Motion Picture Daily (Oct-Dec 1934)

10 MOTION PICTURE DAILY Friday, December 21, 1934 A 5-Year Financial Picture Washington, Dec. 20. — The following table, prepared by the Washington bureau of Motion Picture Daily, traces and gives details of corporate returns of theatres and producers from 1928 to 1932 inclusive as filed with the Internal Revenue Bureau : Film Houses Reporting Net Income PRIOR YEAR YEAR NUMBER GROSS NET LOSS TAX 1928 1,219 $293,079,000 $34,009,000 $1,778,000 $3,627,000 1929 1,293 378,663,000 41,044,000 1,972,000 4,105,000 1930 1,295 394,681,000 43,133,000 2,218,000 4,613,000 1931 1,167 276,519,000 26,005,000 2,365,000 2,638,000 1932 587 180,374,000 13,683,000 257,000 1,814,000 Film Houses Reporting No Net Income YEAR NUMBER GROSS DEFICIT 1928 948 $114,763,000 $12,364,000 1929 1,046 129,775,000 18,650,000 1930 1,025 118,423,000 13,390,000 1931 1,148 208,133,000 21,582,000 1932 , 1,995 325,116,000 73,019,000 Other Theatres Reporting Net Income PRIOR YEAR YEAR NUMBER GROSS NET LOSS TAX 1928 433 $137,014,000 $9,595,000 $ 591,000 $1,022,000 1929 323 63,007,000 7,986,000 1,402,000 694,000 1930 239 28,898,000 3,679,000 485,000 330,000 1931 182 18,764,000 1,398,000 112,000 130,000 1932 78 9,740,000 1,307,000 230,000 147,000 Other Theatres Reporting No Net Income YEAR NUMBER GROSS DEFICIT 1928 503 $67,742,000 $11,443,000 1929 443 40,802,000 8,485,000 1930 403 38,693,000 8,236,000 1931 343 33,147,000 7,532,000 1932 341 27,664,000 22,009,000 Producers Reporting Net Income PRIOR YEAR YEAR NUMBER GROSS NET LOSS TAX 1928 106 $219,254,000 $19,246,000 $2,639,000 $1,938,000 1929 101 280,303,000 50,238,000 2,202,000 5,330,000 1930 84 357,137,000 31,835,000 871,000 3,690,000 1931 54 29,696,000 2,698,000 44,000 318,000 1932 44 14,349,000 1,145,000 181,000 135,000 Producers Reporting No Net Income YEAR NUMBER GROSS DEFICIT 1928 100 $11,012,000 $2,136,000 1929 142 63,142,000 5,838,000 1930 124 53,563,000 8,447,000 1931 145 412,252,000 11,372,000 1932 151 176,446,000 31,344,000 Fox Theatres Claim Out of New Met Plan (.Continued from page 1) plan makes no provision for settlement of the Fox Theatres claim except to admit it to the same general status of other unsecured creditors who, according to the plan, may share pro rata in any liquidation of unmortgaged assets of Fox Met. All of Fox Met's 77 theatre leaseholds and eight fee properties, together with most of the cash on hand, are included in the mortgaged assets which are subject to the bondholders' claims amounting to $12,450,000. Unmortgaged assets are understood to be inconsiderable in amount. The plan provides that the reorganized company shall disaffirm its lease on the Audubon and shall surrender its leases on the Atlantic, National and Terminal in Brooklyn. In the event of a sale of Fox Met by May 1, 1936, the new company reserves the right to take over the Randforce interest in the Empress, Marcy and Rolland, Brooklyn, but, subject to possible litigation at the time of a sale, may not be able to deliver to a purchaser Skouras's Valentine and Crotona, in the Bronx, and the Plaza, Englewood, N. J., which, Skouras claims, are not subject to surrender. Capitalization Stays Unchanged Capitalization of the new company remains the same as proposed in the original plan of last spring, that is, there will be $6,880,350 of new secured five per cent debentures, due in 1945, and 276,214 shares of common stock. All of this is issuable to the noteholders with the exception of $650,000 of debentures to be reserved for subscription by the operators and the 27,000 shares of common stock issuable to Fox Film. Noteholders will receive in exchange for each $1,000 of their claims, $500 of new debentures, 20 shares of new common stock, $100 cash and a registered warrant for a pro rata share in unmortgaged cash, which is subject to later liquidation. The only change in this provision is that the original plan provided for payment of $50 cash, instead of $100. Due to a provision in most of the Fox Met theatre leases permitting landlords to cancel in the event of receivership or bankruptcy, the new Fox Met company is issuing only 50 per cent of the present debentures outstanding, and interest on these for the first three years will be payable up to a five per cent maximum only out of net earnings. Interest after the initial three-year period will be at a fixed five per cent, whereas interest on the present bonds is six and one-half per cent. These interest modifications, sponsors of the plan say, will reduce the hazard of losing leases through financial difficulties to a minimum. An election of officers of Fox Met is scheduled to take place within the next few days, as is the filing of the completed plan with the Federal court. Stock Suit Against Fox Gets Dismissal Supreme Court Justice Samuel I. Rosenman dismissed yesterday an action by three Fox Film stockholders against 21 individuals and six corporations asking for return of $4,000,000 profits alleged to have accrued through sale of the company's stock subsequent to April 17, 1930, as well as unspecified damages held to have resulted from the transaction. The court ruled any profits that may have been made should have gone to General Theatres Equipment, not to Fox or individual members of the stock syndicate. Lewis Heads Samjax Emanuel Lewis has been elected president of the Samjax Corp. He replaces Jacques Koerpel, resigned. Samjax Corp. operates the Gaiety. Lewis will change the house policy from straight films to a stage and screen program. Huge Poster Drive Is Set by Industry (Continued from page 1) Hays organization. The posters, which will be mailed out at monthly intervals, will be in the regulation one-sheet size, 28 by 42, and each will carry "a message dramatizing vividly the service of the screen to all types of people." The poster series is in charge of a committee composed of Howard Dietz, S. Charles Einfeld, Paul Gulick, Robert M. Gillham, Charles E. McCarthy, Hal Home, S. Barrett McCormick, Herschel Stuart, P. L. Thompson and Gordon S. White. M. Leone Bracker is the artist. Kuykendall Is For Zoning to Preserve Code (Continued from page 1) conditions and to preserve the code, much of which is based on that provision," Kuykendall said. "It is difficult, but merits all the effort it requires. I'm sure we will find it a cooperative effort. "Also, in my opinion," Kuykendall declared, "the clause covering interference with leases must be retained even though it may not be enforcable as it now reads. It has been restrictive in lessening offenses so far, and we must find a way to put teeth into it for the protection of all. It is necessary to fair trade practices." Kuykendall's statement was given yesterday before he left to spend the holidays at his Columbus, Miss., home. Smalley Lease Case Is Heard in Capital (Continued from page 1) ton after the Albany grievance board and Code Authority had been unable to come to a satisfactory decision. Smalley had possession of the house for a number of years. His lease expired in October, and prior to that time the owner sold it to the Glove City Amusement Co. Smalley brought a claim of interference with pending negotiations, and also applied to the courts for an injunction. The case is one of two out of 15 involving the interference clause with which the Code Authority has been unable to deal. The decision will be awaited with interest in view of the recommendation of Campi for elimination of the provision from the code on the ground that it is unenforceable. Thompson Reporting On Grievance Board Although not officially requested to make the report, George F. Thompson, impartial member of the New York grievance board, is making a resume of the board's activities during the year for submission to Compliance Director Sol A. Rosenblatt. Thompson's criticisms of the board will touch on the second and third string substitutions for original appointees, it is understood, which he will claim was not the intent of the government and which indicates the board is not functioning properly. Brandt Case Up Today Harry Brandt's clearance complaint against Warners for reduction of the 30 days' protection of the Regent, Newark, over the Rialto, same city, will be heard today by the New Jersey advisory committee. This is the case that was scheduled for Monday and postponed due to lack of a distributor representative. Brandt was considerably annoyed at the delay, having previously denied Warners a postponement. Columbians to Dine The Columbians, made up of Columbia employes, will hold their annual Christmas luncheon at the Edison on Monday.