Evening star. [volume] (Washington, D.C.) 1854-1972, 1929-12-07
A. 7. & 7. AND BANK
TAKE FOX CONTROL
Theatrical Interests Jeopar-
died by Stock Market Crash
Despite Earnings.
Special Dispatch to The Star.

Special Dispatch to The Star.
NEW YORK. December THE
American Telephone & Telegraph Co.
and the banking firm of Halsey, Stuart
& Co. took over yesterday the control
of the affairs of william Fox, motion
picture producer and theater owner.
whose ambitious program of expansion
has been jeopardized by the stock mar
ket crash.
The American Telephone & Telegraph
Co. will be represented by John E.
Otterson, president of the Electrical
Research Products, Inc, subsidiary of
the Western Electric Co., which is con-
trolled by A. T. g. T. The telephone
company is interested because it con-
trolls about nine-tenthS Of the talking
picture equipment of the country, and
the Fox interests are its largest Gus
toners.
Fox One Of Three Trustees.
Halsey, Stuart & Co., the financial
hackers of the Fox companies, is rep
resented by H. L. Stuart. Mr.. Otterson,
Mr.. Stuart and William Fox himself
will act as three trustees, directing the
operations of the Fox Theater Corpora
ton and the Fox Film Corporation.
Charles Evans Hughes and his law firm
will represent the trustees.
This announcement was accompanied
by a statement to the effect that the
Fox companies we're earning money at
the rate of $33 ,000,000 a year, indicat-
ing a healthy and flourishing condition
of the two Fox corporations. in spite
of their difficulties in short-term
financing.
Last August Mr.. Fox. through the
Fox Theaters Corporation, bought the
controlling interest in Loew's Inc, an
operation said to have involved between
$40, 0O0,0 900 and $5o,000,000. This was
mont Theaters in England by the Fox
Film Corporation.
Faces Federal Action.
Since that time the Department of
Justice has started an action to compel
William Fox to sell his interest In
Loew's. 1t was reported that William
Randolph Hearst and Louis B. Mayer
were negotiating to buy the Loew's
stock held by Mr.. Fox. This rumor was
not discussed In yesterdays statement,
to try and hold the present Fox inter-
ests intact. The statement was as fol-
lows:
1.-THE board of directors of the Fox
Film Corporation has declared today
the usual quarterly dividends, payable
to stockholders of record as of Decem-
Der 81, 1929.
During the last year the Fox Thea
tiers Corporation purchased substantial
holdings in the stock Of Loew's, Inc.
The Fox Film Corporation has SINH
larly purchased stock of the Gaumont
TheaterS In England. Both purchases
were and are regarded as important
and valuable In connection with the de-
velopment of the business of the cor.
porations. 1t was contemplated that
the purchase of Loew stock would DE
but a step in the purchase Of the assets
Of that company. Temporary financial
purchases, and 1t was expected to
make permanent financial arrangements
promptly.
Hughes Is Counsel.
ITO facilitate the permanent financ-
ing at the earliest possible date and
the working out of a practical plan for
the acquisition of the assets Of Loew's.
Inc, William Fox, who owns the control
Of the voting stock of Fox Film and
Fox Theaters Corporations, has re-
quested Mr.. H. L. Stuart of Halsey,
Stuart & Co.; Mr.. John e. Otterson,
president of the Electrical Research
Products, Inc. "a subsidiary of the
Western Electric Coz and william Fox
to act as trustees and they have ac-
cepted. The trustees have retained to
assist them Charles z. Hughes and his
firm, Hughes, Schurman & Dwight.
IAN Of the properties involved in
these arrangements are in excellent
financial condition and are showing the
largest earnings in their respective his
tories. The combined current earnings
are at the rate Of approximately $33,-
600, 900 per annum. It is believed that