Part 54 (2/2)

Mr. John Edge

Mr. Laurence G. Ronsen

Mr. Oscar Floyd

Mr. Xavier Randolph

Directors absent: Mr. Mark Kessler

Mrs. Peter Kessler

Mr. Philippe X. Danvere

The meeting was called to order at 2.35 p.m. by the president. The minutes thereof were kept by Mr. Edge, who acted as secretary.

The following recommendations were placed before the board for approval: Renewal of lease on Albany Exchange building at same terms as previously held.

Approved.

Agreement with Local W-70, I.A.T.S.E., covering employment of studio technicians at salary scale agreed to by joint negotiating committee of all companies.

Approved.

Terms contract to be entered into with Marian St. Clair, artist, for her services for a period of seven years, with options in usual manner. First year's salary to be paid at the rate of $75 per week for forty weeks' guarantee. Right to terminate contract at end of each year of employment retained by company.

Approved.

Legal fees of $12,500 submitted to company by Dale, Cohen & Swift in connection with their preparation of corporation papers.

Payment Approved.

A general business discussion then ensued.

The president rose and gave his opinion as to the business prospects for the coming year. He reported that he was very optimistic about the immediate outlook for the company in the domestic market because they have increased their total sales contracts by six hundred in the past year and intend to garner at least one thousand contracts more in the coming year. He reported on his recent visit to Europe and said that at the present he finds the European market very unsettled because of the constant political disturbances on the Continent. He was very optimistic, however, about business in British Isles because of an agreement that had been made with Mr. Danvere regarding the distribution of Magnum pictures in that territory. He pointed out that a close working arrangement with Mr. Danvere had resulted in securing additional playing time in the largest circuits in England. He also indicated he was awaiting word almost momentarily from Mr. Danvere in connection with an advance against future film rentals to be earned in that territory amounting to $2 million, which would help their cash position immediately.

Mr. Ronsen then asked the president why the six pictures that were to be completed by this time were only one third ready for release.

The president replied that unforeseen production difficulties had arisen, but that they were in the process of being worked out and that he expected the balance of the program to be completed in short order.

Mr. Ronsen then presented to the board a cable he had just received from Mr. Danvere. A transcript of the cable follows at the request of Mr. Ronsen that it be read into the minutes.

Dear Mr. Ronsen, I am greatly disturbed at the product outlook for the Magnum company. In my last conversation with Mr. Kessler he a.s.sured me that six pictures would be available for showing in the theaters by Sept. 15th last, and to this time only two pictures have been made available, both late in October. I have just received a cable from Mr. Kessler requesting an advance of two million dollars as agreed upon. I should like you to notify Mr. Kessler that according to our existing agreement that said advance is still subject to approval by the board of directors of Marvin Theaters, Ltd. Despite personal desire to accommodate Mr. Kessler, board of Martin refuses to grant such advance until it has secured the six pictures promised. Signed Philippe X. Danvere.

The president then rose and said he was greatly disturbed by the news that the board of directors of Martin had rejected his request for an advance. He said that he had been informed by Mr. Danvere that said approval was merely a formality and had been a.s.sured that nothing would go wrong. He also said that he regretted that Mr. Danvere had not replied directly to his cable and that he felt if he were in the same position he too would be ashamed to communicate directly with him.

Mr. Ronsen then placed the following proposal before the meeting: That a committee be appointed to make a survey of the studio with a view toward finding out what was wrong with our present method of operation and why pictures could not be delivered according to schedule.

The president said the motion was improper and could not be put before the meeting unless there were sufficient grounds for such an action. He maintained there were not sufficient grounds.

Mr. Ronsen then asked the board to decide if the motion was in order. A vote was then taken and the motion was placed before the meeting.

The foregoing motion was then carried by a vote of three to two.

Mr. Ronsen then requested that the vote be recorded in the minutes.

For the motion: Mr. Ronsen

Mr. Floyd

Mr. Randolph

Against the motion: Mr. Kessler

Mr. Edge

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