Motion Picture Daily (Oct-Dec 1934)

Wednesday, December 5, 1934 MOTION PICTURE DAILY No Offer for Fox Gaumont Shares— Kent {Continued from page 1) any changes while in England. He did not go out of that country, he declared. Asked about reorganization of Fox West Coast, Kent asserted that the plans are now in the final stages. Queried as to whether Spyros and Charles Skouras would sign 10-year contracts, Kent stated he did not know there were any involved. He added, however, that the Skourases will continue to operate under the reorganized plan. Discussing production abroad, Kent held that there is nothing new and the company is continuing along usual lines. Comments on Para. Trustee Suit Shown Motion Picture Daily which yesterday listed him as one of the 24 defendants in a suit for recovery of bonuses filed by Paramount trustees on Monday and asked for comment, Kent merely replied : "I knew about it." He was accompanied by his wife and daughter. The Fox head will go to the coast early next rhonth, he said. On the same boat were Andre Daven, formerly with Fox in Europe and now on his own; Johnny Weissmuller, Lupe Velez, William Boyd, Blanche Yurka, and Mrs. Carlyle Blackwell. Weissmuller and his wife were met by Daniel Winkler of the Joyce-Selznick office, who had several stage offers for Miss Velez, one including eight weeks of personal appearances in the Argentine. The pair plan to leave for the coast today, Weissmuller to report back on the M-G-M lot and Miss Velez undecided on her future plans. While abroad, Miss Velez made a picture for Twickenham Studios. England the Biggest London, Nov. 30. — European film business for American companies, outside of England, is practically worthless at present and prospects are not good, declared S. R. Kent, president of Fox, in an interview with a correspondent of the Daily Film Renter. England, said Kent, is yielding 25 per cent or more pf the export revenue. The German decision to impose a tax of "approximately $10,000 per feature on imported films virtually rules Germany out of the field, the Fox president asserted. In addition, he said, they hit upon "unexpected reasons for banning pictures." Czechoslovakia was "absolutely barren of production facilities," Kent was quoted as saying and until recently, as a result, got into difficulties with its import charges. He described the Spanish situation as "uncertain in view of recent disturbances," and pointed out that in France and Italy "the desire to nurse the home industry had led to difficulties for the importer." "South America, too, has its domestic troubles as a bar to development in that market," he said. "In brief," he continued, "the whole foreign field bristles with these problems, and it is a relief to turn to Great Paramount 's Future Picture (Continued from page 8) has been left for later consideration; the above balance sheet, accordingly, does not reflect changes in corporate structure or in properties since September 29, 1934, except as specifically contemplated by the Plan. Accounts of Canadian Companies are stated in Canadian dollars converted into same number of U. S. dollars. The above balance sheet assumes that the claims against the Debtor (which, as stated in the Introductory Statement to the Plan, have been filed in the Bankruptcy Proceeding and/or Reorganization Proceeding for amounts aggregating $297,702,162.37, exclusive of claims for indeterminate amounts and exclusive of such claims as may be filed after November 28, 1934) will be so reduced, either by negotiation or litigation (1) that the following claims dealt with under Article III of the Plan will constitute liabilities of subsidiaries only and in the following amounts: New Broadway Bonds, with accrued interest $9,091,580.94 Paramount Properties Bonds 2,775,198.75 Paramount Land Corporation Notes 794,641.12 Jacksonville, Florida, Mortgage 596,351.13 St. Petersburg, Florida, Mortgage 506,763.65 Long Island Studio Mortgage 1,035,361.79 and (2) that the aggregate amount of Priority Claims, General Claims, Old Debentures, Old Bank Debt and other claims dealt with under Article III of the Plan and which are ultimately treated on a parity with General Claims (including interest to January 1, 1935, to the extent provided in the Plan, but excluding claims for indeterminate amounts at the time the Plan is finally confirmed) will not exceed $55,000,000. To the extent that such assumption is not realized, the amount of New Debentures and First Preferred Stock will be correspondingly increased; to the extent that a greater reduction is obtained, the amounts of such Debentures and First Preferred Stock will be correspondingly reduced; and in either case adjustment will be required in the interest of the Common Stock. Contingent liabilities of subsidiary companies are not reflected. No deductions have been made in "Cash on hand and in banks" on account of cash payments made between September 29, 1934 and the date as of which the Plan will be consummated, in connection with settlement of claims. The amount "Cash on hand and in banks" shown in the above balance sheet reflects, among other things, the receipt of $6,441,805.70 purusant to exercise of subscription warrants, or underwriting of subscription, and the payment of $5,175,131.32 on account of the New Bank Debt and $2,500,000 of administration and reorganization expenses. To the extent that such expenses paid in cash exceed $2,500,000 the "Cash on hand and in banks" will be decreased, and to the extent that such expenses so paid are less than that amount, the "Cash on hand and in banks" will be increased, in either case with an adjustment in the interest of the Common Stock. "These amounts are exclusive of such New Securities as may be issued pursuant to Articles X, XI or XLI of the Plan and are exclusive of $390,000 of New Debentures and 3,900 shares of First Preferred Stock to be issued and held in trust for Paramount Land Corporation by the holder of the Paramount Land Corporation Notes but as additional security for the new notes, such notes being included among liabilities of subsidiaries in the above balance sheet. Included in the claims reflected in the balance sheet, however, are five claims aggregating $212,812.41, which are also obligations of subsidiary or affiliated companies. Britain, which continues to progress smoothly and to yield a satisfactory return." Kent said it was unlikely that there would be any development of Fox production in England. He reviewed the American situation by sayjng the NRA had been helpful to the little fellow. The clean film movement, he said, had hit the industry hard, but had been a good thing in that if "the purity drive had not been launched, some sections of the industry might have run themselves into the menace of rigid censorship or a revulsion of public opinion." Kent described the Tri-Ergon litigation as a "passing worry." The patents are not basic, he was quoted as saying, and can be avoided in future use, but if William Fox wins his suits past infringements may cost heavily. "In any case," Kent was quoted as saying, "we contend that these patents belong to us, and, irrespective of the result of the present cases^ we are proceeding in the courts to establish our claim to them." New Preferred Unit Preferred Pictures, Inc., has been formed under Pennsylvania laws to do business in Philadelphia and Washington. It is headed by Murray F. Beier, E. S. Waters and H. L. Taylor. Preferred has just closed a deal with Dave Mountan of Spectrum Pictures for distribution of "Frontier Days," first of a series of eight westerns. Hornstein Opens Office Joe Hornstein officially opened his own independent supply house in the Film Centre Building yesterday and at the same time announced taking over of Independent Theatre Supply Co., of which Louis Marks is head. K. C. Cuts Danger Downtown — Finney (Continued from page 1) Midland here, which the neighborhoods and other theatres are bitterly protesting, is in line with price scales elsewhere. In response to a direct question, he said Loew's might reduce the Midland's top from 40 cents, as at present, to 25 cents. The situation here is unique, he says, in that there is not only a competitive situation between the neighborhoods and downtown first runs, but that in the neighborhoods there is competition between independents and circuit theatres, namely Fox Midwest. These factors, he says, make the clearance and general competitive situation complex. Competition from the neighborhoods is making the situation of the downtown first runs precarious, he declares. For this reason the first runs will never consent to a clearance schedule based entirely on admissions, he said. Finney objects to the fact that the downtown first runs have no representation on the clearance and zoning board. E. C. Rhoden, Fox Midwest division manager, is the board member representing affiliated first runs. "Rhoden is an able executive and I have nothing but praise for him," Finney says, "but the fact remains that his interests in Kansas City lie in suburban operations." Hatrick Called West E. B. Hatrick, general manager of the Hearst film interests, left suddenly for the coast by air yesterday. He plans to return for Christmas. If he does, he will return again to Hollywood immediately thereafter. < Purely Personal ► PETER PROFILI and Sam Cphencious of the American, Vestaburg, Pa., and Attorney J. Richardson, yesterday were in New York on an appeal from a clearance decision in Pittsburgh. Alexander Bellette of the Grand, Fredericktown, Pa., also was here. Harry Buxbaum, New York Fox exchange head ; Harold Freedman, Yonkers exhibitor, and Leo Justin of the Walter Reade office, are back from Philadelphia where they attended the Army-Navy game. Harry H. Thomas and Charles Rosenzweig officially returned to their offices at First Division yesterday. Both were on trips, returned Thanksgiving Day, but didn't check into the office until yesterday. Lily Pons, who will soon make a picture for Radio; Jacques Charles. French producer, and Dave Apollon and his band arrive this morning on the Champlain. Don Hancock, with Film Daily for the past four years, has rejoined Van Beuren as production manager on the "Dumb Bell Letters," "Vagabond Adventure" and other shorts. Vincent Korda's original etchings for the settings of "The Private Life of Don Juan" go on exhibition at the Tudor City Art Galleries, 5 Prospect Place, today. William F. Rodgers of M-G-M returned yesterday from Philadelphia. Felix F. Feist gets in from Chicago the end of the week. Fred Quimby arrived from the coast yesterday and immediately heaved into a pile of work which accumulated while he was gone. Howard Leuen, Brooklyn salesman for Paramount, is the father of a boy. The event took place Thanksgiving Day. Hugh Walpole arrived by plane yesterday from Hollywood. He'll stay around town for two days before embarking for London. Walter Wanger, producer of "The President Vanishes," is in New York from the coast. He'll be here two days. Maybe three. J. Robert Rubin hies to Philadelphia today to testify in that double feature trial. Walter Eberhardt sails south on the Monarch of Bermuda tomorrow. Mrs. E. accompanies him. Isadore Rappaport, Baltimore exhibitor, was in town yesterday conferring with Herschel Stuart. George Schaefer and Milt Kusell are back from a week-end on Chesapeake Bay. George Dawes, Samuel Goldwyn representative, is in Chicago to handle exploitation there. James Ross Grainger spent his day yesterday in Boston. Back today. Kitty Carlisle and her mother are at the Ritz Tower. Harry Gold is back from Charlotte and other southern cities. June Knight and her new husband, Paul S. Ames, are in town. James Cagney is in town for a two-week vacation. Ed Hurley is in from the coast.