The Film Daily (1930)

THE Thursday, February 20, 1930 i^E^ DiAILV WWR 1ST QUARTER NET REP0RTEDilT$5,629,108 (Continued from Page 1) lent to $2.07 a share on the common stock outstanding as of that date. This earning is compared with $2,917,724 in the three months ended Dec. 1, 1928 which was equivalent to $5.30 a share on the 550,000 shares of combined class A and common stock. While the profits for the period ended Dec. 1, 1928 included only earnings of companies then subsidiary to Warner Bros. Pictures, the earnings for the quarter ended Nov. 30, 1929 include the profits of all companies now subsidiary to the company. Warner Bros, on Nov. 30, 1929 had outstanding a total of 269,237 shares of preferred stock and 2,645,864 shares of common. iThree Features, 24 Shorts I From Colorart in 1930 j (Continued from Page 1) JBeggars of Bagdad," a musical production by Perry Newberry and L. B. Jacobs. Production of the new product is scheduled to start within 60 days. Directors and casts now [are being negotiated for. ' "Satanesque," a feature completed by the company last year and paitlv destroyed by the Consolidated Laboratory fire, has been recut and is in preparation for a summer release. Modified Plan is Presented by Bankers for Fox Companies Wheeling Exhibs Defeat Blue Law Enforcement I (Continued from Page 1) (instance the managers posted $500 Ibond upon being arraigned. ! Houses involved are the Virginia, Capitol, Colonial, Liberty, Rex, Victoria and Court Theater Changes Hands I Philippi, W. Va. — The American jhas passed out of the hands of John Seamone into those of Howard iLeary. I Pittsburgh House Wired I Pittsburgh — The Hiland has been Jvired. Bridgeville (Pa.) Closing , Bridgeville, Pa. — The Granada has jcen closed. syndicate, in addition to 9 per cent underwriting commission. At the same time action was taken by Fox interests to effect the changes m capitalization voted in September, 1929, by which the A stockholders will be represented on the boarjl by five directors, against seven by the Class B stockholders. Class A stockholders previously have had no representation on the board. The Stock Exchange received notice from the corporation of the proposed creation of 250,000 shares of 7 per cent cumulative convertible preferred of $100 par value and an increase in the authorized Class A common from 900,000 shares to 4,900,000 shares. Before the presentation of the modified plan, the Fox directors had forwarded to stockholders a letter transmitting the previously approved plan to be voted upon at the March D meeting. Stressing tlie fact that "it is the custom of exhibitors to purchase substantially their entire supply of pictures for a season during tlie period between May and August, and theater owners will not contract for their tilms with any source of supply which they believe yrtciuous," the directors urged the stoch holiieis to help avert a receivership by lining up with the BancamericaBlair group. The letters sent out by the Fox directors contained pro.xies, which the shareholders ai e asked to sign and return. Explaining the rejection of the alernative plan oflered by tlie Halsey, Stuart & Co. interests, the letter states that this arrangement "contemplates the exchange of both the Class A stock and the Class B stock of the corporation for common stock, all to be of one class, thus eliminating the present voting power oi the Class B stock. Such a change cannot be effected without the consent of the Class B stock. Neither William Fox nor any of the other holders of Class B stock whom the board of directors has been able to consult are willing so to consent. It also contemplates the deposit of all the new common stock under a voting trust, thus depriving the Class A stockholders of that share in the management of the corporation which the plan approved by the board preserves to them." (Continued from Page 1) VVitu regard to the Halsey, Stuart & Co. claims on tne future financing of Fox, the letter states : "trom conversations had with Halsey, Siuart, and tneir counsel, it was understood ihat u any plan were proposed whicn would provide lor tne payment ot tne ^12,U0O,UO0 ol notes due April 1 vvliich had been sold to the public by them, and the $15,000,UOU obligation to Jtlcctncai Research Products, they would otter no obstacie to its consummation, 'the enclosed plan does provide for paying all these debts in full. Never theless, upon its presentaiion to the court, witn the request that further adjournments of ihe receivership applications be bad to enable the stockholders to take action upon the plan, counsel for Halsey, Stuart stated that they had other interests in the situation tiian the mere payment of the corporation's one year notes, and suggested that they be given an opportunity to prepare and submit to the stocKholders some other plan than that which your board of directors have approved. Ha.sey, Stuart attempt to justify their position by the assertion of a 15-year monopoly of the right to sell your corporation's securities. Your corporation's counsel advise that no such right was ever legally created and that even if any such right had been granted by your corporation to Halsey, Stuart, they would have forfeited it when in open court they urged the appointment of receivers of your corporation." The letter to stockholders further states that Fox "faces over $45,000,000 of obligations matured or to mature within 60 days, in addition it has large commitments to meet during the current year, incurred in the acquisition of theater properties or in the building of theaters. Over $7,000,000 of judgments have been obtained by various creditors, and only the indulgence of these creditors at the earnest solicitation of U. S. District Judge Frank J. Coleman has prevented the complete break up of the corporation's property. "The present heavy debt was incurred primarily in the acquisition of the English Gauraont circuit of theaters and in assisting Fox Theaters Corp. to acquire a substantial block of common stock of Loew's, Inc., both of which acquisitions the board of directors believes will prove to be profitable. These purchases were made after con sultation with Halsey, Stuart and with the expectation that that firm would at the proper time effect a refunding of the short term indebtedness thus incurred. Failure to effect such refunding before the decline in market values of securities last autumn is the immediate cause of the corporation's financial embarrassment." Creating Illusion West Coast Bur. THE FILM DAILY Los Angeles — "The greatest handicap of the camera," said William Cameron Menzies in a talk to students of the Otis Art Institute, "is that it does not photograph as the mind sees. Hence, if a picturesque European street is to be reproduced, it is better to substitute a set that is the impression of that street as the mind sees it, slightly over-romanticized, simplified and over-textured." PHOTOPHONE APPOINTS 3 DISTRICT ExniBpsi^ Jl Piuladeiph. of Washington J^ ijCaaiToR. md Buffalo P 'TAe ?ndi of the East Coast" 1 lie "Home Town Papers" of A 600 tlieatie owners. The most intensively rc.id jou nals in the ind u s t r y — Keeping iierlast ngly at it for the 12th successive year. 1C0% coverage of a 35% territory! EMANUEL-GOOOW^N PUBLICATIONS > New York — Philadelphia — Washington ' Wa n Office. 219 N. BROAD ST., PHILA. Decision Benefits Macy The Macy Mfg. Corp. is "at liberty to manufacture, sell and use exponential horns without infringement," stated Schechter & Lotsch, counsel for Macy, yesterday, in connection with the decision of Jud-^e Mitchell, Supreme Court, that the company is not in unfair competition in trade, as alle.ged in a suit brought by Racon Electric Co. Horowitz Rejoins U. A. Indianapolis — Sam Horowitz, formerly with U. A. here and who left to enter the cloak and suit business, has rejoined the company as sales representative. "King of Kings" Suit Ended Judge Frank J. Coleman yesterday announced that there had been no plagarism on the part of Cecil B. De Mille's "King of Kings" for which Valeska Suratt had charged. Straus' First Named IVest Coast Bureau, THE FILM DAILY Hollywod — "The Danube Love Song^' has been named by Warner Bros, as the first original operetta to be written by Oscar Straus. Three new district managers have been appointed by RCA Photophone, Sydney E. Abel announces. George H. Wiley has been placed in charge of the Northern New York district, with headquarters in Buffalo. H. L. Pettey, for the last several months commercial representative for the company, becomes manager in Michigan, with headquarters in Detroit, A. R. Johnson, formerly commercial representative in MinneapoUs, is now in charge of the Chicago territory succeeding W. J. Bro-wn, who becomes a special representative for Northern Ilhnois and Southern Wisconsin. Strand Gets i'ilms First Under New Policy Plan Under a new policy pictures presented at the Beacon and Brooklyn Strand will be shown first at the New York Strand, states Harry I. Charmas, managing director of Warner Metropolitan theaters. This arrangement becomes effective tomprrow, when "Lilies of the Field," Corine Griffith's first all-talker, opens at the last mentioned house. Warners Plan Havana House Havana — Warner Bros, plan to build a 3,000 seat theater here. Pilkinton Joins U. A. Dallas — S. L. Pilkinton is a nevr salesman at the local United Artist* exchange. Sunday Shows in Athol, Mass. Athol, Mass. — Citizens here by a vote of 1,044 to 1,492 have approved Sunday shows. Local clergymen led the opposition. RCA for Terre Haute Terre Haute, Ind. — The Lyceum will open with Photophone equipment. FOR LEASE 5,000 Sq. Ft. nim Center Building Inquire Cross & Brown Co. 270 Madison Avenue New York City ^iNI« WE BUILD, BUY, LEASE, OPERATE OR MANAGE MOTION PICTURE THEATRES IN PENNA.-NEW JERSEY DELAWARE-MARYLAND] — DISTRICT OF COLUMBIAVIRGINIA AND W. VIRGINIA 1700 SANSOM STREET Philadelphia.Pa.