Motion Picture Daily (Oct-Dec 1936)

Tuesday, November 24, 1936 MOTION PICTURJE DAILY RKO to Have Cash on Hand Out Hollywood Way Of 7 Million RKO will have estimated cash on hand of $7,358,276 on the consummation of its reorganization, a pro forma consolidated balance sheet based on financial statements as of Sept. "26, last, giving effect to the plan, sets forth. Cash on Sept. 26 amounted to $6,558,276. The increase of $800,000 indicated is from the sale of a sufficient amount of new RKO common stock to provide $1,600,000 cash, $800,000 of which is to be used to retire the outstanding secured gold notes of the company, according to the provisions of the plan. The cash increase will give the reorganized company total assets of $66,852,329. Current and working assets are listed at $16,630,982, including picture inventories, less amortization of films released, amounting to $7,920,222. Capital assets, including land, buildings and leaseholds are carried at $44,129,781. Investments in affiliated and other companies are listed at $4,014,050. Sinking Fund Planned Current liabilities are listed at $4,243,151. There will be outstanding $12,718,500 of Sy2 per cent sinking fund convertible debentures of an $18,000,000 authorized issue. With the retirement of the RKO gold notes which are secured by all of the working assets of the company including the studio, RKO would again regain this property. The new debentures are not a secured issue but provision is to be made for a sinking fund for their gradual retirement by applying annually 10 per cent of the net earnings after payment of interest on the debentures. They will mature 10 years after the first of the month following the confirmation of the plan. They are to be redeemable at any time at principal amount and accrued interest plus a premium scaled from five per cent in the first five years to one per cent thereafter. They are convertible at any time into five shares of new common. Mergers Provided For Provision is made in the plan for the exchange of the new RKO securities for the securities of any company with which RKO might be "merged or consolidated" at some future date. The reference is reminiscent of reports current at the time Atlas Corp. and Lehman Bros, first acquired their RKO holdings from RCA that the two financial companies planned an eventual merger of RKO and Paramount. They are both heavily interested in the latter company, as well. The reports have been denied a number of times by officials of both financial companies in hearings before the Securities Exchange Commission. The new preferred stock is convertible into three and one-third shares of new common and, likewise, is callable at any time at $100 plus accrued unpaid dividends. Of the authorized 4,000,000 shares of new common, 2,163,148 shares will be issued to creditors. Of this amount holders of old RKO stock will receive 1,288,778; 500,000 shares will go to Rockefeller Center, 254,370 shares to Hollywood, Nov. 23. — Edward Alperson and Sidney Biddell left by plane today for New York. They stated that they have closed for Grand National product with 3,000 accounts apart from the contracts with such major circuits as Loew, Fox, Butterfield, Central States, Dickinson, Fabian, Dent, Hines, Comerford, Great States, Warner, Publix, RKO, Skouras, Thalheimer, West Virginia Randforce, Schine, Wometco and Midwest. B. F. Zeidman has decided to change the title of "St. Elmo," because so much new material has been inserted that little is left of the Augusta Evans Wilson novel. The new name has not been picked. Harry Sherman to start "Bring Me His Ears" Nov. 30 at Kernville. . . . Radio to start "Robber Barons" with Cary Grant, Edward Arnold, Jack Oakie and Frances Farmer, Dec. 1. . . . Beulah Bondi given term pact by Paramount. . . . Now working in "Souls at Sea" . . . Universal borrows Henry C. Potter, director, from Samuel Goldwyn. . . . Assignment to be made soon. . . . Universal to start "The Road Back" Dec. 7. . . . Edmund Grainger associate producer and James Whale director. George Jessel paid line charges so Whittier-Redlands game could be broadcast by KNX. . . . George was in bed with the flu. . . . Paul Malvern scouting for "Short Haul" location, Trem Carr's next with John Wayne. Ned Dobson, Republic talent scout, holders of old debentures, and 120,000 shares to holders of general claims. A sufficient number of shares to raise $1,600,000 will be underwritten by Atlas Corp., which will also accept common stock in payment for its reorganization services, which included the drafting of the plan. While the common is carried on the pro forma books at $1 per share its market value is unknown at this time and will, of course, be determined only by the company's earnings after reorganization. An indication of the present value placed upon the new shares by the reorganizers is given in a statement in the plan which provides for the issuance of option warrants to executives and employes of RKO to purchase the stock at $10 per share even prior to consummation of the plan. The option price, ordinarily, is figured at less than the anticipated market price. One share of the new common will be issued for two shares of the old common, which closed at $9 on the N. Y. Stock Exchange yesterday, a loss of three-quarters of a point. The old RKO debentures closed at 102*4 a gain of one and one-half. Urges Bank Night Study Jackson, Mjss., Nov. 23. — sweeping grand jury investigation of Bank Night as used by local theatres was foreshadowed here in the charge to the new Hinds County Grand Jur by Circuit Judge Julian Alexandria. The judge urged study of all violations of state laws against liquor selling, gambling and lotteries. Althoug' he did not mention Bank Night specifically, the implication was unmistakable. resigns. . . . Paul Muni borrowed from Warners by Radio to co-star with Miriam Hopkins in "Escadrille." + Casting — Margaret Lindsay gets feminine lead in "Slim" ; Beryl Mercer added to "Call It a Day," Warners. . . . Ward Bond and Ted Oliver in "When's Your Birthday," David Loew. . . . Edwin Mordaunt in "A Doctor's Diary," B. P. Schulberg. . . . Murray Kinnell in "Captains Courageous," Frank Reicher and Sara Haden in "Under Cover of Night," Lumsden Hare in "Parnell," all at M-G-M. . . . Victor McLaglen, Sir Guy Standing, Walter Connolly, June Lang and Robert Kent in "Nancy Steele Is Missing," Twentieth Century-Fox. Barton MacLane in "The Prince and the Pauper," Warners. . . . Guy Kibbee, Una Merkel, Lynn Overman and Thurston Hall in "Once Over Lightly," Radio. . . . + Story Buys — W alter Hackett's, "The Fugitives," a play, acquired by Twentieth Century-Fox ; "Good Morning Philipesque," an original by Dr. Robert A. Bermann and Lin S. Root, by Radio. . . . Jesse L. Lasky to produce. + Title Change — "The Mysterious Crossing" is new title for "Murder on the Mississippi," Universal. Broadway Gross Up Tax Figures Reveal (Continued from page 1) on permanent use or lease of boxes and seats, against nothing ; and $35,360 on admissions to roof gardens and cabarets, against $24,312. The October collections in the Broadway district represented a gain of $215,613 from the season's low of $363,362, recorded in August, bureau records show. Rowland to Make 8 For Grand National (Continued from page 1) Picture Daily on Saturday, calls for six. Schertzinger will do three, all musicals, and will direct them. Meyers will make a trio of dramatic subjects and may direct one of the productions. Grand National in Deal Grand National has closed a deal for product in 16 towns in Iowa and eight in Nebraska with Central States Theatres Corp. Lou Levy, Des Moines branch manager, handled negotiations. Hamilton Prizes Gain Hamilton, O., Nov. 23. — The Palace and RialtO, Southio units, both playing double features, have inaugurated a Bank Night on Tuesday of each week. The Palace operates a Country Store on Thursday nights. The Paramount, parent unit of the chain, has been operating Sweepstakes for several months in addition to Encore Nights each week, and an occasional stage show engagement. 9 Loew's Net of $11,076,822 Six Year High (Continued from page 1) pared with a total for the previous year of $100,611,243. Operating and general expense for the 1936 fiscal year amounted to $25,924,443.90, depreciation, real estate and other taxes and rent on leased property totaled $15,841,947.69, and other income, including miscellaneous dividends, interest and the like, was $16,486,682.48. Other deductions amounted to $3,152,148.51. The earned surplus account showed a total figure of $52,165,102.16, including the Loew's, Inc., share of the 1936 net and the balance of Sept. 1, 1935, of $41,088,279.35. Less dividends, undistributed income and the like of $7,810,722.99, the balance as of Aug. 31, 1936, was $44,354,379.17. More Tax Liens Filed Los Angeles, Nov. 23. — Approximately $75,000 in tax liens were filed in Federal Court here against film executives and players today by Ned Rogan, collector of internal revenue. Rogan claims the sums are due for 1935. The heaviest liens are against Miriam Hopkins for $55,758; Bette Davis, $1,399, and Alexander Hall, $845. Dictograph Loses Move U. S. District Judge Julian W. Mack yesterday dismissed a cross bill filed against the Securities and Exchange Commission by Archie M. Andrews who sought an injunction to restrain the commission from continuing its investigation of Dictograph Products Co. stock sales. A temporary injunction was denied last week. Authorizes Stipulation St. Louis, Nov. 23. — Federal Judge George H. Moore has authorized Edmond Koeln and James T. Blair, trustees for the Theatre Realty Co., owners of the Fox Theatre property, to enter into a stipulation with Milton C. Weisman, Fox Theatres receiver, under which the trustees will be allowed $773,300 on their claim of $1,074,028 for rent on the theatre. Three Theatres Sold The Majestic, Royale Golden and Masque, legitimate houses located on West 45th St., were sold at auction yesterday to the Magoro Corp., through its attorney, William Klein. The sale was the result of a foreclosure action brought by the Continental Bank & Trust Co. against the Theatre Zone Realty Co., Inc. Burlesque Hits Films Waterbury, Conn., Nov. 23. — Not only are Waterbury exhibitors complaining of the competition of burlesque, but even Bridgeport and New Haven have consistently lost a good part of their theatregoers to the attraction. Loew's Lyric, Bridgeport, has also been linked with a possible burlesque venture.