The Man Who Made the Movies

by Vanda Krefft

  622 two bank presidents and . . . Bernard Baruch: “Bankers to Settle Fox Receivership,” New York Journal of Commerce, Jan. 28, 1930.

  622 new treasurer: Kuser family to Samuel Untermyer, Jan. 24, 1930, SDK-FFC.

  622 production and technology: Ibid.

  622 “hit and run plan”: James P. Maher, “Bitter Fight Develops on Financing Plan for Fox Film Enterprise,” New York American, Feb. 17, 1930.

  622 guaranteed a fee from Fox of $975,000: “Bancamerica Offer Goes to Fox Directors,” CDT, Apr. 2, 1930, 31.

  622 In mid-March 1930: Albert M. Greenfield testimony, Trial transcript, Sept. 16, 1932, 219. 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.

  622 If the price . . . consider selling: Ibid., 216.

  622 “You will find it is Harley Clarke”: Ibid., 219.

  623 Yes, Blumenthal admitted: Ibid.

  623 ought to make no difference . . . for the loss: Ibid.

  623 But it did matter: Ibid.

  623 healthy profits of the Fox companies . . . financial void: Transcript, 600.

  623 1929 earnings statement . . . $11.8 million: “Compromise Seen Between Opposing Fox Bank Groups,” FD, Mar. 9, 1930, 16.

  623 40 percent increase over 1928: “Fox Sales Increased 40 Per Cent Last Year,” FD, Mar. 7, 1930, 1.

  624 still had two years left: Transcript, 409.

  624 Mayer, Thalberg, and Rubin shared 20 percent: Ibid.

  624 “If these three men”: Ibid., 410.

  624 M-G-M triumvirate had no business . . . other studios: Ibid., 409.

  624 “they are surely not entitled”: Ibid., 410–11.

  624 That was what Charles M. Schwab . . . Riverside Drive mansion: Ibid., 409–410.

  624 refused to go through: Ibid., 411.

  625 strength had deteriorated: Ibid., 471.

  625 hire additional counsel: Ibid.

  625 director of either a bank or a telephone company: Ibid., 472.

  625 “you and your affairs”: David A. Brown to William Fox, Mar. 14, 1930, DABP.

  625 “Don’t forget, Will”: Ibid.

  625 two days later . . . dissolve the December 3, 1929, voting trust: “Fox Trustees Charge Bias to U.S. Judge,” New York Herald Tribune, Mar. 26, 1930.

  625 main roadblock: “Bankers to Settle Fox Receivership.”

  625 trusteeship was still valid: “Fox Film Groups Plan Long Fight,” New York World, Mar. 8, 1930.

  625 filed suit in federal court: “Fox Starts New Suit to Defeat Co-trustees,” NEN, Mar. 12, 1930.

  626 On March 13 . . . restrained Fox from proceeding: “Fox Trustees Counter with New Legal Suit,” CDT, Mar. 14, 1930, 22.

  626 One week later . . . April 7, 1930: “Fox Hearings Off Until April 7,” New York Morning Telegraph, Mar. 21, 1930, 1.

  626 contract with him would expire: William Fox testimony, SEPH, Part 8, at 3773.

  618 on that date, the annual meetings: “Fox Plan Put Up to Stockholders,” New York World, Feb. 14, 1930.

  626 replace a majority of the companies’ directors: “Fox Film Groups Plan.”

  626 depose Fox . . . Halsey, Stuart refinancing: “Stockholders Support Fox,” Evening Journal, Mar. 6, 1930.

  626 hired by AT&T to evaluate: FCC-ERPI, Part II, 494.

  626 ERPI’s in-house counsel George C. Pratt: “Fox Film Groups Plan Long Fight.”

  626 “would prefer the wreck” . . . “avoiding receivership”: FCC-ERPI, Part II, 494.

  627 “It is desirable”: Ibid.

  627 “virtually eliminate him”: Ibid.

  627 forwarded Greene’s letter to Otterson: Ibid., 495.

  627 turned down: Ibid., 486.

  627 would grant ERPI more favorable: Ibid., 495.

  627 $5 million one-year loan: Ibid., 486.

  628 sued Fox to restrain . . . voting trust: “Sheehan Says Fox Harming Own Interests,” MPN, Mar. 29, 1930, 44.

  628 press conference at the Savoy Plaza: “Sheehan Breaks With William Fox,” New York Morning Telegraph, Mar. 24, 1930, 1.

  628 “I deeply regret”: Ibid.

  628 “as if these enterprises were his own”: “Sheehan Sues Fox to Block Bancamerica Finance Plan,” New York World, Mar. 24, 1930.

  628 “jam his selfish plans”: Ibid.

  628 save the Fox companies $13–$31 million?: “Sheehan’s Declaration,” Variety, Mar. 26, 1930, 7.

  628 “side agreements” . . . Bancamerica-Blair bankers: “Sheehan Sues Fox to Block Bancamerica Finance Plan.”

  628 “obstructive,” isolated, unwilling to listen: “Sheehan’s Declaration,” 7.

  628 head of production in October 1925: Ibid., 5.

  628 “I was the responsible general manager”: Ibid.

  628 “I have a more intimate knowledge”: Ibid.

  628 In 1925 . . . $21.3 million: Ibid.

  628 For 1929 . . . $72 million: Ibid.

  629 earnest obligation”: “Sheehan Says Fox Harming Own Interests,” 44.

  629 “A determined jaw”: “The Insiders’ Outlook,” MPN, Apr. 26, 1930, 14.

  629 January 1928 acquisition . . . their theaters: “Answer of William Fox to ‘Open Letter’ of Halsey, Stuart & Co. of March 24, 1930 and to Statement and Affidavit of Winfield R. Sheehan,” 15–16. HTC.

  629 tremendous rise in income: Ibid., 29.

  629 “Power was his earthly god”: Edwin C. Hill, “Mr. Sheehan, Genius Extraordinary,” Chapter II, The American Weekly, Feb. 17, 1946, 20.

  629 brought to Fox News in 1922: Ibid.

  630 “I want to be the power”: Ibid.

  630 Sheehan had lost heavily . . . “from outward cheerfulness”: Ibid., 21.

  630 “had lifted him out”: Ibid.

  630 for the evening editions: “Goes into Court Against Wm. Fox,” Variety, Mar. 26, 1930, 5.

  630 “wreck this great enterprise”: “Fox Trustee Asks Coleman to Quit,” New York Evening Post, Mar. 25, 1930.

  630 “Mr. Sheehan . . . owes everything”: “Fox Attacks Sheehan Suit,” New York Telegram, Mar. 24, 1930, 1.

  630 offer of $33 million: “Court Holds Up Fox Case Action,” New York Sun, Mar. 24, 1930.

  630 “I want the stockholders”: “Fox Attacks Sheehan Suit,” 1.

  630 “treachery to me”: “Answer of William Fox to ‘Open Letter’ of Halsey, Stuart & Co. of Mar. 24, 1930 and to Statement and Affidavit of Winfield R. Sheehan,” 25, HTC.

  630 Out of “fondness”: Ibid.

  630 “never had anything to do”: Ibid., 14.

  630 taught him the job: Ibid., 15.

  630 other executives knew more: Ibid., 18.

  630 “far more” to its prosperity: Ibid., 17.

  630 “Vaulting ambition”: Ibid., 25.

  623 “selfish ambitions”: “An Open Letter by Halsey, Stuart & Co. and Statement and Affidavit of Winfield R. Sheehan,” 24. HTC.

  631 “placed in peril”: Ibid., 18.

  631 March 25 . . . filed an affidavit of prejudice: “Fox Trustee Asks Coleman to Quit.”

  631 asking the U.S. Circuit Court . . . receivership cases: “Bias Charge by Bankers,” New York Telegraph, Mar. 26, 1930, 1.

  631 highly unusual . . . past thirty years: “Judge Coleman Removed from Fox Cases,” New York Morning Telegraph, Mar. 28, 1930, 1.

  631 “personal bias and prejudice” . . . impartial hearing: “Fox Trustee Asks Coleman to Quit.”

  631 John C. Knox . . . in his place: “Judge Coleman Removed from Fox Cases,” 1.

  631 The next day . . . twelve questions: Ibid.; “New Judge Takes Over Fox Federal Court Cases,” FD, Mar. 28, 1930, 4.

  631 What were the secret side agreements: “Judge Coleman Removed from Fox Cases,” 1.

  631 “finest asset” . . . RKO: Ibid.

  631 back salary of $1 million: Ibid.

  631 “The old spirit that has built”: John F. Sinclair, “Rift in Fox Ranks Serious,” LAT, Mar
. 7, 1930, 16.

  632 “Mr. Fox will then again be surrounded”: “The Fox Mess,” HR, Mar. 29, 1930, 52.

  632 “when the men in the field”: Fox’s Appeal to You For Financial Aid,” HR, Feb. 8, 1930, 21.

  632 negotiations would begin: “Fox Directors Turn Down Plan,” Wall Street News, Feb. 19, 1930.

  632 eleven complaints . . . set “foot”: “Complaint of Janet Gaynor,” Feb. 28, 1930,” Box 8, Opinions and Memoranda, 1929–1930, 209–11. Edwin P. Kilroe Papers, LOC, Manuscript Division.

  632 did not get along with Sol Wurtzel: “Sheehan Tact to Heal Breach of Gaynor with Fox,” MPN, May 24, 1930, 77.

  633 During a visit . . . Sundheim: Transcript, 403.

  633 He considered them worthless: Ibid., 402.

  633 “There was a time during these sessions”: Ibid., 402–3.

  633 “Mrs. Fox was in the doorway”: Ibid., 403–4.

  633 swept his arm around the room: Ibid., 404.

  633 “Now, you know” . . . “strip this home”: Ibid.

  633 Again, Eva was listening: Ibid.

  633 “She again went into a frenzy”: Ibid.

  633 back to the eleven-dollar-a-month apartment: Ibid., 405.

  633 began on March 28, 1930: “Halsey-Stuart Win Fox Financing,” New York Morning Telegraph, Apr. 2, 1930, 1.

  633 “out of a clear sky”: William Fox testimony, SEPH, Part 8, at 3773.

  633 releasing him from his obligation: Ibid.; “Halsey-Stuart Win Fox Financing,” 1.

  633 “That made me”: William Fox testimony, SEPH, Part 8, at 3773.

  633 on Monday, March 31: Ibid., 3774.

  634 waiting outside for nearly an hour: Transcript, 488.

  634 “You do all the talking” . . . watch the reactions: Ibid.

  634 “As I came into the room”: Ibid.

  634 “like school boys in a contest”: Ibid, 489.

  634 He had no idea: Ibid.

  634 contract extension until June 15: Ibid.

  634 “There was dead silence”: Ibid.

  634 fifteen minutes answering . . . repeated his request: Ibid.

  634 A Lehman Brothers’ lawyer . . . another fifteen minutes: Ibid.

  634 “Not a sound out of”: Ibid.

  634 For the third time, Untermyer asked: Ibid.

  634 Swaine replied with another question: Ibid., 490.

  634 “I went over to Alvin Untermyer”: Ibid.

  635 “I wasn’t guarding”: Transcript, 552.

  635 grand jury indictment . . . criminal conspiracy: Ibid.

  635 “It wasn’t a secret”: Ibid.

  635 Seven major lawsuits . . . without parallel: “Litigation over Fox Properties Involves Seven Major Suits and Nineteen Lawyers,” NYT, Apr. 6, 1930, N9.

  635 Two days later . . . his mind: William Fox to Upton Sinclair, July 13, 1932, 1, US-MSS; Transcript, 491.

  635 he would sell his voting shares: William Fox to Upton Sinclair, July 13, 1932, 1, US-MSS.

  CHAPTER 45: THE END OF THE DREAM

  636 On April 2 . . . Fox sent for Greenfield to help prepare: Transcript, 491.

  636 Two days later . . . had the money: Albert M. Greenfield testimony, Trial transcript, Sept. 16, 1932, 224–25. 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.

  636 agreed to proceed right away: Ibid., 226.

  636 next sixty hours: Tom Pettey, “60 Hour Battle of Wills Before Fox Stepped Out,” CDT, Apr. 9, 1930, 27.

  636 at 10:00 a.m. on Saturday: Transcript, 491.

  636 move locations several times: Pettey, “60 Hour Battle of Wills Before Fox Stepped Out,” 27.

  636 out to dinner . . . Childs: Albert M. Greenfield testimony, Trial transcript, Sept. 16, 1932, 230. 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.

  636 only Untermyer . . . change clothes: Pettey, “60 Hour Battle of Wills Before Fox Stepped Out,” 27.

  636 “I have been in Mr. Fox’s office”: Courtland Smith testimony, Trial transcript, Sept. 16, 1932, 146. 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.

  636 “Fox must make his own”: Pettey, “60 Hour Battle of Wills Before Fox Stepped Out,” CDT, 27.

  636 “rather have his name”: Ibid.

  637 By 9:00 p.m. on Sunday . . . contract was finalized: Otto E. Koegel testimony, Trial transcript, Sept. 16, 1932, 154. 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.

  637 Clarke . . . signed the contract: Ibid., 154 and Albert M. Greenfield testimony in Ibid., 242.

  637 night train back to Chicago: Albert M. Greenfield testimony in Ibid., 242.

  637 Around 11:00 p.m.: Ibid.

  637 “until ten or fifteen minutes”: Transcript, 558.

  637 “I saw no haste”: Ibid., 561.

  637 shrugged . . . silently signed the contract: Pettey, “60 Hour Battle of Wills Before Fox Stepped Out,” 27.

  637 $15 million in cash: Plaintiff’s Exhibit No. 3, Trial transcript, Sept. 16, 1932, 59. 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.

  637 As compensation . . . 6 percent interest: Ibid., 75–76.

  637 remain on the board of directors: Ibid., 69.

  637 wanted to, chairman of the board: Albert M. Greenfield testimony, Trial transcript, Sept. 16, 1932, 228. 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.

  637 Clarke had come up with . . . advisory board: Ibid., 229.

  638 annual salary of $500,000: Plaintiff’s Exhibit No. 3, Trial transcript, Sept. 16, 1932, 70. 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.

  638 Tri-Ergon . . . royalty-free licenses: Ibid., 61.

  638 at least two years . . . Fox theaters: Ibid., 73.

  638 at least one year . . . “William Fox presents”: Ibid., 73–74.

  638 Clarke would pay all: Transcript, 557.

  638 had forced him to hire the lawyers: Ibid.

  638 produce content . . . “home talker”: “Too Much Consideration in Wm. Fox’s $500,000 Contract—Fox Co. Must Pay,” Variety, July 7, 1931, 4.

  638 To Jack Leo . . . Sol Wurtzel: Plaintiff’s Exhibit No. 3, Trial transcript, Sept. 16, 1932, 71–72. 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.

  638 required that Fox Film: Ibid., 71.

  638 bonus of $500,000: George K. Watson statement, SEPH, Part 3, at 1093.

  639 Fox had phoned Wurtzel . . . agreed: Transcript, 427.

  639 Wurtzel would return immediately: Ibid.

  639 “Sol Dear, your loyalty”: In William Fox oversize photo file, MHL.

  639 choose ten Fox employees . . . at salaries not less: Plaintiff’s Exhibit No. 3, Trial transcript, Sept. 16, 1932, 73. 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.

  639 receive his $1 million fee: Transcript, 557; W. B. Francis, “Fox Deals Disclosed,” LAT, Nov. 22, 1933, 1.

  639 make sure he got the money: Transcript, 557.

  639 $25 purchase price . . . ninety days: Plaintiff’s Exhibit No. 3, Trial transcript, Sept. 16, 1932, 72. 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.

  639 Fox had insisted: Jack G. Leo to Joel Swensen, Apr. 8, 1930, Fox Movietone News file, JSP.

  639 “moral obl
igation”: Plaintiff’s Exhibit No. 3, Blumenthal v. Greenfield transcript, Sept. 16, 1932, 72. 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.

  639 worth $11 each: “Financial,” FD, Apr. 8, 1930, 2.

  639 repurchase the same number of shares: Jack G. Leo to Joel Swensen, Apr. 8, 1930, Fox Movietone News file, JSP.

  639 “Mr. Fox is deeply appreciative”: Ibid.

  640 “I think it was most considerate”: Joel Swensen to Jack G. Leo, Apr. 11, 1930, Fox Movietone News file, JSP.

  640 “under conditions that Mr. Fox”: “Syndicate Headed by H. L. Clarke,” St. Louis Globe Democrat, Apr. 7, 1930.

  640 paid in full, with interest . . . ample working capital: “Fox Sells His Film Stock to Clarke Group,” CDT, Apr. 7, 1930, 29.

  640 “demonstrate the vision”: “Syndicate Headed by H. L. Clarke.”

  640 at Untermyer’s law offices . . . resigned: “Fox Out of Films; Clarke Named Head of Vast Enterprise,” NYT, Apr. 8, 1930, 1.

  640 temporary board: “Halsey, Stuart to Refinance Fox Interests,” Chicago Journal of Commerce, Apr. 8, 1930.

  641 “considerably ahead” . . . fundamental financial soundness: “Fox Out of Films; Clarke Named Head of Vast Enterprise,” 18.

  641 shot up 95/8 . . . end the day at 48: Ibid.

  641 rebounded, with heavy trading: Ibid.

  641 closing price of $11: Ibid.

  641 a high point for 1930: “Curb Market Review,” WP, Apr. 8, 1930, 17.

  641 “Clarke is friendly”: FCC-ERPI, Part II, 495.

  641 “I was forced . . . under duress”: William Fox testimony, SEPH, Part 8, at 3653.

  641 “I had not any choice”: Ibid.

  641 “I did not want to see”: Ibid.

  641 “There was one thing that I felt certain”: Transcript, 498–99.

  CHAPTER 46: SORROW AND RAGE

  645 “My reputation and everything”: 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,” 4, HTC.

  645 he wept: Victor Mansfield Shapiro oral history, Feb. 2, 1967, 429. Folder 9, Box 7, VMSP.

  645 restrain him physically from jumping out: Ibid.