Variety (Sep 1928)

Wednesday, September 12, 1928 PICTURES VARIETY FRENZIED SHOW STOCKS WARNtR!) AT 139; FAX HITS 113!^ Bull Market on Amusement Issues Sends Everything Up, Including Shubert and Universal T h e a t r e s— Stanley Goes to 59—Keith Advances . and Fat h e Keeps Pace—Group Up Over 100 Points WARNERS NEAR-CORNER Unrestrained advance in the amusement stocks continued to the accompanierhent of still wilder gos- sip than last week and more talk of mergers and. re-consolidations. Warner's "A" stock made a. new top of 139 with the ?'B" stock close behind. Fox soared to new peaks, getting to 119%, but dropping yesterday (Tuesday) somewhat around 115. Stanley was quoted yesterday as high at 59. Warner's Bonds made new alti- tude marks at 192 (same as sold ttt 80 less than a year ago). Evon Universal Theatres did an ascension of 5 points on the Curb In Monday's, single session, to ,32. iand was up 4 more yesterday to '3G%. Keith advanced moderately and . was off yesterday, with Paths mov- ing about abreast of its ally. . Shubert got into the melee Mon- day, jumping six or • so to. 72, for no other apparent reason than the hysteria that for the moment has hit the public in relation to. amuse- ment shares. Twenty theatre stocks were up an aggrejgate of 108 points or over. This is on top of 78-point advance week before. These violent iluctuations were accompanied by Innuinerable stories, some of . them plucked out of the thin air and some having apparent substance.. One that has attracted consid- erable attention was that War- ner's stock was in control of Will- iam C. Durant and his followers to an extent that gave them a tech- nical corner. In substantiation of this story it was understood that ias long ago as last May, Durant, who is a director in the Loew Cir- cuit, held options on large blocks of Warner "A" owned by company allies. Circumstantial The circumstantial stories had It that Durant's options were entered into when the stock was in the 70's and called for delivery 20 points higher up. When the ticker price ran up to 90 and it became evident that Durant was going to exercise his privilege, so runs the scenario, th6 Warner people suddenly awoke to quite a situation. The result was that the option sellers had to go Into- the- market to buy b^ck their own stock. Net result of this situation was that from the moment Warner "A" crossed 90 an enormous short posi- tion was created over night, and the extrication of the short account was the influence that Shoved the. stock to 130. Believe it or not, it Sounds fairly reasonable. On top of all that of course, the Stanley merger talk has helped. In any event, Warner's gives every indication of being semi- corncred. That doesn't make it unique just now. Montgomery-Ward, which got to 260 yesterday, was up about 200 points from its. low of a few years ago and was oponly talked of as be- ing coi-ncn (I 1 y •... > Cuttcn mob, Warnci- yc;.L,•.•■:,./. went into a sharp drop in I'.u' ;..;c1(llo afternoon, and (luring tlui . duy went throuKh delirious swings from 139 to 129, ^ Pi'Qjji> v^_tft._ fit t ra/^t jrow sliortP and thi>n put the screws on. The Fox Jump Story is that lln^ jump in Fox was .not ..1 tlie cards. The old •sponsors had In mind a conservative canipal.irn riinf.infr over a long i)eriod and ilc'^iui!".] lo f^radiially discount the luaHTMunt in the company's Wall St. on Show Biz On Wall Street early this week with the amuserhent stocks lively^ reports lined up possible picture trade mergers in this wise:' Warners, Keith's, Stanley and First National, as a. sepa- rate group. The other held Loew's, Para- mount . and United Artists, Fox was not re:p6rted in any impending deal. In Times Square Keith's and First National are. removed from the downtown list, leav- ing but Warners and Stanley in the first group. Stanley per- sistently denies a contemplated sale or merger., The second section is not readily ficcepted as in the prospective at present. Para- mount, Loew's and U. A. are closely interwoven without be- ing locked. When the latter may occur. If ever, is prob- lematical. It's* a logical con- clusion in view of the existing film trade picture, but there are many offsetting arguments at present iagainst it. It's unlikely there will be iny Keith movement before the return from abroad of Jos, P. Kennedy and John J. Murdock, Keith's .heads, shortly after Oct 1. position as It stood revealed from time to time. To this end several substantial houses had been at- tracted to the stock. Halsey, Stuart and Co., hi^h class house specializ- ing In the utilities and investment stocks, came out openly in a heavy advertising campaign, pointing out the Investment possibilities of the issue. It is even said Pox insiders tried to stem the rush .when ' the "A' stock crossed par, "but the public appetite (or a bull pool) took up all offerings without even slacken ing the pace of the runaway ad vance. Result was that Fox insiders had sold out as much stock as they could spare for such operations, and in spite of them the price had soared. Presumably they will be in the market, like the Warner peo- ple, to buy back their stock sold lower down if possible. Amusement Features Over, the last month during which the amusements have been featured alt the expense of the old market leaders, no substantial news has come out to explain the phenomena. Market opinon is at sea for a logical reason, and nothing is in sight except a technical comer in Warners which has touched off a psychological frenzy of public buying. The Warner-Stanley merger or sale talk still is around, with denials from Stanley and silence from War ners. This seems to be the nearest thing to a real development. Yes terday story was abroad that War- ners had inaxie a definite tender of payment in a new. Warner stock bearing 414 per cent, for an out right sale, with the Stanley directors turning it down, A Keith-Fox consolidation Was Electrical Strike Ending? Chicago, Sept.- 11. ' It is thought hei'e that the elec- trical theatre strike, an internal union dissension that, lias been holding up the installation of the- atre wire equipment throughout the country, will be settled this week. Mike Boyle, president of the Elec- trical Workers, left here yesterday for New York, where the final ad- justment will occur, it is said. The strike involved two unions, stage electricians and the electrical workers, on Jurisdiction, Theatres were helpless during it. At one time a settlement was reached but the trouble between the unions broke out anew. WincheH's Dialog Script If Walter Winchell finds time be- tween his literary endeavors, he will do a sound talker script on Broadway for Monta, Bell. The M-G-M talker producer has asked Winchell for a yarn. ' The "Graphic" columnist also busts out as a radio spieler on the "Life" (humorous weekly) ra.dio broadcasts oh WOR aiid the Co- lumbia network. Mack's "Voice" Talker Wiilard Mack's first directorial effort on a sound picture will prob- ably be "A Voice in the Dark," for M-G-M. . This is the old Al Woods show which Sam Goldwyn converted to the screen about 10 years ago. Mack's undertaking, of course, Is something of a remake. Sh^h-h-h! • Lo^ AnKolos, .Sopl.. 11. Foilowinfj the • uUiniatuni oC Winliold K. Shoehaii, Vox gen- eral numagor, that .ho would- discharge any employe reveal- ing anything pertaining to sound pictures, stipulations have . been , included iii, conr. tracts whereby employes agree not to mention Movietone mat- ters to their wives or sweet- hea.rts, cind further pledge themselves not to discuss this matter arnong fellow workers in the studio. These directions are pre- sented not only to directors and actors, but also to cam- eramen and stage employes. NEWSPAPER ADS USED IN UNION THEATRE FUSS Lincoln Exhib Turns Down Union's Acceptance— Theatre Closed Fox Working on Dual Reels for e mentioned among the wild ones. .Keith-Warher-P'irst National was another. One, of the financial writers touched a new .field of guessing when he intimated that the Shubert properties were also contemplated in a Keith-Warner-First National assembly. Nothing to this, except a Wild Inference" inspired by a spurt by Shubert stock from 61 to 72 within an hour Monday afternoon. Making the week-complete, Mon- day saw a sudden wave of interest in Consolidated Film Industries pre- ferred on the Exchange. A turn- over of 17,000 in this usually inac- tive issue carried the price up from 25 past 28. Story in explanation was that senior stock is callable at 35, and that it Is closely held by insiders who propose to retire It and then put the common stock (listed on the Curb and selling around 17) on a dividend basis. Said first quarter earnings show 50 cents on the common after preferred divi- dends. Aspect of the group for the future is confused. On one hand the ad- vance has been so dangerously fast that a collapse would be Inevitable under normal circumstancea. But the technical position may be such that strong pools, which have cer- tain issues virtually cornered, can do as they please to sellers. Such stocks can be put at any level the Exchange governors permit, or they can go smash between quotations. Sooner or later the^whp.Io^ g will liquidate their present position and get down to trading basis, but meanwhile almost nothing is too fantastic to expecL Summary for week ending Saturday, September 8: STOCK EXCHANGE High. 4r> 20% l!)4>/4 77 110% ■ 20 00 11414 34 11 146% m «•% •100 124 130 SIH lii-'<, 101 IM'i lOL'S filV4 101 01% . IjOW; SO'/i 23 103 4l>% W>% a5V4 75V4 72 24% 111% 2 B% 54% 30 V, »:;u 80% 22 CO 12% ■ --l'7^= • UVi !().->% !)9 r,n Stiles. Issue and rate. IHuh. . l.nOO American Seat (4) '■'■'i}^ 0,400 Consol. .Film pfcl. (2)i 20'/i 2,200 ISastihan Kodak (S). 1S4% 87,100 T.bew (.3) ..... W/t 1,800 Do pfd. (C',4) .. 254,r>00 Keith .1 > 20 7,100 Do. pfd. (7) 00% 022.200 Pox Class A .(4) 114'/4 .3,000 Madison Square Garden (2),.. 23% .300 Met;-G.-M. pfd. (l.Stt) 2.">% ■.,•■,00 Motion ricture Cap i> 70,000 Paramount-Farnous-Lasky. (8). 140% 140,400 I'athe .Exchange 7%. 54.000 Pathe Cla.-js A.. 32% 12,000 .Slnibcrt (5) , <'" 120,500 Stanley of A... W> I.'tO T'tiiversal pfd. (8) 09 141,;iOO Warner IJros. 124 186,.")00 Do. Cla-SB A , ,... 130 CURB 7,.';00 IJalaban & Katz 81% 17,iiW CDn. Film Knl in'4 200 Film Insi>...i 3'^ -^T<lpV)()-J-:ox-^lUicatEca.-,-^.^..«-=.^.^..^..^>....-.^JJ;4%=^- 2.:!«0 I>5ew rls 5^5% BONDS $4,000 Keith (h, '40 ; 01 01.000 Ww G-M, '41,... 114'/4 42.000 Do ex wo.r 101% 130,000 Pathe Ts. '.37 W 00.000 I»ar.-Fam.-l.aBky G.i. '47 101 10,000 .Shiibftrt as... W 21.'),000 Wahier Cros. O'^iS, '28... l'.>2 1j>v: 32 25Vt 181% 60; 227A 80 05 2.34 25% 8% 143 ■ 0% 2714 01% 48 08% «« 97% 77% 12% 3V4 21 90V4 112i/i l'>0% 7H isa Last. 32% 20 1K\% 03% 2.S%. 00 113% 23% IWt . 8% ♦114% 7% 31% 00% 5.3%. »8% 124 128 81% m 3% ^_ 32.^ 23% 01 112% l'K)% 7!»% • 1(W% 88 I'Jl Net Oil (re. - % -'i% + +"ti% + 8%. 418% t 1 - % + 2% - % + 4.'/i + 4% - % + 27i(, +31% Los Angeles, Sept. 11. Slowness of Fox in turning oiit full length Movietone products is said to be due to experimentation with a view of changing the re- cording and Movietone reproducing method. Pres-ent system has the sound recorded on the same film that carries the picture. Incorporation of the two registrations sound and image, on the same film, is re- ported to have brought about dif- ficulties in the process of develop- ing, which do not work out bene- ficially to one department or the other. Much secrecy of this work has been maintained at the studio, with the only ones aware of What is being done being the egineors and head studio executives. It is said it has been finally de- cided to work on a plan to record the sound on a separate film from the picture image, similar to the Pomeroy idea. The plan provides for the synchronization to be se- cured, through the use of a connect- ing shaft attached to a point where the starting identification is marked on both machines to indicate a mutual contact of the corresponding sound and picture films. This system is not new but is said at present to have advantages over placing the double recording on the same strip . of film. The separate film for sound also allows for a normal size projection of a picture, which cannot be done with the present single strip, as the sound tract takes away one-eighth of an inch on a frame. Should this method work out It will moan synchronized and threaded sound and film projectors in a booth, connected by a shaft, but it will permit the cameramen ar wider scope and simplify the means of obtaining color with sound desired. A color camera can then be substituted, regardless of the sound track, BcHides which, it will allow sound registration more latitude. Lincoln, Neb., Sept. 11. The Rial to theatre here closed Saturday. An advertisement. had been In- serted by it in the daily, advising the public that owing to the stage union's demands for operators in the wired house's booth it would be impossible for the theatre to con- tinue. The. Rialto advertised "To. the People of Lincoln" on Sept, 7. Sept. 8, Local No. 151 of the I. A T. S. E. (stage hands and operators) eplied in: another advertisement, stating it would accept the termtl mentioned by Manager Cooper of tlie Rialto as his counter to the Union's demands. Cooper's terms were four men in the booth and a six-hour day instead of eight. Thiis was double the number of men formerly employed. Sunday the Rialto ran another advertisement, stating the house had closed the night before; that the union's assent camia too late, and the house had made other ar- rangements. . Nothing is known here as to tho future intention of Cooper. Dancehall Sties Par for Using Name in Bow Film Los Angeles, Sept. 11. Roseland dancehall, San Fran Cisco, has filed suit against the Paramount for $100,000 for using the name of the dancehall in scerie.s for "The Fleofs In," 4% + 3% + 1% - % - % + % -11'. + U • Hls-dlvldend, Jannings-Lubitsch Annual Los Angeles, Sept. 11. Kniil Junnings will make one pic ture oacih year under the direction 15E TKrns tTTliT) I ftofiT ^"""""^ Following the favorable roff.iJtioii of "Tiie Patriot"' in New York, Jan ning.s calU'd on Jcs.so La.sky and a.skfd, a.s a favor, IC he miglU rnaki one pl<:ture yo.arly with Lubit.-'-li La.sky promptly roptied in tlp' ul- flrmatlve. This Is the first time a theatre- union controversy was ever ended through newspaper advertising, rather than by personal conferences. T-S Talking "Ghetto" George Jessel has completed A talker with songs for Tiffany-StahU titled "Ghetto" from an original by Viola Brothers Shpre, This, along with two other spe- cials, "The Toilers" and "Cavalier,'* are being synchronized by Dr. Hugo Rlesenfcld under the RCA Photo- phone process. Zanuck's Letter Los Angeles, Sept. 11. In the form of an inter-ofllce communication, Da.ryl Francis Zan- uck, assistant to Jack Warner, ad- vised every employe of Warners to register so that they could vote at the presidential election to bring a California product Into office as president. The Californlan whom ho speaks of, of course, must be Hoover. Zanuck is the only studio execu- 'tive on the coast known to have broadcast his political views and suggestions In this way. A check was made among the stu- dio a .s t o 11 s' pbill i cal "s e n ti nmen ts W a Variety nian, who reports the laboring element on the lot Is pro- Hoover, with the writing staff lean-r ing toward Smith. Hoke Comedy Team iPoUy Moran and Harry Grlbbon have been teamed by M-G-M. They will make hoke comedies. First goes into production soon. Bill Hart's Return Lo.s Ang'-Ies, Sept. IL William S. Hart i,s en route to New York, wher« he will make three rofiord.s of his favorite ppems for Viotor. Following thl.s. Hart will make nn.nl rif!;otlatif)n« lo come back, to tli(> screen as a United Artists Iil;iye r. L ;tit('f jVmI i-s .sairl to have^ been op.-ned by J ).7ui;lxs Fairbanks. • Lasky East Sept. 17 Lo.s Ang.'les. Sept. 11. ,Te.s.-<(! L. Lii.-^ky loaves for New Y.-.rk S-').(. 17. ; If,, hi' l>e..n Iti Hollywood 10 1 we,.)..-.-.