Motion Picture Daily (Oct-Dec 1934)

8 MOTION PICTURE DAILY Wednesday, November 28, 1934 Para. Board Quits Today For New Deal (Continued from paije 1) plan will be undertaken following today's board meeting and actual filing of the plan with the court will be through the new board on Friday with that body's recommendation for its acceptance by the court. A speedy reorganization of Paramount thereafter is indicated, as every important bondholder, stockholder and creditor group is now in support of the plan, thus eliminating all sources of objection and delay of any moment. Several of the independent bondholder groups, notably those represented by Samuel Zirn and Robert Szold, have not yet subscribed to the plan but those who have represent, both in number and amount of qualified claims, the great majority of Paramount's obligations and their approval is expected to carry the deciding weight with the court. May Be Approved Before Jan. 1 If the plan lacked the support of any of the essential creditor groups, delays in putting it into effect might run into months. According to the present creditor lineup, however, a possibility is given to its final approval by the court before Jan. 1. Of the initial members of the new board, Vanderlip and Klein represent the bondholders' protective committee. Vanderlip is a banker and director of numerous corporations. Klein, a business consultant, was assistant secretary of commerce in the Hoover administration and held many posts with the Department of Commerce. Johnston and Davison represent the Paramount creditor bank group. Johnston is president of the Chemical Bank & Trust Co. and Davison is chairman of the board of the Central Hanover Bank & Trust Co. Newton and Brooks represent the stockholders' protective committee. Newton is an executive of Hallgarten & Co. and Brooks is an executive of E. F. Hutton & Co. Additions to the board to be made in the near future may include Charles A. McCulloch of Chicago, a director of Balaban & Katz, First National Bank of Chicago and numerous other large corporations, McCulloch, a business associate of John D. Hertz, would represent the First National and the Continental Illinois Bank & Trust Co., two of the Paramount creditor banks with an equity of ap proximately $2,000,000 in the new company. Duncan Harris, realtor, of Brown, Wheelock, Harris & Co., may be another addition as a representative of the bondholders' committee. His real estate experience is regarded in reorganization circles as of special value to the new company. William Greve, vice chairman of Realty Associates, is insisting on representation on the board for Allied Owners, a subsidiary of Realty, and indications are that Louis J. Horowitz, who served as trustee in bankruptcy for Paramount for a brief period, may be approved for this representation. The Paramount plan authorizes a full board of 16, but present plans call for a working membership of about 12. Deficiency on the board of men with actual film experience may be overcome, it is said, by the appointment of an executive advisory council, probably headed by Schaefer and Cohen, which would work in close harmony with the board. Levy Gives Family Type 6 Months More (Continued from patie 1) with audiences in the hinterlands, but of doubtful appeal in the east, according to Jules Levy, Radio general sales manager, just back from a studio visit and a tour of the company's exchanges. Radio has two new contributions to the cycle in "Anne of Green Gables" and "Little Minister." From observations of early performances of the first, and the same type of production from other companies. Levy predicts a minimum of another six months of box-office popularity for the cycle. Musicals rank with the new type of family entertainment in audience interest today, Levy found. Philadelphia IEPA Acts on Clearance (Continued from pane 1) by appointing a committee to study the situation. An advance story indicating that the independents would take this action was published in Motion Picture Daily Monday. Feel Effect of Strike Los Angeles, Nov. 27. — Loew's State business suffered last night when street car strikers staged a riot near it. Other downtown houses reported slight losses due to the walkout, with neighborhoods profiting. Roach Stops in K. C. Kansas City, Nov. 27. — Hal Roach is an overnight visitor here. He is en route to New York. Loew's Blames K.C. Theatres for Cuts (Continued from par/e 1 ) town house to such an extent that the reduction in admission at the Midland was virtually forced upon the circuit. Advices from Kansas City to the effect that a boycott was threatened against United Artists and M-G-M are news to home offices of the two companies. Edward M. Saunders, western division manager for M-G-M, is in Kansas City and it is believed he is in constant touch with the situation. Felix Feist is on the coast. At United Artists both Al Lichtman, vice-president and general sales manager, and Paul Lazarus, western division manager, denied having received any protests from Kansas City exhibitors. One official of the company said that Loew's in playing "Kid Millions" was doing so on an old franchise which did not provide for a stipulated admission and hence there could be no breach of contract by the Midland when it reduced its price. Boycott Up to Fox Midwest Kansas City, Nov. 27. — Launching of Independent Theatre Owners Ass'n. boycott against M-G-M and United Artists hinges largely on support from Fox Midwest and exhibitors in the territory, said Jay Means, president, today. Means revealed that the I.T.O. committee is seeking acceptance of the plan by theatres in the territory, as the local price war affects a 100mile radius around Kansas City. Fox Midwest strenuously protested Loew's price cuts to M-G-M and United Artists. Johnston Takes on Two Campi Hearings W. Ray Johnston doubled in brass at the Code Authority yesterday. As soon as he completed his task on one of the Campi boards, he immediately took up the post as chairman of a special appeal committee which was due to hear four Pittsburgh cases. With Harry Hecht and A. J. Mertz he heard the appeals. They are: Harry and Ike Browarsky, Bellevue, Bellevue, Pa., against Warners' Kenyon, Pittsburgh and Garden, Pittsburgh, on clearance. Harry Browarsky and his attorney, M. Leon Tolochko, acted for the plaintiffs, while I. Levinson, who hurried in from Philadelphia to attend, defended Warners. Ike, Browarsky, Hippdrome, Pittsburgh, against Harry Kalmine, representing Warners' Kenyon, same city, on clearance. E. J. Golden, Golden, Pittsburgh, against Center Vue Amusement Corp., Paramount, Warners. U. A., Columbia, Universal, RKO and Granada, same city on reduced admissions. H. B. Seigel, Princess, Erie, Pa., against Palace, same city, on premature advertising. Band at Strand Opening A parade followed by a concert of an American Legion band from Columbus Circle to the Strand, starting at 7 :30 and continuing to 9 :30 will be one of the features of the opening of "Flirtation Walk" tonight. Kent Sails Today London, Nov. 27. — Sidney R. Kent, Fox president, sails for New York aboard the Berengaria today. Farnswor th Sees No Wide Code Revision (Continued from pane 1) studio to work for another company With the exception of these amendments, no revisions are in sight. Farnsworth is the only deputy administrator working under Compliance Director Sol A. Rosenblatt, who now has 1,500 people under him in his new post. Rosenblatt has charge of field administration and enforcement of all codes. He also is liaison between the NRA and the Department of Justice, Farnsworth said. He left last night for Washington after attending a Campi meeting. Meanwhile Code Authority experts are working on an annual survey of activities of the 62 code boards throughout the country. Campi forces have been working on the recapitulation for the past three weeks and plan to have it completed by Dec. IS. However, before sending it to Washington, the report will wait until the entire year is covered. The survey will show the number of cases heard by each board and also individual determinations. Also included will be the dates when heard and disposed of. At a meeting of secretaries of all code authorities in New York last week, it was stated that of all thei codes the film draft was working the best. . . Rosenblatt was supposed to take a plane from Washington to the coast yesterday, but because of bad weather was forced to take a train. He may change to a plane in Chicago or Kansas City, depending on flying conditions. With 38 appeals to pass on, Campi left the Kansas City clearance and zoning schedule for the next meeting. Dec. 6. It's not definitely decided whether the plan will come up then for disposition. The appeal calendar is up to date now that the 38 cases have been chalked off. Attending yesterday's session wereHarold S. Bareford, Sidney Justin; Farnsworth, Willard McKay, Walter Vincent, Thomas Murray, Tyree Dillard, Jr. and W. Ray Johnston. Chadwick and Golden Appear for Perelman Philadelphia, Nov. 27. — I. E Chadwick was the chief witness today in the Harry Perelman doubk featuring suit against major distributors, being heard in Federal cour here. The action is for an injunctioi against dual bans in contracts. The producer said independent: make pictures of family calibre, add ing they helped advance screen arti He admitted the majority of exhib itors might not favor doubles bu said the minority should have the right to dual. Edward Golden o Monogram testified sales were beinj checked here by the ban. Dismissal of the case was asked b} Morris Wolf, defense attorney, on th< ground testimony failed to show con spiracy to withhold product from the atres double featuring. He was over ruled. NOW IN ITS THIRD BIG WEEK GAIETY THEATRE, NEW YORK. MUSSOLINI'S $2,000,000 ROMANTIC SPECTACLE A ROAD SHOW PICTURE ENGLISH DIALOGUE (ITALIAN VERSION ALSO AVAILABLE) NOW BOOKING EUREKA PRODUCTIONS, INC 723 Seventh Avenue, Now York City BRy. 9-0545