Variety (October 1921)

f T-- Friday, October 7, 1921 PICTURE S •*r> WRECK TURNED TO SOLVENCY: MAY RErENTER PRODUCTION BUSINESS '^ i Stateaieiil Shows 1918 Debt of $2,300,000 Turaed ^ACQUITTED FOR - Into Surplus of $30,000—Stock Concentrated in Few Hands. ^ f I Tbf long expected financinl Klaic- neat of th« TiiuDfU Film CorporJ- tioB uu.lt r its uew management cair.e #at this week aad ceotaiBed tvro ^fnbhbells. The debt of January, 1018, ainoulit- ii^ to |2j500,000, when all the indka- tio were tliat the auctioneer's flag wtiH uuo^n to fly over the home officei*, lias been turned into a surplus of be* tween $90,000 and 940,000. The derelict Triangle company, long out of consideration as n factor in the trade, may re-enter the produc. ins fi«l<l* These are the two high lights of the situation,^but behind them arc ^ Bitoy developments. With the company solvent and thei* tome, the stock is sailing on the Curb at from 35 to 50 ceq^ts. There are those in the indastry who maintain the stock is not really ''selling" at all; that it is merely paasing for the most part from the right to the left hand of ceiiMiu controlling interests. The 9i(Mk never dropped below $2 a shaie when Triangle was a producing con- cern. Now its anbatantial rehabiUta- tiaa is all bot established. No later than last week the stock was report^ ed at 35 centa a share. The answer ; p wb ably is to be found in the loose system of doinc business which pre- vails in the ^'outside market.'* Working in "matched orders ' pvashing'') is in dtarepute on the Stock Bvehange to such an extent Bswadays that it entails drastic pen- alties il! the way up to practical ex- pafadoB. But in Curt trading it goes en Ifterally. By this device an inter- est which hohls a fair block of stock can work prir4»s up or down, and whfle the trading will have the ap pearance of open dealings, the ntock win be kept In the poflsesHlon of the oviginsi holder while having the ap- pearance of changing hands. \ C«rfc Oparatl^M Apparently some Triangle interest has ased the 'Iwashing" scheme to A<aw oni old and half-forgott4*n hold- ilgf* the obje<>t being to add to its swn large porses»iolks of voting stock. , The stock which i^ offers for Hale i- ^hnys back by the system of matched "aiders, aad at the same time stock altered for sale by some bolder out side the arrangemei>t is quickly taken • The foregoing \ii a round about way of s^yiag that the interosis which have radvaged Triangle have seen to II that they themselves shall hnve the fiKit» 01 iinMr rtMiMtrurlive work. Ti.i* management which has taken a pruc- tically defnnct bufiiuoss orgmizalion •ad mnile \t into an instrmnont for woney making business operation hi;s • wmply taken .idvantage of n trailing eifiinent. The whole mmpaiKn of gotiing con- trol Is a detail; the bin fad is thnt n business regime hcadi'd by V. L. AVat- ''vs, the president, who took over the Trianglp wreck. lia>: snlvaRcd it i>y <»nstructive, conservative manaxr- Blent. The financial .stfltoment romes in the form of a 'Tonsolidated Halanf' oh^et as of Juno ,S0." which is ap- pended. Variety in its comments has •••▼eral times pointed out thnt balance «heet.s are a kind of lopcrdoniain for beyond the ken of ordinary intelli- gence. For tjijv. reason attention is jjilled to the item called **r,o(Hl-wili. •Trade-mark.^, etc." ' It well mi;;ht b.' that really subsfntial and tangible •qmties are included in thiv general Vn\ indefinite designation wbicb would materially alter the aspect of the sur- vey. Figure Script Values AnoilnKr el^^inent in tbe survey which does not receive the'potential importance it descr\'es is disclosed iu the paragraph third from the List, in Mr. Waters' statement to the stock- holders. It reads: *-Trianglc is the owner^of all the photoplay rights in the stories and scenarios from which it has produced motion pictures and in a great many from which no motloh pictures have as yet been made. The original costs of these rights lu stories and scenarios varied from $7;! to $5,000 each. The present value is very great but cannot be accurately estimated." In this inconspicuous statement lies the principal interest in the other statement of Mr. Waters, dealing with the future new prodne tion activities of the compauy. President Waters' statement to the stockholders says: ^Tou will find enclosed a Consolt> dated Balance Sheet of Trangle Film Corporation and its anbaidiary com- panies of June 90, 1SI21. prepared after an audit by Messrs. Haskins & Sells, Certified Public Accoontaiita. "The last certified audit of the books of this company, prepared by Haskins & Sells under date of Janu- ary 2. 1918, showed the liabilities to be $1380,000, and hi addiHon to this indebtedness Triangle Distribnting Corjwration, a subsidiary, had an oat standing indebte<&iess of $700,000, the payment «f which indebtedness was guaranteed by Triangle Film Corporation and secured by the pledge of all its assets including negatlrea. po si tires, stock owned in subsidiary companies and a chattel mortg.ige on all furniture and fixtures, m.nking a total linhility of the two compcnies of J«.a80,000. "It was in the early part of 1018 that the present oflieers of Triangle became actively connected with its nf- faira, immeiliately effecting many e<?onomies. Expensive production at tivities were discontinued and advan tageoMs contracts were nade' for the distribution of the Triangle product on hand. Diatrfbatiai AflraanaBt "As a result of the operations since Jan. 2, 10IS. all of the above indebt- ednesa of Trianffte Film Corporation pnd of Triangle Distributing Corpora tion has been satisfie<I and all of tb» pecurities released from pledge and mortgage, and relurne<I to Triangle, which it now owns free ami clear "On or shout the 11th day of Nov. 1020, Triangle entered into a contract with the Film Distributors' League. Inc.. whereby the latter agreed to pay to Triangle Jhe puin of $S77.0<)0 dur- ing r tx'.fiod'of "KW wreics from Nov ir». 1020, on account of which there had been nni«l on June .'W. 1021.. thr R'M'i of $110,000. The balance of $728,000 t^obe received during tl'C next succeeding Of» weeks. "In addition. Triangle owns in ex- "es< of 2'V)0 negatives, nil of which Inve conHid."-nble vabie for reissiuinc ))urposeK. Trianirle is the owner of tbe photoplay rights in nil the siorie-, and scenarios from which if has pro- duced motion ritctures. and in ,n greai many from which no mofi^n pictures have a<j yet been made. The original rovjf of the-jo rjp-lit^i fr. qforirv.- nnd sceunio« varied from ST," to f^.~» 0^» each. The prr.sent vabie Ik vcv ercMt but <'anuot be accurately e.-sfl mnf«»d 'Trisngle w not now TirodnciTig nrn new nictures. Ivf J.n,' f.,r ->„,,,,>■ <im<- r»"<rt horn cnsTM""? in the reii'-niiig o^ old nict:ire«;. whif-li have found i v^rv nrofifnblc in-^rkof nnd enabbwl Tr*- anele to H'liiidnfo i^e Inrce ind««bted ness. Tliiv proHtn^le hn».-5ne'-s can. no doubt. ])<> continued indefiiiltciv. '"The en losnd bilanfo sheef tpi* forth the T'Tinn'-'Ml "ou'litlon of Tij- "n^'e nT>d \^ < siib'^-'/'iarios «m of .lune ^O. 1021. and rs Trinnele is nt pres- ent practi' .'iHv nnt of dehf the tini< i«; arif»ro!»c})in«r when con.'-iderat ion i- fo be Ei\«'M to the nroduction of n limited nuniber of hieh class 'notifor nicfnres;. from the storn^*? ind see narios nlrenJ'' mr-ntioned. 'T T, WATrW>;. Pre^^idrnt." Bally-hoo Promotion Tiiangli' was |»romote(l and floated in a whoojj hurrah campaign iu the summer of 1!H.">, the proniotor being Harry K, .\itken, who previou!<ly had been the principal factor in .Mutual. But HAMON SHOWING Little Film Does Business—Ads Refused San Francisco, Oct. 5. The riara Smith Hamon pksture, *'Fate" which opened at the College theatre a week ago Sunday, in run- ning again after a temporary discon- tinuance because of the arrest of F. Weathers, owner of the picture, who was acquitted by a jury in 10 min- Qtes, on the ground no crime waa com- mitted in the presentation of the film. Aa business is only averaging around $125 a day the picture will be with- drawn this week. It is scheduled to open in Sacramento and other Northern California cities next Son- day. Outside of the trial publicity the picture was practically ignored by the local press. The dailies refused to accept advertisements for it and though bDlboards were used, lack of the newspaper advertisements put a erimp in the business. One officiah of the picture states the papers would have accepted ada. if they were tendered when the pic- ture first came here, but he points out that as ads, were net forthcmi- ing in the dailies until five days after the opening, they were refused. Inasmuch as the leading journal con- demned the picture editorially before its arrival it was natural tbe ada. were refused. • It was incorporated in Virginia and an issue of $8,000,000 in common stock was authorized- This was put out,at $5 a share and on glowing de- scriptions of the aaaodition of D W. Griffith, Mack Sennett and Thom- as T. Ince, the issue was quickly subscribed at the underwriting price. There werp a flock of subsidiaries, including thfe distributing organiza- tion and the Keystone, Beliancc and Majestic coHipauies as producing units. The marketing of the stock end the campaign that attended its ad- vance to a high of $8 was a classic of financi'il exploitation. This pub- licity fnirly floofled the curb. In 1010 when it touched its top, tips were in circulation that annual earnings would reach $8,000,000 and dividends would be paid amounting to 12 pet cent, a year. It was reported at one time thfit profits in Canada alone were running at the rate of .$lfi.000 A week. The cnmpanv was turniu't tores and ^'cinir stars »* nnhea^o of figures. S'Tipts were being bought lavishly at fi:nir<'s «:fartl?n<r at Ih't period—as high as $.'».000 for rifHit.-* being paid. Uumblings of trouble res^hed trad- ing centers Mhortlr after thi«j and T? K. -Mtken sfet>ped down from the nresi<|encr. IT. O Davis took his idaee. but renieifn»d onlv a "hort time. Tn .T nnnrv. 101,♦s. when the oresent management took^eharge if is said the comoanv't: delitc amounted to more than .<2-'Ort 000. Tho T)rodu'' ing tmit J had douorted and there were ontstandinsr ob.ientions to stars an«* j directors, most of which were turned j into short-term noteq. ^ «tatrmen* j M> 1017 showfd eafli of ^IJOOAO -n'^ i "loatine li'ihilities" of .«'>?^1000 ' The vow n>annjrement stor>nod al' ' prrnlncinir end has sinno OMnfm/vl {t. ^ celf to reali'/'U'/ on iho oM film in I the form of reissues and studio i nronert ie^;. wMch werp reT)fed. The i excliange 'vstoni e^';o wan leased an''» I be»* ine a s:oMrf«' of revonue ! Th«' r resrj)t Tr'onirlo rorrifno ha*- ; hrrkush' >»«'vrrnl »;nits o«rninvf VitliP" ' and others of tlio o^d n»'^nnrr''ment | (•hiiniinf .t;^ MOO OtV) and a-'kinc for a»' \ .Tccoiiiitin«» nf tlie old ro'n'tonv. T]\o ' ^fory of 'I'r'.'!n"1*''< d'^elwm I- fnl«] jn i ••b'rKcs <»»itt;tined in thiv rti-»;itinn j 1f»is allejrcfl that the orirrjr.;,! prornf) j tor< ore.'ini/fd an otitsiftp forttoratio*' which took ovor the er^tire issjue of stot'k at foriifthinir like 10 cor)fs n | share; that lof»nv were n^iroiinforl in I rounf>ibout and fraudulent wa\s hy ! which large jirrminuts were T»ai«l im- properly and in other wav< the prop- erty was diwsipated. These suits are expected to come up for trial this Fall. TRIANGLE BALANCE SHEET ^—.1- ■■■,—^_ ASSETS Cash 115.398.40 Accounts Receivable—Customers (lesa reserve for losses) 3.850.17 Real Estate Mortgages _ '.'. 207,000.00 Securities Owned (book value) '.'. , 2,184.00 Studio Equipment {less reserve for depreciation).. 62,18<i.61 Buildings and Equipment on Leased Premises; (lesa reserve for depreciation) 15,204.GO Ofrice Equipment (depreciated value) 6,007.4 2 Negatives Released (depreciated value) '/..,,, 1.214,000.00 Deferred Cnargea 3,759.37 Good-will, Trade-marks, etc. (book value, subject to appraisal) _ , 3,845,573.49 . , T^oiai ••••«■««••....•• •••••••••••••• ^5,375,164.06 LIABILITIES AccounU Payable _ |137,808.<0 Note Payable—Bank Loan ...*.*.... 100.000.00 Contingent Uabllitles 39.904.00 Deferred Credits *.; 3,605.00 Interest of Minority Stockholders of Subsidiary Com- panies In tbe Net Assets of those Companies . 4 3,961.92 Preferred Capital Stock of Triangle Film Corpc ration OutaUnding—101,100 Shares of $5.00 etch. . . 505,500.00 Common CapiUl Stock of Triangle Film Corporation Outstanding—900.015 Shares of fS.OO each.. 4,500,075.00 Surplus (baaed upon valuation of good-will, trade- mark!, etc) 44,309.44 ToUl $5,375,164.06 Goidwyi't KyM Sttry Goldwyn haa pardiaaad tba motion picture righta to Peter B. line's *'BrotheM Under Their Skina,** pub- lished in the October iaane of the Cosmopolitan Magazine. It will have an early production. Liiiar'a ''MMkatMft" .>r!Vttty Max Linder is preparing to make an elaborate burlesque of *The Three Musketeers." He is writiiiff the script, wiU direct It and will himself portray the role of D'Artagnan. It's A Big Hit! "■'.■. • Rothapfel Saw It —Rothapfel booked it for the Capitol Theatre Read his letter : - , " "^ New York, October 8, 1«21. Mr. J. D. WILUAMS, AKSoHateil First National Pictures, Inc. ' '* ^ *. . 0 West 48th Street, ' Vf New York. Dear Mr. Williams:— . • * I have just finished looking at "Hits of Life" and while still under its influence I cannot help but tell you that ha my opinion it hu8 gotten hold of me in swh a way that it has made me think. It is as though I was listening to a series of clever stories by an ex- cellent story-teller, and fortunately for us all, the story-teller was our own friend, "Mickey." t»f course, 1 need hot tell you WhaV I persottaify'thiiik* oi hit directorial genius and picture making. I have always had a sneaking idea that he was perhaps our greatest director.* But here in a way that brings forth his own personality, that inimitable humor and those deft touches that have made his pictures so popular with the masses, arc evidenced in a greater degree and in a clearer and more suitable way than I have yet seen in motion picture work. It cannot help but make a great impression on its sudieuces and the exhibitor will do well to study this and then exploit it accordingly. Here is a new idea with an excellent chance for exploitation— something so <liflrerent and so clever that be need not be afraid to step out. He need not puU his punch and in his presentation there will be many little things that will f*ome to him that will, I think, enhance the presentation. I urn extremely proud to have the honor of presenting "Bits of Life" and I am looking forward with a great deal of interest to the week of October IH. Yours sincerely, (Signed) S. L. ROTHAPFEL ■ ' ■ " i. . Marshall Neilan^s Presentation of i6 BITS OF LIFE" Photograjhed by David Kessou A First National Attraction