Boxoffice (Apr-Jun 1939)

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Goldwyn Withdraws UA Suit; To File Anew in Delaware New York — Preparatory to filing anew in Delaware, Max D. Steuer, counsel for Samuel Goldwyn, in a surprise move Thursday submitted a motion in federal court asking discontinuance here of the suit filed against United Artists. The technical approach covered in a brief motion read: “Defendant having filed no copy of record and no answer under Rule 41, Section A, Section 1 of the new rules of federal procedure asks leave to dismiss action.” UA’s answer was not expected until next week. Steuer and James Roosevelt, Goldwyn vice-president, could not be reached by Boxoffice for comment. Disagreement on Dates Leads to Rivoli Switch New York — Failing to get a desired date at the Music Hall, UA has booked “Wuthering Heights” into the Rivoli following “Three Smart Girls Grow up.” According to UA sources, “Wuthering Heights” was scheduled to follow "The Story of Vernon and Irene Castle” into the Music Hall with opening around Easter Week to tie in with a $100,000 national campaign on the picture. When it was learned the booking was put back by the Music Hall, UA then turned to the Rivoli for an early showing with indications “Wuthering Heights” will have a popular price premiere April 13. Quebec Wants Infidelity Hints Out of "Heights" Montreal — Unless Samuel Goldwyn consents to the elimination of an infidelity sequence from “Wuthering Heights,” the picture will not be shown in Quebec, Arthur Laramee, chairman of the board of censors, reveals. UA's Structure Aired in Government Examination New York — The general structure of UA, duties of its officers, the relationship between producers and the distributing company and other sundry matters highlighted the examination before trial of Harry J. Muller, treasurer and comptroller, in federal court Thursday and Friday. Robert L. Wright, assistant to the attorney general, handled the examination. Major company representatives were on hand in connection with the first phase of the government’s anti-trust suit. Edward C. Raftery and Benjamin Pepper, counsel for UA, declined to allow Muller to answer questions relative to tying UA up with production activities on the ground “the complaint does not allege anything of the sort.” The attorneys, likewise, refused the request of the government to submit annual reports and financial statements, claiming it a personal matter because five individuals owned the company through stocks and bonds. $1,000,000 in Quarter Is Earned by Paramount New York — Earnings of approximately $1,000,000 for Paramount for the first quarter of the current fiscal year are estimated in Wall Street circles. This would mean an increase of about $200,000 for the same period last year. Neil F. Agnew on Thursday met with the Chicago sales force in the Windy City on his way to the coast for studio conferences. Robert Gillham left Wednesday for Hollywood, after a Chicago stopover on “Union Pacific” and Barney Balaban, Stanton Griffis, Edwin L. Weisl, Russell Holman and Leon Netter departed Friday night. Technicolor 1938 Profit Passes $1,000,000 Mark New York — Technicolor, Inc., and its subsidiary, Technicolor Motion Picture Corp., reports an annual net profit of $1,050,536, equivalent to $1.24 each on the 842,664 shares of no-par capital stock and compares with $463,139 or 58 cents each, on 803,081 shares in 1937. Current assets on December 31 were $3,870,295 and current liabilities to $900,666, compared with $3,010,831 and $465,903, respectively at the end of the previous year. Cash increased to $3,315,337 from $2,596,378 in 1937. GTE Net $507,267 New York — A net profit of $507,267 for 1938 is reported by General Theatres Equipment Corp., after a $225,000 reserve against advances to subsidiaries, equal to about 85 cents each on the 597,887 shares of outstanding capital stock. The consolidated net profit in 1937 was $1,212,315, or $2.01 a share on the 600,892 shares then outstanding. Current assets on December 31 last amounted to $6,234,047 against current liabilities of $646,219. Distribution Approved of Pathe Lab Common New York — Distribution of the remaining 50 per cent of the outstanding Pathe Laboratories’ common stock to Pathe Film stockholders on the basis of one share for each 100 held in Pathe Film has been approved. Stockholders of record April 14 will receive the new stock April 28, with scrip being issued for fractional parts of 100 shares of Pathe Film stock. Pathe 1938 Profit Drops Sharply Under 1937 New York — Pathe Film Corp. reports a net profit of $77,158 for the year ending December 31, comparing with $466,918 for 1937. The report states the decrease was caused by a reduction of $227,500 in dividends received on its investment in DuPont Films, and a 22 per cent decline in operating income caused by the curtailment in film production last spring. Conlusion Faces The Reader New York — Weekend appearance of the “American Weekly,” Sunday supplement of the Hearst and others newspapers must have been confusing to the reader. On one page is display copy for "Wuthering Heights" advertised for the Music Hall. On another is additional copy pointing out the film will play the Rivoli here. The situation stems to the differences between UA and the Music Hall on dates. The copy referring to the original playdate could not be changed. UA took the next best step under the circumstances by advertising the Rivoli run. Loew's Strengthens Broadway Position New York — Solidifying its position on upper Broadway, Loew’s has consummated the long-pending deal for a half interest in the Olympia and Stoddard, two Skouras houses acquired in 1937 from the estate of Jack W. Springer. Under the deal, Loew’s operates the Olympia with Skouras continuing at the Stoddard. The Olympia has added the name of Loew’s to the marquee and its advertising. The house has not opened because Local 306 refused to provide operators until the strike is settled. Changes in the Loew publicity department have Bill Slifka resigning in Brooklyn and Dick Dan replacing Sol Hamwerger in the same borough. Hamwerger has returned to the home office. The regular quarterly dividend of $1.621/2 on the preferred, payable May 15 to stockholders of record, April 28, has been declared. A motion by Loew’s to dismiss the suit of the Wendell estate which sought $44,692.18 as a further rent on the Capitol has been uphold by Supreme Court Justice Salvatore Cottillo. The circuit’s counterclaim for $33,700, which, it is claimed, was erroneously paid to the estate, has not yet been decided. According to a report filed with SEC in Washington, David Bernstein, vice-president and treasurer, purchased 22,220 shares of Loew common in February which increased his holdings to 29,300 shares; J. Robert Rubin, vice-president and general counsel for M-G-M, added the same amount as Bernstein but on the same day sold 2,200 shares which gives him a total of 34,175 shares. The purchases resulted from options to acquire these amounts before March 1 at $40 a share. Ross Men Shifted New York — Ross Federal personnel changes have Harold Anderson, formerly assistant manager in Chicago, succeeding Norman Brennan who resigned because of pressure of personal affairs. Stewart C. Martin of Boston moves over to Chicago to fill Anderson’s spot. 28 BOXOFFICE :: April 8, 1939