The Exhibitor (1951)

JG EXHIBITOR WB Stockholders Okeh Reorg. Plan Wilmington, Del. — Stockholders of War¬ ner Brothers, Inc., at the annual meeting last week approved the plan of reorganiza¬ tion whereunder the theatre assets of Warner, located in the United States, will be divorced from its production and dis¬ tribution assets in accordance with the consent judgment agreed upon with the Department of Justice. The reorganization plan was approved with 5,079,833 shares voted in favor and 41,579 opposed. Stockholders will receive one-half share of the new theatre com¬ pany stock and one-half share of the new picture company stock in exchange for each share of the present Warner common stock. The company is given until April 4, 1953, to carry out the plan of reorgan¬ ization. Warner Brothers Pictures, Inc., will con¬ tinue to operate until the plan of reor¬ ganization has been carried out, and the theatre assets have been transferred to the new theatre company, and the productiondistribution assets transferred to the new picture company, and the two new com¬ panies commence operations. The stockholders also authorized the cancellation of 523,000 shares of Warner common stock held in its treasury and reduction of the capital by $2,615,000. Five directors, Samuel Carlisle, Stanleigh P. Friedman, Charles S. Guggenheimer, Sam¬ uel Schneider, and Morris Wolf, were re¬ elected for a period of two years. At the stockholders’ meeting, former Federal Judge Hugh M. Morris, Wilming MPA Finally Gives Approval To "Twist" NEW YORK — The board of directors of the Motion Picture Association last week authorized the Production Code Administration to issue a certificate for “Oliver Twist” in its revised form. At its meeting, the board considered the appeal of Eagle Lion Classics, Inc., for the certificate which had been withheld by the Production Code Ad¬ ministration. At a hearing on the appeal before the board last month, the distributor offered to make eliminations from the film, and the board called upon the director of the Production Code Ad¬ ministration to make his recommenda¬ tions. Extensive eliminations recom¬ mended by the Production Code direc¬ tor were made by Eagle Lion Classics. Some changes in by-laws were ap¬ proved, and Ned Depinet was given a vote of thanks for his work on COMPO. ton, who presided, stated that under the present federal excess profits tax law it is now estimated that, should Warner Brothers Pictures, Inc., and its subsidiaries file a consolidated income tax return, they will not be required to pay an excess profits tax until the consolidated earnings subject to such tax exceed $24,000,000. Judge Morris also presented to the meet¬ ing the Warner financial statement for the three months ended on Nov. 25, 1950. Management representatives included Robert W. Perkins, vice-president, secre¬ tary, and general counsel; Friedman, vice¬ president; Harold S. Bareford and Ed¬ ward K. Hessberg, both assistant secre¬ taries; W. Stewart McDonald, assistant treasurer; Thomas J. Martin, auditor; A. J. Vanni, out-of-town zone manager, Philadelphia territory, S-W Theatres, and Lewis S. Black, city manager. Perkins said in answer to a stockholder’s question, that although there have been some negotiations looking to sale by the Warner brothers of their interest in the projected theatre company, the brothers have made no commitment, and their elec¬ tion as between the theatre company and the picture company is still open. McDonald, answering another stock¬ holder’s question, attributed declining film rentals, theatre admissions, and sales to heavy buying in consumer goods, install¬ ment sales, home mortgages, the high cost of living, debts, and taxes, rather than television. Judge Morris announced that Warner Brothers Pictures, Inc., and subsidiary companies reported for the three months ending on Nov. 25, 1950, a net profit of $1,813,000 after provision of $2,000,000 for federal income taxes and after a provision of $200,000 for contingent liabilities. The net profit for the three months ending on Nov. 26, 1949, amounted to $3,189,000 after provision of $2,200,000 for federal income taxes and after a provision of $250,000 for contingent liabilities. The net profit for the three months end¬ ing on Nov. 25, 1950, is equivalent to 26 cents per share on the 6,821,600 shares of common stock outstanding on Nov. 25, 1950, after deducting shares held in the treasury. The net profit for the corre¬ sponding period last year was equivalent to 43 cents per share on the 7,295,000 shares of common stock then outstanding. Film rentals, theatre admissions, sales, etc., after eliminating intercompany trans¬ actions, for the three months ending on Nov. 25, 1950, amounted to $27,926,000, as compared with $32,712,000 for the corre¬ sponding period last year. The provision for estimated federal taxes on income, Judge Morris said, has been calculated at the rates provided under the existing fed¬ eral income and excess profits tax law. It is estimated that no excess profits tax ornvision is required. Between June 22, 1950, and the close of the last fiscal year, Aug. 31, 1950, the com¬ pany acquired a total of 297,700 shares of common stock. During the quarter ending on Nov. 25, 1950, the company purchased 175,700 shares of its common stock at a cost of $2,309,000. Between Nov. 25, 1950. and Jan. 11, 1951, 49,600 shares of the company’s common stock was purchased at a cost of $618,000. No common stock has been purchased by the companv since Jan. 11. Philly To Honor Skouras Philadelphia — Five artists who, in their respective fields, have contributed to bet¬ ter understanding among all people will receive the Philadelphia Fellowship Com¬ mission human relations awards at the Bellevue-Stratford Hotel on March 1: Wil¬ lard Motley, novelist; Spyros Skouras. 20th-Fox president; Langston Hughes, poet and playwright; John Hersey, jour¬ nalist and author, and Arthur Koestler, author. The men will be honored at the Fellow¬ ship Commission’s 1951 membership en¬ rollment dinner, “A Salute to the Arts.” ANSWER TO YOUR TECHNICAL PROBLEMS . . . The Altec Service Man and the organization behind him 1 6 1 Sixth Avenue, New York 13, N. Y. PROTECTING THE THEATRE— FIRST PLACE IN ENTERTAINMENT February 28. 1951