halperins Trying To Get Pola Negri Victor and Edward Halpenn are negotiating for Pola Negri for the leading role in their first picture. "Supernatural," for Paramount release. They also are trying to borrow Ricardo Cortez for the masculine lead, although with three picture assignments lined in for Cortez. the chances are slim, Victor Halperin will direct. Batchelder Trustee For Met. Sound Studios H. K. Batchelder. secretary of the Motion Picture Credit Association, was appointed trustee in bankruptcy for the defunct Metropolitan Sound Studios yesterday by Federal )udge Turnbull. The Batchelder appointment was made in view of the large number of creditors represented by the M. P. Credit Association. Action in the matters of Al Christie, Charles Christie. Christie Film Company and Christie Realty Company was postponed until February 2. Warners Coming Back New York. — The Warner Brothers leave for the coast tomorrow in a special car. Others also leaving here tomorrow are Ely Culbertson and Dennis King, the former for RKO and the latter for Roach Poli May Resume Chain . New York. — S. Z. Poli is reported to be willing to take his chain of theatres back from Fox if he can get Hersche! Stuart to run it Will Hays Goes East Will Hays left for New York last night, after issuing another optimistic statement, calling for co-operation in the industry applications would be made for a receiver for RKO today and one for Paramount tomorrow. No banker nor picture executive would comment on either case. The one definite development of yesterday was that some sort of consolidation has been worked out for Fox and Educational. Whether Fox will absorb Educational or whet+ier the arrangement simply affects the distributing machinery of the two companies, throwing this into one set of exchanges for economy's sake, canrK>t be stated definitely. In any event, the move is all in the family. The Chase bank has enormous interests in Fox Film, and Erpi, (Continued on Page 6) Harvey Here Tonight Lillian Harvey arrives tonight to start her term contract with Fox. Her first picture will be "My Lips Betray." from the story "Her Majesty's Car." Fox will introduce the player to the press at a studio reception tomorrow afternoon. Radio signed William Seiter yesterday to direct the Wheeler-Woolsey opus which IS slated to go into production next week. Bren and Orsatti made the deal. The deal with Edward Cline to direct this picture failed to jell. Lasky Starts Second Jesse Lasky launches production' today on his second production for Fox. "The Warrior's Husband" Walter Lang directs, with Ernest Truex, Elissa Landi and Marjorie Rambeau in featured spots I BURNS and ALLEN m INTERNATIONAL HOUSE" PARAVOUNT MANAGEMENT '^ Wm. Morris A gency