Edward R. Alperson was an ambitious 39-year old manager of a film
exchange when he decided to organize a new studio he called Grand
National in 1936. The company headquartered in New York City with the
First Division Picture Exchange as it's distribution arm and received a
tremendous boost when Warner Brothers' prime star,
James Cagney, walked over long standing
disputes with Jack L. Warner. Alperson
dangled a lucrative offer at Cagney and he signed on, knowing that
Warner could effectively blackball him from working at a major studio.
With Cagney on board, Alperson flew into high gear. Aging cowboy
superstar Tom Mix (by then a far flung circus
owner in serious financial straights) rented out his home to Grand
National as their Hollywood headquarters while Alperson set about
creating an all-important image for his new company, signing on
producers and developing projects. Things began well for Grand
National... the company initially made profitable films that, if not of
the same caliber as that of the majors, were fast paced and enjoyable
B's. Cagney scored decent returns with
Great Guy (1936) although it was
somewhat of a shock to see him in a film with such obviously low
production values. Alperson spent $25,000 for the rights of a sure-fire
Cagney hit, 'Angels Wth Dirty Faces' but despite all pleading from his
associates, opted to produce
Musik in den Fäusten (1937)
next. It proved a devastating mistake for Grand National, production
costs soared to $900,000 and the film, easily Cagney's worst of the
30's, immediately flopped. The fledgling company was ruined. Creditors
were held at bay for most of 1938 while production was cut back to a
dozen or so features of declining quality and the company, bleeding red
ink at the rate of $35,000 a week, failed in 1939, with over $700,000
in outstanding debts. Alperson resigned as the studio's head on Feb.
25, 1939.
