Motion Picture Daily (Oct-Dec 1936)

MOTION PICTURE DAILY Wednesday, November 25, 1936 Ostrer Denial Of G. B. Shift Dazes London (Continued from page 1) a move of any description until the Ostrer stock actually is transferred. This, of course, has not taken place. Maxwell is understood to have checked Isidore's statement with Mark Ostrer who is declared to have stated he could not believe his brother would have made the statement attributed to him. Furthermore, Maxwell, it was learned today, views Isidore's comment as damaging to him and to his interests and is reported pondering his future course in the light of the shipboard interview from New York. Creditable sources today interpreted Ostrer's mission to America as one designed to personally outline to Joseph M. Schenck and Sidney R. Kent G. B.'s financial position. Financial circles here incline toward the opinion that the consolidated balance sheet will reveal heavy losses, due largely to high negative costs. A depressing effect on Gaumont securities is not unexpected, therefore. Whether this will have any bearing on the attitude of Twentieth Century-Fox toward its 49 per cent interest in M. and B. is, of course, purely conjecture. Beaverbrook Seems Involved Another angle concerns Lord Beaverbrook. Despite the newspaper publisher's statement, made by his secretary in New York last Friday, that Beaverbrook's interest in the film industry was receding, the report was revived today that he had made a recent offer to Kent to buy 20th-Fox's interest. He, furthermore, is said to have been slated to act as a friendly intermediary between Isidore and Joseph M. Schenck in the American negotiations. Any such plan, however, has been abandoned with his return to London. He is aboard the Bremen, now Europe-bound. Maurice Ostrer is sailing for New York on the Queen Mary Wednesday, but, as in the instance of Isidore's departure, no statement as to purpose is being advanced by G. B. The assumption appears obvious, however, that he will participate in whatever discussions his brother may hold with Schenck and Kent. It was Maurice who is popularly believed to have raised objections after the initial negotiations had been made by Isidore with 20th-Fox and Loew's. Maxwell Solution Sought If the purpose of Isidore's visit to the states were to be summed up briefly, authoritative opinion here leans strongly toward the impression that it is designed to have the Ostrers straighten out with their partners, 20th-Fox, difficulties besetting consummation of the "A" stock deal with Maxwell. In other words, those who subscribe to this theory maintain that it is not Maxwell's task to bring about an accord with 20th-Fox, but the Ostrers'. In the meantime and without official reaction, the impression is very firm here that Maxwell actually does hold an option on the disputed 5,100 shares and that, finally, he will acquire the possession of it and thus control His First Contract (Continued from page 1) treasurer. The elections are for a oneyear term. Bernstein and Rubin are the only two officers now holding long term contracts. They were voted by the stockholders in 1932. Action for the purchase by Loew's of half of the 49 per cent interest Twentieth Century-Fox held in Metropolis & Bradford Trust, holding company of G.B. has been deferred until S. R. Kent returns from the coast studios. Gehring Gets New Post at 20th-Fox (Continued from page 1) manager of the Eastern Division and William J. Kupper as manager of the Western Division. The new division was made necessary, Clark says, by increasing sales during the past year. J. P. O'Loghlin, now district manager in Canada, will succeed Gehring as Kent Drive manager and will assume his new duties following a meeting of district managers in Kansas City next February. Moe Levy, formerly in charge of the Minneapolis office, will be district manager of the territory comprising Minneapolis, Omaha and Des Moines in the new central division. R. A. Higdon has resigned as Oklahoma City manager and has been succeeded by Charles Clark, now in charge at New Orleans. The Kansas City meeting will be attended by home office executives and Edgar Moss, T. H. Bailey, George A. Roberts, J. P. O'Loghlin, Ward E. Scott, Harry G. Ballance, Herman Wobber and Levy, district managers, and Clyde W. Eckhardt, Lester Sturm, J. H. Lorentz and George Landis. 20th-Fox Lease for "Lloyds" 71/2 Weeks (Continued from page 1) some retakes before the print is shipped east. "One In a Million" will open Dec. 31. "On the Avenue" will, follow "Hidden Power," a G. B. picture, with Sylvia Sidney. "Lloyds of London" also will open at the Carthay Circle in Hollywood tonight. of G. B., a situation never doubted here until Ostrer arrived in New York and issued statements for publication. Calls London Slant "Rubbish" Advised of the London cable yesterday over the telephone, Isidore Ostrer, president of G. B., said he was not interested, and that "the statements by supposedly close friends of John Maxwell are rubbish." "Wait until Mr. Maxwell makes a statement," he said. "If he made the statement that he had a five-year option on the 5,100 A' shares of M. & B., there would be some point to it. "I am not interested, because it is nonsense," he added. "I know the facts as they are." He plans to leave for Palm Springs tonight. Three Censors Mexico City, Nov. 24.— Films designed for release in the Federal District now are faced with three censorship bodies, the national Federal board, the Federal District censor and now the Confederation of Workers of Mexico, which today announced its intention of passing on films, according to the Associated Press. Particular object of the Federation's attentions will be Fascist propaganda films, especially pictures of Mussolini and Hitler. May Not Start The New RKO Until March 1 (Continued from page 1) some time in March, it is believed, however. The dominating creditor groups, significantly, have already given their tentative approval to the plan as it now stands and, under the provisions of Section 77-B of the Bankruptcy Act, which govern the RKO reorganization, the approval of the majority claimants of the debtor company, must be fully recognized by the court. The groups in tentative agreement on the plan as it now stands include the major RKO debenture and stockholders' committees, in both of which the Atlas Corp.-RCA-Lehman Bros, interests are dominant factors. In addition, Rockefeller Center has approved the plan with certain contingent provisions and, although its claim is treated separately in the plan, it is the largest unsecured creditor of RKO. It is also known that other important unsecured creditors have given tentative approval to the plan. Opposition Likely Opposition to the plan can come only from minority interests if the present situation remains unchanged. The probable sources of opposition are the independent stockholders' committee, a committee of preferred stockholders of Orpheum Circuit for whom the plan makes no provision, and one or two independent, committees of general creditors, including the one which represents the claims of the Karl Hobitzelle interests and the U. S. National Bank of Denver, and holding in all about $1,500,000 of claims. An attack on the treatment accorded holders of old RKO debentures, to whom the plan offers a new debenture of the same face amount and two shares of new common stock for accrued unpaid interest of $24.57, is expected to be made by the independent stockholders and other opposition forces. The contention will be, it appears, that if the RKO secured gold notes outstanding in the amount of $725,000 are paid off by the RKO trustee in advance of the reorganization, the old debentures would be deprived of their secured position and in consequence would not be entitled to the favorable treatment accorded them by the plan. It would be urged also that RKO stockholders, to whom the 7 Mexico Censorship Puts Ban on Three (Continued from page 1) politically objectionable to the county The new board includes a chairman, vice-chairman and secretary, a chief and sub-chief of department, one special official and 10 special agents. In accordance with the rules governing its actions, the board will ban pictures which : Wilfully insult or ridicule Mexico, its Government, people or their manners and customs, or of those of nations friendly to Mexico ; attack the rights and aspirations of workers, the right to strike, or humiliate the worker ; discriminate against SpanishAmerican peoples or color ; that eulogize exploiters of labor or offer apologies for them; foster war propaganda, or that for oppressors of the poor and against the "just desire of the workers to protect their interests" ; glorify gangsterism, social vices and crime; joke about or give the lower middle class a defeatist spirit, and attack the spirit of the family. * * * Radio is being used to a large extent by local exhibitors, with daily selling via the air ranging from 10 to20 minutes daily by most of the first run houses in Mexico City. * * * With the opening in the near future of the Cine Encanto, large neighborhood house, the total in the Federall district will be 67, most of them wired. Mayer, Levine Form Royal Film Exchange Manny Meyer and Ben Levine have organized Royal Film Exchange, Inc., and will release the following in the metropolitan area : Eight Tom Keenes, six Herman Brix sport features, eight Tom Tylers, six action dramas, eight Rex Bells and two serials, each in 15 episodes or available as a feature. "Shadows of Chinatown" is the first and "Blake of Scotland Yard," the second. plan offers one share of new common for two of old, would then be entitled to better treatment than that now accorded them. The opposition would also urge that reorganized RKO would be benefited ,by an elimination of the secured position of the old debentures as no issue of new debentures would be required, as a result, and the company would be relieved for the future of the obligation of meeting fixed interest requirements. The question of whether or not the old debentures would be deprived of their secured position by an immediate retirement of the outstanding gold notes appears to have but little legal foundation, however. Nevertheless, the issue, if raised at the hearings on the plan, would have to be decided and could have, at the least, the effect of delaying court confirmation of the plan until the question was out of the way. A motion by the RKO trustee to pay off the gold notes has already been made to the court and a hearing set for Dec. 23, jointly with the creditors' hearing on the plan. The opposition from the preferred stockholders of Orpheum Circuit, if it materializes, would be led by Isidor J. Kresel, recently retained as attorney for the committee.