Motion Picture Daily (Jan-Mar 1935)

8 MOTION PICTURE DAILY Thursday, January 10, 1935 Board Makeup Now a Hurdle To Para. Plan {Continued from page 1) journment of a month while counsel for other reorganization committees were urging haste in concluding the hearings and advocated an adjournment of not more than a week. Burkan's committee is known to advocate industry men for the board. The stockholders' committee, represented by Alfred Cook, who is also counsel for Paramount Publix in the proceedings, is known to favor the naming of additional Paramount or industry men to the board. Although that committee recently advised its members by mail that it would not formally approve the reorganization plan until a new board had been completed to which it could give its approval, Cook has urged the necessity of a speedy reorganization and, at this point, at least, will not oppose the plan. Among Those Proposed These two factions have proposed George Schaefer, Paramount general manager ; Frank C. Walker, vice-president of M. E. Comerford Circuit, and Charles E. Richardson, former Paramount trustee, for the new board. Also proposed were Barney Balaban and E. V. Richards, Paramount theatre operating partners. Conclusive developments on the election of some or all of these may occur within the next few days. Schaefer will resume the stand today when the hearings on the plan reopen before Judge Coxe. Counsel for the debtor expects to complete the presentation of formal proof at today's session. Whether an additional hearing will be required depends on the amount of time which the court is prepared to give to the opposition, which has been confined to date to Samuel Zirn, counsel for a small bondholders' group, and Archibald Palmer, who is appearing as friend of the court. New opposition of any significance might also result in further delay. However, if the testimony is concluded today the court will take the plan under advisement and accept, reject or alter it. If accepted, it will then go to individual creditors, twothirds of whom must approve it before it becomes effective. SEC Probe of Para. Setup One of Many {Continued from page 1) 1,600 corporations in process of reorganization, Paramount and probably Radio among them. The information developed will be studied and a report made to Congress carrying recommendations for such legislation as the commission may consider desirable. Discussing the Paramount situation, officials of the commission pointed out that the matter is in the courts and that, therefore, the commission does not yet have any direct interest. That interest will not be created, it was said, unless and until the concern files a registration application for new securities. Texas Buying Case Drags Out All Day (Continued from page 1) giving Frels a split of 1934-35 product bought by the respondents was appealed by both complainant and defendant. Frels, acting on his own behalf, said that the decision of the lower board did not give him enough pictures to meet his requirements. He said he hasn't been able to get any as yet and it will probably be six months from the date he originally filed the complaint before he gets a feature. Louis Nizer, representing Long, contended that Long was an innocent party, having purchased the Queen and Rita, Victoria, Tex., from Jefferson on Sept. 27, last, because he felt that the "feud" between Frels and Jefferson was directly hurting business in his theatres in nearby towns. Long later testified that when he bought the houses he tried to increase the prices from 15 cents to 25 cents, but that Frels refused to go along. Extended arguments over pictures bought took up a great deal of the time, particularly the Columbia contract. Nizer had to call Abe Montague in as a witness in order to settle a controversy over this company's product. The Dallas board's decision was three to one in favor of Frels, John Maroney, attorney for Karl Hoblitzelle, being the dissenting voice. Leroy Bickel of M-G-M, Lehman Marshall, an independent exhibitor, and W. G. Underwood, associated with Claude Ezell in the operation of Monogram's exchange, voted in favor of Frels. Yesterday a letter was received from Bickel in which he said that he agreed with the opinion of Maroney, but the board took it under advisement. In addition to operating the Victoria and Uptown in Victoria, Frels also has theatres in El Campo and Yorktown in opposition to Long which were involved in the product situation. He recently sold the Orphic, Columbus, to A. Moore, whom he represented as a co-complainant. Committees Chosen For MPTOA Session (Continued from page 1) chairman ; Rodney Toups, Joe Estes ; finance, H. S. McLeod, Vic Meyer, Philip Sliman; registration, Meyer, chairman ; J. Walker Ross, Jr., Bert Kiern ; film carnival, Harold Wilkes, Jimmie Briant, Luke Connor. Hurls Burning Film Wallace, Idaho, Jan. 9. — Leo Amato, operator at the Grand, is a local hero today. He yanked a magazine of flaming film from a projector and threw it out of a window. He was severely burned. "Voice" Into Films The "Voice of Experience," radio lecturer, will make 26 short subjects based on dramatizations of human problems presented to him for assistance^ his office stated yesterday in a publicity release. Zanuck Signs Convoy Hollywood, Jan. 9.— Frank Conroy has been signed by Darryl Zanuck for a supporting role with Clark Gable and Loretta Young in "Call of the Wild." Wall Street Loew's Up One on Big Board Net High Low Close Change 37J4 3754 + Ys Columbia vtc (CI) 37Vs Consolidated Film. 6 sy& + 54 Consolidated Film pfd. (54V) 20 197/s 197/8 Eastman (4a) ....11754 116J4 11654 + 54 Eastman, pfd. (6). 143 143 143 +1 Fox "A" 1254 1254 125i 54 Loew's, Inc. (la). 3354 3254 3354 +1 Loew's, Inc., pfd. (654) 10414 10454 10454 Paramount, cts. . . 354 35i 3/2 Pathe 16 154 1554 154 16 Pathe "A" + 54 RKO 254 2/8 25i + /s V/s 205/s 4 4 54 Warner, pfd 1954 1954 -154 Technicolor Loses V& on Curb Net High Low Close Change Technicolor 1254 1254 1254 — Ys Trans-Lux (2V)... 3 2% 3 Bonds Down or Unchanqed Net High Low Close Change General Theatre, 6s, '40 954 9 9 General Theatre, 6s, '40, ctf 854 854 854 — 54 Keith, 6s, '46 735i 7354 7354 Loew's, 6s, '41, ww deb rights.. 105 105 105 — 5i Paramount F. L., 6s, '47 6254 62 62 Paramount Publix, 554s, '50 6254 6254 6254 Warner, 6s, '39 wd Stys 5854 5854 H (Quotations at close of Jan. 9) Campi to Set 1935 Budget Total Today (Continued from page 1) and its agencies totaled around $240,000. At the request of the NRA, the new fiscal year will run from Jan. 1. While assessments from producers and distributors have generally been met, the records will show that a number of independent exchanges have been delinquent in paying. However, there is no means by which Campi can force the smaller exchanges to pay levies, but it is hinted that some kind of an amendment to the code regarding delinquents will be recommended. The $240,000 operation cost for the 10-month period, was considerably under the budget figure. RKO-Century Appeal Delayed; Nizer Busy Because Louis Nizer, who has been retained by RKO to represent the company in the matter, had been tied up in another Campi appeal case yesterday, the Century clearance complaint against the major circuit was put off until next Wednesday. Century contends that its Fantasy, Rockville Center, L. I., is not competitive to RKO's Strand and Columbia, Far Rockaway, and Alden, Jamaica. Many interesting developments are expected at the hearing, according to the litigants. Mitchell Klupt, attorney for Century, will represent the complainants. Arizona Bank Cases Up Los Angeles, Jan. 9. — The grievance board will meet Tuesday to hear two bank night cases from Arizona. One will be a complaint of the Fox Alden, Globe, against the Grand, Miami, and the other will be the Elk against the Studio, Prescott. Indictment Reports Stir Up St. Louis (Continued from page 1) and at that time aired the complaints of independents that major companies were attempting to control all branches of the industry. Block booking and the code were discussed by the jurors, it is understood, and testimony covering these angles is reported to have included affidavits from exhibitors in many cities obtained the past four months. Some here have gone so far as to express the opinion that the investigation here was intended to forestall a Congressional probe of the industry and that the President was fully advised as to the Department of Justice plans. It is understood Neil F. Agnew, sales manager of Paramount, was on the stand most of today. Delay Federal Film Moves for St. Louis (Continued from page 1) that if the senator decided to act it would not take long to write such a resolution. It was also pointed out in explanation of a delay in taking the matter up in Congress that court proceedings, if successful, would prove a quicker and more efficacious way of eliminating practices which have been complained of than an investigation and amendment of the code. New York Lawyers Study Censor Bill (Continued from page 1) which will consider the drastic new censorship bill introduced last week. The lawyers are: Christopher C. McGrath, chairman, and Doris L. Byrne, Bronx; Jacob H. Livingston and C. Thomas Le Re, Brooklyn; Patrick H. Sullivan, Irving D. Neustein, Leonard Farbstein and Francis J. McCaffrey, Manhattan, and Peter T. Farrell, East Elmhurst, all Democrats. The teacher is Joseph Di Fede of Rochester, also a Democrat. Both newspaper men, Harry L. Averill of Palmyra and Wheeler Milmoe of Canastota, and the college professor, Emerson D. Fite of Vassar, are Republicans. Sennett Sale Today Hollywood, Jan. 9. — Sale of all operating equipment of the bankrupt Mack Sennett estate will be held tomorrow by Referee Earl E. Moss. It is believed the bulk of the equipment will be bought by Nat Levine, new lessor of the studio property. Leo Young in New Job Boston, Jan. 9. — Leo Young has resigned as press agent for Fred E. Lieberman to join American Film Exchanges in the same capacity. He is putting on radio programs with Chesterfield, Invincible and Majestic product as material.