Variety (Feb 1936)

4 VARIETY PIC¥ E S Wie^eadajt February 5» 1936. FILE DETAOS OF PLAN; Mayer, Thalberg, Rubin> High-Bracketed, Profit- Sharing Arrc^ngeihent with Loew-Metro Revealed Other Loew-Metro Execs Have Similar Deals Washlherton, Feb. 4. Details of a. $15,000,000 reflnanclnig; plan by which $8,000,000 of high-In- terest SiSOTTTlties "Will be retired ahfl the company will be reimbursed for outlays to pay Qff other obligations were outlined to Securities and Ex- change. Commission Monday (3) by LoeWs, Irtc. Revealing Metro's thteei horsemen —Louis B. May6r, Irving .Thalberg and J. Robert Rubin—collected re,- muneration of nearly $1,500,000 dur- ing fiscal year 1935, firm asl^ed per- mission to. issue $15,000,000 ytyorth of 3% % Slhkiiig . fund ■ debentures. Paper will be sold lor 4 price not in exc'ess .of ?9% of face value, running for tirm of 10 years the issuing date, Feb. 15, 1936. '■ Disclosing' mtich previously confi- dential data, statemient eszplains that proceeds of the deal,, which will be underwritten by Dillon, Read & Co., will be used primarily, to retire $8,- 171,612 woi'th of 16-year B%' deben- tures which fall due on April i. Balance of the fund will be paid into corporation. treasury as reimburse- ment for $8,564,824 spent to retire 7%;. cumulative preferred stock of Metro-.GoIdwyh .Picture* Corp.; $1,- 860^420 spent to recall bonds of the New Broad Co., and $270,300 fipent to retire .6% notes of Loew's St; Lotiis Ii6altyj^& Amus. Corp, The ireflnahclng plan Includes pro- vision for creation of a sinking fund at the jjate Of $500i(>06 annually, with a clause opening, the way for faster aodumuli^tioil of reserves needed to retire the . new debentures .and a reservation under which the bonds can bei! redeemed at any time upon 3<) days' notice, One feature of the program specij^es that the sinking fund.can be.raised as much as $1,- 0,00,000 ■ arintially by setting an amount equal .to one-half, of the dividenda paid In the previous year in. e^ccess of |3 per share. il.lon, Read to Underwrite Explaihlng that Dillon, Read will be the undetwritter, ioew's isal.d no arrangements have been, madia y;pt for distributing, the ne\7 securities to' the public. The price to be charged, as well as the commission to be paid, • and' the names of, the participating: brokerage houses,' will be' filed later as ah amendment to the registration application<- The bonds could be retired in whole or in part at the company's otitlon after 30 days' notice. If re- deemed by Feb. 15, 1941-, holders would receive 103% and accrued in- terest, but if the company does not exercise its privilege until after 1941 the redemption price would be cut by % of the principal amount each year. The bulky document* which the company paid a fee of $1,485 to file, reveals that Ofllcers of the parent corporation, in the fiscal year ended last August, received compensation exceeding $860,000; 184 employees, comprising actors, actresses, direc- tors,' cameramen, : and other talent, received $11,303,773. Profit Sharing The profit-sharing agreement be- tween the top company and the Mayer-Rubin-Thalbei'g partnership poured $1,013,058 Into ihe pockets of the three executives. In addition to substantial amounts paid as sala- ries In return for services, the doc-, ument and supplementary exhibits revealed. Thalberg's salary is re- vealed as $4,000 a week, Mayer $2,- '500 a week and Rubin at $1,000. Details of the dontracts reveal that the partnership is guaranteed, a minimum of $500,000 annually as their share of the piroflts. Exact amount due the trio as per- centage depends on aggregate earn- ings of the parfent coh'jpany. After the company lias set aside the' equivalent of $2 a share on the common and the full dividend on the preferred, the three get a 20% slice of the first $2,500,000 excess profits and 15% of an/ gravy above the $2,500,000. Other profit-sharing conti'act.3 were revealed by the application. Agreement with David Bernstein, fixing a salary , of $2,000 per week, guarantees the vlcerpresident 1%% of the combined net e.arnIngSi with a provision that the split will con- tinue until death or permanent dis- ability. A like contract, extended for 10 years- last .September, as- sures Arthur Loew, as general man- ager and supervisor, a salary ,of $3,- 500 yeekljr and B% of the profit from foreign operations in excess of $3,640,000. Safaries The salary statement showed piay- ments to the offlcers last year as follows: Nicholas M. Schenck, $265,176, in- cluding expenses; Bernstein, .$182,-' 711; Arthur Loew, $182,1.0; David t. Loiew', $74,766; I^eopotd Preed- mah, counsel, $53,342; Isidor Frey, assistant secretary, $31,694; Charles C. Moskowltz, ' assistant treasurer, $59,366,. and Rubin, $93,880. " Operating data showed that the parent company has 58 wholly- ^"wned and 23 partly.^.own,ed .subpidi- aiies, as'^ell as 26 subrsufesids. The corporate structure in the produc- ing end sho'w^s that Lioew'^, Inc., owns Metro - Goldwyn pictures, which , owns Metro-Qoldwyn-Mayeir Distributing Corp., Metro-'Goldwyii- Mayer Corji,, Culver; Export Corp., Metro - Goldwyn ? Mayer . Plctwres Corp., 45th & Broadway Corp. (lioew's State,. N.- t",, theatre and building), Robblns Music Corp., and Moredail Realty Corp. According to the stateinent. Culver Export in turn ownis 60 foreign and domestic subsids!. HoidinBs The parent company operates a total of 157 hotises, 105 through whoHy-O'wned subsidiaries, 15 through, partly-owned subsidi- aries, and . '37. through afilllates. Statement said 73 of the theatres are located in the New York metro- politan, area and 17 in foreign coun- tries. .Stoch;-option conlracts, giving- Mayer and partners, ground-floor opportunity to buy Loew's securi- ties, Is revealed in the document. Under these agreeinents, Thalberg is given the right to buy up to 100,000 shares of no-par common, and Mayer and . Rubin receive the privilege of- buying 50,000 each, pave Bernstein ha^ a contract du plicatinir the Mayer and. Rubin agreements. The Thali)erg contract extended the right to buy 27,780 shares at $30 between Dec. 31, 1934, and March 1, 1935; 27,780 between Dec. 31, 1936, and March 1, 1937, at $35; and 44, 440 shares between. Dec. 31, 1938, and March 1, 1939, at $40. If;, the first two options'were not exfefclsed, the blocks might be bought during the following four years at pro' gresslvely higher prices, while Thai berg gets six months .to take ad yantagO of the rate if he quits the company. ■ The Mayer and Rubin contracts offer blocks of 13,890, 13*890 and 22,220 at the same prices over the sanie 'periods, while Bernstein gets the same opportunity. National First Rons COLUMBIA ^Dangerous I ntr}gua/., .Earle Phlla. Par,' Albany, Feb, 18. :,%a6y of Secratf,' .ijpu, Spgfld., Mass., LoeW'Sj Hart- ford, Conn.; Feb, 21. 'You May Be Next/ Met., Washi, Feb. 7. 'ilone Wolf Returns/ Denv., Feb, 18. WARNER BROS. 'Petrified Forest/ Miusic Iffall, N. Yi, Feb. 8; Warner, Worce- ster, 6; Roger Sherman, .New Haven, 6; Mary -Anderson; Loulsville,r .7; Met, 'Boston, 7|, Hipp, Cleveland, 8.. 'Louis Pasteur/ Strand, N.T.» Feb. 8; OrpHeum, New Orleans, 13; Aladdin, iDenver, 18; Brandford, JTewark, 21. PARAMOUNT illty Way/ Ne'wman, K, C., Feb. 7; par. New Haven, 7; , Malco, Meniphls, 7;' Stanley, Phlia, 7; Mich, Det, 7; War- field, S» F., .7; Par, N> T., 19; Chi, Chi, 21. 'Anything Qpes/ Par, N. T., Feb: 5; Century, Roch, 6; Keith's, Dayton, 7; Chi, Chi, 7; Par, S. F., 7, . . 'Desire/ Mich, Det;,; Feb. 14; Warfleld^ S. F., 14; Denham, beiiv.T 19; Rialto, St. L., 21; Roosevelt, Chi, March 18. 'Give Us this Night/ New- man, K. C,, Feb.. 21. 'Trail of Lonesome Pine/ Denham, Denv., March 4; New- man, K. C, March 13, •Timothy's. Quest/ Rialto* St. L., Feb. 14. Show KzV Vertical Unionization Still a Leading Matter as Intra-Unibn Situ^ ations Iron Out JOHN BLYSTONE LEAVES 20'FOX AFTER 17 YEARS Hollj^bod, John Blystone has terminated 17 years 'with Fpi and 20th-Fox stu- dios in varioup capacities. Most of time Mftis spent directing. He com- pleted 'Matron's .^leport' on Monday (3>, four days ahead of sked. Director is taking his fanilly on .extended tour-of Europe before tak- ing another post, 'Adverse' in 86 Days Hollywoodj Feb, 4. It took Warners 86 days to pro- duce 'Anthony Ad-verse' at an esti^ mated Cost of $1,000,000. ■ Cast of.. 98 principals, 131 sets, 1,150 scenes and 2,500 extras in pic. LLOYD STALLS PAR ON NEW CONTRACT Hollywood, Feb. 4. Harold Lloyd and Paramount aJ^e talking figures on another pic, ■yflth actor hedging until hia 'Milky Way' Ib released igenerally. Ijloyd ftrants feel of .reception beo fore signing a new deal. Joe Sclienck's 168,643 Shares in 20th-Fox; Warners'WB Holdings Washington, Feb. 4. Reducing his: holdings of 20th Century-FOx . comnion . to 168,643 shares, Joseph M. Schenck save away to unidentified persons 46,000 shares of ttie- stock In. December, 1935, Security &. (Exchange CotnmlS'- sion revealed today. Second big chuftlc of Schenck'a stock holdings, also ' listed as a 'gift' in B..E.G.'s summary of trans- actions, was made ...in the iaame month and sliced 31,000 shares of $1.50 cumulative preferred 20th Century from the Investments of t^e company's president. Deal left Schenck -with 24,284 shai-es of pre- ferred.. Schenck reported his holdings. ih 20th Century at 214,643 shares of compion stock, and. 56,284 shares of cumulative preferred last. August, S.E.C. report shows. Warners. Holdings Heavy year-end sales and.gifts, presumably for tax purposes, of Warner Bros, securities shows In report of Harry M. ahd Jack li. Warner. But desplte.^late December reductions their holdings still, sub- stantial. . Harry Warner^ during latter part of month sold 4(600 common and gave a'way: SOOiOOO 6%' vdebenturos while acquiring . $166,667 worth debentures for net decline of $133,333 debentures. Jack Warner sold 2.000 common and $409,333 worth deben- tures. Net holdings end of year: H. M. Warner, 62,860 common,- $1,469,000 worth debentures, and 10,618 cumu- lative preferred directly and • 2,116 common through holding company; J. Li. Warner, 86,060 common, 10,618 preferred, and $1,856,000 . worth debentures directly with 4,786 pre- ferred through holding company.. spmisfpiD AS IS at coi. ' Nate Spliigoid' has altered ■ his views and remains at Columbia. Spingold had gone to the. Coast, to huddle -With Harry Cohn on a new contract. , Paris, Jan. 26. There are several ways for American film cottipanles to. go. "wrong in big foreign marke.ts such as France. One Is to build up a big dis- tributing Organization with a correspondingly big overhead and then find that there isn't enough Jjrpduct locally saleable to justify its, existence. This Is an error of the past, now corrected, in just about every case. The current error, commlted by at least one major, is to mis- handle its project, through ovcr-corifldence in nati've distribs in such a wa,y as. to throw away its value. Chief loser at present is ah' American major. Exclusive rights to this company's plx belong to a French concern, new in the film trade. Company has one of the biggest world click plx of the year. What .kind "of a contract the inexperienced French' dlstrlb made on It Is not known, but the Paris exhlb is openly gloating about his own returns which are, he admits, riiuch better, than usual. Another of this company's plx sneaked quietly Into town at Jacques Halk'S Olympla, and folded after a short run. Maybe the picture Is no good. No one will ever kno>v, because It never had a, chance. Title at least has exploitation value, but no one*was told about it. Company's London offlce tries In a vague way to supervise Paris from a distance, by sending over' releases to the French pr^s. And these Fi'ench releases from' London are handing the local news- paper boys the biggest laugh they've had In years. They're ^yrltten in the most atrocious pidgin French anybody could conceive. And that's not a little indie, or fly-by-night. It's one of the American majors. And It wonders why biz Is bad! NO ADDITIONAL PATHE FINANCING FOR PROD. Pathe Film Corp. has no intention of doing any additional financing for picture production .this season ex- cept 'vvithin its own ranks. Return of Robert Young from Europe was basis for one report that the com- pany might cnlargo its scope of activities. In addition to not being directly connected with P.athe, it was ofllclally..stated that this trip was in Interest of Young's own business affairs. Frank F. Kolbe, president of Pathe, is member of Young, Kolbe &' Co. Attitude of Pathe pfflclals is that sufllcient product is being financed for First Division release, either directly or indirectly. Consequently, they see no reason for making ad "vances to producers outside the family ch'cle. Schedule of features for currient season is definitely set for FD, with Pathe known to be making advances on a majority of plx deals. EASIOFF TO LONDON Hollywood, Feb. Boris KarlofC is enroute to Lon- don to star in 'The Man Who Lived Again' for GaumontrBritiish. Actor' returns in May to resume his new one-year contract at Uni- versal, probably In 'Bluebeard.' PAB'S BADIO SONGSTBESS Terry. Walker, singer with Jan Rubini's bahd,""ha.<3 been Signed to a termer by Paramount thi'ough the WOR tti'Llats* bureau. She leaves for the Coast latei' this month. Should. Johti I<. Lewis, head of the United Mine Workers oic America, and leader In the movement for union InduBtrlaUzation, y^ithdraw from the American Federation of Laboir, lie may ha,ve the Interna- tional Alliance Of 'Theatrical Stage Employees . as one of his strongest supporters. George E. Browne, presl* dent of the I.A., Is ireputed to feel very Independent In the matter oC policy and If determining on so-, called vertical unionization, he will not; permit the A.FX,. to Interfere. The I.A^ Is admittedly In an ex^ oelient position to enfotce 'Indus* trlaII:;ation. In the show buslnesis from top to bottom. "V^Thlle on the fence officially so far as policy la concerned, with no positl've stand taken so far, .It Is belteved in Ini> foi:med union circles that . Browne may swing with: the Mine Workers and eight or more other unions,, including radio mechanics, which are pro-vertical.. During thie past week the Mino' Workers, authorized their leader, Lewis, to withdraw from the A.F.L,, following meeting of the executive coundil, of the A.F.L. In Miami, where the lA.'s exoc board lalso met^ There has: been no .statement fropa the A. .concerning its stand oh yertl- cal unionization and understood no definite line of action inay be de- cided until the studio situation Is straightened out.- Among other things,, jurisdiction of the soundmen is to be arbitrated. HORNBLQW'S NEW PAR PACT FOR TWO YEARS Hollywood, Feb. 4. Although, his current pact doesn't end until June, Arthur. Horhblow, Jr., has been glv^ti a new two-year straight covenant by "Paramount as associate producer.- . .Hornblow la.'skefied 'to produce 'Concertino,' cb-featurlng 'George Raft and .Carole Lombard | 'Houdinl the Great,* 'It Happened In Para- dise,' starring. Blng Crosby; 'Im- ported from Paris,' 'with Fred Mac- Murray; 'National Velvet,' 'Journey to Mars,' 'Count of Luxembourg,' 'Plorita,' 'Tower of London' and 'Hard to Handle.' Koplar-WB Suit Up Another stockholder .suit against .Warner Rros., brought by Harry fCoplar, St. Louis exhibitor who figured in the recent conspiracy trial against the distributors; cOmea up tomorrow (Thursday) In Wil- mington (Del.) Federal court, prig.i. inally_slated for trial Monday (3), it was postponed until tomorrow. ' Action Is similar to the Goldberg stockholder suit recently brought against Warners attacking the setn tlement of claims with this brothers. This settlement was approved by a majority of the stockholders at a meeting in Wilmington recently. Swarthout's Tour Gladys Swarthbut has left for » Week's rest in Nassau, Bahamas; prior to starting on a concert tour of the south. Miss Swarthout is on leave from the Paramount studios after com- pleting her second stai'rer for that company, 'Give Us This Night' JUIES iEVY WEST Jules Levy, v.p; and sales riian^ ager of RKG distribution, left for the Coast Friday (31) to visit the company's COast exchanges and for studio confabs. Mrs. Levy, accom- panies. They may go to Hawaii foi' holiday. SID BBOD A FAB FBOD. Hollywood, Feb. 4. Sid Brod has been upped to a pr ducer's berth at Paramount. He's been with the studio for 10 years as assistant director and unit manager. Connolly'^ Terp Task Hollywood, Feb. 4. Bobby Connolly has bocn .i.ssigne'l' to dtage dances in Warner-s' '.Sori.s o' Guns.' He did I'oiitines for stage play.