Business: Cinemerger

While cinema producers, distributors and exhibitors reported their accomplishments and plans (TIME, March 28) Elmer Pearson, vice president and general manager of Pathe Exchange Inc., conducted quiet pourparlers with President Elisha Walker of Blair & Co. (investment bankers who control the Pathe Co.); with General Manager John J. Murdock of B. F. Keith Corp. (vaudeville theatres), President Mark E. Heiman of Orpheum Circuit Inc. (vaudeville theatres) and Cinema Director Cecil B. De Mille (whose productions Producers Distributing Corp. have handled).

By last week these groups had agreed upon contracts for a 15-year tie-up of their interests. Pathe will make (in addition to its present newsreels and short length pictures) feature films. Director DeMille will turn over to the group his features already produced and new ones to come. Keith Corp. will supply the 50 theatres it controls, Orpheum Circuit its 47. And, to pay expansion expenses, Pathe will enlarge its capital, under Blair & Co.’s direction, from $4,000,000 to $10,000,000. Keith Manager Murdock will become President of Pathe Exchange Inc.