Motion Picture News (Jan-Feb 1922)

1103 e b r u a r y i 8 , 1922 famous Players-Lasky Absorbs Allen Theatre Holdings in Canada { bout Fifty Theatres Reported to Be Involved in Huge Merger rHE Canadian holdings of Allen Theatres, Limited, representing about fifty moving picture theatres om Coast to Coast, are being absorbed v the Famous Players Canadian Coriration, according to an announceent made at Montreal on February 6. ie huge merger has been approved by e directors of both companies, it is rented, and will be completed as soon as areholders of both companies ratify the al. This ratification is assured, accordg to George Rotsky, managing director Jule and J. J. Allen in Montreal. The ansaction forms the greatest theatrical •al in the history of Canada. This coriration will now have about eighty movg picture theatres in cities and towns roughout the country. The actual cash involved in the transacxn is between four and five million dolrs, it is announced, and funds to cover e cheque of $1,250,000, being the first New National Distributing Corporation Announced PLANS for a new national distributing organization came to light in Indianapolis, Ind., last week with the filing of papers of incorporation in the office of the Indiana Secretary of State. The name adopted is the National Cinema Corporation. This announcement is contained in a news report just received from the Motion Picture News correspondent at Indianapolis. The report adds that the company is to be backed with unlimited capital as financiers of national repute are interested in the organization. The incorporators are E. M. Mathews and T. F'. Vonnegut of Indianapolis and W. E. Rothermel, of Chicago. An announcement given out in Indianapolis declares that the plans of the company include the opening of branch exchanges in twenty-six cities. The organization is incorporated with a capital of $250,000. None of the original stock is for sale, it was announced. Resident managers will be located in New York and Los Angeles, according to the announcement. An entirely new method of centralized distribution is being planned, it is stated, the idea being to eliminate as much as possible the present high prices of film shipments from the exchanges to the theatres and return. In addition to the twenty-six exchanges, it is explained, there will be placed in every city of advantageous location an office to facilitate the shipping of films and accessories; sales units and branch managers will be situated only in the original twenty-six exchanges. The announcement also declares that pictures will be purchased independently, and that while contracts have been signed with several producing units, their product will be subject to screen examination with the privilege of rejection. Powers to Be Managing Director of R-C ARRANGEMENTS have been completed by the R.-C. Pictures Corporation, by which Patrick A. Powers has become financially interested in the corporation and its subsidiaries and will occupy the position of managing director, according to an announcement made by R. S. Cole, president. It is the intention of the corporation to immediately enlarge its sphere of operations and to arrange for a still larger plan of production and distribution than has already been announced. payment in the deal, have already been placed in the bank. The new Allen Theatre in Cleveland Ohio, which was regarded as the first of a chain of Allen theatres in the United States, is not included in the purchase, while it is understood that the Allens will continue to operate their moving picture exchanges, through which Goldwyix, Educational and other releases will be distributed throughout Canada as before. The Allens, with Mi*. W. P. Dewees of Vancouver, B. C., also conti*ol the disti'ibution of Fii*st National features to Western Canada. This arrangement is not disturbed, but the subfi*anchises which the Allens, secured from First National for each of their theatres in Eastern Canada, with the exception of Ottawa, Ontario, are to go with the houses which are being ti*ansferi*ed. The absoi*ption means the termination of a gigantic theatre building war which has been waged during the past three years between the Allens and the Famous Players Canadian Coi*pox*ation. These companies ei'ected and operated competing theatres in many cities, but they used different methods of financing for the construction of the houses. The Famous Players Corporation announced that they did their own financing, being backed by sevei*al prominent capitalists, while the Allens oi*ganized individual companies for practically all of their new theatres which were financed on a popular basis, the public being invited to invest in preferred shares, common stock being offered as a bonus. At one time the Allens had no less than fifty-five theatres, but several of their houses had been disposed of during the past year. The Allens also secured an option on theatre property in Leicester Square, London, England, and it was intended to ei*ect a large film palace there, but the option was permitted to expire, according to reports from London. The Famous Players Canadian Cor poi*ation has Adolph Zukor of New York as its president, and Mr. George P. Bickel of Toronto, a noted capitalist and mine owner, is the vice-president. The managing director is Mr. N. L. Nathanson of Toi*onto, who is also managing director of Regal Films, Limited ; Eastern Theatres-, Limited, and subsidiary companies. Other directors include Mi*. J. B. Tudhope of Orillia, Ontai'io, a manufacturer and financier, and Mr. Sheppai*d of New York, a banker. The Allens entered the moving picture theatre business with their fathex*, Mr. Ben Allen, at Brantford, Ontario, about 14 years ago, when they opened a store show. This was soon followed by store shows in many other cities and towns in Ontario. Eventually they moved to Calgary, in Western Canada, where they built the first of the large moving picture theatres in the Dominion. Other large filnr houses were erected in Western Canada, and then the Allens returned to the East to open Canadiatr headquarters at Toi*onto. This was seven years ago. Lai*ge Allen theatres were built in numerous cities in Ontai'io and Quebec, handsome suburban theati*es being built in practically evei*y district of Toronto. The Famous Players Canadian Corporation, in the meantime, erected a chain of Capitol Theatres fi*om Montreal to Vancouver and developed a combination foi*m of moving-picture, nlusic, pi*ologue and gx*and-opera entertainment to a high degree. The Allens did likewise, reconstructing a number of their lai*ge new theatres to provide facilities for the staging of operatic, dancing and other features, including elaborate prologues. Inquiries at the New York headquarters of the Famous Players-Lasky Corpoi*ation elicited no i*esponse from any of the departments on the Canadian transaction. Mr. Zukor had just left for the Coast and could not be reached. S. Kent was also repoi*ted to be out of town. Pathe Files Suit Against New York Censors PAPERS were filed on Thursday, February 9th, by Pathe in an action against the New York Censor Commission, the outgrowth of deletions ordered by the Board on a Pathe News reel. Lewis Innerarity, general counsel of Pathe, made the announcement of the institution of the suit. The action is based principally on the fact that the Censor Board took exception to certain scenes of bathing girls shown in the News reels and ordered them out. This occurred soon after the Board started functioning. he Booking Guide + a file of Motion Picture News solves your Booking and Exploitation Problems