Motion Picture Daily (Jul-Sep 1935)

Friday, August 16, 1935 MOTION PICTURE DAILY 20th Century-Fox Merger Is Approved (Continued from page 6) At this moment our whole production schedule depends on action here." "Moreover," Kent added, "deals have to be made when they can be made. Twentieth has something to say about it, too. We can't leave them suspended for four or five months." V The Sperling recommendation was defeated by a vote of 2,032,610 shares to 264 shares. Kent then made answer to every objection to and criticism of the plan which had been made. He pointed out that when he entered Fox in April, 1932, the company owed $40,000,000 and "the question then was whether the company would live or die." "If I had known as much about it then as I do now," Kent added, "I probably wouldn't have taken the job." He reminded" the stockholders that if Fox had gone into bankruptcy in 1932, "and it didn't only because there were some of us to fight against it," stockholders would have had their entire equities wiped out. "You have something today," Kent said, "because there were a few of us with guts then to stop that." Again, addressing himself to those who had criticized the new salary provisions made him under the merger, Kent declared that he "could have written my own ticket" when he entered Fox, "so badly was the company in need of experienced manpower," and that he voluntarily cut in half what was offered him then. What he finally accepted, he said, was a salary of $133,000 for his first year, and drew only $66,000 of that, putting the rest back into the company's treasury. His second year he drew $77,000, Kent said, and has not yet drawn what his contract entitled him to. "Have No Apology" "I have no apology to make for the job I have done," Kent said. "You may think so, but there are a lot of stockholders who don't." Kent next emphasized the impor tance of manpower in production and its peculiar value to a film company, admitting while he did so that the personal services of Schenck and Zanuck might well be considered, as an opposing stockholder had charged, "the principal assets of Twentieth which Fox would acquire." "Loew's became the leading company in this business," Kent said, "only through a merger that brought them Mayer, Thalberg and Rubin Take them and Schenck away and I wouldn't give you 10 cents for the whole company. We pay Will Rogers $8,000 a week, and we make a lot of money on him. That's the kind of business you're in. "Production needs men with imagination and production brains — men. with an idea who can make a $1,000,000 picture out of it tomorrow and cash in on it in 60 days. You can' put a price on talent like that Schenck and Zanuck are, probably the most valuable assets in this deal Personalities such as these don't growin bunches like bananas." Turning to Twentieth's unamortized film negative assets being acquired by Fox, Kent said that only one of them would show a loss of as much as U. A. Gets 33% United Artists receives 33 per cent of the gross of every picture it distributes, Joseph M. Schenck, former president of U. A., stated yesterday at the Fox stockholders' meeting in reply to questions put to him by a stockholder. Schenck added that his salary had been paid by United Artists and that he received no salary as president of Twentieth Century Pictures. ley Temple, who is under a six-year contract ; Janet Gaynor, engaged to make two films, possibly three ; Warner Baxter, scheduled to make six over an indefinite period. Scouting published statements that these players were not living up to their contracts, Zanuck said there "is no intimation from any of our stars they are not completely satisfied with their affiliation with this studio." $75,000 and that only one or two others would show a loss, and this would be "much less" than $75,000. 'Many of Twentieth's pictures are just now going into general distribution," Kent said. He said that the average return on Twentieth's pictures in the two years of the company's existence had been twr» and one-half times their negative cost and described this as the best record in the industry. "A return of two times the negative cost is exceptional," Kent said. "With the merger," he resumed, "I think we have the best studio setup in the business now. We wanted their personalities, their trade mark that was skyrocketed to prominence in the industry and that exhibitors ask for. Their pictures have been especially good abroad and ours have not. Twentieth's record in England is the best I have ever looked at. Will Rogers doesn't mean a thing abroad. Janet Gaynor is weak outside this country. We get stars that we need to sell our pictures abroad and we get the manpower we need. All these things will make more money for stockholders, not less. Denies Putting Up $500,000 "Schenck wanted us," Kent resumed, "because we were the only company with whom he could make an alliance that was not in debt. Whoever says we have to put up $500,000 to pay Twentieth's obligations doesn't know what he's talking about. To suggest that Twentieth might have needed a 77-B reorganization is ridiculous. There never has been a company in this industry which has made such a record as theirs in two years. They can borrow all the money they want at rates just as cheap as we can get. If they did have a large cash balance it would be no inducement to us. We are trying to build more earning power. This is the finest deal ever put together in the industry and I talk as a stockholder as well as president of the company, because I have many times more stock than all that has been spoken against the plan at this meeting and it was bought with my own money." An adjournment was taken until two o'clock today, although in the absence of a court decision on the action brought by Mrs. Fox it is believed another adjournment until some time next week will be taken. Z. 7\ ('Zeno') Briggs Dies on West Coast Kansas City, Aug. 15. — Z. T. ("Zeno") Briggs, 55 years old, former president and founder of the Briggs Photo Supply Co., died Tuesday, at the Cottage Hospital, in Santa Barbara, Cal., it was learned here today. Briggs Photo Supply, which was regarded as one of the largest photographic supply firms in the United States and the largest sales company of its kind in the West before it was sold in 1929 to the Eastman Kodak Co., grew from a small business which he started while a student in Midland Lollege, Atchison, Kas. The firm was sold for approximately $400,000. Briggs had been living in Los Angeles since the sale of his business. He is survived by his widow, Mrs. Phora Briggs. Leonce Perret Is Dead Pakis, ! Aug. 15. — Leonce Perret, French director, 53, died today. "Koenigsmark," which he was directing at the time of his death, will be completed by Maurice Tourneur. Perret began his career as a stage player. He started in films with G.B., working in Berlin and London. In 1925 he made "Madame Sans-Gene" with Gloria Swanson in France for Famous Players. Mrs. Freedman Dies Mrs. Anna Freedman, mother of William Freedman, purchasing agent for Fox Film, died early yesterdayafter a lengthy illness. Funeral services will be held today from Riverside Memorial Chapel. Mayer Holds Myrna Loy Is in Default (Continued from page 1) which he said tend to show her in. default. Mayer stated the company had exercised contractual rights by discontinuing salary payments. The M-G-M studio head added that any time Miss Loy determines to return to the studio the gates will be open, "but she is still under contract and we shall enforce our rights to the utmost in contradicting Miss Loy's statement that her services have been continually available to M-G-M." He added Miss Loy has been constantly absent from the state of California and the studio never subscribed to cancellation of her contract. New Contract for Rogers Hollywood, Aug. 15. — Will Rogers has been signed to a new contract with Twentieth Century-Fox covering 10 pictures over a period of years according to a wire received today by Darryl Zanuck from Sidney R. Kent in New York. The message also clari fied the contractual obligations of other company players — namely, Shir U. A.-Geller Case on "Cellini" Is Settled United Artists settled its claim against Louis Geller of the Palace, Jersey City, yesterday, without going before the New York arbitration board. Geller had contracted for "Affairs of Cellini" at a rental of $60. Later he refused to play the picture. Under the terms of the settlement, Geller will get two reissues for the $60. B'way Sees Revival Of Cross Picketing (Continued from page 1) march until late in the evening. Exhibitors viewed this as a direct attack on Loew's, which has its headquarters in the same building. RKO's Palace, on the next street, and Loew's Mayfair, were not picketed, indicating that the first move was designed for attention of Loew executives as they emerged from their offices after working hours. Meanwhile, Local 306 continued mass picketing at the Times Square, Liberty, Globe, Central, Park and Circle. Reports were current that the circuits had walked out of the negotiations with the union, but these were scotched on all sides. It was stated that circuit men and 306 representatives were tied up all afternoon in the wage scale conference. Dietrich Gets Post Columbus, O., Aug. 15. — Governor Martin L. Davey has appointed Dr. Edward Dietrich, Bucyrus, assistant director of education, succeeding Joseph Fichter. By virtue of this office, Dietrich becomes assistant head of the censor board. The appointment is in line with the report at the time Dr. E. L. Bowsher was appointed state director of education Tuesday. Marx, Lukas Teamed Hollywood, Aug. 15. — Harpo Marx and Paul Lukas have made a deal which will take them to Budapest on a four weeks' stage engagement in the fall. AIR CONDITIONING CHARTS that represent standard practice in air conditioning for motion picture theatres. Practical advice on how to attain the best atmospheric conditions for your house winter and summer. Devised to be put on the wall for constant reference. Available until the supply is exhausted at 25 cents each, payment with order. Write direct to QUIGLEY BOOKSHOP 1790 BROADWAY NEW YORK CITY