Variety (Sep 1933)

TueBda^t September 12, 1933 p I ct E $ VARIETY - SELLING DAYS Qearing Path for Famous Theatres To Take Over P.E. After Reorg. Paramount-Publlx expects to take up all the outstanding prov- able claims ag:alnst Publix Enter- prises on the basis computed rough- ly at around 30c on the dollar, thus clearing the path for reorganiza- tion of P-B, largest of Par's the- atre subsidiary, comprising around 250 houses and eventually taking this group out of its present bank- ruptcy state. Final reorganization of Publix "Enterprises may come in about two weeks after a plan for reorganiza- tion of same is presented to the • court by the Par trustees. Under . this plan, a new company. Famous Theatres Corp., may succeed Pub- lix" Enterprises. The plan is for Famous Theatres to take over the P-E assets. A Quick Cleanup Altogether marks a pretty quick cleanup of the Par theatre situation by the trustees and the S. A. Lynch J-Reorganization Committee, Tvhich has had this matter in charge. There were around $16,000,000 in claims against Publix Enterprises but around $9,000,000 of this Is In future rents as claimed by land- lords under leases. Legal interpre- tation would have such claims for future rent as futile. This would reduce the amount of provable claims to around $7,000,000, most of which has been "taken up by P-P. Paramount itself is a creditor'of Publix Enterprises to the amount of around $6,000,000, which would .indicate that if and when the pres- , ent P-E reorganization plan gets approved by the court. Paramount itself will be the largest stock- holder in Famous Theatres Corp., new theatre operating company. Famous in taking over the assets of Publix Enterprises is calculated to be an Independent operating flrn although related to Para DUPONT. BEHIND LAB Financing New Plant Davidge for Roy Hollywood, Sept. 11. Dupont is going into the labora- tory biz in opposition to Consoli- dated. Will finance the Pathe Company in the building and operation of a new laboratory for Roy Davidge on Santa Monica and Bronson avenues. Webb of Pathe Is the nominal party providing Davidge with finances. Davidge will do all the lab work and finance production of independents whenver required to hold business in opposition to Con- solidated, who specialize In East- man stock. Sydney Walkout Ends Schulberg, Zukor Friendship Hollywood, Sept. 11. Long business friendship and as- sociation of Ben Schulberg and Adolph 25ukor in Paramount is now at an end. Schulberg, now abroad, is desirous of getting a release on his 1933-34 production contract for eight pictures. He Is also endeav orlng to get a similar waiver on the contract of Sylvia Sydney, which has a year and a half to run More Data Than Ever Be- fore Came Out of Late Through Houses in Re- ceivership —' In Bigger Spots Selling at Percent- ages from 35 to 20% SOME EXEC INFO TOO Picture booking and buying a new story this season. It's not a repeti- tion of the tale of last year or the year before, it is new procedure based on new facts. The filrtn salesman is no longer able to wave the trade mark and get the name on the contract. He's got to sell the product. And the ex- hibitor has to buy, so honors are even. It's tough for both, but it's get- ting the product over on a business basis without booking pulls or camouflage. Leading distribs are all for pref- erential bookings. No longer a matter of flat rentals for as much as the exhib would give and as little as the distributor would take. So many pictures at 36%, so many at 30, 25 and 20%. If the product is standard, it's a fair basis. If not, it's not so good for the exhib. And this year the selling season is more fact and less guesswork. It's against the theatre nut and not the nut plus the home office charges Salesmen now know -what the nut is and what has been going to the home office. He knows that the producer-exhibitor got the most for his product from other circuits and paid as little as he could on its own Zukor, Kent, Wiseman, Hertz Among Men to Be Examined by Attorneys In Company's Bankruptcy Action A. J. BALABAN BACK Probably Accepting One of Two Show Propositions Before Him Chicago, Sept. 11. A. J. Balaban, originator of the Balaban & Katz circuit, who re- tired from show business three years ago, moving himself and family to Swltzerla:nd, Is home and will return to the show business. A. J. has several show proposi- tions, to take charge of all stage entertainment for B. & or to head the William Morris coast agency. LOCAL MUSICAL STOCK AT FOX IN ST. LOUIS St. Louis, Sept. 11 Something new in the way of bait for cinema customers is about to be tried by the Fox, C.OOO-seater, It is a permanent local musical stock company to play tabloid versions of better-known musical company and vaudeville shows weeks. Although operated to some extent Ralph A. Kohn, only Paramount official thus, far called in-examina- tion of the bankruptcy and on the stand many times since last spring, may be followed by Adolph Zukor, Austin C. Keough and other officials of Par, in addition to persons not on that company's payroll. Latter would include two former Pair executives, Sidney H. Kent and John D. Hertz, as well as Sir' Wll^ Ham Wiseman, of Kuhh, Loeb fip Co., and Maurice Newton, of Hall-, garten & Co., bankers. While It had not been expecteil ^ from within that bankruptcy ex-^*" amination of officers for explana- tion of all important acts and ac- tivities up to time of adjudication would include anyone but Kohn, plans of Samuel Zlrn, creditors' at- torney, call for appearance of others. Long waiting his opportunity and attending all creditor or examina- tion meetings, Zirn, it has been in- dicated, will have his opportunity to play questioner on Friday (16) before Referee Henry K. Da,vls. At a hearing last week, Saul R. Rogers became the first of attorneys Inde- pendent of trustee counsel to do any but minor examining. After drawing from Kohn admis- sions and round figures as to bonuses paid Par executives in good yearSi Referee Davis will give Rogers another half hour on Friday (16), with Zirn to follow. Latter will put In an official order for ap- pearance of Par execs other than Kohn whom he wishes to question, 20 Half Hours Just how rar Referee Davis will permit,Zirn to go in his proposed program of examination is not in- ership. 1ST RUN SHORTAGE STOPS DUALS IN PITT. Pittsburgh, Sept. 11. Shortage of first-run product sending Davis, downtown, and Sheridan Square on their separate ways, with former house switching to single features and latter going single also but on a split-week policy. Davis and Sheridan Square for the last year have been showing double features on a day and date policy. PAR AND GERMANY Par Men in Berlin to Get Line on Conditions London, Sept. 11. John Hicks, Jr. and Eugene Zukor, heads of Paramount's foreign de- partment, left here Friday (8) for Berlin, after having completed deals which supposedly alleviated Para- mount's theatre situation in Eng- land. No details on what kind of deals the couple arranged, as yet, but they came over seven weeks ago with the intention of not moving until Par had no more theatres to worry about on this side. Couple now go to Germany to figure out what, if anything, can be done oh the Hitler question. Paramount, gave notice to its entire stafC of 150 in Berlin when it be- came apparent some months ago that Hitler would tamper seriously with American film biz personnel. Nothing further than that's been •done, awaiting a visit of the two execs who will either order a com- plete move out of Germany or de- vise some method of continuing business here in accordance with the new conclillohs. Walter B. Cokell, Paramount treasurer, mentioned in last week's Vauicty as having gone to London to help straighten out the theatre thins, changed his mind and didn't Ko. M.ittor seems to have been sct- \.\<'(\ l>ef(>i*c lie could get there. able to give Schulberg his release, but to be holding out on the re- lease of the actress, being still burned at her walkout on 'The Way to Love,' the Maurice Chevalier picture, in the middle of produc- tion, claiming her physical condi- tion would not permit her to labor. Zukor, it is said, was very much disappointed at the stand Schulberg took in the matter of the Sydney walkout. He, Emanuel Cohen and others requested Schulberg to in- tercede, but the latter told them It was Miss Sydney's affair and not his. At another' time Schulberg is credited with having said that Miss Sydney's health came first and must be protected, after the studio of- ficials and emissaries made numer- ous requests for him to use his in- fluence with the actress. Schulberg Is due back in America around Oct, 15, and In the mean- time overtures on his behalf were made to other producing compa- nies for connection as a producer, with a possibility that Miss'Sydney might also be available wherever he went. Radio was' one of the stu- dios propositioned. ONLY 2,000-SEAT HOUSE IN 3,000 POP. TOWN Hershey, Pa., Sept. 11, Hershey Community theatre has opened in this chocolate, center as part of the commemoration of the 30th annivei\sary of the founding of the firm. Theatre is part of a $2,000,000 structure also housing club, library, swimming pool, hotel, etc. Dressing rooms have running water and baths. House is expected to draw from 10-mile radius, v Said to be the only 2,000 -seater in a 3,000 town. Opening bill was 'Pilgrimage' and a Fanchon & Marco show, with Zelda Santley, Tom and Betty Won der, Lanny Ross and the Kitaros. Stage end ran 90 mins. House will play road ahows when tlit'y are available. to ascertain the facts. A single share of stock permitted the holder to sit In at creditor meetings and ask questions. Distributors have facts and figures on other producer circuits they only guessed at before. With rentals on a new basis. Heads Moved Aside from the bankruptcy hear- ings there have been the shifts. Sidney Kent knows the Paramount Inside. So does Clark, Ballance, Dailey and others.,, Phil Relsman can tell about Universal, and Franklin can contribute data to RKO on West Coast. Film buyers know, too. It looks as though more 'pictures would .be sold on trade paper advertising, than on flambuoyant statements. On percentage the exhibs have a partnership Interest In the pictures and feel that they are entitled to know, through the advertising, what is coming along and how it is going over. Right now the bulk of the con- centration is on some 25 key spots, Presently an army of once unem- ployed salesmen will take the mes- sage to the sticks. They'll know what they are talking about. The day of selling the product with three rousing cheers and a lit- Ihe flag waving is passed. It's a business now. and playWfif •FOX--fttmsr*tiTC«tre--ka»- no connection with circuit, being independently owned and operated. House has been In receivership for several months and has suffered most of the time tor want of box- office pictures.. Last week was one of its biggest weeks with a stage condensation of 'No, No, Nanette,' with former Mu- nicl,pal Opera singers in the leading roles. Attraction held over for sec- ond week. That gave Harry Greenman, the manager, the idea of making the policy permanent. Ex-Muny stars, including Guy Robertson, Use Mar- venga, Doris Patston, Jack Sheehan and Clifford Newdahl, agreed. They contemplate condensing a musical comedy for every other week. Next is announced as 'Queen High' for week of Sept. 22. In between the stars will do an act in a variety show for which ad- ditional names will be brought In. NEW APPOINTEE, REOCH, WILL HEAD RKO REALH NO PARADE PROMOTION Floats Also Out for NRA in NYC Sept. 13 March Filmdom is preparing to do its part In the NRA demonstration parade in New York Sept. 13. Meet- ing of major and Indie publicists was held In the Hays office Sept. 6 under the auspices of William Brandt, indie exhib, who is mas- tering the march ceremonies for the government. Boys and: girls were. told. th;py mu.sn't use the parade as a meahs to exploit their season announce- ments; that floats and anything on wheels Is out. Idea, as stre.ssed, Is to get out banners, bands, stars and walking delegates. Usher armies of both Roxys were first to be lined up. Alex Rooch, named to head the realty section of RKO, upon Louis Cohen's eventual departure from that company, is getting his bear ings ,in the RKO home office. From indlcation.% Reoch Is a;n appointee of David Sarnoff, RCA chief. So far as known, Reoch's experience In theatrical real estate has been 11m Itod, Reoch came into RKO practically unannounced, with inquiry reveal ing that many of the company execs were unaware of Roech's appoint- ment until aftor It had been made. Cohen is pre.icntly connected with RKO in an advisory capacity, hav- ing resigned, his post as real estate head, effective Sept. 1. Made his resignation some time ago In order to go into bu.sine.ss for hini.self. Ho was* invited to remain after this to enable KKO ta clean up many pend- ing problems, which he eonsenfed lo Ji> bef'jro Ileooh arrived. OT<rw«a-~i&3ffBrff,- also reprtijeiitinff- bondholders, the time he desired. Zirn wants eight or 10 hours, split in separate sessions of 30 minutes each. At the resumed examination of Kohn Friday (15), latter has prom- ised, if he can collect the data by that date, to produce specifi^c figures on salaries and income of five execa who were bonus-faVored, as well aa date on bond purchases and all available information on the settle- ment of the A. C. Blumenthal bond suit of last fall. Kohn revealed, in admitting bonuses aggregating millions, that percentages of the net profit each, year were paid over to five execu- tives in 1927, 1928, 1929 and for four months in 1930. They amounted to 7% of net those years for Adolph Zukpr and Jesse L. Lasky; 6% for Sidney R. Kent and Sam Katz, and 3% for himself (Kohn). Percentages on bonuses were pro- vided for after payments were made on the outstanding stock, and in 1929, when Par showed a net of $14,000,000, the total amount ot t)onuses was $2,225,000. Up to yesterday (Monday) Kohn had not furnished Saul Rogers with the exact individual bonuses paid Par executives, along with other Information, that he is iiuppo.sed to have ready for the record Friday (16)^ While at last week's hearing Kohn stated a total of $2,225,000 was paid in 1929, he did not break the amount down* but at the percen- tages Indicated rc/r tTie five .sharing In profits, the amounts would bo $727,000 each for Zukor and Lasky, $527,000 each for Kent and Katz, and $327,000 for Kohn. Rogers stated yesterday (Monday) that unless he can get all the in- formation he desires on resumed examination of Kohn Friday (15) he win Insii^t on appearance of Zukor and otlier officials for qije.$- lior.ing. GEORGE PEATT EAST BOlTCn) Hollywood, Sept. 11. George C. Pratt, vice-president In charge of production for ERPI, en route via .S. S. Pennsylvania for New York to attend license fee con- ferenc*';-,