Variety (Sep 1933)

VARIETr riC¥«BES l^esdaj, September 26, 1933 Par Hearings Over Bonuses Etc^ Referee Curbs ZimV Qiiizznig jLegal action to recover bonuses paid Paraiinouht executives in 1^29 and i930j togetlier with the H36,Oo6 paid, Sidney R. Kent .Sunder settle-; ment ,o£ hiis contrabt 'nritU » is threatened -Samuel Zirh, bond- holder attorney who has legally harassed Par tor a long time. Zlrn h^s ;;gone into both, the - State and Federal courts on. more than a dozen Qccaafons in an attempt .to prove troublesonn^ to Paramount, its trustees and the referee there- uiide^r in bankfuptcy. Henry K. pa,vi^- who has. up to. now h61d Zirii in tow more than any other attorney '\ reprieseintin^. bQndhQiid.ers: attorneys/presided With art Iron hand at last yreek'B meetihg at-which Zirn strugrgled to embarriass Paramount, through its general counis^l, ; Austin C. Keough, and- frequently gavfeled the' attor- ney 'down because . of the nature of his questioning; Keough's. showing up, In substi-^ tutioii for Ralph A. Kohn, at the outset angered Zini, because,' in. his own wotds, ?Keough ' refuses to. re- member anything,' and his efforts to exaniine oh the Columbia Broad- casting sale suid ' other . matters which he believed. to be iii'the in- terest of Stockholders were no more effective, as' Referee Diavis ruled out.this.line of questioning. ^t's-ln -ihe. Record Le$ Kaufman with Col ': lies Ka:ufman« nephew of . Adolph Zukor, has joined Columbia in an exploitation capacity. "With- Paraniount many years in advertisingr. and exploitation, last at the Par, 1^. Ti, Kaufman has beicn vacationing this suihmer in St, Louis, honie of wife's folks. One of the angles in. connection with independent attorneys' cin such questions as the CBS transaction is that these deals have been gone byef before, on examination. by trustee attorneys, and papers, placed ■ on the record, although at that time attorneys such ;{tS Zirn and Saul. B. Rogers were not given an opportunity to cross-examine. They- look , for that opportunity now and are ruled against-by the referee ber cause, at this. late date, it looks-like an encumbrance of the record, with a lot of data oh transactions which already ^a!y6 been explained. Zirn not only attacked the large bonuses paid Pir execs in good tinies as 'Iboting',' because, these earnings 'shoxHd have gone to the stockholders, but- by ''inlplici^,tipn trie"d to make -it appear - that tiie $20a,00Q settlement of S. R. Kisnt's contract (of -Whlbli ■$135,000 ..- was paid) was agreed to becaiuse they wanted . to . 'keep .his.,: mouth shuL' Zirn couldn't Understand -why $200;- 000 yras. paid- in eettlement ot, a contract, having two;:and a half years to go, whereas. It hie worked it out the amount paid -would be only around $240,000. Papers in the A. C. Blumenth^i fection, settled by Par for $36,000, were admitted into evidence, but not read nor examined by opposing counsel, at last week's hearing. Counsel is now permitted to ex- amine the papers placed' In evi- dence, the same papers which .-were taken from public acoess' In the courts through a special stipulation, signed by a Supreme Court justice to allow that*. ^Because of the vol- uminous nature of the piapers, cred- itors or; counsel did nOt 'aSk thefr public reading before the referee' lleairfirgs" will be resumed at 10:30 a; xn. tomonw (Wednesday). Majestic Dishibution Not Set for Chicago Chicago, Sept. 26. Setup for local distribution of the Indie Majestic product still in the air. Cost, of the franchise for the Chicago • territory is causihff most of the states-righters . here to, hack away. Likely that MiijcStic may have to .set up its\own distribution ofUce here to take care of Its flickers., . ... Ben Judell ofllce which iiad the pictures - last yiear not hot for the Vproduct. this season because of :the rates, particuld,rly since'vthis zone has tossed but double features., Un.r derstood^ ho-\yever, that Judell still Jias '^j^iji.O OO—uP-fo^ ^^^^ ^fr anch ise Which had not yet hoen- returnedT Lillian AJbertsbn to Par Hollywood, Sel?t. 25. Lillian Albertson, after years as a Coast statre. producer, joins .Para- r mount as dialog writer on west- '•rA's. TTor 'Thundering Herd.: 5 Union Officials ibrested in B'klyn: Homicide Ckirges ive officials of,-the Empire State ;Moti6n Picture Operktbrs' txhlon were arrested in Brooklyn, fl; T., on Saturday (i3) and held for exr amination on charges of homicide. The quintet irb Arthur Fairkash, ipiregident; James AdeWso,- p.; 'William Sontosera, recording secre<- tary< Ernest Muro, treasurer arid Joseph Blatt, walking delegate. .'The arrests followed the killing of the JSIegro night watchmtin the "Windsor theatre; 4001 15th avenue, Brooklyn, early Saturday morning and the extensive destrUcUort of property. , Not alleged that, these men were the alctuial offenders, but gathered in as heads of the Union vvJiich has been at outs with the theatre since the Empire projectionists were ousted in favor of Local 306 men. The watchman was found locked in a closet by his relief and'rushed to the hospital, where he died Satur- ,day afternoon. His skull had been fractured and he had been bitdiy gaished. Property damiigo- included the"de- struction of three sound, projectors, the sound screen, torn hangings and. the sleishihg of about 300 uphol- stered seats. INDIE EXHIB, WILBY, GOES OUTSIDE OF NBA Washington,. Sept. 25. • R. G. W^iiby, Georgia and Alabama independent theatre oVrher; is the first codist to ta,ke Deputy Admin- istrator Rosenblatt's adyice to gb outside the URA with a Droblem. He declared that the attorney general's office how has the charge which- he made at the open code hearings, about tinloh labor and in- timidation. Through the attorney general's office Wilby says he un- derstands his complaint may again come, upi before the NR as a busi- ness problem to be treated ,under a clauste in the industry's, code, if such a course is fovind pbsslhie. Trendle Detroit Tbeatre Thing Agsuii Postpcmec Further postponement on ratlflca- tlpn of the Gebrge W. ^Trendle part- nership to cover iDetroit,. Mich., which John Balaban w&nta to dfs place by trustee, consideration of a new offer he will,, make, and other matters,., has. been taken to Oct. 9 by Paramount Piibllx.' Trendle xame .into- New York to attend the meeting; not Icnbwlns^ in advance , of plans to ^stpohe. In. addition to. the ■ Detroit part nershlp, 8icheduled° to have come .i|p Friday (22) for jratiftca,tion wais the K^rl Hoblitzclie - setup -with Par in the iSputh and several' ihlribr niat- ters, including approval of com- promise of - a claim -with Walter Reade. "The Trendle and. HoblitzelI& deals may have been okayed by this late date had not Balaban put In a hew offer .direct with, truistees. of Para- mount and 'retaihed counsel in New York, Nathan Burkan, to represent hlhi...: ■• ■ ' Dallas,' Sept; Kiarl. ..-Hoblitzelle acquired .<>n Thursday (21) the publix Meiba in Dallas, JWorth in Fort'Worth, and Metropolitan and Kirby in Houston,, when Sbutiiern Enterprises' receiver in federal :COurt returned these houses ' to the bondholders^ trustee, Straus of :Chicago, frbm whbm Hbblitzelie secured long lea,ses. Biifay-Harlem Day-and'Diiter Cosdy to Riv Estimated that the Rivoli, N. T„ losses conservatively bet-wieen $8,000 and $10,000 through booking by United Artists' of 'Emperor Jones' day-and-date with a colored 'house, in Harlem, the Roosevelt. It marks the first tinie in the memory of Broad-way shO-wmen tha,t iany pic'- ture, getting .first run on Broadway, has day-and-dated In any other house within street car distance of Greater New York. .'Jones'- went Into the Roosevelt, up in Harlem, an independently operated pictui'^e house scaled at 26c. against the Ri-voli's higher ad- mission,' and up in colored town will get $10,000 oh its first Week. It opened in Harlem Tuesday night (19), S{(.me date as premiering for $5 a throw at the Rivoli. Although thei unusual day-and-' date booking costs the Rlv a pos- sible $10^000 and SRO balcony busi- ness, the Broadway houSe_ will Hn- ish its first "wee\c at $37,600, tre- mendous business. With the $3,000 taken on the Tuesd^ty night (19) premiere and turned over to char- ity, the gross would be $40,600. Par Theatre Net hofit Aven^ $100,000 WeeUy in Past 2 Months Biuh, Pine Swap with Rodney Rush on his way to New York by that time, Bill Pine leaves New York Sunday (1) to return to his pbst. at. the Para" mount studio, He goes back by .way bi the Canal. Bush leaves Hollywood ort; Thurs- day (28) to return to his. home of- fice post-'ih,'^e"Scrveffising. depart- nieht, after changing spots with. Pine, iinder Piar's plan, to inter- chahge h, b. and studio; men in the ad-pub divlsIoh.\ 'ADEINE' MAY BE R-B'S NEXT; PROD. IN MIAMI Kern-Hamerstein 11 pper- etta,: 'Sweet Adeline,' which Arthur 'Hammerstein produced sbiAe years ajgb, may be filmized by. |uionte Brice and Bill Rowland this ;winter, Brice has- his eye bh shooting in Miami durinig the Winter. Rpwiancl-Brice-Laurence Sch-Wab screen Version bf 'Take a Clhance' for Par release .is currently in the cutting process. Film, was brought in for $225,000. Rowland and Brice's first for Universal, 'Mbonllght and Pretzels,' came in for $133,000, in- cluding a $25,000 pre-shoo ting/fixed charge for Karl Freurid, director canneranx^n,. and Stkiiley. Berger man,,- U's ■ supervisor; both brought east from. Hollywood.. . ' " If some!niore - bt the eastern-made musicals continue up to par, the eastern production, -idea—particu-: larly in vie-w of the mininfium 'budg- ets.T-may- catch, on. The advantage sb fair as'talent is concerned ig ob vious. Hollywood, Sept. 25. Factional differences have arisen in the Academy , over the NRA set- up with J. Theodore Reed, jtresident of the: organization, and now here, at loggerheads with Lester CoWan, executive secretary. Who. Is attend- ing the Washington hearings. Scr?ip started in Washington While Reed ->yas there.over 'the question of who had the authority to .speak ifor the Academy, and resulted. in Reed leaving the capital to return to HoU. lywbod to lay hlS.PPUt before thb board of gbvernors. Following this meeting a -vyrire. was sent to Washington askinir,' COwan to return immediately unless urgent business kept him there. Cowan ■wired back that the urigency was sufficient to keep him there to the closer-of-the=sessiGhs-and-in=a'"state'^- ment to 'Variety' stated that-guys in Hollywood are trying to knife him.. Cowan denied vehemently the charges that lie is laying down on the job and described himself as fighting his h<>ad off. Asked, if he and Reed were frjeni^ly, he hesi- tated before- replyingl *Woll, we're okay.' In looting Reed had Intended to resign, but he cooled before the session stai-ted. Reed had returned from Washirig- toh when he found CoWan had let- ters from, the chairman of five Academy branbhes investing . him' (CJowan) with full authority in case of a disagreeineht with Reed.; Th<e actual split between Reed and .Cowan came in Washington when Cowan produced his letters of au- thority, which Reed questioned via telephone tb Hollywood. He found out they were genuine and grabbed ,a rattler. Cowan is. also understood to have told Reed he -was there to check on hlih and sei&: that Reed did hot play into the producers' hands. At Thursday's nrieeting charges were hurled that Cowan mlsrepre- :sented=his'reasonsrtorfgettl.Hg^^^ letters and the various brahch heads burned, with the result a wire was sent to Cowan in Washington -virtually odering him home. Reason that Reed changed hiis niind about resigning was pres.surc brought to bear On him by.members who feared It would blow up the Academy and affect its chancos at Washington. He agreed to po.<itpone action until Cowan returns, at leaHt. PICKEtING O.K. IN MINN., ANTI-IN JUNCTION TEST . St. Paul, Sept.- , lU' a cohtrbversy which has at- tracted hiatlbnar attentioh In union circles. Judge Gustavus Lbevlnger bf- local-' district court Thursday (21) handed down a decision which Wprf for the anti-Injunction law enacted at the. 1933 session of the Minnesota legislature Its first .test casei The Judge denied the Forest the- atre Its niQtion. lor an injunction to prohibit the picketing'of the the- atre as -unfair to organized labor.' The decision declared that the man- agers' had violated a written agree- ment with the union,- to einploy union operators and that , the union had a grievance justifying the dec- laration that the theatre was un- fair to organized labor, and -that the picketing was without force or frayd. The court held, that the defend- iints were, justified in accusing the plaintiffs as being unfair to organ- ized labor from the ti^e they dis- charged the moving picture, ma- chine operator , furnished by the union to the time of the expiration of the contract; and the court held fiirther that while the terms 'unfair'' br 'unfriendly' cuhnbt be based mierely upon any attitude or feeling but must, be grounded on Some act which is, harmful or..-disad-Vanta:-; geous . ,,tp_ organized labor, the breaching, of the contract and deny- ing a contract liability must be con- strued as a harmful," hostile act dls- advaiitagcous to . organized labor. The court held further that Until the Claimed breach is disi^osed of by a judgment or an adjustment, the Court/ under the statute, ought not to interfere.. The court goes further and, in effect, gives the Forest theatre an option, for 15 days after notice of the decision, to eniploy a union operator for the term of the ag^reement referred to, or , subject itself to further pibket- ing by the local union until the ob-^ ligation of the thefttVe under Its agreement is fulfilled. Leon O, (grosland, busincs_s ag ent 3S6, hailed the decision as a sweep- ing victory, 'Wo carried this fight because it involved a principle,' said Crosland. 'We wanted to serve notice on eVery theatre ow.ner in the State that a union contract- is ju.st as binding as any other duly apknowlPdgcd contract. Wo wanted to cstablLsh the fact th.at an .Tnll- injnnotlon l.'iw moans just .what it .says.' , All albhg; the Paramount line, &n^ since the ; rebrganlzatiqn dt Par'«i' theatre properti'es got under., way, with the trustees and S. A. Lynch, acting, for, the latter jeind th creditors, a iharked ImproyeDient in Inconae Is noted. The Par. theatres are now stated to be In the black, for an average net during, the past two .. months of around $100,000- weekiy. The figure is. an estimate but downtown the Improvement, Is openly admitted. Cpnditionis .ha'\re helped plenty but at the same tlmie, reductions in fixed charges and other reorganlzatibn im" orovements halve been achioved. through Lyhch's committee,; so. thiat, today the Par thea.tres, as.^vis, are~ meeting conditions. More than $5,- 000,000 in reduced rentals have been achieved. That includes reductions negotiated prior to Lynch's ehtrance into the picture. It Is hoped that with the Cooperation pf the land-: lords the fixed charges on prbperties sb far .not reduced.,will be. cut and that Par will be enable to record sbmething lilfe .$9,OOO,QO0 or more In the v^ay of. a rental reduction in the ajgrgregate over its 800 theatres In the U, S. .. That's a 50% cut, for t>ar's rehtals ha-ve. amounted to art 'anhtial figure of Around $18,()po,000. Should this be achieved, besides, other rbd'Uc- tions In other branches of the Paramount stronghold, .handbd -downtown not to be a t&r 'cry for the Par stockholders to achieve" a; 100% satisfaction on' fheir clalims as approved. The par theatre net began tp ap-. pear around the. first week in July which is about when the firsti big affect bi the reduction, in- fiied charges began to be felt. The past three Weeks or so, however, the. grbsses fell ott but with the; wsiLy the reorganization is progressiner and If cbnditions continue oh . the upgrade outside the b,6.,. the Par theatres have a chance pf staying in the black definitely. '' Par's distribution income is also > stated tb be on tho upgrade, iJ-• though given as not equalllpg the improvement which the theatres are showing and .. comparatively ^ is behind the theatre departnieht's weel?ly net. that's authoritative, although unoffielal. The PJtr's foreign division under Emil ii. Shauer is .running- close to 60% . better than last year and in England alone Par's foreign-film igrosses .are siaid to run to around 26,0.Q0 pounds or roughly $125,000 weeiilyy In the German speaking couhtries and in Czechoslovakia, the . Income is not so hot. That's as expectecl for ail th6 biz, generally speaking. AH of wliich, plus conditions, are Impelling a new outlook at Par, Which looks to retain all Its the- atres everjrwhere, . where feasible. That Includes ^^ngland where Par had . nb Intention of letting its. houses go«,as wag reported once. Just a couple of lots in Britain for- merly bought to build on may go. In the U. S., except for the partner- ship agreements so far agreed upon and awaiting creditor or coUrt ip-. JJ^jely no_mqre partnership _ ^^rebflieh^^^ The present attitude downtown sLnd uptown at Par is knOwn to he against further, partnership deals and Instead to retain all the hpuses i^itact Under. Par*s own opera,tIng banner or the banner of whatever name the^reorganlzed company; may assume later. The Idea is to draft the best poa- sible. mahpo-yvfer for a localizefi and territorial operating scheme. Ap- parently the chain idea is Out a& the bankers long ago decided, but likely to retain a certain home -oj^be di- rection which may be mostly flna.ncial over the men In the fleldi WAENEE PLANS COAST 0.0. Harry M. Warner plans to visit the coast studios In October, date - tentatively set as the 14th, Further code developments alome would force a postppnement. Vincent Set East Frank Vincent of the Harry Kd- Ington-Vincent ag:ency in Holly- wopd came in on a quick trip to New York with a view to ost.ab- lishing. a New York office. Rosalie Stewart's brother. .Stuart Stewart, will proliably be pla«.ed in charge. Vincent returned Sunday (24) by plane. -