Boxoffice (Oct-Dec 1948)

Antitrust Hearing [Cont.] (Continued from page 8) with the 49-theatre Malco circuit, in which it has a 50 per cent interest; with the 38theatre Central States Theatre Corp. in which it shares a 50 per cent interest with A. H. Blank. However, the association with Blank in the extensive TriStates circuit in Iowa is not to be disturbed under the proposals. The company also is willing to divest itself of 36 theatres in the Netco circuit in New England which involves its relationship with the Mullin and Pinanski chain. CIRCUITS NOT INCLUDED A number of important jointly-owned circuits are not included in the properties submitted for divestiture. These include the 17 theatres in the Florida Inland circuit, which it has with Frank Rogers and others; 30 theatres in the Maine and New Hampshire circuit in which it has a 50 per cent interest; 20 theatres in the Western Massachusetts Theatres circuit, held with Samuel Goldstein; 80 theatres in Pennsylvania and New York, operated with the Commerford-J. J. O’Leary interests; nor the 80 theatres operated with E. V. Richards jr. in the New Orleans area. BREAKUP IN SOUTHEAST Paramount proposed to break up some of its relationships in the southeast. While the plan does not propose divestiture of the Wilby-Kincey Service Corp., which services 50 jointly-owned theatres in the Carolinas, or the operating company itself, it proposed an end to associations with six corporations operating 17 theatres in which it has a joint interest with Wilby-Kincey. Paramount divided its theatre holdings into five groups in presenting its arguments for retention and disposition of theatres. These were: List of jointly-owned theatre interests which Paramount is prepared to terminate — 498 theatres. List of theatres owned jointly with investors. (It will argue for retention of these) — 37 theatres. List of jointly-owned theatre interests which arose as the fortuitous result of bankruptcies. (It will argue for retention of these) — 237 theatres. List of jointly-owned theatre interests in which the alleged “actual or potential operator’’'. owns 5 per cent or less of the capital stock. (It will argue for retention or these) — 94 theatres. List of theatres interests owned by: ' Buffalo Theatres, Inc., 13 theatres, in which Paramount has 43% per cent (Paramount will keep eight and Loew’s Inc., five). 90 BUTTERFIELD THEATRES Butterfield Michigan Theatres Co., 21 theatres, in which Paramount has 33 Vs per cent, and W. S. Butterfield Theatres, Inc., 90 theatres in which Paramount has 25 per cent. (Paramount will sell out to Butterfield). Summarized, this means that Paramount is: Definitely willing to give up.... Ill theatres Tentatively willing to give up 498 theatres Wants to retain 368 theatres Will keep in Buffalo 8 theatres Paramount hopes to keep about half the 498 theatres listed as “tentatively willing to give up,” so that if its hopes are fulfilled it will retain about 625 theatres, plus 500 (Continued on page 10) Here Are the Details Of 20th-Fox Settlement: NEW YORK — The agreement between the Department of Justice and National Theatres Corp. for giving up a number of theatres and rearranging the holdings of others was signed by Robert L. Wright and Dwight, Harris, Koegel & Caskey on December 17. Most of the theatres involved are in California, with 23 in the state of Washington and two in Oregon, three in Montana, two in Wisconsin and two in Iowa. The big regional units. Fox Wisconsin, Fox Midwest and Fox Intermountain, are left practically undisturbed. The splitups are divided into three groups. Group A National Theatres Corp. agrees to sell or dispose of its stock in one year in these corporations to persons not affiliated with any defendant in the case, or to divide the assets: Rubidoux Theatre Corp.: De Anza Theatre— Riverside, Calif. Sacramento Theatres, Inc.: Senator, Capitol, Rio — Sacramento, Calif. Principal Theatres, Inc.: Banning — Banning, Calif.; Brawley and Circle — Brawley, Calif.; Molino, Monache and Crystal — Porterville, Calif; El Rey — Alhambra, Calif. (In the Principal group National owns 51 per cent and the other owners are Mike Rosenberg, Sol Lesser and others). For Western Montana Theatre Corp.: American, Rialto, Fox, Montana and Park — Butte, Mont. Theatres Holding Co.: Lessee of Hollywood Theatre, Los Angeles, with National owning 33% per cent and David Bershon and Earl Sinks owning the remaining 66% per cent. San Luis Obispo Theatres, Inc.: Fremont, Elmo and Obispo — San Luis Obispo, Calif. National owns 51 per cent. Group B National Theatres Corp. agrees to dispose of stock within a year to persons not defendants in the case or to terminate joint ownerships, but in the division of the assets National may, with the approval of the court, keep up to one-third of the total, not to exceed one theatre in each community where the corporations have theatres: Anaheim Theatres, Inc.: Fox and Anaheim— Anaheim, Calif., and through control of Fullerton Theatre Corp. — ^Fox — Fullerton, Calif. National owns 51 per cent. Broadway Theatre Co. of Santa Ana: Broadway — Santa Ana, Calif. National owns 51 per cent. West CoastSanta Ana Theatre Corp.: West Coast — Santa Ana, Calif. National owns 51 per cent. Fullerton Building Corp.: Fox — Fullerton, Calif. National owns 51 per cent. West CoastWilmington Co.: Granada and Avalon — Wilmington, Calif. National owns 77.3332 per cent. Valley Theatres Corp.: Grand and Wasau — Wasau, Wis. Muscatine Amusement Co.: Palace and Uptown— Muscatine, Iowa. West Coast-Compton Theatre Corp.: Tower and Compton — Compton, Calif. Group C This section provides for a rearrangement of stock interests with various circuits now affiliated with National Theatres on the coast, all to be done within one year. National agrees to dispose of its interests in United West Coast Theatres Corp. and to end its joint interest with United Artists Theatre Circuit, Inc. The theatres involved in the joint operation will revert to the individual owners. National will give up its interest in the Egyptian, Hollywood, which is ovmed by a subsidiary of United Artists Theatre Circuit, Inc., and will acquire the Chinese ’Theatre in Hollywood from the UA circixit. Under the agreement National will split the assets of Golden State Theatre & Realty Co. and T&D Jr. Enterprises, retaining a proportion of theatres equivalent to its present stockholdings in the two groups. National owns 75 per cent of Golden State. These two companies operate 103 California theatres in and around San Francisco, down the coast as far as Paso Robles and across the San Joachim Valley to Visalia. Five Reno, Nev., houses also are included. The existing joint ovmership of Golden State and T&D will be terminated, as will the joint ownership of Fresno Theatres, Inc., a subsidiary. National owns 31.77 per cent of T&D. National also will dispose of its interests in Cascade Theatres Corp., or will terminate its joint interest with John Hamrick and the stock will revert to the owners or lessees in the individual houses of the circuit which operates in Washington and Oregon. Operations of Evergreen State Amusement Corp., which has interests in 34 theatres, 23 of which are in Washintgon and two in Oregon, are not to be disturbed. Cascade is a subsidiary of Evergreen and ill turn has two subsidiaries of its own — Multonomah Theatres Corp. and Rainier Theatres Corp. Evergreen State owns 60 per cent of Cascade and John Hamrick owns 40 per cent. The theatres covered in this group are Portland— Music Box, Playhouse, Hollywood, Oriental, Liberty, Orpheum and Rivoli; Seattle— Fifth Avenue, Paramount, Coliseum, Blue Mouse, Music Box, Music Hall and Orpheum. Because the stock of seven National subsidiaries is not jointly owned the company will retain ownership of the following: Fox Salina Theatres, Ltd., Gateway Theatre Co., Marstrand Theatres Corp., Pico ’Theatres Corp., Transbay Theatres, Inc., West Coast Hollywood Theatres, Carlton-Rivoli Theatres. BOXOFFICE :: December 25, 1948 9