Motion Picture Daily (Jan-Mar 1934)

MOTION PICTURE DAILY Friday, March 30, 1934 Otto H. Kahn Dead; Factor In Para. Plan (.Continued from page 1) not the banker's death would have any effect on reorganization plans in which Kahn was a factor of impor tance. At the same time, it was ad mitted freely his counsel will be missed sorely. Through the instigation of Kahn, Paramount's first "public" financing which was a $2,000,000 stock issue, was handled by Kuhn, Loeb & Co. in 1919 and served to finance the company's first entry into the exhibition field. Kahn's firm continued as Paramount's principal bankers from that time until 1932. Prior to the first stock issue Paramount had never required "public" financing. How Film Tie Started The banking association between Kuhn, Loeb and Paramount originated with an acquaintanceship between Kahn and Adolph Zukor, Paramount president. Kuhn, Loeb had become interested in motion picture financing about 1915, and in that year backed John R. Freuler for president of the old Mutual Film Co., in which Felix Kahn, a brother of the deceased, was interested. With Kuhn, Loeb financing, Mutual interests built the Rialto, and installed S. L. (Roxy) Rothafel, who had previously been major domo of the Strand, as its director. Subsequently, Paramount acquired the Rialto, and in that transaction Zukor first came to know both Otto and Felix Kahn. Zukor, at a recent Paramount bankruptcy hearing, when questioned as to the reason for the orginal selection of Kuhn, Loeb & Co. as Paramount's bankers, declared that Kahn " was the only banker I knew." Since the Paramount bankruptcy Kahn has been actively interested in plans for the rehabilitation of the company, although Paramount was not indebted to Kuhn, Loeb at the time of the bankruptcy. It is understood, however, the Kuhn, Loeb partners, in addition to Kahn, had invested heavily in Paramount bonds and, as such, figure among the important creditors' groups in the reorganization of the company. Kahn's aid in the Paramount reorganization plans now under way was being given up to the time of his death to the protective committee with which Sir William Wiseman, also a Kuhn, Loeb partner, and Dr. Julius Klein, former assistant secretary of commerce in the Hoover administration, are identified. This group is regarded as the principal factor in the reorganization of Paramount. Held Help lo Para. Sir William, Kahn's banking partner, was the Kuhn, Loeb representative on the Paramount directorate for many years, and gave particular attention to the company's finances. Dr. Klein, advisor to the reorganization committee, said yesterday : "Otto Kahn's Ion? familiarity with the Paramount situation made him especially valuable to those who are furthering the rehabilitation of the company. His counsel, had it remained available to us, would have speeded British Films Stimulus To Hollywood — Giannini (Continued ability to appeal to world markets, Dr. Giannini says: "I believe that after nearly a quarter of a century of practically absolute domination of the world motion picture industry it will be a good thing for Hollywood to look to its laurels. "I believe the discovery that new artistic interpretations and improvements are possible in film making, and that new types of dramatic appeal will register with the public, may stimulate in Hollywood a new and well considered flow of creative spirit. from page 1) Such discoveries seem to me to be in the nature of a liberal education. Such education, I feel certain, can be made use of not only in Hollywood but by a great many other typically highspeed and self-concentrated American institutions." Dr. Giannini predicted that if a proposed circuit of theatres in Canada for exclusive showings of British product materializes it will fail. He also says the threat of English actors and authors to work only in England will be futile. much that remains to be done before the reorganization of Paramount can be accomplished. His whole experience in the amusement field, together with his long acquaintance with talent, will make him missed throughout the entire industry." Zukor said : "I am shocked and very deeply grieved at Mr. Kahn's passing. The world has lost a great personality. His most constructive influence has been reflected in industry, art and philanthropy." Ralph Kohn, head of the Paramount theatre department, said : "All of us at Paramount have lost a great friend and advisor in the passing of Mr. Kahn. During all of the trying times that we have had over the course of the last 15 years, his help has been of tremendous value to us. Among his other qualities he had the uncanny way of being able in exciting times to study and with great calmness analyze a proposition. In addition to this he was a man in whom all who came in contact with him had great confidence and who was able to have men fol low him as very few of us can. We are certain to miss his advice in the reorganization of Paramount." Secretary Posts to Unanimous Choices Secretaries unanimously recommended by local boards will be approved by Campi, it was stated yesterday. Several cities already have notified Code Authority of their suggestions and they will be appointed officially within the next few days. Joint meetings have been held in Buffalo, New Orleans, Chicago, Cincinnati, Los Angeles, Milwaukee, San Francisco, New Haven and Washington, but all have not as yet filed secretarial nominations. Other boards are slated to meet this week and next. "Race Nights" Out "Race" nights and "bank" nights are prohibited under the code, it was decided yesterday by Campi, which by unanimous vote interpreted Article 5, Part 3, Section 1 — the reduced admission price clause — to mean that these nights are similar in form to lotteries and guessing contests and come within the prohibited provision. Several exhibitors had asked for a ruling on the nights in question. Predict Code Will Be Handled Easily (Continued from page 1) shipment of films. Members of the grievance and clearance and zoning boards of the Omaha district have be gun active duty. Delay "Villa" Opening Opening of "Viva Villa" at the Criterion, originally scheduled for April 6, has been changed to April 10 by M-G-M. Atlanta, March 29. — Organization meetings of the clearance and zoning and grievance boards have been held here. Oscar C. Lam presided at the former and E. L. Cole at the latter. Love B. Harrell, secretary of the Film Board of Trade and also secretary of the Southeastern Theatre Owners Ass'n, was nominated for secretary of the boards. It is understood that he will have to quit both his present jobs if he is named. Des Moines, March 29.— E. L. Ellsworth of Iowa Falls presided at a joint meeting of the clearance and zoning and grievance boards yesterday. The next meeting will be held April 17. A. H. Blank will act as clearance and zoning chairman at that meeting and E. J. Tilton will preside for grievance. Cleveland, March 29.— The first meeting of the local grievance and clearance and zoning boards will be held here Monday. Portland, Ore., March 29. — First joint meeting of the local code boards was called here today by Andrew Sasp, chairman of the clearance and zoning, and Charles Powers, chairman of_ the grievance, at which Ashby Dickson and Bert Haney, impartial appointees, were introduced to the membership. Ruth Doyle, secretary of the Film Board, was recommended for permanent secretary. Questions of salary and incidental expenses were discussed. _ Zoning schedules and maps will be discussed further at a meeting of the clearance and zoning board April 2, with Lou Amacher of M-G-M chairman. Guv Matthews will preside at a meeting of the grievance board on April 9. Cancellation Rule of NRA Will Prevail Labor Signs on Way Code Authority is mailing 18,000 applications for NRA labor wage posters shortly to all interests in the business. The signs must be displayed in all places of employment. (Continued from page 1 J terday and, although practically all companies earlier had gone on record not to grant the 10 per cent privilege only two Campi members voted against it this time. They were Harold S. Bareford of Warners and George J. Schaefer of Paramount. Voting for the cancellation right were S. R. Kent, Charles L. O'Reilly, R. H. Cochrane, W. Ray Johnston, Nathan Yamins, Leslie E. Thompson, J. Robert Rubin and Walter Vincent. Max L. Levenson was a guest of the authority yesterday and did not have a vote. Boards Back Again; More Shifts Made (Continued from page 1) for an enlarged board of 12 has been discarded. Because of a disagreement of a distributor member and an independent exhibitor of the Philadelphia clearance and zoning board, the personnel was referred back to the committee, which will meet again next Wednesday to work out changes in the two territories. The Boston board is set with the exception of an impartial member on the clearance and zoning. R. B. Wilby yesterday was appointed to replace Arthur Lucas as affiliated exhibitor on the Atlanta grievance board. Frank Miller of Augusta takes Wilby's former place on clearance and zoning. Phillip Blumauer is now subsequent run exhibitor on the Portland zoning board, replacing George Jackson, who was removed because he was identified with the same companv as William Cutts. Everett Dilley has been named to replace Eddie Ruben on the Minneapolis grievance board as affiliated exhibitor. Emmons L. Abeles is the impartial member for this board. Edward S. Tunstall is now listed in place of Fred Holzapfel as subsequent run exhibitor on clearance and zoning. Andrew Ruhm is the impartial man. Judge Harry H. Porter replaces Lowell Mason as impartial member of the Chicago grievance setup. The session was adjourned until next Friday, when Harold S. Bareford will continue as chairman. Report Loew Labor Case in Washington The NRA Regional Labor Board here is reported to have forwarded a report on activities of Loew's in connection with employes who were members of Local 118. Theatre and Amusement Employes Union, to the NRA Compliance Board at Washington with a request for further action against the circuit. The board's action followed a Labor Board hearing early this week attended by representatives of Loew's and a number of ushers who allege they were induced to resign from the union. Hearings on similar complaints involving RKO, the Tivoli. Brooklyn, and Madison Square Garden have been set for next Tuesdav at the Regional Labor Board here.