The Exhibitor (1949)

14 New York — Despite the fact that a set¬ tlement with the government was be¬ lieved near, Paramount last fortnight filed a brief and memorandum in federal court answering charges of monopoly and the demand for divorcement. Paramount stated that 2293 independent theatres had been reopened or constructed within the past three years, and that it had lost 106 of its houses, and will lose 335 more through the “termination of the majority of its joint interests.” Through the dissolution of joint interests with other defendants, it expects to lose 119 more houses. Because of the clearance adjustments it has made, along with the injunctions under which it now operates, no addi¬ tional adjunctive measures as far as trade practices are concerned are needed, the company claimed. Arbitration, it pointed out, can also be used to eliminate any further inequities. Paramount asked the court for a finding to allow it to split its joint ownerships under several plans. Among the companies which it says it is willing to terminate, in the way of part¬ nership units, by a division of assets and in a manner which will result in compe¬ tition between those now joint owners, are the following: Alabama Theatres, Inc.; Alger Theatre Corporation; Allied Theatres of Bangor; Arkansas Amusement Corporation; Au¬ burn Amusement Company; Augusta Amusements, Inc.; Birmingham Theatre Operating Company; Black and Churchill Theatres, Inc.; Brockton Olympia Realty Company; Central States Theatre Cor¬ poration; Darlington Theatres, Inc.; Dearborn-Randolph Corporation; Diana The¬ atre Corporation; Drive-In Theatres of Alabama, Inc.; Drive-In Theatres of South Carolina, Inc.; Essex Amusement Corporation; Elizabethton Theatres, Inc.; Eton Amusement Corporation; Fairmont Theatre Company; Florence Theatres, Inc.; 423 South Broadway Corporation; 45 West Randolph Street Theatre Corporation; Fulton Enterprises, Inc.; Gale Theatre Company; Garryana Amusement Corpor¬ ation; Georgia Theatre Company; Green¬ wood Theatres, Inc.; Interstate Circuit, Inc.; Jefferson Amusement Company; L and P Theatres, Inc.; M and P Theatres Corporation; Madison Theatre Company; Malco Theatres, Inc.; Massachusetts Oper¬ ating Company, Inc.; Menmar Theatre Company; Newton Amusement Corpora¬ tion; North Carolina Theatres, Inc.; Oak Park Amusement Company; Par amor The¬ atre Company; Paramount Hollywood Theatre Corporation; Pennler Theatre Corporation; Pennware Theatre Corpora¬ tion; Phoenix Drive-In Theatre, Inc.; Publix Bamford Theatres, Inc.; Publix Lucas Theatres, Inc.; Publix Netoco The¬ atres Corporation; Publix Wheeling The¬ atre Corporation; Quincy Theatres Oper¬ ating Company; Rockford Enterprises, Inc.; Rockford Theatre Corporation; Rockland Amusement Company; Royal Theatre Company; Rutland Enterprises, Inc.; Savannah Theatres Company; State Amusement Corporation; Straham The¬ atre Corporation; Studio Theatre Corpora¬ tion; Studio Theatre, Inc.; Taunton Oper THE EXHIBITOR Trusteeship Highlights Forthcoming Para. Decree NEW YORK — It was learned last week that a five-year deadline for the sale of trustee stock in the new ex¬ hibition company would result from the reorganization in the Paramount decree. When Paramount is split into a pro¬ duction-distribution company and an exhibition company one year after the decree is entered, stock in one or the other company must be sold or the exhibition company stock must be deposited with a court-appointed trus¬ tee. The stock can be left in trust, that is, dividends received but the stock not voted, up to five years. Any time after four years, the trustee can sell the stock out to a third party if the owner refuses to dispose of it himself. The trustees must sell all trusteed stock by the end of the fifth year. During the five-year period, anyone buying trusteed stock must certify that he does not own stock in the production company. After five years, it is said, there is no control over the stock. Department of Justice officials are reported to believe that by the end of five years, divorcement will be so complete that there will be no chance of anyone regaining control of both companies. If that should happen, however, the decree would be re¬ opened, and a court order to break up such control speedily obtained. The final signing of the decree was ex¬ pected to take place this week. ating Company, Inc.; Taunton Theatres, Inc.; Texas Consolidated Theatres, Inc.; Tivoli Operating Corporation; United Art¬ ists Theatre Corporation of Michigan; United Theatre Enterprises, Inc.; Ute Theatre Company; Welworth Theatres of Wisconsin, Inc.; West Suburban Amuse¬ ment Company, and Wilby-Kincey Service Corporation. The company proposes that it be per¬ mitted to retain its interest in the follow¬ ing 11 corporations, the first six of which involve investments by partners who are not actual or potential exhibitors, and the latter five on which arose out of the bank¬ ruptcy of Paramount Public Corporation: Haverhill Operating Corporation; Iris Amusement Corporation; Johnson City Enterprises, Inc.; Maine and New Hamp¬ shire Theatres Company; Rochester Amusement Company; Winona Theatre Company; Dominion Theatres, Inc.; Paramount-Richards Theatres, Inc.; Penncom Corporation; Tri-States Theatres Corpora¬ tion, and Western Massachusetts Theatres, Inc. Goldwyn Drops NY Interest New York — It was learned last week that Samuel Goldwyn will not retain any in¬ terest in the local Astor when his “En¬ chantment” ends its run. However, he still has a share in the Astor, Boston. Nathan Laufer Passes New York — Nathan Laufer, 85, father of Phil Laufer, film publicist, died last week. Funeral services were held at Riverside Memorial Chapel, with interment in Mt. Hebron Cemetery. Paramount Files New Brief With Court WB Quarterly Profit Hits $3, 09 3, 000 New York — Warner Brothers Pictures, Inc., and subsidiary companies last week reported for the three months ending on Nov. 27, 1948, a net profit of $3,093,000 after provision of $2,000,000 for federal income taxes. The net profit for the three months end¬ ing on Nov. 29, 1947, amounted to $3,947,000 after provision of $2,700,000 for federal income taxes. The net profit for the three months ending on Nov. 27, 1948, is equivalent to 42 cents per share on the 7,295,000 shares of common stock outstanding. The net profit for the corresponding period last year was equivalent to 54 cents per share. Prior to Aug. 31, 1948, the close of the last fiscal year, the film rentals reflected in the consolidated income account in¬ cluded the film rentals of the principal subsidiary companies operating in foreign territories. Thereafter, only the U. S. companies’ share of the foreign film rentals which was remittable in dollars has been included in the consolidated income account. Film rentals, theatre admissions, sales, etc., after eliminating intercompany trans¬ actions, for the three months ending on Nov. 27, 1948, amounted to $33,734,000. At a special meeting of the board of directors a dividend of 25 cents per share was declared, payable on April 5 to the holders of common stock on March 4. Griffith Case Recessed Oklahoma City — Following the hear¬ ing of the last of the government’s many witnesses, the Griffith anti-trust case before U. S. Judge Edgar S. Vaught recessed here last week until April 20. Counsel is still perusing the many con¬ tracts between Griffith and the major dis¬ tributors from 1939 to date. The last wit¬ ness before the recess was Morton Lane, a member of Paramount’s legal depart¬ ment, who testified that he was made legal adviser for the company’s central division, which includes states in which Griffith operates, after the 1946 decision in the Paramount case. He said that it was part of his job to see that Paramount sells its product to the highest bidder, and said this was being done. He conceded, how¬ ever, that he has to rely on the word of sales personnel in cormection with the effects of bidding. SEG Approves Contract Hollywood — The Screen Extras Guild, AFL, last week announced its members had okehed a new contract with pro¬ ducers, 2,028 to 198. The five-year pact provides for a union shop and preferences in hiring for those already registered with casting agencies. The agreement also establishes new wage rates for classifi¬ cations not previously covered by con¬ tract, and allows reopening rights at stip¬ ulated dates in 1949 and 1951. More Tax Cut Bills Up Washington — Two more bills to reduce the federal admissions tax to its prewar level of 10 per cent were introduced in the House last week by Representatives Mansfield, D., Montana, and Jonas, R., Illinois. February 23, 1949