Motion Picture News (Oct-Dec 1930)

\ ovem her 1 , 19 3 0 Motion P i c t ii r e X e w s 33 Coast Promoters Arrested After Expose by News (Continued from page 2i>) as vice-president and treasurer of the company, approached Richard Pierson and Charles Carroll, Cincinnati youths, who were seated outside the Roosevelt Hotel in a car bearing an Ohio license. Wharff struck up an acquaintance with the boys and gave Pierson his card, asking that he call at the picture offices and see him within the next day or so. Pierson did, and upon visiting Interstate is said to have been told that he was an unusual type and well qualified to play the second important masculine role in the picture. They are said to have told Pierson that the picture was to be made on a scale as elaborate as "The Big Trail," "Fighting Caravans," "Cimarron" and other outdoor pictures of epic proportions. They told him, it is said, that the picture would be filmed on a large ranch in Texas, which would necessitate a location trip of about eight weeks. They also are declared to have informed him that many of the highpriced free-lance actors of Hollywood had been engaged for this production, that a director of prominence had been secured, and that the producer and his staff were well qualified to make such a picture, having been "important" figures in the film business for the last 20 years. The company, while only established a short time, was out to make a picture that would rank it as one of the outstanding independent organizations in the film capital, Pierson is asserted to have been told. Asked to Invest $500 After Pierson was reputedly advised of the wonderful opportunity to become a screen success overnight due to the magnitude of the production and the association with important people in the film business, he was informed the corporation was being organized on a cooperative plan, so it would he necessary for him to invest $500 in the venture. For this investment he would receive 50 shares of stock with a par value of $10 per share, and a note signed by the president and vice-president and treasurer of the company for $500, thus making his investment a loan and a gesture on his part to show his faith in the company. After hearing these reputed promises, which bade fair to give him a start as an actor, Pierson discussed the proposition with William Crouch, western representative of Motion Picture News. When Pierson told the story in all its detail. Crouch inquired as to the status of the company and its plans. Suspecting it might be a promotion scheme to obtain money from film-struck people, Crouch talked the story over with Jack Lawrence, of the Los Angeles Examiner staff, and asked him to investigate the records of the company. This wras done, and Lawrence discovered that Wharff, the vice-president, had served a term in the city jail for operating a fake radio concern. Binney, it was alleged, had served time in various jails throughout the country and Canada. At the time of the interview, Crouch had questioned the officials as to their plans, and the discrepancies Costly Ducats Ottawa — Receipt of two complimentary reserved tickets and an engraved invitation for the opening performance of the Capitol, Halifax, N. S., Friday evening, October 31, has cost Manager Joe Franklin of B. F. Keith's Theatre, Ottawa, just $50 in cold cash. FrankPn, a former Halifax exhibitor, felt the old town urge and went out and bought himself the necessary railway ticket which represented an investment of the half a yard. Franklin opened the last theatre to be built in Halifax, 16 years ago. in their story prompted further investigation. Detectives -Marshall and Swan, Deputv Corporation Commissioner Frederick W. Bahls and State Corporation Auditor George Castle were notified of the findings by Lawrence and Crouch, and they decided that a thorough investigation should be made. They asked Crouch to go to the firm with Pierson, offering to supply the money so that Pierson might obtain the role in the picture. If possible, they were to obtain samples of the stock certificates. While Crouch and Pierson were being "high pressured," the officers walked in and made the arrest. The papers, business records, stock certificates, contracts and other properties were seized by the police for investigation. When confronted by the law, Binney first put up a bold front, but broke under the rapid-fire questioning of the officers and admitted he had taken various sums of money from numerous individuals, giving them shares of stock, unsecured notes, and an offer for a role in the picture. He admitted also that, while he owned a large share of the company's stock, he did not have one cent of cash invested in the company and neither had Wharff. Assets Almost Nil The cash assets of the company amounted to a very few dollars and the only property was some motion picture equipment listed as lights, cameras, reflectors, etc. Just where this property was located Binney failed to mention. It was disclosed during the investigation that Wharff, the vicepresident and treasurer, had not been paid his weekly salary of $35 for the past three weeks, and that the company finances were, at the time, very low. When Crouch and Pierson first visited Binney's offices. Binney is alleged to have stated that Pierson was to receive a salary of $35 a week as an actor. Binney had previously told Pierson that he would pay him $50 a week, while Wharff stated that $75 would be his weekly wage. The men told of having 35,000 feet of "spectacular" film, which they had purchased from the government. This film, they stated, was obtained for their exclusive use and had numerous scenes of buffalo hunting and Indian fights. They said they were going to use process shots to bring members of the cast into these scenes, showing them hunting buffalo and fighting Indians. Binney is said to have stated that he had signed Don Terry, film player, for the male lead in the picture, and that Aileen Ray, screen actress, intended to sign to play the feminine lead. Binney stated that Terry had, as had the others in the cast, invested in the company. However, when questioned by the police Josh Binney and R. E. Wharff in Jug Without Bail officials. Terry stated that he had not invested a cent in the concern. Miss Ray, when questioned, said she had been offered the part but had immediately turned it down. The other members of the cast, with the exception of one or two character people, are mostly unknowns in the film business. On the first visit Binney told Crouch and Pierson that Reeves Eason was to direct the production. The second visit, however, brought out the statement that Neal Hart was to serve in that capacity. Binney allegedlv claimed that the financing for the picture was coming from a rich rancher of Texas, on whose estate the major portion of the outdoor scenes would be shot. Other exteriors would be shot on the 20-acre ranch which the company is said to have owned near Victorville, Calif., and for interiors, space in local studios would be rented, he is credited with stating. Incorporated in Nevada The company is reported to have been incorporated under the laws of the State of Nevada for $100,000. The stock issue, it is alleged, was underwritten by a "Campbell investment company of Omaha," and stock was at the present time being sold throughout the Middle West. All of the stock was issued from a Nevada office, which made it unnecessary to have a California license. When money was invested by those offered parts in pictures, they were offered the personal stock owned by Binney and Wharff. and given a six-months' note for the amount invested, this making the deal apparentlylegal, although no cash or financial security backed the transaction, investigators charge. The men, following the arrest were lodged in jail and refused bail. The district attorney's office then started to question the various individuals who had invested money. One woman of about 50 years of age, who had been promised a leading role in the picture as her initial screen venture, said that she did not wish to sign a complaint because she would lose her chance in pictures. Since the alleged producers have been in custody, numerous individuals who claimed to have lost money in other ventures sponsored by this pair are said to have made statements to the police regarding their losses. When asked what release the picture would have. Binney stated it would be of such magnitude that it would be the best plan to roadshow it throughout the country. Various other people were interviewed by Motion' Picture News concerning talks they had with Binney. A comparison of these interviews showed many discrepancies in the producer's story of his film activities. Binney stated that for 20 years he had been an important figure in the motion picture and amusement world ; that he was formerly an actor with Mack Sennett ; a director, writer and producer of motion pictures and had a most esteemed and untarnished record as a film personage. A query of some officials in the major companies failed to bring out any information from them, as to just what he had achieved.