Motion Picture Daily (Jul-Sep 1935)

MOTION PICTURE DAI LY Insiders' Outlook By RED KANN 2 MOTION PICTURE DAILY (Registered U. S. Patent Office) Vol. 38 July 31, 1935 No. 26 Martin Quigley Editor-in-Chief and Publisher MAURICE KANN Editor JAMES A. CRON Advertising Editor Published daily except Sunday ^and holidays by Motion Picture Daily, Inc., subsidiary of Quigley Publications, Inc., Martin Quigley, president; Colvin Brown, vice-president and treasurer. Publication Office: 1790 Broadway, New York. Telephone Circle 7-3100. Cable address "Quigpubco, New York." All contents copyrighted 1935 by Motion Picture Daily, Inc. Address all correspondence to the New York Office. Other Quigley publications, Motion Picture Herald, Better Theatres, The Motion Picture Almanac and The Box-Office Check-Up. Hollywood Bureau: Postal Union Life Building, Vine and Yucca Streets, Victor M. Shapiro, Manager; Chicago Bureau: 624 South Michigan Avenue, Edwin S. 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Sirica to New Britain New Britain, July 30. — John Sirica has been engaged by Michael Daly, as manager of the Rialto, New Britain. Sirica was formerly manager of the Lyric, Waterbury. Wall Street Slight Losses Mark Big Board Net High Low Close Change Columbia 73 7154 71J4 —2 Cons., pfd 15^ 15*4. 15J4, Eastman 148K 14754 148 — 54 Fox 1554 1554 1554 —'A Loew's 39K 38J4 39 — 54 Loew's, pfd 105 105 105 —14 Paramount 45£ 454 454 Pathe 54 54 54 Pathe "A" 1154 1054 1054 — 54 RKO 254 2J4 254 Universal, pfd .. 3554 3554 3554 + 54 Warner 554 5 5 — 54 Warner, pfd .... 38 3754 3754 — 25i Little Change on Curb Net High Low Close Change Technicolor 2054 20 20 — J4 Trans-Lux 254 &/t 254 Paramount Bonds Gain Net High Low Close Change General Theatre 6s '40 ctf 1254 1254 1254 — 54 Keith B. F. 6s '46 82 82 82 — 54 Loew's 6s '41 ww deb rights.. 104 104 104 Paramount F. L. 6s '47 98'4 9V/& 9854 + s/t Paramount Publix 554s '50 9954 9954 9954 + Va RKO 6s '41 pp.... 45 44 45 +154 Warner Bros. 6s '39 wd 7654 75 76 +1 (Quotations at close of July 30) FORMER Federal Judge *• Thomas D. Thacher, who is now a member of the law firm of Simpson, Thacher and Bartlett, which is fighting for handsome reductions in the $3,221,328 fees and expenses sought by fifty-three petitioners, is probably the most unpopular figure among all and sundry tied into Paramount's affairs these days. In dignified language which makes his contention not one trifle less understandable, Thacher, by brief submitted to Federal Judge Coxe, asserts the petitioners did not do nearly so much for the late bankrupt as they would convey. . . . ▼ Thacher, from this point on : "In presenting their petitions for allowances the petitioners lay great stress upon the profitable operations of the debtor corporation during the pendency of proceedings in equity, bankruptcy and reorganization. Counsel for the trustees, in their petition, claim credit in behalf of the trustees for an increase of $15,557,000 in cash of Paramount and its subsidiaries during these proceedings up to June 22, 1935. They emphasize a loss shown in 1932 of $19,945,569 as compared with profits exceeding $5,000,000 in 1933 and 1934 and $2,400,000 during the first quarter of 1935. These figures are estimates. . . . The increased market value of Paramount debentures and common stock during the administration of the estate is also emphasized." . . . T The trustees, then, claim their administration increased the company's cash by $15,557,000. Thacher asserts they failed to explain that cash settlements, in accordance with the reorganization plan, including expenses of administration and the reorganization itself, totaled $8,202,000 and, therefore, properly should be deducted from the $15,557,000 to a more true total of $7,355,000. He draws the conclusion with which you may or may not agree that the "company's cash position has not been improved by administration and reorganization except for cash retained as a result of non-payment of accruing obligations during administration (which is largely offset by the issuance of new securities) and from the proceeds of the sale of the new second preferred stock." . . . T Economic forces beyond the control of trustees and their counsel resulted in the enhancement of values in Paramount securities, Thacher continues. Therefore, he concludes : "It is quite out of the question" to credit the trustees for that rise in the values. Proceeding further along this tack is another excerpt from the brief : "We have had prepared and will submit upon the hearing a comparative tabulation from reliable sources showing the values of securities of leading motion picture companies at the dates upon which the trustees in their petition have compared the value of the securities of Paramount to show the increase in such value during the period of administration. The following results are significantly relevant to the contention that the various counsel in this proceeding were responsible for the present financial condition of Paramount : "The security values of Loew's, Inc., during the same period increased $46,000,000; Metro-Goldwyn Pictures Corp., a subsidiary of Loew's, increased $1,447,000; Fox Metropolitan Playhouses, a small chain of theatres, increased $5,800,000 ; Radio-Keith-Orpheum, one of the larger companies still in bankruptcy, increased $4,380,000 ; Columbia Pictures Corp., a very small producing company, increased $9,800,000 ; Warner Brothers Pictures increased $27,400,000. _ "The increased value of Paramount's securities was $31,378,000." T Thacher 's job, naturally, is to see reorganized Paramount pay out as little as it can, just as it is the ambition of the fifty-three petitioners to get as much of what they have asked for as they can wangle. Who is correct is something this department not only does not know, but does not care about especially. It found the latter day picture in the Paramount muddle of interest. That's why you get it this morning. . . . T Luise Rainer, about to demonstrate again the Cinderellalike aspects of this business by threatening to advance herself into stardom on the strength of one picture, "Escapade," is being tested for the role of Anna Held in "The Great Ziegfeld." Metro would produce. This Viennese girl, whose name the American public cannot even pronounce correctly, got a break when Leo and Myrna Loy developed salary trouble. Rainer substituted for Loy and Metro got a new shining light. Bergner-like in her histrionic tricks and demeanor and Colbert-like in her physical appearance, Miss Rainer is utterly charming and refreshing in "Escapade," a second look the other night convinced anew. Among other condents of delight, she does a ladylike drunk, champagne-induced, that is one of the most appealing Wednesday, July 31. 1935 Local 306 Members To Share Operation (.Continued from page 1) vorced itself from I. A. T. S. E. supervision will be held Aug. 7, at which time new policies proposed by the executive board will be decided. The executive board, consisting of Basson, Vice-President Frank Ruddock, Recording Secretary Herman Gelber, Frank Pineau, Edmund Bendheim, Louis Boritz, William De Sena, George Edwards, David Garden, Phil Grill, Maxwell Horowitz, Benjamin Morel and Anthony Rugino met yesterday to formulate plans for the coming year. These plans will be voted on by the membership. The board also heard individual grievances from more than 40 members at the all-day session. and amusing bits of play-acting to flash across this spectator's horizon in some time. . . . T "Practically the entire Paramount publicity department revolted last week and threatened to quit their jobs, being dissatisfied with the way the department is being conducted. They are not alone, for many of the big Paramount stars have voiced their dissatisfaction and refuse to cooperate with the publicity department." This appeared in the Hollywood column of one of the New York tabloids and becomes proper material for the X-ray. Emanating from the typewriter of the scrivener who has been explaining to the public whose business it is not how production tricks are worked, the comment runs from Hollywood to New York to Detroit. Because a Paramount theatre partner there insisted and succeeded in having the column pulled from the Free Press in the Motor City, the evidence seems to point to a campaign of retaliation leveled at the studio publicity head and his boss in New York. . . . T What the columnist may not know is that the studio publicist he is trying to castigate made effort through New York to persuade Detroit to lay off on the theory, which we think correct, that this business, or any integral part of it, has no right to attempt to foist a censorship on newspapers when it fights a censorship of its own screens. There are ways of talking out a problem such as this around a table or across a couple of drinks, using persuasion rather than threat. At any rate, the chatter writer is holding the publicity man responsible in Hollywood for what took place in Detroit and that mixes him up sadly and unfairly on his geography and his tactics. Aside from that, who among the public care whether the Paramount or any other publicity department is pinpricked by the urgings of revolt. Their interest, obviously, is in stars and their peccadilloes, not in press agents.