Variety (July 1922)

AMUSEMEIfr STOCKS PEGGED BY POWERFUL SYNDICATES Pricei Now Allowed to Sink Very Far—Seems No Incentive for Aggressive Campaign for the Ad- vance—In Waiting Attitude There was no outstanding feature In the amusement stocks during the ^gei;—the occurrence of a holiday Interfering with any possible move- ment either way—but the group had every evidence of being ''pegged." Both Famous Players and Loew are ia the hands of strong pools. It probably would have been a very simple matter for thewe clique.s to mark up their price.s, but to have done so would have involved the investment of considerable amount.s of capital and would have served no special purpose in the current market. ^-^ Difficulty of Realising If Famous IMayers had bec»n run Up to 86, for example, the pool holders would not have been able to liquidate, because ■ the public following has almost entirely with- drawn from participation in the market and street professionals are not buying up amusements at high ftgures. If it had taken the Fa- mous pool 1.500 shares net to move quolatiuti.s ux) 5 points, realizing sales of half that amount would hase broken the price back to Its first level and the pool would have been in worse shape tban before. The clique seems willing to Sup- port its favorite when it is assailed and prepared to keep up a sem- blance of .activity which merely in- volves the back and forth exchange of paper, but that is as far as it Avill go under the present condi- tions. There Is a general feeling that the mid-summer dead calm is on, but the underlying structure is making for a big market in the autumn. When this bull movement gets un- der way, something may be ex- pected In amusement group. Meantime they are likely to move within narrow margin. It seems to be pretty plain that no short in- terest is developing at any rate. All, activity appears to be mere fihadow boxing by the pools. Famous Players gav^ a fairly good account of itself. Although sadly neglected—the Monday turn- over wa.s only 300 shares—it held within narrow margin, its best Wednesday was 81% and its bottom around 80. practically stationary. Loew's Future Dealings also were at a minimum In Loew, although there were a few side bets made among Times Square people on the stock's fu- ture. There Is an undercurrent of belief that there is quiet buying by professionals in the street between 14 and 15 for a long ride, the be- lief being that ^)anking interests are so deeply committed to the Htock they will sooner or later be compelled to move It up so they can get out whole. The stock is listless and practically motionless a fraction under 15. Orpheum made the best showing. After .sagging below 18 ju.st before the holiday, it suddenly di.splayed resilience Wednesday, and. although transactions were small in volume. It moved up to 19^, one of its best levels in several weeks. CJoldwyn at one time got down around 6V4^., the lowest .since ti.s climb from around 4 to better than 9. The trading situation in the stock is badly muddled and a good deal of conflicting information about it is passed around. On tne fact of the .situation the Fir.st Na- tional deal ought to be a construct- ive factor, but it doesn't work out into practical results in quotation^, i'rubably the dip of Monday came from the sales of disappointed hold- Pr.s, drnwn in when the First Na- tional-fJoldwyn deal got into the open 0!i the exiiectition of .i quirk, •*»ubKt;intiaI profit, and now dis- heartened by the stubborn behavior Of the iHsuo. Kv<^n on that (l,»y .s.ip- Port came in when a bad drop tlirejitennd uri prices were stjibn- «7.ed It the rlo.sM ;it 7«4. cl«»se to its J'ormal level, where it has benn he'rl •»y pool man.pulrttors. Nobody *<nows wh.it is going to hippen in the Jiisue, but the early players who looked for sensational performances are gradually dropping out. The summary of transactions June 2d to July 5, inclusive, arc as follovvs: STOCK EXCHANGE Thursday— Sales. High. J/ovr. Last, Chg. Fam. I'lay-L... H»K) Ka^ 7i»S4 ».)Kk T.ocw. Inc GOO ir>V4 UH \-,\i 4- '.-4 Orpheum 500 IT 17 17 — H Friday— Fnm. Pl.'»)r-L...3r»00 H\% «0 «0«4 +% I>i>. pf HIM) 0^ m »:l Iax'w. Inc .MH) ir, ir, l,". + % Boston sold 100 Orpheum at 17'<;jC»17%. Saturday— Fam. I»lay-L... 100 ft>% «f»% R0% -% Loew. Inc 400 18^, 17% lft«4 4 1V4 Monday— Fam. IMay-L... 300 >^^y^ m% f<\\ +% Orphoum 100 1H% 18% 1S% + S4 Tuesday —Holiday. Wedni'.-day— F.im. ri:»y-L...l..-.00 m^, »1 Hl'-i f % Do. pf r.(tO !»»'4 '»»% m% -f J.% r.iew, Inc 3*K» 1»\ UVi USi -\ Orpheum 2.000 i;»". IHVi H» +% ' THE CURB Tbuisdiy— .S:Oe.sHi«h l,f»w I.i'«t Chff. CJ.Mdwyn ^. .4^M>rt 7'4 7 7«i4 + % Fiiday-;^,-^^ Ooldwyn .. .77. .r,.8(K) Tlfc 7 7% + Vfc Saturday— Goldwyn 100 7\4 7% 714 — \fc Mond.iy— Goldwyn :».100 7'4 C% 7V& — % Tues lay—Holiday. V.'''dnesdav — Cold .vyn 400 7 G-<i 7 — ^4 UGHTS' CIRCUS RUNS INTO DAILY RAIN rhree Scheduled Perform- ances of Six Up to Wednes- day—Insurance Flopped The touring circuis of the Lights Club got off to the worst possible weather break, and up to Wednes- day the almost continuous rain practically ruined chances of the outfit getting any profit. The deluge of Saturday nearly sub- merged the aggregation in New Rochelle, N. Y., and both perform- ances were called olt there. Mon- day at CJreat Neck, L. I., fair crowds were drawn afternoon and night. Tuesday (Fourth of July) everything was .set for a clean-up in Oyster Hay. but lowering skies again threatened. About $40 w.u* taken in admission for the after- noon show, and it wa.«i decided to call off the performance, throwing everything into the night house. However, the rain beat the Lights to It again, and the night show was cancelled. Up to Wednesday only two per- formances were given out of six schedulued. The Lights heeded the chances of rain after the New Rochelle sub- mersion. Monday they secured in- eurance to the sum of $1000 per performance. Tue.sday at Oyster Bay, when It looked like certain rain, club members felt secured on account of the insurance. But the policy stipulated that one-tenth of an inch must fall between seven and eight o'clock in order that the insurance be paid. It looked black enough during the time limit, but it didn't really start to pour until the eight o'clock bell was tolled. So the insurance racket was a fl»)p, too. Wednesday the Lights played Freeport. and on the home lot it wa« figured the show would do real busine.ss there despite the rain, which continued to interfere?. Concession men In the resorts were badly hurt by the weaUier. Al Coney Island it was sad. One amu.-ement man in telling of the woe Ihei^e, said "20 (Jreeks were reatly to commit suieide." Thursday the Lights -Mieiis was to have played Jamaica; 'oday (Vrf- day) and tomorrow (Saturday) it is due at Far Uoekawijy. The Lights are said to have cn^.i«ed a rireus for the week, g'l.iraiiteeirf; il $750 daily. ILL AND INJURED M ir-Rje .\nl''II, former* wife of l''ranklyii Ard«'ll. who was found uiieousejon.-* ftom in ov«*rdos(» of veronil in (""<ivtral I* irk ten diys ago and t iken to Uoosevclt Mos- prtal. XeW~YbTk, i.s reporle^^re-" cfvering .^imrny Lee in confined to hi.'^ home with a nervous bro ik-d ^wn. He recently staged tlic number^* for "Love and Kis.ses." FINANCES AND BURLESQUE BESSIE BROWNING A good line bears repeating. Keene Abbott in j^n. optimistic mood .s,'ii«l: "It is doubtful whether the American stage has an actress more richly gifted." Next Week (July 10), Keith's Iliverside, New York. All managers invited to inspect this act. HENDERSON'S INSURED AGAINST JULY 4 RAIN Coney Island Theatre Protects Itself Aqainst Bad Weather —Premium High The custom of in.suring against rain on Saturday, Sunday and holi- days, a regulation thing for many years with both major and minor league ba.seball teams and outdoor amusements in. the west hasycome into general practice this season for the first time among the amusement purveyors at Coney Island. Both of the big amu.sement parks. Luna and Steeplechase were Insured against rain on July 4, and many of the smaller enterprises have taken out insurance to ofTstand bad weather breaks Saturdays and Sun- days throughout the season as well as insuring for holidays. What 3ppears to be the first instance of a vaudeville theatre in- suring against bad weather was Henderson's taking out a policy for July 4, covering itself against the rain hazard on the holiday. Hender- son's July 4 policy called for the payment of $500 to the theatre, with a premium of $75, in the event of one-tenth of an Inch of rain falling on the date mentioned between the hours of 2 and 8 p. tn. on Coney Island. The U. S. Weather Bureau whkh records olficially the exact amount of rain at any time and place throughout the country, officially decides whether rain has fallen and how much, according to the terms of the policy. Tho Eagle Star and British Dominion Insurance Co. of 123 William street, wrote the Hen- derson policy. In Europe, especially In England, the custom of insuring against rain for athletic and other out-door amu.sement enterprises, has been general for years, Lloyd's, which ha« its headquarters in England making a specialty of all sorts of freak In- sur.mce. Some of the western amusement l)arks in America have carried rain Insurance the last few seasons, but the idea has not gained much head- way in the east unt^ the pre.scnt season. Tex Kiekard insured against rain when lunning the iJempsey-Carpen- tier fi^;ht at I'.oyle's Thirty Acres, in Jersey City, July 4, 1921, also insuring the lives of both principals. PALACE BUSINESS Breaking Summer Recordi city Matinees -C«p« Tho Pal^ro. N*'W Vork, has been breikiiig records for summer busi- ne.s<< th«* list three weeks, with l-'anni.' IJn'o chiffly credited as the r«'ason. The thing th.it has boosted ♦ he I'alire busiiw.<».s priniii»ally since Miss'lJrice started h^r run .ipp'its to l»e the matinees. Last we»'k tilt.* I'al'iec* sold out at evry m.• 11 ne(vf«^ 1'rvvjous sumni»• rn Jj wie ha<» bei»n jilenty of room in the aft- •rnoons Tho weather may hive helped, hut the wealh'»r did nof miteri.illy issist the oth"r l\<'iih metro|K>lUan hr>u«ea the la.it thr»*». weeks. (A Partial Explanation of How the Columbia Amusement Co. Unconsciously Inspired Bankings Confidence in All Show Business) Few showmen outside the inner- most circles of the Columbia Amusement Co. have the least iota of knowledge of what burlesque, as represented by the Columbia, has done to inspire confidence in theat- ricals throughout the banking cir- cles of the East. One of the most substantial the- atrical builders of America, and a manager (not in burlesque) who is personally worth over 110,000,000, not so long ago complained because the circuit of which he is the head had to pay a bonus of 10 per cent, on a building loan to complete the theatre. Moving picture producers of repute have admitted within the past two years they have had to pay "shaves" or bonuses up to 30 per cent, to get their paper dis- counted. Other fthow people have borrowed through securing in- dorsers on their paper who were stronger financially than were tne borrowers, while some legit show- men have secured loans through hypothecating future receipts from their productions. The Columbia Circuit or Amu.se- ment Co. has been going through a series of financial transitions for 20 years. l>uring that time it has done business with banks and trust companies from New York to all points east of the Mississii <M river. It has never defaulted upon an obligation, it has never disputed anything its name was signed to that involved a financial liability, and it has established itsejf in the leading lianks of the country as a business institution of the highest Integrity. To so establish itself is the ambi- tion of 6very honest business. Many of our most astute business men believe credit is better than cay;h. on the theory one may secure more through credit than cash. In other words, cash might be limited but Al credit is unlimited; it goes everywhere and is always available. The very nature of the Columbia's cIrcul.Tiing and rotating business, with its 35 or more theatres in 35 or more cities and as many stage attractions as dependable attributes, all operated directly from the Co- lumbia's headquarters in its own theatre and ofllce building at Broad- GAUDSCHMIDTS SETTLE Receive Route for ^fext Season from Shuberts, at Increase Tho action of the Gaudschmldts against Shubert vaudeville was re- stored to the short cause calendar of the City Court by Judge Hart- man last week. Immediately after- ward the parties to tho action ar- rived at a settlement. It included a route in Shubert vaudeville for the Gaudschmldts next season at an increase over their last season's salary, besides a cash payment, the latter probably going to Frederick E. Goldsmith, the Gaudschmldts' attorneys, who secured the return of the action to the short cause calendar. The Caudsehmidts had sued tho Shuberls for $2,000. alleging breach of confraot. When fir.st called for trial tho court said it thought the case wj)uld consume beyond the short case time limit and sent it to the general trial calendar. RAY MYERS GIVEN DECREE Kay My<rs, the Orpheum circuit bf»o|<»'r. was aw.arded an interlocu- tory d«'Kree of divorre from Madge Myers In-fore Justice Wasservogal in the i\«'w Vork Hupteme Court last w»'<k. Myers sued on st.itutory gioiiiitls, with the defendant served by publication. She is a resident of Sfnith IJend, Ind The Myer.s were married .luiy 10, 1910. in Mi.shakiw. Ind. Vh«» de- fendant's mis(f)n«l\iet i.s .ilh>g< d to h.'ive (K'ciirred during .\ov<mber- Decfmber. i:»2l, at :\ West 47th street address. An unl^nown man w I.s n im.d. K ruller & Cu!d.:fe:n repress, ntod M V'T.S. BIRTI15 Mr and .Mrs H.ury Milln,],-. in r.o.sfon last week. d,iughi<«i Tti molher is profe.Hfliori.illy (|»icluro.i> iJune Caprice. way and 47th street (which Is now valued at about $3,500,000), made it incumbent upon the Columbia to make its financial stren^^th and re- sources known to the best bankin|r interests wherever it had a theatre or bhow. This entailedimore financial infor- mation and work than a pnr.-«'aihow- man could hope to possess. The Columbia went outside the show business for its treasurer, selecting Und K. Ilynicka (^ Cincinnati, of high standing in his own commu- nity and known all over the coun- try as the National Committeeman for Ohio in the Itepublican party. Mr. Hynicka was an investor in Co- lumbia Amusement Co. stock. His frlrnds, Including the te Geo. H. Cox of Cincinnati, were also stock- holders. In burlesque the HynirU.t group looked to Hynicka for their burle.sque investment. When tho Columbia executives proffercvi the tre<^ury.shlp to Mr. Hynicka, and frankly explained to him their ob- ject, he accepted. Mr. Hynlckn has been the Columbia's treasurer ever since, nni hns the financial depart- ment of the circuit now on a basis that could run itself at any time. Building, buying and selling the- atres, advancing to producers, watching over the ever moving and rolling lists weekly of box office receipts, protecting producers to see that they received Wieir full share of the receipts, guarding against tho various realty details that come with tho possession ot much and widely scattered proper- ties, have all conabincd to make the Columbia's treasury an extremely active deiMirtment. In season the Calumbia'a receipts from all of its theatres mount into the hundre s of thousands of dollars weekly. The amounte are locally deposited and gradually drawn into the various depositories selected by the Qolumbl.i company in New York City. I^cal managers check out of funds in local banks for current operating expenses, but when the regular theatrical season of 38 or 40 weeks has ended, there are no groH.s receipts to count for the re- mainder of the summer. The hox ofllces are closed. That is an an- nual enforced period of financing that now has grown to be a routine, but was not that in any sense when the Columbia was climbing. In building theatres all over the Rast, taking care of the theatres and their attractions in the same cities, the magnitude of the Colum- bia's money operations may well be imagined to have brought it into contact with the hea<ls of the big banks. Whatever 'burlesque" as a show term may have signified to these banking men, they discovered that the operators of burleHqiie were men of business repute. They grew to like the methods of the business end of burlesque. One bank spoke well of burle.sque to another, as far as financial tranii- actions were concerned. The thing rolled on like a ball, and burlesque built up a big name, through the Columbia Amusement Co., in money circles. Then came the others in thent- rlcals. Including pictures. Banks that had confidence in the burler jue management were more easily con- vinced by tho other divisions. It was simple. If burkusque was ho jealous and zealous over Its credit and Htandinii:, other theatricals w«'re likely the .same. The restige erected by the Columbia Amuse- ment Co. redounded, and uncon- .sciously Ko f.ir as the Columbia peoph- were aware, to the benetit of all the show i)eople who t.ini) into contact with the financial inter- ests the Columbia had had deaiing.1 with The Columbia Anniscnient C?o. hns hanillcd million.s tijMni millioris in c.i.sh (for it doe:^ only a Ciisb business throti,f;li its box OfIlc«>) • luring Its existence; h.is been a big and sm.ill borrower, as occasion dem.indcd, and tli" tinanct.il world taiics If ijpun it-; hanking record of ne\c- hniiiLT failed in n single obli- Lratioii, wli' lie r that obligation was to iMiild n two-rnillion -dollar the- atre <»rp»y t, bill or note. It's I grc;i». firm r'-eord for tli»- iiricils ttrit neither burles(|ue nor the C'oliirnhia Amij.«eme«it Co. will ••V r Ih» ckmIiIi'iI with by the rc- niauidtr of the .show busineSis.