Variety (May 1936)

/i^edflesday, May 27, 1936 PI C ¥ n R E s VARIETY By owning upwards of 6,000 pre- ferred' of Paramount, or • ifouhd 130,000 votes, EJlectrlcal Re- leftrch Products, Inc., which was •prominent In the Internal opei-a- ^iiohs of Paramount during* the filni ^^Ompany'9 bankruptcy period, stands "i, chance of beconilng involved ggtfln. With others, 'ERPI cori- .^rolle>d one: of the Par creditor com- : intttees, at that. time. This Was limong the means by which John E. Ptt^r^'^h bounced from the presi- .d^ncy of the A. T. & T.'s talker Equipment subsidiary to the presi- dency of Paramount. It is expected that ERPi will vote its BUbsta;ntial stockholdings to sup- port Ott^rson. /There Is eVery prospect of a . jpotentlal battle between the A, T. & .♦T. arid Par's present bankers; iEAVY EXODUS FROM COAST OF PIC EXECS Gibson, Grtffis in Par Harvey D. Gibson, ^ ptesident of Manu'ifacturers Trust, has been elected' to the board of directors of Paramiount Pictures, Inc., replacing Percy H. Johnston, w^Hbse resigna- tion from the board was accepted at special meeting last Wednesday (20). Johnston is chairman of the Chemical Bank which Institution once held some Paramount securi- ties. At the same meeting, Stanton GMfflis, of Heniphili-Noyes, down- town Arm, was elected to the execu- tive committee, succeeding the late Gerald Brooks. Hollywood, Way 26* ^ Leo Spitz, Radio Pictures prexy, trained east Friday after studio conferences, with brief stopover in Plilcago scheduled: before proceed- ilhg to New York for company'.s an- nual sales convention. . After two. wfeeks Of confabs here Ipli olistrlbution nlatters and settle- .^ijeii't of details of Walter Waiiger J; George' 'J. Schaefer, United ' Artists v.-p. in charge of. distribu- , tlon, planed east. Neil Agnew, gen. sales mgr., and Robert M.' Gillham, advertising chief of Paramount, wound, up short studio prowl for production data to be submitted to Paramount's sales convention in New York and re- iurned east last week-end. Heading east for Metro's sales 'pow-wow after .10 days at Culver (Jlty studio; is Arthur Fields, com- fPany's repyesentaitlve In Paris, who came here for. product conferences. N, A. McKay, manager of Mary Plckford enterprises, other than production under the Plckford- 'Lasky banner, trained east for two wjeteks in. N. Y. on biz. Harry Hi Thonias, now out of his First Division exchange organiza- tion, is lining up producers for a hew Picture setup. Has been ne-. gotlating with such indie pIctu^•e- makers as Maurice Conn, Billy Haeckle, Victor and Eddie Halperin for consolidation, into a central dis- tribution group. He Is signaturing 14 Conn pic- tures, trade-marked Ambassador flickers, from Billy Haeckle, 16 pic- tures; eight Bob Steeles and eight Johnny Mack Browns. Eight pic- tures are also scheduled from Vic- tor and Eddie. Halperin. Besides these American pictures, Thomas is expecting six English BIP-Lion productions. II Execs on West Coast For Product Parleys R. H. Cochrane, president of Uni- versal, headed a party of company officials who left for, Hollywood Saturday (23) tor a parley on last- minute details of 1936-37 product llne-up, j, Cheever Cowdin, P. D. Cochrane and Willard McKay were In the official party. First confabs on the west coast scheduled for tomorrow (Thurs.).. WANGER'S ITINERARY In N. Y; Today (Wed.) for Final Pai Confab Before Sailing Hollywood, Alay 26. Walter Wanger stops off in New Tork tomorrow (Wednesday), be- fore sailing for Naples, Friday (29). He will confer with the Paramount h.o. execs on his final picture for that company. Likely that his last Picture will be in technicolor, to be staffed on his return from London, July 1, l.:.^^'*n.ultaneDus with the start of ''"^ i.^^' filni. Wanger puts in work , nrst of the group for United Artists .. release, 'Tliree Time Loser' starring «yivia Sidney. Yarn is by Gene iowne and Graham Baker. Goldwyn Improving Samuel Goldwyn, who underwent ren^il^^J^"^?^ this month, was dav P»-oeresslng nicely yester rtJ'r^-^ at Doctors' Hospital. inf , expected to leave the hos "ai In about a week. IIP NEW INDIE MSUB ORG. ROACH'S 8 FEATURES FOR DC HEXT SEASON Hollywood, May 26. Mjinlmum of eight features will be produced by Hal Roach for Metro's 1936-37 program, producer an- nounced on return from New York. Pictures will include two Laurel and Hardy co-starrers; one Jack Haley filmusical; 'similar pic with Patsy Kelly, Lyda iRoberti and Rosita Lawrence; one featuring Our Gang, and others still to be determined. Shorts by Roach this season will be limited to 12 Our Gang one- reelers. Briskin Gettmg Five Pix Away at Radio Hollywood, May 26. Five features are slated by Sam Briskin to go into production at Radio within next few weelcs. Starting wUh 'Mummy's Boys,' which started yesterday (25), others are 'Daddy and I,' June (5); 'Grand Jury' (8); 'Don't Turn 'Em Loose,' (10), 'Count Pete' (12), Report Not Ready for Two Weeks, but Will Recom- mend More Unit Produc- tion—Can't Stick at Par, but May Return UNIT PROD. Setting Universal Pictures' Refinancing Via 3 New Stock Issues; Disclose Financial HEADING EAST Hollywood, May, 26. Completing his survey of the Paramount studio as special ad- viser, Joseph P. Kennedy and staff, comprising Arthur Poole, C. P. (Pat) Scollard and Lucius Ordway, de- parted for III. Y; today (Tuesday)* W. B. Cokell, Pa,ramount treas- urer, who took part In the checkup, returned Saturday (23). Kennedy said another two weeks would be necessary beforb reports would be ready for Bubinlsslon to the Paramount executive committee on the. board. Kennedy Is hopeful that, in addition to his own findings on studio operation, ho can submit a general report oh the entire or- ganization which his staff in N. Y. is completing on distribution and theatre operation. Declining to shed any light on the nature of his findings, before leaving, Kennedy said the figures b&i.ng compiled are necessary to am- plify recommendations. Reported that he will ask that Adclph Zukor remain as production head on the Coast and encourage unit form of production. Kennedy, said he had too many outside Interests to confine iiis fu- ture activities to Paramount, but that If It, is necessiry for him to return here after submittit;g his re port he would oblige. Spitz and McDonough With Leo Spitz back from tlie Coast, J. R. McDorjough's associa- tion with RKO. following the ex- piration of his present contract, will be taken up. McDonough has been east on statistical v:ork in connection with RKO reorganiza- tion matters, RKO's reorganization: is expected by September. irv Briskin Moved Up Hollywood, May 20. Columbi- has elevated Irving Briskin to executive producer in charge of all Class B, western and action pictures. He replaces Robert North, upped to executive producer of class A productions. Briskin will have as associates John Decker, Maurice Pivar and Ralph Cohn. Wall St. Wondering Conditions point to Joe Kennedy making his report on Paramount, to the company board, tomorrow. (Thursday). He arrives by plane from the Coast today (Wednesday). Speculation is high both in the trade and in Wall Street about what Kennedy intends to report to, the Par board. ' There are several unof- ficial versions which remain uncor- roborated still. Insiders see Kennedy limiting his observations to production, at this time, and to the company's theatre situation. The Par theatre end has been under survey of J. J. Ford, as sociate of Kennedy. Y. Prank Free- man, v.p. in charge of the Par the- atre operation, stands okay in that situation. It is felt also that Kennedy's re- port will recommend continuance of production under supervision of Adolph Zukor, chairman of the boa'i'd. His report may deplore stu- dio conditions as he found them on reaching the Coast and Kennedy's accounts may detail tiie progress and iniprovements made since Zukor took charge. Thei'e are rumblings that Ren hedy may take cognizance of the management situation of the com pany, and the political situation, in ternally—at the studio and else- where in the firm—by recommend- ing stoutly that all politics be avoided for the good of the firm by all. ,Otherwise, studio progress' could be retarded and company operations as a whole could be damaged conr siderably. In this re.sp6ct, should Kennedy go into tlie management angle, at all. at present, he is calculated to ad- vise immediate changes up6'n tlie board membership, tlie executive committee and perhaps also as re- gards other officers. Kennedy may prefer to talk di- rectly to stockholders oC the com- pany about his work as advl.ser to Paramount, and about conditions in the company, so that the manage- ment phases of Par, beyond the- atres and production, may be left to a supplemental report, which Kennedy may make, following the stockholders' rac'eting on June 16. Washington, May 26. Plans for refinancing Universal Pictures were revealed .Friday (22) when the new management headed by J» Cheever Cowdin arid Robert H. Cochrane asked consent to issue numerous hew securities for jpur- pose of expanding capitalization. Fllihg three bulky statements, newly-organized Universal Corp., holding company formed March 31 to take over the various Interests acquired from Carl Laemmle, an- nounced intention of marketing more than. 300,000 shares of common iand of Issuing upwards of 1,500,000 new voting trust certificates. Documents did not hint at the amount of money which new owners expect to raise but isald- the receipts will be de- voted to Increasing ciapltal and, to financing production. Improvements, and purchase of equipment The first of the serliss of appll- catibus covers $4,000,000 worth of 10-year 6% convertible debentures which are now outstanding and 1,089,232% shares of $1-par common which will be represented by voting trust certificates. '. The second statement covers 80,- 000 shares of horpar S6 preferred convertible and .633,333% shaires -of $l-par common, which ialso will be represented by v.t,c.'s. The final statement covers 1,622,- 566 certificates for as many shares of the $1 common which will be Is- sued under the other two applica- tions. The company* will turn oyer 130,000 shares of the common men- tioned In the first statement to Hammons & Co., New York, which will underwi-I.te the refinancing move, and has planned to deliver 211,569 shares to pre-arranged pur- chasers. Tills part of the trarisac- lion Involved withholding of 222,566 shares for exercise of outstanding purchase warrants and 266,666% shares for conversion Of de- bentures. Statement showed 258,431 shares of this Issue are currently outstanding. Insiders' Price The price placed on" the ducats to be sold to the bankers and the pri- vate fustomcrs Is $8, although the purcha"i>e warrants outstanding en- title holders to buy In at $10 . on' any nevv issue; Price on stock Hammons will offer the public has not bejn fixed yet. The anticipated purchasers In- clude Paul G. Brown, 13,100; D, M. Sheaffer, 12,600;. William Koenlg, 10,000; Cowdin, 6,500; Douglas R. Warfield and WlUam K. Dick, 5,000 each-. Antoinette K. Brown, i2,500 and George G. Barber, 2,000, State- ment .said corporation believes 'sub- stantial amounts' will be taken at the 18 figure by varipus individuals. Papers also covered outstanding purchase warrants affecting 222,566 .sliares of common and certificates which win be Issued Instead of frac tlbrial shares when debentures are cbnverted or warrants are exer cized. The debentures are convert ible into common at prices ranging from $15 per share up to April 1, 19.38 to $25 after April 1, 19,44, The preferred stock, covered by the. second statement, will be with- held for conversion, with ccrtiti- cates being Issued. This security is cor.voi tible at graduated priffs ranging from $15 up to Jan. 1, 19;J9, to i'ii) after Jan. ], 194,';. Prospectus dl.solo.sed that 40,000 .sliares of preferred will be offered in exchange for $4,000,000 of the 10- yoar (Ifbentures now in circulation, while remaining 40,000 are .slated to reach the public through a banking house which^ has not been picked. Price on the shares to be put on the open market is not settled. Revealing identity of present big owners and throwing light on sal- ary figures, the documents filed with Hie fri.E.C. showed that now U man- agers expect eventually to simplify the intricate corporate set-up, Paper,s showed that the top com- pany now owns 37 subsidiaries in toto and 6 in part, and boH.<<es Uni- versal Pictures Co., Universal Pic- tures, Corp., and Big U Film Ex- change., No specific guarantee was given about the time when house- cleaning will take place or way the new owners^ expect to simplify their organization. Virtually all of the common stock now outstanding Is under cronfrol of voting trustees In accordance; with an agreement negotiated at the. time the purchaise took place. Trustees Include George N. Armsby of New York, Paul G. Brown of Philadelphia, CJowdIn, Garrettsoh Dullh and Dr. . H. GlanninI of Los Angeles; J. Arthur Rank of Eng- land, and Charles R. Rogers of Hollywood. Common stock outstanding well concentrated, with Cochranei controlling more than a quarter and only 21% in tlie hands of small groups and miscellaneous Indi- viduals. G. F. C. Corp, Ltd. of Lon- don, Iff down for 25%, Bob Cochrane for 10% and Julia Gochranib for 17%. The. salary statement' Indicated sharp paring of certain salaries and substantlar rises for other Indi- viduals. Report showed 26 execs and top. employee? last year pock^ eted $1,179,655. Carl Laemmle, Sr., who collected $173,982 last year, will get only $72,- 219 for the current year, while Carl Jr. will be shaved from $67>03I to $36^000, statement disclosed. Cochrane, who took $83,662 diir-. Ing the past fiscal year as vice- president of Universal Pictures, Big U Fllm Exchange and various sub- sids, win g'et apprbximafely $76,000 this year. Salary' up to the time the new management went Into of- flice aggregated $13,669, but the new prexy will drag down $6i3,000 for the balance of the year. Wlllard S. McKay, general coun- sel arid Charles R. Rogeirs, vice- president in charge of production, will draw about the same as before. iVlcKay was listed /for $37.1^0 <lur- ing the past year 4nd will .receive $700 a week this year, while Grain- ger,, who got $63,000. last year, is due to receive $52,000 this year. The Standard Capital Co., which Is loanl^ig Cowdin to be chairman of the new board, will get $1,750 weekly for his services, while Rogers'is to pocket nearly $100,000, at the rate of $2,000 weekly begin- ning February 1, 1936. FEW PK READY FOR CONV. OliE Holly wood, May . 26. District and branch sales man- agers attending trio of national, sales conventions during next couple of weeks will have very little of new season's product avallahle for screening. Par delegation, meeting In Chi- cago June 5, will glimpse only 'Chi- nese Cold' and few reels of 'Texas Rangers/ 'Mary of Scotland' will be about all thttt'.s available to show Radio selling force at New York pow-wow June 1. and 20th-Fox will have 'Poor Little. Rich Girl,' 'Private Number* and 'To Mary, With Love,' for its convention showing at C*hl- cago, May 29-30. "Variety" FOR SUMMER Prace a subscripHon for Variety' over the summer. From now until Labor Day. + + + $1.50 Mail remittance with name and summer address.