Motion Picture Daily (Oct-Dec 1936)

The Leading MOTION PICTURE DAILY Alert, Intelligent the Industry In All Branches VOL. 40. NO. 124 NEW YORK, TUESDAY, NOVEMBER 24, 1936 TEN CENTS Loew's Net of $11,076,822 Six Year High Year's Profit Equal to $6.79 on Common Loew's, Inc., and subsidiaries yesterday reported net income of 11,076,822.81 after all charges, for the fiscal year ended Aug. 31, 1936, the highest net figure attained by the company for six years, or since 1930, when the net income after all charges was $14,942,017.21. The 1936 net is equal to $81.02 per share on the preferred stock, and $6.79 per share on the common stock, which compares with $55.44 per share on the preferred and $4.53 per share on the common in the previous year. The net income for 1936 compares with a net of $7,579,744 for the year ended Aug. 31, 1935; $7,479,897 for 1934, and $4,034,289 for the year ended Aug. 31, 1933. The Loew's 1936 net was after the deduction of minority interests' share of $600,851.44, and Federal income taxes of $1,656,859.72. The net before taxes and minority interests' share was $13,334,533.97. The financial report revealed total operating revenues of $108,780,542.13, including theatre receipts, rentals and sales of films and accessories, grouped as totaling $105,390,621.80; rent income of $2,597,841.38, and miscellaneous of $792,078.95. The revenues total for 1936 com {Continued on page 9) Expect Paramount' s Statement This Week Paramount's favorable and long anticipated third quarter report may be issued lata* this week, it was stated yesterday following the return from the coast of Barney Balaban, president, and Stanton Griffis, chairman of the executive committee. Both executives expressed enthusiasm over the functioning of the Paramount studio under the direction of Adolph Zukor and William Le Baron. No meeting of the Paramount board will be held this week, the November regular meeting having been postponed to Dec. 3. Rowland to Make 8 For Grand National Richard A. Rowland will make eight tinder his Grand National contract, four of them this season. The deal with Victor Schertzinger and Zion Meyers, reported in Motion (Continued on page 9) RKO Reorganization Plan Presented; Hearing Dec.23 Ostrers Intend to Retain G.B. Control, Says Isidore By BILL ORNSTEIN "The Ostrers intend to maintain control of G. B. and no one else will have it," Isidore Ostrer, president of' the company, emphatically declared upon his arrival yesterday on the Normandie for conferences with Joseph M. Schenck and Sidney R. Kent. A. C. Blumenthal, who has been playing an active part in the stock negotiations of G. B., was a passenger on the boat, but would not respond to questions, referring them all to Ostrer. "We don't intend to sell control," the latter added. "The Ostrers are in the film business to stay. I don't think, personally, that we will sell our 'A' shares in Metropolis & Bradford Trust, the holding company for G. B." Placing an interpretation on Maxwell's sphere of influence in G. B. which runs completely contrary to lengthy cabled accounts from London, Ostrer minimized the former's impor No; a Film Man As he passed through the customs yesterday, Isidore Ostrer attracted the attention of one of the guards because of his bristle-like hair. "Is that guy a violin player?" he asked one of the reporters. tance in the company's affairs with this statement : "He is a minority stockholder like anyone else. He has 240,000 of the 1,000,000 outstanding "B" shares; doesn't have a single vote and is not a director in either M. & B. or G. B." Scotching reports current for some time, Ostrer said Maxwell positively does not hold an option on the 5,100 "A" shares in M. & B. That such a deal was part of the sale of the "B" (Continued on page 18) London Films Plans 12 for $7,500,000 London Films will produce 12 "big films" at a cost of $7,500,000 next season, Etienne Pallos, general sales manager, stated upon his arrival yesterday on the Normandie. This is an increase of two pictures and $2,000,000 over the current season's program. Pallos intends to spend about three months in the United States, particularly to sign writers and directors, he said. He will remain in New York until the next board meeting of United (Continued on page 18) Everett Promoted in Changes by Republic H. H. Everett has been named district sales manager for Republic by J. J. Milstein, vice-president in charge of sales, as the first of four similar appointments. Everett moves up to his new post from that of manager of the Charlotte branch, to which Cy Dillon, Charlotte salesman, succeeds him. Everett will have his headquarters in Charlotte and handle Atlanta, Memphis, Tampa, New Orleans, Dallas, Oklahoma City and Little Rock. Broadway Gross Up, Tax Figures Reveal Washington, Nov. 23. — A sharp upturn in Broadway grosses was revealed today with the publication by the Bureau of Internal Revenue of figures on October admission tax collections in the Third New York district, which jumped to $578,974 from $517,180 in September. October collections on box-office admissions, the bureau revealed, were $537,411 compared with $489,456 in September. Other collections included $2,005 on free or reduced rate admissions, against $1,714; $4,167 on tickets sold by brokers, against $1,699; $30 {Continued on page 9) "U" Elects Normanly For Vice-Presidency Hollywood, Nov. 23. — J. P. Normanly today was named vice-president of Universal. The post automatically gives him a place on the board of directors. Normanly was elevated a short time ago to general managership in charge of studio finances. This position he retains. Proposed Capitalization $33,000,000; Allowed Claims Met in Full A reorganization plan for RKO was presented yesterday to U. S. District Judge William Bondy and a first hearing for creditors was set for Dec. 23. The plan proposes an exchange of new securities for allowed creditors' claims on what appears to be a virtual dollar-for-dollar basis. The proposed new capitilization is $33,000,000, comprised of an authorized $18,000,000 issue of 5l/2 per cent sinking fund convertible debentures, of which $12,718,500 is to be outstanding on consummation of the plan ; an $11,000,000 issue of six per cent cumulative convertible preferred stock of $100 par value, of which an estimated $6,000,000 will be outstanding, and 4,000,000 shares of no par value common stock, of which a minimum of 2,163,148 shares would be outstanding on the consummation of the plan. The plan offers to holders of old RKO debentures $100 in principal amount of new debentures plus two shares of new common stock for each $100 principal amount of old debentures including unpaid interest coupons amounting to $24.57. The principal amount of such debentures outstanding is $12,718,500. RKO's secured gold notes presently (Continued on page 8) RKO to Simplify Corporate Setup « Simplification of the corporate structure of RKO is to be undertaken in advance of the consummation of the company's reorganization, with present plans calling for the merging of seven production and distribution subsidiaries with RKO Radio Pictures, Inc., the principal subsidiary. RKO Distributing Corp. is the largest company to be merged. Ned E. (Continued on page 8) No Paper Thursday Motion Picture Daily will not publish on Thursday, Nov. 26, which is Thanksgiving Day.