Variety (Mar 1934)

vAkiETy ES T«esd«y, Murch 6« 1934 Columbia Stockholder Contends Firms Pirosperity a Mirage and. in Suit. Queries Cos hmortance Insltiuation that Columbia Pic tures Corp., iinder the Gohn broth «rs' management, haa been tainted by a false sense of prosperity and that the company's prosperity, so fiar «.s stockholders are .concerned^ was illusory, is made in tt stock- holder's suit against the corporation. - Harry Cohn, Jack Cohn and Joe Brandt; . Action has been filed in the N. Y. Supreme Court and be- sides ah accountiner being' asked the plaintiff also wants to know the de- gree of importance which Columbia holds in the picture business. Supreme Court Justice McGeehan has erranted a motion on behalf of the suinir stockholder; Mrs. Emma Cohen,, for an excunination before trial of jack Cphn, vlcle-president and treasurer of Columbia, and through him examination by depo- sition of Joe .Brandt and Harry Cohn, and to-allow the plaintiff an examihatioii of ireleviint company books and records. Harry Cohn is ' president of Columbia, while ' J<>e Brandt Is. a former president of the compsmy. Ezamlnatlbii of Jack Cohn is sche^qled to take place March 12. 'the plaintiff records herself as a holder of 216 share? oif the common capital stock ot Columbia an<l vot- ing: trust certificates representine an cidditional 642 shares. The complaint charges that the defending trio. Jack Cohh, Harry Cohn and Joe Brandt, have, under the guise of salaries, bonuses and expense allowances, secretly and improperly withdrawn ezoessive suihs. iroin thei company, so. far as. being compa^ble with any rieasonr able compensations they were en- titled to for their services. Also, Mrs. Cohen "wants to know the na- ture of the Joe Brandt deal when he sold out: 16 the Cohn boys. AII«a*^>ons . General allegt^ions made by Mrs. Cohen in her complaint and which are denied by tihe defense are; (1) That ftccotints of thecom- pany, under the Cohn management,, have been kept In .A inanner^.to con- ceal, the drawings made by the de- fendants. (2) That, although thel company, had been projected as prosperous, no dividend payment was* miade on the common stock except during a period of less: than a . year and k. half from July 2. 1980, to Oct. 2, 1«31. (3) That dividends ceased 6ct. 2, 1931. (4) That for the fiscal year end- ing- June, 1931, Cblumbia over- stated Its income by $76t>,00D. (6) That for the fiscal year end- ing June, 1932, the company ap- parently issned one Btatement . to stockholders and another to the Gtovemmeht for tax purposes. (6) That the defendants, without the knowledge or approval of the stockholders, had the company agree to. pay the trio of defendants 25% of the company's profits in ad- dition to their salaries. (7) That half of the alleged total of $452,15o.66 in dividends distrib- uted to stockholders since 1.929 was exbltrarily valued. (8) That excessively large suins are charged to certain 'contingent funds' and 'surplus' accounts. Cohns' Salaries Complaint maintains, that the Cohns and Joe Brandt, signed a five year agreement contraict with Co- lumbia in June of 1929- whereby each was to receive equal salaries of $1,500 weekly, but it is alleged that since that time Ilarry Cohn's salary has been upped to 12,800 iireekly ahd' Jack Cohn's to $1,600 weekly. Hence, it is pointed out, the combined salaries of the two Cohns amounts to only $i00 less than the combined salaries whi(ih both Cohns and Joe Brandt collec- tively received under the manage- ment deal before Brandt sold .out to MrSi, Cohen's suit ofig{nany"aInied to have these salaries. redtkced to what they were prior to. the mah- asremeht contract. An Injunctloh was' asked, when suit was first brought, td restrain Columbia tcota paying the defendants more than what they had received prior to the '29 management deal, but this was denied by tha court last pecember.. In defense of the Cohn salaries,' (Continued on page 97) DnpoDt at Metro Hollywood, March 6. E, A. Pupoht, German director, brought over here . for Universal, Is now on the Metro payroll. He will direct a film when he can find a suitable story. Distribs Wake Up To Possihilifies in Skorts; Phsh &les After years of indUCerent sales rer sttts on shorts BObJects, distributors are waking up to the necessity for pushing this branch of Its film merchandise. Th€ majors are now goading their sales forces Into ac- tion,. In no uncertcUn terms placing It squarely up to the salesmen, linear Is^^ that If accounts are not continually pressed on shorts, the one . and two reelers will eventually cease to be of commercial impor- tance. Warner BhoB., to the forefront on at^. mtlon to shorts, fs spending from 26 to 60% more on Its <o ne and two-r reelers this year. TTB with other^ Is propagating that shorts have a distinct value.. Both Warners and Metro, with the purse 'strings loosened^ havt heeii using considerable color In the hopes tt forcing sales. The results a^e repbrted to be encouraging, ac- counts here and there taking heavier' commitments thim before. The ahswer the averagie salMmah previously, got was that a theatre was better off without ahy shorts aim Cartoons still «nJoy widest clr- ciiUitlon because of their novelty ahd convenience features as fillers, are conceded to be doing much to^ ward bringing shorts forward. Paramount at present Is In the mldtrt of a shorts drive. Among other things Par has suggested Is that salesmen try t<o get theatres to set aside a day a week for a full program of shorts, foUovirlng suc- cess of one Portland, Ore., saleisman Ih Inducing a house- In his territory to do that. • 1 Doo Readied Hollywood, March 6. Milton Krltas Is adapting Vlckl Baum'B 'I Give My Love' for B. F Zeldman at ITnlversal. Another production Zeldman Is readying for IT is 'Love Life of a Sailor,' b^njg: scripted by Dore Schary and Lipu Foster to feature Chestier Morris, Slim Summervllle and Andy Devine. 'I Give My Love' is Intended for Wynne Gibson. KEITH CLARK The Man with 1,000 Cigarettes Back after yearns American tour, Including Sari Carroll's 'Vanities,' Grauman's Chinese^ Hollywood; Capitol, Roxy. Paramount, New York. Playing G. T. C. and Moss Em- pires with George Black's . shO'W, 'You've Got Syeiythng,' also Pal- ladium, Holbom Smpire. -Conti- nental tour following. Representatives: Henijy Sherek and Fosters' Agency, - London. ' Remboscii Dedskm Leafes Majors Free Of Anti-Tinst Sdts With the Frank J. Rembusch case out of th6 way, the Hays organisa- tion for the first tltne In /lO years is realizing a breathing spell froin conspiracy actions by independents. Federal Judge Coxe last Thursday gave the majors an adrbltted sur- prise /when he elgnifled lt .wi>uid be unnecessary for them to defend the suit started by '^e midwestern ex- hibitor and. carried on .hy his son, Truman RembUsch. It took the Rembusch. side thriee weeks In court to get. itjs story on the record. iDtirlng that time com- pany heads and executives toolc the stand. Max D. Steuer, special trial counsel, made a motion for dlei- mlssal .which' iras Immediately granted. ^ RETAKES FOR DOnOMS' DESPITE OJL VERDICT Hollywood, March 6. Hays office and Fox crossed swords last week over 'Bottoms ITp.' After looking at the muslcar film Hays repis suggested modification of certain song and dance numbers. Fox appealed, and an impartial jury comprising Euianuel Cohen, Harry Cohn and Jack Warner, looked at the picture. Th'ey decided that while a bit warm In spots film was oke as Is. Despite this decision. Fox execs thought again' and sent the picture back for retakes. OmHAU TABBIES EAST Bob Glllham has postponed his coast trip a few weeks when he WiU be accompanied by Bill Pine. They will wait for the takepfC until Par has tentatively lined lip Its 1934-'35 program. Glllham was west In January, Radio Emphasized as Factor bi Spurt of Conunercial Films Chicago, March 6. Industrial pictures are on the upbeat. Badly crimped in the early stages of the depression by adver- tisers' tendency to eliminate all supplementary advertising, trend of the last six months has revived JiTOflte,. and^.pTMpect^ Some evidence that radio" has contributed to big business frlend- linesa toward business films. Hav- ing adopted successfully one amuse- ment medium, merchant' and trad ers have presumably more receptive to celluloid. This thought can bci tbrroborated by evi- dence up to a certain point, but Is partially weakened by a me- chanical fact without which the present prosperity of business films been-rehdered- -their would probably not have come about. That mechanical fact is the perfection and simplification of pro- jection for sound-on-film so that l^ss trouble and expense goes With that end. Business films, however, differ radically from radio In that the film "pfimOiry'ls'uBedlfw^ salesman merchandising while radio Bells the ultimate consumer. Many industries have found it ad- vantageous to s611 the public and own dealers simultaneously on the tlieory that a lethargic sales- man can cancel a would-be pur- chaser's good WllL Detroit is a, hot spot for com- mercial filming due to the number of auto firms converted to pictures.. Qii Mayor Rescinds European Riot I Newsreel Ban; Gte Treedom of Press' U Beckons Indies Hollywood. March t. tJAlversai's Indle rental ppllcy fls due for a buildup with the reopen- ing of the Royal lab on the lot March t6. Studio dropped off .on indle rentals a year ago In com- pliance with Hays organisation ukase against majors allowing indte producers to use stages, equipment, or setSi :Klng Charney maj return to the lot In charge of the lab to rorcstab- Ush Indle tieups. Houses Now Open Based on post office reports the Code Authority Is convinced that only 18,600 theatres are lighted to- day. The C. A. had the Job of can^ vassing all employers in the Indus- try. This entailed a nmillng list of over 18,000 destinations. The figures are more recent and direct than those of the check-up made annually by the Film Boardis of Trade. These units in January estlma.ted approximately 15,000 lighted houses. Industry spokes- men, while making: aliow:ahce. ■. tar discrepancies., declare It lis physic- ally Impossible to keep the list up to current accuracy. They main- tain that there has been no radical darkening of .theatres during the past two months.; ,. Quite possibly. It- la .admitted, some . of ° the. houses, which 'Uncle i^m found dark for-Uie C. A. might have been lighted,. , or else dark and iiladvertently counted In during ^e Trade Board-survey. ■ In connection with the code some 6.t)00 theatres in. non-competltlVe spots- tire'figured as probably-being among the main non-sfgners of the compliance blanks. Fitom Indlca-r tlbns now the code, will be virtually. 100% effective In competitive areas, it Is predicted.. 20TH WILL MAKE MAY ITS VACATION MONTH Hollywood, March Twentieth Century will complete its year's program, in April with Ronald Cohnan's 'Bull pog Drum- mond Strikes Back. Organlzfli- tlon will take seyeral weeks ott prior to launching production of maximum of eight, fpr the 1934-35 sea;Son for U.A. release. Company will resume production In June, Darryl . Zanuck planning only 'specials' next yfear. DEMAND FOR WESTERNS Signi ickup for 'Farmers in .inn. Territory Minneapolis, March 6. Better times for the. farmer Is re- flected in .a comeback for western films throughout this section, ex- change ofllcials report. Some exchange figures indicate a. 40% Jump in Saturday grosses In small towns where westerns have their biggest audiences. Demand for the horse operas has increased to thie extent that - some exchanges have tripled and quadrupled their allotments of such pictures. Atwell as AMPA Prez? The A.M.P.A. is on the move again. Recently going out of Sardi's In favor of the Paramount hotel, luncheon club of the pub. and ad~meh Is flow laying af-rafi'gements to hold weekly get-togethers at the Motion Picture club. A new president wlU shortly be instieJIed to succeed John C. Flinn. Reports link Ben Atwell to the post. Chicago, March 5. C9tica«6. via Mayor Kelly, laajj ' week aoserted its ceinsorial Jurls«( dlctloa over aewsreels by yankihff all cups of the Austrian and French turmoil off local screens, becoming the only town in the U. 6. wher the censor board did a thumbs^ down Ott newsreela But over the week-«nd the . Mayor rescinded the order to permit showing iscenes o#.. aftermath of the trouble abroad. - ' Mayor Kelly called the newsree^' men Intoi his offlcie and. oomplalned i. 'that the .stienes of the European rumpus were dangerous to.pubU morals. This despite that these, reels had; been'given official oke^;' by the emlNtasles Involved In Wash* ington following requests ^om: their.'' respective governments that th^'. newsreels bmit any scenes of roiigH stuff,, and with wbich tbe news men compiled. Newsreels formed opposition to this decree from the Mayor's office and took the stand.that the news-, reels have as inuoh right , as the newspapers. They conferred with the daily papers here^ all of whom stated that they would flirht the battle of the newsreels to their own battle. The freedom ^< the press uigle added fuel to* the matter and wais said to hay* considerable to do with tho order beliog rescinded. All newsreels came under this baa on the Austrian pictures /with, the exception of Universal. Through.. a,eropIane siBryice U had been able, to . gel! its pictures on the screen last week, '^he Universal reel shows only the aftermath, such ias the ruined, bulIdingiB,. et9. All news clips placed under the- ban were necessarily confined to the aftermath, since the newsreels con> formed with the Austrian and fYench governments' requests to de-. sist from using the actual riot stuff, ahyway. ■ N. Y. STATE PROPOSES ANOTHER ID^AMUS. TAX Albany. March 5. A tax of 10% on gross tecelpts of theatres and other amusement en- terprises, to provide-funds for relief purposes. Is proposed In a bill in^c troduced In tho Legislature by Sen-; ator John K. Buckley of New York.' Besides theatre's Buckley would in« elude boxing-, wrestling and other athletic contests; baseball, bicycle, horse, dog and rabbit races; cir- cuses, carnivals and other public places In which entertainment of any kind Is staged; also bazaars, festivals, lectures, recitals, concerts, celebrations, roller' and Ice skating rinks, excursions attd every other thing provided for entertainment, recreation or-amusement at which, there is an admission charge. Bene- fits are exempted. Receipts from. the. tax- would be t,urned over to the state relief ad- rainistratlon until the need for it' has exiilred. . Afterwards the money would be paid Into the. state's gen-'' eral fund. "jrhe bill stipulates that, If ap- proved, It should become effective July 1 of this year. The Buckley tax would be in ad- dition to .all other levies imposed by any other state, local or federal law. Fredie's Comedy Series DuWorld will distribute the pic- tures made by Dr. Eugene Frenke starring Jimmy Savo, First, 'Girl in 4he i_Ctuse,!^ ls_ rjeady.; J.or ...diiiklbli^^ and Frenke is in New ifork getting story material for the next two. Ed- die Lambert Is opposite Salvo. ' Dr. Frenke. never made films In the U. S. before. He Is the husband olf Anna Sten and Is producing in- dependently with bifi own bankroll. HO also wrote and directed the first and figures on directing . the rest, although he may buy stories for them.