Motion Picture Daily (Oct-Dec 1935)

Friday, November 8, 1935 MOTION PICTURE DAILY Spitz to Make Study of RKO As First Step (Continued from page 1) proceed from there. From what_ I know of the company's affairs its present management has done a good job during the past two years. The company is in good shape and morale is good. I don't know who deserves the credit — maybe it belongs to all — but the fact remains, a good job has been done." Spitz said that while RKO manpower might require "organizing," he made it clear that he did not mean by this that any "shake-up" was in prospect or that he contemplated bringing any new names into the company. "I have no one in mind," he said, "to replace anyone. I certainly would not pre-judge a situation with which I am wholly unfamiliar. I know only a few of the RKO men and those are fine, capable executives." Called from Chicago Spitz related that although Atlas and Lehman officials, whom he did not name, had spoken to him "once or twice" in recent weeks about the RKO presidency, he "had no idea" of accepting it. He was called here from Chicago for a meeting on Wednesday and at its close discovered that he was the designated head of the company. He said he had not yet been inside the RKO offices.^ Spitz will go to Chicago today to wind up his business affairs there and plans to return here about the middle of next week to begin his new duties. He pointed out that the actual emergence of RKO from court supervision is at least more than two months away, as reorganization proceedings require that creditors be given 60 days notice of the intention of presenting a plan to the court, which has not been done. The Atlas-Lehman Bros, interests which recently acquired one-half of the RCA interest in RKO and an option to purchase the remainder completed the arrangements for the designation of Spitz as RKO president succeeding M. H. Aylesworth. Aylesworth becomes chairman of the board, replacing David Sarnoff, RCA head, who is withdrawing from the company. No Formal Election Held No formal election has been held and one may not occur for some time, as the board of directors, which elects the officers, has not been reconstituted yet to include the members representative of Atlas and Lehman Bros When this has been done, probably shortly in advance of the RKO reorganization, the formal elections of Spitz and Aylesworth to their new posts will occur. For the time being an authoritative RKO official said yesterday, "titles will not mean much." "The idea," he added, "is to set the company in line for normal operating procedure as quickly and directly as possible." While RKO remains under court supervision its board and officers are restricted from taking important action of any kind without court author ization. Active, solvent subsidiaries are not subjected to this direct super vision, but the injunction over the Schwalm Reelected Hamilton, O., Nov. 7. — John A. Schwalm, manager of the Rialto, local unit of Southio Theatres, Inc., was reelected to the City Council Tuesday. He was the only Democrat to make the grade. parent body while it is in process of reorganization explains why "titles do not mean much" at this time, it was pointed out. Spitz has been attorney for Balaban & Katz, Paramount theatre subsidiary in Chicago, for many years. In 1932, when Paramount was nearing its financial crisis, Sam Katz brought John Hertz, then a B. & K. director and now a partner in Lehman Bros., into Paramount to aid in the financial reorganization of the company. Hertz became chairman of the Paramount finance committee and brought Spitz with him into the organization. The latter rapidly added to his duties and authority in the organization as Katz became increasingly interested in production. With Katz's resignation. Spitz assumed most of his duties. Hertz resigned from Paramount early in 1933 and Spitz a few months later. It is generally believed that Spitz was sponsored by Hertz for the new RKO post. Option Not Exercised Hertz is a member of the Paramount board, as is Floyd B. Odium, head of Atlas. Charles McCulloch, Chicago banker and a director of Paramount and B. & K., is also a close friend of Spitz's. Odium and Hertz, or their associates, are destined for places on the board of reorganized RKO. The Atlas-Lehman combination has not yet exercised its option to purchase the remaining half of RCA's interest in RKO. This option, however, extends for two years and it is accepted as a foregone conclusion that it will be taken up in the near future. RCA's holdings were comprised of 1,259,463 shares of RKO common, or 48.6 per cent of the total outstanding, and $9,786,655 of the 10-year RKO debentures, or 84 per cent of the amount outstanding. The Atlas-Lehman half interest in these holdings was acquired for $5,000,000. Shutdown for Warner Hollywood, Nov. 7. — The Warner studio, theatre and executive offices here will close until 1 P. M. tomorrow in reverence for Benjamin Warner, for whom funeral services will be conducted in the morning. The Downtown will not open until the afternoon. Defeat Seen For New Code Legislation (Continued from page 1) tary code plan was seen to be doomed to failure because of labor's objection to the inclusion of wage and hour provision on the ground that no means of enforcement had been provided. A regular meeting on Dec. 4 of Secretary of Commerce Roper's advisory business council, is expected to bring forth a pronouncement of the views of industrial leaders on further business control which may profoundly affect the deliberations of Berry's conference, although it is denied that the subject has been scheduled for consideration. Berry's effort to revive codification is viewed in Washington as a bid for prominence in the Roosevelt administration. Undertaking the task after others had declared it hopeless, his success in getting support for new legislation would make him the logical man to administer any new law passed. Failure will result in his passing out of the picture, as have Johnson, Richberg et al. It is asserted, however, that a majority of those who will come to the conference next month will voice loud objections to further control, setting the stage for the rejection by Congress of any such legislation proposed by the President. By adopting labor union massmeeting methods when other officials were trying to build up support by working quietly, it is charged, Berry has tacitly accepted responsibility for success or failure of the effort. Combines Duties Hollywood, Nov. 7. — Elmer Raguse, Roach sound department chief, will combine cutting department supervision with his regular work. He succeeds William Terhune, who left the cutting department for a Roach directorship. Loew's Takes "Harmony" Herman Gluckman, head of the Republic exchange, has closed a deal for a run of the Mascot feature, "Harmony Lane," over the entire Loew circuit. The picture ran eight days at the Astor. Paramount Pep Club To Resume Activity Activities of the Paramount Pep Club, Inc., will be resumed. A deci sion to this effect was reached yesterday at a meeting of the board of governors at the Astor Hotel. Edward A. Brown, chairman of the board, named a committee to nominate a new president and vice-president to fill the unexpired terms caused by the resignations of Dr. Emanuel Stern and Chris Boute. The elections will be held in two weeks. Loew's Votes Extra 50c Directors of Loew's, Inc., have voted an extra dividend of 50 cents a share on the common in addition to the quarterly dividend of 50 cents. Both are payable Dec. 31 to stockholders of record Dec. 13. In March of this year the regular dividend rate was raised from $1 annually to $2. Look for 1,000 at Variety Club Party (Continued from page 1) general manager of Western Union; Herman Robbins, president of National Screen; Sam Dembow and George Dembow; Mayor William N. McNair; William F. Rodgers, eastern division sales manager for MGM ; Charles Margiotti, attorney general of the state; David Lawrence, secretary of state; George Skouras, Mayor Frank Couzens of Detroit, Jules Levy and Eddie Lowry. The entertainment will have six or seven bands and between 40 and 50 acts. The affair will be held on the 17th floor of the William Penn Hotel. As in the past, the retiring chief barker will be honored. This year he is Mike Cullen. Other officers are : Frank Smith, first assistant chief barker ; Art Levy, second assistant chief barker; Dr. L. G. Beinhauer, dough guy; James G. Balmer, property master; C. J. Latta, Joe Blowitz, Steve Cox, Al Barnett and George D. Tyson, canvassmen, and Harold Lund and Dr. A. Wise, delegates to the national convention. Auten Is Named To New Australia Job Capt. Harold Auten has been appointed foreign manager here of the Australian Greater Union Group of Companies. He will work under Stuart F. Doyle, managing director, representing Greater Union Theatres, Ltd., Cinesound Prod. Ltd., British Empire Films, Ltd., and Associated Distributors, Ltd. Auten will leave soon for Australia to confer with officials on the recently imposed quota and survey the situation in general. Bay State Betting Hits $34,597,878 Boston, Nov. 7. — In the few months of pari-mutuel betting in this state a total of $34,597,878 has been wagered, according to official report. Horses, although not running at night, as did dogs, led with four meets which took a total of $19,028,793. The total for dog tracks was $15,569,085. Richardson's Mother Dies St. Louis, Nov. 7. — The mother of Edward Richardson, assistant manager of Loew's State here, died in Akron this morning after a long illness. Richardson left to attend the funeral. Boston "Dream" Opening Boston, Nov. 7. — "A Midsummer Night's Dream" opens here tomorrow night at the Majestic. Society leaders and civic notables are to attend the opening, which is completely sold out under the sponsorship of the Esplanade Concerts Funds group. Opens Exchanges Portland, Ore., Nov. 7. — Joe Merrick has opened Far West Exchanges branches here and in Seattle. George Jackson is sales manager, and Ernest Erickson is booker here. Inquiry on Film School Assistant District Attorney Unger yesterday ordered an inquiry into a film school, operated by Harry Pettit, following information received from women and children with Hollywood aspirations. Open Zeidman Offices Hollywood, Nov. 7. — J. L. Schlaifer, distribution head of Zeidman Pictures, is personally establishing company exchanges and making franchise deals throughout the New England, New York and Illinois territories. Tennessee House Opens Erwin, Tenn., Nov. 7. — Erwin's new $10,000 Capitol has opened under the management of Fred Gorman.