Motion Picture News (Jul - Sep 1926)

2VR M o I i o n I' i c t u r e N e w s Famous-B & K Contract to be Revised to Sept. 25; No Management Change AN adjustment has been made in the deal between Famous PlayersLasky and Balaban and Katz, whereby Famous secured control of the theatre circuit. The contract, entered into September 17, 1925, has now been made active as of September 25, 1926. This transaction will follow payment by Famous on October 15 of one-half of the purchase price of the common capital stock (represented by voting trust certificates) deposited with the depositary. The deal will not affect the management of B. & K. Under its provisions Famous purchases two-thirds of its common stock at $80 per share. It provides that each holder of common has the right to sell twothirds of his holdings registered Sept. 1, 1926. The price of $80 is payable, at the option of the stockholder, as follows : 1. All cash on Oct. 15, 1926; or 2. $40 cash on Oct. 15, 1926, and the balance in three equal installments, payable Oct. 15, 1927, Oct. 15, 1928 and Oct. 15, 1929, with interest on each of said installments at the rate of seven per cent. (7%) per annum, payable semi-annually., In the event that the stockholder elects to take half cash, bearer certificates will be issued to him representing the unpaid portion of the purchase price, which certificates shall be (at his election) either (a) Redeemable at his option of ten days' notice at par, with accrued interest at the rate of six per cent (bf/( ) per annum (instead of seven per cent (7%) from the last preceding interest payment date; or (b) Non-redeemable. Famous has the right however to make pre-payments on the balance of the purchase price remaining unpaid on 30 days' notice. No stockholder is required to sell any of his holdings; he simply has the right to sell two-thirds (2/3rds) thereof. Stockholders desiring to avail themselves of the offer must deposit their voting trust certificates on or before Sept. 15, 1926, with a depositary to be selected. Depositing stockholders to receive any dividends declared payable Oct. 1, 1926. The depositary to be selected for that purpose will retain as security for the unpaid portion of the purchase price a sufficient number of shares (based on a value of $80 per share) which shall amount to not less than fifty per cent (50%) in excess of the amount owing by Famous, from time to time, on the stock purchased by it pursuant to the agreement. N. Y. Board After Bicycling Campaign Waged Against Practice ; Cases Discovered, Says Hays Organ THE practice of "bicycling" films has not been done away with, judging from statements made in tin' "Film Board of Trade Bulletin" issued by the Hays organization. According to the "Bulletin," several cases have recently been uncovered in the New York territory ami a campaign to stop this practice lias been put into effect. One ease brought In liglll recently was in Brooklyn where two theatre owners were switching the entire program. They admitted their guilt and paid $1,500 to nine different exchanges. It is a fact, however, that the companies affiliated with the Film Board of Trade have found, without exception, that all reputable exhibitors in the territory second the efforts to restore fail' and honest competition. The article in I he " Bullci in." by Louis Phillips, attorney of the local board, bring to light many methods employed by dis lionet exhibitor-:. Iii one case the pictures switched were :i\en new names in the program of the theatres to winch they were -witched in order to allay suspicion and make dis iv difficult. Again, the exhibitor lo cated in an outlying section would arrange with the distributor to ship the show several days in advance of play date, and he, in turn, would return same several days late. This enabled the theatre owner to exhibit the show in other theatres without authorization. A clever device is to purchase a picfure for one day at one house and for the slice line; day at another theatre, and then proceed to show the picture two days at each theatre. Film is found switched in spots where least expected. The operator of a small circuit, caught in the mesh, reimbursed the exchange for the film "bicycled" and then proceeded to furnish inform/it ion about his competitor, who was also guilty of the same offense. J. A. Bertram, Former K, C. Exhibitor, Dies Kansas t'it\ exhibitors were grieved this week to learn of t he death of .1. A. Bert rani. former manager of the Mam Street Thea Ire, Kansas City, in New Orleans. He had ,-i large number of friends in Kansa City. Many Firms Granted N. Y. Incorporation Charters .Motion picture companies incorporating in Xew York State during the past week showed the following directors ami capitalization, according to charter granted by the Secretary of State at Albany: Old Forge Amusement Company, $50,000, Alphonsus J. and Marion R. Sardino, of Old Forge; Frank B. Sardino, Syracuse; Crescent Theatrical Enterprises, inc., ~2.~>,000, Harry Shepard, Brooklyn; Wendell P. White, Leon Samuels, Xew York City; Stanley Advertising Company, Industrial Film Division, Inc., $30,000,' Albert W. Goldstein, Bernard Xaumburg, Shirley Lewin, New York City; The Malem Cor poration, capitalization not stated, Myrtle M. Marvin, Agnes McNamara, Harold P. Garrahan, New Y'ork City. The same incorporators formed the Xanlor Corporation, capitalization not stated; Raymond Theatrical Corporation, $10,000, l-nlor Eisenberg, Belle A. Cohen, Harry Hoffert, Xew York City; Short Classics, capitalization not stated, Morris Kleinberg. Sadye Fischer, J. W. Friedman, New York City; Musicomedies, Inc., capitalization not stated, Robert Walker, Leon DeCosta, Solomon Goodman, New York City; C. Ellanay Realty Corporation, $50,000, Leo Breeher, H. C. Olmstead, M. H. Chamberlain, Xew Y'ork City; Dependable Distributing Corporation, Buffalo, $14,000, William Goldstein, Charles S. Goetz, New York City; .John 11. Lyons, Buffalo, Sphinx Films, Inc., capitalization not stated, •). H. Robert Grant, Kew Gardens; Antoine G. Mainpot, James F. Carroll, New Y'ork City. Davis-Adams Picture Corporation, $20,000, John K. Adams, New York; J. ('has. Davis, 2nd, Hollywood, Cal.; .lay F. I '.row ne, Ronkonkoma, L. I.; Turin Theatre Corporation, $37,500, Nancy Leaser, Samuel W. Bass, R. R. Rubenstein, Xew York City; Ridge Bay Amusement Corporation, capitalization not stated; Archie Weltman, Jay M. Eisenberg, Beatrice Zelenko, Xew York City. W. S. McLaren, Exhibitor of Michigan, Marries W. S. McLaren, manager of the Capitol Theatre at Jackson, Mich., ami formerly president of the Motion Picture Theatre Owners of Michigan, ami Joy Crossman, professionally known as Esther Joy, were united in marriage at the home of Mr. and Mrs. C. L. Carrel], in Chicago, Wednesday morning, June 30. Among guests at the wedding were Mr. and Mrs. ('. }■] Cady, of Lansing, Mich., ami (i. A. Cross, of Battle Creek, Mich., both of whom are partners of McLaren. The happy couple left for Xew York, Atlantic City and Philadelphia on their wedding trip. They will be at home in Jackson, Mich., after An,-. 1. Admission Prices of New York Rivbli Revised A new -eale of admission prices were inaugurated at the Xew York Rivoli with the start of the week's program on June 26, Orchestra ami balcony seats will sell at 65 cents from l'J noon to 6 p.m.. ami 7"> cents from si\ to closing on Saturdays; all seats 75 cents at all hours on Sundays, all seats 35 cents from 11 a.m. to 1 p.m.. 50 cents from 1 to (i p.m., ami 7."> cents from 6 p.m. to closing on week days.