Motion Picture Daily (Apr-Jun 1934)

Monday, May 14, 1934 MOTION PICTURE DAILY Zukor Decries Criticisms of Cohen's Work (Continued from page 1) cooperation and support instead of opposition. And I am going to see he gets it," Zukor added. "Cohen is a very capable individual," he said. "He is an honest, sincere v and hard worker. I believe he has done well and is the right man for the position." Zukor intimated that Cohen's refusal to play Hollywood's politics was sufficient ground for arousing opposition to him in this community. He said his current studio visit will strengthen Cohen's status, and declared his intention of remaining here until September. "I have always kept an eye on production," he said "and am able to do so more extensively now because Paramount's affairs are in a condition now that permits me to spend increased time at the studio." Zukor will attend the company's sales convention here next month and said that the session would take up exhibition and production problems as well as those of distribution, "because we want our men to be familiar with phases of all three." He expressed the belief that one major convention would be more advantageous than the several divisional meetings held in the past, but indicated that Paramount may hold regional meetings following the national one. He was enthusiastic over "The Scarlet Empress," which opened in London late last week and which will have its New York premiere about June IS. Para. Claim Against FWC Compromised (Continued from page 1) with Paramount franchises for both houses. On the three San Francisco theatres, Fox is to pay to Paramount $114,299 in back rent for the period from Dec. 1, 1932, to Feb. 28, 1933. Additional rent from that date to April 30, 1933, is to be adjusted on the basis of the net income of the houses for the period. The new 10-year leases are retroactive to May 1, 1933, and call for an average annual rental of $98,000 for the Paramount; $75,000 for the St. Francis, and $41,000 for the California. In addition, Paramount is to receive 37^4 per cent of the net earnings of all downtown San Francisco houses in which West' Coast has an interest during the period from May 1, 1933, to June 30, 1943. Form New Corporation A new corporation is to be organized to take over all the F. W. C. interests in downtown San Francisco houses including the three under lease from Paramount to carry out this part of the agreement. In the event losses are sustained by this corporation, Paramount receives no pavment in addition to rent until such time as the losses have been recouped out of subsen uent net earnings. In the case of the Paramount, Oakland, the landlord withdraws a claim of $2,211,500 filed against Paramount Publix for breach of lease on the house and receives, in consideration, a new lease from Fox. Title to the furnishings and equipment in the house is transferred to Paramount by Fox and, in accordance with the agreement, Paramount is to sell the title to Solano Theatre Corp., a West Coast subsidiary, for $390,000. Fox receives a 15-year Paramount franchise for the house. The Oakland Paramount was constructed for Paramount in 1930 and was equipped and furnished by Paramount before being sub-let to West Coast. The landlord is the Broadway & Twentieth St. Corp., whose petition put Paramount Publix into equity receivership in Jan., 1933. Under the agreement, Fox also pays Paramount $35,030 in defaulted rent on the Paramount and Rialto, Portland, and the Paramount, Seattle. The Rialto has been repossessed by the landlord and is not included in the new leases involved in the present agreement. Fox-Paramount to Share Stock A new corporation to be known as the Paraport Theatre Leasing Corp. takes over the Paramount, at Portland, on a new lease. Fox will own 75 per cent of the capital stock of the new corporation and Paramount the remaining 25 per cent. Fox gets a 10-year Paramount franchise for its Portland and Seattle houses in connection with the arrangement. The Liberty, at Portland, is also to be controlled by the new Paraport Leasing Corp. In the readjustment of the Paramount, at Seattle, new arrangements are to be made with the First National Bank of Seattle, in return for which all claims against the theatre will be withdrawn by the bank. Operation of the house has not been settled yet. The Paramount claim against F. W. C. is an outgrowth of defaults by the latter in its agreement for leasing the theatres involved from Paramount. The original leasing agreement between the two was made in 1930. Also involved in the settlement of the Paramount claim is a Fox agreement to renew Famous Players Canadian notes which it holds, in the event a request for renewal is made by Famous on the maturity of the notes, next July 8. The notes aggregate $693,000 and represent the balance of a $1,155,000 purchase of Fox properties in Canada in 1931. The settlement is contingent upon Federal court approval, which will be sought May 21 by Charles D. Hilles and Eugene W. Leake, Paramount trustees in bankruptcy. Trustee Charles E. Richardson took no part in the settlement because of his former association with Fox. U. A. Exchange Closes First local exchange to close Saturdays is United Artists, which Saturday declared a working holidav except for the shipping force. WarnersFirst National starts next week and other branches are expected to follow shortly. Bell Loses His Mother Edward Bell, New Jersey branch manager for Paramount, lost his mother Friday. Services were held vesterday and the funeral is scheduled for this morning. Fox to Roadshow 'World* Hollywood, May 13. — Fox will roadshow "The World Moves On" following a Broadway showing at $2 top. i Purely Personal ► LESTER COLEMAN, chief accountant for Paramount in Omaha, has been transferred to the home office, working out of headquarters as visiting auditor. Glenn Ken yon has been moved up to fill his place in Omaha. Lee Blumberg, Irving Windisch and Arnold Albert, members of the home office publicity and advertising staff, get back to town today from a tour of exploitation on "20 Million Sweethearts." E. D. Ebele, associate production manager for 20th Century, will reach New York on the Santa Paula tomorrow. He is accompanied by Mrs. Ebele. Carl Leserman, Gradwell Sears' assistant at Warners, has returned to his desk after a minor operation that kept him at the New Rochelle Hospital two weeks. Gradwell Sears, in charge of southern and western distribution for Warners, leaves today on a week's business trip to Chicago and St. Louis. Charles Laughton left by plane for the coast yesterday to work in his first M-G-M picture. Charles Stern, assistant eastern division manager for United Artists, is in New Orleans on business. Ben Atwell of Columbia is in the hospital recovering from an infected tooth. Betty Boyd gets in tomorrow on the Santa Paula from the coast. Seek Kansas Court Ban on Auditorium (Continued from page 1) the Wyandotte County Soldiers' Memorial trustees from leasing the auditorium for wrestling matches. The appeal is from a ruling by Judge E. L. Fischer in the District Court at Kansas City, Kan., who denied an injunction against the trustees on the ground the wrestling exhibitions are not a commercial enterprise. Petition for an injunction was filed in the name of Paul F. Rodenbeck, a taxpayer. The American Legion, which sponsors the matches Tuesday nights, was made a defendant along with the trustees. After the suit was filed, the Veterans of Foreign Wars inaugurated wrestling at the memorial on Thursday nights. The matches are put on by professional promoters, the veterans' organizations receiving a share of the proceeds. Several years ago the Supreme Court issued a restraining order preventing the showing of commercial films in the memorial auditorium, and it has acted similarly in the case of Hiawatha and Independence memorial buildings. Closes Japanese Deal Norton Ritchey, executive director of Ritchey Export Corp., Monogram's export subsidiary, has closed a deal for all Monogram product in Japan, Korea and Formosa. Japanese subtitles will be introduced. New Warner Contracts Hollywood, May 13. — Warners have renewed the contracts of Frank MacDonald, dialogue director, and Peter Milne, writer. JpcfhUeu I Trade and daily press goes wild I abouttheyear'soutstandingcomedy * smash! John Barrymore in "20th J Century" with Carole Lombard, Walter Connolly, RoscoeKarns. A J Howard Hawks Production. From the notable New York stage success | by Ben Hecht, Charles MacArthur • and Charles Bruce Milholland. ' "A pushover at the box-office!" j — Film Daily. Chosen as one of April's six best photoplays by Mae Tinee, Chicago Sunday Tribune. Elissa Landi in "Sisters Under The Skin" with Frank Morgan, Joseph Schildkraut, Directed by David Butler. Coming soon to Radio City Music Hall. Hilarious! Uproarious! Side-splitting! The fun begins in the first reel and ends in the last of "The Party's Over" with Stuart Erwin, Ann Sothern, Arline Judge, Chick Chandler, Patsy Kelly. From the stage comedy hit by Daniel Kusell. Directed by Walter Lang. ^ I