Variety (May 1911)

VARIETY CAPITALISTS INVESTIGATING INSIDE OF SHO W BUSINESS Group of Financial Men, with a Profitable Illustration Before Them, Send Out "Inspectors" to Report. Working Independently and With No Showmen Yet Connected. /Variety's story of a few weeks ago about a coterie of financiers deliberat- ing over placing the show business, so far as it could be gathered together, under the form of an immensely large capitalized corporation, stirred up a hornet's nest among other financial leaders, as well as theatrical managers who were concerned. It also brought to light a sequel that the vague reports spreading of late (without offering any trace of their authenticity) regarding "inspect- ors" who were about inquiring as to theatrical conditions, had substance behind them. Another set of money giants (entirely independent of the crowd associated with the theatrical managers), has been for some time quietly but carefully acquiring a full line of statistical facts on the show business. VxRiETr's story afforded consider- able light to the "outside crowd" as it is known, headed by the president of one of Wall street's biggest banks. It is not improbable that the two monled parties may get together on the the- atre proposition, although the "out- side crowd" is working along thor- oughly independent lines. The theatre, looked upon by the large operators as a greatly exagger- ated pursuit, with no substantial basis as a money getter, received a great uplift in the opinion of the bank- ing man referred to, when, to protect an advance of 14,000, it became neces- sary for his bank to take over a "small time" house. Unable to dispose of it, the bank instructed a clerk to operate the property, and close up the loan as quickly as possible, charging off the loss. Continuing under the direction of the bank's employe, that worthy one day reported to the president that the theatre had a balance in the bank of $10,000; $6,000 to its credit, over and above the loan of $4,000. The bank president sat right up In his chair at the news. He asked many questions. Soon after a repre- sentative of a big banking institution, having close relations with the loan- ing bank, was called in. The facts were laid before him. The bankers agreed that it looked as though the theatrical business had been neglected by men with money to invest. They sent for a showman. Without giving the the- atrical man any details, they wheedled out of him what information was wanted, and reached a decision that if a small theatre could show a return, as they knew the one operated by them had, the theatrical business was worth going into on the cold hard lines of commercial business. This led to the "inspectors," who have reported that there is a great waste in theatrical management, as seen by the mercantile man. The re- ports induced the financial group to secure options on three desirable sites in Manhattan Borough, and these are being held until a decided move is made. Variety's informant says that the immature plan of the bankers runs along "squeeze" or "trust" lines. They are of the impression that the the- atrical business may be corraled in so far as may be necessary, by holding out proper inducements to those need- ed for the successful promotion of their scheme, with others are to be gathered in through their arms reach- ing into about all the principal banks of the country. One phase of the scheme to acquire by wholesale is that, where a manager is found obstinate in releasing hold of his property at a fair offer, is to "squeeze" him through taking pains to see that his banking connections will refuse him any dis- count or credit asked, using that power also in such other ways as may be deemed advisable. The band of bankers, pending their final resolve after all reports are sub- mitted, have in contemplation the com- mencement of their campaign by next season. HAVEN'T BOUGHT STOCK YET. "There is nothing in the widely cir- culated reports that Cohan & Harris are seeking a controlling interest in the Cort theatre in Chicago," said H. H. Frazee, who added: "I own $60,000 of the $150,000 of stock, "Sport" Herman owns $30,000 and John Cort the remaining $60,000. I practically vote Mr. Herman's stock and Cort is not anxious to sell, but would naturally consider a proposition for the purchase of his interest. "I suggested to Cohan & Harris that they buy Mr. Cort's stock, my only object being that if Cohan & Harris were my partners in the en- terprise, we could thus secure the bookings of all the Cohan & Harris attractions playing Chicago, which, you can readily see, would prove a valuable asset to any playhouse." IilEHLEIt & CO. GOING OVER? There Is a strong report along Broadway that Llebler & Co. will book their attractions in "The Syndicate" houses next season. It is said that George Tyler, the managing director of the firm, has had two conferences with Charles Froh- man and that the latter will bring Tyler and A. L. Erlanger together. The Llebler shows played several of the "Syndicate" houses out of town the past season. This is believed to be the forerunner of a move on the part of the Llebler concern, now- aligned with the Shuberts. HAMMER8TEIN RAISING MONEY. Oscar Hammerstein expects to raise nearly a half million dollars by mort- gages on his New York properties. Of this amount Mr. Hammerstein has secured $200,000 by placing mort- gages of $100,000 each upon his Vic- toria and Republic theatres. $250,- 000 more Is expected from a second mortgage covering the Manhattan Opera House. The lien on the Victoria (Hammer- stein's vaudeville theatre) was given Tuesday to E. F. Albee, who secured an option also in the mortgage paper on the ground lease of the property, to be taken up within one year, when Mr. Albee may purchase it for $250,- 000. The amount as named is re- ported to be for publicity only. The price recently set by Mr. Hammer- stein upon it was $750,000. He was offered $600,000. If Mr. Albee de- cides to buy, the purchase price is to be adjusted. The loan of Albee, who Is the gen- eral manager of the United Booking Offices, was made by him (with the condition), according to report, to shut out Martin Beck. Mr. Beck at one time had an idea he would like to have the Victoria, and did negotiate for it; also Alexander Pantages. Nei- ther Mr. Beck nor P. G. Williams is concerned in the Hammerstein mort- gage. It is an investment by Mr. Albee all alone. HOPING FOR A DISPOSSESS. George J. Kraus informed some friends last week that he intended to dispossess Felix Isman from the ten- ancy of the Circle theatre on account of arrearage in rent. Should such a proceeding be con- summated Marcus Loew, who sub- leases from Isman, would probably be more than pleased to pay all ex- penses, as he has made no money dur- ing his tenancy of the premises with "small time" vaudeville. Possibly Isman failed to remit in the hope of such a course on the part of .Kraus, and if Kraus fails to carry out his declared intention to dis- possess, it is likely that both Isman and Loew will be keenly disappointed. SHIFT FOR ELuNGE. Julian Eltinge, in "The Fascinating Widow," will not open the fall sea- son at the New Amsterdam theatre as announced. His New York debut has been shifted to the Liberty, beginning in September. This shift was necessi- tated to give "The Pink Lady" an un- interrupted run at the New Amster- dam. "THE CONCERT" NEXT FALL. Charles Frohman, who has secured the English rights to "The Concert" from David Uelasco, has abandoneJ his intention to produce the piece in London this spring. He will present it in the English metropolis in the fall, on the promise of a loan of the author and star (Leo Uitrichstein) from Mr. Delasco for the English engagement. PROMISE IN "WILL O' TH» WISP." St Louis, May 3. Planning a summer run in Chicago, Charles Bradley Monday night pro- duced "Will o' t.h" Wisp" at the Olym- pic. The music is by Alfred G. Robyn, formerly of St. Louis, and the book by Walter Perelval who essays the titular role. The book, while not as strong as the score, gives indication that it can be worked up. The music is not as catchy as Robyn has written but whlstley airs easily can replace such numbers as the intermezzo. The plot is of a care free American student at Heidelburg, who trades his life insurance policy to settle his debts and then has perilous adventures es- caping death at the hands of an avaricious German landlord, and win- ning an American he' ess who is peeved because he kissed the land- lord's daughter. The opening scene discloses a rathskeller in the old German college town. The second act showing an Italian Garden en fete near Paris and is sumptuously set and costumed. An excellent cast includes Olive Ulrich as the heiress, pretty but light vocally, Cecil Cunningham and Josle Sadler are more happily cast. Ignaclo Martlnettl makes a signal hit, William Riley Hatch, Ritchie Ling and several others strive without opportunity. ALTA PHIPPS A popular lending woman In burlesque. CORT SIGNS IVORSAY. Lawrence D'Orsay, at present ap- pearing in the revival of "The Lights O' London," has signed a contract with John Cort for next season and will be starred in a revival of "The Earl of Pawtucket," in which D'Orsay appeared for three years. FIKLDS AND STAFF GOING. Lew Fields and his staff of play builders will bo over on the other side this summer. Mr. Fields leaves sometime in June. Kay Goetz, who will write the lyrics of the new Fields show for next season (Never Homes;;. Glen MaeDonough, the plot putter, and A. Haldwin Sloane, the composer, will get the groundwork of the piece to- gether while away. Mr. MarDonouKh, who sailed this week, will do some collaborative work with A. Raymond Hubbell. Mr. Hubbell left with him.