Motion Picture Daily (Oct-Dec 1934)

MOTION PICTURE DAILY Friday, November 23, 1934 New Plan for Para. Ready; Speed Sought (Continued from page 1) was stipulated in the Nov. 14 draft, thus making adoption of the plan less difficult at this date. It is expected that the final plan will be ready for submission to Federal Judge Alfred C. Coxe early next week by the board of directors of the new Paramount company. The new draft states that " important artists" have already been lost through prolongation of the bankruptcy and that these losses "have already begun to affect earnings adversely." It is noted that, whereas the Nov. 14 draft had the support of only the Vanderlip debenture holders' committee, the creditor bank group and stockholders' protective committee, the new draft has added to this support both the merchandise creditors and the Paramount Broadway bondholders. It notes also that interest on the bank debt, debentures and coupons and general claims to Jan. 1 has now been reduced to $6,500,000 from a former estimated $7,000,000. Administration and reorganization expenses, it is estimated, will be $2,500,000. Other Provisions of Plan A provision is made in the new draft for holders of general claims which may establish priority over other general claims and the old debentures. Such claims will now be paid in cash in the amount for which priority is established. The stock subscription rights are now limited under the new draft to only those shareholders who assent to the plan. The new management provisions of the plan limit membership of the board of the new company to a maximum of 16 directors. References to a finance committee and its powers have been eliminated. Capitalization of the new company remains the same as in the Nov. 14 draft, but a newly prepared consolidated balance sheet shows an increase in assets of approximately $10,000,000, resulting in an increase from $137,112,000 to more than $149,000,000. Minor changes have been made in the plan of reorganization for Paramount Broadway, G-B Theatres Corp. and in the settlement plan for the Paramount Properties bonds. Settlement plans for the Allied Owners claim and the bank debt are unchanged. Grosses Maintain Levels Lower Than in September (.Continued from page 1) Grosses generally are running at present at about the figures that set in during the middle of October. Counsel Ask Boost In Paramount Fees (Continued from page 1) objections to an increase recommended by Joyce. The original petition aggregated more than $700,000, including an application of $100,000 each for the trustees, Charles D. Hilles, Eugene W. Leake and Charles E. Richardson, and one of $350,000 for their counsel, Root, Clark, Buckner & Ballantine. Joyce's recommendations were $34,500 for Hilles, $32,500 for Leake and $30,000 for Richardson, and $225,000 for counsel, exclusive of other reductions in minor fees sought by special counsel and accountants. The fees are for services rendered during the showed slight decreases from the previous week, but these were offset by gains from other spots. Comparative grosses for the latest available periods : Week Ending Theatres Sept. 27-28 Oct. 4-5 Oct. 11-12 Oct. 18-19 Oct. 25-26 Nov. 1-2 Nov. 8-9 Nov. 15-16 Comparative weekly totals : 132 132 132 131 133 135 134 133 Grosses $1,419,815 1,412,844 1,344,137 1,385,533 1,386,935 1,288,992 1,386,736 1,389.743 Boston Buffalo Chicago Cleveland Denver Detroit Indianapolis . . Kansas City . . Los Angeles . . Minneapolis . . . Montreal New York Oklahoma City Omaha Philadelphia ■ • Pittsburgh Portland Providence . . . San Francisco St. Paul Seattle Washington . . Week Ending Week Ending Nov. 15-16 Nov 8-9 r Theatres Gross Theatres Gross 6 $106,000 6 $108,000 5 44,300 5 46,200 8 135,500 8 133,500 5 54,800 5 60,400 5 23,500 5 22,750 7 1,8,700 7 54.200 5 28,250 5 23,250 5 35,940 5 43.300 7 70,050 7 65,000 6 23,600 6 25.800 4 37,500 4 41,000 9 300,353 11 289,486 4 12,300 4 16,700 4 25.100 4 26,100 9 83,900 9 94,300 6 64,800 6 60,700 7 31,500 6 25,600 6 46,100 6 42,100 7 77,200 7 82,000 5 18,100 5 19,000 7 34,050 7 36,150 6 68,200 6 71,200 133 $1,389,74.3 134 $1,386,736 period of the Paramount Publix bankruptcy, from March, 1933, to June, 1934. Arthur A. Ballantine, of counsel for the trustees, urged the court to increase the allowances to trustees by fixing a fair and reasonable amount in the discretion of the court, rather than on the basis of two per cent of the moneys handled by the trustees during the period as provided in the bankruptcy laws and followed by Joyce in making his report. Ballantine contended that the two per cent stipulation was fair only when applied to estates which are liquidated. He declared that a reorganization of the company, as is contemplated in Paramount, warranted a higher fee and was authorized under the new Section 77-B. His views were supported by Alfred A. Cook, of counsel for the Paramount stockholders' protective committee, who described the trustees' allowances fixed by Joyce as "unfair" and "unjust." Cook also urged that Root, Clark, Buckner & Ballantine be allowed $250,000 "on account." Similar recommendations were made by H. M. Sheffield of the debenture holders' protective committee, and by Maxwell Brandwen of an independent bondholders' group. Ballantine stated that 33,400 work hours had been devoted to Paramount by his firm's staff during the period in question and that the application for fees approximated $10.50 per hour. He pointed out that Joyce's recommendation reduced this to about $6 per hour. Jimmy Savo May Go To Para, on a Loan Jimmy Savo, who has just completed a role in the first of his 11 pictures for Hecht-MacArthur, may be loaned to Paramount for his second film. It is understood a deal is under way between Hecht-MacArthur and Paramount. Savo's third will definitely be made by the independent producers. The first picture "Once in a Blue Moon" is now being edited for early release. Yesterday Savo left for Buffalo where he opens today at the Paramount for a week's vaudeville engagement. He has just finished two weeks at the Capitol. Para. Signs Swarthout Gladys Swarthout, Metropolitan Opera mezzo-soprano, was signed yesterday by Paramount to a long term contract. Her operatic and radio engagements will not permit her to leave for the coast until about Mav 1. Gets $2 Libel Verdict Boston, Nov. 22. — One dollar was today awarded the Artkino Guild, operating a theatre exhibiting foreign product, in each of two $100,000 libel suits against the Industrial Defense Ass'n, an anti-Communist organization, and Edward H. Hunter, its secretary, accused of representing the plaintiff as radical. Hearing Begun On Phila. Dual Contract Suit (Continued from page 1) know if the theatre man would build a first run house if he had the money. Stieftel said he would not because he could not get product. Morris Wolf, representing the defendants, major distributors who have inserted clauses against duals in new season contracts in the hope of thus ending double features, objected to the nature of the question, but the court overruled him, indicating that if monopoly was involved it was a question ol deep public interest. The case was opened with Golder's petition for a permanent injunction invalidating the double feature clause in the majors' contracts. Perelman appealed for a preliminary injunction on May 28, holding that the clause was a weapon being used to monopolize both product and exhibition in this territory. Judge Walsh refused the request at the time, stating the questions involved were so important that testimony should be taken. Says Major Product Stale Samuel Waldman, an official of the Garden Amusement Co., outlined the independents' case, explaining it was necessary tor exhibitors to use product ot the major companies even though the features were stale by the time they hit the neighborhoods. He asserted that when features are not attractive the independents try to bolster their bills with independent product, adding that the majors have threatened to cut off or hold up delivery of their product unless the theatre men agree to discontinue showing films made by independent producers. Irving Phillips, Germantown exhibitor, declared when the feature pictures of what was referred to as "the trust" reached him, they were seventh runs, Warner houses getting them before all other theatres. It was brought out in the testimony that the double feature ban began to be used two years ago. Golder told the court the ultimate purpose was to drive independent producers and exhibitors out of this city and New Jersey. At an earlier hearing Golder had charged the majors with violating the Sherman and Clayton anti-trust statutes and threatened to demand that the Department of Justice investigate his charges. Judge Walsh is allowing two days for the hearing of the case. A recess was called after the morning sitting. The hearing will be continued tomorrow. Reade Takes 2nd Fox "Hell in the Heavens" is the second Fox picture purchased by Walter Reade for the Mayfair since mutual abrogation of the Fox contract at this house. No date has been set. "Gambling." first individual contract deal, goes into the Mayfair on Monday. Switch Picture's Title The British and Dominions production previously known as "The Queen's Affair," will be released in America by United Artists Dec. 21 as "The Runaway Queen."