New-York tribune., 1919-12-19
Stockholders Clash
Over Sale of Three
Theater Properties
Erlanger Brings Action for
the Appraisal of the New
York Company's Holdings
Before Deal Is Completed

An action brought in tho Supreme
Court yesterday by Abraham L. Erlan-
ger and others, minority stockholders
Of the New York Theatre Company, re-
vcals clash over the sale of that
property with All Hayman, represent
ing Charles Frohman, Inc, Marc Klaw,
formerly partner OF Mr.. Erlanger, and
Henry Dazian, who control the major
ity stock. Mr.. Erlangcr is moving
with tho estate Of William Harris and
the estate of Samuel F: Neirdlinger, all
stockholders. for an official appraisal
Of the property by three persons be-
fore it is sold to the Seneca Realty
Company. Mr.. Erlanger owns 1869
shares of the theatre company stock,
tho Harris estate, 700 shares, and the
Neirdlinger estate, 839 out Of total
Of 1,248 shares.
AT recent meeting Of the stockhold-
ers two-thirds of the shares were voted
IN favor of selling the property to the
Seneca Realty Company, which, it Is al
legged, is representing the Famous
Players -Lasky Corporation.
Price Fixed at $3,200,000
The petitioners allcge that Klaw and
Hayman are interested in the Famous
Players-L Lasky Corporation. At the
stockh olders' meeting it was decided
that the price of sale should be $3,200,-
600, while a motion made by the minor
lty stockholders for an appraisal Of the
property was lost. Mr.. ErIanger and
the other members of the minority did,
however, have an appraisal made Of
their own accord. This WAS made by
Joseph ?. Day, and he, it is alleged,
The New York Thcster Company was
organized in 1903 to purchase the the
ater property on the east side of
broadway from Forty-fourth Street to
Forty fifth Street. The building houses
the New York Theater, the Criterion
Iheater and Loew's New York Theater
Roof. The petitioners say all these
viii disappear if the property is sold
At the stockh olders' meeting on Oc-
tober "a Joseph 2. Bickerton jr., rep
resenting the Harris estate, and Ar
thur S. Arnold, for the Neirdlinger
estate, protested against the sale and
demanded payment for their stock
Contract Guaranteed
MIR. Bickerton also asked whether
any of the stockhol lders Of the theater
company were interested in the Famous
ayers-Lasky Corporation and whether
such persons would profit by the sale
Mr. Klaw and Mr.. Hayman and Mr..
bazian said they were not interested
IN the company making the bid, it is
declared, and that Benjamin Paskus,
representing the purchaser, was ready
with 100000 as deposit and that H.
j. Sachs 4 Co. were the brokers, they
being the only persons known in the
transaction to Mr. Klaw, Mr. NIayman
and Mr. Dazian.
1t IS alleged by Mr. Erlanger and
his associate minority stockholders
that Mr.. Paskus was the personal at
torney of Mr.. Dazian, Mr.. Hayman and
abe Frohman Company. Mr.. Bickerton
moved for the appointment of a com
mlttce to estigatc the purchaser.
Mr.. klaw, Mr.. Hayman and Mr. DaZian
it is alleged. tclephoned to Mr. Paskus
and subsequently il was announced that
the purchase contract would be guar
anteed by the Famous Players Lasky
Corpora ton.
1t is alleged that in June, 1919, an
agreement was made between the
Frohman and Famous Players com
panies, under which the latter com
pany was to receive all the assets of
the trohman company. This deal in
volved the transfer of PA shares Of
the New York Theater Company in ex-
change for $500 shares OF the Famous
Players. 1t is alleged that Mr.. HAY
man voted these shares in favor Of the
sale of the New York Theater property.
If the sale is finally consummatcd. il
was said, the proceeds would be dis
lributed among the stockholders of the
New York Theater Company and the
corporation dissolved.