Motion Picture Daily (Oct-Dec 1934)

MOTION PICTURE DAILY Wednesday, December 5, 1934 Seek a Fixed Policy to Bar Free Programs {Continued from page V attendance, has a retarding effect on production quality. The resolution stated that the touring show placed Standard Oil in direct competition with established theatres. Industry opposition, it is made clear, is not being directed solely against the Standard Oil troupe, which will present two-hour free shows in more than 25 cities during the next 10 weeks, according to the present plans. The opposition seeks permanent protection for theatres against the recurrence in the future of such large scale, free entertainment which, it is said, is becoming increasingly prevalent throughout the country. It was pointed out that Gulf Refining Co. presented a similar traveling show on the Pacific Coast last summer and that large cities are being continually treated to this form of competition. In Boston, early this week, Scott Furriers staged an amateur talent contest at the Boston Opera House which played to 4,000 free admissions and turned away another 1,000. The performance ran from 7 :30 to 11 :00 with the final hour of the show being broadcast over the Yankee network. Probable Course of Action The form of the opposition, not yet set, may include efforts to have enforceable restrictions added to vaudeville and carnival NRA codes which prohibit such performances except at a fair admission price. Ed Kuykendalh M. P. T. O. A. president and chairman of the Code Authority committee on unfair competition, stated yesterday that his committee was handicapped in opposing such enterprises because of _ the absence of enforceable code provisions covering that type of entertainment and the refusal of its sponsors to cooperate with theatre owners. "Either these offenders must_ be made to comply with provisions similar to those contained in the film code," Kuykendall said, "or the restrictions on theatres must be removed from our code. It is unfair for theatres to be made to comply to rules of fair competition when correlated enterprises are not. This includes baseball parks, carnivals, theatre radio broadcasts and free advertising programs as well as the Standard Oil show." The Standard Oil troupe features Guv Lombardo and orchestra, Cross & Dunn, Jane Abbott and other acts It played Concord, N. H., last night opens at Providence tomorrow night and Boston, Saturday night. Paramount 's Future Picture Lowe Is Moved Up Washington, Pa., Dec. 4. — Ray Lowe, for three years and a half man ager of the Warner, Pittsburgh, has been named city manager for the cir cuit here. The aopointment was made bv Harry Kalmine, division head. To Co-star Garbo, March Hollywood, Dec. 4. — Greta Garbo and Fredric March will be co-starred by M-G-M in Tolstoi's "Anna Ka renina." David O. Selznick will pro duce and George Cukor direct. What follows is the estimated consolidated pro rata balance sheet of Paramount Publix giving effect to the consummation of the proposed reorganization plan. It is based on financial statements as of Sept. 29, 1934, and reflects suggested new reserves: Assets Current Assets Cash on hand and in banks Marketable Securities at cost (market value— $928,037.50) Notes and Accounts Receivable (film customers and sundry) less Reserves on books Other Working Assets (largely convertible into cash within one year, but which must be immediately replaced in operation of business) Inventories Advances to Outside Producers less Reserves on books $15,456,787.43 893,533.50 3,826,275.16 $ 20,176,596.09 $14,612,579.22 456,424.34 15,069,003.56 Total Working Assets Investments in and Advances to Affiliated Companies (including companies in receivership or bankruptcy, the common stock of which is substantially wholly owned by Paramount Publix Corporation) (a) Total by Paramount Publix Corp. Less: Reserves (in respect of companies for which financial reports as of September 29, 1934, are available) equal to excess of such investments and advances over net tangible value thereof on books of such affiliated companies not in receivership or bankruptcy and over estimated value thereof in respect of affiliated companies in receivership or bankruptcy (b) Total by Consolidated Subsidiaries of Paramount Publix Corporation.. Add: Excess (in respect of companies for which financial reports as of September 29, 1934, are available) of net tangible value of such investments and advances on books of such affiliated companies over amount thereof as carried on books of consolidated subsidiaries $ 35,245,599.65 $33,148,300.60 19,536,311.90 $13,611,988.70 $ 7,828,764.00 1,871,116.49 9,699,880.49 Fixed Assets Land, buildings, leases and equipment — book depreciated value Land, buildings, leases and equipment, the mortgages, etc. on which are in process of reorganization — book depreciated value Deposits to secure contracts and in connection with litigation. Prepaid Expenses Bond Discount and other Deferred Charges $61,804,967.55 24,336,750.40 23,311,869.19 56,141,717.95 1,322,200.91 1,136,036.17 1,612,495.79 $148,769,919.66 Liabilities Current Liabilities Current Liabilities of Subsidiaries, per books (excluding contingent claims of indeterminate amount) $ 5,505,286.56 Capital Liabilities of Subsidiaries past due, due on demand and due within one year (excluding capital liabilities which are in process of reorganization) 3,127,322.23 Capital Liabilities (and net accruals in connection therewith) which are in process of reorganization which will be due within one year when reorganized 1,180,703.56 1934 Federal Income Tax Reserves of Subsidiaries (estimated) i. 525,301.71 $ 10,338,614.06 Other Liabilities of Subsidiaries Mortgages, bonds and purchase money obligations due after one year $23,246,244.74 Estimated proportion of capital liabilities which are in process of reorganization which will be due after one year when reorganized *18,830,562.55 Advance Payments (self-liquidating) and Reserves 1,411,303.28 43,488.110.57 TwentyYear 6% Sinking Fund Debentures, approximately **27,110,000.00 Total Liabilities $ 80,936,724.63 Minority Stockholders' interests in Consolidated Subsidiaries 5,900.243.43 Suggested New Reserves probably to be applied to reduce certain items of investments in and advances to affiliated companies, as reserve against book value of certain fixed and other assets and as new general reserve 14,000.000.00 Cumulative Convertible 6% First Preferred Stock (par value $100 per share), approximately **27,110,000.00 Cumulative Convertible 6% Second Preferred Stock (par value $10 per share) **6,441,805.70 Common Stock (1,610,451.43 shares) **14,381,145.90 *This item includes amounts which may become due within one year when issues are reorganized, although no estimate of such amount is now available. $148,769,919.66 The above balance sheet utilizes in the main information furnished by the accounting staff of the Debtor and its subsidiaries, and is without audit. Assets are reflected at book figures without regard to realizable values, except as stated above. Items of good will have been excluded from the above balance sheet. The above balance sheet, in which suggested new reserves are reflected, has been prepared only for the purposes of the proposal of the Plan in the Reorganization Proceeding and is not binding upon the Board of Directors in establishing the balance sheet of the New Company. As stated in the Plan, the question of abandonment or other disposition of certain assets Li i (.Continued on page 9) Cut in Extras Code Gain on Coast — Flinn (Continued front page 1) enough work for only a handful of extras and the rest received an average of only 26 days' work last year. They had to be supported by charity. Only 450 are more or less regularly employed. How to stabilize the situation presented a difficult problem, Flinn said, but he believes the new plan will be highly satisfactory. Extras on the new list all qualify because of the amount of work given them in the past. Studios will be limited to the list, which will be a permanent registration. Flinn's Hollywood observations led him to believe code restrictions on relatives' employment, scheduled for a Washington hearing this month, should remain as a measure to alleviate the employment situation. Flinn stayed here over night. He will reach New York Wednesday morning. Campi is preparing to take over code administration of a group of 4,000 performers representing actors, dancers and vaudevillians who play picture houses, said Flinn. Four boards will be set up in New York, Boston, Chicago and Los Angeles, with theatre men actors, bookers and vaudeville agents comprising the personnel, Flinn said. The stage players' problems primarily concern wages and hours. The code has met with widespread satisfaction and Campi is working well within its budget., Flinn asserted, adding that none of the 22,000 grievances filed to date has been yet taken before the NRA compliance board. General employment in the industry is very good, Flinn reported. He predicted an early increase in box-office prices. Product Award Puts Point Up to Campi The question of whether a distributor should be compelled to give up product to an account it has not dealt with when it is satisfied with the exhibitor to whom the product is sold will be an important highlight today when a Campi appeal committee hears the case of Joe Sicardi of PlainfiekL N. J., against Walter Reade's Strand. Oxford and Paramount in the same city. Several weeks ago, the New York grievance board found Reade guilty of overbuying and awarded Sicardi 7C pictures. Reade was to draw up two lists of 70 pictures and the Libert}' could select which list of product he wanted. Sidney Samuelson acted as attorney for Sicardi. Distributors hold that they cannol be told with whom to do busines; when they are satisfied with account; sold. Several representatives of major companies will raise this pour when the hearing takes place this afternoon. Levy Signs Circuits Jules Levy, RKO general sale; manager, has closed deals with th< Saenger Theatres, Inc., and the Mullins and Pinansky circuit for his company's entire 1934-35 output.