The Man Who Made the Movies
Page 119
564 One morning at . . . their way over: Ibid.
564 He left . . . Stuarts arrive: Ibid., 408.
564 Baruch didn’t take any: Ibid.
564 “I felt I was drowning”: Ibid., 200.
564 “most important step of my life”: William Fox to John D. Rockefeller Jr., Nov. 12, 1929, 3, US-MSS.
564 “a great privilege and honor”: Ibid.
564 spent several thousand dollars: Transcript, 202.
564 dedicate the Peking Union Medical College: “Rockefeller Trip to China,” NYT, July 31, 1921, 3.
564 private screening . . . own copy of the film: Transcript, 202. Later, with Rockefeller Jr.’s permission, Fox used scenes from the trip in the Fox newsreel.
565 “Metropolitan Square”: “Rockefeller Closes Huge Deal,” NYT, Jan. 23, 1929, 1, 13.
565 offered to pay $1.45 million: Transcript, 368.
565 more than halfway down the block: “Rockefeller Buys Last Lots for Site,” NYT, Dec. 9, 1932, 23.
565 to sell at any price: Transcript, 369.
565 to build his own office tower there: Ibid.
565 to accept the $1.45 million: Ibid.
565 part of his financing had fallen through: Daniel Okrent, Great Fortune: The Epic of Rockefeller Center (New York: Viking, 2003), 68.
565 to pay only $800,000: Transcript, 369.
565 for only $300,000: “Wm. Fox’s Profit of $500,000,” Variety, Dec. 13, 1932, 7.
565 he declined: Transcript, 369.
565 “Your letter of November 12th”: John D. Rockefeller Jr. to William Fox, Nov. 18, 1929, copy attached to William Fox to Upton Sinclair, June 13, 1932, US-MSS.
565 “Under these circumstances”: Ibid.
565 “very prompt response”: William Fox to John D. Rockefeller, Nov. 22, 1929, US-MSS.
565 “your splendid counsel”: Ibid.
565 referring Fox to . . . Aldrich: Transcript, 292.
566 the bank’s “no” man: Ibid.
566 half interest: Ibid., 282.
566 price as ten times annual earnings: William Fox testimony, SEPH, Part 8, at 3742.
566 $27.5 million: Transcript, 282.
566 new co-owner guarantee: Ibid., 280.
566 “happy to sell”: Ibid., 281.
566 “just one of the many children”: Ibid.
566 intended to build the studio up: Ibid., 685.
566 “as water comes from a faucet”: Ibid., 684.
566 half its capital and surplus: Albert M. Greenfield testimony, Trial Transcript, Sept. 16, 1932, at 211, Alfred C. Blumenthal vs. Albert M. Greenfield, et al., No. 6749 in Equity, in the District Court of the United States for the Eastern District of Pennsylvania. NARA-PHL.
566 all of West Coast: Transcript, 283.
566 “fell into a trap”: Ibid., 282.
567 “prove our friendship”: Ibid.
567 buy West Coast Theaters: Ibid.
567 “be luckier than I was”: Ibid.
567 string Fox along: Ibid., 283.
567 forgo a commission: Ibid.
567 only they were serious buyers: Ibid.
567 both withdrew: Ibid.
567 suppress . . . ensure the destruction: Ibid., 397–98.
567 “too stupid”: Ibid., 397.
567 “everybody is planning to destroy you”: Ibid., 398.
567 personal loan of $2.5 million: Ibid.
567 “misconceived the attitude”: Ibid.
567 “I reached for his hat and coat”: Ibid.
568 “You were right”: Ibid.
568 “I want you to go back”: Ibid., 398–99.
568 “the people of this country”: Ibid., 398.
568 “The day will come”: Ibid., 399.
568 “That was the last thing I wanted”: Ibid., 474.
568 “forget my ambition”: Ibid.
568 dropped to about $24 million: Ibid.
568 Only a company that wanted . . . $73 million: Ibid., 475.
568 only Warner Bros. and Paramount: Ibid.
568 before the stock market crash . . . to acquire Warner Bros.: Ibid., 476.
568 contingent on Justice Department approval: Ibid., 475, 477.
569 Otto Kahn . . . not raise enough money: Ibid., 476–77.
569 “At this time Warners had . . . wanted these shares”: Ibid.
569 under orders from AT&T: Ibid., 476.
569 also have pressured Goldman Sachs: Ibid., 477.
569 Hearst and Louis B. Mayer: “Fox Silent on Reported Loew Deal,” FD, Dec. 2, 1929, 1; “Fox Vests Control of His Vast Holdings in Trustees’ Board,”NYT, Dec. 7, 1929, 16.
569 lost $3.3 million on 210,300 shares: William A. Gray statements, SEPH, Part 3, at 897, 985–86, and 1088.
569 adopt a resolution ratifying: William Fox interview with William A. Gray, June 15, 1932, Part 2, 15, US-MSS.
569 None of the records: Ibid., 15–16; George K. Watson statement, SEPH, Part 3, at 1087.
569 1929 personal income tax: William A. Gray statement, SEPH, Part 3, at 897 and 986–87.
569 on the day they’d learned: Transcript, 283.
569 demanded power of attorney to run: William Fox testimony, SEPH, Part 8, at 3708.
570 considered the companies effectively bankrupt: Ibid.
570 ten-minute tirade . . . went to sleep: Transcript 284.
570 he reconsidered: Transcript, 284.
570 he sent for Stuart: William Fox testimony, SEPH, Part 8, at 3709.
570 the voting trust would end: William Fox testimony, SEPH, Part 8, at 3710.
570 “really sounded wonderful”: Ibid.
570 November 24 at the University Club: Transcript, 285.
570 make any changes . . . advisable: Ibid., 286.
570 New boards of directors: Transcript, 286.
570 in charge at the option: Ibid., 287.
570 no time limit: Ibid., 286.
570 “May ask for more”: Ibid., 287.
570 “both to go to hell”: Ibid.
570 “a fool’s paradise”: Ibid., 273.
570 “Well, now, boy, wait”: William Fox testimony, SEPH, Part 8, at 3700.
570 hired Joseph N. Hartfield: William Fox to Upton Sinclair, July 8, 1932, 1, US-MSS.
570 imitating Sarah Bernhardt’s acting poses: Transcript, 739.
570 considered a genius: Ibid., 287.
570 “Nothing that” . . . “banker’s lawyer”: William Fox testimony, SEPH, Part 8, at 3701.
570 promised him $1 million: Transcript, 288.
570 “Did a well-known Wall Street”: Ibid.
570 a “big man”: William Fox testimony, SEPH, Part 8, at 3711.
571 “looks like God”: Charles Evans Hughes, The Autobiographical Notes of Charles Evans Hughes, edited by David J. Danelski and Joseph S. Tulchin (Cambridge, MA: Harvard University Press, 1973), xxviii.
571 morning of Monday, November 25, 1929: William Fox to Upton Sinclair, July 8, 1932, 1, US-MSS.
571 breakdown two years before: Hughes, The Autobiographical Notes of Charles Evans Hughes, 287, 289.
571 $400,000 . . . declined significantly: Merlo J. Pusey, draft of “Charles Evans Hughes,” 1044. CEHP, Biographical File, 1906–1951, LOC, Manuscript Division.
571 no longer accept: Ibid.
571 more than three hours: Transcript, 290.
571 only two hours every night: Ibid., 291; William Fox testimony, SEPH, Part 8, at 3711.
571 “I can’t think”: Transcript, 291.
571 he would do the thinking: Ibid.
571 ended in the early afternoon: William Fox to Upton Sinclair, July 8, 1932, 1, US-MSS.
571 “a grip of friendship”: Transcript, 290.
571 hired Hughes that day: William Fox to Upton Sinclair, July 8, 1932, 1, US-MSS.
571 slept for forty-eight hours: Transcript, 294.
571 antitrust lawsuit: “Fox and Warners Are Sued As Trusts; Dissolution Sought,” NYT, Nov. 28, 1929, 1.
571 violation of the Clayton Act: Ibid.
572 divest themselves of all: John Harlan Amen statement, 1, USA v. Fox Theatres, Fox Film, and William Fox, in Equity 51-122, United States District Court, Southern District of New York. NARA-NYC.
572 40 percent of U.S. film production: “Big Movie Companies In Anti-Trust Suits,” Atlanta Constitution, Nov. 28, 1929, 6.
572 dated two days earlier: Upton Sinclair to William Fox, June 8, 1932, US-MSS.
572 “seemed mystified”: Transcript, 291.
572 Hughes urged Fox to go along: William Fox testimony, SEPH, Part 8, at 3712.
572 objectionable terms could be eliminated: Transcript, 291.
572 “He told me he knew the telephone company”: William Fox testimony, SEPH, Part 8, at 3712.
572 “I trust myself entirely”: Transcript, 292–93.
572 bear raid . . . December 2: William Fox to Upton Sinclair, July 8, 1932, 2, US-MSS.; William Fox testimony, SEPH, Part 8, at 3716.
572 Major investors . . . wipe out the 35 percent margin: William Fox testimony, SEPH, Part 8, at 3716.
572 brokers would sell all: Ibid.
572 That Friday evening: Transcript, 304.
572 Clarke, who was in Chicago: William Fox testimony, SEPH, Part 8, at 3717.
572 sent Will H. Hays to see Fox: Transcript, 307; William Fox testimony, SEPH, Part 8, at 3715.
572 how much he wanted . . . voting shares: Ibid.
572 price to Clarke of $100 million: Transcript, 307.
572 would accept $33¹/³ million: Ibid.; William Fox testimony, SEPH, Part 8, at 3715.
573 Clarke phoned to accept: William Fox testimony, SEPH, Part 8, at 3716.
573 at least $6 million by Monday morning: Ibid., 3717.
573 nothing left of the Fox companies: Ibid., 3716–17.
573 send a Chase Bank representative . . . $6.5 million: Transcript, 308.
573 he changed his mind . . . 9:15 a.m. on Monday: Ibid.
573 At the urging of . . . Greenfield: Albert M. Greenfield testimony, Blumenthal v. Greenfield, Sept. 16, 1932, 209. Alfred C. Blumenthal vs. Albert M. Greenfield, et al., in the District Court of the United States for the Eastern District of Pennsylvania. NARA-PHL.
573 more than $5 million . . . raw film: Transcript, 303; William Fox testimony, SEPH, Part 8, at 3716.
573 Fox explained . . . to George Eastman: Albert M. Greenfield testimony, Blumenthal v. Greenfield, Sept. 16, 1932, 208. Alfred C. Blumenthal vs. Albert M. Greenfield, et al., in the District Court of the United States for the Eastern District of Pennsylvania. NARA-PHL
573 seventy-five-year-old founder: Eastman was born on July 12, 1854.
573 remained chairman of the board: “Eastman Kills Self With Gun at Rochester,” Poughkeepsie Eagle-News, Mar. 15, 1932, 1.
573 Fraught with anxiety: William Fox testimony, SEPH, Part 8, at 3717.
573 At 9:50 a.m. . . . Ambassador Hotel: Ibid.
573 Neither had Eastman Kodak: Ibid.
573 “You watch that damn clock”: Ibid.
573 At 9:56 the phone rang: Ibid.
573 special board meeting that morning: Murry C. Becker statement, SEPH, Part 8, at 3717.
573 deposited $6.3 million: Fox Theatres to Bankers Trust Company, Dec. 2, 1929, attached to William Fox to Upton Sinclair, July 8, 1932, US-MSS; William Fox testimony, SEPH, Part 8, at 3717–18.
573 no conditions to the loan: Transcript, 313.
573 “Every proof that an atheist”: William Fox testimony, SEPH, Part 8, at 3717.
573 half a dozen Fox employees . . . paid in full: Transcript, 310; William Fox testimony, SEPH, Part 8, at 3718.
573 exclusive five-year contract: Transcript, 313.
574 bear raid . . . didn’t take place: William Fox testimony, SEPH, Part 8, at 3718.
574 Albert H. Wiggin and Matthew C. Brush: William Fox interview with William Gray, June 8, 1930, 24, US-MSS. Fox later decided that Brush hadn’t been involved in the aborted raid on the Loew’s shares (William Fox to Upton Sinclair, July 8, 1932, 2, US-MSS).
574 prominent stock market operator: Ferdinand Pecora statement, SEPH, Part 8, at 3760.
574 At 10:30 a.m.: William Fox testimony, SEPH, Part 8, at 3718.
574 Clarke apologized: Ibid.
574 buy Fox’s voting shares . . . $33¹/³ million: Ibid.
574 “just a little bit of crookedness”: Ibid.
574 sell to Clarke’s nominee all 660,900: Ibid.
574 had paid $73 million: Ibid., 3719.
574 wind up in prison: Ibid., 3718.
574 “And, by the way”: Ibid., 3719.
574 “This is ridiculous”: Ibid.
575 reconstitute the board of directors: Transcript, 351–52. This was not put into writing.
575 Did Fox want Hughes: Transcript, 293.
575 “whichever he thought was the best”: Ibid.
575 Hughes insisted that Fox: Ibid.
575 Hughes represent the trusteeship: Ibid., 294.
575 “were going to be the kind gentlemen” . . . guiding hand: Ibid., 293–94.
575 signed it on December 5: William Fox to Upton Sinclair, July 8, 1932, 1, US-MSS.
575 consistent with December 3: Transcript, 227, 344, 351; “Shipping and Mails,” NYT, Dec. 4, 1929, 62; “List of U.S. Citizens,” S.S. Majestic, arriving New York Dec. 3, 1929. www. ancestry.com; William Fox to Upton Sinclair, July 8, 1932, 1, US-MSS.
575 Sheehan, who had just returned: Transcript, 227; “Shipping and Mails,” 62; “List of U.S. Citizens,” S.S. Majestic, arriving New York Dec. 3, 1929. www. ancestry.com.
575 around 7:30 p.m.: “Trustees Planned to Keep Fox Assets Intact, Sheehan States in Affidavit,” MPN, Mar. 30, 1930, 41.
575 lasted until 4:00 a.m.: “Sheehan’s Declaration,” Variety, Mar. 26, 1930, 6.
575 “very happy” . . . “entire business career”: “Trustees Planned to Keep Fox Assets Intact, Sheehan States in Affidavit,” 41.
575 first meeting . . . AT&T headquarters: Transcript, 343.
575 shuffling Fox into a chair . . . suggest that Otterson: William Fox testimony, SEPH, Part 8, at 3713.
575 “Wait a minute” . . . “act as that”: Ibid.
575 fell fast asleep: Ibid.
575 $490,000 . . . support the margined stock: Ibid., 3714.
576 hadn’t told anyone . . . personal property: Ibid.
576 $3 million . . . mostly Fox Theatres and Fox Film stock: William Fox to Upton Sinclair, July 8, 1932, US-MSS.
576 out of his brokers’ hands: Transcript, 347.
576 persuaded Isidor Ostrer . . . at least six months: Ibid., 390.
576 arranged for eleven banks: William Fox testimony, SEPH, Part 8, at 3731.
576 not to call in their loans until: Halsey, Stuart & Co. to the Stockholders, Fox Film Corporation and Fox Theatres Corporation, Mar. 24, 1930, 11, HTC.
568 $6.5 million worth . . . cashing in four: William Fox to Upton Sinclair, 8 July 1932, 1. US-MSS.
576 Warners redeemed the notes at par: Transcript, 278.
576 pledged that when they reorganized: Ibid., 352.
576 name four of the eight directors: Ibid., 351.
576 himself, Jack Leo . . . King: Ibid., 352.
577 Leo was too close to Fox: Ibid., 351–52.
577 “what was to prevent them”: Ibid., 352.
577 didn’t guarantee . . . remain president: Exhibit A, 32, 35, William Fox v. H. L. Stuart, John E. Otterson, et al., in Equity 52-170, 1930. United States District Court, Southern District of New York. NARA-NYC.
577 “a terrific mistake”: Ibid., 355.
577 “earned by the sweat of my brow”: Ibid.
577 temperature of 103.5: Ibid., 352.
577 “understood to be leaving” . . . Fox-Case: “Jack Leo Is Reported Leaving Fox Companies,” FD, Dec. 9, 1929, 1.
577 Otterson, Stuart, and Sheehan were preparing to reorganize: Transcript, 352.
577 Franklin, who earned $50,000 a year: William Fox testimony, SEPH, Part 8, at 3732.
577 $150,000 a year, plus ten percent of net profits: Transcript, 352; William Fox testimony, SEPH, Part 8, at 3732.
577 no salary . . . no reimbursement for personal expenses: Transcript, 352–53.
577 December 12 . . . summoned Sheehan: “Fox Repudiates Trusteeship, Alleging ‘Giant Conspiracy to Ruin and Rob Him’,” MPN, Mar. 29, 1930, 42.
578 peerless leader: “We the Undersigned,” attached to William Fox to the Stockholders of Fox Film Corporation and Fox Theatres Corporation, Apr. 8, 1930, in “Answer of William Fox to ‘Open Letter’ of Halsey, Stuart & Co. of Mar. 24, 1930 and to Statement and Affidavit of Winfield R. Sheehan,” HTC.
578 “who is going to stand by”: Transcript, 356.
578 wasn’t practical right now: Ibid.
578 “This is the first time”: Ibid.
578 Sheehan refused: Ibid., 357.
578 at least to remain loyal . . . mislead him: “Answer to Sheehan Affidavit,” in “Answer of William Fox to ‘Open Letter’ of Halsey, Stuart & Co. of Mar. 24, 1930 and to Statement and Affidavit of Winfield R. Sheehan,” 21, HTC.
578 “To this statement”: Ibid., 21–22.
578 “complete control”: “Loew’s Stays Under Fox Wing; Fox Again Heads Film, Theatre Companies,” MPN, Dec. 14, 1929, 15.
578 “working hand in hand”: “Hollywood Hints At Many Changes,” MPN, Dec. 14, 1929, 15.
578 “It is their intention”: “Answer to Sheehan Affidavit,” in “Answer of William Fox to ‘Open Letter’ of Halsey, Stuart & Co. of Mar. 24, 1930 and to Statement and Affidavit of Winfield R. Sheehan,” 20, HTC.
578 Franklin replace Fox . . . heap on him: Ibid.
578 “definitely decided”: “Fox Trustees Plan a Holding Company,” NYT, Dec. 16, 1929, 1.
578 form a holding company to take over: Ibid.
578 for only $2.7 million: Transcript, 363.
578 “convinced me beyond the shadow”: Ibid., 362.
579 voting trust was over: Ibid., 370.
579 on December 17, 1929: William Fox to the Stockholders of Fox Film Corporation and Fox Theatres Corporation, Apr. 8, 1930, in “Answer of William Fox to ‘Open Letter’ of Halsey, Stuart & Co. of Mar. 24, 1930 and to Statement and Affidavit of Winfield R. Sheehan,” 12, HTC.
579 “I didn’t know how”: Transcript, 255.
579 entirely controlled the appointment: Complaint, 4. William Fox vs. H. L. Stuart, John E. Otterson, et al., in Equity 52-170, 1930. United States District Court, Southern District of New York. NARA-NYC.
579 only Fox could appoint: Ibid.