Variety (Nov 1935)

Wednesday* November 6, 1935 PICT E S VARIETY COWDIN-RO GERS' U CO. BUY m. — — ■ ■ ■ 1- . , . ■ ^- ' ■ - Par s New Idea on Theatre Op. Is Manai^einent Proiit-Sliaring Deals; Used to Be ^0^50 Arrangement 3 Bankers Olf Par Board Leaves FWtinglonaiasJ^ In Control; Three bankers have stepped out (lit the Paramount company direc- torate In almost as many weeks. Other resignations may follow. The latest downtown talk has Robert IC' Cassatt, New York and Philadel- phia banker, as havlns resigned from: the company board. ■ Should this banker dlsasBoclatlon from Paramount continue at this pace, Wall Street minds foresee shortly the complete domination of company iafCalrs by the Fortlngton- Atlas Corp.—Lehman Bros, group, whose representatives would com- prise the only remaining board members. This same group controls BKO, presently. In addition to the three already resigned, Wall Street sees four ad dltlohal Par directors possibly re- signing ishdrtly. These would Include Henry R Luce, publisher of Time and For- tune magazines and. head of the •March of Time* fllih reel. Also. Dun- can Q. Harris of Brown, Whefelock & Harris, realtors. Additionally, George J. Schaefef, presently vice-president of Par, and also a member of the company board, is expected to leave the Arm thus creating another vacancy on the directorate. Johnstonr Vanderlip Percy H. Johnston, chairman of the Chemical Bank, is staying- on, but he is known to be desirous of stepping off the directorate. Included in the Same category is Frank A. Vanderlip, first of the bankers to resign from the Par board. Vanderlip, who was chair- man of the Par debenture holders' committee, resigned from the Par directorate because he was dissatls- fled with the manner in which the company is being operated. Vander- lip recently was asked, to reconsider his resignation but he has not done .so. This exodus of directors from the Par Ijoard is extraordinary, espe- cially in view of the fact that it Is only around four or five months Blnco.'the company's reorganization, and the election of John E. Ottersn, (Continued on page 62) Bancamerica-Blair? Because two voting trustees of Standard Capital had for- mer ■ connections with Bahc- amerlca-Blair Corp., Wal.l' Street sees In the deal con- summated with Universal an effort of new banking Inter- ests to enter the picture pro- ducing field. Standard Capital Corp., which was formed in Delaware last January, has three voting trustees. George N. Armsby, formerly chair- man, and J. Cheever Cowdln, formerly v. p. of Bancamerlca- Blair, are two of trustees; third Is Lawrence W. Fox, Jr., of Los Angeles. Announcement of deal en- abled Universal pfd stock to quickly climb, to new 1935 high prices in a few trades. Wall Street envisions ^Bancamerica- Blair eventually getting. Into the film Industry, directly or indirectly through this recent transaction.;. Carl Laemmle Will Net $5,000,000 Personally on Deal—^Standard Capital Corp. (J. Cheever Cow- dih) and Chas. R. Rogers Advanced $750iOOO Loan Preparatory to Buy- Up Option,Which Was Almost Immediately Exercised CARL, JR., OUT VARIOUS NAMES UP FOR UA SALES POST PAR TO PROD. 12 FEAIURES IN EAST Names which continue to be men- tioned as possibilities In the gen- eral sales managership of United Artists include Ned E. Depinet, George J. Schaefer and James R. Grainger. While understood both Depihet and Schaefer liave been approached, it is not believed that peplnet would resign hts present connection as president of RKO Distributing Corp., and Schaefer hag a theatre proposition, from Par he is considering. . Schaefer is. a- .current vice-presi- dent of Paramount and Grainger ie general sales manager of Universal. Arthur W. Kelly toOk over the domestic sales reins along with for- eign, which he has supervised for years, when Al Lichtman resigned. He is lagarded as more importantly .required for supervision of. foreign sales. Harry D. Buckley became v.-p. in charge of corporate mat- tors, •finances, etc., On Lichtman's departure and it is understood he will remain in this position. He has relinciui.shed theatre operating su.- pervislon in UA entirely.' Going west for conferences with UA producer-owners, Kelly left New- York Thursday (31). SCHENCK, FEIST WEST Kick Schenck and FcUx Feist, v.p.' In chapRp of di.strlbutlon. scheduled to leave for the Coast today (Wed.) or tomorrow for studio and prod- uct oonCerences. Feist- recently returned from a European vacation and re.st. Hollywood, Nov. 6, Paramount expects to have around 12 featuries produced at the Astoria Studios In New York next year and Is looking around for two director-producers to handle three or four pictures apiece at the east- ern plant. Company execs figure two addi- tional units, added to product to be turned out by the Hecht-Mac- Arthur combo, will provide the re- quired number of pictures from the east coast setup. Deals have been discussed with two top ranking directors -to handle their own New York units, with Electrical Research Products, Inc. reported ready to supply financing for release via Paramount. Idea is to get the two units functioning early next year so pictures can. be put on the 1936-37 program. FULL DOLLAR PAIL FOR PICKFORD-LASKY Hollywood, Npv. 5. Mary Pickford understood to have arranged for .100% financing of pic- tures to be produced by Pickford- Lasky company through eastern capitaiists, purpose of her recent trip east. First on sked is 'Four Star Kiss,' with Francis Lederer. Harry D'Ar- rast will direct. French Vs. U. S. 'Crime' A Week Apart in N. ¥. Fifth Ave. Playhouse, N. Is soing in for a heavier than usual campaign on 'Crime and Punish- ment," French talker getting "an American premiere at the house .Vov. 12. American version of the .same film (Col) opens at,the Music [fali, N. Y., one week later, Nov. 19. ■ Exhib and di.<jtrib (Jeari Lenauer) of the Frenchie figure to steal Co- lumbia's thunder on reviews by opening up ahead of the'American ptc and inviting comparison. Universal will be taken over by Standard Capital dorp, and Charles R. Rogers the w6ek of Nov.-18, with Rogers Immediately assuming the post of production chief at that stu- dio and supervising all of the new crop of pictures set to start within the next 10 days. The (wo pictures Rogers was scheduled to complete at Paramount will be turned over to Bernie Fineman so Rogers can clean up and get away from Par immediately. J. Cheever Cowdin, head of Stand- ard Capital Corp., was due to plane to New York yesterday (Monday) to confer with Sam Briskin for the latter to join the company as pro ducer, with a posslbllitK of part- nership as well, as Brlskln worked on a similar plan with Eddie Small for the purchase of Universal. Carl Laemmle's holdings, which include a voting trust of stock owned by Robert Cochrane, amount to between 6-7%; Morris Fleckels, Laemmle's brother-in-law, owns about the same amount, and the stock of two other unnamed Indi- viduals, amounts to 79% of the com mon stock, of which there Is 260,000 shares. Besides this, there Is an Isaue of 30,000 shares of 8% 1st pfd accumulative stock, of which 17,864 are outstanding, with the Laemmles holding the control. There Is also a second 7% pfd. accumulative of 40,000 Shares, of which Laemmle controls the greater part. ' Understood that this stock will be retired by the new owners. Besides this, Laemmle owns be (Continued on page 61). Asher Eyes 20-Fox Hollywood, Nov. B. E. JM. Asher, producer of 'Magnifi cent Obsession' at Universal, re cently completed, is negotiating for contract at 20th-Fox. Asher has been with Universal more than five years, being producer on number of 'John M. Stahl pro- ductions. Twisters Hollywood, Nov. 6, Epidemic of sprained ankles In screen colony last, week took three players off film as- signments: Freddie Bartholo- mew tripped over a plank; Betty Burgess fell while doing rope ladder dance at Para- mount, and W, Franke Har- llng, of Par music staff, stepped In a hole at his ranch. All gams mending. U.S. SURVEY OF AMUS. STARTS IN JANUARY Washington, Nov-. 5. Second Governmental, effort to ob- tain a comprehensive statistical picture of the film and amusement industries will be launched early In January. Endeavoring to ell Inate the de- ficiencies and correct the multitude of errors which decreased the value of the 1933 business .survey, the commerce department has been conferring with many business lead- ers and representatives of trade organizations in all fields in the hope of avoiding duplication, misleading inquiries, and mistakes. Schedules are being drafted with a view to re- ducing to the minimum the amount of work ' required to produce data sought by the Government. Business survey will coincide with the biennial census of manufactur- ers and will be arranged along the lines of the 1933 count so that re- sults will be comparable; Prior check of theatres was the first approach to a nation-wide report on volume of business, employment, wages, and operating costs by states but figures were full of shortcomings in maiiy cases. Particular pains will be taken to get a complete report on broadcast- ing, which was very sketchily cov- ered two- years ago. With trained enumerixtors directing the field work instead of leaving all details In the states to white-collar workers off relief roils. Census Bureau expects to correct these weaknesses and by using Government licen.se record as a guide to include every trans- mitter in the count. Renew McDonough and Others At Radio; Spitz Favored for Prez All of the Paramount partner- ships may become management profit-sharing deals, with Par re- ported favoring this against the form of partnership which was worked out during bankruptcy, with operators given up to a 50% Inter- est In the theatre, groups assigned to them. The George W, Trendle deal over a dozen Detroit theatrea entered Into ■ a year ago, with Trendle on a salary and percentage, is reputedly the type of arrange- ment favored. This deal with Trendle has been extended 18 months and a similar arrangement is under (discussion for New Eng- land with Martin ■ J. . Mullln and Sam Plnanskl. Operating deals over ^Inkelateln & Rubin In the northwest and over the Louis Dent Utah group are also to be decided. George J. Schaefer has been mentioned for the F&R circuit, with deal probably along lines modeled after that which Trendle has over Detroit. . M. & P. in N. E. Mujlln and Plnanskl in New Eng- land are the operators of the far- flung Olympia "Theatries subsidiary which Is under reorganization. Deal with these operators is con- tingent on final reorganization oC Olympia and discharge of the re- ceivership which has existed sincia early In 1933. Hope of attorneys ia that the Goldstein Bros, end of the New England reorganization plaa will be cleaned up within 20 days. There are too many contingencies with xespect to eventual. reorgani- zation of Olympia Itself to guess just iiow soon It will be accom- plished but it may be by the first of the year. Plnanskl is a veteran New England operator-while Mullih was formerly in charge of the wiiole northwest for Publlx. The Louis Dent partnership over the. Par Utah group of houses, around 12, has been called oft en- tirely and Par now is maintainins operating supervision from New York, with Harry David in charge at Salt Lake City. This is the group of theatres In which Louis (Continued on page 62) PAR'S F&R M'G'MENT OFFER TO SCHAEFER Trade and downtown Indications are strong for the probable selec- tion of Leo Spitz, Chicago lawyer, as president of RKO, under M. H. Ayleswprthj by that firm's new own- ers, the Atlas Corp. (Floyd OdlUm), and Lehman Bros. (John D. Hertz). It is understood that Peter Rath- von, Atlas executive arid close friend and associate of Odlum> has decided not to accept the post even if offered.' Herbert Bayard Swope is not a candidate for the job al- though his name was dlscu.sscd in cei'taln downtown circles. .Swope. is chairman of the board of Keith-Albee-Orpheum, chief the- iitre subsidiary of RKO. So far as can be gleaned the new liKO owners have made no deci.sion about tlie presidency and the mat- ter is open. I Reports are that RKO will extend the contract of J. U. McDonough, em president of Radio Pictures, Inc., film producing subsidiary of RKO.. M. H. Aylesworth is chairman of Radio Pictures, Inc. While official comment .seems lacking, it is felt that the company's new owners have okayed renewing with Mc- Donough. MclJonough accompanied by-.Rob- ert F. 81.sk, liKO producer, were to have left New York Cor the Coast yesterday (Tues,). No Infoimation about a possible reorganization p)an is to be. had, as yet. It Is taken for granted, how- ever, that this j.s among the imme- diate vital n attcrs which the At- las and Lehman people a.rc .work- ing on.vpresently. ALSO, the question of-the llorlce- feller claim and the M. J. Meohnn .status In the general schertie of UKO matters. Paramount appears prepared to offer George J. Schaefer a manage- ment deal on the Flnkclstcln Rubin chain, out of Minneapolis, should Schaefer elect to step from the helm of Par's distribution end. This group of theatres in among the largest circuits in the Par fold. Schaefer is v.p. of Paramount and a member Of the board of the parent firm. He has been with the com- pany for around 12 years or more, and for a time, prior to reorgani- zation, and after the departure of Sidney R. Kent, to Fox, Schaefer was geii.erial manager of Far,; a« well as distribution chief. Hearst East Los Angeles, Nov. B. W. R. Hearst pulled out last night (Monday) for New York by train. He had his retinue of staff aids with him as he (iocs not con- template returning here until late in the spring. Marion Dfivies also east.and ex- pected hack here shortly unless Wiu-ner.s deride to shift production of 'f;iorious,' her next pic, to New York. U'S EOADSHOW 'OBSESSION* 'MfiKnfliccnt Ob.sesslon* may be I'd.'id.'.lifiwed.liy L'niver.ual. I' offW:i;il.s thus far find that the Sliiilicil;; hfive the best dark thca- tie.s lied up for their own legits.