Motion Picture News (Nov-Dec 1925)

2132 Motion Picture News PARAMOUNT SIGNS SCHULBERG Goes to Production Department BP. SCHULBERG has joined the production department of Famous Players-Lasky under a long term contract, according to announcement by Jesse L. Lasky. By the arrangement Famous also takes over four players and one director whom Schulberg had under contract. The four players who will be added to the Paramount Stock company are Clara Bow, Donald Keith, Alyce Mills and Gilbert Rowland. The director is William Wellman. In announcing the signing of Schulberg, Jesse Lasky said : "In embarking on the greatest production program in our history, it gives me great pleasure to announce the addition of Mr. Schulberg to our producing forces. Mr. Schulberg will produce pictures in the Lasky studio and we expect that his coming will be of immense help in the ambitious program we have prepared for ourselves. "I wish to emphasize that Mr. Schulberg's coming to the Lasky studio is an addition to our forces and does not mean in any sense that there will be any change in the producing personnel of the production department. By adding Mr. Schulberg to our forces we will be able to devote even greater care and attention to each individual picture. We have just finished our schedule of Fall releases — the Greater Forty. Great as these pictures have been it is our purpose to make our Spring product even bigger in individual production values. I know Mr. Schulberg will be of material assistance to us in this direction." FamousLtd/s Financial Report Net Profits for Fiscal Year Amount to $413,168; Company's Assets are $15,416,063 LARGER net profits, an increase in the number of theatres controlled, a greater net surplus brought forward, dividends paid on first preference stock and other highly favorable features were noted in the annual financial statement of Famous Players Canadian Corporation, Limited, Toronto, for the fiscal year ending August 29, 1925, which has just been released from the Toronto head office. Net profits for the 12 months amounted to $413,168, before providing for income taxes for 1925, as compared with $304,362 for the preceding fiscal year. The surplus brought forward from August 29, not providing for the 1925 income ta es, was $243,325, while the net surplus at the same date one year before was $187,146. It is pointed out that the 1924 income taxes amounted to $33,182. The company's total assets are shown at $15,416,063. Dividends paid on the first preference stock totalled $332,000. Theatre properties are carried on the books at a net valuation of $5,237,205 and investments in various affiliated compan:es are recorded at $449,685. Advances to affiliated companies secured by mortgages amounted to $216,612. Cash in the banks and on hand amounted to $264,672 and the accounts receivable are shown at $156,401. Interest paid on bonds and mortgages reached the total of $90,369. The proportion of deferred charges met during the year was $47,069 and property depreciation was placed at $180,000. Total deductions, including these several items, amounted to $317,438. An increase of $120,000 was shown in the mortgages on theatre properties during the 12 months but this was due to a transaction at Ottawa, Ontario, in which a mortgage was assumed on a large downtown property adjacent to the site now being held for a theatre. Not including this property purchase, the outstanding mortgages on other theatre properties throughout Canada were reduced by $73,000 during the year. Famous Players Canadian Corp. now controls more than 80 theatres in Canada, it is pointed out, the largest development during the year being the acquisition of the Trans-Canada Theatres, Limited, holdings. The president of the Canadian Company is Adolph Zukor of New York City, N. L. Nathanson of Toronto is the managing director of the corporation and subsidiary companies. Tax Appeals Board Decides for Central Amuse. Co. The United States Board of Tax Appeals meeting at Washington, D. C, has reversed a decision of the Commissioner of Internal Revenue, levying additional taxes of $1,199 against the Central Amusement Company, operators of mot'on pictures and vaudeville theatres in Indianapolis. The case arose out of the formation by the company of the Alhambra Realty Company for the purpose of purchasing the land upon which its Alhambra Theatre was located. The commissioner held that the two companies should be considered as separate entires for the entire year of 1920, whereas the Central Amusement Company claimed that they were affiliated during the first six months of the year. The board upheld the company's contention. Circuit Expansion Lively During Week (Continued from preceding page) Skouras Brothers and Harry Koplar, who jointly control the St. Louis Amusement company, have also had a complete understanding on some points of controversy and that company is prepared to go through with a program of major construction of houses and acquisition of existing theatres. The first step in this direction was the purchase of the Hamilton Airdome as the site for a $1,000,000 motion picture tneatre and apartment and store building. This house will seat 3,000 and play day and date with the Grand Central and other Skouras first run houses on big pictures. It is also known that plans are under consideration for a $1,000,000 house in the Gravois District and another big house for the southwestern section of the city. The Skouras Brothers are also interested in the new Cascade theatre at Southwest avenue and Edwards street. The public response to the announcement of the agreement between Goldman and Skouras Brothers and also of the deal involving the Missouri and Ambassador has been spectacular. The stocks of the St. Louis Amusement company and Skouras Brothers A stock were two of the lively spots on the St. Louis stock exchange during the past week and sold at high prices throughout. During the week the Board of Directors of Skouras Brothers Enterprises, Inc., declared a dividend of 75 cents a share on Class A stock and 30 cents per share on Class B stock, payable on November 2 to stockholders of record October 24th. The stock books were closed on October 24th and will not be re-opened until November 2. The Goldman-Skouras agreement provides that a new corporation shall be formed to operate the Grand Central, West End Lyric, Lyric Skydome and Kings. Goldman and Spyros and Charles Skouras will manage the four houses. Goldman will be paid on annual salary of $12,500 and the Skouras Brothers $8,750 each. Skouras Brothers will hold 55 per cent of the stock of the new company and Goldman the balance. There will be 1,000 shares of no par value stocfe. Skouras Brothers wdl receive $15,000 animal rent for the West End Lyric and $10.000 for the Lyric Skydome plus 18 per cent of the gross receipts above $55,500. Goldman will be paid $20,000 annually for the Kings. Famous Players Planning Short Subject Dept. FAMOUS PLAYERS-LASKY has been considering the establishment of a Short Subject Department, according to authoritative information this week. It is said that plans have not yet been matured. A published report that some of the subjects would be made by the Harold Lloyd corporation, but not starring Lloyd, was denied by William R. Fraser, executive of that company, in a telegram to MOTION PICTURE NEWS from Los Angeles. He branded the story as a wild rumor.