Motion Picture Daily (Apr-Jun 1935)

MOTION PICTURE DAILY Saturday, April 27, 1935 Para. Interest in Fox Met Is Told to Court (Continued from page 1) court jurisdiction in its own reorganization proceedings and the new Paramount board had been formally elected. Another month may be required before these developments could be realized. Fabian named the Atlas Corp. and H. A. Fortington as the Paramount financial interests involved in the proposal. Floyd B. Odium, head of Atlas, is one of the designated new directors of Paramount. Atlas was awarded the underwriting commitment for Paramount's new $6,500,000 stock subscription warrants this week. Fortington, American representative of large British insurance companies, including Royal, is also a director-elect of Paramount. Fabian's discussions were held with George Schaefer, Paramount general manager and a director-elect. Motion Picture Daily learned from a reliable source yesterday that the Paramount discussions were based on a superficial interest of Atlas and Fortington in Fox Met as a Paramount adjunct and had not been discussed with any other members of the Paramount board than those named, thus necessarily restricting the probability of a Paramount bid for Fox Met to extreme indefiniteness. It was stated additionally that interest *in the situation was centered on the probable amount for which the circuit might be acquired, and whether or not a proposal to bid would be submitted to the Paramount board for action depended largely on the estimated purchase price. It was stated definitely that the authors of the idea would not endeavor to embroil Paramount in any costly competitive bidding in the event such bidding developed as a result of Paramount's entrance into the Fox Met arena. Says Schaefer Called Him Fabian stated that he had been called to Schaefer's office by the latter over a month ago to discuss the Fox Met situation. Schaefer told him, Fabian said, that "certain interests in our organization (Paramount) were interested and might make a cash offer." "If you do "that," Fabian said he replied, "my plan will be out and I'd like to go along with yours because I think that any cash offer made will be successful over any plan now in existence." Schaefer then asked him, Fabian said, if Paramount could "come in on" Fabian's plan in the event Paramount didn't make its bid. He said he replied that he wouldn't consider that "at this time" but added that if his (Fabian's) bid was successful he might discuss a participation for Paramount later. He also stated that he had told Schaefer he would like to have 25 per cent of Paramount's bid in the event one was made. Fabian testified on Thursday that Schaefer had told him Paramount product would be available for Fox Met if Fabian's bid was successful. Yesterday Fabian said that he had again discussed product for Fox Met with Schaefer before coming to court that morning. In testifying that Herman Starr of Warners had told him that that company would like to buy the 18 Fox Met houses in Jersey in the event the Fabian bid was successful, Fabian MOTION PICTURE DAILY* HOLLYWOOD PREVIEW The Call of the Wild (20th Century-United Artists) Hollywood, April 26. — Jack London's saga of the Klondike gold rush, as deftly produced by Darryl F. Zanuck, unfolds a warm romance and virile action in this high-powered box-office attraction with Clark Gable and Loretta Young for heart and Jack Oakie for laughter. Motivated on man's primitive quests for love and gold, scenarists Gene Fowler and Leonard Praskins have kept all the human attributes in the foreground without stressing the battle against the elements. While London's novel dramatized the dog Buck, half wolf and half St. Bernard, the film merely uses Buck to counterpoint leadership as against the love call of Gable, the gambler, and Miss Young, the socialite. The story, in highlight, tells of Oakie, an Alaskan hanger-on, who interests Gable, an adventurer, in a map showing where gold is to be found by the fistful. On the trek they meet Miss Young, save her and learn that her lost husband is the map owner. The three proceed, locating the strike, and Oakie returns to legalize the claim. Reginald Owen, the heavy, finds the lost husband, Frank Conroy, and also locates the strike. Owen then shoots Conroy, hijacks Gable and, while returning with the gold, is caught in the rapids. Buck finds Conroy wounded in the woods, and Miss Young, after nursing her husband to health, returns with him. Gable's and Miss Young's romance is strong and tender. Oakie contributes comedy and pathos in his best performance to date. Owen reveals a sharp portrait of villainy finely done. The balance of the cast is good. The dog Buck plays an important role, loving Gable and hating Owen and finally answering the call of the wild. The production is a scenic treat, harmonizing ruggedness with the beautiful. William Wellman's direction is expertly fashioned and Charles Rosher's photography is topnotch. The film should go big everywhere, having marquee names, author value and the colorful drama of romance and conflict to appeal to the high and low on Main Street or Broadway. Production Code Seal No. 777. Running time, 95 minutes. "G." said that he had vetoed the suggestion, but had told Starr that he would be willing to discuss a pooling arrangement with Warners for the houses if he acquired Fox Met. The courtroom full of film men and attorneys, almost inured to shock after seven days of the hearings, was startled at one point when Fabian, answering a question as to Warners' interest in the Jersey houses put to him by Kresel, said that "Herman Starr told me that if the SchenckWeisman plan is successful, A. C. Blumenthal has promised Warners the Jersey theatres." Another shock to the sensitive natures of the film men and attorneys came when Kresel, questioning Fabian as to the reports on Fox Met operations of a confidential nature which he had received in his capacity as advisor to Irving Trust Co., receiver for Fox Met, asked Fabian whether he had delivered any of the documents to Warners. Fabian admitted that he had retained copies of these reports in his own possession, but denied that he had given anything to Warners that had not been authorized by either the receiver or the Federal court. The papers in question included income and cost reports, audits, rents and leases on Fox Met houses for the period from Jan., 1932, to Aug., 1935. Kresel then asked Fabian if he had not been accused by Alvin J. Schlosser, member of the Fox Met bondholders' committee, with having delivered confidential information to Warners just prior to the Loew Warner bid for Fox Met last summer, and if he, Fabian, did not admit having done so. Fabian denied this, but said that he had been accused by Schlosser of "breaking faith" with the committee in talking to Warners, and that Schlosser had told him the committee was not interested in any bid but the one it was formulating itself. Fabian testified that Fabian Securities Corp. owned $132,500 of Fox Met bonds bought at an average of 14 and now worth 45, representing a profit of about $33,000. Questioned on his own plan for Fox Met, Fabian stated that Albert M. Greenfield of Philadelphia was his only associate and that Greenfield's Bankers' Securities Corp. would participate in the financing by putting up $650,000 of the $1,000,000 cash proposed in the plan. The remaining $350,000 would be supplied by Fabian, yet Fabian would receive 75 per cent of the Fox Met stock and Greenfield the other 25 per cent, Fabian said. He explained this by saying that the $650,000 is a loan to him by the Bankers' Securities Corp., for which all of the Fox Met stock would serve as collateral. Greenfield's 25 per cent stock interest would be a bonus given in consideration for making the loan, Fabian said. Fabian Enterprises would have no liability as a result of the loan, it was stated, but dividends from Fox Met would be turned over to Greenfield's bank until the loan was repaid, it was said. Fabian testified that his plan provided a $50,000 salary for himself as operator and that general creditors' claims would be paid off with a share of the unmortgaged cash of Fox Met, Wall Street Eastman Rises 2% on Big High Low Close Columbia, vtc .... 42% 42J4 42% Consolidated 5 5 5 Cons, (lv) 1754 1754 1754 Eastman 14454 14254 144 Eastman, pfd ....152 152 152 Fox "A" 10M 10 10?i Loew's 3854 3754 38 Loew's, pfd 107 106% 106% M-G-M 28 28 28 Paramount 354 2% 3% Pathe % % % Pathe "A" 10 954 954 RKO 1% 154 154 Universal, pfd .. 3754 3754 3754 Warner 354 35i M Warner, pfd 20 18% 20 Board Net Change + 54 + Vt + 54 +2V* -254 + % — % + 54 -54 -X — 1 — H + 54 Technicolor Off xh on Curb Net High Low Close Change Technicolor 19% 18% 19 — 54 Paramount F. L. Bonds Up 6 Net High Low Close Change General Theatre Equip. 6s '40 ctf 9% 954 9% Keith E. F. 6s '46 76% 76% 76% + % Loew's 6s '41 ww deb rights.. 104% 104% 104% — % Paramount B'way 554s '51 53% 53% 53% + J4 Paramount F. L. 6s '47 86 8154 86 +6 Paramount Publix 554s '50 87 81% 8554 +4% RKO 6s '41 pp.. 30 30 30 Warner Bros. 6s '39 wd 57% 55 57% +254 (v) Paid this year. (Quotations as at close of April 26) Openings in Phila. Stir Up Exhibitors (Continued from page 1) studio, and local exhibitors are envisioning a merry war for patronage. Meanwhile, a new theatre is rumored for Frankford, at Frankford Ave. and Cottman St., while in Camden, the Valabow interests are finishing a new de luxe house, the Savor, which will seat 1,800 and have stage shows. Criterion Stays Dual A spokesman for the Criterion yesterday charged Olympic Pictures with "trying to pull a fast one" when it stated the theatre was dropping "Behind the Green Lights" for a single feature bill effective yesterday with "The Phantom Fiend", an Olympic release. The theatre added no such plan had been considered. as would those of Skouras and Randforce, whose present Fox Met operating contracts would be canceled under Fabian's plan. Judge Mack remarked that Fabian's plan stood to return him a profit of $3,500,000 in seven years. Fabian replied that while net earnings could possibly approximate that figure, he didn't consider it a profit, as charges for depreciation and costs of theatre maintenance would be deducted from it. The court reiterated its frequently expressed view that not enough cash was in sight for the Fox Met bondholders who, Judge Mack said, "continue to hold the bag under either plan," Fabian's or the Schenck-Fox Theatres' plan. The hearing will be resumed Monday with further examination of Fabian and with his associate, Greenfield, also being called to the stand.