Variety (May 1936)

PI C ¥ ES VARIETY Par Statement on Kennedy «jf,e.'Board oi! Directors of I'aranlouht been giving-, careful con- fliderafclon: to the many serious problems concerning the: motion picture IttflaBtry, especially to those touching upon Paramount In particular; 00gja. have Hsen rapidly, in the stiidlo and sut»stantlal losses have been t^tcen on pictures made since January, 1935. 'the Board has made a search for a man best equfpped to advise the cpmpany. Findlrtg that Joseph P, Kennedy was available, the directors ■flad officers ""^"'"'''W^'y Invited him to become a special adviser for tl^^ purpose of making a survey of the situation to report and malie jrf(»omm.endation8. Mr. Kennedy hais accepted and will enter upon his iie;^('duties immediately. lb his role ias advisev he is assuming no direct authority. ' •Mr.^Kennedy.brings.a loiig and varied business experience to the aid of the company* He was fof a year and a h&!lf chairman of the U. S. Securities & Exchange Commission from which he recently resigned. Prevlojasly; he had been, a,banker and for four years he had an important ftid personal Experience in all activities of thfe. picture ibuslness. • 'Paramount, after a long profitable record, underwent reorganization 4ft, 19S5. On the completion of the reorganization Adolph: Zukor was elected chairman of the Board and John Otterson was elected president. Both continue in their offices.' Kennedy's Statfemqnt , 'r!have seen the'statement issued by the Paramount Corp. and there Js^nOthlrig l need iadd to it. except-perhaps, this: 'I have been called into the 8ltua.t;l6n by the unanimous vote of the dilrectprs jand Officers to glye such help as j may to a company that has a igreat potentiality but virhlch'. recently hsiis had rough sledding. How- thit pptentlality can be. most fully realized: What lines it should talce; wiat changes, if any lii. major policies—these are the questions I shall try.to answ.er in my role, which is equivalent to a Cpmmlttee of Survey «t»a Policy. • 'I shall take van offlcie in the Paramount Bldg. and shall soon go to the ' ELpw long the .engagement will be. Is undecided; that will be deiernUhed .by the time required to make rny findings. I am assured of the undiiiallfled support of the directors and officers. I fake up the survey no precondeptlpns.* , to Go; Joe Schnitzer in as Producer? Gvand National Films, when it accomplishes the liquidation of First Division and actually starts ppefatlng as a distributing and pro- ducing company, figures to go It alohe, apart and separate from jPathe -FIlm Corp. .Tiils. independ- ence of Pa the domination and the peculiar set-up which, seeis the State theatve,. Denver, forjnerly operated by Path$, coming under the man- agement of Grand National, has the industry pondering as to the Iden- tity of Edwjird L. Alp6rson's assor ciates In the hew organization. No queistloo but that fathe put tip little or^nP cOin. But'the same cpm ny be able to clear up Its big obligations and holding In FD, presumably, in return for the profit- able StaterDenVer op.eration. Also believed tlVat terms, included stipu- lation- that producers muist obtain raw film stock from duPont Film Mfg. Co., In which Pathe: holds a substantial interest and from which ■ It.wpiiia eventually benefit. •Offlc Ily and as far as Pathe ad- mits knowing, the other parties who came into 'Grand National unques- tionably with monetary backing, are Knph"n o.Vy as Alperspn*s associ- ates. Alperson, who has been asso- ^'*t^d.^^^'l^h Skpuras' Bros, in many theati'e and plctur'e ventures; qiilt J;^!* pOst with National Theatres (Foxi^^'est Coast), which Is Skouras-mahaged, on May 1, to assume presidency of Grand Na- tional Films; inc. Skouras Angles :"Tiii3 action is supposed to have Bevered ali connection with the Skourases, though it is reported tnat Skouras Bros, has had its eye on the Denver house for some tlnie. f'J"'^*nientai reasons advanced for tfJls interest is that the State has a consistent money-maker o^er a.fteiiod of years and the sole tueatrfe retained by Pathe after It "•Pke up its International chain of "leatres in i927. It has been oper- atea-evev since by Pathe until this Jl^wupt move in turning it ov«r to ^fand National for operation. Although this theatre has onlv 3.700 capacity and is on a Dft t ^'"'"^ reliably re- thl ^^^^ "^ore net annually nan many de luxe New York film hlT^' Whether or not it is to "e^niade the b^sls of a chain of the- abll* J'^ ^""^ Alperson prob- will bfe revealed in the course the next few week. Seml-oflfl- i'-ontlnued on page 29) Aarons Blows Metro Hollywood, May 5. Alex Aarons stepped put last Saturday (2) as production assist- ant to Sam Kaitz at Metro, .winding upi his association at studio. Former N. Y. musical producer will take a Broadway vacation be- fore announcing his new plans. Goldwyn's 2d Operation, But Not Deemed Serious Although he has recovered from tlie" intestinal toxeinia which sent him to Doctors' hospital, N. T., im- mediately on returning from Eu- rope three weeks ago. Sam Gold- wyn will undergo another opera- tion today (Wed.) at that hosp. He has been bothered for some years by a condition which resulted in (he- toxemia and doctors advised tlie .United Artists producen-owner that It would be wise to have the op performed at this time. Operation not regarded as serious and expected that Goldwyn will be able to proceed west in about two weeks. While two pictures, 'Dods- worth' and 'Come and Get It' are set to gQ, two others which Goldwyn also wanted to liave ready for pro- duction by June 15 will be delayed by his Illness!. Mr.s. Goldwyn remains in New York but Sam, Jr., has gone back to Hollywood and school, making the trip alone. Cohsidine's New 3 Yrs. Hollywood, May 5. John W. Considine. Jr., who has been producing at Metro for the past two years, has signed a new three-year agreement, which be- comes effective when he returns from a vacation in late summer. FIRST Bl BOTH Zukor Tells'Em/No Stalling pn Production'—Kennedy Already on the Coast with Financial Aides HUDDLING Hollywood, May 5, Adolph ZukoF arrived ifrom N* Y. yesterday .afternoon (Monday) and immediately went to the Paranaount lot ^or conferences with William Le- Baron and other studio executives. In talk with them he made It ob- vious that he was in charge of Paramount production by telling them they had to get underway quick with new production and that stalling for N. Y. decisions was out, as he was standing by. and that decisions Would be made here. Zukor conferred this mornlner with Joe Kennedy and Pat Scollard, as well as studio execs, who gave them the lineup on general setup and production plans. Kennedy took over the pfllces occupied by John E. Ottei'son, while Scollard went into the suite vacated by Watterson Rotiiacker. EGLI JOINS DE MULE Hollywood, May 5, Joe . gli. who has been chief of staff in the Paramount tasting de- partment for the past eight years, returned from two months' vaca- tion and was moved out of the de- pai-tment to the Cecil B. DeMille unit to become casting director on 'This Breed of Men,' set for July shooting. Kennedy' Accepts Having accepted the post of ad- viser to Parantiount, Joseph P.. Ken- nedy has started on his assignment by making an immediate survey of the Coast situation, Kennedy's acceptance was announced officially on Friday (1), following a Special meeting of the board. Kennedy will not contact the Executive Committee again ttntil ma,king a final report. This final re.- port may be submitted within a month. Simultaneously -with Kennedy's acceptance, the board has asked Adolph Zukor, chairman, to devote more time and effort to the produc- tion side of the company. Zulcor also, is on tli.e Coast. Walter. Cokell, Par treasurer, is another who has left for the Coast to assist, Zukor and Kennedy. Kennedy has assigned an assor ciate, John Foird, theatre manr~fo" sit in oh the Par homie office thea- tre situation. C. J. (Pat) Scollard, another as- sociate, is on the Coast with Ken- nedy. Without officially notifying Par that anyone was accompanying him besides Scollard, Kennedy brought Lucius P. Ordway, Jr., downtown man, along with him aboard the plane Monday (4) for the Coast. Ordway is a financial expect with offices in the Wall street sector, and will act as a Kennedy aide. 'In his (Kennedy) role as adviser,' says the official communication from the company, 'he (Kennedy) is as- suming no direct authority.' What Kennedy's remuneration shall be isn't Indicated, Apparently his compensation Is to be fixed at a later date by the board. Kennedy has a definite film back- ground and is also a successful banker with wide experience, such as the international scope of Par operations require. Among his conditions of ac- ceptance, it i.s held, was that stock- holders be informed fully. There is an annual meeting In June. Par's future setup may depend on Kennedy's recommendations. The company has been having a rough time and has been the target ad- ditionally of considerab'.e sideline sniping so that the task which Kennedy has undertaken is one which may have its difficulties. It was immediately following Emanuel Cohen's resignation as studio head, early in 1935. that pro- duction costs began to rise; finally resulting in the current perplexing situation. Cohen was compelled to resign by the Par trustees. Leake and Cohen Much of the liressure against Cohen .leemed. to have come^ from Eugene" W, Leake, one of the trustees, although, under CPhen, (Continued on page 70) Bemerd in America and Execs Green Pastures Hollywood, May 5. Color scheme at Universal becomes green under new re- gime after miapy years a splashing red. Old color held too Indicative of state Of finances. SCHAEFER-WEST TO SIT IN ON WANGERDEAL Hollywood, May 5. George Jv Schaefer, general sales manager for United- Artists, arrives here by plane tomorrow (Wednes- day) morning from N. Y. to.be pres- ent with Mary Pickford On final discussions with Waltej- Wanger re- girding latter joining U. A. fold' as- prpdiicer. Wanger's releasing con- tract; made ^n N. Y. and. revamped here over the weekend, la under-, stood satisfactory to Miss Pickford, with Schaefer going In to Iron out several points. Adplph Zukor, who arrived her:e yesterday (Monday) from N. Y., has made further overtures to Wanger to remain in the Paramount fOId. However, most likely Wanger Will sign the U. A. deal. Jeffrey Bernerd; generail riianager." of Gaumpnt- ritlsh, spoke to .Mirk Ostrer on the trans-Atlantic tele- phpn.e yesterday (Tuiesday) anent the recurrence of the reports possible sale of (raumpnt- 20th Century-Fox. Ostx'^r em- phatically, told Bemerd that. G-B was. !nOt for sale.' (Coincidental presence of Joseph M. Schenclc, chairman of the board, and Sidney R. Kent, president pf 20th-Fox. now •i,n London, has renewed tlie reports of a deal for Fox to buy out, G-B 100%. 20th-Fox; is already a 4>% partner in tjaumont-British. Ostrer stated that Kent and Schenqle were cabling their Amftri- caih home-office to similar-effect, re«. allzing that G-B of America cue* rently has an imniinent selling sea* son on its/hands, for which pur* pose Bernerd Is' prolonging his stajT In N. Y, 'Ostrer rtiassufed Berherdt that the company 'would continue to function as is.* A. C. Blumehthal, according .to Ostrer'a telophonic communication to Bemerd,. had seemingly steamed up WardOur street, London's, film row, with his efforts) to-promote a deal. SALE OF G.T.E. ASSETS IN WILMINGTON MAY 10 Wilmington, Del., May 5. Sale of the assets of .General "The- atres Equipment Corp, Was author- ized by Chancellor josiah O. Wol- cott to take place May 10 at the Public Building here. U. S. Senator Daniel ;o. Hastings, is the receiver, ■who is given the authorization. Upset price aggregating $3,667,- 932.40 was fixed by Chancellor Woi- cott. Assets consist mostly of stock in picture companies and other cprporatlons. Sale is part of the Aug. 31, 1935, reorganization plan and is authorized on petition of a committee of debenture hold- ers which has resolved itself into a reorganization committee. Petition for the sale was present-, ed by Aaron Finger, attorney. Re- ceiver is to report on it to the court May 20. 60G to Cravath Firm, 39G To Kuhn-toeb by Court The V. S. Circuit Court of Ap- peals. X. y., on Monday (4) reversed tlie recent ruling of the District Court and awarded the,law firm of Cravath, deGersdorff, Swaihe and Wood $60,000 as compensation for acting as attorneys for Kuhrt, Loeb & Co., during the reorganlratlon proceedings of Paramount in 1934. At the same time the higher court directed the payhierii to the broker- ago firm of $2.'5,00(T as compen.sation and $14,000 disbur.sement.s for Its .ac- tivities as agents for Paramount during the reorganization.. Boett?ger oh Coast Hollywood. Ma.v 5. .John Boettigcr, son-in-law of President Roosevelt lind one of Will Hays' a.s.sistants, arrived here fur a conference willi his chief yesterday (Monday). In London London, May 5. Pex-sistent reports continue locally that Sidney R, Kent and Joseph At, Schenck are liere negotiating pur- chase of the Ostrera! holdings In Gaunjont-British, acting for 20tli Century-Fox, Schenck told VARrerr, liowever, that the matter has not even been under discussion recently. There bave vbeen a numbier of discussions on the situation in the past, it seems, but nothing definite. The Ostrfers cannot sell to anyone but Fox; without Fox consent, which consent, says Schenck, has never been sought.' Lord Beaverbrooic tried to nego- tiate for the Ostrer holdings som time ago with Fox consent, but the Osters wouldn't even talk' it at the time. Asked about the A. C. Blunienthal negotiations to buy the Fox holdings, in Gaumont on behalf of C. .M« Wooif, Schenck said that Blumfin- thal never made any proposition to the company but admitted that Fox was both free and willing to sell at a 'fair price,' Kent and Schenck are here frorti: Paris whei'e they presided over the foreign sales convention. KOHN BACK TO COAST, SCHULBERG'S OFFERS B. P. Schulberg and Ralph A. Kohn wind up with Columbia in a couple of weeks. They have pro- posals from at least two major flrm.i but it is unlikely that they will de-, cide upon a connection Immedi- ately. Kohn who has been In New Yoric oh several matters for around a woQk plan.ed back to the Coast yes- terday Cl.'uea.). Hicks pn Par O.O. John W. Hlcks, .rr., elected v. ,. of Paramount at the board, meeting April 23. sails today (Wed.) for .% survey of Pkr dietrlbutio' oiieratlona in England and on the Continent. He will be gone a montii Of more. Before' Paramount International \yas absorbed by the parent Par compft y. Hicks was a v, p, of thia foreign sales subsidiary. RKO Producers Renewed Hollywood, May 5. Lee Marcus, William f^istroni and Ed Kaufman had their options taken up at Radio, AU are on production staff. Ruben Termed at Metro Hollyw-ood; May J. Walter Ruben has drawn a ne;>T term contract at Metro, following his completion of 'Suicide Cliib.' Direction pf 'Old Hutcli' is first assignment under new piot, Harry P»apf producing and Wallace Beerjr Starred.