Motion Picture Daily (Jan-Mar 1940)

Friday, January 26, 1940 Motion Picture Daily 7 Universal Net Profit in Yeer Is $1,153,321 (Continued from page 1) holders accompanying the report, gives credit for the improved results to the ^ew operating management headed by Sate J. Blumberg, president, which took office early in 1938. Cowdin points out that the past year was the first full year that the new management was in charge of the company's affairs, and that the net improvement for the past three years amounts to $2,608,566. The company's cash position during the past fiscal year increased approximately $900,000, to $5,512,194, over the preceding year. In spite of this, bank loans increased $1,042,500, to $3,117,460, during the year. This was accounted for by increased production and release schedules and a generally higher quality of product. In addition, approximately $700,000 was spent during the year for studio improvements, the letter states. For the present, Cowdin says, Universal sees to immediate need of re Universal Weighs Recapitalizing Plan Recapitalization of Universal, in conjunction with a plan for simplification of the company's corporate setup, may be proposed this year. J. Cheever Cowdin, chairman of the board, has advised stockholders. A specific recapitalization plan has not been formulated yet. The corporate simplification would provide for the consolidation of Universal Corp., the parent company, and Universal Pictures Co., Inc., the operating subsidiary. Universal Corp. was formed to purchase control of Universal Pictures from the late Carl Laemmle, Sr., and to provide working capital for the operating company following the purchase. vising its conservative estimate of the war's effects on operations which it expressed last Fall, but is aware that the situation is subject to change, "in which event adjustments may be necessary." His letter points out that through Universal's "highly satisfactory" distribution arrangements in Great Britain and Canada with General Films Distributors and Empire Films, respectively, the company is relieved of the burden of Britsh quota production. He also states that unfavorable foreign exchange rates and the limitation on currency withdrawals from Great Britain "are moderated by the fact that sterling balances not required for current expenses abroad can be applied to reduction of the company's current loans in Great Britain." He reports that Universal's foreign business was considerably larger last year than during the preceding year accounting in 1939 for $8,987,128 of revenue, or 37.64 per cent of the total business done by the company. The annual report states that Uni Audience CanH Tell Whether It's Television or Film Show Audiences viewing television on a screen 4'/2 feet by 6 feet cannot tell whether they are looking at a film or television, according to Elmer W. Engstrom, RCA-Victor research director, a witness at the F. C. C. hearings now in progress. "People viewing it for the first time, after a moment or two, are quite unconscious of the method of portraying the picture," says Engstrom. "They are not sure whether they are looking at television or whether they are looking at a movie projection. It is so very good." RCA officials who had indicated earlier this month that a demonstration would be ready by Jan. 15 say that the demonstration may be expected "within the next week or two." Engstrom explained that the 4'/2 by 6 foot screen does not employ a projection principle. The light is "formed directly on the screen by the impingement of the electron stream on the phosphor, just on the inner surface of the tube," he explains. Discussing experiments for projected pictures from smaller tubes, Engstrom states that the next step is to produce an image 9 by 12 feet. "We have the development under way now to get apparatus together for testing that particular apparatus," he adds. "That size, of course, is getting into a size that might be useful for large audience viewing, even in theatres." Radio Brevities 67 Advertisers Experiment With Power of Television That television is proving an effective and interesting experimental field for advertisers is indicated in a report issued yesterday by NBC, which reveals that during the eight months' life of this video art 67 different advertisers sponsored a total of 148 programs over W2XBS. The report, issued by Alfred H. Morton, vice-president in charge of television at NBC, discloses that the total hours per month devoted to advertisers rose from 6.5 hours to 11.4 in December. Morton's report comprised evidence submitted to the F.C.C. last week. He declared that there are 2,000 set owners in the New York area with 89.8 per cent in homes and the rest scattered through theatre lobbies, hotels and other public places. The average evening audience is 8,000 persons out of a potential audience of 10,000, Morton asserted. The average for both day and evening is placed at versal's taxes increased 93.96 per cent during the past three years, or from $486,267 in 1937 to $943,158 in 1939 ; that labor costs reached an alltime high last year, and that the company was subjected to the additional "considerable expense" of defending its position in the various anti-trust suits instituted by the Government. Of these suits, the report says : "The issue of theatre ownership and operation, which many believe is the major issue, does not directly affect your company. On other issues, counsel believes that we can fully justify our position as an independent producing and distributing company." The report states that during the past three-year period control of studio costs and maintenance of a steady flow of product has been highly satisfactory, putting studio overhead chargeable against the year's program "on a substantially lower basis than in any preceding year." In addition, it reports that individual picture budgets and the approved budget for the entire production program were not deviated from in any important respect during the 1938-'39 season. 68.9 per cent of the potential audience. Operating costs are $10,000 weekly on an "out-of-pocket" basis, but they reach $15,000 if overhead, depreciation and amortization are included. The cost per hour of programming fell, during November, to 45.5 per cent of the hour cost in May when operations began. W2XBS transmitted 20.48 hours during May but rose to 58.73 in December. The eight month total was 361.87 hours for the home viewer, exclusive of purely experimental telecasts. In a unique poll of set owners, NBC asked that programs be rated "3" for excellent, "2"' for good, "1" for fair, and "0" for poor. The average for all programs was 1.96, just a shade under good. Studio features led with 2.63, special events were next with 2.11, film features were third with 1.96, film shorts, 1.75. The best show was "Jane Eyre," a dramatic presentation, the worst was the Chinese National Independence Show from the World's Fair, the poll reported. Live talent shows comprised 38.2 per cent of the total hours, films were second with 31.9 per cent and special events filled 29.9 per cent of the time. Honor Cummings At Birthday Party Alan F. Cummings, manager of M-G-M exchange operations, was given a surprise luncheon party at the Hotel Lincoln yesterday in cele bration of his birthday. Present, in addition to Cummings, were Jay A. Gove, Edwin W. Aaron, Joel Bezahler, M. L. Simons, Charles F. Deesen, Harold Postman, Constantine Carpon, William Gleicher, Ar thur Lacks, Irving Helfont, William I. Levine, William Brenner, Ira S. Martin, Edward Lee, William Mad' den, Vincent Thompson and I. Leon ard Hirsch. Joins Birdwell Office Ethel Butterworth has joined the publicity organization of Russell Birdwell and Associates. Wythe Williams on the Air ANEW commentator program, with Wythe Williams, the international correspondent who has scored a number of important scoops for the Greenwich Times, starts Monday over WOR when Philco returns to the air as a sponsor. Williams will make his offices in the WOR building and will employ a staff man in Washington and New York. The program will be heard Mondays, Wednesdays and Fridays at 7:15 P. M. Personalities in the News Les Tremayne, of the "First Nighter" cast, flies to the Coast tonight for a screen test. . . . Dick Stabile and his orchestra are now heard Wednesday and Saturday nights over WHN from the Essex House. . . . Simone Simon will be guest on "Fifth Row Center" on Sunday, Feb. 4, at 6 P.M.... Howard W. Kramer and Rocco Padula, Jr., have been added to the CBS publicity staff. . . . Jack Schaindlin, Universal Nezvsreel musical director and pianist on the Lawny Ross show, will fly to Jacksonville, Fla>., over the weekend. . . . Cities Service will tender ai reception to Lucille Manners tonight at the club on the R.C.A. building observation roof. The occasion is her third anniversary as the star of the "Cities Service Hour." Martin Block will celebrate the fifth anniversary of "Make Believe Ballroom" over WNEW on Saturday, Feb. 3 with a cocktail party at the Gold Room in the Ambassador Hotel. Program News Phil Cook's "Morning Almanac" heard Mondays, Wednesdays and Fridays at 7:30 A. M. over WABC, has been renezved for an additional 13 zveeks by Liggett Drug Co. . . . NBCBlue will add another quiz show on Friday, Feb. 16, at 8 P. M. when "This Amazing America" starts. Facts about America will be the subject of the quiz. Greyhound Lines are the sponsors. . . . Procter & Gamble will use "Life Can Be Beautiful," heard over CBS. for an Ivory soap contest which will offer ten 1940 Buick sedans each week with 1,000 gallons of Fire Chief gasoline and a $50 credit for accessories for each car as first prizes. . . . Dick Robertson and his band will be heard on a new show over WOR tonight at 10:15 P. M. for HygradeSylvania radio tubes. After this week, the program zvill be heard Fridays at 10:30. "Harlem Night." broadcast from the Alhambra Ballroom in Harlem, will start Sunday at 10 P. M. over WEVD. 'Wind* Gets Record Windy City Opening Chicago, Jan. 25. — With thousands storming the Loop seeking tickets and the advance sales nearing the $100,000 mark to break all records, "Gone With the Wind" tonight had simultaneous premieres at the Oriental and Woods theatres.