Interregnum in Hollywood

A cinema trade paper last week reported that United States Steel Corp. had loaned $2,000,000 to Tiffany Productions, Inc. (features). Commentators sought in vain for an explanation of this fantastic story. The only link between the two companies is remote: Leonard A. Young, president of Tiffany, is also president of steel-buying L. A. Young Spring & Wire Corp.

The tale, however, was typical of the wild rumors which have been gossip in the industry during recent months. Turbulent in infancy, the cinemaelstrom was still concerned last week with who was going to be in charge of what.

Tattlers were busily giving reasons why Vice President and General Distribution Manager Sidney R. Kent resigned from Paramount-Publix Corp. last month, were guessing his plans. Popular, an excellent salesman, Manager Kent was an Adolph Zukor protege. His resignation was sudden. Theories heard last week boiled down to two: 1) Mr. Kent resented the increasing power of Sam Katz (cofounder of famed Balaban & Katz theatre chain) in the company; 2) Mr. Kent had quarreled with Taximan John Daniel Hertz, leader of Paramount's new management. Every producer was said to be angling for Mr. Kent last week, with RKO, now 60%-owned by Radio Corp., thought to be an especially eager dickerer. Meanwhile Hollywood wondered whether Paramount would sell its 50% interest in Columbia Broadcasting System, Inc., on which it still owes $4,000,000.

In the Columbia Pictures line-up last week was Walter Wanger who resigned as general production manager of Paramount last June. It was his third resignation. This time the resignation stuck and he became vice president of Columbia (Mickey Mouse distributors). Harry Cohn assumed the presidency after buying the stock interest of Joseph Brandt, former president and his associate for 15 years.

Much talk centred on Fox Film Corp. People wondered when the vacation of Vice President and General Manager Winfield R. Sheehan would end, if at all. Edward Richmond Tinker who suddenly became president of Fox last November after a long career as a banker with Chase National, left Manhattan for his first official visit to Hollywood. Certain contract cancellations on his part caused much bitter comment on the lots. Undertone to all Fox gossip was the story that William Fox will again obtain control of his company.

Amid this confusion Will H. Hays surrendered a large sector of his "sphere of influence" to Edwin J. Loeb, Los Angeles corporation lawyer. Serving under Mr. Hays, Lawyer Loeb will act as an arbitrator for intra-studio disputes, will set up standards of ethics, will advise on mergers.

Earnings statements, which began to appear last week, reflected the industry's woes.

But while last week was dark for many cinema figures, it was a big week for the three Skounis brothers of St. Louis. The Skouras brothers were once shepherds near Skourohorian, Greece. There were four of them: George Panagiotis, Charles, Spyros, Demetrius. They decided to pool their finances, send one brother to the U. S. As soon as he was successful, he was to send for another brother. Youngest Brother Charles was picked and he arrived in 1907 at the age of 18. Bellhopping at the Jefferson Hotel, St. Louis, brought him enough money to send for Spyros who became a busboy at the old Planters Hotel. Soon they had enough money to fetch George. In 1912 they leased the Olympia Theatre in a cheap part of the city, made enough money to get Eldest Brother Demetrius. But the War held him back. Spyros then joined the aviation, Charles, the infantry, and George operated the few small theatres they had obtained. After the War the Brothers Skouras expanded and in 1928 sold most of their houses to Warner Bros., with which they became associated. Last year they resigned from Warner Bros. With George as financier, Spyros as promoter and Charles as showman, they again began expanding. They leased many a theatre in the East from Fox on a 26-year basis, a few from Paramount. Last week they completed a deal by which they will manage the 550 theatres of the Wesco group. Chief assistant to Spyros Skouras will be Lester J. Ludwig, formerly in charge of the Finkelstein and Ruben theatres for Paramount-Publix. Only Fox Theatres still being operated by the Fox Company are some "de luxe" houses and the Poli chain in New England. Stock-holders heard with alarm that famed Roxy Theatre must drop its name because Samuel Lionel ("Roxy") Rothafel has gone to Radio City.

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