Variety (May 1926)

^Wednesday, May 5, 192 6 PICTURES VARIETY * NATIONAL'S HUGE MERGER STANLEYS* LEAD IN MERGER OF . 185 HOUSES jttrk-Strancl, Fabian*, Row- s land & Clark, Wilmer & ' ^ Vincent, and Nixon-Nird- : c finger Beside* Crandall Theatres in Combine— Chain Covera Key Citiea ' From Washington to Ohio —New York and Phila- delphia Bankera Financ- ing—Outcome of First National Convention—Un- dertaken for Protection New Fox Worked Out In First Play-Film PUBLIX'S RIVAL A gigantic merger of picture the- a|i» interests identified with Asso- rted First National, and the domi- nion of the producing interests of that organization by those at the head of the theatre combination is under way. ,.. The theatre merging seems to have been completed late last week in Philadelphia. It is stated Jules Maftbaum of the Stanley company wnl be or has been elected presl 4jnt of the corporation. There was faeeting of several of those inter- ested in the project in the New York offices of the Stanley Company yes terday. Present at that meeting were Jules Mastbaum, R. A. Row land, Moe Mark, John McGuirk, Walter Hays, and several others. The "nationalization plan'' as the merger Is termed is the outgrowth of numerous conferences held dur lag the annual meeting of First Na tlonal at Atlantic City two weeks ago. At the inception the chains identified with the plan are that controlled by the Stanley Co. which including the Crandall houses will number 62 theatres; Fabian houses (Newark) numbered 11 and with acquisition of five additional, total 11; the 14 Rowland & Clark thea tres (Pittsburgh); 16 that are in the Wilmer and Vincent (Pa.) chain which, are aligned with the Stanley group; 13 houses controlled by the Mark-Strand Co. and the 11 Nlxon-Nirdlinger houses also lined up with Stanley. This will make a> total of 138 houses, although those who ore ac- tive in effecting the merger state that there are over 186 theatres In eluded in the group now. Unification of Operation The plan is for a unification of p operation but that the houses and chains will retain a unit capitaliza- tion. Under thin arrangement it is ■tated that the Mark-Strand chain comes into the merger with a valu •Hon of $12,000,000 placed on it. The financing, it is understood, Is w be handled by Edward B. Smith * Co. of Philadelphia and Hayden, Stone & Co. of New York, with Wchard Hoyt of the latter firm act- tog on the First National board. As lined up at present the pool Practically covers all the key city centers from Washington north and jrom Ohio oast, comprising Wash- ington, Baltimore, Pittsburgh, Phil *delphla, New York, Newark, Buf a,0 » Syracuse and Albany. There *re also a number of smaller cities •hL Kns,and where tho Mark- JJtrand chain is represented and a number of Pennsylvania cities JJnere either the Stanley Co. or the «owland & Clark Interest are en »en<-ned. I n addition to their pres '■t Molding in Pittsburgh Rowland Uark have a new 4,000-seat house under way. As For the Coast 11 Is understood that the purpose to further expand the nationaliaa- t . on p,an "nd to eventually include «• Nest c„. lst Theatres, Inc., num- CCouUnued on page 13) There's a headache in this if given thought after reading. It's about William Fox's first experiment in buying In on plays with the optional rights for pictures. For $125,000 Fox secured from Al Woods 25 percent in- terest in Woods' productions of "The Green Hat," "The Pell- can" and "Stolen Fruit." "Stolen Fruit" went on and came off In a jiffy. About $20,000 lost. "The Pelican" suffered an attempt for a forced run and that r an the red to $80,000. "The Green Hat" is still on the map with its ulti- mate profit unknown. Of* the three plays so far, Fox selected "The Pelican" for pictures, paying $40,000 for the film rights to a stage flop. As 25 percent owner in the piece he was entitled to his share of the picture sale, but the pic- ture proceeds had to be oivided between the author and pro- ducr, 50-50. This gave Woods $40,000 to divide less $4,000 commission, leaving $36,000 split going $18,000 tor the pro- ducer's share.* As Fox's 26 percent operated on the $18,000 he received $4,500 back as a stage producer. With Fox's $125,000 still in Woods' bank account and only "The Green Hat" left to b<T heard from. MONTA BELL DIRECTING 'AMERICAN TRAGEDY' Signs Two-Year Contract with F. p.—Will Also Do P. T. Barnum Story Los Angeles, May 4. Following Theodore Dreiser's ob- jection to D. W. Griffith filming his "American Tragedy," it is learned that Monta Bell will conclude his contract with Metro-Goldwyn after his next picture and is to Join Famous Players to handle the mega- phone for the making of the Dreiser story. Bell has signed a two-year con- tract with Famous at a salary said to bo $3,250 a week, and is to make a minimum of three plcturei? a year. The second picture Bell will make for F. P. is to be the one based on the life of P. T. Barnum. Arbuckle Directing Marion Davies, as Wm. GoodricJ Los Angeles, May 4. Marlon Davies went into produc tlon with "The Red Mill," with Roscoe Arbuckle directing under the name of William Goodrich. The picture will be produced by Cosmopolitan for Metro-Goldwyn- Mayer release. Karl Dane, Owen Moore, Tully Marshall and George Siegrnan are in the cast. Checking Up J-H Seattle. May 4. Auditors aro still at work check Ing over the local Jensen-Von Her berg theatres, Involved in the deal to the American Theatres Co. Some money was paid on ac count, clinching the deal, but no further steps in the transfer have yet been taken. Stahl with Fox? Los Angeles. May 4. John M. Stahl. whoso contract ex- pires In December with Metro-Gold wyn-Mayer, is reported to have signed with Fox. St.-ihl will likely make one or two of the Belasco stories. GEORGE KELLY Author of "Craig's Wife," awarded the Pulitizer prize honor among )lays of the 25-26 season. The piece Is current at the Morosco the- atre, New York. Mr. Kelly rose to his present eminence as a playwright, from vaudeville, surrounded by vaude- vlllians, principally his brother, Walter C. Kelly, "The Virginia Judge." His producer, Rosalie Stewart, is also from vaudeville, where she presented Mr. Kelly in his self-written "Show Off," a play- let that was elaborated intd full length by its author and became an- other Broadway hit, narrowly es- caping the Pulitzer prize for last season. Miss Stewart has produced and presented each of Mr. Kelly's play successes. CLEARING ROAD FOR F. FYS HELP IN FED. TRADE? Gaylord R. Hawkins, as Comm.'s Counsel, Taken Off Cast LAURA LA PLANTE WILL WED, SAYS WM. SEITER U's Director Mentions August — Divorce Decree Re- sponsible for Delay LESSER THROWS OFF $312,000 ON STOCK SALE West Coast Mix-up—Fox and Lesser with Ramish and Lawyers Variety Bureau, Washington, May 4. Gaylord R. Hawkins, attorney for the Federal Trade Commission in the F;imous Players-I^asky proceed- ings brought by the commission following a charge of attempted monopoly and restraint of trade on the part of the picture company, has been taken off the case by an order dated April 5, 1926, over the signa- ture of the new chief counsel, Bayard T. Hainer. Mr. Hawkins has handled the F. P. proceedings for the government since Oct. 20, 1921, and Is acknowl- edged to be the only legal repre- sentative of the Commission who thoroughly knows the motion pic- ture Industry In Its every angle. That the order removing Mr. Hawkins from the case will be jubilantly received by those fight- ing the charge of the government is openly expressed here. Hawkins has been characterized aa the "stumbling block" that could not be surmounted in the alleged at- tempts of the picture interests to cloud the Issues of the case. It Is also known that It was the recom- mendations of this government at- torney that has repeatedly resulted in the commission refusing to ac- cept stipulations offered by counsel for F. P. The removal of Hawkins recalls much of the history of the case, one highlight of which Is the alleged (Continued on page 31) Los Angeles, May 4. William Setter, picture director at I'niversal, asserts that In August ho will lead to the altar Laura La- Plante, Universal picture actress. The reason for the delay is due to the fact that Selter, who recer tly secured a divorce, from his wife, Is compelled to wait until July 27, when the decree will be made per- manent. Miss LaPlante arrived here May 3 to start work on "Butterllies In the Rain" for Universal. James Kirk- wood and June Marlow have been engaged for the picture. Edward Sloman will direct. Los Angeles, May 4. Treasury stock In West Coast, Inc., to the amount of $1,250,000 may be distributed today amongst the stockholders. Proceeds will be employed for financing the organi- zation's new activities, along with operating expenses. Many lawyers are about, involved in the adjustment of stock sales of West Coast holders. Principally the sale by Adolph Ramish to William Fox and again the West Coast stock sold by Sol Lesser to Hayden, Stone and Company, the New York bankers. From accounts, although the law- yers are heavily entangled with the discussions, Lesser may reduce his sale price of West Coast to the banking firm, $15 a share, making a difference to him of $312,000 on stock first quoted at over $1,100,000. Fox and Hayden Stone are also talking of a lesser price from ac- counts for tho Ramish stock. Ra- mish from reports Is standing pat, telling Fox and the hankers ho will hang onto his stock, keeping Fox's deposit as a forfeit unless the agreed upon price Is paid. The battle of attorneys includes Jake Samu'ls for West Coast, Sol Rogers for Fox, Major Tuller for Hayden Stone, Kddie Loeb for First National and a Mr. Lawton for Los- ser. Locating for U Theatres Julius r.ernhelm of the Universal home oince, Is en route through the s^uth on a theatre scouting trip for U. He hiia looked over Philadelphia and is headed for Charleston, S. C, to look at prospective localities for a Universal house in that city. Bernheim is a nephew of Carl Laemmle. Up to last year he was production head of Universal City, t Hollywood. 1st Warner Synchronized Film Ready—Runs 20 Min. The first of the proposed Warner Bros, synchronized films has been finished at the old Vltagraph studio in Brooklyn. Its entitled. "The Bride Tamer," and has as leads. Sydney Jarvls and Virginia Dare. Herman Heller, musical director for Warner's theatre, New York, handled the baton for music. The picture will run about 20 minutes on the screen. "The Bride Tamer" la classified as a musical film operetta. If "The Bride Tamer" establishes popularity, Warner Bros, propose following with operettas and other subjects. Tikis one has Jarvls and Miss Dare playing roles similar to those taken by Mr and Mrs. Sydney Drew in their two-reeled comedies. Fred Niblo Replaces Stiller on 'Temptress Los Angeles, May 4. Metro-Goldwyn has turned one more of Its foreign directors adrift, having taken Maurice Stiller, the eminent Swedish importation, off the direction of "The Temptress," which is in production as a $2 spe- cial for certain cities and as a spe- cial release the country over. Stiller Is rumored to be the fiance of Greta Garbo, who Is starred In the picture, and came over to Metro about the same time she did. Fred Niblo has been assigned to finish "Temptress." The foreign director Is now with- out immediate assignment and It la regarded as unlikely that he will direct another film for M-G. Only 1 Co. on F. P.-L. Lot Los Angeles, May 4. For the first time In years the Famous Players-1.a sky studio Is al- most deserted. Only company now there Is making "Love's Mnglc." Two companies ore on location. P. D. C'S LEGITS Producers' Distributing Corpora- tion, after figuring for some time In rumors that It would invade the legitimate play producing fleld. Is now definitely :\n<A up to have Its own unit on Broadway next s< ason Probabilities are that arrange- ments will be made with an inde- pendent producer to put on. for a stated sum, tho properties which P. D. C. now holds and wants on the stage. John c 1- linn, president of Metro- politan Pictures, Inc, a P. I). C. producing subsidiary, is looked upon as the man who will bandit the d'-tailn of the lfgitiin.it'- venture. Federal Censorship All Off Until December Washington, May 4. Following a suddenly called ex- ecutive session on top of a beetle hearing in connection with the Up- shaw and Swope bills providing for Federal censorship of pictures, tho Committee on Kducatlnn of the House deferred any action on either of the two measures until next De- cember. The hearing was marked by many sensational charges,- these Including the direct charge of de- liberate lying against Canon Chase by Congressman La Guard la of New York and the withdrawal of a statement made by Congressman Cpshaw that all those opposed to his bill favored unclean picture*. Mrs. Kahn (California) demanded the Georgia legislator-reformer to withdraw the remark, which, In so doing, he characterized as "Just a playful reference to opponents." Upshaw also backed down on hit previous position that hH bill was the perfect proposal. Inasmuch as ho offered to accept any amend- ments proposed by the committee. Congressman Clarence MacGregor of New York bitterly attacked the American Soci'ty of Composers, Authors and Publish on the floor of the House yesterday, charging that the society was preying on the composers simply to make monfjr for those conducting Its affairs. The Congressman also stilted that the society was preying upon the sympathies o f Congress for the composer to create an ultra- monopoly that was destroying the small motion picture exhibitors throughout the country. Lon Chaney't Long Contract Los Angeles, May 4. Lon Chari"/ has signed a new long-term contract with Irving Thalbcrg at M< f ro Goldwyn - Mayer. COSTUMES FOR HIRE pitoi>rn ionb KXI't.i tlTAl lONS I'KUMiN TAT IONS B&&00168 i 1437 B'way. Tal.Mi0P«n..