Variety (Feb 1928)

10 VARIETY P I C T U R E S Wednesday, February 1, 1928 AMUSEMENT STOCKS SINK BACK; PATHE CRASHES; STANLEY WEAK Ticker Sharps See Liquidation iii Loew—Fox Makes Best Showiiig 611 Talk of Heavy Wall Street Backing—General Market in Midst of Scare . InfluentM'd partly by spncntl. mar- ket'conditions, but more by individ^ ual considerations, praGticaliy iiU the amusonienc sliai'cs sank' baok from their tops last week and early this week, or dropped further into new bottoms. Loew was ' baek belovv 62 , yester- day, after touching fOr the third time its old top of 64, accompanied by the comment , of ahreWd ticker readers . that. . there were signs of liquidation by Important operators. Paramount \vas quiet at and gen- erally biplow lis, the line at which it had developed resistance to sellr ing pressure up to the^ last week or so. •.■ " Pathe cra.slied again, this time to 13^4? with .'corresponding' weakness In its bonds, a ,7 per cent.' Issue which returned to its former low of 80. This-slump was attributed,; be- sides ' the: dividend passing; to. frightened selling by smalTholders who had the stock wished on them when the Keith-Albee connection was ballyhooed last year/ , Fox did best of thie group, .%lr- though even that much-touted issue was not immune from pressure dur- ing the worst of- the uncertainty .about tight money, Federal Reserve Board brakes on speculation' land such thlrig.s. In this .case the Inside "dope" was that. th« Wall Street banking , sponsorship for the. Fox stock was: engaged In an effort to clear itself of a speculative follow- ing. In this connection stories are afloat downtown which seek to iden- tify the sponsorship: of Fox as one of the biggest Interests—indeed the very biggest—In the financial dis- trict. Customers' room gossip has it that this concern does not want a public following of trailers, and, from time to time will maneuver to shake it off. Meantime a large part of the stock has been .taken out of the ' market a.nd. the floating supply so reduced that only Ihirior buying has a disproportioniate* effect. Stanley at 50 Staiiley, which sOld above 90 be- fore the . distribution of stock last year, climaxed its progressive de- cline last week,, selling around 47, but promptly rallying to better than. BO. .. The bottom was reached just .before the announcement of the in- come statement for 1927, showing dividends just earned but net not appreoiably .aboVc the showing of 1926, ■ Recovery was bai?ed on belief the worst was known and had^ been •.discoiinted. . This was only one of:a number of financial Btatements; made by . film and theatre concerns. Most impor- tant was the unbitflcial .'forecast of. Paraniouiit's 1927' net, plaeinjf it at the rute of between $12 and $13 a share of common. The Street hail been led to expect something better. .'What particularly .thi'ew cold water on enthusiasm was the ligure Of around. $3.75 for the Sei>t-Jari period; This and the feeling that pool hold- ings had been reduced, put the issue iii . a highly unfavorable light to ticker followers. Loew Operation The explanation of . Loew's sud-. den upturn, during a session when prices were falling all around, was that that infornfiatlon had been al- lowed to leak from inside, tending to show that appreciation of .rea;i. Estate holdinigs would , make a bril- liant showing' on reappraisal. That explanation sounded' weak, as it had been called, to attention m&,ny. times In the past. It Isn't reason- able to. believe that rising real es- tate values over a 15-year period covld. result In .a sudden wave of buying some Wednesday morning. The fact that the move started dur- ing a ..generally weak market was the best Indication that It was a deliberiate operation. When the iip- turn halted on the old point of re- sistance, the conclusion was obvious that It was with the consent, if not with the co-operation, of the oplerat- Ing clique. . Stanley showed net profit of $3,- 235,337 for 1927, compared with $3,- 148,809 In 19?6. For-the same pe- riods the gross was $37,060,000 con^- pared to $22,909,000, an excess for 1927 of nearly $15,000,000, Indicat- ing either ehormouisly Increased op- erating cost or, as likely, important expansion. Shubert Theatres reported net of $630,626 for the six months up to .Jari, 1, eqtaal to $3.75 a, share of common, comjpared With a net per share Of $4.03 for the same period of the preceding year. This, of course. Was sufficient explanation for the dip from 75 to yesterday's price of 64%, and also for the in spired: upswing of a couple of months ago? Summary o£ tra.ding for the week ending .Saturdsiy, Janu-n'o- 28: STOCK EXCHANGE -1928- 40% . 100 lOG 88.'/4 : 26v'.l 2(i 24'.;. lOii. 117?A 18',4 ■ eiiHi --90?4- 2f.',4. IjOW. 30'i: 82 . n? • mi ni'i 2% OT) 22 5. . U4' 22 10 10% 101 10814 M 81 Mj, 102 Sal<»9. I&sue and rSite, Hlgi). 2,]00 American .Seat (4) ,. 40\<> 5,200 Easl'mnn Kodak (8).. ^ 109 ,600 Fir,st National 1st pr<?f. (6)..... lOfi 40,'COO .Pox Film clas.s A (4) RS'i ' 17r>,200 Loew's, Inc. \3) ; 03'k 0. 600 MadL-jon Square Garden dv.i.... 20'; 1,000 Mctro-Goldwyn \st pref. U.S'J).. 2i; ■ 1,400 Motion Plct. Cap. 8','. 1. nOO Orphcum 21'" 000 Orpheum, pro.f 102 ' 4r>.iH)0 Par.-Fam.-UisUy (10)....;...... nr. 10,1)00 Pathc ExclmnKO class A.. 17% 4,R()0 Patlie Com.. 4 4.800 ^hu^c^tC5) •. «7% 440...J.Inl.vfreal Pict^rrs Jlat prei". (81. 07'- 8,900 Warner Bros, clas.s X'..;. .~r. ."."T"" 2ri~""' CURB ."JOO Film In.sp. .Mach........i....... B 10<) U. W. Grifdth... . Vi 8.200 Fox Theatrps:. 21% l.aoo I>new deb. ri.s 10. 2,000 Warner 13ra.s. n..., 15% BONpS tS'l.OOO Keith Ga (Slov-k Hx.'l):uiffe>-.,. .lOO'^ iJiO.OOO Locw'.s Os (.Sioi.'k Kxi'hiti)i{f>);,.-. lOK'-. ■32,000 Shubert (l.s. . 0;j'A 02,000 IMthe 7k «0% 100,000 Warner. :Br.>s. tl'.-f:,- 1,023 (Ciifl)). 101 ^-i Tjocw bonds ex warrjuils Siilil $S3,0<K>, 101, lOtl'i, lOO'.i:, net off, ISSUES IN OTHER MARKETS AM Quoted for Monday Over the Counter New York Qimtoil in Itiil and Asked 4 19% 12',4 13 '■ OD'.V lOOVi 92% 80 '• »5?8 . 4^.4 1'.4 J2'/4 14'.4 99',4 107 ft2% 80 B - l»/6 14% 99'/i 107% 1)3 8(M4 SO'..'. -4- % + I -1-2 -r1-% — .+1 -214 20 0 - t 1.'.: ;io ft .3 • Hoxy,-. CI. A. f.Sv,' nd'i ) (^.M)... .... rnit do. .... IJnit: do : ,.,.. . 7)0 Kor- s: riiDriii......... .i TPi hiili'uNir- GOLDBERG PANNED BY SCREEN WRITERS' GUILD Articfe in Society's Bulletin- Recites Complaints of Writers for Indie Producer «* • »• Lios Angele$, Jan. 31. £i>creiph Writer.<3 Guild does not take kindly to the tactics of Jesse J. Goldberg, Independent film pro- ducer, in his busine.ss relations with its members. Several com- plaints have been'made regarding transactions^ had. with this producer, who is al.so known as Jiime.s Ormont. Specific complaints are being primed this week in the .Scret?h Writers "Bulletin;" officifil organ of the Guild, which carries the follow- ing article: "Jesse J. Goldberg, Producer . - "Jesse J.. Goldberg produces fo<: First Division Pictures, Inc., and directs i>s James Ormorit, also accepting screen credit for au- thorship, on his production^ as .William Gilbert. "Goldberg engaged Ruth Todd to write the adaptation and. con -' tinuity of a picture to be called 'Comrades.' MIss*^ Todd's, agi-ee- ment called for payment of one .sum for adaptation and conr tinuity, and another sum, two- thirds as large, as a bonus If the picture was made for less than a " stipulated production cost. "Miss Todd's understanding was that Goldberg's financial backers would not approve the amount unless payment Were handled in . this mariner, and that the .picture would certainly be made under the bonus deadline, and that She would receive all the money , men- tioned In her agreement. But the picture, unfortunately," ran past the bonus amount and she re- ceived only the flat price men- tioned In the agreenient. Story was credited to .'William Gilbert but only part of the price she expected was credited to .Riith Todd. "Goldberg: engaged Arthur Qregor to. do a etory and con- tinuity for , an . advertised title, /Polly of the Movies.' Gregor. wrote four stories, the last of which was sufficiently acceptable to proihpt Mr. Goldberg to Issue . checks covering half payment of the price agreed upon for story and continuity. One of these checks was dishonored by the bank (Miss Todd had the s.'^me experience)* but later made good. "Then Goldberg, quarrelled with Gregor and took leg^l; action to force Gregor to return the money he had received, attachirig money due Gregor at another studio and attaching Gregor's bank account. "The net result of Gregor's em- ployment Is that Goldberg had . four stories and a script, made a picture based on one of the stories, paid half the price agreed upon and forced Gregor to spend money for legal aid to keep the other half. Goldberg also claimed, as due him for this money—^fter . demanding that Gregor return It—another story written by Gregor and sold to one of the larger studios. This claim was withdrawn by Gold- berg when the studio refused to attach any Importance to it. Goldberg has also annoyed Gregor "In-other-ways^-^ — -^^ "Jean Plannette and George Dromgold, as. a team,- agreed , to write, flcenarlze and title a pro- duction for Goldberg/ payriients to be made on account as the work progressed to staled, de- grees of completion. They de- livered an accepted .story and script and received their money, partly in checks, dishonored- and later made : good, up to a iinal $100 claimed by Dromgold. Gold- berg now refuses to pay this $100, and has Informed Dromgold that his attorney,Is .lender instructions to proceed lega.lly against .Drom gold for the return of the money he has already : received. "It is obvious that ihese writ- ers have profited more In experi- ence than In cash as a result of their employment by Josso. .T, rjoldberg." 8,27;") aiaiile.v .\iiii'rl'';i, 0J% ; Chicago ■ ».,, llH',!il>.nn *■ Iv.n;: , St. Louis iMIiiiurirs Urc-i. . , „ Los Angeles •.in!) iiii' n<'!i"lii In.'. . 2-1 Boston . KKI Loew's 8 61 U a - F. R. JONES' COMiffllES Los Angeles, Jan. 31. F. Richard Jone.s; formerly su- pervisor of the Hal Roach come- dies and later director of Dougla.s Fairbanks In "The Gaucho," is ne- gotiating with Pathe to produce two-r6eI and feature comedie.'^, to l oplace the contract held by Mai'k I svnnott. IN BETWEEN FINDS HOUYWOOD STUDIO S 50% DND ERKOigHAL 5,000 Studio Employes Idle—Preparing for New Programs--How Producers Are Now Working —Fox Is Busiest, but Still at Two-Thirds Normal Critic'S Xmas Gross Gone • A New York evening tab- loid film reviewer (lemme) lost, an exceptionally large haul of Xmas graft through ah' at- tempted display pC importance. The girl lilm. scribe, who also does sornc radio work for the tab, got an exceptionally large .gross from, both sources,. She docided to pile it all into a taxicab and ni.tke a crui.se to Broadw^ay for the pui-pose, in turn, of dropping off a little token- to the girls connected with the Broadway- picture houses. The fii'st Stop-off, at the . Capitol, to .see Bessie .Mack, the revieweress took her little bundle with her; into the the-, atre building, leaving ;the cab waiting for her with its tOh- neau full of the gross. When she cariie down to the street again, taxi, Xmas pres- ents and all were gone.. And not traced to date. , CHRISTIE'S 42 COMEDIES FOR PAR NEXT SEASON Los Angeles, Jan. 31. Charles Christie, business head of Christie .Studios, leaves for New York ].i?eb, 15 to confer with Para- mount ofllclaLs on the schedule o? Christie co. .edies for next season. Christie produced 30 two-reel come- dies for Par. distrljjution this sea- son, and ■will probably increase thi.«i number to 42 for next season, mak- ing adidltional comedies to takW the plaoe of the Edward. .Hortoh series of six made by the Haroirt Lloyd organization last summer. The Christie cohtracf for iPara- motmt distr'bution' covers thres years and also provides for.Chris- tie to produce One special feattire comedy each year. "Tillio's Punc - tured Romance" I9 the season's special, with nothing definite ^ct for next season's feature. WARNERS' NEW OFFICE (General Offices Shortly Moving to Wefit 45th Street in New Building Without announcement, Warner Brothers have.erected a building on. We.st ■ 4.5th street, next door to the Martin Beck theatre, just west of 8th avenue, for their general of- fices. ' ' Removal will occur the later part of this month. The building Is of six or seven stories, with some space rentable to outsider.'^. STANLEY CO. CHANGES (Continued from page 5) some of the Stanley crowd thoiight Boyd shotild give First National far the best of it on picture purcha.ses. Boyd declared to the contrary, saiy- Ing he was buying of Paramount as needed and- a;t a. fair price. Be- sides which Boyd pointed out that Adolph Zukor had been gerterous In advancing money to Stanley when the latter needed It, and all of that money had not yet been repaid. That subject grew so serious from accounts, that Zukor and John Mc- Guirk woi'e drawn into it. McGuirk is said to have stated he was pow- erlops in his position as president of the Stanley company, through the authority of the exefUtive coun<-il prevailing. . Boyd, looked upon as one Of: the best-^filni'=;buy€rs^in^=.t-h^>=:-Go.u'nti2y,=ia: reported to have tenclered his resig- nation or threatened to. From ac- counts, if he did so", it was tfiblcd. It Is said Boyd, very wealthy and the owner of much r.oal estate tvith confj.id -Table in the Times Square section, received several offers from large chains when the Stanley fu.s.s. hernmo known. LQS. Angelc's, Jan.-.lil...' : "While- -preparing for ,. th<3- '.'2.S-'29■ program of. production, coast .Stu- dios are working 50 per cont bi'iOw normal, with approxlmutoiy fj.OOO regular studio employees idle. . Activity at the coast studios' is as follows: ; > .United Artists, two comiiuniea working where four is novnial. M-G-M, two with six normal. First National, .six with eight nor- mal. Pathc-DoMille,. five against oight normal. Wdrner, dark since, Now Year's, one company making. Vitaphone records, as against five feature companies normaliy. Universal is making a grand.'<tahd play to clean up all productions in preparation and-working eight com- panies, against the same number normally. . - Hal Roach, anticipating to close two months ahead\of it's annual va- cation, working to .capa.oity with three short comedy cotnpanies. FBO, two cortipianies actually shooting, against six. normally.. . Fox, considcried the busiest studio oh the coast at this time, wotking eight features and three comedies, a;gainst a total of twelve, normal. Metropolitan, rental studio when Path e .c^n spare Itj. two companies working; with facilities for six. Christie working to capacity with, two companies, hoping to complete its Paramount '27-'28 program In time to close .the studio at the usual vacation time. . . Tiffany- Stahl, two . companies working, with facilities and aim for a normal condition of six. Educational, preparing to clean up on last year's product, with but two companies working where five Is normal. Paramount, four companies work- ing, with facilities for eight normal. Aside from the leasing studios. Including Tec-Art, California and Poverty Row, there Is very little doing in production. Warners' Studio Fire Loss of $100,000 Insured Los Angeles, Jan. 31. Estimated damage amounting to $iOO,000 was done . to ^ "Warner Brothers studio when a blaze started on one of the stages, setting fire to a whole block of sets. Loss Is covered by Insurance. The fire is belieyed to have been frorn the sparks of a trash burner on ah . djacent lot. The fire de- partment soon had it under control, with a few firemen and studio em- ployees slightly :Injured by falling timbers. Film laboratories containing val- uable products _^e.scaped Injury through orforts of studio employeeSj who immediately poured -water over the roofs of the b.uilding. The film library and "Vitaphone laboratory also escaped damage. As "the studio had been clo.sod for three week.s no financial production 'loss wa .s -incu rred -■■ - L ■ ^.^1, Par» Starting 5 Lbs Angeles; Jan. 31. "With 52 features to be made this year Paramount will start five pro- ductions within the next 10 days. Stories in preparation are "She Wouldn't Say No," .featuring Biebe Daniels, to bo directed by Clarence Badger; "Ladies of the Mob," feat- uring Clara Bow, with "Wllliani Wellman directing; "When Ro- mance Ridieg," Zane Grey western directed by John Waters; "Three Sinners," featuring Ppla .Negri, -vyith Rowland "V. Lee directing, and "Easy Come, Easy Go,", featuring Richard Dix with Frank Tuttle di- recting. F. N. Heads West Clifl'ord 10, Hawley, prcsidcnt~of First National, with R. A. Rowland and Jerome. Bcatty will reach the coast in February to confer with Watterson , Rothackcr and Al Rockett, First National studio hea:ds. It w*ill be on the -layout of next ."oapoii's pro.J?ram.