The Film Daily (1948)

i^onday, July 26, 1948 HC' DAILY )avid Wark Griffith )ies in Hoiiywood (Continued from Page 1) noved to the hospital Thursday. He ost consciousness and died Friday nT\ oxygen tent. He had lived in etr'^-^nent in recent years. ' Born in La Grange, Ky., David A^'ark Griffith was a stock and road •ompany actor and writer before starting a film career in 1907 as a jlayer with Edison and Biograph. By ;he next year he had become a Biojraph director, starting a long career in which he was responsible for the development of such motion jicture stand-byes as the close-up, ■.he flash back and the fadeout. While with Biograph he was responsible for the beginnings of the ilm careers of Arthur Johnston, the screen's first matinee idol, Mary iPickford, James Kirkwood, Lillian i and Dorothy Gish, Lionel Barrymore, .[jDouglas Fairbanks, Richard Barthel Smess, Norma Talmadge and others. An early exponent of the feature length film, Griffith's greatest success was "The Birth of a Nation," i-produced in 1914 and one of the high tfcgrossing motion pictures of all time. '* With Mary Pickford, Douglas Fairbanks and Charles Chaplin, he was a founder of United Artists, selling 'his interest in 1933. Freedom Train Trailer and Short in 10,000 Theaters More than 10,000 theaters to date have played the pre-Rededication Week trailer and the one-reel documentary, "Our American Heritage," during the "Week of Rededication" prior to the visit of the Freedom Train, it was announced yesterday by Ned Shugrue, national director of the American Heritage Foundation, sponsors of the Freedom Train. The co-operation of the film industry on the first ten months of the program of the Foundation and the tour of the Freedom Train has been outstanding, Shugrue added. National Screen Service, which is distributing the trailer and the documentary gratis as a public service, has been a key factor in promoting the program's success. nEUJ POSTS VERNON CARR, manager, Drive-ln, Sioux City, la. ARTHUR NEILSON, manager, Iowa, Sioux City. 0. V. BURNESON, manager. Hippo, Sioux City. HAROLD TEEL, manager, Orpheum, Terre Haute, Ind. BOB CAMPBELL, manager. Empire, Chrisman, III. WILLIAM WARING, manager, Drive-ln, Cobden, III. CECIL TUGGLE, manager. Trail Theoter, Coral Gables, Fla. WALTER ANKERBRAND, assistant manager. Tower, Miami, Fla. BERNARD BORNBAUM, Universal-International, salesman, Omaha. JACK SCHWIDELSON, salesman. Monogram, Omaho. Analysis Shows Para. Value Forced Theater Sale Might be ^^Blessing it (Continued from Page 1) Barney Balaban, Paramount president, that transformations within the industry loomed probable as a result of the U. S. Supreme Court's anti-trust decision and that the company planned to shrink its capital structure to compensate for any loss of theater holdings. Primary question raised by the present situation is how valuable are the company's theater interests and Lurie's appraisal is that "the going value of the theater properties is close to the current market price of the stock." A breakdown of the investment house's analysis reveals that the combined value of the company's affiliated theaters, wholly owned properties and investment in Du Mont Laboratories is even greater than the current price quotation of the common stock. The PWJ&C study evaluates the Paramount assets in this wise: "At the end of 1947 Paramount carried its investment in 'affiliated companies' — roughly 1,000 theaters that are partially owned — at $12,010,000 after a reserve of $8,685,000. Yet, the dividends received from these companies (whose debt is only $230,000) amounted to $11,347,000 in the past two years and was amply covered by earnings. Furthermore, these investments include the company's holdings of 603,000 shares DuMont Laboratories which in itself is worth almost $7.8 million ($1.12 per share Paramount) at going market prices. In this connection, there is a possibility that a restrictive ruling of the FCC may make it advisable for Paramount to dispose of its DuMont holdings. More important, if the 1944-1947 average dividend of $4.4 million from 'affiliated companies' is capitalized at 10 per cent, Paramount's miscellaneous theater holdings might be said to be worth $43,640,000 or $6.25 per share. "Similarly, Paramount's balance sheet valuation of its wholly owned theater chain — over 500 debt-free theaters — seems to be far below potential market value. In large part, this is due to the fact that current balance sheet figures reflect values established during the reorganization period of 1932-35 — when real estate prices and corporate earning power were at a low level. (The operating results of these subsidiaries are included in the consolidated income account— and the balance sheet of course includes their fixed and current assets. In contrast, the theaters ii) which Paramount has a minority interest are carried as an investanent while the income account only reflects actual dividends received.) At any rate, data on file with the SEC discloses that the investment in this group of subsidiaries is carried by the parent company — the film producer—at $46,276,000 after a reserve of $30,997,000. These subsidiaries paid $11,477,000 of dividends to the parent company last year while the average dividend in the last four years was $8.6 million. If this return is capitalized at 10 per cent the properties might be said to be worth $86,360,000 or $12.36 per share. "In addition to the foregoing, the parent company — tJie film producer — had a net working capital of $53.8 million at the year end and a funded debt of $10 million, leaving $43.8 million available for the common stock. Thus, if we were arbitrarily to write ofi' the film producing properties as worthless — which of course is absurd — Paramount's liquidating value can be estimated as follows: Equity in net working capital, $6.28 per share; minority theater interests, $6.25 per share; DuMont holdings, $1.12 per share; wholly owned theaters, $12.36 per share; or a total of $26.01 per share. One qualifying observation must be noted: The figures used as a base for our calculations do include some non-theater interests; we doubt, however, that they will have more than a 10 per cent bearing on the estimates." At Friday's closing price of $22.25 per share for Paramount common stock, the company's theater and television holdings alone were worth $3.76 more than the share evaluation on the New York Stock Exchange. Eaiing Plans Series Of Aii-Lo(ation Pix London (By Air Mail) — Ealing Studio's answer to the shortage of British studio space, and the increased demand for U. K. product will be a series of subjects to be made wholly on location. At least two all location pix are definitely scheduled by the studio, of which Sir Michael Balcon is production head, and others are contemplated. Already in production is "Another Shore," which Ealing is producing in Ireland. Studio, however, will make its most elaborate away from the studio film in Barra, to which island a company of 60 will be moved to produce "Whiskey Galore." Prefabricated sets and studio equipment will be on hand. While most of the shooting will be out of doors, necessary interiors will be shot in a hall rented for the purpose. WBRC Tele Plans Wait On Film Interests Move Birmingham, Ala. — WBRC has prepared television studios and purchased complete equipment. Installation is being delayed awaiting a move locally by the major film companies interested in television. ^ AND YOUR COMMUNITY TO SEE <W SHOW... "LETTER TO A REBEL How the American heritage of freedom and enterprise worlcs in your own tommunity. "The American story of freedom, abundance and opportunity is the greatest drama in the world , today. It is a story that should never be taken for If / granted. That is why the Motion Picture Association commends this picture to you." ERIC JOHNSTON ■0^ THIS IS AMERICA Produced by RKO Patlie See your nearest RKO Radio Exchange