Exhibitors Herald and Moving Picture World (Apr-Jun 1930)

6 EXHIBITORS HERALD-WORLD May 10, 1930 $5 5,000,000 Fox Film Corporation Secured 6% Gold Notes Due April 15, 1931 Price 100 and interest A Utter from Mr. IV. C. Michel , Vice President of the Corporation , is summarized as follows: Company: Fox Film Corporation is one of the largest and most prominent companies in the world engaged in the production, distribution and exhibition of motion pictures. Its product is distributed throughout the world. Fox Film Corporation has acquired from Fox Theatres Corporation the latter’s holdings of common stock of Loew’s Incorporated. Security: These Notes, in the opinion of counsel, are a direct obligation of the Company and are specifically secured under a T rust Indenture by the pledge of 660,900 shares of common stock of Loew’s Incorporated and all the capital stock of United American Investing Corporation, which has a substantial stock interest in Metropolis and Bradford Trust Company, Ltd., owners of 65% of the ordinary stock of Gaumont British Picture Corporation, and represents an investment on the part of Fox Film Corporation of $20,000,000. Equity and Assets: As at December 28, 1929, the pro forma consolidated balance sheet of Fox Film Corporation and wholly owned subsidiary companies, as prepared by independent auditors, reveals net tangible assets, without deducting this Issue, of approximately $157,208,511 (including over $9,800,000 of cash), an amount equivalent to $2,850 for each $1,000 of Notes. Earnings: The consolidated net earnings of Fox Film Corporation and subsidiary companies, available for interest requirements on this Issue, after maintenance, taxes (other than Federal income), depreciation, amortization and other deductions, including profits applicable to minority interests and interest requirements on the mortgage and funded debt of subsidiary companies, for the two fiscal years ended December 28, 1929, as reported by independent auditors, are given below: Year Amount 1928 $ 6,572,840* 1929 13,966,355* Annual Interest Requirements on this Issue 3,300,000 # The 1928 and 1929 figures are before the deduction of special charges consisting of obsolescence of silent films, scenarios and advertising accessories in the amounts, respectively, of $2,085,137 and $2,379,225. In the figure given above for 1929, profits on the sale of securities of $5,612,608 have not been included, nor have there been deducted certain nonrecurring charges aggregating $938,364. Management : The management of Fox Film Corporation will be vested in certain principal operating executives who have been responsible for the past success of the Company, augmented by the engineering and scientific staffs of General Theatres Equipment, Inc. This offering is made subject to the conditions more fully set forth in the complete descriptive circular , a copy of which may be had upon request. HALSEY, STUART & CO. INCORPORATED Dated April 15, 1930 and redeemable. Interest payable at the offices of Halsey, Stuart &. Co., Inc., in New York and Chicago. Interest payable October 15 and at maturity, April 15, 1931, without deduction for any Federal normal income tax not in excess of 1% per annum. Principal will be payable at the principal office of the trustee in New York. Coupon Notes registerable as to principal only, in the denominations of $1,000, $5,000 and $10,000. All statements herein are official or are based upon information which we regard as reliable, and, while we do not guarantee them, we ourselves have relied upon them in the purchase of this security. May 10, 1930.