Variety (Jun 1935)

4 VARIETY PICTURES Wednesday* June 5, 1935 FOX-MET OUT OF THE COURTS BY JULY 1 AFTER 3 YRS. RECEIVERSHIP; SAME OPS. Skouras and Randforce's 10-Year Pacts as Opera- tors—Legal Fees for Period Runs $500,000 or Better—New Financial Setup Fox-Metropolitan Playhouses, Inc., cleans up by the middle of July, or earlier. Earlier depends on the lawyers, and there is an outside chance that this group of 84 greater New York theatres can -wash up June 27, the date of the next hear- ing to be held before Federal Judge Julian Mack in N. Y. Judge Mack wants to get away for his vacation this year by the middle of July, so that the lawyers appear to have lit- tle to say about prolonging the mat- ter, anyway. Some 20 or 30 attorneys, or more, have been involved in the Fox-Met affair, since It first went into receiv- ership around three years ago. When the aggregate legal fees shall have been counted, they'll be plenty large, probably running around $600,000, according to esti- mate, and maybe higher, Skouras and Randforce (Rinzler & Frlsch), as now, continue to oper- ate the theatres under 10-year part- nership contracts. The new owners of the circuit comprise a triple alli- ance of companies such as Fox The- atres Corporation, United Artists Theatre Circuit, Inc., and Keith-Al- bee-Orpheum. On Monday (3), Judge Mack, at a hearing indicated that subject to amendments already made and mod- ifications suggested this day, he would sign an order to the effect that the pending plan offered by the three companies is fair, equitable and feasible. Such an order is tan- tamount to washing up the Fox-Met bankruptcy. Fox-Met has been in receivership around three years. Reorganization takes place under Sec. 77B of the new Corporate Bankruptcy Act. Under the court's order dcclai-lng the plan' fair and equitable, only routine • noaoDoa cy'-w ndgr -provislon. of Sec. 77B is required to be fulfilled to make the pending reorganization plan effective, Indie bondholders, through Attor- ney Ai-chibald Palmer, petitioned the company Into Sec. 77B months ago. Since that tirhe, several in- terests have attempted to control the situation through purchase of the assets. The Fox-Met board, on reorgani- sation will comprise Joseph M. Schenck, Herbert Bayard Swope, William P. Phillips, Milton C. "Wcis- nian, William Khlnelander Stewart and Salmuel S. Allen. Swopo is chairman of the KAO board. Stewart is a friend of A. C. Blumcnthal, who brokered the deal with Pox Theatres Corp. and the bondholders committee for United ArUsts Theatre Circuit, Inc. KAO gots Into the picture by purchasing 20% of the r)0% stock interest in the now company which the U.A. The- atre Circuit, Inc., aciiuires under-the reorganization plan. This may stand KAO around $250,000. It is mainly through the efforts of Swopo that KAO got to be included in the pic- ture. KAO additionally gets a 10- year extension of its present 2-year piiolliiff arranscmrnt with Fox-Met on product. Capit,ilizatlon of the new company Includes ■ $6,853,335 in secured new B%, 10-year debentures, due 1015; 2S2,444 shares of new Class 'A' stock (non-par value); and 40,8-14 6%. Class 'B' stock (non-par value). All of the new debentures and all of tlie new 5% Class 'B' stock will bo distributed to the present note- holders. Fox Tlieatres Corp. and the V. A. Theatre Circuit, Inc., split the new Class '.V slock 50-50. Present noteholders, for every ?],000 principal amount note held will get $;00 cash, $550 in new 5% debentures, and $2r)0 or 4 shares of new 5% Class 'B' stock. Intore.sl on the new dcbcnLures and the stock runs from Feb. 1, this year. Fact that Joseph JI. Sclicnck, head of the T'.A. Theatre Circuii, has bocoino chairman oC the Fox Film board does not affect the cur- rent reorganization except perhaps to cnliiuioc the circuits product pos- .•jlbilitirs bei-au.vo the :iOth Century films, wiiicli wci-'.; formerly asso- ciated with V. A. (!i;!l.ril)Ml.l()n now brcome a part 'if 'lie b'ox I'^ilni di.s- tribulion, for wlilch prodLict Fox- .Vel is fi :) iii'hisoj. 1st Runs on Broadway Clairvoyant' Lamps (Subject to Change) Week of June 7 Capitol—'Public Hero' (MG). Music Hall—'Our Little Girl' (Fox) (C). Paramount — 'Glas.s Key' (Par). Rivoll—'Let 'Em Have It' (UA) (2d wk). Roxy— The (G-B). Strand — 'Oil China' (WB) (5). Week of June 14 Capitol — 'No More Ladies' (MG). Music Hall—'Becky Shaip' (Radio) (13). Paramoun t—'Glass Key' (Par) (2d wk). Rivoli—'Nell Gwynn' (B. & D.) (12). Roxy—' Vagabond Lady' (MG). strand — 'OH for Lamps China' (WB) (2d wk). MGM'S FOREIGN THEATRE BLDG. Metro is going to do some build- ing throughout the world. Theatres are at present under construction for the compa.iy In Calcutta, San- tiago, Chile, and Lima, Peru. Outside of Calcutta, company's most important building "operations are at present centered in South America. Before, the year Is ovier theatres will be either completed or building started in four S.A. cities, Rio de Janeiro, Santiago, Monte- devlo and Lima. All four houses will be modern .in every way and have a seating capacity of at least 2,000. The Calcutta house now In construction will have 1,200 seats. As soon as that Is over work will start on two or three houses in Japan and perhaps a few other spots in Far East. Company recently took over the Capital, a 2,400 seater In Madrid on a long-term lease and is operating it, doing away with the necessity of building there. Metro now is operating two the- atres in Brussels and one theatre each in Ghent, Liege, Brisijane, Melbourne, Sydney, London, Paris, Budapest, Manila and Johannesburg. Before building is completed com- pany will have at least 25 theatres In this chain. Paramount has 23 houses in foreign countries. 1)ICHMAIU-C0L AGAIN Picture Deal and Fishing After Versailles Trip Harry RIchman may do a picture for Columbia, after all. It's the same deal as last year when Rich- man decided to tackle 'Say When,' ill-fated Broadway musical, In- stead of the filmuslcal. Kichman, after closing tonight (Wednesday) at the Versailles nitery, N. Y„ goes on the Billy Lefeds yacht for a Florida fishing stretch. PATENT SUrrS WASHDP AGAINST DISNEY, TECH Los Angeles, June 4. Federal court has entered .a de- cree of dismissal in the accounting and Injunction complaints of Leon F. Douglass against Technicolor Motion Picture-Corporation and the Walt Disney Productions, adjust- ment of patent rights dispute hav- ing been reached out of court. ., Dismissal leaves only charges by Technicolor against Douglass and Tricolor still pending, in the clus- ter of suits Involving the same pat- ents Issues. Stipulation In washup of bills against Technicolor and Disney has each paying Its own costs, and pre- cludes any further suits against any licensee of Technicolor for alleged infringements of the patents sued on. Stockton Leigh's $2,500 Bail in Astor Vandalism Stockton Leigh, business associ- ate of AValter Reade's who has had managing^ supervision of the May- fair and Astor, appeared yesterday (Tues.) in Genera,l Session court, N. Y., on an indictment returned against him in connection with the recent Astor vandalism and was held In $2,500 ball. Leigh was Reade's p. a. and unofllcial general manager. No date has been set for trial un- der Indictments against Reade and John Bryant, previously held In bail of .$5,000 each, nor against Leigh. During the past week Reade gave hp office space he has occupied for many years in the Astor theatre building, moving to the Mayfair. National First Runs METRO 'Public Hero No. 1/ Cap, N. Y., June 7; Loew's, Wil- mington, 7; Century, Bait., 7; Penn, Pitt., 7; Fox, Wash., 7; State, Houston, 7; Nerva, Nor- folk, 7; Grand, Atlanta, 7. UNITED ARTISTS 'Nell Gwyn,' Alladln, Denv,, June 13. 'Let 'Em Have it,' Georgia, Atlanta, June 7; Brown, St. L., 7; Strand, Akron, 7; MaJ., Dal- las, 8; Cap, Sioux City, 14. 'Escape Me Never,' Keith's, Wash., June 7; Stanley, Bait., 22. RADIO 'Break of Hearts,' Cap, Salis- bury, N. C, June 6; Brandeis, Omaha, 6; Orph, St. Paul, 7; Cap, Jacksonville, 8; State, Raleigh, 0; Pal, Lakeland, Fla., 12. 'Becky Sharp,' N.. Y., 13. GB'S 16 FOR 1935-6; 1ST, 'CLAIRVOYANT' AT ROXY PATHE MAY SET 2 SEPARATE CORPS Gaumont ritish will release at least 16 pictures in the U. S. next season, according to announcements made at the company's American convention, held for three days in New York last week. First of them is 'The Clairvoyant' starring Claude Rains and Fay Wray, which opens at the Roxy, N. T., Friday (7). 'TIME' GOING PAR? Notice of Cancellation Prior to July 1 Major Release 'Invisible Ray' at TT Hollywood, June 4. Invisible Ray' Is the next for Boris Kai'loff and Bela Lugosi at Universal. John Colton is doing the adapta tlon. 'March of Time' is expected to start releasing through some major company .beginning July 1 but con- tract has not been definitely set. In view of this contemplated change, 'Time' has officially notified the Far West exchanges, which handle its release on,the west coast, that It may cancel the releasing agree- ment. Company holds temporary contract with this exchange outfit but 30 days' notice of Intended can- cellation is a requisite. Because of Henry R. Luce, editor of 'Time,' being on the new Par board a Par releasing deal is logic- ally anticipated. Don Marquis for„Shirley Hollywood, June 4. Don Marquis is at Fox to write an original for Shirley Temple. Buddy DeSylva produces. KAO, B. F. Keith Co. and Loew's Realty Reveal Financial Setups to F. S. E. C. Washington, June 4. Profit-sliarlng arrangement be- tween Keltli-Albce-Orpheum and coteries of top executives headed by Herbert Bayard Swope, negoti- ated less than two months ago, was. revealed Monday (3) in security registration statements filed with Federal Securities & Bxchangc Commission. Requesting permanent i-ogistra- Mon for 04,304 shares of $100 par 7% cumulative preferred KAO stock and $C,003,000 of 20-year «% •Jfokt bonds of B. F. Keitli Corp., companies disclosed that parent ■•oinpany shelled out well over $200,- ■li'U in salaries last year to a score of otfioors and that Chemical Hiink & Trust Co., and M. J. Median & Co. almost entirely control the seL- u\>. L'nder ter is of a contiuct .si.i,'nnd .\pril 10 and ruiimi;;. imlclinitely ilurlii;? Swi)iK.'',s i))cuiiilHni-y, iht; I'ormer political loader and v.rilor .shares in all |)ri>(il.s .'ii.ine lliu amount required to pay $7 on the outstanding preferred stock. Agrees nient stipulates that the first $50,000 or any lesser part of the consoli- dated net surplus shall be split be- tween Swopo and any other officers and employees he, may designate to participate In the profit-sharing deal. Out of this amount, Swope is assured $25,000, with the other half being divvied as many ways as he specifies. The agreement further jirovides that Swope and his bud- dies are to receive 10% of all other excess profits, with 40% of the one- lenlh going to Swope and the re- maining portion being di.stributed among the other favorite sons. KAO's 63,304 Shares Reeislraiion papers showed KAO has 1)3,304 shares of its 7% cumulative preferred outstanding, witli Chemical Bank & Trust as trustee holding 21,074 shares or u3.Tl',i and the Meehan firm holding L'5,G0O .shares or 33.81%. Chemical (Conliinird on p.-ige 61) Francis Now Head Man Of RCA Sound on Coast Hollywood, June 4. .lames Francis, veteran General Electric e.\ec, has been appointed general manager of RCA Victor PI. >tophone here l:i charge of the sound and disc division. He has been with RCA for year.<; and came to the Cost after being head of Photophone sales in Cam- den. Initiating Zimby Hollywood, June 4. Jean Parker will be featured by Metro in 'Fraternity House,' Hunt Stromberg production, which Sam Zlmbalist will direct. Picture will he the first for Zlm-. balist, who has been acting as as- sistant to Stromberg on the Metro lot for several years. LEDEEER'S PEOD. YEN Hollywood, June 4. Francis Lederer Intends to pro- duce both films and plays some day and has incorporated as Lederer Productions, Inc., in order to be ready when the time comes. Headquarters are in the same building with the World Peace Foundation, of which the actor Is president. Morris as 'Solomon' Hollywood, June 4. Chester Morris draws the lead in Universal's 'King Solomon of Broad- way.' Alan Crosland directs. McNutt's Three Wayer Hollywood, June 4. Fox has given Patterson McNutt a three-way contract as producer, director and writer. Ills first production efforts will be on 'Fly by Night,' to go into produc- tion late this mnntli with D;ivid Butlor Irroiing. Pathe Exchatige, Inc., offieial.'j are mulling' the Idea of forming two separate comisanles, either before or after the present rcorgani;,ation has been perfected, expected within the next two or three weeks, Idea would bo to have one company de- voting entirely to printing and de- veloping films; the second company as a separate holding organization. The additional expense of .such a line-up alone may stand in tho way. Because complete details of the re- org are so near completion, officials of Pathe probably will perfect the new organization and consider the second and possibly subsidiary com- pany at a later date. Reorganized Pathe will be known as Pathe Film, Inc., such title hav- ing been decided on within tho last few days. Only the Securities Ex- change Commission stands in the way of the formal listing for the new Pathe common on the N. Y, stock exchange. There will be about 573,000 shares of this new stock when the SEC gives its formal approval. No hitch in obtaining approval for the listing is antlcl-, pated, the apparent delay simply being the slow i 'ocedure which all securities face when iseeking SEC okay. Although Pathe thus far has not launched Into the film producing' field, officials of the company are going ahead with details of financ- ing presumably for First Division release. It's not been definitely de- termined whether Pathe will form a producing unit or set a definite schedule of feature pictures with a single producer in charge of making' the films. There was plenty of evidence in Pathe circles early this week that the company was fairly well agreed on a program of high class pix, with a guarantee of a certain number for national release. Present plans call for release through F. D. Coming season's plans of Pathe also call for financing or advancing monies to other Independents other than First Division. Pathe Is in much 'the same category as Con- solidated Film in this financing work, both firms cashing In on the film printing business, with Path© also benefiting because of Its 49% interest in DuPont JFllm. Advances are made on guarantee to u.se Du- Pont film stock and turnover print- ing business. GOLDWYN STEPS ON IT; 3 UNDm WAY IN JUNE Hollywood, June 4, Sam Goldwyn will have three pic- tures going before June's end, an amprecedented schedule for him. 'Dark Angel,' slated to get started early last week, didn't get going un- ■tU Saturday (1) with. Fredric .March held over at Metro for re- takes on 'Anna Karcnin.i.' 'Barbary Coast' gets away next Monday and. the- Eddie Cantor picture, 'Dream- jand,' is pegged for a later start. Franklin on Shearer jPic for Seventh Tiitije IIoU ywood, June 4. .Sidney Franklin, who has directed six Norma Shearer pictures at Metro, has been assigned by Irving Thalberg to direct the star's next production, 'Marie Antoinette.' Picture is slated to go befoi-e the cameras in the fall with Charlea Laughton slated for a top spot. Retake on Civil War Hollywood, June 4. The Civil War is to be fought all over again in Republic's 'General Robert E. Lee' yarn by George Waggncr. It will be the sludiri'.s heav; budgeted picture for Mie \>-ni\ LEW GOLDEE EEVIVAl Jloll.VUOOd, J\1!!C 4. Lew Colder, 20 years an nficji returtied to the rpj) biz artn- twi years In proilju.-liuM )i(>',i>. Koinirrly p;iilncied wiih ll:in 11(1 pf.