Johnny hesitated. He didn't want to do it, but he saw no other way out. "How about my ten-percent stock interest in the company?" he suggested.

Vic's pulses suddenly began to race strangely. Ownership was the one thing these people did not hock. They would trade stars, directors, contracts. Some of them he knew would even hock their wives if they had to, but never their proprietary rights. Johnny must be in a desperate situation to come to this. Johnny's interest in Magnum was worth a million dollars at current market values. It was good security for a loan of seventy-five percent of its value. "I couldn't make you a long-term loan on that, Johnny," he said carefully. "The market is too erratic. But I could give you three quarters of its value for a three-month note."

Johnny looked at him. Seven hundred and fifty thousand was better than nothing. Besides, if things went right he would have a chance of getting the money back by that time. The air rushed out of his lungs suddenly. He had unconsciously been holding his breath while he thought. "All right, Vic," he agreed. "How soon can I get the money?"

Vic smiled at him. "As soon as you deliver the stock to us here," he answered.

Johnny got out of his chair and stood looking down at him. "You'll have the stock here tomorrow," he said.

Vic rose to his feet. "Good," he nodded. "Then it's settled." He held out his hand.

Johnny shook it. "Thanks, Vic," he said expressionlessly.

Vic smiled at him. "Glad to be of help, Johnny."

Johnny's eyes glanced at him quickly. Vic's face was imperturbable. "So long, Vic," he said, turning and walking to the door.

"So long, Johnny," Vic called after him. A smile of satisfaction crossed his face as he watched Johnny go out the door. He looked down at his desk for a moment, frowning in thought. He would have to find out what was happening over at Magnum.

He walked over to the window that overlooked the main floor of the bank. Johnny was making his way through the crowds to the entrance. He disappeared through it and Vic went over to the other window, which looked out on the street.

Johnny was getting into an automobile that had been parked outside the door. It was a convertible coupe and the top was down. There was a girl sitting inside it. She had dark hair. Vic caught a glimpse of her face as she turned toward Johnny when he got into the car. It was Doris Kessler. He watched the car turn into the traffic and out of sight around the corner.

He went back to his desk and sat down heavily. The smile of satisfaction came back to his lips. Maybe Santos wouldn't think so much of Johnny when he told him of what had happened.

Mark sat behind his desk. A resentment was burning inside him. Resentment toward Johnny, toward Doris, toward what they were saying. They were only trying to help him, they had said. Baloney! They just wanted to get him under their thumb. But an inner voice kept telling him they were right. He had gone too far out on the limb with that one picture.

Maybe he had, but when the picture was finished he would make them all look sick. They would see then who had been right. He looked up at Johnny. "Yes, Johnny," he said, inwardly ashamed of himself for caviling at him. "I understand."

Johnny looked down at him, his face set in hard frozen lines. His eyes were cold as ice. "Make sure that you do," he said in clipped, emphatic tones. "I'm not doing this for your sake alone. Your father's heart would break if he ever found out what had happened. Now, here's what we tell him when he gets back. We have to agree on the story."

Mark didn't answer. He continued to look sullenly at Johnny.

"We'll tell him that I liked the picture so much I put up half the dough for it. It ran a little over budget and I agreed to split the difference with you and gave you first claim on it for that much. After that I collect even-Steve with you until the cost comes back." He looked questioningly at Doris. "Does that sound all right to you?" he asked.

She nodded. "It sounds all right."

Mark looked up at him. He could barely repress a smile. The d.a.m.n fool was playing right into his hands. With that story he would have no trouble in convincing his father that Johnny had caused all the trouble.

8.

The snow falling outside the window had covered the city with a white blanket that already was beginning to show signs of stain as the traffic in the streets churned it into a sloppy black. Johnny turned back from the window as Peter spoke.

"I can't understand why we haven't received any reply to our cable to Danvere yet," he said worriedly.

Johnny looked at his watch. "There's not much time left before the board meeting," he said.

Peter nodded. "I wanted the answer before the meeting started," he told Johnny. He shook his head. "I can't understand why he didn't advance us the money like he promised."

Johnny looked at him. The deal with Danvere had looked like a good thing at the time Peter made it. Peter had been optimistic. The air had been filled with promises. But since that time there had been nothing but trouble. Mark had loused up their production schedule. Only two pictures of the six that had been promised were ready and they were nothing to talk about. United We Stand was still a headache after eating up over two million dollars and it looked as though it would take a few hundred thousand more to complete it.

Business had been slow in addition to all that, and their bank balance had dwindled. The money that Peter had loaned the company under his agreement with Danvere had almost completely disappeared even with the additional money that Johnny had advanced. Now Peter had cabled Danvere asking him for the money that he had promised to advance them. More than four months had gone by and the money had not been forthcoming.

Johnny looked at his watch again and then back at Peter. "I guess the reply won't come before the meeting," he said. "We might as well get started now."

"Tell Janey to call me if the cable comes in while we're at the meeting," Peter said, taking his hat and coat from the rack.

November 12, 1936 Magnum Pictures Company, Inc.

New York City Minutes of Regular Meeting of Board of Directors on

November 12, 1936

Place of meeting: Waldorf Astoria Hotel, New York City Time: 2:30 p.m.

Directors present: Mr. Peter Kessler

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