Motion Picture Daily (Jan-Mar 1934)

MOTION PICTURE DAILY Who? What? When? 6 New Concerns For St. Louis Deal Are Set l Continued from page 1) take up the securities of the Central Properties Corp., which originally floated a bond issue of $4,500,000 against the Ambassador and Grand Central, while the second new company would exchange its bonds and stocks for those of the St. Louis Properties Corp., which floated an issue of $2,000,000 against the Missouri theatre and office building. There is now outstanding $6,503,875 unpaid principal and interest under both bond issues. A decree of foreclosure was entered by U. S. District Judge Charles B. Davis last December, but the date for sale by Special Master Nelson Cunliff has not been announced. Less Interest on Bonds The old bonds bore six per cent interest while the new bonds would carry five per cent and mature in 15 years, but there is a provision that the interest shall be paid out of net earnings to the extent they will suffice. Both corporations would be authorized to issue income bonds to the total principal amount of the present first mortgage bonds. In addition to the new income bonds the present bondholders would also receive voting trust certificates on the basis of one share for each $100 of deposited first mortgage bonds, but the aggregate of these is not to exceed 65 per cent of the capital stock of the new corporations. Of the remaining stock, 25 per cent would be prorated among first mortgage bondholders who deposit such securities as a reward for their cooperation. The remaining 10 per cent would be treasury stock to be issued to directors for qualification purposes. The capital stock of the new company to take over the Missouri would consist of 30,000 shares of $1 par value common stock, while the concern that will take the Ambassador and Grand Central would issue 61,500 shares of $1 par value common stock. Both would be placed with seven voting trustees. Will Guarantee Principal Under the plan Spyros P., Charles P. and George P. Skouras and C. M. Turley, who guaranteed the payment of some of the former first mortgage bonds, will also guarantee the principal of the new bonds in an amount equal to the share of the depositing first mortgage bondholders in the deficiency which will result from the sale of the mortgaged properties. It is expected that this new guarantee by the Skouras Brothers and Turley will be accepted in lieu of the old guarantee. The protective committee also -proposes to lease the Ambassador, Grand Central and Missouri for a period of 10 years. Under the Missouri lease the rental would be 15 per cent of the weekly gross with a guarantee of $1,000 and for the Ambassador and Grand Central the rental would also be 15 per cent of gross income with a minimum of $2,350 a week for the first two years, $2,550 a week for the next three (Continued I H. V. Harvey, representing unaffiliated first runs on clearance and zoning, is vice-president of the Harvey rtmusement Co., president of the Madera Amusement Co. and secretary of the Independent Theatre Owners Ass'n. He started his activities as an exhibitor in 1919, operating the Y\ M. C. A. theater at Mare Island, subsequently building and operating houses in Vacaville and Dixon in ly22. Harvey has been operating in Watsonville, his home town, for the past eight years and today is interested in five houses. His circuit includes the Exeter (450) in Exeter; National (500) and Madera (500) in Madera; Newman (350) in Newman and Pajaro (250) in Watsonville. George Nasser, representing unaffiliated subsequent runs on clearance and zoning, is a member of the firm of Nasser Bros. — seven all told — who operate six houses in San Francisco and two in Alameda, all second runs. Their local string includes the Alhambra (1,700), American (800), Castro (1,100), New Fillmore (2,200), New Mission (3,000) and Royal (1,440). The Alameda houses are the Strand (1,300) and New Alameda (2,300). Nasser has been in the theatre business about 15 years and is a members of the California Theatre Ass'n, which is an affiliate of the national M.P.T.O.A. Morgan Walsh, second exhibitor representing unaffiliated subsequent runs on clearance and zoning, got going as a theatreman 20 years ago, running a one man show. Subsequent years ; $2,850 for the next three years, and $3,050 for the final two years. Deposits of $105,000 in cash have been made. Two new corporations will also be organized for operation of the three theatres. Philadelphians to Fight Rental Boost (Continued from page 1) that star salaries have remained at a status quo, local men feel that any tipping of charges will be uncalled for. They maintain that an increased cost would mean an increased box-office tariff and they claim this would be fatal in these times. No official committee has been appointed yet to represent the local outfit, though one will be picked some time next week. Meanwhile, among the territory exhibitors who expect to make the trip are Lewen Pizor, George Aarons, David Barrist, M. E. Comerford, Lew Berman. Louis Berger, Morris Nemez and Eddie Connelly. K. C. Has Two Holdovers Kansas City, March 25. — All precedents for Kansas City were shattered as two attractions were held simultaneously for a third week. They are "David Harum" at the Fox Uptown and "Elysia" at the Publix Royal. The managements figured that it would be more advantageous than running in a new picture for I Holy Week. rom paije 3 ) ly, he joined Fox as a salesman in Umaha and later became manager of inat company s exchange in Los Angeles. He resigned to re-enter the tneatre field in San Diego and bought tne Warner franchise tor California. Later he sold this to become western district manager for the company. Walsh is credited with having introduced Vitaphone in this section, but leit Warners to take over the T. & D. Theatre in Oakland. As time went on, he became vice-president and general manager of the National Theatre Syndicate in association with George Mann, who is president. For the past three years, Walsh has been president of the Independent Theatre Owners Ass'n of Northern California. As general manager of Midland Theatres, Inc., of which Mann is president, Walsh is concerned with the operation of six theatres, which are the Liberty (450) and National (1,200) in Marysville; American (1,600) in San Jose; Modesto (1,000) and National (800) in Modesto, and National (800) in Woodland. W. W. Chapin, impartial member on clearance and zoning, is the publisher of the San Francisco Argonaut and has had a long career in the newspaper field. He was publisher of the Seattle Post-Intclligenccr and also of the San Francisco Call. In 1912, he bought the Oakland Enquirer and later became publisher of the Sacramento Union. Two years ago, Chapin purchased the Argonaut, a weekly local magazine, and succeeded in increasing its circulation from 5,000 to 18,000. He is a member of the Bohemian Club. Construction Picks Up Around Virginia (Continued from page 1 ) cost ; another, the Carrolton, is nearing completion; a third is projected in South Richmond, and the Apollo Theatre Corp. of Washington is trying to get approval for changes at the old Strand, so it can be opened as a colored house. Extensive rebuilding is expected at Virginia Beach as a result of the winter storm. B. F. Moore to St. Louis St. Louis, March 25. — B. F. Moore has been appointed manager for the Shubert-Rialto, which Warners will reopen on March 31 with "Wonder Bar." He comes here from Columbus, where he has been manager for an RKO house. Prior to that he had a roving commission for Warners. K. C. Gets "Wide Range" Kansas City, March 25. — First installation in Kansas City of Erpi's "wide range" equipment has been completed at Robert Rhodes' Gillham Theatre. 'Merry Frinks' New Title Hollywood, March 25. — W'arners have changed the title of "The Hapny Family" to "The Merry Frinks." Monday, March 26, 19 Board of 12 On Clearance, Zoning Sought (Continued from page 1 ) main board plans for one main board with three assisting committees. The code does not provide for an enlarged board of 12 in any zone, but if the authority approves, it is likely the division administrator will consent. Personnel of the Boston, Philadelphia. Portland and Minneapolis boards also has been referred back to committee. M. Higgins of Shamokin is now set in as first run independent on the clearance and zoining in place of Floyd Hopkins. Herbert J. Elliott and M. Rogassin also are tentatively named for posts. When the committee meets again Wednesday several shifts and replacements may be recommended for Campi's approval the following day. The finance committee also meets Wednesday to work on the budget. German Films Given Protection Promise (Continued from page 1) are capable of supplying the home demand for films "there is no need to look about for pictures of foreign origin." Measures for promoting German film exports were also promised by Goebbels and the hope was advanced that the admission tax on German theatres would be ended soon. Goebbels urged the producers to strive to reflect the "spirit of the new, young Germany" in productions, but to avoid "overemphasis on propaganda." RCA-Victor Issues New Sale Contracts Contracts for actual sale of RCA Photophone reproducers have gone into the hands of salesmen. The new selling policy, announced some time ago, went into effect last week. Exhibitors have been advised by E. O. Heyl, manager of the Photophone division, to hold all deals until they can get in touch with company salesmen. Insiders' Outlook (Continued from page 2) "Well, it's easier to make a deal with two checkers than one." An hour or so later he sailed on the Georgic. . . . ▼ Hollywood plot invaded the broad area of the Astor ballroom last Wednesday night when the ITOA installation dinner was interrupted by the unexpected appearance of Marty Farber. Generally known locally and very well known to some, Farber handed out a raft of summonses to exhibitors having trouble with exchanges, or, to be more accurate, the other wav around. . . . K ANN