Variety (June 1923)

Thursday, June 7, 1923 VAUDEVILLE SEE KELLEY WINS GOOD WILL CASE; PRECEDENT FOR SHOW BUSINESS Treasury Department Ruling Saves $200,000 to Ring- ling Heirs—Rule Applies to All Inheritances in Amusement Field By a decision of the Board of Ap- peals and Review of the Inheritance Tax Division of the U. S. Treasury Department, handed down late last week, it is ruled on the argument of John M. Kelley that the good will of a circus is without ascer- tainable or taxable value in refer- ence to transfer as an inheritance. This complete victory for the Ringling attorney not only makes a saving of from $150,000 to $200,000 to the heirs of the late Henry and Alf T, Ringling. but it creates a precedent which will probably be followed in the settlement of all estates and properties transferred under the inheritance tax regula- tions where show property is in- volved. j Mr. Kelley wrote a brilliant argu- ment involving a detailed history of the circus business, a record not obtainable anywhere else. He nought to impress the point that there is good will in the amusement business and that element is enor- mously valuable. But the good will attaches to the personality and in- dividuality of the manager and dies with him. That, by Mr. KelleV's argument, is why there "is only one Ringling Circus, one Ziegfeld 'Fol- lies.' etc." The brief also presents a history of circus failures to prove that cir- cus good will is not an asset that auVvives a deceased showman. Mr. Kelley traced a trail of broken and bankrupt shows to the tomb of ex- pired circuses, the wreckage plant of William P. Hall down in Mis- souri, to show the unusual and even extreme business hazard in oper- ating the big tops. {The fourth installment of John M. Kelley's "good will" brief follow*. In this portion the attorney gives further detail* of disastrous ven- ture* in the field of the big top*, material that ha* never before been published, and, indeed, wa* not knoivn to the great majority of cir- cus men (hemtelve*. One item tell* of the lot* of more than t!i00,000 in a season by Have- lin, Tate and other* backing a Hag- enbeck show. A* a final *umming up, 51 circus failure* are specified by name. In the estimation of thowmen who have followed Mr. Kelley'* line of reasoning, a* published weekly in Variety so far, it is the most comprehen*ive and complete treat- i*e on a given subject ever written in the theatrical world.] W. W. Cole's New Colossal Shows. Came into prominence around 1870-71. Cole brought to his show the heritage of birth and associa- tion. His maternal grandfather, Thomas Cook, presented the first Imported circus in America In 1836. His mother was an accomplished show woman. W. W. Cole built his show to a highly successful institution, and exhibited throughout the United States, Canada, Australia and the South Sea Islands. The Cole Show was the first to go on rails in America and the first show to cross the continent on rails. W. W. Cole, with the possible exception of Bailey, gathered more money from the circus, investment considered, than any other show- man. Finally he retired. His show was disposed of at auction at New Orleans in 1885. For many years ambitious showmen sought to benefit by Cole's well-founded reputation. Time and again under different owners a show went out feat- uring the name Cole, traveling through the same territory where Cole had made a fortune; but • lacking Cole's personal skill, fore- sight and leadership, it proved a failure. After struggling under different owners for fifteen years or more, it closed a failure and was sold at auction. No name in circus history died Imrder than the name Cole. It was the objective in exploitation among nmbltlous showmen for a Kent ration. Cole's financial suc- cess made it so. To Others than Cole himself, the original builder, the good will or trade name never proved a profitable investment. Among others who traded upon the name Cole in fruitless at- tempts to pet something of value from it. we mention the following: Cole Brothers World-Toured Shows. Martin J. Downs put out the circus in 1906. The same outfit had pre- viously carried with disastrous re- sults the name—Sells & Orey Cir- cus. Downs built the show to a 30 car circus and operated it up to 1909. The outfit, never a success, was upon the death of Downs closed out at Corry, Pa., in February, 1910, through agents, Fiss, Doerr & Carroll. Cole Brothers World-Toured Shows. We find this show again on the road in 1912. Put out by Wade H. Coulter and AI. O. Campbell (of Campbell Bros. Circus). The property comprising what was formerly Coulter's Shows was leased from Wm. P. Hall. At Albany, Missouri. February 1, 1913, Coulter died. The circus proved a failure. In 1913 the circus went out again in the hands of Al. G. Campbell. Ed. Campbell, Virg. Campbell and Fred. Hatfield. Again It spelled failure and was taken over finally by Wm. P. Hall. The season of 1916 saw the cir- cus on the road again as a 16 car show, put out by J. Augustus Jones. In 1917 Jones continued the circus as a 20-car show. Failure. In 1918 Jones put the show out reduced to 11 cars. Late in the season Jones died. A short time afterward the circus closed and was shipped to Shreveport, La., concluding the last sad chapter in the Cole experiment. It is important to note that those who succeeded Cole in the use of his name were not purchasers of a fractional interest in a trade name, and were not limited 'to a fractional interest of a deceased owner, and were not subject to competition of previous owners simultaneously operating under the name. Carl Hagenbeck Trained Animal Circus. At the St. Louis expo- sition. 1904, Carl Hagenbeck pre- sented his splendid exhibition of trained wild animals. The next year many of the acts were ex- hibited with success in theatres. 1905 the circus was put out as a brand new railroad show by Hagenbeck and his associates, Frank R. Tate, John H. Havlin, C. Lee Williams and C. N. Tl. .np- son. The show was splendidly equipped, well organized, backed by ample capital and managed by experienced showmen. It lost heavily from the day it opened. In the venture Havlin is reported to have lost $260,000 and Tate $75,000. Great Wallace Shows. B. R. Wal- lace of Peru, Indiana, was pur- chaser of the remains of the Carl Hagenbeck Trained Animal Cir- cus. Wallace, a man of long and varied circus experience, , was identified with various shows, such as Cook & Whitby's, Wallace & Anderson—always making money, always giving close personal at- tention to details and always pur- suing a "policy peculiarly his own." He followed the conserva- tive code. A few horses from a livery stable end equipment pur- chased from broken-down. circus outfits was the beginning. The wagon show was made over into a railroad show. At the time of the Hagenbeck failure the Wal- lace Circus was next in size to the Ringling enterprises. Carl Hagenbeck A. Great Wallace Shows Combined—was the name put upon the show by Wallace. In emphasizing the point that It is the personal service and skill of the manager that is the chief feature in circus success, it is im- portant to note that Wallace, when he combined these shows in many ways subordinated his own name and featured the Hagenbeck Trained Wild Animal name—a name which had in other hands met with complete failure. Wal- lace, giving this enterprise his direct personal management, made of it a success. He sold out July 1, 1913. to a corporation con- trolled by John O. Talbot, Charles F. Cory, Charles Hagemon, J. \\\ Warren and Ed. Ballard. Charles Cory, nephew of Wal- lace, was a successful traction railroad man. Cory ha.I beCn ld< n- lified from childhood with his uncle in the management of the Wallace circus and Talbot had even been business manager for the Wallace circus. The new management did not. enjoy ihe measure of succ< achieved by Wallace, Note. During all of ihese yeai i the Ringling circuses were oper- ating with tremendous success from every viewpoint every year (Continued on page 2%) HARRY HOLMAN Just finished my annual tour over Keith and Orpheum Circuits. Direction: THOS. FITZPATRICK This week (June 4), Flatbush, Brooklyn, Next week (June 11), Broadway, New York. Week of June 18. Fordham and Jefferson, New York. Open for New York productions. WEEK OF DRIFTING IN AMUSEMENT STOCKS Price Changes Narrow and Trading Small and With- out Significance It was a dull and featureless week in the amusement stocks with aim- less drifting of prices within nar- row range and transactions at so low* a volume that trading was without significance. The listed theatre issues held close to levels that have come to be regarded as their resistance points, or just above. The market seems to have gone into its regular summer phase. There never has been a major upswing in prices in June and July and the public seems to have reconciled It- self to a period of waiting, leaving the list to the tender mercies of the professional operators. What they will do is, of course, uncertain, but the logic of the situation would seem to be that If prices won't go up they are likely to go down. At least that la the brokerage idea, for margin calls were sent out whole- sale early in the week asking for pretty substantial reinforcement of accounts. Orpheum gave way to 18 after presenting a solid front during the heaviest of the pressure, but deal- ings were so small as to be negligi- ble. Reports from Chicago Indicate a particularly strong position of the stock. It Is said profits for the first quarter were more than suffi- cient to care for the preferred divi- dends and even the first week In June gave the business a profit. In the other stocks dealings ap- parently represented the surrender of small accounts under pressure and no disposition to support prices on the part of insiders. The nummary ©f transactions Mar tl to June 0, Inclusive:— STOCK EXCHANGE Thuniday— Sales.High.Low. Laat. Fam. Play.-L.. 2.800 81 7ST4 SO .!><»• PM MO 02% »1% 02% LotW, Inc 800 1714 IT 17 Boston sold 300 Orpheum at 17%. Krldav— Fam. Tlay.-L.. 4.200 I>o. pfd 200 <ioldwyn (old).. 1.200 Ijncw, Inc 1,200 Saturday— Fam. Play.-L.. 1.S0O <:<>Mwyn (old).. 300 Loew, Inc 300 Orpheum 300 iiostun void M Orpheum at 18. Monday— 800 TOO r.oo 100 T9H »l% *%, 17% 79% 17 1HV4 78 »l 17 78Vi 17. 18 79% 01 17 79* •% 17 H Chg. +1 -fl* % - % - % - % run Pfar.'t*. Ootdwyn (oid>. i.' •••%. Inc Ori hi'uin 'in'- i.i \ I'hii r.ay.-f.. I>. pfd fl >ldW) n (new) Collwyn (old). I.x-w. Inc Wednesday— Fam. Play.-L. Do. pfd Ooldwyn (old). OolQwyn (newi Ijo»w. Ine >r ulii'um 7» Mi 78', 10% 7H\ r.V» 18% 17% f»00 r,oo JOO l r,oo 100 70 H ?»2'4 r.% 17 400 70 100*01% 2.100 6% • 100 22 400 17 100 18 78* M 22 v.; 17 78V4 91% 22 18 70 «»1 •X% r,% 17 79 '.nv, ft*. 22 17 18 • \ + % + % - % — V. 4 '. + % - % 4 % HOUDINI. ON CONCERT TOUR, WM EXPOSE SPIRITUALISM Master Magician Arranging to Spreadeagle Country on Educational Tour—May Also Expose Other Fakes for Credulous— Has New Thumb Trick YOUNG FRENCH POET IS SENT BACK HOME Claims Against Clarke Silver- nail Countered by Manager; Young and Temperamental Maurice Aubret, a young French poet who arrived in New York in the first cabin of the "Olympic" two weeks ago, left in the third class on the "Ohio" Inst Saturday with a deep-seated grudge in his artistic soul against America and all things American, particularly American actors who endeavor to present their native plays in the language of France. Aubret was discovered riding down Fifth avenue in a taxi with about $2 in his pockets by some American girls who had known him during his student days in Paris. After buying the 22-year-old poet a dinner-and obtaining free lodging and board for him with some kindly French people, they consented to listen to the story of his alleged per- secutions and trials. He claimed that he had been brought to this country by Clarke Silvernall, who had made a verbal contract with him to coach the New York presen- tation of "Ofgcer 6CC" in French at a guaranteed salary of $50 a week. Once on this side, he anys, the pro- ducer ditched him. leaving him without funds, resources, or any re- muneration for the work he claims to have done on the trip over. Si** ernail says that Beverly Slt- graves became interested in the struggling young poet shortly after the war and persuaded him to aid the boy in various wnys. Silvernall recognized the conspicuous promise shown in Aubert's poems, and kept up a correspondence with him after returning to this country. On his last visit to Paris, the manager says that he came across the poet living in pitiful poverty and extremely anxious to find picture work in America> Silvernall stresses the claim that, after lending the boy over $150, he made no contract, but agreed to bring him to America in return for some personal tutoring in the finer points of the French language. He also 'says he had promised to re- ward the poet liberally for Ave hours a day work on this side, but when they arrived the boy shirked his duties and remained unsatisfied, even though Silvernall tried to place him with several film com- panies and other theatrical con- cerns. The last straw, according to Sil- vernall, was when suddenly enter- ing his office one morning he found the Frenchmen ransacking a trunk. After walloping the poet's jaw, the producer claims that he threw him out of his office, alt further sym- pathy and aid going with him. Aubret continued to live with the French couple for a few days, but they soon tired of his temperamen- tal and "borrowing" ways and sent him down to the French Consul, who advanced him the money for passage home. He has had two or three books of poems published, re- ceiving rather favorable reviews on both sides of the Atlantic. He also has a good light tenor voice and ha* appeared in many Paris con- certs. Before leaving New York, Aubret claimed that he has enough theatrical influence in the French capital to Mop Silvcrnail from pro- ducing there. The American man- ager is inclined to laugh at this statement. EDDIE CANTOR DOUBLING Eddie Cantor will open a two- week engagement at the Palace, New York, next week (June 11). The Comedian, who followed Will Rogers into Ziegfeld "Follies." will double Into the Palace from the muaical comedy the weeks of Jun«» It and 18. Cantor will play about four weeks for the Keith office in Greater New- York I Harry HoudinI, the master musician, is arranging to spread- eagle the country next season on a concert-educational tour in an ex- pose of spiritualism. HoudinI will do the triaks of the mediums and offer to duplicate any spirit manifestation a local medium will do ahead of him on the same stage or elsewhere. To educate the public into the possible trickery of fake "spirits" has long been a slumbering ambition of Houdini's. His recent contro- versy with Sir Conan Doyle, the em- inent Englisman who became a con- vert, has led to Houdini's determina- tion to proceed with his cherished plan. While accepted aa an "escape artist" until his name has grown to be a by-word in that connection, HoudinI ranks with the master magicians of the world. There la no trick In magic he does not know of, and knows many other magi- cians are unaware of. In addition he is super-proficient in illusion* and escapes, and besides his com- plete knowledge of the methods of mediums, HoudinI la Intimately up in the lore of the "mental telepath- lsts" or "mind readers," and their equipment. It Is within the probabilities HoudinI may add to his educational tour a short synopsis on "mind reading" aa at present practiced, when so performed for deceptive purposes. Houdini's latest magic trick is biting off his thumb. Bending his thumb forward and backward while apparently cutting It with a knife blade, the magician placet the thumb in his mouth as though to bite It, and when withdrawing the member It looks to be severed*, It may be what la known as a "table trick" (not adaptable to stage pres- entation), but Is thoroughly mystify- ing and has puxsled several news- paper people on the dailies in New York of late. ROSCOE ARBUCKLE IS ACCEPTED IN CHICAGO Opens at Prominent Restau- rant to Capacity Crowd in Exclusive Neighborhood Chicago, June •. If nothing untoward crops up for the remaining three weeks of Kos- coe Arbuckle's cabaret debut at Marigold Gardens, there will be no question left to the fact Chicago has accepted the former film come- dian. Monday night's business at the Gardens, where a now revue also opened, broke all records for this prominent cabaret, located In one of Chicago's most exclusive neigh- borhoods. Conservative press work and good Judgment In handling Arbuckle prior to his debut marked his en- trance into the limelight once again as a public entertainer. Nat Roy- ster is locally given much credit for the able manner In which Ros- coe was handled from both angles. He had to line up sis dailies, ar- ranging a dinner nightly forgone of the representatives of sach". at which Arbuckle acted as host. Din- ners were also given to well known nati\es of social and financial stand- ing, patrons of the Gardens, and Arbuckle again graced the affairs. Arbuckle is leading a couple of i numbers in the show and doing J some comedy falls. The brat obtainable InitrurUon at STUDIOS OF SYAfiE DAIKINC 1841 Broadway NORTHWEST C6s. COth i>T I M*M , >.l . '.