Editing Paramount Pictures (section)

===1920s and 1931–40: Receivership and reorganization===
[[File:Paramount Showman's Pictures advertisement 04.jpg|thumb|Paramount Showman's Pictures advertisement, 1925]]
Eventually, Zukor shed most of his early partners; the Frohman brothers, Hodkinson and Goldwyn were out by 1917 while Lasky hung on until 1932, when, blamed for the near-collapse of Paramount in the [[Great Depression]] years, he was also tossed out. In 1931, to solve the financial problems of the company Zukor hired taxi/rental car magnate [[John D. Hertz]] as chairman of the finance committee in order to assist vice-president and [[treasurer]] Ralph A. Kohn.<ref>{{cite news |title=HERTZ AND WRIGLEY TO JOIN PARAMOUNT; Lasker Also to Become a Director of the Movie Corporation, Zukor Announces.TO BE NO REORGANIZATION Yellow Cab, Chewing Gum and Advertising Officials Buy Heavily, Into the Company. Invited to Join Board, Says Zukor. |url=https://www.nytimes.com/1931/10/31/archives/hertz-and-wrigley-to-join-paramount-lasker-also-to-become-a.html |access-date=January 21, 2022 |work=The New York Times |date=October 31, 1931 |page=25 |language=en-US |archive-date=January 21, 2022 |archive-url=https://web.archive.org/web/20220121204711/https://www.nytimes.com/1931/10/31/archives/hertz-and-wrigley-to-join-paramount-lasker-also-to-become-a.html |url-status=live }}</ref> However, on January 6, 1933, Hertz resigned from his position when it become evident that his measures to lift the company had failed.<ref>{{cite news |title=J.D. HERTZ QUITS PARAMOUNT PUBLIX; Finance Chairman Asserts Differences Arose as to His Duties. PRAISE FOR HIS SERVICES Corporation and Kuhn, Loeb & Co., Its Bankers, Voice Regret That He Is Leaving. |url=https://www.nytimes.com/1933/01/07/archives/jd-hertz-quits-paramount-publix-finance-chairman-asserts.html |access-date=January 21, 2022 |work=The New York Times |date=January 7, 1933 |page=21 |language=en-US |archive-date=January 21, 2022 |archive-url=https://web.archive.org/web/20220121204716/https://www.nytimes.com/1933/01/07/archives/jd-hertz-quits-paramount-publix-finance-chairman-asserts.html |url-status=live }}</ref> The over-expansion and use of overvalued Paramount stock for purchases created a $21 million debt which led the company into receivership on January 26, 1933,<ref>{{cite news |title=PARAMOUNT-PUBLIX PUT IN RECEIVERSHIP; Court Acts on Donovan Plea – $29,166 Claim Listed Against $166,000,000 Assets. BOARD DENIES INSOLVENCY Film Concern to Continue Its Business – Publix Enterprises Goes Into Bankruptcy. PARAMOUNT-PUBLIX IS IN RECEIVERSHIP |url=https://www.nytimes.com/1933/01/27/archives/paramountpublix-put-in-receivership-court-acts-on-donovan-plea.html |access-date=January 21, 2022 |work=The New York Times |date=January 27, 1933 |page=1 |language=en-US |archive-date=January 21, 2022 |archive-url=https://web.archive.org/web/20220121134558/https://www.nytimes.com/1933/01/27/archives/paramountpublix-put-in-receivership-court-acts-on-donovan-plea.html |url-status=live }}</ref> and later filing bankruptcy on March 14, 1933.<ref>{{cite news |title=PARAMOUNT PUBLIX FILES AS BANKRUPT; Petition in Federal Court Is Entered With the Consent of Present Equity Receivers. HEARING SET FOR FRIDAY Attorney for the Minority Bondholders Charges Collusion in Previous Action. |url=https://www.nytimes.com/1933/03/15/archives/paramount-publix-files-as-bankrupt-petition-in-federal-court-is.html |access-date=January 21, 2022 |work=The New York Times |date=March 15, 1933 |page=21 |language=en-US |archive-date=January 21, 2022 |archive-url=https://web.archive.org/web/20220121134601/https://www.nytimes.com/1933/03/15/archives/paramount-publix-files-as-bankrupt-petition-in-federal-court-is.html |url-status=live }}</ref> On April 17, 1933, bankruptcy trustees were appointed and Zukor lost control of the company.<ref>{{cite book |title=Congressional Record – Senate |date=February 24, 1936 |publisher=U.S. Government Printing Office |location=Washington, D.C. |page=2670 |url=https://books.google.com/books?id=c4CGNcmu6TkC&dq=adolph+zukor+resign+1933+trustees&pg=PA2670 |access-date=January 21, 2022 |language=en-US |archive-date=March 19, 2022 |archive-url=https://web.archive.org/web/20220319083258/https://books.google.com/books?id=c4CGNcmu6TkC&dq=adolph+zukor+resign+1933+trustees&pg=PA2670 |url-status=live }}</ref><ref>{{cite news |title=PARAMOUNT PUBLIX CASE.; Corporation Must Defend Tomorrow Election of Trustees. |url=https://www.nytimes.com/1933/04/25/archives/paramount-publix-case-corporation-must-defend-tomorrow-election-of.html |access-date=January 21, 2022 |work=The New York Times |date=April 25, 1933 |page=27 |language=en-US |archive-date=January 21, 2022 |archive-url=https://web.archive.org/web/20220121212125/https://www.nytimes.com/1933/04/25/archives/paramount-publix-case-corporation-must-defend-tomorrow-election-of.html |url-status=live }}</ref> The company remained under the control of trustees for more than a year in order to restructure the debt and pursue a reorganization plan.<ref>{{cite news |title=Paramount Trustees Make Application To Proceed With Reorganization Plan |url=https://www.nytimes.com/1934/08/03/archives/paramount-trustees-make-application-to-proceed-with-reorganization.html |access-date=January 21, 2022 |work=The New York Times |date=August 3, 1934 |page=25 |language=en-US |archive-date=January 21, 2022 |archive-url=https://web.archive.org/web/20220121212123/https://www.nytimes.com/1934/08/03/archives/paramount-trustees-make-application-to-proceed-with-reorganization.html |url-status=live }}</ref> On December 3, 1934, the reorganization plan was formally proposed.<ref>{{cite news |title=PARAMOUNT PUBLIX UNITS.; $4,530,000 Earnings for 9 Months Estimated in Court Report. |url=https://www.nytimes.com/1934/12/05/archives/paramount-publix-units-4530000-earnings-for-9-months-estimated-in.html |access-date=January 21, 2022 |work=The New York Times |date=December 5, 1934 |page=42 |language=en-US |archive-date=January 21, 2022 |archive-url=https://web.archive.org/web/20220121135749/https://www.nytimes.com/1934/12/05/archives/paramount-publix-units-4530000-earnings-for-9-months-estimated-in.html |url-status=live }}</ref> After prolonged hearings in court, final confirmation was obtained on April 25, 1935, when Federal Judge [[Alfred Conkling Coxe Jr.|Alfred C. Coxe Jr.]] approved the reorganization of the Paramount-Publix Corporation under Section 77-B of the [[Bankruptcy Act]].<ref>{{cite news |title=PARAMOUNT PUBLIX WINS LEGAL MOVE; Show-Cause Order Is Granted, Indicating Court's Approval of Reorganization Plan. BANK INTEREST CUT TO 5% Loans to Be Paid in Cash, While Other Creditors Accept One-half in Debentures. |url=https://www.nytimes.com/1935/02/01/archives/paramount-publix-wins-legal-move-showcause-order-is-granted.html |access-date=January 21, 2022 |work=The New York Times |date=February 1, 1935 |page=29 |language=en-US |archive-date=January 21, 2022 |archive-url=https://web.archive.org/web/20220121134559/https://www.nytimes.com/1935/02/01/archives/paramount-publix-wins-legal-move-showcause-order-is-granted.html |url-status=live }}</ref><ref>{{cite news |title=PARAMOUNT PUBLIX READY TO REORGANIZE; Judge Coxe Approves Atlas Plan for Underwriting Subscriptions to Warrants. |url=https://www.nytimes.com/1935/04/26/archives/paramount-publix-ready-to-reorganize-judge-coxe-approves-atlas-plan.html |access-date=January 21, 2022 |work=The New York Times |date=April 26, 1935 |page=33 |language=en-US |archive-date=January 21, 2022 |archive-url=https://web.archive.org/web/20220121194730/https://www.nytimes.com/1935/04/26/archives/paramount-publix-ready-to-reorganize-judge-coxe-approves-atlas-plan.html |url-status=live }}</ref>

On June 4, 1935, [[John E. Otterson]]<ref>Eileen S. Quigley. ''International Motion Picture Almanac'', 1938. p. 581.</ref> became president of the re-emerged and newly renamed '''Paramount Pictures Inc.'''<ref>{{cite news |title=PARAMOUNT BOARD ELECTS OTTERSON; Head of the Electric Research Products Made President of New Company. |url=https://www.nytimes.com/1935/06/05/archives/paramount-board-elects-otterson-head-of-the-electric-research.html |access-date=January 9, 2022 |work=The New York Times |date=June 5, 1935 |page=29 |language=en-US |archive-date=January 9, 2022 |archive-url=https://web.archive.org/web/20220109224044/https://www.nytimes.com/1935/06/05/archives/paramount-board-elects-otterson-head-of-the-electric-research.html |url-status=live }}</ref> Zukor returned to the company and was named production chief but after Barney Balaban was appointed president on July 2, 1936, he was soon replaced by [[Y. Frank Freeman]] and symbolically named chairman of the board.<ref>{{cite news |title=FINANCIAL .,, . e 'rm nrk illr . = . . FINANCIAL BALABAN, ZUKOR HEAD PARAMOUNT; Former Elected President of Pictures Corporation; Latter Retained as Chairman. KENNEDY FINISHES STUDY Report Said to Show Theatres' Profit Offset by Results of Film Production Division. |url=https://www.nytimes.com/1936/07/03/archives/financial-e-rm-nrk-illr-financial-balaban-zukor-head-paramount.html |access-date=January 9, 2022 |work=The New York Times |date=July 3, 1936 |page=25 |language=en-US |archive-date=January 9, 2022 |archive-url=https://web.archive.org/web/20220109224545/https://www.nytimes.com/1936/07/03/archives/financial-e-rm-nrk-illr-financial-balaban-zukor-head-paramount.html |url-status=live }}</ref><ref>{{cite book |last=Gomery |first=Douglas |title=The Hollywood Studio System: A History |date=2017 |publisher=Bloomsbury Publishing |location=London |page=88 |isbn=9781349918447 |edition=3rd |url=https://books.google.com/books?id=RcFPEAAAQBAJ&dq=paramount+july+1935+new+york+times+assets&pg=PA88 |access-date=January 21, 2022 |language=en-UK |archive-date=March 19, 2022 |archive-url=https://web.archive.org/web/20220319083259/https://books.google.com/books?id=RcFPEAAAQBAJ&dq=paramount+july+1935+new+york+times+assets&pg=PA88 |url-status=live }}</ref> On August 28, 1935, Paramount Pictures was re-listed on the [[New York Stock Exchange]] and when the company was under Balaban's leadership, the studio was successfully relaunched.<ref>{{cite book |last1=Regev |first1=Ronny |title=Working in Hollywood: How the Studio System Turned Creativity into Labor |date=2018 |publisher=University of North Carolina Press |location=Chapel Hill, North Carolina |page=38 |isbn=9781469637068 |url=https://books.google.com/books?id=80ZwDwAAQBAJ&dq=Barney+Balaban+July+1936&pg=PA38 |access-date=January 9, 2022 |language=en-US |archive-date=March 19, 2022 |archive-url=https://web.archive.org/web/20220319083300/https://books.google.com/books?id=80ZwDwAAQBAJ&dq=Barney%20Balaban%20July%201936&pg=PA38 |url-status=live }}</ref>

[[File:Paramount Pictures ad in The Film Daily, Jan-Jun 1932 (page 192 crop).jpg|thumb|Paramount Pictures ad in ''[[The Film Daily]]'', 1932]]
As always, Paramount films continued to emphasize stars; in the 1920s there were [[Gloria Swanson]], [[Wallace Reid]], [[Rudolph Valentino]], [[Florence Vidor]], [[Thomas Meighan]], [[Pola Negri]], [[Bebe Daniels]], [[Antonio Moreno]], [[Richard Dix]], [[Esther Ralston]], [[Emil Jannings]], [[George Bancroft (actor)|George Bancroft]], [[Betty Compson]], [[Clara Bow]], [[Adolphe Menjou]], and [[Charles Buddy Rogers]]. By the late 1920s and the early 1930s, talkies brought in a range of powerful draws: [[Richard Arlen]], [[Nancy Carroll]], [[Maurice Chevalier]], [[Gary Cooper]], [[Marlene Dietrich]], [[Charles Ruggles]], [[Ruth Chatterton]], [[William Powell]], [[Mae West]], [[Sylvia Sidney]], [[Bing Crosby]], [[Claudette Colbert]], the [[Marx Brothers]], [[W.C. Fields]], [[Fredric March]], [[Jack Oakie]], [[Jeanette MacDonald]] (whose first two films were shot at Paramount's [[Astoria, New York]], studio), [[Carole Lombard]], [[George Raft]], [[Miriam Hopkins]], [[Cary Grant]] and [[Stuart Erwin]], among them.<ref>{{cite book |last=Eames |first=John Douglas |title=The Paramount story |year=1985 |publisher=Crown |location=New York City |isbn=0-517-55348-1 |page=37 |edition=[1st ed.].}}</ref> In this period Paramount can truly be described as a movie factory, turning out sixty to seventy pictures a year. Such were the benefits of having a huge theater chain to fill, and of block booking to persuade other chains to go along. In 1933, [[Mae West]] would also add greatly to Paramount's success with her suggestive movies ''[[She Done Him Wrong]]'' and ''[[I'm No Angel]]''.<ref>{{cite web |url=http://www.filmsite.org/shed.html |title=Filmsite.org |publisher=Filmsite.org |access-date=January 7, 2010 |archive-date=July 23, 2010 |archive-url=https://web.archive.org/web/20100723214011/http://www.filmsite.org/shed.html |url-status=live }}</ref><ref>{{cite web |url=http://www.filmsite.org/imno.html |title=Filmsite.org |publisher=Filmsite.org |access-date=January 7, 2010 |archive-date=January 25, 2010 |archive-url=https://web.archive.org/web/20100125082721/http://www.filmsite.org/imno.html |url-status=live }}</ref> However, the sex appeal West gave in these movies would also lead to the enforcement of the [[Production Code]], as the newly formed organization the [[Catholic Legion of Decency]] threatened a boycott if it was not enforced.<ref>{{cite web |url=http://www.mae-west.org/old/mw.bio.html |title=Mae-West.org |publisher=Mae-West.org |access-date=January 7, 2010 |archive-date=February 18, 2009 |archive-url=https://web.archive.org/web/20090218214412/http://mae-west.org/old/mw.bio.html |url-status=live }}</ref>
Paramount cartoons produced by Fleischer Studios continued to be successful, with [[Character (arts)|characters]] such as [[Betty Boop]] and [[Popeye the Sailor]] becoming widely successful. One Fleischer series, ''[[Screen Songs]]'', featured live-action music stars under contract to Paramount hosting sing-alongs of popular songs. The animation studio would rebound with [[Popeye]], and in 1935, polls showed that Popeye was even more popular than [[Mickey Mouse]].<ref>{{cite web |url=http://forums.goldenagecartoons.com/showthread.php?t=2907 |title=Forums.GoldenAgeCartoons.com |publisher=Forums.GoldenAgeCartoons.com |access-date=January 7, 2010 |url-status=dead |archive-url=https://web.archive.org/web/20110711104313/http://forums.goldenagecartoons.com/showthread.php?t=2907 |archive-date=July 11, 2011}}</ref> After an unsuccessful expansion into feature films, as well as the fact that Max and Dave Fleischer were no longer speaking to one another, Fleischer Studios was acquired by Paramount, which renamed the operation [[Famous Studios]]. That incarnation of the animation studio continued cartoon production until 1967, but has been historically dismissed as having largely failed to maintain the artistic acclaim the Fleischer brothers achieved under their management.<ref>{{cite book |last=Maltin |first=Leonard |title=Of Mice and Magic |year=1987 |orig-year=1980 |publisher=Plume |location=New York City |page=311}}</ref>