Motion Picture News (Jul - Sep 1929)

August 10 , 1929 525 Government's Approval Policy On Mergers Now Slated To Be Modified WASHINGTON SILENT But Dept. Of Justice Said To Have Withdrawn Approval Of Two Picture Mergers IT was reported in New York this week that the Department of Justice had witlidrawn its reported previous approval of the merging of the ^Yarner Bros.First National and the Fox-Loew-M-G-M companies. These reports followed closely that from Washington that the Department was to modify the former policy of granting approval to those seeking to merge various big enterprises. Seeking to verify the reports in Washington brought an absolute refusal for any information requested in regard to the two motion picture mergers. Generally it was stated that the Fox organization, at least, would take exception to any decision that was handed down by the Government prohibiting its taking over the Loew-M-G-M organization. According to inforraa.tion, the Departm-ent of Justice stand in the matter of the Fox-Loew merger is because of the tremendous increase over the market value of the M-G-M stock that William Fox is said to have paid in order to secure control of the company. The Department of Justice is said to maintain that this increased price places in jeopardy the holdings of other stock-holders in the company. No line could be obtained as to what basis was found for the reported disapproval of the merging of Warner Bros.First National. (Continued on page 530) Arrest Mgr. When Davey Lee Does Vaudeville Turn Buffalo, N. Y., August 8. — On complaint of the Children's Aid Society, warrant for the arrest of Albert P. Kaufman, manager of the Great Lakes Theatre, for permitting Davey Lee, four-year-old motion picture star, to appear in a singing and dancing exhibition was issued Tuesday by Judge George E. Judge, of the Children's Court. Mr. Kaufman is charged with permitting a child under 16 years of age to appear as an actor. Kaufman is absent from the city and will not return until Friday, the day the youthful motion picture star's engagement will expire. Service of the warrant was accepted by the assistant manager, Edward J. McBride. Later in the day, Judge Judge accepted a plea of not guilty and adjourned hearing until Friday, when Mr. Kaufman will return to the city. Neither Davey Lee nor his parents, who are accompanying him on his theatrical tour, appeared in court. Pickford And Fairbanks To Tour Europe (Hollywood Bureau, Motion Picture News) HOLLYWOOD, Aug. 8— Mary Pickford and Douglas Fairbanks expect to take a three months' trip to Europe immediately upon completion of their initial co-starring production "Taming of the Shrew," now being edited. Upon their return, each will begin individual starring talkers, now in preparation by the scenario stafifs. Although plans are being made on that basis, it is possible that both stars will make one picture each before the European trip, as this was the original intention up to a fe ■" weeks ago. Stockholders Of Paramount Have Increased 8^000 Totalled 1,991 Five Years Ago AndNowISumhers 9,927; 18 Foreign Nations Included During the last five years the number of Paramount stockholders has increase-, approximately 8,000, the statement of March 15, 1929, showing 9,927 stockholders as against the 1,991 listed in 1924. The Paramount Famous Lasky Corporation was the first motion picture organization admitted to trading on the New York Stock Exchange in 1919. All of the United States and eighteen foreign countries are represented in the list of stockholders. The largest number reside in New York; second, Pennsylvania; third, Massachusetts; fourth, Illinois; fifth, California; sixth. New Jersey; seventh, Connecticut; eighth, Ohio; ninth, Michigan; tenth, Missouri, and eleventh, Minnesota. Gance Starts Shooting On "The End Of The World" Paris, August 1. — First actual shooting for "The End of the World," astronomical story by Abel Gance, commenced on Bastille Day and production will continue throughout the Summer and Autumn in Paris and in the Pyrenees. Gance, who directed "Napoleon," distributed in America by M-G-M, will direct "The End of the World" and production will be by the Societe I'Eoren d'Art, of which V. Ivanoff is in charge. Casting is not completed, although Conrad Veidt is being considered for the leading role. The film will have sound synchronization and dialog in several languages, as well as color sequences. Gance has been working on the script at various times since 1912 and has also acquired rights on a book by Flammarion. TOO MANY LOOPHOLES Attitude Believed To Be That Business Concerns Have Taken Advantage Of O. K, Policy V, ^-ASHINGTON, August 8.— What the attitude of the Department of Justice will be with respect to widely rumored mergers in the film industry is a question which has not yet been solved by officials of the Department them-, selves. The only certainty is that the so-called Donovan policy is due for modification to bring it more nearly into line with the, views of the Administration. President Hoover is understood to have given the matter some consideration and to have discussed it with Attorney General . Mitchell. It is believed that the President feels that the policy followed by the Department of Justice during the past few years has had too many loopholes, and that it has been possible for business concerns obtaining the approval of the Government to mergers, to go far beyond what the Department contemplated. In short, it is felt that business has taken advantage of the. Department's policy to transgress the laws. Little is being said regarding the matter by officials of the Department. The At-, torney General declares that no decision has been reached as to the manner in which merger proposals will be treated in the future. The question is still under consideration, and while Colonel Donovan's policy had some merit, in all probability, he says, it will be necessary to modify it to some degree. Some years ago the Department refused to consider merger questions, informing business men who inquired about the legality of proposed amalgamations that they should go ahead with their plans and they would find out what the Government thought about them afterwards, in the form of prosecutions should they violate the antitrust statutes. This was so grossly unfair to business men who desired to keep within the law that a change of policy was determined upon, and the so-called Donovan plan of giving proposed mergers consideration and "indicating" whether they would be in violation of the law was adopted. This, now, has been found to have been abused in some cases, and officials of the Department are casting about for another method of dealing with the situation, whereby the Department's attitude toward proposed mergers is made clear without paving the way for violations using the Government's approval as a cloak. President Hoover is known not to be opposed to mergers in industry so long as they do not tend to set up monopolies, believing that the combination of a number of weak units has the advantage of elimin(Contimicd on page 530)