Variety (Dec 1941)

PICTUBES Wednesday, December 10, 1941 Rathvon Likely to Become a V.P. Of RKO as Odiums Rep;SchaeferOK'd N.-Peter Rathvon, chairman of the executive committee of Hadio-Kclth- Orpheum Corp., Floyd Odium's rep- resentative on the board, will be- come more active in company af- fairs as a resuK of policies now be- ing formulated. Hathvon, who now occupies B separate office in the RKO Bldg., has been keeping tab on nximerous Odium Intiiests, such as the Madison Square Garden Corp., Bonwit Teller's, and various .other companies in which Odium has large financial Investments. This is in addition to Eathvon's close attention to the film produc- Ing-distributing and theatre com- panies. Probability is that Rathvon may be designated a vice-president of HKO: shortly, as indication of his in- creased duties, with specific assign- ments currently being discussed. Advisability of reducing the current RKO board of directors from 12 members to eight is another point BtiU being debated, with question as to whether a change from the pres- ent setup would result in greater flexibility yet to be determined. George J. Schaefer stays on as prexy of RKO, with authority un- diminished, signaturing of a new contract now being merely a for- mality. General agreement for con- tinuation of the current manage- ment, with Schaefer at the helm, had previously been arrived at and was okayed at a meeting of directors last Wednesday (3). Terms and duration of the new Schaefer con- tract; which have not been definitely fixed, from accounts, were discussed during the Wednesday session. Par CaHs In $4,000,000 Worth of 2d Pfi Shares At $10.60 Per on Feb. 3 B'way Tycoons They're gagging that next to war industries, big businesses might be labeled Olsen & John- son and Max Gordon. Gordon has four shows on Broadway, and, wherever you look, you see O&J, either with 'Hellzapoppin' or 'Sons o' Fun, or coming to "the Rivoli:_ Screen version of 'Hellzapoppin'. HENIGSON AGAIN GJH. OF SELZNICK AGCY. HoHywood, Dec. 9. Henry Henigson resumes as gen- eral manager of the Myron Selznick agency on a recent deal made in New York. He occupied the same post t«)b years ago. Selznick Is due here Thursday (11) after six weeks in the east Redemption of all outstanding sec- ond preferred stock early next year was authorized by the Paramount board of directors last week, a move which has long been contemplated by the company althoiigh the method . „ . Jr. calling'in ?he shares was.unde- fe.-'E,S? Williamson in Pro Tem Charge for WB in Atlanta For the time being a district man- ager will not be appointed to suc- ceed Ralph -McCoy for Warner Bros, at Atlanta, but his successor there over the exchange, W. C. Williamson, Jr., will be In virtual charge of the situation locally. He was formerly exchange head for Warners at Mem- phlc- McCoy, who came Into the home office during the past week and will make N.Y. his headquarters, has been appointed ' southem-mldwes- tem division manager in charge of most of the- former duties of Ben Kelmenson,'while Henry Herbel is promoted to haniUe the far west under supervision of Kalmensdn. Herbel has been district manager over th« Los Angeles territory. As ■outhaastem. district chief, MeCoy had also acted as Atlanta branch monacer, in effect filling two posts. Henry Krumm, Dallas sales- for Wamersi is promoted to Slapping Aronml Their Owi Hollywood, Dec. 9. Harry Langdon and Charles Rocers are pulling a two-way team Job tor Producers Releasing Corp, not only slapsticklng each other as acton, but huddling together as co-writers of gags. No title set yet Comedy, stUi untitled, will b« pro- duced by Bernard B. Ray, Rnbin, Zakor, trs Promise Pix Biz -Op to NYU's Classes Cooperation of the film hidustry was promised last week by J. Robert Rubin, v.p. and general counsel of Metro, to New York University In the conduct of its new curriculum In motion picture writing and pro- duction. Rubin represented the In- dustry at a tea held at the Uni- versity to Inaugurate the new pro- gram. Speaking for NYU were Dean Charles Maxwell McConn and Prof. Robert Gessner, who is in charge of the film course, which Is a four- year affair leading to a degree of Bachelor of Arts. Among industry- ites who ^ attended were Adolph Zukor, who spoke briefly, pointing out how much progress had been made in the past SO years, when a university begins to develop writers especially for the screen. Others who were on hand Includ- ed Barney Balaban, Austin Keou^, John Byram, Richard Mealand, Les- lie Roush, Justin Herman, Al Wilkie and Hiller Innes, all of Paramount; William . Fadjman, Metro; Coles TrapneU, 20th-Fox, and Carl E. MiUiken, of the Hays office. One hundred studes are currently taking the film courses, with 2S of them majoring in the sublect. elded until recently. Second pre- ferred will be redeemable on Feb. >. at the redemption price of $10.06 a share, with outstanding scrip on this issue naturally included in the re- dteption call at a rate proportionate to the redemption price. - With 412,200 shares of second pre- ferred stock Including scrip present- ly-outstanding, it's figured that re- deeming of these shares will cost the company ^around $4,O(|0,00O. How- ever, ihere.is no assurance that call- ing these shares will cost Paramount that amount b^ecause second pre- ferred holders bave iintll Jan. 20 to convert their ^ares Into common. With BOc paid or declared payable this year on the oommon, and Par saving $247,320 in annual divvy, pay- ments on the second preferred as a result of this redemption plan, nat- ural supposition in financial circles Is that many second preference Issue holders may switch to the common rath^ than dispose of second pre- ferred shares. Second preferred is convertible oin or before Jan. 20 into common, b^ not ..after that date, on the usual stipulated basis of nine shares of common for each 10 shares of sec. ond preferred. Common has -been selling at slightly better than $1 per share higher than the second pre ferred, representing the differential on the exchange basis. All of these preferred shares not . converted into common will be re- deemed from cash in company's treasury, last cash balance of Para- mount azti subsidiaries being figured at $27,060,000. Company listed 22,600 shares of this second preferred as held in the treasury. Debentures Swap The exchange offer of Paramount to swap outstanding 3V<i convertible debentures for 4% debs (due in 1956) last week was extended to Dec. 11. Far decided at a special meeting on Nov. 10 to redeem aU 3%% con- Tertible debs outstanding on Dec. 12 end at that time extended Its ex. change offer from the November date until Dec 5. At that time more than $10,200,000 of the 3V4% deben- tures had been surrendered for ex- change or about 80% of the debs outstanding, making approximately $2,800,000 still to be redeemed oeeding Williamson there. Fred Jack, Dallas district manager and an old Grad Sears' man, bad been mantiooed often for divisional promotion foUo?rlng the appoint: ment of Kamenson general sales manager. One report -Is that he is satisfied to stay whera he Is. Haraai's Indie Inker Hollywood, Dec. 0. Tannyfon'a <dd logUsh sagas of chivalrous lough ftuil will be fadi- ioned InU) a Technicolor cartoon, nunc Arthur Knights,' to be filmed by Hugh Harman Productions, Inc. It Is tha first Independent produc- tion by Harman, who recently left Metro to go out on hli own.' NICK DEAN OUT ON $25,000 CASH BAIL Nick Dean, alias Nick Circella, Chicago gangster charged with ex- torting $1,000,000 from major film companies by the Government was freed on ball Thiursday (4) from Jail when he posted $25,000 in cash. Dean will be tried along with IjOuIs Kaufman of the Newark local of the International Alliance of Theatrical Stage Employees e^rly in January. Dean also operated the Yacht and Colony Clubs in Chicago and was reported to be George E. Browne's bodyguard and right hand man; He and Kaufman are accused of black- jacking the major< film companies into paying him money to avoid a strike In the lATSE. Stndio Contracts Hollywood, Dec. 9. Sig Grolich drew a stock player ticket at Metro. . Frank Orth inked pact at 20th-Fox, Millard Mitchell's player option lifted by RKO. Mark Daniels handed actor con- tract by Metro. Frank Orth drew player ticket at 2OU1-F0X. Arthur . Space, New York legit actor, signed for three pictures at Metro.' Roddy McDowall'i player option lifted by 20th-Fox. Marching Orders Hollywood, Dec. 9. Hal Roach's latest contribution to the uplift of military service, 'About Face,' goes Into production .today (Tues.) with Kurt Neumann as di- rector. William Tracy, Joe Sawyer, Mar jorle Lord and Margaret Dumont head the cast Jack Warner Picks Up Much WB Stock, Col Exes on Own Co.; Par s Big Trades Washington, Dec. 9. L«rg«-walc dealing by Wall Btreet- •rs In film atooks during October, and string «< Jask Wamar purchases, were unveiled last week In the most recent SecuriUea U Zxchange Com- mission report on Insiders' opera- tions. Manufacturers Trust Oo. worked both aides of the (tract unloading $3,341300 worth of Paramount's 1947 series of SMi% debentures In four batches and picking up seven bun- dles to make a net reduction of $3,- 172,800 worth. Tht banking firm ex- changed the paper for. some other investment, not Par, and wound up October with only $20,000 worth of debs and 4,710 shares of 6% convert- ible first preferred. The Floyd Odium outfit was active In Radlo-Kelth-Orpheuuil picking up 10,800 $1 par common ducats in 10 transactions. Biggest buy was 2,500 shares. Month's ojieratlons boosted the Atlas <5orp. portfolio to 834,223 common shares. In addition, Atlas holds 827,812 common warrants, while American Co. has an Interest in 268,230 common shares and AUas also accounts for 47,571 pieces of 6% convertible preferred. Aties bought 1,500 shares of the preferred during October, in four trades. Jack Warner was actively boosting his holdings of Warner Bros. $5 par common throughout most of October. In 15 .transactions he added 22,900 tickets, raising his pile to 126,860. The biggest acquisition was 9,100 but he also had some bu|iches of "2,900, 2,500 and 2,000. Three ground floor occupants of Columbia swe^ed their holdings of no par common. Samuel J. Brls- kln grabbed 1,100 in four instalments, raising his total to 1,800; Benjamin B. Kahane picked up 500; and Abra. ham Schneider - acquired a similar amount, giving him a total of 2,104. Briskin accounts for 13,133 common options and Schneider has 7,860. Loew's Boston Theatres purchases by the parent Loew's, Inc., contin- ued. Further small-lot acquisitions aggregated 121 shares, makioc the parent's holding now 118,688. Par WodM Consolidate 5 Suits By StoddnUeis; OK on Loew s 8, WB's 10 Short's Long Green Hollywood, Dec. •They ShaU Have Music' Is only • Metro short but it has one number that cost $87,000. Originally tha tuneful aequenc* was filmed for studio's 'Zlegfeld Girl' but not used. Other tunes are being wrapped around it by Frank Whitbeck, producer. Moss Chief Barker PhiUy Variety Club Philadelphia, Dec. 9. Edgar Moss, Philly branch man- ager of 20th Century-Fox, was elect- ed Chief Barker of Tent 13, Variety Club, at a meeting of the board of directon at the club's ^headquarters In the Bellevue - Stratford on Sat (6). He succeeds Earle Sweigert William A. MacAvoy was elected treasurer, and Elmer O. Wllschke house chairman. Uembers of the board of directors chosen by the membership two days prior were: Harry Blben, James P. Clark, Al Davis, AI Fisher. Charles H. Goodwin, MacAvoy,' Moss, Ted Schlanger, Sam Stiefel, David Supo- wltz, Wllschke, Jack Beresin, Swei- gert Dr. Leon Levy, Jay Emanuel, William Clark and Ben Amsterdam. The banquet committee announced that if the present war emergency permits, Vice President Henry A. Wallace may .attend the Variety Club's annual banquet Sunday (14) At the Bellevue. Already accepting Invitations are U. S.' Senator Tom Connolly, dialrman of the Senate's Foreign Relations Committee; Post- master General Frank C. Walker, Secretary, of Commerce Jesse Jones, and Public Information Coordinator WlUiain J. Donovan. Toastmaster for the affair will be former New York Mayor James J. Walker. 'Ringmaster' will be Henny Youngman. A sellout of the more than 1,500 tickets was reported. The ducats are $10 each plus $1 Federal tax. KoianowBkl Heads Boffalo Buffalo, Dec 9. Variety Club, Tent 7, has elected Stanley KozanowskI, manager of the Rivoii, as Chief Barker. Other offi- cers are Elmer F. Lux, first assistant chief barker; Andrew;Gibson, second assistant chief barker; W. E. J. Mar- tin, secretary-treasurer for the sev- enth consecutive year.. Directors are Lux, KozanowskI Martin, Gibson, Irving Fried, Ralph Maw, Sidney Samson, Murray White- man, Dewey Michaels, Matthew V. Sullivan, Jr., Nicholas J. Basil. M-G Playing It Safe Hollywood, Dec. 9. To avoid any more possible trouble with the church, Metro is remaking' several scenes in 'Woman of the Year.' Picture is nothing like "Two Faced Woman,' but studio execs have decided to re-shoot situations that might invite criticism. Katharine Hepburn has been summoned back to the studio for ttie revised scenes.- | Paramount Pictures. Inc., applied to N.Y. supreme court yesterday (Tuesday) for permission to consoli- date five stockholder tulti against it its officers and directors In connec- tion with payments mad* by these officers and directors to George E. Browne and William Bloff, former president and west coast representa- tive of the International Alliance of Theatrical Stage Employees respec- tively. Stockholders all seek the same relief, namely, an accounting on approximately $100,000 paid to the discredited labor leaders. Paramount is also asking that the applications of the five plaintiffs to examine its officials before trial be stayed. The film company filed a general denial to the charges, and stated as. a separate defense that its officials had acted in good faith and in the best interests of stockholders, and since the acts were in good faith, no demand for a return of the monies could be asked. Paramount in seek- ing a dismissal also says-'that the three years statute of limitations bars the plaintiffs from making any claims against it Ten stockholder actions agninst Warner Bros. Inc., were consoli- dated in N.Y. supreme court Mon- day (8) by Justice Ferdinand Pecora. The court appointed former Judge Alfred J. Talley as chief counsel for the plaintiffs. All suits arise out of the payments made by officers and directors of Warner Bros, to Bloff and Browne in their respective positions as west coast representatives and president of the International Alliance of The- atrical Stage Employees to prevent strikes being called in the lATSE. . An application by the plaintiffs to ex- amine officers and directors of Warner Bros, before trial was stayed. On Friday (5)^ Juslce Isidor Wasservogel -granted a plea by Loew's, Inc., and consolilated eight stockholder suits against it based on the' same type of payments by Loew directors. Browne and Bioff were convicted and sentenced to eight and 10 years, in prison respectively, after being found guUty in the N. Y, federal court of extortion. Judge John C. Knox yesterday (Tuesday) allowed the labor leaders until Feb. 10, ,1942, to file their bill of exceptions and assignment of errors on the appeal. The Judge also extended the time of the court to one year further, Feb. 10, 1943, to have jurisdiction over the appeal. Bloff and Browne's attorneys had re- quested the extension pointing out th^t there were 2,180 pages of min- utes plus tiumerous exhibits, and these could liot possibly lie ready for filing with the Circuit Court of Ap- peals by the expiration date, Dec. 12, 1941. Nick and Weston Check Into the Clfflk Jan. 1 St Louis, Dec. 9. John P. Nick and Clyde A. Weston, ousted heads of the local lATSE, will start the New Year in a United States Federal clink to serve a five-year jolt for violating the anti-racketeering statute. The man- date of the U. S. Circuit Court of Appeals, upholding their conviction, was received by the U. S. marshal last week and it required them to surrender him within 30 days. On Nov. 24 the U. S. Supreme Court refused to review , the Ap- pellate Court decision, and while tha defendants have the right to ask the tribunal to reconsider that ruling it is not likely this will be done in- asmuch as. they lost the decision In every legal bout since their Indict- ment. Each is at liberty on $20,000 bonds. They were convicted of extorting $10,000 in 1936, and $8,500 in 1037, from flicker house operators while wage negotiations for projectionists were pending.' Can. Honse Burns Reglna, Sask., Dec. 9. Empress theatre, Ponoka, Alta., was gutted by fire of unknown origin recently and adjoining home of B. R. Headley, theatre owner, was dam- aged. Theatre will be rebuilt soon.