Exhibitors Herald World (Oct-Dec 1929)

28 EXHIBITORS HERALD-WORLD November 2, 1929 NOTION PICTURE FINANCE Break to Benefit Amusement Shares By LAURENCE STERN NEW YORK, Oct. 29. — Little can be said of the behavior of motion picture stocks during the last week. If an earthquake is severe enough, all human-made structures topple. It was a financial earthquake which struck the market last Wednesday and Thursday. It spared no security. Wall Street is still trying to catch its breath, and will not soon recover from the most amazing speculative setback ever known. J N retrospect it is clear that the move raised to ment is merely the natural culmination of months of top-heavy speculation. Unfortunately, it makes little difference that various classes of stocks, including the motion picture issues, have had scant part in the process of inflation. All have suffered alike. ♦ * * Since the market's break has turned attention to the fundamental realities of earnings and dividends, however, it is possible that it will ultimately work to the advantage of amusement shares. No group is now more reasonably priced in relation both to earnings and dividends. At present prices leading film stocks are selling at seven to ten times earnings, and there is every prospect that those earnings will continue to expand. There is much concern in Wall Street as to whether the severe decline will react unfavorably on business, especially in the luxury lines. Broadway theatrical men already are gloomy. Because of the high price of their tickets, however, it stands to reason that their problem is distinct from that of the motion picture industry. In the financial district there is no suggestion that a general industrial recession will seriously cut into the film business. There is much corporate news of the industry. The Paramount-Warner merger negotiations have been definitely and officially abandoned, for reasons not made public. Paramount earnings are officially estimated at between $14,000,000 and $15,000,000 for the year, as compared with $8,713,063 in 1928. It is proposed to split the stock two-forone and pay a $2 dividend on the new shares. The Warner dividend has been issue an tions. $4 a share annually, giving the per cent yield at recent quota German Trade Appeals To Government as Sound Device War Gets Hotter [By Special Correspondent to the Her aidWorld] BERLIN, Oct. 19.— [By Mail.]— The war between sound equipment manufacturers, over patent rights and supremacy in the market, rages hotter than ever, drawing a bitter statement from allied trade organizations and calling upon the talent of detectives. The latter have "been directed to find the source of an anonymous booklet which, by a series of questions and answers, seeks to point out deficiencies in Klangfilm. A fervid denunciation of the entire sound situation was contained in a statement issued by the Spitzen organization, which comprises all of the German film trade associations. Endorsing the views of exhibitor organizations, the Spitzen statement declares that the sound device quarrel is being carried on at the expense of exhibitor and public and directs the attention of the government to the resulting damage to culture. Wiring, however, is making progress. In Berlin there are now 40 theatres having Klangfilm, and 24 with Tobis. Both devices aggregate 120 installations throughout Germany. It is said that houses are being wired at the rate of two a day. UFA again reports that it will pass no dividend this year. Net profits are placed at 14,358 marks, although gross profits reached a total of 23 million marks, an increase of over a million marks. M P T O A May Meet In Dixie Next Year Too (Special to ihtt Herald-World) CONVENTION HE A D Q U A RTERS, MEMPHIS, Oct. 30.— The South may get the next M P T O A convention, also. Southern hospitality has captured the delegates to the convention. Gossip in the lobby of the Peabody hotel indicates that the delegates would look with favor on an invitation to hold the 1930 convention in either Atlanta or New Orleans. Two years ago this would have seemed practically impossible, as a big faction considered it a mistake not to hold the convention away from the densely populated districts, and there was considerable agitation to make either Chicago or Cleveland the permanent convention city. Censor Action Affects Bookings ; Ontario Bars Three Important Films ( Special to the Herald-World) OTTAWA, Oct. 29.— The Ontario board of moving picture censors has been cutting a wide path in the routine of the moving picture business in Ontario because of recent decisions. "The Cock-Eyed World" has been recalled by Chairman Boylen for further consideration after it had been passed by the board in his absence and fears are expressed that this production will be condemned. A number of important bookings had already been made and these are held up. Three important features have also been condemned outright by the Ontario board, these being "The Godless Girl," "Dynamite" and "The Thunderbolt." The latter, starring Fred Bancroft, has been banned, it is said, because the censors decided that the majesty of the law was not upheld in the story. In the meantime, "The Cock-Eyed World" has been released in Quebec and has created a sensation during its first run in Montreal. Announce Engagement (Special to the Herald-World) PHILADELPHIA, Oct. 29.— Announcement has been made of the engagement of Miss Doris Hettie Einstein, daughter of Abe L. Einstein, director of publicity of the Stanley Company of America, to Joseph Shaw Livingston, of Philadelphia. They will be married November 6. SECURITIES PRICE RANGE NEW YORK STOCK MARKET Sales High American Seating „ 1,600 32% Brunswiek-Balke-Collender 16,000 35 Consolidated Film 24,200 22% Consolidated Film, pfd.._ _ 10,200 25 Eastman Kodak 77,800 240 Do. pfd _ _ „ 10 123% Fox Film "A" 65.100 93% Loew's, Inc _ _ 44.500 58% Do. pfd. x. w 1,000 88% Do. pfd. w. w _ 400 92% Metro-Goldwyn-Mayer, pfd 900 24% Motion Picture Capital 2,700 31% Paramount „ 192.200 76% Pathe Exchange 60.600 8 Do. "A" _ 14,900 15 Radio Keith Orpheum 183,200 30% Shubert Theatres 12,500 25% Week Ending October 26 Sales Low Close StranIey C^mpanJA ;; ,n ,ft Warner Bros. A _ 3o7,500 ?^y2 H Do. pfd 4,400 lly 21^ CHICAGO STOCK MARKET 211 224 Balaban & Katz 150 123% 123% Marks Bros. cvt. p 1,250 70 81 50 55 NEW YORK CURB 87 88% 89% 89% Columbia Pictures 5,100 9414 94 XL Film Inspection Meh 200 18 21% Fox Theatres "A" 60,100 -n 7.nJ General Theatre Equipment 33,900 , Loew's, rts. 1,100 Au „2f Do. war 400 10% 11% National Screen 1,200 18% 25% Sentry Safety _ 5,600 23 25 Trans-Lux. Dv. P 12,600 High 33% 55% 48% 79 15% 29% 2 25 54% 24 27 20 9% 10 Low 30 40% 41% 76 14 27 2 20% 35 20 25 17%, 6 Close 33% 50% 42% 76 14% 29 2 22% 38% 20 25 17%